CSR REPORT 2013

http://www.toppan.co.jp/english/© TOPPAN 2013.10 K I Printed in JapanCSR REPORT 2013
Report on Corporate Social
Responsibility Activities

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

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

IPeriod Covered
This report mainly covers activities in fiscal 2012 (from April 2012 to March 2013),
though information on prior and later years is also included in parts.
IScope and Boundary of this Report
In principle, this report covers the CSR activities of Toppan Printing Co., Ltd. (“theCompany”) and Group entities consolidated for accounting purposes. Most of theinformation on personnel applies to personnel within Toppan Printing Co., Ltd.,the parent company. The scope of the environmental performance data on pages
34-41 includes Toppan Printing Co., Ltd. and 20 domestic manufacturing subsidiaries covered within the Company’s environmental targets. These subsidiaries
share important roles in the Company’s environmental conservation efforts.
The environmental performance data of the Toppan Group, including the overseas subsidiaries, are reported in CSR Report 2013: Detailed Data.
ICSR Report 2013: Detailed Data
A PDF file with detailed and reference data not shown in this report is downloadable from Toppan’s CSR website: http://www.toppan.co.jp/english/csr/.
ISelecting the Information Presented in this Report
In choosing the information for this report, Toppan assesses the “materiality” ofthe information for society and the Company itself. Toppan considers the following
points in particular: Opinions gleaned from dialogues; information from NPOs,
NGOs, CSR-related organizations, and news agencies; responses to its CSR
report questionnaires; and questionnaire topics from third-party organizations.
IGuidelines and Standards Considered•The United Nations Global Compact•ISO 26000•Global Reporting Initiative (GRI) Sustainability Reporting Guidelines 2006
•Environmental Reporting Guidelines (fiscal year 2012 version) from the Ministry of
the Environment of Japan

IEye-friendliness and Readability
This report considers eye-friendliness and readability in accordance with Toppan’s
in-house guidelines. It also incorporates universal-design displays for as many different types of people as possible, regardless of individual differences in color perception. The universal design in this report has been reviewed and certified by the
Color Universal Design Organization (CUDO), a nonprofit organization, on entrustment by Toppan.
IURLs for Relevant Information•CSR information: http://www.toppan.co.jp/english/csr/
(If erroneous entries or misprints are found after CSR reports are issued, the related
information will be shown here.)•IR information: http://www.toppan.co.jp/english/ir/•Corporate governance reports: http://www.tse.or.jp/listing/corpgov/(in Japanese)•Financial statements: http://info.edinet-fsa.go.jp/ (in Japanese)
Publication Dates
Previous report: October 2012
Current report: October 2013
Next report: October 2014 (planned)

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

The United Nations Global Compact sets forth 10 principles in the four areas of human rights, labour, environment, and anti-corruption.
Toppan supports and implements the 10 principles as a socially responsible corporation.
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.
LabourPrinciple 3: Businesses should uphold the freedom of association and the effective recognition of
the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

CONTENTS

Executive Message

2

Group Business Outline

4

Special Report 1: Designing the “Smart Community,”
an Environmentally Friendly City for
Comfortable Lifestyles

6

Special Report 2: A Mechanically Recycled PET
Packaging Material fora Recycling-oriented Society

8

Results in Fiscal 2012 and Future Measures

10

Toppan’s CSR Activities

12

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

Human Rights

18

Labor Practices

20

Fair Operating Practices

24

Consumer Issues

28

Community Involvement and Development

32

The Environment
Toppan’s Environmental Activities

34

Environmental Management Activities

35

Toppan’s Environmental Burden andEnvironmental Impact

36

Eco-protection Activities

37

Eco-creativity Activities /Environmental Communication Activities

41

Independent Assurance

42

Independent Assurance Report

43

Group Business Structure

44

TOPPAN CSR REPORT 20131

Executive Message

Contributing to Fulfilling Lifestyles

To Offer New ValueThe Toppan Group was established in 1900 by a team offive founders. Most of them were former engineers from
the Ministry of Finance Printing Bureau, now the National
Printing Bureau. According to the Toppan charter, theJapanese public at the time was deprived of the many
benefits of letterpress printing, an inexpensive printing technique that was capable of producing exquisite plates but
had thus far been used only by the Printing Bureau. The
Toppan founders wanted to start a business using the letterpress skills they acquired in the bureau.
Europeans flocked to the international exhibition in Paristhe very same year. Japan was steadily building up its modern industries following the Meiji Restoration. The printing
industry contributed to society significantly in three mainareas in this era: the printing of banknotes, bonds, andsecurities, important instruments for the establishmentof modern capitalism; the publication of newspapers, amedium for public discussion and the advancement of culture; and the publication of translations, novels, and mag-azines to enlighten the public and give momentum to theestablishment of the modern state.
Since its foundation, the Toppan Group has offered society new value by playing important roles in the advancement of information culture “as a mainstay of informationand culture” through business with printing technology at
its core.
Now, more than 110 years since our foundation, we findourselves in an age where digital information streams every
which way, from server to server, from smartphone tosmartphone, over a global network. My role, as President& Representative Director of Toppan Printing, is to find thevalue we can offer society as we build fresh foundations
for the Toppan Group in this era.
The management slogan I coined at the beginning of2013 stresses innovation. To make innovation a reality, thepeople of Toppan must understand the dizzying trends
reshaping our market and management environments.
Looking to these trends as opportunities, I have establishedthree management challenges to help Toppan build a newengine of growth for the Group.
The first challenge is to advance our Group-wide structural reform for our organizational, business, and cost structures to ensure that we stay profitable in today’s dramaticallychanging markets and enhance the value of our corporation
and businesses. The second is to create new businesses
and new markets by developing business models that meetthe demands of today’s rapidly changing age using theprinting technologies we have cultivated since our founding.
The third is to accelerate global business expansion for swift
operations by taking advantage of business alliances andM&As and by restructuring our sales and production structures mainly in Asia and other growing markets.

To Be a Robust Group of Companies
Trusted and Respected by Society
TOPPAN VISION 21 is positioned as the foundation for allof our corporate activities. This vision consists of a Corporate Structure (the Corporate Philosophy, the Corporate
Creed, and a set of Conduct Guidelines defining the values

2

TOPPAN CSR REPORT 2013

and standards we should respect) and five Business Fields
based on the Corporate Structure.
To make TOPPAN VISION 21 a reality, I am convincedthat it will be vital for us to accomplish the three management challenges and fulfill our social responsibility as acorporation. A company must develop steadily in step withall of society. We will be creating new growth engines tohelp solve social issues and drive our growth in step withthe sustainable development of society. As we do, we
would like to establish ourselves as a robust company
group that society broadly trusts and respects.

To Enhance Our CSR Management
The United Nations Global Compact is an invaluable guideline for us as we undertake our journey towards this end.
Toppan has been participating in the United Nations Global
Compact and supporting the 10 principles of the Global
Compact on human rights, labour, environment, and anticorruption since September 2006. I will continue espousing
the United Nations Global Compact and shaping our corporate social responsibility (CSR) activities accordingly.
The International Organization for Standardization (ISO)
26000 Guidance on Social Responsibility (international
standard for organizations) was formulated through the
involvement of multiple stakeholders from more than 100
countries, many of them developing. The standard condenses various social issues to be solved. From my perspective, it also guides our own measures to implement
the United Nations Global Compact. We incorporated ISO
26000 in our CSR management practices in fiscal 2011and have been pushing forward with CSR activities by piecing together a clear picture of the social issues we should
help solve and the social responsibilities we should fulfill.

has been providing society with functional products forsolar cells and lithium-ion batteries. Backed by the operational know-how we have cultivated over the years, we will
also offer new value to the “smart community,” a new concept you will surely be hearing more about in the future.
In the realm of resource recycling, Toppan has been
making efforts to use recycled polyethylene terephthalate(PET) film as a packaging material by applying a mechanical recycling method. Recycled PET used to be difficult touse as a plastic film due to high costs and quality issues.
Toppan’s mechanically recycled PET film has a high recycling rate and reduces CO2 emissions by about 24% in the
pre-manufacturing stage, compared with conventional
petroleum-based films. Toppan has participated in a PET
bottle recycling project in collaboration with partners along
the value chain to help create a recycling-oriented society
and facilitate sustainable resource use.
We will continue to offer society new value by proposing
total solutions based on our broad-ranging know-how,resources, and technologies.

With Our Stakeholders
At Toppan we would like to continue disclosing information
through this CSR report, one of our most valuable tools forcommunicating with our stakeholders. I am eager to hear
your candid opinions about this report.
We will keep up our work towards the creation of fulfilling lifestyles in a sustainable world. We rely on your ongoing support and guidance.
July 2013

Shingo Kaneko

Towards a Sustainable Society

President & Representative Director
Toppan Printing Co., Ltd.

The challenges confronting the environment are among themost important social issues we face. Energy saving has
been all the more pressing in Japan since the Great East
Japan Earthquake of 2011. In the realm of energy, Toppan

TOPPAN CSR REPORT 20133

Group Business Outline

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

Group Profile
Number of employees(nonconsolidated)
8,587 (as of the end of March 2013)
Number of employees(consolidated)
48,878 (as of the end of March 2013)

The Toppan Group comprises Toppan Printing Co., Ltd. and 197 relatedcompanies (167 subsidiaries and 30 affiliates) engaged in manifold businesses in three main fields: Information & Networks, Living Environment,
and Electronics.
The positioning of Toppan and related companies in these fields is outlined on page 44.

Capital (nonconsolidated)
104.9 billion yen

President & Representative
Director
Shingo Kaneko

Business Fields
Information & Networks
Providing solutions to increase the valueof information and effectively deliver information for customers who require smoothcommunication

Securities and Cards

Commercial Printing

Publications Printing

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

Packaging

Functional Product and Energy
RelatedElectronics

Interior Décor Materials

Personal Service

Next-generation Products
Ball SAW
sensors

Display Related

Semiconductor Related

Working with leading-edge technologies to provide electronic components
with strong potential to be adopted as de facto standards

Shufoo!—an online mall for digital
flyers (in Japanese)
Providing consumers with Toppan’s
original brand of innovative information services and devices to enrich
the links between people andgoods

Fuel cellcomponents
Providing high-performance industrial
materials with links to the next generation by developing fields of business with growth potential* To create new businesses by responding promptly and flexibly to today’s changing markets, Toppan established a new Material Solutions Division by integrating the Electronics Division and Functional Product Division on April 1, 2013.

4

TOPPAN CSR REPORT 2013

Operating Income or Loss

Net Sales
Q Consolidated Q Nonconsolidated(billion yen)(billion yen)

2,000

60

1,617.3
1,506.7 1,556.4 1,510.4 1,502.3
1,500

45

967.6

885.9

895.5

849.2

819.9

45.0
32.0

31.5

15.3

15

4.4
–7.1

–15

2008 2009 2010 2011 2012(fiscal year)

2008

2009

16
8

6.6

0

0

Q Consolidated Q Nonconsolidated

24

38.2

7.8

500

(billion yen)32

30 29.1

1,000

Net Income or Loss

Q Consolidated Q Nonconsolidated

2010

2011

5.8
0.5

0
–8

2012
(fiscal year)

18.5
15.1

11.7 12.4 12.1

–7.7
2008 2009

3.0
–3.2

2010

2011

2012
(fiscal year)

Number of Employees by Business Field (consolidated)

Number of Employees
Q Consolidated Q Nonconsolidated
50,00047,522 47,650 48,197 47,872 48,878

Electronics
7,497

Company-wide
positions991

40,00030,00020,00010,000

11,548

8,769

8,633

8,508

8,587

2009

2010

2011

2012
(fiscal year)

0
2008

Living Environment
10,861

Information & Networks
29,529Net Sales by Business Field

Capital Expenditure

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

Electronics
235.1 (16%)

100

2,000

3.0

92.0

80

76.8
68.0

60

65.0

66.8

1,681.7

0.7

40

1,586.8

1,633.0
2.0

1.0

0.7
0.2

500

20
Information & Networks
883.1 (59%)

1,694.3

1.2
1,000

Living Environment
384.0 (25%)

1,665.6

1,000

0

0

2008

2009

2010

2011

2012
(fiscal year)

0
-0.4
2008

–1.0
2009

2010

2011

2012

(fiscal year)

Net Sales by Region

R&D Expenses

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

Other regions
49.7 (3%)

Asia, excludingJapan
179.3 (12%)

35
28

(%)

1,000
28.7

800
24.4

21

23.4

21.4

20.6

8.0
867.7

874.0

864.0

866.2

888.4
6.0

600

4.0
2.5

14

400

7

200

0
Japan

1,273.1 (85%)

1.6

2.0

1.6

–1.0

0.4

0
2008

2009

2010

2011

2012
(fiscal year)

2008

2009

2010

2011

0
–2.0
2012
(fiscal year)

Notes:
1. Net sales do not include consumption taxes.
2. The number of employees is the number of employees working at the Group. The number of non-regular employees for fiscal 2012 stood at 7,890 on aconsolidated basis (the average number of employees throughout the fiscal year, including part-time workers but excluding temporary staff).

TOPPAN CSR REPORT 20135

Special Report1

Designing the “Smart Community,” an Environmentally
Friendly City for Comfortable Lifestyles

A smart community is a town where people can efficiently use energy andenjoy higher standards of comfort in daily life. Toppan has been developing information-intensive
foundations for the creation of smart communities in fields where it has specialized know-how.

The Smart Community:
An Environmentally Friendly City Designed
for Comfortable Living
A smart community is a social system designed to accommodate the total lifestyles of the people living in a community.
The people in the smart community live comfortably while using
energy in more efficient ways to optimize the supply-demandbalance. The scope of the smart community vision is no longer
confined to energy-related areas. The vision encompasses thecreation of towns designed for comfortable lifestyles with a focus
on areas such as health, transportation, community exchange,
and the harmonious coexistence of humans with nature.

Toppan’s Creative Contributions to the
Smart Community—People embrace new lifestyles if the lifestyles are fun—
When people are asked to sacrifice lifestyle conveniences in
the name of energy and power efficiency, their satisfaction
tends to decline. Yet people will readily change their behavior
if new living becomes spontaneous, comfortable, and fun.
Toppan focuses closely on the information to be circulated
in a smart community from the perspectives of its people.
Information packaged and delivered in meaningful and usefulforms for people can facilitate the adoption of new behaviorsspontaneously. Toppan will help materialize a smart community
using its printing technologies, especially its technologies forprocessing, managing, and delivering information in threefields: 1) communication, 2) business process outsourcing(BPO), and 3) security.
Communication
Toppan will be using its communication know-how to clearly
express and deliver information tailored to the diversified lifestyles of individuals. Toppan knows, for example, that people
are unlikely to adopt energy- and power-saving habits if they

see nothing more than statistics on household power consumption on device displays. Graphical displays of motion
sensor information on energy use and how energy is wasted
room by room (figure 1) are convincing enough to change
people’s behavior. Toppan researchers also developed a recommendation-delivery system to encourage people to go out
shopping or pursue other out-of-home activities during peak
power-consumption hours in summer. If presented with welltimed messages about special limited-time sales at shops,
people can be persuaded to turn off their household electricity and leave their homes. The system saves energy at homes
and vitalizes regional economy by augmenting sales at retailers. Toppan’s new information delivery system demonstrates
how ­Toppan can spur energy- andpower-saving actions through accessible, easy-to-understand communication. Toppan expects to see thissystem integrated into a coming
generation refrigerators and othersmart home appliances designed toenable people to save energy without sacrificing comfort (figure 2).
Figure 1: W astefulness
visualized(in Japanese)

Figure 2: S mart home electrical appliances
Understanding power
consumption in detailand using electricity
smartly

Reducing household power consumption by attracting people
into shops during peak powerconsumption hours

Shopping
centers andstreets

Residences,offices, andplantsImage of the Smart Community

6

TOPPAN CSR REPORT 2013

Reducing household power consumption by bringing people
together outside of their homes

Communities

Business Process Outsourcing
Toppan will offer full-fledged support for the management andadministration of smart communities using its know-how inadvertising campaigns and other services that Toppan manages for client companies. Toppan will provide support for the
introduction of solar panels, storage batteries, home energy
management systems (HEMS), and similar energy-related
devices on client premises, from procurement to installation.
The Company will also support client companies with various
local information services related to shopping, healthcare, andthe like.
Security
The smart community requires a high-level security environment to protect the personal information of community members. Toppan will be using its know-how in the development
and handling of smart cards for the financial industry to ensure
the protection of personal information and data on householdenergy consumption in the smart community.

