Top Message

Embracing Our Founding Principles
as We Move Forward
in Harmony with Society
President

On behalf of everyone at DNP I would like to express my sin-sons of this disaster in building an even more resilient

cere condolences to those who lost loved ones in the Tohoku-

corporate constitution so as to ensure we fulfill our responsi-

Pacific Ocean Earthquake that struck Japan on March 11,

bility to maintain supplies to our customers.

2011, and my heartfelt prayers for speedy reconstruction.
Despite damage to some of our plants in northeastern Japan

Creating New Value through a New Wayof Working

and some temporary suspension of operations, we confirmed

1that all DNP Group employees in affected areas we fortunately

I believe that contributing to the development of society

safe and sound after the earthquake. From May on all of thethrough the creation of new value is the primary responsibility

plants that had sustained damage were operating has they hadof a corporation. Society and the corporate world have comeprior to the quake. DNP has always sought to have the strength

to interact more deeply than ever. Society is always continu-

to withstand the impact of a disaster, and having prepared a

ing to change, and as a company we must perceive and meetbusiness continuity plan (BCP) adjusted to suit the characteris-these changes and challenges by finding new roles for thetics of each field of business and worksite we were ready whencompany to play. By doing so we will grow as a company as

the crisis occurred. That we suffered no human casualties andwe gain the trust of society. Responding sensitively to social

were able to recover quickly after the recent earthquake was, Ichange requires that each one of us develops greater social

believe, the result of our efforts during normal times.

awareness, so engaging in deeper TAIWA* with a variety of

Nonetheless, the earthquake generated unimaginably

stakeholders is vital. We have throughly reviewed our ap-

powerful tsunamis, which resulted in the enormous accident

proach to work at DNP, making the transformation to a moreat the Fukushima nuclear power plant. That caused massive

efficient and self-standing way of working. This new way ofdamage to the electrical power and water infrastructures,

working incorporates a healthier work-life balance, combining

which in turn caused supply instability due to the damage

an efficient workstyle with a fulfilling personal life. Effective

sustained at many major suppliers of materials such as pa-

use of the personal time created by our employees throughper, ink, and film. While DNP has made strong efforts toefficient workstyles results in more opportunities for employ-

employ alternate production and similar measures at our pro-ees to engage in TAIWA with society, which itself sparks theduction centers across Japan, this does not the meet thecreation of imaginative ideas that can lead to the challenging

needs of some of our customers. We will draw upon the les-of new business models. I believe that progress in such ef-

forts will enable us to create a DNP that is brimming withacross the entire value chain.

vitality, in which our employees can work energetically.
*TAIWA is a Japanese word describing process for identifying problems

Embracing Our Founding Intent

and finding solutions through the exchange of viewpoints and ideas.

DNP’s predecessor, Shueisha, was founded in 1876, and thisFor Integrity in Conduct

year marks our 135th year of operation. Japan in those days
was eager to hasten as much as possible its achievement of

The second responsibility of a corporation is always to engage intechnological parity with the West. Doing so meant broad

management that meets the expectations of society; in otheradoption of advanced Western science and learning, andwords, to act with integrity. To that end DNP is engaged in a va-

Shueisha took as its mission the achievement of such parity

riety of education and training programs, as well as efforts tothrough printing. This founding intent to contribute to society

strengthen our daily activity checking functions. Nonetheless,through our business was handed down to DNP, and is ex-

nowadays business is conducted along a value chain linking apressed in our Management Concept as “Contributing to thenumber of companies, so it is necessary to engage in high-quali-

emergently evolving society of the 21st Century.”ty activities that meet the demands of society by broadening ourchecking functions to cover the entire value chain.

During the 135 years since our founding Japan has rebounded from crises such as the Great Kanto Earthquake

The DNP Group CSR Procurement Criteria were estab-and military defeat, and gone on to grow. Having also experi-

lished in March 2006, when we revised our Basic Procurement

enced these crises, DNP has succeeded in growing with

Policy, and in cooperation with our materials suppliers we weresociety during such times by contributing to the renewed de-able engage in improvements in accordance with social stan-velopment of society. the Tohoku-Pacific Ocean Earthquake

dards in a number of areas, such as compliance, environmentalof March 2011 can be described as the greatest disaster ofconservation, appropriate working conditions, and data securi-

post-war Japan, but we are certain that Japan shall not fail toty. We expanded these efforts to include contractors as well as

overcome this crisis, and that a new Japan shall emerge.

materials suppliers. This means that rather than demanding

DNP’s most important mission henceforth is to help society

unilateral compliance on the part of suppliers, we first examine

get back on track and contribute the value required by new

the degree of integrity of our own actions. We will work with oursocial structures. Our goal is to maintain the trust of society

suppliers to ensure the integrity in conduct required by society

as we seek to fulfill this role to our greatest potential.

DNP Group CSR Report 20112

Editorial Policy

The matters discussed in this Report are arranged according to two themes, “Matters of Importance to Society” and “Matters ofImportance to DNP.” The Report focuses on DNP Group efforts concerning highly important matters associated with both themes.

Vertical axis:[Selected matters][Matters of Importance to Society]

DNP Management Concept/Vision for the 21st Century and the DNPGroup Code of conduct

We examined the following in making ourselection:

P9-10
P12

Corporate governance

ReportBusiness contributing to the resolution of social issues

P19-26

Compliance with laws and social ethics

P27-28

Information security and personal information protection

P29-30

Promotion of social responsibility in the supply chain

P31-32* Core issues of the ISO26000

Proper disclosure of information

P33-34* Social issues listed in the GRI Guideline

Realization of a ‘universal society’P35-36

Ensuring the safety and quality of our products and services

P37-38Creating a vibrant workplace

P39-42Social contribution as a corporate citizen

P43-44

Environmental conservation and realizing a sustainable society

P49-60* Opinions and requests expressed by readers ofthe 2010 report* Content of questions in CSR Survey conductedby news organizations and others * and SRI(Socially Responsible Investment)

Website* The 10 Principles of the UN Global Compact* Sustainable Asset Management, Experts in Responsible Inv es tment Solutions, Cent er f or Public
Resources Development, The Japan Research Institute, Limited, The Good Bankers Co., Ltd., Mitsubishi
UFJ Research and Consulting Co., Ltd., Integrex
Inc., Carbon Disclosure Project, Nikkei Inc.

The DNP Website - CSR Efforts

Horizontal axis:[Matters of Importance to DNP]
These are items considered important
based upon the DNP Management
Concept/Vision for the 21st Century
and the DNP Group Code of Conduct.

http://www.dnp.co.jp/eng/csr/corporate.html

A PDF version of this report, as well as information not added to this report (such as CSR policy documents, CSR structure
charts, and a list of CSR systems) can be accessed at the website. Also available there is our DNP Group Environmental Report 2011, which contains detailed information about our environmental activities compiled in a PDF.

604g

CO 2 の「見える化」
カーボンフットプリント

http://www.cfp-japan.jp
検証番号：CV-BS01ｰ015

Calculation and display of the CSR Report’s carbon footprint
An item’s “carbon footprint (CFP)” mark is an easy way to understand and display the total emissions of greenhouse gas,
converted to CO2, generated by that item over its entire lifecycle, from materials procurement through disposal or recycling.
DNP was an early participant in the CFP System Trials conducted by the Ministry of Economy, Trade and Industry and related agencies, and we are engaged in calculating and displaying the CFP of our own publications as well as encouraging
the use of the CFP system.
Details about the calculation of the CFP for this report are available in the DNP Group Environmental Report 2011,
which can be downloaded as a PDF at the DNP website.

Assurance
3

Green Power: We have started using Green Power (1.15
million kWh annually). The
printing of this report was
powered by “natural” energy(2,476kWh).

CUD: Approach to Color Universal Design: This report was designed using acolor scheme that the majority of readers
will find easy to understand. It has beencertified by the Color Universal Design
Organization, a non-profit organization.

CONTENTS* With the goal of ensuring objectivity in the evaluation of
our activities, we have asked a variety of stakeholders,
including Co-Chair Saburo Kato of the Japan Association of Environment and Society for the 21st Century,
to provide opinions about our performance and advice
on how to proceed in the future. In addition, we havesought to provide a clearer picture of these activities
by including comments by those who are actually incharge of the various efforts.
* To ensure the reliability of the information in our Environmental section, we submitted it to a third-party
review conducted by the Ernst & Young ShinNihon
Sustainability Institute Co., Ltd. Also, the report was
granted the Environmental Report Assurance andRegistration Mark in recognition of its compliance withDNP Group CSR Report 2011
Top Message ...............................................................................

1

Editorial Policy ............................................................................

3

Contents .....................................................................................

4

Outline of the DNP GroupDNP Corporate Profile/FY2010 Financial Data ............................

5

Segment Results .......................................................................

6

Special Report: An Even More Resilient DNP Group ...................

7

DNP Group CSR .........................................................................

9

Corporate Governance ................................................................

12

Chart: FY2010 Targets and Results .............................................

13

FY2010 Awards & Evaluations ....................................................

17

The DNP Group’s CSR Efforts

18

the Environmental Report Assurance and Registration
Mark Standards established by the Association of Assurance Organizations for Sustainability Information.
* In compiling this report, we have referred to the Global Reporting Initiative’s “Sustainability Reporting- Social Responsibility Report Special Report: Contributing to the Development of Society
through Our Business
DNP Technologies, Leading the Way in Supporting
Tomorrow’s Lifestyles ...............................................................

19

DNP Products in Smartphones ..................................................

23

important environmental data necessary to environ-Compliance with the Law and Social Ethics ...............................

27

mental report certification.

Ensuring Information Security ...................................................

29

Promoting Social Responsibility through the Supply Chain .......

31

Proper Disclosure of Information ...............................................

33

Realization of a ‘Universal Society’ .............................................

35

ing of information about important items not occurring

Ensuring the Safety and Quality of Our Products and Services ........

37

within that period may also be included.

Respect for Human Dignity and Diversity ..................................

39

Realization of a Safe and Vibrant Workplace ..............................

41

Social Contribution as a Good Corporate Citizen ........................

43

Topics: Efforts by Group companies .........................................

45

The DNP Group’s CSR Efforts

48

Guidelines Version 3.0” and the Japanese Ministry of
the Environment’s “Environmental Reporting Guidelines (2007 edition),” and have sought to disclose the[Period covered by this report]
This report focuses on the period from April 1, 2010
through March 31, 2011. In some instances, the report-[Divisions covered]This report covers the CSR efforts of all companies
and divisions in the DNP Group. The data in the environmental section is compiled for a total of 38
companies, including DNP and the companies reported
in our consolidated financial accounting, which includes
36 of our domestic manufacturing companies, one distribution company, and one in-company food service
company.

- Environmental Report Environmental Management Structure .......................................

49

DNP Group Environmental Management System .......................

50

Current Status of Environmental Impact ....................................

51

Chart: Targets and Results .........................................................

53

Achieving a Low-Carbon Society ................................................

55

Building a Recycling Society ......................................................

57

Realizing a Society in Symbiosis with Nature .............................

59

Independent Review Report Comments by an
Independent Institution ..............................................................

61

Third Party Opinion ....................................................................

62

DNP Group CSR Report 20114

Outline of the DNP GroupDNP Corporate Profile (as of March 31, 2011)
Company Name

Dai Nippon Printing Co., Ltd.

Employees

11,016 (Non-consolidated)

Head Office

1-1, Ichigaya-Kagacho 1-chome, Shinjuku-ku

Sales Office

49 locations in JapanTokyo 162-8001, Japan

40,188 (Consolidated)

20 locations overseas (including local affiliates)

Tel: +81-3-3266-2111

Main Plants

60 domestic plants

URL http://www.dnp.co.jp/

R&D Facilities

12 locations in Japan

Established

October 1876

Net sales¥1,589.3 billion (up 0.4% over the previous term)

Capital¥114.464 billion

Net operating Income¥67.8 billion (up 2.0% over the previous term)

Ordinary Income¥62.7 billion (down 8.8% over the previous term)

Net Income¥25.0 billion (up 7.5% over the previous term)

12 overseas plants (including affiliates)

FY2010 Financial Data (FY ending March 2011)
At the base of our printing operations lies the vision of P&I So-

needs, we worked hard to maintain our business results throughlutions. DNP is working to provide solutions to customers by

our Group-wide “Production 21” efforts, which are aimed at es-

fusing the printing technologies cultivated since our founding

tablishing a solid foundation for aspects of our business, such aswith the information technologies that have advanced throughquality, cost, and delivery.

digitalization.

As a result, consolidated sales for the term were ¥1,589.3 billion,

In FY2010, in addition to actively developing our businesswith consolidated revenues of ¥67.8 billion, consolidated profits ofand offering products and services corresponding to customer¥62.7 billion, and a consolidated term net profit of ¥25.0 billion.

Net Sales (Yen billions)Operating Income (Yen billions)

0

0

2006

1,557.8

2006

2007

1,616.0

2007

2008

96.1
87.1

1,584.8

2008

2009

1,583.3

2009

66.5

2010

1,589.3

2010

67.8

46.1

Net Income (loss) (Yen billions)

Ordinary Income (Yen billions)
0

0

2006

2006

101.3

2007
2008

54.8

2007

86.5

2008

47.3

45.1
20.9

2009

68.8

2009

23.2

2010

62.7

2010

25.0

Total Assets (Yen billions)

Bar chart

Net Assets (Yen billions)

ROA (%)

Line chart

ROE (%)

Line chart

0

0

6.0

2006

1,601.1

3.0

1,536.5
4.4

2009

2010

1,700.2

5.2

2007
2008

3.8

*ROA is calculated using recurring profits.

5

Bar chart

5.1

2006
2008

1,618.8

2009

1,649.7

2010

1,099.4

4.4

2007

1,040.1

2.2

940.0
2.6

2.7

956.8

952.4

*ROE: Return on equity is calculated on an owned capital and current net asset
basis after deduction of share options and minority interest from net assets.

Segment Results (FY ending March 2011)

The business of the DNP Group is madeup of our Printing Operations and Bever-Printing

ages Operations.

Information Communication* Printing: We are developing our printing
business across a broad range of appli-

Publication printing: Magazines, books, e-books, e-publishing 1 etc.
Commercial printing: Catalogs, pamphlets 2 , posters, flyers, POP, digital signage, etc.
Business forms: Passbooks, Smart cards 3 , IPS (Contract service for personal printing and sending through data entry) 4 , etc.

cations. These include the Information
Communication segment, made up of
operations such as publishing/commercial printing, Smart cards, and network
businesses; the Lifestyle and Industrial

1

Supplies segment, which includes
packaging, decorative materials, andindustrial supplies; and the Electronics
segment, which includes display products and electronics devices.

2

3

4

Lifestyle and Industrial Supplies
Packaging: Container packaging materials 5 and sterile filling systems for food, beverage, confectionery, daily necessities,
medical and other products
Lifestyle Materials: Exterior and interior finishing material 6 (flooring, decorative sheet metal; etc.) for home, office, rail cars, etc.
Industrial supplies: Optical film for flat-panel displays 7 , color ink ribbons, monochrome ink ribbons, solar cell materials 8 , etc.

* Beverages: We produce and market carbonated beverages, coffee, tea andother beverage products, mainly
through Hokkaido Coca-Cola Bottling.
6

5

Sales distribution

7

8

Electronics
Information Communication

45.0%

Beverages

Display Products: LCD color filters 9 , components for organic electroluminescence displays, etc.
Electronic devices: Semiconductor photomasks 10 , lead frames, package substrate 11 , MEMS products 12 , etc.

3.9%Electronics

17.9%
9

10

12

11

Beverages
Beverages
Production and marketing of beverages 13 through Hokkaido Coca-Cola
Bottling.

Lifestyle and Industrial Supplies

33.2%
13

Net sales by business segment (Yen billions)
0

0

0

2006

668.8

532.7

2007

679.8

555.7

0

291.9

74.1

322.3

73.4

2008

718.4

551.8

255.9

71.7

2009

739.6

536.6

257.5

62.8

2010

721.9

531.7

286.2

63.0

Operating income by business segment (Yen billions)
0

0

2006

50.9

2007

2010

31.6
23.4

18.1
Information Communication

0

36.2

43.0

2008
2009

0

14.8

31.8

0.6

19.8

19.9

1.3

2.5
43.7

46.7
Lifestyle and Industrial Supplies

0.3
8.3

12.2
Electronics

0.5

1.2
Beverages

DNP Group CSR Report 20116

Special Report

An Even More Resilient DNP GroupThe DNP Group’s basic disaster policies and disaster-response organizational structures are established in the
Basic DNP Group Disaster Prevention Regulations.
Our basic policy is minimize the damage caused by a disaster creating disaster response plans and conducting
disaster response efforts through a joint effort including each organization, thereby achieving our goal of groupwide resilience in times of. In addition, we have created a business continuity plan (BCP) containing measures forpost-disaster recovery, which give top priority to preventing injury to our employees or any of our stakeholders. We
will continue to strengthen our fundamental disaster response based upon these policies.

DNP Group Disaster Measures
Organizations and Structures

Business Continuity Plan (BCP)

Education and Training

The Central Disaster Prevention

Actual disaster response measures

We seek to improve proper under-

Council has been established at ourare executed according to our disas-

standing and awareness among

Head Office to conduct comprehen-

ter response plans. The Central

employees and ensure that they be-sive and systematic enhancement

Disaster Prevention Council ishave calmly and safely during

and promotion of disaster response

charged with drawing up the DNP

emergencies through educational

measures. Operations and Group

Group Disaster Prevention Basic

programs such as disaster informa-

Company Disaster Prevention

Plan, which is a comprehensive,tion leaflet distribution and theCouncils have also been placed

long-term plan for the overall Group.

holding of disaster-preparedness

within each business operation andEach operation and Group company

seminars. Regular drills are alsoGroup company. Furthermore, wecreates Disaster Work Plans for

conducted in each area.

have placed Regional Disaster Pre-

practical disaster response that takevention Councils in each region to

into consideration the special char-promote interlinked disaster re-acteristics of each region andsponse measures suited to theoperation, and conducts disaster re-characteristics of each region.

sponse measures.

In the event of a large-scale disas-

Each operation and Group com-ter, these Councils automaticallypany also has established its ownfunction as disaster response head-business continuity plan (BCP),

quarters, assuming overall control ofwhich is aimed at the restoration ofand driving both emergency disaster

important business and work within

response and restoration/recovery

a given period of time, even in themeasures.

event of a large-scale disaster.

Disaster-preparedness seminars conducted by outside instructors

7

Disaster information leaflet distribution to improve
employee awareness

Disaster drill held in Ichigaya with the cooperation of the fire department

Post-Tohoku-Pacific Ocean Earthquake restoration
The Tohoku-Pacific Ocean Earthquake struck on March 11, 2011. DNP immediately convened the Central Disaster Prevention Council,
the structure we created for swift response in the event of disaster, and worked to gather information and respond appropriately.
While some damage to buildings and equipment was found in the hard-hit northeastern region, such as at DNP Tohoku (Sendai, Miyagi
Prefecture), fortunately none of our employees was injured. Despite ongoing difficulties with public infrastructure, such as power, water,
gas and transport, as a result of the concerted effort made by our Group to restore operations as quickly as possible we were again operating normally in May.
Nonetheless, the DNP Group learned many important lessons in the course of getting through the Tohoku-Pacific Ocean Earthquake. Weview the experience as demonstrating the importance of correct awareness of disaster risk and the creation of appropriate measures for disaster response. The experience also spurred us to reexamine measures for continuous secure provision of supplies to our customers.

Future Measures and Business Continuity
New Awareness of Disaster Risk

communications/safety confirmation

responsible for your own safety.” We

The damage from the Tohoku-Pacificsystems, which we had tested dur-seek to encourage each person to

ing our companywide drills on

ensure the safety of their workplace

September 1, 2010 (National Disas-and home, and we engage in drills to

ter Prevention Day), the Head Officethat purpose.

Ocean Earthquake itself has been
followed by the serious secondary
impacts of the tsunamis and the nu-

was able to conduct safety confirma-

clear power plant accident, whichtion even in northeastern Japan,

has resulted in power shortages andwhere the power and telecommuni-

Revision of Business Continuity
Plans (BCP)

cations infrastructure had been

Problems in securing supplies due toparalyzed. The primary emergency

damage at manufacturers or distribu-

response procedure when disaster

tors, as well as at places likerisk exposure, not only the risk of nat-strikes is to gather and transmit in-chemical plants that supply raw ma-ural disasters but also the risk offormation, so our goal is to have aterials, can also be a problem in thedamage originating in their surround-fully-functional disaster response

printing industry, with shortages ofheadquarters system and emergen-materials like paper, ink, or film, notcy communications system. We also

to mention problems such as rollingenhance our disaster response

blackouts or gasoline shortages,

measures by taking into account thecausing the serious disruption of pro-results of disaster risk inspections

duction plans and distribution. We

Promoting Disaster Response
Measuresand reinforcement of buildings andare taking a fresh look at items such

equipment, as well as of our disasteras the supply chain, logistics, and an

We clearly saw the benefits of the di-equipment and supply stockpiles

alternative production system, as

saster response measures that wereand our infrastructure.

well at the location of our production

radioactive fallout concerns. All of
our worksites are reexamining their

ing regional environment, and arelooking into preparing necessary responses.

executed according to plan in re-

We also strive to make our em-

sites both within and outside Japan,

sponse to the recent earthquake.

ployees aware that the basic

so as to maintain secure and continu-

Through the use of our emergency

principle of disaster response is “Beous supplies to our customers.

