CSR REPORT 2006

CSR REPORT 2006
Report on Corporate Social
Responsibility Activities

As a mainstay of information and culture
Toppan is proud of its considerable contributions to the development of information andculture through printing. In anticipation of the changes ahead, the Company will continue
to play the same roles using various advanced technologies with pride and passion.

Toppan is defined “as a mainstay of
information and culture” in its Corporate Philosophy.
To put CSR into practice through business:that is the starting point of Toppan’s CSR.

Toppan invests its passion in Cyan, Magenta, andYellow, the three primary colors of printing.
Sincerity, Enthusiasm, and Creativity.
Toppan communicates with every stakeholder
with sincerity, enthusiasm, and creativity.

Contents

Executive Message

2

Highlights 2005–2006
Special Report 1: Toppan Endeavors to Mitigate
Global Warming

4

Special Report 2: Toppan Supports Safety and Security

8Special Report 3: Toppan Designs Corporate
Communication

10

Stakeholder Dialogue

12

CSR Activity Topics

16

Business Activities and Social Responsibility
Business Outline

20

To the Readers

Toppan’s Social Responsibilities

24

This CSR Report 2006 is a communication tool used to disclose information
to stakeholders and solicit their comments. The report was prepared with thefollowing points in mind.

Review of CSR Activities and New Initiatives

28

Corporate Governance

30

Compliance Promotion Activities

34

Information Risk Management

36

Strengthening Supply Chain Management

38

CSR Review Meeting with Stakeholders

40

OReadability
Environmental Reporting Guidelines 2001—With a Focus on Stakeholders
by the Ministry of Economy, Trade and Industry was used as a reference.
Most readers are assumed to have an interest in CSR. Toppan has taken
special care to organize the material, layout, color schemes, typeface, andfont sizes in this report so that it helps readers understand the activities ofToppan as clearly as possible.
OCompleteness and Materiality
The contents of this report were strictly chosen in consideration of thebusinesses of the Toppan Group based on the following guidelines anditems in the questionnaire on socially responsible investment (SRI). The“Special Report” section summarizes the most important issues.
•Environmental Reporting Guidelines (fiscal 2003 version) from the
Ministry of the Environment•Environmental Performance Indicators for Businesses (fiscal 2002 version)from the Ministry of the Environment•Environmental Accounting Guidelines (2005 version) from the Ministry of
the Environment•Environmental Reporting Guidelines 2001—With Focus on Stakeholders
from the Ministry of Economy, Trade and Industry•Sustainability Reporting Guidelines 2002 from the GRI (Global Reporting
Initiative)
OReliability
KPMG AZSA Sustainability Co., Ltd. has provided an annual independent
review of Toppan reports on the environment and social responsibility,
starting with the 2001 report. As a testament to the reliability of the environmental information described in this report, Toppan is authorized toattach the following mark. This means that the report
meets the standards for environmental report assurance
and registration established by the Japanese Associationof Assurance Organizations for Environmental Information(http://www.j-aoei.org/). Toppan has received the opinions and advice of
key figures in the CSR field as a guideline for producing the CSR Reports
2004 & 2005 and this report (CSR Report 2006). This year Toppan consulted Mr. Yoshiki Midorikawa, co-chair of The Valdez Society and directorof the Green Consumer Research Group, for his advice and guidance.
In addition to appearing in print once yearly, this report is available on
the Toppan website, along with environmental performance data on eachsite, the latest information on ISO 14001 certification throughout the
Toppan Group, and other relevant data. The Toppan website is regularly
updated.

Social Report
Improving Customer Satisfaction

42

Respecting and Leveraging Human Assets

46

Activities for Society and Culture

52

Environmental Report
Overview of Environmental Activities

56

Overview of Fiscal 2005 Results andFuture Environmental Targets

58

Environmental Management

62

Environmental Conservation Activities

68

Environmentally-friendly Products andEnvironment-related Business

72

Environmental Management Data

76

Conduct Guidelines

81

Independent Review and Third-party Opinion
Independent Review

82

Third-party Opinion

83

Company Reaction to Independent Review andThird-party Opinion
Global Reporting Initiative (GRI) Index

84
85

URL for CSR Report: http://www.toppan.co.jp/english/corporate/csr/index.html

Scope of this Report
In principle, this document reports on the environmental and social activitiesof Toppan Printing Co., Ltd. and Group entities that have been consolidated
for accounting purposes. This report mainly covers activities during fiscal
2005 (April 2005–March 2006) but also includes information on prior andsubsequent periods. Most of the information on personnel applies to personnel within Toppan Printing Co., Ltd., the parent company. The scope of environmental performance information and environmental accounting has been
decided in accordance with respect to the importance of environmental conservation among subsidiaries (➞P.21). The EMS targets cover 58 domestic
sites and 13 overseas sites.

Publication Dates
Published in December 2006. Toppan plans to publish the next report in
December 2007.

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

TOPPAN CSR REPORT 2006

1

Contributing to a Fulfilling Lifestyle
The Toppan Group continues to serve as an essential and reliable corporate citizen
by fulfilling its social responsibilities in its businesses and operations.

Toppan’s Social Mission
The Toppan Group was founded by a group of printing
engineers from the printing bureau of the former Finance
Ministry who wished to bring the benefits of printing technology to society. Since its foundation in 1900, Toppan has
worked in partnership with customers, shareholders, business partners, local communities, and stakeholders inevery field to contribute to the development of informationand culture with printing-based businesses.
Since Gutenberg’s invention of the printing press 500
years ago, printing has contributed immeasurably to the
spread of two intangible yet vital parts of our culture: information and human feelings. The progress of printing technology now allows people to share the same information indifferent parts of the world at the same time. It is no exaggeration to say that printing makes up the richness of culture.
The development of information technology, digitalization, and the birth of various new media have changed themethods used to express and transmit information in print.
What has not changed is the social responsibility entailed
in the act of printing.
The social mission of the Toppan Group of today is toconvey information, foster culture, and contribute to fulfilling lifestyles.

To be a Trustworthy Corporation
To fulfill its social responsibilities, Toppan must win theesteem of the public in all walks of life and continue to bean essential part of society. The Group should take onsocial and environmental tasks with this in mind, endeavoring to serve society by contributing culturally, conserving
the environment, and respecting human rights as it pursues
its economic goals.
I believe that a company’s corporate activities shouldbe piloted by a company’s approach to corporate social

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TOPPAN CSR REPORT 2006

responsibilities (CSR). Through our corporate activities at
Toppan, we realize our Corporate Structure which describes
the values and codes we hold important.
To achieve this, all of the people working in the
Toppan Group must understand their responsibilities tosociety and to stakeholders, and work to fulfill those
responsibilities in their daily work. I am convinced that we
can continue bringing our Company into closer harmony
with society and the environment.

The Priority Themes of Toppan’s CSR
In 2000, the centennial anniversary of our founding, weestablished TOPPAN VISION 21 as our corporate vision andfoundation of all of our business activities for the 21st century. TOPPAN VISION 21 consists of a Corporate Philosophy to form an overall framework for our activities andplans, a Corporate Creed to define our standards for corporate activities, and a set of Conduct Guidelines to express
rules of behavior based on our corporate ethics and our
spirit of compliance with laws and regulations. Based on
TOPPAN VISION 21, we have formulated six priority
themes to guide us as we develop our three primary fieldsof activity: economy, society, and environment. Descriptions of these themes follow.
OCorporate Governance: We will perform our management
activities rapidly and efficiently with a robust commitment
to forming clear managerial strategies, strengthening our
supervisory and auditing capabilities in corporate management, and improving the transparency of our managerial
activities.
OCompliance: We will conduct our corporate activities instrict observance of corporate ethics and all applicablelaws and regulations. All employees will follow our corporate Conduct Guidelines with an unwavering sense of
ethics and morality.

OImproving Customer Satisfaction: We will strive to see
things from the customer’s perspective. Through our workwith knowledge and technology, we will devote ourselves to the creation of products that bind us to ourcustomers in a relationship of trust based on responsibility, passion, and skill.
ORespecting and Leveraging Human Assets: Through ourstrict commitment to human asset development andrespect for individuals, we will foster employees that
continue to enhance their abilities and meet their fullpotential. The people within the Toppan Group will
share the enjoyment of their work within a corporate
atmosphere that is gratifying and rewarding to inhabit.
OActivities for Society and Culture: As a leader in theinformation communication industry, we will develop
activities to promote social and cultural progress. We
will also work to create a rich cultural environment in
partnership with local communities.
OCommitment to the Environment: Under the initiatives
set forth in Toppan’s Declaration on the Global Environment (1992), we will continue to alleviate the environmental burden of our operating activities by proposing,developing, and providing environmentally-friendly products and services that coexist in harmony with our irreplaceable global environment.

made significant progress in reducing VOCs such as
toluene and dichloromethane. Considerably more still needs
to be done to reduce emissions of CO2, however. We willcontinue these efforts and endeavor to accomplish higher
goals in the future.
Toppan has pledged its support for the United Nations
Global Compact as an active participant. We intend to introduce the basic tenets of the United Nations Global Compact in our business management in order to fulfill oursocial responsibility from a global perspective.

On the Publication of this Report
This report, the third CSR report from Toppan, reports theactivities we undertake in our businesses to fulfill our
responsibilities to society.
Through reading this report, we hope that a great many
stakeholders will come to understand and appreciate theactivities of the Toppan Group. Henceforth we will besteadily refining our approach based on what we learn
through dialogue with stakeholders. Please let us know yourcandid opinions.
The Toppan Group will continue its work as a trustworthy corporate citizen to help realize a society that can provide rich and fulfilling lifestyles. We hope to benefit fromyour continued support and guidance in the future.

Last Year’s Initiatives
In fiscal 2005 we listed a set of action points for each of
the priority themes mentioned above and then developed
a program of actual activities. Back in 2000, the Securities
Printing Division took the initiative to become one of thefirst organizations in the industry to acquire the Privacy
Mark certification. Last year, after the government enacted
the Act concerning Protection of Personal Information,
Toppan accomplished its goals for the acquisition of thePrivacy Mark certification. On the environmental front, we

September 2006

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

TOPPAN CSR REPORT 2006

3

Escalation of Global Warming and
the Need for Sound Forest Nurturing

SpecialReport 1

Environmental problems such as global warming,*
ozone depletion, increasing levels of waste products, and ocean and soil pollution continue toworsen. Among them, global warming is the priority issue to address.
Under the Kyoto Protocol put into effect fromFebruary 2005, Japan is committed to reduce its
average emission of the greenhouse gasses, including carbon dioxide (CO2), by 6%. Of this target
reduction, 3.9% will be attained by CO2 absorption
by the trees grown in the country (130 million tonsof carbon). Yet based on the progress thus far
made, the actual reduction from these measures is
expected to fall far below the target. That is why
the government and the private sector musturgently pool their efforts for sound forest nurturing and maintenance in the country. Key for the useof the forests will be an optimal forestal cycle fromplanting through nurturing and harvest.
More than 50 years have passed since the forestation after the end of WWII. Much of the country’s
forest has been neglected and needs to be maintained by thinning and other operations. The excessive growth of badly kept and neglected forests
blocks out the sunlight. This harms the forest ecology by causing the trees to thin and weakening thebird and insect populations. The Forestry Agency has
responded by undertaking KIZUKAI-UNDOH (Wood

Products Utilization Campaign), a campaign toencourage forest maintenance through the promotion of the use of domestic lumber, including thatharvested from forest-thinning operations.
Toppan approves of KIZUKAI-UNDOH. To promotesound nurturing and maintenance of the country’s
forest resources, the Company actively uses domestic lumber for Cartocan, a paper-based beveragecontainer.

Social Significance of Toppan’s Cartocan,
a Product Produced from More than 30%
Domestic Lumber
Cartocan is a unique paper container manufactured
using an improved version of a system originallydeveloped in Europe 10 years ago. Toppan modified the original method by adding an aseptic filling
technique. More than 30 percent of its ingredientsare from domestic lumber, including lumber harvested from forest-thinning operations. Toppan
donates part of its sales to the Green Fund, a program that funds volunteer organizations involved inforest maintenance throughout the country.
Cartocan is an environmentally-friendly recyclable
product with versatile features: 1) It can be used in
vending machines, and thus can be deployed on
existing distribution routes. 2) The aseptic filling
technique extends the shelf life and better preserves
the flavors and nutritional ingredients. Aseptic filling
was previously thought to be too difficult for paper

Toppan Endeavors to Mitigate Global
Warming with Cartocan, a Paper-based
Beverage Container
Global warming is said to have caused extreme weather and sea-level elevation inrecent years. Sound forest nurturing is now called for in order to mitigate thesechanges. Toppan helps mitigate global warming through its own paper-based beveragecontainer, Cartocan—that is Toppan’s unique effort to tackle the problem.

*A widely accepted hypothesis is that global warming is caused by increase ingreenhouse gas emissions such as carbon dioxide (CO2), methane, dinitrogenmonoxide, and CFC substitutes in the atmosphere. The CO2 increases whenfossil fuels such as oil and coal are burnt in human activities, or when CO2
sinks decrease as a result of deforestation.

4

TOPPAN CSR REPORT 2006

products. 3) It is made entirely of paper and thus
can be heated in microwave ovens.
Japan now mainly uses lumber imported fromabroad. The Japanese self-sufficiency rate for wood
pulp and chip, the raw materials of paper so important for Toppan’s operations, was only 11.2% in fiscal 2004. This is less than one-third of the rate 20
years ago (see the figure below).
Toppan understands how crucially it relies on forest resources for its printing paper and paper packaging operations. Cartocan made from domestic
lumber is one of the Company’s first major steps tohelp mitigate global warming by protecting andnurturing the country’s forests. At the moment,
Toppan promotes the use of the homegrown lumber and Cartocan through the Morikami (Forest andPaper) Conference, a conference to promote theusage of environmentally-friendly paper-based containers for beverages. About 40 organizations andcompanies, including the Forestry Agency, attend
the conference. Toppan, meanwhile, asks its stakeholders to understand forestry in Japan and tries toinspire an awareness of global warming mitigation.
Toppan continues to commit itself to global environment protection by “paying back” the forest with
Cartocan.

Press presentation during the preparations for the
Morikami (Forest and Paper) Conference (April 2004)

Cartocan: Quantity Manufactured■Actual(Million cans)200■ Growth rate(%)
200
(Planned)

150

150

100

100

50

50

0

2002

2003

2004

2005

0
2006
(Fiscal year)

Features of Cartocan
The special nozzle is also ideal for pouring high-viscosity drinks such as cocoa and soup.
Cartocans are made from a high-quality and fully recyclable paper similar to that used formilk cartons. They can also be recovered as a heat resource.

Un-thinned Forest
Blockage of the sunlight prevents thebottom weed from growing, resulting
in forest deterioration.

Thinned Forest
The sunlight reaches to the groundsurface. This restores forest life by
nurturing the growth of shrubs andweeds on the forest bed.

Self-sufficiency and Supply and Demand Trend for Source
Lumber for Wood Pulp and Chip
■Domestic lumber ■Imported lumber ■ Self-sufficiency rates(%)(Million m3)
50
50
41.9
39.0
38.93
40
40
37.44
32.9
33.73
30.97
30
30
24.08
20.07 25.1
20
20
15.86
13.3
12.84
11.3
11.2
11.79
11.44
10.37
10
10
5.99
4.75
4.25
0

1975

1980

1985

1990

1995

2000

0
2004
(Fiscal year)

Compiled from operational data of Wood Utilization Division, Forestry Agency

Cartocan obtained the forestthinning product mark.

The 3.9 GREENSTYLE MARK, alogo of the KIZUKAI-UNDOH, promoted by the Forestry Agency.
Toppan also obtained the registration number.

VOICE
I expect Cartocan made from domestic
wood from forest-thinning operations to
help promote awareness of the protection and the nurturing of the forest
Mr. Toshio Kondo
Manager of System Operation Department

National Federation of Cooperative
Associations for Forest Owners
Toppan uses forest resources for products such as printed materials
and paper containers. Its corporate philosophy is to pay back theenvironment with Cartocan, a product made from domestic lumber,including wood harvested from forest-thinning operations, to protect
and nurture the forest. This is a wonderful thing. Henceforth theCompany should call more attention to Cartocan. To give just one
example, Toppan could promote the concept of Cartocan recycling
by installing vending machines with drinks packaged in Cartocans at
the entrances to forest parks around the country. This would raise theawareness of visitors, especially the children, on recycling andresource preservation.
TOPPAN CSR REPORT 2006

5

Special Report 1 Toppan Endeavors to Mitigate Global Warming with Cartocan, a Paper-based Beverage Container

Cartocan’s Cycle for Nurturing Sound Forests
Cartocan is produced from the forest andrecycled to toilet paper.
Toppan is one of various companies andCycle Flow of Cartocan(1) Forest Management and Chip Control

stakeholders in the supply chain involvedin the Cartocan cycle.

Chipping of wood fromforest-thinning
operations
Loading of wood fromforest-thinning
operations

VoicesWood cut down forforest thinning(1) Forest Management and Chip Control(5) Paper Recycling

Domestic wood from forestthinning operations must be
more efficiently used

CO2, H2O
Forest nurturing
through photosynthesis
RPF* for solid fuelMr. Katsuyuki Kimoto
Forest and Chip Operation

Nichiita Geibo Sangyo Co., Ltd.
Too often I see thinning trees left abandoned andunused. Recently I joined a biomass study group tolearn if there are ways to use these trees efficiently. To
make efficient use of wood from forest-thinning operations, you must spend money to transport the woodand run the lumbering machines. Part of the sales of
Cartocan is donated to the Green Fund, a program tofund volunteers involved in forest maintenancethroughout the country. Recently I have been trying topromote Cartocan by installing vending machines inrelated workplaces.

Waste plastics
after removing
paper fiber

Plastics
Separation
RPF reused asfuels at plants
Paper fiber

Empty containers collected for recycling(5) Paper Recycling
Using Cartocan promotes
global warming mitigation

Mr. Yutaka Kurebayashi
Director, Senior Manager of
Manufacturing and Senior
Manager of Facilities

Tokai Seishi Co., Ltd.
Our company takes out paper fiber from used Cartocan
to manufacture toilet paper composed at least 10 percent domestic wood from forest-thinning operations.
Plastics generated in the process are used in-house as
the RPF to replace oil for zero-emission. People fromenvironmental organizations overseas and elementaryand junior high school students from all over the country come to see our plant. When they visit we explain
the concept and process of Cartocan recycling to raise
their awareness on global warming mitigation and forest nurturing through the use of wood from forestthinning operations.

6

TOPPAN CSR REPORT 2006

Cartocan containers
collected after use
Separated paper fiber recycled
as toilet paper

Containers torn apart at
the hands of consumers*Abbreviation for Refuse Paper and Plastic Fuel. RPF is a high-calorie solid fuel madefrom used paper and plastics, industrial materials that are difficult to recycle.

(2) Paper Making
Our work with Cartocan
has become a major
CSR activity for ourcompany
Mr. Hiroshi Inai (right)
Senior Manager of the
Manufacturing Dept. andManager of Genshitsu
Section, Geibo Plant(2) Paper Making

Mr. Takashi Muranaka (left)
Manager of the Technology Section, Technology andEnvironment Office

Nippon Daishowa Paperboard (West Japan) Co., Ltd.

Piles of chips fromdomestic wood
harvested from forestthinning operations

The landslides during heavy rains and typhoons would
do much less damage if the forests were properly
felled. The profit-sharing forest that my company works
with in Hiroshima Prefecture is thinned regularly. The
ratio of domestic wood chip harvested from forest-thinning operations is carefully considered in manufacturing paper for Cartocan. Forest nurturing through the
manufacture of paper for Cartocan is positioned as amajor CSR activity for our company.

Manufacturing of
paper for Cartocan

Rolled up Cartocan paper(3) Printing and Processing(3) Printing and Processing
Wide use of Cartocan promotes
forest improvement andnurturing
Mr. Kenji Ooba
Senior Managing Director,
Plant Manager
Sodegaura Beverage Plant

Printing on
Cartocan paper

Toppan Packaging Service
Co., Ltd.

Processing of
Cartocan container

We often hear, in legend, about the old man who went
to the mountains to gather firewood... Many humanactivities of today have gone unchanged from ancient
times in Japan. The forest in Shimane Prefecture, near
my home town, has deteriorated considerably since thedays of my youth. Cartocans are filled by an aseptic filling method that causes less damage from heat. The
lower temperatures used ensure a better retention of
taste and nutritional value over a longer period. I hopethat we can help our forests by promoting the Cartocan
cycle.
(4) Distribution, Sales, and Recovery
Cartocan matches
health consciousness
and awareness of forest
protection

Filling of drinks such as juice

Mr. Akira Sekimoto (right)

Promotion andadvertisement ofCartocanManager of the Ecology
Goods Section
MD Department,
Merchandise Head Office

Ms. Miho Saito (left)
Public Relations Section, Corporate Communications Office

Radishbo-ya Co., Ltd.
Commercialization of
Cartocan-packaged
drinksPurchase of Cartocan-packaged
drinks by consumers(4) Distribution, Sales, and Recovery

Morikami (Forest andPaper) Conference
Cross-functional, such as
venders and machine
manufacturers
AdviceForestry Agency
National Federation ofForest-owners
Cooperative Associations

Sekimoto: “I love hiking in the mountains. I’m worried
that I don’t hear birds singing in the forest.”
Saito: “As to be expected of a former environmental
NPO, many of our members are highly aware of healthand forestry protection issues. We ask our members towash and tear apart the Cartocans after using them.
The containers are used for popular vegetable and fruit
juices made from the produce from organic farms or
farms that use low levels of agricultural chemicals. We
take various steps to publicize the need for forest nurturing, such as merchandising recycled toilet paper andrunning the “School of the Forest” event for our members.”

TOPPAN CSR REPORT 2006

7

Toppan Supports Safety and Security
in Your Lives
Toppan develops advanced technologies in fields such as Information &Networks, Living Environment, and Electronics. Many are used in various
scenes of daily life. Toppan recognizes the social importance of providing
safety and security in cooperation with its consumers.

SpecialReport 2
In the Street

Providing Safety and Security at Public
Places such as Banks, Hospitals, andCity Halls
The illegal reading of cash cards has recently
become a problem at financial institutions such as
banks. Like fingerprints, the veins of every humanbody have a unique and individual pattern. An IC
cash card that identifies its owner by reading thevein patterns on his or her palms and fingertip
ensures robust security against illegal reading.
Toppan proposes solutions to prevent damage at
the hands of inscrutable people who “skim” thevarious cards sent out by financial institutions as
direct mail. Anshindesu-shi is a special protective
sheet of paper designed to shut out incoming electric waves. This secures the information on the card
before it reaches the customer in the mail.
Another growing concern is accidents at medical
facilities such as hospitals. Toppan produces transparent vapor deposition films and GL/GX films forthe packaging of pharmaceuticals. Unlike aluminum
foil, these films contain no metals. This enables
manufacturers to detect foreign objects in containers using metal detectors. The material properties
secure the safety of both human health and theenvironment. Once discarded, the films require less

An IC cash card capable of authenticating the palm and finger
veins of the “cardholder”

energy to incinerate and never release harmful chlorine gases as they burn. As an added safetyenhancement at hospitals, Toppan provides an IC
tag technology for the control of pharmaceuticals
to prevent medical accidents such as mix-ups ofintravenous drips.
Security technologies—special ink, hologram technology, techniques to print characters so smallthat copying makes them illegible—help assure
authenticity of the certificate of seal or the residence registry issued by local governments andpublic offices. The same technologies are also used
to prevent the counterfeiting of various securities orgift certificates.

A gift certificate incorporating a hologram technology toprevent counterfeiting

Use of the Anshindesu-shi to prevent “skimming” damage

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TOPPAN CSR REPORT 2006

At the Office

At Home

An Advanced Information Management
and Security Technology to Ensure
Safety and Security at the Office

Managing Safety andSecurity in the Home

An office manages many types of confidential information on personnel and in-house/external companies. As IT gains in prevalence, public attention isdrawn to the access-management systems in place
to protect the confidential information stored in PCs
and servers. The SmartOn Solo series prevents theunauthorized viewing of information. Employees in
offices with the SmartOn Solo system use ICequipped ID cards as keys to access PCs. The system
works just as well in large corporations as it does intiny offices with few people.
Contact-type IC cards with the eTRON specification are integrated with a personal profile feature tohandle personal information safely. Personal information is encrypted and stored internally, and an
eTRON-based protocol is used for transmission. The
400kb memory is large enough to store informationsuch as graphic images for face recognition.

The GL/GX films from Toppan help to ensure thesafety and security of the food containers usedmost commonly in daily life. These films have thesame barrier properties as aluminum foil: they shutout air (the cause of oxidization and mold growth)prevent the release of odors, and extend the shelf
life of food. Applications are widespread for bothfood and toiletry products.
A recent social problem is a rising incidenceof accidents or crimes involving children on their
way to and from school or after-school lessons. The
HotConPass application service provider (ASP) sends
email to guardians to notify them when their children arrive at school when they leave school later inthe day. Card readers installed at the school sense
IC tag cards that the children carry. The children aresafer and their guardians have peace of mind.
Toppan continues to leverage the integrated
strength of the Group to press forward with its
activities to support safety and security.

GL/GX films (above) toensure food safety andexample of use (below)

HotConPass IC tag cardand card reader toensure the safety ofchildren

COLUMNA Survey on Safety and Security for Children
Toppan surveyed parents with young children (nursery, kindergarten, elementary
school, or junior high school) to get a fuller grasp of their views and needs in theareas of child safety and crime prevention. According to the results, over 90 percentof the parents were concerned about potential risks in their neighborhoods, near
the children’s schools, and so on. News reports and rumors about suspicious individuals have alerted them to the need for security services and goods to ensure
safety. Toppan will continue to survey the public on security issues from the viewpoints of ordinary citizens.

An ID card that uses eTRON technology to handle personal
information safely

Awareness of Security Goods
When do children need goods and services to guard their safety
On the way home from school 83%
While playing outside
On the way to school
0

50

71%

*Compiled from the Survey on Child Safety andCrime Prevention
Surveyed areas: Tokyo Metropolis and Kanagawa,
68%
Chiba, and Saitama Prefectures
Survey method: closed Internet survey
100% Number of respondents: n = 360

TOPPAN CSR REPORT 2006

9

Toppan Designs Corporate
Communication
Companies continue to place more importance on corporate communication (CC), their tool for conveying corporate identity to various stakeholders. Toppan would like to help build a confidence network by assisting
the development of CCs effective in enhancing corporate value.

SpecialReport 3
Toppan supports the corporate communications of companies andorganizations in various fields. Most of the detailed CC work takes

CC Strategy Fair

place in the Toppan Idea Center, the design and planning department of the Company.
When put to the test for CSR, companies are now expected toplay a public role in society. The information companies send out
increasingly focuses on accountability rather than traditional appeals
to convince customers of their merits.
Toppan supports corporate communication to convey information of all types, from disclosures on risk information to branding,as coherent corporate messages.

Conceptual Diagram for the Provision of CC Solutions
Corporate communication
problem of a customer

Development of CI and VI,
designs for shops andsigns, PR/events,
anniversaries, showrooms,
corporate museums

Brand
Assistance for
Brand
Communication
CSR and sustainability reports,stakeholder dialogues, social
contribution programs, events
focused on environmental
themes or the fostering of thenext generation

Annual reports, business
reports, shareholder
newsletters, presentations at
meetings of shareholders,
IR information database

CSR

IR

Assistance for CSR
Communication

Assistance for
IR Communication

Toppan held seminars and planned exhibitions on
CSR communication in fiscal 2003 and 2004 as
another activity to support CSR. Soon afterwards, infiscal 2005, it held a Corporate Communication(CC) Strategy Fair to expand the scope of CSR communication. The fair was conceived and planned in
response to the recent changes in corporate communication trends involving the reorganization andintegration of information tools such as brand, CSR,
and IR.
The programs and events of the fair focused onfour subject areas to offer comprehensive perspectives on corporate communication: Brand Communication, Social Contribution and Developmentof the Next Generation, Stakeholders and CSR, and
M&A and IR. Experts in each of these areas presented keynote speeches and led panel discussions.
At the CC Creative Exhibition Corner, Toppan
exhibited the environmental reports and CSR
reports published by 90 domestic companies andorganizations with support from Toppan in fiscal
2005. Toppan took orders as a provider of myriad
services from editing and production. Also exhibited
were examples of Toppan’s assistance in nurturing
the next generation, the development of corporate
culture facilities, and so on.
The CC Strategy Fair was attended by 907 visitors. Many enjoyed the fair and offered favorable

Activity

Sorting out success factors based on monitoring and case analyses
Collecting and analyzing corporate communication
trends domestically and overseas
Trend analyses of laws, regulations, and guidelines
Human resources (brain networks)

Proposing solutions to problems

10

TOPPAN CSR REPORT 2006

Booklet on the CSR Communication Fair
Toppan published CSR Communication and CSR
Communication 2005. These booklets summarized
the contents of theseminars at the CSR
Communication Fairsof fiscal 2003 and2004 in order to share
the accomplishments ofthe fairs with as many
people as possible.

COLUMN 1

remarks. Comments of the following types were
frequent: “I walked away with a good sense ofwhere we should go from now;” “It was interesting
to witness the growing importance placed on CSR
and to see the CSR reports from so many different
types of companies;” “The fair was a good sourceof ideas on cooperation between companies andNPOs in the future.”Foundation of the Kids Design Association
Society as a whole is devoting more attention to the nurturance of the next generation and measures addressing the declining birthrate. To fulfill their CSR, companies are finding ways to improve their working environments, to make it easier for
their employees to bring up children, and to develop educational programs forchildren. These are important issues for all companies, not just those manufacturing children’s products.
The Kids Design Association was established in May 2006 to promote the creation of a society that protects and nurtures its children by enhancing safety andproviding a richer environment for growth, learning, and development. The association invites companies and organizations from different industries to a forum forvoluntary discussion on these objectives. Toppan, one of the leading companies in
the association, heads the administration office.
The association works in cooperation with industry, government, academia, andprivate sectors to measure and analyze data on the physical development andbehavior of children, as well as to collect and analyze data on accidents involving
children in or near the home or in the streets. The association also grants the Kids
Design Award to outstanding designs and concepts for children’s products andcontent from a child’s perspective using those data. This philosophy is disseminated in society.

The association mission explained ata symposium commemorating the foundingof the association

Overview of the Corporate Communication
Strategy Fair
Dates
Seminar: February 7 (Tue.) to 10 (Fri.), 2006
Exhibition: February 7 (Tue.) to 24 (Fri.), 2006
Site
Toppan Koishikawa Bldg.
Seminar: ABC Conference Room, 12th floor
Gutenberg Room, B1st floor
Exhibition: PLAZA21, 2nd floor
Seminar Programs
February 7 (Tuesday): Brand Communication
I [Keynote Speech] Today’s issues on Corporate
Branding: from Global Branding to Inner Branding
I Branding in the Ad Campaign to Introduce the Lexus in
Japan
February 8 (Wednesday): Social Contribution andDevelopment of the Next Generation
I [Keynote Speech] CSR Design to Develop Creative
Environments for Children
I [Panel Discussion] A Company and Nurturance of the
Next Generation: How do they Relate?
February 9 (Thursday): Stakeholders and CSR
I [Panel Discussion] Internal Communication
I Restructuring CC Information Tool System and
Designing the Web with CSR
February 10 (Friday): M&A and IR
I [Keynote Speech] Newest Developments in M&A:
Enhancement of Corporate Value and Anti-takeover
Strategies
I [Panel Discussion] Loyal Shareholders as a Corporate
DefenseCOLUMN 2
Thirty-five Ideas to Change the Company’s Red Signals
to Green
Toppan supported the production and printing of Thirtyfive Ideas to Change the Company’s Red Signals to Green,a collection of case histories in the field of environmental
communication. The book was commissioned by the Officefor the Coordination of Environmental Measures in Industry(Environmental Policy Division, Industrial Science andTechnology Policy and Environment Bureau, Ministry of
Economy, Trade and Industry).
The collection mainly introduces the successes of companies in organizing and applying methodologies for environmental communication. The book is helpful in promoting
more effective and active environmental communication
with stakeholders involved in companies.

A 110-page, A4-sizebook introducing
company activities,
questionnaire surveys,
demonstration
experiments, andso forth

COLUMN 3
Planning, Designing, and Constructing a Company Museum
Some companies establish museums to archive collected materials on specificthemes and display their various accomplishments to the public. The company
museum is important as a showplace to appeal directly to customers for corporate
identity, brands, business style, and efforts for social responsibility.
Toppan offers companies various proposals on the creation of corporate cultural
facilities that embody a company’s individuality and engender new corporate
value. Companies can consult with Toppan on the full process for facility development, from initial planning to construction.

Constructing i-muse in Ishikawajima-Harima
Heavy Industries Co., Ltd. Visitors to i-musecan learn the history of creation andchallenges at Ishikawajima-Harima, acompany at the frontier of engineering
for over 150 years.

TOPPAN CSR REPORT 2006

11

Stakeholder Dialogue

Toppan’s CSR—As a Mainstay ofInformation and Culture
In August 2006 Toppan invited five key figures from different industries to participate in a
stakeholder dialogue with Mr. Fumitake Sakamoto, facilitator. These experts offered myriad
perspectives on how Toppan should communicate with stakeholders in fulfilling its responsibilities to society—the ideal ways to shape Toppan’s CSR activities.

Sakamoto (facilitator): We will begin
today with a brief presentation on
Toppan Printing Co., Ltd. Afterwards wewould like to hear your impressions
about the Company.
Harai: Toppan has a long history and adomain of printing. I’m interested in the
posture Toppan will take when new
businesses coming into Toppan’s domain.
I think the key word is people, and the
key question is how to deal with people.
When you advocate CSR and compliance, it’s impossible to control them
only with rules and a mechanism. It’s
important to work out measures on
how you can touch each person’s soul.
Nomura: Earlier I helped exhibit at
the Printing Museum, Tokyo and wasinvited to judge a Poster Exhibition on
the Environment sponsored by theJapan Graphic Designers Association Inc.
I was impressed by the views of Toppan
on the connections between printing
and culture.
I had never assumed that there were
cultural gaps between Japan and international society. But after reading the
Toppan CSR report, the report seems
somehow less international.
Ishida: I think Toppan has caught thecurrent of the times very well. Our dialogue today and CSR activities we have

12

TOPPAN CSR REPORT 2006

read about attest to this. Other thanpaper-based printings, Toppan also hasadvanced in electronic technologies.
If Toppan is engaged in meaningful
CSR activities in its main fields of business, it will have to take successive measures to meet social needs as a leading
company. You should clarify both yourproactive points and defensive points.

Adachi: Toppan works in every aspectof the environment and society. It
invests great energies to improve things
for its employees and the environment.
It has lots of relationships with externalorganizations and strives to feed wisdom back to the Company.
If I were to give advice, I’d urge
Toppan to specialize in one field. Companies overseas nowadays are focusing
on the issue of child labor in addition to
the environment. You should take theinitiative with an eye to the future to distinguish yourself.

Sakamoto: So far we have been discussing the social needs companies candefine and the extent to which companies can lead others to address needs
overseas. Now, I’d like to hear yourthoughts on how CSR should be positioned based on its business strategies,
and the problems you think need to beresolved.