Practical Test in Kitakyushu City
Toppan took part in the Kitakyushu Smart Community Creation
Project in Fukuoka Prefecture in fiscal 2012. The experimentis being conducted in Higashida, Yahatahigashi Ward, a region
where locally consumed electric power is generated using asolar, wind, hydrogen, and other renewable energies in combination with a natural-gas cogeneration system. Powerdemand and supply in Higashida is tracked and controlled ata regional power-saving station installed at the relay point ofan IT network linking power-generating facilities with residences, offices, and plants.

Figure 3: Shufoo! screenshot (online
mall for digital flyers; inJapanese)

Figure 4: E co-coupon(in Japanese)

Toppan has brought about a change in public behavior
using a communication tool designed based on consumer
behavior analysis techniques developed by Toppan throughthe operation of the digital flyer portal site, Shufoo! (figure 3).
The Company issued eco-coupons redeemable only during
peak power-consumption hours in summer (figure 4) as a trial
service to draw people out of their homes to commercial areas.
People, the environment, and the regional economy all benefited from this experiment. The project experiments verified
that direct communication matched to personal attributes,
preferences, and lifestyles can motivate people to turn off theirhousehold electricity and leave their homes.
Toppan will continue participating in Kitakyushu City’s
experiment and various other test projects to ­provide safe,
secure, and pleasant lifestyles for the community and its­residents. Communication, BPO, and security are all indispensable for the creation of a smart community. Toppan will play
an active role in realizing smart communities in the years to
come.

A Flag-bearer for the Smart
Community Creation Project
Mr. Taihei Shibata

Director, Office for Environmental
Future City Promotion, Environment Bureau,
City of Kitakyushu*Photo of the regional power-saving stationin Kitakyushu City, Fukuoka Prefecture

Tracking and controlling power demandand supply via an IT network linking power-generating facilities with residences,offices, and plants

Control
center

The Kitakyushu Smart Community Creation
Project aims to convert residents and businesses from one-way energy consumers to productive consumers
through proactive energy-saving actions and the installation of solar
and other renewable power generation devices. The project facilitates
the participation of both residents and businesses. Smart energy initiatives such as the consolidation and visualization of local energyrelated information and the “dynamic pricing” of electricity power rates
based on demand-and-supply profiles activate proactive thinking andthe participation of residents, companies, and organizations. We arebuilding a mechanism by which actions beneficial to residents andbusinesses bring benefits to the local energy system at the same time.
This mechanism will be built into the whole social system and structure
in our target communities. The more the mechanism revitalizes theregional economy, the more independent and long-lasting it will be.
I hope Toppan becomes a flag-bearer for the smart community bybuilding workable models.

Generating electricity using
renewable power, such as
solar and wind power

NaturalenergyTransportation
facilities

Increasing the use of eco-vehicles, such as fuel-cell vehicles
powered by hydrogen energy

TOPPAN CSR REPORT 20137

Special Report2

A Mechanically Recycled PET Packaging
Material for a Recycling-oriented Society

Toppan has developed Japan’s first environmentally friendly laminated packaging material made from recycled polyethylene
terephthalate (PET) film. This new PET film matches the performance of petroleum-based films in terms of both safety andcost. Toppan will help build up a recycling-oriented society by facilitating the use of this new packaging material.

Sustainable Resource Utilization Requiredfor Packaging Materials

ins that have limited usage and cannot be easily made into
films.

Society needs to use resources sustainably in order to mitigate
global warming and to cure its excessive reliance on exhaustible resources such as petroleum.
Packaging and container designers have long been
exploring ways to reduce or lighten packaging materials anddevelop containers that are refillable or easier to recycle.
More packaging and containers nowadays are produced fromrecycled materials or renewable biomass resources.

A Laminated Packaging Material Madefrom Mechanically Recycled PET Film

PET Bottle Recycling and Related
Challenges
PET bottle collection and recycling have long been promoted,
but chemical recycling (chemical decomposition of collected
PET bottles into a plastic resin) is expensive and material recycling (the crushing and cleaning of PET bottles) produces arecycled resin interfused with impurities. Chemical recycling
produces costly resins, while material recycling produces res-

Mechanical recycling is a method to obtain a high-quality
reproduced resin by eliminating impurities from a materiallyrecycled resin through processes such as heat treatment anddecompression. Mechanical recycling is more cost-competitive
than chemical recycling and produces a superior recycled resinby eliminating impurities. This method is already being applied
to produce recycled PET bottles and labels. The mechanicalrecycling method used to be a suboptimal choice for manufacturing thin PET films for lamination with films made fromother materials. It was once impossible, for example, to use
recycled PET films for laminated packaging materials suchas pouches.
Toppan worked together with Toyobo Co., Ltd. to overcome
this constraint. Through joint development, the two companies

Using laminated packaging materials for toiletry, food, medical, andother products

Manufacturing mechanically recycled PET film
from recycled resins

Customers(client
companies)

ToppanManufacturing laminated packaging materials using mechanically recycled PET films

ToyoboBeverage manufacturers
PET bottle manufacturers

Sugarcane
PET resinmanufacturers
Petroleum
Manufacturing recycledresins from collected
PET bottles

Kyoei
Industry(recycling
company)

Circulation of Mechanically Recycled PET Film

8

TOPPAN CSR REPORT 2013

have produced a mechanically recycled PET film for a laminated packaging material.
The recycled PET film is made from a high ratio of recycledresin, up to 80%. CO2 emissions in the film production stages
up to final manufacturing are reduced by about 24% comparedwith conventional petroleum-based PET films. Early in May
2012, Toppan started to sell this laminated packaging material mainly for refill standing pouches for toiletry products andpackaging materials for food and medical products.
Toppan’s processing technologies ensure that the impact
strength, tensile strength, laminating strength, and other physical properties of this laminated packaging material match theproperties of conventional petroleum-based PET films.

Contributing to the Establishment of a PET
Resource Circulation System
Used PET bottles have been collected for many years at storefronts and via the channels prescribed under the Containers
and Packaging Recycling Law of Japan. More recently, a coalition of private companies has been forming a new resource
circulation route for used PET bottles covering the stages fromcollection to recycling.
Under this recent scheme, reward points and other incentives can motivate consumers to bring in well-rinsed PET­bottles to dedicated PET bottle collection boxes installed at
supermarkets and convenience stores, through collaboration
between recycling companies and retailers. In a cycle called“bottle-to-bottle recycling,” recycling companies convert thecollected PET bottles back into recycled resins usable for the

Toiletry, food,medical, andother products ottle-to-packaging recycling promoted by
B
ToppanBottle-to-bottle recycling

Distributors

Consumers

Heat recovery

Collection
boxes

Recovering andusing heat energy
generated fromincineration

Laminated packaging materials made from the mechanically recycled pet film

production of PET bottles by container and beverage manufacturers.
The recycling ratio of bottle-to-bottle recycling still falls shortof 100%. For recycled PET resins inconvertible to new bottles, Toppan has been taking part in a project to establish abottle-to-packaging recycling process in which these resins
are used for the laminated packaging material. Through thisapproach and several other systems like it, Toppan is helping
to build up a recycling-oriented society by efficiently reusing
plentiful resources across Japan.

Effective Resource Extraction
from the “Urban Oilfield” with
Partners along the Value Chain
Mr. Eiichi Furusawa
Representative Director
Kyoei Industry Co., Ltd.

Kyoei Industry thinks of discarded PET bottles
and other waste plastics in Japan as a valuable
resource, an “urban oilfield” of sorts. The Urban Oilfield Development
Project is our effort to make maximum use of this resource with various recycling technologies. For resource extraction we have developed
Japan’s first mechanical recycling technology that enables bottle-tobottle recycling from used PET bottles. The bottle-to-bottle recycling
method was first introduced by Suntory Beverage & Food Limited, amajor producer of bottled beverages. Other major beverage manufacturers in Japan have also adopted bottle-to-bottle recycling in recent years.
We are certain that Toppan’s bottle-to-packaging recycling system,
a complement to bottle-to-bottle recycling, will enhance the effective
use of plastic resources in the urban oilfield. We are now working with
Seven & i Holdings Co., Ltd. and other entities to establish collection
routes from PET bottle collection boxes (automatic collection units) installed at retailer storefronts. This is a social infrastructure that can help
supply sufficient materials to bottle-to-packaging recycling systems.

Collecting used
PET bottles

TOPPAN CSR REPORT 20139

Results in Fiscal 2012 and Future Measures
Seven Core Subjects

Action Points and Targets for Fiscal 2012
Developing CSR management based on ISO 26000

Organizational
governance

Human rights

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

Providing an open environment and information for recruitment• Facilitate the hiring of human assets with latent faculties and aspirations suitable
for a global business environment

Proactively appointing female employees to higher positions• Leverage female talent through positive action

Working for equal opportunity in individual career development
and helping employees pursue their own career paths• Continue using the Challenging Job System (for the self-determination of career
paths) in order to appoint at least 20% of employee applicants to the departments or divisions where they would like to work

Supporting second careers for retired employees•Use the Senior Reemployment System as a tool for leveraging the knowledge,
experience, and expertise of veteran employees

Promoting the employment of persons with disabilities•Diligently facilitate the hiring of persons with disabilities in cooperation with local
public job-placement offices in Japan

Operating personnel treatment systems properly•Rearrange working conditions and personnel systems to enhance the Company’s
capacity to respond to environmental changes in business; introduce andexamine new systems and schemes

Supporting work-life balance 1)➞ Shortening total working hours•Make use of various working systems, including the multi-shift working system•Facilitate close supervision of working hours by adopting a new employment
management system

Supporting work-life balance 2)➞C reating a working environment where employees can strike abalance between working and raising children

Creating a better working environment through partnerships
between labor and management

Labour practices

The environment

Fair operating practices

Consumer issues

Main Measures in Fiscal 2012• Promote an understanding of ISO 26000 throughout Toppan and implement
CSR management at Group companies in Japan•Implement BCM at all divisions and main Group companies in Japan (byformulating an action procedure manual and organizing training)•Prepare to acquire certification under the “ISO 22301:2012, Societal security—
Business continuity management systems (BCMS)” standard and establish
Toppan’s own training, evaluation, and audit methods• Continue convening labor-management committees for the creation of a working
environment amenable to enhanced job satisfaction• Continue informing employees of various childcare-leave-related systems• Increase opportunities for opinion exchanges between labor and management,
including various council meetings and tripartite conferences• Modify clauses on liability in the Company’s collective labor agreement andconclude individual collective labor agreements at manufacturing subsidiaries, etc.
• Continue holding and gingering up recreational events jointly organized by laborand management

Ensuring occupational safety and health•Continue operating touring Anzen Dojo facilities at operational sites across Japanand begin operating the dojo at manufacturing subsidiaries•Open the Safety and Monotsukuri Library

Reinforcing countermeasures against fires and disasters•Install Company-wide task force functions in Tokyo and the Kansai region in Japan•F ormulate a structure to implement initial actions at each operational site; prepare amanagement system at each division (comprehensive disaster-preparedness drills,
installation of emergency communication hardware, full-scale operation of a safety
confirmation system, stockpiling of supplies for use during earthquake disasters)

Promoting healthcare and health enhancement•Reduce the number of employees with health risks associated with metabolic
syndrome through preventive measures against lifestyle-related diseases

Arranging measures for mental healthcare• Give employees opportunities to take part in Art Salon or consult with counselors
over a wider geographic area in Japan

Fostering self-reliant employees based on “conduct of highvalue,” a key concept in human asset development at Toppan•Enhance employee skills in communication and networking and introduce
practical programs to address business challenges

See page 34
Heightening awareness of laws, regulations, and the Conduct
Guidelines•Expand the roles of Conduct Guidelines Promotion Leaders and reinforce
measures to prevent improper conduct•Implement the Conduct Guidelines in overseas Group companies

Complying with transaction-related laws•C
 ontinue organizing training on compliance with the Subcontract Law of Japan for
employees in production control departments of Toppan and Group companies
and continue interviews to check how subcontract transactions are being handled

Promoting CSR initiatives in the supply chain•Review the CSR Procurement Guidelines with an eye to ISO 26000•Establish operational rules accommodating global procurement

Ensuring consumer safety through the strict prevention ofquality-related accidents•Continue product safety management activities in the food packaging and filling/
packing businesses•Execute priority measures, including steps to prevent the admixture of different
products and foreign substances in any type of packaging manufactured•Continue managing chemical substances in products based on Green Procurement Standards at each division•Establish and operate a promotion structure to disseminate the carbon footprintof products (CFP) scheme throughout the divisions in Japan•Revise the CFP verification method from a product-by-product certification to asystem certification• Instruct 48 areas designated for the handling of personal information on
conformance with the new criteria for the installation of the tightly secured areas
Establishing an information security management structure
and re-qualify them based on the new criteria
towards the complete elimination of information-related accidents• Facilitate cooperation among Group companies to take countermeasures against
IT risks (antivirus measures, related education)

Applying environmental impact assessment

Community involvementand development

10

Arranging social contribution programs to help solve social issues

TOPPAN CSR REPORT 2013

•Continue carrying out medium-term recovery assistance measures for the areas
stricken by the Great East Japan Earthquake of 2011 (continuous activities of theBook Wagon mobile libraries)•Sponsor the sixth series of Toppan Charity Concerts

Results in Fiscal 2012

Self Evaluation• Deepened the understanding of ISO 26000 via e-learning-based, Companywide basic education for Toppan and Group company employees•Formulated a basic plan and action procedure manual, implemented and operated BCM, organized simulation training, conducted other related activities at themain sites of the divisions and main Group companies•Acquired the Business Continuity Advancement Organization (BCAO) BusinessContinuity Specialist Grade I and II certifications•Organized education on conduct practices guided by the respect-for-people concept through rank-based training, Company-wide basic education on CSR,
training for Conduct Guidelines Promotion Leaders, and so on•H eld company orientation sessions to brief recruits on Toppan’s policy of hiring humanassets with latent faculties and aspirations suitable for a global business environment

A•Attained a 5.1% ratio of females among managerial and supervisory staff (as ofApril 1, 2013)

A• Appointed 227 employee applicants (17.7% of all applicants) to the departments
or divisions where they wished to work (as of April 2013)

B• Introduced a new Senior Reemployment System on April 1, 2013 in line with theamendment to the Law concerning Stabilization of Employment of Older Persons of Japan•Attained a 2.13% ratio of employees with disabilities in the total workforce (as ofJune 1, 2013)•Appointed employees with disabilities to sections that had not previously hired
employees with disabilities•Introduced a new Second Career Support System, an early retirement support
system, and handled processes from informing eligible people about the system
to retirement procedures•Launched the operation of a new employment management system at theCompany in August 2012 and introduced the system to Group manufacturingsubsidiaries in January 2013
•Reduced the average hours of overtime worked per month by 0.9 hours
compared with the fiscal 2011 level•Removed the limit to the number of half-days employee can take as leave(previously limited to 20 half-days per year)•H eld the Hagukumi (bringing up) Art Salon for employees on childcare leave and their children• Held negotiations and conferences between labor union and management on 45
separate occasions to exchange opinions and provide information• Held a large-scale sports festival jointly organized by labor and management(attended by about 3,500 participants, including employees and their families)• Achieved 98% participation (more than 10,000 employees) in the Japan-wide
Anzen Dojo facility tour (since the tour launch in October of 2011); failed, however,to reduce occupational accidents•O pened the Safety and Monotsukuri Library with a collection of more than 1,200 documents• Installed a Company-wide task force at the head office in Tokyo; held a startup
drill using satellite-based mobile phones, communication radios, and otheremergency communication hardware• Held a trial run for the safety confirmation system at all divisions in Japan• Maintained emergency supplies in storage and carried out walk-home drills• Attained a regular medical check-up ratio of 54.8% for the dependents of
employees (surpassing the targeted ratio of 50%)
• Offered scheduled healthcare guidance for employees with health risks
associated with metabolic syndrome•O perated Art Salon at 16 regional sites across Japan (5 more sites than in fiscal 2011)• Engaged three counselors, including one with official qualification in industrial
counseling, to give employees the opportunity to consult with counselors over a
wider geographic area in Japan• Introduced and enriched new and existing programs to strengthen the foundations for employee capabilities and programs to nurture next-generation leaders• Strengthened the development of human assets with the skills and aspirations
necessary to work in a global business environment by newly dispatching
employees to business schools overseas and arranging other programs

