DNP Group
Environmental
Annual Report 2001
April 2000 - March 2001

Contents & Basic Policy of the 2001 Environmental Report
Contents & Basic Policy of the 2001 Environmental Report

Contents
Message from the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
DNP Corporate Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
DNP Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Message from the Managing Director in Charge of the Environment . . . . . . . . . .4
New Topics in Fiscal 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
The DNP Group’s Basic Environmental Philosophy . . . . . . . . . . . . . . . . . . . . . . .6
The DNP Group’s Environmental Policies and Environmental Targets . . . . . . . . .7
Material Flow Charts for the DNP Group’s Main Businesses (By Division) . . . . . .8
DNP’s Unique Environmental Management System “Eco-Report System” . . . . .10
Development and Sales of Environmentally Conscious Products . . . . . . . . . . . .12
Environmental Conservation Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16• Key Measures• Reducing Industrial Waste• Energy Reduction• PRTR: Chemical Substance Management
Review of Environmental Conservation Activities by Business Site . . . . . . . . . .28
Environmental Communication Support Services . . . . . . . . . . . . . . . . . . . . . . . .34
Environmental Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
Environmental Targets in Fiscal 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40
Independent Review Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41: This mark signifies sections newly added to
the 2001 Environmental Report or those thathave been significantly revised.

Basic Policy of the 2001 Environmental Report■ Editorial Policy
The following segments were newly added to this report.
• The introduction contains a section on topics covered during environmental activities in fiscal 2000.
• The material flow charts for the DNP Group’s main businesses is included for three business operations. (Owing to the diversity and complexity of DNP’s business activities, it wasnecessary to classify environmental impacts.)• An easy to understand review of environmental conservation activities at our businesssites. (In this report we only present a few examples. We plan to introduce more activities
at different sites in the future.)• Toward the close of the report we incorporated a section on environmental targets for fiscal
2001. (This is to show our awareness of the importance for continued disclosure.)• To make this report easier to understand, we have added a glossary to explain the technical terms related to environmental issues and the printing industry.

■ Coverage• The number of business sites covered under this report has expanded to 53 (compared to
the 43 plants and places of businesses reported in the 2000 edition).
• Outcome of activities from April 2000 to March 2001.

Message from the President

Emergent evolution: A technicalterm used in biology and sociology.
This is defined as the materialization of an unexpected special characteristic through thesynergistic effect of individual
elements that comprise an
overall object. This newly developed special characteristic inturn has an impact on each element. As a result of repeatedsynergies between the overall
object and its individual elements, something new evolves.

On October 2001, DNP celebrated the 125th anniversary of its founding. In commemoration ofthis milestone, in May of this year we established the “DNP’s Vision for the 21st Century.” In our
vision, we proposed “the DNP Group will contribute to the intellectually active, rich, 21st century
society with emergent evolution.” The phrase “contributing to the creation of a emergently evolving
society” also denotes dealing with the global environment.

Environmental performanceThis describes the environmental
impact created by the business itself
or the results from measures tocounter such impacts.

Awareness essential for working toward a recycling-oriented society

Greenhouse gas
A gas that traps heat caused byinfrared radiation from the earth’s surface. Typical types of gases include
CO2, methane, nitrous oxide and CFC.
Reduction of waste generation per
production
Amount of waste generated for total
production output (E + F on page 19),
expressed in tons per million yen.
Zero emissions
Generally defined as a society with nowaste, as waste generated from production operations is reused. Pleaserefer to page 18 for the DNP Group’s
definition.

Advancement in Activities
In 1972, the DNP Group was the first in the industry to establish an Environment Department,
enabling us to tackle environmental issues from an early stage. In 1992, as part of our Codes ofConduct, the entire DNP Group made an environmental declaration expressing its will to makeevery effort to protect the prosperity and future of the human race by protecting the environment
and using resources effectively. In 1993, we instituted a proprietary environmental management
system, dubbed the “Eco-Report System.” The system supports our efforts to promote the continual improvement of environmental activities through the aggressive reduction of industrial waste,energy conservation and the assessment and reduction of harmful substances. In March 2000,
the DNP Environmental Committee was launched. In addition to improving the environmental performance of our manufacturing division, the committee also helped fortify our planning and development of environmentally conscious products. The number of factories participating in the environmental management system increased to 53, from previous 43, and now covers almost all
domestic Group manufacturers, including affiliated companies.

This report, as part of our DNP Group environmental targets, in addition to voluntary target values, also assess total emissions as part of our contribution to preventing global warming and creating a recycling-oriented society. In regard to the prevention of global warming, we utilize theabsolute volume of total energy consumption and greenhouse gas emissions as an environmental
impact indicator, and focus our activities not only for improving energy efficiency but also on the
reduction of the absolute volume of emissions. In addition, for the reduction of industrial waste,
we have adopted the volume of total waste generated and the rates of reduction as indicators.
We use them as guidelines to reduce waste generation per production, to achieve zero emissions
and to reduce waste generation.

Determined to be a corporation dedicated to environmental
management
As an “emergently evolving” corporation in the 21st century, the DNP Group is working to promote the minimization of environmental impact through the development and sale of environmentally conscious products, the achievement of zero emissions, the reduction of greenhouse gases
and harmful substance emissions. We are making a full-fledged commitment to contribute to asustainable recycling-oriented society. We are working to establish our reputation as a corporation that implements environmental management throughout all stages of its business operations.

Yoshitoshi Kitajima
Chairman of the Board
President and Chief Executive Officer

1

Message from the President

Emergent Evolution of a Corporation in the 21st Century

DNP Corporate Overview(As of March 31, 2001)

DNP Corporate Overview

Dai Nippon Printing Co., Ltd.

Employees:
10,698 (DNP)
34,094 (Including DNP Consolidated
Group Affiliates in the printing business)

1-1, Ichigaya Kagacho 1-chome
Shinjuku-ku, Tokyo 162-8001, Japan
Phone: +81-3-3266-2111
Home page: http://www.dnp.co.jp/

Business Sites:
Branches in Japan: 56
Overseas offices and affiliates: 16

Established: October 1876
Incorporated: January 19, 1894

Main production plants (including affiliates):
Japan: 33
Overseas: 7

Capitalization: ¥114.464 billion

Research Institutes:
Japan: 11

Business form
A document with a predetermined format used inbusiness procedures andoffice management.
Shadow mask
An electronic component
used in monitors such as
TVs and desktop PCs that
contain cathode-ray tubes(CRTs). A shadow mask isa metal plate with manyholes in it.
Lead frame
A semiconductor chipconnector used to connect the chip with external
parts.
Photomask
Used in IC or LSI production, the photomask is a
substrate used when creating minute circuit patterns on a silicon wafer.

Net Sales

Main Businesses(¥ million)• Information Media

1200,000

Books; dictionaries; commemorative books; schoolbooks; magazines; PR brochures; electronic publications; product catalogs; advertising leaflets; pamphlets; calendars; posters; bonds; stock certificates;bank books; credit, banking and prepaid cards;
business forms; multimedia software; satellite broadcasting; others.

218,564

232,859
191,565

201,644

293,533

299,102619,105

613,448

612,389

635,941

1998

1999

2000

2001

1000,000

308,870

307,897

800,000

600,000• Lifestyle Products

Packaging for general foods, beverages, desserts,
general merchandise, and pharmaceutical products; cups; plastic bottles; laminated tubes; plastic
containers; paneling and other materials for housing
and furniture; 3-D printed products; decorative
metal paneling; transfer-printed products; others.