Supporting the Victims of the Tohoku-Pacific Ocean Earthquake
The DNP Group has been involved in a variety of support activities for the victims of the Tohoku-Pacific Ocean Earthquake, including donations to the Japan Red Cross, in the hope that their lives andhomes can be restored as quickly as possible. Our Group companies in the stricken regions areseeking to support other regional companies. The DNP Group will continue to do everything in our
power to support the restoration of the areas affected by the disaster.

Main support efforts
All DNP Group employees

Donations to the Japan Red Cross (¥6 million)

DNP Group

Donation to the Japan Red Cross (¥100 million)

DNP
DNP
Kyoiku-Shuppan
Maruzen Publishing
DNP Social Link
Hokkaido Coca-Cola Bottling

In cooperation with Shobunsha Publications, we created the “Tohoku-Pacific
Ocean Earthquake Restoration Support Map,” which has been distributed
free of charge to disaster response centers in the stricken areas
http://www.mapple.co.jp/news/news_release110525.html
Placement of link for donations of support funds at the “Mangakocchi” mobile comics sales website
Provision of textbooks and supplies to schools in the stricken areas
Books and articles about earthquakes, tsunamis, radiation, and psychology
made freely available at the website
Making point-based donations at their point service site, “Elne”
Donation of 30 thousand cases of beverages (720 thousand individual
drinks), and other efforts

DNP Group CSR Report 2011

8

DNP Group CSR
CSR (Corporate Social Responsibility) is generally defined as “the responsibilities of a corporation to society,” but
we at the DNP Group go further, viewing CSR as “being a company that is trusted by society.”
By simultaneously meeting the three vital corporate responsibilities – “Value Creation,” “Integrity In Conduct,”and “Transparency (Accountability)” – we seek to continue being a trusted company.

The Three Corporate Responsibilities

Value Creation
Providing new value to society

Integrity in Conduct
Practicing fairness and impartiality inthe value creation processes

Transparency(Accountability)

Being a company that is accountable
and highly transparent

9

1
2
3

We at the DNP Group believe that the most important of the
responsibilities of a corporation to society is “creating newvalues for society” We must make a connection between theoffering of products and services necessary to the sustainable development of a society and the growth of thecompany. The DNP Group fulfills this primary responsibility
by finding solutions to the issues confronted by our customers and society through the promotion of our P&I Solutions
Business Vision.

Next is the corporate responsibility for fairness and impartiality in value creation processes. No matter how superior or
useful to society the value produced is, value is compromised if, for example, environmental damage occurs during
the value creation process or laws are broken. Therefore,
the DNP Group seeks to fulfill this responsibility by ensuringthat all employees “always conduct business with integrity”
in accordance with the DNP Group Code of Conduct.

Finally, the third vital corporate responsibility is “accountability.”
The DNP Group seeks to fulfill this responsibility by encouraging all employees to engage in TAIWA with stakeholders
during the course of their regular duties. Moreover, the DNPGroup provides accurate information to stakeholders as amatter of course.

DNP Group Vision for the 21st Century

DNP Group Code of Conduct

The DNP Group Vision for the 21st Century consists of

The DNP Group has established the DNP Group Code of

our Management Concept, Business Vision, and Guiding

Conduct as the set of principles upon which our efforts to-

Principles, and is an expression of our basic philosophy

ward realizing our Management Concept are based. The

of co-existence and co-development with society and theCode of Conduct is founded upon strong ethical princi-

environment.

ples in accordance with our own rules as well as the law

Our Management Concept is the DNP Group’s socialof the land, and is built around themes we consider to be

mission, and is an expression of the most important valueof mutual importance to both the DNP Group and society

held by all DNP employees. Our Business Vision andas a whole. The conduct of business with integrity at all

Guiding Principles provide direction for the business andtimes in accordance with this Code of Conduct is theemployee conduct that will enable us to make our Man-

foundation of our CSR activities.

agement Concept a reality.
Management Concept

The DNP Group will contribute to the emergently evolving
society of the 21st Century.
Management
Concept

Business Vision[P&I Solutions]

We will identify and solve the problems and issues that consumers andcorporate clients face within the emergently evolving society by fusing
our Printing Technologies (PT) and Information Technology (IT).

Business Vision

Guiding Principles<P&I Solutions><Five Principles>
Concept Phrase<P&I Solutions DNP>

DNP Group Code of Conduct
The Code of Conduct that underlines each and every activity
aimed at realizing DNP’s Management Concept. This Code of
Conduct is to be observed by all DNP Group employees.

DNP Group Vision for the 21st Century

http://www.dnp.co.jp/eng/concept/

Guiding Principles

1. Engage in TAIWA with all persons concerned
2. Work with an independent and collaborative mind-set in order to solve
problems
3. Challenge courageously, even in the face of difficult issues
4. Act with integrity, fairness, and impartiality, at all times
5. Be responsible for your own decisions and conduct
DNP Group Code of Conduct

1. Contributing to the development of society
2. Social contribution as a good corporate citizen
3. Compliance with the law and social ethics
4. Respect for human dignity and diversity
5. Environmental conservation and the realization of a sustainable society
6. Realization of a ‘universal society’
7. Ensuring the safety and quality of our products and services
8. Ensuring information security
9. Proper disclosure of information
10. Realization of a safe and vibrant workplace

Endorsement of the Global Compact
The DNP Group announced its endorsement of the United Nations Global Compact (GC) in July 2006. The GC
covers 10 principles in four categories: Human Rights, Labor Standards, Environment, and Anti-Corruption. Corporations endorsing the GC engage in voluntary efforts to advance these 10 principles, with the goal of achievinga society capable of sustainable growth. We are working to enhance our image as an honest company by promoting the 10 principles of the GC in tandem with our DNP Group Code of Conduct.

DNP Group CSR Report 201110

DNP Group CSR
For Corporate Transparency
DNP celebrates its 135th anniversary in 2011. DNP could

in real TAIWA, and that they take the initiative in provid-

not have achieved so many years of steady growth without

ing accurate information in daily interactions with ourestablishing a relationship of trust with our shareholders,

stakeholders. By doing so they fulfill our duty of account-customers, employees, suppliers, regional communities,

ability and improve the transparency of DNP activities,

and other stakeholders. We emphasize that our employ-

which helps us achieve our goal of remaining a trusted

ees must learn the opinions of stakeholders by engaging

company.

DNP Group Stakeholders• Corporate value improvement• Information disclosure

Customers(consumers)

Shareholders

TAIWA

TAIWA

Employees
TAIWA• Discover latent issues andoffer solutions

TAIWA

DNP
Employees

Nurturing an
emergently evolving
corporate culture
through dialogue

TAIWA
TAIWA

• Information sharing and CSR
cooperation• Mutual competitive strength
trading partners

11

Suppliers

Working toward a sustainable
society and environment

Employees

TAIWA

Employees

TAIWA

Regional
communities• Taxation and employment• Development of local communities• Resolution of common issues

Corporate Governance
The Corporate Governance System
The DNP Group believes that strengthening our corpo-

and in addition oversee the work of other directors. Thisrate governance, including our internal control system, isenables our company to respond swiftly to changes in thea management issue of major importance.

management environment. Another way we shore up our

DNP has established a system whereby its directors,

corporate governance is by raising the compliance aware-

who each have a wealth of specialized knowledge and ex-

ness of individuals by means of thorough training andperience, participate in management decisions across a

education.

broad array of business areas, execute their work duties,

Diagram of the Corporate Governance and Internal Control Systems

General Meeting of Shareholders
Board of Directors

Audit

Audit

Management Committee
Representative Director

Insider Trading Prevention Committee
Information Security Committee
Product Safety Committee
Environmental Committee
Complaint Handling Committee
Central Disaster Prevention Council
Legal and other main divisions/Departments

Guidance
Training

Corporate Social Responsibility Committee

Guidance

Communications
Assistance

Audit unit

(environment & product liability department, labor department,
technology division, accounting division, management
department, IP division, legal affairs department, others)

Audit

Audit
Audit

Auditors OfficeGroup companies

Information Disclosure Committee

Oversight of internal controls

Business divisions(Autonomous implementation,
inspection, review, improvement)

Open Door RoomHead office

Operating units

Accounting Auditors

Audit

Corporate officers

ReportingBoard of Statutory Auditors

Director in charge

Corporate Ethics Committee

Reporting

Audit/GuidanceCommunications
Coordination* Board of Directors Meeting* Board of Statutory Auditors

The Board of Directors is composed of 20 directors, including one outside (in-DNP is a company with a Board of Statutory Auditors. The Board of Statutory

dependent) director. It is normally convened monthly, with directors

Auditors is composed of five auditors, including three from outside the compa-

reciprocally overseeing the execution of each others’ work duties, which en-ny (two of whom are independent), who possess the appropriate level ofsures that proper supervisory functions are maintained. The Officers selectedfinance and accounting expertise. Each auditor audits the business executedat the Board of Directors meeting execute the business concerning the itemsby the directors, according to the auditing standards and duties determined bydetermined at the meeting, and maintain close dialogue with the Directors via

the Board of Statutory Auditors. The auditors maintain close ties, with the ac-

Executive Committee Meetings, which are held three times a month, so that thecounting auditor explaining the auditing plan to the Board at the beginning of

opinions of those closer to the actual worksites are reflected in management.

each term, hearings concerning the auditing situation conducted as needed

In addition, a Management Committee made up of directors of the rank ofduring the course of the term, and audit results reported at term-end.

Senior Managing Director and above was formed so as to improve manage-

The Audit Unit has been established to provide assistance to the auditors

ment speed and efficiency. This Committee examines and deliberates

in their duties, with a special support staff working according the auditors’ in-important management policies, strategies, and proposals. The directors also

structions.

attend the thrice-monthly Executive Committee Meetings to exchange informa-* Neither the outside director nor the outside statutory auditors have personal, financial or business relationships or other interests with DNP.

tion so that management decisions can be made efficiently.

DNP Group CSR Report 201112

Chart: FY2010 Targets and Results
Theme

FY2010 Targets
Promote measures such as training to improve employee understanding and awareness of the DNP Group 21stCentury Vision, and cultivate personnel who will contribute to the development of the emergently evolving
society.
Make full use of the functions of the Gotanda Building, the entirety of which we consider our company“showroom,” and gain the cooperation of all in-house units and our valued customers so as to provide “venues
for TAIWA” where new P&I Solutions possibilities can be derived, so we can contribute to the emergently
evolving society through our business.

Contributing to the developmentof society

Analyze and ascertain current needs and issues by executing the 5th Emergent Evolution Questionnaire (survey
for monitoring employees and customers), and use the results in examining various future measures.

Maximize use of the Printing Technologies (PT) and Information Technology (IT) cultivated by DNP to develop
and expand business in various fields, especially energy and bio-materials, so as to contribute to the realizationof a low-carbon society and improved quality of life.

A disaster-resilient DNP Groupstructure

Work to strengthen prevention and emergency measures to shore up anti-disaster plans at each workplace,and establish measures for Business Continuity Plans (BCP).

Revise and thoroughly improve management content so as to increase the effectiveness of internal controls
and risk management.

Compliance with the law andsocial ethics
Strengthen programs for ensuring a greater degree of adherence to and thorough understanding of corporate
ethics at related companies in Japan and overseas.

Maintain and renew Privacy Mark personal information protection certification and strengthen DNP Group
Information security control systems.

Improve the Information security level by fully implementing the PDCA cycle for information security.

Ensuring information security
Enhance Information security training for all employees.

Implement and standardize physical security measures at all Group sites.

In addition to including our materials suppliers, expand coverage to include our manufacturing contractor
partner companies.

Promoting social responsibility
through the supply chain

Conduct the 4th Regular DNP Group CSR Procurement Criteria Compliance Survey in autumn 2010, and sendout the evaluation sheets containing the analysis of the survey replies in spring 2011.
Conduct on-site CSR inspection, focusing on our main suppliers. Convene CSR Activity Promotion Explanatory
Meetings so that CSR can take hold at small and medium-size suppliers.

13

Evaluation

Evaluation Targets:Target achieved or making steady progress toward target:Making active efforts but target not achieved:Efforts insufficient

FY2010 Results

FY2011 Targets

We conducted new employee training, Step Up Seminars, and new executive training so
as to cultivate personnel who can contribute to the development of the emergently
evolving society. Also, we trained personnel in Solution Business Practical Training sothey can realize P&I Solutions in business.
We discussed issues with customers at Solutions Workshops at the Next Generation
Communications Fair directed at people outside the company, and engaged incollaboration for social development by providing solutions to customer issues.
We conducted the 5th Emergent Evolution Survey aimed at confirming the actual state of
employee awareness and behavior, as well as to look into the needs and expectations of
our client companies regarding DNP. The results of the analysis are provided to therelevant divisions as feedback, where they are used in devising real measures forcontributing to the development of the emergently evolving society.
* In our energy segment we strengthened our production capacity for materials used inlithium ion batteries, which are components of electric cars, smart phones, and otherequipment, as well as for solar cell materials, which are of high interest for use in clean
energy production. This contributed to expanding the market.
* In our life science segment, we used our proprietary surface treatment technology to develop SEGTOP plates for highly sensitive identification of proteins, etc. We are continuingwith our research into creating practical applications for use of this technology in basic
equipment for cancer and infectious disease diagnosis and new drug development.
* We newly established the DNP Group Basic Disaster Measure Regulations so as tostrengthen our overall disaster measures, and created the DNP Group Basic Disaster
Response Plan outlining our fundamental procedures for the Group’s disaster preparedness.
* All operations and Group companies have established Disaster Response Work Plans
based on the above, and are proceeding with preparations for rapid operational recovery after a large-scale disaster by establishing Business Continuity Plans (BCP).

* The Corporate Ethics Committee meets once a month at our head offices without fail,but in 2010 we made biannual meetings (once every six months) for each business division a requirement because some had not been convening regular meetings. Our goal
is to strengthen our corporate ethics promotion structure.
* We seek annual revisions of our Self-Checking System, which is one of the pillars of
our risk management, but in 2010 we aimed to revise self-checking as it relates to legal
matters, making the content more effective in terms of the actual situation.
* As part of our overall overseas affiliate risk management enhancement program, we
have been setting up structures for risk management at our newly-established affiliates
in China, and are guiding the building of systems to that end.
* We are developing a number of case study-based programs with the goal of enhancing
training effectiveness.
DNP has changed its corporate privacy mark certification. Inspection and guidancesystems have been enhanced, and Information Security Training Standards have been
established along with other related regulations.
Enhanced inspection and guidance, as well as evaluation and checking, at DNP Groupsites, with new risk responses, etc.
Created and distributed an information security-related brochure, and implemented
instruction and specialized information security training for all 41,000 company
employees.
We newly installed physical entry and exit security equipment using employee Smart ID
cards at seven business locations (for a total of 128 locations).
At some of our business locations we conducted explanatory sessions for improved
understanding of DNP’s CSR Procurement Criteria on the part of the collaboratingcompanies which we contract for work. The production then proceeded based upon thosecriteria.
We conducted a fourth CSR Procurement Criteria Compliance Survey in February 2011.
Evaluation sheets were sent out in March 2011.
We conducted CSR Activity Promotion Explanatory Meetings for small to medium
suppliers, but onsite surveys at our main suppliers were not conducted.
The CSR Procurement Criteria have been revised in accordance with social norms.

* Reexamine the DNP Group Global Vision in response to the changes due to the Lehmann Shock and the Tohoku-Pacific Ocean Earthquake (anticipated). Continue toprovide solutions to the issues facing society and to cultivate human resources
who can contribute to the development of the emergently evolving society.
* Continuously conduct Solutions Workshops, share issues in the course of TAIWA(dialogue) with customers, and contribute to the development of society by providing solutions to customer issues.
* Use DNP’s printing technologies (PT) and information technologies (IT) to develop
and expand businesses in every segment, including energy, life sciences and digital media, so as to help achieve a low-carbon society and improve quality of life.
* Examine our world from a social perspective, and seek out significant issues, towhich we will propose business-based solutions that exceed the limits of our current operations.

* Proceed deliberately at all operations and Group companies with response measures based on Disaster Response Work Plans and Business Continuity Plans(BCP). Each conducts self-checking, and is enhancing the PDCA Cycle.
* Examine issues concerning the DNP Group response to the Tohoku-Pacific Ocean
Earthquake, and revise planning as well as engage in actual enhancement measures.

* We believe in the importance of the accumulated effects of study, along with daily
efforts for adherence to and thorough understanding of corporate ethics. Therefore, encourage activities in which all Group employees return again to ourfundamental principles and consider the meaning of the “integrity in conduct” towhich we aspire. Part of this effort is to include the revision of training methods
and materials.
* Strengthen programs for creating internal control systems and structures for theadherence to and thorough understanding of corporate ethics at all domestic andoverseas affiliates, for thorough acceptance of the DNP Group’s corporate ethics.
* Revise and improve management content so as to enhance internal controls andrisk management effectiveness.
* Enhance the activities of the Corporate Ethics Committees in each of our business
operations.

* Engage in goal-sharing and repeated TAIWA in the course of maintaining our personal information protection systems and information security control systems, aswell as in executing the PDCA Cycle.
* Revise and maintain autonomous checking and improvement structures at all
Group operational bases so as to respond to new risks stemming from new business or new technologies.
* Implement education and training so as to improve the security awareness of all
employees, and enhance the content of training for overseas operations.
* Implement physical security measures employing our own solutions and knowhow at all Group operations.

* In regard to our application of the CSR Procurement Criteria to contractors asplanned to begin in 2010, expand the coverage and continue with the program.
* In conjunction with the revision of the CSR Procurement Criteria, after reconsidering the content of the CSR Procurement Criteria Compliance Survey, conduct
continuous, regular surveys.
* Broadly expand the number of suppliers subject to the explanatory meetings forsmall and medium-size suppliers, and conduct a number of CSR Activity Promotion Explanatory Meetings.
* Get the results of the 4th DNP Group CSR Procurement Criteria Compliance Survey, and conduct an on-site inspection of the main suppliers.
* With the goal of maintaining the supply chain, request that suppliers draw up business continuity plans (BCP), and confirm that they are in place.

DNP Group CSR Report 201114

Chart: FY2010 Targets and Results
Theme

FY2010 Targets

Evaluation

Promote understanding of DNP by optimizing communications tools such as the website, annual report, data
books, shareholder notifications, guides to the company, news releases, and internal publications, and use theseto describe DNP’s business activities and strengths in an easily understood way. Also, conduct IR meetings andtopic-oriented study meetings and take a proactive approach toward providing information to reporters, and seek
to create even more opportunities for communications with stakeholders, especially investors, mass media, clientcompanies, and communities.

Proper disclosure of information

Prevent insider trading not only by redoubling controls on important internal information, but also on important
information received from clients.
Gain an understanding of the relationship with stakeholders from the perspective of the consumer, and deepen
communications both within the company and externally as well as promoting a transformation in the corporate
culture.
Develop versatile UD evaluation standards in conformity with DNP’s businessdomainRealization of a ‘universal society’Contribute to realizing
the Universal Society
through development ofour business throughout
the company.

Share knowledge that goes beyond the realm of business, and cultivate thenext generation of personnel
Actively provide information about our company’s efforts both within andoutside the company

Ensuring the safety and quality ofour products and services

Implement on-site inspections with the goal of preventing product accidents that occur in manufacturing
processes.
Continue to execute thorough employee education and strengthen the control system for product safety.
Continue with the Female Employee Active Support Meetings. Focus on the 500
employees (female employees and their superiors) in the DNP Group who have
not yet taken the course.
Strengthen diversity
promotion efforts

Respect for human dignity anddiversity
Promote creation of anenvironment that enables
work-life balance support
measures and systems tobe effective.

