CSR REPORT 2008
Report on Corporate Social
Responsibility Activities

Questionnaire enclosed at the back: Please let us know your opinions
We welcome feedback from readers. Stakeholder opinions are used to enhance the understandability and relevancy of
our corporate social responsibility (CSR) initiatives and information disclosure for both stakeholders and the people inside
Toppan. We encourage you to take a few minutes to answer the questionnaire enclosed at the back of the report.

IEditorial Policy
Toppan is disclosing information in the hopes of encouraging dialogue on socialand environmental activities with more people, especially people who have aninterest in Toppan’s CSR activities.
IPeriod Covered
This report mainly covers activities in fiscal 2007 (April 2007–March 2008), though
information on prior and later years is also included.
IScope of this Report
In principle, this report covers the social and environmental activities of Toppan
Printing Co., Ltd. (“the Company”) and Group entities that are consolidated foraccounting purposes. Most of the information on personnel applies to personnel
within Toppan Printing Co., Ltd., the parent company. The scope of environmental
performance data and environmental accounting is presented on P.60. Sixty-fivedomestic sites and nine overseas sites are ISO 14001 certified.
ISelecting the Information for this Report
In selecting the information to present in this CSR report, Toppan assesses themateriality of the information for society and the Company itself.
To assess whether information can be considered material for society, Toppan
holds in-house discussions on the following points: independent reviews and thirdparty opinions, questionnaire responses to CSR reports and in-house newslettersfrom inside and outside the Company, other opinions gleaned from dialogues insideand outside the Company, various guidelines (such as the Environmental Reporting
Guidelines [fiscal 2007 version] from the Ministry of the Environment of Japan and
GRI Sustainability Reporting Guidelines 2006 from the Global Reporting Initiative[GRI]), questionnaire items from third-party organizations, and CSR-related information obtained from media and news agencies.
IReliability
KPMG AZSA Sustainability Co., Ltd. carries out annual independent reviews
on Toppan’s reports on its environmental and social performance. As a testament to the reliability of the sustainability information in this report, Toppan is
authorized to attach the following mark. This means that the report meets thestandards for sustainability report assurance and registration established by The
Japanese Association of Assurance Organizations for Sustainability Information(http://www.j-sus.org/).

URL for CSR Report: http://www.toppan.co.jp/english/corporate/csr/index.html
The Global Reporting Initiative (GRI) Content Index and other forms of CSR
information are posted on this site. If erroneous entries or misprints are foundafter the issuance of the CSR reports, the related information will be shown on
this site.
Terms Used in this Report•CSR: Corporate social responsibility•Stakeholder: A person (or interested party) who has a direct or indirect relationship with a corporation, such as a customer, employee, shareholder/investor,or business partner. A community or society as a whole can also be a stakeholder.
•Stakeholder dialogue: Dialogue and exchange of views with stakeholders•Corporate governance: Framework for the governance of corporate activities•Compliance: Adherence to laws, regulations, and corporate ethics•PDCA: A sequence of four procedures—Plan, Do, Check, and Act
Cover Page
Toppan expresses its commitment to communicate with society in the three primary colors of printing: blue for sincerity, red for enthusiasm, and yellow for creativity. Toppan takes a sincere, enthusiastic, and creative approach in communication
to fulfill the expectations of all of its stakeholders, from its customers and employees to its shareholders/investors, business partners, communities, and society
as a whole.

Publication Dates
Previous report: November 2007
Current report: November 2008
Next report: November 2009 (planned)
Contact Information
CSR Promotion Department, Legal Affairs Division, Toppan Printing Co., Ltd.
(Tokyo, Japan)
Email: csr@toppan.co.jp

IEye-friendliness and Readability
In line with Toppan’s in-house guidelines, this report considers eye-friendliness andreadability. It also incorporates universal-design displays for as many people aspossible regardless of individual differences in color perception. Upon entrustment
by Toppan, the Color Universal Design Organization (CUDO), a nonprofit organization, has reviewed and certified this report for its universal design.

Contents

Executive Message

2

Group Business Outline

4

Highlights 2007–2008
Special Report 1: Maintaining Work-Life Balance for
Employees

8Special Report 2: Developing Product Components
for Reduced CO2 Emission

10

Special Report 3: Educational Support to Improve
Literacy

12

CSR Topics

15

CSR Management
Toppan’s Social Responsibility

20

Review of CSR Activities and New Initiatives

24

Corporate Governance

30

Compliance

34

Information Risk Management

36

Conduct Guidelines andInformation Management Policy

38

Social Report
For Customers

40

With Business Partners

44

With Communities

46

With Employees

50With Shareholders and Investors

58

Environmental Report
Overview of Environmental Activities

60

Overview of Results for Fiscal 2007 and
Future Environmental Targets

62

Environmental Management

66

Environmental Conservation Activities

72

Environmentally-friendly Products andEnvironment-related Business76

Considering the Ecosystem

79

Environmental Data

80

Third-party Opinion and Independent Review
Third-party Opinion

85

Independent Review

86

Company Reaction to the Third-party Opinion andIndependent Review

88

TOPPAN CSR REPORT 20081

Contributing to a Fulfilling Lifestyle
The Toppan Group seeks to serve society as a trustworthy, respected corporation that
contributes to the realization of a sustainable world.

Global warming, the phenomenon triggered by carbon(the Corporate Philosophy, the Corporate Creed, and a set

dioxide and other greenhouse gasses, is now a majorof Conduct Guidelines defining the Company’s importantconcern. Never before in the history of human economic

values and standards) and five Business Fields based on theactivity have so many people appreciated the forces that

Corporate Structure.

threaten the sustainability of our societies. This is the time

In my view, the goal of Toppan’s corporate social respon-

to think deeply about social sustainability and to take swift

sibility (CSR) is to realize the Corporate Structure. All of theactions for a sustainable society in the future.

people working in the Group must understand their responsibilities to society and to stakeholders, and endeavor to ful-

To Be a Trustworthy, Respected Corporation

fill those responsibilities in their daily business operations.
These efforts are certain to help Toppan contribute to the

I am always telling people at Toppan to “join hands to build

creation of a sustainable society.

a trustworthy, respected company together.”This goal of building a trustworthy, respected company

Global Conservation Comes First

follows from recognition that Toppan must win the perpetual esteem of the public and maintain its role as an

Among Toppan’s various initiatives towards the realization

essential part of society. When I ask colleagues to workof a sustainable society, those to reduce environmental

together to build such a company, I am urging them toburden are extremely important from a management

promote social and environmental activities, as well as anperspective. The revised operational procedures in energy-

unshakable system for corporate governance as a frame-

hungry clean rooms and other intensive energy-saving

work to ensure full compliance with laws, regulations, andmeasures throughout the Toppan Group are based on a host

corporate ethics in balance with Toppan’s economic goals.

of newly established targets to mitigate global warming. In

No company can stand alone, independent of the society

fiscal 2009, a plant for liquid crystal color filters now underin which it operates. And to earn a place within society,construction in Sakai, Osaka will launch operations as an

a company bears a social responsibility to help make theenvironmentally advanced plant with reduced CO2 emis-

society sustainable. Indeed, the significance and prosperity

sions, waste discharge, and drainage.

of a company depends on the extent to which it can contribute to the creation of a sustainable society.

The Group will strengthen measures to mitigate global
warming as an overriding task towards the next Mediumand Long-term Environmental Targets to be set during 2011.

Towards a Sustainable Society

Toppan has also begun projects to mitigate global
warming in new fields based on technologies acquired

In 2000, the centennial anniversary of its founding, Toppan

through printing. Environmentally-friendly products such as

established TOPPAN VISION 21 as its corporate vision andmembrane electrode assemblies for fuel cells, light-extrac-

as the foundation of all of its business activities for thetion film for organic Electro Luminescence (EL) panels

21st century.

for lighting, and back sheets for solar cells are already bringing

TOPPAN VISION 21 consists of a Corporate Structure

2

TOPPAN CSR REPORT 2008

us closer to a sustainable society through business operations.

Towards Awareness and Solutions for Broader
Social Issues

Orchestrating Employee Job Satisfaction
The driving force behind these activities is the people

Another important social responsibility for the Company, as

working at the Toppan Group. Toppan should nurture theI see it, is to recognize and resolve broader social issues intalents and skills of individuals with a respect for people

parallel with issues to do with the environment.

through the provision of an environment in which diverse

Toppan has participated in the United Nations Global

human resources can work safely and securely. Toppan

Compact and supported its 10 principles since September

aims for sustainable development as a company offering

2006. Our commitment to the Global Compact gives us thejob satisfaction not only by providing a work-friendly envi-

opportunity to work on initiatives to address social issues

ronment, but by encouraging employees to take pride infrom a more global point of view. One form of solution

their work. I believe that these efforts will contribute to theis education, an area in which we have been active as arealization of a sustainable society.

mainstay of information and culture since our foundation.
To contribute to the achievement of universal primary edu-

To Fulfill our Responsibilities to Stakeholders

cation, one of the Millennium Development Goals, we havelaunched educational support activities seeking improved

Corporate social responsibility is a responsibility to all

literacy among children who face difficulties in accessing

stakeholders. It is no exaggeration to assert that every step

education.

we take to fulfill our CSR begins from listening sincerely tothe voices of the stakeholders—their suggestions, opinions,
expectations, and desires.
By refining our existing dialogues with stakeholders, wehave launched a new system that will enable fixed-point
observations and evaluations of our CSR activities fromfiscal 2007 onward.
For information disclosure on CSR activities as a fundamental communication with stakeholders, Toppan’s CSR
Report 2007 was highly rated for its forthright disclosure of
information on personnel, labor, and negative episodes. The
report was named an outstanding sustainability report at the
11th Environmental Communication Awards and received
the highest award for sustainability reporting at the 11th
Environmental and Sustainability Report Awards. Henceforth we will move further in the same direction, promoting
transparency and information disclosure to new levels. We
are eager to hear your candid opinions in this regard.
The Toppan Group will maintain its efforts to serve
society as a trustworthy, respected corporation committed
to the creation of rich and fulfilling lifestyles in a sustainable
world. We rely on your ongoing support and guidance inthe future.
August 2008

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

TOPPAN CSR REPORT 20083

Group 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 business activities in all of these fields havebeen expanded with printing technology at the core.

Corporate Profile

Group Profile

Corporate nameToppan Printing Co., Ltd.

Head office

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

Established

January 17, 1900

President & CEO

Naoki Adachi

Number of employees(Nonconsolidated)

11,181 (as of the end of March 2008)

Number of employees(Consolidated)

38,570 (as of the end of March 2008)

Capital (Nonconsolidated)

104.9 billion yen

The Toppan Group comprises Toppan Printing
Co., Ltd. and 176 related companies (155 subsidiaries and 21 affiliates) engaged in manifold
businesses in three main fields: Information &Networks, Living Environment, and Electronics.
On the opposite page you will find an outline ofthe positioning of Toppan and its related companies in these fields.

Business Fields
IInformation & Networks
Providing solutions to increase the value of
information and effectively deliver information
for clients who require smooth communication

ISecurities and Cards

ICommercial Printing

IPublications Printing

ILiving Environment
Providing customers around the world withproducts and services optimal for creating
fulfilling lifestyles in fields such as medicine,
food, and housing

IPersonal Service
Providing customers with Toppan original
brand of innovative information services anddevices to mediate the links between people
and goods

Vibrant
Knowledge
andTechnology

IPackaging

IMapion, Internet-based map
information service (in Japanese)

IIndustrial Materials

IElectronics

INext-generation ProductsWorking with leading-edge technologies toprovide electronic components with strong
potential to be adopted as de facto standards

IElectronics

4

ISemiconductor Solutions

TOPPAN CSR REPORT 2008

Providing high-performance industrial materials
with links to the next generation by developing
fields of business with growth potential

IHydrogen sensor

Toppan Group Structure
Customers

Manufacturing Companies

Sales Companies

Manufacturing andSales Companies

Toppan Graphic Co., Ltd.

Toppan Forms Co., Ltd.

Toppan Graphic Communications
Co., Ltd.

Tosho Printing Co., Ltd.
5 other companies

Toppan Seihon Co., Ltd.
17 other companies

Toppan Printing Co. (America), Inc.
(USA)

∗Hino Offset Printing Co., Ltd.
2 other companies

Toppan Printing Co., (H.K.) Ltd. (PRC)

Tokyo Shoseki Co., Ltd.
25 other companies

Toppan Printing Co., (Shenzhen) Ltd.
(PRC)

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

Toppan Forms Tokai Co., Ltd.
10 other companies
T.F. Company, Ltd. (PRC)
8 other companies

Toppan Printing Co., (Shanghai) Ltd.
(PRC)
3 other companies∗Data Products Toppan Forms Ltd.
(Thailand)
6 other companies

Manufacturing Companies
L iv
i viing
ng Env
Enviiroronm
nm e nt
n t 2222%

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

Manufacturing Companies
Niigata Toppan Printing Co., Ltd.

E lec
l ectrontronics
i cs 222%
2%Toppan Shiga Seimitsu Co., Ltd.
5 other companies

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

Manufacturing andSales Companies
NEC Toppan Circuit Solutions, Inc.

froebel-kan co., ltd.
Total Media Development InstituteCo., Ltd.
Toppan Travel Service Corp.
Toppan Multisoft Ltd.

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

Information & Networks 56%

Toppan Display Co., Ltd.

Toppan Printing Co. (Australia) Pty. Ltd.
(Australia)
4 other companies

Sales Companies
Toppan Cosmo, Inc.
5 other companies

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

Toppan CFI (Taiwan) Co., Ltd.
Toppan Photomasks, Inc. (USA)
14 other companies∗Advanced Mask Technology Center
GmbH & Co. KG (Germany)
1 other company

Notes:•No symbol: subsidiary—155 companies ∗: affiliates—21 companies (as of the end of March 2008)•Toppan Group’s business activities are usually divided into five fields. Here, however, they are divided into three fields based on the current sizes of the businesses and other factors.
•The composition ratios given under each business field are percentages of overall sales contributed. (The Net Sales by Business Field are shown on P.6.)•Among Toppan’s subsidiaries, Toppan Forms Co., Ltd. and Tosho Printing Co., Ltd. are listed on the first section of the Tokyo Stock Exchange.
•Tosho Printing Co., Ltd., a former affiliate of the Company, became a consolidated subsidiary when Toppan subscribed for its allocation of new shares on
October 12, 2007.
•Toppan operational sites span across 15 countries and regions, including Japan.

Products
Materials
Service

IScope of this Report
In principle, this report covers the social and environmental activities of Toppan Printing Co., Ltd. and Group entities that are consolidated for accounting
purposes. Most of the information on personnel applies to personnel within Toppan Printing Co., Ltd., the parent company. The scope of environmental performance data and environmental accounting is presented on P.60. Sixty-five domestic sites and nine overseas sites are ISO 14001 certified.

TOPPAN CSR REPORT 20085

Group Business Outline

The Japanese economy recovered
steadily in 2007, buoyed by growth inexport and capital investment linked to
the favorable performance in companies.
In the second half of the year, however,uncertainty about the future heightened
due to rapid exchange rate fluctuations
and the stock market slump precipitatedby steeply higher crude oil prices and thesubprime loan debacle in the U.S. (subprime loans are housing loans for individuals with poor creditworthiness). The
printing industry has faced severe pricecompetition, aggravated by elevatedcosts for materials arising from higher
costs for raw materials.

Within this environment, the Toppan
Group has been eager to innovate theGroup’s profit structure and cut costs
further based on TOPPAN VISION 21,
the corporate vision for the 21st century.
The Group has increased its production
capacity and accelerated technologicaldevelopment to strengthen competitiveness in markets with high growthpotential, such as color filters and services incorporating information security technologies. Management has also
striven to expand its business areas andstrengthen its management bases cooperatively within the Group.
Consequently, consolidated net sales
increased to 1,670.3 billion yen in fiscal 2007, up by 7.2% from the previous

year. Consolidated operating income
reached 72.1 billion yen, climbing 4.0%
year-on-year. Consolidated net income
stood at 38.5 billion yen, for an increaseof 47.8%.

Net Sales

Operating Income

Net Income

Outline of Consolidated
Operating Performance■Consolidated ■ Nonconsolidated (Billion yen)
1,800
1,670.3
1,548.2 1,557.8
1,413.5
1,500
1,297.3
1,200
900

952.8

914.6

947.1

948.7

1,022.9■Consolidated ■ Nonconsolidated (Billion yen)
100
86.9

72.1

69.3

0
2003

2004

2005

2006

2007
(Fiscal year)■ Consolidated ■Nonconsolidated (Billion yen)

38.5

40
31.2

61.9
30

60
39.9

38.0
30.3

30.0

31.6

26.0
18.9

20

21.5

21.9

25.2

20.2

15.1

10

20

300

50

40.5

80

40

600

91.0

0

0
2003

2004

2005

2006

2007
(Fiscal year)

2003

2004

2005

2006

2007
(Fiscal year)

Net Sales by Region (Consolidated)

Net Sales by Business Field(Consolidated)
Electronics(Billion yen)

365.7 (22%)

Other regions 48.3 (3%)(Billion yen)Asia, excluding Japan105.4 (6%)

Information & Networks

Living Environment

Japan 1,516.5 (91%)

935.8 (56%)

368.7 (22%)

Note: Here, sales are divided into three business fields
based on the sizes of the businesses and otherfactors.

Number of Employees by Business Field (Consolidated)

Number of Employees(Employees)
Fiscal 2003 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007

6

(Employees)

Consolidated

32,17832,72435,95436,757

38,570Information &Networks

Nonconsolidated

11,512

10,548

10,582

10,89911,18122,098TOPPAN CSR REPORT 2008

LivingEnvironment

Electronics

Company-wide
Position

8,737

6,882

853

Key Financial Data (Consolidated)
Fiscal 2003
Net sales (million yen)

Fiscal 2004

Fiscal 2005

Fiscal 2006

Fiscal 2007

1,297,357

1,413,580

1,548,208

1,557,876

1,670,351

Operating income (million yen)

61,95686,93891,08569,376

72,153

Net income (million yen)

31,22940,574

15,14826,06738,523

Total assets (million yen)

1,461,305

1,483,477

1,727,636

1,837,719

1,787,408

Net assets (million yen)

740,481768,245803,678

918,002940,303

Interest-bearing debt (million yen)

239,209

205,008

304,736

359,631

290,324

Capital expenditures (million yen)

85,10886,625

119,221

133,722

72,911R&D expenses (million yen)

21,302

22,25527,59329,132

29,732Current income taxes (million yen)

24,91822,15434,07332,354

16,214

Share price—high (yen)

1,396

1,380

1,648

1,645

1,396

Share price—low (yen)

690

1,002

1,050

1,161

965

45.57

60.09

22.13

39.58

58.63

Net income per share (Basic) (yen)Net income per share (Diluted) (yen)

44.86

59.94

22.02

39.40

58.49

Shareholders’ equity per share (yen)1,104.62

1,154.21

1,216.04

1,222.27

1,223.41

Dividends per share (yen)

17.00

19.00

20.00

20.00

22.00

Return on assets (ROA; %)

2.2

2.8

0.9

1.5

2.1

Return on equity (ROE; %)

4.3

5.4

1.9

3.2

4.8

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

202,149

168,804

206,974

240,596

224,315

Number of employees

32,17832,72435,95436,757

38,570Notes:
1. Net sales do not include consumption taxes.
2. The number of employees is the number of employees working at the Company.
3. Toppan has applied the “Accounting standards related to the impairment of fixed
assets” and the “Guidelines on accounting standards related to the impairment of fixed
assets” since fiscal 2004.

Capital Expenditures

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

150

133.7

(Billion yen)(%)(Billion yen)
2,000
1,727.6
1,500

1,837.7 1,787.4 4.0

40

3.0

30

85.1

86.6

1,461.3 1,483.4
2.2

72.9

34.0

32.3

24.9
22.1

2.1

2.8

1,000

2.0

1.5

60

20
16.2

0.9
500

30
0

Current Income Taxes

119.2

120
90

4. Toppan has calculated the net assets by applying the “Accounting Standard for
Presentation of Net Assets in the Balance Sheet” and the “Guidance on AccountingStandard for Presentation of Net Assets in the Balance Sheet” since fiscal 2006.
5. High and low share prices are prices on the first section of the Tokyo Stock Exchange.

2003

2004

2005

2006

2007
(Fiscal year)

R&D Expenses
35
27.5
21.3

2003

2004

2005

2006

2007
(Fiscal year)

10

0

0

2003

2004

2005

2006

2007
(Fiscal year)

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

28

0

1.0

29.1

(Billion yen)
1,000

918.0

29.7
800

740.4

768.2

(%)
940.3 10.0

803.6

8.0

22.2
5.4

600

21

4.8

4.3
3.2

400

14

6.0
4.0

1.9
200

7
0

2003

2004

2005

2006

2007
(Fiscal year)

0

2.0

2003

2004

2005

2007
2006
(Fiscal year)

0

TOPPAN CSR REPORT 20087

Special Report 1

Maintaining Work-Life Balance for
Employees
Becoming a Company Offering Job Satisfaction

A company offering
job satisfaction=

Toppan seeks to be a “company offering job satisfaction” by guaranteeing its employees “pride in work”
and comfortable working environments. To realize
a “work-friendly environment,” the Company must
promote work-life balance to empower its people toenjoy contented lives both at home and at work.
Toppan has long been striving to enhance worklife balance for its employees. In coming years theCompany will continue its efforts to secure fulfilling
lifestyles for employees by improving its corporate
system and establishing a corporate atmospherein which employees are able to take more vacation
time.

Pride in work+

Work-friendly
environment

See PP.50–57 for the details on employee treatment

Valuing Human Endeavors as a Company
Offering Job Satisfaction
The shrinking of the labor force as a consequence of thedeclining birthrate and aging population has become amajor social issue in Japan. The environment surrounding
workers and companies has also been changing
dramatically: economic conditions are becoming volatile,
values and attitudes are diversifying, and labor-related
legislation is being revised. Toppan employees, the force
behind the Company’s corporate activities, are prized
as invaluable “human assets.” As changes in the labor
environment deepen the importance of human resources forthe companies that employ them, Toppan seeks to develop
sustainably as a company offering job satisfaction. Job
satisfaction, as Toppan defines it, enhances pride in workand secures a work-friendly environment. Various efforts
are underway within the Company to realize just this kind ofworking environment.
To feel pride in work, employees must live with a positive
sense of mission. Toppan regenerates through personnel
rotations responsive to individual competencies and qualifications. It also takes various steps for human resource
development to foster individual abilities and potential.

8

TOPPAN CSR REPORT 2008

To realize a work-friendly environment, every employee
should be highly esteemed and encouraged to enjoy ahappy personal life. It is vital to promote a healthy worklife balance. Toppan strives to help its employees maintaina healthy work-life balance by offering family and childcare
support, reducing overtime, and encouraging employees totake leave to refresh themselves and rebalance. All of these
efforts improve productivity and add value in the long run.
A company can only offer job satisfaction to its employees if it promotes pride in work and provides a work-friendly
environment. Toppan believes that the Company and its
employees will develop sustainably by delivering these two
ingredients for human resource development. The Companywide slogan in fiscal 2008, “Realizing TOPPAN VISION 21 tobecome No. 1 in Job Satisfaction,” betokens the mounting
efforts at Toppan to reward its human assets.

Kodomo-ba (“kids park”), a website for parents (http://kodomoba.jp/ [in Japanese])

New Business Evolved from the Pursuit ofWork-Life Balance
Efforts to pursue work-life balance can be a source of new
ideas for business.
Kazuyoshi Miyamoto, the founder of Kodomo-ba, explains,“I wanted to start a business involving children, to takeadvantage of my experience in raising them.” Kodomo-ba
is a free, members-only website that provides local information on parenting. Miyamoto left work for about a year on
childcare leave. After returning to work, he created the site
as a new Toppan business based on his own experience inraising kids.
Kodomo-ba is a perfect example of a job satisfaction
resource offered by a company committed to helping its
employees attain balanced lives and enthusiasm for work.
“People’s values and the actual conditions of their lives vary,”
explains Miyamoto. “Many agonize over the choice between
continuing work and devoting themselves full-time to theirfamilies after their children are born. The important thing for
employees is to have various options available at work. I
appreciate Toppan, as well as my supervisors and coworkers, for providing options. Everyone has helped me, officiallyand privately, both before my leave and now that I’m back.”

In-house poster with the fiscal 2008 Company slogan

The Importance of Opinions in the Workplace
In-house communication, listening and exchanging opinions
in the workplace, is a vital practice for any company thatseeks to offer job satisfaction for its employees. When a
new system is adopted or an existing system is changed,
for example, full explanations and candid dialogues with theemployees, the actual users of the system, can elevate its
effectiveness. All of the employees at work should share
their knowledge on the features and purposes of company
systems, and both management and employees should
agree on how the systems are run.
Employees are important stakeholders for a company.
Management at Toppan engages its employees in dialogues
to search for the best ways to enhance the Company’s
strengths and remedy its defects. This is natural for Toppan,
as a company that strives to offer job satisfaction.

Recent Achievements for Work-Life Balanceat Toppan■ Expanded qualification criteria for the staggered
work-hour program
Employees can now use the staggered work-hourprogram for raising children.

■ More opportunities to take half-day leaves
Employees can take up to 20 half-day leaves a year(versus 10 half-day leaves before).

■ New financial assistance program for childcare leave
Employees who take childcare leave can now receive abenefit of 30,000 yen a month.

■ New financial assistance program for parents
entering nursing facilities
Employees can now receive a subsidy of 30,000 yen when
their parents or spouse’s parents enter nursing facilities.

Kazuyoshi Miyamoto, Media Business Development Department,
Information and Communication Division

TOPPAN CSR REPORT 2008

9

Special Report 2

Developing Product Components for
Reduced CO2 Emission
Mitigating Global Warming through Printing Technologies
Toppan strives to reduce carbon dioxide (CO2 ) emissions, the main cause of global warming, by promoting
dual initiatives for lowering the environmental burdens
associated with its production activities and developing and marketing environmentally-friendly products
based on its printing-related technologies.
Two eco-friendly examples from Toppan are alarge-area microfabrication technology derived froma plate-making technique to transcribe letters andpictures on paper, and a surface treatment technology now applied for designing and producing many
types of films. By combining technologies such asthese, the Company is advancing in the developmentof components for fuel cells and other products withstrong potential to reduce CO2 emissions.

Printing
technology
Large-area
microfabrication
technology

Surfacetreatment
technology
Photo control
technology

Mitigating
globalwarming

See PP.60–84 for the details on environmental activities

Membrane Electrode Assembly (MEA) for the
Fuel Cell
The fuel cell generates electricity through a reaction betweenhydrogen and oxygen. The system has great promise as asource of low-environmental-burden energy, offering higher
power generation efficiency than existing generating systems,with zero emission of CO2. The only by-product discharged
during electricity generation is water. Toppan is developing amembrane electrode assembly (MEA) and separator that will
form the core part of the fuel cell. The MEA consists of acatalyst layer and electrolyte membrane for optimal power
generation efficiency and durability. The catalyst layer catalyzes the electrical generation by producing electrons throughthe dissolution of hydrogen and generating water through areaction between the oxygen and hydrogen ions obtained.
The electrolyte membrane, meanwhile, serves as a partition
strip to permit only the hydrogen ions to pass, effectively
separating the hydrogen and oxygen at the center of thefuel cell.
The fuel cell system requires a smooth flow of hydrogen,oxygen, and electrons and an adequate removal of water
to increase the power-generation efficiency. The catalyst
particles mixed with the resins in the catalyst layer should
ideally disperse in interconnected clusters. Toppan is work-

10

TOPPAN CSR REPORT 2008

ing to obtain this ideal condition with a proprietary inking
technology and studying a process to combine the catalyst
layer and electrolyte membrane with coating and laminating
technologies.

Hydrogen(H2)

Oxygen (O2)

Water (H2O)
Separator

Catalyst
electrode
layerElectrolyte Catalyst
membrane electrodelayer

Separator

Membrane electrodeassembly (MEA)
Proton (H+)

H2
2H + + 2e –+2H + 1/2O 2 + 2e –Electron (e– )Total

H 2 + 1/2O 2

H 2O

H 2O

Membrane electrode assembly (the sheet shown at the center of the photo)Light-extraction Film for the Organic Electro
Luminescence Panels for Lighting
The organic Electro Luminescence (EL) panel is a lightemitting surface made from special organic compounds that
emit light using electric energy. The panel uses less electricity
than an incandescent lamp to emit the same amount of light.
It also has the potential, in theory, to surpass fluorescenttubes in power efficiency. Toppan holds a stake in a corporation now exploring the business potential of the panel andhandles the design and production of the light-extraction
film attached on the panel. The film plays the following tworoles: to diffuse light, and to extract the light that cannot
pass through the glass. Through these features, the panel
can illuminate the surrounding area in moderately bright lightwithout too much directivity, efficiently using the light energy
without waste.
Toppan is applying its work on the stereo printing principle
to the development of this film. Stereo printing technology
produces printed images that visibly change when viewed
from different angles, smoothes the quality of video images,
and converts plane images to three-dimensional images.
These effects are achieved by either combining a printed
material with a lenticular lens (a specially arranged array of
convex lenses) or printing images directly on the lens itself.

Solar cell made with a back sheet fabricated by Toppan

Back Sheet for the Solar Cell
The solar cell is a representative type of power-generation
device fuelled by natural energy. Its prevalence is now growing, with advances in both the technology and drive to promote its use. The production output of solar cells, therefore,
has been increasing year by year around the world.
For solar cells installed outdoors, safeguards to protect
the inner components from external materials are essential
to prevent deterioration and trouble. One of the arch foes ofthe silicon elements used to convert solar light into electricity
is the water vapor in the air. Toppan develops and produces
a back sheet to prevent invisible vapors in the air from infiltrating the cell.
Toppan’s back sheet offers the world’s highest-level
performance as a vapor barrier through the optimal use ofthin-film formation and coating technologies. It also improves
efficiency in the use of light by reflecting the light not converted into electricity back onto the silicon elements again.
Toppan will move forward in its R&D on various manufacturing processes and product components, including theback sheet.

Solar lightWith a light-extraction film

Lightextraction
film

Without a light-extraction film

Foreface glass

Silicon element

Efficiently uses light energy
without waste

Glass
Transparent
electrode
Organic
emiiting layer(Organic EL)

Back sheet

SpacerElectrode
Glass

Water vapor

TOPPAN CSR REPORT 200811

Special Report 3

Educational Support to Improve
Literacy
Promoting Fulfilling Lifestyles throughout Society
Toppan announced its participation in and support
for the United Nations Global Compact in 2006.
The Company recognizes anew its responsibility toaddress social issues from a more global perspective.
How can Toppan, a company that has contributed
to the development of information and culture throughprinting, help to resolve the societal problems in theworld? Toppan has launched an educational support project to improve literacy among children who
face difficulty in accessing education. The projectis designed to contribute to the achievement of
universal primary education, one of the Millennium
Development Goals*.

Personal
contact

Highereducation

Employment
Results fromliteracy

HealthSafety andsecurity

See PP.46–49 for details on social contribution activities

Literacy: Its Importance and Status around
the World
Toppan held Toppan Charity Concerts in February 2008 as
the first step of an educational support project with the goalof improving literacy among children who face difficulty inaccessing education. Literacy, the ability to read and write, is
one of the essential skills for living and communicating
effectively in society. Reading and writing allow people toobtain everyday information related to health and safety, andto acquire knowledge required in the business and academic
worlds. Literacy is one foundation for a person’s future, aprerequisite for acquiring new knowledge, understanding,making decisions, and taking steps forward in society.
Poverty, conflict, discrimination, and other obstacles still
prevent many people around the world from accessing
the primary education required to acquire literacy. Illiterate
adults, those deprived of the basic everyday skills of reading,writing, and doing arithmetic, are now assumed to number
about 800 million worldwide (the illiteracy rate in the world
adult population exceeds 10%). The number of children
unable to attend primary schools once they reach school
age is estimated to be around 100 million. The Millennium
Development Goals include a concrete target: ensure that allboys and girls from every corner of the world complete a full

12

TOPPAN CSR REPORT 2008

course of primary schooling by 2015. This has yet to be fully
achieved, despite steady progress. A person who remains
illiterate has only a slim chance of holding a stable job or
leading a healthy life. Worse, the offspring of illiterate parents
fall into the same circumstances.
*Millennium Development Goals (MDGs)
The common framework integrates two initiatives. The firstis the United Nations Millennium Declaration for the international agenda for the 21st century adopted by 189 representatives of the UN member states at the UN Millennium
Summit in September 2000. The second are the International
Development Targets adopted at major international conferences and summits of the 1990s. The MDGs encompass
eight goals, 21 quantifiable targets, and 59 indicators to beachieved by 2015 in order to respond to the world’s maindevelopment challenges.
http://www.undp.org/mdg/

©UNHCR©Japan for UNHCR

Education for Child Refugees

Support through Charity Concerts

Refugees, among others, face a high risk of losing theopportunity to attain a primary education. Refugees are
driven from their homes by civil wars, conflicts, or persecution for reasons of religion, race, or political beliefs. The
Office of the United Nations High Commissioner for Refugees(UNHCR) wrestles with the challenges of protecting andsolving problems for refugees and internally displaced persons. The UNHCR has aided 31.7 million people (as of theend of 2007).
Children make up about half of refugees worldwide. They
live in refugee camps with great difficulty, often struggling toaccess food, clothing, and shelter. The basic necessities forliving take priority in the camps, limiting the funds available
for educational support.
Education is an asset with which children build their
futures. School attendance can ease the distress of a dislocation from home to refugee camp, and learning canfoster self-sustaining competencies. Improvement of literacy
through education is a foundation to rebuild new lives after
refuge.

Toppan has been contributing to society through education and literacy-improvement programs in order to promote
the healthy growth of children, the hopes of tomorrow. The
Company prints and publishes picture books and textbooks,
while running workshops and on-site tours at the Printing
Museum, Tokyo and operational sites around Japan. Childsupport activities have also been organized overseas. Daily
necessities, stationery, bags, and various learning materials
have been donated to children in primary schools andorphanages through these programs.
Toppan also organized charity concerts as a new endeavor
in social contribution. The Company widely publicized
the Toppan Charity Concerts both in-house and in thecommunity, and held a panel exhibition to report refugee
issues at the venue. The concert was Company-funded, andthe 2,864,190 yen earned in ticket revenue was donatedto “Japan for UNHCR,” a non-profit organization and official
donation recipient for UNHCR in Japan. This money will be
used to repair school buildings and distribute textbooks andstationery at refugee camps in Southeast Asia, with UNHCR
support. Toppan will continue to contribute to international
communities through charity concerts, focusing on theachievement of universal primary education and literacy
improvement.

©UNHCR

TOPPAN CSR REPORT 2008

13

The United Nations Global Compact’s 10 Principles
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed humanrights within their sphere of influence; andPrinciple 2: make sure that they are not complicit in human rights abuses.

Labour Standards
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the rightto collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.

Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
http://www.unglobalcompact.org

The Eight Millennium Development Goals (MDGs)
Goal 1: Eradicate extreme poverty and hunger
Goal 2: Achieve universal primary education
Goal 3: Promote gender equality and empower women
Goal 4: Reduce child mortality
Goal 5: Improve maternal health
Goal 6: Combat HIV/AIDS, malaria and other diseases
Goal 7: Ensure environmental sustainability
Goal 8: Develop a Global Partnership for Development
http://www.undp.org/mdg/basics.shtml

14

TOPPAN CSR REPORT 2008

CSR Topics 2007–2008

Topic 01

Toppan Receives Prize at the Barrier-Free Promotion Contributor Awards from
the Minister of State in the Japanese Cabinet OfficeToppan received a prize for excellence at the 2007 BarrierFree Promotion Contributor Awards from the Minister of Statein the Japanese Cabinet Office. These awards are presented
to an individual or group recognized to have made outstandingachievements or contributions in facility maintenance, productdevelopment, or promotion activities for barrier-free and universal design (UD).
The Company promotes the wider use of UD in society by
developing containers and packages based on the UD concept,
systematizing findings in UD learned during product development,
and applying the findings as ground plans for the formulation ofstandards to be set by the Japanese Standards Association(JIS). The Minister of State selected Toppan as a prizewinner atthe 2007 awards in recognition of these efforts.
Toppan has proposed UD-based solutions for the various
problems impeding communication between companies andconsumers in the fields of commercial printing, securities andcards printing, publications printing, packaging, and industrial
materials. The Company has been especially active in packag-

ing since the early 1990s as an industry pioneer in research anddevelopment on easy-to-use UD packages.