A

A

A

A

Action Points, Targets, and Main Measures for Fiscal 2013
• Implement e-learning-based, Company-wide basic education on CSR management at more Group companies• Implement BCM at the regional divisions, Group companies, etc. that have yet toformulate BCPs (by formulating a basic plan and action procedure manual,organizing simulated training, and conducting related activities)• Organize BCP- and BCM-related education and develop human assets toengage in BCPs and BCM• Continue organizing various educational training sessions to nurture businesspeople guided by the concept of respect for people• Promote the diligent hiring of human assets with latent faculties and aspirations
suitable for a global business environment• Appoint more female employees to higher positions and leverage female talent;create working environments where employees can strike a balance between
working and raising children• Use the Challenging Job System as a tool to deploy human assets based on
individual capabilities and aspirations and to appoint at least 20% of employee
applicants to the departments or divisions where they would like to work
• Arrange rotations and training to provide employees opportunities to develop
their capabilities• Use the new Senior Reemployment System as a tool for leveraging theknowledge, experience, and expertise of veteran employeesA• Develop new job positions for employees with disabilities; strengthen support
systems to hire more persons with disabilities

A•R earrange working conditions and personnel systems to enhance the Company’s
capacity to respond to environmental changes in business; introduce new systems
and schemes and examine support plans for individual career development

A• Create new ways of working based on job specifications, work styles, and the likeby adopting a new personnel treatment system in sales and planning departments• Hold opinion-exchange discussions on ways to encourage employees to takeleave, including the creation of more accommodating workplace climatesA• Consider the introduction of a teleworking system for employees who want tocome to the office but are prevented from doing so by childcare obligations

A

B• Increase opportunities for opinion exchanges between labor and management,
including division tripartite conferences, business councils at individual divisions,and labor-management committees for the creation of a working environment
amenable to enhanced job satisfaction• Continue holding and gingering up recreational events jointly organized by laborand management• Introduce risk assessment on a full scale in a bid to make machines and equipment
intrinsically safer• Switch to less hazardous cleansing agents at the workplaces that use organic
solvents for offset printing and like processes

A•Install Company-wide task force functions in the Kansai region in Japan•Share information about stockpiled emergency supplies and management ledgers
for the supplies at individual operational sites•Continue organizing initial action drills; perform checks

A• Offer systematic healthcare guidance for employees with health risks associatedwith metabolic syndrome (healthcare guidance on the preemption of lifestyle-relateddiseases, lifestyle improvement programs)

A•Continue conducting mental health training and providing employees with
opportunities to consult with counselorsA• Upgrade practical programs to address business challenges and programs tonurture leaders; strengthen the fosterage of human assets with the skills andaspirations necessary to work in a global business environment•Held 73 training sessions for 1,235 Leaders from Toppan and Group companies• Delivered 37 lectures for 1,722 managerial staff on the prevention of improper conduct• Carried out an e-learning-based program to train 22,389 employees on theprevention of improper conductA•Reinforce measures to prevent improper conduct by enhancing the activities ofConduct Guidelines Promotion Leaders•Implement the Conduct Guidelines in overseas Group companies• Held 23 training sessions for 584 employees in sales offices and interviewed
employees at 12 operational sites across JapanA•Ensure proper subcontract transactions and build proper relationships withbusiness partners

B•Establish new CSR Procurement Guidelines with CSR procurement criteria basedon internationally accepted auditing standards and notify business partners about
the new guidelinesA•Support activities to visualize and quantify risks in business process outsourcing(BPO) operations•Upgrade the quality assurance system for businesses related to packaging for
food, medical, and pharmaceutical products•Continue disseminating information on Ver. 3.1 of the Toppan Group’s Standards
for the Management of Chemical Components of Raw MaterialsA• Operate the internal CFP system (monthly progress meetings, management
reviews, regular audits)• Nurture human assets to engage in CFP operations such as CFP quantification andverification

A•Instruct 63 tightly secured areas designated for the handling of personal informationon conformance with the revised criteria•Organize education for all types of employee on the proper handling of personal
information and carry out internal audits for all departments in JapanA• Sponsor the seventh series of Toppan Charity Concerts• Consider social contribution programs in which Toppan employees take part• Reviewed the current CSR Procurement Guidelines, organized the requirements
for compliance, and drew up an outline of operational procedures for newly
established guidelines• Conducted audits for the food filling/packing business and primary food packaging
production at a cumulative total of 26 sites inside and outside the Company• Acquired the Food Safety System Certification (FSSC) 22000 for food packaging
production plants at all plants in the Living Environment Division and six plants inGroup manufacturing subsidiaries• Revised Green Procurement Standards at each division to meet the requirements
under Ver. 3.1 of the Toppan Group’s Standards for the Management of ChemicalComponents of Raw Materials• Built up an internal CFP system at four Tokyo-based plants in the Information andCommunication Division• Acquired CFP system certification• Completed qualification examinations for 63 areas, including several newly
qualified areas• Unified countermeasures against IT risks between Toppan and Group companies;
organized 318 training sessions (for employees in Japan, including Group
company employees)•Carried out the second-stage of activities from June to December 2012: 14,869
people visited Book Wagon, 8,620 people borrowed books, and 25,874 volumes
were borrowed (totals of the first and second stages combined)•Sponsored the concerts for two days as scheduled and donated 2.15 million yen
to the Asia-Pacific Cultural Centre for UNESCO

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

TOPPAN CSR REPORT 201311

Toppan’s CSR Activities

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

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

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

Corporate Creed

Conduct Guidelines

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

Chapter 1: Basic Principles
  1. Respecting basic human rights
  2. Having high ethical standards
and acting as a responsible
member of society  3. Complying with laws andcompany rules and conducting
fair business operations
  4. Avoiding all links with antisocialgroups  5. Striving to improve quality
and providing creations
that contribute to customer
satisfaction
  6. Recognizing the importance of
information related to businessand managing it appropriately
  7. Proactively undertaking
conservation of the global
environment
  8. Embracing change and taking
on new challenges
  9. Building trust from society
through social contribution
activities and appropriate
disclosure of information
10. Bringing together individual
strengths to fully exploit the
integrated strength of the group

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

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

Established in June 2000

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

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

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

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

12

TOPPAN CSR REPORT 2013

See page 27 for Chapter 2: Specific Conduct
Guidelines.

CSR Activities
Corporate social responsibility (CSR) activities are prominent
among Toppan’s many endeavors to realize the ideal Corporate
Structure the Group envisions. As measures seeking to incorporate social demands into business operations, CSR activities
are vital for Toppan’s growth as a corporation in harmony withsociety and the global environment.
In designing concrete activities, Toppan closely refers to the
ISO 26000 Guidance on Social Responsibility, an international
standard formulated through the consensus of diverse stakeholders around the world. Various types of organizations andentities have engaged in the standard-making process. This
standard therefore typifies demands from society at present.
ISO 26000 provides guidance on the principles of social
responsibility—what it means and how it applies to organizations. Any type of organization of any size can use it. Unlike
other standards on quality or environmental management, thisguidance standard focuses on stakeholder opinions: no certification is granted by third-party organizations.
Toppan will promote CSR activities with this guidance inmind and disclose the results via this CSR report in line withthe seven core subjects of social responsibility defined underISO 26000.

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

Toppan’s Stakeholders and Seven Core Subjects

Customers(client companies,
consumers)

Labourpractices

Employees

TOPPAN
Corporate
Structure

Human rights

The environment

Community
involvement anddevelopment

Organizational governanceFair operating
practices

Consumer issues
Shareholders andinvestors

Business partners

Stakeholders

Communities

Seven core subjects
Dialogues

TOPPAN CSR REPORT 201313

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

Organizational
governance

14

IssuesOrganizational governance

For Details

Subjects

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

P. 15−

Human rights

Issue 1: Due diligence
Issue 2: Human rights risk situations
Issue 3: Avoidance of complicity
Issue 4: Resolving grievances
Issue 5: Discrimination and vulnerable groups
Issue 6: Civil and political rights
Issue 7: Economic, social and cultural rights
Issue 8: Fundamental principles and rights at work

I Respecting Basic Human Rights
I Collective Labor Agreement
I Working for Equal Opportunity and­Eliminating Discrimination

P. 18−

Labour practices

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

I Basic Concept of Human Assets
I Labor-Management Partnership
I Supporting Work-Life Balance
I Occupational Safety and Health
I Measures for Mental Healthcare
I Developing and Fostering Human Assets

P. 20−The environment

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

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

P. 34−

Fair operating­practices

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

I Disseminating the Conduct Guidelines
I Toppan Group Helpline
I Implementing the Conduct Guidelines inOverseas Group Companies
I Compliance Education
I Promoting CSR Procurement

P. 24−

Consumer issues

Issue 1: F air marketing, factual and unbiased information and fair contractual practices
Issue 2: Protecting consumers’ health and safety
Issue 3: Sustainable consumption
Issue 4: Consumer service, support, and complaintand dispute resolution
Issue 5: Consumer data protection and privacy
Issue 6: Access to essential services
Issue 7: Education and awarenessI Assuring Product Safety and Quality
I Universal Design Initiatives
I Protecting Personal Information
I Contributing to Sustainable Consumption

P. 28−

Community­involvement anddevelopment

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

I Community Involvement and Development
I Cooperating with International
Communities to Address Social Issues

P. 32−TOPPAN CSR REPORT 2013

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

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

Organizational Governance he Directors, Board of Directors, andT
Various Meetings
Toppan has 25 directors, including two outside directors, on
its board (as of the end of March 2013). Board meetings areheld monthly and whenever a pressing matter requires action
or deliberation. Especially important management themes
are deliberated beforehand by the Management Committee,
a body made up of directors selected by the President & Representative Director. The goal is to lay weight on managerial
efficiency in business decision making.

 orporate Auditors, Board of Corporate Auditors,C
and Audit Firm
As of the end of March 2013, Toppan has five corporate auditors, including three external auditors, of whom two are independent officers. Along with their own board meetings, thecorporate auditors attend meetings of the Board of Directors
and Management Committee and important meetings on risk
management. They systematically carry out audits for operational sites and related companies in close cooperation withthe audit firm and internal audit-related departments of theCompany. Through these tasks, they audit and advise theCompany from a preventive perspective to ensure the legalityof the operations of the directors and departments and smooth
and appropriate corporate management in line with company
policies and regulations. They also regularly convene a boardof corporate auditors of related companies to improve theeffectiveness of the audits by the corporate auditors acrossthe Group.
Toppan has had KPMG AZSA LLC verify the propriety of theCompany’s accounts through audits to enhance the reliability
and transparency of the Company’s financial information.

Corporate Governance Structure
Meeting of Shareholders
Appointing or dismissing

Appointing or dismissing

Appointing or dismissing

Board of Directors
Auditing

Auditing
Supervising

Crisis Management Committee

Selecting or dismissing

Special Committee (fordefending against takeover bids)

President & Representative Director

Responds toemergencies

Advising and counselingManagement Committee
Considers issues prior to boardof directors’ meetings

Business divisions

Investigates and audits the legality andManagement Audit Office appropriateness of operational activities
Promotes, monitors, and verifies the strict
observance of business-related laws andCompliance Department regulations and the establishment of
ethical business practices
Ecology Center

Guiding

Instructing
Other organizations for control

Chief information
security manager

Safety and Health Committee
National Eco-protection Committee

TPM National Conference

ReportingAssistingNational Conduct Guidelines
Promotion Supervisors

Coordinates, supervises, and verifies
Toppan’s environmental activities

Auditing

Corporate Auditors Office

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

Observingandguiding(Board of) Corporate Auditors

Directors in charge
Auditing

Working together

TOPPAN CSR REPORT 201315

Organizational GovernanceStrengthening Audit Functions
The Management Audit Office is a body established independently from the business divisions. Working from legal andrational viewpoints, the office conducts fair and objective audits
on the administrative and operational systems and practicalstatus of the Company’s management activities. The officeprovides feedback to the relevant departments on problems,
proposes measures for improvement, and reports the audit
results to the President & Representative Director, directors
in charge of relevant departments, and corporate auditors. In
fiscal 2012, the office carried out 25 management and operation audits. It also conducted maintenance and operational
evaluations of internal controls over financial reporting for all
business divisions and main subsidiaries.
The Compliance Department in the Legal Affairs Division
spearheads the Company’s initiatives to ensure the strict
observance of laws and regulations and to firmly establish
ethical business practices. The department facilitates thecomplete awareness of the Conduct Guidelines, organizes
employee education on compliance with applicable laws, andimplements internal audits on information security (➞PP. 24,
30). The Ecology Center in the Manufacturing Management
Division supervises environmental activities, conducts internal audits at operational sites, and monitors the progress ofimprovements (➞P. 34).

Remuneration to Directors and Corporate Auditors
In fiscal 2012, the total annual remuneration to directors was
1,057 million yen and the total annual remuneration to corporate auditors was 108 million yen. Please refer to the section on corporate governance, etc. in the securities report(in Japanese) for details on the method used to determine
remunerations and remuneration-related information.

CSR Initiatives
Promotion Mechanism
Under the President & Representative Director and the Director in charge of CSR, the divisions of the head office work incollaboration with each other to promote CSR activities.
These directors and divisions devise action plans every year
and carry out measures based on shared information on theirprogress and the issues they tackle. From fiscal 2013, Toppan
will engage in more intensive dialogues with experts and stakeholders outside the Company to form a clearer picture of thesocial issues Toppan should address and what society expects
from a company’s CSR initiatives in general. Toppan will continuously upgrade its CSR activities with a perpetually evolving
recognition of social issues and expectations.

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

Accidents related to main systems (ICT Div.)
Occupational accidents, traffic accidents, or other accidents involving
employees (Personnel & Labor Relations Div.)
Incidents related to notes or accounts receivable (Finance &Accounting Div.)CSR Promotion Structure
President & Representative Director
Director in charge of CSR

Accidents or disasters related tocompany operations

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

16

Accidents or complaints related to products (Manufacturing
Management Div.)TOPPAN CSR REPORT 2013

Defamation, slander, or othercriminal damages
Relationships with antisocialorganizations

Natural disasters

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

Risk in business management

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

Unlawful activities related toexternal contracts
Infringement of intellectual
property

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

Environmental problems
Risk in overseas businessactivities

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

Business Continuity Management

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

As a preparation for the contingency of operational shutdowns,
Toppan began formulating business continuity plans (BCPs) in
fiscal 2010 to enable the resumption of business operations as
rapidly as possible. In anticipation of large-scale earthquakes
as a risk to be managed, the Group formulated BCPs at themain operational sites in the Tokyo metropolitan district. Fromfiscal 2011, Toppan has been laying down BCPs throughout
the whole Group, including regional sites and Group companies, to prepare for the contingency of large-scale earthquakes
throughout all of Japan.
To give concrete form to BCPs, Toppan instituted comprehensive activities for business continuity management (BCM)
in fiscal 2012. The Group, for example, continued supplier surveys to assess suppliers’ business continuity capabilities andformulated purchasing strategies based on the survey results.
To keep every employee informed of BCM, Toppan organizedCompany-wide education programs via the e-learning systemand other channels (with 22,294 participants), in-house seminars by outside professionals (with 133 participants), lecturesat training sessions for new employees (with 236 participants),
and other measures.
Through these ongoing BCM activities, Toppan seeks tosecure Group-wide competence for business continuity while
coexisting with communities as a social benefactor.