400,000

200,000

0(DNP)• Electronic Components & Information Media Supplies

Information Media

Shadowmasks; lead frames; photomasks; color filters for liquid crystal displays; projection televisionscreens; printer ribbons; electrodes for lithium-ion
rechargeable batteries; others.

Color filter
An electronic component
used in the LCD (liquid
crystal device) display of
products such as a notebook PC. The glass sheet
has layers in red, blue and (¥100 million)
green to allow for color
15,000imagery.

13,42013,101 13,366
12,695 12,867

Note: In 1999, operations sales categories werechanged, but totals for each operations are
retroactive to 1998.

(¥ million)(%)(¥ million)

120,000
111,188
106,81810

60,000100,000

12,000Lifestyle ProductsElectronic Components &Information Media Supplies(%)

50,000 4.3

8.5
85,886 85,941

8.0
80,0008

556,165 56,539

4.2
39,03440,00069,6099,000
60,0004
33,40930,0006.7

30,493

6.4
6,000

3.0
40,0003,000

20,0006
5.5

320,00010,0002.5
2.4

01997 1998 1999 2000 2001
Net Sales(DNP Group consolidated accounts)

201997 1998 1999 2000 2001

401997 1998 1999 2000 2001

2

Operating Income/Operating Income Ratio

Net Income/Profit ratio for the current term

(DNP Group consolidated accounts)(DNP Group consolidated accounts)

DNP Organizational ChartDNP Organizational Chart<Printing Business><Beverage Manufacturing >Clients
Products

Products

Products and Services
Products
Products

Dai Nippon Printing Co., Ltd.

Products

Dai Nippon IMS (America) Corp.
Dai Nippon Printing Co., (Hong Kong) Ltd.
DNP (AMERICA), INC.
DNP Denmark A/S
P.T. Dai Nippon Printing Indonesia
P.T. Tien Wah Press Indonesia

HOKKAIDO
COCA-COLA BOTTLING CO., LTD.

Planning, Production, Typesetting, Prepress

Products
Products

Integrated Manufacturing
I.M.S. Dai Nippon Co., Ltd.
F.D.P. Dai Nippon Co., Ltd.
Dai Nippon Printing Kenzai Co., Ltd.
Dai Nippon Printing Technopack Co., Ltd.
Dai Nippon Printing Technopack Kansai Co., Ltd.
Dai Nippon Printing Technopack Yokohama Co., Ltd.
Dai Nippon Printing Fine Electronics Co., Ltd.
DAI NIPPON PRINTING PRECISION DEVICE CO., LTD.
DNP Data Techno Co., Ltd.
DNP Media Create Kansai Co., Ltd.
D.T.FineElectronics Co.,Ltd.
Hokkaido Dai Nippon Printing Co., Ltd.
Tohoku Dai Nippon Printing Co., Ltd.
TOKAI DAI NIPPON PRINTING CO., LTD.
Shikoku Dai Nippon Printing Co., Ltd.
Kyushu Dai Nippon Printing Co., Ltd.

Dai Nippon Art Co., Ltd.
Dai Nippon Total Process BF Co., Ltd.
DNP DIGITALCOM CO., LTD.
DNP Media Create Co., Ltd.
Dai Nippon Total Process Ichigaya Co., Ltd.
Dai Nippon Uni Process Co., Ltd.
Printing

Products

Dai Nippon Offset Co., Ltd.
DNP Graphica Co., Ltd.
Multi Print Co., Ltd.
Bookbinding

Products

Dai Nippon Seihon Co., Ltd.
Dai Nippon Techtas Ichigaya Co., Ltd.
Processing

Products

SP Dai Nippon Co., Ltd.
Dai Nippon Cup Co., Ltd.
Dai Nippon Hoso Co., Ltd.
Dai Nippon Ellio Co., Ltd.

Sagami Yoki Co., Ltd.
DAINIPPON JUSHI CO., LTD.
Dai Nippon Polymer Co., Ltd.

Associated Businesses
Services,etc.

DNP Logistics Co., Ltd.
Dai Nippon Soko Co., Ltd.
DNP Facility Service Co., Ltd.
Dai Nippon Kaihatsu Co., Ltd.
Direc Co., Ltd.
OthersRaw Materials,
Machines, etc.

The Inctec Inc. (Ink: manufacturing and sales)
D.N.K Co., Ltd. (Printing Presses: manufacturing and sales)
DAINIPPON SHOJI CO., LTD. (Paper and others: sales)
DNP Corporation USA (corporation Investment)
DNP Holding (USA) Corporation (corporation Investment)
information on these business sites is included in this report.

3

Message from the Managing Director in Charge of the Environment
Message from the Managing Director in Charge of the Environment

To Our Stakeholders
As a corporation practicing environmental management, we believe it is necessary to gain the
support of the society as a company contributing to the building of a sustainable and recycling-oriented society in the 21st century. This Environmental Report is an important tool to give our stakeholders on the outside concrete details on the content of DNP’s environmental activities. Since theoverall revisions made to the 2000 report, this is our second publication. In the 2001 report, ourbasic editorial policy was to improve both the comprehensiveness and clarity of the information
provided herein.

Revisions to environmental activities

Green purchasing
When purchasing products and services, priority is not just placed on
price and quality, but focus is also
given to the purchase of those goods
which have the least impact on theenvironment.
Independent review
A review by a third party which does
not maintain an invested interest in thecompany. The third party reviews theorganization based on a specific setof standards on behalf of those who
maintain an invested interest in theorganization.

Since the start of the Eco-Report System, the DNP Group’s own unique environmental management system, in 1993, the seventh round of revisions to the DNP Group’s Environmental Targets
was made in April 1998, at which time reduction of waste processing plant utilization rate wasadded to waste reduction targets and reduction of CO2 emissions was included under energy
conservation targets.
In March 2000, the expansion of the development and sales of environmentally conscious
products was added as a new target. In March 2001, as part of our 12th revision, we reviewed all
our environmental targets in response to the Ministry of the Environment’s Environmental
Performance Indicators for Businesses, fiscal 2000 version. In line with this revision, new numerical targets were set regarding the reduction rates and improvement of recycling rates for the
reduction of wastes, the promotion of green purchasing and the reduction of environmental
impact from transports.
Regarding environmental accounting, from fiscal 1993, we began assessing environmental
facilities investment, energy consumption volume and expense, waste emissions and disposal
cost, and recycling sales. From April 1999, we began using the Ministry of the Environment’s
Environmental Reporting Guidelines, fiscal 2000 version, and also began implementing expense,
outcome and target values for improvement as data for decision-making at the managementlevel. Working toward the achievement of our DNP Group’s Environmental Targets, we aim to
strive for continued improvement as a group, checking the effectiveness of our environmental
conservation activities as we go along.

Introduction of an independent review
This report covers the DNP Group’s environmental conservation activities in fiscal 2000 and theresults of those efforts. The contents was reviewed by Shin Nihon & Co., just as it was in fiscal
1999, and found to be in order.
We hope this report provides a better comprehension of the DNP Group’s environmental conservation activities. In closing, we hope you will continue to give us your understanding and cooperation in the future.