UD Standing Pouches

Topic 02

The Niigata Plant Receives an Outstanding Energy-Efficient Factory Award fromthe Director General of the Tohoku Bureau of Economy, Trade and Industry
In fiscal 2007, the Niigata Plant in the Electronics Division received
an Outstanding Energy-Efficient Factory Award for the second
year in row (awarded this year by the Director General of Tohoku
Bureau of Economy, Trade and Industry). Each year, the Tohoku
Bureau of Economy, Trade and Industry (a local body under the
Ministry of Economy, Trade and Industry), the Tohoku Branch of
the Energy Conservation Center, Japan, and the Committee toPromote Electrical Power Use in the Tohoku Seven Prefectures
present this award to factories that have served as outstandingrole models in energy-saving management. In fiscal 2006, theChairman of the Committee to Promote Electrical Power Use
in the Tohoku Seven Prefectures named the Niigata Plant as its
prize’s winner. In fiscal 2007 the plant was conferred a higher
rating than in the previous year, in recognition of its further
energy-saving achievements.
The Niigata Plant has established a host of energy-saving
targets, including those for energy-loss reduction through energysaving patrols by employees from every plant section, renewal
or energy-loss control for older equipment, and operational

improvements for clean rooms. The thoroughgoing energy-saving
measures at the plant have sharply reduced both energy consumption and CO2 emission on a year-on-year basis.

Boiler insulation jacket to minimize thermal loss

TOPPAN CSR REPORT 2008

15

CSR Topics 2007–2008

Topic 03

Toppan Officially Recognized as a Company Active in Fostering
the Next Generation
In August 2007, the Tokyo Labor Bureau certified Toppan asa qualified general proprietor, a company that proactively promotes measures to foster the next generation. This certification,
established under the provisions of a law to promote measures
to support the development of the next generation, is granted tocompanies that have established action plans to foster the next
generation and have accomplished targets set under the plans.
Toppan has striven to establish and enhance systems andan environment to foster the next generation and work-life balance for employees. In January 2007, the Company introduceda system for rehiring former employees who resigned from theCompany to devote themselves to delivering and raising children. The system for reduced working hours for employees withchildcare responsibilities at home has also been extended. A
schedule reduction of up to two hours a day was originally offered
to a parent until his or her child reached the age of three; now it
is available until the child completes the third year of elementary
school. Toppan was granted its certification as a qualified general proprietor in recognition of its steady work to promote thesemeasures.

The mark depicting Toppan’s recognized status
in Japan as a qualified general proprietor active
in fostering the next generation

Topic 04

Toppan Holds the “Let’s Take a Quiz and Make a Book”
Summer Workshop“Let’s Take a Quiz and Make a Book,” Toppan’s summer vacation workshop for elementary and junior high school students
and their parents, was held for the fourth time in the summer of
2007. The number of participants increased by more than 400
compared to the year before, bringing the total up to 850.
The workshop participants take part in three activities: touring the workshop exhibits to hunt for answers for a quiz, printing with type, and folding paper for bookbinding. Children andtheir parents can study the history and techniques of printing
by perusing workshop exhibits and filling out worksheets at the
Printing Museum, Tokyo. They can also print out their names
in hiragana (Japanese syllabary characters) by choosing types
from dozens of varieties on the shelf, setting the blocks correctly,
and printing them with ink. Participants enjoy the workshop andappreciate the opportunity to learn how to make books of thekind people see every day.
Toppan received a first Kids Design Award and a 2007 Good
Design Award for its workshop on the book, one of the mostfamiliar communication tools in everyday life.

16

TOPPAN CSR REPORT 2008

Topic 05

Developing a New Method for Exhibiting Cultural Assets in Cooperation with
the Tokyo National Museum
The Tokyo National Museum (TNM) and Toppan have been jointly
developing a new method for exhibiting cultural assets using virtual reality (VR) technologies. As a part of this project, the TNM &TOPPAN Museum Theater, a facility that projects ultra-high definition visuals on screen, has been installed at the Research andInformation Center of TNM since November 2007. The theater
opens to the public for showings of VR productions on cultural
assets on Fridays, Saturdays, Sundays, and public holidays.
The theater can display works with visual perspectives not
actually possible, recreating the appearance of cultural assets
as they once existed in their original forms and locations. The
shapes and colors of the artifacts are finely reproduced in detailby digital archiving technologies. Information on the TNM collection and research achievements are also presented to deepen
the visitors’ experience of cultural assets.
Visitors and guests have praised the theater for its high entertainment value and effectiveness as an educational resource.

Illustrated Biography of Prince Shotoku, a national treasure, presented
from the opening of the theater (November 2007) to March 2008
Supervised by Tokyo National Museum
Produced by Toppan Printing Co., Ltd.
With the cooperation of Horyuji Temple

Topic 06

Establishing RIKEN Genesis Co., Ltd. to Accelerate Practical Application of
Personalized Medicine
Toppan, RIKEN, and RIKEN Venture Capital Co., Ltd. have jointly
established RIKEN Genesis Co., Ltd. The SNP genotyping technology RIKEN has developed is essential for analyzing diseasecauses at the genetic level for the research and development ofdrugs and therapies tailored for individuals. The technology willplay a key role in the advance of personalized medicine*.
RIKEN Genesis will work towards the practical use of personalized medicine by contracting for gene analysis and marketing the downsized gene-analyzing devices and chips used forpatient examinations at hospitals and other healthcare facilities.
Having passed through the preliminaries in fiscal 2007, RIKEN
Genesis will start full-scale operation in fiscal 2008. This is thefirst time Toppan has established a business enterprise in the life
sciences, an area in which the Company has been active in R&D
since 2000 (➞P.42).

*Personalized medicine
When patients undergo personalized medicine, they receive optimal
individualized therapies and prophylactic regimens using more effective
drugs with fewer side effects, based on individual differences in diseasesusceptibility and drug sensitivity.

TOPPAN CSR REPORT 2008

17

CSR Topics 2007–2008

Topic 07

Toppan’s Response to Soil and Groundwater Pollution at the Itabashi Plant
In May 2007, Toppan voluntarily inspected six investigation wellson the premises of the Toppan Printing Co., Ltd. Itabashi Plant(Itabashi Ward, Tokyo). As a result, 0.13 mg/L of hexavalentchromium, a level in excess of the environmental standard of
0.05 mg/L, was detected in one well to the northwest of theplant. Upon the detection, the Company reported the result
to neighboring residents and the local authority (Itabashi ward
government). Toppan released this information to the press andreported it in the CSR Report 2007 as well.
In the subsequent investigation, hexavalent chromium was
detected in the soil and groundwater at maximum concentrations of 1.20 mg/L in soil with substances eluted and 1.40 mg/L
in groundwater, exceeding the environmental standard of
0.05 mg/L. The cause of the pollution has not been determinedfrom this investigation. The areas of contamination, however,were confined to the north of the plant, near the former siteof a chrome-plating processing facility. With counsel from thelocal authority, Toppan managed to prevent groundwater inthe polluted area from flowing out of the premises by installing water-shielding walls. The Company will continue to extract
the pollutants by pumping up groundwater within the plant andmonitoring it for pollutants. Toppan personnel also conductedsoil investigations in the areas where water-shielding walls were
to be installed, in order to confirm compliance with requirements
under the Tokyo municipal ordinance on water-shielding wall
installation. As a result, lead was detected at maximum concentrations of 20,000 mg/kg in soil and 0.05 mg/L in soil with
substances eluted (exceeding the environmental standards of
150 mg/kg and 0.01 mg/L, respectively). To eliminate the problem, the Company determined the polluted areas and removed
and remedied the soil.
This case has been deliberated by the Pollution Examination
Commissioner of the Tokyo Metropolitan Government since
January 2008, based on a petition for arbitration filed by severalof the neighboring residents.

Topic 08

Accepting Orders for Vehicle Storage Space Stickers
Japan’s prefectural police departments used to order theirvehicle storage space stickers from only two corporations,one of which was Toppan Printing Co., Ltd. In October 2007,
the Japan Fair Trade Commission launched an investigation todetermine whether the two corporations received these orders
through practices in violation of the Antimonopoly Law.

On June 5, 2008, the Japan Fair Trade Commission declaredthat its investigation had uncovered no infractions by either corporation. In the same announcement, however, the commission
warned the two corporations that they were at a risk of violating
the Antimonopoly Law. Toppan takes this warning seriously andwill strengthen its compliance structure further in the future.

Topic 09

Disguising the Used Paper Content in Recycled Paper
In January 2008, several paper manufacturers from which
Toppan procures paper were found to be disguising the usedpaper content in their recycled paper. This practice has been anannoyance to customers and consumers. In response, Toppan
urged all paper manufacturers and paper agents that do
business with Toppan to individually and immediately investigate
the actual contents of their products and disclose the results.
Toppan also encouraged the Japan Federation of Printing
Industries to join the Japan Paper Association in its efforts to

18

TOPPAN CSR REPORT 2008

eliminate the practice on an industry-wide basis. The Company
urged relevant business partners to take measures to assure
the prevention of recurrence, requesting 24 major partners toreport their own countermeasures after May 2008. The reports
were returned in June and July. Toppan is now calling on allof its business partners to properly disclose information andcheck compliance with their own countermeasures, as needed
to enhance transparency.

CSR Management

Toppan’s Social Responsibility
Basic Approach to CSR

20

Review of CSR Activities and New Initiatives
Targets and Results for Fiscal 200724

Stakeholder Dialogue

26

Targets and Measures for Fiscal 2008

28

Corporate GovernanceCorporate Governance

30

Compliance
Compliance Promotion Activities

34

Information Risk Management
Information Risk Management

36

Conduct Guidelines andInformation Management Policy

38

CSR Management

Toppan’s Social Responsibility

Basic Approach to CSR
Toppan devotes itself to the fulfillment of its social responsibilities based on TOPPAN VISION 21,
the Group vision for the 21st century.

Towards Sustainable
Development
When Toppan was founded in 1900,
Japan was rapidly building up its modern industries in the aftermath of the
Meiji Restoration.
The printing industry was contributing
to society in three important areas:
1) the printing of banknotes, bonds, andsecurities, crucial instruments for theestablishment of modern capitalism;2) the publication of newspapers, amedium for public discussion to stimulate the progress of civilization; and 3)
the publication of translations, novels,and magazines to enlighten the public
and encourage the establishment of amodern state.
Toppan began in the last century as
a provider of printing services to support the establishment of modern Japan.
Today it has grown into a multifaceted

enterprise with myriad businesses suchas IT and electronics, centered aroundcore printing technologies. Toppan supports the development of information
culture and the creation of fulfilling
lifestyles in many ways.
Toppan has grown steadily amid thedrastic changes that have taken placeworldwide in the more than 100 years
since its founding. These changes continue to pose threats to the earth andhumankind in the 21st century. The
world must contend with poverty,
abuses of human rights, environmental
destruction, and health problems. In
Japan, meanwhile, birthrates are declining and the population is ageing.
Toppan believes it has a responsibility, in conducting its business operations, to help solve these types ofproblems by contributing “to a fulfilling
lifestyle as a mainstay of information andculture” in cooperation with all of its
stakeholders. The Company contributes
as an essential corporate citizen with anactive commitment to realizing sustainable development for itself and society.

Corporate Philosophy

Each of us shall

Subject

Under the recognition that every employee upholds this philosophy, all members of the Toppan Group shallreciprocate our customers’ continued trust,

Corporate
attitude

give top priority to valuing and facilitating a relationship of trustwith customers,

create dedicated products by

Code ofconduct

work with passion, responsibility, and foresight to create excellent-quality products and services dedicated to customers, andharnessing our vibrant knowledge and technology,

Businessfoundations

enhance strengths in knowledge (marketing and planning capabilities) and technology (technical capabilities) to draw out the
reproducibility and vibrancy (detailed and creative expression)of printing as the Company’s business foundation, in order toand contribute to a fulfilling lifestyle as

Corporate
goal

help create fulfilling lifestyles by realizing individual and corporate aspirations to communicate with others, and by

a mainstay of information and culture.

Corporaterole

recognizing the universal role of printing as a mainstay of information and culture with pride and responsibility.

Established in June 2000

20

TOPPAN CSR REPORT 2008

Basic Approach to CSR

Toppan’s Social
Responsibility: Realizing an
Ideal “Corporate Structure”

Corporate Philosophy
The Corporate Philosophy is the toplevel concept that underpins Toppan’s
corporate activities and defines its mostimportant values and thoughts.

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

Toppan’s Social Responsibility

Corporate Creed and Conduct
Guidelines
The Corporate Creed expresses thestandards that Toppan applies to its
activities.
Built on the Corporate Philosophy
and Corporate Creed, the Conduct
Guidelines express the behavioral norms
based on every employee’s compliancewith laws, regulations, and corporate
ethics.

Under no circumstances will any
member of the Toppan Group engage
in a business operation that infringes therules of society or poses any risk of environmental or social harm. The Groupalso understands that any failure to
maintain its high standards for businessmay make it difficult to guarantee profitable returns and benefits for society.
The Conduct Guidelines specify items
that every employee in the Toppan
Group should closely observe.
Toppan reviews its Conduct Guidelines every year in the conviction thatthe guidelines must evolve over time torationally adapt to the various changes
underway in corporate and social environments.

CSR Management

TOPPAN VISION 21 expresses the basic
concept and directionality of the activities undertaken by Toppan to grow inharmony with society and the global
environment.
TOPPAN VISION 21 consists of the“Corporate Structure” and “Business
Fields.” The Corporate Structure, meanwhile, is made up of three elements:
Toppan’s Corporate Philosophy, theCorporate Creed, and the Conduct
Guidelines. These elements specify acomplete set of values, standards, andguidelines for the business operationsof the Toppan Group. The Group will fulfill its social responsibilities by realizing
this Corporate Structure.
The Toppan Group regularly enlightens its employees on the basic tenetsof TOPPAN VISION 21 and the Corporate Structure through communication
in workplaces, training sessions, andvarious tools.

Conduct Guidelines
Chapter 1: Basic Principles
1. Respecting basic human rights
2. Maintaining public order and standards of decency

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

3. Complying with laws and ethics

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

6. Appropriate management and disclosure of
information

To create a positive working environment by
maximizing our individual talents andstrengths as a team.

Chapter 2: Specific Conduct Guidelines

4. Conducting fair business operations
5. Striving to improve quality

7. Environmental and safety considerations

Section 1: Building customer trust
Section 2: Reforming operations

To enhance our corporate standing andpromote the continual development of
the Toppan Group throughthe exploration of new possibilities.
Established in June 2000

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.38.

TOPPAN CSR REPORT 200821

CSR Management

Toppan’s Relationships with
Stakeholders
Toppan can only succeed in its businesses and stay viable as a corporation
through strong ties with various stakeholders. The Company has defined fivecategories of stakeholders vital for its
business activities: customers, business
partners, communities, employees, andshareholders/investors. Toppan strives
to build closer relationships of trust with
its stakeholders in these categories byactively disclosing information andengaging stakeholders in dialogue.
The companies with which Toppan
deals are by no means the only customers that Toppan serves. End users
are also customers. Toppan is determined to fulfill its social responsibilities
not only to its direct customers, but tosociety as a whole.

Toppan’s Social Responsibility

Communication with Stakeholders
Stakeholder dialogues are a very effective way to regularly grasp social needs.
Toppan promotes and upgrades its CSR
activities by incorporating stakeholder
dialogues into the PDCA cycle.
Toppan held special dialogue sessions with key stakeholder representatives in fiscal 2004 and 2006, in addition
to the regular dialogues it carried out inthe course of business. From 2005 to
2007, the Company invited an external
expert into annual in-house meetings of
CSR promotion members to review its
annual CSR activities.
Toppan established the CSR Promotion Study Group (➞P.26) in fiscal 2007
to begin closely incorporating the knowledge gained through its stakeholder
dialogues outside the Company into
the PDCA cycle of its CSR activities.

Unifying dialogue channels with stakeholders outside the Company, Toppan
will convene the study group annually atthe end of each fiscal year to collectviews on activities for the current year
and suggestions for the next year.

Toppan’s Relationships with Stakeholders and Communication Tools
IFor All Stakeholders(

IFor Customers: Tools for communication)

Toppan’s customers are not just the companies with which Toppan does business.
Just about every person in society is a
Toppan customer, in some way or another.
The Company strives to merit the trust of its
customers with sincerity, enthusiasm, andcreativity at all times by satisfying customer
requirements through Total Quality Assurance
throughout the entire product life cycle, fromplanning and manufacturing to use anddisposal.
Various reports on business operations
Various reports on products and services
Various newsletters, etc.

Corporate Guide
CSR Report
Various guides for individual divisions
Financial statements
Quarterly business reports
Website, etc.
IFor Shareholders and Investors
Toppan strives to improve its corporate
value through sustainable businessdevelopment on the basis of stabledividends. The Company makes itself fully
accountable by promptly and appropriately disclosing corporate information toensure that shareholders and investors
completely and accurately understand theCompany’s business activities.
Shareholder newsletter Toppan Story
Business reports
Annual Report
Corporate governance reports, etc.
IFor Employees (including part-timeworkers and temporary staff)
Toppan strives to provide comfortableworkplaces where diverse employees canwork to their full potential—a working
environment where the dignity and lives ofall employees are respected. The Company offers satisfying jobs to fulfill
employees and tangibly contribute to thegoals of the corporation.
In-house newsletter CONVEX andWeb CONVEX
Overseas in-house newsletter Interlink
Pamphlets on welfare benefits, etc.

22

TOPPAN CSR REPORT 2008

Customers

Shareholders
andInvestors

Employees

Business
Partners

Environmental
conservation

Communities

IFor Business Partners
Another crucial element in strong customer
trust is steady relationships of trust andcooperation with the business partners who
provide the raw materials, as well as the otherpartner companies with which Toppan works.
Toppan does business on an equal footingwith its partner companies in a fair and open
manner as a matter of course. The Company
strives to fulfill the social responsibilities that
customers and society expect it to fulfill bypromoting CSR procurement in cooperation
with business partners.
CSR Procurement Guidelines on
the Toppan website, etc.

IFor Communities
Toppan relates with communities and society
as a whole through its business operations.
The Company strives to win the trust ofcommunities by contributing to society as amainstay of information and culture.
Plant guides
Site Eco Report
Annual report Printing Museum, etc.

Basic Approach to CSR

Specific Concept of CSR
Activities

CSR Material Topics Based on the Corporate Structure and Stakeholders

Toppan’s Social Responsibility

CSR Material Topics
Toppan sets action points and goals foreach material topic for its CSR activities
and reviews the topics yearly by assessing the levels of achievement. Based on
the results of the review of the topics infiscal 2007, the Company plans toadvance its future CSR initiatives fromfiscal 2008 onward by changing the six
topics now designated into eight.

CSR Promotion Structure
The President & CEO and the Director
in charge of CSR are leading a move todevelop CSR activities through collaboration with the relevant management
divisions of the head office and the CSR
Promotion Department of the Legal
Affairs Division, the department undertaking administrative operation. These
parties regularly convene a CSR promotion department meeting to assess the
progress of each action point and discuss ways to resolve related challenges.

CSR Management

The purpose of Toppan’s CSR activities
is to realize the sustainable developmentof society and the Company. To achievethis, Toppan must be a trustworthy,
respected corporation for stakeholdersof every kind. A company without thispolicy cannot expect to succeed inaddressing social issues and needs
through the creation of added-value
businesses over the years.
Toppan has therefore set out priority
themes (“material topics”) for its activities by combining its policy towards thebalanced development of society, theeconomy, and the environment with aconviction that a realization of an optimally organized Corporate Structure will
help the Company fulfill its social responsibilities. Toppan announced its support

for the United Nations Global Compact
as an active participant in 2006. By disseminating the principles of the Global
Compact across the Company, Toppan
promotes CSR activities in consideration of the roles it is to play as a member of international society.

Toppan’s CSR Promotion Structure
President & CEO

Material Topics

ComplianceDirector in charge of CSR

Corporate
Governance

CSR promotion departments meeting
Administration
Legal Affairs Division

TOPPANVISION 21
Commitment
to theEnvironment

Corporate
Philosophy
Corporate Creed
Conduct
Guidelines

Activities forSociety andCultureSecretary Department
Improving
Customer
Satisfaction

Respecting andLeveraging
Human Assets

Information andPublicity DivisionCorporate Planning Division
Personnel & Labor
Relations Division
Finance & Accounting Division
Manufacturing
Management DivisionCorporate R&D Division

Stakeholders
Purchasing Division
United Nations Global Compact
The United Nations Global Compact comprises 10 principles in the fourareas of human rights, labour standards, environment, and anti-corruption.
Toppan supports and implements the 10 principles as a socially responsible corporation.

International Division

TOPPAN CSR REPORT 2008

23

CSR Management

Review of CSR Activities and New Initiatives

Targets and Results for Fiscal 2007
The next two pages summarize Toppan’s main CSR activities and achievements in fiscal 2007.

Material Topics
Corporate
GovernanceAction Points

Issues and Targets

Establishing an internal
control system(Responding to the
Financial Products
Exchange Law)

•Drafting basic policy documents, grasping the current conditions of entity-level internal control, reexamining issues for improvement,
and offering guidance on improvement towards the creation of an internal control system that meets the requirements of the
Financial Products Exchange Law•Completing the planned improvements and documentation for the internal control of the operating processes and general control of IT•Having the Management Audit Office support the creation of an internal control system and monitor and verify the application of the system•Preparing a checklist and an evaluation manual for the self-audits for the divisions to be audited for internal control•Validating countermeasures against risks identified through risk assessment

Reinforcing risk
management

Compliance

Compliance promotion
activities

Information risk
management•Regularly implementing risk assessment (to be scheduled in December)•Creating a risk management system, formulating rules and regulations for risk management, and implementing risk assessments inEastern Asia and the U.S.A.
•Reviewing the basic plan for countermeasures against earthquake disasters based on the concepts of the business continuity
plan•Holding follow-up training sessions to execute the Action Plan for the Conduct Guidelines Promotion Leaders•Re-electing the Conduct Guidelines Promotion Leaders and increasing the ratio of female Leaders to 3.0%
•Having all of the overseas subsidiaries in the U.S.A. introduce their own Conduct Guidelines; having the overseas sites in Eastern
Asia disseminate and entrench the guidelines they have introduced•Reinforcing an information security management system that incorporates the management measures stipulated under the global
standard ISO/IEC 27001 (e.g., applying 47 management measures for 50 areas under tight security, reviewing the rules and bylaws
on information security management and procedures for handling manuscripts and artwork, and training 20 more qualified staff)•Inspecting and offering guidance for the improvement of confidential information management at 12 related companies

CSR promotion in the
supply chain

Improving Customer
Satisfaction•Holding briefings for CSR procurement suppliers; grasping the current conditions through cooperative agreements and check sheets•Feeding back survey results to suppliers; re-inspecting their management of designated chemical substances•Installing and operating the Supplier Hotline•Appointing an additional in-house consultant and launching an in-house consultation system for the Electronics field•Continuing the quality assurance audits for food-filling plants and food product packaging plants
Technological development •Establishing a high-definition printing technology to prepare Toppan’s organic Electro Luminescent (EL) displays for commercialization
aimed at value creation•Accelerating the development of commercial SNP chips and reinforcing efforts to put the chips to practical use
Products and services•Starting to grasp the actual orders for products that meet the Company-wide Standards for Universal Design and formulating new
developed with society
action goals based on the achievements
in mind•Holding training and educational seminars in the sales and planning departments to standardize information on Universal Design(UD) and how the discipline is understood, and to help the employees in those departments more ably solve Company-wide issues
Reinforcing Total Quality
Assurance•Promoting the UD application for communication tools issued by the Company
Respecting andLeveraging Human
AssetsMerit-based personnel•Entrenching the treatment system for managerial staff
policies•Implementing personnel rotation to reinforce Total Quality Assurance
Fostering anddeveloping human assets•Strengthening the synergy of divisions and departments through ongoing Human Resource Development Leader Meetings

Leveraging diverse
human assets
Realizing a safe andsecure working
environment•Helping job applicants more thoroughly understand the work done at Toppan through internships, the TOPPAN CAFÉ(a job hunting and career conference), and so on•Continuing educational seminars on the promotion of CSR activities in rank-based training•Taking advantage of the management skills of female employees through positive action* (a 2.75% ratio of females in managerialand supervisory positions is targeted for April 2008)•Making the most of the skills of experienced employees•Upgrading mental health measures at workplaces•Promoting action plans based on the law on measures to support the development of the next generation•Promoting efforts to shorten total working hours

Activities for Society
and Culture

Cultural contributions•Formulating policies on activities for society and culture•Promoting educational activities and providing information to educational institutions and cultural facilities in Bunkyo Ward, Tokyo•Holding 2 temporary exhibitions: Making Beauty—Early Japanese Lithographic Posters and ENCYCLOPEDIA•Holding 33 Toppan Hall sponsored concerts (including 6 Lunchtime Concerts, 2 Espoirs, and 2 Espoir Specials)

Commitment to theEnvironment

Activities for contributing
to local communities•Continuing to lend out Toppan Hall to a nearby music college and local elementary schools, and continuing to participate in the
Mejiro Ba-Rock Music Festival•Conducting ongoing activities to contribute to local communities at operational sites around the world; running an internationalsocial action program (Toppan Charity Concerts) to promote literacy improvement

Tree-planting activities•Continuing to support and participate in tree-planting programs*Proactive efforts independently initiated by a company to eliminate inequities in the treatment of male and female workers in the workplace resulting from outmoded concepts of genderbased division

24

TOPPAN CSR REPORT 2008

Targets and Results for Fiscal 2007

Main Activities and Achievements

Self Evaluation For Details•Established basic policies and rules for the internal control over financial reporting; grasped the current conditions of entity-level internal control (including
conditions in major related companies) and offered guidance on improvement

A

PP.30–33•Completed the documentation for the internal control of the operating processes and general control of IT; continued to enhance the quality of the documents•Checked current progress towards the creation of an internal control system in 16 divisions (including departments) and offered proposals for improvement•Collected materials and data to prepare a checklist and an evaluation manual and verified the current conditions•Had each head office division conduct a review in October 2007 to validate the risks identified and the countermeasures taken by the divisions and to examine
progress in the first half of the year; fed back these results to each division•Implemented risk assessments at the head office divisions in January 2008 and at the divisions in February 2008, to prepare for activities to be taken in fiscal 2008
•Implemented risk assessments throughout the entire Group, including the overseas subsidiaries

A
A
B
A

PP.32–33•Conducted earthquake-resistance checks for existing buildings; completed a brief investigation and simplified check as part of a four-step checking method;
formulated an adoption plan for a safety confirmation networking system and determined stockpiles at all of the operational sites•Held 29 follow-up training sessions for the Conduct Guidelines Promotion Leaders across Japan (515 participants)•Fourteen of the 632 Leaders were female (2.2% ratio of females) in fiscal 2007
•Held training sessions for the Conduct Guidelines Promotion Leaders in Shanghai and Beijing regions; had the overseas sites in Taiwan introduce their
Conduct Guidelines and implement Leader training sessions•Revised the rules and bylaws under the ISO/IEC 27001 standard and revised the guidebook to disseminate these revisions; introduced 47 management
measures and a monitoring system for workplace areas under tight security in accordance with the standard; established management guidelines forconfidential operations and the handling of manuscripts, artwork, securities, and printed materials, and instructed the divisions on strict compliance at the
Meeting of Information Security Managers; fostered about 50 qualified staff through training sessions for that purpose•Established and held the Information Security Promotion Meeting for Related Companies; investigated and identified areas in which personal information ishandled; conducted hearings on information security management and fed back the results; held study and training sessions to foster qualified staff•Held briefings across Japan and grasped current conditions at 1,835 suppliers through cooperative agreements and check sheets•Fed back the survey results to major material suppliers who participated in the head office briefings (survey results of those who participated in the division
briefings are now being analyzed); conducted hearings on their management of designated chemical substances•Engaged in discussions with related departments•Had three in-house consultants implement in-house consultations in the Information & Networks, Living Environment, and Electronics fields•Succeeded in passing another year without quality-related accidents in food-filling operations, through the ongoing quality assurance audits•Prototyped a panel and verified its excellent light-emitting property; enhanced pressrun stability through equipment improvements•Commenced collaborative research with partner medical institutions to evaluate the performance of SNP chips, and facilitated full-scale commercialization•Increased orders for UD products and services through business operations

B

A
A

PP.34–35

A

PP.36–37

CSR Management

A
B
B

A

B
A
A
A
A
B

Review of CSR Activities and New Initiatives

A
A

PP.44–45

PP.40–41
PP.42–43
P.43•Organized the Comfortable Design Exhibit and Universal Design in Printing Exhibit to encourage stakeholders and the public to think more deeply on UD; held
educational seminars in the sales and planning departments using training tools designed to standardize awareness and knowledge of UD and strengthen the
problem-solving capabilities of employees; held lectures outside the Company•Applied UD principles in major in-house communication tools; prepared a design manual to encourage employees to create products and services from theUD viewpoint and began to disseminate the manual across the Company•Held 3 briefings on the revised treatment system for managerial staff (2 for all of the managerial staff and 1 for the department heads); evaluatedperformances based on the new system, fed back the results, and explained the details of the system at feed-back interviews, as needed•Implemented more personnel rotation by transferring competent human assets into new job categories and divisions to enhance individual strengths, improveorganizational productivity, and reinforce the Company’s market competitiveness and Total Quality Assurance structure (transferred 595 employees, mostly at
the managerial level)•Periodically (quarterly) held the Human Resource Development Leader Meetings; verified the planning and implementation of human resource development
programs in each department, presented new actions taken, consolidated opinions on Company-wide issues, and held training sessions across the Company•Held an internship program to introduce students to the business world in general; held a new virtual internship program on the website (916 students
participated on a cumulative basis); held the TOPPAN CAFÉ to counsel students on job hunting•Held lectures, paper tests, and cleanup activities at Company-wide training sessions for new employees; held lectures at training sessions for new managers•Achieved a 3.2% ratio of females in managerial and supervisory positions as of April 2008, through the intensive promotion of positive action

S

AS

PP.54–55•Rehired post-retirement employees on a broad basis to make the most of their knowledge, skills, and expertise•Set up a mental management program to encourage creative activities for enhanced stress management in collaboration with institutions outside theCompany; continued to hold mental health training sessions in rank-based training and new employee training•Promoted measures to foster the next generation under the first action plan and acquired certification as a qualified general proprietor; formulated andreported the second action plan
•Periodically organized labor-management projects to shorten working hours at the operational sites and examined and implemented actions suitable for thecurrent situations found at sites individually; decreased the average overtime hours worked throughout the Company in fiscal 2007 (third consecutive year ofovertime reduction)•Continued to consider policies by reexamining various social issues, based on suggestions proposed by external stakeholders at the CSR Promotion Study
Group held in February 2008
•Participated in local activities hosted by the Bunkyo Academy Foundation and carried out educational promotion activities for local residents of every age;cooperated with the Bunkyo Muse Festa and Bunkyo Exhibition; won Kids Design Award and Good Design Award in recognition of the summer vacation
workshop held at the Printing Museum, Tokyo•Held 2 temporary exhibitions: Making Beauty—Early Japanese Lithographic Posters (from April 7 to June 3; 7,310 visitors) and ENCYCLOPEDIA (fromSeptember 22 to December 9; 9,348 visitors); cultivated a new base of visiting researchers and educational professionals•Held 30 Toppan Hall sponsored concerts (including 6 Lunchtime Concerts to discover talented young musicians and 2 Espoirs and 2 Espoir Specials tofoster talented young musicians around the world)•Lent out Toppan Hall to a nearby music college and local elementary schools, provided Toppan Hall as a venue for the Music Competition of Japan, and took
part in the Mejiro Ba-Rock Music Festival for 2 performances•Continued activities to contribute to local communities at operational sites around the world by sharing information on the activities undertaken by theoperational sites in fiscal 2006; ran the international social action program (Toppan Charity Concerts) to help increase literacy rates among children who facedifficulty in accessing education•Continued to support and participate in tree-planting programs

A
B

PP.50–51

A
A

PP.52–53

A

PP.56–57

A
A

A
A

B

PP.46–47

A

A
A
A
A

PP.48–49

A

P.79

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

TOPPAN CSR REPORT 2008

25

CSR Management

Review of CSR Activities and New Initiatives

Stakeholder Dialogue
Toppan seeks CSR initiatives satisfactory to all stakeholders throughplanning and assessment based on dialogues with society.

Establishing the CSR Promotion Study Group
Toppan engages in dialogues with various people and draws
great benefits from their views on ways to promote CSR activities. Throughout fiscal 2007, the Company has been studying
the current CSR promotion issues it faces and examining how
its earlier dialogues have related to the activities it has taken
so far. Henceforth, Toppan will be developing more compelling
activities for both the Company and society by tightening thelinks between these examinations and the Plan and Check
steps in the PDCA cycle of its CSR activities.
For this purpose, Toppan has established the CSR Promotion Study Group, a body made up of the Director in charge of
CSR, general managers of relevant departments, and external
CSR experts. To discuss CSR promotion efforts on a regularbasis, the first meeting of the study group was held in February
2008.
Towards More Compelling CSR Activities

Purpose of the First Meeting of the CSR Promotion StudyGroup
To collect views on Toppan’s CSR action points,
indicators, and measures
To seek expert views on the Company’s CSR plan for fiscal
2008, including the action points, the indicators used to grasp
and disclose the effects and developments of the activities,
and the actual measures taken (➞P.28 and P.64).
Major Opinions from Stakeholders
1. How to Define CSR
CSR: Steps a company takes up anew for society
CSR is the steps a company takes up anew to address social
issues in recognition of the growing roles expected from society towards companies.
Solution business in the age of CSR
While CSR activities through core businesses have become
standard practice for companies, CSR for addressing social
issues has grown more important, as has conventional CSR
for creating a more affluent society.

Act

Plan (Dialogue)

Check (Dialogue)

Do
IExamining the action
points, targets,indicators, etc.

IAssessing results
IExamining future
action to be taken

2. How to Promote CSR
Dialogues inside and outside Toppan
Toppan should identify important issues facing society throughextensive dialogues with stakeholders inside and outside theCompany. Dialogues may also engender effects such as dissemination, understanding, and activation, especially within
the Company.

Outline of the First CSR Promotion Study Group■ DateFrom 13:30 to 16:30 on February 25 (Mon), 2008
■ Participants
Stakeholders
Five experts*See the names, positions, and photos (right)
Facilitator
Mr. Fumitake Sakamoto, Witan Associates Limited.
ToppanMr. Shingo Kaneko, Managing Director, head of the Corporate Planning
Division, and Director in charge of CSR
Mr. Tsuneaki Hagiwara, Senior General Manager of the Legal Affairs
Division, the division in charge of CSR promotion
Eighteen more persons from the divisions of the head office■ Purpose of the First Meeting
To seek expert views on Toppan’s CSR topics, individual action points,
and proposed indicators for assessing the targets and achievements

26

TOPPAN CSR REPORT 2008

Mr. Yukihiro Ueno

Mr. Yukio Okubo

Vice President, Shizuoka Universityof Art and Culture
Researches social information, cultural sociology, and CSR with anemphasis on stakeholder communications.

General Manager, Works Institute,
Recruit Co., Ltd.
Founded the Works Institute,installed as General Manager there
in 1999. Specializes in humanresource management, labor policies, and career issues.