DNP is expanding mentoring activities as a measure for increasing the rate ofretention of young female employees in the sales units, and will create
measures aimed at increasing the retention rate for female employees in thetechnical units.
We held explanatory meetings introductions to the details of work-life balancesystems for the persons in charge of promoting them in April 2010, with thegoal of promoting the penetration of work-life balance measures and anincrease in the number of employees making use of them.
Introduce “Family Friendly Day” when children can visit the workplace at 5 ormore worksites so as to gain 2012 Next-Generation Childrearing Support
Action Plan certification.

In accordance with the DNP Group Productive Time Resource Project Stage 1 Plan, promote activities for thefirm establishment of a “transformation of workstyle” in the corporate culture.

Realization of a safe and vibrantworkplace

Promote risk reduction activities aimed at achieving the DNP Group 1st Industrial Accident Prevention Basic
Plan frequency rate for accidents accompanied by a lost worktime target of 0.35 or less (71% of that for 2008).

Promote a health improvement plan that brings the number of employees receiving regular health exams to100% and reduces persons under observation to 2.2% in accordance with the goals of the DNP Group 1st
Health Maintenance Improvement Basic Plan.

Social contribution as a good
corporate citizen* Nurture a spirit of social contribution among employees
1. Introduce the efforts of all organizations
2. Post information for the information of employees concerning social contribution efforts- Invite persons such as experts and NPOs to give talks* Develop a social contribution activity menu for the DNP Group and enhance information provision- Develop and execute employee programs using management resources- Look into horizontal development within the Group of programs executed by each organization

15

Evaluation Targets:Target achieved or making steady progress toward target:Making active efforts but target not achieved:Efforts insufficient

FY2010 Results

FY2011 Targets- In addition to publishing 123 news releases during the course of the year (120 in fiscal
2009), we submitted 213 separate information releases to the mass media.
- In addition to holding 209 IR Meetings over the course of the year (233 held in FY2009), a
number of topic-oriented study meetings, such as concerning digital publishing and display
products, were held for investors.

* 2010, in addition to marking the 135th anniversary of DNP, is the 60th year since
we began expanding business through the “expansion printing” concept, and the10th year since we established our 21st Century Vision. Over the course of theyear we will establish important themes, increase our supply of information to themass media, hold theme-based study meetings for institutional investors, and develop a variety of communications tools.
* Engage in deeper communication with stakeholders, collecting their expectations
and opinions and reflecting them in conducting business.
* Enhance the information we provide both within the company and externally about
DNP’s efforts overseas.
* Conduct more thorough controls over important information both inside and outside the company, and enhance our efforts for timely disclosure and insider trading
prevention.

We conducted group training and network learning to enhance our insider trading
prevention, and also revised the regulations. We sought to enforce timely disclosure
through checks and approvals conducted by the Information Disclosure Committee.
We enhanced our website so as to increase its update rate and make it more user-friendly. In
addition to using the company intranet, we enhanced a in-house communications through avariety of means, including company publications, pamphlets introducing DNP products andservices, and digital signage.
The development of evaluation methods proceeded from the Lifestyle and Industrial
Supplies segment to include Information Communications.
- We conducted UD seminars to enhance general employee awareness of UD. About 300
employees participated.
- We established an in-house study group called the UD Workshop, which shares information with human resources development.
We participated in a number of external events, including the Third International Universal
Design Conference. We also took a the central role in International Association for
Universal Design (IAUD) projects.
We continued onsite inspections (Product Safety Practices Committee) in fiscal 2010 aswell.
We executed employee education for product safety through group learning and network
learning conducted by our head office, and practical training at our operations and Group
companies.
The total number of course attendees was 640 (management 302, female employees338) for the DNP Group overall.
The mentoring program at sales units at DNP begun in 2009 continued. At the technicalunits the program is still in the discussion stages, with issues involving participation
improvement being sorted out.

Meetings for explaining the system were held in April 2010, and notification was madethrough in-house publications.

Held at 10 operations sites with 107 families participating.
Definite results were achieved for time resource creation through our “transformation ofworkstyle” efforts, by making work more efficient and diversifying skills, as well as
through our active revision of the labor system.
(Working hours outside scheduled working hours: -39% compared to 2008 (benchmarkyear))
While we conducted assessments every six months and aimed to hit our targets as called
for in the Industrial Accident Prevention Basic Plan, our industrial accident occurrence
rate (accidents accompanied by lost worktime) was 0.49, which was above our target due
to a rise in accidents due to falls.
We continued to advance the Health Maintenance Promotion Basic Plan, based upon the
DNP Group Health Maintenance Guideline. The regular physical checkup rate for
employees 99.6% was slightly under our target, along with the slight increase in thosefound to have health issues.
* In-house intrasite: By posting articles on an approximately once a week basis and making announcements at the top of the intranet page, it ranked 8th in in-house access(15th in the first half). Averaged 16,000 hits/month.
1. While the number of operations and Group companies introduced on the Intranet was
expanded, it does not yet cover all organizations.
2. Information from NPOs and other external organizations is posted.
* Started “Out of the House Cooking Lessons” at four public elementary schools in Chiba.
- Developed as an employee participation program.
- Information provided through the intrasite, in-house publications, and the public homepage* Contribute to realizing the Universal Society through development of our businessthroughout the company.
* Offer society more products and services based on the UD concept.
- Develop generally applicable UD evaluation methods that are suited to DNP’s business domains.
- Share knowledge across business segment boundaries.
- Actively provide information both within and outside DNP about our efforts.
- Cultivate next-generation human resources.

* Execute onsite inspections and monitoring of quality indicators for prevention of
product accidents stemming from the manufacturing process.
* Continue to implement thorough employee education concerning product safety.
* Strengthen diversity promotion efforts- Continue with the Female Employee Active Support Meetings. Focus on employees(female employees and their superiors) in the DNP Group who have not yet taken
the course.
- Continue with concrete measures concerning matters related to diversity promotion ateach DNP Group company. Continue with the mentoring program for female employees in the sales units, and implement measures aimed at increasing the retention rate
for female employees in the technical units.
* Promote creation of an environment that enables work-life balance support measuresand systems to be effective.
- Look into measures for promoting use by male and female employees of the childcare leave system, implement such measures, and increase the use of the system by
male employees.
- Continue to hold “Family Friendly Day” when children can visit the workplace at five or
more worksites so as to gain 2012 Next-Generation Childrearing Support Action Plan
certification.
* During what will be the final year of the DNP Group Productive Time Resource
Project 1st Basic Plan, make “reform of work habits,” which are at the heart ofthese efforts in each operation and Group company, part of the corporate culture,so that each employee makes effective use of time resources.
* Continue to aim for the DNP Group 1st Work Accident Prevention Basic Plan Work
Accident Occurrence Rate target of 0.30 or less (68% of 2008) by promoting risk
reduction.
* Reach the targets of the DNP Group 1st Health Maintenance Promotion Basic Plan
target rate for regular physical checkup rate for employees of 100%, and implement a health improvement plan to reduce the percentage of those found to have
health issues to 2.2%.
* Continuously discuss the DNP Group 21st Century Vision and Code of Conduct
during training and at meetings, so that each employee understands the goals andthe meaning of both, and is able to contribute autonomously to society.
* Cultivate creative human resources who can plan and develop new services, suchas digital publishing and SNS (social networking services).

* Foster employee consciousness of good corporate citizenship- Hold a meeting announcing the 2011 CSR Report- Introduce the social contribution efforts of all DNP Group organizations on the in-house
intrasite.
- Also on the intrasite, introduce external social contribution organizations whose activities can serve as a reference for in-house activities (6 organizations).
- Hold lectures by experts, NPOs, etc.
* Develop the DNP Group’s own social contribution programs and conduct them horizontally across the GroupDNP Group CSR Report 201116

FY2010 Awards & Evaluations
DateAwards & Evaluations

Sponsor2010 April

49th 2010 JAPAN PACKAGING COMPETITION (JPC)
Minister of Economy, Trade and Industry Award, etc. Awards received for 10 products(awards presented to the customers in each case)

The Japan Federation of Printing
Industries

35th Kinoshita Prize New Creation Award (Development of new form of gum, “Fit’s”) (Award shared with Lotte Co.)

Japan Packaging Institute2010 May

2010 June2010 July2010 August2010 September

2010 October2010 November

2010 December

2011 January

2011 March

The May Day CBF Model Partnership Awards (received by Tien Wah Press)

National Trade Union Congress

The Kanto-Koshinetsu Region Federation of Associations for the Safety of Hazardous Materials Chairman’s Commendation(received by DNP IMS Odawara)

Kanto-Koshinetsu Region
Federation of Associations for the
Safety of Hazardous Materials

The Kanto-Koshinetsu Region Federation of Associations for the Safety of Hazardous Materials Chairman’s Commendation(In recognition of facility enhancement and safety controls) (received by DNP Ellio)

Kanto-Koshinetsu Region
Federation of Associations for the
Safety of Hazardous Materials

Superior Workplace (Daily efforts to prevent pollution and preserve the environment) (received by DNP Technopack)Gifu Prefecture Environmental
Association

The Premier Print’s Certiﬁcate of Merit for Modern & Contemporary Art at Dartmouth (received by Tien Wah Press)

Printing Industry of America

Letter of thanks (for contributions to medicine)Tokyo Medical and Dental University

22nd Annual Labor Bureau Chief’s Commendation for Health and Safety (Okayama Labor Bureau Incentive Award)(Award received by DNP Opto-Materials Okayama Plant)

Okayama Labor Bureau

The Pewter for Gold Ink Awards for SVA (received by Tien Wah Press)

Printing Impressions, Executive andBook Business Magazines (co-sponsors)

2010 “Great Place to Work” ranking/Overall ranking: 13th

Nikkei Inc.

55th Kanagawa Architecture Competition (Superiority Award) (DNP Hakone Training Center No.2)

Kanagawa Prefecture

40th Japan Promotional Marketing Institute Exhibition (awards presented to the customers in each case)
8th JPM Planning Award/New Client Acquisition Planning Incentive Award, 40th Creative Design Show/Economy, Trade andIndustry Minister’s Prize, JPM Gold, Silver Awards (awards presented to the customers in each case)

Japan Promotional Marketing
Institute Inc.

12th Automatic Identification Systems Award (Superiority Award) (Shared with IFCO Japan)(Realization of consolidated control of rental containers and their contents in the fresh food distribution supply chain throughthe introduction of RF tags in rental containers)

Japan Automatic Identification
Systems Association

6th Quality Management Survey Ranking/Overall ranking: 5thUnion of Japanese Scientists andEngineers

2010 “Cho” Monodzukuri Innovative Parts and Components (Incentive Award)(Wiring sheets used in ultra-thin 0.16 mm. thickness LGA and metal interposer-equipped QFP)Conference for the Promotion of
Monodzukuri

52nd All-Japan Catalog/Poster Fair 24 pieces received awards (awards presented to the customers in each case)

The Japan Federation of Printing
Industries

2010 Kanagawa Prefecture Environmental Conservation (Air-Water-Soil) Assistance Commendation (received by DNP IMS Odawara)

Governor, Kanagawa Prefecture

Good Design Frontier Design Award 2010 (Station guidance systems using floor signs, smart phones, etc.)
Jointly received with East Japan Railway Company, Softbank Telecom, and Book Mark.

Japan Industrial of Design
Promotion

Medal with Dark Blue Ribbon(for donations to the Sapporo Maruyama Zoological Park) (received by Hokkaido Coca-Cola Bottling)

Cabinet Office

6th Quality Management Survey Ranking/Superiority Award

Union of Japanese Scientists andEngineers

2010 Panasonic Excellent Partners Meeting SCM Contribution/Monetary award(For building a vibrant structure for the production of 8th generation color filters used in LCD televisions)

Panasonic Corporation

Letter of thanks (for contributing to improvement and elimination of trouble built-in crossovers using EB coat technology)

PanaHome Corporation

62nd Annual All-Japan Calendar Competition 24 pieces received awards(awards presented to the customers in each case)

The Japan Federation of Printing
Industries
Japan Printing News Co., Ltd.

7th Industrial Ability Ranking of Truly Able Companies/Overall ranking: 7th

Nikkan Kogyo Shimbun, Ltd.

14th Japan Environmental Management Ranking Survey/Overall ranking: 21th

Nikkei Inc.

Image d’OR Tirage Category (Gold medal) (Fotolusio Print Center) (award received by DNP Photoimaging Europe)

Le Monde I’image

Traffic Safety Assistance Award (for assistance in traffic safety awareness campaigns) (received by Hokkaido Coca-Cola
Bottling)

Hokkaido Prefectural Police
Headquarters

10th Annual Integrex Survey: “Survey of Corporate Honesty and Transparency (Ethical and Social)”Overall ranking: 8th

Integrex Inc.

Japan Industrial CSR Management Trend Survey 2010 (Company which made progress in socially responsible management efforts)

The Japan Research Institute, Ltd.

Elite-Smiley (for being the best of 400 Greve-region companies in fire prevention and safety) (received by DNP Denmark)

Greve Fire Brigade

SRI indices in which DNP is included
SRI (Socially Responsible Investment): This is investing that includes a company’s CSR efforts along with financial analysis among investment criteria.

SRI index

Homepage

Dow Jones Sustainability Indexes

http://www.sustainability-indexes.com/

FTSE4Good Index Series

http://www.ftse.com/Indices/FTSE4Good_Index_Series/index.jsp

Ethibel PIONEER Register & Ethibel EXCELLENCE Register

http://www.ethibel.org/subs_e/4_index/main.html

Morningstar Socially Responsible Investment Index

http://www.morningstar.co.jp/sri/index.htm

Sustainable Asset Management

http://www.sam-group.com/htmle/main.cfm* The Morningstar Socially Responsible Investment Index, developed by
Morningstar Japan K.K., tracks the share performance of 150 selected
Japanese companies based on their commitment to CSR.

17

The DNP Group’s CSR Efforts- Social Responsibility Report -Entry in the Information Media Supplies Operation Group Photo Contest[RELAY TEAM SWIMMING, SMILES]
Photo: Children of Tu A. Bui, DNP IMS America Corporation

DNP Group CSR Report 201118

Special Report: Contributing to theDevelopment of Society through Our Business

DNP Technologies,
Leading the Way in Supporting
Tomorrow’s Lifestyles
DNP was founded as the first full-scale printing company in Japan in 1876.
Since that time, DNP has applied and developed Printing Technologies (PT) and Information Technologies (IT) to
produce products and services that people cannot do without. Now they are things that are used as a matter of course,and support convenient and comfortable lifestyles.
DNP continues to challenge new fields of business with technology as our main focus as we seek to contribute tocreating a rich society.

Toshiki Sugimoto
Corporate Officer in charge of R&D

19

Special Report: Contributing to the Development of Society through Our BusinessConvenient and Comfortable Lifestyles Supported byPrinting Technology
DNP has continued to expand our fields of business with technology at their core indeveloping our “expansion printing” concept. This began in the 1950’s, when we
moved into packaging and decorative materials. Printing applications expandedfrom paper to plastic film, cloth, and metals, and we came to produce a variety of
products that are indispensible to today’s lifestyles, such as laminated tubing, retort
pouches, and PET bottles. Printed materials also came to be used in home and automobile interiors, not to mention digital camera and photographic seal printmaterials.
We also developed the first color TV-use shadow mask in Japan in 1958, marking
our move into the electronics field. At present, color filters for LCD displays and materials for semiconductors are among our main products. Such products, which wereborn of printing technology, have themselves spurred innovative new products, andsupport the rich lifestyles we lead today.

Rich Communications Created by Information
Technology
In the area of information technology as well, we have since our founding sought tosharpen technologies for displaying letters and illustrations as precisely as possible. We have spurred broad development of this technology, from the creation of“Shueitai” during the Meiji Period through color management and design, as well as
the first efforts toward digitalization in the 1970’s. In 1985 we developed the world’s
first CD-ROM dictionary, opening the way toward the development of single-source
multimedia. Afterward, the digital content business technology and know-how of today was cultivated through the response to the Internet and digital broadcasting. In
making the change from paper to digital media and networking, DNP is deepening
the field information technology and contributing to ever richer communications
among people.

DNP Group CSR Report 201120

Special Report: Contributing to the Development of Society through Our Business

The direction of DNP’s technology development,
products and businesses
ec

nt

io
at

rm

fo

Recommendation engine

n
gi

in

nc

a
dv

A

Data filtering

RFID system

Printed circuit boards
Smart cardsginLead frames
DVD

r

te

c
an

v

Ad

t
pa

ni

ec

e

nv

o
dc

n
rti

an

l
no

h

ec

t
ng

y
og

o
hn

gt

Data mining

Network securitygylo

MPEG4 module
Micro Electro
Mechanical Systems

Information Processing Solutions

Emergently
evolving
society

gy

lo

o
hn

Organic EL displays

Biomaterial

Color filters for LCD

Solar cell components/
Fuel cell components

A

ch

te

in

nc

a
dv

i

er

at

gm

s
al

y

og

l
no

Digital photo materials

Photomask
Super Hard Film

Super Barrier Film forelectronic devices

Combination of
PT and IT

Advanced optical Film

Environmentally-conscious
decorative materials

FusionGas-barrier packaging

Printing Technology
Information Technology

Printing Technology

Information Technology

Materials technology:

Information processing technologies:

Composition of new materials, dispersion and mixing techniques. Indicates de-Data input/output, conversion, synthesis, compilation, and transmission technolo-

sign and manufacturing technologies for ink and adhesives, photosensitivegies. Indicates text processing, color separation and editing texts & images,

materials, coating materials, etc.

raster vector conversion and digital-to-analog conversion technologies, as well
as database design, server management and network technologies.

Patterning technology:
Techniques for forming letters, images, patterns, etc. in base material. Indi-

HMI (Human Media Interaction) technologies:

cates non-printing technologies such as press techniques, offset/gravure

Technologies related to the interaction of humans and information, including

printing, lithography, inkjet technology, etc.

expressive technologies such as font design, color matching, tone reproduction, industrial design planning, photo-realistic CG as well as interface design

Converting technology:

technologies such as screen design, natural language processing and cogni-

Processing techniques for converting or combining forms of material. Indicatestive engineering, etc.

processing techniques for film forming, coating, laminating, excipient, transfer,
cutting, polishing, bag manufacturing/forming, and book technologies, etc.

Information security technologies:
Technologies for ensuring that information is accurately transmitted to the correct destination, properly stored, while preventing improper use of information,
including technologies for encrypting, personal data processing & management, copyright management technologies and biometrics, as well as
information technologies related to IC cards.

21

Special Report: Contributing to the Development of Society through Our Business

New Worlds Opened through the Fusion of Technologies
New products born of the fusion of DNP’s technologies have played a valuable rolein the arrival on the market of equipment and services that nowadays are indispensible. One example is the smart phone. These cellular devices that are rapidly
becoming so popular contain DNP’s color filters for LCD displays, touch panel sensors, and softpacks for use in lithium ion batteries. DNP has also developed arecommendation system for providing recommendations in line with users tastes
and preferences, as well as an agent application called “Machireco” for its use, andoffers a data transmission service for smartphones.
We will continue to pursue the possibilities of printing technologies and information technologies so as to usher in the rich lifestyles of tomorrow.

New product creation

New business creation* Energy business* Life science business* Environmental business* Other new business

Advancing and Fusing Our Core Technologies
PT and IT are DNP’s fundamental, core technologies for bringing about new products and services, and we focus on pursuit of these technologies as our mostimportant technical theme.
These efforts are directed toward advancement and fusion. We seek to advancethe core technologies of PT, which are materials, patterning, and converting, as wellas those of IT, which are information processing, HMI, and information security, andby combining these in a coordinated way come up with innovative products and services that society has not seen before. In recent years DNP’s fundamentally
technological efforts have spanned every field, from energy, with items such ascomponent materials for solar cells, through life sciences, with technologies suchas capillary patterning and cell sheet engineering.

DNP Group CSR Report 201122

Special Report: Contributing to the Development of Society through Our Business

DNP Products

Driving the Evolution of Displays through Printing Technology
LCD color filters
Basic composition of an LCD

Color filter- determines the RGB three-color image
Backlight

Optical film

Polarizing surface film stops external light reflection

Backlight film achieves lower power consumption and more detailed display

Color filters, a necessary component for colorization
Liquid crystal displays (LCDs) are used in a variety ofing position in this product field. Later, in 2006, in addition

equipment, such as PC monitors, notebook PCs, TVs,

to CF manufacturing using photolithography, we also

and digital cameras. The component of the LCD thatsucceeded in mass-producing CFs for televisions using

makes the image appear in color is the color filter (CF). A

the world’s first inkjet (IJ) process. The inkjet process uti-

color filter has colorization layers consisting of pigmented

lizes new technologies, such as the high-speed, evenink in the three primary colors –red, green, and blue (RGB)–

application of ink to millions of image pixels. We currently

arrayed in particular patterns on glass substrates.

supply a variety of high quality, leading-edge color filters

Colored images can be seen when light from the backlightused in products from big screen TVs to fine, high lumi-

passes through the color filter.

nance smartphone screens.