Kazuyasu Uchiyama
Chairman, Environmental Committee
Managing Director

4New Topics in Fiscal 2000▲

Development and Sales ofEnvironmentally Conscious
Products

We engaged in promoting the development of environmentally conscious products and strived to increase the sale ofthese products groupwide by 10% compared to the previous year. In fiscal 2000, the following environmentally conscious products were developed. This represents JPY63.0 billion in products or 2.1 times over fiscal 1999.
1. Materials for credit cards that do not emit harmful substances when incinerated.
2. Invoice slips used in shipping that do not leave traces of glue when removed from wrapping
paper or cardboard boxes.
3. Event tickets created from non-pulp kenaf and printed with soybean oil ink.
4. Environmentally conscious polyester-coated decorative steel sheeting (a non-chloroethylene product)
5. Recyclable ceramic vapor deposition paper containers (do not use aluminum foil)
6. Soybean oil ink that does not contain any volatile organic compounds (VOC)▲

Environmental Education
using IT Technology

From April 2000, an environmental educational program was started via intranet for the DNP Group’s
employees that number around 35,000. The use of intranet is an effective method for environmental
education as it allows workers to take courses anytime and anyplace, as long as they have accessto a computer. Entitled “Environmental Issues and Businesses,” the program covers a wide range of
topics from basic environmental matters to proposing environmentally conscious products to customers. In fiscal 2000, around 3,200 employees completed this program.

▲

ISO14001 Certification

In July 2000, the Okayama plant was the fourth DNP Group site to obtain certification. By fiscal
2005, management aims to have 30 sites certified under ISO environmental management standards.

Non-pulp kenaf
Also known as a white hibiscus, kenaf is a memberof the Mallow or Malvaceae family, hibiscus genus,
and grows year-round. A fast growing flora, theplant can grow up to 3-5 meters in 4 to 5 months.

Soybean oil ink
A printing ink that utilizes soybean oil as its main
ingredient. When used in the printing process, theamount of VOC is less than that of other inks that use
petroleum-based solvents. Soybean oil ink maintains
superior deinking and biodegradation properties.

Volatile Organic Compounds (VOC)
Refers to commonly used solvents that easily giveoff vapor or gases.

■ Newspaper Articles on the DNP Group’s Achievements (April 2000 - March 2001)
Date

Newspaper

Content

Begin supply of an environmentally conscious credit card for JR East. The card’s base material is made from a PET-G (amorphous co-polyester) resin, which is similar to chloroethylene
Nikkan Kogyo Shimbun resin, but does not emit chlorine gas when incinerated.

April 21, 2000 Nikkei Business Daily

May 10 Nihon Keizai Shimbun

Development of shipping slips that can be cleanly removed and do not leave traces of glue on wrapping paper or cardboard. This makes it possible to recycle wrapping paper and cardboard.

Nikkei Business Daily
Nikkan Kogyo Shimbun

May 12 Japan Industrial Journal
May 17 Nihon Keizai Shimbun Established the DNP Environmental Committee. This was done following the review of the environmental management system originally derived primarily for the company’s manufacturing
division. Coverage was expanded to include DNP’s planning and R&D divisions and its affiliated companies. The committee is chaired by the managing director in charge of the environment.

June 26 Nikkei Business Daily

Event tickets for Japan Expo in Fukushima 2001-- Beautiful Utsukushima Future Expo in Fukushima were made from 100% non- pulp kenaf paper and printed with soybean oil ink.

Nikkan Kogyo Shimbun

July 4 Japan Industrial Journal
July 12 Japan Industrial Journal While using proprietary technologies to print decorative patterns directly onto to steel sheets, DNP also developed Clerio, a decorative, steel sheeting coated with a non-chloroethylene polyJuly 13 Nikkei Business Daily ester that is environmentally friendly.
Chemical Daily

July 21 Japan Industrial Journal Developed a paper container using a ceramic (silicon oxide) vapor deposition type solution which is as capable of shutting out oxygen as aluminum coating. (Containers coated with aluminum are difficult to recycle.)

July 28 Nihon Keizai Shimbun
August 2 Nikkei Business Daily

Aim to achieve zero emissions at all 10 domestic plants by fiscal 2001.
Okayama plant obtains ISO14001 certification for its decorative interiors operations.

Japan Industrial Journal

August 9 Nikkei Business Daily
September 4 Nikkei Business Daily

Joint development of a food container with Kikkoman using LCA.
Speeds up development of environmentally conscious, “green products”. Begins to target 10% annual sales growth of in-house developed products that satisfy certain standards for eightitems, including the use of recycled materials and conservation of raw materials.

September 14 Nikkei Business Daily

Implementing environmental impact assessment using LCA for products such as paper containers and PET bottles sold to food and daily commodity manufacturers from 1996.
Ranked 13th in fiscal 2000 for its environment-related investments. Did not enter the ranking in fiscal 1999.

September 18 Nikkei Business Daily

Jointly developed a soybean oil ink that contains absolutely no volatile organic compounds with DaiNippon Ink and Chemicals. Developed a technology making high quality commercial
printing of catalogs and calendars possible.

September 20 Nikkei Business Daily

Environmental accounting report for fiscal 1999 covered 43 sites including key domestic affiliated companies. Environmental conservation cost was around JPY12.8 billion, of which about
JPY2.1 billion represented facilities investment.

September 28 Nikkei Business Daily

Developed an environment education system using intranet. Reduced the time and cost related to holding lectures at each business site, while at the same time fully providing employees withknowledge about environmental conservation, related management policies and targets.

October 8 Nihon Keizai Shimbun Plan an annual 10% increase in sales of green products, such as printed matter and packaging made of recycled materials that meet in-house standards.
December 5 Nikkei Business Daily DNP ranked 31st among manufacturers in the 4th environmental management survey.
December 25 Japan Industrial Journal Full-scale involvement in a project to recycle sake (Japanese rice wine) paper containers, in cooperation with a group from the package making industry and a private association.
February 5, 2001 Nikkan Kogyo Shimbun Introduces a new style of sales. Proposes product packages that minimize environmental impact through assessment of packaging using LCA.
March 19 Yomiuri Shimbun
Create a rooftop garden consisting mainly of evergreens (A roof garden was first established at the Ichigaya plant in 1990.)
5

New Topics in Fiscal 2000▲

Launch of new environmen- The DNP Environmental Committee was started in March 2000. At this time the sales, planning and R&D
divisions were added to an environmental management system originally structured for the manufacturing
tal management system
division. With this, DNP commenced groupwide participation in environmental conservation activities.

The DNP Group’s Basic Environmental Philosophy
The DNP Group’s Basic Environmental Philosophy

The DNP Group’s environmental activities
began in earnest in 1972, with the establishment of the Environment Department at Dai
Nippon Printing Co., Ltd. Since then, we haveendeavored to reduce industrial waste andsave energy, as well as develop products
from an environmental protection perspective.
In 1992, the entire DNP Group embraced
environmental conservation activities, declaring its intention to strive to protect the global
environment and use resources effectively,
and making this part of its Codes of Conduct.
Our environmental management system,
which started in the manufacturing division,
experienced a major change in March 2000.
The DNP Group’s Environmental Committee
was established, and now the extensive management system includes the sales, planningand R&D divisions in addition to the manufacturing divisions.

The DNP Group’s Environmental
Declaration“We will make every effort to protect theprosperity and future of the human raceby protecting the environment and using
resources effectively.”
Today we face the serious issue of how toprotect the global environment. Due to thedramatic economic growth of recent years,
our ecosystem is being destroyed throughthe depletion of the ozone layer, global
warming, increasing volumes of industrial
waste, and the careless consumption of natural resources. As a result, our earth’s circulatory system is beginning to be affected.
These problems, together with the rapid
depletion of natural resources, should be asource of concern, since they threaten ourdaily life and may even stifle economic
growth. We will act aggressively in addressing environmental issues, using our comprehensive technological resources to safeguard
the prosperity and future of the human race.
(Excerpt from the DNP Group Codes of Conduct)

DNP Group’s Environmental Management Structure(As of End of March 2001)
President
The DNP Group's Environmental Committee

Promotion OfficeEnvironmental Committees
in each Business Division GroupPRTR(Pollutant Release andTransfer Register)
The register and disclosure of chemical substances emitted into theenvironment and thought
to be possible pollutantsor the transfer of waste.
Herein the term PRTR isused for the reduction of
the release and transfer ofclass 1 designated chemical substances in accordance with the Law
Concerning Reporting,etc., of Releases to theEnvironment of SpecificChemical Substances andPromoting Improvements
in Management.