Stakeholder Dialogue

Review of CSR Activities and New Initiatives

3. Issues to Focus on
Toppan should formulate strategies based on the impacts ofboth global issues (climate change and conservation of biological diversity) and domestic issues (the declining birthrate,
the aging population, and population decreases) on Toppan
and on society. Most importantly, the Company needs to establish a higher target for the reduction of total CO2 emissions.

human assets, activities for society and culture, and commitment to the environment. In fiscal 2007, the Company went
on to revise the themes according to the previous activities
and latest CSR trends. In doing so, Toppan sought stakeholder views on the assumption that the Company would be
performing its CSR activities based on the eight new themes(material topics) from fiscal 2008 (➞P.28 and P.64).
Toppan heeds the view that the Company should selectsocial issues with serious impacts on both Toppan itself andsociety, and focus on them more intensively than before.
Toppan will be examining this view as it works throughout fiscal 2008 to develop more compelling CSR activities satisfactory to all stakeholders.
Examining the highly effective indicators
The study group provided Toppan with views on the indicators
the Company previously disclosed in CSR reports. Toppan willcontinue to disclose quantitative data based on the existing
indicators in this report, while examining new indicators appropriate for the social issues of more intensive focus and theactivities to be stressed.

CSR Management

Highly effective indicators
Toppan should examine a plan for setting more highly effective
indicators for its important action points, rather than relying
only the quantitative data determined through CSR activities.
The Company should refer to qualitative assessments of target
stakeholders and external indicators to establish highly effective indicators for this purpose.
Leveraging business resources effectively
Toppan should grasp long-term social trends and choose whichissues the Company can best resolve with its own resources
through business operations and activities as a corporate
citizen.

Responding to the Opinions (Issues to be examined by
Toppan in fiscal 2008)
Selecting social issues and related actions to focus on
more intensively in the futureToppan has promoted CSR activities under the six priority
themes set out in 2003: corporate governance, compliance,
improving customer satisfaction, respecting and leveraging

Mr. Koichi Kaneda

Mr. Toshihiko Goto

Mr. Toshihiko Fujii

Mr. Fumitake Sakamoto

CSR Expert,
CSR Promotion Department,
Daiwa Securities Group Inc.
Widely promotes CSR for his company and other financial institutions.
Highly knowledgeable on collaboration with NPOs.

Chair, Environmental Auditing
Research Group
Plays an active part in overall CSR
topics focused on the environment
as a member of the steering committee, Global Compact Japan
Network.

Consulting Fellow, ResearchInstitute of Economy, Trade andIndustry, Incorporated
Administrative Agency (IAA)
Took charge of lobbying against EU
and product-related environmental
regulations as a member of the
Ministry of Trade and Industry (thecurrent Ministry of Economy, Tradeand Industry) of Japan. Specializes
in European CSR.

Facilitator
Senior Consultant,
Witan Associates Limited.
Consults on PR and CSR activities
for corporations and provides management assistance for NPOs.

TOPPAN CSR REPORT 2008

27

CSR Management

Review of CSR Activities and New Initiatives

Targets and Measures for Fiscal 2008
Toppan will promote a set of measures focused on each of eight topics in fiscal 2008.
•In fiscal 2007, Toppan reviewed its six priority themes (material topics) to date.
•The Company received opinions on targets and measures at a stakeholder dialogue held in February 2008 (➞P.26). The issues
pointed out in the dialogue will be examined in fiscal 2008.

Stakeholders
All stakeholders

Customers

TopicsComplying with laws, regulations, and corporate ethics

Action Points
Heightening awareness of laws, regulations, and the Conduct
Guidelines through compliance promotion activities

Reinforcing information risk management

Establishing an information security management structure towards
the complete elimination of information-related accidents

Conserving the global environment(See P.64 for the Environmental Targets for fiscal 2008)
Developing business operations to address social issues andEnsuring product safetyassure product quality and safety•Realizing Total Quality Assurance and creating “dedicated products” Quality assurance and enhancement•Striving to solve social issues with technologies acquired throughprinting

Providing products and services to help solve social issues

Business partners

Establishing a trusted supply chain•Collaborating with suppliers to promote CSR initiatives throughout
the entire supply chain

Performing business deals strictly compliant with the CSR
Procurement Standards

Communities

Contributing to society, community, and culture•Recognizing prevalent social issues from a global viewpoint andstriving to resolve them as a mainstay of information and culture•Facilitating cultural development as a mainstay of information andculture in harmony with local communities

Social contributions

Community contributions

Cultural contributions

Shareholders andinvestors

Employees

Disclosing information in a fair and open manner to enhancetransparency•Disclosing detailed information on business performance in a fairand open manner to enhance transparency
Respecting and leveraging human assets•Providing a safe and secure working environment for diverse
employees (precious assets for the Company) and becoming
a company offering job satisfaction by fostering and developing
human assets through appropriate personnel treatment systems

Enhancing IR activities

Realizing a safe and secure working environment

Merit-based personnel policies
Leveraging diverse human assets

Fostering and developing human assets

28

TOPPAN CSR REPORT 2008

Targets and Measures for Fiscal 2008

Targets——

Launching energy-related businesses for the future
Expanding businesses in the life sciences
Adapting to the aging society

Expanding opportunities to communicate with local communities
and making contributions suitable for local needs

Contributing to society through the provision of high-quality
information, endeavoring to elevate the roles of printing and relatedindustries, striving to establish the study of printing culture,contributing to the communities around the operating sites, andsupporting educational institutions

Disclosing Company information promptly and improving access tothe information once it is disclosed

Respecting basic human rights
Ensuring occupational safety and healthReinforcing countermeasures against fires and disasters
Promoting healthcare and health enhancement

Supporting work-life balance by (1) shortening total working hours

Supporting work-life balance by (2) creating workplaces where
employees can strike a balance between working and raising children
Creating better working environments through partnerships
between labor and management
Operating personnel treatment systems appropriately
Providing an open environment for recruitment
Supporting individual career development
Promoting positive action
Supporting second careers for retired employees
Promoting employment of persons with physical disabilities
Leveraging non-regular employees
Fostering highly motivated employees based on “conduct of highvalue”

Review of CSR Activities and New Initiatives

Passing down cultural assets
Disseminating the CSR Procurement Standards to all of Toppan’s
suppliers and encouraging the suppliers to implement thestandards
Establishing a management and assurance structure for chemical
substances
Mutually enhancing corporate values through strengthened
partnerships
Enriching programs to address social issues

CSR Management—
Preventing accidents relevant to the Product Liability (PL) Law andthe revised Consumer Product Safety Law
Enhancing customer satisfaction (analyzing the degree of customer
satisfaction under ISO 9001 and applying the results to business
operations) and preventing serious quality-related accidents
concerning performance or functions

Main Measures in Fiscal 2008
•Disseminating the Conduct Guidelines through the Conduct Guidelines Promotion Leader system•Establishing the Conduct Guidelines at overseas subsidiaries (in the U.S.A. and Southeast Asia)•Continuing in-house education on laws and regulations such as the Antitrust Law and the
Subcontract Law•Carrying out special audits to eliminate accidents caused by human error•Expanding workplace areas under tight security, including areas where information other thanpersonal information is handled, and formulating, disseminating, and thoroughly implementing
measures to control the security areas•Disseminating the operating rules on confidential operations and the handling of manuscripts,
artwork, securities, and printed materials•Developing Company-wide activities for acquiring ISO/IEC 27001 certification•Conducting questionnaire surveys to assess secular changes of management levels—•Establishing a system under the Product Safety Management Guidelines in QMS (ISO 9000 series)
and verifying compliance with the guidelines through audits•Continuing quality education using standardized in-house textbooks•Continuing inspections led by directors to eliminate quality-related accidents•Assuring and enhancing quality based on QMS (ISO 9000 series)•Improving quality by leveraging intellectual property and preventing infringements of rights held byothers•Developing components for fuel cells•Developing SNP chips for genetic analyses in medical institutions•Researching age-related changes in color perception and applying the acquired knowledge todevelop new products or services•Producing and exhibiting virtual reality reproductions of important cultural assets•Completing work to disseminate standards to all suppliers within fiscal 2008
•Conducting a hearing for 30 suppliers on the current implementation status based on questionnaire
results in fiscal 2008
•Meeting with suppliers to discuss the certification of non-usage or zero-content of chemical
substances designated by the Company•Collaborating with suppliers to hold presentations and study meetings on CSR procurementrelated cases•Holding Toppan Charity Concerts to promote literacy improvement•Developing a new program focused on support for literacy improvement•Discovering new social needs through interviews with international and domestic NGOs
•Holding plant tours and practical training sessions at plants•Organizing environmental cleanup, beautification, and crime- and disaster-prevention activities in
the communities around operational sites•Participating in local events•Promoting environmental communication activities<Printing Museum, Tokyo>•Reviewing the General Exhibition Zone for the 10th anniversary in 2010 and holding temporary
exhibitions and lectures•Holding a summer vacation workshop, strengthening the system for school visits, and cooperatingwith the Bunkyo Academy Foundation in Bunkyo Ward, Tokyo, as in earlier years<Toppan Hall>•Holding Lunchtime Concerts to discover talented young musicians and Espoirs to foster talented
young musicians, as in earlier years•Renewing the IR website•Holding public meetings to announce financial results and distributing communication tools, as inearlier years•Enlightening employees on basic human rights through rank-based trainings•Carrying out activities led by the Safety and Health Committee as core components of theCompany’s TPM activity, as in earlier years•Implementing drills on various themes, including a comprehensive disaster-preparedness drill•Arranging regular medical checkups and encouraging all employees to receive them
•Offering healthcare guidance to employees in need of lifestyle improvements•Enlightening employees on healthcare by distributing various tools•Having managerial staff control the overtime hours of subordinates•Continuing efforts at each operational site through partnerships between labor and management•Encouraging employees to take annual paid holidays•Disseminating and appropriately applying various systems for childbearing and childrearing•Holding the business councils and various special committees•Examining the matter at the labor-management committee in order to create a working environment
amenable to enhanced job satisfaction•Operating personnel-treatment systems appropriately based on individual competence and achievements•Providing opportunities to enable many people to apply for recruitment•Expanding the internship programs•Introducing a learning management system (LMS)•Further promoting the appointment of female employees to managerial and supervisory positions•Providing opportunities for continued employment for post-retirement employees under the Senior
Reemployment System•Promoting employment of persons with physical disabilities, mainly through the special subsidiaryestablished to employ them•Appointing non-regular employees to regular positions based on individual willingness and abilities•Providing training of various forms suitable for actual business conditions (rank-based,
department-based, or optional or selective training) and implementing personnel rotation to foster
human assets who can handle products of various sorts

TOPPAN CSR REPORT 200829

Corporate Governance

CSR Management

Corporate GovernanceToppan is reinforcing corporate governance by strengthening its auditing andsupervisory functions and improving the transparency of its corporate management.

Toppan’s Corporate
Governanceto secure the propriety of business operations within the Group under theRelated Company Administration Regulations. Toppan aims to enhance profitability and provide products andservices backed by the integrated
strength of the Group by leveraging thetechnology and expertise of Group companies and promoting the effective useof production assets.

Toppan places top priority on threeissues in its corporate management:
developing continuously, raising its corporate value, and winning the approvalof shareholders, customers, and society
as a whole. While the Company isequipped with the Board of Corporate
Auditors under the Company Law, it has
strengthened the propriety and effectiveness of its governance system by
establishing the Management Audit
Office, the Compliance Department, andthe Ecology Center.
Toppan’s governance is geared tomaximize the corporate value of theentire Group with closer cooperative
relationships among Group companies

The Directors, Board of Directors,
and Various Meetings
Toppan has 30 directors on its board(as of the end of March 2008). Board
meetings are held monthly and whenever a pressing matter requires action
or deliberation.
Especially important management

themes are examined beforehand inManagement 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 otherdirectors acting as division chiefs cometo these meetings to discuss and examine measures and policies directly
related to the Company’s businesses
from various perspectives.
Corporate Auditors, Board of
Corporate Auditors, and Audit Firm
Toppan adopts a corporate auditors
system. Three of the five corporate
auditors are external (as of the end of
March 2008). In accordance with theaudit standards established by the

Toppan’s Corporate Governance Structure
Meeting of Shareholders
Appointing or dismissing

Appointing or dismissing

Appointing or dismissing

Board of Directors
Auditing

Auditing
Selecting or demitting

Supervising

Crisis Management Committee
Responding to emergencies

Directors in charge

Auditing

President & CEOGroup companies

Management Committee
Considers issues prior toboard of directors’ meetings
Investigates and audits the legality andappropriateness of operational activities

Compliance Department

Promotes, verifies, and audits the strict
observance of laws and regulations andthe establishment of ethical businesspractices

Ecology Center

Coordination, supervision, and verification of Toppan’s environmental activities

Instructing

National Conduct Guidelines
Promotion Supervisors
Other organizations for control

Chief information security
manager

Safety and Health Committee
National Eco-protection Committee

TPM National Conference

Working together

30

TOPPAN CSR REPORT 2008

ReportingAssistingGuiding

Auditing

Corporate Auditors Office

Audit firm

Management Audit OfficeObserving andguiding

Relevant head office divisions(mainly those responsible
for monitoring laws andregulations) check, evaluate,
and improve the legality andpropriety of operations indivisions

Advising and counseling(Board of) Corporate Auditors

Business Divisions

Special Committee (for defending
against takeover bids)

Corporate GovernanceToppan has had KPMG AZSA verify
the propriety of the Company’s accounts
through audits to enhance the reliability
and transparency of the Company’s
financial information.

Strengthening Audit
Functions
The Management Audit Office at Toppan
is established independently from theoperating departments. The primary
purpose of an audit, as Toppan defines
it, is: to fairly and objectively examineand evaluate the whole of corporate
management systems and the conditions of the business operations, from

Corporate Governance

Remuneration to Directors andCorporate Auditors
Remuneration to directors is determinedat the Board of Directors by the endorsement of the Meeting of Shareholders.
The amounts remunerated are set basedon considerations of the performance,
responsible roles, and fulfillment of theoperational targets of each director.
In fiscal 2007, the total annual remuneration to directors was 1,217 million
yen and the total annual remuneration
to corporate auditors was 95 million yen.

the viewpoint of legality and rationality;
to keep the Company’s property intact
and enhance managerial efficiency
through the provision of information andthe offering of advice and proposals for
improvement and streamlining based on
evaluation results; and thus to contributeto the Company’s development.
The audits by the Management Audit
Office in fiscal 2007 included management audits and operation audits for 10
departments mainly in subsidiaries
around the world, and follow-up audits
for 17 departments.
The management audit reviews andevaluates the effectiveness of risk control and the consistency between business activities and business goals. The
operation audit verifies the current status of compliance with laws, regulations,and in-house rules, the mechanisms toprevent unethical practices, and the
obstacles to efficiency and accuracy indaily operations. The follow-up audit verifies improvements of issues pointed out
during audits conducted in the previous
fiscal year.
To make Toppan an even better company, the office feeds back the problems pointed out by audits to the

CSR Management

Board of Corporate Auditors, the corporate auditors regularly hold board
meetings based on the audit policies
and plans for the current fiscal year. They
also attend important meetings, including those of the Board of Directors andManagement Committee. The head
office, main operational sites, andrelated companies are regularly audited
and advised by the corporate auditorsfrom a preventive perspective to ensure
the legality and effectiveness of the operations of the directors and departments
and smooth and appropriate corporate
management in line with regulations andCompany policies.
Toppan strives to audit effectively
based on a three-way audit approachthrough the cooperative efforts of theBoard of Corporate Auditors, the audit
firm KPMG AZSA & Co., and internal
audit-related departments at the Company, notably the Management Audit
Office. From the viewpoint of consolidated operation management, theBoard of Corporate Auditors of the
Toppan Group also regularly meets toimprove the effectiveness of the audits
by the corporate auditors on a Groupwide basis.
Internal Audits in Fiscal 2007
Audit Items
Management audit,
operation audit

Follow-up audit

Internal control
enhancement

Fiscal 2007 Results

Verifying progress of the Medium-term ManagementPlan

1 division

Grasping current conditions of the large-scale projects

7 domestic subsidiaries

Efficiency, compliance, labor management, and otheroperating conditions in departments

2 overseas subsidiaries

Comprehensive audit of divisions

4 divisions

Audit of domestic subsidiaries

5 subsidiaries

Audit of overseas subsidiaries

8 subsidiaries

Verifying progress in the establishment of internal
control systems

16 divisions

Preliminary hearing to prepare for implementation

1 domestic subsidiary

See the following reports for details on corporate governance:
ICorporate governance reports: available from a “search for corporate governance information”
service provided by the Tokyo Stock Exchange Group(http://www.tse.or.jp/tseHpFront/HPCGDS0701E.do?method=init&callJorEFlg=1 [in Japanese])
IFinancial statements: available from EDINET (Electronic Disclosure for Investors’ NETwork)(http://info.edinet-fsa.go.jp/ [in Japanese])

TOPPAN CSR REPORT 2008

31

CSR Management

relevant departments and proposesmeasures for improvements when necessary. The audit results are reported to
the President & CEO, directors in chargeof relevant departments, and the corporate auditors whenever necessary.
In addition to the above-mentioned
routine audits, the Management Audit
Office performed pre-investigations tograsp progress in the establishment ofinternal control systems related to financial statements for 17 departments infiscal 2007. The results of these preinvestigations will be used as basic datawith which to evaluate the conditions of
implementation and operation in the
future.

Auditing and Supervisory
Functions by theCompliance Department andEcology Center

Corporate Governanceof corporate ethics. Other department
functions include employee educationon compliance with the Conduct Guidelines and existing laws and regulations,and internal audits conducted collaboratively with quality assurance departments to improve the effectiveness of
security management and ensure allforms of information security, including
personal information protection.
The Ecology Center audits the operational sites to support their environmental efforts. The center requests thesites to submit Improvement Plans,monitors the progress and effects ofthese plans, and creates mechanisms
to unfailingly achieve improvement
goals. The center now adheres to andevaluates compliance with various laws
and regulations related to the environment and even stricter in-house management standards.

The Compliance Department createdunder the Legal Affairs Division spearheads efforts throughout the Company
to ensure compliance with laws and regulations and to firmly establish a system

Risk Management Structure
at Toppan
Toppan manages risk comprehensively
to avoid risk and minimize the losses
incurred when events at risk occur.
Based on the Company Law, theCompany established a set of Rules andOther Systems for the Management of
the Risk of Loss under the Basic Policy
for Establishing the Internal Control
System resolved at the Board of
Directors meeting in May 2006. Under
these Rules and Other Systems, theCompany has set up a systematic risk
management framework, a structure
under which the responsibilities for risk
management are allotted to specific divisions in the head office based on thetypes of risk involved. Within this framework, the directors in charge of eachrelevant division are responsible for taking measures to prevent, avoid, and correct each type of risk. Toppan, moreover,holds a weekly Risk Management
Liaison Meeting for the sharing of information among the persons in charge ofrisk management in the divisions of the

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

Accidents or complaints related to products

Accidents related to main systems
Accidents at the workplace, traffic accidents, and other accidents involving employees
Debt-related incidents
Accidents or disasters related
Legal problems with orders received
to company operations
Leakage of personal information or internal confidential information
Accidents or disasters related to fires or explosions
Illegal activity related to the storage of solvents, management of hazardous chemicals, etc.
Damage to the company’s internal computer system due to cyber terrorism, illegal access
Defamation, slander, and other or use of company information, or leakage of personal information or internal confidential
information
criminal damages
Crimes against the company (threats, kidnapping, robbery)
Unreasonable demands from antisocial organizations, deals between business partners andRelationship with antisocialorganizations
antisocial organizations
Material losses or personal accidents suffered by customers or the company due to
Natural disasters
earthquakes, wind or water damage, lightning, etc.
Risk in business management Shareholder derivative lawsuits, hostile takeovers
Unlawful activities related toViolations of the Subcontract Law, illegal activities with business partners
external contracts
Infringement of intellectual
Infringements of patents, trademarks, copyrights
property
Environmental problems
Violations of environmental laws or standards, illegal disposal of industrial waste
Risk in overseas business
Product accidents, environmental problems, fires or natural disasters, damage to human or
activities
physical resources caused by international conflicts or terrorism, etc.

32

TOPPAN CSR REPORT 2008

Division
Manufacturing Management
Business Innovation
Personnel & Labor Relations
Finance & Accounting
Legal Affairs
Legal Affairs
Manufacturing Management
Manufacturing Management
Business Innovation

Personnel & Labor Relations
Legal Affairs
Personnel & Labor Relations
Legal Affairs
Manufacturing Management
Legal Affairs
Manufacturing Management
International

Corporate Governance

Responding to the Financial
Products Exchange Law

and regulations in each of the head
office divisions. These personnel review
the in-house rules and regulations controlled by each head office division twicea year and determine points to revise,
add, or abolish as needed.
In fiscal 2007, Toppan systemized
management of the in-house rules andregulations controlled by the head officedivisions, to make it easy for employees
to instantly access the latest editions orrevisions of the rules and regulations
when necessary. Efforts to reinforce
internal control in fiscal 2008 will be
accelerated through the introduction of
trial management systems in several
divisions, with the aim of Company-wide
installation of full-fledged systems.

Corporate Governance

The Finance & Accounting Division
played a key role in a Company-wide
project to establish internal control overfinancial reporting in compliance with therequirements of the Financial Products
Exchange Law.
Toppan worked in fiscal 2007 to sortout issues to be improved in its entitylevel internal control over financial reporting, and strived to improve them. As partof these efforts, the Company has formulated basic policies and internal control rules on financial reporting toconcretize the basic terms, structures,and responsibilities in Group-wide implementation and operation. Briefings andin-house newsletters have been promulgated to disseminate these policies andrules to all Group employees.
Toppan has also completed documentation to establish internal control
for operation processes and IT-related
matters. The Company will disseminate
and improve the details of the documents after fiscal 2008.
The Management Audit Office will
evaluate the progress of the implementation and operation of internal control
from a managerial viewpoint in the
future.

CSR Management

head office. The Company has thus
established a practical structure withwhich to respond to risk.
The Rules on Risk Management havebeen established to resolve mattersregarding risk avoidance and the minimization of loss when an event at risk
occurs. Based on the rules, theCompany sorts out and evaluates possible risks once a year and examines
countermeasures to be taken.

Managing In-house Rules
and Regulations
Toppan reinforces its internal control byputting in place and managing in-houserules and regulations.
The Company has appointed supervisors overseeing in-house rules andregulations in the Legal Affairs Divisionand persons in charge of in-house rules

Countermeasures against Disasters
Under the basic plan for countermeasuresagainst disasters, Toppan has implemented
comprehensive disaster-preparedness measures in alliance with Toppan Security Service
Co., Ltd. In fiscal 2007, the Company held
disaster-preparedness drill and training sessions to handle Automated External Defibrillators (AEDs) in an emergency life-savingcourse. The Company’s fire-response squads
participated in Self-defense Fire Training
Competitions held by local fire departments,
and an evacuation drill was held in the head
office to rehearse for the eventuality of alarge-scale inland earthquake in Tokyo. Thisdrill included simulation drills for confirmationof disaster conditions, decision-making on
the need for evacuation, and the establishment of a disaster-countermeasure office by
the persons in charge of risk management.
The comprehensive disaster-preparedness
drills were conducted mainly to rehearse
earthquake countermeasures such as thedisaster-response actions to be taken,
specialized drills for safety confirmation,and practice for providing employees withinformation to help them return safely home
after a major quake.

To alleviate earthquake damage preemptively, Toppan has been working steadily
over the last three years to install a system
to receive the Earthquake Early Warnings
issued by the Japan Meteorological Agency.
Measures to reserve stockpiles for disasters
have also been taken. The water storage
facilities in the Company buildings can supply water in the aftermath of a major disaster. Steps are also being taken in cooperation
with the Japanese Consumers’ Co-operative
Union to install vending machines that will
dispense food, beverages, and goods for freeduring power failures caused by disasters.

Parabolic antenna to receive Earthquake Early
Warnings by radio

Disaster evacuation drill

Training session to handle AEDs

TOPPAN CSR REPORT 200833

Compliance

CSR Management

Compliance Promotion Activities
The Toppan Group thoroughly implements its Conduct Guidelines to ensure full compliance with laws,
regulations, and corporate ethics at all times.

Disseminating the Conduct
Guidelines
Toppan has established a set of Conduct Guidelines, along with a Corporate
Philosophy and Corporate Creed, as its
Corporate Structure under TOPPANVISION 21. The Conduct Guidelines
consist of Basic Principles and Specific
Conduct Guidelines (➞P.38) to express
the behavioral norms by which every
employee complies with laws, regulations, and corporate ethics.
Conduct Guidelines Promotion
Leaders
Toppan introduced a Conduct Guidelines Promotion Leader system in
October 2004 to further establish acompliance system and corporate ethics
through the full execution of the Conduct
Guidelines in daily operations. Under thissystem, a team of Conduct Guidelines
Promotion Supervisors (the “Supervisors”) and Leaders (the “Leaders”)
have been deployed in all production
subsidiaries and operational sites to promote the Conduct Guidelines in theworkplace. Six-hundred and ninety-nine
Leaders are now operating acrossJapan. A cumulative total of 1,819
employees have had experience as
Leaders since the commencement of
the system. The training programs wererevised in fiscal 2007 to further enhance
the awareness and knowledge of the
Leaders, though a change in the scheduling for the reappointment of Leaders
has postponed the next round of reappointments to next year.
Toppan will resume the reelection of
Leaders and hold specialist training sessions semiannually in fiscal 2008.
The current ratio of female Leaders is
2.2% (14 Leaders). The Company will
maintain its efforts to increase this rate.
Dissemination Activities by Conduct
Guidelines Promotion Leaders
The Leaders have formulated an optimal dissemination plan and promoted
dissemination activities based on theplan to heighten awareness of theConduct Guidelines in day-to-day operations. In setting the plan, they have tailored the details to actual conditions at
workplaces, including staff compositions, routine work patterns, and facility
environments.

The National Meeting of Conduct
Guidelines Promotion Supervisors isheld each October to share and discuss
the various outstanding activities at theworkplaces in the operational sites
across Japan.
Making Use of the Conduct
Guidelines Casebook and Online
Communication
Toppan gives every employee a Conduct
Guidelines Casebook, a Q&A style casebook describing actual situations that
can arise in daily work. The Leaders use
the casebook to disseminate information and provide rank-based educationon compliance.
The Conduct Guideline Notifications
posted on the Company intranet
heighten employee awareness on thelatest important issues to do with conduct in the workplace. The Conduct
Guideline Notifications issued in fiscal
2007 provided news and information on
insider trading, the Subcontract Law,
and recent revisions of the Road Traffic
Act and Consumer Product Safety Law.

Structure to Promote the Conduct Guidelines
President & CEO
Director in charge of Conduct Guidelines Promotion
Compliance Department
Divisions in the Company

Divisions of
the head office

Division heads
Conduct Guidelines Promotion Supervisors
The persons in charge of management: Business Strategy Department GM
The persons in charge of education: General Affairs Department GM

Conduct Guidelines
Promotion Leadersin sales and planningdepartments

Conduct Guidelines
Promotion Leadersin administrative
departments

Conduct Guidelines
Promotion Leadersin manufacturing
departments

Conduct Guidelines
Promotion Leaders

Sales promotion
managers, etc.

Managers or
supervisors of eachdepartment

Educational leaders

Managers or
supervisors of eachdepartment

Employees

34

Conduct Guidelines
Promotion Supervisor
Senior General
Manager of Legal
Affairs Division

TOPPAN CSR REPORT 2008

Employees

Training for the Conduct Guidelines Promotion
Leaders

Conduct Guidelines Casebook (in Japanese)Compliance Promotion Activities

Operating the Toppan
Helpline

Development in Overseas Group
Companies
In fiscal 2007, the Toppan Group newly
introduced Conduct Guidelines for subsidiaries in Taiwan to further promotecompliance in overseas Group companies. Conduct Guidelines Promotion
Leader systems were also started at
subsidiaries in the Shanghai and Beijing
regions that had established their own
Guidelines in fiscal 2006.

Education on Compliance with the
Antitrust Law and Other Laws andRegulations
Toppan continued its endeavors to attainfull compliance with the Antitrust Law,
the Subcontract Law, and other laws
and regulations in fiscal 2007. The Company held 21 educational and verification
sessions on compliance with the Subcontract Law, mainly for the production
management departments in Japan,
and nine education sessions on compliance with the Antitrust Law, mainly forthe sales departments in Japan.

Compliance

Development in Group Companies
By fiscal 2006, thirty companies in the
Toppan Group, including the majordomestic companies, had establishedtheir own Conduct Guidelines as partof the Group’s internal control system.
The Group verified the status of theircompliance with these guidelines infiscal 2007.
From fiscal 2008, the Group companies will start to operate their Conduct
Guidelines Promotion Leader systems
by thoroughly disseminating the guidelines to their employees.

Compliance Education
Compliance Education
Specialist training to promote the Conduct Guidelines was provided for 515
Leaders in 29 sessions held acrossJapan from September to November
2007.
Toppan also implemented an ongoing series of compliance education in
rank-based training sessions for new
employees and newly appointed supervisors and managerial staff.

CSR Management

Toppan has been operating an internalreporting system called the Toppan
Helpline since August 2003. In accordance with the Whistleblower Protection
Act enforced from April 2006, theHelpline guarantees the rights of all persons who find a need to use it. This line
is kept open for use by directors andemployees, as well as temporary staff
and part-time workers.
When a legal violation or injustice isdiscovered, it is to be reported tosuperiors for deliberation. When an
employee’s superiors fail to settle a
problem, the employee is encouraged
to call the Helpline to report the matterwith his or her real name.
In fiscal 2007, the Helpline was usedin two cases, one involving power
harassment and one involving an improper payment of company expenses.
Both cases were strictly investigatedand appropriately dealt with to prevent
recurrence.

Expanding the Compliance
Promotion Structure

Toppan Helpline
Communicator

When a problem
is not settled

All employees
Reporting andconsultation

Superior
Reporting on
progress andresults,
Follow-up
communication

Internal reporting(emails or sealed
documents sent with theemployees’ real names)

Briefing on the Taiwanese version of the Conduct
Guidelines

ReceiverPresident & CEO or
Senior Corporate
AuditorInstructions
Reporting

Investigation andCountermeasure
Organizations

The Taiwanese versions of the Conduct Guidelines and the Conduct Guidelines Casebook

TOPPAN CSR REPORT 200835

Information Risk Management

CSR Management

Information Risk Management
The top priority in business operations at Toppan is to ensure safe management of information entrusted from
customers. The Company has striven to establish a secure management structure to prevent information leakage,
based on awareness of various risks inside and outside of the Company.

Reinforcing the Management
System in Areas under Tight
Security

Full-scale Revision of theCompany-wide Rules Basedon ISO/IEC 27001

In March 2007, an employee of a printing company was discovered to haveleaked personal information withoutauthorization. Recognizing the episodeas a wakeup call for the printing industry, Toppan took immediate steps todispel public distrust of the industry byreviewing its existing management structure and bolstering its system for preventing the unauthorized removal of
information.
Toppan takes the following measures
to secure personal information in designated areas for the handling of personal
information at 50 operational sites
across Japan.
1. The areas are classified into three levels of risk according to business
operations and strictly controlled
across the Company through management actions for each risk level.
2. In areas classified at the highest risk
level, operational sites are required toacquire ISO/IEC 27001* certifications
and reinforce the management ofentrances/exits, information access,and the monitoring of operations.

After years of ongoing review of the inhouse rules and bylaws since theirestablishment in 1991, Toppan introduced a set of thorough revisions basedon international standards in fiscal 2007.
The Company has established a system to inculcate every employee with adeeper awareness of risks inside and outside the Company, to allocate the responsibilities on managing information andsystem properties it handles to relevant
departments, and to verify the implementation of measures against risks.
Toppan has also strengthened its inhouse network platform by restricting
access to the Web, having employees
renew their passwords more frequently,
unifying the management of the servers
handling important information, and taking a host of other strict measures.
Based on the revisions of the Company-wide rules, Toppan revised the Information Security Management Guidebook
and distributed it to all employees, including temporary staff. This guidebook,
together with tests and other educational
activities across the Group, has bolsteredinformation security in the Company.

Strengthening Information
Management Foundations
through Human Asset
Development
Toppan fosters in-house proponents of
information security by holding training
sessions for employees who seek qualification to serve as the internal auditors
responsible for auditing the information
security management system (ISMS).
The sessions are held three times a year,
in January, March, and August. Internallyqualified employees are encouraged toacquire higher qualification as ISMS
assistant auditors. There are now 66
ISMS-qualified staff working at Toppan.
Toppan will be strengthening its information management foundations by working
to increase the number of qualified staff.

Reinforced Measures for
ISO 27001 Certification
Responding to customer demand for
security, Toppan has proactively acquired
ISO/IEC 27001 certification for more of
its operations.
In fiscal 2007, two operations acquired
the certification and one operation
expanded its scope. Two more operations have already launched efforts toacquire the certification within fiscal 2008.

Enhanced Security Level*ISO/IEC 27001
The global standard in information security management system(ISMS), defining comprehensive and specific frameworks and measures for information security management

Making process rules
appropriate for secure
quality control
Personal
information

Acquiring Privacy
Mark certifications forindividual divisions
Rules on the Managementof Personal Information
Information
security audit

Information
security

Operating procedures forindividual divisions
Rules on Information
Security Management
Fiscal 2005

36

TOPPAN CSR REPORT 2008

Making process rules
appropriate for secure
quality control
Establishing a Companywide management structure
to integrate the Privacy
Mark certifications
Information security
audit + questionnaire
surveys
Operating procedures forindividual divisions

Implementing management
measures to prevent theunauthorized removal of
information from designatedareas for the handling of
personal information
Making process rules
appropriate for secure
quality control
Acquiring a Company-wide
integrated Privacy Markcertification

Monitoring the designated areas for the handlingof personal information (in Japanese)

Information
security audit +questionnaire surveys
Operating procedures forindividual divisions

Integrating Rules on
Information Security
Management and Rules on
the Management of
Personal Information

Revising theCompany-wide rules
entirely based on
ISO/IEC 27001*

Fiscal 2006

Fiscal 2007

Training session for ISMS internal auditor
qualification

Information Risk Management

Eliminating Informationrelated Accidents throughPurpose-based Audits
Toppan endeavors to eliminate information-related accidents through various
audits and surveys.

Information Security Management Structure
President & CEO

Chief information
security manager

Management
Audit Office(Head of Corporate
Planning Division)

Meetings ofInformation Security
Managers
Conferring
andapprovingorganization
within the
Company

Administrative
office(LegalAffairs
Division)

DivisionsOperating andpromotingorganization
within the
Company
Information Security
Management Promotion
Committee
Corporate Manufacturing
Planning Management
Division
Division
Legal
Affairs
Division

BusinessInnovation
Division

Administrative
departments
handling
Web-related
businesses

Other
relateddivisions

Activities in Fiscal 2007
Meetings of Information Security Managers:
May and August 2007, March 2008
Regular meetings of the Information Security
Management Promotion Committee: weekly
Information Security Promotion Meetings for
Related Companies:
September and November 2007, February 2008
Various surveys•Audit on the handling of personal information:from June 2007 to March 2008
•Survey of actual conditions in Web-related businesses: November 2007, February 2008
•Verification of monitoring operations in areas
under tight security: February 2008
•Special audit: from February to March 2008
Education•Introductory training for monitoring software
installed in areas under tight security: from August
to September 2007
•Training for ISMS internal auditor qualification:
August 2007, January and March 2008
•Regular training for information security: from
September to December 2007
•Internal auditor training: from November 2007 to
February 2008
Other
•Revisions of information management rule books
and the Information Security Management
Guidebook: February 2008

The Toppan Group has honored the trustof its customers by taking thoroughmeasures to reinforce information management across the Group.
1. Developed measures to reinforce
information management for different
levels of security applying for theareas under tight security throughout
the Group (77 operational sites)
2. Established the Information Security
Promotion Meeting for Related Companies, a body to promote information security, in September 2007, andheld quarterly meetings
3. Held ISMS introductory training andinvited external lecturers to hold training sessions for ISMS internal auditor
qualification as Group-wide educational programs
4. Supported the ISO 27001-certified
Group companies in establishing information security management systems
and conducting internal audits
The Toppan Group will work to establish a secure management structure
across the Group to ensure the full prevention of information leakage accidents
caused by erroneous operations.