Ishida: I wonder how deep the Corporate Philosophy of TOPPAN VISION 21
has actually been instilled at Toppan.
You can make strengths by defending
what you should defend and deploying
your resources for what you should
offer. By assigning priority to what you
should defend and what you should
offer, you can gain insight onto how
you can develop your business from a
CSR viewpoint, fitting within your business strategies. You can engage in CSR
activities based on your business when
you know the measures you should takefor your next improvements. You candamage your corporate image and shareprice if you don’t focus your CSR activities in areas where you can differentiate
yourself from competitors.
Toyama: Toppan has a Corporate
Philosophy, a Corporate Creed, andConduct Guidelines. But when I speak
to the employees at Toppan, I only
express CSR in terms of “Must” and“Must Not.” I don’t think I talk about
the Corporate Philosophy in the rightterms. Our president talks about making
a product with a passion to create a“work.” We appreciate this, but when
we talk about compliance we can’t help
but think about it in terms of “mustnot.”Ishida: It may be that the top leadership understands the philosophy andcorporate creed conceptually without
taking steps to put them into effect at aworking level. The employees, meanwhile, might be under too much pressure to raise profits and to meet targets,with an exclusive focus on the pursuit ofeconomic value. If this is the case, it may
end up causing needless accidents. If a
company starts taking that posture, how
can it recover its balance? This is important for CSR approaches in the future.
Nomura: I’ve recently been active, herein Japan, promoting the Global Compact (hereafter GC) advocated by the
UN. The GC is a global standard for
defining a company’s CSR value. A focus
on compliance is now to be expected.
The question is how proactively a company positions itself as it sets up its CSR
activities.
The UN decided to form an alliancewith private companies in order to harness the vitality and creativity in the corporate sector. Corporations can be a key
driver of change in international society.
Companies can do much good by organizing activities that connect to international society in areas related to theirmain businesses. They need to offer
ideas as well as funding support.

Mr. Akio Nomura
Worked as the deputy
chief editional writerand general manager ofthe American Bureau at
Asahi Shimbun, and as
a director of UN
Information Center,
Tokyo. Promoted the
Global Compact during
his appointment at the
UN Information Center. Now a visiting professor
at the Okuma School of Public Management,
Waseda University.

Mr. Hiroshi Ishida
Worked at theIndustrial Bank ofJapan, Ltd. Currently
an executive directorof Caux Round TableJapan. Associate
professor, Instituteof Business andAccounting, Kwansei
Gakuin University.
Carries out CSR issue analysis for managers andemployees inside and outside of Japan.

Harai: A company must send out information that dictates how it wants to be
seen by the public. There are always discrepancies between a corporate philosophy and the reality. Management needs
to interpret its corporate philosophy andadd practical details to reify that philosophy through concrete actions. A workforce that shares a cohesive company
vision will build a strong company.
Nomura: The scope of GC covers notjust top management, but all employees
through the rank and file. Every person
in a company must thoroughly implement the 10 principles on a working
basis.

Sakamoto: How is the managementat Toppan conveying the Corporate
Philosophy, the Corporate Creed, andthe Conduct Guidelines under TOPPANVISION 21 to the Toppan workforce?
Toyama: The Conduct Guidelines werecreated with more than legal compliance in mind. They were defined basedon the Corporate Philosophy andCorporate Creed. About 700 Conduct
Guidelines Promotion Leaders wereappointed within the Toppan Group tolead efforts for the promotion of the

Mr. Shinsuke Harai
Worked as the managerof the Human Resource
and Planning Group of
Fuji Xerox Co., Ltd.
Currently President &CEO of HR Labo. A
commission member of
the Japan Organization
for Employment of theElderly and Persons
with Disabilities, a commission member of HRD
Japan 2007 (JMA), and a lecturer at the Japan
Society of Human Resource Management(J-SHRM).

Conduct Guidelines at workplaces. We
try to raise awareness further by changing these Leaders every year.

Sakamoto: From your perspective as
experts outside the Company, howshould Toppan go on the offensive?
What weapons can it wield to the mosteffect on the CSR front? Could you tell
us an appropriate process or viewpoint
for the Company?
Nomura: Toppan can engage in social
and international activities closely
related to its businesses, as a mainstay
of information and culture. Toppan
must solicit the ideas from its various
employees to draw from their richknowledge. It should get people together
in teams and encourage them to create
new selling points for the Company.
Adachi: Defensive management inenvironment-related areas is crucial froma preventive standpoint and requires
steady efforts. Proactive management tocreate a sustainable environment andsociety is equally important. I expect theCompany to take a distinctive approach.
To do so you need to have quick andeasy access to external information.

Facilitator
Mr. Fumitake
Sakamoto
A corporate PR
consultant at Witan
Associates Limited.
Plans and drafts
proposals on corporatesocial responsibility.
Offers management
assistance for NPOs.

Mr. Jiro Adachi

Mr. Takeshi Toyama

Executive director, nongovernment organization, Japan Center for
Sustainable Environment and Society.
Author of Environmental Tax—Taxation
and Financial Reformand SustainableWelfare Society(Tsukiji-shokan).

Executive Vicepresident, Toppan
Printing Co., Ltd.
Promotes CSR as a
Director in charge of
CSR.

TOPPAN CSR REPORT 200613

Toyama: Toppan has contributed tosociety through its work to digitalize
China’s Palace Museum heritage andJapanese paintings. Through projects
like these, Toppan helps to create “a fulfilling lifestyle as a mainstay of information and culture.” But Toppan isn’t
publicizing these activities in the rightfashion. The Printing Museum, Tokyo
operated by Toppan is unique but not
well-known. And the museum seems tolack global perspective. We need to takeone more step for that.
Nomura: The UN issues various publications. Looking through the ones
printed overseas, I often think theJapanese can do a better job. If
Toppan’s technologies are applied tochildren’s educational materials, it will
be a real social contribution.
Ishida: The Company, especially its
management, needs to break down the
Corporate Philosophy, the Corporate
Creed, and Conduct Guidelines, to findout how these elements work in the
management processes, and to identify
the gaps in internal communication. The
earlier you find out problems, the sooner
you can counteract with measures.
It’s valuable to organize workshops
for dialogue between management andeach stakeholder group—dialogue withbusiness partners, with main customers,
with employees (groups of 40 to 50),and so on. After the workshops the participants can have beer and pizza.
Employees will come up with positive
opinions if management listens.
The Company should take in external
opinions, align its opinions with NGOs,
and find out Toppan’s strengths from a

global perspective. This will help Toppan
create a distinctive brand of CSR.

Sakamoto: You’re saying that theCompany should protect all the defensive parts of the operations. It should
specialize in an area close to its main
business as an offensive point. It should
determine the investment area by considering the market environments andsocial circumstances. Is that right?
Harai: When you aim for the sustainable development of the Company, youneed to raise the level of your employees. Employees create value in the
future, so you need to make a serious
survey. The people on the front lines
should have an acute sensitivity as analysts of the social needs for the B2B
structure. People engaging in the fieldknow very well what they should do
as Toppan’s employee, and they know
the direction they need to take. If you
can collect employees’ opinions within
the whole Group, it will be extremely
strong.

Sakamoto: Specifically, what are thespecific social needs? What problem will
surface in five years? To what areas
should you devote the most care as
management or as a Company as awhole?
Adachi: When it comes to the environment, you can’t get around global
warming and the Kyoto Protocol. For
Toppan, a company deeply involved in
the use of paper, forestation is an
important issue to be addressed. And
the threats to biodiversity by forestation

are also important. The Company mustrefine and elaborate its methods forforestation in partnership with local
communities.

Ishida: Human rights management
through supply chain management isessential as another vital issue for the
future, particularly for the globalized
Japanese companies. Human rights
management and CSR based on themain business will become critical issues
in the latter half of 2006 or next year.
Nomura: Sustainability issues will cometo count. The Millennium Development
Goals of the UN assign an equal agenda
for each country to accomplish by 2015.
The goals are to eradicate extreme
poverty, reduce AIDS and malaria, create
circumstances where children canreceive elementary education, and eliminate male-female divides. Last is the
reduction of cultural friction. Wars andconflicts break out when diversity isneglected. In terms of working on a fullunderstanding of culture, I hope that
Toppan promotes activities in every area
in which it can contribute.
Harai: Declining birth rates have an
important bearing on human resources.
You need to hire more women, moreelderly, and more foreigners in a society
with a low birth rate. When we speak of“diversity,” we often think of racial or
gender diversity. Diversity is a systemthat helps people activate each otherand build bridges by sharing different
ways of thinking, different activities, anddifferent environments. It will be important, in promoting diversity, to foster
management within an environment inwhich managers take an interest in all
their employees and care for them individually. This is how you enhance thelevel of performance. Success in promoting diversity will determine corporate
power in the future.

Sakamoto: Another question is how
Toppan should monitor and evaluate
its CSR approaches within its in-housesystem.

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TOPPAN CSR REPORT 2006

Harai: You must apply some kind ofindicator to measure the degree towhich stakeholders perceive you as you
wish them to. If you want, for example,
to measure the satisfaction your employees take in working hard, then think
about how devoted they are to theirjobs, or how fast they come up withideas. It isn’t very difficult to express
those things quantitatively, as indicators,
if you have firm targets.
Nomura: The Japanese companies
which have joined the GC have formed
the Japan Network as a venue forreporting their respective activities. You
can get valuable information by attending this forum. It’s important to share
information online through mutual
learning.
Ishida: Try to clarify where your advantages and disadvantages have been
positioned. Then ask yourself how you
are going to improve the problems you
found. How are you going to enhance
employee satisfaction? It is important topromote CSR based on the main business and disclose information during the
PDCA cycle.
Adachi: If you want to minimize therisk of liability for unforeseeable environmental and social problems, if you want
to remain a leading company in environmental and social fields, then sound out
opinions from various NGOs. Maintainrelationships with NGOs that offer appropriate advice on Toppan’s activities.
NGOs also pay attention to the opinions a company expresses in government policies. I expect Toppan to makeactive statements in enhancing governmental and international environmental
policies.

Sakamoto: What should Toppan think
about as its next step? What should it
aggressively target next?
Nomura: First of all, I hope that
Toppan joins the GC. It’s important that
all employees enjoy the activities inwhich they engage. If they do they willproduce a good product or service forsociety. Research on Toppan’s selling

points at internal meetings and during
interactions with business partners is
also crucial. How are we highly evaluated? What should we try to become?
Those are important questions.

Sakamoto: Counting backward fromthe implementation schedule for ISO
26000, you don’t have enough time.
You need to determine the activities you
should do now.

Harai: The employees at Toppan seemto approach their activities with highexpectations. I see that as one of
Toppan’s virtues. That’s why I’d like
Toppan to continue asking each of its
employees about his or her expectations. People with vision and working
hard are to be received recognition. It’s
the Toppan’s essence.

Toyama: We’ve got piles of tasks. If wethink about the weapons we should
wield on the CSR front, there are various
things we must ponder. We’ve heard
valuable opinions on the advantages
Toppan should publicize and the highexpectations of Toppan employees. I’mgoing to meet with the others to discuss
the points we should bring into focus as
we promote Toppan’s vision.
We are still at the stage of stakeholder
dialogue. Henceforth we hope to engage
in further dialogue until we move into
the stages of stakeholder engagement
and even cooperation. We will sincerely appreciate your assistance andcooperation.
Thank you very much for today.

Adachi: When it comes to the environment, there are still issues we never can
expect to solve even through steadywork on a daily basis. The need for
major reductions in CO2 emissions is one
example. You might need to set up ateam of in-house and external people towork out a game plan. You should
devise a system to allocate money andassign people to research.
Harai: To make a breakthrough insomething you need not just a system,
but a person who sticks to it. A workplace requires a legendary figure such as
Mr. So-and-so who kept fighting forzero emissions.
Ishida: If Toppan looks to ISO 26000
for 2008 as a means to strengthen
stakeholder engagement, you should
reassess the direction in which you’reheaded here. As the first step, you needto rethink your situation and the insufficiencies you need to address. Does the
PDCA really work well?

TOPPAN CSR REPORT 2006

15

CSR Activity Topics
Entry to the United Nations (UN) Global Compact

Topic

01

Toppan announced its upcoming entry to the UNproposed Global Compact (GC) and the support ofits 10 principles to further promote CSR activities.
The Global Compact was proposed by the
Secretary-General of the UN Kofi Annan at theWorld Economic Forum held on January 31, 1999.
It was officially founded at the UN headquarters on
July 26, 2000.
The Global Compact encourages business leaders, international organizations, labor, and civil societies to participate as members in activities for the
support of 10 principles in the four areas of humanrights, labor standards, environment, and anti-corruption.
As of September 2006, the Global Compact hada membership of more than 3,000 companies,
international labor organizations, and civil societies
from 105 countries in the world.

The Global Compact is a mechanism for encouraging every
business to bring about positive changes in the world byobserving and implementing internationally accepted regulations for human rights, labor standards, and the environment

Toppan supports and implements the 10 principles
as a socially responsible corporation with a global
perspective.

The Global Compact
http://www.unglobalcompact.org

in the course of business. Every business is requested to support and implement those regulations within the scope of its
influence. (The addition of a new principle on anti-corruptionin June 2004 increased the number of principles from 9 to 10.)The 10 Global Compact Principles
Human Rights
1. Businesses should support and respect the protection of internationally proclaimed human rights; and2. make sure that they are not complicit in human rights abuses.
Labor Standards
3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
4. the elimination of all forms of forced and compulsory labor;
5. the effective abolition of child labor; and6. the elimination of discrimination in respect of employment and occupation.
Environment
7. Businesses should support a precautionary approach to environmental challenges;
8. undertake initiatives to promote greater environmental responsibility; and9. encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
10. Businesses should work against all forms of corruption, including extortion and bribery.

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TOPPAN CSR REPORT 2006

Recognition as a Company with a Distinguished
Record in the Employment of the Disabled in 2005

Topic

02

Tokyo Metropolitan Prepress Toppan Co., Ltd.

A barrier-free environment developed by installing handrails
and widening the halls forwheelchair traffic

The Minister of Health, Labour and Welfare awarded
Toppan a prize in recognition of its achievement as
a Company with a Distinguished Record in the
Employment of the Disabled in 2005. The award
ceremony was co-hosted by the Ministry of Health,Labour and Welfare and the Japan Organization for
Employment of the Elderly and Persons with
Disabilities. The hosts established the award to publicly commend enterprises with programs to actively
hire persons with physical disabilities. Toppan has
been active in this way for many years. In 1993, forexample, the Company set up Tokyo Metropolitan
Prepress Toppan Co., Ltd., a third sector entity jointly
formed with the Tokyo Metropolitan and Itabashi
Ward governments, to employ persons with physical disabilities. Toppan’s efforts to employ persons
with physical disabilities have enabled the Company
to continuously attain the legal employment rate,
an achievement which has been highly evaluated.
Toppan provides a barrier-free working environment designed in consideration of employees andvisitors. It has also created a friendlier environment
by offering activities such as sign-language courses
and health counseling, as well as stringent measures for safety control and worksite evacuation.

Toppan Awarded the Medal with Dark Blue Ribbon in
Recognition of its Support Activities for Areas Affectedby the Niigata Chuetsu Earthquake
Toppan has been awarded the Medal with Dark
Blue Ribbon from the Cabinet Office for its support
activities for the area affected by the Niigata
Chuetsu earthquake, which occurred in October
2004. The Medal with Dark Blue Ribbon is awarded
to individuals and organizations that contribute
their personal fortunes to causes for the public welfare. Nine individuals and 57 organizations wereawarded the medal this year. Toppan was recognized for its monetary donation to the victims of the
Niigata Chuestu earthquake. As an added measure,some of Toppan’s employees voluntarily formed theToppan Printing Niigata Chuetsu Earthquake Victim
Support Society to collect in-house contributions
from operational sites around the country for donation to the quake-affected areas. The Toppan
Group received a letter of appreciation from thegovernor of Niigata Prefecture. Toppan continues toorganize social action programs in the hopes thatthe area affected will recover as soon as possible.

Bestowal of the Medal with
Dark Blue Ribbon (above) andthe certificate conferred (left)

Topic

03
TOPPAN CSR REPORT 2006

17

CSR Activity Topics

Test Operation of System for Receiving Emergency
Earthquake Reports
In October 2005, Sendai Plant in Sendai, Miyagi
Prefecture, introduced a system for receiving emergency earthquake reports. Trial runs of the systemwere conducted to evaluate items such as the transmission speeds and accuracy of the information
conveyed. Based on emergency earthquake reports
preliminarily issued by the Meteorological Agency
and received on satellite dish, engineers at the
Sendai Plant estimated the earthquake intensities
and the time intervals between the onset of preliminary tremors and the main quakes. When an earthquake with a seismic intensity of five or moreis estimated, an audio message is automaticallybroadcast in the plant and the employees takeemergency procedures to secure safety, such as
halting dangerous work and evacuating areas with
foreseeable risks such as falling objects. Large
quakes can cause breakdowns if they strike whenmachinery is in operation. Precautionary actions will
ensure that operations can return online sooner
with less labor and at a reduced cost. Toppan will
study the deployment of this system in its plants
nationwide in the future.

Topic

04

The satellite dish to receive
emergency earthquake reports(above) and the receiving
system (below)

Promotion of Chromatic Universal Design

Topic

05

Toyo Ink Mfg. Co., Ltd., a Toppan Group company,
has been developing and promoting technologies
for chromatic universal design.
In 2004, Toyo Ink collaborated with Shigeki
Nakauchi, an associate professor from the Department of Information and Computer Science at
Toyohashi University of Technology, to develop atechnology to correct color designs automatically.
People with defects in color perception can distinguish colors more easily with the use of this technology. Toyo Ink is now using this technology in the
Color Finder for Universal Design, a design application to create color designs more efficiently for people with poor recognition of colors in designs. This
software alerts local governments and manufacturers to the specialized needs of persons with impairments in color perception. It may lead to theestablishment of chromatic universal design in society.

The CFUD tool finds colors that can be easily distinguishedby people with defects in color perception.

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TOPPAN CSR REPORT 2006

On Measures Taken on Soil and Groundwater
Pollution
In October 2005, redevelopment work was completed for the soil and groundwater pollution at thevacant premises of the former Fukuoka No. 1 Plant
in Koga, Fukuoka Prefecture. The groundwater has
been monitored eight times over two years to confirm the effects of the work. No problem was foundin any of the measurements taken up to June 2006,
when the third round of inspections was conducted. Toppan reports all of the measured values
to the prefectural government. In a voluntary investigation at the Asaka area in Niiza, Saitama Prefec-

ture, 0.063 mg/l (environmental standard of 0.03mg/l) of a VOC (trichloroethylene) was detectedfrom one investigation well. A soil investigation
around the well shortly afterwards revealed no soil
contamination within the premises. A subsequent
groundwater investigation in the surrounding area(outside the premises) by the prefectural government confirmed that all of the measurements fellwithin the reference values. The Company is now
monitoring the groundwater under government
direction.

Topic

06

Participation in the National Festival for
the Junior Eco-Club
About 80,000 elementary school and junior highschool students engage in environmental activities
organized by the Junior Eco-Club, the brainchild of
the Ministry of the Environment. Toppan sponsored
the National Festival for the Junior Eco-Club at
Nishino Park in Kameyama, Mie Prefecture, on
March 25 and 26, 2006. The event served as an
excellent occasion to exhibit Toppan’s environmentally-friendly household products, mainly those
designed for the Living Environment Field. Toppan
also hosted two “Let’s Make…” workshops at thefestival—“Let’s make fiber from PET bottles” and“Let’s make postcards from Cartocans.”

Topic

07

Events using household materials such as Cartocans andPET bottles

Investigation and Measures Taken on Blasted
Asbestos for Buildings

Topic

08

A new set of Asbestos Damage Prevention Regulations took effect in July 2005. The regulations
require enterprises and persons handling asbestos
to understand how products containing asbestos
are used. They also must endeavor to replace existing asbestos with substitutes and remove blasted
asbestos, a possible cause of drift hazard. Toppan
responded by inspecting the use of asbestos in all
917 of its facilities—plants, sales offices, warehouses, dormitories, and recreation facilities from

August 2005. As a result, 43 facilities were identified as sites requiring new measures for asbestos
control. The measures have now been taken at 42of the facilities and the whole task will be completed by March 2007. Meanwhile, air quality measurements were conducted at 19 facilities whereasbestos was adequately covered and no risk ofdrift hazard was detected. The result was 0.5f/l,
confirming the absence of health hazards.

TOPPAN CSR REPORT 2006

19

Business Activities and Social Responsibility

Business Outline
Toppan has developed its activities through the integrated strength of the Group in five fields of business:
Information & Networks, Living Environment, Electronics, Personal Service, and Next-generation Products.
Toppan’s activities in all of these fields have been expanded with printing technology at the core.

Corporate Profile
Corporate nameHead office
Established
President & CEO
Number of employees(Nonconsolidated)
Number of employees(Consolidated)
Capital(Nonconsolidated)

Group Profile
Toppan Printing Co., Ltd.
1, Kanda Izumi-cho, Chiyoda-ku, Tokyo 101-0024 Japan
Phone +81-3-3835-5111
January 17, 1900
Naoki Adachi
10,582 (end of March 2006)
35,954 (end of March 2006)

The Toppan Group comprises Toppan Printing
Co., Ltd. and 171 related companies (149subsidiaries and 22 affiliates) engaged inmanifold businesses in three main fields: Information & Networks, Living Environment, andElectronics.
On the opposite page you will find an
outline of the positioning of Toppan and its
affiliated companies in these fields.

104.9 billion yen

Fields of Business

IMapion, Internet-based map
information service

ISecurities and Cards

ICommercial Printing

Personal Service
Providing valuable information,
products, and services to individual
users by leveraging our information
technologies, digital and security
technologies, and marketing skills.

IPublications Printing

Information & Networks
Supporting the businesses of customers via the processing, management,
and operation of diverse content and the creation of new value withinformation.

Vibrant
Knowledge
andTechnology

Living Environment
Providing products and services that
contribute to comfortable lifestyles
while meeting the needs of bothindividuals and society from environmental and other standpoints.

Electronics
Providing high-performance partsand electronics products and services in the fields of semiconductors
and displays.

IElectronics

IOptronics

20

TOPPAN CSR REPORT 2006

Next-generation Products
Developing and providing highperformance industrial materials formarkets with large growth potential,
based on technologies such as
coating and photo-lithography.

IHydrogen sensor

IPackaging

IIndustrial Materials

Business Outline

Business Activities and Social Responsibility

Toppan Group Structure
Customers

Living Environment
Electronics

Manufacturing andSales Companies
Toppan Forms Co., Ltd.
2 other companies∗Tosho Printing Co., Ltd.
∗TMP Co., Ltd.
Toppan Printing Co. (America), Inc.
(USA)
Toppan Printing Co., (H.K.) Ltd.
(Hong Kong, China)
Toppan Printing Co., (Shenzhen) Ltd.
(China)Toppan Printing Co., (Shanghai) Ltd.
(China)3 other companies

Manufacturing Companies
Toppan Plastic Co., Ltd.
Toppan Kansai Packs Co., Ltd.
Toppan Saga Yoki Co., Ltd.
Mikkabi Toppan Printing Co., Ltd.
11 other companies
Tama Processing Co., Ltd.
2 other companies

Manufacturing andSales Companies
Toppan Label Co., Ltd.
Toppan Containers Co., Ltd.
Tamapoly Co., Ltd.
Toppan Prosprint Co., Ltd.
2 other companies∗Toyo Ink Mfg. Co., Ltd.
2 other companies
P. T. Toppan Printing Indonesia(Indonesia)
Toppan Interamerica Inc. (USA)
6 other companies

Manufacturing Companies
Niigata Toppan Printing Co., Ltd.
Toppan Shiga Seimitsu Co., Ltd.
5 other companies

Manufacturing andSales Companies
NEC Toppan Circuit Solutions, Inc.
Toppan CFI (Taiwan) Co., Ltd.
Toppan Optical Products, Inc. (USA)Toppan Photomasks, Inc. (USA)
15 other companies∗Advanced Mask Technology Center
GmbH & Co. KG (Germany)
1 other company

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

Information & Networks

Manufacturing Companies
Toppan Display Co., Ltd.
Toppan Graphic Co., Ltd.
Toppan Graphic Communications Co.,Ltd.
Toppan Seihon Co., Ltd.
16 other companies∗Hino Offset Printing Co., Ltd.
2 other companies
Toppan Forms Tokai Co., Ltd.
10 other companies
T.F. Company, Ltd. (Hong Kong, China)
9 other companies∗Data Products Toppan Forms Ltd.
(Thailand)
8 other companies

Sales Companies
froebel-kan co., ltd.
Total Media Development InstituteCo., Ltd.
Toppan Travel Service Corp.
Toppan Multisoft Ltd.
Tokyo Shoseki Co., Ltd.
24 other companies∗Toppan M&I Co., Ltd.
2 other companies
Toppan Printing Co., (Australia) Pty.
Ltd. (Australia)
3 other companies

Sales Companies
Toppan Cosmo, Inc.
2 other companies

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

Products
Raw materials
Service
Notes:• No symbol: subsidiary—149 companies; (asterisk): affiliated companies—22 companies (end of March 2006)• While Toppan Group’s business activities are divided into five fields, three segments are adopted on the basis of the current size of the business and other factors.
• Among Toppan’s subsidiaries, Toppan Forms Co., Ltd. is listed on the First Section of the Tokyo Stock Exchange.
■Main Changes to Operating Companies• The Industrial Materials Division of Toppan Printing Co., Ltd. mergedwith Toppan Cosmo, Inc. and became a manufacturing and sales
company on July 1, 2005.
• Dupont Photomasks (U.S.) became a wholly owned subsidiary on April
23, 2005.
• Tokyo Magnetic Printing Co., Ltd. changed its name to TMP Co., Ltd. on
September 1, 2005.
• Bitway, a digital content distribution service, was spun off into aseparate company, Bitway Co., Ltd., on October 3, 2005.

■Scope of the Report
This report is principally concerned with the social and environmental activities carried out by
Toppan Printing Co., Ltd. and the organizations included in the scope of Toppan’s
consolidated accounting. The report mainly covers the activities carried out in fiscal 2005
(April 2005 to March 2006), but it also presents supplementary information on activities
undertaken during fiscal 2004 or before and activities scheduled for fiscal 2006 or after. Most
data on personnel in this report covers the personnel of Toppan Printing Co., Ltd. only. The
scope of the environmental performance data and environmental accounting is determinedbased on the importance of each subsidiary in the field of environmental conservation.
(Including Toppan Forms Co., Ltd., Toppan Cosmo, Inc., Toppan Prosprint Co., Ltd., Toppan
Containers Co., Ltd., Toppan Label Co., Ltd., Toppan Logistics Co., Ltd., and Tamapoly Co.,
Ltd.) The scope of EMS encompasses 58 domestic sites and 13 overseas sites.

TOPPAN CSR REPORT 2006

21

Business Activities and Social Responsibility

Outline of Consolidated
Operating Performance
The Japanese economy recovered steadily
in 2005, buoyed by improved corporate
earnings and growth in capital investment and individual consumption.
Domestic advertisement expenses recovered and business for electronic devices
such as semiconductors and displays
remained outstanding, though the total

value of shipments for the printing industry declined for the eighth year in a row
due to elevated material cost caused byrising crude oil prices.
Under these circumstances, the Toppan
Group aggressively promoted demandcreative sales activities and ongoingcost-reduction measures with the full
integrated strength of the Group, basedon the Corporate Philosophy establishedin TOPPAN VISION 21.

Consequently, consolidated sales increased 9.5% from the previous year
to 1,548.2 billion yen in fiscal 2005.
Operating income increased 4.8% to 91
billion yen, net income, meanwhile,stood at 15.1 billion yen.

Sales

Operating Income

Net Income

1,600■Consolidated ■Nonconsolidated (Billion yen)
1,296.1 1,251.6 1,297.3
911.7

914.6

■Consolidated ■Nonconsolidated (Million yen)
91,08586,938

952.8

947.1

63,84760,000

400

0

2002

2003

2004

2005
(Fiscal year)

Sales by Segment (consolidated)(Billion yen)

Electronics
343.0

0

40,57430,000 27,847

34,33539,931
31,00038,09230,02220,00020,78329,125
21,424

31,22918,962

21,567

21,913

15,14810,00020,0002001■Consolidated ■Nonconsolidated (Million yen)

61,956
51,168800
40,00050,00040,00080,000

1,200
960.2

100,000

1,413.5 1,548.2

2001

2002

2003

2004

2005
(Fiscal year)

0

2001

2002

2003

2004

2005
(Fiscal year)

Sales by Area (consolidated)
Europe and Americas
63.9(Billion yen)

Asia excluding
Japan 124.5

Information &Networks
840.8

LivingEnvironment
364.2

Number of Employees
40,000

Number of Employees by Segment(consolidated)■Consolidated ■Nonconsolidated (Employees)
35,954
31,61033,292

32,178Japan 1,359.7

32,724

Electronics
8,023

30,000(Employees)

Company-wide
position545

20,00012,74812,053

11,512

10,548

2001

2002

2003

2004

10,000022TOPPAN CSR REPORT 2006

10,582

2005(Fiscal year)

LivingEnvironment
8,202

Information &Networks
19,184

Note: In “Sales by Segment (consolidated),” sales
are divided into three segments on the basisof the size of the business and other factors.

Business Outline

Fiscal 2001
Sales (million yen)

Fiscal 2002

Fiscal 2003

Fiscal 2004

Fiscal 2005

1,296,195

1,251,605

1,297,357

1,413,580

1,548,208

Operating income (million yen)

63,84751,16861,95686,93891,085

Net income (million yen)

27,847

29,12531,22940,574

15,148

Total assets (million yen)

1,354,999

1,317,454

1,461,305

1,483,477

1,727,636

Shareholders’ equity (million yen)

707,489

715,438

740,481768,245803,678

Interest bearing debt (million yen)

144,265

136,294239,209

205,008

304,736

Capital expenditures (million yen)

83,82083,312

85,10886,625

119,221

R&D expenses (million yen)

19,144

20,252

21,302

22,25527,593

Corporate, residential & enterprise taxes (million yen)

27,422

24,872

24,91822,15434,073

Share price—high (yen)

1,410

1,437

1,396

1,380

1,648

Share price—low (yen)

944

732

690

1,002

1,050

Net income per share (Basic) (yen)

40.84

42.29

45.57

60.09

22.13

Net income per share (Diluted) (yen)

40.27

41.77

44.86

59.94

22.02

Shareholders’ equity per share (yen)1,037.62

1,053.22

1,104.62

1,154.21

1,216.04

Dividends per share (yen)

16.00

16.00

17.00

19.00

20.00

Return on assets (ROA; %)

2.0

2.2

2.2

2.8

0.9

Return on equity (ROE; %)

3.9

4.1

4.3

5.4

1.9

Cash and cash equivalents at end of period (million yen)

141,179

107,214202,149

168,804

206,974

Number of employees

31,61033,292

32,17832,72435,954

Notes:
1. Sales do not include consumption taxes.
2. The number of employees is indicated as the “Number of staff on payroll.”
3. From the start of fiscal 2002 the Company has adopted “Accounting
standards related to treasury stock and the use of legal reserves.”
4. From the start of fiscal 2002 the Company has adopted the “Accounting
standards related to net earnings per share” and “Guidelines on accounting
standards related to net earnings per share” in calculating net assets per

Capital Expenditures

share, net income per share (basic), and net income per share (diluted).
5. From the start of fiscal 2004 the Company has adopted “Accounting
standards related to the impairment of fixed assets” and “Guidelines on
accounting standards related to the impairment of fixed assets.”
6. High and low share prices are prices on the first section of the Tokyo Stock
Exchange. For more detailed data, please see the IR pages of the Toppan
website.

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

150

(Billion yen)
2,000

Corporate, Residential & Enterprise
Taxes

(%)
4.0

40

(Billion yen)

3.0

30

2.0

20

1.0

10

1,727.6
119.221120
90

83.82083.31285.10886.625

1,461.3
1,500 1,354.9
1,317.4
2.2
2.2
2.0
1,000

1,483.4

24.918

0.9

2001

2002

2003

2004

2005
(Fiscal year)

R&D Expenses(Billion yen)
27.59319.14420.252

0

2001

2002

2003

2004

0
2005
(Fiscal year)

0

2001

2002

2003

2004

2005
(Fiscal year)

Shareholders’ Equity & Return on
Equity (ROE)30
21.30222.255(Billion yen)
1,000
800

707.4

(%)
10.0
715.4

740.4

768.2

803.6

5.4

600
3.9

4.1

8.0
6.0

4.3

400

4.0

10

1.9
200

0

24.87222.154

500

30

20

34.07327.4222.8

600Business Activities and Social Responsibility

Key Financial Data (consolidated)

2001

2002

2003

2004

2005
(Fiscal year)

0

2.0

2001

2002

2003

2004

0
2005
(Fiscal year)

TOPPAN CSR REPORT 2006

23

Business Activities and Social Responsibility

Toppan’s Social Responsibilities
Toppan has been contributing to the development of society with a focus on printing since the Company’s
foundation in 1900. Toppan devotes itself to comprehensive CSR activities based on TOPPAN VISION 21,
the Group vision for the 21st century.

Toppan’s History andSocial Responsibility
Toppan was founded in 1900 by a groupof printing engineers from the former
Finance Ministry who wished to build
an industry around the most advanced
printing plate technology of the day, theErhört Letterpress. Europeans flocked to
the International Paris Exhibition the verysame year. Japan was steadily building up
its modern industries in the aftermath of
the Meiji Restoration.
The printing industry contributed tosociety in three main areas at this time: 1)
printing of banknotes, bonds and securities, important instruments for the establishment of modern capitalism; 2) the
publication of newspapers, the medium
for public discussion on the progress ofcivilization; and 3) the publication oftranslations, novels, and magazines toenlighten the public and encourage theestablishment of the modern state.
Toppan was established in this era andhas spent the last century widely expanding and playing important roles in allof its business fields with printing technology at its core. The Company has
advanced the information culture of thenation by printing and disseminating
sundry information in books, magazines,
pamphlets, calendars, food packages,
wallpaper, and countless other goods
and materials ubiquitous in daily life.
More recently, in the field of Electronics,
Toppan has also been helping to improve
quality of life for the public by producing
photomasks and color filters.
Toppan has fulfilled its social responsibilities through the business activities it
has engaged in since its foundation.

Corporate Philosophy

Concept Represented in the Six Lines of
the Corporate Philosophy

Each of us shall

Each employee shares these values and bears the responsibility of
upholding them.

reciprocate our customers’ continued trust,

Nurture and develop a relationship of trust with customers.

create dedicated products by

Take pride in our products and services and recognize their importanceas creations for the customer.

harnessing our vibrant knowledge and technology,

Continue and strengthen our operations through the use of knowledge(marketing and planning) and technology concerning printing, to attainfaithful reproduction with detail and creativity.

and contribute to a fulfilling lifestyle asCreate fulfilling lifestyles within society by giving shape to the aspirations
to communicate both on individual and corporate levels.

a mainstay of information and culture.

Recognize the universal role of printing as a medium for information andculture.

Established in June 2000

24

As Toppan ventures into the future, it
created TOPPAN VISION 21 as a foundation for its CSR in the 21st century in
2000, the centennial anniversary of theCompany.