Countermeasures against Disasters
Toppan has carried out comprehensive
disaster-preparedness measures throughout its operational sites under a basic planfor countermeasures against disasters.
The foremost aims of the countermeasures against disasters at the Group are toensure the safety of all Toppan employees
and their families and to provide aid for affected people in general. A safety confirmation system composed of multiple communication channels such as email and mobile
phone has been in place since 2011 as atool to allow employees to immediately confirm their safety in the event of a wide-scaledisaster. Every operational site has organized its own safety confirmation drills since
the introduction of the system.
All operational sites reserve stockpiles offood and other requisites for commuters
who have no means to return to their homes.
The Group has also been preparing procedures to minimize damage to business­operations, preserve company assets, andprovide assistance to customers and disaster-affected people and areas in cooperation
with companies and residents in the community as a socially responsible corporation.
In parallel with these disaster-preparedness
measures, steps are also being taken toraise awareness of disaster-mitigation procedures among individual employees.
Through the regular repetition of evacuation
drills, walk-home drills, and other drills fordisaster-preparedness, every employee will
have the know-how to deal with emergency
situations quickly and properly.

Education text for employees throughout thewhole Company (in Japanese)

Organizational GovernanceRisk Management Structure

Large-scale earthquake simulation drill(Fukuoka Plant)

TOPPAN CSR REPORT 201317

Human Rights
Points ased on the concept of respect for people, Toppan is committed to respecting basic human rights inside andBoutside the Company.
Toppan has been participating in global policy initiatives such as the United Nations Global Compact andengaging in dialogues on human rights.
In fiscal 2012, Toppan employed more persons with disabilities and improved its systems to support them.

Collective Labor Agreements

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

The Toppan Printing Labour Union and the Company’s management have concluded a collective labor agreement in orderto stabilize labor-management relations, maintain and improve
working conditions, and secure the corporate concord. The
agreement sets forth a fundamental policy between labor andmanagement, the rules governing union activities and labormanagement negotiations, and employment conditions suchas wages and working hours.
As a fundamental policy between labor and management,
Article 1 of the collective labor agreement, the General Principles, stipulates that the Company and union shall contributeto society through business operations and collectively workfor the benefit of the Company and long-term stability of theemployees’ livelihood. Labor and management both upholdthese as common goals. Article 2 of the agreement specifies
that the Company shall respect the union’s rights to organize
and collectively bargain and act. It clearly states that the union
has all the rights established by law.
The Toppan Printing Labour Union is run by members from
12 Toppan Group companies. In fiscal 2012, the union and theCompany concluded a revised labor agreement to impose a
uniform set of liability-related clauses (rules governing union
activities and labor-management negotiations) on all 12 Group
companies.

Human Rights

Respecting Basic Human Rights

Initiatives for Respecting Basic Human Rights

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

Respect for people
A universal concept highly valued by Toppan

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

Working for equal opportunityand eliminating discrimination

Organizing training
and education

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

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

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

Promoting CSR procurement( P. 26)

Operating hotlines( PP. 24, 26)

Contributing to society( P. 32)

Toppan cites respect for basic
human rights as a guiding principle in
the CSR Procurement Guidelines andrequires business partners to comply
with the guidelines.

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

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

In fiscal 2012, Toppan took part in a series of human rights due diligence workshops undertaken by Caux Round Table Japan andworked to clarify significant human rights issues specific to different industries through dialogues with NGOs. http://www.crt-japan.jp/EN/

18

TOPPAN CSR REPORT 2013

Working for Equal Opportunity andEliminating Discrimination

Employment of Persons with Disabilities
Toppan promotes the hiring of persons with disabilities in collaboration with a special subsidiary, Tokyo Metropolitan Government (T.M.G.) Prepress Toppan Co., Ltd. In fiscal 2012
Toppan launched a project team for hiring persons with­disabilities and encouraged departments to create new job
categories. Toppan also set up an in-house consultation service to further improve the Company’s systems to support
employees with disabilities. These efforts allowed more departments in the Company to hire persons with disabilities. As ofJune 1, 2013, the percentage of Toppan employees with disabilities rose to 2.13% out of the total Toppan workforce.

Positive Action
Toppan has promoted positive action focused on the hiringof diverse human assets with wide-ranging aptitudes and thecreation of positive working environments in order to bringout the full potential of individual employees, regardless ofgender. The Company continues to appoint female employees
to managerial positions based on their skills and motivation. In
total, 197 female managerial and supervisory staff members
were deployed as of April 2013.

Female Managerial and Supervisory Staff
200
150
100

Q Female supervisory staff
Q Female managerial staff

149

115

(as of April)
197

176

161

150

133

124

Number of Recruits
Fiscal 2011
Regularrecruitment of
new university
graduates andpost-graduates

37

43

47

2010

2011

2012

2013 (year)

Employment of Persons with
Disabilities
2011

2012

2013

Employees

199

197

221

Percentage
of total
workforce*

1.97%

1.91%

2.13%

Fiscal 2013

Male
Sales,
administration, etc. Female

23

24

39

Male

83

105

70

Female

22

26

30

Male

3

0

4

Female

13

11

14

195
(29.7%)

226(27.0%)

237(35.0%)

Male

2

16

—

Female38—Technical

Total number of regular recruits(percent female)

34

Fiscal 201251

New graduates from high schools
and colleges of technology

50
0Providing an Open Environment for Recruitment
Toppan hires persons of both genders and of many nationalities, ages, and levels of physical ability through three recruitment channels: regular hiring of new graduates from universities
and high schools, mid-career hiring of experienced personnel,
and hiring of persons with disabilities. Toppan offers various
employment opportunities through job-specific screenings inJapan and the recruitment of global personnel all over theworld. Toppan also runs internship programs to boost student
awareness about the working world. About 130 students took
part in six-day practical training sessions in fiscal 2012.

Human Rights

Self-determination on the Career Path / Second Careers
Toppan has established the Challenging Job System, a program to encourage employees to consider their own work
experience, official qualifications, and the departments anddivisions to which they would like to be transferred. Employees
think carefully about their own medium-to-long-term careerdevelopment and the skill-enhancement plans necessary tomove them on track. The system cultivates a problem-solving,
can-do mindset that kicks in when employees reach the newpositions to which they aspire. For retired employees in theirsecond careers in company life, the system offers working
options matched to their career aspirations and the knowledge, experience, and skills they have acquired through longyears of service. Fifty of 69 employees who retired in fiscal
2012 were reemployed and now remain with the Company.

Mid-career recruitment ofexperienced personnel

60

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

TOPPAN CSR REPORT 2013

19

Labor Practices
Points oppan recognizes how deeply it depends on employees and encourages them to work vigorously and earnestlyTwith strong motivation.
Toppan’s labor union and management engage in dialogues at business councils and various committees.
T oppan has been undertaking initiatives to shorten working hours as a means of achieving better work-life balance
and maintaining employee health.

Labor Practices

Basic Concept of Human Assets

Labor-Management Partnership

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

As partners with shared ideals, Toppan’s labor union andmanagement have trust in each other and respect for eachother’s positions. Together they work on various issues on an
equal footing and hold recreational activities for employees
and a host of other activities. In fiscal 2012 they organizeda large-scale sports festival attended by some 3,500 participants (including Toppan employees and their families) on the
grounds of Toshimaen amusement park in Tokyo. Employees
from ­Toppan operational sites all around Japan competedagainst each other in team events.
Business councils are convened as Company-wide andoperational site forums to discuss wide-ranging managerial
issues. Several special committees are also convened to deliberate pertinent issues of the day. Standing committees meet to
discuss longstanding issues such as working hour reductions,wages, and safety and health. Individual committees meet whennecessary to discuss specially designated subjects such as thecreation of a working environment amenable to enhanced job
satisfaction. In the committee convened to deliberate working
hour reductions in fiscal 2012, labor and management discussed ways to shorten extended overtime work and a new
shift work system based on work sharing. The new shift work
system was introduced in October 2012. Toppan has adopted
a union shop system. In principle, all non-managerial employees
belong to the labor union as members.

Number of Personnel (as of March 31)
Directors
Fiscal 2010
Fiscal 2011
Fiscal 2012Management
Supervisors
Class

Total
Employees

AverageTenure

Male

26

1,686

1,800

7,512

14.4

40.7

Female

0

33

114

1,121

8,7

32.2

Male

26

1,687

1,749

7,363

14.9

41.3

Female

0

39

121

1,145

9.2

32.8

Male

25

1,769

1,790

7,417

15.0

41.8

Female

0

41

133

1,170

9.6

33.3

Reasons for Leaving*1
Fiscal 2011

Fiscal 2012

Personal reasons

116 (38)131 (48)

180 (53)*2

Retirement

89 ( 0)80 ( 1)69 ( 2)

Requested by thecompany0 ( 0)

0 ( 0)

0 ( 0)

Other

60 ( 2)84 ( 1)83 ( 4)Total

265 (40)295 (50)332 (59)

3.0%

3.4%

3.7%

Turnover rate

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

Average Annual Salary20

Sum Total
Employees

Part-timeWorkers

Temporary
Staff

8,633

647

47

8,508

730

68

8,587

708

75

Annual Paid Leave Used

Fiscal 2010

Total

Average
Age

Fiscal 2010

Fiscal 2011

Fiscal 2012

6,680,897 yen

6,397,624 yen

6,414,340 yen

TOPPAN CSR REPORT 2013

Fiscal 2010
Average paid
leave used (days)
Average ratio*

3

Fiscal 2011

Fiscal 2012

7.8

8.2

8.1

40.7%

42.4%

41.9%

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

Employees Taking Maternity or Childcare Leave
Fiscal 2010

Fiscal 2011

Fiscal 2012

Employees taking
maternity leave

72

58

68

Employees taking
childcare leave*4

94 (1)

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

Supporting Work-Life BalanceEfforts to Foster the Next Generation
Toppan has striven to create a working environment in which
employees can achieve better work-life balance. It does soby providing systems for childcare and nursing care leave,
reduced working hours, higher family allowances for dependents, and employee benefits of other forms. Under the rehiring
system for employees who resign from the Company to deliverand bring up children, 24 resigning employees have registeredfor future rehiring as of April 2013.
Toppan has also made institutional improvements for thechildcare leave system. For parents, for example, the Company
has extended the period of childcare leave up to the first March
31 after the employee’s child reaches the age of 12 months,
a point in time beyond the requirements of the applicable law
in Japan. This change eases difficulties parents face in Japan,
where entry to daycare services is often impossible midway
through the year. Meanwhile, the eligibility period for reduced
working hours for employees with childcare responsibilities is
set to continue up to the end of the child’s third year of elementary school (again surpassing legal requirements in Japan),even in households where the employee’s spouse has time to
devote to childcare. Annual paid leave has been reviewed toenable employees to take leave for purposes such as childcare, nursing care, or fosterage of the next generation. In April
2013, Toppan removed the limit to the number of half-days
employees can take as leave.

Labor Practices

 fforts to Shorten Working HoursE
The special demands of the printing industry have made it asignificant challenge for Toppan to reduce the excessive overtime hours worked by employees. Toppan has been instituting
Company-wide measures to eradicate extended overtime work
as a means of achieving better work-life balance and maintaining employee health.
Senior management, managers, and employees jointly
undertake initiatives to improve operating effectiveness byreviewing the ways individuals work and the ways managementadministrates; to equalize overtime hours by adjusting operations within the departments; and to introduce new working
systems such as flextime and irregular working schedules.
At the ongoing business councils and labor-management
committees, labor and management exchange opinions anddeliberate on measures to further shorten overtime workinghours and to comply with the revised Labor Standards Act ofJapan. They also analyze the actual overtime practices andreview the use of the newly introduced working systems.
Toppan renewed its employment management system infiscal 2012 to enable departments to manage working hours
in a more timely and detailed fashion.
As a result of these initiatives, the number of employees
who worked long hours was reduced by 95% in fiscal 2012
compared with fiscal 2007, the year before the measures
were introduced. The average hours of overtime worked also
decreased by more than 20%.

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

Employees can accumulate up to 50 days of annual paid leave (exercisable within two years from the date the days are granted).
Employees are eligible to use their stock leave for medical treatment for themselves or their dependents, healthcare or nursing
care for their families, recovery-work in the aftermath of unexpected disasters, and so on.

Childcare Leave

Both mothers and fathers are eligible for fulltime childcare leave consecutively up until the first March 31 after their child reaches
the age of 12 months (sixteen male employees have taken childcare leave so far, on a cumulative basis). Employees on leavereceive 10% of their regular salaries from the Company (until their child reaches the age of 18 months) and subsidies of 30,000
yen a month from the Toppan Group Fraternal Benefit Society. They can also work for shorter hours (maximum reduction of
two hours per day) or select a flextime or irregular working schedule from the date of their return to the job until their childcompletes the third year of elementary school. The Company subsidizes certain childcare costs and provides childcare-related
information through a consultation office.

Rehiring of Employees
who Leave the Company
to Raise Children

Rehiring is guaranteed for an employee who resigns to deliver and raise a child, provided that the employee has worked for
Toppan for more than three consecutive years up to the date of resignation. A resigned employee who meets this condition
will remain eligible for rehiring until May 1 of the year when the child enters elementary school.

Nursing Care Leave

Employees are entitled to take leave for nursing care. The maximum consecutive leave and maximum reduction in a working
day are one year and two hours, respectively, for every family member requiring nursing care. The Toppan Group Fraternal
Benefit Society pays a 30,000-yen subsidy per month as assistance during the leave. The Company subsidizes certain nursing
care costs and provides nursing care-related information.

Leave for Child
Healthcare

Employees can take up to 10 days of leave a year, regardless of the number of children they are raising. These days can betaken in half-day allotments when necessary.

Volunteer Leave

In principle, employees can take volunteer leave to engage in socially beneficial activities for a maximum of one year. Employees
on volunteer leave receive an allowance.

Staggered Work-hours

An employee can adjust daily working hours upward or downward by up to one hour to avoid rush-hour commutes during
pregnancy and by up to two hours for childcare (until his or her child completes the third year of elementary school).

Dependent Family
Allowance

For employees with children, the Company pays a monthly allowance of 20,000 yen for each child. This allowance is discontinued
on the first April 1 to arrive after the child’s 18th birthday. (No limit for the number of children is applied.)

Partial Subsidization ofBabysitter Expenses

The Toppan Group Fraternal Benefit Society subsidizes 50% of babysitter expenses (up to 5,000 yen per day) for up to 90
days a year.

Other Systems

The Toppan Group Health Insurance Union offers a supplementary allowance in addition to a lump-sum allowance forchildbearing and childrearing. It also provides one-year free subscriptions to the monthly childrearing magazine Baby andMommy and runs a consultation office for employees with questions about the health of the body and mind.

TOPPAN CSR REPORT 2013

21

Labor Practices

Occupational Safety and Health

Measures for Mental Healthcare

Toppan affirmed that safety should take top priority in business operations under its Basic Policy on Health and Safety
formulated in 2010. Each operational site has taken theactions clarified under the policy for the complete eliminationof occupational accidents. The number of accidents has been
gradually reduced since this affirmation was announced. The
safety promotion team at the head office and safety promotion leaders at operational sites will work together to continueorganizing safety education and upgrading the intrinsic safetyof machines and equipment.
In fiscal 2012, Toppan enriched the education content of
the Anzen Dojo, a safety training facility in Kawaguchi, Saitama
Prefecture, and opened the facility to both Toppan employees
and external parties. More than 10,000 people have experienced accident simulations using specialized simulation hardware installed at the dojo so far. About the same number, morethan 10,000 employees (including part-time workers and othernon-regular employees), have also tried out a danger simulator, a mobile device conveyed to operational sites throughout
Japan. The danger simulator has been very effective in imparting a steady awareness of occupational safety to the Toppan
employees who try it.
Moving forward, Toppan will undertake full-fledged risk
assessment activities for accident prevention across theGroup. All operational sites will work in concert to completely
eliminate occupational accidents.