6

Promotion Office

Chairman: Managing Director of the Technical Division and the Environment &Product Liability Department
Members: Directors of the basic business divisions in the main office9

Director of Promotion Office:Manager of Environment & Product Liability Department
Deputy Director of Promotion Office: Technical Division Manager
Promotion Office Members:
managers of the basic business divisions in headquarters,
members of the Environment & Product Liability
Department, and members of the Technical Division

32

Chairman: Business Division Managers
Members: Departmental managers in business divisions
Presidents and departmental managers of manufacturing affiliates

129

Manager: full-time or others
Members: departmental managers in business divisions

136

Technical and Manufacturing Group

Environmentally Conscious Products
Development GroupRegional Measures Group

Environmental Conservation and PRTR Group

Office and Work Environment Group

Industrial Waste Reduction Group

441

Energy Conservation GroupThe DNP Group’s Environmental Policies
The DNP Group’s Environmental Policies and Environmental Targets

The DNP Group’s efforts are directed towards the continuous prosperity of a world economy with limited resources and forthe development of a society that recirculates resources. The DNP Group is making every effort to minimize the impact ourbusiness operations have on the environment, and this includes compliance with environmental laws and regulations aswell as recognizing the relationship that each of our business activities has to the environment.
(1) Each member of the DNP Group establishes and periodicallyreviews its own environmental policies and environmental targets, and puts into effect continuous improvement of its activities and the prevention of environmental pollution.
(2) For all construction projects, and before designing and commissioning new facilities, we carry out a full and detailed environmental survey to assess the impact that the project will have on
the environment, to make proper efforts to protect the environment.
(3) When carrying out research, development and design for a new
product, we consider the impact of the product on the environment throughout its life cycle, including the ordering of raw
materials, production, distribution, use, and disposal. We give
special consideration to energy conservation, resource conservation, and reducing the use of harmful chemicals.

(4) When purchasing raw materials, stationery, and equipment, wechoose items that are ecologically-friendly and easy to recycle.
(5) In manufacturing a product, we aim to comply with environmental laws and regulations, and moreover we set up more stringent
standards to reduce the emissions of pollutants into the air,watershed, and soil, and to prevent unpleasant odors, noise,
vibration, and land subsidence. We are constantly improving
facilities, techniques and manufacturing processes to promote
the targets of energy conservation, resource conservation andthe reduction of industrial waste.
(6) When generating waste from business operations, we strive toachieve zero emissions by separating and recycling waste asmuch as possible.

The DNP Group’s Environmental Targets
Targets for Fiscal 2001

Achievements

Development and Sales of Environmentally Conscious Products• Increase the sales of environmentally conscious products by 10% over the last fiscal year.

Sales of environmentally conscious products to our customers in fiscal 2000 amounted
to JPY63.0 billion. By taking up the sale of environmentally conscious products, sales
improved 110% over the JPY29.9billion recorded in fiscal 1999. This far exceeds management’s target of a 10% yearly increase in sales of environmentally conscious products.

Reduction of Industrial Waste• Reduce waste generation per production by 50% over 1991 levels by fiscal 2001.
• Achieve zero emissions (the zero generation of industrial waste) at 10 business sites andreach a final waste disposal rate (final waste disposal volume divided by total waste output) of 5% by fiscal 2001.
• Establish internal industrial waste standards that are more stringent than mandatory
standards, and establish appropriate processing and self-management practices.

In fiscal 2000, waste generation per production was 0.322, 51.5% compared to fiscal
1999. This nearly meets the 50% reduction target.
During the term, 4 sites accomplished zero emissions (Ichigaya Plant’s Kuki operations, Gotanda, Ichigaya Plant’s Akabane operations and Hokkaido). Meanwhile, the
DNP Group’s overall achieved final waste disposal rate was 5.1%, meaning that itachieved its set target a year earlier than planned.
Implement earlier targets for the observation of waste processors and dioxin regulations
as part of internal standards that are more stringent than legal compliance.

Energy Conservation• Reduce energy consumption per production by 15% and CO2 emissions per production
by 20% of 1990 levels by fiscal 2010.
• Establish internal standards that are more stringent than those set out in the Law concerning the Rational Use of Energy, and institute rational energy use and self-management.

In fiscal 2000, energy consumption per production was 4.93. This is 109.6% compared to fiscal
1990. This was below its target of 92.5%. CO2 emissions per production was 177, or 96.9% compared to fiscal 1990. While this was a reduction year-on-year, the company did not meet its targets.
Created an energy management manual and implemented management mainly at its
class-1 energy management designated plants, as a part of internal standards that are
more stringent than the Law concerning the Rational Use of Energy.

Environmental Conservation• Each site must set up voluntary standards, taking the actual environmental impact into consideration. Such voluntary standards must be more stringent than regulation standards.

Internal standards were established on air pollution for 24 sites, for water quality at
21 sites, for noise at 20 sites, and vibration at 18 sites. This means standards for a
total of 138 items and sites were created.

PRTR• Identify chemicals that are specified as class-1 chemicals in PRTR and reduce therelease and transport volumes by 50% of 1998 levels by fiscal 2001.

Identify 354 class-1 designated chemical substances stipulated under law in fiscal
2000. Release and transfer results were reduced 13% compared to the 174 chemical
substances in fiscal 1998.

Office Environmental Conservation Targets• Maintain a waste paper separation and collection rate of 70% or higher for recyclable
paper and 65% for municipal waste.
• Carry out a half-yearly assessment of recyclable paper.

Separation and collection of waste paper was conducted at 13 sites. The collection
rate was 65.3% compared to waste generation, slightly higher than targets. During
the 1st half of fiscal 2000, eco-products were identified at 11 sites and at 13 sites in
the 2nd half.

Green Purchasing• Establish a database of harmful chemicals used in materials by fiscal 2001.
• Promote the use of environmentally conscious office equipment and stationery.

Database system under the development based on fiscal 2000 data.
A 94% shift to recycled paper used for copier and printer paper. 34% of office equipment environmentally friendly and 61% of all employee uniforms bear the Eco-Mark.

Environmental Management System• Obtain ISO14001 certification at 15 business sites by fiscal 2001.
• Carry out an Eco-Audit at all sites.

In April 2000, DNP Facility Service and in July the Decorative Interiors Operations of the
Okayama plant acquired certification. Furthermore, in May 2001, Tokai Dai Nippon Printing,acquired certification. This made a total of five sites which acquired ISO certification.
Eco-audits were conducted at all sites.

Prepared: December 18, 1992
Tenth revision: March 21, 2000

Site
This is the minimum management unit of the DNP Group’s environmental management system.

Eco-audit
See page 25.