TOPPAN CSR REPORT 2006

Toppan’s Social Responsibilities

TOPPAN VISION 21 consists of Toppan’s
new Corporate Structure and Business
Fields. The Corporate Structure, meanwhile, is made up of three elements:
Toppan’s Corporate Philosophy, Corporate Creed, and Conduct Guidelines.
These elements specify the complete system of values and standards of the
Toppan Group. By realizing its Corporate
Structure, Toppan can fulfill its social
responsibilities.
Corporate Philosophy
The Corporate Philosophy is the top-level
concept that underpins Toppan’s corporate activities and defines its most important values and thinking. Every sentenceof the Corporate Philosophy has been
wrought with Toppan’s passion.

Corporate Creed and Conduct
Guidelines
The Corporate Creed expresses the standards that Toppan applies to its activities.
The Conduct Guidelines build on the
Corporate Philosophy, elaborate the
Corporate Creed, and express the behavioral norms on the basis of every
employee’s compliance with laws andregulations and corporate ethics in daily
work.
Under no circumstances will any member of the Toppan Group engage in an
operational activity that infringes therules of society or poses any risk of environmental or social harm. The Group also
understands that any faltering in thedevelopment of its operational activities
may make it difficult to guarantee a profitable return and benefit for society.
Every employee must closely observe

the Conduct Guidelines if Toppan is tofulfill its social obligations as a corporate
citizen.
These Conduct Guidelines must be
kept open to review. This is essential for
rationally adapting to changes in corporate and social environments. In April
2006 Toppan carried out a second revision to reflect priority management
themes and to change the language used
to subjective expressions.

Corporate Creed

Conduct Guidelines

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

Chapter 1
Basic Principles
1. Respecting basic human rights

To strive for total innovation from a global
perspective by conducting marketing andtechnological development rich in originality.

2. Maintaining public order and standards of decency

To conduct fair and open business operations
while acknowledging our social responsibilities
and aspiring for harmony with
our global environment.

5. Striving to improve quality

To create a positive working environment by
maximizing our individual talents andstrengths as a team.
To enhance our corporate standing andpromote the continual development of
the Toppan Group throughthe exploration of new possibilities.
Established in June 2000

Business Activities and Social Responsibility

Toppan’s Passion

3. Complying with laws and ethics
4. Conducting fair business operations
6. Appropriate management and disclosure of
information
7. Environmental and safety considerations
Chapter 2
Specific Conduct Guidelines
Section 1: Building customer trust
Section 2: Reforming operations
Section 3: Fulfilling corporate responsibilities
Section 4: Creating a positive work environment
Section 5: Developing the Toppan Group
Established in June 2000; revised in April 2006
For more detailed information on the Conduct Guidelines, please see P.81.

TOPPAN CSR REPORT 2006

25

Business Activities and Social Responsibility

Toppan’s Relationships with
Stakeholders
Toppan can only succeed in its businesses
and stay viable as a corporation throughstrong ties to various stakeholders. The
Company has defined five categories of
stakeholders vital for its business activities: customers, business partners, communities, employees, and shareholders/investors. Toppan recognizes the great
importance of maintaining good communications with stakeholders and building
closer relationships of trust to enable
continuous development.
Companies Toppan deals with directlyin business are not the only customers
Toppan serves. End users are also customers. By listening to the ideas of cus-

tomers and employees, Toppan can study
the potential of those ideas and work torealize them one by one. Through thisapproach, Toppan opens up new worldsof possibility to surprise and delight society.

Toppan will shape its CSR activities in2006 based on stakeholder advice to sustain effective and constant dialogue withstakeholders. This will be the first step for
introducing stakeholder engagement into
the Toppan CSR management cycle.

Communication with Stakeholders
Toppan’s CSR activities have been promoted through dialogues with stakeholders. Toppan invited five key figures
representative of stakeholders to participate in “What We Expect from Toppan’s
CSR,” a roundtable discussion held tocollect valuable opinions on CSR activities
in 2004. Since 2005, another expert in
the CSR field has participated in internal
meetings to offer guidance on setting
new tasks and other forms of planning.

Toppan’s Relationship with Stakeholders and Tools for Communication
IFor All Stakeholders

IFor Customers

Corporate Guide
CSR Report
Various guides for individual divisions
Financial statements
Quarterly business reports
Website, etc.

Toppan’s customers are not just theenterprises with which Toppan does
business. Directly or indirectly, Toppan
serves just about every person insociety. The Company strives to merit
the trust of its customers by satisfying
their requirements, staying attuned to
the latest changes in the environment,
and adapting to the trends of thetimes with sincerity, enthusiasm, andcreativity.
Various reports on business operations
Various brochures on products
Various newsletters, etc.

IFor Shareholders and Investors
Shareholders and investors expect andneed a complete and accurate understanding of Toppan’s activities. Toppan
understands this and goes to great
lengths to disclose its corporate information and explain its activities promptly
and appropriately. By developing its
business and increasing its corporate
value, Toppan aims to be appreciatedby shareholders and society alike.
Shareholder newsletter Toppan Story
Business reports
Annual Report, etc.

IFor Employees
Toppan’s employees are by far the
single largest resource for its business.
The Company never stops searching
for ways to create a lively, energizing
workplace and cultivate the individual
abilities of its employees. It does so outof respect for them and as an expression of gratitude for their contributions.
Internal newsletter CONVEX
Overseas internal newsletter Interlink
Pamphlets on welfare benefits, etc.

26

TOPPAN CSR REPORT 2006

Customers

IFor Business Partners

Shareholders
andInvestors

Employees

Business
Partners

Communities

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

IFor Communities
The business conducted by Toppan
affects local communities and theglobal environment in many ways.
Toppan strives to conserve the environment, win the trust of communities andbenefit society as a corporate citizen.
Plant guides
Operational site reporting
Annually report Printing Museum, etc.

Toppan’s Social Responsibilities

Toppan defines its priority themes as a
guiding framework for its CSR activities.

To earn stakeholders’ trust and improve
brand value, the Company should recognize its social responsibilities and fulfill
them sincerely. The objective of Toppan’s
CSR is to secure a sustainable businessand create new added value in businessby resolving social challenges and needs
through CSR activities. The Company
spares no effort to operate as a trustworthy corporate citizen in perpetual growth.
The business activities under the Corporate Philosophy, Corporate Creed, andConduct Guidelines result in the fulfillment of social responsibilities. In keepingwith the concept of triple bottom lines—
the balanced development of the economy, society, and the environment—

Six Priority Themes
To proceed with more effective andinvolved CSR activities to fulfill social
responsibilities, Toppan has set out six
priority themes of focus.
The CSR activities have been carriedout according to the action points andgoals for each priority theme. Each pointand goal is reviewed yearly to assess thelevel of achievement.

Business Activities and Social Responsibility

Basic Concept of CSR

laboration with the relevant management
departments of the head office and theCompliance Department of the Legal
Affairs Division, the department undertaking administrative operation. These
parties regularly convene a CSR promotion meeting to assess the progress ofeach action point and discuss ways toresolve related problems and challenges.

System for Promoting CSR
To promote CSR on a wider scale, thePresident & CEO and Executive Vice-president in charge of CSR are leading a
move to develop activities through col-Relationship between Six Priority Themes and the Company

Toppan’s CSR Promotion System

Triple Bottom Lines

President & CEO

EconomyExecutive
Vice-president
CSR Promotion Committee
Administration

Corporate Structure
Environment

Society

Legal Affairs Division
Secretary Department
Information andPublicity DivisionCorporate Planning
Division

Corporate Philosophy

Personnel & Labor
Relations DivisionCorporate GovernanceCorporate Creed

Compliance

Finance &Accounting DivisionCorporate Manufacturing,Technology & Research Division

Conduct Guidelines
Purchasing DivisionInternational Division

TOPPAN VISION 21
Improving Customer
Satisfaction

Six Priority Themes

Respecting and Leveraging
Human Assets

Commitment to
the Environment

Activities for Society
and Culture

TOPPAN CSR REPORT 2006

27

Business Activities and Social Responsibility

Review of CSR Activities and New Initiatives
Toppan carries out various CSR activities based on the action points established for each of the six priority themes
and then reviews them annually. The following two pages summarize the main activities and achievements infiscal 2005 and issues and targets for fiscal 2006 and beyond.

Results of Fiscal 2005 and Future Issues and Targets
Priority Themes
Corporate
GovernanceCompliance

Action Points
in Fiscal 2005
Strengthening audit andcontrol functions

Activities for Society
and Culture•Follow-up audits in 10 operational sites to confirm their compliance with laws and in-house
regulations•Comprehensive audits in 3 divisions and 9 domestic/overseas subsidiaries•Operation audits for manufacturing departments in 3 divisions•Reconfirmation of information flow to streamline and quicken communication for
the emergency initial response mechanism•Ongoing examination of the basic plan for disaster countermeasures in connection withthe business continuation plan

B

Increase the transparencyof management activities•Annual Report in Japanese•Disclosure of the annual remuneration of all directors and corporate auditors in
the CSR ReportA

Compliance promotion
activities•The second revision of the Conduct Guidelines•28 training sessions for Conduct Guidelines Promotion Leaders and participation of 206
new Leaders in the correspondence course•Delivery of 11 Conduct Guidelines Newsletters through the intranet and awarenessdevelopment training for employees•23 training sessions on the revised Antitrust Laws for sales personnel

A

Information risk
management•Acquisition of Privacy Mark certifications by 8 divisions and 10 Group companies•Confirmation on the creation of management procedure manuals in all departments that
handle personal information•Participation of 98% of employees, including those in manufacturing subsidiaries,
in e-learning through the intranet

A

Strengthening supply
chain management•Ongoing review of compliance with the ISO 9000-series supplier appraisal and Group-wideprocurement policy and supplier selection standards from the viewpoint of CSR procurement•Ongoing review of operating procedures for feeding back the results of supplier checkups
in connection with supplier selection standards

B•Guidance and training on quality improvement in 11 plants by 3 experienced in-house
consultants conversant with Toppan’s proprietary technologies•Quality assurance audits for food product packaging and follow-up audits in 19 plants

A

Technologicaldevelopment aimed
at value creation•Cost reduction for resists and improved production efficiency through the installation of
coating equipment for large-size color filters•Development of chips and devices for tailored medical care—completed and now in testingA

Products and services
developed with society
in mind•Development and commercialization of products based on Toppan’s Six Principles on
Universal Design•Active participation in the International Association for Universal Design, Universal Design
Consortium, and similar organizations

B

Merit-based personnel
policies•Revision of the salary and promotion system for managerial staff, with plans for
implementation by April 2007
•Revision of the retirement allowance system to reflect contributions to the Company more
precisely

B

Foster, develop, and utilize •Human Resources Development Leader Meetings to report present situations and analyze
human assets
effects by rotation•Career development training as follow-up education for new employees, and Career Design
Training added to the Toppan Business School curriculumA

Leveraging human assets•Formation of 4 all-female teams in 3 divisions to develop businesses that leverage female
perspectives and sensitivities•Revision of the Senior Reemployment System and creation of new opportunities for 65-yearolds to work based on a recent revision of the Law Concerning Stabilization of Employmentof Older Persons

A

Realize a safe and secure
working environment•Launch of project encompassing work-life balance and diversity, and review of related
implementation measures•Creation of a Mental Health Support Team in the Personnel & Labor Relations Division in thehead office and issuance of the Health Enhancement Manifesto

A

Contributing to the•5th anniversary exhibition and summer vacation experience workshops in the Printing
traditions and development Museum, Tokyoof culture and sharing•Concerts at Toppan Hall and 14 Espoir Special concerts to foster talented youth from
impressions
overseasA

Tree planting activities•Support and participation in tree planting projects

A

Activities for contributing
to local communities•Broad communication with communities through cleanup activities, plant tours,
open-houses for local residents at operational sites, events, and so on

ACommitment toTargets and results for Toppan’s environmental commitment shown on P.58
the Environment
Valuation standard: S, Results achieved greatly in excess of targets; A, Targets achieved; B, Activities fully carried out but targets unachieved;
C, Activities were insufficient

28

Selfevaluation
A

Improve risk management
system

Improving Customer Strengthening productSatisfaction
quality assurance

Respecting andLeveraging Human
AssetsMain Activities and Achievements in Fiscal 2005

TOPPAN CSR REPORT 2006

A

Review of CSR Activities and New Initiatives

Main Issues and Targets for Fiscal 2006 and Beyond

Business Activities and Social Responsibility

Action Points
in Fiscal 2006
Strengthening audit andcontrol functions

For Details•Comprehensive audits for divisions and subsidiaries to confirm common issues on a Group-wide basis•Enhancement of audit tools to upgrade quality, speed, and skills•Maintenance of in-house regulations, etc. and creation of a management structure•Management activities with increased transparency

P.30

Improve risk management
system•Risk reexamination, regular risk evaluation, and establishment of risk management rules•Countermeasures against earthquake disasters

P.32

Compliance promotion
activities•Dissemination of revised Conduct Guidelines through briefing sessions•Establishment and dissemination of Conduct Guidelines in subsidiaries•Reelection of Conduct Guidelines Promotion Leaders to increase the number of employees who enroll in Leader
training and to improve the ratio of female Leaders•e-learning for the Conduct Guidelines

P.34

Information risk
management•Integration of guidebooks on information security management with guidebooks on personal information
management, and education throughout the Company, including manufacturing subsidiaries•Internal audits for the main manufacturing subsidiaries and partner companies by the head office and all divisions•Confirmation on the progress of the internal audits in divisions and audits for each promotional department andoffice by the head office

P.36

Strengthening supply
chain management•Creation of a Basic Policy of CSR Procurement and the issuance of Requests on CSR Procurement•Installation of hotlines for suppliers and the promotion of CSR procurement

P.38

Strengthening productquality assurance•Increase of 1 experienced in-house consultant, and thorough guidance and training in 19 plants•Ongoing product quality assurance audits for measures to prevent contamination of foreign matter in foodproduct packaging and food filling plants

P.42

Technologicaldevelopment aimed
at value creation•Commercialization of more products applying electronic paper technology and establishment of elemental
technologies responsive to colorization and flexibilization•Evaluation of system effectiveness through test operation of chips and devices for tailored medical care

P.44

Products and services
developed with society
in mind•Ongoing examination of development themes based on Toppan’s Six Principles on Universal Design•Participation in external organizations such as the International Association for Universal Design, and active
information delivery

P.44

Merit-based personnel
policies•Revision and disclosure of the salary and promotion system for managerial staff

P.46

Foster, develop, and utilize •Reinforced coordination between Company-wide training and divisional/departmental training through thehuman assets
ongoing Human Resources Development Leader Meetings•Education on the promotion of CSR activities through rank-based training•Enhanced understanding of work contents by applicants through internships, summer recruitment, and so on

P.48

Leveraging human assets•Increased leveraging of female employees through positive action (ratio of females in managerial and supervisory
positions: 2.5% as of April 2007)•Reexamination of treatment for experienced employees (response to the continuous employment system andleveraging of middle-aged and elderly employees)

P.49

Realize a safe and secure
working environment•Initiation of labor and management project to enhance its measures to support the development of the next generation•Promotion of action plans towards certification acquirement for the Law for Measures to Supporting theDevelopment of the Next Generation•Cuts in working hours through strengthened organization management, and health guidance for employees who
work long hours•Company-wide implementation of mental health enhancement activities (introduction of mental health curriculumin managerial staff training and rank-based training)

P.50•Promotion of Kan-kan Gaku-gaku Museum (frank and lively debate on museums), a cooperative project with
Contributing to the
traditions and development other corporate museums in Japan•Information and cooperative activities with educational institutions, etc. in and around Bunkyo Wardof culture and sharing
impressions•33 Toppan hall concerts and ongoing Lunchtime Concerts to foster talented youth

P.52

Tree planting activities•Ongoing support and participation in tree planting projects

P.75

Activities for contributing
to local communities•Ongoing cleanup activities, plant tours, open-houses for local residents at operational sites, events, and so on

P.54

Commitment to
the environment

Medium- and Long-term Environmental Targets in fiscal 2006 and beyond shown on P.60

P.55–

TOPPAN CSR REPORT 2006

29

Business Activities and Social Responsibility

Corporate GovernanceCorporate governance represents the foundation on which Toppan can fulfill its social responsibilities promptly
and thoroughly. The Company is enriching corporate governance by reinforcing its auditing and supervising
function in business operations, enhancing its risk management system, and improving the transparency of its
corporate activities.

Toppan’s Corporate
Governanceaging the technology and expertise ofGroup companies while promoting theeffective use of production assets.

Toppan places top priority on three issues
in its corporate management: developing
continuously, raising its corporate value,
and winning the approval of shareholders, customers, and society as a whole.
While the Company is equipped with theBoard of Corporate Auditors under theCompany Law, it has strengthened
the propriety and effectiveness of its
governance system by establishing theManagement Audit Office, the Compliance Department, and the Ecology
Center. Just days after the Company Law
went into force in May 2006, the Boardof Directors resolved the basic policies forthe establishment of an internal control
system at Toppan.
Toppan governance is also geared tomaximize corporate value of the Groupand establish integrated management
structures with Group companies basedon the Related Company Administration
Regulations formulated to promote fairGroup management. Capitalizing on
the integrated strength of the Group,
Toppan aims to provide products and services with growing profitability by lever-Directors, the Board of Directors, andVarious Meetings
Toppan has 31 directors on its board.
Board meetings are held monthly andwhenever pressing business requires
action or deliberation.
Especially important business mattersare examined beforehand in Management Committees made up of directors
selected by the President & CEO. The
goal is to lay weight on managerial efficiency in business judgment. Directors
from the head office and other directors
acting as division chiefs come to thesemeetings to discuss and examine measures and policies directly related to thebusiness from various perspectives.
Corporate Auditors, Board of
Corporate Auditors, and Audit Firm
Toppan has adopted a system of corporate auditors. One of the three corporate
auditors (as of the end of March 2006)
appointed is external. In addition to thesix meetings a year for the Board of
Corporate Auditors, corporate auditors

attend important meetings of the Boardof Directors, meetings of the Management Committee, and management discussions on the environment and otherpressing issues. They regularly audit operational sites and affiliated companies
from a preventive perspective to ensure
the legality of the business activities ofthe directors and departments. Full compliance with regulations and Company
policy is crucial for smooth and appropriate management.
The Board of Corporate Auditors of
the Toppan Group also meets on a regular basis to improve the effectiveness of
the audits by the corporate auditors on aGroup-wide basis.
Toppan’s corporate auditors receive
advice from KPMG AZSA & Co., an independent auditing firm. KPMG AZSA
cooperates with the Company’s corporate auditors to verify the propriety of theCompany’s accounts and enhance thereliability and transparency of financial
information.

Toppan’s Corporate Governance System
Meeting of Shareholders
Appointment or
dismissal

Appointment or
dismissal

Auditing
Audit firm

Auditing
Administrative Auditing
Departments
Supervising
Directors

Management
Committee

Considers issues prior to board of directors’
meetings

Management
Audit Office

Investigates and audits the legality andappropriateness of operational activities

ComplianceDepartment

Promotes, verifies and audits the strict observanceof laws and regulations and the establishment of
ethical business practices

Ecology Center

Coordination and sustained improvement ofToppan’s environmental activities

Auditing

Working together

30

TOPPAN CSR REPORT 2006

Auditing

Working
togetherWorking
togetherWorking
together

Corporate Auditors, Board of Corporate Auditors

Board ofDirectors

Appointment or
dismissal

Corporate GovernanceInternal Audits by the Management
Audit Office
As a part of corporate governance,
Toppan has established the Management
Audit Office to handle internal audits forthe creation of a firm auditing system tokeep track of overall management activities and reduce management risks.
The office remains independent of
the operating departments to improvesoundness in management through its
audits. Its audits to date have included amanagement audit and operation audits
at each operational site and plant. The
management audit is conducted to verify
and evaluate compliance with businessgoals, the effectiveness of risk control,
and a variety of other management areas
with an emphasis on process. The operation audit reviews and confirms the current status of compliance with laws andinternal regulations, and mechanisms toprevent improper practices and obstacles
to efficiency or accuracy in daily operations. Proposals for improvements areissued when necessary and the audit
results are reported to the President &CEO, each director in charge of relevant
departments, and corporate auditors.
In fiscal 2005, as in the year before,
the Management Audit Office performed
follow-up audits in 10 operational sites toreview overall compliance in personal
information and information security
management, Subcontract Law, personnel administration, safety-, health- andenvironment-related matters, etc. As a
new activity, it also began conducting acomprehensive audit consisting of management audits and operation audits inthree divisions and nine domestic/overseas subsidiaries in fiscal 2005. The operation audit covers information systems
and manufacturing/production management and quality control methods inthree divisions cross-sectionally to press
forward with the Company-wide challenge of improving quality and reducing
cost.
Toppan will continue to strengthen its
auditing functions in fiscal 2006 by establishing a firmer internal control system incompliance with the Company Law.

Business Activities and Social Responsibility

Strengthening Audit andControl Functions

Auditing and Supervising Functions
by the Compliance Department andEcology Center
The Compliance Department createdunder the Legal Affairs Division in April
2003 spearheads efforts to ensure compliance with laws and to firmly establish
corporate ethics systems throughout theCompany. Other department functions
include employee education on compliance with Conduct Guidelines and theexisting regulations, and internal audits
conducted collaboratively with quality
assurance departments to improve effectiveness in information security andpersonal information management in
operational sites that have acquired thePrivacy Mark certification.
The Ecology Center handles environment-related audits of operational sites.
The center requests the sites to submit an
Improvement Plan, monitors the progressand effects of the plans, and creates
mechanisms to unfailingly achieve improvement goals. The center now adheres to astricter set of internal management standards and evaluates compliance withthose standards in addition to the various
environment-related laws and regulations.

Internal Audits Conducted in Fiscal 2005
Audit Items

Fiscal 2005 Results

Comprehensive Audit(including management
audit and operation audit)

Overall audit of business management,
operation management and compliance withlaws and regulations

3 divisions,
5 domestic subsidiaries,
4 overseas subsidiaries

Management Audit

Follow-up audit of large-scale capital
investments

5 businesses

Operation Audit

Audit of manufacturing/production
management and quality control
Information system audit

3 divisions,
1 department of the head
officeFollow-up Audit

Cross-sectional audit of compliance for divisions 4 divisions,
6 divisions,
Cross-sectional audit of procurement
1 department of the headmanagement and complianceoffice, 1 domestic subsidiary,
Information system audit
2 divisions
Audit of manufacturing/production
management

Internal audit of information security

Internal environmental audit

TOPPAN CSR REPORT 2006

31

Business Activities and Social Responsibility

Improve Risk Management
SystemThe Crisis Management Committee created in the head office formulates andpromotes a comprehensive risk management system to provide both crisis management and risk management functions
via weekly meetings. In building its comprehensive risk management system,
Toppan began by systematically identifying the most threatening risks to theCompany—the risks that require tightand absolute control when they become
actual. As shown in the chart below,
Toppan has instituted a systematic risk
management framework that allots the
responsibility of risk response to specificdepartments in the head office basedon the type of risks involved. Since July
2004, the Company has established anurgent response system for risks requiring
a rapid response. Later, in fiscal 2005, itreconfirmed the information flow to
improve the efficiency and speed of communication.
In fiscal 2006, Toppan plans to establish and regularize the risk evaluation
methods while creating an internal

control system in compliance with theCompany Law. Relevant internal rules
and management systems, meanwhile,should be prepared and maintained.
Countermeasures against Earthquake
Disasters
The system for receiving emergency
earthquake reports operated by theJapan Meteorological Agency has been
introduced in the Sendai Plant and tested(➞P.18). In addition to the regular fire
drills, Toppan held a vestibule training
session to test whether escape would bepossible in the event of a large-scale
earthquake in the area of the head office.
The Company has decided to continue toreview the basic plans for countermeasures against earthquake disasters in connection with the business continuationplans.

Increase the Transparency ofManagement Activities
Toppan is working to improve the transparency of its management activities.
Much of this effort focuses on the active
disclosure of information. Toppan has created various communication tools to satisfy the needs of its stakeholders (➞P.26).
Using these tools, Toppan reliably fulfills
its duty of explaining its operations withtimely and appropriate information.
Disclosure of IR Information
Under the internal Basic Policy on IR,
Toppan has established an exclusive IR
website to ensure fairness and transparency in its disclosure of IR information.
Toppan has been announcing its financial
results quarterly via two channels: its
website, and Toppan Story, a newsletterfor shareholders. Public meetings withinstitutional investors and analysts arealso held to explain the Company’s
interim and full-year results. All documents distributed at the meetings areposted on the Company’s website.
Since fiscal 2005, the annual reporthas been published in Japanese as well as

Risk to be Managed and Relevant Main Divisions at the Head Office
Risk to be Managed
Accidents involving
products/product liability

Accidents or disasters related tocompany operations

Accidents or complaints related to products
Accidents related to main systems
Accidents at the workplace, traffic accidents, other accidents involving employees
Debt-related incidents
Legal problems with orders received
Leakage of personal information or internal confidential information
Leakage of personal information or internal confidential information through a computer
network
Damage to the Company’s computer system for customers as a result of cyber terrorism,
illegal access, or illegal usage
Accidents or disasters related to fires or explosions
Illegal activity related to the storage of solvents, management of hazardous chemicals, etc.

Defamation, slander, and othercriminal damages
Natural disasters
Unlawful activities related toexternal contracts
Infringement of intellectual property
Environmental problems

32

TOPPAN CSR REPORT 2006

Damage to the Company’s internal computer system due to cyber terrorism, illegal access,illegal usage, or leakage of personal information or internal confidential information
Crimes against the Company (threats, bribery, theft)Material losses or personal accidents sustained by customers or the Company due toearthquakes, wind or water damage, lightning, etc.
Violations of Subcontract Law, illegal activity with suppliers
Infringement of patents, trademarks, copyrights
Violations of environmental laws or standards, illegal disposal of industrial waste

Division
Corporate Manufacturing,Technology & ResearchBusiness Innovation
Personnel & Labor Relations
Finance & Accounting
Legal Affairs
Legal Affairs
E-businessE-businessCorporate Manufacturing,Technology & Research
Corporate Manufacturing,Technology & ResearchBusiness Innovation
Personnel & Labor Relations
Personnel & Labor Relations
Corporate Planning
Legal Affairs
Corporate Manufacturing,Technology & ResearchCorporate Governance

Remuneration to Directors andRetiring Directors
Remuneration to directors is determinedat the Board of Directors by the endorsement of the Meeting of Shareholders,taking into account performance, responsible roles, and the fulfillment of operational targets of each director. The
retirement allowance for directors is
decided based on internal rules relating toretirement allowances; i.e., the sum totalof monthly remuneration at the time ofretirement multiplied by the coefficient of
the period in office at each rank and on an
individually ranked basis. Total annual
remuneration to directors: 1,201 million
yen (including 8 million yen for an outside
director.); total annual remuneration tocorporate auditors: 64 million yen (including 16 million yen for outside auditors) in
fiscal 2005*.

Basic Policy on IR
1. Information Disclosure Standards
Toppan discloses all information required
under the Rules on Timely Disclosure established by the Tokyo Stock Exchange. It alsouses its website in a positive and fair manner
to disclose useful information not required by
the rules, in order to help shareholders andinvestors fully understand the Company.
2. Information Disclosure Methods
Information applicable to the Rules on Timely
Disclosure is disclosed on the Timely Disclosure
network (TDnet) provided by Tokyo Stock
Exchange under the rules. Information disclosed on TDnet is posted on the Company’s
website as soon as possible.
In addition, the Company’s website does notinclude all of information disclosed by theCompany; may include different expressions
from those in other sources.

Overview of Stock andShareholders
The total number of shares issued was
699,412,481 and the total number ofshareholders was 48,407 as of the end of
March 2006. Among shareholders, financial institutions, individual and others,
overseas corporations, and other corporations make up 42.57%, 21.99%,
20.56%, and 13.49%, respectively. The
main shareholders are listed below.
Dividend Policy
Toppan’s basic policy on profit distribution is to provide stable dividends toshareholders and to increase dividend
payouts while taking into account thedividend payout ratio and aiming toenhance internal reserves through theestablishment of a stable revenue baseand the strengthening of Toppan’s business structure. To improve its corporate
value, in addition to allotting internal
reserves to capital expenditures and R&D
to support expansion in business areas
deemed to have growth prospects, theCompany also is trying to steadily
improve the use of the reserves aimed atBusiness Activities and Social Responsibility

in English (earlier annual reports were
published in English only).

increasing long-term investment efficiency. Toppan recognizes that conducting profit distribution in this manner willlead to a stronger business structure, willcontribute to increased profits in the
future, and will allow Toppan to return
profits to investors.
Based on growth in consolidated business results, the annual dividends per
share at the end of fiscal 2005 increased
1.0 yen from the previous year to 20.0
yen, with a dividend payout ratio of
61.3%.

*The above-mentioned figures include salaries
and bonus payments for directors also listed as
staff members. Apart from the above-mentioned figures, the company also paid 185 million yen as retirement allowances to three
retiring directors in line with decisions made at
the Meeting of Shareholders.

Stock Ownership Profile
By Type of Shareholder
Securities Companies, etc.
9,734,136
1.39%

Total
699,412,481
sharesFinancial
Institutions
297,640,551
42.57%

By Number of Shares Held
Foreign Companies
143,791,241
20.56%

Less than 1,000 shares
2,872,400
0.41%

Other
Companies
94,381,009
13.49%
Individual
investors and others
153,865,544
21.99%Name
The Master Trust Bank of Japan, Ltd. (Trust Account)
Japan Trustee Service Bank, Ltd. (Trust Account)
Nippon Life Insurance Company
The Dai-ichi Mutual Life Insurance Company
Depositary Nominees Inc.
The Bank of Tokyo-Mitsubishi UFJ
Sumitomo Mitsui Banking Corporation
Employees’ Stock Club
Kodansha Ltd.
The Sumitomo Trust & Banking Co., Ltd. (Trust Account B)

Total
699,412,481
shares1,000,000
shares ormore
492,658,867
70.44%

Number of Shares
Held (1,000 shares)
44,481
36,20329,64824,75016,963
15,62815,62813,247
13,077
12,9831,000 shares or more
70,453,783
10.07%
10,000 sharesor more28,384,511
4.06%
50,000 sharesor more12,111,488
1.73%
100,000 sharesor more
92,931,432
13.29%

Percentage of Total
Number of Share Issued (%)
6.36
5.18
4.24
3.54
2.43
2.23
2.23
1.89
1.87
1.86

TOPPAN CSR REPORT 2006

33

Business Activities and Social Responsibility

Compliance Promotion Activities
For a company to fulfill its social responsibilities, every one of its employees must fully comply with the laws andcorporate ethics in all business areas. Toppan is involved in Group-wide efforts to thoroughly implement its
corporate ethics guidelines, the Conduct Guidelines.

Toppan’s Conduct Guidelines
In TOPPAN VISION 21, a Corporate
Structure for the 21st century, Toppan
has established a set of Conduct Guidelines with a Corporate Philosophy andCorporate Creed. It expresses the behavioral norms on the basis of every
employee’s compliance with laws, regulations, and corporate ethics (➞P.81).
Revision of Conduct Guidelines
Toppan’s Conduct Guidelines have beenannually reviewed according to the viewthat employees’ behavioral norms should
be revised as needed to accommodate
the various changes in the environment
surrounding the Company. The first revision was implemented in July 2003. The
second was implemented in April 2006
to more precisely respond to the various
issues caused by spread and change ofbusiness activities. Briefing sessions havebeen held across the country since thento deepen the understanding of therevised points and the purpose of therevision among the Toppan workforce.

Revision History and Outline ofConduct Guidelines

Dissemination and Full
Execution of Conduct
Guidelines
Conduct Guidelines Promotion
Leaders
To further its efforts to establish a compliance system and corporate ethics
through the full execution of Conduct
Guidelines in daily operations, in October
2004 Toppan created a Conduct Guidelines Promotion Leader system by appointing members of the workforce to lead
the Company’s activities to promote theConduct Guidelines. Under this system,
Conduct Guidelines Promotion Supervisors (the “Supervisors”) and Leaders(the “Leaders”) have been deployed ineach Group company and operationalsite to promote the Conduct Guidelines
in actual working sites. Of some 690
Leaders now operating across Japan, 206
were newly appointed in fiscal 2005.
Dissemination of Conduct Guidelines
The Leaders promoting the Conduct
Guidelines have orchestrated persistentand steady dissemination activities tailored to the actual situations in various

workplaces such as number of employees, and environment/timing to holdmeetings.
In October 2005, one year after establishment of the system, the Supervisors
promoting the Conduct Guidelines convened for a national meeting to shareand discuss the various outstanding activities at the workplaces in and around theoperational sites.
Use of the Casebook
To enhance understanding and further
spread of the Conduct Guidelines,
Toppan published the Conduct Guidelines Casebook, a Q&A style casebook
reporting actual situations that can arisein daily work. The casebook was published in November 2004 and distributed
to all Leaders promoting the Conduct
Guidelines. To provide a clear image ofthe contents of the Conduct Guidelines,
the Leaders read through the cases pertinent to the actual operations at theirworkplaces. A revised casebook withmore cases will be distributed to all
employees in fiscal 2006 to deepen theirunderstanding of the Conduct Guidelines.

Summary of Activities to Promote the Conduct Guidelines
Sustainable Development

June 2000 Established
July 2003 First Revision• New items added to further promote compliance management• Some phrases modified to ensure its consistency with the Corporate Philosophy andCorporate Creed
April 2006 Second Revision• Priority themes reflected in
1) CSR promotion
2) Total quality assurance
3) Personal information protection
4) Response to globalization• Unified modification to more subjective
expressions• Re-announcement of the Toppan Helpline

34

TOPPAN CSR REPORT 2006

Maintaining the Trust of Society
OInstituting measures toprevent a recurrence

ActionPlan

OQuestionnaires
Check
OAwareness surveys

Conduct
Guidelines
Promotion
Leaders(systematic
foundation)Do

OPreparing plans to promote
the Conduct Guidelines(annual plan, medium- andlong-term plans)OCreating education tools
OSpecialist training (leader
training, correspondence
courses)
OCompany-wide training(rank-based, e-learning)

Conduct Guidelines Promotion
Supervisors/Conduct Guidelines
Promotion Leaders

Specialist
training

Employees

Company-widetraining

Compliance Promotion Activities

Since August 2003, Toppan has been
operating Toppan Internal Reporting
Rules and Toppan Helpline, an internalreporting system. This Toppan Helpline
opens for use by temporary staff andpart-time workers as well as directors andemployees.
When a legal violation or injustice isdiscovered, it is to be reported to superiors for deliberation. When an employee’s
superiors fail to settle a problem, they areencouraged to call the Helpline. The
Whistleblower Protection Act effective asof April 2006 guarantees the rights of all
persons who judge it necessary to use theHelpline.
In fiscal 2005, the Helpline was used infour cases regarding personnel administration, sales promotion policy, businesssales, and charges from a partner company. All four cases were strictly investigated and appropriately treated toprevent recurrence.