Labor and management regard the maintenance of employee
health as a shared mission vital for the corporate activities at
Toppan and have regularly met to exchange frank views on
mental healthcare measures.
Based on the opinions exchanged, several rules have been
appended to the employment regulations to help the Company provide a working environment to which employees canmore readily return from mental healthcare leave. These rules
define a clear set of criteria for deciding when an employee
should return to work, measures to prevent the recurrence ofleave, and programs to support employees once they return
to work. To prevent mental illness or promptly detect and treat
it, Toppan also holds regular mental health check-ups for all
employees and arranges rank-based mental healthcare training. Toppan has also concluded advisory agreements withmental healthcare specialists and encourages employees totake advantage of the counseling rooms established in all of
the regions where Toppan operates.
In a project jointly arranged by a Group company called
Institute of the Formative Art Co., Ltd., Toppan operates Art
Salon, an art session to refresh employee minds and bodies through the creative work of painting. Art Salon sessions
are held in regions all around Japan. In fiscal 2012, Toppan
and the institute also opened the Hagukumi (bringing up) Art
Salon, an art session widely appreciated by employees onchildcare leave and their children, the participants for which it
was established.

Occupational Safety and Health

Overview of the Mental Healthcare System

2010

2011

2012

Deaths fromoccupational
accidents000Frequency rate*1

0.00

0.10

0.05

Severity rate*2

0.00

0.004

0.00

*1 Number of occupational accidents requiring
employee leave, per million working hours(reflects the frequency of occupational accidents)*2 Number of workdays lost as a consequenceof occupational accidents, per thousandworking hours (reflects the severity of occupational accidents)

Primary
Prevention:

Proactive measures

22

TOPPAN CSR REPORT 2013

Early detection

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

MedicalTreatment:

Early recovery

Steps to Prevent
Recurrence:

Support for returning
employees (fresh starts)

Contracts with mental healthcare specialists

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

Programs to support employees
returning from mental healthcare leave

Response to Biliary Cancer
Toppan will handle organic solvents at
manufacturing workplaces by thoroughly
controlling them in observance of the regulations under the Industrial Safety and
Health Act of Japan. These workplaces will
steadily switch from the organic solvents
they now use to alternative substances not
subject to restrictions under the act.

Secondary
Prevention:Counseling rooms
Art Salon, an art session for employees
Appointment anddeployment of aperson to takecharge of mental
health enhancement
at every operationalsite

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

Developing and Fostering Human Assets
 oncept of Human Asset Development and FosterageC
Mindful of how deeply it depends on employees, Toppan fosters human assets with ambition and integrity. Toppan would
like to contribute to society as a corporation blessed withexcellent human assets. The Company has set up humanasset development programs systematically around a simple
platform, the Toppan University. This in-house virtual university supports life-long learning, skill improvement, and career
enhancement for all Toppan employees while striving to foster
top leaders.

 ostering Human Assets with Ideal Working Skills
F
and Aspirations for a Global Business Environment
Toppan has set up an overseas study system to develop
human assets who can play active roles in global businesses.
The Company has also been operating a trainee system toprovide employees with practical training in day-to-day business activities overseas since fiscal 2011. Twenty employees
have been deployed as trainees under the system, as of theend of fiscal 2012.
The selective training on globalization launched in fiscal
2010 has supported a cumulative total of 332 candidates foroverseas assignments so far.
 trengthening the Environment to Develop Human
S
AssetsToppan has established training centers in Kawaguchi, Saitama
Prefecture and Yugawara, Kanagawa Prefecture to nurtureindividuals who will shape Toppan’s future. These centers arevenues for various training sessions and interchanges among
Toppan personnel.
The Company runs an intranet to help employees enhancetheir abilities and skills online. Employees visit the intranet toread posts on human asset development programs and review
the records on their own training.

Labor Practices

Various Education Systems
The head office organizes rank-based and department-based
training and enriches selective training courses planned out
to foster leaders of tomorrow. For new employees, Toppan
regards the first three years after recruitment as a Companywide development period (the “early career planning” period).
To help new employees acquire necessary skills, Toppan
organizes Company-wide training and on-the-job training (OJT)with help from the new employees’ immediate superiors, the“Brothers” or “Sisters.”
The Toppan Business School, meanwhile, offers self-development training for employees via optional courses (grouptraining) and correspondence learning courses (the Challenge
School). A cumulative total of 9,712 employees participatedin fiscal 2012. Employees also have ready access to basic,
Company-wide education via the e-learning system year

round. A cumulative total of 199,739 employees took part in
fiscal 2012.

Systematic Human Asset Development Programs“Conduct of High Value” Based on the Corporate Philosophy and Corporate Creed
Earning the trust ofcustomers

Strengthening businessfoundations

Fulfilling corporatesocial responsibility

Knowledge andinformation skills“Abilities and Skills” for “Conduct of High Value”
Ability to identify and
Ability toTechniques andformulate tasks
accomplish tasksknow-howRank-based Training
I New division manager training
I New department manager training
I New manager training
I New supervisor training

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

Strengtheningorganization

Improvingcorporate value
Skills in communicationand fostering subordinates

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

Basic Company-wide Education (e-learning)

Training for Globalized Businesses

Training by the Divisions

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

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

I Training in each division and each
workplace

Selective Training

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

Toppan Business School
I Optional training
I Challenge School
I Video library

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

TOPPAN CSR REPORT 201323

Fair Operating Practices
Points he Toppan Group began drawing up a Conduct Guidelines Casebook for overseas.
TToppan provided training on the prevention of corruption, embezzlement, and other forms of improper conduct.
Toppan has been monitoring the supply chain to ensure that paper suppliers legally obtain the lumber they use asa raw material for paper production.

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

Fair Operating Practices

Conduct Guidelines Promotion Leader System
Toppan operates a Conduct Guidelines Promotion Leader
system. In this system, every Group operational site assigns
a Conduct Guidelines Promotion Supervisor (the “Supervisor”)
and Leaders (the “Leaders”) for disseminating the Conduct
Guidelines and ensuring full guideline compliance. Supervisors
and Leaders implement ongoing activities directly connectedwith their daily business operations. Seven hundred and ninetytwo Leaders were deployed across the Group in fiscal 2012,
including 60 women (7.6% of the Leaders). A cumulative totalof 5,295 employees have worked as Leaders since the system
was launched in 2004. Toppan will continue with measures todeploy many more Leaders and to resolutely foster and assign
more female Leaders.

 issemination Activities by the Conduct Guidelines
D
Promotion Leaders
The Leaders formulate action plans tailored to the details of
business operations and conditions, staff compositions, andother individual factors at the workplaces where they serve.
The Leaders organize Conduct Guideline read-throughs andfacilitate discussion using concrete cases to enhance compliance awareness among their colleagues.
Tools to Promote the Conduct Guidelines
Toppan gives every employee a Conduct Guidelines Casebook, a Q&A style casebook describing actual situations that
can arise in daily work. The Company uses the casebook for
rank-based education and the Leaders use it to disseminate
the guidelines at their workplaces. Toppan also posts regular Conduct Guideline Notifications on topics relevant to theguidelines, in order to heighten employee awareness and callattention to compliance-related issues. The notifications published in fiscal 2012 covered topics such as power harassment,
information leakage, and unlawful conduct.

Toppan Group Helpline
When an employee discovers a legal violation or improper
conduct somewhere in the Toppan Group, he or she is toreport it to his/her superior for deliberation, in principle. If theemployee’s superior fails to resolve the problem, the employee
is encouraged to call the Toppan Group Helpline, the Group’s

Structure to Promote the Conduct Guidelines
President & Representative Director

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

Divisions in the Company

Divisions of the head office

Division heads

Conduct Guidelines
Promotion Supervisor
Senior General Manager
of Legal Affairs Division

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

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

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

24

TOPPAN CSR REPORT 2013

Conduct Guidelines
Promotion Leadersin manufacturing
departments

Conduct Guidelines
Promotion Leaders

Educational leaders

Managers or supervisorsfrom each department
Employeesinternal reporting system. The helpline is kept open for use
by all Group employees, including temporary staff and parttime workers.
The helpline was used in eight cases in fiscal 2012. The
incidents reported involved power harassment and other inappropriate actions. All eight cases were strictly investigated andproperly handled, and necessary countermeasures were taken
to prevent recurrence.

Implementing the Conduct Guidelines inOverseas Group Companies
In fiscal 2012, the Toppan Group began drawing up a Conduct
Guidelines Casebook for overseas. The casebook is based on
a wholly updated edition of the Group-wide Conduct Guidelines Casebook issued in fiscal 2011. As soon as the casebook
is completed, the Group will hold briefing sessions in every
country and region to ensure full compliance with the guidelines at overseas Group companies.

Compliance Education

Training to Prevent Improper Conduct
Toppan provided training on actual cases of corruption, embezzlement, and other forms of improper conduct that have takenplace at other companies. A total of 22,389 employees took
the course via the e-learning system, and 1,722 managerial
staff took the course via group training.
 ducation on Compliance with Transaction-relatedE
Laws and Regulations
To ensure compliance with the Subcontract Law of Japan andprevent improper export and import trade, Toppan regularly
offers special training courses and checks and audits howtransactions are being handled. In fiscal 2012, the Company
trained 376 employees on compliance with the Subcontract
Law and trained 421 employees in group sessions focusedon export controls under the Foreign Exchange and Foreign
Trade Act of Japan. As many as 4,358 employees took thecourse on export controls via the e-learning system.
Briefing on ComplianceToppan was not involved in any serious accidents or violationsof laws or regulations in the course of business in fiscal 2012.

Toppan Group Helpline

Fair Operating Practices

Training for Conduct Guidelines Promotion Leaders
As in previous years, Toppan held group training for Conduct
Guidelines Promotion Leaders in fiscal 2012. The training wasscheduled in two phases. In the first, 677 Leaders were trainedin 39 sessions across Japan from May to September 2012.
In the second, 558 Leaders were trained in 34 sessions from
November 2012 to March 2013.

In these sessions, Toppan devises ways to enhance theeffectiveness of training through activities such as group discussions using case methods describing actual incidents andaccidents.

When the problem
remains unresolved

Communicator
Any Group employee

Reporting andconsultation
Reporting on
progress andresults, follow-up
communication

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

Approach to Intellectual Property

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

Reporting

Department responsible forinvestigation and countermeasures

Protection and management of intellectual property is a crucial issue for
Toppan, a company engaged in planning and development in the diverse
business fields of Information & Networks, Living Environment, Electronics, Personal Service, and Next-generation Products. The Company
devotes strict attention to measures to prevent the infringement of copyrights, trademarks, and other intellectual property rights of third parties
while obtaining patents for its own technologies and business models.
Along with special training for employees, planning departments
regularly hold training sessions for business partners. Participants inthese sessions acquire basic knowledge of laws on intellectual property rights by reviewing actual cases involving problems in design workand the like.

TOPPAN CSR REPORT 201325

Promoting CSR Procurement
The Toppan Group implements CSR initiatives in cooperation and collaboration with business partners throughout theentire supply chain. The CSR Procurement Guidelines are a
set of principles the Group observes to drive this endeavor.
These guidelines consist of the Basic Procurement Policy, aconceptual framework to be closely observed by every Toppan
employee involved in procurement operations, and the CSR
Procurement Standards, a set of requirements to be satisfied
by every business partner.
Initiatives in the Supply Chain
Every business partner willing to cooperate with the Toppan
Group’s CSR procurement initiatives submits a memorandumof cooperation and reports its CSR activities in questionnaires.
Toppan checks the current status of business partner activities
via these questionnaires and reassesses or visits partners to
conduct onsite inspections and interviews face to face whenever necessary.

Fair Operating Practices

26

Verifying the Legality of Lumber as Paper Material
Toppan promotes sustainable procurement of raw materials bymonitoring paper suppliers (business partners) to ensure thatthe lumber they use for paper production is legally obtained.

In fiscal 2012, Toppan surveyed 61 sites of 58 business
partners from which the Company purchases paper aroundthe world. Toppan asked the 58 partners to fill out questionnaires. Whenever the questionnaire results revealed a needfor detailed onsite inspections, Toppan visited the sites tocheck the sources of the lumber the partners procured, thecertifications or permits they acquired, the traceability management procedures they practice, and other relevant matters.
These surveys confirmed that all of the procured lumber was
obtained legally.
Promoting Compliance in Procurement D­ epartments
The Toppan Group regularly conducts Business Partner Monitoring, a questionnaire survey of business partners, to check
whether Toppan’s procurement departments perform proper
operations in accordance with the Basic Procurement Policy.
In fiscal 2012 the Group asked seven business partners to fillout the questionnaires and improved compliance in procurement operations based on the results.
The Group has also established the Supplier Hotline, a portal
for receiving reports from business partners, on its website.

Toppan Group CSR Procurement Guidelines (revised from the Procurement Guidelines in May 2007)
Basic Procurement Policy
I We impartially offer opportunities to all suppliers.
I We comply with all domestic and overseas legislation and perform fairbusiness dealings based on corporate ethics.
I We strictly control the information obtained through our procurement a­ ctivities.

I We give full consideration to impacts on the environment.
I We pursue QCD (Quality, Cost, Delivery) in order to meet the needs of themarket.
I We 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 orgroup.
(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, and environment-related
legislation.
(6) The company complies with laws protecting those who disclose information in the public interest, and it protects the rights of those whoreport internally.
(7) The company complies with legislation related to exports and with thelaws 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) T he company strives to make timely and appropriate disclosure of
information relating to matters such as the details of business activities, quality, and product safety.
4. The environment and safety(12) T he company strives to use raw materials and components with a
low impact on the environment.
(13) T he company strives to devise processes with a low impact on theenvironment for manufacturing and processing.
(14) T he company carries out appropriate management of chemical substances specified by Toppan.
(15) T he company carries out appropriate disposal of industrial waste.
(16) The company strives to prevent work-related accidents and create asafe and clean workplace, and also works to ensure the safety of
employees in an emergency.
5. Improving quality(17) T he company meets the standards for quality required by Toppan
and strives to improve quality.
6. Appropriate pricing(18) T he company provides products or services at a price that is competitive in the market.
7. Stable supply(19) T he 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 2013

Conduct Guidelines and Information Management Policy
Conduct Guidelines
Here are the specific conduct guidelines presented after Chapter 1 of the Conduct Guidelines (described on page 12).
Chapter 2: Specific Conduct Guidelines
Chapter 2 defines the specific conduct practices that we should undertake based on the Basic Principles provided in Chapter 1.
Basic Principle 1: Respecting basic human rights
1. Recognizing the diverse values of individuals and respecting personalqualities and individuality
2. Prohibition of discrimination of any kind
3. Prohibition of sexual and power harassment
Basic Principle 2: Having high ethical standards and acting as a responsible member of society
In the conduct of business
1. Acting with pride as a member of the Toppan Group
2. Prohibition of tacit approval of illegal conduct and rule violations
3. Respect for foreign cultures and customs
In our private lives
4. Prohibition of conduct that causes distress to other people
5. Prohibition of drink-driving
6. Prohibition of the possession and use of illegal drugs
7. Prohibition of gambling

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

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

Fair Operating Practices

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

Basic Principle 4: Avoiding all links with antisocial groups

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

Revised in November 2010

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

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

Revised on August 1, 2011

TOPPAN CSR REPORT 201327

Consumer Issues
Points oppan received two awards for its universal design (UD) initiatives.
TToppan has increased the number of tightly secured areas designated for the handling of personal information andis taking steps to have more of these areas accredited and certified.
T oppan was one of the first private-sector companies to acquire the Carbon Footprint of Products (CFP) system
certification under the CFP Communication Program undertaken in Japan.