DNP began manufacturing color filters in 1989 by applying the photolithography technologies that make finepatterning possible, as well as the materials technologies
that go into pigmented ink. We have now taken the lead-

23

Special Report: Contributing to the Development of Society through Our Businessin Smartphones

LCD panel

Battery

Touch panel

Achieving Light, Thin, High-Function Touch Panels
Touch panel sensors

Components supporting multi-touch function

New film sensors for the CAP system

In recent years touch panels have come to be found inSome CAP touch panel sensors are made by layering two

car navigation systems, portable terminals, digital camer-

sheets of film or patterned with clear conductive mem-as, and are rapidly spreading to other applications. Of

brane in a bi-directional X-Y configuration. Nonetheless,these, smartphones and PCs use CAP (capacitive) touchin order to maintain the sensitivity of the sensors and visi-

panels. The capacitive system uses sensors to detect thebility, the two layers must be aligned with a high degree

touch of fingertips, and the display can be expanded orof precision. DNP resolved this issue by developing CT

shrunk by opening or closing two fingers for superiorFilm, which can be formed simultaneously while aligning

multi-touch direct operability.

the clear conductive membrane patterns on the front andWhile DNP was already involved in mass producing

back of the substrate. By supplying a new component

color sensors, in 2009 we launched newly developed

made up of clear conductive membrane on just a single

clear conductive membrane film sensors, which contrib-

layer of substrate, we make possible the manufacture ofute to expanding the touch panel market.

thin, light, high quality touch panels.

DNP Group CSR Report 201124

Special Report: Contributing to the Development of Society through Our Business

The Leader in Softpacks for Lithium Ion Rechargeable Battery
Softpacks for lithium ion rechargeable battery
Electrodes

Sof tpackAchieving light, thin, portable batteries

Global top share in support technologies

Lithium ion rechargeable batteries are found everywhere

DNP began research into plastic film battery packs inin daily life, from notebook PCs to mobile phones, be-1993. This was around the time when lithium ion recharge-

cause they store and output significant amounts of power.

able batteries had just hit the market. Later, in 1999 we

Up until recently they were mainly packaged in metal. In

developed our multi-layer plastic film softpack. By now

response, DNP developed a softpack that uses multiple

we have captured a 65% share of that market, and arelayers of film. Softpacks are flexible and easily formed, as

the leader in the lithium ion rechargeable battery market.

well as being safe because they are manufactured in a

The converting technologies cultivated at DNP made thisclean environment, and contain no contaminants. More-rapid advance possible, and we are also using them inover, they are tough, strong, and in comparison to metal

solar cell components. DNP

easy to shape. They can also be made thin, and their use

is taking on the field of next

has spread from smartphones to thin mobile equipment.

generation energy, and is

They have recently also started being used in electric

contributing to its wide-cars, which require a high degree of safety, and their use

spread application.

is expected to spread to a number of fields.

25Special Report: Contributing to the Development of Society through Our Business“Midtown” Information Provision Service “Machireco”
Information provision service

R

The Machireco mascot. His antennae change depending on
the recommendation, such as “Eat,” “Shop,” “Play,” or “Watch.”

Smartphone concierge service
Machireco is a information provision service that takes

Creating information technologies for developing
in-demand services

location and time data from a smartphone and, after ana-

The technology that supports Machireco is the recommen-

lyzing it according to pre-set preferences and viewing

dation system for mobile communications developed byhistory, makes predictions about behavior that the smart-

DNP. DNP predicted that high-function mobile communi-

phone user is likely to select in the location he is in, suchcations terminals would soon become widespread as partas “Eat,” “Shop,” “Play,” or “Watch.” Acting as a virtualof the information society infrastructure. Therefore, we

concierge, Machireco sends data to the smartphone or

set about developing interface settings, language pro-other terminal about shops or things to do that match up

cessing, data base settings, server controls, and otherto the user’s situation and tastes. We first developed thisinformation technologies for use in a mobile recommenda-

individualized information provision system in 2007, andtion system prototype. In a society in which smartphones

began pre-marketing trials in 2008. It is currently under

are widely used it is important to be able to select situa-

development as a beta version for iPhone or Android

tion-appropriate information from among the enormous

smartphones.

a m o u n t o f i n f o r m a t i o n a v a i l a b l e , b e c a u s e t h e s m a r tphone user has increasing opportunities to gather dataon the spot. DNP is developing the information technologies necessary to developing new, in-demand services.
DNP Group CSR Report 201126

Compliance with the Law and Social Ethics

Deliberate, Sustained Efforts for
Adherence to and ThoroughUnderstanding of Corporate Ethics
We believe that the continuous demonstration of sincere behavior by each of our employees is the most important factor in earning the trust of society. We are enhancing the structures and corporate culture thatencourage observance of corporate ethics, and are training human resources to maintain a strong ethicalperspective. We consider this vital to the sustained growth of the DNP Group.

Full picture of the corporate ethics programs that drive the PDCA cycle

Making sure the company andthe employees share acommon purpose

ethics activities through tasks such as establishing anannual plan, guiding and following up on various activities for ensuring employee observance and adherence tocorporate ethics, and revising policies and action plans.

Working for employee autonomy
The foundation of our position and actions

One important aspect of organized effort is for each em-

Corporate ethics is not something that is practiced tem-ployee to be aware of the importance of corporate ethics,

porarily, but rather must be firmly rooted in a company’s

and to work for common recognition of that importancebusiness through deliberate, sustained activities. The

throughout the Group. Our efforts are oriented toward the

DNP Group weaves ethical practices into our daily man-evaluation categories in the Management by Objective

agement work, repeatedly conducting the PDCA cycle

System, which establishes employees’ own objectives

over the course of the year for continuous improvements.

a n d e v a l u a t e s t h e r e s u l t s . T h e s e a r e r e f l e c t ed i n t h e

The Corporate Ethics Committee is composed of

employee’s Personal Results Assessments. Also, we

the directors and corporate officers in charge at each

cultivate human resources with a stronger sense of cor-

Headquarters division, and is the Group’s umbrella inter-

porate ethics through training, and by encouraging each

nal control organization for supporting our complianceto think for themselves in the course of their behavior we

structure. The Committee meets on a monthly basis, andbelieve that we gain better observation and adherence tofunctions as the foundation of our sustained corporate

corporate ethics.

Annual Corporate Ethics Activities Schedule

Executive Committee
Board of Statutory Auditors

The arrows indicate the flow of activity reporting

Corporate Ethics
Committee

Training
Programs

Riskmanagement

Consultation
and Reporting
SystemHead office (Group supervision)Monthly

Each operating unit and Group company

Biannually

Self-directed ethics training

Intensive

Annual intensive

Training According to Level/Training
according to individual categories

Executed when needed

Self-Inspection of Compliance withLaws and Ruled

Annual intensive

Compliance Assessment System

Biannual intensive

Specialist Committees

Biannual intensive

Open Door Room (internal reporting)Handled as needed

Intensive

Supplier Hotline

Handled as needed

Intensive

Intensive

Intensive

Intensive

Intensive

Jan.

27

Checking

Feb.

Mar.

Intensive

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Compliance with the Law and Social Ethics

F

O

C

U

Self-directed Ethics TrainingS

We want to broaden the scope of training to cultivate
trustworthy people
Most of the customers of the Ichigaya Publication Printing
Operations are publishing houses, so on their behalf we aremaking products that go directly to consumers. That in itself
means that we must develop a strong relationship of trustwith our customers.
Self-directed ethics training, which began in 2003, isconducted in conjunction with the Head Office Corporate
Ethics Committee Secretariat, but my thinking on this subject basically covers three themes. First, “creating apleasant work environment.” Rather than individuals dealing with worries or problems on their own, we try to create
an environment in which everyone works together to find asolution. Next, “awareness of working at a top company.”
We must constantly remain aware of the importance of thesocial responsibilities incumbent upon a top company.
We conduct a variety of training programs, such as Training Ac-

Third, “trustworthiness,” which nurtures the relationship ofcording to Level, to ensure observance and adherence totrust with customers. Were one to sum up the aim of self-di-

corporate ethics.

rected ethics training, I would say it lies in cultivating

One of these is self-directed ethics training, which was in its

trustworthy human resources. A pleasant work environment

eighth year in fiscal 2010. In this training, which has taken hold with-gives people space to breathe, while cultivating a sense ofin the Group, the top management in each operation explains the

ethics through encouraging awareness of working a top

issues with which they grapple and their solutions to their subordi-

company engenders trustworthiness. Currently this training

nates in their own words, with the attitude that each operation

tends to focus on

should look after itself. The content of the training is also left to the

management level

top management, and each operation comes up with its own tech-employees, so I amniques, which must be implemented once a year. Initially somehoping that its scope

members of top management found it difficult to explain things inwill be expanded.

their own words, but by speaking to subordinates directly they wereable to improve understanding as well as morale.
Also, in recent years our overseas affiliates also have been developing self-directed ethics training according to their local
circumstances, with the goal of instilling an approach to corporate
ethics on a par with that in Japan.

Fujio Yamazaki
Senior Corporate Officer
Ichigaya Publication Printing
Operations

Naoki Wakabayashi
General Manager
Sales Division
Ichigaya Publication Printing Operations, DNP

I feel that the respect for the law and social

One Akiyama
President
Integrex Inc.

VOICE

I would assert that for each person to look at

ethics of DNP Group employees goes beyond business, and perme-themselves and work voluntarily and self-directedly is the most im-

ates our personal lives and consciousness.

portant factor in creating adherence to corporate ethics. I give theIn particular, we always explain our stance toward legal compli-

DNP Group high marks in the area of corporate ethics for its deliber-

ance to our customers, even to the point where some say we are

ate and continuous efforts to encourage each employee to take thetoo strict. Nonetheless, we take this as a compliment, and in fact ininitiative, and for creating an environment in which employees canmany cases it is because we are so strict that we are chosen for the

think and act for themselves.

job.

The occurrence of the Tohoku-Pacific Ocean Earthquake repre-

The self-directed ethics training conducted by our Operations

sents an important chance for corporations to increase their role as

General Managers imparts consciousness of the importance of le-members of society. From the standpoint of “Ichien-yugo” (as es-

gal and ethical compliance on a daily basis. As DNP Group

poused by Sontoku Ninomiya) “everything works interconnectedly, so

employees our behavior is always conducted in this awareness.

results are obtained by working as one.” Therefore, unity in action isimportant not only to legal and social ethics, but also to risk management. Companies can expect even better results from their efforts
when they work in harmony with people and with society.
DNP Group CSR Report 201128

Ensuring Information Security

Protection of Information Assets Gets Top Priority
in Our Provision of Safe and Secure Services
We view our duty to guard information assets, such as the personal information and the information entrusted
to us by customers in conducting business, as a matter of course. Information security and personal information protection are among the most important management issues facing the DNP Group, and we maintainstrict, continuous controls through strong management systems and employee training programs.

DNP Group Internet Services

Leading the way in
information distribution,
so as to connect society,businesses, and people

variety of work in doing business with the DNP Group’s
more than 30,000 client companies, we provide total support for our clients’ Internet business. We store important
information assets, such as personal information, bym e a n s o f o u r t h o r o u g h l y s e c u r e i n f o r m a t i o n se c u r i ty
infrastructure, and offer solutions that make use of it.

The responsibilities of companies connected to a hugevolume of information

Offering the security that is the basis of trust

The DNP Group maintains a thorough system for protectionof our client companies, including not only personal infor-of information assets and strives to maintain strict, continu-

mation such as addresses, names, and e-mail addresses,

ous controls on them. Our know-how and technologies in

but also corporate secrets associated with new productthis field are put to use in our DNP security solutions.

information and survey tallies. We do so via a total se-

We give top priority to protecting the information assets

DNP Digitalcom is constantly introducing new technolo-

curity system encompassing every aspect of security,

gies in providing ICT solutions, whether it’s mobile phoneincluding human, organizational, physical, and technicalcampaigns, Web promotions, Internet commerce, or datameasures. By ensuring that each of these measures func-*1

center management. By combining these with the BPO
services, in which we have developed expertise in a broad*2

tions correctly, and by exercising strict management andcontrols, we ensure a high level of security.

*1 ICT (Information and Communications Technology): Adding “Communications” to “IT” emphasizes the technologies used to transmit information properly to others, rather than the computer equipment or technologies.
*2 BPO (Business Process Outsourcing): The DNP Group handles the outsourcing of the work processes of one company to other companies, offering a variety of business agency services.

Masahiro Inooka
Manager
Quality Assurance Division
DNP Digitalcom

DNP Digitalcom acquired the Privacy MarkAssistant Manager
Service Planning Division
KDDI Corporation

KDDI is in the business of offering safe, stablevery early, in 2000, and we have continued to strive for personaltelecommunications services, which demand structures and skills

information protection. As the social environment evolves, the po-that maintain a very high level of information asset protection andtential threats increase and security becomes more complex, anddata control.

we are faced with difficult issues such as how to build security

The DNP Group continues to meet our demands by implement-

measures while also improving convenience. Nonetheless, manying measures for strict security at the structural, equipment, andof our customers encourage us by saying “If you ensure the current

systems level, and we view them as a trusted partner in the provi-high level of security we will feel secure.” This makes us evension of our company’s services.

more confident that we have achieved a level of security that getshigh marks from the public.
We will continue to build safety measures that correspond tochanges in the environment, so as to provide safety and security to
our corporate and individual customers.

29

Kimio Ogura
VOICE

KDDI conducts regular security audits, and we are satisfied withthe measures that are currently being taken. We hope that evenmore thorough security measures will be maintained and sustained
as ICT technologies continue to develop.

Ensuring Information Security

F

O

C

U

Offering safe and stable services forwebsite constructionS

One of the services provided by DNP Digitalcom that is familiar

The creation of websites that allow consumers to shop withto consumers can be seen at Internet shopping sites. DNP Digi-

confidence requires more than just the visible aspects, such as

talcom offers a full spectrum of the work involved in direct

designing webpages that introduce products.

contact between our corporate clients and consumers, fromSuch websites must be supported by a variety of systems

website construction and operation through business center andthat allow a stable and rapid response. The building of a solid

call center agency outsourcing, the handling of orders, data en-system makes it possible for both the consumer, who is actuallytry, processing, and classification, as well as product shipping

using the website, and the corporate client, who manages it, toand responding to queries. At the same time, every stage of theenjoy a convenient site environment.

data handling process, including the collection of information,
its processing, tabulation, and recording, requires that total security and a high level of information management be ensured.

Consumers

Access/User verification

Order
confirmation

Registration

Payment
complete

Delivery arrangementscomplete

A broad spectrumof equipment
Full operations
verification not only forPCs, but also formobile device
functions.

Memberregistration

Product
viewing

Shopping
cart

Select payment
Deliverymethodinstructions

Safe and secure
operatingenvironment
Operating a high security
environment at data
centers that multiplex ahuge volume of data

Solutions areas offered by DNP Digitalcom

Database

SSL encryption
All information is
encrypted so it cannot
be viewed by third
parties.

Business centercall center

Site
management

Membercontrol

Product
controlOrdermanagement

E-mailtransmission
control

Accessanalysis

Fast and stable performanceThis is systems design for handling large-scale
access without errors or time lags in connectingwith other companies’ systems.

Client company
information asset
controllink

Data received from thesales websites which areconnected to the trunk
systems of clientcompanies is accumulated
as sales know-how.

Credit card companies

Payment
agencyFinancial institutions

Transmission instructions

Product
warehouse

Trunk system

Convenience store companiesHome
deliverycompanies

Product delivery

Client company

DNP Group CSR Report 201130

Promoting Social Responsibility through the
Supply Chain

For Achieving Continuous Growth with
Our Partners
We believe we can the trust of society by responding to society’s expectations through sincere behavior,
starting with social responsibilities such as legal compliance and environmental conservation. We takethis approach not only in our own activities, but across the entire value chain, including with our suppliers.

Fulfilling CSR across the entire supply chain

We respond to the issues andquestions of our partners

require more detailed support, in addition to the ones we
had already been holding for our large suppliers.
For the most part these meetings provide an explanation of CSR, as well as reporting on the activities of the
DNP Group and the thinking behind our CSR Procure-

The DNP Group established the DNP Group CSR Pro-

ment Criteria, and participants have commented that “Itcurement Criteria in March 2006, and has been holding

was easy to understand because everything, from theexplanatory meetings for suppliers throughout Japan. The

basics to actual examples, was explained,” and “We will

Procurement Criteria were amended in March 2011, andrefer to this in the actual efforts to made from now on.”we continue to review them with respect to social changes,

We plan to continue to conduct these meetings regularly,

with the goal of greater acceptance of CSR procurement.

using them as an opportunity to spur CSR activities on

Superior goods and services are pointless if theirproduction or materials procurement processes create

the part of our suppliers, and referring to opinions voiced
in surveys conducted after the meetings.

problems by failing to meet social standards. We areconstantly working with suppliers to achieve high quality

For continuous, active improvements

efforts corresponding to the demands of society so as to

The DNP Group has since 2006 conducted DNP Groupattain a high standard of value creation in tandem with

CSR Procurement Criteria Compliance Surveys of ourcompliance across the entire supply chain.

suppliers. We did so again in February 2011, in the form of
a questionnaire. One month later we provided feedback in

31

TAIWA with all of our suppliers

the form an “Evaluation Sheet,” consisting of analysis of

The first thing that is necessary to driving CSR procure-the progress made in each category. Based upon the re-ment is to get all of our suppliers to understand DNP’s CSR

sults, we conducted on-site examinations and interviews

efforts. In January 2011 we began holding explanatory

to encourage improvements in support of promoting CSR

meetings for our medium and small-scale suppliers, who

activities on the part of suppliers.

CSR explanatory meetings for small to medium suppliers

Evaluation Sheet used as feedback for suppliers
Created exclusively by DNP based upon the DNP Group CSR Procurement Criteria

Promoting Social Responsibility through the Supply Chain

F

O

C

U

Expanding the CSR activity chain (IPS Operations)S
1

In recent years people have begun to question how
CSR must be practiced across the entire supply
chain. With this development as a backdrop, the
DNP Group expanded CSR procurement to include
not only suppliers of materials and equipment, butalso work contractors. We have moved forwardwith activities to deepen understanding of the CSR
Procurement Criteria, and to request production
activities in compliance with them.
IPS Operations, which handles smart cards andledgers, has been the leader at DNP in holding
briefings for work contractors 1 . First, we conducted thorough training for employees directly intouch with the contractor, such as the Ordering
Coordinator. Next, the contractor was given information about the main points of our CSR
Procurement Criteria, including basic items suchas fundamental human rights and legal compli-

2ance, as well as efforts in areas such as the work
environment, safety and health, and environmental
conservation. Compliance was then requested of
the contractor.
By cooperating with contractors in moving forward with CSR efforts we can create greater value
and mutually enhance competitiveness.

Visits to contractor companies and on-site inspections
Evaluation sheets have been drawn up based on

3

the CSR Procurement Criteria Compliance Survey
Tables. In conducting the Contractor Quality Patrols, IPS Operations employees visit contractor
worksites and explain the evaluation sheets, aswell as conducting on-site inspections 2 3 concerning issues uncovered and improvement activities.

Hideki Tsukada
General Manager
IPS Operations, DNP

Two things come to mind when I think about

Hiroshi Fukuda

VOICE

President & CEO
Uematsu Co., Ltd.

Uematsu specializes in printing and process-when we started developing CSR Procurement at contractors. First

ing. We are coming up on our 50th year in business, and during ourof all, are we ourselves handling CSR properly? This meant that

history the DNP Group has been our top client. We are aware thatfirst we had to engage the Ordering Coordinator in preliminary CSR

as a joint worksite our responsibility is not only to deliver good qual-

training. Next, are there big differences in enthusiasm among con-ity merchandise, but also to support our part of the DNP supply

tractors concerning their thinking and efforts for CSR? This waschain. This makes us work even harder to manufacture and supply

something we handled straight on from the perspective of what

top quality products. We had already been engaged in our own CSR

could be accomplished by each. The most important aspect ofefforts, such as obtaining information security certification, but by

these activities is continuity. Therefore, we made CSR activities

executing our programs in line with the CSR Procurement Criteria

something that should be a part of everyday work, rather than a

we have enhanced them. The advice that DNP has given us con-separate form of work. Through TAIWA between ourselves and thecerning CSR encourages us to supply even more valuable products

contractors, who were making forward-looking efforts, we were

to society.

able to increase attention to CSR. I believe this is the starting point
for fulfilling our social responsibilities throughout the supply chain.