Compliance Education
Compliance Training
Training to promote the Conduct
Guidelines was held for 578 Leaders in
28 sessions held across Japan from
December 2004 to March 2005. Timewas devoted in the latter half of eachfour- to six-hour session to discuss casemethods among small groups of participants and to share processes for problem
detection and settlement. Following theprevious year, correspondence courses
were held for the Leaders newly
appointed to promote the Conduct
Guidelines. Two-hundred and six Leaders
had attended as of March 2006.
Toppan also organized Company-widetraining to disseminate the Conduct
Guidelines at rank-based training sessions
for new employees, new supervisors, andnew managerial staff in fiscal 2005.
To boost awareness of the Conduct
Guidelines, the Conduct Guidelines
Newsletters has been distributed among
the workforce via the Company intranet
about once a month since April 2005.
The next e-learning session on the
Conduct Guidelines will be conducted in

Toppan Helpline
Communicator
All employees

When a problem
is not settled

Education on Compliance with Laws
and Regulations/Dissemination of
Conduct Guidelines in Overseas Sites
In response to the enforcement of therevised Antitrust Laws in January 2006,
Toppan held 23 training sessions acrossthe country for 3,154 employees in thesales, planning, sales promotion, purchasing, and production management
departments to educate the workforce
on the basics of the Conduct Guidelines,
the meaning of the recent revisions, andthe points revised. Education on the revisions of the law and other important
issues is provided as needed. Toppan is
also pressing ahead with its efforts toboost awareness of fundamental humanrights and to spread the revised Conduct
Guidelines in its overseas sites.

Vol. 1Vol. 2Vol. 3

Superior
Reporting on
progress andresults,
Follow-up
communication

Training for the Conduct Guidelines Promotion
Leaders

ReceiverPresident & CEO or
Senior Corporate
AuditorInstructions

fiscal 2006. The session this year wascancelled due to the recent revision of
the Conduct Guidelines.

Themes of Conduct Guidelines
Newsletter

Reporting andConsultation

Internal communications(emails and sealed
documents sent using
employees’ real names)

Business Activities and Social Responsibility

Operation of Helpline

Billing fraud
Bid rigging
Compliance with the Subcontract
Law
Vol. 4 Information management
Vol. 5 Month for the promotion of
corporate ethics
Vol. 6 Copyrights
Vol. 7 False declaration
Vol. 8 Revised Antitrust Laws
Vol. 9 Conduct Guidelines Promotion
Leaders
Vol. 10 Portable tool for information
management
Vol. 11 Revision of Conduct Guidelines

Reporting

Investigation
Organization andOrganization
under Investigation

Conduct Guidelines Casebook

TOPPAN CSR REPORT 2006

35

Business Activities and Social Responsibility

Information Risk Management
Toppan has established an Information Management Policy and Rules on the Protection of Personal Information.
As important tasks to be performed, the Company ensures that all of its employees manage information properly
and take due measures. The handling of information is carefully treated to avoid accidents in every business
operating process.

Company-wide Acquisition of
the Privacy Mark Certification
The fiscal 2005’s goal was successfully
accomplished: eight divisions and 10
affiliated companies (two operationalsites in one of the companies) haveacquired Privacy Mark certifications
through Company-wide promotion activities. Since the Securities Printing Divisionobtained the first certification in theindustry back in March 2000, Toppan has
established an information management
system in line with the actual situation ateach department. Organizational, personal, physical, and technical safety management have also been promoted inaccordance with guidelines establishedby Ministry of Economy, Trade andIndustry. All of these efforts are reported
to customers in a brochure published fordisclosure purposes.
Lastly, a Company-wide Plan, Do,
Check, Action (PDCA) cycle has been inmotion since April 2006 with the target
of integrating all of the acquired Privacy
Mark certifications into a single certification for the entire Group.

Personal Information
Protection in Production
Processes
Toppan handles a massive amount of
personal information entrusted by customers in various production processes,
especially in direct-mail publishing andcampaign surrogate business.
As an added level of security for personal information management in theseprocesses, the Company establishedthe Personal Information Management
Promotion Committee in the head officein October 2004 to implement audits andrecommend quality-improvement measures for all divisions, including the manufacturing subsidiaries and other partnercompanies.
Information management audits were
implemented in 10 divisions in the Company and 17 partner companies in fiscal
2005 (at most two audits for one division/at longest 12 man-days per audit).
After the audits, the committee checks
whether the recommended measures for
improvement are infallibly implemented.

Divisions Granted the Privacy Mark
Certification
Division

Certification
Number

Securities Printing Division

A190005 (04)Commercial Printing Division

A190018 (03)Nishinihon Division

A190100 (01)Chubu Division

A190171 (01)

Hokkaido Division

A190212 (01)

Information & Publications
Division

A190255 (01)Packaging Division

A190268 (01)Electronics Division

A190281 (01)E-business Division

A190294 (01)

Head office

A190366 (01)Tohoku Division

A190383 (01)Affiliated companies newly granted the Privacy
Mark Certification in fiscal 2005: Tokyo Computer
Type Co., Ltd., Toppan Graphic Communications
Co., Ltd., Toppan Seihon Co., Ltd., Toppan DisplayCo., Ltd., Tosho Printing Co., Ltd., Toppan
Multisoft Ltd., Information Systems Division and
Higashi-Nihon Business Division of Toppan Forms
Co., Ltd., Toppan Forms Nishinihon Co., Ltd.,
Toppan Forms (HOKKAIDO) Co., Ltd., and Toppan
Forms (Sanyo) Co., Ltd.

36

TOPPAN CSR REPORT 2006

Intensive Employee Education
Based on the Rules on the Managementof Personal Information and the related
bylaws, Toppan issued Personal Information Management Guidebooks to
educate employees about personal information protection in October 2005. The
Guidebooks were distributed to all of theemployees, including those in manufacturing subsidiaries, and e-learning programs were conducted during five
periods from December 2005 (after
assembly training). Course certification
has only been granted to trainees who
answer all of the questions correctly inthe exams for each chapter. As of May
2006, 98% of Toppan employees havebeen certified. According to a questionnaire on the value of education programsfor personal information protection, 92%of respondents answered that the programs were useful for daily operations.
In February 2006, special booklets
were distributed to part-time workers toapprise them of the routines for information security management, and booklet
read-through activities were conducted
for information dissemination.

Questionnaire on education of
personal information protection
Not so useful
7.2%

Not useful at all
0.5%
Very useful
21.0%

Process audit in campaign surrogate business

Useful 71.2%

Information Risk Management

Internal audits for information security
management, personal information management, and production processes were
implemented across the board in fiscal
2005.
The Internal Audit Implementation
Manual and Internal Audit Checklist wereboth revised according to a review ofpractices in fiscal 2004, and the schedule
for the Company-wide internal audits
was planned in detail prior to the implementation. Education for internal auditors, feedback of recommendations, andreports of audit results were subsequently conducted in each division.
The annual internal audit program wasreviewed after the Company-wide interim
reports were presented at the Meetingof Information Security Representative
Managers in February 2006.
Moreover, the Company has continuously checked the implementation of corrective measures.

Corrective Measures Suggested by
the Internal Audit•Improvement of operation in information
security management: e.g. confirmation ofregular password alteration, etc.
•Policy dissemination using a guidebook
stipulating preferential measures: e.g., casenot displaying in-house secret-information
demarcations such as “TOP SECRET,” “CONFIDENTIAL,” or “FOR INTERNAL USE ONLY.”•Establishment of a unified system for regular
audits and the site inspections of partnercompanies•Examination of constant supervision of adherence to the related rules in the departments
handling personal information

Integration and Realignment ofInformation Management
Rules and Bylaws
The internal audits revealed the importance of promoting not only personal
information management, but also general information security management. In
March 2006, Toppan responded by incorporating the Rules on the Managementof Personal Information into the Rules
on Information Security Management(established in April 2001 under International Standards, ISO/IEC 17799). The
amendment draft of JIS Q15001, a
Privacy Mark standard, was also referred
to in the sections related to personal
information management.
And since April 2006, the Company
has reorganized 11 bylaws which hadoriginally been sub-classed under therules. This effort has enhanced the effectiveness of Toppan’s comprehensive
information management regime.

Countermeasures against
Winny, etc.

Business Activities and Social Responsibility

Internal Audit and Corrective
Measures

Toppan has taken vigilant preventive
actions against information flow by viralinfected file sharing software such as
Winny.
A system for the rule-based prohibitionof off-the-job software installation is now
introduced, software installation in Company computers is monitored centrally,
software is automatically screened with
anti-virus software, data distribution software is functionally nullified, and connections between the internal network andexternal PCs are constantly monitored.
Toppan also emailed two messages toall employees with the Company: “Re:Complete prohibition of off-the-job software installation” in December 2004 and“Re: Prevention of external data flow byviral PC infections” in March 2005.
Company-wide information dissemination of these messages was confirmed in
April 2005.

Rules on Internal Information Management
Information
Management Policy

Rules on Information
Security Management

Rules on theProtection of Personal
Information

Rules on Personal
Information
Management

Information handling bylaws
Bylaws on the use of e-mailBylaws on internet usage
Bylaws on the security of information
regarding hiring and resignations
Other 8 bylaws
Operating bylaws concerning
individual services
Operating bylaws concerning themanagement of personal information
on employees
Bylaws concerning information
entrusted by customers
Bylaws concerning the handling of
personal information in the Web business

Rules to Prevent
Insider Trading

Compliance programs in each division

TOPPAN CSR REPORT 2006

37

Business Activities and Social Responsibility

Strengthening Supply Chain Management
Committing to appropriate and fair trading with suppliers, our important partners, Toppan takes thoroughmeasures to ensure that CSR applies throughout the entire supply chain through cooperation with suppliers.
The Company is also fully promoting green procurement and green purchasing.

Fair and Equitable Dealings
Toppan prescribes its social responsibility
in the procurement of equipment/raw
materials and outsourcing of manufacturing/processing in the Conduct Guidelines, Procurement Guidelines, Purchasing
Rules, and Subcontract Law Compliance
Manual. The Company also carries out
extensive educational and training programs for all employees dealing with suppliers to ensure the discharge of theirsocial responsibilities.
Toppan regards suppliers as importantbusiness partners. It makes every effort todeal with suppliers fairly and transparently, and all suppliers who meet therequired standards are given a fair andequitable opportunity to do business with
the Company. With the understanding
and cooperation of suppliers, Toppan
approaches CSR activities throughout theentire supply chain in order to improve its
reliability.

Purchasing Rules
In order to ensure reasonable andsmooth operation of purchasing, thePurchasing Rules were established in1985 as a regulation to be observed by
all employees engaged in purchase andprocurement. The Purchasing Rules havebeen revised several times in response
to external environmental changes asneeded.
The latest revision in March 2006
strengthens the internal control systemby improving transparency and archivingof procurement transactions and placing
a new emphasis on compliance withlaws/regulations and corporate ethics inbusiness with suppliers. Those revision
points have been brought home toemployees in purchasing departments
through training sessions.
The Purchasing Division of the head
office regularly audits the operations of
the purchasing departments of each operational site to verify whether or not theinternal/external procedures and operations are fairly carried out under the
Conduct Guidelines and Purchasing Rules.

Reinforcing Confidential
Relationships with Suppliers
Toppan has started regularly monitoring
suppliers to investigate their satisfaction
with Toppan’s procurement operations
and the Company as a whole. Based on
their comments, Toppan evaluates thenegotiations and practices of its purchasing departments and makes modifications if required. A service counter has
been created in the Purchasing Divisionof the head office to receive the views ofsuppliers, including complaints and accusations if need be. This has improved
Toppan’s partnerships with suppliers.
The following provision was newly
added to the revised Purchasing Rules inorder to strengthen Toppan’s confidential
relationships of trust with suppliers
through close communication under fairand equitable principles.

Clause 17 of Purchasing Rules
The Purchasing Management Department
should monitor suppliers through satisfaction
surveys every two years. The department
should also accept complaints and accusations by suppliers via telephone, email, etc.

Procurement Guidelines
Basic Procurement Policy
OToppan will provide procurement opportunities in a fair manner to suppliers that meet its Supplier Selection
Standards.
OToppan will conduct its procurement activities fairly in keeping with the principles of fair trade and in fullcompliance with both domestic and international laws.
OToppan will strictly manage information acquired in the course of procurement and make every reasonable
effort to maintain confidentiality.
OToppan will make every effort, in conducting its procurement activities, to protect and preserve resources
and the environment.

Basic Procurement Policy on the Toppan website
http://www.toppan.co.jp/english/csr/policy.html

38

TOPPAN CSR REPORT 2006

Supplier Selection Standards
Toppan provides fair and equal business opportunities to suppliers that meet the following standards. Once
suppliers are selected, Toppan continually assesses their performance based on its original selection standards
in a cooperative effort to realize an even better trading relationship.
Legal ComplianceFulfills social responsibilities and complies with both domestic and internationallaw
Quality
Meets Toppan’s standards and provides stable quality
Price
Offers products at prices equal to or lower than those of competitors
SupplyMeets Toppan’s delivery requests and provides a stable supply of products
Toppan reviews the performance and management stance of its suppliers by evaluating the following items:
Management Foundation Maintains a sound corporate financial baseTechnical Ability
Actively improves conventional technologies and develops new products andtechnology
Information Supply Ability Provides necessary and effective information in a timely and appropriate manner
Confidentiality
Strictly manages information acquired through trade and maintains
confidentiality
Concern for Environment Conducts business with sufficient concern for resource protection andenvironmental preservation
CSR Measures
Takes CSR measures and discloses them

Strengthening Supply Chain Management

Improvements in Accordance with
the Subcontract Law
In the CSR Report 2005, Toppan reported
that though several points were identified to be in need of improvement in theoperational site inspections by the Smalland Medium Enterprise Agency in May
2004, no violations had been observed in
the purchasing departments or production management departments from
August 2004 onwards. The report credited this achievement to the Companywide dissemination of content on the
points in need of improvement.
In fiscal 2005, Toppan constantly
strove to maintain its operational record
free of violations. It did so by regularly
auditing compliance with the Subcontract Law and holding training sessions
to promote awareness by introducing
actually recommended cases under the
Subcontract Law.

Overview of Supply Chain Management Based on CSR
CSR

CSR

Survey,RequestSupplier
checkup,Subcontract Law
compliance,
Training of partnercompanies,
RequestManagement,
Request

Order

Order

Supplyingproducts and services

One important factor in building a recycling-oriented society is to select environmentally-friendly products preferentially.
In April 2002, Toppan introduced a Green
Procurement system that conforms to theGreen Standards for Offset Printing
Services established by the Japan Federation of Printing Industries. Toppan’sachievement ratios under these standards
were 21.3%* for paper and 97.3% for
ink in fiscal 2005. After the revision of
the Green Standards by the Japan
Federation of Printing Industries in March
2006, Toppan’s Green Procurement
Standards were also revised and will beapplied sequentially in fiscal 2006.
Toppan adopted a Basic Policy ofGreen Purchasing for its operations inJanuary 1999 and launched a Companywide green purchasing initiative. The
Company selects products that meet inhouse green standards and purchases
them on a continuing basis.

Green Purchasing Network (GPN)

CSR

CustomerGreen Procurement and Green
Purchasing

Business Activities and Social Responsibility

Supplier Checkup
Supplier checkups for the main suppliers
have been implemented under eachplant’s guidelines established in accordance with ISO standards. So far, however, a unified set of standards is still
being prepared for basic evaluation points
and methods on a Company-wide basis.
The following provisions will be added
to the existing Procurement Guidelines toprepare the comprehensive Basic Policyof CSR Procurement: 1) a social provision
regarding basic human rights to prohibit
child labor, forced labor, invidious discrimination, etc. and; 2) a provision
regarding the elimination of specified
chemicals under the RoHS directive, etc.
The Supplier Selection Standards, thestandards for supplier checkups, have also
been reviewed for Company-wide integration, including the Company’s operation rules, its actual checkup procedures,and methods for feedback to suppliers.
Toppan aims to fulfill its social responsibility and to improve corporate values
mutually through communications with
suppliers.

A nationwide network founded in 1996 to promote Green Purchasing. As of May 18, 2006, thenetwork comprised 2,819 organizations (2,245
companies, 296 government institutions, and 278
private organizations). The network announced
its Order Guidelines for Offset Printing Services(GPN-GL14) in December 2001.

Order
First-tiersupplier

Supplyingproducts and services

Second-tiersupplier

Supplyingproducts and services*According to the Report on the Activities of theUsed Paper Recycling Committee issued by theJapan Federation of Printing Industries in March
2004, the actual rate of used paper reutilization
was 21%, while the target rate was 42%.

TOPPAN CSR REPORT 2006

39

Business Activities and Social Responsibility

CSR Review Meeting with Stakeholders
As part of stakeholder communication, Toppan invites an external stakeholder to review the Company’s CSR
activities throughout the year and discuss the future direction of CSR activities.

CSR Review Meeting
The CSR promotion members held the
CSR Review Meeting on March 27, 2006
with the same meeting facilitator fromthe July 2005 meeting, Mr. Hideto
Kawakita. Mr. Kawakita is an expert on
CSR communication and CEO of IIHOE,
the International Institution for Human,
Organization and the Earth.
The participants began the meeting byreviewing the contents of the CSR activities in fiscal 2005 to assess their progressagainst the 2005 activity targets formulated based on the six priority themes.
The points progressing well and thepoints requiring more focused efforts
were identified for each action plan.
Next, the directions for the targets for fiscal 2006 were determined based on
those points.
The points identified to have progressed most swiftly were the receiptof the Privacy Mark throughout theCompany, reinforced quality control, andenhancements in environment-related
businesses. Remaining challenges for the

future included the further promotion of
personnel diversity for leveraging humanresources, the identification of methods
for using the ISO certification at workplaces once it is received, and the further
diffusion of universal design.
Mr. Kawakita stressed the importanceof CSR awareness for the success of
future CSR activities. He urged that theCompany instill CSR awareness not onlyin the top echelons of company management and persons in charge of the activities, but in the Toppan workforce atevery level.
Summaries of the achievements infiscal 2005 and targets for fiscal 2006
confirmed at the meeting are listed in
the section entitled “Review of CSR
Activities and New Initiatives” (➞P.28).

Participants:
Facilitator: Mr. Hideto Kawakita (IIHOE)
CSR promotion members: Legal Affairs Division,
Ecology Center, Corporate Planning Division,
Personnel & Labor Relations Division, Corporate
Manufacturing, Technology & Research Division,
Purchasing Division
Hideto Kawakita
CEO of IIHOE (International Institution for
Human, Organizationand the Earth): After
working as a public
relations and international recruiting specialist at Recruit Co.,
Ltd., Mr. Kawakita served as a secretary in chargeof policy for a member of the Japanese Diet andas the Japanese representative for NGOs involved
in international youth exchanges. He established
IIHOE in 1994 as an organization to provide management support to NPOs and corporations.
http://www.iihoe.com

Mr. Kawakita has been involved in Toppan’s main
CSR communications activities since Toppan
launched its Environmental Communication Exhibition in 2000. He continues to advise Toppan basedon his understanding of the development ofToppan’s CSR activities.

40

TOPPAN CSR REPORT 2006

Social Report

Improving Customer Satisfaction
Strengthening Product Quality Assurance

42

Technological Development Aimedat Value Creation/Products andServices Developed with Society in Mind

44

Respecting and Leveraging Human Assets
Merit-based Personnel Policies

46

Foster, Develop, and Utilize Human Assets

48

Leveraging Human Assets

49

Realize a Safe and Secure Working
Environment

50

Activities for Society and Culture
Contributing to the Traditions andDevelopment of Culture andSharing Impressions

52

Activities for Contributing to Local
Communities

54

Improving Customer Satisfaction

Strengthening Product Quality Assurance
Toppan promotes quality assurance activities based on Total Quality Assurance not only in its departments directly
engaged in manufacturing and quality control, but also for all processes throughout the whole Company. Toppan
strives to create “dedicated products” through collective efforts with top priority on quality assurance.

Toppan’s Total Quality
Assurance
The manufacturing and quality control
departments are by no means the only
sections of Toppan involved in quality
assurance. Toppan’s Total Quality
Assurance means quality assurance in allprocesses, including marketing, R&D,
planning, designing, sales, and delivery.
The goal is to provide products of uniform quality with guaranteed safety andfunctions at reasonable costs within
the prescribed lead time. Total Quality
Assurance is Toppan’s top-priority task.
Multi-faceted activities, including inspection by top management, are in place toenhance quality. A Company-wide campaign to promote “No exceptions in Total
Quality Assurance” (campaign slogan)has been underway since early 2005. In
2006 under the same banner, Toppan
has been striving to create “dedicatedproducts” through a collective focus on
quality improvement via process control
methods using IC tags, quality audits
under ISO, and the Company’s original
Total Productive Maintenance (TPM)
activities.

Activities in the Sales and Planning
Departments
In carrying out their daily business activities, the sales and planning departments
seek to continuously increase customer
satisfaction by taking part in the wholeprocess of proposal-making as effectively
as possible with close consideration tocustomer needs, manufacture, delivery,
and payment.
The Company works diligently to satisfy customers by assisting them with its
marketing abilities in product development and proposing various solutions
based on its advanced technologies.
Moreover, the sales departments, thefront lines of communication with customers, are expected to immediately
report customer complaints to the relevant departments and respond to themin good faith.

TPM Promotion
In Toppan’s production departments,
TPM activities, the entire activities aiming
at zero production loss through modifications of equipment and employees’
awareness, have been developed in allplants to strengthen its competitivenessin light of quality, cost, and the lead time.
In fiscal 2005, Toppan began promoting more thorough TPM activities (including those mentioned above), improved
Industrial Engineering (IE) activities, andmaintenance and management activities
under ISO 9001 to entrench them in all
departments throughout the Company.
A quality guidance system run by experienced in-house consultants familiar with
Toppan’s proprietary technology has
been established since fiscal 2004. The
quality improvement education and guidance was implemented by three in-house
consultants in 11 plants in fiscal 2005.

Total Quality Assurance in Toppan’s Business Activities
IDo we have a proper
grasp of thecustomer’s demands?
IHave we uncoveredneeds the customer
was unaware of?
IDo we have thetechnical development
capabilities to create
new production
methods?

IHave we accurately
calculated costs?

IHave we issued
production instructions
that are proper in lightof quality, cost, anddelivery requirements?

IHave we delivered
the quality thecustomer demands?

IHave we properly
inspected the
product?

Shipment

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

Production
Production
Instructions

TPM

Estimate
Receipt ofOrder

Stable facility
maintenance andmanagement

Planning
ISO 9000
series42

TOPPAN CSR REPORT 2006

Development of personnel
with a keen sense forfacilities and quality
Toppan’s Own TPM
High-quality products built
by people and facilities
Safe, clean working
environment

IE

Strengthening Product Quality Assurance

Promotion of ISO 9001
Certification Acquirement

Basic Stance on Product Safety
Management
Toppan prevents product-related accidents andprotects the health and safety of the users of
its products through the following steps:•Recognize the importance of product safety.
•Promote measures to improve Toppan’s product safety management.
•Contribute to society through Toppan’s product safety management.
Established March 1999

Research Groups and Improvement
Points of IE Activities
Toppan addresses the following improvement
points and issues targeted by its arrangement
research groups throughout the Company.
•Precise printing press registration in the firstattempt•Reduction of waste paper at the start of the
web offset press•Arrangement research group on zeroing
unevenness of paper containers•Arrangement research group on loss reduction at the start of package forming machines

The IE activities mean the technology todesign an effective production systemand enhance its productivity throughimprovement of overburden, waste,
and unevenness in human and otherresources, materials, equipment, andinformation. Toppan exploits the quickacting effects of these IE activities as it
works to enroot them in sites as a part ofits overall TPM effort.
The improvement activities by the IE
method are based on scientific foundations of five principles: sites, actual
things, facts, principles, and generalrules. Through these improvement activities, Toppan has established standard
procedures at each operational site andconducted regular follow-ups.
The arrangement research groups andprocesses organized throughout theCompany in fiscal 2005 emphasized how
Toppan can make good use of standard
arrangement technique and one-by-one
production concepts.

Quality Assurance in the FoodContainer and Filling/
Packing Business
Toppan develops materials for food product containers and packages, prints andprocesses the packages, and fills them forfood manufacturers. Toppan attaches
great importance to quality assurance forfood safety and sanitation, especially inthe food container manufacture andfood filling processes. Strict quality standards are enforced to achieve this assurance. As in the previous year, audits werecarried out in all operational sites
engaged in the food business to maintaintheir quality standards in fiscal 2005.
In addition to the existing audits,
improvement guidance on the recommended points was also implemented infiscal 2005. As a result, the number ofquality troubles at manufacturing partnercompanies decreased from several casesa year to zero in fiscal 2005.
Based on the Basic Stance on Product
Safety Management, the audits for the
food container and filling/packing business will be carried out continuously tomaintain and improve quality.

Improving Customer Satisfaction

Four operational sites were newly registered in fiscal 2005 as part of the Company-wide effort to have all operationalsites certified. The operational sites thathave already acquired the certification are
to be routinely screened once a year andscreened more thoroughly for renewal
every three years.
To confirm whether ISO 9001 is appropriately and effectively put into practicein each operational site, the head officecarried out operational site audits in 25
sites in addition to the internal audits inall operational sites. Internal auditor training sessions were held 21 times in fiscal
2005 to improve the quality of internal
audits in each operational site.
Through these activities, Toppan’squality control system has been spiraling
upwards continuously.

Promotion of IE Activities

Audits on Food Container and Filling/Packing Business
Audit Team
Analyst of Technical Research InstituteQuality control manager of the head office
Quality manager of Packaging Division
Quality manager of Hokkaido Division
Quality manager of Tohoku Division
Quality manager of Nishinihon Division
Quality manager of Toppan Packaging
Service Co., Ltd.
Target Operational Site
9 in-house plants
10 subsidiaries
Other manufacturing partner companies

Audit Points
Agreement with customers
Quality assurance system
Management of equipment and inspection
devicesManagement of safety and sanitation
Interfusion prevention of different sorts ofproducts
Interfusion prevention of foreign substances
Outflow prevention of defectives
Contamination prevention
Traceability
Security
Education and training
Maintenance of systems and frameworks

TOPPAN CSR REPORT 200643

Improving Customer Satisfaction

Technological Development Aimed at Value Creation/
Products and Services Developed with Society in Mind
Toppan has created various products, systems, and services with high added value facing up to future needs
using its advanced technologies and innovative ideas acquired through the printing business. Its efforts in
Universal Design are fully utilized in the products of customer companies.

Technological Development
Aimed at Value Creation
The Technical Research Institute plays acentral role in exploring untapped areasof science by thinking freely and pushing
forward with R&D projects on new products designed to respond to the anticipated needs of the future market. The
Company has successfully developed
numerous products with enhanced environmental benefits and high-value added
by offering technical advantages and systemized techniques. Development efforts
are guided by surveys on the latest trends
in the market and customers in close
cooperation with sales and promotion
departments.
In the area of production technology,
on the other hand, Toppan endeavors to
improve quality, shorten lead times, andreduce costs by automating productionlines, saving labor and energy, and modifying processes in close collaboration
with manufacturing departments.
Next-generation Products Developed
by Technology Evolved from Printing
Advances in technology acquired by printing, surface processing, and the applicationof prepress technology to microfabrication
led to the development of next-generation products such as color filters for large
liquid crystal displays (LCDs), full-colororganic Electro Luminescent (EL) displays,
and medical chips for examination.
Industry-Government-Academia
Alliance
Toppan’s cooperative structures withinternal R&D departments and various
external research institutes have beenstrengthened to promote technology
development activities. In addition to
engaging in national collaborative projects (including contract research sponsored by the New Energy and Industrial
Technology Development Organization,
an independent administrative agency),
Toppan researchers collaborate withmany universities in Japan and overseas(including the University of Tokyo, theTokyo Institute of Technology, Tohoku
University, Yamagata University, Massachusetts Institute of Technology, andOxford University). Toppan has also been
active in technical cooperation withdomestic and overseas companies to provide products, systems, and services withhigh added value in a wide range of fields.

Efforts in Universal Design
Toppan quickly launched a Universal
Design (UD) business and sponsored the
Universal Design Philosophy exhibition in
2001.
Toppan has defined UD as “a set of
activities to realize products, spaces, environments, services, and communication
methods which are accessible and useful
to as many people as possible.” Toppan
has established its Toppan’s Six Principles
on Universal Design based on this concept and created a number of products
and services in accordance with the six
principles.
Efforts in Packaging Departments
In Packaging, Toppan has developed the
Universal Design Diagnostic System for
Packaging, a guideline conceived fromthe viewpoint of the product life cycle,
for use as a tool to evaluate customer
packages and propose recommendations
for improvements. Toppan proposesvarious package designs which are easyto-use from both “soft” and “hard” perspectives, based on considerations of theconsumer’s preferences and needs.
Toppan has also contributed to society

Toppan’s Map of Next-generation Product Technologies
Printing Technology

Formation(injection, mold,etc.) andCutting
Technology

SNP Chips
45nm
Photomasks
Full-color Organic
EL Displays

Ball SAW Sensors

25GB Paper Discs

IC Cards/Tags

44

TOPPAN CSR REPORT 2006

Thin-film
Formation andCoating
Technology

Microfabrication
Technology

Semiconductor
Design andAssembly

Optical Design
Technology

Data Processing
SystemTechnology

Technological Development Aimed at Value Creation/Products and Services Developed with Society in Mind

through its cooperative efforts to develop
JIS standards using the expertise andtechnologies it has acquired throughthose businesses.

When Toppan established a set ofresearch themes in 1999, it made its first
forays into several branches of the life sciences anticipated to rapidly develop. The
Company now works with Shimadzu
Corporation and RIKEN, an independentadministrative institution, for the development of medical chips, SNP chips.
Toward Tailored Medical Care
SNP chips are used for bio-molecularanalyses as part of a service called tailored medical care. The chip designs
incorporate the printing, microfabrication, and coating technologies developedby Toppan through its operations.
These unique chips are capable ofidentifying differences in individual
genes. With this information, a doctor
can more accurately assess whether adrug will have a favorable or adverse
effect on a given patient. This allows doctors to plan out treatment strategies tailored to their patients.
If adopted on a widespread basis, tailored medical care with SNP chips will
reduce adverse drug effects and excessive

dosing. This, in turn, will help to limit theever rising expenses for medical care.
A pilot examination device and a pilot
SNP chip were completed in fiscal 2005.
In fiscal 2006, function tests will be conducted during clinical tests at medical
institutions. The Company plans to workon the development of a commercial
examination device that can be used for
actual treatments in medical facilities.
Toppan will explore further applications for SNP chips as it works to establish tailored medical care in Japan.
Improving Customer Satisfaction

Research & Development from a
UD Perspective
Toppan is now researching color, an
important element in UD in today’s aging
society. Research has confirmed thatthe perception of color actually changes
with age. Through experiments to simulate how elderly people see, Toppan
researchers are developing signs, displays,
and designs that everyone can easily
understand. In Information & Networks,
meanwhile, the Company is researching
methods to effectively convey image
effects tailored to different audiences andenvironments. Ultimately these methods
will be applied for the production ofvideo content.

Development of SNP Chips for
Medical Facilities

Toppan’s Six Principles on Universal Design
1. Design products and services that are more responsive to people with different physical abilities
and perceptions.
2. Facilitate communication using multiple channels for communication, including visual, aural, andtactile channels.
3. Make products easier to use by making them easier to understand.
4. Make products that are easier to move, easier to approach, and require less strength (remove thephysical burdens).
5. Design products that are safe to use procedurally, functionally, structurally, materially, and environmentally.
6. Provide products at a reasonable price and in the amounts required by society.

The SNP chip loaded with a reagent in advance tocheck reaction with blood

TOPPAN CSR REPORT 2006

45

Respecting and Leveraging Human Assets

Merit-based Personnel Policies
Toppan values its employees as important assets (“human assets”) for the Company. In line with the personnel
policies set to achieve TOPPAN VISION 21, the Company extends full support to its personnel to encourage theirhighly motivated, vigorous, and earnest efforts.

Basic Concept of Human Assets
Toppan values its employees as precious
company assets and lives by a philosophy
that recognizes how much it depends on
its people. From this perspective, Toppan
supports the motivated, vigorous, andearnest work of the Toppan workforce.
Toppan keenly understands the importance of a motivation to take on new
challenges, a spirit to work vigorouslywith a healthy body and mind, and an
earnest commitment to follow throughon tasks to completion. Toppan believes
that its people must work in this spirit ifthey are to show their true abilities.
Toppan strives to enhance the powerof its human assets through hiring,
appointment, training, promotion, andtreatment while drawing out their own
organizational powers. To do so, theCompany places importance on communication between superiors and subordinates under mutual trust. The Company
pursues its goals with well-defined
visions, formulates systems to strictly andappropriately enforce rewards and penalties, and works to establish an open andfair environment.

Number of Employees

Fiscal 2003
Fiscal 2004
Fiscal 2005

Male

Toppan offers employment opportunities
through regular hiring in spring (every
April) and autumn for new graduates andmid-carrier recruiting year around forexperienced personnel, and so forth.
In fiscal 2005, the Company tested out
a few new ideas in the recruitment
process. It conducted interviews in casual
wear, for example, and adopted hiring
standards based on behavioral characteristics in order to draw out the innate merits of every candidate. Recruitment
screenings are conducted in seven venues
in Japan to provide a more open environment for hiring. Internship programs areheld continuously.

As of March 31 in each fiscal year; the number of temporary employees isthe average number from January to March (recorded since fiscal 2004).

Number of Management
Executives
Class
30
1,890

Female

1

Male

30

Female

1

Male

30

Female1Supervisor
2,334

Total Numberof Employees
10,601

41
1,844

2,166
2,106

Average Age
38.1

9.7

31.1

9,679

16.3

38.7

869

10.0

31.7

9,693

16.0

39.1

889

9.5

31.6

46
1,889

AverageTenure
16.1

911

67

Recruits

Sum Total of
Employees

Part-time
Employees

Temporary
Employees

11,512849—

10,548893

915

10,582

1,103

1,142

Reasons for Leaving

Regular hiring,
new graduates,
including postgraduate students

Sales,
Maleadministration,
Femaleetc.
Male
Technical
FemaleTotal (female ratio)

Mid-career
recruits

46

Open Recruitment

Basic Thinking on Personnel Systems
Toppan recognizes that it can build thetrust of the community, customers, andother stakeholders when each employee
consistently practices conduct of highvalue to realize TOPPAN VISION 21. In
keeping with this conviction, the Company’s personnel policies for hiring,
appointment, training, promotion, andtreatment are all based on conduct ofhigh value as well as abilities and skills.
The term “conduct of high value”
embodies the concrete activities that realize the Corporate Philosophy and Corporate Creed. The “abilities and skills,” on
the other hand, are indispensable tothe practice of valuable conduct. Job-specific assessment items are set for sales,planning, manufacturing, technology,
research, and business administration
within the framework of abilities andskills. Business administration is further
divided into finance, legal affairs, purchasing, personnel, and labor.

TOPPAN CSR REPORT 2006

Fiscal 2004

Fiscal 2005

Fiscal 2006

Fiscal 2003

Fiscal 2004

Fiscal 2005

76

88

142

Personal reasons

292

284

284

29

32

43

Retirement

144

109

56

102

117

166

Request of the company

0

0

0

18

33

34

Accession of director

8

8

5

444

401

345

3.6%

3.5%

3.1%

225 (20.9%) 270 (24.1%) 385 (20.0%)
75

135

150

Total
Turnover rate

Merit-based Personnel Policies

Personnel Treatment System

Goal Setting and Transparency in
Evaluation
Toppan applies the management by
objectives (MBO) system for managerial
staff. Goals are set, midterm goals are
modified, and results are evaluated basedon conduct of high value according tothree criteria of operating performance:
achievement, behavior, and competence/skill. Toppan emphasizes sufficient
communication with superiors during theprocess as needed for goal sharing, transparency in evaluation, and enhanced satisfaction.
In working with general staff, Toppan
feeds back evaluation results to each
employee and has established a framework to share common recognition onachievements, unachieved tasks, andfuture goals.