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

Consumer Issues

Product Safety
Toppan has established a Basic Stance on Product Safety
Management and Basic Guidelines on Product Safety Management to secure the safety management of the products it
manufactures. The latter provides guidelines for the following
measures: the establishment of a structure to secure productsafety by identifying and evaluating the risk of improper use orother product-related mishaps and complying with laws andregulations relevant to products manufactured by each division; information collection and provision and actual measuresin the case of product-related accidents or problems; andproduct recall procedures.
To support product safety management, Toppan strives toimprove product quality on an ongoing basis. Every operationalsite has acquired the ISO 9001 certification for its quality management system (QMS) and works to update it. Two hundredand fifty-four employees took part in Toppan’s training sessions for internal auditors at operational sites in fiscal 2012.
Basic Stance on Product Safety
Management
We promote product safety
management throughout
the Group by securing safety andimproving the quality of our products
based on the Basic Principles ofConduct Guidelines andthe principles of corporate social
responsibility as a protector ofuser safety and health.

 ertified Approval System for Manufacturing in FoodC
PackagingFood packaging requires exacting quality assurance for safety
and sanitation. Toppan has adopted a certified approval system to ensure that the operational sites of Toppan and partner companies can manufacture containers and packages
only after receiving the required ratings in audits. The audits
are conducted based on the Quality Assurance Guidelines
for Food Packaging using a checklist. Toppan carried out 29
audits at 28 operational sites inside and outside the Company
in fiscal 2012.
Management of Chemical Substances in Products
Toppan intensively promotes product safety management inall manufacturing processes, from material procurement toproduct shipment, by controlling various chemical substances
whose use is prohibited or restricted. While adhering to green
procurement standards prescribed by client companies, theCompany has established a set of Green Procurement Standards attuned to the features of products manufactured byevery division in the business fields of Electronics, Living
Environment, and Information & Networks. Toppan manages
chemical substances in products throughout the whole­supply chain.

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

Operational site audit

Operational Sites Audited
Food containers• 12 operational sites at divisions andmanufacturing subsidiaries
Filling/packing businesses• 5 operational sites at manufacturingsubsidiaries• 8 operational sites at production
business partners
Training session for internal auditors

28

TOPPAN CSR REPORT 2013

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

Consumer Issues

Examples of Universal Design
Toppan’s packaging departments have been applying their own
research and development methods to develop UD proposals
that enhance the inherent brand values of client products. In
fiscal 2012, Toppan and Meiji Co., Ltd., a client company andcollaborator, shared an Accessible Design Package Award fortheir design of a tube container for butter, “Meiji butter in tube
1/3,” at the Japan Packaging Contest. The Japan Packaging
Institute, the event sponsor, valued the container most for
the tube cap, which requires fewer twists to open and close,
reducing the physical demands imposed on users. The cap

also snaps with an audible “click” to give users a tangible senseof “open” and “tightly closed.”In 2013, Toppan also received the chairman’s award at
the Japan Packaging Competition sponsored by the Japan
Federation of Printing Industries. The prizewinning package
was designed for “Meiji Buono Cheese,” a snack-like cheesestick. The tip of the cheese stick pops out from its wrapper
as the consumer opens the package. Thanks to this pop-out
mechanism, the consumer can eat the cheese without actually
touching it with his or her fingers.
Toppan assigns high value to three ideals when introducing
universal designs in the business field of Information &Networks: diversity awareness, enhanced user-friendliness,and continuity. Departments in this field offer UD proposals toclient companies to help them improve their communication
tools and make those tools available to more people. Their
proposals are total solutions covering the whole design process: from the analyses of existing problems and editing anddesign by specialists to support for the formulation of guidelines and manuals and the development and implementationof in-house training programs.

Toppan’s Seven Principles on­Universal Design
1. Design products and services that are
more responsive to people with different
physical abilities and perceptions.
2. Facilitate communication using multiple
channels for communication, including
visual, aural, and tactile channels.
3. Make products easier to use by making
them easier to understand.
4. Make products that are easier to move,easier to approach, and require lessstrength (remove the physical burdens).

Meiji butter in tube 1/3

Meiji Buono Cheese

The cap opens and closes with a few twists andsnaps with an audible “click” to give users atangible sense of open and closed.

The tip of the cheese stick pops out when the
consumer opens the package. Thanks to thismechanism, the consumer can eat the cheese
without actually touching it with his or her fi­ ngers.

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

TOPPAN CSR REPORT 201329

Protecting Personal Information
Toppan treats all personal information entrusted to the Company safely and securely in order to protect the interests andrights of individuals, to reciprocate customers’ trust, and tocope with the growth of more-personalized communication
services.
 einforcing the Management of Operations Involving
R
the Handling of Personal Information
Toppan has structured a system to maintain unified control
over the handling of personal information across Japan bythoroughly implementing its own qualification system basedon stringent security criteria. In fiscal 2012, the Company
increased the number of qualified security areas designatedfor the handling of personal information to 63.
More of these areas are working to acquire ISO/IEC 27001
certification in addition to PrivacyMark accreditation. Toppan’s
tightly secured areas at the Kyushu and Chugoku & Shikoku
Subdivisions of the Nishinihon Division acquired the ISO/IEC
27001 certification in fiscal 2012.

Response to New IT Risks
IEstablishing a Set of Guidelines
In response to the prevalence of smartphones and tablets andthe widespread use of social media services such as Twitterand Facebook, Toppan drew up a set of guidelines to prevent
information leaks and careless remarks in virtual environments.
These guidelines have been disseminated across the Group
via regular employee education.
IHolding an Open Seminar
Risks in cyberspace are becoming a global issue. Toppan
took a step to spread accurate knowledge about these risks
among employees by inviting a cyber-security specialist topresent a guest lecture. Mr. Itsuro Nishimoto from LAC Co.,
Ltd. spoke on “Cyber Security—current threats in cyberspaceand how to control them.” A total of 263 Group employees
joined the seminar.

Consumer Issues

Making Activities Ongoing
Toppan continuously conducts quality-oriented audits on
operations involving the handling of personal information.
The Company closely audited the management and deletionof intermediate files containing personal information for 25
operations in fiscal 2012.
Toppan also arranged face-to-face lectures for all employees across Japan to heighten their awareness on the handlingof personal information. A total of 318 lectures were presented
in fiscal 2012.

Regions in Japan with Tightly Secured Areas Designated for the Handling of­Personal Information (as of March 31, 2013)
Kansai (12 areas)

Hokkaido (3 areas)

Chugoku & Shikoku(1 area)

Tohoku (2 areas)

Kyushu (2 areas)
Kanto (41 areas)

A specialist guest speaks at an open seminaron cyber security for Group employees

Chubu (2 areas)

Tightly Secured Areas Designated for the Handling of Personal Information at Toppan Group Companies with ISO/IEC 27001:2005 Certification(as of March 31, 2013)
IInformation and Communication Division (IT Solutions, IT Solution Department, Toppan Idea Center; Service Integration Department, IT Service Division,
Toppan System Solutions Co., Ltd.), Toppan Printing Co., Ltd.
IInformation and Communication Division, Toppan Printing Co., Ltd.; Toppan Communication Products Co., Ltd.; Toppan Joho Kako Co., Ltd.
IOji Security Room, Data Center, Toppan System Solutions Co., Ltd.
ITakino Securities Printing Plant, Toppan Communication Products Co., Ltd.; Information and Communication Manufacturing Subdivision, Information andCommunication Division, Toppan Printing Co., Ltd.
IKyushu, Chugoku and Shikoku Team and ISMS Promotion Committee, Information Security Management, Nishinihon Division, Toppan Printing Co., Ltd.

30

TOPPAN CSR REPORT 2013

Contributing to Sustainable Consumption

Eco Flat Cups

Reporting the Carbon Footprints of Products
The carbon footprint of products (CFP) is a measure of CO2
emissions associated with the life cycle of a product or service,from raw-material procurement to disposal and recycling. It isa single number anyone can understand. More consumers are
expected to voluntarily choose eco-friendly products by referring to these numerical values on product labels.
As a participant in a CFP pilot program operated by the
Ministry of Economy, Trade and Industry of Japan, Toppan
collaborated with the ministry in the formulation of ProductCategory Rules (PCRs). In fiscal 2012, Toppan acquired the
CFP system certification in two fields: publication and commercial printed materials (intermediate goods) and printed
materials for advertisement and business. Toppan was one of
the first private-sector companies to acquire this certification
under the CFP Communication Program, a Japanese CFP
scheme undertaken by the Japan Environmental Management
Association for Industry (JEMAI). The system certification
acknowledges that an internal system has been establishedto manage CFP through the stages of CFP quantification up
to the application for CFP registration and disclosure. The
acquirement of the certification allows four of Toppan’s plants
in the Kanto region to apply for registration and disclosure of
CFP data without carrying out product-by-product verification
procedures outside the Company.
Toppan will offer the CFP registration and disclosure service to client companies as a means of disseminating moreproducts with CFP labels.

Carbon Footprint of Products (CFP)­registration certificate (in Japanese)
Forest StewardshipCouncil® (FSC)
forest management
certification
A scheme for approving responsible forest
management under the
principles and standards established by the
FSC®.

Promoting Sustainable
Forest Management

Consumer Issues

Toppan produces a host of environmentally friendly products
designed to contribute to a sustainable society.
In the field of paper-based containers and packaging,­Toppan has developed and markets the Eco Flat Cup®, apaper-based beverage container produced from pulp using
domestic lumber, including lumber harvested from forestthinning operations. The Eco Flat Cup is coated with a thin GL
Film barrier and can be easily crushed into a very small volume
for disposal. The superior barrier and seal properties of theEco Flat Cup enable longer periods of storage compared tosimilar containers. In fiscal 2012, the Company created a newuse for the cup by commercializing a new type that can be used
for alcoholic beverages that require high-temperature filling.
In 2002 Toppan acquired the Forest Stewardship Council(FSC®) Chain of Custody (COC*) certification, a forest productcertification covering production processes during manufacturing, processing, and distribution. Since then the Company
has been steadily expanding the scope of the certification.
Among plants manufacturing paper-based containers, theSagamihara Plant was covered by the Company’s COC certifications from the FSC® and the Programme for the Endorsement of Forest Certification Schemes (PEFC) before the beginning of fiscal 2012. Toppan expanded the scope of thecertifications to include the Itami and Mikkabi Plants by theend of the same year.

Products with the CFP certification(in Japanese)

Programme for the Endorsement of Forest Certification
Schemes (PEFC) forest certification
A forest certification scheme
covering the world’s largest
certified forest area, managed
by the PEFC council (international headquarters based in
Switzerland).

*Chain of Custody (COC) certification is a scheme for approving comprehensive product management to effectively prevent the admixture of pulpwood andwood products from responsibly managed forests with pulpwood and wood products from non-controlled sources during any part of the production processfrom manufacturing to distribution.

TOPPAN CSR REPORT 201331

Community Involvement and Development
Points he Toppan Group has been engaging in support activities in several projects to assist with the post-disasterT
reconstruction of eastern Japan in cooperation with other companies, NPOs, and local and national governments.
Toppan personnel have participated in support activities to educate and foster coming generations incommunities.
Toppan sponsored the 6th Toppan Charity Concert series to help enhance literacy in developing countries.

Community Contribution and Involvement
The Toppan Group has supported the communities in which it
operates by solving local issues and contributing to sustainablelocal development as a community member. Its domestic andoverseas operational sites are involved in organizations thatbring together the opinions of members in the communities andpromote community contribution activities through dialogue.

Community Involvement and Development32

 ssisting the Post-disaster Reconstruction ofA­Eastern Japan
ICo-creation Workshop to Accelerate Reconstruction
In August 2012, Toppan and a group of companies launcheda workshop to promote the sharing of goals and challenges
among companies with broad-ranging know-how and technologies, NPOs deeply aware of local needs, and local governments playing leading roles in community renovation. Workshop
participants are encouraged to start up projects focused on theco-creation of activities that will help accelerate reconstructionof the areas affected by the Great East Japan Earthquake of
2011. They strive to create businesses in which corporate
economic value is balanced with initiatives to address social
betterment and community reconstruction challenges.
Over the course of fiscal 2012, three working groups were
set up to discuss model businesses based on the roadmap
for leading providers of reconstruction assistance formulatedby the Reconstruction Agency of Japan.

IBook Wagon Mobile Libraries
Toppan began its mobile library program in July 2011. Mobile
libraries were deployed on regular rounds of 14 temporary
housing sites in Sendai City, Miyagi Prefecture to deliver books
to residents. The aim was to contribute to community creation by providing mobile spaces to bring people together. The
program ran until March 2012.
In fiscal 2012, the mobile libraries resumed operation from
June to December with help from local university student volunteers. Later in the year, at the end of the resumed operation,
the Toppan Group turned over the program, along with themobile library trucks, to two organizations, the Shanti Volunteer
Association and Shikama Town, Miyagi Prefecture. Shanti Volunteer Association had already established a similar mobile
library program for reconstruction assistance, while Shikama
Town had its own mobile library plan to give townspeople more
opportunities to read books. Both organizations continue tooperate the mobile libraries Toppan established.
IVolunteer Activities
The Toppan site in Sendai City, Miyagi Prefecture pooled efforts
with the Shichigahama Volunteer Center to remove debris every
Saturday from agricultural fields hit by the 2011 tsunami near
the coast in Shichigahama Town. Toppan employees from
Kansai and Hokkaido also took part in this activity, bringing
the total volunteer tally to 169 on a cumulative basis.

Mobile library (Shanti Volunteer Association)Work experience program (in Chiba)Work experience program (in Shiga)

Mobile library(Shikama Town, Miyagi Prefecture)

Class for elementary school students invited tothe site (in Nagoya, Aichi Prefecture)

Roundtable conference with a local community(in Niigata)

TOPPAN CSR REPORT 2013 ostering Future Generations and Contributing toF
Education
The Toppan Group is an active participant and contributor inprograms to foster the children and young people who one day
will be sustaining society. Many operational sites in Japan havearranged classes, internships, work experience programs, andsimilar activities.
An operational site in Fukuoka City, Fukuoka Prefecture, forexample, gave university students opportunities to experienceand appreciate work in information analysis as paid interns in a
special work placement program. An operational site in Nagoya
City, Aichi Prefecture continues to offer classes in collaboration
with a local elementary school and NPO. Using Toppan products and know-how, site instructors give the students tips oncommunication and the importance of natural environments.

Cooperating with International
Communities to Address Social Issues
Toppan participates in activities to enhance literacy (the abilities to read, write, and calculate with adequate proficiency tofunction well in daily life) for people living in developing countries. Literacy is a living skill essential for escaping poverty andenjoying a healthier, more culturally enriched existence.
Toppan sponsored the 6th Toppan Charity Concert series infiscal 2012 and donated concert proceeds to the Asia-Pacific
Cultural Centre for UNESCO (ACCU). The funds donated thisyear will be used for literacy education and classes on maternal and child health for mothers raising young children in
Cambodia.

Educational assistance event (in the US)

Toppan Charity Concert(Violinist Emiri Miyamoto)

Literacy education in Cambodia ©ACCU

Mangrove planting (in Thailand)

Toppan Charity Concert(Saxophonist Nobuya Sugawa)

Literacy education in Cambodia ©ACCUTOPPAN CSR REPORT 2013

Community Involvement and Development

Dialogues with Communities
Every Toppan site throughout Japan stays in constant dialogue with its neighboring communities to grow with them as
a community member.
The plant in Shibata City, Niigata Prefecture has improved its
operations by inviting local residents and government officers
for meetings to inform them of recent plant events and soundout their opinions and suggestions.

Initiatives at Overseas Operational Sites
An operational site in the US donated to a community educational assistance program, and its employees worked as program committee members. This program donates learning
tools and reminds parents of the importance of education to
encourage the parents to keep their children in school. In­Thailand, the Toppan site took part in a mangrove planting
activity to protect the natural environment and prevent damage
from waves and monsoons.

33

The Environment
Points he Toppan Group has established a set of medium-and-long-term environmental targets for fiscal 2020 andTpresses ahead with environmental initiatives.
The Group operates environmental activities in four areas: Environmental Management, Eco-protection, Ecocreativity, and Environmental Communication.