7Material Flow Charts for the DNP Group’s Main Businesses (By Division)

Printing substrate(paper, plastic film)● Information Media Division
Plate-making
film

Development
and fixing
chemicals●Lifestyle Products Plate-making
film
Division

Printing
platesDevelopment
chemicals

Printing ink

Processing
Processing inaccordance withcustomer
specifications

Printing substrate(paper)EnergyElectricity
Gas
Water

Printing
plate production
process

Printing

Used plates
or film

Used development
and fixing chemicals

Useddevelopment
chemicals

Used printing
platesDiscardedmaterial

Used plates
or film

Inferior quality
printing paper

Defective
Used printing
printing goods
platesValuables
Unusable items (items that can not besold as products) derived from the
manufacturing process that can besold.
Letterpress printing
The printing of letters. Ink is placed on
the raised surface and then pressed
onto paper.
Offset printing
A printing process that takes advantage of the fact that water and oil
repel one another. The plate retains
water. The plate is divided into the
non-image area that repels oil-based
ink and the image area that receives
oil-based ink. The ink is then transferred to a “rubber blanket” (the off
process) and then transferred topaper (the set process). This is how
the method derived its name.
Gravure printing
This printing method uses a plate withan engraved surface. The surface ismetallic owing to chemical treatment
or some physical trait. Ink is poured
into the channels or sunken areas.
Excess ink is then removed, pressure
is applied and the ink remaining in thechannels is then transferred to paper.

The main raw material used by this businessdivision is paper. Plastic films are also used asa raw material. Operations are basically divided
into three major categories, “plate-making,” theproduction of plates used in printing, “printing”
includes such processes as letterpress, offset
and photo-gravure printing, and “processing”
which consists of the inserting of postcards andbinding.
Environmental facilities and devices used in
the plate-making process include a device todevelop and fix photographic film for platemaking, a device to “burn” a design onto theplate for offset printing, a device to burn adesign onto a plate for gravure printing, and a
device to coat the plate in copper or chrome foruse in gravure printing. These devices require
the use of chemicals (development and fixing
chemicals, etching solvent). Once used thesechemicals are disposed of as used acid or
alkaline. The DNP Group consigns the disposalof these wastes to an outside company. For
those sites that have a high volume of such
wastes, disposal is made using on-site wastewater disposal facilities. For those unusable
items, such as used photographic film forplates, they are disposed of as valuables, collected by companies dealing in the recycling ofsilver.

Empty
ink cans

Waste ink

Product

Used
adhesives

Used coating

Used plastic

Product●Electronic Components & Information Media Supplies Division
Development
and fixing
chemicals

Etchingchemicals

Used bundling
stringProducts

Empty
ink cans

Metal plates
Glass plates

Creating apattern

Coating

Exposure

Development

Etching

Coating

Printing

Development

Etching

Coating

Exposure

Development

Shadowmasks
Lead frames
Photomasks

Process
inspection

Color filters

Plastic plates
Used paper
Waste plastics
Used acid and alkaline
Scrap metal
Waste oil(all include valuables)●Information Media Division

Processing
Processing inaccordance withcustomer
specifications

Discardedmaterial

Used etchingchemicalsResin(pellets)

Adhesives

Printing

Raw materials

Packagepaper

Coating

Printing ink

Plate-making
film

Used paper
Waste plastics
Used acid and alkaline
Scrap metal(all include valuables)

8

Etchingchemicals

Used developing
and fixing chemicals

Water

Plate-making

Printing
platesPlate-making
Printing
plate production
process

EnergyElectricity
Gas

Bundling
stringDevelopment
and fixing
chemicals

In the printing process, the printing machine
itself is a facility designated under laws andregulations on noise and vibrations. Electricity
is used to power this facility and gas is used asa heat source for drying and cooling processes. The unusable items generated in the printing process consist mainly of defective parts
that are a result of adjusting colors whenswitching to the printing of different items orwhen changing printing substarts. When paper
is used as a raw material, it is recycled backinto a raw material for manufacturing recycled
paper. Other waste includes ink cans.
Processing does not utilize any facilities designated under the environmental laws and regulations. The environmental impact consists ofelectricity consumption, the generation of unusable items, and noise. The creation of excess
paper arises when cutting off unneeded portions during the binding process for books andmagazines. This is unavoidable and therefore acertain amount of unusable items is produced.
However, this is turned back into recycled
paper.

Metal molds

EnergyElectricity
Gas

Shaping

Projection TV screens
Used acid

Used alkaline

Water●Lifestyle Products Division
The products in this division are mainly produced from paper and plastic films.
The processes in this division are largely
divided into three categories. This division differs widely from the Information Media Divisionowing to the fact that it mainly uses gravure
printing. In addition, the processes used in thisdivision not only include cutting, packaging(wrapping), molding, but also coating and lamination.
The environmental facilities are the same as
those in the Information Media Division.
In gravure printing, coating and laminatingprocesses are used. For this reason, inks containing organic solvents are utilized. The vaporization and recycling of inks containing organic
solvents is consigned to an outside party.
Furthermore, this division requires the use ofvarious plastics, paper, aluminum coating andlamination from the standpoint of protecting
and preserving the product being wrapped.
Because the material recycling is difficult, weachieve heat recovery by installing on-siteincinerators and consign an outside party forsolid fuel.

Discarded material
used plastics,(metals
and glass)●Electronic Components &Information Media Supplies
Division
This division applies the use of film andplate-making technologies. The key raw materials used here are metals, glass and plastics(resin).
Shadowmasks and lead frames use a metal
plate as their raw material. After coating with aphotographic sensitive resin, the plate is
exposed to light and developed, and then the
etching process takes place using acid.
Photomasks are made using a glass plate
which is coated with resin and printed by using
an electron beam. The electron beam draws animage onto the plate after which it is developed
and then etched.
A color filter is manufactured by coating a
glass plate with a colored photographic sensitive resin, exposing it to light, and developing in
the order of red, blue and green.
A lenticular lens for projection TV screens ismade by extrusion using a metal mold. In contrast a fresnel lens is created by using a metal
mold and then shaped using a UV hardening
resin or a FRTP resin.
A large amount of acid is used in the manufacturing of shadowmasks and lead frames
owing to the etching process. Neutralization isdone on site, as is disposal via wastewater
treatment facilities.
In this division, raw materials that become
waste and are not usable as product are recycled.

Material recycling
The collection of waste for reuse as raw
materials. Plastics from plastics, paper
from paper, those materials that can bereused as materials just the way theyare. This includes materials that arereused after changing their physical substance using some chemical process.

Shadowmask
An electronic component used in monitors such as TVs and desktop PCs that
contain cathode-ray tubes (CRTs). A
shadow mask is a metal plate with manyholes in it.

Lead frame
A semiconductor chip connector used toconnect the chip with external parts.

Photomask
Used in IC or LSI production, the photomask is a substrate used when creating minute circuit patterns on a siliconwafer.

Color filter
An electronic component used in the
LCD (liquid crystal device) display of
products such as a notebook PC. The
glass sheet has layers in red, blue andgreen to allow for color imagery.

Lenticular lens
One lens that is a part of a projection TV
screen. This lens mainly diffuses elements horizontally.

Fresnel lens
One lens that is a part of a projection TV
screen. This lens works on a nearly flat
sheet, much in the same way as a convex lens.

9

Material Flow Charts for the DNP Group’s Main Businesses

Material Flow Charts for the DNP Group’s Main Businesses

The following shows key raw materials, energy and major waste used or generated in processing carriedout by the DNP Group’ various divisions. The products manufactured by each division are shown on
page 2 in the DNP summary.