DNP Group CSR Report 201132

Proper Disclosure of Information

Forging Good Relationships with Stakeholders
through TAIWA
The DNP Group’s continuous development relies on building a relationship of trust with all of our stakeholders. We fulfill our social responsibilities by conducting timely and accurate disclosure of all informationthat must be shared, and engaging in meaningful TAIWA with our stakeholders.

DNP Group information management

Information management andcommunications measures
for sharing values

We closely observe social changes, and respond to diversity
We seek to expand opportunities for communicationby providing material and press releases to the masscommunication outlets as well as by enhancing a variety ofcommunications tools, such as the design and operationof our company showroom for corporate clients, andThe DNP Group engages in active TAIWA with a broad

strengthening our IR efforts. We are also making progressa rray of stakeholders so as to analyze and as c e r t a i nwith using new tools to eliminate information disparities

whether our business is understood by society, and howcaused by the availability of an Internet environment.

society views us. As we disclose information properly in

DNP is celebrating 135 years since our founding. We

fulfilling our duty of accountability, we also gather stake-shall properly manage the information assets developed

holder opinion and desires, which is used as feedback as

through our corporate activities and social contribution.

we evolve our corporate culture and seek to improve theNot only do we store our materials with strong cultural

goods and services we offer.

value, when appropriate we present it at our showroom
and in other venues.

Information management flow
Examine commercialization

Feedback
Prepare to announce

Proper management of important unreleased data (leaks, insider trading prevention)

Information use

Disclosure

Condense/Recorded/Stored

Timely disclosure of accurate
information

Summary and analysis of opinions
and responses• Promoting TAIWA with all stakeholders• Extracting items to be improved• Recording results and storing materials

We conduct timely disclosure of accurate
information, and enhance transparency
through communications efforts such as
responding to questions, fulfilling our dutyof accountability.

We focus on post-disclosure TAIWA withstakeholders, and summarize reports ofconsumer perspectives, etc.
The results of a series of efforts arerecorded and stored as DNP property.

Creation of in-house shared recognition• Starting of a project
In developing new products, services ortechnologies, and in moving forwardwith business tie-ins or M&A, the DNP
coordinating unit works with company ororganizational coordinators in examining individual themes, and the projectmaterializes.

• Development and creation of various
tools• Determination of method of disclosure
DNP Press and Public Relations Officeparticipates at the stage at which theoutline of the new development orbusiness tie-in is formulated, and preparesto disclose information about the project tostakeholders.

Shareholders, investors, analysts

DNP Press andPublic Relations Office

DNP coordinating unit

News release

TAIWA

Mass communications media,
news organizations

TAIWA

Sharedrecognition

Shareholder
communications

Local communities

TAIWA

Suppliers

TAIWA

TAIWA

TAIWA

TAIWA

TAIWA
TAIWA

Websiteetc.
Cooperating company
or organization

33

Employees and their families

Clients, consumers

Students, job seekers

Proper Disclosure of Information

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Information management in a new businessS(e-book business)

Against a backdrop of growing interest in e-books, NTT Docomo launched its
e-book store for smartphones, 2Dfacto, which uses DNP’s “honto” e-bookservice, on January 11, 2011. Society is showing gathering interest in oursuite of e-book businesses, and more strict information management is required because some of the projects include tie-ins with other companies orthe establishment of Group company structures.
During the study phase, the coordinating operation that is driving the business and the Press and Public Relations Office worked together for thoroughcontrols to ensure that unreleased information was not leaked outside thecompany. When the announcement was made we actively developed content
for press conferences, news releases, publications, websites and other comJoint press conference held on January 11, 2011 by DNP, NTT Docomo,and 2Dfacto
Announcing the establishment of the 2Dfacto E-bookstore

munications tools, so as to notify and communicate with all stakeholders,
including news organizations and investors.
Also, we used digital signage and the company intranet to provide complete
information within the company, strengthening ties within the DNP Group.

News releases

Getting information to employees

As the commercialization of e-

The e-book business is discussed inbook services takes form, thethe employee pamphlet, “Discoverprogress is described in news

DNP.” This is intended to promote un-releases.

derstanding of new businesses by
employees.

July 8, 2010

DNP CHI Group High-level Japanese e-bookstore opening this autumn

August 4, 2010

NTT Docomo DNP Tie-in for e-book publishing business

December 7, 2010

DNP NTT Docomo CHI Group Agreement to establish a hybrid bookstore asa joint enterprise

January 11, 2011

Beginning of e-book service through 2Dfacto

May 17, 2011

Yama-Kei Publishers, DNP Creation of digital magazine with illustrations andsound in parallel with paper version

Yoshinori Kato
Deputy General Manager
Advanced Media Research Center, DNP

DNP is developing e-book business so as to

VOICE

Takeshi Hosaka
TSE Compliance Learning Center(TSE COMLEC)DNP has held two insider trading pre-provide consumers with new experiences and convenience, and tovention seminar series conducted by TSE employees for DNP

create a circulating environment that produces high-quality con-directors and managers, as well the top management of Group

tent. Building this environment required tie-ins with leading

companies and other employees who have many opportunities forcompanies with special characteristics in a variety of fields. The es-

exposure to internal information that could affect stock prices, be-tablishment of 2Dfacto, a joint venture between NTT Docomo andcause insider trading can have a huge impact on a company. Also,

Maruzen CHI Holdings, is a real example of a cooperative businessas the managing directors in charge pointed out in Commercial Law

effort that produces strength. Throughout the process of establish-

Center Journal No. 1928 (2011.4.5), information management anding this new framework it was necessary to keep stakeholders

insider trading are two sides of the same coin, so a variety of in-accurately informed about the intentions of each company. We con-tense efforts must be carried out, such as education for thoroughducted uncompromising TAIWA consisting of news releases andmanagement not only of one’s own company’s information, but also

even word of mouth, and established understanding about the cor-that of other companies (clients). In particular, when the shares ofporate cultures and approaches to business of each company thata company are listed, the majority of that company’s trading part-went beyond publicity. The e-book market has only just begun to beners will also be listed companies, so awareness training to prevent

established. We will continue to put our hearts into proper informa-

insider training is both important and meaningful, and we at thetion provision and offer new experiences to consumers.

TSE are taking a proactive approach to assisting in such efforts.
DNP Group CSR Report 201134

Realization of a ‘Universal Society’

Responding to the Diverse Needs ofConsumers for Safe, Comfortable Living
The need for universal design (UD), which enables use by people in a variety of environments, is increasing
as society embraces diversity. The DNP Group is using UD to make the products and services we offer easy touse for as many people as possible, with the goal of realizing a “Universal Society” that embraces diversity.

Universal design in the information society

Products and services
incorporating UD, to provide
needed information to
everyoneThe upgrading and improvement of products and services from a consumer perspective is essential to realizing
a universal society that is safe and convenient for all.
To that end, DNP has established universal design (UD)
as a fundamental principle, to be shared throughout ourGroup. For more details, please refer to the DNP Universal Design Website: http://www.dnp.co.jp/ud/.

Connecting with many people, and providing needed
information
The DNP Group offers a broad variety of products andservices, and UD is incorporated in the development and

ActiVision TM
In addition to enable searches and perusal by touching the screen, this also enables
storage of needed information, coupons, etc., by holding a mobile phone over thereader/writer, as well as coupon output. We offer a total service package that includes
display coupon creation, transmission, and placement location space design.

design executed by all of our operations. In May 2010, we
began offering next-generation digital signage that enables touch operation while seated in a wheelchair. ThisDNP original product, called “ActiVision TM ,” is another ofour products and services offered to meet the needs ofthe information society.
In the area of office UD, we joined with Konica Minolta
Business Technologies in developing the world’s first“Universal Design High-Security MFP with Body Area
Network Smart Card.” This MFP, which handles multiple
functions such as copying, FAX, scanning, etc., in asingle unit, is equipped with “body area network identification,” which requires nothing more than the human touch
to complete identity verification to allow operation. In addition to enhanced convenience, this product is designed
so that anyone can use it.

35

Universal Design High-Security MFP with Body Area Network Smart Card
When the user has a transmitter (body area network unit) smart card in his or her possession, upon stepping upon the receiver-equipped mat or touching the touch panel
the user’s ID is verified.
This system was selected as a finalist for the “2010 SESAMES Awards” presented
for products and services recognized as groundbreaking at “CARTES & Identification,” the world’s largest smart card technology exhibition.

Realization of a ‘Universal Society’

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Universal design in e-books

S

E-books can be read on the displays of digital devices. 2010 can

use-formats that they demand. We are approaching e-books,

properly be referred to as the first year of the e-book era. The

with their qualities of accessibility, usability, and universal de-

DNP Group has continued to contribute to the creation of a richsign, in a variety of ways.

society by providing the information people need in the easy-toThis is UD

This is UD

Accessibility

Usability

E-book services provide great conve-

E-book qualities such as “freedom of display format” and “porta-

nience, because they make it easy tobility” make them easy to handle and use according to the user’s

get a book to read right away. The phi-

circumstances. Such qualities are in line with the UD philosophy.

losophy of universal design calls for

The DNP Group is engaged in creating content for e-books withaccessibility by a diversity of users. DNP started Japan’s larg-

these benefits of UD in mind.

est e-book service, “honto,” in 2010. We have developed thisservice further to include portable telecommunications devices
through a business tie-in with NTT Docomo. The service can be

Easy to expand or contract
text sizeused with a variety of devices.

The user can adjust the text size
easily as needed.

E-bookstore
selling e-books

Online store

Ver tical tex t

Choice of preferreddisplay style

Real world store

Text can be arrayed horizontallyor vertically, and can be changed
according to user tastes.

For diverse and accessible selling platforms

Horizontal tex t“honto” is a “hybrid bookstore” offering both e-books and boundbooks. The reader can choose a format based upon his or her
feelings or environment. DNP will continue to strengthen ties

Can read even while walking

with real-world bookstores such as Maruzen, Junkudo, and Bunkyodo. By fusing e-book sales, online bookstores, and real-world

If the terminal memory is sufficient one’s entire library can bemade portable.

bookstores, we can offer society a new reading environment inwhich consumers can be sure to find the books they are looking
for and can enjoy them in the format they want.

Motohiro Oka
General Manager
Advanced Media Research Center, DNP

What form would a “bookstore aiming to pro-

VOICE

Nobuhito Maruyama
Operating Officer
Impress Holdings Corp.

E-book publishing is expanding the opportuni-

vide convenience to consumers” take? We believe the answer is aties for all readers to read, touch, and enjoy books in and of“hybrid bookstore.” Our hybrid bookstore, “honto,” offers services

themselves. E-book functions increase accessibility to books, withmatching every scenario, such as “search and select” and “readolder readers able to expand text, while younger readers and theand add to collection,” according to the form of book the consumer

physically-challenged can use auxiliary audio functions. The Im-

wants and matching his or her desires and environment. “honto”

press Group’s publishing arm, Yama-kei Publishers, have joined

takes an active approach toward incorporating UD, and we believewith DNP to develop and publish a digital edition of the woman’s

it will contribute to realizing a “universal society.”magazine “HUTTE” simultaneously with the print edition, with additional content applications that are the first of their kind in Japan.
Much effort was put into creating rich content, reflecting printing
company concepts, and we are hopeful for even greater usability
that will deepen communications with readers.
DNP Group CSR Report 201136

Ensuring the Safety and Quality of Our Products
and Services

Innovative Technologies for Valuable Hoods
and Services
At the DNP Group we base our quality and safety efforts on imagining the location where a product or service
will be used, and considering from a consumer’s perspective how it can be used safely and what is requiredof it. We then make improvements accordingly.
Our entire Group is united in working to satisfy consumers with our products and services and solve the issues
faced by society.

Basic technologies in support of creating comfortable living spaces

Challenging new fields toresolve social issues andsupport safe and secure living

vironment, health, and durability. DNP is sufficiently awareof both the issues confronted by society and the needsof consumers, and at every product stage, from design
through manufacture and sale, we take a thorough approach toward compliance with all regulations, the healthof our employees, and most of all, product safety. All ofour products are designed to be environmentally-friendly,

Realizing comfortable living spaces through technologies
with origins in printing

with the majority also developed as healthy products free

DNP uses the variety of technologies developed throughsuch as formaldehyde, toluene, xylene, or any other of theprinting to open up new fields of business for healthier

13 substances for which the Ministry of Health, Labor andand more comfortable living spaces.

Welfare has prescribed concentration limits. We also seek

We offer a wide variety of solutions for every kind ofliving space, from home interior and exterior furnishings,

of substances known to cause “sick house” syndrome,

to use recycled materials or wood from tree plantations so
as to contribute to forest conservation.

including entryway doors, wallpaper, flooring, interior
doors, and furniture, as well living space design for offices, hospitals and hotels, not to mention automobile andOur responsibility to maintain true quality as we broaden
our product lines

train car interiors.

The ability to analyze products according to international

In addition to offering materials and parts, we also

standards is necessary to ensuring product safety andprovide goods and services that are closely linked to thereliability, and to presenting details about that safety andlives of end-users. We look at the needs of a broad range

reliability in a way that is easy to understand. In 2002,of users, in fields such as construction and distribution,

we established the Living-Space Analytical Evaluationand offer real, proactive proposals for creating comfort-

Center as our facility dedicated to measuring VOCs andable living spaces.

other substances emitted by lifestyle materials. Our
highly reliable measuring system, which is based on

Offering greater safety for health and the environment

international standards, is used not only to check ourLifestyle materials must do more than provide fashionable

own company products, but also in the provision of highdressing up of living spaces; they must also perform aquality measuring services for non-DNP products suchvariety of safety and comfort functions concerning the en-

as auto interior materials, books, and digital devices.

The innovative power ofEB coating technology

EB (electron beam) coating technology is a surface
processing technique forirradiating substances toimprove performance andadd functionality.

37

EB (electron beam)

Before radiation
After radiation

DNP lead the industry in developing EB (electron beam) coating
technology in the 1980’s. Afterwards, as the demand for environmental products increased and a market base was formed, it came to be
used in a variety of products, and is now a core technology of our lifestyle materials operations. Compared with the technologies thatpreceded it, EB improves every product aspect, including resistanceto abrasion, soil, and weathering. It is used in making flooring, cases
and furniture, and kitchen materials, and has also come to be used in
making entryway doors and exterior materials. By continuing to findways to use EB coating technology to improve functionality we anticipate the development of even more applications.

Ensuring the Safety and Quality of Our Products and Services

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New wallpaper - EB clothS

EB cloth is a new form of wallpaper made of different components than conventional vinyl cloth, and was createdthrough the application of DNP’s EB coating technology.
EB coating technology is used to make scratch and soilresistant flooring and interior/exterior lifestyle materials
that are easy to repair and get high marks in the construction industry and market. These materials and their
manufacturing processes contribute to reduced CO2 emissions and energy conservation. There are great
expectations for this “sustainable” wallpaper, which isfriendly both to human health and the environment.

Product manufacturing based on safety
Design stage

Functions for safe and comfortable living spaces

Consideration of the environment and health

Surprisingly lightweight

Our product design takes health and the environment into
consideration at the usage stage as well as the manufacturing
stage.

We have made the product lighter by reducing the amount of component material. This makes transportation costs lower, and also
makes it easier to handle in every scenario.

Easy to use, no emissions

The material is resistant to scratching and soiling during installation, and it is easier to lift because it is lightweight. This vastly
improves onsite workability.

Superior workability
Manufacturingstage• EB Cloth is free of substances known to cause “sick house”
syndrome, such as formaldehyde, toluene, xylene, and allof the other 13 substances for which the Ministry of Health,
Labor and Welfare has prescribed concentration limits.
• Use of our new compounding technologies results in reduced use of fossil fuels because we use smaller amountsof component materials.

Soil resistant

Before wiping• CO 2 emissions in the materials production process havebeen reduced 56% (compared to previous DNP vinyl clothproducts; according to DNP’s own measurements)

Usage stage

Lines drawn with water-based
ink; 24 hours later wiped withsynthetic detergent and water.

Strong during earthquakes

Offering safety and security• Compared to conventional vinyl cloth, virtually no TVOC
residue can be detected. This makes it safer because it
causes no indoor air pollution.
• It has received a fire resistance rating of “certified quasinon-combus tible” (non-combus tible subs tr a t e / noncombustible sheetrock/quasi-non-combustible substrate)

It doesn’t crack easily during earthquakes because it is flexible andnot easily damaged in the corners. This allows it to keep its appearance over the long term.
Corner damage testing• It has cleared the “SV standards” and “JIS standards (JISA6921),” which are the safety standards for wallpaper established by the SV Conference.

Kazuhisa Kobayashi
General Manager, DK Project Team
Lifestyle Materials Operations, DNP

DNP’s Lifestyle Materials Operations produc-

After wiping

The material resists staining,and marks from soy- or waterbased ink wipe right off.

VOICE

Post-testing EB cloth

Scratches not noticeable

Atsushi Kumazawa
ManagerMarketing Division, Sangetsu Co., Ltd.

The main product offered by our company is

es and sells a wide variety of products corresponding to a variety of

wallpaper. The fusion of DNP’s EB coating technologies withliving spaces. Of these, the greatest amount of surface area in a liv-

Sangetsu’s product design know-how has resulted in a new prod-

ing space is that of the walls, which along with the floors are very

uct, a hybrid wallpaper made of new materials called “EB Cloth.”important components of a living space. The EB Cloth sold by

EB Cloth is now sold through a 65-item product lineup.

Sangetsu Co., Ltd. not only takes environmental, health, and safety

Since the February 1 product launch, EB Cloth has become ourinto consideration by dramatically reducing residual TVOCs, but

No. 3-selling wallpaper, and we are continuing with active market-

also meets customer demands for improved durability. Further-ing efforts for it. Homebuilders rate this product highly for its basemore, EB Cloth offers solutions that meet not only the needs of theconformance. Also, there is currently a new concern about asset

end-user, but also those of the entire distribution chain. We willvalue in homes, and this product is significant in that it meets that

continue to seek to deliver products that satisfy consumers.

market demand.

DNP Group CSR Report 201138

Respect for Human Dignity and Diversity

All Employees Practice a Workstyle that
Brings Out the Full Potential of EachThe DNP Group places great importance on the individuality of employees.
We are confident that a workforce composed of a diverse group of individuals can enable the continuous development of our Group through each properly fulfilling his or her role through an individualized workstyle,creating a lively corporate culture.

Proposing workstyles that make each day fulfilling

Realizing fuller lives throughworkstyle innovation

Resour ce Pr o jec t as a Labor-Management ef for t. We

The business environment surrounding Japanese com-reconsidering work organization and flow so as to generate

panies has in recent years seen greater changes thantime resources and make work more efficient.

DNP Group Productive Time Resource ProjectW e a r e d e v e l o p i n g t h e D NP G r o u p P r o d u c t i v e T i m eestablished a three-year plan for the Project beginningin fiscal 2009, so as to realize “workstyle innovation” byever before. In order to build a corporate structure that is
sufficiently flexible and resilient to respond to such severe

Conceptual diagram of the Projectchanges, each DNP Group employee must practice a highRealization of the Vision for the 21st Century

ly independent, productive, and efficient workstyle as they
fulfill their expected role, thereby producing results.
The first step in this effort is an innovative workstyle.
Everyone must consider how to use their equally allotted

Perpetual growth, energetic workplacetime resources effectively so as to maximize the value of

Work-life balance, self-realization

their work. This means starting off by considering previous
workstyles as the starting point, and challenging new kindsof work and creating new value by generating new time re-Achieving work goals during scheduled working hours

sources. This in turn requires that each employee realize an
individualized work-life balance.

Transformation of workstyle (= transformation of work procedures)

Work-life balance gains interest
Achieving a good “work-life balance” means creating a way ofworking corresponding to one’s
life stage, whereby one is motivated to focus on work and tocreate higher value than before,
while at the same time leading afuller life outside of work.
The DNP Group believes thatby each employee conducting asatisfying career and rich personal life their accumulated
experience will provide the foundation for a strong corporate
structure for the Group. Therefore, we engage in a number ofprograms aimed at creating a
lively work environment.

39

DNP Group work-life balance support measures
1

2

3

1

DNP Family Friendly Day are bring your child to work days. This program promotes interest in work among children
as well as better parent-child (family) communication for our employees.

2“Volunteer activities” were added as grounds for life support leave. Employees develop their individuality throughvolunteer activities, and also cultivate social sensitivity.

3

The DNP Group Philharmonic Ensemble, which is composed of DNP Group employees and their family members, is agathering of people who wish to enjoy their leisure hours through music. The DNP Group supports this program byproviding instruments and a place to practice.