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

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

The Environment

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

Target Values, Results, and Evaluation of Environmental Targets for Fiscal 2012 andEnvironmental Targets (Values) for Fiscal 2013

1. Mitigation of global warming
IReduce CO2 emissions by 11%
compared to the fiscal 2008 level(751 kilotons
669 kilotons: –82 kilotons)
2. Action for building a­recycling-oriented society
IReduce final landfill waste disposalby 87% compared to the fiscal
2008 level(1,584 tons
206 tons: –1,378 tons)

Environmental Targets
1. Mitigation of global warming

IReduce CO2 emissions

2. Action for building a recycling-oriented society IReduce final landfill waste disposal
IReduce waste generation per unit ofproduction value
3. Conservation of the atmospheric environment IReduce VOC emissions into the atmosphere

4. Waste reduction

IControl waste generation

5. Chemical substance management

IReduce the handling amount of chemical
substances designated under the PRTR law

6. Initiatives to conserve biodiversity

IPromote conservation during paper
procurement and at operational sites

7. Environmental contribution through products

IDevelop and expand the sales ofenvironmentally friendly products

8. Facilitation of environmental communication

IMaintain effective communication

9. Prevention of environmental risk

IEstablish and observe new in-house
control standards

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

10. Enrichment of environmental education
11. E
 nvironmental conservation at overseas
production sites

34

TOPPAN CSR REPORT 2013

Environmental Management Activities
Operating Environmental Management Systems
Toppan operates established environmental management­systems (EMSs) based on the Group’s environmental management rules.
Seventy-two Group domestic sites undertake environmental activities to achieve the targets set under the Eco-protection
Activity Plan. The Ecology Center collects environmental performance data as the organization responsible for supervising
the Group’s environmental activities. The center then evaluatesand verifies the data and reports the results to the Board of
Directors and other management bodies. Points of improvement for the continuous upgrading of environmental management are proposed and implemented throughout the entire
Company.
The environmental audit follows a three-stage screening
process: a management system audit by an ISO 14001 registrar, an internal audit by the Ecology Center, and another internal audit at the individual site. Toppan underwent management

ICO2 emissions
ICO2 emissions per unit of sales
IFinal landfill waste disposal
IWaste generation per unit of production
value
IVOC emissions into the atmosphere
IVOC emissions into the atmosphere perunit of production value

Improving Environmental Literacy
Toppan undertakes various measures to improve the environmental literacy of Group employees based on social trends
related to the environment, priority topics for year-by-year environmental activities, and other environment-related matters.
Toppan held rank-based, optional, and internal auditor training sessions and arranged Group-wide e-learning-based programs in fiscal 2012. Email newsletters from the Ecology Center
serve as educational tools for the persons in charge of environmental management at operational sites. The center begansending out a newsletter on biodiversity twice every month infiscal 2011 and began issuing energy-saving notifications six
times a year in December 2012.

Fiscal 2012
Target Values

Results

739 kilotons

679 kilotons

0.72 tons/million yen
475 tons

Environmental Targets
Achievement Rates Evaluation (Values) for Fiscal 2013108.1%

S

688 kilotons

0.76 tons/million yen

94.4%

B

0.75 tons/million yen

352 tons

125.9%

S

455 tons

0.653 tons/million yen

0.724 tons/million yen

89.1%

B

0.735 tons/million yen

5,250 tons

4,497 tons

114.3%

S4,762 tons

—

—

—

—

0.0128 tons/million yen

92.4%

92.7%

100.3%A

92.7%

IHandling amount of chemical substances
designated under the PRTR law

8,643 tons

6,689 tons

122.6%

S

6,828 tons

IHandling amount of chemical substances
designated under the PRTR law per unitof production value

—

—

—

—

0.0183 tons/million yen

Continuous increase

Applied a set of paper
procurement guidelines

—

A

—

IOperational sites for land-use assessment

2 sites

4 sites200%

S

4 sites

IPercentage of lumber legally obtained bysuppliers (out of all lumber used as amaterial for paper that Toppan procures)

—

—

—

—

100%

ITotal sales of environmentally friendly
products (Cartocan, etc.)

240.0 billion yen

208.5 billion yen

86.9%

B

5% increase in total sales
compared with the previous year

IIssuance rate for Site Eco Reports*1

100%

100%

100%

A

100%

IRate of establishment of new in-house
control standards

100%

33%*2

33%

C

100%

IRate of course completion in e-learningbased programs

100%

98%

98%

B

100%

Trial assessment using thein-house standard values

Checked the in-housemanagement indicators—

C

Trial assessment using thein-house standard values

IMaterial recycling rate

IUsage rates of certified paper andrecycled paper

IEstablishment of in-house standards

The Environment

Management Indicators

system audits for 52 systems and carried out internal environmental audits at 72 operational sites in fiscal 2012. Necessary
procedures were taken to correct the deficiencies pointed out
during the audits.

*1 Toppan independently determines which operational sites are required to issue Site Eco Reports.
*2 Toppan carefully examined the relevant indicators and the contents of the in-house standards.
105); A, Targets achieved (100achievement rate [%] 105);
Evaluation criteria: S, Results achieved far surpass the targets (achievement rate [%]B, Activities fully carried out, but targets unachieved (70 achievement rate [%] 100); C, Activities insufficient (achievement rate [%] 70)
Achievement rates: For environmental targets #1, 2, 3, 5: 200 – (values actually achieved / target values) × 100 [%]; for environmental targets #4, 7, 8, 9, 10:(values actually achieved / target values) × 100 [%]TOPPAN CSR REPORT 201335

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

100%
Other
Environmental impact

Toppan applies the LIME* life-cycle impact assessment method
to consolidate INPUT and OUTPUT data on environmental
burden associated with business activities into a single index
of environmental impact.
This assessment provides a holistic view of the environmental impact of all business activities at the Group and serves
as a benchmark for establishing medium-and-long-term environmental targets and checking the effectiveness of environmental initiatives.
Toppan has managed to reduce its environmental impact
every year. In fiscal 2012, the Group attained a 25% reduction
compared to the fiscal 2006 level.

Types of Environmental Impact by Business Field
Other

Other

Photochemical
oxidants

80%
60%
Globalwarming40%

GlobalwarmingGlobalwarming

20%
Resource
consumption

0%

Resource
consumption

Information & Networks Living Environment

Resource
consumption
Electronics

Note: In Living Environment, the chart shows a significant impact from photochemical oxidants, pollutants formed by reactions between sunlightand VOCs released into the atmosphere. In Electronics, the chartshows that energy consumption in clean rooms and other facilities
with high energy-loads imposes higher impacts on global warming.
Toppan includes these indicators among its medium-and-long-term
environmental targets and has taken initiatives to reduce these typesof environmental impact.

The Environment

Major Environmental Burdens by Business Field in Japan (INPUT/OUTPUT data)

INPUT
Material Input

Total Energy Consumption

Total Water Consumption

Total PRTR Handling

Information & Networks
798,640 (50.8%)

Information & Networks
3,905 (25.2%)

Information & Networks
975 (7.4%)

Information & Networks
998 (14.9%)

Living Environment
737,582 (47.0%)

Living Environment
5,389 (34.8%)

Living Environment
1,916 (14.5%)

Living Environment
2,540 (38.0%)

Electronics
34,486 (2.2%)

Electronics
5,525 (35.7%)

Electronics
9,933 (75.1%)

Electronics
3,148 (47.1%)

Non-production sites
0 (0%)

Non-production sites
656 (4.3%)

Non-production sites
391 (3.0%)

Non-production sites
3 (0%)

Total 1,570,708 (Unit: tons)

Total 15,475 (Unit: 1,000 GJ)

Total 13,215 (Unit: 1,000 m 3)

Total 6,689 (Unit: tons)

OUTPUT
Total Waste Discharge

CO 2 Emissions

Total Effluent Discharge

Total PRTR Release

Information & Networks
133,660 (50.4%)

Information & Networks
168,603 (24.8%)

Information & Networks
627 (5.3%)

Information & Networks
60 (20.2%)

Living Environment
100,509 (37.9%)

Living Environment
259,047 (38.2%)

Living Environment
1,423 (12.0%)

Living Environment
233 (77.8%)

Electronics
27,392 (10.4%)

Electronics
224,572 (33.1%)

Electronics
9,406 (79.5%)

Electronics
6 (1.9%)Non-production sites
3,514 (1.3%)

Non-production sites
26,608 (3.9%)

Non-production sites
378 (3.2%)

Non-production sites
0 (0.1%)

Total 265,075 (Unit: tons)

Total 678,830 (Unit: t-CO 2)

Total 11,834 (Unit: 1,000 m 3)

Total 299 (Unit: tons)

Note: Energy consumption associated with fuel consumption is calculated using the conversion factor specified in the year 2000 amendment of the Act on the
Rational Use of Energy of Japan. The primary energy input associated with electricity consumption is calculated uniformly as 0.00983 GJ/kWh. Someof the material inputs are calculated from estimated values based on production values.
I “ Waste” in this report includes industrial waste of no value and waste materials of value sold or transferred as resources (both generated in association with business activities).
IT otal energy consumption is the quantity of electricity and fuels consumed.

36

TOPPAN CSR REPORT 2013

Eco-protection Activities

Branch. The Sakado Plant of Toppan Communication Products Co., Ltd. and the Asaka, Ranzan, and Itabashi Plants ofToppan Printing Co., Ltd. received the top awards for outstanding performance. An award for excellence was also
conferred upon the Kawaguchi Plant of Toppan Communication Products Co., Ltd.
Improving Transport Efficiency in Logistics
Toppan Logistics Co., Ltd., the logistics specialist for the­Toppan Group, is working with shippers from Toppan Group
companies to reduce the energy consumption per unit of transport volume by company vehicles and the total volume of CO2
emissions from transport.
Energy consumption per unit of transport volume in fiscal
2012 was 57.5 kL/million ton-kilometers, 11.4% lower than thevolume recorded in fiscal 2011. The energy consumption perunit of transport volume for the five years from fiscal 2008 to
fiscal 2012 was reduced by an average of 2.6% per year, wellsurpassing the targeted average reduction of 1%. CO2 emissions were 48,752 tons, or 38.4% higher than the fiscal 2011
level, due to an increase in overall transport volume in terms of
freight ton-kilometers.
Toppan Logistics will work to accomplish the targets forfiscal 2013 by optimizing transportation conditions and further
improving transportation efficiency.

The Environment

Mitigating Global Warming and Saving Energy
Toppan has been reducing the total emissions of carbon dioxide (CO2) to help mitigate global warming.
Toppan engaged in diverse activities throughout Japan in
fiscal 2012 to cope with the power-supply shortages after theGreat East Japan Earthquake of 2011. The Company introduced a nationwide demand-monitoring system as a meansof controlling the peak power demand in the summer and winter. This system profiles electricity consumption conditions at
operational sites in real time. If electricity consumption at a site
increases, the Company encourages the site to make energysaving efforts. As in the year before, Toppan continued adopting LED lights and heat-shield films and coatings, along withother energy-saving measures such as reviews of air conditioner temperatures and a lights-out policy for lights not in use.
Through these efforts, CO2 emissions in fiscal 2012 werereduced to 679 kilotons (well within the target of 739 kilotons
for the year).
In March 2012, Toppan installed solar panels capable ofgenerating 60 kW of electricity at the Fukaya Plant in Saitama
Prefecture in order to use renewable energy.
As a result of these efforts, five plants in the Toppan Group
received awards at the “2012 Kanto Efficient Electricity UseAwards” sponsored by the Japan Electric Association Kanto

CO2 Emissions(1,000 t-CO 2)

Q CO 2 emissions

CO 2 emissions
per unit of sales(t-CO 2 /million yen)
1.00

1,500
1,200

0.71

0.74

0.75

0.76

722

695

679

900

0.80
0.60

751
600
300

0.40
0.20

0

0
2008

2010

2011

2012 (fiscal year)“2012 Kanto Efficient Electricity Use Award”(Itabashi Plant)

Note: C O2 emissions are calculated by the method specified in the Guidelines for Calculating Greenhouse Gas Emissions from Businesses(2003) from the Ministry of the Environment (MOE) of Japan. The
CO2 emissions associated with electricity consumption, however, arecalculated uniformly as 0.378 t-CO2/MWh.
CO2 emissions in fiscal 2012 amounted to 809,466 t-CO2 whencalculated using the effective emission factor from another MOE
method specified in the Ministerial Ordinance Concerning the Calculation of Greenhouse Gas Emissions from Business Activities ofSpecified Dischargers (the latest amendment on March 31, 2010).

Solar panels (Fukaya Plant)

TOPPAN CSR REPORT 201337

The Environment

Building a Recycling-oriented Society
In a drive to use limited resources more effectively, Toppan
works to reduce the discharge of waste, increase the recycling
rate, and apply appropriate waste treatment methods.
Waste paper derived from operational sites primarily in the
Information & Networks and Living Environment fields makes
up the largest portion (74.6%) of the total waste discharged at
Toppan sites. This is followed by waste plastics from plants in
the Living Environment field and waste acids and alkalis suchas waste etchant from plants in the Electronics field. Toppan
has worked to increase the material recycling rate by processing waste paper into recycled paper and by separating waste
plastics and processing composite plastic into pellets. Waste
acids and alkalis have been processed by internal chemicaltreatments. Final landfill waste disposal was reduced by 200
tons in fiscal 2012 by converting cinders discharged from incinerators, a waste product formerly allocated to landfill, into aroadbed material. The Company has pressed ahead with recycling by establishing more detailed criteria for approving “zeroemission sites” with a three-level grading system based onachievement rates.
Toppan will subdivide waste-separation displays at offices
and other non-production sites from fiscal 2013. Data from
inspections of separation conditions will be provided as feedback to the workplaces in order to heighten awareness among
employees.

Preventing Pollution
The Eco-protection Promotion Committee at each Toppan site
sets in-house control standards more stringently than theregulatory standards require. By complying with these standards, Toppan sites work to reduce environmental burden andprevent pollution at the sites.
To prevent atmospheric pollution, Toppan controls boilers
and other plant facilities responsible for air pollutants by managing operations under appropriate combustion conditions. In
fiscal 2012 the Company continued enhancing efficiency ineffluent-gas treatment by precisely controlling the plant facilities
subject to the requirements stipulated under the Air Pollution
Control Law of Japan. VOC and toluene emissions into theatmosphere in fiscal 2012 were both reduced compared withthe fiscal 2011 levels.
To prevent water pollution, Toppan has installed wastewater
treatment facilities designed to cope with specific water consumption and pollutant conditions at individual sites. Wastewater recycling systems have been installed at Electronics
plants that discharge effluents in significant amounts. By recovering and reusing wastewater via these systems, the plants
have been reducing the levels of water consumption and effluent discharge.
Toppan has also been working for the prevention of groundwater pollution by checking facilities subject to the requirements
stipulated by the revised Water Pollution Control Law of Japanand taking other preventive measures based on the regulatory
regime.

Total Waste Discharge and Final Landfill Waste Disposal

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

350

2.5

VOCs

Toluene10,000

313.8
277.8

280
210

267.6

2.0

265.1

1.6

7,500

7,326

1.5

5,271

5,000
140
0.6

70

0.6
0.4

0

0.5
0

2008

2010

2011

2012 (fiscal year)

Recycling Rate and Material Recycling Rate(%)

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

100
95

98.8
93.0

99.3

99.4

91.5

91.5

2008

2010

2011

99.6
92.7

90
85
80
0

38

4,888

4,497

1.0

TOPPAN CSR REPORT 20132012 (fiscal year)

2,500

0

362

376

317

275

2008

2010

2011

2012
(fiscal year)*Emissions into the atmosphere are calculated in conformance with thestandards established by the Japan Federation of Printing Industries (JFPI)
and the Japan Electronics and Information Technology Industries Association (JEITA). The data for fiscal 2011 have been adjusted based onrevised methods for calculation.