DNP’s Unique Environmental Management System “Eco-Report System”

DNP Group Codes of Conduct
Society

The DNP Group's Environmental
Committee

DNP Group Environmental Targets

Environmental Committees
in each Operations Group

Environmental trends
Market trends

Operations and Group environmental targets

Administrative trends
Environmental policies of each site
Environmental organization and chain of command

Environmental Annual Report

ActionPlan

Implementation

Voluntary
inspection

Do

Site Eco-Report

Re-establishmentof targets

Voluntary
target-setting(published annually)

DNP Group Eco-Report(published bi-annually: April and October)

Check
Internal environmental audit (Eco-Audit)
autonomous, environmentally conscious plants

DNP’s Unique Environmental Management System “ Eco-Report System”

The Eco-Report System

Envi r onm e n t a l Gu i d e l i n e s

DNP’s Unique Environmental Management System “ Eco-Report System”

The Eco-Report system was created to help achieve the DNP Group’s environmental targets. It is the
DNP Group’s own unique environmental management system and the base of the Group’s environmental
activities.

DNP’s Unique Environmental Management System (EMS)● Establishing environmental
policies and targets● Achieving autonomous,environmentally conscious plants

The DNP Group’s environmental policies andtargets are decided by the DNP Group’s
Environmental Committee at its headquarters andreviewed on a regular basis in light of global andcustomer trends, and the status of companywide
activities.
The policies and targets specified herein are
widely communicated throughout the company
from the headquarters’ promotion office to theenvironmental committee and promotion office ofeach business.
The environmental committee of each operations then establishes its own policies and targets
based on those passed down from the headquarters and in consideration of business trends. It
then carries out specific activities based on eachdivision’s polices and targets.

The DNP Group uses three tools, its site ecoreports, the DNP Group eco-report and environmental guidelines. Once every six months PDCA
(Plan➝Do➝Check➝Act) practices are carriedout. This helps each site become more independent in conducting management and controlling
environmentally conscious procedures and aiming
toward the achievement of autonomous, environmentally conscious plants.

● Implementing activities at the site
When implementing specific activities, each site
conducts environmental management activities as
stipulated in the DNP Group’s environmental
guidelines. Activities are recorded monthly in asite eco-report. On a six-month basis, results areassessed and targets are set for the next sixmonth period. In addition, site activities are audited once a year to ascertain if they comply withlegal regulations and to see that they promote theachievement of targets for the overall Group. Thisis done to ensure the improvement of environmental management activities.

● Eco-Report System
In 1972, the DNP Group established an
Environment Department and began full-fledged
environmental management activities. In 1993, theGroup developed its own eco-report system aspart of its unique environmental management system. The system initially covered 23 sites nationwide. Today the system has been expanded toencompass 53 sites. Over this time, management
methods have continually been improved and thecontent of activities broadened.
The DNP Group continues to implement thissystem and expand it in line with the changing
times. This allows all business divisions of the DNPGroup to have access to and share the same environmental information. It also achieves uniform
standards for environmental management activities and aims to improve such actions throughout
the Group.

● Flow for the disclosure of environmental information

10

Environmental Guidelines

Site Eco-Report

DNP Group Eco-Report

This publication describes various standards and guidelines (such as industrial
waste processing standards, energysaving standards, voluntary inspection
standards for environmental protection,
standards for office waste sorting andcollection, and Eco-Audit checklists) for
establishing the Eco-Report System.

This report serves as a registry of EcoPlan Activities. Each DNP business sitemust submit it twice a year (April andOctober)

Based on the social movements concerning environmental issues, the DNPGroup’s semiannual activity policies, and“Site Eco-Reports,” the Promotion Officeof the DNP Group Environmental
Committee (Environment & Product
Liability Department) publishes a summary of all the environmental activities ofthe entire DNP Group twice a year (April
and October).

Meanwhile, the headquarters’ promotion officepublishes a biannual DNP Group Eco-Report covering companywide activities, based on changes
in social environmental trends and the site ecoreports from each business division. This is theGroup’s white paper on environmental activities.
Following publication of the report, management
goes out to each site to resolve problems at a particular site or the positioning of sites within theGroup for the purpose of mutually understanding
environmental information and pinpointing important issues that exist among business divisions.
The paper also supports the sharing of information
and ascertaining future key topics. Furthermore,
once a year, this Environmental Report is published to inform our stakeholders of our environmental management activities over the past year.

11

Development and Sales of Environmentally Conscious Products
Development and Sales of Environmentally Conscious Products

At the DNP Group, our guidelines for the development and sales of environmentally conscious products
is based on the Green Purchasing Principles (established November 7, 1996) by the Green Purchasing
Network. In fiscal 2000, we recorded JPY63.0 billion in sales of environmentally conscious products.

<Development guidelines forenvironmentally conscious products>
1. Reduction of environmental pollutants– Exclusion of ozone depleting substances, heavy
metals and organic chlorine compounds.
Controlling the release of such substances as
greenhouse gases and NOx into the environment by using LCA.
<Example>• Products do not contain organic solvents• Use of raw materials that do not containchlorine• Use of soybean oil ink in printing• Use of raw materials that do not containheavy metals such as chrome or lead.

– Consider the disassembly, washing or refilling ofa portion or parts of a product and establish asystem for the collection and reuse of products
which is easy to use for customers.
<Example>• Refill bottles<Products>• Stand pouch refills (page 15)

6. Recyclable– Use materials that will make products easy torecycle. A design that makes it simple to separate, disassemble or divide up. A collection andrecycling system easy for customers to use.
<Example><Products>• Products with simplified materials• Prearmour, IB film, PET-G card, environmentally conscious ink (page 13)<Products>

2. Conservation of resources and energy– Control the use of metallic resources and fossil
fuels<Example>• Environmentally conscious calendars,
e-videos, POP (eco cut out) (page 15)

7. Use of recycled materials– Wide use of materials and parts that were collected and recycled• Lighter weight products<Example><Products>• Use of 100% recycled paper in printed
material• Products which use paper as insulationmaterial• Products using recycled plastic• PET bottles: in-line forming sterilized fillingsystem, spouch (pages 13-14)

3. Procuring sustainable resources– Use of forest resources and other resources<Example>• Products that use paper not made fromwood pulp• Shift from the use of plastic to paper inproducts<Products>• HI-CUP (insulated cup), P-DISH (paper
trays), (page 14)

4. Making long-term use possible– Consider easy to repair or replace parts, long
maintenance and repair periods, and expanded
functions<Example>• Cards that displays information that can bechanged<Products>• Laser-type, heat-sensitive rewritable cards(page 14)

12

5. Reusable<Products>• Magazines and pamphlets made from
100% recycled paper (page 15)

8. Easy disposal– Consideration given to minimize impact on incinerator facilities and landfills<Example>• Products that can easily be taken apartand their materials separated• Product that use biodegradable plastic<Products>• Bag in Box, Bag in Carton, stretch labels(page 15)