Respect for Human Dignity and Diversity

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Workstyle Innovation Project(DNP Electronics Device Operations)S

In addition to individual employees engaging in efforts to re-examine their own workstyle, each of our
Operations is launching projects to optimize productivity and make overall work functions more efficient according to the kind of work and product flow. One such project is the Workstyle Innovation
Project of DNP Electronics Device Operations, which is engaged in the manufacture of electronics
products, including IC and LSI. This project is aimed at streamlining all the work of the Electronics
Devices Group, including Group companies.
We will follow up on the fiscal 2010 efforts by taking them to the next level, seeking to eliminate
waste and improve efficiency, and using the time resources generated to improve work quality and4enhance the specialization of each product.

Sales unit efforts

Technical unit efforts
The biggest issue is that by forming separate product

Employees start by gaining the cooperation of customers
in finding all issues that must be resolved. Issues areteams the technicians with the highest level ofseparated into three categories: Automation, Standardization, andspecialization are assigned to the respective teams, resulting in

24-Hour Customer Response, and work is made more efficient by

individual and team bias concerning use of working hours. Therefore, theconducting review or improvement in response to keywords supplied bygoal is to change the consciousness on the part of the technicians andthe customer, such as “speed,” “flexibility,” “cost performance.”level out the teams by changing their composition, etc. One long-term
effort involves assigning multiple research themes to the technicians,
gradually broadening their range of specialties to achieve versatility.

Issue 1

Issue 1
• Get customer cooperation in automating
the ordering system• Automatic sending of order reports andprogress reports• Increase processing speeds throughchange to “thin client” PCs

Automation• Raise awareness through posters ( 4 )• Regular progress reports at General
Manager meetings and Group meetings

Lack of timeawareness

Issue 2
Issue 2Standardization• Create templates for email inquiry
response• Consolidate business forms used by theunit• Create a shared database within the unit

Team-based
working hour bias

• Regularly organize technology development themes and revise priorities• Improve technician versatility

Issue 3Issue 324-hour customer
response throughglobalization• Work assignment with plants by overhauling workflow

Takao Ikezawa

Atsushi Edakubo

Manufacturing Division
Electronics Device Operations, DNP

Manufacturing Division
DNP Fine Electronics

Individual worktime
bias• Create work process charts and analysis• Send e-mail alarms to staff who are working too many hours

Kunihiro Hosono
VOICE

General Manager
Technology Development Division
Renesas Elecrtronics Co.

When we started

Our daughter

The semiconductor industry

the project for work-

was born in De-

spans a diverse supply chain, dealing with items

style innovation

cember 2010.

such as automobiles, home electronics, and mo-everyone began toWorkstyle inno-

bile phones, so photomask manufacturers such as

always think about

vation allowed

DNP are required to meet strict delivery deadlines.

how to perform

me reduce over-We are grateful to DNP for meeting our tough de-work more efficiently with fewer staff

time and take more days off, so themands with speed and flexibility at all times,

and in less time. Right now, because wematters I had to attend to both before

working weekends and evenings. I also believe

can rely on new staff members andand after my daughter was born went

their ability to do so is a result of improvements inleave things up to them, we have evened

smoothly. I also am able to have dinnerwork efficiency. Our company is grateful for the im-out the work and improved efficiency. I

with the family and spend more time

proved sales quality and specialization that stems

am able to use the time resources thatgetting close to them, which motivatesfrom workstyle innovation efforts, and have great

have been generated to attend semi-

me in my personal and family life as

expectations for our future relationship.

nars, spend time with my wife, and plan

well as at work.

for my personal life and future.
DNP Group CSR Report 201140

Realization of a Safe and Vibrant Workplace

Cultivating Personnel with Greater Workplace
Vitality through TAIWA and Cooperative Efforts
both within and Outside the Company
The DNP Group engages in human resources development for individual employees, which are the source ofour vitality. We believe that the strength generated through a variety of efforts both within and outside thecompany spreads throughout the entire workplace.
We offer a variety of systems, structures, and training programs so that all of our employees can maximize
their roles as self-starting individuals, and experience personal growth and self-realization.

Human resources development emphasizing TAIWA

40,000 Group employees
experiencing growth throughTAIWA

is nurtured and permeates employee consciousness.
Also, we create a learning environment for relaying thesebasic themes equally to all DNP Group employees bymaking the educational materials created by Training Department available through network learning.

Emphasizing group work and discussion to deepen TAIWA
The Training Department, which handles DNP’s human

DNP Group training actively incorporates group work, be-resources development, is an independent unit, because

cause the process of active discussion is very important

it is our desire that growth through career design for ourto the team’s efforts to resolve issues. Groups are formed

approximately 40,000 DNP Group employees be care-according to a variety of criteria depending upon the

fully managed. The Training Department works together

goals, but the plans and proposals raised by the teams

with our Operations in planning training programs thatwithin the training are connected with examples of actual

match up with our management goals and needs, focus-

work improvement and new system introduction, anding on the company vision and Code of Conduct. Also,

actively discussed. Training locations are chosen so as

the Training Department and Operations handle different

to create networking connections with units or personnelroles according to the programs that are developed, so

in lines of work normally not encountered by the trainees,that the training can be conducted more efficiently.

so as to create opportunities to broaden horizons. This
is intended to cultivate more personnel who can put the

Nurturing the DNP spirit through TAIWA

In addition, in recent years we have also created a

ics such as the DNP Group’s 21st Century Vision (Management

training organization that allows for participation by em-

Concept/Business Vision/Guiding Principles), Code ofployees at worksites throughout Japan by expanding the

Conduct, CSR, and diversity. The top managers at eachreach of our teleconferencing system. 15 worksites werebusiness division serve as the trainers, and by connecting

connected this way in 2010, proving a means for broader

actual work with philosophies and policies the DNP spirit

participation in discussions.

1

41

DNP Group’s collective strength to use.

The main thrust of the training is through seminars on top-

2

3

1

Mentoring: Conducted as series of activities over a 6-month period in support of female sales staff, culminating with a final meeting at which proposals are made concerning future efforts in their own department.

2

Sign Language Seminars: These were started in Osaka as well in 2010 due to demand from our Kansai employees.

3

Teleconferencing: We began live broadcasts to regional worksites of the Ginza gallery talks using our teleconferencing system, so as to create opportunities to nurture the TAIWA culture.

Realization of a Safe and Vibrant Workplace

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DNP Emergent Evolution Forest:
The Hakone Training Center

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4

The DNP Group maintains study centers for specialized technical training. Two such centers, the Ichigaya Training Hall and the
Hakone Training Center, are places where courses can be taken
in environments separated from the workplace.
We call the Hakone Training Center the “Emergent Evolution
Forest.” It is an environment in which training participants canhave deep discussions, where thoughts bounce off of each otherto result in the creation of new value. The DNP Group offers anumber of locations for TAIWA with a variety of stakeholders, including in-house study camps (photos

4and 5 ), cross-industry

exchange study, medium to long-term target-setting camps foreach unit, planning and examination study camps conducted jointly with client companies, and other such training that includes not
only our employees but also people from outside the company.

Use of the Hakone Training Center (January-December 2010)
Use
5

Number of times

Participants

Training
Cross-industry exchange training
Operations/Unit CampCamp with Client Companies

20
3
83
2

600
90
2,700
30

Total usage

108

3,420

The Hakone Training Center (Photo 6 ), which was completed inJune 2009, is composed of a variety of spaces conducive to TAIWA,
such as the expansive Training Zone, the Collaboration Zone, which
can be partitioned, and a row of lounges adjacent to hot spring footbaths (Photo 7 ).

International Green Key certification
Hakone Training Center Building 2, which is aimed at coexistencewith nature and is surrounded by untended woods and fields, was
67

the first corporate training facility to be granted certification by
Green Key, an international eco-label for tourism facilities. We
provide information about energy and water use,
waste reduction, and other environmental efforts,
which improves the understanding about environmental conservation among training participants.
Green Key Website: http://www.feejapan.org/greenkey_en/

Satoru Inoue
General Manager
Technology Development Center, DNP

For over two years there has been a meeting of

Daisuke Ozaki

VOICE

Human Resources Department
Osaka Gas Co., Ltd.

We have been participating in exchange stud-

three parties, the Technology Division, DNK (the DNP Group’s equip-

ies for middle managers with DNP since 2005. Managers of the samement manufacturer), and the Technology Development Center every

generation have conversations about business issues and manage-

three months at the Emergent Evolution Forest.

ment, engaging in lively debate from differing perspectives that ourAt these events participants from the Managing Director levelcompany finds meaningful.

through younger employees in their second year at the company

The Emergent Evolution Forest where these events take placegather together for discussions in a location surrounded by a splen-

has a number of features making it conducive to dialogue among the

did natural environment. Lively discussions ensue, and new ideas

participants, and I think it embodies the DNP Management Concept

emerge. Outside directors also participate in the discussions, andof “Generating New Ideas Through TAIWA.” Exchange studies withexchange meaningful opinions. Also, the female participants rate the

DNP, a creative and lively company, in such spaces provides ex-

food and hot spring facilities highly.

tremely effective stimuli, and we also gain from exposure to other

Employees from a variety of departments engage in heart-to-perspectives.

heart conversations, and the white hot debates stretch well into thenight as the drink flows.
DNP Group CSR Report 201142

Social Contribution as a Good Corporate Citizen

What the DNP Group Wants to Pass on to theChildren who Comprise the Next Generation
The DNP Group engages in social contribution based on five activity themes in a way that is “Just Like DNP,”
with the goal of contributing to the realization of a rich society and its sustainable growth.

Environmental
conservation

Contribution to
local communities

Next-generation
childrearing

Arts and culture

Humanitarian aid

The DNP Group’s Next Generation Cultivation Contribution Efforts

Science classes that use ourown technologies andproducts, “Just Like DNP”

Voices of amazement about the mysteries of color all around us!
The lessons take thetheme of “Color,” which isa topic deeply connected
to printing. The lecturers
use DNP’s businesses
as a way to teach topics

Children are taking less and less interest in science, andsuch as “People and ani-

there are concerns about the future quality and numberof researchers and technicians in the science and technology sectors. This is a particularly acute problem in acountry such as Japan which has few natural resources.
The DNP Group bases an important part of our social
contribution efforts on the theme of “Next Generation
Cultivation,” and is actively involved in the education anddevelopment of the next generation, which will provide

mals using color to send
Elementary schools wherescience lessons were held

information,” “The rela-• Funabashi Minami Honcho Elementary

human eye is constructed• Mobara Toyooka Elementary

reproduction principles of• Minami Boso Tomiura Elementary• Nagareyama Koyama Elementary

the human resources of the future.

tionship between how theand moves and the color
printing,” and “How printing technology is used inmany aspects of human

In 2010 we dispatched science lecturers to give

life,” using observation and experimentation. Children

lessons at four elementary schools in Chiba, wherelearn how the broad spectrum of colors can be expressed

our headquarters research labs are located. This wasby using the three primary colors and dots, which amazes

conducted under the auspices of the Ministry of thethe children.

Economy, Trade and Industry’s Industry Professional

The students and teachers at all four of the schools

Education Support Project. DNP has created and offers

where the lessons were conducted gave the lessons verya lesson program for making it easy to understand how

high marks. We plan to expand this science lecturer dis-school science classes relate to socially valuable printing

patch program by linking up with local communities so as

technologies, so as to increase the interest and aware-

to offer “Just Like DNP” social contribution by providing

ness of pupils in science and technology.

knowledge through our core business.

The Industry Professional Education Support Project
The Ministry of the Economy, Trade and Industry has been conducting this nationwide as a model program for three years since 2008. The aim of
the program is to increase interest in science and the effectiveness of lessons by demonstrating to children how the lessons learned in scienceclasses are used in daily life. The program uses industry professionals (technicians or OBs from local industries) to give science lectures at elementary schools.

43Social Contribution as a Good Corporate Citizen

F

1

O

C

U

Dispatch lecturer science lesson:
The Mysteries of ColorS

Take a look at printed matter through a loupe!

If color printed matter is looked at through a high-power loupe one cansee that the colors are expressed through three primary colors. Children learn the way the printing industry expresses the spectrumof colors by combining dots from the three primary colors- cyan,
magenta, and yellow.
Child’s opinion

This is easy to understand, and the lesson was very
interesting. I would like to research this myself.

2
Cyan

dots

Use clay in the three primary colors to make a variety of other colors!
Is it really possible to make so many colors from just three?
Children experiment with combining
clay in the three primary colors to actual-

Yellowly create other colors.

Magenta3Child’s opinion

I was surprised to learn thatprinted photographs are madeby using the three primary colors. What we learned today
was very interesting. I can’t
wait to tell my mom and the restof the family.

Experience new printing technologies!

Children learn how evolv-

ing printing technologies
make their lives richer byexperimenting with dyesublimation thermal transfer and 3D printing.
3D printing

Dye-sublimation thermal transfer printing
Dye-sublimation thermal transfer technology is used in items
such as photo decals and endoscopy. It also uses the three primary colors for color expression. In the process of hearing an
explanation of the structure of “PrintRush” do-it-yourself printing
systems, children experience their high-resolution and fast output. The children also receive photos of the lesson as presents.

Nobuho Mori

Ryuichiro Minamihara

Product Planning Department
Information Media Supplies Operations
DNP

Ichigaya Group Manufacturing 21
Promotion Division
Ichigaya Publication Printing Operations, DNP

Printing technologies are also applied to 3D images which
provide real depth and three-dimensions to images viewed
with the naked eye. The children were eager to use DNP’slatest DynaCube 3Dtm printing technology, which provides
realistic 3D images.

Yoshihisa Maruyama
VOICE

Principal
Funabashi Minami Honcho Elementary

I believe that the children gained
valuable experience through these special lessons, inwhich they were able to experience color compositionand observed color prints through a loupe. Also, they
got a real feeling for the many printing technologies
used in daily living. After the lesson, we heard many
I was able to participate in this proj-

The kids were amazed and lively

students saying that “The experiments were fun” andect with people I don’t normally workwhen they took part in the observa-“Color printing (dye-sublimation thermal transfer print-

with, giving me a good chance to re-tions and experiments we thoughting) is amazing.” I believe the children became evenview my own work, which I think also

up. Their expressions were varied

more interested in and aware of science through theseenabled me to grow. What I was able

and they were enthusiastic. This was

lessons. We are grateful to everyone at DNP for the les-to convey was not the only thing that

also another way to introduce more

son preparation and guidance that went into thesewas important, it was also what I

people to the DNP Group’s technolo-

lessons.

learned.

gies and products.

DNP Group CSR Report 201144

Topics: Efforts by Group companies

Joint efforts with local communities focusing on
education
Tien Wah Press
Tien Wah Press of Singapore is a manufacturer of hard-

Donations from employees for the underprivileged

cover and pop-up books. Tien Wah Press works with

In fiscal 2010, Tien Wah Press employees gathered

local communities to resolve social issues, focusing on

books, toys, shoes, school bags, and writing materials

the deep ties between education and the company’s

for delivery to underprivileged children in Malaysia’s Sa-

core business.

bah state and other areas through the NPO Go Educate,
which promotes education among the poor of Southeast

Recycling and Charity Efforts

Asia. Tien Wah Press will continue to work outside its

Tien Wah Press has been participating as a private

home region of Singapore by including Southeast Asian

sector company in recycling and charity efforts in South-

communities as recipients of its efforts.

west Singapore since 2007, with the proceeds fromthe recycling efforts directed toward scholarships forDistributing Mid-Autumn Festival mooncakes

underprivileged local children. In addition to donating

The Singapore Chinese community celebrates the Mid-the proceeds from in-house charity drives and recycling

Autumn Festival with grand celebrations that include theefforts continuously every year, Tien Wah Press also

eating of mooncakes. Tien Wah Press works with local

requests that its business partners join in, expanding

partners to distribute mooncakes to 80 households who

the range of the efforts.

cannot afford them, so they can join in the celebration.

In fiscal 2010, Tien Wah Press began offering original greeting cards and dummy books for the Chinese
New Year. Local children draw pictures based on environmental themes on the front covers of the dummybooks, and they are marketed as sketch books. By
selling these goods the company was able to raise
S$17,500, which combined with matching donations
from the Southwest Singapore Region amounted to
S$35,000 in scholarship funds for 282 children.

VOICE

Rajiv SinghManager
Tien Wah Press

Knowledge is power, and what better way
than, to empower students from lower income families to get quality education. I am very proud of ourcompany’s partnership with the local community centre to raisemoney for the neighbourhood school scholarship and endowment funds. A simple act of charity means a yearlong supply ofbooks and education for the children who benefit from this program. My colleagues and I look forward each year for the
charity run and donation collection for these kids in our company’s neighbourhood. The kids who benefit from this program
To tie up their recycling and charity efforts, on March 31, Tien Wah

also contribute towards their own funds by painting drawings

Press employees joined with the mayor of the Southwest Singaporethat are then covered as cover/jackets of stationary products

Region, local children and others for a charity run, in which about

done by TWP that are sold for charity. This way the children

250 people participated at the company’s site.

also feel proud and contribute to the society. It is a very humbling experience for all of us who are involved.

45

Topic: Efforts by Group companies

Multi-faceted support for strong healthmanagement awareness
DNP Denmark
DNP Denmark is the worldwide rear-projection andagainst such a backdrop, and DNP Denmark is also

front-projection screen center of DNP. With a more thanactively engaged in a variety of support measures for

70% market share, we are involved in the business of

employees. These include improving the nutritional

developing, manufacturing, and selling large screens.

value of meals in the company dining hall, as well as
health consultation, weight loss contests, exercise

Efforts for employee health management

events, and activities for improving blood pressure andIn principle health services are free of cost in Denmark,cholesterol. These have produced results.

and are paid for out of taxes. Keeping the future tax

Our employees also volunteer as instructors atburden for these services low depends on individuals

sports clubs and as coaches for local soccer teams,

making efforts to stay healthy, so companies are being

and participate in the EccoWalkathon, which raises do-

asked to provide active employee health support.

nations for orphans according to the distance walked.

Both the national government and companies are

We continue to expand participation in such activities,

very aware of the importance of health management

which are a “Win-Win” for society and our employees.

T

O

P

I

C

S

Award for Superior
Company Health Efforts

VOICE

Kristoffer From
COO
SundhedsDoktor

DNP Denmark’s efforts to improve employee health have produced great results in the short term, notonly by having a beneficial influence on employee health andIn fiscal 2009 the Danish
Ministry of Health presented
DNP Denmark with theAward for Superior Company Health Efforts (Sjælland
Island regional prize for excellence). This prize isawarded to companies that make actual efforts to improve
the health improvement motivation of employees, andwhich view health improvement as a strategic effort for theorganization. This represents a high evaluation of DNP
Denmark’s continuous health management efforts.

disease prevention, but also by improving motivation, concentration, and their sense of satisfaction. The reason theseresults have been forthcoming so soon is due to the preparation, through input from outside experts, of optimal programsfor employees that are devised to encourage employee initiative in making progress voluntarily. In 2009, these efforts wererecognized by DNP Denmark’s selection as “the healthiest
company” on Sjælland Island.
These employee health promotion activities are also very
important to ensuring a stable future for DNP Denmark. I believe there is no question that they will help to create a livelier,happier, and more attractive workplace.

DNP Group CSR Report 201146

Topic: Efforts by Group companies

Ensuring Hokkaido will remain beautiful
Hokkaido Coca-Cola Bottling
Since the founding of Hokkaido Coca-Cola Bottling in

broad expanses of Hokkaido. As a company born and1963 the company has been delivering “refreshing andraised in Hokkaido, we are making serious, continuous

delicious” soft drinks to the people of Hokkaido.

efforts to create a sustainable society that will preserve
the beauty of Hokkaido for future generations.

Hokkaido Coca-Cola Bottling produces and markets
a variety of soft drinks at its plant, which are made withwater, sugar, milk and other products originating in

T

O

P

I

C

The Hokkaido e-Water ProjectS

1

Together with Hokkaido Prefecture andthe Hokkaido Environmental Foundation, we have been promoting the
Hokkaido e-Water Project since 2010,
with the goal of preserving Hokkaido’s
pure water resources for the future. We
promote and support the efforts ofgroups seeking to preserve Hokkaido’s
aquatic environments.
Hokkaido Coca-Cola Bottling deposits a portion of sales of its Georgia Santos Premium Hokkaido-only label
coffee as “customer demand for the protection of Hokkaido’s environment,”2

and uses those to fund the project.
Groups engaged in activities for biotope creation and the preservation oflake and river water quality, as well as to eliminate invasive species, wereselected in fiscal 2010, and a report was issued on the course of these activities over the year, their results and issues to be handled next year. About¥12 million (equal to the sale of about 24 million bottles) in activity funding isplanned for fiscal 2011. 30 groups have applied for funds, and after a carefulselection process seven were chosen. (Photos 1 and2)

We will continue to elicit applications for funding so as maintain our support of the conservation of Hokkaido’s environment.