Information Risk Management

Audit on the Handling of Personal
Information (Quality control)
The Company audited quality control forall processes involving the handling of
personal information, from sales and production management routines to procedures in plants (or partner companies).
The principal concerns of the audits were
to determine whether individual procedures were appropriate and thoroughly
implemented, and whether all of theoperations were recorded.

Special Audit (to prevent accidents
from recurring)Not a single case of information leakage
has occurred at Toppan in fiscal 2007,
as in earlier years. However, three cases
arose due to incorrect operations in thehandling of information entrusted by customers. The Company reported them to
the Japan Information Processing
Development Corporation. In recognitionof the great importance of these cases,
the Information Security Management
Promotion Committee spearheaded
efforts to carry out special audits in alldivisions to prevent recurrence. Special
audits conducted in 17 operational sites
confirmed that secure countermeasures
to minimize risks had been fully taken.

Reinforcing Cooperation
within the GroupCSR Management

Internal Audit (Information security)
Toppan has focused on internal audits
to review and improve the operations of
information management system in the
Company on an ongoing basis. The
Company has been conducting theinternal audits from fiscal 2005 onwards.
In total, internal audits were conducted in 331 departments throughout
the Company by 224 auditors in fiscal
2007. The audits took 65 days to perform, counted on a cumulative basis.

Survey of Actual Conditions andOn-site Verification (by topic)
The Information Security Management
Promotion Committee has overseen
cross-divisional surveys on actual conditions and on-site verifications for highrisk operations.
•Information security management in
Web-related businesses•Management of the designated areas
for the handling of personal information

Towards Enhanced Reliability in
the Printing Industry
Toppan supports activities to enhance reliability in the printing industry. Toppan personnel recently chaired and led a subcommittee
to prepare a guidebook that will be used toposition Privacy Mark acquisition as a standard in the printing industry. Briefings are
now being held across Japan.

Head office

TOPPAN CSR REPORT 2008

37

CSR Management

Conduct Guidelines and Information Management Policy
Conduct Guidelines
Chapter 1: Basic Principles
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.
2. Maintaining public order and standards of decency
We will always be aware of our involvement with society, act with good
sense, and never act in a way that disturbs public order or that defies
common sense. We will sufficiently consider the effects of our operations on society and not act in a way that goes against public orderand 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, and operational and industrial standards applicable to our corporate endeavors.
Compliance with these laws and regulations forms the minimum standard of society’s rules and we will uphold them without fail. In addition,
we will act with a high sense of ethical and moral awareness in carrying out our operations. Even in situations when legal issues do notarise, we still cannot allow humanitarian, moral, or ethical problems todevelop.
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 our social
responsibilities and carry out sound operations that will not damage
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 and quality 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 natureand perform corporate operations that strive for reduced use of limited
resources and facilitate recycling.
Furthermore, we will conduct 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 the culture andcommercial 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 concealment ofillegal 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

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

38

TOPPAN CSR REPORT 2008

Information Management Policy
1. Employees shall comply with all internal rules on information management and manage information appropriately in full observance ofthe law and social order.
2. Employees shall collect information for appropriate purposes using
appropriate methods.
3. Employees shall recognize the value of information as an asset anduse information safely and efficiently for the stated purpose of use.
4. Employees shall safely manage information handled on behalf of customers to secure customer trust.
5. To ensure the appropriate management of information at all times,
the Company and its employees shall improve its information management system based on periodic reviews of social circumstances,
technology trends, and the latest revisions in information systems.
Established April 1, 2001

Social Report

For Customers
Reinforcing Total Quality Assurance

40

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

42

With Business Partners
CSR Promotion in the Supply Chain

44

With Communities
Cultural Contributions

46

Activities for Contributing to Local Communities

48

With Employees
Realizing a Safe and Secure Working
Environment

50

Merit-based Personnel Policies

52

Leveraging Diverse Human Assets

54

Fostering and Developing Human Assets

56

With Shareholders and Investors
Increasing Transparency andDistributing Profits Appropriately

58Social Report

For Customers

Reinforcing Total Quality Assurance
Toppan creates “dedicated products” with the consumer—the end user—always in mind,
to fulfill its commitment to Total Quality Assurance throughout every process in producing a product.

The Basic Concept ofToppan’s Quality Assurance

Activities in the Sales andPlanning Departments

Activities in the Technology
and Production Departments

The products manufactured in Toppan’s
plants bear the brand labels of the customer companies who use them for theirown products and services. Every customer requires its own specification forevery product it orders, and every specification requires a separate approachfor quality assurance.

The sales and planning departments at
Toppan play the role of comprehensive
producers, with a hand in every business process from submission of product plans to final delivery. They convey
customer requirements for quality, cost,and delivery (QCD) accurately to the relevant departments, redoubling theassurance of high quality. The sales andplanning staff sincerely respond to customers and proactively submit proposals for enhanced customer satisfaction
on a day-to-day basis.
Toppan invests considerable efforts
into quality education by publishing textbooks (10 sorts in total) for the sales
departments. The goal is to enhancequality assurance through intensive education on basic knowledge. These textbooks are also used in several Group
companies to advance QCD efforts
throughout the Toppan Group.

Toppan has established its own quality
assurance system to strengthen Total
Quality Assurance in the technology
and production departments responsible for realizing the quality required bycustomers.
When the production departments
receive the ideal production conditions
set by the technology departments, they
use the Total Productive Maintenance(TPM) technique to refine the conditions
towards further improved productivity
and the complete elimination of production defects.
Next, Toppan standardizes the refined
production conditions as rules in orderto maintain them under the ISO 9001
quality management system. Toppan
also strengthens its quality assurance
by verifying its management structure
through regular audits to maintain thequality that customers want and need.
The Company thus improves productquality through its own quality assurance
system based on integrated TPM andISO 9001 quality management.

Reinforcing Total Quality Assurance
Quality assurance is a concern not only
for the departments that produce
Toppan products. The departments
involved in marketing, R&D, planning,
design, sales, and delivery are all
responsible for assuring the quality of
every product for every customer.
This is why Toppan describes quality
assurance throughout every process in
producing a product as a “total” activity,
setting it as a top priority for its business management.

Total Quality Assurance in Toppan’s Business Activities
Planning

IDo we have a proper grasp of the customer’s demands?
IHave we uncovered needs the customer was unaware of?
IDo we have the technical development capabilities to create new
production methods?

Estimate
IHave we accurately calculated costs?

Receipt of Order40

Production
Instructions

IHave we issued production instructions that are proper in light ofquality, cost, and delivery requirements?

Production

IHave we delivered the quality the customer demands?

Inspection

IHave we properly inspected the product?

Shipment

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

TOPPAN CSR REPORT 2008

Quality Assurance for Intellectual
Property
Quality assurance for intellectual property isa crucial matter for Toppan, an enterprisethat works with creativity and inventive ideas
in all business processes, from planning toshipment, in every department.
Toppan is eager to file patents to protect
its intellectual properties, especially the technologies and business models the Company
derives from its most ingenious, inventive
concepts. At the same time, the Company
takes careful steps to avoid any infringementof the copyrights, trademarks, or other intellectual property rights held by other companies. This is essential to protect customer
companies from the risk of trouble or inconvenience in the course of business.
As one measure to avoid unintended
infringements, the planning departments
instruct employees and business partners on
copyrights and explain actual cases.

Reinforcing Total Quality Assurance

All of Toppan’s plants have been developing and conducting TPM activities
since the activities were introduced in
1997. Toppan has strengthened its competitiveness in quality, cost, and delivery
through concerted activities targetingzero production loss through equipment
modifications and enhanced employee
awareness.
The production departments have
had experienced in-house consultants
familiar with Company-specific technologies run a guidance system since fiscal
2004. These consultants direct individual improvement activities to enhancequality and reduce cost mainly throughindependently initiated maintenanceactivities, group activities, and dissemination of the 5S basic principles for optimal manufacturing—seiri (organizing),
seiton (tidying), seiso (cleaning), seiketsu(purifying), and shitsuke (nurturing).
Three in-house consultants offeredguidance on improvement activities in
20 plants in fiscal 2007.

Two operational sites newly acquired theISO 9001 certification in fiscal 2007 aspart of the Company-wide effort to haveall operational sites certified. Once certified, operational sites are subject to routine annual surveillance audits andreassessments once every three years
for renewal. To confirm whether ISO
9001 is appropriately and effectively put
into practice in each operational site, thehead office carried out 29 operationalsite audits in 27 sites in fiscal 2007, in
addition to the internal audits carried out
in all sites. Twenty-six internal auditor
training sessions were held to improve
the quality of the internal audits. These
activities continue to improve Toppan’squality management system.

Quality Assurance Cycle in
Manufacturing Departments

Audits on Food Container andFilling/Packing Business

Improvement by TPM Rootage by ISO
Thorough coverage through auditing

Required quality

TPM and ISO•Further
upgradesISO (auditing)•Dissemination to all
employees throughstandardization and education•Verification of thorough coverage

TPM•Assessment of ideal conditions•Improvement of the conditions prescribedfor eliminating defects in manufacturing

Audit Points•Agreement with customers•Quality assurance system•Management of equipment and inspection devices•Management of safety and sanitation•Steps to prevent the admixture of different products•Steps to prevent the admixture of foreign
substances•Steps to prevent the outflow of defective
products•Steps to prevent contamination•Traceability•Security•Education and training•Maintenance of systems and frameworks

Assuring Quality by Auditing
Toppan regularly audits its quality assurance activities to verify whether the
points improved through TPM activities
and defect prevention measures areproperly standardized in the manufacturing rules, whether the standardized
rules are accurately observed in manufacturing processes, and whether there
are possibilities for further improvement.
The audits in the food filling and packaging business are somewhat stricter, inlight of the exacting requirements for
quality assurance for safety and health.
These audits cover not only in-houseplants in this business, but also all operational sites, including those of partnercompanies. Toppan has adopted a certified approval system to ensure that
operational sites can manufacture only
after receiving the required ratings basedon audit results.
In fiscal 2007, the Packaging Divisioncollaborated with the head office in aseries of audits to verify that all operational sites had responsible quality
assurance practices in place.

For Customers

Rooting Quality Assurance
by ISO 9001

Social Report

Improvement Activities by
TPM

Complying with the Revised
Consumer Product Safety Law
Toppan established and disseminated abasic stance and guidelines on productsafety management to prepare for theenforcement of the Product Liability (PL) Law.
To accommodate the revisions of the Consumer Product Safety Law in May 2007, theCompany reviewed its stance and guidelines
to reinforce product safety management
as a step to complete its internal control
system.
In fiscal 2007, the head office disseminated the details of the revision to the divisions and reviewed the Company-wide
frameworks to ensure that product safety
management would meet the requirementsof a quality assurance system in conformity
with ISO 9001.

Operational Sites Audited•5 subsidiaries•23 other production partner companies

Passage of time
Integration of TPM and ISO
Improvement in product quality

TOPPAN CSR REPORT 200841

For Customers

Social Report

Technological Development Aimed at Value Creation/
Products and Services Developed with Society in Mind
Toppan uses the various technologies it has acquired in printing to develop products andservices responsive to social issues and needs.

Technological Development
towards 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 theanticipated needs of the future market.
The Company has successfully developed numerous products with enhanced
environmental benefits and high added
value by offering technical advantages
and systemized techniques. Development efforts are guided by analysis to
grasp the latest trends in the market andcustomers in close cooperation withsales and promotion departments.
In the area of production technology,
on the other hand, Toppan endeavors
to improve quality, shorten lead times,
and reduce costs by automating production lines, saving labor and energy,
and modifying processes in close collaboration with production departments.
Next-generation Products Developed
by Technology Evolved from Printing
Advances in technology acquired byprinting, surface processing, and theapplication of prepress technology tomicrofabrication have led to the development of next-generation products
such as color filters for large liquid crystal displays (LCDs), full-color organic
Electro Luminescent (EL) displays, andmedical chips for analyses.
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),
Toppan researchers collaborate withmany universities in Japan (including the
University of Tokyo, the Tokyo Instituteof Technology, and Tohoku University).
Toppan has also been active in technical cooperation with companies
around the world to provide products,
systems, and services with high added
value in sundry fields.

Toppan’s Map of Next-generation Product Technologies

42

TOPPAN CSR REPORT 2008

Data Processing
System Technology

IC Cards/Tags

Optical Design
Technology

High-security
Holograms

Semiconductor
Design and AssemblyBall SAW Sensors

Microfabrication
Technology

Full-color Organic
EL Displays

Thin-film Formation
and Coating
Technology

22 nm Photomasks

Formation (injection,
mold, etc.) andCutting Technology

Printing Technology

SNP Chips

Developing SNP Chips for
Medical Institutions
Toppan researchers take frequent forays into the life sciences, especially inthe fields of health and medical care.
The Company now cooperates withRIKEN and other entities to develop a
genetic analysis system with single
nucleotide polymorphism (SNP) chips for
medical application.
Towards Personalized Medicine
SNP chips are used for bio-molecularanalyses as part of a service called personalized medicine*. Toppan develops
and manufactures the chips with help
from the printing, microfabrication, andcoating technologies the Company has
acquired in its businesses so far.
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 and plan out
tailored treatment strategies.
If adopted on a widespread basis,
personalized medicine with SNP chips
will reduce adverse drug effects and*Personalized medicine: When patients undergo
personalized medicine, they receive optimal individualized therapies and prophylactic regimens
based on their genetic profiles. A close analogy
would be a ready-to-wear garment that fits one
person snugly and another loosely. When twopatients with the same symptom receive thesame drug, for example, slight differences intheir genetic profiles may cause them to responddifferently. A physician practicing personalized
medicine attempts to bring about optimal drug
responses from his or her patient by identifying
the patient’s genetic predispositions, just as atailor fashions a perfect-fitting suit for a customer by taking exact measurements.

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

excessive dosing. This, in turn, will help
to limit the ever-rising expenses for medical care.
In fiscal 2007, Toppan asked collaborating medical institutions to conduct anongoing series of functional tests for pilot
SNP chips and proceeded to develop
commercial SNP chips applicable for
actual treatments in hospitals and clinics. Reinforced development efforts infiscal 2008 are expected to lead to thecommercial use of SNP chips soon.
Toppan intends to explore further
applications for SNP chips as it works
to establish personalized medicine with
SNP chips in Japan.

Challenges in Universal
DesignGenetic analysis system with SNP chips for
medical application

For Customers

Deepening the Awareness of UD in
Society
The Comfortable Design Exhibit andUniversal Design in Printing Exhibit wereforums held at the Toppan Koishikawa
Building to encourage shared thinking
on UD and deeper awareness about UD
for Toppan and its customers. Many
visitors came to the exhibits and learnedof various UD practices not only in

UD Efforts at Toppan Departments
The sales and planning departments
educated employees to standardize
awareness and knowledge on UD andstrengthen the employee’s problem-solving capabilities. At the same time, thedepartments have applied UD principles
to many of their products and services.
The packaging departments, meanwhile, are stepping up efforts to planand develop packaging materials thatare easy-to-use and easy-to-understandfor users. Orders for these UD packaging materials have been increasing.
Similarly, the information-related departments are offering more proposals anddeveloping more products and services
incorporating UD. These efforts will be
continued in the future.

Social Report

Toppan always devises and provides
products and services based on universal design (UD) principles in consideration of the user. As a company operatingin the information communication industry, Toppan has introduced UD to bringabout improvements in various fields ofcommunication between client companies and their own customers.
Toppan thinks of UD as a corporatesocial responsibility. Through its workwith UD, the Company creates fulfilling
lifestyles and coexists with society byproviding products and services infull consideration of as many people aspossible.

Toppan and its Group companies, butalso government agencies and pioneering companies.

UD paper containers
Comfortable Design Exhibit

Comfortable Design Exhibit

UD flexible packaging materials and plastic containers

TOPPAN CSR REPORT 200843

Social Report

With Business Partners

CSR Promotion in the Supply Chain
Under its CSR Procurement Guidelines, the Toppan Group promotes CSR initiatives throughout
the entire supply chain in cooperation with business partners.

Promoting CSR Procurement
The Toppan Group has established a setof CSR Procurement Guidelines to promote CSR activities in cooperation withbusiness partners involved in material
and equipment provision, production,and processing for the Group.
These guidelines consist of the Basic
Procurement Policy and the CSR
Procurement Standards. The Basic
Procurement Policy is the conceptual
platform for every employee involved in
the procurement operations to closely
observe. The policy states the following
six principles.
•Fairness/propriety•Compliance•Information security•Environmental consideration•Pursuit of QCD•Promotion/development of CSR
In order to deepen their understandingof the Basic Procurement Policy, theGroup incorporates the Conduct Guidelines, the Purchasing Rules, and the
Subcontract Law Compliance Manual in
education and training for employees.

The CSR Procurement Standards
stipulate the requirements to be satisfied by every business partner. The
twenty standards categorized into theeight separate areas covered by the
CSR Procurement Standards conformwith Toppan’s Conduct Guidelines, with
the CSR terms established by the Japan
Electronics and Information Technology
Industries Association (JEITA), and withthe requirements for quality, cost, anddelivery (QCD). Toppan asks its business partners not only to seek cost
performance, but also to pay attention
to society and the environment.

Encouraging Business
Partners to Comply with the
CSR Procurement Standards
The Toppan Group held 40 briefings withbusiness partners at 14 operational sites
across Japan in fiscal 2007. The business partners were asked to give theiropinions and demands, and to understand and cooperate with the Group’s
CSR procurement activities. In total,
1,835 companies participated as busi-

ness partners, including overseas manufacturers.
Business partners at the briefing wererequested to fill out a questionnaire survey to help the Group clarify how thoroughly they complied with the CSR
Procurement Standards. The survey
results have been compiled, analyzed,
and evaluated by the Group, and fed
back to the business partners one byone. The Toppan Group has also conducted on-site checks and exchanged
views on future initiatives to be taken at
the Group and its business partners.
The Toppan website posts theGroup’s CSR Procurement Guidelines,
as well as an email address exclusive
for inquiries.
To promote CSR procurement efficiently and effectively, the Toppan Groupwill be holding joint presentations withbusiness partners and installing the
Supplier Hotline, a portal for receiving
reports from business partners, in andafter fiscal 2008.

Toppan Group CSR Procurement Guidelines (revised from the Procurement Guidelines in May 2007)

44

Basic Procurement Policy
IWe impartially offer opportunities to all suppliers.
IWe comply with all domestic and overseas legislation and perform fairbusiness dealings based on corporate ethics.
IWe strictly control the information obtained through our procurement
activities.

IWe give full consideration to impacts on the environment.
IWe pursue QCD (Quality, Cost, Delivery) in order to meet the needs ofthe market.
IWe implement CSR initiatives throughout the entire supply chain.

CSR Procurement Standards
1. Basic human rights(1) The company respects basic human rights.
(2) The company does not carry out unjust discrimination in the treatment and employment of employees.
2. Public order, compliance with laws, fair business activities(3) The company does not carry out inappropriate profit sharing or
receipts.
(4) The company does not have dealings with any antisocial individual
or group.
(5) The company complies with laws, regulations, and government
notices applicable to business activities, such as company laws,
antitrust laws, subcontracting laws, labor-related legislation, andenvironment-related legislation.
(6) The company complies with laws protecting those who disclose
information in the public interest, and it protects the rights of those
who report internally.
(7) The company complies with legislation related to exports and withthe laws of the countries and regions in which it operates.
(8) The company does not allow child labor or forced labor.
(9) The company does not infringe intellectual property rights such as
patents, copyrights, and trademarks.
3. Management and disclosure of information(10) The company carries out appropriate management of confidential
information and personal information obtained through its dealings.

(11) The company strives to make timely and appropriate disclosureof information relating to matters such as the details of businessactivities, quality, and product safety.
4. The environment and safety(12) The company strives to use raw materials and components witha low impact on the environment.
(13) The company strives to devise processes with a low impact on
the environment for manufacturing and processing.
(14) The company carries out appropriate management of chemical
substances specified by Toppan.
(15) The company carries out appropriate disposal of industrial waste.
(16) The company strives to prevent work-related accidents and create a safe and clean workplace, and also works to ensure thesafety of employees in an emergency.
5. Improving quality(17) The company meets the standards for quality required by Toppan
and strives to improve quality.
6. Appropriate pricing(18) The company provides products or services at a price that iscompetitive in the market.
7. Stable supply(19) The company meets stipulated delivery dates and supplies items
safely and reliably.
8. Social contributions(20) The company engages in contributions to society.

TOPPAN CSR REPORT 2008

CSR Promotion in the Supply Chain

Managing Chemical
Substances

Complying with the
Subcontract Law

One important factor in building a recycling-oriented society is to purchaseenvironmentally-friendly products preferentially. In April 2002, Toppan introduced
a “green procurement” system that conforms to the Green Standards for Offset
Printing Services established by theJapan Federation of Printing Industries.
Toppan’s achievement ratio for ink underthese standards was 86.2% in fiscal
2007. Toppan’s Green Procurement
Standards (➞P.80) were adjusted toconform with the revisions of the Green
Standards by the Japan Federation of
Printing Industries in March 2006. The
Green Purchasing Network plans to
introduce a set of revisions to its purchasing standards in the Japanese market, in order to cope with the recent
emergence of recycled paper productswith fraudulent labeling on their used

With Business Partners

As part of its effort to comply with the
Subcontract Law, the Toppan head
office engages in a monthly collection
and review of the purchase orders sentout to business partners from the plan-

Green Procurement andGreen Purchasing

paper content. To keep up with the coming revisions, Toppan will consider revising its in-house standards accordingly.
Toppan adopted a Basic Policy ofGreen Purchasing for its office operations in January 1999. Under this basic
policy, the Company selects productsthat meet in-house “green purchasing”
standards and purchases them on acontinuous basis.

Social Report

The Company-wide Standards for theChemical Components of Raw Materials
established under Toppan’s CSR
Procurement Standards help Toppan totighten the management of the controlled and prohibited substances categorized based on the 24 groups ofsubstances designated by the Japan
Green Procurement Survey Standardization Initiative (JGPSSI). Each of theCompany-wide common standards is
supplemented by separate standards
set for business fields that require management systems for specific producttypes, such as packaging, electronic
components, and cards.
The Company is preparing to comply
with REACH* in cooperation with business partners.

ning, production management, and purchasing departments. The reviews thisyear confirmed that as in fiscal 2006,
there were no compliance problems infiscal 2007.

Green Purchasing Network (GPN)A nationwide network founded in 1996 to promote green purchasing in Japan. As of April 24,
2008, the network comprised 2,942 organizations (2,371 companies, 297 government institutions, and 292 private organizations). The
network announced its Purchasing Guidelines
for Offset Printing Services (GPN-GL14) inDecember 2001.

CSR Procurement Guidelines
http://www.toppan.co.jp/english/csr/policy.html

Briefings on CSR procurement for business
partners in Niigata, Japan*The Regulation on Registration, Evaluation,
Authorisation and Restriction of Chemicals: a
European Community regulation on chemicals
and their safe use, enforced on 1 June 2007

Briefings on CSR procurement for business
partners in Tokyo, JapanTOPPAN CSR REPORT 200845

Social Report

With Communities

Cultural Contributions
Adhering to its identity “as a mainstay of information and culture” under the Corporate Philosophy,
Toppan draws from its specialist knowledge in printing to operate cultural facilities andorganize cultural activities.

As a Mainstay of Information
and Culture

Activities to Contribute to
CultureEver since its invention, printing has contributed to the development of culture
and art through the conveyance of information. The information conveyed
through printing can amaze and leave
deep impressions. Activities to contributeto culture help Toppan live up to its identity “as a mainstay of information andculture” under the Corporate Philosophy.
Toppan Hall and the Printing Museum,
Tokyo, Toppan’s two main cultural facilities, were inaugurated as annexes to
the Toppan Koishikawa Building in commemoration of the Company’s 100th
anniversary in 2000. Since then they
have been venues for a host of culturalactivities sponsored and organized by
Toppan.
Group companies such as Tokyo
Shoseki Co., Ltd. (a publisher of school
textbooks) and froebel-kan co., ltd. (apublisher of children’s and picture
books) have also engaged in culturalcontribution activities. Toppan is eager
to contribute to the growth of not only
the Group, but the printing industry as awhole.

Printing Museum
The Printing Museum, Tokyo pursues
activities towards the establishment of a
new academia, the study of printing culture, to cultivate learning on the culturaldimensions of printing itself. More than
230,000 visitors have come to themuseum to date.
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 P&P
Gallery, Printing Workshop, VR (Virtual
Reality) Theater, specialized library, andmuseum shop. In the General Exhibition
Zone, the history of printing is presented
over a time line spanning five ages, fromits birth to the present. The Printing
Workshop, a space for education andtraining, has been used by over 150
institutions and organizations, including
companies, technical colleges, and elementary schools.
The museum held two temporary
exhibitions in the Main Exhibition Roomin fiscal 2007: Making Beauty—Early

Japanese Language Examination

ENCYCLOPEDIA

A cover for the ages—80 years of “Kinderbook”
exhibition at the P&P Gallery

46

TOPPAN CSR REPORT 2008

A person must know the meanings andproper uses of words to accurately communicate intentions, feelings, and ideas. Exact
meanings and adequate phrasing are theessentials of communication. The Japanese
Language Examination was founded in 2007as a learning target for mastering the correct
usage of the Japanese language. People ofevery age, from children in primary school toworking adults, can take the examinations inversions suitable for their living environments
and developmental stages. Tokyo ShosekiCo., Ltd., the test-making organization, plays
key roles in the Japanese Language Examination Committee. As of the end of fiscal
2007, more than 40,000 persons have taken
the examination and more than 200 companies around Japan have organized group
testing for employees.

Japanese Lithographic Posters and
ENCYCLOPEDIA. The first exhibition
was a collection of about 160 advertising posters of beautiful women and original drawings, thematically focused on
advertising and printing. Visitors learned
about state-of-the-art printing technologies in each period, from the end of the
Meiji Era to the beginning of the Showa
Era. The second exhibition was a collection of encyclopedias and natural history periodicals from all ages andcultures. Visitors learned about themedia to systematize knowledge andinherit intellectual properties throughout
human history.
The P&P Gallery presents temporary
standalone exhibitions on themes primarily of printing techniques, designs,
and books. Five exhibitions were organized in fiscal 2007: GRAPHIC TRIAL
2007; How Books are Created; A coverfor the ages—80 years of “Kinderbook”;
The Most Attractive Books from Japan
and Germany, 2006; and Universal
Design in Printing.

Cultural Contributions

Contributions to Society throughMusic
In 1959, froebel-kan co., ltd., a publisher
of children’s and picture books, organized the Froebel Boys Choir as a socialand cultural project. Boys choirs are relatively rare in Japan. As many as 1,000
boys have passed through the ranks ofthe choir since its founding. The choir
now has about 90 young vocalists, ranging from three-year-olds to junior highschool students. The boys carry out
wide-ranging activities, including appearances on television and commercials.
True to its corporate philosophy, “todevelop character through educationand culture,” Tokyo Shoseki Co., Ltd.
has been a joint sponsor of Japan’s
Nursery Rhyme Culture Award hosted
by the Association of Children’s Song
Writers in Japan since 2002. The sponsors celebrate the Children’s Song Day
on July 1 of every year by bestowing
the award on an individual or a group ofindividuals in Japan who have helped tospread children’s songs. Through thisaward, they hope to pass along thenursery rhyme culture of Japan to coming generations.

Piano Series: Valery Afanassiev

Central Contest for Book Report Drawings

Commendation ceremony for Japan’s Nursery
Rhyme Culture Award

Mejiro Ba-Rock Music Festival 2007
©Naoko Nagasawa

Exhibition room at The Textbook Library

Froebel Boys Choir

Supporting and Sustaining Education
CultureToppan works with The Mainichi Newspapers Co., Ltd. and the Japan School
Library Association as a cosponsor of

TOPPAN CSR REPORT 2008

With Communities

the Central Contest for Book Report
Drawings, an annual contest to encourage students to express their impressions of books by drawing. The judgesof the 19th competition in 2007 received
531,276 picture entries from 7,431
schools.
Tokyo Shoseki Co., Ltd. opened The
Textbook Library, Japan’s first repositoryof school textbooks, back in 1936. Thislibrary now houses about 150,000 volumes, from historical literature in the Edo
Period to modern textbooks, including
general educational books and wall
charts and pictures. The entire collection can be freely browsed at no charge.
The Tosho Education Award was established in 1984 with the aim of contributing to education. The library commends
the best essays on teaching from among
many submissions from educational professionals across Japan every year. The
best of the essays are compiled in a collection and distributed to teachers
around the country, to help propagate
excellent teaching methods.

Social Report

Toppan Hall
Toppan Hall is a 408-seat symphonicconcert hall opened in 2000. Designed
to share the sense of “moving the heart,”
the facility is known for the redolent,
acoustical warmth of its wood materials.
Wide-ranging performances havebeen held in Toppan Hall, from recitals
by world-famous musicians to the
Lunchtime Concerts (six times a year;
admission free) to discover talented
young musicians and Espoir series tofoster talented young musicians. Thirty
concerts were organized in fiscal 2007,
including special programs such as the
publicly acclaimed Piano Series andVioloncello Series. Toppan Hall is also
lent out for the Music Competition ofJapan, the Mejiro Ba-Rock Music
Festival, and local elementary schools.
Many people use the hall each year
(more than 290,000 people since thehall was opened).

47

With Communities

Social Report

Activities for Contributing to Local Communities
Wherever Toppan operates around the globe, its operational sites coexist withthe people in the communities.

Harmony with Local
Communities
Toppan believes every operational sitemust fulfill its responsibilities as part of acommunity and respond to expectations
in building better relationships as acorporate citizen coexisting with thepeople in the communities. Toppan contributes to and communicates with local
communities, mainly through activities
in which its own employees participate.
Personnel from every operational site
beautify the environments around theirplants, hold blood donation drives, andparticipate in and support local events.
The operational sites offer plant tours
and hold practical training sessions tonurture the next generation and assist
with employment support. The sites also
open their facilities as venues for local
residents, organize initiatives to prevent
crime and disasters, and undertake various other activities.
Cooperating with Local Communities
in Natural Disasters
In fiscal 2007, the head office concluded
an arrangement for mutual support indisaster-relief activities with neighboring

companies and nursing homes for theelderly. The purpose of this arrangement
is to minimize disaster damage throughcooperative support in fire-fighting, rescue, and first-aid activities when disasters strike. Mutual and uninterrupted
cooperative action with neighborhoods
is vital for effective disaster response.
Toppan will endeavor to strengthen its
region-wide cooperation for disaster
relief based on this arrangement.
Offering Field Training for Students
from the School for the Deaf
Toppan Display Co., Ltd. (Sakado Plant)
has offered field training for students
from prefectural Sakado School for theDeaf in Saitama, Japan since 2000. In
fiscal 2007, three students in the second
and third year at the senior-high-schoollevel learned the craft of bookbinding
with adhesives in a hands-on workshop
held for five eight-hour days. The department training the student apprentices
assigns employees literate in sign language to accompany them.

Offering Environmental Study
Recognized for its exemplary record ofenvironmental activities, the Toppan
Tohoku Division was honored to host afield tour organized by the Sendai City
Municipal Government.
Twenty pairs of fifth- and sixth-graders
and their parents (43 persons in total)
visited the Tohoku Division during summer vacation. The division introduced
several environmental actions and facilities, including its VOC treatment equipment, the first advanced device for
reducing organic solvent emission everto be installed in the Tohoku region.
Recovering Aluminum Cans andDonating the Proceeds
Under its ISO 14001-certified environmental management system, Shiga
Plant has thoroughly separated andrecovered used beverage containers
sold at vending machines and co-ops
in the plant since 1998. The proceeds
earned from the recovered aluminumcans have been donated to Higashiomi
City in Shiga, Japan. The municipal government uses the revenue to fund various measures to create dream futures

Toppan’s Activities for Contributing to Local Communities

Activities to Connect Toppan
with Local Communities
IMeetings with communities
to report and explain
IPlant tours, practical training
IEnvironmental cleanup andbeautification activities
IOpening operational sitefacilities to local communities

TOPPAN

Local Communities
IDisaster prevention andanticrime activities
ILocal events
IExchanges with local
community associations
IBlood donation drives andthe like48

Field tour organized by the Sendai City Municipal
Government

TOPPAN CSR REPORT 2008

Operational sites,
plantsActivities for Contributing to Local
Communities in Fiscal 2007
Operational
Participants
Sites
Environmental cleanup
9,808
28
and beautification
activities
Blood donation
drives33

2,723

Plant tours and fieldtraining

25

1,537

Activities for Contributing to Local Communities

for children: acquiring children’s books
for libraries in the city’s primary andjunior high schools, handing local culture down to the coming generations,offering learning and training programs
outside school (including programs overseas), carrying out environmental education programs, and undertaking green
conservation actions.

Initiatives in the U.S. and Europe
Toppan Photomasks, Inc. has bases
throughout the world. Its operational sitein Germany cooperated with an organization supporting people with intellectual disabilities to provide a work
opportunity for people to take part inthe cleaning of gloves for clean rooms.
Donations were also made to a convalescent home for children suffering fromexposure or illness as a result of theChernobyl disaster.
Toppan Printing Co. (America), Inc.’s
New Jersey plant welcomed students
for plant tours and made food donations
to the local Franklin Township FoodBank.

With Communities

Initiatives in Asia
At its Tainan Plant, Toppan CFI (Taiwan)Co., Ltd. has cooperated with the Tainan
Visually Impaired Masseurs Association
to provide an opportunity for visuallyimpaired masseurs to give massages to
employees in a corner of the plant’s canteen for six months from October 2007
to March 2008. Toppan CFI (Taiwan) also
made visits to children’s homes to coin-cide with the Women and Children’s Day
holiday on March 8, and recorded 165
participants in ongoing blood donation
drives taking place three times a year.

Social Report

Hosting Eco Meetings with Local
Community Associations
Toppan Printing Tokyo Co., Ltd.’s Itabashi
Plant holds eco meetings with membersof local community associations.
In these meetings, Toppan Printing
Tokyo reports its environmental initiatives at the Itabashi Plant to ensure that
local residents fully understand its
endeavors. Both sides engage in frankexchanges of views on the overall operations of the plant, including the environmental initiatives.

Initiatives Overseas
The Company also engages in activities
to contribute to and communicate with
communities overseas in the same waythat it does in Japan. The basic policy
here is to carry out community-based
activities in full consideration of local
laws, customs, and cultures. In addition
to the cleaning of areas surrounding
plants, volunteer activities, and blood
donation drives, operational sites makecharitable donations and hold plant
tours. The sites also engage in various
activities in collaboration with NGOs andNPOs in each region, including support
for events and participation in meetings
aimed at promoting understanding ofdifferent cultures.

Support for Areas Struck by the Major Earthquake in Sichuan, China
The major earthquake in Sichuan, China on May
12, 2008 brought catastrophic damage to theregion. Toppan took immediate emergency relief
action as a company operating across China andas an employer of many persons from the affected
region. Toppan collected 25.08 million yen in
donations from employees in Japan and 12 operational sites in China, together with contributions
from the Company. The donated money was sent
to local governments and the Red Cross in regionsin which Toppan operational sites are based.
Toppan Printing Co., (Shenzhen) Ltd. in China,
an employer of many persons from the disasterstricken region (about 25% of its workforce), prepared daily necessities such as water, food, andblankets. A group of nine employee volunteerstransported the relief supplies directly to local temporary depositories. Beijing Nippo Printing Co.,
Ltd., meanwhile, manufactured and donated
100,000 notebooks, a commodity urgently
needed by the many schools damaged by theearthquake.
Provision of opportunities for work (Toppan CFI(Taiwan))Ceremony to commend the employees who
delivered relief supplies

Presenting the donations

TOPPAN CSR REPORT 200849

With Employees

Social Report

Realizing a Safe and Secure Working Environment
To fulfill its most fundamental responsibility to its employees,
Toppan goes to great lengths to provide a safe and secure working environment.
Safety and security are prerequisites for improved productivity.