Toppan has formulated a personnel treatment system based on the competence
and achievement of each employee. The
system is designed to encourage employees to fully exert their diverse skills andabilities.

Assignment and Appointment
New employees, mainly those hired
through regular recruiting, are given atleast three chances for interviews before
a formal appointment. This gives them
opportunities to discuss the best andmost coveted sites for assignment when
they are newly hired, when they undergo
training programs for new employees,
and when they move to their assigned
divisions.
A follow-up interview is held a year
after the new recruit begins his or her
first assignment to assess whether the
workplace is suited to the new employee.
The formal appointment is then issued.

Restructuring of Retirement
Allowance
The retirement allowance system wasrevised in fiscal 2005. Under the previous
system, the retirement allowance greatly
depended upon an employee’s tenure.
Under the new system, contribution to
the Company during service is reflected inallowances more precisely with a yearly

Respecting and Leveraging Human Assets

Functional Classification
Toppan has operated a multi-track job
function system for employees since fiscal 2004. Employees in the sales, planning, technology, research, and businessadministration departments are evaluatedunder a five-grade scheme. Employees in
the manufacturing departments, meanwhile, are working under an eight-grade
scheme. As a step forward, these frameworks have also been introduced in awage revision system tailored to each
grade scheme since fiscal 2005. Differences between actual task performanceand the appearance of achievement inthese two job categories are reflected in
the determinations of wages and otherallowances.

point score on rating grades, qualification, and post. The salary-to-pension
ratio, meanwhile, has increased from
30% to 50%. This considerably improves
the stability of life after retirement.

Fixation Ratio of Recruits
Male

FemaleHired on April 1, 2003

175

50

Remaining as of April 1, 2006

161

39

Fixation ratio

92%

78%

TOPPAN VISION 21 and the Human Assets Education Cycle
Accomplishments

Goals

Management
policies

Business
policies

Mediumterm
plan

Term plan

Department
plan

TOPPANVISION 21
Corporate
Philosophy
Corporate
Creed

ActionConduct of High Value

Abilities and Skills

Performance
improvement

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

IKnowledge and information skills
ITechniques and know-how
ICommunication and training
skillsIAbility to identify and formulatetasks
IAbility to accomplish tasks
IBasic skills

Conduct
Guidelines
Business
FieldsStrengthofindividual
Realizing a positive
cycle between
individual andorganization
Strengthoforganization

Maintaining thework environment

TOPPAN CSR REPORT 2006

47

Respecting and Leveraging Human Assets

Foster, Develop, and Utilize Human Assets
Human assets are developed and fostered at Toppan based on conduct of high value and skills and abilities todevelop individuals and the Company as a whole.

Concept of Human Asset
Development and Fosterage
Toppan has implemented rank-based
training. This is aimed to help employees
learn and understand the roles, responsibilities, and obligations of each rank, aswell as to appreciate and practice conduct of high value. The Company alsooffers a variety of training programs systematically to encourage employees toacquire the abilities and skills required byeach division, department, and workplace. During rank-based and departmental training sessions, employees act
as trainers to train others in a style moreclosely attuned to actual business situations. The intention is to create individuals and an organization that reflects theunique characteristics of Toppan. Some
3,000 employees participated in rankbased and optional training programs
sponsored by the head office in fiscal
2005, and a cumulative total of some
19,000 took part in various training programs including those held by divisions.
Toppan uses e-learning to develop theabilities and skills required by all employees: e.g., basic and introductory courses

on the environment, information security,and personal information management.
Toppan also offers a Desktop Publishing(DTP) Expert Certification Course andother programs to enhance the capabilities of individual employees. The course
is primarily designed for the staff of thesales departments.
Toppan Business School offers a curriculum of over 1,000 courses to every
employee of the Company. Optional
training, correspondence education, anda video library are all available and customizable to an employee’s career design.
Coordination between
Development and Fosterage
In fiscal 2005, Toppan rotated employees
within and between divisions. The objects
were to foster human assets capableof dealing with all of Toppan’s products
and fulfilling the Company-wide priority
theme of the year: integrated strength
enhancement and Total Quality Assurance. Toppan also implemented a horizontal rotation among different lines ofwork to cultivate multi skills. Some newly
hired employees were rotated between
divisions in Tokyo and local cities to bal-ance their knowledge and expand thescope of their skills.
Rank-based training was conducted
for new employees, mid-level staff, anddepartment/assistant managers in thesales, technology, and research departments to strengthen the unity of departments and synergy among divisions.
Toppan also strives to enhance its integrated strength through its commendation system, a system to recognize
employee proposals and performancebased on the Company’s integrated
strength.
In the future, Toppan will monitor anddiscuss the development of human assets
at each department through the Human
Resources Development Leader Meetings(held since fiscal 2004) while strengthening the pivotal functions of human asset
development. While the effects of rotation are verified and follow-up measures
are taken for the participants, the synergy
of Company-wide training and divisional/
departmental training will be reinforced
in order to develop human assets more
effectively. The Company will also offer
job opportunities more finely fitted to thecareer visions of individual employees.

Toppan’s Human Asset Development Program

Conduct of High Value
IEarning the trust of customers
IStrengthening businessfoundations
IFulfilling corporate responsibility
IStrengthening organization
IImproving corporate value

Rank-based Training
INew department manager training
Selective department/
INew manager training
assistant manager training
INew supervisor training
IOJT brother/sister training
INew employee training
Executive business school
IRecruit training
Understanding, learning, and acquiring the requisite skills and abilities foreach rank (including roles, responsibilities, and obligations)
Department-based Training

Abilities and Skills
IKnowledge and information
skillsITechniques and know-how
ICommunication and training
skillsIAbility to identify and formulatetasks
IAbility to accomplish tasks
IBasic skills
Toppan defines people who are constantly aware of goals andissues and able to act proactively as “human assets.” These
people are the most precious assets of the Toppan organization.

48

TOPPAN CSR REPORT 2006

IAssistant manager training in eachdepartment
IMid-level staff training in eachdepartment
INew employee training in eachdepartment

Special Needs Training
IOverseas study
Individual Training
ITraining in each division and ateach workplace

Training for all Employees
Toppan Business School
IEnvironment, information security
ILearning programs for different
skills and abilities
ITraining for technology, research,and manufacturing departments
ITraining for sales departments
Acquiring the skills and abilities required at each division, department, andworkplaceLeveraging Human Assets
Competitiveness of the company results from full exertion of each strength of diverse human assets. Toppan has
various measures to leverage diverse human assets from the viewpoint of diversity.

Leveraging Diverse Human
AssetsSystems for Self-determination on
the Career Path and the Sounding ofOpinions
Toppan offers various opportunities to allof its employees on a yearly basis toencourage them to take on new challenges through the Challenging Job
System, in-house staff recruitment system, and overseas study support system.
The Company has established an ideal
environment for employees eager to create their own careers.
The Challenging Job System offers
employees opportunities to mutually
exchange opinions not only on career
creation, but also convey their opinions
to the Company and make requests.

preneurial spirit and to create next-generation businesses. Forty-nine projects
have been applied under the system sofar. This has led to the founding of one
company (Toppan Character Production
Co., Ltd.) and the initiation of two businesses, one of which has been integrated
into an in-house project.

Internal Venture System
The Internal Venture System establishedin January 2001 has a mechanism to discover human assets abounding in entre-

Continuing the Employment of
Persons with Physical Disabilities
In 1993, Toppan founded Tokyo Metropolitan Prepress Toppan Co., Ltd., a special
subsidiary to employ persons with physical disabilities. Since then, Toppan has
continued to promote the hiring of persons with physical disabilities mainly via
this company. As of June 1, 2006, persons with physical disabilities accounted
for 1.81% of the total workforce in the
Company.
Toppan was conferred an award by
the Health, Labour and Welfare Minister
as a Company with a Distinguished
Record in the Employment of the Disabledin September 2005 in recognition of
Toppan’s continuous achievement inattaining the statutory employment rateof persons with physical disabilities.

Results in Human Asset Development

Employees with Physical Disabilities

Workplace Safety and HealthFunds Spent on Usage Rate ofTraining per Toppan Training
Center*2
Employee*1

Employees

Percentage
of Total
Workforce*

Support for Second Careers
To positively support second careers incompany life, Toppan will provide a
broad range of options by developing
suitable works and job-ranks. The Company is building up a structure to utilize
the knowledge, experience, techniques,

DeathsFrequencyfrom Work
Rate*1
Accidents

Severity
Rate*2

Fiscal 2004

45,800 yen

56.9%

Fiscal 2003

139

1.97%

Fiscal 2003

0

0.30

0.01

Fiscal 2005

36,600 yen

51.8%

Fiscal 2004

134

1.83%

Fiscal 2004

0

0.41

0.01

Fiscal 2005

138

1.81%

Fiscal 2005

0

0.24

0.01

*1 Total cost was reduced in fiscal 2005 due tointernally-prepared training programs thatreflect actual situations in the Company.
*2 Toppan Training Center was newly establishedin July 2004. The usage rate in fiscal 2004 wascalculated by dividing the number of days thefacility was available by the number of days it
was actually used during the period from July
2004 to March 2005 (including use by subsidiaries and affiliated companies).

*The rate is calculated based on the total numberof employees (as of June 1, 2006) as a denominator. The total number was presented in the
Disabled Persons Employment Report in accordance with Article 8 of the Law for Employment
Promotion, etc. of Disabled Persons.

6,530,862 yen

Fiscal 2004

6,890,638 yen

Fiscal 2005

6,957,713 yen*Including annual bonus and nonstandard wages*1 Number of employees injured and dead inlabor accidents per million working hours(reflects the frequency of labor accidents)*2 Number of workdays lost per 1,000 working
hours (reflects the severity of labor accidents)

Personnel Rotation*
Status of Main Work Holiday andLeave Systems

Average Annual Salary*
Fiscal 2003

Respecting and Leveraging Human Assets

Reinforcement in Leveraging Female
Employees
Toppan proactively appoints female
employees to managerial and supervisory
positions. The Company’s efforts haveincreased the number of female managerial and supervisory staff to 90 (as of April
1, 2006). In April 2006, the Company
assigned four all-women teams to develop
new products and services from a feminine perspective.
Young female managers and supervisors
at Toppan have played a central role inlaunching projects to help maintain working environments in which female employees can work more energetically andfreely. Female staff plan and formulate
measures through a bottom-up approach.

and skills that employees acquire throughlong years of work. Toppan also operates
a Senior Reemployment System to offer
retired employees extended tenure at
the Company on a post-retirement basis
until they reach the age of 65 years.

Average
Employees Employees
Ratio ofUsing the Using theAnnual Paid Maternity Childcare
Work
Leave
Leave
Holidays Used System
SystemFiscal 2003

38.2%

35

48

Fiscal 2004

38.1%

38

46

Fiscal 2005

38.9%

32

55

Employees
Transferred

Percentage of
Total
Workforce

Fiscal 2003

588

4.5%

Fiscal 2004

343

3.3%

Fiscal 2005

326

3.0%

*Including only rotations among different divisions
to develop human assets for integrated strength
enhancement and Total Quality Assurance

TOPPAN CSR REPORT 2006

49

Respecting and Leveraging Human Assets

Realize a Safe and Secure Working Environment
Toppan recognizes that a safe and secure working environment for its employees is not only a social
responsibility, but also a prerequisite for improved productivity. The Company goes to great lengths to assure
safety and security beyond mere compliance with relevant laws and regulations.

Occupational Safety and HealthToppan makes every effort to eliminate
workplace accidents through the work of
the Safety and Health Committee, a bodymade up of both labor and management.
This committee has set up a Safety and
Health Subcommittee as part of its Total
Productive Maintenance (TPM) activities
seeking to increase the synergy of production activities and safety and healthmeasures.
Toppan also carries out proactive
safety checks in cooperation with technology departments before installing
equipment. This is an essential and highly
effective step for avoiding disasters.

Countermeasures against
Fires and Disasters
In addition to implementing a comprehensive disaster-preparedness drill,
Toppan’s fire-response squads have participated in the Self-defense Fire Training
Competitions held by local fire departments in alliance with and under theguidance of Toppan Security Service Co.,
Ltd. These squads have scored in the top
ranks at every regional competition.
Toppan also conducts drills on earth-quake countermeasures to practice theinitial actions to be taken immediately
after a major quake, and specialized drills
to confirm safety and provide employeeswith the information they need to returnsafely home after a major quake.

Healthcare and Enhancement
In order to prevent and promptly detect
diseases and to maintain and enhance
the health of employees, Toppan arranges
regular medical checkups and screenings
for lifestyle-related diseases. The Company operates 59 clinics across the country in cooperation with Toppan Group
Health Insurance Union. These clinics
hold various lectures on health and offer
guidance on healthcare and nutrition
based on the results of health examinations. Toppan also supports the enhanced
health of the Toppan workforce by providing employees with the opportunity touse 500 fitness clubs contracted by the
Toppan Group Fraternal Benefit Society
nationwide.
Mental Health
Mental Health Support Team, a special
team to provide mental health care services for the support of employees, wasMental Health System(to be established in fiscal 2006)

Operator (Safety / Health and Mental Health Support Team,the Labor Relations Department, Personnel & Labor Relations Division at the head office)Doctor supervisingmental healthGeneral affairs department ofeach operational site
Staff in charge of mental
health enhancement

Education andProvision of
information
Cooperation

Cooperation

Coordination and Advice

Doctor and clinical staff(resources in the operational site)
Consultation and Advice

Supervisor
Consultation

Personnel administration andRestriction during work

Employees

50

Consultation
and Advice

Toppan Group Health
Insurance Union
Cooperation

Coordination
and Advice

CooperationCounseling institutions, contracted
hospitals, etc. (resources outside of
the operational site)

Consultation
and Advice

Training for trainers

Specification ofpolicies and measures

Mental health training (line-care)

Mental health training (self-care)

Cooperation

TOPPAN CSR REPORT 2006

Cooperation

Health guidance andConsultation
Consultation

Consultation

founded in the Personnel & Labor
Relations Division at the head office in fiscal 2005 to launch organizational actions
for the mental health of employees.
Measures in fiscal 2006 have included
the deployment of doctors to supervise
mental health at the head office and theappointment of staff to head efforts
towards mental health enhancement andto undergo training at each division forthe building of a Company-wide structure for mental health. Mental healthtraining is also introduced in rank-based
training and optional training tostrengthen line-care by supervisors. The
Company actively supports self-care by
employees through the adoption of mental health checkups and the deploymentof mental health counselors.

Vacation
Toppan encourages employees to takeholidays individually through planned leaveon consecutive holidays granted in summer and other seasons, as well as throughpersonalized holidays to commemorate
anniversaries and other important events
for individuals. The usage rate of annual
paid holidays was 38.9% in fiscal 2005.

Health Enhancement Manifesto• Every employee must be healthy to pursue
self-realization. Employees’ health is also an
important resource for the Company, as
employees can only develop the businessesof the Company and contribute to social
activities with their maximum potential ifthey stay healthy.
• Though employees are responsible for theirown health, the Company proactively supports employees to enhance their health.
• Through activities to enhance mental health,
the Company is improving individual andorganizational powers by establishing a working environment in which all employees findtheir work meaningful and rewarding.
February 2006

Realize a Safe and Secure Working Environment

Support for Achieving
Work-life Balance

In keeping with the perception that laborand management are partners in sharedideals, the Company is working with various administrative issues and holding a
range of events in cooperation with thelabor union. For instance, Toppan holds
business councils as forums to discuss
wide-ranging administrative issues andmaintains special committees to exchange
views on the wage system, working
hours, welfare, and many other subjects.
In fiscal 2006, the Company will continue upgrading and expanding its measures to support the development of
the next generation throughout theCompany. The principal goals will include
not only sufficient treatment during
maternity leave, but also a smooth return
to work with a stable balance between
work and childcare after returning. As an
added step, labor and management committees will be established at each operational site to propose more effective
measures to reduce overtime working
and increase the usage rate of annual
paid holidays. Other benefit programs
will also be continuously reviewed,
depending upon the changes of the times.

Respect for Basic Human Rights
The Conduct Guidelines call for the assurance of the dignity of individuals under
all circumstances and no invidious discrimination due to race, ethnic group,
nationality, religion, gender, or physicalcharacteristics. To raise esteem for basic
human rights, including the ongoing prevention of sexual and power harassment,
Toppan continuously conducts awareness-raising activities during rank-based
training for new employees, new supervisors, and new managerial staff. There
were 1,036 trainees in fiscal 2005.
To resolve and prevent troubles withsexual harassment, the Company established the Basic Policy on Sexual Harassment at the Workplace and deployedcounselors in July 1999.
No instances of child labor or forcedlabor have ever occurred in the Company.

Respecting and Leveraging Human Assets

Toppan has striven to establish an environment in which employees can easily takechildcare leave. It does so by providing
systems for maternity and nursing careleave, for reduced working hours, and forhigher dependent family allowance.
For compliance with the Law for
Measures to Supporting the Developmentof the Next Generation, the Company
has followed up on the action plan (submitted in April 2005) by seeking certification from the labor bureaus of prefectural
governments. Specific plans call for
greater gender equality, a program toprovide information and skill enhancement training for employees during
maternity leave, and the introduction ofa reemployment system for employees
who resign due to childbearing or childrearing. These issues will be promoted
further through dialogues with the labor
union. Toppan also participates in the
Work-life Balance Research Group, aninter-corporate liaison council, including
Shiseido Co., Ltd. and IBM Japan, Ltd., toexchange opinions on how to strike abalance between work and life and toplot out actual measures.

Labor-Management
Partnership

Main Work Holidays and Leave Systems/Work-life Balance and Measures to Support the Development of the Next Generation
Stock Leave

Accumulated annual paid leave is generally lost if it is not exercised within two years. At Toppan, it is possible to accumulate 50
days of annual paid leave. This can be used when employees or their dependents require treatment or nursing, or for recovery from
unexpected accidents.

Maternity Leave

All employees—fulltime, contract, and part-time—can take six weeks of leave before childbirth and another eight weeks after.

Childcare Leave

Both mothers and fathers are eligible for extended childcare leave until their child reaches the age of 18 months (six male
employees have taken childcare leave so far). Employees receive 10 percent of their regular salaries during the leave. Employees canalso shorten or extend their leave while taking the leave, and work for shorter hours when they return to the workplace (maximum
adjustment of two hours per day). Toppan subsidizes some childcare costs and provides information through a consultation office.
Employees can consult with the Company to discuss their career plans before they return to work.

Nursing Care Leave

Employees are entitled to take leave for the nursing care of at least one family member when necessary. The maximum leave is one
year and the maximum reduction in a working day is two hours. The Company subsidizes some nursing costs and provides information through a consultation office.

Healthcare Leave

Employees can take up to 10 days a year of unpaid leave to manage the healthcare of a family member. The leave can be taken
half-day allotments when necessary.

Volunteer Leave

Toppan operates a volunteer leave system for employees wishing to take leave to engage in socially beneficial activities. Employees
can take a maximum of one year of volunteer leave, in principle, with an allowance. In fiscal 2005, one employee took volunteer
leave to serve with the Japan Overseas Cooperation Volunteers under the Japan International Cooperation Agency (JICA).

Dependent Family
Allowance

The Company pays employees a monthly allowance of 20,000 yen for each offspring (direct descendants) until the first April 1 toarrive after the offspring’s 18th birthday.

Partial Subsidization ofBabysitter Expenses

The Company subsidizes 50 percent of babysitter expenses, up to a maximum of 5,000 yen a day and for up to 90 days a year. Thissubsidy is granted via the Toppan Group Fraternal Benefit Society.

Other Systems

Supplementary allowance in addition to lump-sum allowance for childbearing and child rearing; one-year free subscription ofmonthly childcare magazine Baby and Mommy; establishment of consultation office regarding health of mind and body. (Operated
by the Toppan Group Health Insurance Union.)

TOPPAN CSR REPORT 2006

51

Activities for Society and Culture

Contributing to the Traditions and Development ofCulture and Sharing Impressions
Toppan recognizes it as a social duty to pass down printing as a culture and to contribute to the growth of theentire printing industry. The Company is fully involved in the operation of cultural facilities and the promotion ofcultural and artistic activities, including musical events.

As a Mainstay ofInformation and CultureEver since its invention, printing has contributed to the growth of culture and art
through the conveyance of information.
The information conveyed through printing can amaze and leave deep impressions.
Toppan’s activities to contribute tosociety and culture are the most important means to realize the Company’s
Corporate Philosophy, “contribute to afulfilling lifestyle as a mainstay of information and culture.” The Company has
developed various activities for society
and culture in the Printing Museum,
Tokyo and Toppan Hall, two cultural facilities constructed as annexes of the
Toppan Koishikawa Building. All of these
activities have been highly praised.
Toppan promotes those cultural and art
activities in cooperation with the Group
companies engaged in the publication ofchildren’s books, illustrated books, andschool textbooks, such as froebel-kan co.,ltd. and Tokyo Shoseki Co., Ltd.
Toppan puts a priority on contributing
to the development of not only theGroup, but the entire printing industry.

Printing Museum
Toppan opened the Printing Museum,
Tokyo in October 2000 as a facility toshare the historical significance of printing, a technology that has contributed
tremendously to the development of
human civilization. There have been over
170,000 visitors to the museum since its
opening.
The public can visit the General
Exhibition Zone in the Main Exhibition
Room year round, as well as Temporary
Exhibitions held several times annually.
The museum also includes the Printing
Workshop, VR Theater, specialized library,
and museum shop. The Printing Workshop, an area for education and training,has been used by over 150 institutions
and organizations, including companies,
technical colleges, and elementary
schools. The museum held two temporary exhibitions in fiscal 2005—The
Bicentennial Year of the H. C. Andersen
Birthday; and the Golden Age of Printing:From the Collection of the PlantinMoretus Museum.

For the Development of
the Printing Industry
As an industry leader, Toppan has always
striven to modernize the printing industry
and promote information culture in
Japan. Since 1995, Toppan Chairman &Representative Director Hiromichi Fujita
has spearheaded efforts to develop theindustry through his activities as thechairman of the Japan Federation of
Printing Industries.
The Research Group on Measures
for the Act concerning Protection of
Personal Information was founded in theJapan Federation of Printing Industries
after the Act concerning Protection of
Personal Information was fully enforced
in April 2005. Toppan acts as a chairperson of the research group to contributeto the entire printing industry throughthe creation and editing of Personal
Information Protection Guidelines for the
Printing Industry in fiscal 2004 and Q&A
on Personal Information Protection in
Printing Sites in fiscal 2005.

Commemorative Lectures andInauguration of the New Directorof the Printing Museum
Koichi Kabayama, an emeritus professor of
University of Tokyo and the former director of
the National Museum of Western Art, wasappointed as the new director of Printing
Museum to replace the outgoing (term-finished) founding director, Kiyoshi Awazu. The
Commemorative lectures for the fifth anniversary of the Printing Museum—“Let’s think ofprinting”—were held at the Faculty of Letters,
University of Tokyo in December 2005. Three
guest lecturers were invited, including the
new Director Kabayama.

The Bicentennial Year of the H. C. Andersen
Birthday

52

TOPPAN CSR REPORT 2006

Commemorative lectures for the fifth anniversary of the Printing Museum—“Let’s think ofprinting”

Personal Information Protection Guidelines for
the Printing Industry (right) and Q&A on Personal
Information Protection in Printing Sites (left)

Contributing to the Traditions and Development of Culture and Sharing Impressions

Supporting and Sustaining
Education Culture

Prize ceremony for the 17th Central Contest forBook Report Drawings

Toppan Hall opened in 2000 is a classicalconcert hall with 408 seats, designed forthe sharing of impressions.
Performances of every kind have been
held there, from recitals by world-famousmusicians to the Lunchtime Concerts andEspoir series to discover and foster talented youths. Special programs such as
the Violin Series and <Mozart Zyklus>
aroused interest in fiscal 2005, and fullscale concerts held in conjunction withtemporary exhibitions in the Printing
Museum gained public attention. Toppan
Hall is also lent out for the Music Competition of Japan and local elementary
schools; a lot of people use it. More than
210,000 people have visited the hall.
Toppan plans to further enrich Toppan
Hall as a concert hall.

Contributions to Society
through MusicIn 1959, froebel-kan co., ltd., a publisher
of children’s and illustrated books, organized the Froebel Boys Choir as a socialand cultural project. Boys choirs were relatively rare in Japan at that time. As
many as 1,000 boys have passed throughits distinguished ranks since its founding.
The choir now has about 90 young
vocalists, ranging from 3-year olds tojunior high-school students. The boys
carry out wide-ranging activities, including appearances on television and commercials. Their annual concerts withperformances of the movie songs ofAnpan Man, the popular animation series
for kids, have always commanded astrong following.
Tokyo Shoseki Co., Ltd. is a joint sponsor of the Association of Children’s
Songwriters in Japan’s Nursery Rhyme
Culture Award. Tokyo Shoseki is working
to popularize children’s songs as a meansof handing over Japanese culture to thecoming generation.

Activities for Society and Culture

Since 1989, Toppan has assisted The
Mainichi Newspapers Co., Ltd. and theJapan School Library Association as acosponsor of the Central Contest forBook Report Drawings, their annual
drawing contest to encourage youths
to express their impressions of books
through drawing. The judges of the 17th
annual competition in 2005 received over
467,839 picture entries from 7,284
schools.
Tokyo Shoseki Co., Ltd. opened The
Textbook Library of school textbooks, thefirst such institution in Japan, back in
1936. This library now houses about
150,000 books. Every variety of textbook
is represented, from the newest editions
to literature and documents from the Edo
Period. Researchers on education, students, and the general public are all free
to browse the collections. The Tosho
Education Award was established in1984 with the aim of contributing to
education. The library selects the best
essay on teaching from many submissions and chooses a winner every year.

Toppan Hall

Lunchtime Concert: OB/OG gala concert to commemorate the 250th anniversary of Mozart’s birthFroebel Boys Choir

The Textbook Library

Barrier-free layout: wheelchair accessible

Japan’s Nursery Rhyme Culture AwardTOPPAN CSR REPORT 2006

53

Activities for Society and Culture

Activities for Contributing to Local Communities
As Toppan has operational sites throughout Japan, it considers communication with local communities to be an
important activity. Every operational site contributes to local society through wide-ranging activities.

Harmony with Local Communities
All of Toppan’s operational sites organize
activities to deepen ties with the local
communities where they operate. Opening their facilities, these sites invite neighbors from the community to take plant
tours and hands-on workshops. Toppan
employees clean up the environments
around their facilities, conduct disasterprevention and anticrime activities, andtake part in community events outside
the Company. Other organized gettogethers between employees and neighbors are held to nurture friendships andenhance Toppan’s coexistence with local
communities as a corporate citizen.
Cleaning Up and Beautifying
the Environment
Personnel from every operational site
beautify the environments around theirfacilities by pruning and weeding roadside greenery and cleaning up sidewalks,
bus stops, and shopping streets.
As many as 10,812 employees at 25
operational sites took part in environmental cleanup and beautification activities last year. In response to a call from
the Mie prefectural government, volunteers from the Mie Plant worked withmunicipal employees and local residents

from Kameyama City to remove electricalappliances and household wastes dumped
along the prefectural roads. Two 2-tontruckloads were recovered.
Opening Operational Sites to Local
Communities
The Asaka, Itabashi, Sagamihara, Osaka
Ebie, and Shiga Plants open their gymnasiums to neighboring residents, schools,
and sports organizations from their communities. They also loan out their meeting rooms and dining facilities as venues
for local meetings and anniversary events
for the public. The Technical ResearchInstitute and Sagamihara Plant open up
their parking lots to neighboring community facilities and kindergartens for special
events and for rehearsals for the Bon festival dance in summer. The Koishikawa
Site lets the residents of a neighboring
condominium use its parking lot as a substitute for their basement parking when
the risk of overflow from the Kanda Riverrises during typhoons. Toppan will continue in this vein in the future.

Plant Tour and Support toLearning Outside Schoolfrom neighboring elementary schools,
junior high schools, and high schools foron-site tours. About 1,500 people visitedplants at 20 operational sites in fiscal
2005. The sites also brought in students
on internships and junior high school,
high school, and university students
for workshop practices. The Company
included a good number of persons withphysical disabilities among the students
invited for the plant tours and light-duty
work training, in order to heighten theirawareness of the importance of work.
Toppan prepares plant environments
where practice drills are held securely.
Company employees conversant in sign
language assist with the drills, for example.
Ensuring Safety in Local Communities
In addition to promoting fire-response
activities in-house, the operational sites
engaged in various safety activities toprotect their neighborhoods. The mostcommon safety activities were disaster
drills hosted by neighborhood community associations, fire-fighting exercises inalliance with local fire departments, traffic safety guidance, and anticrime patrols.

Every operational site invites people fromlocal community groups and students

Toppan’s Activities for Contributing to Local Communities

Communication

Local
Communities

54•Environmental cleanup andbeautification activities•Opening operational sites andtheir facilities to local communities•Plant tours•On-hands workshops•Disaster prevention and anticrime
activities•Participation in events inneighborhoods by cosponsoringand offering products•Toppan beer festivals•Exchanges with neighborhood
community associations•Blood donation campaigns•Environmental communicationand so forth

TOPPAN CSR REPORT 2006

Neighborhood cleanups around
operational sites

Plant tours for students fromneighboring elementary schools

Environmental communication

Open facility

Environmental Report

Overview of Environmental Activities
Toppan’s Environmental Activities

56

Overview of Fiscal 2005 Results andFuture Environmental Targets
Fiscal 2005 Results and Environmental Targets 58
Environmental Investment andConservation Benefit

61

Environmental Management
Environmental Management System

62

Environmental Management Activities

64

Environmental Communication Activities

66

Environmental Conservation Activities
Mitigating Global Warming and Saving Energy 68
Resource Circulation

69

Pollution Prevention and Chemical SubstanceManagement and Reduction

70

Approach to Logistics

71

Environmentally-friendly Products andEnvironment-related Business
Development and Assessment ofEnvironmentally-friendly Products

72

Environmentally-friendly Printing Services

74

Forest Management andFormulation of Recycling-oriented Society

75

Environmental Management Data

76

Overview of Environmental Activities

Toppan’s Environmental Activities
Toppan is aware of the importance of the environment as a management issue and is promoting environmental
activities in all sectors of its business. Toppan’s environmental activities can be placed into two main categories:
the development and commercialization of environmentally-friendly products and the reduction of theenvironmental burden of production. The environmental burden caused by business activities is taken as
the base of all activities.

Declaration on the Global
Environment

Toppan’s Environmental
Burden and Environmental
ImpactIn 1991, Toppan established the Ecology
Center and assigned it the role of overseeing its environmental activities. The
following April, the Company laid out
the Toppan Declaration on the Global
Environment, a comprehensive environmental philosophy appended with explanations of methods to be used totranslate that philosophy into action.
Since then, the declaration has guided
the efforts of all employees of the Groupas they work together to advanceToppan’s environmental activities under
the leadership of the Ecology Center.
In September 2000, areas of the
Toppan Declaration on the Global Environment were revised to reflect reformed
management policies. The Environmental
Action Plan is reviewed on a regularbasis, and the Environmental Targets aretreated as an indicator of Toppan’s environmental management as the Company
strives to improve its environmental activities (➞P.58).
The Toppan Declaration on the Global
Environment will be thoroughly reviewed
whenever social attitudes on the global
environment significantly change. Toppan’s
work to improve upgrade environmental
activities will be ceaseless on every front.

Toppan has a broad business base, andeach of the products it manufactures
imposes different environmental burdens. Environmental burdens must be
reduced in accordance with every product life cycle and production process
based on a minute understanding of theindividual environmental burdens entailed
in the development, commercialization,and manufacture of every product.
Toppan has established a comprehensive set of Environmentally-friendly
Product Assessment Guidelines to ensurethat this can be achieved for every product group. By acting on assessment
guidelines that bring the entire life cycle
into view, from product planning anddevelopment onward, the Company aims
to develop environmentally-friendly products in a manner appropriate to the environmental burden of each business area.
Toppan compiles and ascertains dataon the environmental burden associatedwith its production activities in three separate business fields, and every Toppan
production site undertakes its own set ofenvironmental activities to manage its
own environmental burdens.

Toppan’s Declaration on the Global
Environment

Flow of Environmentally-friendly Products

1. Each of our employees recognizes theimportance of global environmental issues
and endeavors to conserve the global environment.
2. We actively promote energy/resource conservation and recycling as a means of conserving the global environment.
3. We abide by the law and social order, striving to prevent environmental pollution.
4. Through our business operations, we
actively support our customers’ activities toconserve the global environment.
5. In our research, we endeavor to develop
products and technologies that help conserve the global environment.
6. We
implement
corporate
activities
designed to further global conservation in
the context of an international society.
Established April 1992
Revised September 2000

56

Overview of Environmental
Activities

TOPPAN CSR REPORT 2006

Division

The first step in reducing environmental
burden is to ascertain the environmental
impact of the Company’s overall businessactivities. Toppan compiles data on thebalance of materials at each production
site based on INPUT (materials andenergy used)/OUTPUT (materials discharged as a result of production) andthen assesses the impacts of sites fromvarious environmental perspectives. The
Company establishes Environmental
Targets based on the results of theseassessments, clarifies its priorities, carries
through with the environmental activities
in pursuit of its targets, and verifies theresults of those activities.
As a company engaged in a diversity ofbusinesses, Toppan imposes environmental impacts in various forms. To evaluate
the extent and variation of its environmental burden rationally, the Company
compiles and ascertains its environmental
data independently in its three main business fields: Information & Networks,
Living Environment, and Electronics(➞P.57).

Planning and development of environmentally-friendly products
Assessment
guidelines
Assessment of environmentally-friendly products

Application for environmentally-friendly products

Ecology
CenterRegistration
application
Confirmation of divisional assessment

Registration of environmentally-friendly products
Registered data enteredinto database
Product manufacturingToppan’s Environmental Activities

Main Environmentally-friendly Products in the Business Fields
Information & Networks

Living Environment

Electronics

Supporting the businesses of customers via theprocessing, management, and operation of diverse
content and the creation of new value withinformation

Providing products and services that contribute to
comfortable lifestyles while meeting the needs ofboth individuals and society from environmental
and other standpoints

Providing high-performance parts and electronics
products and services in the fields of semiconductors and displays

Recycled Vegetable-oil Ink

GL Family

Anti-reflection Film

Printing ink and printed materials made withrecycled vegetable oil as a substitute for 70% ormore of the original soybean oil component

A transparent barrier film made entirely withoutchlorine-based resin: used in solar batteries, in
display materials, and as a packaging material forfoods, beverages, pharmaceuticals, and manyother goods

An anti-reflection optical film with 50% lessplastic material compared to our existing productrange: attached to the surface of the liquid crystal
displays used in cellular phones and PCs

Major Environmental Burdens in Each Business Field (INPUT/OUTPUT data)
Total Energy Consumption
Non-production Sites
765

Electronics
5,249

Total Effluent Discharge
Non-production Sites
305
Living Environment
1,452

Living Environment
4,718(Unit: 1,000 m3)(Unit:
1,000 tons)

Information &Networks
1,177

Total Water Consumption
Electronics
8,982

Information & Networks
181.1

Total PRTR ReleaseNon-production Sites
0.4

Electronics
63.7

Living Environment
396.0

Living Environment
1,964

325.0

Overview of Environmental Activities

10,544(Unit: 1,000 GJ)

Non-production Sites
378

Electronics
39.1

Total

Total

15,962

Information & Networks
5,231

Total Waste Generation
Non-production Sites
3.0
Living Environment
101.7

Total

Information &Networks
1,613

Electronics
7,610

Total

Total

12,937749.5(Unit: 1,000 m3)(Unit: tons)

Information & Networks
289.4

When the data are broken down by businessfield, Electronics accounts for about 70% of thewater consumption and effluent discharge, Information & Networks accounts for about 55% ofwaste generation, and Living Environment accounts
for about 55% of release of PRTR-law designatedchemical substances. The total energy consumption, i.e., the quantity of electricity and fuels consumed, is about the same in each business field.
Differences in the material units accounted for in
the three business fields make it difficult to calculate the total material input volumes on a comparative basis. Information & Networks clearlyaccounts for a large percentage of the paper consumed.