Groups supported by the Hokkaido e-Water Project in FY2011
Location

Name and main efforts

Otaru

Group for Crayfish and Our Waterways

Muroran

NPO- Biotope Itanki in Muroran

In Shiomikouen

Building a biotope, tree planting, nature watching group,hands-on nature study

Assabucho

Assabucho River Resource Protection Society

Assabucho River Basin

Shihorochou
Otofukegawa River
Basin

Shiraoicho
Lake Kuttara Region

Shimukappumura

Raising and stocking of ayu and lamprey, animal watchinggroup, river running

Pan-Pan Pumpkin

Salmon fry release, raft building, tree planting, nature conservation and restoration, and protection of aquatic plants
and animals

Shiraoicho Environment Townspeople’s Society

Water quality testing, aquatic life inspection, “Lake Seminar” environmental classes for elementar y and middle
school pupils, seminars on aquatic environments

NPO- Shimukappumura Tourism Association

VOICE

Tatsuichi Tsujii
Chairman
Hokkaido Environmental Foundation

The natural environment of Hokkaido has
great potential, and I believe that awarenessof that will grow in importance. One the most precious treasuresof Hokkaido’s environment is its water. Through the Hokkaido eWater Project a number of new forms of good water have beenrediscovered, and we are looking into ways both to cherish theseand to use them as resources.
We can say that water is both a resource and an asset. Coming to us in the form of rain and snow, it is a blessing from

Mukawa River Basin

Raising and stocking of selma, river experience programs,
the Cherry Salmon Forum, making of maps of the Mu

heaven, and through its prudent use humans can produce many

Kuriyamacho

Kuriyamacho Hasanbetsu Woodland Planningand Execution Committee

this perspective very important, and the benefits of informing citi-

Yubarigawa River
Basin

47

Provides information about the Japanese crayfish andinvasive crayfish species

Raising and stocking of salmon, examination of aquatic
life, nature experience programs for children

great things. The role of industry when it comes to water is fromzens about the importance of water and its value throughcorporate social responsibility activities are incalculable.

The DNP Group’s CSR Efforts
Environmental Report

Entry in the KIDS division, in-house photo contest sponsored by the Information Media Supplies Operations[Safflower Village]
Photo: Child of Fujio Shoji, DNP Tohoku

DNP Group CSR Report 201148

Environmental Management Structure

As a manufacturer, the DNP Group is constantly consider-charge of the management of the entire Group, and Oper-ing how we can coexist with the global environment. We

ations Group Environmental Committees for each area ofvalue the gifts of nature, and strive for coexistence with itbusiness. Each committee has its own promotional office.

so we can pass those gifts on to the next generation. Our
efforts to do so are of primary importance to us now in the• DNP Group Environmental Committee

21st Century, which is called the “Environmental Century.”

This is made up of the directors of the basic organizations at

We do our best for the planet, as required by our DNP

company headquarters, who are responsible for the environ-Group Code of Conduct, which states that “We shallment. The Committee deliberates and makes decisions

strive to use resources effectively without destroying orconcerning the environmental policies, objectives and plans ofpolluting the global environment, so as to pass on a beautiful planet to the generations that follow.”
The DNP Group emphasizes environmental conservation, global warming prevention, and the efficient use ofresources throughout the entire company.
Our environmental management system consists of
the DNP Group Environmental Committee, which is in

the entire Group, and monitors the progress of the plans and thestatus of the achievement of those objectives.

• Operations Group Environmental Committees
The decisions made by the DNP Group Environmental Committee are developed by the Operations Group Environmental
Committees after considering the special characteristics of theparticular sphere of business.

Structural diagram
President
DNP Environmental Committee
12 members

Promotion Office
27 members

Environmental Committee in Each Operation
256 members

Promotion Office
126 members(1) Deliberate and decide on environmental policies, targets and plans of the DNP Group(2) Approve environmental policies, targets and plans of the Operations Environmental Committee(3) Check and follow up on the progress being made in the plans of the Operations Environmental Committee,
and the status of the achievement of those objectives(1) Propose the DNP Group Environmental policies, targets, planning, and submit reports to the committee(2) Convey the environmental policies, targets, and plans of the DNP Group to all Operations Environmental
Committees, check its progress, and support activities(3) Report to the Environmental Committee regarding the progress (results, progress of the measures, etc.)
achieved by the Operations Environmental Committee(1) Deliberate and decide on the environmental policies, targets and plans of each operation(2) Check and follow up on the progress of plans by the Operations Environmental Committee, and the progress
being made towards the targets(3) Periodically hold committee meetings(1) Submit the environmental policies, targets, planning, and report to the Operations Environmental Committee(2) Convey environmental policies, targets, and plans of divisional groups decided by committee to all sites,
check and follow up on its progress(3) Report to the committee regarding the progress (results, progress of the measures, etc.) being achieved by
all of the sites

Technical and Manufacturing Group

Environmentally Conscious Products Development GroupRegional Measures Group

Environmental Conservation and VOC Group

Office and Work Environment Group

Industrial Waste Reduction Group
Energy Conservation Group

Each Site of the Operations

49

Cumulative total,
897 members

DNP Group Environmental Management System

The DNP Group created our own EMS (environmental

Status of Legal Compliancemanagement system) in 1993, prior to the publication of

While we make all efforts to comply with environmental

ISO14001. Our EMS uses the twin tools of eco-reports andlaws and regulations, over the past three years we havesite eco-reports, and executes the “Plan-Do-Check-Action”

experienced five incidents in which water quality stan-cycle every six months, setting the pace for the DNP

dards for wastewater were exceeded. There are no

Group environmental management efforts.

ongoing legal disputes involving environmental issues.
We have unfortunately had some complaints from areas

Eco-Audits

neighboring our plants concerning noise and odors.

We began implementing “Eco-Audits” in 1996, so as toWhenever we receive such complaints, we respondmake our EMS more effective. When items are indicated inpromptly by launching a thorough investigation into theaudit, a Correction Measures Performed Sheet is issued tocause of the problem and working to make improvements,

the site involved, and the DNP Group Environmental Com-and attempt to prevent recurrence.

mittee confirms that remedies have been implemented.

A piece of concrete scrap was discovered through a vol-Items cited in an Eco-Audit are analyzed and reflecteduntary inspection to have caused rainwater to drain out ofin the following year’s audit plan.

our industrial site at levels in excess of regulations. We removed the concrete scrap under instruction of theauthorities, and have confirmed through continuous monitoring that runoff is within the levels established by regulation.

2010 Eco-Audit Performance
Number of sites auditedConceptual diagram
Management Concept

63 sites

Number of attendees at sites

479 persons

Cumulative auditor numbers

127 persons

Cumulative auditing hours

286 hours

Code of Conduct

DNP Environmental Committee
Environmental Vision
Site
Eco-Report
ActionPolicy• Setting Group Environmental Targets• Determining Site Eco-Report Formats

PLAN

Improvement
indicated

ACTIONDNP Group
Eco-Report

Operations Environmental Committees
Each site (60 sites)

Improvement
indication

CHECK
Confirmation
by Committee
Chairman

PLAN

Eco-Report
evaluation/
Next-term plan

DO

Submissionof SiteEco-Report

Site Environmental
Committee
Execution

Setting site targets

ACTION

Site
Eco-Report

CHECK

DO

Site Eco-Reportenvironmental
targetEnvironmental
actionCompiled
environmental
regulations

Site Eco-Report
Next Term
Action Report

Confirmation bycoordinator

Eco-Report explanation

Internal environmental audit (Eco-Audit)

DNP Group CSR Report 201150

Current Status of Environmental Impact

The DNP Group manufactures a variety of different products closely related to the everyday lives of consumers,
with main materials such as paper, film, plastic, metal (iron,aluminum, etc.) and ink, as well as electronics.

Main materials (Unit: 1,000 tons)
2009

2010

Paper

1,855.6

Mainly manufactures magazines and other printed material

Film

121.7

121.8

through offset printing, uses a great amount of paper.

Plastic

93.1

107.0 (14.9% increase)

Metal

43.5

47.6

(9.4% increase)

Ink

51.0

52.0

(2.0% increase)

Others117.7

100.4 (14.7% decrease)ab

Information Communications Segment

Lifestyle and Industrial Supplies Segment

One of the biggest users of solvents in the DNP Group as it manufactures packaging, construction and other industrial materials
and uses solvents for its gravure printing, coating and lamination.
cElectronics Segment

1,816.6 (2.1% decrease)(0.1% increase)

Percentage distribution by individual segment for paper (Unit: %)Uses and discharges a great amount of water in proportion to therest of the Group in manufacturing LCD color filters and lead

2009

frames through its etching and photolithography technologies.

2010

DNP Group Environmental Efficiency

77

11

12

a

b

d

78

10

12

The DNP Group has evaluated our environmental efficien-

Main secondary materials (Unit: 1,000 tons)

cy by using JEPIX . Although our greenhouse gas*
emissions increased, VOC emissions, and landfill waste

2009

2010

Solvent

21.2

23.2

were reduced, so our environmental efficiency improved.

Acid and alkaline

14.8

19.4 (31.1% increase)(9.4% increase)

Percentage distribution by individual segment for solvent (Unit: %)

2009
2010

Line graph

Environmental efficiency (Output/EIP) (Unit: %)
2002
2003

48

9.5
62

7.5
5.6

2004
2005

4.5

2006

4.6

2007

4.0

2008

3.8

2009

3.4

2010

2.8

85
110
105
119
110
122

149

JEPIX (Environmental Policy Priorities Index for Japan): This is a single-index
environmental evaluation system developed in Japan, which measures generalenvironmental impact levels according to a single “EIP” (environmental impact
point) index. The JEPIX Forum, in which DNP participates, was established in2003 for the implementation of JEPIX methods, as part of the MEXT 21st Century
COE Program Committee (International Christian University).

51

10

b

d

91

9

Utilities

Bar graph

Environmental impact point (Unit: EIP 1 billion)

90

2009

2010

Overall energy input (TJ)

20,10020,800(3.5% increase)

Electricity (million kWh)

1,356.7

1,437.0(5.9% increase)

City gas (million m3 )115.7

112.8 (2.5% decrease)

LNG (million kg)

13.8

14.5

LPG (million kg)

6.8

6.6 (2.9% decrease)

Fuel oil (kl)

3,200

1,900 (40.6% decrease)

Steam (TJ)

436

520 (19.3% increase)

Kerosene (kl)710

810 (14.1% increase)

Water (million m3 )16.1

15.9 (1.2% decrease)(5.1% increase)

Percentage distribution by individual segment for water (Unit: %)

2009
2010

7

13

68

12

a

b

c

d

6

13

68

13

Emissions into the air

Product Manufacturing
Processa
Information Communication
Books and periodicals, commercial
printing, business formsb
Lifestyle and Industrial Supplies

2009

2010

GHG*2 emissions (1,000 tons-CO2)

896

903

(0.8% increase)NOx emissions (tons)

673

697

(3.6% increase)

SOx emissions (tons)12

11 (8.3% decrease)

Atmospheric emissions of VOCs (tons)

9,011

6,837 (24.1% decrease)

Of which, subject to PRTR (tons)

868

654 (24.7% decrease)

Percentage distribution by individual segment for GHG emission amounts(Unit: %)Packaging, decorative materials,
industrial supplies

2009cElectronics

2010

22

34

34

10

a

b

c

d

20

35

36

9

Displays, electronic devices

OUTPUTI NPUTd
BC (Brother Companies)
Ink, beverages, etc

Emissions into bodies of water
2009

2010

Water discharged (million m )13.6

13.5 (0.7% decrease)

COD emissions (tons)

51.4

48.9 (4.9% decrease)

16.2

13.4 (17.3% decrease)

1.7

0.4 (76.5% decrease)3

Nitrogen emissions (tons)*3

Phosphoric emissions (tons)

Current Status of Recycling in the DNP Group2009

Percentage distribution by each segment for water discharge (Unit: %)2010

Recycled solvent (1,000 tons)

4.8

4.6

Usage ratio *1

1.2

1.2

Recycled acid and alkaline (1,000
tons)

3.4

3.2

Usage ratio

1.2

1.2

Recycled water (million m3)

530.6

545.5

Usage ratio

34.0

35.3

178,700

206,400

Vapor generated from waste heatrecovery (tons)

2009
2010

5

12

72

11

a

b

c

d

5

11

72

12

Undesired materials generated (Unit: 1,000 tons)
2009

2010

Total amount of undesired materials

357.7

355.0 (5.5% decrease)

Waste emissions

62.7

57.5 (8.3% decrease)

Landfill waste amount

4.2

3.2 (23.8% decrease)

Percentage distribution by individual segment for undesired materials (Unit: %)*1 Usage Ratio: This is a calculation of (input+ recovery and recycling)/input. It does not include vapor or solvent in ink.
*2 GHG: Greenhouse Gases*3 Water discharge channels to which the Water Pollution Control Act
applies.

2009
2010

44

27

17

12

a

b

c

d

44

28

16

12

DNP Group CSR Report 201152

Chart: Targets and Results
Evaluation Targets

Target broadly achieved
Conducted activities but target not achieved
Achieved target or in steady progress toward target
No sufficient activities

Topic

Targets through 2010
To reduce GHG emissions by 10% from the 2005 level (fiscal 2020).

Global warming prevention
To reduce per unit CO2 emissions by 15% from the 1990 level (fiscal 2010).

Reduction of environmental impact
incurred during transport

To reduce per unit fuel use for transport (amount of fuel used/sales) at 1% perannum, and 4% by fiscal 2010 compared to fiscal 2006.

VOC

To reduce emissions of VOCs by 70% compared to 2002 by fiscal 2010.

To reduce per unit waste emissions (waste emissions/production) by 50% from the2000 level (fiscal 2010).
To reduce undesired material generation by ratio (undesired material generation/totalmaterial input) at all sites by more than 3%, 35% from the 2000 level (fiscal 2010).

Reduction of industrial waste
To achieve a 98% recycling ratio (recycled amount/total amount of undesired
material generation) in the disposing of main raw materials (fiscal 2010).

To achieve zero emissions for the entire DNP Group (fiscal 2010).

Development and sales ofenvironmentally conscious products

To increase the level each year by 10% (over the previous year), and achieve 300
billion yen (fiscal 2010).
To increase the rate of the products purchased according to the green purchasing
standards of DNP, to 40% (fiscal 2010).

Green purchasing

To increase the purchase rate of environmentally certified products, such as thoselabeled with the Eco-Mark, of the total supplies (office supplies and equipment) to
50% (fiscal 2010).
To keep the maximum concentration of air emissions subject to emissions regulations at 70% of the required standard or less.
To keep the maximum concentration of wastewater discharges subject to wastewater
regulations at 70% of the required standard or less.

Environmental conservation

To keep the maximum concentration of odors at our site perimeters at 70% of therequired standard or less.
To keep the maximum level of noise at our site perimeters at 95% of the required
standard or less.
To keep the maximum level of vibration at our site perimeters at 95% of the required
standard or less.

53

Office environment

To increase the rate of the fractional recovery of waste paper to 70% of that for
general waste.

Environmental management system

To perform Eco-Audits at all sites.

Evaluation

2010 results
Emissions in 2005: 1.066 million tons
Emissions in 2010: 0.903 million tons
Per unit in 1990: 252 tons/100 million yen
Per unit in 2010: 251 tons/100 million yen
Per unit in 2006: 2.15 kl/100 million yen
Per unit in 2010: 1.61 kl/100 million yen
Emissions in 2002: 21,312 tons
Emissions in 2010: 6,837 tons
Per unit in 2000: 0.312 tons/million yen
Per unit in 2010: 0.137 tons/million yen

Targets through 2015

15.3% decrease
from that in 2005
To reduce GHG emissions 10% from the 2005 levels by fiscal 2020.
0.4% decrease
from that in 1990
25.1% decrease
from that in 2006

To reduce per unit fuel use for transport (amount of fuel used/sales) at 1%
per annum, and 10% by fiscal 2020 compared to fiscal 2010.

67.9% decrease
from that in 2002

To reduce emissions of VOCs (except for methane) by 20% compared to2010 by fiscal 2015.

56.1% decrease
from that in 2000

Generation rate of undesired materials in 2000:
17.7%
25.4% decrease
Generation rate of undesired materials in 2010: from that in 2000
13.2%
Recycling rate in 2009 Overall 99.2%
paper 99.8%, plastic 96.4%, metal 99.3%, glass 61.6%
Recycling rate in 2010 Overall 99.3%
paper 99.9%, plastic 97.2%, metal 99.0%, glass 60.6%

To reduce per unit waste emissions (waste emissions/production) by 15%
from the 2010 level by fiscal 2015.

To achieve zero emissions for the entire DNP Group by fiscal 2015.

Landfill waste rate in 2009: 1.1%
Landfill waste rate in 2010: 0.9%
Sales of 312.1 billion yen in 2009
Sales of 318.0 billion yen in 2010

1.9% increase overthat in 200941.5% green purchasing rate for materials in 200939.9% green purchasing rate for materials in 2010
51.2% green purchasing rate for materials in 200960.0% green purchasing rate for materials in 2010

To increase sales of environmentally-conscious products and services to¥400 billion by fiscal 2015.
To increase the rate of the materials purchased according to the DNP green
purchasing standards to 50% by fiscal 2015.
To increase the purchase rate of environmentally certified products, such as
those labeled with the Eco-Mark, of the total supplies (office supplies andequipment) to 85% by fiscal 2015.

95% achievement rate of targets for 2010 (voluntary target)
95% achievement rate of targets for 2010 (voluntary target)
94% achievement rate of targets for 2010 (voluntary target)

Maintain a level of 70% or less than the regulatory limit.
Noise and vibration are converted to sound pressure or shaking speed andassessed.

74% achievement rate of targets for 2010 (voluntary target)
100% achievement rate of targets for 2010 (voluntary target)
83.5% rate wastepaper separation in 2010

To increase the rate of the fractional recovery of waste paper to 70% of thatfor general waste.

Eco-Audits conducted at all sites in 2010

To perform Eco-Audits at all sites.

DNP Group CSR Report 201154

Achieving a Low-Carbon Society

Cutting Greenhouse Gases Across Our
Operations
People throughout the world are using intelligence and effort in applying measures against global warming, so as to protect our irreplaceable Earth. Greenhouse gas emissions reduction is an important theme
within the DNP Group, so we are making efforts in all aspects of our business, including planning, design,purchasing, production, and distribution, so as to reduce greenhouse gas emissions.

Progress in energy conservation throughout the DNP Group

Maximizing Energy Efficiency

loss. By optimizing the manufacturing conditions we canachieve even greater reductions in CO2 emissions fromproduction.

Real CO2 emissions reduction results
This system is in place at facilities at 17 plants, and we
DNP Group measures to prevent global warming include

plan to have it installed at 30 plants during fiscal 2011.

our switch from LPG (liquid petroleum gas) to LNG (liquid

Compared with the situation prior to installation of thenatural gas), and the installation of solar equipment.

system, emissions have been cut 9% in gravure printing

Since 2008 the “energy conservation sub-committees”

equipment used on soft packaging, and around 6% in off-have driven the Group’s overall energy conservation

set printing equipment used for publishing printing.

activities. We conduct mutual diagnostic committees forHenceforth, by installing the latest energy con-plants and develop energy conservation improvements

servation equipment, switching fuels, and improving

evenly among our plants. In addition we are proceeding

equipment operation, the DNP Group aims to reduce

to switch to energy-saving equipment.

overall greenhouse gas emissions 10% by 2020 (in comparison to fiscal 2005).

The key is energy use visibility
In seeking to reduce greenhouse gases and continuously
conduct energy conservation measures, energy use
visibility in every process and piece of equipment is indis-

Outline of monitoring system

pensible, because loss of energy, such as the electricity
and gas used in the production processes, decreases

Electric

efficiency. Therefore we set about developing our own

Chilled
water

Steam

Air

energy monitoring system. R&D into the production

Technology Unit, the Environmental Safety Department,
and DNP Facility Services, which handles maintenance,
also joined the project. The system went into operation in
May 2009.

Equipment operation
statusTechnology Integration Laboratory, while the Head Office

Energy consumption

facilities and systems is focused on the Manufacturing

Printing equipment

Our efforts toward realizing a low-carbon society follow three paths, namely, facilities responses (installingenergy efficiency equipment, improving equipment),
production efficiency, and operational responses. In

Operational speed
graphElectricity volume
graph

moving forward with these activities, by making energy
use visible we can expect even greater results. The monitoring system in use makes the amount of energy usedand equipment operational status visible in real time,
and that data becomes the basis for extracting energy

55

Equipment operation status and energy consumption are linked and displayedon a PC so as to be easily understood.