Respecting Basic Human
RightsThe Conduct Guidelines call for theassurance of the dignity of individuals
under all circumstances, and no invidious discrimination on the basis of race,
ethnicity, nationality, religion, gender, or
physical characteristics. To raise esteem
for basic human rights, including theprevention of sexual and power harassment, Toppan has been promoting
awareness-raising activities during rankbased training sessions. Some 1,617
employees participated in fiscal 2007.
To resolve and prevent troubles withsexual harassment, the Company established a Basic Policy on Sexual Harassment at the Workplace and deployedsexual harassment counselors in July
1999.
No instances of child labor or forcedlabor have ever occurred in the Company.

Healthcare and HealthEnhancement

metabolic syndrome, in cooperation with
the Toppan Group Health Insurance
Union and 59 clinics across Japan.
Toppan also provides employees with
opportunities to enhance their physicaland mental well-being in various ways,
including the opportunity to use any of
the 500 fitness clubs contracted by the
Toppan Group Fraternal Benefit Society
throughout Japan.

Measures for Mental HealthToppan has been enriching measures toenhance the mental health of employees with an emphasis on prevention
and early detection. The Company has
arranged various mental healthcare
training sessions and appointed a person to take charge of mental healthenhancement at each operational site.
Toppan will be reinforcing these measures and taking other steps to help
employees when they return from mental healthcare leave.

Toppan makes every effort to eliminate
workplace accidents through the workof the Safety and Health Committee, abody made up of both labor and man-Toppan arranges regular medical checkups and screenings for lifestyle-relateddiseases in order to maintain andenhance the health of employees by preventing and promptly detecting healthproblems. The Company carried out aLifestyle Improvement Support Service
and other measures on a trial basis infiscal 2007. Employees in need oflifestyle improvements were offeredguidance on preemptive actions they
can take to stave off health problems.
In response to the Japanese medical
institutional reforms of April 2008, theCompany has established a new system to take countermeasures against

Workplace Safety and Health

Overview of Mental Health Maintenance System

Occupational Safety and
HealthDeaths from Frequency
Work Accidents
Rate*10
2005
0.24

Severity
Rate*2
0.01

2006

0

0.16

0.02

2007

0

0.39

0.01

*1 Number of employees injured or killed in labor
accidents per million working hours (reflects
the frequency of labor accidents)*2 Number of workdays lost as a consequenceof labor accidents per thousand working hours(reflects the severity of labor accidents)

Status of Main Holiday andLeave Systems
Average Ratio Employees
Employeesof Annual
Using theUsing thePaid Holidays Maternity
Childcare
Used*3
Leave System Leave System
Fiscal 2005 38.9%
32
55
Fiscal 2006

41.2%

40

58

Fiscal 2007 41.4%
37
63*3 Average number of holidays used/average
number of holidays granted

50

agement. The Safety and Health Subcommittee set up under the committee
as a total productive maintenance (TPM)
activity is seeking to increase the synergy of production activities and safety
and health measures. Toppan also carries out proactive safety checks in cooperation with technology departments
before installing equipment. This is an
essential step for avoiding disasters.

TOPPAN CSR REPORT 2008

Primary
Prevention:

Secondary
Prevention:

MedicalTreatment:

Proactive measure

Early detection

Early cure

Steps to Prevent
Recurrence:
Support for returning
employees (fresh starts)

Regular mental health checkups,
including stress checks
Mental healthtraining
IRank-based
training
IIncorporated in
optional(group) training
Appointment anddeployment of aperson to takecharge of mental
health enhancement at each
operational site

Cooperation with medical and counseling institutions outside Toppan
Guidance and information of consultants
outside Toppan (contracted with the
Toppan Group Health Insurance Union)

Establishment of anenvironment wherereturning employees caneasily resume their work
ITraining for employeeswith mental illnesses toprepare them for working at the Company
Steps to allay anxiety
after resignation
Financial assistancefrom the Toppan Group
Fraternal Benefit Society
and like sources for fixed
periods after resignation

Realizing a Safe and Secure Working Environment

Supporting Work-Life
Balanceand will continue to facilitate various
measures to provide employees withworking environments for better worklife balance.

Labor-Management
Partnership
In keeping with the perception that laborand management are partners in sharedideals, the Company management andthe labor union trust and respect eachother’s positions. The two parties workon various issues together on an equal
footing and hold events of different sorts,
including recreational activities for
employees. Business councils are convened as forums on Company-wide andoperational site bases to discuss wideranging managerial issues. Committees
to deliberate individual issues are also
convened, including standing committees to discuss working hour reductions,wages, welfare, and safety and health,and special committees to tackle topical issues facing the Company.
Toppan has introduced a union shop
system. In principle, all non-managerial
employees are members of the labor
union.

Social Report
With Employees

Efforts to Shorten Total Working Hours
The special conditions of the printing
industry have made it a longstanding
challenge to reduce the total hours
worked by employees. Both labor andmanagement have examined andimplemented more effective measures
attune to the actual conditions in eachdivision. Managerial staff have been
striving to control the working hours ofsubordinates since fiscal 2006. As aresult, the hours of overtime worked by
employees have declined for the last
several years. Toppan also encourages
employees to take holidays individually
through planned leave on consecutive
holidays granted in summer and otherseasons, as well as through personalized holidays to commemorate anniversaries and other important personal
events. Starting from fiscal 2008, theCompany will introduce a long-service
leave for long-term employees toencourage them to take consecutive
holidays. The usage ratio of annual paid
holidays was 41.4% in fiscal 2007, up
from the year before.

Efforts to Foster the Next Generation
In addition to making efforts to shorten
total working hours, Toppan has striven
for years to create an environment inwhich employees can achieve better
work-life balance. It does so by providing systems for maternity and nursing
care leave, for reduced working hours,
and for a higher family allowance fordependents.
A rehiring system for employees who
resign from the Company to deliver andbring up children has been establishedsince fiscal 2006. Now, in the second
year of system operation, seven resigning employees have registered for future
rehiring. The coverage of the system forreduced working hours for employees
who need to care for a child has also
been extended. A schedule reduction of
up to two hours a day was originallyoffered to a parent until his or her childreached the age of three; now it is available until the child completes the thirdyear of elementary school. A staggered
work-hour program for childrearing has
been put in place during fiscal 2008.
The Company has aimed for institutional
improvement through these systems

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

Maternity Leave
Childcare Leave

Rehiring of Employees who
Leave the Company to Raise
ChildrenNursing Care Leave

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

Employees can accumulate up to 50 days of annual paid leave that would otherwise be lost if not exercised within two years fromthe date they are earned. Employees are eligible to use their stock leave when they or their dependents require treatment or nursing,or for recovery from unexpected accidents.
Employees can take six weeks of leave before childbirth and another eight weeks after.
Both mothers and fathers are eligible for continuous childcare leave until their child reaches the age of 18 months (eight male
employees have taken childcare leave so far). Employees receive 10% of their regular salaries during the leave. They can also work for
shorter hours (maximum reduction of two hours per day, in principle) from the date of their return to the job until their child completes
the third year of elementary school. Toppan subsidizes some childcare costs and provides childcare-related information through a
consultation office. Employees can consult with the Company to discuss their career plans for after they return to work.
Rehiring is guaranteed for an employee who resigns to deliver and raise a child, provided that the employee has worked for Toppan
for more than three consecutive years just before resigning. A resigned employee who meets these conditions will remain eligible forrehiring until May 1 of the year when the child enters primary school.
Employees are entitled to take leave for the nursing care of at least one family member when necessary. The maximum consecutive
leave is one year and the maximum reduction in a working day is two hours. The Company subsidizes some nursing costs andprovides nursing-related information through a consultation office.
Employees can take up to 10 days of leave a year. These days can also be taken in half-day allotments when necessary.
Employees can take a maximum of one year, in principle, of volunteer leave to engage in socially beneficial activities. Employees onvolunteer leave receive an allowance.
An employee can adjust daily working hours upward or downward by up to two hours to care for a child, until the child completes
the third year of elementary school.
The Company pays every employee a monthly allowance of 20,000 yen for each child in the employee’s family. The allowance isdiscontinued on the first April 1 to arrive after the child’s 18th birthday.
Toppan Group Fraternal Benefit Society subsidizes 50% of babysitter expenses, up to a maximum of 5,000 yen a day, for up to
90 days a year.
The Toppan Group Health Insurance Union offers a supplementary allowance in addition to a lump-sum allowance for childbearing
and childrearing. It also provides one-year free subscriptions to the monthly childcare magazine Baby and Mommy and runs
a consultation office for employees with questions about the health of the mind and body.

TOPPAN CSR REPORT 2008

51

With Employees

Social Report

Merit-based Personnel Policies
Toppan values its employees as important assets (“human assets”).
The Company develops personnel policies to encourage highly motivated,vigorous, and earnest efforts.

Basic Concept of Human
AssetsToppan values its employees as precious company assets and recognizes
how much it depends on them. From
this perspective, the Company supports
the motivated, vigorous, and earnest
work of the Toppan workforce.
Toppan keenly understands theimportance of the motivation to take on
new challenges, the drive to work vigorously with a healthy body and mind, andearnest commitment to follow throughon tasks to completion. The Company
believes that its employees must work
vigorously, earnestly, and with strong
motivation if they are to fully show theirtrue abilities. Toppan strives to draw out
and enhance the abilities and organizational powers of every employee throughthe stages of hiring, appointment, training, leveraging, and treatment. To do so,
the Company places importance oncommunication between superiors andsubordinates under mutual trust, pursues its goals with well-defined visions,formulates systems to strictly andappropriately enforce rewards andpenalties, and works to establish an
open and fair environment.
Employee Data

Fiscal 2005
Fiscal 2006
Fiscal 2007

Male

Number of
Executives
30

Toppan has formulated a personnel
treatment system based on the competence and achievement of each
employee, in consideration of the degree
to which the system is disseminatedthroughout the Company. The system isdesigned to encourage employees tofully exert their diverse abilities and skills.
Revising the Managerial Staff
Treatment System
Managerial staff at Toppan are treatedcommensurately with their achievements, as evaluated under a newly
introduced system. The evaluations
focus on efforts to practice conduct ofhigh value for the realization of TOPPANVISION 21—overall efforts to improvebusiness performance from the stagesof goal setting to the achievement of
results. In fiscal 2007, the system fortreating managerial staff placed moreweight on the importance of job roles
within Toppan than on job capabilities.
After making the revision, the Company
sought to entrench the system among
all of its managerial staff by having each
operational site hold several briefings.
The details of the system are also

As of March 31 each fiscal year; the number of temporary staff is the average number from January to March.
Total Number
Management
Average
Part-time
Temporary
Average Age Sum Total ofSupervisorof Employees
Class
TenureEmployees
Workers
Staff
1,889
2,106
9,693
16.0
39.1
10,582
1,103
1,142
11
56
889
9.5
31.6

Female

1

Male

30

1,796

2,173

9,964

15.8

39.0

Female

1

15

69

935

9.4

31.6

Male

29

1,840

2,205

10,18015.5

39.1

Female

1

21

89

1,001

9.2

31.6

Recruits

Mid-career recruitment ofexperienced personnel

TOPPAN CSR REPORT 2008

10,899

1,163

1,851

11,181

1,273

2,039

Reasons for Leaving

Fiscal 2006 Fiscal 2007 Fiscal 2008
Sales,
Regular
Male
142
178
132
recruitment of administration, Female
43
66
74
etc.
new university
Male
166
170
145
graduates andTechnical
post-graduates
Female34
36
31
New graduates from high
Male
181
151
156
schools and National
Female28
25
17Colleges of Technology
Total number of regular recruits
594 (17.7%) 626 (20.3%) 555 (22.0%)(percent female)

52

Personnel Treatment System

Basic Thinking on Personnel Policies
Toppan recognizes that it can build thetrust and respect of society, customers,
and other stakeholders by encouraging
all of its employees to pursue the realization of TOPPAN VISION 21 through“conduct of high value.” In keeping withthis conviction, the Company’s personnel policies for hiring, appointment, training, leveraging, and treatment are allbased on “conduct of high value” and“abilities and skills.” The term “conductof high value” describes the concrete
employee actions that go into the realization of the Corporate Philosophy andCorporate Creed. “Abilities and skills,”
meanwhile, are indispensable to thepractice of valuable conduct. A basic
framework for abilities and skills is set
for each job type and department.

150

119

77

Fiscal 2005

Fiscal 2006

Fiscal 2007

Personal reasons

284

320

348

Retirement

56

117

150

Requested by the company

0

0

0

Accession to directorship

5

3

6

Total

345

440

504

Turnover rate

3.1%

3.9%

4.4%

Merit-based Personnel Policies

explained in personnel-performance evaluation and feedback interviews under
the new system, as needed.

questionnaire gauges the status of opinion exchanges with superiors on thealignment of job goals, the level ofachievement, issues to be solved or
improved in the future, and the degree
to which employees are satisfied with
their feedback interviews. The questionnaire results are reported to management and used for comprehending andreviewing the operation of the personnel
system. Management seeks to develop
and operate the personnel system more
effectively in cooperation with employees at all times.

Social Report

Operating the Personnel Evaluation
System Properly in Cooperation with
the Labor Union
The labor union surveys non-managerial
staff with questionnaires to assess how
thoroughly the Company informs themof the evaluation criteria it uses to set
annual allowances and bonuses. The

With Employees

Functional Classification
Toppan has operated a multi-track job
function framework for non-managerial
staff since fiscal 2004. Employees in thesales, planning, technology, research,and business administration departments are evaluated under a five-grade
scheme. Employees in the manufacturing departments, meanwhile, are working under an eight-grade scheme. As astep forward, a wage system tailored toeach grade scheme has been appliedin this framework since fiscal 2005. With
this revision, differences between actual
task performance and achievement arereflected more precisely in the determinations of wages and other allowances.
In fiscal 2006, the Company drastically renewed its system for reviewing
the performance and making promotion
decisions. New criteria were established
for the selection of capable employees
for early promotion. Interviews, tests on
management aptitude, and task presentations were also commenced to tighten
the selection process.

Goal Setting and Transparency in
Evaluation
Toppan applies a management-byobjective (MBO) system for managerial
staff. Goals are set, approaches are
modified, and results are evaluatedbased on conduct of high value according to three criteria of operating performance: achievement, conduct, andability/skill. Toppan emphasizes sufficient
communication with superiors during
the process as needed for goal sharing,transparency in evaluation, and enhanced
satisfaction.
The feedback interviews give the Company the opportunity to meet non-managerial staff in order to feed back detailed
results on their evaluations individuallyand to discuss future career aspirations
and goals. These systems help deepencommon recognition mutually.

Average Annual Salary*

Basic Concept of the Personnel Treatment System
Process management from goal setting to the improvement of job performance
Individual
Accomplishments

Fiscal 2005

6,957,713 yen

Fiscal 2006

6,751,069 yen

Fiscal 2007

6,699,674 yen*Including annual bonus and nonstandard wages

TOPPANVISION 21

Mediumterm plan

Term plan

Department
plan

Goal setting

Corporate
Philosophy
Corporate
Creed

Concept of “Conduct of High Value”
IEarning the trust of customers

Conduct
Guidelines

IStrengthening business foundations

Business
Fields

IStrengthening organization

ActionIFulfilling corporate social responsibility
IImproving corporate value
Performance
improvement

TOPPAN CSR REPORT 200853

Social Report

With Employees

Leveraging Diverse Human Assets
Working on a foundation of broad and equal opportunities, Toppan leverages an array ofhuman assets in pursuit of diversity*1, drawing from the diverse “integrated strength” of its people.

Providing an Open
Environment for Recruitment
Toppan offers various employment
opportunities for persons of both genders and persons of many nationalities
and ages. Recruitment takes mainly two
forms: hiring of new graduates from universities, National Colleges of Technology, and high schools every April, andmid-career hiring of experienced personnel year round. To draw out the
innate merits of every candidate in the
recruitment process, Toppan adopts hiring standards for new graduates basedon the conduct of high value consistent
with the principles of Toppan’s Corporate Philosophy and Corporate Creed.
Recruitment screenings are conductedin seven venues in Japan to provide amore open environment for hiring. The
Company has run its mainstay internship program to boost student awareness about work, and a new internshipprogram using interactive communication online. These programs attracted
accumulated totals of 154 interns onsite and 916 interns online in fiscal 2007.
Toppan hired 77 experienced personnel in fiscal 2007. Sixteen of them had

worked in Toppan previously as temporary staff or part-time workers.

Systems for
Self-determination on
the Career Path
Toppan is establishing an ideal environment for employees who are eager tocreate their own careers. The Company
offers employees various opportunities
to take on new challenges through the
Challenging Job System, in-house staff
recruitment system, and overseas study
support system.
The Challenging Job System provides
employees with opportunities to voluntarily report their own work experiences,official qualifications, language abilities,
medium-to-long-term career aspirations,and the names of the departments anddivisions to which they would like to betransferred. After submitting voluntarily
reports, employees get the opportunity
to exchange opinions with superiors ininterview settings and to personallymake requests regarding their own
career plans, Company-wide affairs, andother issues.

TOPPAN CAFÉInternship

The TOPPAN CAFÉ is not a company orientation session per se. It can be better
described as a series of roundtable meetings where students discuss and share theirconcerns and difficulties as job hunters. The
purpose is to ease the common anxieties
and troubles of job hunters by reminding
them that they are all in the same boat. Some
650 students took part in the meetings in fiscal 2007.

Toppan’s internship program provides students with opportunities to experience work
as it really is. Participants gain insight into
work at Toppan through lectures on marketing theory and printing techniques, as well
as plant tours and group work.

Leveraging Female TalentMore Shrewdly
Toppan has promoted positive action tocreate new values through leveraging
diversified human assets. All-womenteams at Toppan are now developing
new products and services from feminine perspectives. The activities of the
all-women teams have inspired otherfemale staff, as well. This has helped
Toppan to create stimulating systems
and working environments in whichfemale employees can work more energetically and freely.
Toppan proactively appoints female
employees to managerial and supervisory
positions. Those efforts have increased
the number of female managerial andsupervisory staff to 136, or 3.2% (as ofApril 1, 2008). The Company will continue to leverage its female workforce.

Supporting Second Careers
To support second careers in company
life, Toppan offers diverse options forsecond-career employees by developing suitable work categories. The
Company builds up a structure to use
the knowledge, experience, techniques,

Female Managerial and Supervisory
Staff(Staff)
150

Female supervisory staff
Female managerial staff

136

112

120
90

(As of April)

87
78

110
91

60
67

72

30
0

11
2005

15

21

26

2006

2007

2008

*1 Diversity: “Diversity is a ‘strategy of utilizing avariety of human resources.’ Avoiding the hitherto established standards within firms andsociety and taking into consideration the values and concepts of various attributes (gender, age, nationalities, etc.), this is a strategy
which responds to the changes in businessenvironment in a rapid and smooth manner toachieve firm growth and individual happiness.”(Regression to the Origin—The Directions ofDiversity Management from Japan Federationof Employers’ Associations: May 2002)

54

TOPPAN CSR REPORT 2008

Leveraging Diverse Human Assets

and skills that employees acquire
through long years of work. Toppan
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. Eighty-five of 150 employees who
retired in fiscal 2007 were reemployedin the same year and now remain with
the Company.

Internal Venture System

In 1993, Toppan founded Tokyo Metropolitan Government (T.M.G.) Prepress
Toppan Co., Ltd., a special subsidiary
to employ persons with physical disabilities. Since then, Toppan’s ongoing measures to promote the hiring of persons
with physical disabilities have been handled mainly via this company. As of June
1, 2008, persons with physical disabilities accounted for 1.83% of the total
workforce in the Company.

Propriety in Contract andDispatch

As working styles continue to diversify,
the roles of part-time workers at workplaces have gradually expanded. To
adapt effectively to this shift, companies
must retain their competent part-timeworkers as active participants in operations for as long as possible. In April
2008, Toppan established a system tooffer regular employment opportunities
to part-time workers who fulfill certain
conditions. The system stimulates thisimportant body of workers to stay longer
and play a bigger role in the Company,
while cultivating their capabilities for the
future. Each operational site has held
several briefings to encourage part-timeworkers to seek promotion to regular
positions by taking advantage of thissystem.

With Employees

The audit departments at Toppan conduct in-house audits to secure the
propriety of operations undertaken bycontracted or dispatched workers. Actual
conditions at workplaces are monitored
as needed, especially contractual documents and operating processes, to confirm that no inappropriate operations are
performed.

Appointing Part-timeWorkers to Regular
PositionsSocial Report

The Internal Venture System was established in January 2001 to discoverhuman assets abounding in entrepreneurial spirit and to create next-generation businesses. Fifty projects have been
proposed under the system so far. This
has led to the founding of one company(Toppan Character Production Co., Ltd.),
the initiation of two businesses, and theadoption of one proposal into a company project. One of the in-house new
businesses, FUJITANE Contents Design
Works, received an in-house award fromthe Company in recognition of the success of its business to create game content for mobile phones over its first four
years of operation.

Ongoing Success in the
Employment of Persons with
Physical Disabilities

Employees with Physical Disabilities

Fiscal 2005

138

Percentage of Total
Workforce*2
1.81%

Fiscal 2006

146

1.84%

Fiscal 2007

151

1.83%

Employees

Fruit-Pong α, a mobile phone game from
FUJITANE Contents Design Works ©TOPPANPRINTING CO., LTD.

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

Briefing for part-time workers

T.M.G. Prepress Toppan Co., Ltd.

TOPPAN CSR REPORT 200855

With Employees

Social Report

Fostering and Developing Human Assets
Human assets are fostered and cultivated at Toppan based on the two concepts—conduct ofhigh value and abilities and skills—to develop individuals and the Company as a whole.

Concept of Human Asset
Development and Fosteragehead office offer curricula to resolve theproblems faced by each department.
The divisional training sessions equip
employees with practical skills essential
for performing tasks. The Toppan Business School, meanwhile, has offeredself-development training to a cumulative total of 10,021 employees as of theend of fiscal 2007. The programs at theschool are customizable to employee
career designs with optional (group)
courses, the Challenge School (correspondence learning courses), and thevideo library. The video collection at thelibrary is useful for holding small group
activities on themes at specific workplaces. Some 437 videos were lent out
last fiscal year.
Toppan also offers educational programs through e-learning on CSR activities, personal information protection,
introductory information on sales operations, and TOPPAN VISION 21. The
course on the CSR activity promotion
has been conducted as a part of rankbased training. The Company also
encourages personnel in the design,
prepress, and sales departments toacquire certifications by enrolling in
preparatory courses for DTP experts
certified by the Japan Association ofGraphic Arts Technology (JAGAT) and

Toppan’s rank-based training helps
employees understand the roles andresponsibilities of each rank and appreciate and practice conduct of high value.
The Company offers various training
programs systematically to encourage
employees to acquire the abilities andskills required by each division, department, and workplace. In rank-based anddepartmental training sessions, employees draw up the curricula and act as
facilitators or trainers to lead and trainothers in styles closely attuned to actual
business situations. For stronger fosterage of younger employees, Toppan has
launched an early career planning system to help new employees to achieve
individually affirmed career ideals within
three years from recruitment. The
Company has also revised its training
system with Brothers and Sisters (seniorassociates in the workplace) to apply it
across the Company for enhanced onthe-job training (OJT) to foster new
employees.
A cumulative total of 3,215 employees participated in rank-based training
programs sponsored by the head officein fiscal 2007. In department-based
training, the relevant divisions of thefor Promotional Marketers certified by
the Japan POP Promotion Institute Inc.
One-hundred-and-ninety-seven employees have acquired the DTP expert certification so far.
Coordination between Development
and Fosterage
Toppan rotates employees within andbetween divisions. The objectives are tofoster human assets capable of dealing
with all of Toppan’s products and to fulfill the Company-wide priority themes:
integrated strength enhancement andTotal Quality Assurance. The Company
implements horizontal rotation among
different lines of work to cultivate versatile skill sets. Some new employees arerotated between divisions in Tokyo andlocal cities in Japan to balance theirknowledge and expand the scope of
their skills.
The Company also strives to enhance
its integrated strength through its
commendation system, a system torecognize employee proposals and performance based on the Company’s integrated strength.
The Company regularly held four
Human Resources Development Leader
Meetings in fiscal 2007 to discuss
improvement of human resource devel-

Toppan’s Human Asset Development Program
Earning the trust ofcustomers

Conduct of High Value Based on Corporate Philosophy and Corporate Creed
Strengthening business
Fulfilling corporate
Strengthening organization
foundationssocial responsibility

Improving corporate value

Knowledge andinformation skills

Abilities and Skills for Conduct of High Value
Ability to identify and
Ability to accomplish tasks Techniques and know-how
formulate tasks

Communication andtraining skills

Rank-based Training
INew division manager training(introduced in fiscal 2007)
INew department manager training
INew manager training
INew supervisor training

56

INew employee training
IFirst career plan
IOJT brother/sister training

Training to Meet Special Needs

Selective Training

ITraining for experienced personnel
hired through mid-career recruitment
IShort-term overseas study
IIT training in India
IGlobalization training
IForeign language training

IExecutive business school
ITraining to nurture industry-leading
talentIProject management training

TOPPAN CSR REPORT 2008

Department-based Training
ISelected training for section
managers in sales departments
ISelected training for mid-level staff insales departments
ITraining for new section managers intechnology and manufacturing
departments

Toppan Business School
IOptional training
IChallenge School
IVideo library

ITraining for employees in production
management departments
ITraining for new supervisors intechnology departments (introducedin fiscal 2007)
IIndividual department-based training(Purchasing, Secretary, Personnel &Labor Relations, and other divisions)

Training by the Divisions
ITraining in each division and at each
workplaceFostering and Developing Human Assets

opment. These meetings identify important training issues in departments andstrengthen the synergy of Companywide training and specialized training in
the divisions and departments. In linewith its policy to strengthen the unity ofdepartments, Toppan will continue tohold these meetings and offer opportunities to more effectively foster humanassets by tailoring guidance and training to the career visions of individual
employees.

Funds Spent on Usage Rate ofTraining per Toppan Training
Employee
Center*1
Fiscal 2005

36,600 yen

51.8%

Fiscal 2006

37,900 yen

51.5%

Fiscal 2007

41,300 yen

66.4%*1 The usage rate is calculated by dividing thenumber of days it was actually used (including use by subsidiaries and affiliated companies) by the number of days the facility wasavailable.

Fostering Human Assets Adaptable
to Globalization
Toppan highly values its system to support overseas study for the fosterage ofWith Employees

Results in Human Asset Development

People-to-People Exchange with theOverseas Subsidiaries
Toppan temporarily assigns employees
to posts in overseas Group companies
as a means of promoting people-topeople exchange among Group companies. The Company also accepts
employees from overseas Group companies as trainees through its educationand skill training systems. Two personnel from Toppan Printing Co., (Shenzhen)Ltd. are now receiving skill training.

human assets who can play active roles
in global businesses. Employees havethe opportunity to participate in the following specialist training programs: theMBA abroad program to foster experts
in business management, the study
abroad program for engineers to foster
technical human assets and build overseas networks, IT training in India for inhouse IT specialists, and the support
system for short-term overseas training
to foster human assets in the sales andplanning departments.
Toppan’s globalization training tomobilize fitting responses to globalization is a set of individualized courses tohelp candidates for overseas assignments and employees from departments
involved in overseas businesses acquirebasic skills for working internationally(such as cross-cultural communication,
proposing and presenting in other languages, coordinating and managing
conferences, and negotiating and persuading overseas businesspeople). Allof the 119 employees who have participated since the launch of the training in
1996 have worked in overseas Group
companies or departments involved inoverseas businesses.

Social Report

Assigning and Fostering New
Employees
Employees hired mainly through regular
recruitment are interviewed on at least
three occasions before formal assignment: at their recruitment, during orientation just after they enter the Company,
and shortly after they are assigned. At
each interview they have the opportunity
to express their wishes for posting and toconfer with their supervisors on the divisions most suitable for their career plans.
Every employee also has a chance tomeet with a supervisor after one year to
discuss whether the employee’s current
workplace is suitable or not. After thisinterview, the Company officially determines the division or department to which
the employee should be assigned.

Toppan regards the first three years after
recruitment as the fosterage period for a
new employee. A senior associate in theemployee’s new workplace is appointed
as a Brother or Sister. The employee, theemployee’s immediate superior, and theBrother or Sister work together to form avision of an ideal future for the employee
at the end of the fosterage period andset career goals. They prepare a “design
sheet for ability and skill development,”an action plan with a checklist of accomplishments to be achieved by theemployee on the way to his or her goal.

Personnel Rotation*2
Employees
Percentage ofTransferred
Total Workforce
Fiscal 2005
326
3.0%
Fiscal 2006
301
2.8%
Fiscal 2007
595
5.3%
*2 Including only rotations among different divisions
to develop human assets for integrated strength
enhancement and Total Quality Assurance

Retention Rate for Recruits(Percentage of recruits hired in fiscal
2005 who are still working at Toppan)
Hired on April 1, 2005
Still with Toppan as ofApril 1, 2008
Retention rate
Average totals for males
and females
Percentage who leave theCompany before working
three years

Male

Female

322

96

290

73

90%

76%

Trainees from Shenzhen

87%
13%
Globalization training

TOPPAN CSR REPORT 200857

Social Report

With Shareholders and Investors

Increasing Transparency and Distributing Profits Appropriately
Toppan works to continuously enhance corporate value and establish long-term, stable relationships withshareholders through fair and open disclosure of its management activities and appropriate profit distribution.

Increasing the Transparencyof Management Activities
Adhering to its investor relations (IR)motto of fair and open disclosure ofmanagement activities, Toppan thoroughly discloses information throughvarious communication tools for eachstakeholder (➞P.22).
Disclosing IR Information
Under the in-house Basic Policy on IR,
Toppan has built an exclusive IR website to ensure fairness, transparency,
and promptness in its disclosure of IR
information. Toppan has been announcing its financial results quarterly via the
Company’s website and Toppan Story,
a newsletter for shareholders. Public
meetings with top management havealso been held to explain the Company’s
interim and full-year results. All documents distributed at these meetings areposted on the Company’s IR website.

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.
The Company’s website does not include
all of the information disclosed by the Company and may include expressions different
from the expressions used in other sources.

Overview of Stock andShareholders
As of the end of March 2008, the total
number of outstanding common stock
was 699,412,481 shares and the total
number of shareholders was 43,902.
Financial institutions, individual investors,
foreign companies, and other companies make up 37.39%, 22.17%, 24.72%,
and 14.26% of the shareholders, respectively. The principal shareholders arelisted below.
Dividend Policy
Toppan seeks to improve its dividend
payout with a consolidated dividend
payout ratio of 30% or more as a guidebased on comprehensive considerationof the consolidated financial performance of each fiscal year, the dividend
payout ratio, and internal reserves.
Through this approach, it strives to provide stable profit returns to its valued
shareholders and realize sustainablegrowth of the Company.
Sufficient reserves will be allotted tocapital investment and research anddevelopment for expanding businessfields with growth potential, with theobjective of enhancing corporate value.
The Company will allocate retained
funds to increase investment efficiency
from a long-term perspective.
Toppan believes that its policy on
profit distribution will help to enhance its
corporate structure and increase future
profitability, and thereby enable theCompany to return profits to its shareholders.
The annual dividend per share at theend of fiscal 2007 was 22.00 yen, witha consolidated payout ratio of 37.5%.
Meeting of Shareholders
One-hundred-and-seventy-seven shareholders participated in the ordinary general meeting held in June 2008. Toppan
has established a system that allows
shareholders who choose not to attend
the meeting to exercise their voting
rights online or in writing.

Stock Ownership Profile
Financial instruments firms(securities companies)
10,206,285
1.46%

Foreign companies
172,914,856
24.72%

By Type of
Shareholder

Financial
institutions
261,526,951
37.39%

Less than 1,000 shares
2,364,716
0.34%

By Number of
Shares Held

Other
companies
99,756,771
14.26%

Total
699,412,481
sharesIndividual investors
155,007,618
22.17%
Principal Shareholders

NATS CUMCOThe Master Trust Bank of Japan, Ltd. (Trust Account)
Nippon Life Insurance Company
The Dai-ichi Mutual Life Insurance Company
Japan Trustee Services Bank, Ltd. (Trust Account)
The Bank of Tokyo-Mitsubishi UFJ
Sumitomo Mitsui Banking Corporation
Hero and Company
Kodansha Ltd.
Employees’ Stock Club

Total
699,412,481
shares1,000,000
shares or more
498,073,150
71.21%
Number of Shares Held
(1,000 shares)
44,33734,88932,64825,75024,827
15,62815,628
13,101
13,077
13,0311,000 shares or more
67,172,481
9.60%
10,000 shares or more
27,277,144
3.90%
50,000 sharesor more
11,792,648
1.69%
100,000 sharesor more
92,732,342
13.26%

Percentage of Total Numberof Shares Issued (%)
6.34
4.99
4.67
3.68
3.55
2.23
2.23
1.87
1.87
1.86

Note: As of March 31, 2008. The 41,222,000 shares of treasury stock are included in the “Individual investors” categoryof the graph “By Type of Shareholder” and in the “1,000,000 shares or more” category of the graph “By Numberof Shares Held.” These shares are excluded from the above table “Principal Shareholders.”

58

TOPPAN CSR REPORT 2008

Environmental Report

Overview of Environmental Activities
Toppan’s Environmental Activities

60

Overview of Results for Fiscal 2007 and
Future Environmental Targets
Environmental Targets and Results for
Fiscal 2007

62

Environmental Investment andConservation Benefit

65

Environmental Management
Environmental Management Structure

66

Environmental Management Activities

68

Environmental Communication Activities

70

Environmental Conservation Activities
Mitigating Global Warming and Saving Energy

72

Resource Circulation

73

Pollution Prevention and Chemical SubstanceManagement and Reduction

74

Approach to Logistics

75

Environmentally-friendly Products andEnvironment-related Business
Developing and Assessing
Environmentally-friendly Products

76

Environmentally-friendly Printing Services

78

Considering the Ecosystem
Considering the Ecosystem

79

Environmental Data
Environmental Data

80

Environmental Report

Overview of Environmental Activities

Toppan’s Environmental Activities
Every Toppan employee participates in the Company’s environmental activities to realize the goals of
Toppan’s Declaration on the Global Environment. The Environmental Action Plan specifies concrete
Environmental Targets for the medium- to long-term and for every current fiscal year.

Declaration on the Global
Environment

Overview of Environmental
Activities

In 1991, Toppan established the Ecology
Center and assigned it the role of overseeing its environmental activities. In thefollowing April, the Company laid out the
Toppan Declaration on the Global Environment, a comprehensive environmental
philosophy appended with explanationsof methods to be used to translate thatphilosophy into action. Since then, thedeclaration has guided the efforts of theGroup as Toppan works to advanceenvironmental activities under the leadership of the Ecology Center. In
September 2000, Toppan revised partsof its Toppan Declaration on the Global
Environment to reflect reformed management policies. Reviewing the Environmental Action Plan regularly, Toppan treats
the Environmental Targets set under theaction plan as benchmarks of its environmental management performance.
This helps to guide Toppan as it strives
to continually improve its environmental
activities (➞P.62).
The Toppan Declaration on the Global
Environment will be thoroughly reviewed
whenever social attitudes on the global
environment significantly change. Toppan’s
work to upgrade its 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 thorough understanding of
the individual environmental burdens
entailed in the development, commercialization, and manufacture of every
product.
Toppan has established a comprehensive set of Environmentally-friendly
Product Assessment Guidelines toensure that this can be achieved forevery product group. By acting on
assessment guidelines that bring theentire life cycle into view, from productplanning and development onward, theCompany aims to develop environmentally-friendly products in a manner
appropriate to the environmental burdenof each business area.
Toppan aggregates and ascertains
data on the environmental burden associated with its production activities in three
separate fields of business and undertakes a set of environmental activities tomanage each environmental burden.