Development and Sales of Environmentally Conscious Products

1.Reduction of environmental pollutants■ Prearmour [a VOC countermeasure]“Sick houses” have recently become an issue. Illness iscaused by harsh odors or allergic reactions which usuallyoccur when people move into new houses. Volatile Organic
Compounds (VOCs) have been cited as one reason for thisailment. The Ministry of Health, Labour and Welfare designated 12 substances (of which guidelines are currently being
proposed for 4) and released guideline values for density
regulations regarding indoor air contamination. DNP has
developed and sells “prearmour,” an environmentally conscious decorative paneling that does not contain any of the
12 designated VOCs.
Prearmour utilizes a proprietary coating technology basedon an electronic beam curing technology. This product does
not use any of the 12 VOCs designated by the ministry. The
product is unique in that it has a rigid surface. This solves the
problem of scratches to the surface during processing or during transport, a problem that occurred with conventional
types of color panels. In addition, for the purpose of design
and to cover up the uneven surface of the paneling, a designis printed onto the surface of the paneling. As a result, compared to conventional decorative panels, the level of design
freedom is much higher.
■ IB Films [Eliminating organic chlorine compounds]
We have developed a barrier film for packaging that is freeof chlorinous resin, which is one of the sources of dioxin emissions. This product has been used for food packages that
require barriers and liquid soups, and for small bags for liquidseasoning.
■ PET-G cards [Eliminating organic chlorine compounds]
Conventional plastic cards include PVC in the material,
which emits chlorinous gas when burned improperly.
Our newly-developed plastic cards are made from a newmaterial, “PET-G” (amorphous co-polyester). The “PET-G
Cards” break down into water and CO2 when incinerated withno emission of chlorinous gases. Newly-developed IC cards
made from anti-heat PET-G have been used for electronic tollcollection (ETC) on highways.
■ Environmentally conscious ink [a VOC countermeasure]The key ingredient for conventional types of printing ink is apetroleum solvent. However, owing to the heightened interestin environmental issues, there is a growing desire even within
the printing industry itself to find an environmentally conscious alternative to petroleum solvents. The DNP Group has
developed and sells such inks, including its soybean oil ink,
aroma-free ink and water-soluble ink.

Prearmour

IB Film

PET-G cards

Soybean oil ink

Water-soluble gravure ink

2. Conservation of resources and energy■ PET Bottles: In-line Forming Sterilized Filling System[Reduction of energy related to transport andbottle weight]
The PET bottle in-line forming sterilized filling system
reduces environmental impact using LCA (life cycle assessment). LCA is analyzes and assesses a product’s impact on
the environment over a lifecycle. It is a comprehensive
assessment system used for the purpose of reducing environmental impact.

PET Bottles

13

Development and Sales of Environmentally Conscious Products

Preform

Sterilized filing system line

Spouch®

The system begins by analyzing and assessing direct
stages such as package manufacturing, filling and packaging. It also surveys, analyzes and assesses the selection of
raw materials all the way to transport and recycling. By doing
this, a objective view on the environmental impact of a product can be obtained.
In general PET bottles for beverages are usually molded by
the PET bottle manufacturer and then shipped to the beverage maker where they are filled. PET bottles are formed bymelting resins in an injection-molding machine. Pressure isapplied and the resin is then poured into a metal mold. It isthen cooled to form a preformed bottle as shown in the picture to the left. The preformed bottle is then heated and put
into a mold where air is inserted to blow the bottle into shape.
DNP delivers PET bottles in this preformed condition. The
beverage maker then uses the in-line forming sterilized filingsystem, developed and sold by DNP, to form bottles and thenfill them. This allows for a wide curtailment of transportation
costs and reduces CO2 and NOx emissions. In addition byusing the unique sterilized filling technology, bottles can be
filled at room temperature. This results in a vast reduction inbottle weight compared to conventional types.
■ Spouch [Reduction of manufacturing energy]
Beverage pouches have a spout attached. The cap on the
spout makes it possible to open and close the container multiple times, therefore giving greater portability than the conventional packaging. As a result of LCA analysis, it was foundthat the amount of energy consumed and emissions into theatmosphere at the time of packaging and manufacturing wereminimal. This indicates that our spouches are environmentallyconscious and that we could also handle the manufacturingof those pouches that required disinfecting.

3. Procuring sustainable resources■ HI-Cup(Heat-insulated Paper Cups) [Shift fromplastics to paper]
The two layers-the main paper cup and outer paper sleeveprovide heat insulation. They can be compressed to reducevolume after use and can be made from recycled paper.

HI-CUP

P-DISH■ P-DISH (Paper Trays ) [Shift from plastics to paper]
Paper trays are suitable for prepared foods and frozen
foods. Patterns can be printed on the inside and outside of
the trays and they are more esthetically pleasing than plastic
trays. They can be folded to reduce volume after use and canbe made from recycled paper. Some of our paper trays aremicrowavable.

4. Making long-term use possible

Laser-type, heat-sensitive rewritable card14

■ Laser-type, heat-sensitive rewritable card
Conventionally rewritable cards have a heat-sensitive head
which the printer comes in contact with to rewrite the card.
For this reason the durability of the card is limited. The number of times the card can be rewritten varies between 300 to
500 times. However with the laser-type, heat-sensitive
rewritable card, a laser is used and there is no direct contact
with the printer. Because of this, the card is more durable.
Compared to conventional cards, the laser-type card can be
rewritten more than 4,000 times, nearly 10 times that of conventional cards.

Development and Sales of Environmentally Conscious Products

5. Reusable■ Stand pouch refills [Contributing to a systempromoting the reuse of resources]
We have improved the mechanisms to open and pour froma new type of stand pouch refill. After refilling the original bottle, the empty pouch can be flattened to reduce the volume ofwaste.

Stand pouch refills

6. Recyclable■ Environmentally Conscious Calendars [Making it
unnecessary to separate and divide parts]
These are environmentally conscious calendars which are
made from recycled paper and printed with ink with lower
environmental impact. They have no metal or plastic parts.
■ e-video [use of easy-to-recycle materials]
By using polystyrene which is a recyclable material, theproduct does not emit dioxin. In addition, a “no-metal e-video”
has been developed. The company plans to develop further
proposals.

Environmentally Conscious Calendars e-vdeo■ POP (eco cut out) [Making it unnecessary to separate and divide parts]
These POPs do not use any cardboard. The POP is madecompletely of cardboard. It does not use any plywood or
metal plates such as in conventional models. Therefore there
is no need to disassemble them when throwing them away.
eco cut out

7. Use of recycled materials■ Magazines and pamphlets made from 100% recycled paper
The DNP Group is recommending the use of recycled
paper that contains 100% used paper. Previously, during therecycling process there were a few problems such as a deterioration in the strength of the paper because the pulp wasdamaged during recycling or a brownish tint to the paper due
to the inability to completely de-ink waste paper. For this reason, most recycled paper only contains 40-60% used paper.
However, DNP’s recycled paper is 100% used paper andwas developed jointly with Oji Paper Co., Ltd. The paper isused for many purposes.

Magazines and pamphlets made from 100% recycled paper

8. Easy disposal■ Bag in Box (BIB) /Bag in Carton (BIC)[Easy to disassemble]
These containers are made by attaching two layers together: a plastic inner bag and a paper outer box. They can befolded separately before and after use, saving greatly on storage space. They can be easily separated after use for recycling.
■ Stretch Labels [Easy to disassemble]
These labels are not glued to the bottles, therefore they areeasy to peel off after use. They can be separated by weight
when used for PET bottles. Compared with other labels,
stretch labels are more energy- and cost-efficient, and easier
to design.

Bag in Box
Bag in Carton

Stretch Labels

15

Environmental Conservation Activities

Each site must set up voluntary standards, taking actual environmental impacts into consideration.
Such standards must be stricter than legally-binding standards.

Key Measures
The DNP Group uses its eco-report system
to prevent seven typical types of pollution
affecting the air or water, or related to noise,
vibration or foul odors. The group is also
involved in preserving the ozone layer.
DNP not only complies with the laws related to these areas, but aims to set voluntarystandards which exceed legal mandates
when considering the construction of a newplant site and plans the implementation of thestrict management of inspection standards
for its facilities.