Achieving a Low-Carbon Society

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Energy monitoring systemS

DNP’s own-developed energy monitoring system went online infacility where. The ability to put this information on the company

2009. It monitors production facilities’ operating data and ener-

intranet means not only the on-site operators, but managers as

gy data in real time, and displays that data on a PC. In addition

well can monitor energy consumption data via the LAN. Improve-to displaying energy-use data categorized as electricity, chilled

ments can be made to the facilities or operations accordingly.

water, steam, and air, it also allows the checking of energy costs

We actively use these results to make improvement proposals

and CO 2 emissions data. This makes it possible to view at a

to each site.

glance the amount of energy that is being consumed by which

Watch out for post-stoppage energy consumption!

We discovered that energy was being wasted even after equipment stoppage due
to drying fans and similar operations, and made improvements.

Operating speed

Printing machine
auxiliary equipment
Printing machine
motorsPower/Operational speed

Lighting

Power/Operational speed

Drying fan

Before improvement

Time

Watch out for differences in power consumption
among identical equipment!

Time

We found out by comparing equipment that in some cases there were differences in power consumption among identical equipment. In such cases we madeimprovements by using the data from the most efficient piece of equipment as
the standard for power consumption.

CompareOperating speed

Printing machine
auxiliary equipment
Printing machine
motorsEquipment A

Equipment B
Power/
Operational speed

Lighting

Power/Operational speed

Drying fan

Time

Watch out for power consumption during start-up!
Operating speed

After improvement

Time

We discovered that energy was being wasted even before actual operation, andwe made improvements.

Beforeimprovement

After
improvement

Drying fan

Power/
Operational speed

Power/
Operational speed

Lighting
Printing machine
auxiliary equipment
Printing machine
motorsTime

Takayuki Naito
Manager, Technical Department
Ichigaya Publication Printing Operations, DNP

The Kuki Plant, which is located in southwest

Time

Kazutoshi Kichikawa

VOICE

Technology Development Center
DNP

I am in charge of software development for the

Saitama, focuses on manufacturing magazines, such as weeklies

energy monitoring system. While this system is already helping toand monthlies, for the entire country. Our operations involve offset

save energy, trial and error has been continuous since development

printing and saddle-stitch or adhesive binding. Ours is largest thebegan. We find and make “visible” latent energy loss in production

publishing printing plant in Japan.

equipment that up to now we had not known about. In doing so the

In August 2009 we worked with the Manufacturing Technology

knowledge of the plant technical staff and operators, who are thor-

Integration Laboratory to construct model equipment, making “visible”

oughly versed in the equipment, is indispensible. Achieving thatthe energy used by the offset printing equipment. We cut losses byrequires deep discussion as well as repeated trials and spec revi-¥1.35 million/month in the first year. The waste from air leaks in par-sion at the plant.

ticular can be discovered at a glance, and I really feel the systembenefits are significant.
We will develop the benefits of this system so that the Kuki Plant
can continue to work to prevent global warming.

The benefits continue today, and we have built a broad network
within the company that has helped to speed up development. Because this system is deeply rooted in DNP, development will proceed
through continued deep discussion with people related to this project.

DNP Group CSR Report 201156

Building a Recycling Society

Finding Value in Undesired Material, so as to
Reduce Environmental Impact

At the DNP Group we seek to reduce undesired material output from our production processes, and to use
those materials effectively because doing so reduces environmental impact.

Reducing undesired material output and using that material effectively

Re-using undesired material
generated in the
manufacturing processtion processes be used without waste, and that resources
be used effectively by re-using to the greatest extent possible any undesired materials that are produced.
Undesired material generated from manufacturing
processes is valuable if it can be separated into a single
material. That which cannot is either reused (recycling,solid fuel, cement ingredients, etc.) or subjected to

The DNP Group is working to “improve resource produc-thermal recycling, which reduces both midstream andtivity” and “promote the reuse of undesired materials”

end processing volumes. We are taking steps to makeso as to contribute to the building of a recycling society.

progress in making undesired material valuable.

These efforts require that the materials input in produc-

Breakdown of undesired material generated from manufacturing processes in FY2010
other 2%

metal 2%AA

sludge 14%
liquid waste
2%
waste plastic
14%

paper waste
62%

A

paper waste 10%

Waste(68.3%)

D
D Volume of waste
subject to on-site
interim processing

waste plastic
30%
liquid waste
4%
waste oil 7%
paper waste
12%

other 12%

E Waste not subject
to on-site interim
processingEF

waste oil 13%

waste plastic
41%

FF

paper waste
8%other 1%

63,000 t (17.8%)

49,500 t (13.9%)

residue 5%

paper waste
86%C

242,500 t(31.7%)

metal 1%B

liquid waste
1%

C
C Valuable waste

112,500 tother 6%

metal 3%waste oil 3%

waste plastic
7%

B
B

sludge 42%

Total materials
input volume2,245,400 t

355,000 t (100%)

waste oil 4%

sludge 10%aUndesired materials
production volume

sludge 75%

Waste after
on-site interim
processing

waste plastic
16%

D

paper waste
2%
waste plastic
9%other 10%8,000 t (2.3%)

metal 2%

Volume outsourced

sludge 25%

Iliquid waste
40%

liquid waste 7%other 14%

paper waste
14%

metal 1%
sludge 8%waste oil 13%

GHG
G Materials

H
H Materials

42,500 t(12.0%)

7,200 t(2.0%)

recycled
as resources

waste plastic
46%

liquid waste 4%

recycled
as thermal

II Interim
waste processing
outsourced
5,400 t(1.5%)K
K Finaldisposalvolume (indirect)

JJ

Final
disposalvolume (direct)

2,400 t(0.7%)

waste oil 12%
paper waste 0%other 11%

residue 45%

JK

waste plastic5%liquid waste1%
sludge 38%

900 t(0.2%)

Targeting zero emissions for the entire DNP GroupWe use the recycling rate as the indicator for undesired materials reuse promotion, with the goal being zero emissions. Zero emissions means efforts to bring the landfill waste amount/undesired materials production volume to 0.5% or less. The rate for the Group overall was 0.9%, an
improvement over 1.1% in 2009, with 51 out of 60 sites achieving zero emissions. We have also achieved an overall recycling rate of 99.3%.

57

Building a Recycling Society

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Promoting M Recycling (DNP Technopack)S

DNP Technopack is engaged in the manufacture of a variety ofTechnopack began serious efforts to convert undesired materi-packaging products, from ink, adhesive, film, resin and otherals to valuable materials.

packaging materials through food and medical packaging and

DNP Technopack refers to this as M Recycling, taking the “M”

laminated tubes. In addition to the measures it has always en-

from the word “materials.” The subject of this recycling effort is unde-gaged in to reduce output of undesired materials, in 2007 DNP

sirable plastic generated in the process of manufacturing packaging.

M Recycling flowchart
Sayama Plant

Purchaser

Sale of valuable material

Sale

Izumizaki Plant

Recycled into pellets

Forming andmolding

MoldingPreviously
processed
as wasteComposite plastic

Pelletizing extruder

Recycled pellets

Molded goods

Made recyclable through separation

Aiming for a high degree of separation at the
manufacturing sites

Packaging materials can made of various substances such as

Because the same line at two plants assembles and manufactures

polyethylene and polypropylene depending on the use and re-a variety of packaging, experienced operators who understandquired functions, and is usually manufactured through assembly

the materials composition perform the separating. Also, we haveinto 2-8 layers. The more functionality the material has the morecreated our own Valuable Material Control Documentation corre-usable it is as a material, and the more difficult it is to recycle.

sponding to the manifest (legally stipulated management

Upon to now it was made into solid fuel or thermally recycled,

documentation) necessary in contract processing of regular indus-

but as the need for recycled pellets has increased efforts to sep-

trial waste, which provides for thorough management. M

arate it have become more thorough. M Recycling has made thisRecycling has resulted in reduced costs by making possible petro-material reusable as plastic by making it possible to sell it for re-leum resource reuse, waste processing cost reduction, andcycling through pelletization.

reduced waste volume due to promotion of high-level recycling. It
also makes it possible to provide the market with a high-quality recycled product. We plan to install equipment that will make on-site
recycling easier, and also to improve operator awareness.

Masanaka Hayakawa
Manager, General Affairs Department
DNP Technopack

DNP Technopack has always recycled unde-Hitoshi Shimizu

VOICE

President
Taisei Plastics Co., Ltd.

DNP Technopack has made the recycling ofsired materials discarded in our manufacturing processes, andlaminated composite film, which previously had been discarded,

continues to strengthen M Recycling of plastic products, such as

possible through separation (into different resins).

pallets. Because the soft packaging made by DNP Technopack is

In terms of manufacturing technology, this means the degree tocomposed of a variety of different plastics, it is necessary to sepa-

which different fused resins melt, and controlling the gelling of therate the different layers of plastic film. The separating process mustresin. Another significant hurdle to commercialization is application

be performed by an employee who understands the makeup of thedevelopment of the resin produced. It has taken us around threefilm being handled, and must put that awareness into practice.

years to get to this point.

I believe we are able to make some contribution to preventing

We are currently in the process of creating a materials recycling

the depletion of petroleum resources, which is a global problem, bysynergistic effect through separation precision at DNP Technopack

practicing M Recycling.

combined with our laminated composite film plant going online.
It is my hope that we will expand the scale of these activities.

DNP Group CSR Report 2011

58

Realizing a Society in Symbiosis with Nature

Seeking Business that Helps Preserve
Biodiversity
Human beings rely on the blessings of an ecosystem that supports diverse life.
The DNP Group is aware that our business is premised upon our operating in a global environment that isrich and irreplaceable. Therefore, we seek to fulfill our responsibility to preserve ecosystems, and help create a sustainable society.

Development of packaging that considers biodiversity

Providing consumers withproducts with reduced
environmental impact

Lifecycle of BIOMATECH PET
Disposal

Sugar cane harvest

CO2
Burning

Film

The DNP Group has been making serious efforts sinceCane

Lifecycle

Product

Composite

the 1990’s to develop technologies to reduce environmental impact through reducing packaging volume, using lesspackaging mater, and recycling. In addition to reducing

BIOMATECH PETMolasses
BIOMATECH PET resin

our CO2 and petroleum-derived products use, we also are
engaged in product development that considers impact

Quantification of environmental impact requires

on biodiversity.

m o n i t o r i n g o f C O2 e m i s s i o n s . I n t h e c a s e o f b i o m a s s

Need for materials with less environmental impact

through photosynthesis as carbon will be returned to the

In 2006 DNP research led to the development of biomass

atmosphere when it is burned. Therefore, on balance

packaging materials partly composed of plant-derived

emissions can be considered zero, and CO2 emissions arepolylactate plastics. The drawbacks of polylactate plas-

lower than when petroleum-derived materials are burned.

tics are low heat resistance and strength, so they are

Nonetheless, emissions over the entire lifecycle, including

used in combination with petroleum-based materials.

how much in resources and energy goes into the materials

d e r i v e d m a t e r i a l s , o n l y t h e C O2 t a k e n i n b y p l a n t s

In 2009 we joined with Mitsubishi Resin and Sony to

manufacturing process, and how much waste is produced,

develop Smart Cards mainly composed of this plastic. In

must also be quantified. Also, impact on the ecosystems

May 2011 we developed and initiated mass production

where sugar cane is harvested cannot be overlooked,

o f new BIOMATECH PET biomass-based plas t i c f i l m

nor can the amount of water consumed. Therefore, wethat has made the switch from ethylene glycol, the raw

engaged in a research project with the cooperation of Pro-

material for PET film, taken from petroleum sources tofessor Tokuhiro Itsubo of the Faculty of Environmental andbio-ethanol derived from sugar cane, and can be used inInformation Studies, Tokyo City University for a lifecycle

place of polylactate.

assessment (LCA) of BIOMATECH PET. The study will assess environmental impact from a variety of perspectives,
and will factor into future business development.

Quantitative Environmental Impact LCA
The LCA is a method for quantitatively evaluating the source investment and environmental impact, as well as effect on the planet or the ecosystem, that a certain product or service exerts over the course of its life cycle. “Life cycle” here encompasses everything that takes place during theexistence of the product or service, from resource extraction through manufacture, transport, use, and the return of all waste to the Earth. The
Packaging Division introduced LCA in 1996 because of its strong concerns about waste emissions, and it has been conducting LCA since 1997.
The LCA is considered during product development.

59

Realizing a Society in Symbiosis with Nature

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BIOMATECH PET using materials derived
from sugar caneS

DNP is making progress with biomass plastic packaging materials that use plant-derived ingredients, so as to achieve
packaging that takes biodiversity and global warming into
consideration. BIOMATECH PET reduces dependence on
petroleum by using renewable resources. Also, since themain ingredient is molasses that would normally have been
discarded, there is no impact on the food supply balance.
The new material performs in the same way as PET film.
BIOMATECH PET is manufactured at 2-3 times the costof conventional film, and it has the same functions. By switching from ethylene glycol, which makes up about 30% raw
material for PET film, taken from petroleum sources to bioethanol derived from sugar cane, the volume of petroleum
consumed is reduced.

Developing a variety of productsWorking to expand applications

BIOMATECH PET has the same heat resistance, oxygen and wa-

We intend to steadily begin switching to BIOMATECH PET

ter vapor barrier, and workability properties as conventional PET,

for use in the PET film packaging products offered to foodand can be used in packaging such as pouches for sundries likeand beverage manufacturers, daily goods manufacturers,

shampoo or food products such as condiments, as well as retort

etc. We will work to lower the costs and expand the productfood packaging. Also, it is possible to use deposition processing toapplications.

improve the packaging barrier capabilities of PET film.

Ayumi Shibata
Development Division
Packaging Operations, DNP

I believe that continuing make effective use of

Norihiro Itsubo
VOICE

PhD (Engineering) Associate Professor
Faculty of Environmental and Information Studies
Tokyo City University

I support DNP’s activities for biodiversity pres-renewables such as biomass plastics is our mission, so that theervation. It is urgent that we use bio-resources effectively and stop

children of future generations can continue to use petroleum re-relying on petroleum if we are to build a recycling society. The use

sources, which are limited. Nonetheless, it is important to assessof plastic materials made from molasses, a sugar cane byproduct,

and get accurate information about the entire lifecycle of such prod-

is getting a lot of attention as a recycling resource. Nonetheless,ucts to determine if the environmental impact is really small, theuse of bio-resources does require land and water. Attention must

extent of impact on biodiversity and global warming, and water con-be paid to social aspects in developing countries such as employ-sumption. LCAs begin with a basic data investigation. Onsite

ment and stability. If water consumption can be optimized andinspections are carried out as much as possible, and we strive toimpact on biodiversity kept to a minimum, we can make progress

improve the accuracy of data. Our goal is for the data to be valuable

toward a use of bio-resources that contributes to regional develop-

in developing and popularizing BIOMATECH PET.

ment. I have expectations that this will lead the way to the further
introduction and greater popularity of this technology.
DNP Group CSR Report 201160

Independent Review Report Comments by an Independent Institution(Third-party review: Ernst & Young ShinNihon Sustainability Institute Co., Ltd.)

Onsite audit

Chikugo Plant, DNP Nishinippon

61

Okayama Plant, DNP IMSDNP Technopack Yokohama

Ichigaya Plant, Ichigaya Publication
Printing Operations

Kurosaki Plant No.2
DNP Precision Devices

Third Party Opinion
Saburo Kato
Chairman, Japan Association of Environment and Society for the 21st Century
President, Research Institute for Environment and Society

Upon graduating from the Faculty of Engineering of the University of Tokyo in 1966, joins the Ministry of Health and Welfare. Takes charge of Pollution and Environmental Administration at the Environmental Agency after its establishment.
Appointed as the first Head of the Global Environmental Department in 1990. After participating in the Global Summit andthe creation of the Basic Environment Act, leaves office in 1993. Establishes the Research Institute for the Environment
and Society in the same year, of which he is currently President. Serves concurrently as Chairman of the Japan Association of the Environment and Society for the 21st Century (formerly, Association for the Study of the Environment andSociety in the 21st Century). Major published works include Thoughts About The Environment (2010, PRESIDENT Inc.);
The Power of the Environment to Create Wealth (2005, Goma Shobo); The Power of the Environment (2003, Goma Shobo); The Environmental Century (2001, The Mainichi Newspapers); Conditions for Creating the Recycling Society (1998,
Nikkan Kogyo Shimbun), The Environment and the Future of Culture (1996, PRESIDENT Inc.).

When I look at the CSR reports published this year, since the enor-of expressing the true quality of the DNP Group’s CSR in contribut-

mous disaster of March 11 and the subsequent nuclear power planting to the development of society through their business.

accident the focus is the same no matter what the business of theAfter the Special Report, the editors address the Code of Con-

company issuing the report : How did the company handle the disas-

duct, which is an important part of the DNP Group’s CSR. One by

ter? What have they learned? What measures are they taking for the

one they take up matters such as compliance with the law and so-future? Wondering about the DNP Group in this regard, I see in thec ia l e t hic s, ensur in g in f or ma t ion s e c ur i t y, p r omo t in g s o c ia l

President Yoshitoshi Kitajima’s message at the beginning of this

responsibility through the supply chain, and the disclosure of infor-

year’s CSR report that he touches upon those very questions. Al-

mation. These sections also provide explanations that use the “humanthough operations at DNP’s Tohoku manufacturing base weretouch” in showing what DNP does. From the reader’s perspective

temporarily halted after the event, none of the employees were hurt,

this is much easier to read than just one “we do this, we do that” de-and in May they were operating again. This is the definite result ofscription after another.

having for some time had a BCP in place that is suited to the condi-

The second half of the report goes on to describe the activities

tions of the region. Nonetheless, instability in the supply chain forof three Group companies with special characteristics (Tien Wah

items such as paper, ink, and film have made it impossible to meet

Press, DNP Denmark, and Hokkaido Coca-Cola Bottling), focusing

the demands of customers in some instances, and President Kitaji-

on their CSR efforts.

ma notes in regard to this that “We will draw upon the lessons of thisdisaster in building an even more resilient corporate constitution so

Environmental conservation takes up the major part of CSR. The

as to ensure we fulfill our responsibility to maintain supplies to our

DNP Group engages in lively production activities that use materi-customers.” Moreover, as it says in the title of the Special Report at

als such as paper, film, resin, metals, and ink, with electric, gas,

the beginning, the aim is to be “An even more resilient DNP Group.”

LNG, and oil as the power sources. Anyone can see that environ-

In addition to proving clear information about assistance to people

mental impact is occurring, and DNP always lists input and output

in the stricken areas, DNP has revised its business plans, and re-data in its reports and clearly explains its environmental efforts.

ports, “We are taking a fresh look at items such as the supply chain,

The results for fiscal 2010 are good for the most part, reflecting

logistics, and an alternative production system, as well at the loca-

continuous efforts on the part of the company. Nonetheless, thetion of our production sites both within and outside Japan, so as to

failure to meet the company’s own targets for undesired material

maintain secure and continuous supplies to our customers.” The

output and per-unit emissions of CO2 is noticeable.

content of this year’s report is convincing.

Particularly in the area of CO2 emissions, the company states agoal of “a 10% reduction from 2005 levels by 2020” for total emis-

As I peruse the report itself I notice that some changes have beensions, but this target has already been reached at present. To put it

made to the layout and the focus of the report in comparison to 2010.

bluntly, in comparison to more difficult targets established both with-Up to now the impression has always been of a report that focusesin and outside Japan, this self-determined target is unsatisfactory.

evenly and proportionately on the various topics, giving details

Taking into consideration the fact that since the March 11 nuclear

about items that the average person might be interested in and tak-accident every region of Japan is affected by nearly constant,ing a friendly approach to the reader that employs a “human touch.”broad-scale power shortages, not only those served by TEPCO or

To put it simply, up to now the editorial policy seemed to be to focus

Tohoku Electric but also Kansai and other areas, I would expect thethe report on what the editors wanted people to read, but now they

DNP Group to revise its CO2 emissions reduction targets for theseem to have changed to an approach that is concerned with what issake of taking drastic measures to conserve electricity. It was un-

desired from the reader’s perspective. I think the close-up photo of

derstandable that this was difficult last year because of the increase

the director holding the smart phone in the Special Report entitledin the number of worksites due to the expansion of business, but by“Contributing to the Development of Society through our Business”

the same token that also means they should take up the challenge

is representative of this attitude. When I saw that I felt surprised andof more difficult targets. Also, biodiversity measures represent aat the same time got a fresh sense of the editors’ spirit. By simply

new and difficult challenge faced by all manufacturers. I will be pay-catching the reader’s attention in this way they subtly show the read-ing close attention to the DNP Group’s future progress with its sugar

er how DNP’s technology is used in smart phones. It is a clever way

cane-derived BIOMATECH PET products.

DNP Group CSR Report 201162