Toppan’s Declaration on the Global
Environment

Scope of Environmental Performance Data and Environmental Accounting

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
to conserve 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

60

TOPPAN CSR REPORT 2008

Toppan’s Environmental
Burden and Environmental
Impact
The first step in reducing environmental
burden is to ascertain the environmental
impact of the Company’s overall business activities. Toppan aggregates dataon the balance of materials at each production site based on INPUT (materials
and energy used)/OUTPUT (materials
discharged as a result of production)and then assesses the impacts of sites
from various environmental aspects. The
Company establishes Environmental
Targets based on the results of theseassessments to clarify the priorities andverify the results of its environmental
activities.
As a company engaged in diverse
business fields, Toppan imposes environmental impacts in various forms. To
evaluate the extent and variation of its
environmental burden rationally, theCompany aggregates and ascertains its
environmental data independently in its
three main business fields: Information& Networks, Living Environment, andElectronics (➞P.61).

•First, Toppan selected subsidiaries that share important roles in the environmental conservation
activities of the Toppan Group together with Toppan Printing Co., Ltd., from among the Group entities that are consolidated for accounting purposes. Next, the Company decided which of the subsidiaries selected were to be included within the scope, based on the autonomy and independencyof their environmental activities. Toppan Forms Co., Ltd., Toppan TDK Label Co., Ltd., Toppan
Logistics Co., Ltd., Tamapoly Co., Ltd., Tokyo Metropolitan Government (T.M.G.) Prepress Toppan
Co., Ltd., Tokyo Shoseki Co., Ltd., Tosho Printing Co., Ltd., and overseas subsidiaries are notincluded, in principle. The entities covered differ, however, for the following types of data.
•P.65 Capital Investment for Environmental Conservation, Environmental Conservation Benefit➞Entities covered: All domestic and overseas subsidiaries with important roles in the environmental
conservation activities of the Toppan Group, excluding Toppan Photomasks, Inc. and its subsidiaries•P.75 Approach to Logistics➞Entity covered: Toppan Logistics Co., Ltd.
•PP.76–77 Sales of Environment-related Business➞Entities covered: Toppan Printing Co., Ltd. in P.76; Toyo Ink Mfg. Co., Ltd., Toppan Forms Co.,
Ltd., Toppan TDK Label Co., Ltd., Tamapoly Co., Ltd., Tokyo Shoseki Co., Ltd., Tosho Printing
Co., Ltd., Toppan Cosmo, Inc., and froebel-kan co., ltd. in P.77
•P.80 Environmental INPUT/OUTPUT data by Business Field➞Entities covered (other than material data): All domestic and overseas Group companies with
important roles in the environmental conservation activities of the Toppan Group, excluding
Toppan Photomasks, Inc. and its subsidiaries

Toppan’s Environmental Activities

Major Environmental Burdens in the Business Fields (INPUT/OUTPUT data)
INPUT
Material Input (➞P.80)
Non-production Sites
0
LivingEnvironment
381,542(29%)

Electronics
43,597 (3%)

Total Energy Consumption (➞P.72)
Non-production Sites
678 (4%)
LivingEnvironment
5,041 (27%)

Electronics
7,220 (39%)

Total Water Consumption (➞P.80)
Non-production Sites
355 (2%)
LivingEnvironment
1,984 (13%)

Total

Total

1,315,170

18,348

Total

14,787(Unit: 1,000 GJ)(Unit: tons)(Unit: 1,000 m3)

Information &Networks
1,442 (10%)

Information & Networks
5,409 (30%)

Information & Networks
890,031 (68%)

Electronics
11,005 (75%)▼

TOPPAN

Information & Networks

Living Environment

Electronics
Environmental Report▼

OUTPUT
Total Waste Generation (➞P.73)
Non-production Sites
1,991 (1%)

Electronics
54,248 (16%)

Electronics
294,135 (37%)

LivingEnvironment
244,426(30%)

Total Effluent Discharge (➞P.80)
Non-production Sites
313 (2%)

Electronics
10,304 (80%)

LivingEnvironment
1,468 (11%)

Total

Total

Total

333,646804,553(Unit: tons)(Unit: t-CO2)

12,937

Information & Networks
172,356 (52%)

Overview of Environmental Activities

LivingEnvironment
105,050(31%)

CO2 Emissions (➞P.72)
Non-production Sites
27,708 (3%)

Information & Networks
238,283 (30%)(Unit: 1,000 m3)

Information &Networks
852 (7%)

IIn a breakdown by business field, Information & Networks accounts for 68% of material input (mainly paper) and 52% of waste generation, while Electronics
accounts for 74% of water consumption and 80% of effluent discharge.
IThe total energy consumption, i.e., the quantity of electricity and fuels consumed, is about the same in each business field.
Note: The calorific value of the primary energy input associated with electricity consumption is calculated uniformly as 0.00983 GJ/kWh. Some of the material
inputs are calculated from estimated values based on production values.

TOPPAN CSR REPORT 2008

61

Environmental Report

Overview of Results for Fiscal 2007 and Future Environmental Targets

Environmental Targets and Results for Fiscal 2007
Toppan specifies concrete Environmental Targets for the medium- to long-term andfor every current fiscal year, to promote the Company-wide environmental activities towards
the realization of the goals of Toppan’s Declaration on the Global Environment.

Toppan’s Environmental
Targets
Based on its Environmental Action Plan,
Toppan specifies concrete policies forthe realization of the goals of the
Declaration on the Global Environment,
the basic philosophy of Toppan’s environmental activities in all of its businessfields. The Medium- and Long-term
Environmental Targets and Environmental Targets for every current fiscal
year set under the Environmental Action
Plan promote environmental activities
with participation from every employee.

Toppan takes one fiscal year as one
cycle for its environmental activities andreviews those activities within that timeframe. The Medium- and Long-term
Environmental Targets are reviewed andthe Environmental Targets for the following fiscal year are set based on the evaluations of achievements in the current
fiscal year.

Evaluating Progress towards
the Environmental Targets
Toppan set 16 Environmental Targets forfiscal 2007 and undertook various programs and activities to attain them. Asof the end of the year, eight of the targets were reached and eight were not.
The Company has succeeded inachieving the targets it has set for
reduced waste generation per unit ofproduction value, reduced consumptionof chemical substances designatedunder the PRTR law, and an expanded
number of certified zero-emission sites.

Environmental Targets and Results for Fiscal 2007
Environmental Objectives
1. Mitigation of global warming through the development ofenergy-saving measures
2. Promotion of waste reduction and recycling

3. Prevention of atmospheric pollution via VOC emission restraints
4. Control of risks from chemicals

Medium- and Long-term Environmental Targets
Reduce CO2 emissions per unit of sales by 10% by fiscal 2010 (compared to thefiscal 2000 level)
Reduce waste generation per unit of production value
Expand the material recycling of industrial waste
Reduce final landfill waste disposal*1 by 95% by fiscal 2010 (compared to thefiscal 2000 level)
Efficiently use the industrial waste materials generated in the manufacturing stage
and have all domestic sites certified as zero-emission sites*2 by fiscal 2010
Reduce VOC emissions into the atmosphere by 70%*3 by fiscal 2010 (comparedto the fiscal 2000 level)
Reduce the consumption of chemical substances designated under the PRTR law

5. Environmental contribution via the development and marketing of eco
products

Promote environment-related businesses by expanding the sales of environmentally-friendly products
Develop environmentally-friendly products

6. Promotion of environmental communication—

7. Avoidance of environmental risk

Establish and observe appropriate in-house management guidelines that embrace
regulatory controls
Reduce the risk of soil contamination

Maintain appropriate communication with stakeholders

8. Enhancement of environmental education and the environmental
awareness of all employees—

9. Upgrading of environmental management systems at our overseas
production sites—*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 over (subject to approval by the Ecology Center)*3 Target in the industry: 41% reduction by fiscal 2010 (compared to the fiscal 2000 level)

62

TOPPAN CSR REPORT 2008

Environmental Targets and Results for Fiscal 2007

In fiscal 2007, however, Toppan fell
short of achieving its targeted sales inthe environment-related business andits targeted reductions of CO2 emissions
per unit of sales and the VOC emissions
into the atmosphere.

Reviewing Environmental
Targets
Toppan reviewed its targets for fiscal
2008 by evaluating its progress inaccomplishing the Environmental Targets
for fiscal 2007. The Company will planout its environmental activities by setting
15 Medium- and Long-Term Environmental Targets and 16 Environmental
Targets for the current fiscal year.
To help mitigate global warming, theCompany will undertake a host ofenergy-saving measures to reduce CO2
emissions. One of the most important

Conduct internal environmental audits at overseas production
sites: Southeast Asia and the U.S.A.
Monthly records of conformance with local regulatory standards and environment-related data

Evaluations implemented at 58 domestic sites through internal
environmental audits•Former Fukuoka Plant: Soil remediation work was completed
after the two-year groundwater monitoring; the local authority
approved the remediation in November 2007
•Asaka Plant: Groundwater data are now being monitored andreported to the local authority
Expand the number of operational sites that issue Site Eco
Reports: Increased to 20 sites (16 reports in total)
Reviewed the content of e-learning-based programs created in
2004; many points to be revised were found; a review of theoverall content is therefore planned (for fiscal 2008)•Conducted audits at two sites, one in Indonesia and one in
Thailand, in February•Conducted audits at two sites in the U.S.A. in March
Periodically collected data on environment-related issues via
monthly overseas site reports

A

P.68

A

P.69

B

P.71

B

P.69

A

P.68

Overview of Results for Fiscal 2007 and
Future Environmental Targets

Expand the number of operational sites that issue Site Eco
Reports: To 32 sites (24 reports in total)
Implement environmental education via e-learning on an
ongoing basis (follow-up for those yet to participate)

Results and Status for Fiscal 2007
Evaluation For Details
CO2 emissions per unit of sales: Reduced by 4.4% compared toP.72
B
the fiscal 2006 level
Waste generated per unit of production value: Reduced by 7.3%
P.73
A
compared to the fiscal 2006 level
Material recycling rate: 85.3%
B
Final landfill waste disposal: Reduced by 9.7% compared to theBfiscal 2006 level (Landfill disposal: 1,800 tons)
Expand the number of certified zero-emission sites: Increased toA
38 sites
VOC emissions into the atmosphere: Reduced by 5.4% compared
P.74
B
to the fiscal 2006 level
Consumption of chemical substances designated under the PRTR
S
law: Reduced by 8.7% compared to the fiscal 2006 level
Sales in environment-related business: 53.5 billion yen (decreased
P.76
C
by 1.2% compared to the fiscal 2006 level)
Number of registered environmentally-friendly products: 2 items
B
added
Exhibited at Eco-Products 2007 (held on December 13–15, 2007)
PP.70–71
A

Environmental Report

Environmental Targets for Fiscal 2007
CO2 emissions per unit of sales: Reduce by 5% compared to
the fiscal 2006 level
Waste generation per unit of production value: Reduce by 5%compared to the fiscal 2006 level
Material recycling rate: 87%
Final landfill waste disposal: Reduce by 15% compared to thefiscal 2006 level
Expand the number of certified zero-emission sites:
To 35 sites
VOC emissions into the atmosphere: Reduce by 10% compared to the fiscal 2006 level
Consumption of chemical substances designated under the
PRTR law: Reduce by 3% compared to the fiscal 2006 level
Sales in environment-related business: 57.9 billion yen(increase by 7% compared to the fiscal 2006 level)
Expand the number of registered environmentally-friendly
products: 5 new products
Promote environmental communication by exhibiting at
Eco-Products 2007
Observe in-house management guidelines at all operationalsites and review them as necessary
Monitor the operational sites, including the vacant lots ofreconditioned sites

environmental impacts of the printing
industry arises from the use of large
amounts of chemical substances. To
address this problem, the Company willcontinue to reduce its environmental
burden by further reducing its VOC
emissions into the atmosphere and its
consumption of chemical substances
designated under the PRTR law. By theend of fiscal 2008, Toppan will consider
setting new targets beyond fiscal 2011.

A

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

TOPPAN CSR REPORT 2008

63

Environmental Report

Overview of Results for Fiscal 2007 and Future Environmental Targets

Environmental Targets for Fiscal 2008
Environmental Objectives and Mediumand Long-term Environmental Targets

Environmental Targets for
Fiscal 2008

Details on Specific Measures

1. Mitigation of global warming through the development of energy-saving measures•Eradicate energy losses through comprehensive plant audits andReduce CO2 emissions per unit of sales
CO2 emissions per unit of sales:
reviews that cover even routine inspection procedures; developby 10% by fiscal 2010 (compared to the
Reduce by 5% compared to thecross-divisional projects to be undertaken by the personnel infiscal 2000 level)
fiscal 2007 levelcharge of energy management•Examine energy-saving measures using energy-saving checks byoutside sources such as the Energy Conservation Center, Japan•Confirm minor energy losses through verification tests for measuring
data on model devices•Reinforce large-scale energy-saving measures (fuel switchover,
improvements in clean room control)
2. Promotion of waste reduction and recycling
Reduce material consumption and improve recovery rates•Reduce waste generated per unit ofWaste generated per unit of producproduction value by 25% by fiscal 2010tion value: Reduce by 5% compared(compared to the fiscal 2000 level)to the fiscal 2007 level•Share information within the Toppan Group to seek recycling partners
Expand the material recycling of industrial
Material recycling rate: 85%•Monitor recycling processes through on-site inspections for contractors
waste
Examine recycling processing technologies and processing
Final landfill waste disposal: Reduce
Reduce final landfill waste disposal*1 bycontractors
by 15% compared to the fiscal 2007
95% by fiscal 2010 (compared to thelevelfiscal 2000 level)
Separate wastes to condition them as valuable resources, and offer
Expand the number of certified zeroEfficiently use the industrial waste materiwaste management guidance
emission sites: To 40 sites
als generated in the manufacturing stage
and have all domestic sites certified as2zero-emission sites* by fiscal 2010
3. Prevention of atmospheric pollution via VOC emission restraints•Examine methods for the treatment of combined solvents
VOC emissions into the atmosphere:
Reduce VOC emissions into the atmos(combustion or recovery), in order to choose the best
Reduce by 10% compared to thephere by 70%*3 by fiscal 2010
•Determine the status of compliance with laws and regulations on
fiscal 2007 level(compared to the fiscal 2000 level)
VOC emissions into the atmosphere at all operational sites andmake arrangements for the equipment not yet configured to comply
with laws and regulations
4. Control of risks from chemicals•Reduce the consumption of materials containing designated
Consumption of chemical
Reduce the consumption of chemicalchemical substances and shift to alternative materials with low
substances designated under thesubstances designated under the PRTR
content of the same
PRTR law: Reduce by 5%
law•Share information within the Toppan Group to adopt materials
compared to the fiscal 2007 levelcontaining no designated chemical substances
5. Environmental contribution via the development and marketing of eco products•Review the in-house criteria for the registration of environmentally•Review the criteria for environmenPromote the sales of environmentallyfriendly products
tally-friendly products
friendly products•Transfer business operations (policy formulation, sales target setting•Maintain sales at the fiscal 2007 leveland management) to relevant departments
Establish a method to manage environmental labeling information•Promote FSC certification
Reinforce efforts to develop,•Apply LCI in conjunction with the
manufacture, and assess
Packaging Divisionenvironmentally-friendly products
Exhibit at Eco-Products 2008 and environmental forums
Disseminate information through6. Promotion of environmental
exhibitions and lecture presentations
communication
7. Avoidance of environmental risk
Conduct internal environmental audits at 58 operational sites to
Observe in-house management
Establish and observe appropriate inconfirm the validity and compliance of the items and reference values
guidelines at all operational sites andhouse management guidelines that
established under the in-house management guidelines
review them as necessary
embrace regulatory controls
Regularly monitor groundwater and report the results to governmental
Monitor the operational sites, including
Reduce the risk of soil contamination
agencies
the vacant lots of reconditioned sites
Issue a CSR Report and Site Eco Reports
Expand the number of operational
Maintain appropriate communication withsites that issue Site Eco Reports:stakeholders
To 34 sites (26 reports in total)•Conduct environmental education through Company-wide training•Conduct new employee training
8. Enhancement of environmental•Review the overall content of e-learning-based programs and renew•Review environmental education
education and the environmental
the programs to incorporate the latest informationmaterials
awareness of all employees
Conduct audits at eight sites in Eastern Asia
Conduct internal environmental
9. Upgrading of environmental
audits at overseas production sites:
management systems at ourEastern Asia
overseas production sites
Periodically collect data on environment-related issues via monthly
Monthly records on conformanceoverseas site reports
with local regulatory standards andenvironment-related data
*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 over (subject to approval by the Ecology Center)*3 Target in the industry: 41% reduction by fiscal 2010 (compared to the fiscal 2000 level)

64

TOPPAN CSR REPORT 2008

Environmental Investment and Conservation Benefit
Toppan has always consciously striven to improve the effectiveness of its environmental conservation
activities by aggregating and disclosing its capital investment for environmental conservation andthe environmental conservation benefits obtained.

Environmental Conservation
Cost
Toppan has been keeping an environmental account since fiscal 1998 as atool to calculate the cost effectivenessof its investment in environmental conservation. Since fiscal 2005, the Company has focused solely on capital
investment for environmental conservation and the environmental conservation
benefits obtained, in order to exclude
reliance on estimates insofar as possible. This is expected to improve theaccuracy of examinations on cost effectiveness.
Toppan invested 3,167 million yen in
environmental conservation in fiscal
2007, 47% less than it invested the year
before. This reduction is the result ofconsiderable investments in earlier years
to install various types of equipment,
including VOC treatment equipment toprevent atmospheric pollution andwastewater treatment equipment to prevent water pollution. The major capital
investments for fiscal 2007 have beenused to pay for the installation of reprocessing equipment for recycling glass at
production sites in the Electronics field,
the installation of equipment for recov-

1. Investment inequipment toprevent pollution

Investment in equipment
to prevent atmosphericand other forms ofpollution

2. Investment inequipment toconserve theglobalenvironment

Investment in equipment
to conserve the global
environment such as
by mitigating global
warming

3. Investment inequipment tocirculateresources

Investment in equipment
for the adequate
treatment and recyclingof waste materials

4. Investment inequipment for
management
activities

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

Total

Fiscal
2007

807

189

Increase/
Total
Decrease Sum forfrom
the Last
Fiscal
Five
2006
Years
–2,64925

Environmental Conservation Benefit
Major Contents

Increase/
Decrease

Fiscal2007

EnergyTotal energy consumption (1,000 GJ)

1,383

23,826Water

Water consumption (1,000 m3)–184

17,904

Atmosphere

CO2 emission (1,000 t-CO2)

56

1,105

Emission of ozone-depleting
substances (ODP-t)

–1

0.7

NOx emission (tons)

–26

231

SOx emission (tons)

–16

56

Emission of dioxins (mg-TEQ)

82

115

Total effluent discharge (1,000 m3)

14

15,402

Underground penetration (1,000 m3)

–6

38

–400

2,034

BOD (tons)–1

63

COD (tons)

2

26

Total generation (1,000 tons)

25

441

Item

13,747

1,796
Water andsoil
environments

2,161

–168

5,927

Waste
10

–44

371

3,167

–2,836

21,841

On-site evaporation (1,000 m3)

Overview of Results for Fiscal 2007 and
Future Environmental Targets

Major Contents

Equipment for recovering solvents(Fukusaki Plant)

Drying deodorizing equipment(Toppan Graphic Co., Ltd.)

Capital Investment for Environmental Conservation (Million yen)
Item

Glass reprocessing facility (Mie Plant II)

Environmental Report

ering solvents at production sites in the
Living Environment field, and thereplacement of drying deodorizing
equipment for printing at production
sites in the Information & Networks field.
Other capital investments have been
expended to fund energy-saving improvements by switching to brighter lights
without increasing energy consumption,
replacing chillers with new, highly efficient types, and switching from kerosene
to natural gas for fuel. Toppan also
invested resources to create green
spaces for natural conservation, beautification, and landscape maintenance.
Capital investment for environmental
conservation includes investments toadopt equipment for countermeasurestaken by Toppan in response to administrative guidance and complaints andinquiries from neighboring residents.
Another major environment-related
cost in fiscal 2007 was an expenditureof 213 million yen to purify soil andgroundwater pollution. The remaining
expenditure for this measure, 171 million yen, will be appropriated in the fiscal 2008 accounting.

Notes: Period covered: Last fiscal year for each company or subsidiary
See P.74 for details on the conservation benefit gained from thereduction in PRTR release.

TOPPAN CSR REPORT 2008

65

Environmental Management

Environmental Report

Environmental Management Structure
Toppan has established an environmental management system based on the PDCA cycle topromote two types of activities: Eco-protection Activities to reduce environmental burdens associated withproduction processes, and Eco-creativity Activities to develop and market environmentally-friendly products.

Toppan’s Environmental
Management

Characteristics of Toppan’s
Environmental Management System
Toppan’s environmental management
system is uniquely structured. The
PDCA cycle is put into practice at every
operational site, irrespective of ISO
14001 certification. Fifty-seven domestic production sites and two researchfacilities have been pressing ahead with
their environmental activities to achieve
the targets set under the Eco-protection Activity Plan.
The progress of the activities ischecked monthly by the Eco-protection
Promotion Committee to ensure that any
newly arising problems are resolved as
quickly as possible. Every operationalsite sends the Ecology Center reports
on major environmental performancedata, such as results on waste andenergy, either monthly or every half-year.
Toppan prepares an effective structure
for promptly evaluating progress towards
its Environmental Targets and reviewing
the targets as needed.

Toppan’s environmental management
relies on the operation of an establishedenvironmental management system covering the sales, sales promotion, andR&D departments, in addition to theactual production sites. Top management conducts ongoing environmental
management reviews to ensure that the
PDCA cycle, a core part of this system,
continues to serve its function of
improving the efficiency of environmental
measures. Environmental performancedata, meanwhile, are regularly collectedby the Ecology Center in the head office,evaluated and verified by the Director in
charge of the Environment, and reported
to top management via the Management
Committees and other channels.
Improvements to the system are proposed and implemented throughout theentire Company after further reviews.

Status for Obtaining ISO 14001
Certification
Sixty-five sites (50 systems) in the
Toppan Group were ISO 14001 certified
as of April 2008. Toppan Saga Yoki Co.,
Ltd. and Toppan Packaging Service Co.,
Ltd.’s Kyushu Plant newly acquired thecertification in fiscal 2007 (the Kyushu
Plant received the same certification
rewarded to the Ranzan Plant, but withan expanded coverage). Two other operational sites are now establishing systems to prepare for the certification.
Toppan is working towards the certification of the remaining seven main sites inJapan by fiscal 2012.

Structure to Promote
Environmental Activities
Under the control and leadership of the
President & CEO and the Director in
charge of the Environment, Toppan has
set up an environmental management
system in every production site, R&D
department, sales department, andsales promotion department inside andoutside of Japan. The head office

Overview of Environmental Management
ToppanDeclaration on
the Global
Environment
Legal requirements
Environmental aspects
Environmental impact

Eco-protection Activities
Production and Research Sites
Environmental
PolicyEnvironmental
Objectives
Environmental
Targets

Ecoprotection
Activity Plan

Environmental
activities

Progress review
Review

Mediumand Long-term
Environmental
Targets
Environmental burden
assessment on R&D
Green procurement

Eco-protection
Promotion
Committee

Achievement
evaluation/review

Eco-creativity Activities
Sales/SP and R&D Departments
Development
targets
Research
topics

R&D forenvironmentallyfriendly productsReview

System for the Developmentof Environmentallyfriendly Products
Progress review
Achievement
evaluation/review

Environmental
Targets forthe current
fiscal year

66

Ecoprotection
Achievement
ReportGroup-wide
meetingNational
Eco-protection
Meeting
Report andshare resultson environmental
activities

Targeted
sales

TOPPAN CSR REPORT 2008

Sales activities forenvironment-related
business

Eco-creativity
Promotion System
Sales management

Group-wide
meeting

Total

National
Eco-creativity
Meeting
Report andshare results onenvironmental
activities

Environmental
management
review by top
management(as required)
Review of
Medium- andLong-term
Environmental
Targets

Review ofEnvironmental
Targets forthe current
fiscal year

Environmental Management Structure

Ecology Center is directly responsible
for operating the system. Once the personnel in charge of environmental matters at the operational sites determine
the environmental policies and targets
and the measures to implement andachieve them, the Ecology Center works
with the employees of the various divisions and production sites to ensure
implementation. The center also conveys environmental information from thedivisions and production sites back to
the managers at those sites.
Toppan has established in-house systems to promote the Eco-protection andEco-creativity Activities. Under thesesystems the Company advances various environmental measures with guid-ance from the Ecology Center and otherrelevant head office divisions.
In addition, Toppan production sites
convene their own Eco-protection Promotion Committees, each with its own
subcommittees to address specificissues. The Energy Subcommittees inthese sites have continued to pursue
energy-saving activities.
With regard to Toppan’s Eco-creativity Activities, each division has established an Eco-creativity Promotion
System to develop environmentallyfriendly products and environmental
support businesses.

Reinforcing the Integrated Strengthof the GroupAs a Group-wide environmental management initiative, Toppan organizes asemi-annual Toppan Group Environmental Meeting under the auspices ofthe Meetings with the Heads of Related
Companies. 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 to leverage the integrated
strength of the Group.
Every Group company shares environmental information to help develop
environmentally-friendly products.

Environmental Management Structure
President & CEO
Meetings with the Heads of Related Companies
Corporate auditor
Toppan Group Environmental Meeting
Environmental Report

Directors at thehead officeDirector in charge of
the Environment
Ecology Center
Manufacturing Management Division

Related divisions at
the head office

National Eco-protection
Meeting
Environmental ISO
Supervisory Meeting
Eco-protection
Promotion Committee
Energy Subcommittee

Other Subcommittees

Sales and sales
promotion departments

R&D departments

IFrequency: Semi-annual
IMajor objectives: Reporting and discussion
on the achievements of Toppan’senvironmental activities
IFrequency: Annual
IFunction: Strategy planning meeting for
ISO 14001 operations
IFrequency: Monthly, in principle
IFunction: Operational management of theenvironmental management system
IFrequency: Monthly, in principle
IFunction: Streamlining of energy use

Environmental Management

Domestic and overseas
production sites

National Eco-creativity
Meeting
Eco-creativity Promotion System

System for the Development ofEnvironmentally-friendly
Products in Each Division
LCA Working Group

IFrequency: Semi-annual
IMajor objectives: Reporting and discussion
on the achievements of Toppan’senvironmental activities
IFunction: Promotion of Eco-creativity
Activities in the divisions

IFunction: Planning, development, evaluation,
registration, and qualification ofenvironmentally-friendly products

IFunction: Execution of product LCA

IEstablished at each operational site,
depending on site-specific environmental
features (type, scale, etc.)

TOPPAN CSR REPORT 200867

Environmental Report

Environmental Management

Environmental Management Activities
Toppan fully implements the PDCA cycle through internal environmental audits and the environmental management
systems established at its operational sites. The Company also works towards total environmental compliance,that is, the upholding of all environmental regulations.

Internal Environmental Audit
SystemToppan’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 assistant auditors to oversee the environmental management system (EMS), in addition to
the internally certified environmental
auditors. The team begins by inspecting
and evaluating the structural status of
EMSs, compliance with environmentrelated laws and regulations, and compliance with in-house standards at all
the operational sites audited. Next, theteam compiles the Internal Environmental Audit Result Report (a document
specifying necessary improvements
pointed out during audits) and submits
it to the Director in charge of the Environment. The internal environmental audits
are reviewed within the same fiscal year
in order to systematically raise the quality of the audit for the following fiscal
year.

Results of the Fiscal 2007 Audit
The internal environmental audit team
identified 558 issues in need of improvement at 58 domestic sites in fiscal 2007.
To correct the deficiencies pointed out,
each operational site follows an
Improvement Plan with a detailed list ofrequired improvements and deadlines
for completion. Toppan has confirmed
the progress of improvement measureson 96 issues at six operational sites
through internal environmental audit
reviews. The progress and results of theremaining 462 specified issues are to bereviewed during the internal environmental audits for fiscal 2008.
Local hearings and inspections arecarried out every other year, in principle,
at overseas production sites in Asia andthe U.S.A. Two sites in Southeast Asiaand two sites in the U.S.A. were
inspected for local environmental audits
in fiscal 2007. The inspections identified
27 issues in need of improvement. The
main focal points in the inspections were
the implementation and operation ofenvironmental management systems
and the understanding and confirmationof compliance with local environment-

related laws and regulations. Other priorities included the environmental
impacts on water and the atmosphere,
and the daily control of energy andwaste. The overseas sites have followed
the example of the domestic sites bytaking necessary procedures under the
Improvement Plan to achieve better
operational conditions.

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. The sites also strive tocomply with Toppan’s in-house standards, which are usually stricter thannational and local regulatory standards.
The compliance status at every
domestic site is reported to the head
office in the Eco-protection Achievement
Reports every April. Overseas sites,
meanwhile, submit monthly overseas
site reports. Compliance at both domestic and overseas sites is assessed byinternal environmental audits.

Internal Environmental Audit System
A summary of activities conducted throughout the year to ensure

Environmental Audit Reports* compliance with about 200 items for internal environmental audits
specified by the head office

Document audit

A pre-check of the Internal Environmental Audit Reports conducted prior
to the implementation of an on-site audit to clarify environmental aspects ateach operational site

On-site audit

1) Hearings with managers and personnel in charge of environmental
matters at an operational site, based on the Manual on Hearings for theInternal Environmental Audit
2) Verification of the status of environmental management via an
inspection within and around an operational site, based on the Check
Sheet for Inspections for the Internal Environmental Audit

Internal Environmental
Audit Reports

Summary of issues in need of improvement and general comments foreach operational site. Returned to the senior management at each site for
feedback

Plan for the Improvement ofSpecified Issues(Improvement Plan)

Description of a specific improvement plan to address issues identified byinternal auditors as points in need of improvement. Submitted to the head
office upon confirmation by the chief of the Eco-protection Promotion
Committee at the operational site

Internal Environmental
Audit Result Report

Delivered to the corporate auditors and the Director in charge of theEnvironment

Review of Internal
Environmental Audit

A review conducted to assess progress and give appropriate guidance on
issues identified by internal auditors as points in need of improvement*Operational sites that have already acquired the ISO 14001 certification report their activities in the
management review document.

68

TOPPAN CSR REPORT 2008

Internal Environmental Audit System

Internal environmental audit inspection

Environmental Management Activities

fiscal 2007. Drainpipe construction workand an equipment defect resulted in theleakage of plant effluent into nearby
rivers. Toppan promptly took corrective
measures and reported to the relevant
local authorities in both cases. Toppan
will promote more preventive measuresat its operational sites in the future.
Details on the soil and groundwaterpollution at the Itabashi Plant were submitted to arbitration at the Pollution
Examination Commissioner of Tokyo
Metropolitan Government in fiscal 2007.
The case is now being deliberated.
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 prepared oil fences, sandbags, andother safeguards to prevent the outflow
of solvents in the event of leaks or similar accidents at operational sites susceptible to environmental impacts.

Environmental Education
Toppan has been providing a systematic range of environmental educational
opportunities, including environment
training for new employees.
E-learning-based programs are for all
employees. Toppan is now reviewing
their content, with plans to resume themfrom fiscal 2009. In ISO 14001-related
training at the Toppan Business School,
personnel from the Ecology Center
lecture to train Toppan employees
in-house. The internal environmental
auditor training, meanwhile, aims tofoster environmental auditors certified
internally (➞P.83).

Environmental ReportCompliance in Fiscal 2007
No nonconformities related to theatmosphere were detected in any of production sites in Japan in fiscal 2007.
With regard to water, however, one
operational site recorded contaminationlevels exceeding the regulatory standards (in BOD). Toppan immediately
took corrective measures. The contamination turned out to be a temporary
problem associated with construction,and the Company will take measures toreliably prevent recurrence.
Regarding the pollution of soil andgroundwater, there were confirmed
instances of contamination exceeding
national or municipal environmental standards from fiscal 2001 to fiscal 2007
(shown below). Toppan has handled every
case by taking soil remediation measures.
After remediation, the Company continues to monitor the groundwater toensure the reliability of remediation operations. Countermeasures have been
completed for soil and groundwater pollution at the Itabashi Plant (➞P.18).
Two incidents of water contamination
required administrative guidance andmandatory reporting to the authorities in

Purification of Soil/Underground Water Pollution Monitored by
Voluntary Investigation
Location

DetailStatus in Fiscal 2007

Koga City,
Fukuoka

Soil pollution by hexavalent chromium
Groundwater pollution by hexavalentchromium and VOCs

Two-year period forgroundwater monitoring
completed

Nagoya Plant

Nishi Ward,
Nagoya City,
Aichi

Soil pollution by hexavalent chromium(Detected by a voluntary investigation
during disposal into underground pits)

Remediation work
completed; groundwater
now being monitored

Shiga Plant

Higashi-omi
City, Shiga

Soil pollution by hexavalent chromium Remediation work
(Detected by a voluntary investigation completed; groundwaterof areas where substances of concern now being monitored
were formerly used)

Asaka Plant

Niiza City,
SaitamaGroundwater pollution by VOCs
(Detected by a voluntary investigationof well water on the plant premises)

Groundwater now being
monitored

ToppanElectronics, Inc.
(TEI) Miramar
Plant

San Diego
County,California, USA

Soil pollution by heavy metals(lead, etc.) and VOCs

Remediation work
completed; groundwater
monitoring now planned

Itabashi Plant

Itabashi Ward,Tokyo

Groundwater pollution by hexavalentchromium(Detected by a voluntary investigationof well water on the plant premises)

Countermeasure work
completed

Environmental Management

Operational Site
Vacant lot of
the former
Fukuoka Plant I

Internal environmental auditor training by Toppan
personnel

TOPPAN CSR REPORT 200869

Environmental Report

Environmental Management

Environmental Communication Activities
Toppan is developing various environmental communication activities to spread awareness onenvironmental issues among stakeholders inside and outside the Company.

Major In-house
Communication Activities
Toppan Environmental Link
Toppan has set up an intranet system
for raising employee awareness on theenvironment and sharing a wide range
of environmental information and data
inside and outside the Company.
Employees can navigate the intranet
to browse official gazettes on environment-related laws and regulations tolearn about statutory trends, as well as
environment-related websites to promote information sharing among
employees. The intranet also includes
information on environmentally-friendly
products and environmental labelingoutside the Company, and announcements on various environmental forums,
seminars, and events.
The information provided through thissystem activates communication insideand outside the Company.
Formulating 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 in-house publications, businesscards, and other materials to remind
employees of the constant need for environmental action.

Toppan’s Environmental Logo
Toppan aspires to devote increasing attention to
the global environment through its Eco-protection and Eco-creativity Activities. The Environmental Logo expresses Toppan’s corporate
concept and activities. Toppan’s environmental
action is symbolized as a seed that will germinate and grow. The stalk shooting out of theseed symbolizes the “E” of ecology, and the twoleaves represent Toppan’s Eco-protection andEco-creativity Activities.

President’s Ecology Awards
Toppan has incorporated the Ecology
Awards in its biannual lineup of President’s Awards to encourage the environmental efforts of employees bycommending excellent environmental

activities. Employees who have achievedor contributed in the following ways arenominated as candidates to receive theaward: those who significantly contributeto in-house environmental conservation
activities; those who serve as role models through their successes in promoting ingenious measures for improvement;
those who contribute substantially to thedevelopment of environmentally-friendly
technologies or products that win
patents or utility model rights. A groupof employees received an Ecology
Award in fiscal 2007 for their work in
adopting equipment for solvent recovery.
A very serious defect resulting fromnumerous possible causes was detected
at the equipment startup. The persons
on hand worked closely together underhighly difficult conditions to root out thecause by examining all the possibilities
one by one. Their unflagging efforts andeventual success in restoring stable
operation were highly rated.