Note: Excludes figures for overseas subsidiaries and certain independent subsidiaries. The total PRTR release is calculated by totaling the releases of PRTR-law designatedsubstances at each operational site. Dioxins are not included among target substances due to differences in the counting units.

TOPPAN CSR REPORT 2006

57

Overview of Fiscal 2005 Results and Future Environmental Targets

Fiscal 2005 Results and Environmental Targets
Based on its Environmental Action Plan, Toppan specifies concrete policies to realize the targets of its Declarationon the Global Environment, the basic philosophy of its environmental activities. The Company also reviews andestablishes Medium- and Long-term Environmental Targets and Environmental Targets for every fiscal year.

Environmental Targets
Based on its Environmental Action Plan,
Toppan specifies concrete policies for all
businesses to achieve the targets of the
Declaration on the Global Environment,
the basic philosophy of its environmental
activities. The Environmental Action Plan
specifies Medium- and Long-term Environmental Targets and Environmental
Targets for the current fiscal year. The
Declaration on the Global Environment
provides a roadmap for expanding environmental activities along with its busi-

ness and encouraging every employee totake an active role.
Toppan takes one fiscal year as one
cycle for its environmental activities andreviews its environmental activities withinthat time frame. The Medium- and Longterm Environmental Targets are reviewed
and the Environmental Targets for thefollowing fiscal year are set based on theevaluations of achievements in the current fiscal year.

Evaluation of Progress inEnvironmental Targets
Toppan set 19 Environmental Targets forfiscal 2005 and undertook various programs and activities to attain them. As ofthe end of the year, 16 of the targets
including three with set figures werereached and three were not.
Toppan has been substantially achieving its targets in environment-related
businesses and its targets for waste
reduction, recycling promotion, andreduced emissions of chemicals into theEnvironmental Targets and Fiscal 2005 Results
Environmental Objectives

Medium- and Long-term Environmental Targets

Mitigation of global warming through the development ofenergy-saving measures

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

Promotion of waste reduction and recycling

Reduce waste generation per unit of sales
Expand the material recycling of industrial waste
Reduce final landfill waste disposal by 90% compared to the fiscal 2000 level by
fiscal 2010
Efficiently utilize the industrial waste materials generated in the manufacturing
stage and realize zero-emissions at all domestic sites by fiscal 2010

Prevention of atmospheric pollution via VOC emission restraints

Reduce VOC emissions into the atmosphere by 80% compared to the fiscal 2001
level by fiscal 2010

Contributing to the environment via the development and marketingof eco products

Promote environment-related business through expanded sales of environmentallyfriendly products
Develop environmentally-friendly products and apply LCA in product development

Promotion of environmental communication
Avoidance of environmental risk—
Establish and observe appropriate in-house management guidelines that embrace
regulatory controls
Prevent the risk of soil contamination
Maintain appropriate communication with stakeholders

Enhancement of environmental education and the dissemination ofenvironmental awareness to all employees
Upgrading of environmental management systems at our overseas
production sites——

Valuation standard: S, Results achieved greatly in excess of targets; A, Targets achieved; B, Activities fully carried out but targets unachieved;
C, Activities were insufficient
Note: Partially applicable to overseas subsidiaries. Not applicable to certain independent subsidiaries.

58

TOPPAN CSR REPORT 2006

Fiscal 2005 Results and Environmental Targets

atmosphere since 2004. The Company
was not successful, however, in meetingits targeted reductions of carbon dioxide(CO2) emissions in fiscal 2004 and 2005.
The Company has also fallen considerably
short of achieving its targets for thedevelopment of environmentally-friendly
products.

Review of Environmental
Targets
The targets in fiscal 2006 were reviewed
based on evaluations of the accomplishment of the Environmental Targets forfiscal 2005. Toppan added one new measure for the control of risks from chemicals in the Company’s existing Mediumand Long-term Environmental Targets,
resulting in 15 medium- and long-termtargets and 18 Environmental Targets forfiscal 2006, to promote environmental
activities.

Environmental Targets for Fiscal 2005

Toppan’s Declaration on the Global Environment

Fiscal 2005 Results

Evaluation

Reference
Page
P.68

CO2 emissions per unit of sales: Reduce by 4% compared to
the fiscal 2004 level

CO2 emissions per unit of sales: Reduced by 0.9% compared to thefiscal 2004 level

B

Establish targets for fiscal 2006

Target for fiscal 2006 establishedA

Establish targets for fiscal 2006

Target for fiscal 2006 establishedA

Final landfill waste disposal: Reduce by 10% compared to
the fiscal 2004 level

Final landfill waste disposal: Reduced by 35% compared to the fiscal
2004 level

S

Expand the number of certified zero-emission sites:
To 23 sites

Expand the number of certified zero-emission sites: Increased to 23 sites

Establish targets for fiscal 2006

Target for fiscal 2006 established*1

P.69

A
A
A

Dichloromethane emissions into the atmosphere: Reduce tozero by the end of fiscal 2005

Target accomplished by the end of March 2006
(emission volume in fiscal 2005: 2.6 tons)

A

Sales in environment-related business*3: 61.4 billion yen(increase by 7% compared to the fiscal 2004 level)

Sales in environment-related business: 62 billion yen(increased by 8.1% compared to the fiscal 2004 level)

A

Expand the number of products registered asenvironmentally-friendly products: 14 new products

Number of products registered as environmentally-friendly products*4:
Increased to 78 in total; 9 items added

C

Apply LCA in product development at regional divisions(Living Environment)

Applied LCA at the Nishinihon Division

Evaluate research themes based on LCA

Evaluation implemented by LCA subcommittee of Technical ResearchInstitute

Implement environmental communication by exhibiting at
Eco-Products 2005

Exhibited at Eco-Products 2005

Observe in-house management guidelines at all operationalsites and review them as necessary

Evaluations implemented in 52 domestic sites through internal
environmental audits

A

Implement soil investigations at operational sites that track
the use of designated toxic substances

Soil investigations implemented at Asaka and Ebie areas and therequired actions conductedA

Expand the number of operational sites that issue Site
Reports: To 20 sites

Expand the number of operational sites that issue Site Reports:
Increased to 20 sites (15 Reports in total)

A

P.67

Expand e-learning systems (trainee base: 10,000 people atGroup companies)

Number of employees participated in e-learning systems: 8,805(20,123 in total for four years)

B

P.65

Implement internal environmental audits at overseas
production sites: Taiwan and China regions

Implemented at three operational sites in Taiwan region(Five operational sites in China region from May to June 2006)

A

Monthly records of conformance to local regulatory
guidelines and environment-related data

ISO 14001 certification acquired by Toppan Printing Co., (Shanghai)Ltd. in April 2006

A

P.70

P.72
A
A
A

Overview of Fiscal 2005 Results andFuture Environmental Targets

Toluene emissions into the atmosphere*2: Reduce by 45%
Toluene emission into the atmosphere: Reduced by 52% compared
compared to the fiscal 2004 level (reduce by 90% compared to the fiscal 2004 levelto the fiscal 2001 level)(reduced by 92% compared to the fiscal 2001 level)

P.67

P.64

P.64

*1 Target in the industry: 41% reduction by fiscal 2010 compared to the fiscal 2000 level*2 Calculated based on performance at 11 plants*3 Target figure revised according to the calculation criteria in fiscal 2005
*4 Number of products that can now be manufactured by the Company

TOPPAN CSR REPORT 2006

59

Overview of Fiscal 2005 Results and Future Environmental Targets

Environmental Targets for Fiscal 2006
Environmental Objectives and MediumEnvironmental Targets for Fiscal 2006
and Long-term Environmental Targets
Mitigation of global warming through the development of energy-saving measures
Reduce CO2 emissions per unit of sales by
10% compared to the fiscal 2000 level by
fiscal 2010

CO2 emissions per unit of sales: Reduce by
4% compared to the fiscal 2005 level

Details on Specific Measures•Develop and operate a methodology for proper energy management by setting up management guidelines that demonstrate
the status of efficient energy usage at each operational site
•Reinforce large-scale energy-saving measures (exploring
the possibility of partnering with ESCO)

Promotion of waste reduction and recycling
Reduce waste generation per unit of sales

Waste generation per unit of sales: Reduceby 5% compared to the fiscal 2005 level•Reduce material consumption and improve recovery rates

Expand the material recycling of industrial
waste

Material recycling rate: 60%•Seek recycling partners using the Toppan Group Network•Monitor recycling processes through site inspections of contractors

Reduce final landfill waste disposal*1 by
90% compared to the fiscal 2000 level by
fiscal 2010

Final landfill waste disposal: Reduce by
10% compared to the fiscal 2005 level•Reduce the direct landfill waste disposal by reducing thegenerated waste•Reduce the volume of residual processed waste by selecting
efficient intermediate treatment technologies

Efficiently utilize the industrial wastematerials generated in the manufacturing
stage and realize zero-emissions at all
domestic sites by fiscal 2010

Expand the number of certified
zero-emission sites*2: To 26 sites•Promote waste recycling by reviewing waste separation guidelines
and adopting them as binding rules•Expand in-house treatment and recycling facilities while selecting
appropriate recycling partners

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

VOC emissions into the atmosphere: Reduce •Perform a detailed examination of total VOC emissions in fiscal 2005by 10% compared to the fiscal 2005 level•Install processing equipment for effluent gas with sufficientconsideration of energy circulation, such as solvent collection andwaste heat recovery

Control of risks from chemicals
Reduce the consumption of PRTR-law
designated chemical substances

Consumption of PRTR-law designatedchemical substances: Reduce by 10%
compared to the fiscal 2005 level•Reduce the consumption of materials containing designatedchemical substances and shift to alternative materials with low
content of the same
•Use the Toppan Group Network to develop in-house standards
for materials containing no designated chemical substances

Contributing to the environment via the development and marketing of eco products
Promote environment-related businessthrough expanded sales ofenvironmentally-friendly products

Sales in environment-related business*4:
63.6 billion yen (increase by 7% comparedto the fiscal 2005 level)•Promote sales and marketing activities for environmentally-friendly
products via ISO 14001 operations

Develop environmentally-friendly products
and apply LCA in product development

Expand the number of products registeredas environmentally-friendly products: 5 new
products•Develop products based on Environmentally-friendly Product
Assessment Guidelines•Disclose product environmental data through the Toppan
Environmentally-friendly Product Certification Label

Apply LCA in product development atregional divisions (Living Environment)•Newly apply LCA at the Chubu and Hokkaido Divisions andupgrade LCA at the Tohoku and Nishinihon Divisions•Extend project support from the head office for divisions
applying LCA

Evaluate research themes based on DfE(Design for Environment)•Establish a DfE materialization system at Technical ResearchInstitute

Promotion of environmental
communication
Avoidance of environmental risk

Implement environmental communication by
exhibiting at Eco-Products 2006

•Disseminate information through environmental forums,
exhibitions, and lecture presentations

Establish and observe appropriate inhouse management guidelines thatembrace regulatory controls

Observe in-house management guidelines at •Establish in-house management guidelines through internal
all operational sites and review them as
environmental audits and confirm the validity of criteria measuresnecessary

Prevent the risk of soil contamination

Implement monitoring inspection for thevacant lots of restored operational sites

Maintain appropriate communication with Expand the number of operational sites thatstakeholders
issue Site Reports: To 24 sites•Regularly monitor underground water and report the results togovernmental agencies•Issue a CSR Report and Site Reports

Enhancement of environmental
education and the dissemination ofenvironmental awareness to all
employees

Continuously implement environmental•Expand the number of learners in environmental education byeducation via e-learning (follow-up for those setting up an intranet e-learning system
yet to participate)•Promote two-way environmental communication using Toppan
Environmental Link (another intranet system)

Upgrading of environmental
management systems at our overseas
production sites

Implement internal environmental audits atoverseas production sites: Americas andSoutheast Asian regions•Conduct internal environmental audits, including site inspections•Confirm the establishment of environmental management systems
through internal environmental auditsMonthly records of conformance to local
regulatory guidelines and environmentrelated data

•Conduct activities aimed at acquiring ISO 14001 certification•Periodically release data on environment-related issues via theMonthly Overseas Site Reports*1 Final landfill waste disposal: Direct landfill disposal + landfill disposal of residues from intermediate treatment*2 Zero-emission site: Operational site with a recycling rate of 98% or more (subject to approval by the Ecology Center)*3 VOC emissions into the atmosphere: The industry targets a 41% reduction by fiscal 2010 compared to the fiscal 2000 level*4 The sales of the former Industrial Materials Division is excluded from the result in the previous year, the basis for the target value in fiscal 2006,
due to the spin-off of the division into a separate company.

60

TOPPAN CSR REPORT 2006

Environmental Investment and Conservation Benefit
Toppan has been keeping an environmental account and disclosing its results since fiscal 1998. The Company has
reviewed its methods for counting and disclosing its environmental account from fiscal 2005. In addition to theamounts invested in equipment for environmental conservation, the fiscal 2006 accounting discloses the cost fortreatment of soil/underground water and the cost for asbestos removal.

Cost of Equipment forEnvironmental Conservation

VOC treatment equipment at production
sites in the Living Environment andexpansion of VOC treatment equipment
and new construction of wastewater
treatment equipment at production sites
in the Electronics.
Other capital investments have beenoutlaid to fund energy-saving improvements in lighting-related equipment (e.g.,modifications of mercury vapor lamps
and the construction of new heatexchangers for the effective use of wasteheat) and waste-processing improvements in new disposal equipment (suchas the installation of disintegrators andwastepaper treatment equipment for volume reduction and recycling).
Other Environment-related Cost
Toppan invested 184 million yen in countermeasures to prevent the pollution ofsoil and underground water in the vacantlots of the former Fukuoka Plant andAsaka area in fiscal 2005. Henceforth,another 297 million yen will be spent onasbestos removal work (to be finished by
the end of March 2007).

Environmental Conservation Equipment Investment

Wastewater recycling system for the treatment ofwastewater containing heavy metals and processing to produce purified water (Toppan CFI (Taiwan)Co., Ltd.)

Environmental Conservation Benefit(Million yen)
Increase/ Total Sum
Decrease for thefrom
Last Five
Fiscal 2004 Years

Item

Major Contents

Fiscal2005

1. Investment inequipment
to prevent
pollution

Investment inequipment to prevent
atmospheric and otherforms of pollution

3,106

356

12,625

2. Investment
in equipment
to conserve
the global
environment

Investment inequipment to conserve
the global environmentby mitigating global
warming

354

▲28

1,910

3. Investment inequipment tocirculateresources

Investment inequipment foradequate treatment
and the recycling ofwaste materials

234

▲193

2,170

4. Investment inequipment for
management
activities

Investment in equipment to monitor andmeasure environmental
burdens and to plant
trees at operational sites

Total

Equipment for the detoxification of VOC effluent
gas from gravure printing presses (Sagamihara
Plant)

EnergyWater
Atmosphere

Water andsoil
environments

Waste

28

▲21

460

3,722

113

17,165

Increase/
Fiscal 2005
Decrease
20,5271352
Total energy consumption (1,000 GJ)
15,432
449
Water consumption (1,000 m3)977
83
CO2 emission (1,000 t-CO2)
Emission of ozone-depleting
2.5▲1.1
substances (ODP-t)
232
NOx emission (tons)
1254
SOx emission (tons)
▲10
130
71
Emission of dioxins (mg-TEQ)
12,569338
Total effluent discharge (1,000 m3)
Underground penetration
38▲
12(1,000 m3)
3
2,348
256
On-site evaporation (1,000 m )191
BOD (tons)
12
196
49
COD (tons)
396
5
Total generation (1,000 tons)

Overview of Fiscal 2005 Results andFuture Environmental Targets

Toppan has been keeping an environmental account since fiscal 1998 to help
the Company calculate the cost and costeffectiveness of the equipment used forenvironmental conservation. The accounting results have been disclosed every year
since the accounting was commenced.
This year, however, the company reviewed
its methods for accounting and disclosure.
This review focused on the Environmental
Conservation Equipment Investment andthe Environmental Conservation Benefit
in order to exclude reliance on estimates,
insofar as possible. This is expected to
improve the accuracy of examinations on
cost effectiveness.
Toppan has invested 3,722 million yen
in environmental equipment this fiscal
year, 3% more than the amount invested
last year. While the capital investment inenergy-saving measures and waste disposal has decreased, the additional installation of equipment for VOC effluent gas
treatment resulted in an 11% increase in
overall investments in equipment for pollution prevention year on year. The major
capital investments for the current fiscal
year are as follows: new construction of

Total values may not match, as decimals were rounded up or down.
Entities covered: Toppan Group (see P.21)
Period covered: April 2005–March 2006 (January 2005–December 2005 foroverseas subsidiaries)
See P.70 for conservation benefit by PRTR release reduction.

TOPPAN CSR REPORT 2006

61

Environmental Management

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

Toppan’s Environmental
Management

tive of ISO 14001 certification. The
Technical Research Institute and 50
domestic production sites have beenpressing ahead with their environmental
activities to achieve the targets set under
the Eco-protection Activity Plan.
Progress of the activities is checked
monthly by the Eco-protection Promotion
Committee to ensure that any problems
that arise are resolved as quickly as possible. Every operational site sends the
Ecology Center reports on major environmental results on waste and energy
either monthly or every half year. Toppan
prepares an effective structure forpromptly evaluating progress towards its
Environmental Targets and revising thetargets as needed.

Toppan’s environmental management
relies on the operation of an establishedenvironmental management system covering the sales, sales promotion, and R&D
departments in addition to the actual
production sites. At one level, executives
conduct ongoing environmental management reviews to ensure that the PDCA
cycle, a core part of this system, continues
to improve the efficiency of environmental measures. Data on the actual resultsof environmental measures, meanwhile,
are regularly collected by the Ecology
Center in the head office, evaluated andverified by the Director in charge ofEnvironment, reported to top management via the Management Committees,
and so on. The improvements to the system are promoted throughout the entire
Company after further reviews.

research sites and sales offices haveacquired ISO certification in the last twoto three years.

Structure to Promote
Environmental Activities
Under the control and leadership of
the President & CEO and the Director in
charge of Environment, Toppan has set
up an environmental management system in every production site, R&D department, and sales and sales promotion
department inside and outside of Japan.
The Ecology Center, a part of the
Corporate Manufacturing, Technology &Research Division at the head office, isdirectly responsible for operating the system. The center works to instill theEnvironmental Policies and Environmental
Targets determined by top management
and measures to realize these policies
and targets among the employees of thevarious divisions and production sites, aswell as to convey environmental information from the divisions and production
sites back to top management.
Specifically, Toppan has established inhouse systems to promote the progress

Status for Obtaining ISO 14001
Certification
Fifty-one domestic sites (34 systems) in
the Toppan Group had obtained the ISO
14001 certification as of June 2006. Eightoverseas sites have now acquired certification with Toppan Printing Co.,
(Shanghai) Ltd. in China acquiring certification in April 2006.
This is not limited to production
sites alone: Toppan’s divisions including

Characteristics of Toppan’sManagement System
Toppan’s environmental management
system is uniquely structured. The Company’s PDCA cycle concept is put into
practice at every operational site irrespec-

Overview of Environmental Management
ToppanDeclaration on
the Global
Environment

Eco-protection Activities
Legal
requirements
Environmental
aspects
Environmental
impactProduction and Research Sites
Environmental
PolicyEnvironmental
Objectives
Environmental
Targets

Ecoprotection
Activity Plan

Eco-protection
Promotion Committee
Environmental
activities

Review

Medium- andLong-term
Environmental
Targets

Achievement
evaluation/review

Ecoprotection
Achievement
ReportNational Ecoprotection Meeting
Chaired by the
Director in chargeof Environment(semi-annually)(monthly)

Eco-creativity Activities
Sales/SP and R&D Departments
LCA
evaluationGreen
procurement

Environmental
Targets

62

Progress review

TOPPAN CSR REPORT 2006

Development
Targets
Subject ofResearch

Targeted
Sales

R&D for environmentallyfriendly productsReview

System for the developmentof environmentallyfriendly products
Progress review
Achievement
evaluation/review

Sales activities forenvironment-related
business

System to promote
Eco-creativity Activities
Sales management(monthly)

National
Eco-creativity
Meeting
Total

Environmental
management
review by top
management

Chaired by the
Director in chargeof Environment(semi-annually)(as required)

Review of
Medium- andLong-term
Environmental
Targets

Review ofEnvironmental
Targets

Environmental Management Systemand efficiency of the Company’s Eco-protection and Eco-creativity Activities totake various environmental measures.
These systems are advancing under the
direction of the Ecology Center.
Many of Toppan’s Eco-protection
Activities are launched independently at
the site level. Toppan production sites
convene their own Eco-protection Promotion Committees, each with its own
subcommittees to address specific issues.
The Company’s strong focus on energysaving activities has led to a considerable
strengthening of the Energy Subcommittees since the beginning of fiscal
2003.
With regard to Toppan’s Eco-creativity
Activities, each division has establishedan Eco-creativity Promotion System todevelop environmentally-friendly products and environmental support businesses.
Reinforcing the Integrated Strengthof the GroupIn fiscal 2003, Toppan began reviews of
its environmental management structure
as a corporate group and organized asemi-annual Toppan Group Environmental Meeting under the auspices ofthe Meeting with the Heads of AffiliatedCompanies. By confirming the progress
towards the Environmental Targets ofeach company and sharing environmental issues, Toppan is strengthening its
environmental risk management structure and preparing and implementing
measures designed to leverage the inte-

grated strength of the Group.
In fiscal 2004, the Company established the Toppan Group Eco-products
Meeting and began operations topromote the sharing of environmental
information on the development of environmentally-friendly products in eachGroup company. Various actions havebeen conducted to standardize the criteria for product evaluation.

Environment Management System
President & CEO
Meetings with the Heads ofAffiliated Companies
Corporate Auditor

Toppan Group Environmental Meeting

Director in charge ofEnvironment

Directors at
the Head Office

Ecology Center
Corporation Manufacturing,Technology & Research Division

Related Divisions atthe Head Office

R&D Departments

Sales and Sales
Promotion Departments

Domestic and Overseas
Production Sites
IFrequency: Semi-annually

National Eco-protection Meeting IMajor objectives: Reporting and discussing

National Eco-creativity Meetingachievements of environmental activities

Tokyo Eco-protection
Meeting

IFrequency: As needed
IFunction: Advisory meeting on Companywide environmental measures

Environmental ISO
Secretariat Meeting

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

Eco-protection
Promotion Committee
Energy Subcommittee

Other Subcommittees

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

IFrequency: Semi-annually
IMajor objectives: Reporting and discussing
achievements of environmental activities

Tokyo Eco-creativity Meeting

IFrequency: Semi-annually
IFunction: Advisory meeting on Companywide environmental measures

Environment ISO
Supervisory Committee

IFrequency: Annually
IFunction: Strategy planning committee
for ISO 14001 operations

Eco-creativity Promotion System
System to Promote the Developmentof Environmentally-friendly
Products in Each Division
LCA Working Group

Environmental Management

Toppan Group Eco-products Meeting

IFunction: Promotion of Eco-creativity
Activities in the divisions
IFunction: Planning, development,
evaluation, registration, and qualificationof environmentally-friendly products
IFunction: Execution of product LCATOPPAN CSR REPORT 2006

63

Environmental Management

Environmental Management Activities
Toppan’s PDCA cycle is being fully implemented through internal environmental audits and the environmental
management systems of its operational sites. In addition to environmental compliance (the upholding of all
regulations relating to the environment), the Company also fully implements environmental education tocontinuously maintain and improve its environment-related activities.

Internal Environmental
Audit System
Toppan’s internal environmental audit
system follows a two-stage screening
process: a document audit and an on-site
audit. The internal environmental audit
team consists of internal environmental
auditors in addition to assistant auditors
responsible for auditing the environmental management system. The team begins
by inspecting and evaluating the structural status of systems, compliance withenvironment-related laws and regulations, and compliance with in-housestandards at all the operational sites
audited. Next, the team compiles theInternal Environmental Audit Reports(documents specifying necessary improvements pointed out during audits) andsubmits them to the director in charge.
The internal environmental audits arereviewed within the same fiscal year inorder to raise the level of compliance forthe following fiscal year.
Results of the Fiscal 2005 Audit
In fiscal 2005, the internal environmental
audit team audited 52 operational sites inJapan and compiled a list of 699 areas inneed of improvement. To correct these
deficiencies, each operational site follows
an Improvement Plan that lists therequired improvements and deadlines forcompletion. Toppan has confirmed theprogress of improvement measures on
246 items at 13 operational sites throughinternal environmental audit reviews. The
progress and results of the remaining
453 improvement measures will be
reviewed during internal environmental
audits of fiscal 2006.
Local hearings and inspections are carried out every other year at overseas production sites in the U.S.A. and Asia
regions. In fiscal 2005, three operationalsites in Taiwan region were inspected
for local environmental audits. These
inspections identified 38 items requiring
improvement. Most of the inspection
examinations focused on the implementation and operation of environmental
management systems and the understanding and confirmation of compliancewith local environment-related laws andregulations. Other examinations focusedon the environmental impact on atmosphere and water and the daily control ofenergy and waste. To improve operational conditions, the overseas sites havefollowed the example of the domestic
sites by taking necessary procedures
under the Improvement Plan.

Approach to Environmental
ComplianceToppan’s production sites endeavor toprevent environmental pollution more
rigorously by complying with all environmental laws, regulations, and agreements
set by national and local governments
and communities. The sites also endeavor
to comply with Toppan’s in-house standards, which are usually stricter thannational and local regulatory standards.
The compliance status at domestic sites
is reported to the head office in Eco-protection Achievement Reports every April.
Overseas sites, meanwhile, submit
Monthly Overseas Site Reports, and compliance at both domestic and overseas
sites is confirmed by internal environmental audits.
Compliance in Fiscal 2005
No nonconformities related to the atmosphere were detected in any of operational sites in Japan in fiscal 2005.
With regard to water, however, three

Review of the Internal Environmental Audit
Internal Environmental
Audit Report*1
Document audit

On-site audit

Summary and evaluation of
results of the internal
environmental audit

A summary of activities conducted throughout the year to ensurecompliance with about 200 items for internal environmental auditing
specified by the head office
A pre-check of the Internal Environmental Audit Report conductedprior to the implementation of an on-site audit to clarify environmental
aspects at each operational site
1) Hearings with executives and staff in charge of environmental
matters at the operational site, based on the Manual on Hearings
for the Internal Environmental Audit
2) Four-point evaluation (0, 1, 2, and 3) on applicable items, based on
Evaluation Standards for the Internal Environmental Audit.
3) Verification of the state of environmental management via an
inspection within and around the operational site, based on the
Manual on Inspections for the Internal Environmental Audit.
Summary of issues in need of improvement, along with an evaluation
score and general comments of each operational site. Returned tosenior managers at each site for feedback.

Internal environmental auditing hearing

Plan for the Improvement of Description of a specific improvement plan in response to issues in need of improvement pointed out during audits. Submitted to the head office upon confirmation bySpecified Issues
the chief of the Eco-protection Promotion Committee at the operational site.
(Improvement Plan)
Internal Environmental
Audit Reports

Delivered to the corporate auditors and the Director in charge ofEnvironment.

Review of Internal
Environmental Audit

Conducted to assess progress and give appropriate guidance on issues
found to be in need of improvement pointed out during audits.

*1 Operational sites that have already acquired the ISO 14001 certification report their activities in the
management review document.

64

TOPPAN CSR REPORT 2006

Internal environmental auditingEnvironmental Management Activities

resulted from a defect of deodorizing
equipment and was immediately resolved
by corrective measures. A full report on
the incident was presented to the relevant authorities. Toppan plans to promote more preventive measures and tofurther reduce the levels of noise and foulodor at its operational sites in the future.
Toppan was not subject to any environment-related litigation, penalties, orfines in fiscal 2005.
Emergency Response
Chemical solvents are handled and used
on a daily basis at each operational site.
Some types of accidents that occur during handling and use pose a risk of soil
and water pollution, particularly thosethat occur when solvent is being transferred from tank trucks to tanks. Toppan
has installed pollution-preventive devices
and preparing oil fences, sandbags, andother measures to prevent the outflow ofsolvents in the event of leaks or similar
accidents at operational sites susceptible
to environmental impacts.

Environmental Education
To maintain and improve the quality andscope of its environmental activities,
Toppan recognizes that its employees
need to take the initiative to educate
themselves further in environment-relatedareas. The Company provides a systematic range of educational opportunities toraise the environmental consciousness of
its entire workforce, from new recruits tosenior managers.
In fiscal 2002, Toppan introduced an elearning system supported by web-based
training. This system offers educational
opportunities for all employees without
any constraints on time or place. The network platform online supports two-way
communications for Q&A and otherforms of dialogue-based learning. Thanks
to this system, employees can learn environmental issues effectively within a shorttime. In fiscal 2005, Toppan implemented
ISO 14001: 2004 Internal Environmental
Auditor Training by leveraging the characteristics of this e-learning.

Environmental Management

operational sites recorded contaminationlevels exceeding the regulatory standards(beverage washing drainage, 1 case;
BOD, 2 cases; soluble iron content, 1case). The Company took corrective measures in each case and has kept the levels
within the standards since.
Regarding pollution of soil and underground water, there was one confirmed
instance of soil contamination exceeding
environmental or municipal standards infiscal 2003 and two in fiscal 2004. All
three cases were handled with purification and restoration steps. Based on its
experience with soil contamination at thevacant lot of the former Fukuoka No. 1
Plant, Toppan took preventative measures against future soil contamination byimplementing voluntary investigationsof all operational sites subject to risks ofsoil contamination one by one in fiscal
2005. As a result of these investigations,trichloroethylene levels exceeding environmental standards were detected in
the underground water of a well in the
Asaka area (➞P.19).
Regarding noise and foul odor, theauthorities alerted the Company to odor
levels that exceeded regulatory standards
in one case in fiscal 2005. The odor

Purification of Soil/Underground Water Pollution Monitored by
Self-investigation (fiscal 2005)
Operational Site

Location

Pollution Detected

Purification Treatment

Vacant lot of
the former
Fukuoka No.1
Plant

Koga City,
Fukuoka

Soil pollution by hexavalentchromium
Underground water pollution
by hexavalent chromium
Underground water pollutionby VOCs

Restoration work wascompleted; undergroundwater is now monitored

Nagoya Plant

Nishi Ward,
Nagoya City,
Aichi

Soil pollution by hexavalentchromium

Restoration work wascompleted; undergroundwater is now monitored

Shiga Plant

Higashi-omi
City, Shiga

Soil pollution by hexavalentchromium

Restoration work wascompleted; undergroundwater is now monitored

Asaka Plant

Niiza City,
Saitama

Underground water pollutionby VOCs

Underground water is
now monitorede-learning

TOPPAN CSR REPORT 2006

65

Environmental Management

Environmental Communication Activities
In order to make its environmental activities more fruitful, Toppan considers it important to spread awareness on
the environment amongst the wide range of people related to the Group, starting with employees. Toppan isdeveloping various levels of environmental communication, including environmental education and integration
into local communities.

Major In-house Communication
Activities
Toppan Environmental Link
The Toppan Environmental Link website
was set up on the Company intranet
in fiscal 2001 as a channel for sharing
environmental information and raising
employee awareness on the environment. Links to environmental informationand data on environmentally-friendly
products inside and outside the Company
are provided.
The system has supported interactive
transmission since fiscal 2003, when thesystem was modified to help activate inhouse communication.

Formulation of Toppan’s
Environmental Logo
All of the employees within the Toppan
Group must constantly reconsider environmental issues if the Company is
to fully understand its own impacts andpromote comprehensive environmental
activities. The Toppan Environmental Logo
adopted in 1999 is now printed on inhouse publications, business cards, andother materials to remind employees of
the constant need for environmental
action.

President’s Ecology Awards
Toppan newly incorporated the Ecology
Awards in its biannual lineup of President’s Awards as a strategy to stimulate
the environmental efforts of employees.
The Toyama Plant of NEC Toppan Circuit
Solutions, Inc. was commended as aplant conducting excellent energy management in fiscal 2005.

The staff received an award from the President &CEO

Toppan Environmental Link

Toppan’s Environmental Logo
Toppan aspires to devote increasing attention to
the global environment through its Eco-protection and Eco-creativity Activities. The Environmental Logo expresses both Toppan’s corporate
concept and actions. Toppan’s environmental
efforts and actions are symbolized as a seed thatwill germinate and grow. The stalk shooting outof the seed symbolizes the “E” of ecology, and its
two leaves represent Toppan’s Eco-protection
and Eco-creativity Activities.

Toyama Plant of NEC Toppan Circuit Solutions, Inc. Honored by the Minister of Economy, Trade and Industry
The Toyama Plant of NEC Toppan Circuit
Solutions, Inc. designs and manufactures
printed wiring boards for the Toppan Group.
The plant develops and executes environmental activities from its site on the alluvial coneof the Kurobe River in the heart of nature’s
bounty. In the spirit described in its environmental philosophy, “We aim to become anearth-friendly company loved by the earth,”the plant has always treated environmentrelated issues as important administrative
tasks.
As a culmination of its long-running efforts
for energy saving, the plant received the top
award from the Minister of Economy, Tradeand Industry at the Fiscal 2005 Awards for
Plants Undertaking Excellent Energy Management held in February 2006.
The Energy/Resource-saving Promotion
Committee, a body of manufacturing, technology, and energy management depart-

66

TOPPAN CSR REPORT 2006

ments, spearheads energy-saving activities of
the type recognized by this award. The committee is responsible for the planning of various actions to fulfill quantitative targets forenergy saving and employee education. It also
monitors the execution of initiatives and theaccomplishment of the targets every month.
More than 30 energy-saving actions areplanned and implemented yearly through thiscoordinated system, and exemplary cases are
adopted throughout the entire plant. The
most effective action among them is equipment improvement of high-pressure air used
for drying processes and as energy to run
plant machinery. In combination with step-bystep efforts such as air leak prevention, thissystem proved to be capable of reducing thepower consumption of high-pressure air by
20% or more compared with the previous
level.

Toyama Plant of NEC Toppan Circuit Solutions, Inc.