Controlling Chemical Substances
Toppan has striven to reduce the consumption of chemical
substances designated under the Pollutant Release and Transfer Register (PRTR) law of Japan in an attempt to reduce environmental burden. In fiscal 2012, Toppan sites all over the world
terminated the use of dichloromethane. Steps have also beentaken to reduce the consumption of other designated chemical
substances, both volume-wise and in terms of the range ofapplication, by introducing safer substitutes. These efforts
reduced the handling amount of chemical substances designated under the PRTR law by 7.5% compared to the previous
fiscal year, surpassing the target for fiscal 2012.
Toppan has upgraded chemical substance control measures
to meet increasing social demand year by year. Procedures forcontrolling chemical substances at production sites are in place,and the Company has been taking thorough steps to implement
them.

Chemical Substances Designatedunder the PRTR Law*1

Purification of Soil and Groundwater Pollution
Operational Site

Detail(tons)

Ebie Plant(Osaka City, Osaka)
Itabashi Plant Minami I bldg.
(Itabashi Ward, Tokyo)
Itabashi Plant(Itabashi Ward, Tokyo)
Niigata Plant(Shibata City, Niigata)

Soil pollution by hexavalentchromium and lead
Soil pollution by hexavalentchromium and lead
Groundwater pollution byhexavalent chromium and toluene
Soil pollution by fluorine and its
compounds
Groundwater pollution by VOCs
(Voluntary investigation of well
water on the plant premises)

Total
handling

10,000Totaltransfer

Total
release

8,681
7,228

7,500

6,689

5,000
3,119
2,010

2,111

Asaka Plant(Niiza City, Saitama)

399

346

299

*2 As of March 2013

2010

2011

2012
(fiscal year)

2,500

0

The Environment

Approach to Environmental Compliance
In fiscal 2012 in Japan, three production sites recorded VOCemission levels exceeding the regulatory standards set underthe Air Pollution Control Law and one site recorded odor levels
exceeding the limits set under the Offensive Odor Control Law.
Three production sites, meanwhile, recorded excessive levels
of BOD, COD, and n-hexane extractable substances, relative
to the regulatory standards set for water contaminants under
the Water Pollution Control Law and Sewerage Law. Regarding
noise, seven production sites exceeded regulatory standards

set under the Noise Regulation Law. (Toppan is devising countermeasures, including investigations into the sources to determine whether the noise is Toppan’s responsibility or the responsibility of others.) The Company took immediate corrective
measures for every case, including steps to revise the control
methods for equipment. Since implementing these corrective
measures, Toppan has reviewed control procedures and taken
necessary actions to reliably prevent recurrences. As a preventive action against environmental pollution, Toppan holds regular drills to cope with emergencies and accidents during production operations. Emergency-preparedness procedures arereviewed whenever the results of the drills call for them.
In fiscal 2012, the Company verified compliance with inhouse standards at each plant via internal environmental audits
and other checks. For plants whose in-house standards had
been set inappropriately, standards were reset and existing
operation and control conditions were reviewed to ensure thatnone of the regulatory standards would be exceeded.
Communities around Toppan plants filed five complaints andinquiries at four sites in fiscal 2012. All cases involved inconveniences to community residents related to noise. Toppan has
reviewed the control of facilities and equipment responsible fornoise and either installed isolators or assessed plans to installthem. The Company has also stepped up routine inspections
and other measures to prevent the recurrence of noise-related
problems. Toppan will enhance the quality of environmental
management through ongoing dialogue with residents in surrounding communities.

Current Progress*2
Remediation work completed
Remediation work completed
Groundwater pumped andpurified; continuously monitored
Continuously monitored
Continuously monitored*1 Dioxins are excluded because of a difference in the counting unit. The data for fiscal
2011 have been adjusted based on revised
methods for calculation.

Emergency-preparedness drill to cope with a­hypothetical leakage scenario (Fukuyama Plant)

Odor measurement by an external agency(Sakado Plant)

TOPPAN CSR REPORT 2013

39

The Environment

40

Promoting the Conservation of Biodiversity
IAcquiring SEGES for Urban Development Certification
at the New Plant in Gunma
Toppan’s Basic Policy on Biodiversity stipulates rules for the
procurement of raw materials such as paper, water use andeffluent discharge, the release of chemical substances, theuse of land and environments in and around operational sites,
and other environmental matters. Under this policy, the Company will be designing green spaces that emulate the indigenous environmental features in and around the site premises
at Toppan’s new plant under construction in Gunma Prefecture.
Plant construction will be completed in March 2014.
This green space plan is the first plan of its kind within aplant premises to acquire the certification of the Social andEnvironmental Green Evaluation System (SEGES) for Urban
Development. The Organization for Landscape and Urban
Green Infrastructure of Japan grants this certification to businesses that contribute to society and the environment throughgreen conservation and creation.
The plan secures a green space ratio of 30% or more. It
also seeks to reach a 50% permeable land ratio (area where
rainfall infiltrates into the ground) by installing a rain garden,
a wetland area that uses rainwater effectively. The green space
will consist of three zones: the Wind Forest, the Thicket Forest, and the Flower Forest. The Wind Forest is modeled after

the landscape of a windbreak forest, with protective mounds
built in. The Thicket Forest is conceived as an ecosystemminded local forest made up native vegetation. The Flower
Forest will provide an attractive community landscape withrows of cherry blossom trees combined with azaleas and otherflowering trees.
IBiodiversity Conservation at Operational Sites
The Fukaya Plant launched a biodiversity conservation activity
onsite in fiscal 2012. The activity was inaugurated with an
event entitled “Forest-planting for local wildlife.” Employees
and their families took part in quizzes, plant observation­sessions, an eco-workshop to create safe habitats for beetle
larvae, and so on. The second event was a “Birdhouse installation for wild birds in the forest.” This time the participants
observed living things within the plant premise under the guidance of expert naturalists. Every participating family built andinstalled a birdhouse and feeding station in the green space
for the Great Tit.
IImproving Land-use Practices at Operational Sites
Since fiscal 2010, a cumulative total of nine operational sites
have applied the land-use assessment method* to monitor
organisms within their premises and to assess the degree towhich their land-use methods contribute to biodiversity.
*Based on a set of Guidelines for Sustainable
Business Site Management® established by theJapan Business Initiative for Biodiversity (JBIB)

Concept illustration of Thicket Forest at new
Gunma plant

Birdhouse creation (Fukaya Plant)

Concept illustration of Flower Forest at new
Gunma plant

Wildlife observation (Fukaya Plant)

TOPPAN CSR REPORT 2013

Eco-creativity Activities

Environmental Communication Activities eveloping and Approving Environmentally FriendlyD
Products
Toppan approves eco-friendly products in accordance with thecriteria set under Toppan’s 14 Environmental Points based on
ISO 14021 and in-house standards established separately bydivisions. A total of 106 products were registered as “environmentally friendly products” as of the end of March 2013.
The criteria for the 14 Environmental Points were reviewed
in fiscal 2012. Toppan will apply the revised criteria to approve
environmentally friendly products from fiscal 2013 and revitalize its Eco-creativity Activities further.

Presenting at Eco-Products 2012
At the Eco-Products 2012 fair in December 2012, Toppan proposed new environmental solutions based on an “ecollable”
concept oriented towards a sustainable society. By combing“ecology,” “collaboration,” and “able,” the Company intends toshow that governments, companies, organizations, consumers,
and other stakeholders are able to collaborate on eco-tasks
that no entity can accomplish alone. These entities may work
together for the development of new environmental technologies and the creation of new society-wide schemes to resolve
environmental challenges. Toppan presented environmental
solutions such as packaging materials for lithium-ion batteries,
the eco-friendly Cartocan, and smart community initiatives.
These products and initiatives exemplify the endeavors Toppan
has realized through collaboration with client companies,
organizations, governments, and other entities in development,
sales, and operation.
Issuing Site Eco Reports
Toppan’s ISO 14001-certified sites in Japan issue Site Eco
Reports directed towards local municipalities and residents insurrounding communities. Thirty-three reports from 44 sites
were issued in fiscal 2012.

Toppan’s 14 Environmental Points andEnvironmental Considerations
Life Cycle
Stage

Toppan’s 14
Environmental Points
for Environmentally
Friendly Products

Production anddistribution

1. Use of safe materials

Receiving LCA Society of Japan
Chairman’s Award

2. Use of recycledmaterials
3. Resource-saving
4. Reduced energy
consumption in
production
5. Use of recovered
energyEco-Products 2012

6. Reduced solid waste
Use

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

After Use

10. Reusability

The Environment

 nvironment-related Businesses at Group
E­Companies
Like Toppan itself, the companies of the Toppan Group develop,
produce, and market eco-friendly products in line with standards they formulate themselves in consideration of social
demands.
The total sales of environment-related businesses—including, most notably, sales of environmentally friendly products
satisfying the in-house criteria of the Toppan Group—stood at
208.5 billion yen in fiscal 2012.

In November 2012, Toppan received the
LCA Society of Japan Chairman’s Award at
the 9th LCA Society of Japan Awards sponsored by the Life Cycle Assessment Societyof Japan (JLCA). These awards commend
companies, organizations, and researchers
who make intensive efforts to reduce environmental burden by applying life cycle assessments (LCAs).
JLCA applauded Toppan for the following: for applying LCAs to the quantificationof environmental burden associated withboth the Company’s overall business activities and individual products; for incorporating the concept of LCA into the measurement of water consumption and other typesof environmental burden; and for successfully reducing environmental burden andimproving environmental efficiency throughout its business activities through the aforesaid measures.

11. Recyclability
12. Suitability for disposal
13. Easy separation anddisassembly
14. Biodegradability

Site Eco Reports (in Japanese)

TOPPAN CSR REPORT 201341

Independent Assurance
Toppan revised the composition of the environment sectionof the CSR Report 2013 to make it easier to read. The Company was able to make the revisions without any quantitative
reduction of the information to be disclosed. Pursuant to theserevisions, some of the supplementary data are now disclosed
via the CSR Report 2013: Detailed Data, a PDF file posted on
the Toppan website.
In May 2013, the Global Reporting Initiative (GRI) revised
its Sustainability Reporting Guidelines, the de facto global
standard for CSR reporting. Several of the revisions affect thedirectionality of future CSR reporting in significant ways. For
example, an organization preparing a CSR report in accordance with the GRI guidelines is required to disclose not only
the process it uses to identify the information to be disclosed,
but also the material aspects identified through the process.
To cope with these new information-disclosure trends adeptly,
reporting organizations will need time to prepare. They are

therefore advised to begin examining the revised guidelines
at an early stage.
We see that the accuracy of the environmental performancedata in the report is improved overall, thanks in large part toimprovements in the organization of the rules for reporting
through the use of information systems. We believe, however, there is room for improvement in data presentation. For
example, Toppan’s stakeholders can gain a clear picture of theenvironmental burden throughout the Group only after referringto the Detailed Data online.
The scope and boundary of the social performance data
covers only Toppan Printing Co., Ltd., in principle. It will bean ongoing challenge for Toppan to disclose the activities andresults of the entire Group comprehensively.

Shinichiro Akasaka
KPMG AZSA Sustainability Co., Ltd.

Indicators in this Report Assured by an Independent Assurance Provider
Pages
19

Human Rights

Indicators Assured by an Independent Assurance Provider
Number of Recruits; Female Managerial and Supervisory Staff; Employment of Persons with Disabilities;
number of retired employees; number of reemployed employees

20

Number of Employees; Reasons for Leaving; Average Annual Salary; Annual Paid Leave Used; Employees
Taking Maternity or Childcare Leave

21

Rates of decrease in the average hours of overtime worked (in fiscal 2007, fiscal 2012); number of employees
who have resigned from the Company and registered to join the rehiring system for employees who resignfrom the Company for the delivery and upbringing of children

22

Labor Practices

Occupational Safety and Health23

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

24

Number of Conduct Guidelines Promotion Leaders; ratio of female Leaders

25

Fair Operating Practices

26

Number of employees who participated in training sessions for Conduct Guidelines Promotion Leaders;
number of employees who participated in training on the prevention of improper conduct; number of
employees who participated in education on compliance with transaction-related laws and regulations
Number of business partners surveyed to verify the legality of lumber used for paper production

28

Consumer Issues

Number of employees who participated in training sessions for internal auditors; results of audits conductedusing the quality audit checklist

34

Toppan’s Environmental Activities

Environmental targets (values) and results for fiscal 201235

Environmental Management
Activities

Number of internal environmental audits conducted

36

Toppan’s Environmental Burden andEnvironmental Impact

Major Environmental Burdens by Business Field in Japan (INPUT/OUTPUT data)
CO2 Emissions

37
38

Eco-protection Activities

39
41*Only the numerical results are assured.

Eco-creativity Activities

Total Waste Discharge and Final Landfill Waste Disposal; VOC and Toluene Emissions into the Atmosphere;
Recycling Rate and Material Recycling Rate
Chemical Substances Designated under the PRTR Law; Compliance with regulatory standards in fiscal 2012;
number of complaints and inquiries from communities around Toppan plants; Purification of Soil and
Groundwater Pollution
Number of newly registered environmentally friendly products; total sales of environmentally friendly products
at Toppan and Group companies

Some data in the CSR Report 2013: Detailed Data posted on the Toppan website are also assured by the assurance provider.

42

TOPPAN CSR REPORT 2013

Independent Assurance Report

TOPPAN CSR REPORT 201343

Group Business Structure

Customers
Toppan Group Structure
Manufacturing Companies

Toppan Graphic Communications
Co., Ltd.
9 other companies
Toppan Forms Central Products
Co., Ltd.
10 other companies
T.F. Co., Ltd. (PRC)
9 other companies∗Data Products Toppan Forms
Ltd. (Thailand)
10 other companies

Manufacturing Companies
Toppan Packaging Products
Co., Ltd.

Living Environment 25%

Toppan Functional Products
Co., Ltd.
Toppan Plastic Co., Ltd.
Toppan Packs Co., Ltd.
8 other companies
Toppan Yau Yue Paper Products
Ltd. (PRC)
2 other companies

Toppan Electronics Products
Co., Ltd.

Electronics 16%

Toppan TOMOEGAWA Optical
Products Co., Ltd.
5 other companies∗Panasonic Industrial Devices
Optical Films Co., Ltd.

Froebel-Kan Co., Ltd.

Toppan Forms Co., Ltd.

Total Media Development InstituteCo., Ltd.

Tosho Printing Co., Ltd.
2 other companies

Toppan Travel Service Corp.

Toppan Printing Co. (America),
Inc. (USA)Toppan System Solutions Co., Ltd.
Tokyo Shoseki Co., Ltd.
26 other companies

Toppan Printing Co., (H.K.) Ltd.
(PRC)
15 other companies∗Zhejiang Matsuoka Printing
Co., Ltd. (PRC)
2 other companies

Manufacturing andSales Companies
Toppan TDK Label Co., Ltd.
Toppan Containers Co., Ltd.
Tamapoly Co., Ltd.
Toppan Prosprint Co., Ltd.
2 other companies∗Toyo Ink SC Holdings Co., Ltd.
3 other companies
P.T. Toppan Printing Indonesia(Indonesia)
Toppan Interamerica Inc. (USA)
8 other companies

Manufacturing Companies

Sales Companies

Manufacturing andSales Companies

Manufacturing andSales Companies
NEC Toppan Circuit Solutions, Inc.

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

Information & Networks 59%

Toppan Communication Products
Co., Ltd.

∗Toppan M&I Co., Ltd.
8 other companies
Toppan Leefung Pte. Ltd.
(Singapore)
28 other companies

Sales Company
Toppan Cosmo, Inc.

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

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

Products
Materials
Service

Notes:
INo symbol: subsidiary—167 companies *: affiliates—30 companies (as of the end of March 2013)
I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 thebusinesses and other factors.
IThe composition ratios given under each business field are percentages of overall net sales contributed. (“Net Sales by Business Field” are shown on page 5.)
IToppan Forms Co., Ltd., Tosho Printing Co., Ltd., and Toyo Ink SC Holdings Co., Ltd. are listed on the first section of the Tokyo Stock Exchange.
IToppan operational sites span 15 countries and regions, including Japan.

44

TOPPAN CSR REPORT 2013

CSR REPORT 2013

http://www.toppan.co.jp/english/© TOPPAN 2013.10 K I Printed in JapanCSR REPORT 2013
Report on Corporate Social
Responsibility Activities