Environmental Events
Fukuoka Eco-Kids
Junior Eco-Club is an organization of children who
engage in environmental activities, with support
from the Ministry of the Environment of Japan.
The national club meeting in Kitakyushu, Fukuoka
on March 30, 2008 was a great success, drawing some 12,800 visitors in spite of drizzly
weather. Toppan took part in the meeting by holding a card-making workshop, inviting about 80
children to press paper and make postcards from
Cartocans. Many of the parents asked Toppan
about Cartocan and reported their impressions
and opinions. The workshop was originally organized at the request of the host as a venue toraise the environmental awareness among children. Ultimately, however, it provided Toppan withthe opportunity to introduce the environmental
benefits of Cartocan not only to children, but also
to their parents. This made the workshop all themore meaningful for Toppan.

70

TOPPAN CSR REPORT 2008

Eco-Products 2007
Toppan exhibited products in cooperation with its
Group companies (Tokyo Shoseki Co., Ltd.,
Toppan Forms Co., Ltd., Toppan Cosmo, Inc.,
Toppan TDK Label Co., Ltd., and froebel-kan co.,ltd.) at the Eco-Products 2007 exhibition held in
December 2007. The catchphrase for Toppan’s
exhibit was “Toppan eco-products—here, there,
everywhere.” Many of the displays recreatedscenes where Toppan environmentally-friendly
products are used, such as in offices, living rooms,
or convenience stores. The displays enlightened
visitors on a wide range of designs for the environment (DfE) incorporated in everyday products.
They also illustrated environmentally-friendly printing processes and the Cartocan recycling system. As in previous years, visitors were especiallyinterested in hands-on events at the exhibit.
Highlights among them were a coloring session,a letterpress printing workshop, and naturegames. These fun events were arranged forschoolchildren and visitors of all ages, to heighten
their interest in the environment.

Fukuoka Eco-Kids

Eco-Products 2007

Environmental Communication Activities

Disclosing Environmental
Information

Publishing Environmental Reports
Toppan has been disclosing environmental information in its Environmental
Report (re-named the CSR Report in fiscal 2004) since 1998. In line with thedevelopment of its global business,
Toppan has been making the same
report available in English since 2000.
Toppan’s ISO 14001-certified sites havebeen issuing Site Eco Reports, periodic
communications directed to municipalities and residents in surrounding communities, since fiscal 2000 (16 reports
were issued by 20 operational sites infiscal 2007).

Organizing and Participating in
Seminars and Environment-related
Exhibitions
Toppan encourages the public outside
the Company to understand its environmental efforts. It does this mainly by participating in lectures and seminars,
including the conferences of trade andindustrial organizations and programs of
its own. Toppan regards environmentrelated exhibitions as platforms forpracticing environmental communication
activities.

Environmental Report

Communication with Local
Communities
The communities around Toppan’s
plants filed 42 complaints and inquiries(16 of them new) at 10 operational sites
in fiscal 2007, indicating that many
stakeholders were inconvenienced. The
complaints dealt mainly with noise andfoul odors, two forms of urban pollution.
While most of the problems were
promptly solved, problems related to
production activities at two operationalsites require further efforts.
To mitigate noise, Toppan has revised
operating methods and taken soundinsulating measures, such as the installation of sound-proof walls and theintroduction of sound-absorbing materials. To mitigate foul odors, the Company
has stepped up its efforts to install effluent gas treatment equipment at the production sites in which organic solvents
are often used. Toppan is also striving
to properly manage everyday operations
through routine inspections of devices
installed.

Toppan will continue to make capital
investments to improve environmental
equipment and deepen communication
with local residents.

Environmental Lessons
Environmental Management

Toppan dispatched a lecturer to present the
Cartocan as an example of an environmentallyfriendly product at “World Quest Program: An
Introduction to Environment and Social Activities,”
a program held by Benesse Corporation in August2007.
An audience of fourth- to sixth-graders learned
how Cartocan is helping to mitigate global warming. During the easy-to-understand lecture, thechildren took true-or-false quizzes in teams andsaw and touched Cartocans that had been
opened up. After learning more about the features of Cartocan, they formed small discussion
groups to talk about Cartocan and the ways it
can be sold to consumers.
Toppan also supported Benesse in the production of an instructional video on environmental
education by supplying Cartocan materials and alecturer to appear in the video.

In the classroom

Instructional video

TOPPAN CSR REPORT 200871

Environmental Conservation Activities

Environmental Report

Mitigating Global Warming and Saving Energy
Toppan is pushing ahead with efforts to mitigate global warming, one of the most pressing environmental
issues facing the planet, mainly through energy-saving activities to reduce carbon dioxide emissions.

Energy-saving Activities
Toppan is conserving energy to reduce
the emissions of carbon dioxide (CO2)and other greenhouse gasses. To work
towards the Kyoto Protocol targets for
reduced greenhouse gas emissions,Toppan has established a Companywide Medium- and Long-term Environmental Target: to reduce CO2 emissions
per unit of sales by 10% by fiscal 2010
compared to the fiscal 2000 level. The
Company also sets a yearly target basedon the medium- and long-term target.
To meet the Company’s overall target
for the year, every production site sets
individual targets for emissions per unitof production value and emissions perunit of production volume by producttype.
CO2 emissions per unit of sales in fiscal 2006 increased by 12.2% comparedto the fiscal 2000 level and by 2.3%
compared to fiscal 2005, failing to reachthe targeted reduction of 4% year-onyear. Toppan established a higher target
of 5% reduction year-on-year for fiscal
2007, to make up for lost ground in the
Company’s progress towards themedium- and long-term target by 2010.

CO2 emissions per unit of sales werereduced by 4.4% for the year, falling justshort of the target. The reduction wasachieved through stable operation at
newly established production sites in theElectronics field, such as Mie Plant II,
and the effects of various energy-saving
measures. Two factors were responsible for preventing the reduction fromreaching the target: the lower unit pricefor orders received and the startup of
newly installed effluent gas treatment
equipment.
CO2 emissions per unit of sales in fiscal 2007 increased by 7.3% comparedto the fiscal 2000 level. Toppan will takemore intensive energy-saving measuresto accomplish its medium- and longterm target through a combination ofcapital investment and operational
enhancements.
Details of the Company’s Efforts
Toppan will continue to make Companywide capital investments to facilitate fuelswitchovers, improve air-conditioning
control systems for energy-hungry clean
rooms, and replace older equipmentwith higher-efficiency alternatives. Now

CO2 Emissions

Energy Consumption(1,000 GJ)
28,000

Energy consumption
Energy consumption per unit of sales
16.72

21,00014,000

16.54

16.46

(GJ/million yen)
20
17.04

16.40

17,796

18,34814.47

14,02315
15,291

15,764

16,350

1,200

2003

2004

2005

CO2 emissions
CO2 emissions per unit of sales
0.76

0.74

0.73

693

706

730

2006

0
2007
(Fiscal year)(t-CO2/million yen)
1.00
0.75

0.72

0.80

0.67
900

5

2000

(1,000 t-CO2)
1,500

10

7,000

0

that the Company has taken extensive
operational energy-saving measures forboth production and incidental equipment, it will begin implementing more
specialized activities. One problem to fix,
for example, will be the chronic leaks ofcompressed air from production equipment. Compressed air is used in muchof the production equipment. The
Company will apply the effective leakcountermeasures already deployed atcertain sites to other operational sites
across the Company. Toppan will also
strengthen its energy-saving activities bychecking actual conditions and clarifying points to be improved via energysaving reviews. Measures will be taken
to reduce energy loss by visualizing data
in model devices and inviting outside
specialists to conduct energy-saving
checks throughout the Company.
Toppan’s efforts to find new energysaving measures will be intensive andongoing.

650

785

805

0.60

600

0.40

300

0.20

0

2000

2003

2004

2005

2006

0
2007
(Fiscal year)

Note: CO2 emissions are calculated by the method specified in the Guidelines for Calculating Greenhouse Gas Emissions from Businesses (2003) from the
Ministry of the Environment of Japan. When calculated by another method, that specified in the Manual on Calculating and Reporting Greenhouse Gas
Emissions (2007), CO2 emissions in fiscal 2007 amounted to 812,569 t-CO2. The calorific value of the primary energy input associated with electricity
consumption is calculated uniformly as 0.00983 GJ/kWh. The Company does not use the 1990 CO2 emissions as the base year value, since problems
with the accuracy of measurement and expansions and revisions in the scope of data would make a retroactive calculation highly contingent on elaborate estimates. The energy type ratio and other detailed data are shown on P.83. In applying the factors for natural gas, the Company has begun toadopt an individual factor for each gas company. The data for fiscal 2006 and earlier are therefore restated.

72

TOPPAN CSR REPORT 2008

Resource Circulation
Toppan controls waste generation and recycles resources toachieve zero emissions at all domestic sites.

Waste Reduction Activity

From fiscal 2006, Toppan has also
been pursuing the new target of reducing waste generated per unit of production value. The result for fiscal 2007 wasa 7.3% reduction relative to the fiscal
2006 level, meeting the 5% reduction
target for the year. This marked a 20%
reduction against the medium- and longterm target of a 25% reduction by fiscal
2010, compared to the fiscal 2000 level.
The Company will control waste generation on an ongoing basis in the years
to come.

Developing Zero-emission
Targets and Reusing Waste
as Recycled Resources
In a move to standardize its approach
to waste reduction, Toppan launchedactivities to achieve zero-emission targets at a number of plants selected as“zero-emission models” in 1999. Basedon the results achieved at these model
plants, Toppan began certifying “zeroemission sites” in November 2001.
The recycling rate has great influenceon the degree to which the Company
can expect to achieve its zero-emission

Total Waste Generation, Final Landfill Waste Disposal, andRecycling Rate
Total waste generated
Final landfill waste disposal
Recycling rate (recycling amount/total waste generated)
92.9

94.4

95.4

96.3

98.0

(%)
100

98.2

400

Waste Generated Per Unit of
Production Value(tons/million yen)
1.0
0.879
0.8
0.779

80
337.2

321.6

330.9

325.0

324.5

Environmental Conservation Activities(1,000tons)
500

targets. Toppan, therefore, reviewed its
certification criteria and redefined zeroemission sites as operational sites withrecycling rates of 98% or over and zeroemission approval by the Ecology
Center in the head office. The center
certified and registered 38 sites in fiscal
2007.
Toppan began setting a target for its
material recycling rate in fiscal 2006. The
Company recorded an 85% recycling
rate in fiscal 2007, falling short of the
87% target set. Two important tasks infurther promoting material recycling will
be to use waste more effectively inhouse and to outsource material recycling to external businesses. Toppan
pursues the maximum reuse of thewaste generated from every process
throughout business operations, withthe target of having all domestic sites
certified as zero-emission sites by fiscal
2010.

Environmental Report

Waste paper derived primarily from
Toppan’s Information & Networks andLiving Environment fields comprises
71% of the total waste generated at theoperational sites. Waste acids (such aswaste etchant from plants in theElectronics field) and waste plastics(from plants in the Living Environment
field) also make up substantial portionsof the total waste generated.
Toppan attained its medium- andlong-term target set earlier for final landfill waste disposal. For an overall
improvement in its waste management
performance, the Company set a newtarget of reducing final landfill waste disposal by 95% by fiscal 2010, comparedto the fiscal 2000 level. In fiscal 2007,
Toppan reduced final landfill disposal by
10% relative to the fiscal 2006 level,
falling short of the 15% reduction target
for the year. Against the medium- andlong-term target, this resulted in a 92%
reduction from the fiscal 2000 level. The
Company will remain an active proponent of recycling activities as it works toattain the target.

333.6

0.751
0.696

0.6

300

60

200

40

100

20

0.4

0.2

24.0
0

2000

10.5
2003

5.9

3.8

2004

2005

2.0
2006

1.8
0
2007
(Fiscal year)

0

2000

2005

2006

2007
(Fiscal year)

Note: Final landfill waste disposal is direct landfill disposal plus landfill disposal of residues from intermediate treatment. It includes the residues
discharged from recycling processes.

TOPPAN CSR REPORT 200873

Environmental Conservation Activities

Environmental Report

Pollution Prevention and Chemical SubstanceManagement and Reduction
Toppan is working to reduce its burden on the environment and prevent pollution by complying within-house control standards even more stringent than the legal requirements. The Company continued its efforts
to reduce the consumption of chemical substances, especially the consumption of toluene, in fiscal 2007.

Pollution Prevention Activities
Antipollution measures begin with information collection at each production site
to glean an accurate picture of the actual
state of pollution and other environmental burdens. Toppan works actively to
reduce its burden on the environment
and prevent pollution by complying within-house control standards (establishedby the Eco-protection Promotion Committee at each operational site) even more
stringent than the legal requirements.
Preventing Atmospheric Pollution
and Protecting the Ozone Layer
To prevent atmospheric pollution, Toppan
controls smoke- and soot-generating
equipment such as boilers and incinerators by switching fuels and managing
operations under appropriate combustion conditions. The Company has also
introduced VOC effluent gas treatment
equipment for the thorough control of
atmospheric pollutants. The Mediumand Long-term Environmental Target andthe annual target for VOC emissions into
the atmosphere have been reviewed
based on industry targets since fiscal
2006. VOC emissions in fiscal 2007
were reduced by 5.4% compared to fisVOC and Toluene Emissions into the
Atmosphere(tons)
24,000

VOC

Toluenecal 2006, falling short of the 10% target
set. Efforts to reduce emissions were
hindered when product quality concerns
forced operational sites to delay theplanned switchover to alternatives.
Toppan is imposing control in accordance with the relevant laws and regulations and considering the step-by-step
replacement of all equipment that uses
designated chlorofluorocarbons.
Preventing Water and Soil Pollution
Toppan manages wastewater at its
plants by installing wastewater treatment
facilities designed to ameliorate specificproduction processes. Newly introduced
wastewater recycling systems have
improved the rates of wastewater
reusage, particularly in the production
sites with intensive water consumption,such as those in the Electronics field.
These systems have reduced the water
consumption and effluent discharge of
the Company as a whole.
The Company’s principal concern inmanaging its chemical solution storage
tanks is to prevent the leakage of fluids.
Walls have been constructed around thestorage tanks and Toppan personnel
regularly inspect the tanks and piping toNOx and SOx Emissions

Managing Chemical
Substances
Toppan established its Environmental
Target for the consumption of chemical
substances designated under the PRTR
law in fiscal 2006. The Company
reduced the consumption of these substances by 8.7% in fiscal 2007, surpassing its targeted reduction of 3%
year-on-year. The total release and totaltransfer were also decreased by 21.8%
and 18.7%, respectively, compared to
the fiscal 2006 level. The reduction intoluene consumption contributed 60.1%of the consumption reduction, 93.6% of
total release reduction, and 62.7% of
the total transfer reduction. This toluene
consumption reduction resulted from anadoption of alternatives for ink andcleaning solvents and a switchover totoluene-free materials. Toppan will press
forward in its efforts to reduce the consumption of chemical substances designated under the PRTR law in the years
to come. The actual levels of consumption (handle) were first reported in thefiscal 2007 results (➞P.84).
Total Release and Transfer of Chemical
Substances Designated under the PRTR Law

NOx(tons)
250

detect cracks and other flaws before soil
pollution can occur.

SOx(tons)
2,000

Total release

Total transfer

1,812.9

222

20,848208
200 190193

18,0001,500
1,328.4150
1,031.8

12,000

1,000
8,686
6,159

8,218

9,823

0

50

567

558

449

2005

2006

2007
(Fiscal year)

0

2000

Note: Covers operational sites that handle atleast 1.0 ton annually. The data for fiscal
2006 and earlier have been restated basedon the revised methods for calculation.

74

749.5
59

6,000

TOPPAN CSR REPORT 2008

893.0

100

41

36

2004

2005

44

2006

2007
(Fiscal year)

Note: Figures are calculated based on theEnvironmental Activities Evaluation Program issued by the Ministry of theEnvironment in April 2002. The NOx data
for fiscal 2006 and earlier have been
restated based on the revised methods forcalculation.

671.7

525.5

500

0

726.3

2004

2005

2006

2007
(Fiscal year)

Note: Calculated from the release and transfer
of chemical substances designated under
the PRTR law at each operational site.
Dioxins are not included, due to a difference in the counting unit. The total transfer is the sum of transfers into waste andinto sewage systems. The data for fiscal
2006 and earlier have been restated basedon the revised methods for calculation.

Approach to Logistics
Toppan Logistics Co., Ltd., the logistics specialist for the Toppan Group, organizes energy-saving measuresin transportation and other environmental conservation activities through waste reduction and recycling.
It also secures safe transportation throughout all of its divisions.

Efforts for Energy Saving inTransportation

Fiscal 2007 Results

Toppan Logistics operates an ISO 14001certified environmental management
system (EMS) to effectively promote
environmental conservation activities. It
develops EMSs throughout its operational sites, from the Kawaguchi site, itsmajor logistics base, to the Nishigaoka,
Tokorozawa, Niiza, and Atago sites.
Toppan Logistics recycles wastes andother materials generated at its sites bythoroughly separating them for conditioning as valuable resources.

Toppan Logistics operates a safety management system to improve the safetyof its vehicles under the requirements ofthe comprehensive law on transport
safety enforced from 2006.
Its intensive safe transportation efforts
include regular training for drivers, healthchecks before driving, and breathalyzer
testing to prevent driving under the influence of alcohol.

Mileage of Company-owned Vehicles(km/L)
4.5
4.18
4.0
3.73

Environmental Conservation Activities•Promotion of modal shifts to rail transportation (for 5% of distance transport)
Number of rail containers: 25% increase
compared with fiscal 2006•22% improvement of transport truck mileage
compared to the fiscal 2002 level (for 48
company-owned vehicles)•Environmental management system (EMS)
Continued Green Management certification•Recycling of wastes
Recycling rate: 92.7% (5-point increase
compared with fiscal 2006)•Adoption of low-pollution trucks
Adoption of vehicles meeting thestandards of the New Long-term Exhaust
Gas Regulation• Promotion of eco-driving
Education and practical training for drivers(twice a year)•Safety management system
Continued G Mark certification for excellence in operational safety

Environmental Conservation
Efforts

Efforts for Safe
Transportation

Environmental Report

Under the revised Energy Saving Law
enforced from April 2006, Toppan isrequired to undertake energy-saving
measures to reduce CO2 emissions
associated with transportation per unitof transport volume by 1% year overyear. Toppan Logistics Co., Ltd. is conducting energy-saving activities together
with Toppan to meet this mandatory
target.
Measures to reduce CO2 emissions
at Toppan Logistics during fiscal 2007
included an upsizing of company-owned
trucks, an increase in the load efficiencyof trucks, and the promotion of modal
shifts. As a result of these initiatives,
Toppan Logistics reduced CO2 emissions per unit of transport volume by
3.1% compared with fiscal 2006, attaining the target.
In fiscal 2008, Toppan Logistics will
push forward the modal shift from truckbased transport to rail transportation, tofurther reduce CO2 emissions.
To support the Green Managementcertified initiatives applied mainly to company-owned vehicles, Toppan Logistics

implements eco-driving, commissions
low-pollution vehicles, and inspects andmaintains vehicles according to in-housestandards. Eco-driving is also implemented at partner companies to improvetheir gas mileage.

4.25

3.83
3.89

3.5

3.0

2003

2004

2005

2006

2007
(Fiscal year)

Eco-driving course

Efforts under the Revised Energy
Saving Law

Per unit*

Medium-term
Targets (Fiscal
2007–2009)

Fiscal 2007
Results

64.51

64.47

Comparedwith fiscal
–3%
–3.1%
2006
*Per unit: Energy consumption (converted to crude
oil [kL]) per transport volume (ton-kilometers)

Safe-driving course (vehicle maintenance)

TOPPAN CSR REPORT 200875

Environmentally-friendly Products and Environment-related Business

Environmental Report

Developing and Assessing Environmentally-friendly Products
Toppan develops its environmentally-friendly products based on in-house criteria that comply with
ISO 14021, while applying ISO-14040-compliant LCA procedures to quantify the environmental
burdens of its products.

Toppan’s Basic Thinking on
Environmentally-friendly
Products
Toppan develops its environmentallyfriendly products based on its own setof standards established in close consideration of the industries in which thedivisions operate. The overarching criteria are Toppan’s 14 Environmental Points
based on ISO 14021 standards. The
Ecology Center assesses the developed
products and registers those that meetall of the criteria for “environmentallyfriendly products.” Success in developing these products was mixed in fiscal
2007, however, as only two of the eight
products submitted for registration actually met the registration criteria.
Toppan attaches Environmentallyfriendly Product Certification Labels toall of its environmentally-friendly products. These labels fulfill accountability
requirements while enlightening users on
relevant environmental considerations.
Toppan has produced 84 environmentally-friendly items so far (as of theend of March 2008) (➞P.81).

Environment-related
Business

Cartocan is a small, paper-based beveragecontainer made without metals such as aluminum foil. The container can be shipped andstored for long periods at ordinary temperatures.

Toppan fell short of meeting its target
for fiscal 2007, mainly as a result of
weaker sales of environmentally-friendly
products in the electronic device-related
business. The Company intends toreview its Eco-creativity Promotion
System and criteria for registering environmentally-friendly products in theyears to come.
Sales of Environment-related
Business(Million yen)
80,000GL and GX films are clear barrier films madeentirely without chlorine-based resin, based on avapor deposition coating technology. The highbarrier performance of these films against oxygenand moisture locks in the quality of the contents.

63,02760,00056,252 54,151

51,96853,51340,00020,0000Toppan Material Wood is a recycled industrial
material made entirely from waste wood andwaste plastic. This industrial material can be
re-crushed and recycled time and time again,
with no change in its original form and function.

2003

2004

2005

2006 2007(Fiscal year)

Note: The sales of the former Industrial Materials
Division have been excluded from theresults since 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

76

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

13. Easy separation anddisassembly
14. Biodegradability

TOPPAN CSR REPORT 2008

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 potentially containenvironmental hormones or substances banned by industrial organizations.
The consumption of resources is reduced during the materials production and logistics
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, productdesign, and packaging. (Byproducts reused in processes are not included 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 are indicated as such.
The materials used discharge the lowest possible levels of harmful gases during incineration.
Landfill waste is carefully treated to prevent all forms of soil contamination.
Product designs enable easy separation and disassembly. The parts and materials usedsupport product recycling.
The biodegradable and photodegradable materials used in the products break down naturally
and are assimilated back into the environment.

Developing and Assessing Environmentally-friendly Products

Activities by Group
Companies

Managing Chemical
Substances in ProductsGroup companies are also helping toestablish a recycling-oriented society
through production activities that place
importance on the preservation of the
global environment.
Each Group company has establisheda set of Eco-product Standards in linewith industry conditions and the featuresof product categories. These companies
develop, produce, and market products
under their Eco-product Standards.
Total sales in environment-related business stood at 178.1 billion yen* in fiscal
2007, an 8.4% increase from fiscal
2006. The favorable results were mainly
the outcome of robust sales of environmentally-friendly products in publications
printing and industrial material-related
businesses.

Management Flow for Environmentally-friendly Products

Flow of the Environmental Burden
Assessment Method
Environmentally-friendly Products andEnvironment-related Business

Division

To predict the environmental burden of
products quantitatively from the R&D
stage towards the development of products friendlier to the environment, theTechnical Research Institute applied Life
Cycle Assessment (LCA) procedures to
six products under research and development up to fiscal 2006.
In fiscal 2007, the institute establisheda new assessment method based on
LCA results and applied the method toevaluate all the R&D topics. Subjective
evaluations by researchers were compared with quantitative predictions calculated based on multiple criteria, toproduce a set of numerical scores thatquantified the degree to which the topics focused on improving the points withhigher environmental burden. In fiscal
2008, the institute plans to continue toassess R&D topics and use the assessment results to create a system fordeveloping products with lower environmental burden.

Environmental Report*Recycled paper products with fraudulent labeling on their used paper content have recently
appeared in Japan (➞P.18). The sales of environmentally-friendly products potentially affectedby this problem are therefore excluded from thetotal amount.

Manufacturers operating globally areurgently pressed to manage chemical
substances in products in order to minimize risks to the health of consumers
and the global environment by reducing
the levels of hazardous chemical substances in their products insofar as theycan.
Toppan established a set of Guidelines for Management of Chemical Substances in Products in fiscal 2006 andreviewed in-house rules and systems for
quality assurance based on the guidelines. To move forward in improving themanagement rules and systems, theEcology Center and Quality Control
Department collaborated in fiscal 2007
on a series of internal audits at the plants
to assess their management of chemical substances in products. The audits
identified 90 issues in need of improvement. Toppan intends to require eachplant to correct the deficiencies pointed
out.

Environmental Impact
Assessment on R&D Topics

Planning and development ofenvironmentally-friendly products

Plans and develops environmentally-friendly products
Assessment
guidelines
Assesses environmentally-friendly products

Selection of topics to be assessed(about 60%)
Applies for environmentally-friendly products

Ecology
CenterConfirms the divisional assessment

Registers the environmentally-friendly productsEnters the registered data
into the database

Registration
application

Research to identify
environmental points
to be improved

Assignment ofweight to eachenvironmental
burden point by
quantitative analysis

Comparison,assessment

Product manufacturing

TOPPAN CSR REPORT 200877

Environmental Report

Environmentally-friendly Products and Environment-related Business/Considering the Ecosystem

Environmentally-friendly Printing Services
Toppan provides environmentally-friendly printing services at every stage of printed material production,from material selection, design, and plate-making to printing and processing.

Introducing the GPN
Purchasing Guidelines forOffset Printing Services
As a member of the Green Purchasing
Network (GPN) (➞P.45), 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
and papers to surface processing andbinding. Many local governments andcompanies involved in green purchasing
activities have adopted these services.
Production and Plate-making
Toppan saves natural resources andenergy by excluding filming and development processes through the full
digitalization of every stage, from production of the original manuscript andartwork to plate-making.

harmful to both the human body andthe earth’s atmosphere. The Company
has also commercialized a recycled vegetable-oil ink made from used soybean
oil collected from school cafeterias,
restaurants, and other sources.
Providing Environmentally-friendly
Paper
Printing paper is a resource directly
related to the conservation of forest
resources. The types of printing paper
in use today help conserve forest
resources: recycled paper, tree-free
paper, FSC-certified paper, and paper
made with pulp from forest-thinning
operations.

dampening water made with organic
solvent isopropyl alcohol (IPA) and theresulting discharge of liquid waste.
Environmentally-friendly Bookbinding
and Finishing Processes
Fragmentation-resistant hot-melt is anadhesive suitable for use on paper tobe recycled. Besides offering strong
cohesion, it can be completely removed
from printed materials without fragmenting during recycling. Toppan has also
developed methods for bookbinding
and processing to confer outstanding
recyclability. With Eco-binding, for example, printed materials can be boundwithout the stitching wire used in saddle stitching.

Waterless Printing System
The waterless printing system repels ink
with a layer of silicon instead of a layerof water. This eliminates the need for
Toppan’s Advanced Environmentally-friendly Printing Technologies
IColor Management System (CMS): A computer-based color management technology for printing

Using Environmentally-friendly Inks
The new soybean-oil ink developed by
Toppan contains virtually no aromatichydrocarbon, an organic compound

IDigital photography technology: A photographic technology requiring no film
IDirect Digital Color Proof (DDCP): A color proof technology requiring virtually none of the films
previously used for the prepress process
IComputer to Plate (CTP): A plate technology that sends digital data directly to the printing plate

Environmental Considerations in Producing this Report
Toppan proactively applies various environmentally-friendly technologies and materials
in the printing of the Toppan CSR Report.
The Green Purchasing Network plans to
introduce a set of revisions to its purchasing
standards, in order to cope with the recent
emergence of recycled paper products withfraudulent labeling on their used paper content in the Japanese market. To keep up withthe coming revisions, Toppan will consider
adopting recycled paper for its coming
reports.
As in previous years, the body of thisreport is printed on paper made with pulp
from forest-thinning operations. The paper isfully authentic, with no alterations to disguise
its used paper content. Toppan will continue
to promote environmentally-friendly printing
services and the use of paper designed tobenefit domestic forest resources.

78

TOPPAN CSR REPORT 2008

Environmental Considerations in the CSR Report 2008
Processes andSpecific Measures
Materials
Photography
Use of digital photography for the newimages recorded for this year’s report

Environmental Considerations
Elimination of filming and development(conventional photographs from previous reports are now recorded digitally)

Design andediting

Digital processes by DTP

Reduction of mid-process materials
such as artwork

Prepress

Plate-making by CTP

Elimination of the films required formaking plates

Printing

Sheet-fed press waterless printing

Reduction of IPA use, elimination ofwaste fluids

Paper

Body: 70% domestic pulp, including 10%
pulp from forest-thinning operations

Forest resource-saving and proper
forest nurturing

Ink

Recycled vegetable oil made for waterlessprinting

Resource-saving, use of recycledmaterials

Bookbinding
and finishing

Fragmentation-resistant hot-melt(EVA-base)

Improved recycling efficiency

Considering the Ecosystem
To preserve the ecosystem, Toppan procures materials and provides its clients with eco-suggestions forthe protection of the environments where the Company procures materials.

Cartocan2,675 cases (60 rolls per case) of ECOGREEN in fiscal 2007, about 11% morethan it purchased in fiscal 2006.

FSC COC Certification
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
subsequently acquired the COC certification in the fields of securities printing
and publications printing. Toppan is convinced that the diffusion of products with
the FSC logo will enhance forest management and environment-related communication between corporations andconsumers. The Company will actively
propose products with the FSC logo tocustomers.

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). The Company participates in efforts to develop methods
for monitoring CO2 absorption in forests.
Toppan has also participated in the
PPT’s*2 hardwood planting program in
Tasmania, Australia since fiscal 2004.
Toppan, together with relevant companies, seeks to acquire a third-party forest management certification in theseafforested areas and to establish a system for the traceability of wood products.
Toppan has been collaborating instudy and research on plantation as asupporting member of the Japan Overseas Plantation Center for Pulpwood
since fiscal 1999.

Environmental ReportJapan needs to nurture and maintain its
forest resources soundly to provide habitats for diverse species and to help
mitigate global warming. The Forestry
Agency promotes KIZUKAI-UNDOH(Wood Products Utilization Campaign),
a campaign to encourage forest maintenance by promoting the use of domestic lumber, including lumber harvested
from forest-thinning operations.
As a supporter of KIZUKAI-UNDOH,
Toppan supports the sound nurturingand maintenance of the country’s forest
resources by using domestic lumber toproduce its paper-based beverage container, Cartocan.
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 therecycling of empty Cartocans into toilet
paper in January 2002. The Cartocan
recycling system salvages the paper
from unwashed Cartocans and re-commercializes the recycled material. ECOGREEN, an environmentally-friendly toilet
paper, is made from approximately 50%
used Cartocans. Toppan purchased

Environmentally-friendly Products andEnvironment-related Business/Considering the Ecosystem

B-(2)-060003

K0302125

Cartocan obtained the forest-thinning productmark (left). The 3.9 GREENSTYLE MARK, a logoof the KIZUKAI-UNDOH (right); Toppan obtained
the registration number.

ECO-GREEN Purchasing(Case)
3,000

2,675
2,413

2,500
2,000
1,500

1,473

1,486

1,717

1,000
500
0

2003

2004

2005

2006 2007(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 the 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 Company of Australia Pty. Ltd.
*2 PPT: Plantation Platform of Tasmania Pty. Ltd.

TOPPAN CSR REPORT 2008

79

Environmental Data

Environmental Report

Environmental INPUT/OUTPUT Data by Business Field■ Combined Results by Business Field
Category
Material

INPUT

EnergyWater

Chief Components
Total input (tons)

Total

890,031381,542—

1,315,170

0860,11179,569—939,680

Plastic (tons)

5,636

2,176

164,916—

172,728

Glass (tons)

9,319

0

0

—

9,319

Inks (tons)

27,33825,723

136,554—

189,614

Other (tons)

1,304

2,022

503

—

3,829

Total energy consumption (1,000 GJ)

8,826

7,964

6,302

734

23,826

Electricity consumption (1,000 GJ)

7,822

5,367

4,616

581

18,385

Fuel consumption (1,000 GJ)

1,004

2,597

1,687

153

5,441

Water consumption (1,000 m3)

12,614

2,737

2,185

369

17,904

Industrial water (1,000 m3)

1,945

778

482

0

3,205

Municipal water (1,000 m3)

190

970

689

369

2,218

Groundwater (1,000 m3)

10,479

989

1,014

0

12,481

0

2

0

10

12

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

25,075063

025,138CO2 emission (t-CO2)

403,398

361,703309,650

30,597

1,105,348

0

508

190

0

698

NOx emission (kg)34,37380,651

111,135

4,373

230,532

SOx emission (kg)21,3662,107

32,35147

55,871

0

5.4

109.9

0

115

Total effluent discharge (1,000 m3)

11,644

1,851

1,581

326

15,402Public water system (1,000 m3)

9,797

620

963

0

11,381

Sewage system (1,000 m3)

1,847

1,230

618

326

4,021

0

4

35

0

38

860

666

441

67

2,034

BOD (kg)

56,717

1,393

4,838

0

62,949COD (kg)

18,987

3,100

3,889

0

25,975

Nitrogen discharge (kg)

139,676

1,231

8,617

0

149,524

Emission of dioxins (mg-TEQ)

OUTPUT

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

Phosphorous discharge (kg)
Waste

LivingNon-production
Environment
Sites

43,597

Emission of ozone-depleting substances (ODP-kg)

Water andsoil environments

Information &Networks

Paper (tons)

Use of rainwater (1,000 m3)
AtmosphereElectronics

753

232

709

0

1,694

Total generation (tons)

59,496250,694

126,8674,141

441,198

Reused and recycled (tons)

53,241

248,837

122,6443,438

428,160

Final landfill waste disposal (tons)

2,136

796

2,884

88

5,904

Note: The Company refers to the Ministry of the Environment’s Guidelines for Calculating Greenhouse Gas Emissions from Businesses (2003) for its own calculation of CO2 emissions. The calorific value of the primary energy input associated with electricity consumption is calculated uniformly as 0.00983 GJ/kWh.
The data for overseas sites, however, are calculated based on another definition. In the results disclosed in previous years, Toppan quantified the discharges of BOD, COD, nitrogen, and phosphorous into both public water systems and sewage systems. From fiscal 2007, the results will cover only thedischarges into public water systems, based on the Environmental Reporting Guidelines (fiscal 2007 version) from the Ministry of the Environment of Japan.

Green Procurement/Green Purchasing■Toppan’s Green Procurement Standards (Offset Ink*)(Revised in fiscal 2006; data for fiscal 2005 are based on previous standards)

Level 1
1. Avoiding materials harmful tothe human body

Level 2

Fiscal 2005

Fiscal 2006

Fiscal 2007

97.3%

89.1%

86.2%

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

2. Avoiding the use of substances Non-usage of chloride-based resins
known to generate hazardous
substances
3. Considering chemical
substances designated under
the PRTR law

Non-usage of substances
designated under the PRTR law

Identification of substances
designated under the PRTR law(preparing for MSDS)

4. Controlling VOC emissions

VOC content below 1% (non-VOCink): Excluding ink for web press

VOC content below 15% (low-VOCink) or soybean-oil ink■ In-house Green Purchasing Standards and Level of Fulfillment
Product

Purchasing Standards

Fiscal 2005

Fiscal 2006

Fiscal 2007

Copy machines/printers

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

93.7%

96.4%

94.5%

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%

Stationery/office goods

Products endorsed with environment-friendly qualifications such as the Eco Markor Green Mark, and products listed in the eco-friendly product catalogues ofmanufacturers

96.8%

95.8%

99.0%

*Not applicable to gold, silver, and pearl ink
Note: The data for fiscal 2006 calculated based on previous standards have been restated. Results for paper, OA paper, and toilet paper are omitted here,
as the recent problem involving recycled paper products with fraudulent labeling on their used paper content may affect the figures.