Top award from the Minister of Economy,
Trade and Industry

Environmental Communication Activities

Disclosure of Environmental
Information
Communication with Local
Communities
The communities around Toppan’s plants
filed 37 complaints and inquiries in fiscal
2005, indicating that many stakeholders
were inconvenienced. The complaints
dealt mainly with noise and foul odors,
two forms of urban pollution. While mostof the problems were promptly solved,
several problems related to production
activities require further efforts. Toppan
will continue to make capital investments
to improve facilities and deepen communication with local residents.
Toppan recognizes the importance ofcommunicating with local communities.
To make clearer its responsibility forthe impact of its business activities on
the environment with the momentum
from the launch of the PRTR law, theCompany has thoroughly reviewed bothits understanding of the current situation
through environmental assessment andthe methods used to exchange opinionswith third-parties through risk communi-

cation. In addition to presenting guidelines from the head office, Toppan sharesinformation by holding Risk Communication Study Groups and implements risk
communication based on the actual status of its operational sites.
Publishing Environmental Reports
Toppan has been disclosing the environmental information in its Environmental
Report (re-named the CSR Report in fiscal
2004) since 1998. In line with the development of its global business, Toppan
has been making the same report available in English since 2000. Toppan’s ISO
14001-certified sites have been issuing
Site Reports, periodic communications
directed to municipalities and residents insurrounding areas since fiscal 2000
(issued by 20 operational sites in fiscal
2005).

through participation in lectures andseminars, including conferences of tradeand industrial organizations and programs of its own. Toppan’s work topresent and hold environment-related
exhibitions is allocated as a priority
among the Company’s environmental
communication activities.
The CSR Report 2006 only presents environmental performance data from the entire Group.
Environmental performance data on individual
operational sites in the Group can be found at
the CSR Report URL below. Please contact thefollowing address to request Site Reports by email.

OCSR Report URL
http://www.toppan.co.jp/english/csr/index.html
OAddress for requesting Site Reports
eco@toppan.co.jp

Participating in Seminars andOrganizing Environment-related
Exhibitions
Toppan encourages the public outside
the Company to understand its environmental efforts. It does this mainly
Environmental Management

Exhibiting at Eco-Products 2005
Toppan exhibited products in cooperation
with its Group companies (Tokyo Shoseki Co.,
Ltd., Toppan Forms Co., Ltd., Toppan Cosmo,
Inc., and froebel-kan co., ltd.) at the EcoProducts 2005 exhibition held in December
2005. The environmentally-friendly products
on exhibit were classified into five categories
to enlighten visitors on the environmental
considerations entailed in manufacturing
everyday products for the public: recycling,
resource-saving, health & safety, environmental education, and office ecology. Visitors of
all ages also had the chance to participate in
fun Toppan events. Some tried to extract
fibers from PET bottles. Others took a special
quiz that challenged them to tell real woodapart from printed grain.
Environmental considerations were an
important factor in setting up the Toppan
exhibition booth. The lighting was carefully
controlled to save energy, for example, andthe panels and tables were made from environmentally-friendly materials reproduced
from source materials such as cardboard
boxes and milk cartons.

Soft eco-clay workshop in the booth (presented
by froebel-kan co., ltd.): visitors particularly
appreciated the wholesome, non-chemical odorof eco-clay, a feature achieved with the use of asynthetic vegetable oil.

Tokyo Shoseki Co., Ltd. of the Toppan Group has
published a number of books and DVDs on environmental education.

Quiz to compare real wood with printed grain:children scored better than adults.

Visitors enjoyed the rare opportunity to see PET
bottle recycling firsthand. Most people know thatPET bottles are a source of reusable fiber. Few,
however, have actually seen the process of fiber
extraction.

TOPPAN CSR REPORT 2006

67

Environmental Conservation Activities

Mitigating Global Warming and Saving Energy
The expanding scale of production and the new and additional construction of environment conservationequipment prevented Toppan from accomplishing its CO2 emission target for fiscal 2005. The Company will
propel energy-saving activities by reinforcing the energy management system in fiscal 2006.

Energy-saving Activities
Toppan is constantly searching for more
effective ways to use energy in an effort
to reduce the emissions of carbon dioxide(CO2) and other greenhouse gasses. To
respond to the Kyoto Protocol targets for
reduced greenhouse gas emissions, theCompany has established the following
Medium- and Long-term Environmental
Target: To reduce CO2 emissions per unitof sales by 10% compared to the fiscal
2000 level by fiscal 2010. The Company
also sets targets for each fiscal year basedon the medium- and long-term targets.
To meet Toppan’s overall targets for theyear, every production site sets individual
targets for emissions per unit of production value and emissions per unit of production volume by product type.
Toppan began its activities in fiscal
2005 with the following target: To
reduce CO2 emissions per unit of sales by
4% compared to the fiscal 2004 level.
Results fell considerably short of the target, with an actual reduction of 0.9%.
The energy-saving effect from reinforcements and modifications of the energy
management system failed to keep up
with the expanding scale of production

and the new and additional constructionof environment conservation equipment.
With the 7.8% increase in CO2 emissions per unit of sales compared to thefiscal 2000 level, the Company requires
more and continued efforts to accomplish its medium- and long-term targets.
The various energy-saving measures now
being planned and examined should be
implemented to reduce CO2 emissions
after fiscal 2006.
Energy Management System
Toppan has been reviewing its management system for the rationalization ofenergy use since fiscal 2003. Under the
Energy Management Guidelines, Toppan’s
policy for energy management, theCompany has appointed personnel tohandle energy management at each production site and has established theEnergy Subcommittee (meets once amonth in principle) to deploy energy-saving activities.
Equipment management activities arealso being reviewed at each production
site to ensure compliance with theEnergy Saving Law. Part of this effort
includes the Energy-saving Review, a specialized review for energy saving held

Energy Consumption(1,000 GJ)
20,000

15.87
14.61

13,812

14,026

Measure to assure the effectiveness of the airconditioning system by shielding the outdoor
components from direct sunlight (sunshade)

CO2 Emissions■Energy consumption■ Energy consumption per unit of sales

14.25

each fiscal year to identify and correct
any problems with site checks. These
reviews were conducted at 41 production
sites targeted for improvements in energy
management structure in fiscal 2005.
Wide-ranging improvements were confirmed in the energy-saving items indicated in the previous fiscal year.

16.34(GJ/million yen)
20
16.15

(1,000 t-CO2)
800

16.07

637

■CO2 emissions■ CO2 emissions per unit of sales
646

661
0.73

675

687

0.74

0.72

(tons/million yen)
1.00
710
0.71

15

600

10,000

10

400

0.50

5,000

5

200

0.25

0
2005
(Fiscal year)0

15,000

0

2000

2001

14,4692002

14,946

2003

15,388

2004

15,962

0.66

2000

0.67

2001

2002

2003

2004

0.75

0
2005
(Fiscal year)

Notes: Excludes figures for overseas subsidiaries and certain independent subsidiaries.
The Company referred to the Ministry of the Environment’s Guidelines for Calculating Greenhouse Gas Emissions from Businesses for its own calculationsof energy consumption and CO2 emissions in Japan. Detailed percentage data by energy type are shown on P.79.
The data for the previous year were modified for adjustment to revisions of the calculation method, etc.
In calculating CO2 emissions for fiscal 1990, Toppan was forced to rely on estimations due to problems in the accuracy of measurement at that time, andexpansion and revision of the scope since. For this reason, the calculated result is not used as a management value.

68

TOPPAN CSR REPORT 2006

Resource Circulation
Through its skillful management of waste materials, Toppan has reduced its final landfill waste disposal by 35%
compared to the previous fiscal year and increased the number of zero-emission sites to 23. Toppan will continue
to actively promote the reuse of waste as a recycled resource.

Waste Reduction Activity
Waste paper, a waste product derived
primarily from Toppan’s Information &Networks and Living Environment Fields,comprises 74% of the total waste generated by Toppan’s operational sites. Waste
acids (such as waste etchant from plants
in the Electronics Field) and waste plastics(from plants in the Living Environment
Field) also make up substantial portionsof the total waste generated.
As an incentive for improved waste
management performance, the Company
targets a 90% reduction of its final landfill waste disposal* in fiscal 2010 relative
to the level in fiscal 2000. Company-wide
efforts to thoroughly separate and recycle wastes in fiscal 2005 led to a 35%
reduction relative to the fiscal 2004 level.
This far surpassed the 10% reduction target for the year. The final task to beaccomplished by fiscal 2010 is the recycling of sludge.

Development of Zero-emission
TargetReuse of Waste as Recycled
Resources

In a move to standardize its approach towaste reduction, Toppan launched activities to achieve zero-emission targets at anumber of plants selected as “zero-emission models” in 1999. Based on the
results achieved at these model plants,
Toppan began certifying “zero-emission
sites” in November 2001.
Toppan encountered obstacles inachieving its zero-emission targets when
external factors beyond the Company’scontrol began dictating the recycling rate.
As a solution, Toppan reviewed its certification criteria and redefined zero-emission sites as plants with recycling rates of
98% or more and approval by the
Ecology Center in the head office. The
center certified and registered 23 operational sites in fiscal 2005 on the basis ofthese criteria at the Toppan National Ecoprotection Meeting held in November
2005.

Two important tasks in the drive toachieve zero-emission efforts are to use
wastes more effectively in-house and todevelop recycling through external communication. Toppan is committed toreusing the waste from each process
throughout the Company as much as
possible.

(1,000 tons)
500
92.9

91.0

93.1

95.4

(%)
100

96.3
80

400
337.2

314.7

318.7

321.6

324.5

325.0
60

300

40

200

20

100
24.0
0

2000

16.8
2001

14.0
2002

10.5
2003

5.9
2004

Waste Disposal by TypeType of Waste■Total waste generated ■Final landfill waste disposal■ Recycling rate (recycling amount/total waste generated)

94.4*Direct landfill disposal + landfill disposal ofresidues from intermediate treatment: theresidues discharged from the recycling processes
are included.

3.8

0
2005
(Fiscal year)

Environmental Conservation Activities

Total Waste Generation and Final Landfill Waste Disposal/
Recycling Rate

Certification of zero-emission site

DisposalAmount (tons)

Ratio

Waste paper

240,518

74.0%

Waste plastic

25,377

7.8%

Waste acid

18,220

5.6%

Waste oil

11,263

3.5%

Sludge

9,567

2.9%

Waste alkali

7,741

2.4%

Metal chips

5,905

1.8%

Wooden chips

2,330

0.7%

Cinders

2,159

0.7%

628

0.2%

Others

1,264

0.4%

Total

324,973

Glass chips

Note: Excludes figures for overseas subsidiaries and certain independent
subsidiaries.

TOPPAN CSR REPORT 2006

69

Environmental Conservation Activities

Pollution Prevention and Chemical SubstanceManagement and Reduction
Toppan is working to reduce its burden on the environment and prevent pollution by establishing and complying
with in-house control standards even more stringent than the legal regulations. Toppan substantially reduced
emissions of VOCs, mainly toluene, in fiscal 2005, repeating its achievement of fiscal 2004.

Pollution Prevention Activities
Toppan is now developing activities toprevent pollution and minimize the environmental burden of its production activities. To accomplish these goals, theCompany collects information to gleanan accurate picture of the actual state of
the various environmental burdens at
each operational site. The Company isworking actively to reduce its burden on
the environment and prevent pollution bycomplying with in-house control standards (established by the Eco-protection
Promotion Committee for each operational site) even more stringent than thelegal regulations.
Preventing Atmospheric Pollution
and Protecting the Ozone Layer
To prevent atmospheric pollution,
Toppan controls smoke and soot generating facilities such as boilers and incinerators by switching fuels and managing
operations under appropriate combustion conditions. At the same time, theCompany has introduced VOC effluent
gas treatment equipment for the thorough control of atmospheric pollution
prevention.

Preventing Water and Soil Pollution
Toppan reduces water pollution at its
plants by installing wastewater treatment
facilities designed to ameliorate the environmental burden imposed by specificproduction processes. The introduction of
the wastewater recycling systems to
reduce water consumption and effluent
discharge has improved the reusage rates
of wastewater, particularly in production
sites in Electronics. The effluent discharged during processes is completely
recycled in the Building B of the Mie Plant
completed in March 2006.
Toppan’s principal safety concern inmanaging its chemical solution storage
tanks is to prevent the leakage of fluids.
Walls have been constructed around thestorage tanks and workers regularly
inspect the tanks and piping to detectcracks and other flaws before soil pollution can occur.

Total Release and Transfer of PRTRlaw Designated Chemical Substances

Toluene Emissions into
the Atmosphere(tons)
6,000■Total release ■Transfer

6,000
3,479.4
3,140.9

3,000
2,000

2,077.1

4,000

1,812.9
1,328.4

1,000
0

2002

The reduction targets established fortoluene and dichloromethane were bothachieved in fiscal 2005. From fiscal 2006,
Toppan will establish new targets to
reduce the consumption of PRTR-law
designated chemical substances and systematically promote the switchover tomaterials with little to no PRTR content.

NOx and SOx Emissions
300■NOx ■SOx (Unit: tons)
243

250

201

200

2003

2004

1,031.8
749.5

2005(Fiscal year)

Note: Calculated from the release and transfer of
PRTR-law designated substances at each
operational site; dioxins are not included as
specified substances due to a difference inthe counting unit. The figures at overseas
subsidiaries and certain independent subsidiaries are excluded. The data in fiscal
2004 were modified for adjustment to revision of the aggregation method.

TOPPAN CSR REPORT 2006

2,000

150
100
59

45

41

2003

2004

50
0

2002

36

2005
(Fiscal year)

Note: Excludes figures for overseas subsidiaries
and certain independent subsidiaries. Figures are calculated based on the Environmental Activities Evaluation Program by the
Ministry of the Environment in April 2002.

(tons)(tons)

40
32.3
30

5,349

25.6
20

3,296

10

1,232
634

0

195

194

Dichloromethane Emissions into
the Atmosphere

8,000

5,567.8

4,000Management of Chemical
Substances

6,676

5,000

70

Emissions of Hydrochlorofluorocarbons(HCFCs), a family of ozone-depleting
substances mainly used in cleaning
processes, were reduced by 20% in fiscal
2004 compared to the level in the previous fiscal year, chiefly by adopting substitutes on a larger scale.

Note: Covers operational sites that handle at least
1.0 ton annually. Excludes figures for overseas subsidiaries and certain independent
subsidiaries.

7.4
2.6

0

2001 2002 2003 2004 2005 2006
(Fiscal year)

19.8

2001 2002 2003 2004 2005 2006
(Fiscal year)

Note: Covers all operational sites that have handled the substance so far. Excludes figures
for overseas subsidiaries and certain independent subsidiaries.

Approach to Logistics
Toppan Logistics Co., Ltd. handles the distribution and logistics for the Toppan Group. The main environmental
challenge in logistics is to reduce the environmental burden caused by transportation. The Company is reducing
the levels of CO2 emissions discharged from trucks and promoting safe and environmentally-friendly
transportation.

Reduction of CO2 Emissions
Discharged from Trucks
Toppan Logistics Co., Ltd. targets a 10%
reduction in CO2 emissions per unit ofsales compared to the fiscal 2002 level by
fiscal 2010.
This company works to improve transport efficiency by mixed loading (inKanto, Chubu, and Kansai regions), to
improve the loading ratio using logistics
depots at plants across the country, tooptimize the number of vehicles, and topromote modal shifts.
The promotion committee (held every
two months) manages operational resultsin the Kawaguchi area (Packaging, Commercial Printing, and Publications) of
Saitama Prefecture, one of the majorbases for the Company, with the aim ofpromoting eco-drive and improving
mileage through environmental management programs.

Safe Transportation
Toppan Logistics Co., Ltd. proactively
promotes safer transportation of its own
50 vehicles, aiming to obtain the G Markcertification for excellence in operationalsafety.

Environmentally-friendly
Transportation
All operational sites with their own vehicles (Kawaguchi and Niiza Sales Offices)
have been recognized for their voluntary
activities to control their environmental
impacts by implementing eco-drive, introducing low-pollution vehicles, keeping
vehicles in good condition throughinspections, and reducing waste discharge. These efforts have culminated in
the renewal of the Green Management
certification.

Results• 27% reduction in CO2 emissions perunit of sales compared to the fiscal
2002 level(at logistics sites in Kanto area)• 13% improvement of mileage comparedto the fiscal 2001 level(for company-owned vehicles)• Establishment of management system
Renewal of ISO 14001 certification
Renewal of Green Management certification
Acquisition of the G Mark certification for
excellence in operational safety• Introduction of low-pollution trucks(including vehicles meeting the standards of
the New Long-term Exhaust Gas Regulation)• Promulgation of eco-drive
Seminars for partner companies

Certification of GreenManagement

Environmental Conservation Activities

Activities to Improve Mileage
1. Eco-drive seminars (semi-annually)
2. On-site training (semi-annually)•Comparison with data on middle-aged
drivers[Actual state of benefits]
3. Monitoring of progress•Feedback on problems (as necessary)
Indicate and train through individual
meetings•Disclosure of results (every month)
Disclose results by month and individual[Confirmation of the degree of achievement]
4. Improvement of driving technique•Participate in safe driving contest held by
relevant organizations

Vehicles meeting the standards of the New Long-term
Exhaust Gas Regulation

Disclosure of monthly individual results

Examination for the G Mark certification of
excellence in operational safety

TOPPAN CSR REPORT 2006

71

Environmentally-friendly Products and Environment-related Business

Development and Assessment of Environmentally-friendly
Products
The planning and development of environmentally-friendly products is carried out based on Toppan’s in-houseevaluation criteria, all of which are compliant with ISO 14021. The Company is also striving to quantify environmental
burden through its ISO 14040-compliant LCA procedures. Each Group company has introduced Eco-productsStandards and taken part in the planning, development, and assessment of environmentally-friendly products.

Toppan’s Basic Thinking on
Environmentally-friendly
Products

Environment-related Business

Toppan develops its environmentallyfriendly products based on its own set ofstandards established in close consideration of the industry in which each division
operates. The overarching criteria are
Toppan’s 14 Environmental Points basedon ISO 14021 standards. The Ecology
Center evaluates the developed products and registers those which meet all
the criteria as “environmentally-friendly
products.”
Toppan attaches its Environmentallyfriendly Product Certification Labels to allof its environmentally-friendly products
to spell out environmental considerations
to users and fulfill the requirements ofaccountability.
The number of environmentally-friendly
items produced by Toppan totaled 78 asof the end of March 2006.

EPOP, an electronic POP material made with safe
materials and leadless solder around the board

Toppan divides its “environment-related
businesses” into three categories: thedevelopment of environmentally-friendly
products, recycling business involving thereuse of products, and environmental
communication business (e.g., support
for other companies as they prepare theirown environmental reports). The Company works to realize a recycling-oriented
society by promoting these businesses.
Sales of Environment-related
Business(Million yen)
65,36762,04670,00060,000Rear-projection TV screen that consumes 45%
less raw materials than existing products

50,00048,47851,96844,59740,00030,00020,00010,0000Stripping and heat-sensitive label for glass bottles:
no more sticky labels to manage during recycling

2001

2002

2003

2004 2005(Fiscal year)

Note: The sales of the former Industrial Materials
Division is excluded from the result in fiscal
2005, when the division was spun off into
a separate company.

Toppan’s 14 Environmental Points and Environmental Considerations
Life Cycle StageISO 14021
Environmental
Labeling Type II

Products anddistribution

Toppan’s 14 Environmental
Points for Environmentallyfriendly Products
1. Use of safe materials

Recycling rate

2. Use of recycled materials

Resource reduction

3. Resource-saving

Recovered energy
Reduced solid waste

4. Reduced energy consumption in production
5. Use of recovered energy
6. Reduced solid waste

Use

Energy-saving

After use

Long-life products
Reusable/refillable

7. Energy-saving
8. Reduced release ofchemical substances
9. Long product life
10. Reusability

Recyclable

11. Recyclability
12. Suitability for disposal

Easy detachment
designDegradability

72

TOPPAN CSR REPORT 2006

13. Easy separation anddisassembly
14. Biodegradability

Toppan’s Standards
Toppan will not use substances banned by industrial organizations or substances that
could potentially contaminate the Company’s products with environmental hormones.
Toppan will not produce products from recycled materials that could potentiallycontain environmental hormones or substances banned by industrial organizations.
The consumption of resources is reduced during the materials production andlogistics processes.
The consumption of energy and water is reduced during the production and logistics
processes.
Products are produced with surplus energy or energy recovered from waste materials.
The generation of solid waste is reduced through modifications of the production
process, product design, and packaging. (Byproducts reused in processes are notincluded in this category.)
Energy consumption is reduced during product operation.
Products release the lowest possible levels of chemical substances.
Product lifetimes are extended by improving durability and adopting scalable designs.
Products can be reused or refilled for their original or related purposes. Systems andinfrastructures are provided for collection and reuse.
Systems and facilities are provided for product recycling. Recyclable parts areindicated as such.
The materials used discharge the lowest possible levels of harmful gases duringincineration. Landfill waste is carefully treated to prevent all forms of soil contamination.
Product designs enable easy separation and disassembly. The parts and materials
used support product recycling.
The biodegradable and photodegradable materials used in the products break down
naturally and are assimilated back into the environment.

Development and Assessment of Environmentally-friendly Products

LCA Activities

Activities by Group Companies

The Nishinihon Division has utilized theLife Cycle Assessment (LCA) approach toquantify the environmental burden of
products. An LCA conducted in fiscal
2005 assessed the environmental burdenof a proprietary functional film developedby Toppan: a bi-layer moisture-prooftransparent film for packaging food. The
emissions of CO2 (a greenhouse gas that
contributes to global warming) from thispacking material across the life cycle are
60% of those from the existing three-ply
product.
Toppan improved the accountabilityof its operations and won the trust ofenvironmentally conscious customers by
disclosing its LCA results. The LCA application system is now better equipped toquantify the environmental burden of
products.

The affiliated companies in the Toppan
Group are also helping to establish a
recycling-oriented society through production activities that place importanceon the preservation of the global environment.
Each Group company has established aset of Eco-products Standards in line withindustry conditions and features of product categories. These companies develop,
produce, and market products in environment-related businesses under their Ecoproducts Standards. Total sales in thesebusinesses stood at 150 billion yen in fiscal 2005.
The efforts of Group companies todevelop, produce, and market environmentally-friendly products based on theirown Eco-products Standards have helped
activate the environmental activities
throughout the Group.

Management of Chemical
Substances in Products
Manufacturers operating globally areurgently pressed to manage chemical
substances in products in order to minimize risks to the health of consumers andthe global environment by reducing thelevels of harmful chemicals in their products insofar as they can.
Toppan has responded by establishinga set of Guidelines for Managementof Chemical Substances in Products andapplying the guidelines in periodic reviewsof in-house rules and systems for quality
assurance. In order to monitor the compliance with those rules and systems, onsite audits regarding the management ofchemical substances in products havebeen started in the plants.

Environmentally-friendly Products andEnvironment-related Business

LCA Results of Moisture-proof
Transparent Packing Material(CO2 emission)
100

(%)
100

75
60

50
25
0

Three-ply productBi-layer productToppan proprietary moisture-proof transparent
packing material

Ecosheet, a door surface material designed toreduce the levels of chemicals responsible for sickhouse syndrome, and Coordination Floor, a flooring material. Manufactured by Toppan Cosmo,
Inc.

Data management system for chemical substancesin products

Fresh direct label, a peel-off label made with ahighly safe adhesive that complies with the standards of the U.S. Food and Drug Administration.
Manufactured by Toppan Forms Co., Ltd.

TOPPAN CSR REPORT 2006

73

Environmentally-friendly Products and Environment-related Business

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

Introduction to the GPN
Purchasing Guidelines forOffset Printing Services
As a member of the Green Purchasing
Network (GPN) (➞P.39), Toppan tries tominimize the environmental impact ofprinting and provides printing services
based on the Purchasing Guidelines forOffset Printing Services. The Company
applies environmentally-friendly technologies at every step of the process,from the selection of designated inks andpapers to surface processing, binding,and packaging. Many local governments
and companies involved in green purchasing activities have adopted these
services.
Production and Plate-making
Toppan saves natural resources andenergy by excluding films and development processes through the full digitalization of every stage from original toplate-making.

both the human body and the earth’s
atmosphere. The Company has also commercialized a recycled vegetable-oil ink
made from used soybean oil collectedfrom school cafeterias, restaurants, andother such sources.
Providing Environmentally-friendly
Paper
Printing paper is a resource made fromforest resources. The types of printing
paper in use today help conserve forest
resources: recycled paper, tree-free paper,
FSC-certified paper, and paper madewith wood from forest-thinning operations.

an organic solvent, and the resulting discharge of liquid waste.
Environmentally-friendly
Bookbinding and Finishing Processes
Fragmentation-resistant hot-melt is anadhesive suitable for use on paper to berecycled. Besides offering strong cohesion, it can be completely removed fromprinted materials without fragmenting
during recycling. Toppan has also developed methods for bookbinding andprocessing to confer outstanding recyclability. With Eco-binding, for example,
printed materials can be bound without
the use of stitching wire.

Waterless Printing System
The waterless printing system uses a silicone layer that repels ink in lieu of water.
This eliminates the need for dampening
water containing isopropyl alcohol (IPA),

Toppan’s Advanced Environmentally-friendly Printing Technology
IColor Management System (CMS): A computer-based color management technology for printing

Using Environmentally-friendly Inks
Toppan has developed a soybean-oil ink
that contains virtually no aromatics, aclass of organic compound harmful to

IDigital photography technology: A photographic technology that requires no film
IDirect Digital Color Proof (DDCP): A color proof technology that generates far less film at the platemaking stage
IComputer to Plate (CTP): A plate technology that sends digital data directly to the printing plate

Environmental Considerations in Producing this Report
Toppan actively applies various environmentally-friendly technologies and methods in theprinting of the Toppan CSR Report.
Toppan has been manufacturing Cartocan
to promote the use of wood from forest-thinning operations since 1995 (➞P.4). The useof wood from forest-thinning operations conserves domestic forest resources and encourages the proper nurturing of forests. The
body of the CSR Report 2006 is printed
entirely on paper containing wood from forest-thinning operations. This is an advanceover the CSR Report 2004, in which only
parts of the body were printed on paper containing wood from forest-thinning operations. The Company will continue to promote
environmentally-friendly printing services andthe use of paper designed to benefit domestic forest resources.

74

TOPPAN CSR REPORT 2006

Environmental Considerations in the CSR Report 2006
Process
Photography

Specific Measures

Environmental Considerations

Use of digital photography for the new Elimination of filming and development
images recorded for this year’s report. (conventional photographs fromprevious reports are now recorded
digitally)

Design and editing Digital processes by DTP

Reduction of mid-process materials
such as artwork

Plate-making

Plate-making by CTP

Elimination of films for plate-making

Printing

Sheet-fed press waterless printing

Reduction of IPA use, elimination ofwaste fluids

Paper

Cover: 100% recycled paper
Body: 70% domestic pulp, including
10% pulp from forest-thinning
operations

Forest resource-saving and proper
forest nurturing

Ink

Recycled vegetable oil made forwaterless printing

Resource-saving, use of recycledmaterials

Bookbinding andfinishing

Fragmentation-resistant hot-melt (EVA- Improved recycling efficiency
base)Forest Management and Formulation of Recycling-oriented
Society
The strategies Toppan employs to promote forest management through material procurement go well beyond
the use of wood from forest-thinning operations. Toppan is fully aware of the importance of taking the initiativein the 3Rs (reducing, reusing, and recycling) to achieve a recycling-oriented society and focuses on thedevelopment of a range of recycling mechanisms.

Cartocan Recycling

FSC COC Certification

To extend the benefits of Cartocan, acontainer made of a high-quality paper
similar to that used for milk cartons,
Toppan established a system for the recycling of empty Cartocans into toilet paperin January 2002. The Cartocan recycling
system salvages the paper from unwashed
Cartocans and re-commercializes therecycled material. ECO-GREEN, an environmentally-friendly toilet paper, is madefrom about 50% used Cartocans.
Toppan purchased 1,717 cases (60 rolls acase) of ECO-GREEN in fiscal 2005, making it the nation’s largest user of the
product. The waste paper generated during Cartocan manufacturing can also be
converted into solid fuel. More specifically, the heat generated during incineration can be used for heating and hot
water with minimal generation of residue(ash) by incineration (about 2.2% of theincinerated product by weight).

In May 2002, Toppan became the firstcompany to acquire the Forest Stewardship Council (FSC) Chain of Custody(COC) certification in the field of commercial printing in Japan. The Company
is convinced that the diffusion of products with the FSC logo will enhance forest operations and environment-related
communication between corporations
and customers. Toppan will regularly propose products with the FSC logo to customers.

Countermeasures against
Illegal Felling
To promote countermeasures against illegal felling, Toppan supports the Action
Guidelines of Japan Paper Association for
the Restriction of Illegal Felling.
The Company also strongly urges
major overseas manufacturers not to use
lumber produced through illegal felling.

Tree Planting Programs
In 1997, Toppan joined with Oji Paper
Co., Ltd. and Nissho Iwai Corp. (nowSojitz Corporation) to establish GPFL*1,
a tree planting venture to produce
hardwood chip in Victoria, Australia.
(Hokkaido Electric Power Co., Inc. joined
the venture in 2000). Toppan also participates in joint research to develop methodologies for monitoring CO2 absorption inforests. The Company plans to obtain
FSC certification by 2008.
Toppan has participated in the PPT’s*2
hardwood planting program in Tasmania,
Australia, since fiscal 2004. The planting
project has eight sponsors, including DaioPaper Corporation, operated in cooperation with Forestry Tasmania. The afforested
area has obtained the Australian Forestry
Standard (AFS) forest certification.
Toppan has been collaborating in study
and research on plantation as a supporting member of the Japan Overseas
Plantation Center for Pulpwood since fiscal 1999.

Environmentally-friendly Products andEnvironment-related Business

Cartocan Recycling System
Separation
for disposal
Used Cartocan
recycling bin

OfficeReproduced
toilet paper for
re-commercialization
Paper
manufacturer

ECO-GREEN Purchasing
2,000(Case)
1,717
1,473

1,500

1,000

1,486

985

500

0

2002

2003

2004

2005
(Fiscal year)

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

Tree planting by GPFL (upper) and PPT (lower)*1 GPFL: Green Triangle Plantation Forest Companyof Australia Pty. Ltd.
*2 PPT: Plantation Platform of Tasmania Pty. Ltd.

TOPPAN CSR REPORT 2006

75

Environmental Management Data

Environmental INPUT/OUTPUT Data by Business Field■Combined Results by BusinessTotal energy consumption (1,000 GJ)

7,158

Information &Networks
6,862Electricity consumption (1,000 GJ)

6,253

4,529

4,251

647

Fuel consumption (1,000 GJ)

906

2,334

1,438

170

4,848

Water consumption (1,000 m3)

10,700

2,173

2,186

374

15,432
1,560

Electronics
Energy

INPUT

Water

20,527
15,679

307

755

498

—

1,758

919

750

374

3,800

Groundwater (1,000 m3)

8,634

499

939

—

10,072

—

3

—

14

17

1,554

—

34

—

1,587

340,468

321,677

281,197

34,131

977,472

2

1,875

602

—

2,479

NOx emission (kg)25,066

83,185

105,117

18,306

231,674

SOx emission (kg)16,477677

36,51249

53,715

157

8,239

121,706—

130,102

Total effluent discharge (1,000 m3)

9,036

1,618

1,600

315

12,569Public water system (1,000 m3)

7,622

186

1,003

—

8,811

Sewage system (1,000 m3)

1,414

1,432

597

315

3,758

—

2

36

—

38

1,355

517

403

73

2,348

BOD (kg)

69,43484,25930,4996,594

190,786

COD (kg)

159,361

17,65818,942—

195,960

Nitrogen discharge (kg)21,498

9,740

7,876

3,174

42,288

553

606

993

143

2,296

Total generation (tons)

46,971

227,347

117,653

4,271

396,242

Reused and recycled (tons)

36,172

223,528

111,8883,238

374,825

Final landfill waste disposal (tons)

5,351

1,524

3,233

133

10,240CO2 emission (tons)
Emission of ozone-depleting substances (ODP kg)

Emission of dioxins (mg-TEQ)

OUTPUT

Underground penetration (1,000 m3)
On-site evaporation (1,000 m3)

Phosphorous discharge (kg)
Waste

Total

Industrial water (1,000 m3)

Use of water circulated on premises (1,000 m3)

Water and soil
environments

Non-production
Sites
816

Municipal water (1,000 m3)
Use of rainwater (1,000 m3)
Atmosphericpollutants

LivingEnvironment
5,690Green Procurement/Green Purchasing■Toppan’s Green Procurement Standards
Paper
Level 1

Level 2

1. Recycled paper usage*1

100%

70%+

2. Degree of whiteness*2

Below 70% (down to +4%)

Below 80% (down to +4%)

3. Coating volume

Below 12 g/m2 (Maximum of
8 g/m2 per single surface)

Below 30 g/m2 (Maximum of
17 g/m2 per single surface)

Performance
Fiscal 2003

Fiscal 2004

Fiscal 2005

22.7%

24.7%

21.3%

*1 Recycled paper components, including paper from non-lumber pulp sources and paper produced with wood harvested from forest-thinning operations*2 Excludes colored wood-free papers and specialized papers

Offset Ink*
Level 1

Level 2

1. Avoiding materials harmful
to the human body

Conforms to NL restrictions of the Association of Japan Printing Ink
Manufacturers

2. Avoiding the use of chloridebased resins

Non-usage of chloride-based resins

3. Considerations on PRTR-law
designated chemical substances

Non-usage of PRTR-law designatedsubstances

Identification of PRTR-law designatedsubstances (prepared with MSDS)

4. Restricting VOC emissions

Petroleum solvent ratios below 15%(excluding ink for web press)

Uses aroma-free ink, soybean-oil ink,
recycled vegetable-oil ink

Performance
Fiscal 2003

Fiscal 2004

Fiscal 2005

96.6%

97.6%

97.3%

*Not applicable to gold, silver, and pearl ink

In-house Green Purchasing Standards and Level of Fulfillment
Product

76

Purchasing Standard

Performance
Fiscal 2004

Fiscal 2005

OA paperRecycled component to exceed 70%, whiteness not to exceed 80%

98.3%

98.9%

99.7%

Copy machines/printers

Configured to automatically revert to low-power mode or off mode when not
used for a specific period of time

90.8%

98.5%

93.7%

PCs

Configured to automatically revert to low-power mode or off mode when not
used for a specific period of time, and to maintain low energy consumption
when in low-power mode

100.0%

100.0%

100.0%

Toilet paper

100% recycled paper, whiteness below 80%

100.0%

100.0%

100.0%

Stationery/office goods

Products endorsed with environmentally-friendly qualifications such as the Eco
Mark or Green Mark, and products listed in the eco-friendly product cataloguesof manufacturers

92.6%

94.6%

96.8%

TOPPAN CSR REPORT 2006

Fiscal 2003

Environmental Management Data

Organizational Structure■Toppan Group Environmental Meeting■Toppan Group Eco-products Meeting

Toyo Ink Mfg. Co., Ltd.

Toyo Ink Mfg. Co., Ltd.

Tosho Printing Co., Ltd.

Tosho Printing Co., Ltd.

Tokyo Shoseki Printing Co., Ltd.

Tokyo Shoseki Printing Co., Ltd.

Toppan Forms Co., Ltd.

Toppan Forms Co., Ltd.

TMP Co., Ltd.

Toppan Cosmo, Inc.

Toppan Label Co., Ltd.

Toppan Label Co., Ltd.