80

TOPPAN CSR REPORT 2008

Organizational Structure■ Toppan Group Environmental Meeting
Toyo Ink Mfg. Co., Ltd.

Toppan Forms Co., Ltd.

Tamapoly Co., Ltd.

Tosho Printing Co., Ltd.

Toppan TDK Label Co., Ltd.

NEC Toppan Circuit Solutions, Inc.

Tokyo Shoseki Printing Co., Ltd.

Toppan Logistics Co., Ltd.

Toppan Printing Co., Ltd.

Environmentally-friendly Products■ List of Environmentally-friendly Products
Business
FieldsSecurities
and Cards

Products
Ecothrough card
Paper IC Card
Bulky Waste Processing
Sticker
Recycleco Gift Card
Card for ETC
Rewritable Paper
Toppan Green Paper
Eco Pack(life-size POP display)
Paper Desk Calendar
Ecology Calendar
Eco POP

Commercial
Printing
Cerap
Eco Pack StandEco Pack Multipanel
Eco Floor Sticker
Eco Pack End Panel
Eco Pack Stand, Round-type
EPOP
Recycled vegetable-Oil Ink
Publications Polyurethane Reactive
Hot-Melt
Printing
Non-Vinyl Chloride Lenticular
Lens
Lenticular Screen
Electronics
Anti-reflection film
GL FamilyStanding pouch for refill

Plastic Container Made from
Recycled Materials
Ecogloss (environmentallyfriendly gloss finishing)
Recording Media Packaging
TT Paper Can

Packaging

TL-PAK
EP-PAK (EP-GL)
EP-PAK (Al)Stand-up Laminated Tube
Recyclen Cap
AP Cartons
Micro-Flute
TP-Tray
Corrugated Absorber
AD-CaseCartocanResource-saving, use ofsafe materials
Resource-saving
Suitability for disposal
Resource-saving (reduced
use of materials)
Resource-saving (reduced
use of materials)
Use of recycled materials
Resource-saving (reduced
use of exhaustible materials),use of recycled materials
Resource-saving (reduced
use of exhaustible materials)
Easy separation and disassembly
Use of recycled materials
Resource-saving (reduced
use of exhaustible resources)
Resource-saving (reduced
use of exhaustible resources)
Resource-saving (reduced
energy usage in logistics)
Resource-saving (reduced
energy usage in logistics)
Resource-saving(reduced use of materials)
Easy separation anddisassembly
Resource-saving (reduced
use of energy in logistics)
Resource-saving (reduced
use of energy in logistics)
Recyclability
Recyclability
Resource-saving(reduced use of materials)
Recyclability

Products

Environmental Points

Paper Cup Made from
Recycled Paper
Cup made from Tree-Free
paper
Biodegradable Package
Cylindrical Paper Cartridges

Suitability for disposal
Use of recycled materials
Resource-saving(reduced use of materials)
Use of recycled materials
Suitability for disposal
Long product life
Use of recycled materials
Resource-saving(reduced use of materials)
Use of recycled materials
Use of recycled materials
Use of recycled materials,
suitability for disposal,energy saving
Suitability for disposal
Resource-saving
Reusability
Suitability for disposal
Resource-saving
Resource-saving
Use of safe materials
Use of recycled materials
Easy separation and easy
disassembly
Suitability for disposal

Coated Barrier Film
GL-C Bottle
GX film
Jar Plus
Tray AllGL Film Lined Paper Cup
Double-Wall Barrier Cup
Oil-Proof Paper
Functional Coated Paper
In-Mold Barrier Cup
Tamper Evident Recyclen Cap
Easy peel-off thermo-cap for
PET bottles
Ecoband
Water-based Cold Seal
Biodegradable Plant Pot
Barrier Cup (NSP Process)
Plastic Clip
Notchless Easy-cut Container(AL type)

Packaging

Recycled PET Clear Case
ALUGLAS
Stripping and heat-sensitive
label for glass bottles
Food container made fromheat-resistant paper
Paper carton with temper
evident closure
One-piece occlusion-preventive
plug for TL-PAKs
Sealed paper tray
Flexible packaging materialusing paper
Clear UV-Blocking Film
Injection molded articles ofbiomass-plastics
EL-CaseOil-proof paper for fluorine-free
cardboard
Paper cup made from pulp
from forest-thinningGL-compliant back sheet forsolar cells
Paper composite container

Use of recycled materials
Resource-saving(use of byproducts)
Biodegradability
Resource-saving (reduced
use of energy in logistics)
Suitability for disposal
Resource-saving
Resource-saving
Resource-saving
Easy separation anddisassembly
Resource-saving
Resource-saving
Use of safe materials
Recyclability
Resource-saving
Easy separation anddisassembly
Easy separation anddisassembly
Resource-saving
Reduced release ofchemical substances
Biodegradability
Resource-saving
Recyclability
Resource-saving(reduced energy expended
in manufacturing)
Recyclability
Suitability for disposal
Easy separation anddisassembly
Resource-saving
Resource-saving
Resource-saving
Resource-saving
Resource-saving
Environmental Data

NeovertEcotainer

Business
FieldsEnvironmental Report

Bottled Pouch

Environmental Points

Suitability for disposal
Resource-saving
Easy separation anddisassembly
Use of safe materials
Resource-saving

Suitability for disposal, longproduct life
Resource-saving,recyclability
Pouch-type fragrance container Resource-saving,recyclability
Resource-saving,
Resource-saving Cartocan
recyclability(rectangular type)
Reduced release of
Packaging materials usingchemical substances, use
low-migration type adhesivesof safe materials
Easy separation and disasDelayed-tack label for glass
sembly, resource-saving
bottles (film type)

TOPPAN CSR REPORT 200881

Environmental Report

Environmental Data

ISO 14001 Certification (50 systems, 65 operational sites as of April 1, 2008)■Overseas Subsidiaries■ Toppan Printing Co., Ltd. and Production Subsidiaries

Group Company

Division/Operational Site
Shiga Plants (Electronics Division/Semiconductor
Solutions Division/Optronics Division)

Registration
Registrar
Date
JQA
Jul. 1998

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

DNVMay 2002

Toppan Printing Co. (America), Inc.

DNV

Dec. 2002

Electronics Division (Kumamoto Plant)

JQA

Nov. 1998

Toppan Chunghwa Electronics Co., Ltd.

SGS

Oct. 2003

Toppan Cosmo, Inc. (Kashiwa Plant/Satte Plant,
Toppan Decor Products Inc.)

JQA

Mar. 2000

Toppan Printing Co., (Shenzhen) Ltd.

SSCC

Dec. 2003

Electronics Division (Niigata Plant) and NEC
Toppan Circuit Solutions, Inc. (Niigata Plant)

JQA

Apr. 2000

Toppan CFI (Taiwan) Co., Ltd.

SGS

Nov. 2004

P.T. Toppan Printing Indonesia

LRQA

Nov. 2004

Sakado Site

JQA

Oct. 2000

Toppan Printing Co., (Shanghai) Ltd.

CEC

Feb. 2006

Information and Communication Division(Ranzan Plant)

JQA

Nov. 2000

Toppan SMIC Electronics (Shanghai) Co., Ltd.

BSI

Feb. 2007

Packaging Division (Akihabara Office/Ebie Office*)

JQA

Mar. 2001

Itabashi Site (including Toppan Seihon Co., Ltd.)JQA

Feb. 2002

Major Environment-related Laws Involving the Printing
Industry in Japan

Fukusaki Site (including Wakayama Plant,
Toppan Plastic Co., Ltd.)JQA

Jul. 2002■List of Laws

Toppan Graphic Co., Ltd.

JQA

Aug. 2002

Takino Plants (Information and Communication
Division/Packaging Division)

JQA

Oct. 2002

Gunma Site (including Tatebayashi Plant)

JQA

Jul. 2003

Asaka Plants (Information and Communication
Division/Semiconductor Solutions Division)

JQA

Dec. 2003

Toppan Electronics Fuji Co., Ltd.

JQA

Jun. 2004

West Chugoku & Shikoku Subdivision (Hiroshima
Office/Kannabe Toppan Co., Ltd.)

JQA

Oct. 2004

Kansai Area
(Kansai Commercial Printing Subdivision*/
East Chugoku & Shikoku Subdivision/
Kansai Securities Printing Subdivision*)

JQA

Nov. 2004

Tohoku Division

JQA

Mar. 2005

Technical Research Institute

JQA

May 2005

Hokkaido Division (Sapporo Plant/Chitose Plant)

JSA

Jun. 2005

Electronics Division (Mie Plant I)

JQA

Jan. 2006

Optronics Division (Satte Plant)

JQA

Mar. 2006

Toppan Plastic Co., Ltd. (Koshigaya
Plant/Kawaguchi Plant/Sagamihara Plant)

QMI

Dec. 2006

Toppan Packaging Service Co., Ltd.
(Ranzan Plant/Kyushu Plant)

JQA

Feb. 2007

Packaging Division (Sagamihara Plant)

QMI

Mar. 2007

Toppan Saga Yoki Co., Ltd.

QMI

Nov. 2007*“Ebie Site” consists of the Ebie Office, the Kansai Commercial Printing
Subdivision, and the Kansai Securities Printing Subdivision.
Note: The names of divisions and operational sites accord with those mentioned in the review report issued in fiscal 2007 by the registrars.
■ Domestic Group Companies
Registrar Registration
Date
NEC Toppan Circuit Solutions, Inc. (Toyama Plant)
JQA
Jan. 1997
Group Company/Operational Site

82

Siam Toppan Packaging Co., Ltd.

Registrar Registration
Date
MASCI
Apr. 2002

Total Media Development Institute Co., Ltd.
(Entire company)

JSA

Toppan Forms Co., Ltd. (Hino Plant)

JQA

Jun. 2001

Toppan Label Co., Ltd. (Fukushima Plant)

JQA

Nov. 2001

Toppan Logistics Co., Ltd. (Nishigaoka Site,
including the Kawaguchi transport department)

JQA

Oct. 2002

Mar. 2001

Toppan Prosprint Co., Ltd. (Mito Plant)

JSA

Jan. 2004

Toppan Forms Co., Ltd. (Fussa Plant)

JQA

Feb. 2004

Toppan Forms Co., Ltd. (R&D Center)

JQA

Mar. 2004

Toppan Containers Co., Ltd.
(Saitama Plant/Miyagi Plant/Sano Plant)

JQA

Apr. 2004

Toppan Forms Tokai Co., Ltd. (Nagoya Plant)

JQA

Aug. 2004

Toppan Forms Kansai Co., Ltd. (Osaka Plant)

JQA

Dec. 2004

Toppan Forms Nishinihon Co., Ltd. (Kyushu Plant)

JQA

Jan. 2005

Toppan Prosprint Co., Ltd.
(Koto Production Center)

JQA

Mar. 2005

Toppan Forms Kansai Co., Ltd. (Settsu Plant)

JQA

Mar. 2006

Toppan Forms Co., Ltd. (Kawamoto Plant)

JQA

Aug. 2006

Toppan Forms Kansai Co., Ltd. (Kobe Plant)

JQA

Sep. 2006

TOPPAN CSR REPORT 2008

Basic Stance and Rules
The Basic Environment Law
Law for Promotion of Nature Restoration
The Basic Law for Establishing the Recycling-oriented Society
Legislation to Implement a Basic Law on Energy Policy
Law Concerning Increasing the Desire for Environmental Conservation andPromoting Environmental Education
Law Concerning the Promotion of Environmentally Conscious Activities ofSpecified Businesses through the Promotion of the Provision ofEnvironmental Information
Eco-protection Field
Air Pollution Control Law
Water Pollution Control Law
Sewerage Law
Septic Tank Law
Law Concerning Special Measures for Conservation of the Environment of
the Seto Inland Sea
Soil Contamination Countermeasures Law
Offensive Odor Control Law
Noise Regulation Law
Vibration Regulation Law
Industrial Water Law
Law Concerning the Rational Use of Energy
Law Concerning the Promotion of 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
Law Concerning the Recovery and Destruction of Fluorocarbons(Fluorocarbons Recovery and Destruction Law)
Law Concerning Reporting, etc. of Releases to the Environment ofSpecific Chemicals and Promoting Improvements in their Management
Law Concerning Special Measures against Dioxins
Law Concerning Special Measures for Total Emission Reduction of
Nitrogen Oxides from Automobiles in Specified Areas
Law Concerning the Protection of the Ozone Layer through the Control ofSpecified Substances and Other Measures
Law Concerning the Promotion of 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
Law for the Promotion of Sorted Collection and Recycling of Containers
and Packaging
Law for the Conservation of Endangered Species of Wild Fauna and FloraEnergy Type Ratio and Consumption

Environmental Education■Energy Used by Type for Fiscal 2007
(in terms of caloric value)■Fiscal 2007 Results of Toppan’s Environmental Education

Diesel oil and gasoline
0.0%

LPG 0.8%
Kerosene 1.0%
A fuel oil 1.5%

Training or Education

Contents

New employee training

General environmental education (introductory level)

e-learning

Environmental issues involving corporations andToppan Group activities

ToppanBusiness School

Purchased
electricity
73.7%

Natural gas
23.0%

Optional training

Challenge School

Internal environmental
auditor training

Number of Trainees

28

Introduction to environment-related laws

25

Seminar to enhance the skills of ISO 14001 internal
auditors

18

Three courses related to the environment

20Internal environmental auditor training program

127

Promotion of Waste Reduction and Recycling

Operational Site

(GWh)
1,500
1,326
1,134

1,376

2004

2005

2006

2007
(Fiscal year)■Natural Gas Consumption(1,000 Nm3)
100,000
85,26788,33390,414

93,94980,00040,00020,000

0

2004

2005

2006

2007
(Fiscal year)

3,821.4

3,785.2

99.05%

2

Information and Communication Division(Ranzan Plant)

1,044.5

1,044.5

100.00%3

Semiconductor Solutions Division (Asaka Plant)

400.4

400.3

99.98%

4

Electronics Division (Mie Plant I)

6,125.3

6,070.6

99.11%

5

Electronics Division (Mie Plant II)

1,414.4

1,404.6

99.31%

6

Electronics Division (Kumamoto Plant)

12,189.3

12,081.4

99.11%

7

Toppan Electronics Fuji Co., Ltd.

337.0

332.2

98.58%

8

NEC Toppan Circuit Solutions, Inc. (Toyama Plant)

4,298.2

4,296.2

99.95%

9

Electronics Division (Satte Plant)

1,290.4

1,288.6

99.86%

10

Electronics Division (Shiga Plant II)

1,069.5

1,069.5

100.00%11

Information and Communication Division(Itabashi Site)

17,533.6

17,453.2

99.54%

12

Information and Communication Division(Asaka Site)

11,623.8

11,591.6

99.72%

13

Information and Communication Division(Sakado Site)

28,519.6

28,519.6

100.00%14

Toppan Graphic Co., Ltd.

46,216.7

46,216.8

100.00%15

Toppan Seihon Co., Ltd.

30,616.7

30,616.7

100.00%16

Packaging Division (Sagamihara Plant)

21,527.8

21,484.4

99.80%

17

Toppan Containers Co., Ltd. (Saitama Plant)

9,199.3

9,076.7

98.67%

18

Toppan Containers Co., Ltd. (Sano Plant)

3,895.2

3,871.4

99.39%

19

Toppan Containers Co., Ltd. (Miyagi Plant)

4,010.1

3,978.1

99.20%

20

Toppan Containers Co., Ltd. (Kumagaya Site)

263.2

263.2

100.00%21

Toppan Plastic Co., Ltd. (Koshigaya Plant)

616.5

609.0

98.78%

22

Toppan Plastic Co., Ltd. (Sagamihara Plant)

113.1

113.1

100.00%23

Toppan Packaging Service Co., Ltd. (Ranzan Plant)

460.3

457.3

99.36%

24

Toppan Packaging Service Co., Ltd. (Kyushu Plant)

178.9

178.9

100.00%25

Toppan Decor Products Inc. (Kashiwa Plant)

3,661.9

3,661.9

100.00%26

Toppan Decor Products Inc. (Satte Plant)

4,851.6

4,851.6

100.00%27

Toppan Harima Products Co., Ltd.

309.2

307.6

(kL)
12,00011,33499.48%

28

Information and Communication Division(Takino Commercial Printing Plant)

12,589.5

12,589.5

100.00%

9,968

10,00029

Packaging Division (Takino Packaging Plant)

3,918.9

3,915.0

99.90%

30

Information and Communication Division(Takino Securities Printing Plant)

8,000

1,316.9

1,314.9

99.85%

31

Information and Communication Division(Nagoya Plant)

4,616.8

4,589.3

99.40%

32

Mikkabi Toppan Printing Co., Ltd.

2,968.8

2,952.5

99.45%

33

Nishinihon Division(Fukuoka Plant Manufacturing Department 2)

5,916.8

5,845.6

98.80%

34

Toppan Saga Yoki Co., Ltd.

231.5

228.8

98.85%

35

Information and Communication Division(Sendai Plant)
Packaging Division (Sendai Plant)

3,884.4

3,813.7

98.18%

36

Hokkaido Division (Sapporo Plant)

2,759.3

2,757.9

99.95%

37

Toppan Prosprint Co., Ltd. (Mito Plant)

3,482.5

3,476.2

99.82%

38

Toppan Prosprint Co., Ltd. (Koto Plant)

1,807.8

1,803.2

99.75%

7,469

6,000
5,033
4,000
2,000
0

2004

2005

2006

2007
(Fiscal year)

Note: The calorific value of the primary energy input
associated with electricity consumption is
calculated uniformly as 0.00983 GJ/kWh.

TOPPAN CSR REPORT 2008

Environmental Data

■Kerosene Consumption

Recycling
Rate (%)

Environmental Report

60,000Total Waste
Recycling(tons)

Information and Communication Division(Asaka Securities Printing Plant)

1,000

0

(Certified December 2007)

Total Waste
Generation(tons)

1

1,182

500

0
(Sum total: 20,123)

Introduction to ISO 14001■Zero-emission Sites (TZERO-07)■Electricity Consumption

457

83

Environmental Data

Environmental Report

Preventing Pollution/Management and Reduction of Chemical Substances■ Fiscal 2007 Toppan PRTR Survey and Results
PRTR No.

(Unit: kg/year)

HandleChemicalReleases

1. Atmosphere

Transfer as
Waste

3. Soil

2. Water

4,599

16

2-amino ethanol

80,907

0

0

0

0

24

Linear alkylbenzenesulfonate and chlorides

2,980

0

0

0

0

231

40

Ethyl benzene

40,609

7,112

7,112

0

0

2,125

45

Ethylene glycol monomethyl ether

8,923

460

460

0

0

1,252

46

Ethylene diamine

1,973

0

0

0

0

658

63

Xylene85,74810,657

10,657

0

0

2,985

64

Silver and water-soluble compounds

1,855

0

0

0

0

0

68

Chrome and trivalent chromium compounds

16,946

11

0

11

0

6,776

69

Hexavalent chromium

21,056

0

0

0

0

751

108

Inorganic cyanogens compounds

4,892

0

0

0

0

152

132

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

2,828

2,828

2,828

0

0

0

179

Dioxins(1,175 mg-TEQ)(110 mg-TEQ)(110 mg-TEQ)

00(1,065 mg-TEQ)

207

Water-soluble copper compounds

229,541224

1,3,5-tri-methyl benzene

227

1,703,424

536

0

536

0

10,972

3,672

3,672

0

0

6,312

Toluene4,681,216

499,038

499,03800400,046

231

Nickel

107,628

0

0

0

0

0

232

Nickel compounds

59,532

31

0

31

0

57,641

254

Hydroquinone

1,156

0

0

0

0

1,156

304

Boron and its compounds

2,738

410

0

410

0

658

309

Poly (oxyethylene) nonylphenyl ether

3,261

652

652

0

0

2,544

310

Formaldehyde

43,970

93

93

0

0

0

311

Manganese and its compounds

10,251

0

0

0

0

8,652

6,892,866

525,501

524,512988

0

726,079

Total

Notes: Period covered: April 1, 2007–March 31, 2008
Substances designated: The 22 substances shown above
Operational sites covered: Sites that handle more than 1.0 ton of Class I designated chemical substances per year. (Or specified Class I designatedchemical substances in excess of 0.5 tons per year.)Materials transported out from operational sites are listed under “Transfer as Waste” even if they are sold as resources.

Atmospheric Emissions

Waste Disposal and Recycling by Type■Fiscal 2007 Results at Toppan■Ratio of Greenhouse Gas Emissions by Type(in tons of CO2 equivalent)(Unit: ratio: % total: t-CO2)

Fiscal Year

CO2

CH4

N2O

Total

Type of
Waste

Disposal(tons)

Ratio

Recycling
Rate

2004

99.91

—

0.09

706,751

Waste paper

237,666

71.2%

99.7%

Recycled paper

2005

99.92

—

0.08

730,356

Waste plastic

28,205

8.5%

97.7%

RPF, plastic materials

2006

99.93

—

0.07

785,562

Waste acid

18,937

5.7%

92.5%

Neutralizer

2007

99.93

—

0.07

805,109

Waste oil

10,283

3.1%

93.9%

Recycled oil, fuelWaste alkali

18,141

5.4%

92.1%

Neutralizer

Sludge

9,646

2.9%

95.2%

Roadbed materials

Metal chips

5,356

1.6%

99.4%

Metal materials

Wooden chips

1,990

0.6%

96.1%

Chips, paper materials

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

Fuel Use

Waste
Incineration

Total

1,865

0.6%

73.1%

Roadbed materials

354

706,751

Glass chips

720

0.2%

96.4%

Glass materials

61

35

4

730,356

Other

836

0.3%

62.8%

—

2006

64

31

4

785,562

Total

333,646

100.0%

98.2%

—

2007

65

32

4

805,109

Fiscal Year

Electricity
Use

2004

61

2005

Note: Calculated by referring to the Ministry of the Environment’s Guidelines
for Calculating Greenhouse Gas Emissions from Businesses (2003).
In applying the factors for natural gas, the Company has begun toadopt an individual factor for each gas company. The data for fiscal
2006 and earlier are therefore restated.

84

Primary Reusage

TOPPAN CSR REPORT 2008

Third-party Opinion
Toppan greatly improved its CSR reportonce again this year, adding to theimprovements of the previous report interms of the volume and depth of theinformation disclosed. The essence of
CSR is to prevent actions that may
cause social problems, and to takeactions to address or work with social
issues in ways fully transparent to stakeholders. Toppan can be rated highly forits steady efforts to establish CSR foundations.
In its Executive Message, Toppan
hammers home its goal of contributing
to the creation of a sustainable society
and clearly describes the corporatesocial responsibilities Toppan recognizes
as its own. The Company established
the CSR Promotion Department and the
CSR Promotion Study Group to engage
stakeholders during the year.
As I foresee it, the CSR Promotion
Study Group will not be a forum for dialogue to embellish the pages of thereport, but a mechanism to elicit fixedpoint observations within a routine
PDCA cycle capable of securing stakeholder engagement. I expect the study
group to branch out with the inclusionof female members. Diversity at every
level in corporations and in government
is an important underpinning for a gender-equal society.
In Special Report 1, Toppan affirms
its commitment to supporting work-lifebalance for the enhancement of job satisfaction and the pride its employees
take in their work. The ideal Toppan has
in mind can be likened to the “decent

work” (work with human rewards) concept promoted by the International
Labour Organization (ILO) as a labor
challenge for the 21st century. In bothcontexts, work-life balance is considered from a comprehensive viewpointwith emphasis on the quality (job satisfaction and pride in work) and quantity(working hours) of labor. Toppan has
placed overriding priority on childrearing
measures such as programs to offer
continuous employment and reemployment for female personnel raising children. Even so, I expect the Company toestablish more comprehensive long- andmedium-term targets in the years to
come.
Companies nowadays devote carefulattention to employee job satisfaction,
as I mentioned earlier. The number ofcompanies that conduct surveys toassess the degree of job satisfaction
among employees has more than doubled. A constant and accurate grasp of
employee job satisfaction is vital forcompanies not only when they selectmeasures to improve labor productivity,
but also when they self-evaluate their
CSR efforts.
The educational support to improve
literacy reported in Special Report 3
really hits a target as an activity to fulfill
corporate social responsibilities for
Toppan as a company that contributes
to the development of information andculture through printing. Though thecharity concerts are modest in scale,they meet the needs of the times by
widening the range of social contribu-

tion activities, in association with
Toppan’s core businesses, for the support of developing countries.
The Environmental Report provides
ample information to deepen the reader’s
understanding, especially the data section. As companies in Japan strive tocope with global warming, their mostpressing task is to establish post-Kyotoprotocol targets. The Executive Message
has affirmed Toppan’s pledge to position its measures for global-warming
mitigation at the top of its agenda in thenext Medium- and Long-term Environmental Targets. Though more should
surely be done to realize Toppan’s existing goals towards pursuing the coming
targets, the Company can be rated
highly for making continuous efforts andattaining quantifiable achievements in
reducing the consumption of chemical
substances designated under the PRTR
law. The Company made great progress
on overall environmental fronts by fulfilling target values and steadily improving
performance in areas where it has fallen
short of its targets. I have every confidence that Toppan will continue tostrengthen its activities.

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

ProfileMr. Midorikawa worked for many years in the
Kanagawa prefectural government, mainly inlabor and consumer administration. After retiringfrom the prefectural service, he served as
Executive Officer of the Kanagawa Prefecture
Small and Medium Business Management Association. Mr. Midorikawa’s NGO/NPO achievements include the founding of the Green
Consumer Research Group in 1991 and participation in The Valdez Society, a body that
researches and proposes concepts and solutions related to corporate environmental responsibilities through collaboration between citizens
and companies (Mr. Midorikawa joined in 1991).
He has authored several books, including CSR
Practice Methods with Visible Effects (co-authored)
and CSR Management (co-authored).

TOPPAN CSR REPORT 200885

Third-party Opinion and Independent Review

Independent Review
The conclusions of our independent review are presented in
the Independent Review Report. The following summarizes
improvements from the previous year and issues to be further
improved, as identified in the course of our review.
This is Toppan’s first CSR report prepared in accordancewith the Global Reporting Initiative (GRI)’s Sustainability
Reporting Guidelines Version 3.0 (the G3 Guidelines), the defacto global standard for sustainability reporting. To comply
with the G3 Guidelines, Toppan has greatly improved the clarity of the report boundary and the process for defining thereport content.
The CSR Promotion Study Group is worthy of special mention. This is a body established to provide the opportunities for
dialogue with experts outside the Company. The deeper understanding Toppan acquires through its dialogues with external
experts and other stakeholders will help the Company to better prioritize the topics and indicators to be disclosed in the
CSR report, from the viewpoint of “materiality.”
The boundaries for some personnel and environmental performance data are relatively limited. We recommend that
Toppan consider how it can push the boundaries for thesedata outward in the future. One of the practical challenges for
Toppan to accomplish this will be to collect the data on overseas environmental performance with reasonable accuracy.
The section on environmental performance in the report discloses the material inputs for the first time and gives lucid,
clearly understandable explanations of environmental aspects

for each business field. With regard to performance indicatorssuch as the material recycling rate and consumption of chemical substances designated under the PRTR law—indicators
for which environmental targets are set—we expect futurereports to present the performances of previous years as wellas the current fiscal year. We also noticed that the definitions
and calculation methods for some of the performance indicators are slightly different between overseas and domestic sites.
The gaps should be filled in due course.
As for social and economic performance indicators, we think
the Company should consider extending its list of indicators to
be disclosed, in consideration of materiality. Several of the core
indicators prescribed in the G3 Guidelines could be additionally included.

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

Level of Compliance with GRI Sustainability Reporting Guidelines 2006

86

TOPPAN CSR REPORT 2008

C

C+

B

B+

A

Report on all criteria
listed for Level C plus:
1.2
3.9, 3.13
4.5-4.13, 4.16-4.17

Same as requirementfor Level B

Not RequiredManagement
Approach Disclosuresfor each Indicator
Category

Management
Approach Disclosuresfor each Indicator
Category

Report on a minimumof 10 Performance
Indicators, including atleast one from eachof: Economic, Socialand Environmental.

Report on a minimumof 20 Performance
Indicators, at least
one from each of
Economic, Environmental, Human rights,
Labor, Society,
Product Responsibility.

Report Externally Assured

Report on:
1.1
2.1-2.10
3.1-3.8, 3.10-3.12
4.1-4.4, 4.14-4.15
Report Externally Assured

G3 Performance
Indicators &Sector Supplement
Performance Indicators

OUTPUT

G3 Management
Approach
Disclosures

OUTPUT

G3 Profile
Disclosures

OUTPUT

Report Application Level

This report is rated B+
among the levels definedin the G3 Guidelines.

Report on each coreG3 and Sector
Supplement* Indicatorwith due regard to theMateriality Principle
by either: a) reportingon the Indicator orb) explaining thereason for its
omission.

A+

Report Externally Assured

understand the extent to which areport complies with the guidelines, aswell as to have the reporting organizations identify their current levels of
improvement.

Standard Disclosures

Global Reporting Initiative (GRI) is a
nonprofit organization established toformulate international guidelines forsustainability reporting. Entities of every
type can use these guidelines in theirwork to create their own sustainability
reports. GRI prepares Sustainability
Reporting Guidelines in collaboration
with various stakeholders. The first edition of the guidelines was issued in
2000; the third (G3 Guidelines) in 2006.
Toppan understands that intensive
stakeholder engagement was required
to produce the guidelines. For this reason, the Company recognizes theguidelines as an important reference forunderstanding the types of information
readers want to know.
The G3 Guidelines require reportingorganizations to declare the level towhich they have applied the guidelines.
This is done to help readers easily*Sector supplement in final version*Please access to http://www.toppan.co.jp/english/csr/ for the GRI content index.

TOPPAN CSR REPORT 200887

Third-party Opinion and Independent Review

Company Reaction to the Third-party Opinion andIndependent Review
Toppan continuously asks for third-party
opinions and independent reviews, inrecognition of their tremendous importance for thinking deeply about CSR initiatives and improving the content andquality of information disclosed.
Mr. Yoshiki Midorikawa, director of theGreen Consumer Research Group andco-chair of The Valdez Society, has provided a third-party opinion mainly on
methods of information disclosure in the
CSR reports, from 2005 to the present.
KPMG AZSA Sustainability Co., Ltd. has
independently reviewed Toppan’s Environmental Reports published from 2001
onward, including the CSR Report thisyear. Toppan would like to thank Mr.
Midorikawa and KPMG AZSA for theconcrete and stimulating opinions they
have developed over their many years
of involvement.
The public expects and demands
that companies promote extensive CSR
initiatives to more proactively addresssocial issues. To respond to these

expectations, Toppan has written up
detailed descriptions of its initiatives
related to the following three themes in
the Special Report sections of the CSR
Report 2008: labor, environment, andinternational social contribution. The
2008 report also describes the content
of the meetings of the CSR Promotion
Study Group held to incorporate more
public views into CSR management at
Toppan. The Company will continue its
efforts to create improved CSR reports
by carefully considering the opinions andrecommendations from various stakeholders.
Mr. Midorikawa and KPMG AZSA
recommended that Toppan tackle thepressing social issues facing theCompany by enhancing the activities of
the CSR Promotion Study Group to
engage stakeholders more substantially.
As challenges for Toppan’s CSR management, the study group pointed out
the importance of examining highly
effective indicators and selecting social

issues and related actions to focus on
more intensively in the future. The Company will consider these points in fiscal
2008.
In the recommendations on theSocial Report section, Mr. Midorikawa
proposed that Toppan conduct anemployee satisfaction survey and establish medium- and long-term targets
related to work-life balance. KPMG
AZSA, meanwhile, proposed that
Toppan explore the ways in which it can
expand the scope (boundaries) of thereport. The Company will consider thesesuggestions as it deals with the twopoints mentioned above.
KPMG AZSA also pointed out thelimited scope of the Environmental
Report section and the need for standardized indicators and factors. Theseissues have grown as the Group itself
has grown. Toppan will continuously
examine and resolve these issues whilerefining its approach to environmental
management optimal for the entire Group.

Questionnaire enclosed here: Please let us know your opinions
We welcome feedback from readers. Stakeholder opinions are used to enhance the understandability and relevancy of
our corporate social responsibility (CSR) initiatives and information disclosure for both stakeholders and the people inside
Toppan. We encourage you to take a few minutes to answer the questionnaire enclosed here.

88

TOPPAN CSR REPORT 2008

Questionnaire on Toppan’s CSR Initiatives and CSR Report 2008
Thank you for reading Toppan’s CSR Report 2008. We would
appreciate it if you could answer the following questions and fax
the completed questionnaire to the fax number on the right.
All feedback received will be helpful for us as we develop future
CSR initiatives and CSR reports.

CSR Promotion Department,
Legal Affairs Division, Toppan Printing Co., Ltd.

FAX: +81-3-3835-1447

Q1. From what viewpoint did you read this report?
CustomerCustomer (in charge of CSR)
Business partner
Business partner (in charge of CSR)
Member of a community near a Toppan operational site
Governmental organization, government-related institution
Employee/Member of employee’s familyOther (Customer (consumer)Shareholder/Investor
NPO/NGO (CSR, environment)
MediaStudent)

Q2. How did you find the Toppan CSR Report 2008?
Received from Toppan Toppan’s website From Toppan employee Newspaper Magazine Other (Q3. Please enter numbers of the topics that, in your opinion, fit the ratings in tables A and B(up to five each).
1. Special Report 1: Maintaining Work-Life Balance for Employees (P.8)
2. Special Report 2: Developing Product Components for Reduced CO2 Emission (P.10)
3. Special Report 3: Educational Support to Improve Literacy (P.12) 4. Compliance Promotion Activities (P.34)
5. Information Risk Management (P.36) 6. Reinforcing Total Quality Assurance (P.40)
7. Technological Development Aimed at Value Creation/Products and Services Developed with Society in Mind (P.42)
8. CSR Promotion in the Supply Chain (P.44) 9. Cultural Contributions (P.46)
10. Activities for Contributing to Local Communities (P.48)
11. Realizing a Safe and Secure Working Environment (P.50) 12. Merit-based Personnel Policies (P.52)
13. Leveraging Diverse Human Assets (P.54) 14. Fostering and Developing Human Assets (P.56)
15. Increasing Transparency and Distributing Profits Appropriately (P.58) 16. Environmental Management Activities (P.68)
17. Environmental Communication Activities (P.70) 18. Mitigating Global Warming and Saving Energy (P.72)
19. Resource Circulation (P.73) 20. Pollution Prevention and Chemical Substance Management and Reduction (P.74)
21. Approach to Logistics (P.75) 22. Developing and Assessing Environmentally-friendly Products (P.76)
23. Environmentally-friendly Printing Services (P.78) 24. Considering the Ecosystem (P.79)

A. On the content and quality of activities
1. Excellent
2. More effort required
3. PoorB. On the content and quality of the information provided
1. Excellent
2. Room for improvement
3. PoorQ4. Are there any social issues that you think Toppan should tackle more actively in the future?
(For example: environmental actions; efforts to adapt to the declining birthrate and aging population; support to developing
and impoverished countries; fair business activities; respect for basic human rights; consideration for workers; safety andsecurity for consumers; consideration, cooperation, and support for local communities around operational sites; etc.)

Thank you very much for your cooperation.
(We do not request any personal information that can be used to identify individuals.))This report incorporates eye-friendly displays andconsiderations for as many people as possible
regardless of individual differences in color perception.
Monitors from the Color Universal Design Organization (CUDO), a nonprofit organization, have reviewed
and certified this report for its universal design.

http://www.toppan.co.jp/english/© TOPPAN 2008.11 K I Printed in Japan