Toppan Logistics Co., Ltd.

TMP Co., Ltd.

Tamapoly Co., Ltd.

Total Media Development Institute Co., Ltd.

NEC Toppan Circuit Solutions, Inc.

Toppan Logistics Co., Ltd.

Toppan Printing Co., Ltd.

Toppan Multisoft Ltd.

10 companies in total

Tamapoly Co., Ltd.
froebel-kan co., ltd.
Toppan Printing Co., Ltd.
13 companies in total■List of Environmentally-friendly Products
Business
FieldsSecurities
and Cards

Commercial
Printing

Electronics
Optronics

Packaging

Environmental Points

Suitability for disposal
Use of recycled materials
Resource-saving (reduced
use of materials)
Recycleco Gift Card
Use of recycled materials
Card for ETC
Suitability for disposal
Rewritable Paper
Long product life
Toppan Green Paper 100
Use of recycled materials
Eco Pack (life-size POP display) Resource-saving (reduced
use of materials)
Paper Desk Calendar
Use of recycled materials
Ecology Calendar
Use of recycled materials
Eco POP
Use of recycled materials,
suitability for disposal,energy saving
Cerap
Suitability for disposal
Eco Pack Stand
Resource-saving
Eco Pack Multipanel
Reusability
Eco Floor Sticker
Suitability for disposal
Eco Pack End Panel
Resource-saving
Eco Pack Stand, Round-type
Resource-saving
EPOP
Use of safe materials
Recycled vegetable-Oil Ink
Use of recycled materials
Polyurethane Reactive Hot-Melt Easy separation and easy
disassembly
Non-Vinyl Chloride Lenticular Lens Suitability for disposal
Low-halogen Printed-wiring
Suitability for disposal
board
Resource-saving, use of safe
Lenticular Screenmaterials
Anti-reflection film
Resource-saving
GL Family
Suitability for disposal
Standing pouch for refill
Resource-saving (reduced
use of materials)
Bottled Pouch
Resource-saving (reduced
use of materials)
Thin-Wall Bottle
Resource-saving (reduced
use of materials)
Plastic Container Made from
Use of recycled materials
Recycled Materials
Resource-saving (reduced
Ecogloss (environmentallyuse of exhaustible materials),friendly gloss finishing)use of recycled materials
Recording Media Packaging
Resource-saving (reduced
use of exhaustible materials)
TT Paper Can
Easy separation anddisassembly
NeovertUse of recycled materials
Ecotainer
Resource-saving (reduced
use of exhaustible resources)
TL-PAK
Resource-saving (reduced
use of exhaustible resources)
EP-PAK (EP-GL)
Resource-saving (reduced
energy usage in logistics)
EP-PAK (Al)Resource-saving (reduced
energy usage in logistics)
Stand-up Laminated Tube
Resource-saving (reduced
use of materials)

Business
FieldsToppan’s Environmentallyfriendly Products
Recyclen Cap

Environmental Points

Easy separation anddisassembly
Resource-saving (reduced
AP Cartonsuse of energy in logistics)
Resource-saving (reduced
Micro-Fluteuse of energy in logistics)
Recyclability
TP-Tray
Recyclability
Corrugated Absorber
Resource-saving (reduced
AD-Caseuse of materials)
Recyclability
CartocanPaper Cup Made from Recycled Use of recycled materials
Paper
Cup made from Tree-Free paper Resource-saving (use of
byproducts)
Biodegradability
Biodegradable Package
Resource-saving (reduced
Cylindrical Paper Cartridges
use of energy in logistics)
Suitability for disposal
Coated Barrier Film
Resource-saving
GL-C Bottle
Resource-saving
GX film
Resource-saving
Jar Plus
Easy separation andTray Alldisassembly
Resource-saving
GL Film Lined Paper Cup
Resource-saving
Double-Wall Barrier Cup
Use of safe materials
Oil-Proof Paper
Recyclability
Functional Coated Paper
Resource-saving
In-Mold Barrier Cup
Packaging
Easy separation andTamper Evident Recyclen Cap
disassembly
Easy separation andEasy peel-off thermo-cap fordisassembly
PET bottles
Resource-saving
Ecoband
Reduced release of chemical
Water-based Cold Seal
substances
Biodegradability
Biodegradable Plant Pot
Resource-saving
Barrier Cup (NSP Process)
Recyclability
Plastic Clip
Resource-saving (reduced energy
Notchless Easy-cut Container
expended in manufacturing)(AL type)
Recyclability
Recycled PET Clear Case
Suitability for disposal
ALUGLAS
Easy separation andStripping and heat-sensitive
disassemblylabel for glass bottles
Resource-saving
Food container made fromheat-resistant paper
Resource-saving
Paper carton with temper
evident closure
One-piece occlusion-preventive Resource-saving
plug for TL-PAKs
Resource-saving
Sealed paper tray
Resource-saving
Flexible packaging materialusing paper
Suitability for disposal
Clear UV-Blocking Film
Resource-saving
Injection molded articles ofbiomass-plastics
Easy separation and
EL-Casedisassembly

TOPPAN CSR REPORT 2006

Environmental Management Data

Publications
Printing

Toppan’s Environmentallyfriendly Products
Ecothrough card
Paper IC Card
Bulky Waste Processing Sticker

77

Environmental Management Data■ISO 14001 Certification(42 systems, 59 operational sites
as of June 30, 2006)

Division/Operational Site
Shiga Plants (Electronics Division/Semiconductor
Solutions Division/Optronics Division)
Electronics Division (Kumamoto Plant)
Toppan Cosmo, Inc. (Kashiwa Plant/Satte Plant,
Toppan Decor Products Inc.)
Electronics Division (Niigata Plant) and NEC
Toppan Circuit Solutions, Inc. (Niigata Plant)
Sakado Site
Securities Printing Division (Ranzan Plant)
Packaging Division (Akihabara Office/Ebie Office)*
Itabashi Area (Itabashi Site/Toppan Seihon Co., Ltd.)
Fukusaki Area (Fukusaki Site/Wakayama Plant,
Toppan Plastic Co., Ltd.)
Toppan Graphic Co., Ltd. (Kawaguchi Plant/Oji
Plant)Takino Plants (Commercial Printing Division/
Securities Printing Division/ Packaging Division)
Gunma Site (Gunma Plant, Tatebayashi Plant)
Asaka Plants (Information & Publications Division/
Securities Printing Division/Semiconductor
Solutions Division)
Toppan Electronics Fuji Co., Ltd.
West Chugoku & Shikoku Subdivision (Hiroshima
Office, Kannabe Toppan Co., Ltd.)
Kansai Area (Kansai Commercial Printing
Subdivision/East Chugoku & Shikoku Subdivision/
Kansai Securities Printing Subdivision)*
Tohoku Division
Technical Research InstituteHokkaido Division (Sapporo Plant/Chitose Plant)
Electronics Division (Mie Plant)
Optronics Division (Satte Plant)■Major Environment-related Laws Involving the Printing Industry
in Japan

Registrar

Registration
Date

JQA

Jul. 1998

JQA
JQA

Nov. 1998
Mar. 2000

The Basic Law for Establishing the Recycling-oriented Society

JQA

Apr. 2000

Law Concerning Increasing the Desire for Environmental Conservation andPromoting Environmental Education

JQA
JQA
JQA
JQA
JQA

Oct. 2000
Nov. 2000
Mar. 2001
Feb. 2002
Jul. 2002

Law Concerning the Promotion of Environmentally Conscious Activities ofSpecified Businesses through the Promotion of the Provision ofEnvironmental Information

JQA

Aug. 2002

Sewerage Law

JQA

Oct. 2002

Law Concerning Special Measures for Conservation of the Environment of
the Seto Island Sea

JQA
JQA

Jul. 2003
Dec. 2003

Soil Contamination Countermeasures Law

JQA
JQA

Jun. 2004
Oct. 2004

JQA

Nov. 2004

JQA
JQA
JSA
JQA
JQA

Mar. 2005
May 2005
Jun. 2005
Jan. 2006
Mar. 2006

Basic Stance and Rules
The Basic Environment Law
Law for Promotion of Nature Restoration
Legislation to Implement a Basic Law on Energy Policy

Eco-protection Field
Air Pollution Control Law
Water Pollution Control Law
Septic Tank Law

Offensive Odor Control Law
Noise Regulation Law
Vibration Regulation Law
Industrial Water Law
Law Concerning the Rational Use of Energy
Law Concerning the Promotion of the Development and Introduction of
Alternate Energy
Law Concerning the Promotion of the Use of New Energy
Waste Disposal and Public Cleaning Law
Law for the Control of Export, Import, and Others of Specified Hazardous
Wastes and Other Wastes
Construction Materials Recycling Act
Law Concerning Special Measures against PCB waste

Group Company/Operational Site
Total Media Development Institute Co., Ltd.
(Entire company)
Toppan Forms Co., Ltd. (Hino Plant)
Toppan Label Co., Ltd. (Fukushima Plant)
Toppan Logistics Co., Ltd. (Kawaguchi Site/
Nishigaoka Site)
Toppan Prosprint Co., Ltd. (Mito Plant)
Toppan Forms Co., Ltd. (Fussa Plant)
Toppan Forms Co., Ltd. (R&D Center)
Toppan Containers Co., Ltd. (Saitama Plant/Miyagi
Plant/Sano Plant)
Toppan Forms Tokai Co., Ltd. (Nagoya Plant)
Toppan Forms Kansai Co., Ltd. (Osaka Plant)
Toppan Forms Nishinihon Co., Ltd. (Kyushu Plant)
Toppan Prosprint Co., Ltd. (Koto Production Center)
Toppan Forms Kansai Co., Ltd. (Settsu Plant)

Registrar

Registration
Date

Law Concerning Reporting, etc. of Releases to the Environment of SpecificChemicals and Promoting Improvements in their Management

JSA

Mar. 2001

Law Concerning Special Measures against Dioxins

JQA
JQA
JQA

Jun. 2001
Nov. 2001
Oct. 2002

JSA
JQA
JQA
JQA

Jan. 2004
Feb. 2004
Mar. 2004
Apr. 2004

JQA
JQA
JQA
JQA
JQA

Aug. 2004
Dec. 2004
Jan. 2005
Mar. 2005
Mar. 2006

Law Concerning Special Measures for Total Emission Reduction of Nitrogen
Oxides from Automobiles in Specified Areas
Law Concerning the Protection of the Ozone Layer through the Control ofSpecified Substances and Other Measures
Law Concerning the Promotion of the Measures to Cope with Global
Warming
Factory Location Law
Landscape Law
City Planning Law
Urban Green Law
Law Concerning the Improvement of Pollution Prevention Systems in
Specific Factories
Eco-creativity Field
Law Concerning the Promotion of Procurement of Eco-friendly Goods andServices by the State and Other Entities
Law for the Promotion of Effective Utilization of Recyclable Resources

Overseas Subsidiary

Registration
Registrar
Date

Law for the Promotion of Sorted Collection and Recycling of Containers
and Packaging

Siam Toppan Packaging Co., Ltd.
Toppan Printing Co., (H.K.) Ltd.
Toppan Printing Co. (America), Inc.
Toppan Chunghwa Electronics Co., Ltd.
Toppan Printing Co., (Shenzhen) Ltd.
Toppan CFI (Taiwan) Co., Ltd.
P. T. Toppan Printing Indonesia
Toppan Printing Co., (Shanghai) Ltd.

MASCI
DNV
DNV
SGS
SSCC
SGS
LRQA
JQA

Apr. 2002
May 2002
Dec. 2002
Oct. 2003
Dec. 2003
Nov. 2004
Nov. 2004
Apr. 2006

Law for the Conservation of Endangered Species of Wild Fauna and Flora*“Ebie Site” consists of the Ebie Office, the Kansai Commercial Printing
Subdivision, and the Kansai Securities Printing Subdivision.

78

TOPPAN CSR REPORT 2006

Environmental Management Data

Energy Type Ratio and Consumption■Energy Used by Type for Fiscal 2005
(in terms of caloric value)■Fiscal 2005 Results of Toppan’s Environmental Education

A fuel oil 1.2%

New employee training
New manager training

Training or Education

Diesel oil and gasoline
0.0%

LPG 1.0%
Kerosene 2.3%

e-learning■Electricity Consumption
1,200
1,042

1,091

Toppan Business School

Purchased
electricity
72.8%

City gas
22.7%

Optional training

Challenge school
Video library
Internal environmental
auditor training

Contents

Number of Trainees

General environmental education (introductory level)
414
General environmental education (intermediate level)
159
Environmental issues surrounding corporations and
8,805
Toppan Group activities(Sum total: 20,123)
Additional education responding to the ISO 14001:
412
2004
Introduction to ISO 14001
25
Introduction to environment-related laws
37
Introduction to LCA
14
Discovery of energy-saving projects
10
Seminar to increase the skills of ISO 14001 internal
32
auditors
Four courses related to the environment
10
Two titles related to the environment—
Internal environmental auditor training program
165

(GWh)
1,182

1,134

Promotion of Waste Reduction and Recycling■Zero-emission Sites

900(Certified November 2005)

Operational Site
1
2

600

3
4
5

300

0

2002

2003

2004

2005
(Fiscal year)

Note: The figure for fiscal 2004 was modified to adjust
to the revision of the total.

■City Gas Consumption(1,000 m3)

100,000
85,26780,00075,22488,33378,77560,00040,0001920
21

20,000

0

2002

2003

2004

2005
(Fiscal year)

22
23

Recycling
Rate (%)
99.42
100.0015,327.4
218.7
18,041.6

15,062.4
218.7
17,843.9

98.27
100.0098.90

48,177.3
31,583.3
3,727.4
3,801.2
308.5
24,237.1
84.8
3,616.7
4,298.8
3,916.4
8,748.8
230.3
10,432.2

48,177.1
31,459.4
3,723.6
3,753.4
306.3
24,181.1
84.8
3,577.0
4,290.8
3,893.9
8,679.3
229.8
10,253.8

100.00
99.61
99.90
98.74
99.29
99.77
100.00
98.90
99.81
99.43
99.21
99.78
98.29

4,142.1
3,039.6
5,875.7

4,089.3
2,981.8
5,804.5

98.73
98.10
98.79

5,387.5
2,506.3

5,387.0
2,498.4

99.99
99.69

Environmental Management Data

6
7
8
9
10
11
12
13
14
15
16
17
18

Information & Publications Division (Asaka Site)
Toppan Printing Communications Co., Ltd.
(Sakado Site)
Electronics Division (Kumamoto Plant)
Optronics Division (Shiga Plant)
Information & Publications Division(Itabashi Site)
Toppan Graphic Co., Ltd. (Kawaguchi Site)
Toppan Seihon Co., Ltd.
Toppan Graphic Co., Ltd. (Oji Plant)
Toppan Containers Co., Ltd. (Sano Plant)
Toppan Containers Co., Ltd. (Kumagaya Site)
Packaging Division (Sagamihara Plant)
Toppan Plastic Co., Ltd. (Sagamihara Plant)
Toppan Decor Products Inc. (Kashiwa Plant)
Toppan Decor Products Inc. (Satte Plant)
Osaka Toppan Display Co., Ltd. (Oyodo Plant)
Packaging Division (Itami Plant)
Toppan Harima Products Co., Ltd.
Commercial Printing Division, Kansai
Commercial Printing Subdivision Plant(Takino Site)
Chubu Division (Nagoya Plant)
Mikkabi Toppan Printing Co., Ltd.
Nishinihon Division (Fukuoka Plant
Manufacturing Department 2)
Kumamoto Toppan Co., Ltd.
Hokkaido Division (Sapporo Plant)

Total Waste
Total Recycled
Generated (tons) Waste (tons)
12,375.2
12,303.5
26,757.6
26,757.6

Note: Toppan statistics now use a unit of 1,000 m3(standard conditions) to express city gas consumption. Earlier figures have been converted
accordingly.

■Rainwater Use■Kerosene Consumption(kl)

14,00012,59913,27512,00011,33410,000

(m3)

(%)

100

10,951
80

9,391
8,716

9,968

10,000■Office Paper Waste Recycling Rate

■Honjo GC Building
12,000■Toppan Koishikawa Building

8,000

72.2
67.0

8,062

56.0

60

8,000

62.9

6,000
6,000

40
4,000

4,000

3,182

3,454
20

2,000

2,000
0

3,223

3,704

2002

2003

2004

2005
(Fiscal year)

0

0
2002

2003

2004

2005
(Fiscal year)

2002

2003

2004

2005
(Fiscal year)

TOPPAN CSR REPORT 2006

79

Environmental Management Data

Preventing Pollution/Management and Reduction of Chemical Substances■Fiscal 2005 Toppan PRTR Survey and Results
PRTR No.

(Unit: kg/year)

Releases

Chemical1. Atmosphere

2. Water

3. SoilTransfer as
Waste

1

Water-soluble zinc compounds

6

0

6

0

16

2-amino ethanol

0

0

0

0

3,267
0

24

Linear alkylbenzenesulfonate and chlorides

0

0

0

0

12,37640Ethyl benzene

9,538

9,538

0

0

3,387

44

Ethylene glycol monoethyl ether

95

95

0

0

865

45

Ethylene glycol monomethyl ether

123

123

0

0

1,057

46

Ethylene diamine

63

Xylene

64
68

0

0

0

0

889

14,252

14,252

0

0

4,973

Silver and water-soluble compounds

0

0

0

0

0

Chrome and trivalent chromium compounds

27

0

27

0

12,022

69

Hexavalent chromium

0

0

0

0

988

108

Inorganic cyanogens compounds

0

0

0

0

176

132

1,1-dichloro-1-fluoroethane (HCFC-141b)

5,846

5,846

0

0

573

145

Dichloromethane

1,575

1,575

0

0

4,226

172

N,N-dimethylformamide

179

Dioxins

207

Water-soluble copper compounds

218

1,3,5-tris (2,3-epoxy propyl)-1,3,5-triazine-2,4,6(1H,3H,5H)-trione

224

1,3,5-tri-methyl benzene

227

Toluene

230
231

0

0

0

0

42,144(125 mg-TEQ)(125 mg-TEQ)——(704 mg-TEQ)

414

0

414

0

141,130

0

0

0

0

0

5,772

5,772

0

0

9,891

710,856

710,85600503,553

Lead and its compounds

1

0

1

0

107

Nickel

0

0

0

0

260

232

Nickel compounds

65

0

65

0

276,454

254

Hydroquinone

0

0

0

0

1,824

304

Boron and its compounds

37

0

37

0

3

309

Poly (oxyethylene) nonylphenyl ether

460

460

0

0

1,796

310

Formaldehyde

107

107

0

0

304

311

Manganese and its compounds

301

0

301

0

8,515

Notes: Calculated over the period from April 1, 2005 to March 31, 2006.
The above 28 substances are materials in scope for reports to the government.
Operational sites in scope: Sites that handle in excess of 1.0 ton of Class I designated chemical substances over the year. (Or specified Class I designated chemical
substances in excess of 0.5 tons per year.)Excludes figures for overseas subsidiaries and certain independent subsidiaries.
Materials transported out from operational sites are listed under “Transfer as Waste” even if they are sold as resources.

Atmospheric Emissions■Ratio of Greenhouse Gas Emissions by Type(in tons of CO2 equivalent)(Unit: ratio: % total: t-CO2)

Fiscal

CO2

CH4

N2O

Total

2002

99.90

—

0.10

661,857

2003

99.91

—

0.09

675,533

2004

99.91

—

0.09

687,427

2005

99.92

—

0.08

710,446■Ratio of Greenhouse Gas Emissions by Source(in tons of CO2 equivalent)(Unit: ratio: % total: t-CO2)

FiscalElectricity Use

Fuel Use

Waste Incineration

Total

2002

59

35

5

661,857

2003

61

34

5

675,533

2004

62

33

4

687,427

2005

63

33

4

710,446

Notes: Excludes figures for overseas subsidiaries and certain independent subsidiaries.
Previous data were modified according to a review of calculation methods.

80

TOPPAN CSR REPORT 2006

Conduct Guidelines

Conduct Guidelines

Chapter 1: Basic Principles

Chapter 2: Specific Conduct Guidelines

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

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

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

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

Established June 2000
Revised April 2006

TOPPAN CSR REPORT 2006

81

Independent Review and Third-party Opinion

Independent Review

The conclusion of our independent review is as shown in
the Independent Review Report. The following summarizes
the improvements from the previous year and opportunities
for further improvement that we identified in the course of
our review.
Some of the calculation criteria were revised to increase
the accuracy of environmental performance data. In all of
the calculations for CO2 emissions from the use of the citygas, for example, the volume of gas actually used was converted to the volume under the standard conditions andthen multiplied by an emission factor. There were also certain improvements in data control at the head office, suchas the establishment of a procedure to internally verify consistency between PRTR data and data on emissions such asdioxins. These were commendable improvements.
However, there were also incorrectly aggregated data,
including those for water pollutants. Data analyses such asa trend analysis and comparisons with ratios (e.g. emissions
per unit of sales) are only limitedly carried out when
Company-wide data are aggregated. Review procedures
conducted by personnel other than those directly involved
in data aggregation are also weak. Some of the inaccuracies in the data could have been corrected through internal
review procedures. Henceforth Toppan should strengthendata control at the head office level to ensure that it provides more reliable, trustworthy data for external reports
and internal management.
The disclosed indicators for social performance were
improved. Even so, the prospects for setting quantitative targets based on these indicators need to be further examined.

Kazuhiko Saito
Manager, KPMG AZSA
Sustainability Co., Ltd.
(KPMG AZSA & Co. group)

Independent Review Process
Planning

IDiscussion and planning

Hearing to review improvements from the previous year; examination of methods andscope of aggregation; determination of the schedule and the sites to be reviewed

Implementation

IInterview with responsible
personnel

Interview with those responsible for CSR activities; confirmation of Toppan’s basic thinking
on corporate social responsibility (CSR) and reporting policies in relation to the CSR Report
2006

IHead office review ofToppan Printing Co., Ltd.
(parent) and Group
companies in andoutside Japan

Hearing on data-collection procedures, including internal controls; implementation ofanalytical procedures and questioning and vouching procedures; examination of thecalculation accuracy and propriety of procedures; examination of consistency among data(including descriptions)

IOn-site review

Mie Plant, Electronics Division, Toppan Printing Co., Ltd.

Final review of the script

IReview at head office

Confirmation of data on the entire Group and final confirmation of the CSR report content

Internal review at
KPMG AZSA
Sustainability Co., Ltd.

IInternal review meetings

Before submission of the Independent Review Report, the internal review of the procedureand results by an internal independent reviewer, and the drafting of conclusions on the CSR
Report 2006

ISubmission of theSubmission of the
Independent Review Report
Independent Review Report

Reporting

82

TOPPAN CSR REPORT 2006

IBriefing on the findings ofthe independent review

Submission of the Independent Review Report to Toppan
Reports on the findings of the review to Toppan

Third-party Opinion

The CSR Report 2006, the third issued,

zations, particularly with respect to its

principles of the UN Global Compact,

has advanced considerably the earlier

employees and systems for recruitment

product liability, and communication with

reports in terms of both content and theand retirement. Activities to promotelocal communities. I hope that the CSR

information disclosed.

work-life balance and safeguard mental

Report can be used to promote commu-

I would like to start off my statement

health were admittedly late in coming,

nication and to elaborate the PDCA in

by commending Toppan for joining

but Toppan’s initiatives in these areas are

every field, including the setting of numer-

the UN Global Compact. I hope thegaining momentum as time passes. The

ical targets, to engender stakeholder sup-Company will develop specific plans tobasic groundwork for promoting work-

port and precise self-evaluations.

implement the 10 GC principles in thelife balance is to balance the treatment offour areas of human rights, labor stan-men and women and to shorten working

dards, environment, and anti-corruption

hours. I hope Toppan develops strategies

in and outside Japan. The CSR concept isfor both of these agendas from a long-shifting to a stakeholder-oriented con-term viewpoint while enhancing in childcept as it evolves. I understand that therearing. The actual condition and policies

initial dialogues held with stakeholders

of working hours and specific develop-

have been focused on stakeholder

ments in labor/management relations

engagement.

need to be examined as disclosure issues.

The “Special Report” goes into exten-

To cope with the fluctuations in employ-sive detail on Cartocan, a Toppan-devel-

ment and labor issues, sound labor-man-

oped product designed to nurture

agement relations and comprehensive

domestic forests by promoting the use of

surveys on employee satisfaction will

wood from forest-thinning operations. I

enable Toppan to develop effective per-commend Toppan’s plan for forest certi-

sonnel policies founded on respect for

fication and hope the Company will con-employees.

tinue to promote the 3Rs and further
improve its recycling rates.

Environmental Report

An overview of Toppan’s CSR activities

I understand that Toppan’s latest efforts

is presented in a table summarizing tar-

towards resource recycling have culmi-

Yoshiki Midorikawa

gets and achievements. A few companies

nated in high-quality results in a finishedhave started their first attempts to apply

form. The results achieved have far sur-

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

the PDCA cycle not only to their environ-passed the targets, leading to further

mental reports, but to their CSR activities

reductions in final landfill waste disposal

overall. This is a forward-looking disclo-and higher recycling rates. Good results

sure procedure that I expect to be refined

were also achieved for the control andin the future.

reduction of chemical substances. Targets

In the realm of corporate governance,

were achieved for the reduction of thereaders can concretely evaluate the per-

PRTR-law designated substances and two

formance information Toppan discloses

other substances. One issue for futuresuch as the total remuneration to direc-

discussion is the lackluster progress of

tors and others, the dividend policy, andToppan’s activities to mitigate global

the management indicators. In the realm

warming. I hope the Company will takeof supplier management, Toppan isdrastic measures to make itself moreclearly unifying a set of supplier selection

accountable for specific targets. I would

criteria that go beyond green procure-also like to see Toppan improve its per-ment. I can see Toppan’s positive stanceformance as an “eco-factory” by devel-in these areas.

oping more environmentally-friendly
products and considering the environ-

Social Reportment more comprehensively during man-Among the many issues to consider,ufacturing.

“Respecting and Leveraging Human

In conclusion, I expect that the Com-

Assets” is an agenda with particularpany will continue to evolve as a sustain-

problems and challenges in Japan.

able corporate citizen by setting its own

Toppan discloses far more data in thisCSR indicators and promoting compre-

area than other corporations and organi-

hensive CSR activities combined with theProfileMr. Midorikawa graduated from the departmentof law at Chuo University and the department ofliterature at Waseda University. Most of his career
has been devoted to labor administration in the
Kanagawa prefectural government, which hejoined in 1961. After retiring from the prefectural
service in 1995 up to 1999, Mr. Midorikawa
served as Executive Officer of the Kanagawa Prefecture Small and Medium Business Management
Association. Mr. Midorikawa’s NGO/NPO credentials include participation in The Valdez Society, abody engaged in research and proposal-making
in corporate responsibility to the environment
through collaboration between general citizens
and companies (Mr. Midorikawa joined in 1991),
and the founding of the Green Consumer
Research Group (in the same year). He has
authored several books, including CSR Practice
Methods with Visible Effects (co-authored) andCSR Management (co-authored).

TOPPAN CSR REPORT 2006

83

Independent Review and Third-party Opinion

Company Reaction to Independent Review andThird-party Opinion
KPMG AZSA Sustainability Co., Ltd. has

The Social Report in 2006 provided an

For the Environmental Report, KPMG

independently reviewed Toppan’s Envi-

overview listing targets and achievements

AZSA pointed out the need to strengthenronmental Reports published from 2001

for the disclosure of information. The for-data control procedures at the head

onward, and this year it reviewed the CSR

mat used in 2005 was repeated, but with

office level. To further improve its credi-

Report 2006. Mr. Yoshiki Midorikawa,the addition of a self-evaluation. KPMG

bility, the Company will take advantage

director of the Green Consumer Research

AZSA suggested the possibility of settingof the momentum gathered in this direc-

Group and co-chair of The Valdez Society,quantitative targets with some of thetion over the past year in its ongoinghas provided a third-party opinion on thesocial performance indicators that Toppan

review of the aggregation system.

2005 and 2006 reports. Toppan would

discloses, and Mr. Midorikawa pointed

Mr. Midorikawa also suggested thatlike to thank KPMG AZSA and Mr.

out several problems remaining in the

Toppan develop drastic new measures toMidorikawa for their concrete and useful

methods used to quantify the targets.

mitigate global warming and make itself

opinions.

Toppan would like to start judging

more accountable for specific targets.

whether it will be possible to quantify the

The Company puts top priority on its

targets it sets.

measures to mitigate global warming inIn the three years since Toppan started
its work in the area of CSR, it has held
stakeholder dialogues to retrace theToppan recognizes the importance ofenvironmental management. Henceforthactivities the Company has carried out inshorter working hours and equitable treat-

it will steadily implement energy-saving

the past, to verify that the Company has

ment of men and women, two underpin-

measures based on careful planning andfulfilled its responsibilities to every groupnings of work-life balance. Henceforth thedisclose information on concrete resultsof stakeholders, and to study how it canCompany must carry out the PDCA cycle

and issues to be addressed.

best communicate with stakeholders in

for CSR through stakeholder engagement

Toppan sincerely accepts the proposals

the future. This dialogue has reminded

in order to manage its CSR activities.

and opinions made on its behalf and will

Toppan of the importance of the infor-

When reviewing responsibilities for eachstrive to present further information andmation disclosure using this CSR Report as

stakeholder, Toppan has decided to rely

continually improve and implement its

a basis for communication with stake-on a stakeholder satisfaction survey of the

future CSR activities.

holders. Henceforth the Company expects

type recommended by Mr. Midorikawa

this to become more important still.

as a guide for problem solving.

Editor’s Postscript
The editors asked Mr. Yoshiki Midorikawa, thesource of the foregoing third-party opinions,
to review the CSR Report 2006, Toppan’s third
report on corporate social responsibility. This is
the second consecutive year Mr. Midorikawa
has contributed editorially. We have reviewed
the content and structure of the 2006 reportbased on his suggestions and recommendations for the CSR Report 2005.
The last two reports summarized various
performance data in the final “Data andAdditional Information” section. This report
incorporates all of the data except detailed

84

TOPPAN CSR REPORT 2006environmental data into the text. This has
made it possible to present the economic
report independently as a business outline, toenhance the performance data on personnel,
and to improve the referencing of the reportby presenting the data in relevant sections in aconventional page-by-page format.
Toppan wants readers to understand theCompany’s operations as thoroughly as possible. The report features a paper-based beverage container, Cartocan, as a familiar productmade with domestic wood from forest-thinning operations. All of the companies inter-viewed were eager to commence activities tomitigate global warming. We realize that environmental conservation is possible only when
we cooperate with various stakeholders concerned.
It would be impossible for Toppan to give afull account of its activities in the limited spaceprovided here. Even so, we hope that thisreport will help you understand our CSR activities. We look forward to hearing your opinions and comments.

Global Reporting Initiative (GRI) Index

Vision and Strategy
1.1
1.2
ProfileOrganizational Profile
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
Report Scope
2.10
2.11
2.12
2.13
2.14
2.15
2.16
Report Profile
2.17
2.18
2.19
2.20
2.21
2.22

P.24–27
P.2–3

P.1
P.20
P.20–21
P.21
P.20–21
P.20–21
P.20–21, 24–27
P.20–23
P.26
P.1
P.1, 21—
P.1, 21
P.21
P.21
P.19, 39, 65
Used as reference
P.61
P.68, 70
P.1
P.1
P.1, 23, 38, 43, 67

Governance Structure and Management
Systems
Structure and Administration
3.1
P.30
3.2
P.30
3.3
P.30
3.4
P.30
3.5
P.30
3.6
P.27, 30, 63
3.7
P.24, 56
3.8
P.30
Stakeholder Engagement
3.9
P.26
3.10
P.12–15, 26, 30, 32, 38, 40, 49, 54, 67
3.11
P.12–15, 40, 67
3.12
P.12–15, 40, 67
Overarching Policies and Management
Systems
3.13
P.32–33, 36–37, 64–65
3.14
P.16
3.15
P.16, 52
3.16
P.6–7, 30, 38–39, 71–73
3.17
P.73
3.18
P.21
3.19
P.27–29, 31, 35–37, 58–60, 62
3.20
P.36, 42–43, 62, 78

Economic Performance Indicators
Customers
EC1
EC2
Suppliers
EC3
EC11
EC4
Employees
EC5
Providers of Capital
EC6
EC7
Public Sector
EC8
EC12
EC9
EC10
Indirect Economic Impact
EC13

P.22–23
P.22
—
—
—
—
P.23, 33
P.23, 33—————

Environmental Performance Indicators
Materials
EN1—
EN2
P.39, 74, 76
EnergyEN3
P.57, 68, 76, 79
EN17
—
EN18
—
EN4
—
EN19
—
Water
EN5
P.57, 76
EN20
—
EN21
P.57, 76
EN22
P.76, 79
Biodiversity
EN6
—
EN23
—
EN7
—
EN24
—
EN25
—
EN26
—
EN27
—
EN28
—
EN29
—
Emissions, Effluents and Waste
EN8
P.68, 71, 76, 80
EN30
—
EN9
P.70, 76
EN10
P.57, 70, 76
EN11
P.57, 69, 76
EN31
—
EN12
P.57, 76
EN32
—
EN13
P.19, 64–65, 70
Suppliers
EN33—
Products and Services
EN14
P.72–74, 77
EN15
P.4–7, 75
Compliance
EN16
P.19, 64–65
Transport
EN34
P.71
Overall
EN35
P.61

Note: This table displays the pages on which the corresponding content for the required GRI Guidelines can befound. It does not necessarily certify that the guidelines are being met.
Blue ink denotes optional items.

Social Performance Indicators
Employment
LA1
P.46–47, 49
LA2
P.46–47, 49
LA12
P.49–51
Labor/Management Relations
LA3
—
LA4
P.51
LA13
—
Health and Safety
LA5P.29, 31, 49–50
LA14
—
LA6
P.50
LA15
P.50
LA7
N/A
LA8
—
Training and Education
LA9
P.48–49, 79
LA16
P.46–51
LA17
P.47–49
Diversity and Opportunity
LA10
P.46, 48–49
LA11
P.46
Human Rights: Strategy and Management
HR1
P.25, 31, 51, 81
HR8
P.34–35, 51
HR2
P.38–39
HR3
P.38–39
Non-Discrimination
HR4
P.25, 31, 49, 51, 81
Freedom of Association and Collective
Bargaining
HR5
P.16, 50–51
Child Labor
HR6
P.16, 25, 31, 51, 81
Forced and Compulsory Labor
HR7
P.16, 25, 31, 51, 81
Disciplinary Practices
HR9
P.35
HR10
P.35
Security Practices
HR11—
Indigenous Rights
HR12
—
HR13
N/A
HR14
—
Community
SO1
P.19, 52–54, 64–65, 67
SO4
P.17, 49, 66
Bribery and Corruption
SO2
P.31, 81
Political Contributions
SO3
P.31, 81SO5
P.31, 81
Competition and Pricing
SO6P.31, 35, 81
SO7
P.31, 81
Customer Health and Safety
PR1
P.31, 36–37, 42–43
PR4
P.42–43
PR5
P.64–65
PR6
P.39, 42–43, 74
Products and Services
PR2
—
PR7
—
PR8
—
Advertising
PR9
—
PR10
N/A
Respect for Privacy
PR3
P.31
PR11
—

TOPPAN CSR REPORT 2006

85

TOPPAN 2006.12 K