Steps in Establishing Voluntary Standards
Check for applicability of related regulations
Applicable

Check for compliancewith regulations
Not compliant
CompliantDevise plans forachieving compliance

Implement and check

Maintain and confirm compliance;
Check again for non-applicability

Measures to battle air pollutants<Reducing flue gas from boilers or solvents>
At each business site, incinerator facilities
such as boilers are used. These emit NOx,
SOx and dust into the atmosphere. Emission
levels are checked on a regular basis andmeasures are taken to find alternative fuelsources with less environmental impact or
improvements are made to facilities or operating procedures to lower the level of emissions. Furthermore, vehicles going in and outof the plant are asked to turn off their engines
in the parking lot to stop pollution from idling.
From the standpoint of preventing foulodors, gas emissions from the printing
process are decomposed using an incinerator or collected and reused by gas treatment
equipment using the absorption process. Forprocesses using solvents, DNP is shifting tosolvents that have a smaller impact on theenvironment or to water-soluble materials.
<Measures to battle harmful air pollutants>
In 1996, trichloroethylene was added to alist for mandatory measurements under the
Air Pollution Control Law, followed by tetrachloroethylene in 1997. Because of this, the
DNP Group terminated the use of both chemicals. Currently, dichloroethane is used towash gravure plates. Up until recently a cool-Not applicable

Manage and review
voluntary standards

Produce voluntary standards

ing and coagulation device was installed toreduce emissions. However, in May 2000, theTsuruse plant, which had used dichloroethane,installed a washing device and consequently
stopped using the chemical. Improvements
are being made at other sites still using thechemical and efforts are being made to stop
usage throughout the group.

Measure to battle water pollution
In printing, water is widely used for various
purposes such as in development, washingfacilities and plating facilities, in addition to
the numerous cooling processes involved.
DNP is obviously working to recycle wastewater for the effective use of water resources
but the group has also installed wastewater
treatment facilities to ensure that wastewater
is made safe. Computerized plate-making
makes the process filmless, guaranteeingthat no waste water is released into the environment. For those sites releasing wastewater into rivers which run into closed water
areas or lakes a higher level of water quality

is required compared to other rivers. For thisreason, wastewater treatment facilities are
installed and wastewater management isbeing conducted. The wastewater route at
the Tanabe plant was revised. The wastewater is now being reused. At the Okayama
plant, the construction material division’s production process has achieved zero emissions for wastewater.

Measures to battle noise pollution
and vibrations
In printing plants, machinery have parts
that rotate at high speeds, such as rotarypresses and binding machines. In addition,
to power this type of machinery there arecompressors and processing facilities. These
all create noise. In addition, the in-housetransportation of products or the piling of pallets is also another source of noise. Becauseof this we have received complaints from residents in the surrounding area.
To deal with this problem, the DNP Group
has assessed the conditions of the businesssite’s location and the noise levels at the site.
The group is working to alleviate the noiseproblems owing to faulty machinery as earlyas possible and also carrying out a variety ofother activities. This includes the daily
inspection of facilities, improvements to facilities responsible for generating noise, soundproofing the buildings, rerouting the directionin which noise is transmitted, changing working hours, and improving distribution methods. Moreover, we maintain roads located atour business site and have made improvements to alarms used in on-site vehicles, alsoa source of noise and vibrations.

Environmental Conservation Activities

Environmental Conservation Activities

Targets for Environmental Protection

Dichloromethane Emissions(Tsuruse Plant)
160(tons/year)

140
120
100
80
60
40
20
0
1997

1998

1999

2000

Okayama Plant’s Closed Wastewater Treatment
Steam
Waste
water

Water
Process

Treatedwater

Wastewater treatment

Evaporation method

SludgeIchigaya plant: Digital editing; DTP

Dai Nippon Cup, Sayama plant:
Oil-water separation compressor drain

Ichigaya plant: Electric forklift

Dai Nippon Printing Technopack Kansai
Kyoto plant: Sound-proof wall

Measures for preserving the ozone
layer
The DNP Group uses turbo freezer units aspart of its air conditioning related facilities. Asa coolant, these units use CFC-11 and CFC12, both of which are ozone depleting substances. Currently there are 19 such air conditioning related facilities packed with thesesubstances. The group is working to install
freezer units with gas absorbers or shift tocoolants that have a smaller adverse effecton the ozone, to reduce impact on the ozone.
The group terminated the use of 1,1,1trichloroethane in 1994, another ozone
depleting substance.

Ichigaya plant: Creating barrier-free roadways
CFC = chlorofluorocarbon
Ichigaya plant: Asking parked trucks toturn off their engines

16

Dai Nippon Technopack Izumisaki plant:
Incinerator

17

Environmental Conservation Activities

Environmental Conservation Activities

Reducing Industrial Waste
Breakdown of Waste [B]Targets for Reducing Industrial Waste

Breakdown of Waste Generation [E+F]Others:
Metals:1% 2%• Reduce waste generation per production (the rate of industrial waste generation for total production output) by 50% by fiscal 2001, compared with the fiscal 1991 level.
• Achieve zero emissions (zero generation of industrial waste) at 10 business sites and achieve a final
waste disposal rate (final waste disposal quantity divided by total waste output) of 5% by fiscal 2001.

Others:Ash: 6%
4%

Paper:
11%

Sludge:49%

Thermal recycling
The recycling of heat energy collected from incinerators where scrap paper andwaste plastics are burned.

increase in valuable material [C] (15,500 tons) andon-site interim processing [D] 14,200 tons.
Consequently, the total waste generated in fiscal
2000, was 51.5% less than in fiscal 1991. Thisshows that we are approaching target values.
Meanwhile, in fiscal 2000 the amount of final
waste disposal [I+J] was 33,000 tons. Despite theincrease in business sites, we were able to reduce
final waste disposal by 11,700 tons, from the
45,000 tons disposal of in fiscal 1999, owing to thepromotion of the recycling of material into
resources [increase in G], the efficient use of residuals from interim processing and a shift in outsourcing to thermal recycling [decrease in J]. By doing
this, the rate of final waste disposal was 5.1%,
meaning we achieved our targets one year earlier
than planned. In addition, we achieved zero emissions at 4 sites in fiscal 2000 (the Ichigaya plant’s
operations at Kuki, Gotanda, Ichigaya plant’s operations at Akabane, and Hokkaido). There are 11 sites
which have a final waste disposal rate of under 1%.
Furthermore, the amount of recycling including
the creation of solid fuels (443,100 tons), accounted for 68.2% [(C+G)/A] of discarded materials [A].
The rate of on-site thermal recycling (28,400 tons,
4,800 tons produced as incinerator ash) was 4.4%.
Excluding the amount of incinerator ash recycled
for use as a raw material in cement, the recycling
rate was 71.8%.

100

93

84.8

81.0

72.4

81

76

66.5

70.3

53.4

62

57

Oils: 11%

Oils: 9%Fluids: 46%

Fluids: 30%

10.7%
Material Recycled as Resources

42.6%
Waste

17.4%
Waste Not Subject toOn-site Interim Processing

B 276,800 tons

E 113,200 tons

100%
Total Discarded
Materials

A 650,100 tons
57.4%
Valuable Materials

C 373,300 tons

(Recycled by outsourcing
companies for free or for a fee)

25.2%
Waste subject toOn-site Interim Processing

3.8%
Waste after On-site
Interim Processing

D 163,600 tons

F 24,700 tons

(Processed by on-siteincinerators and sludge
dehydrators)(Ash, dehydrated sludge, etc.)

6.8%
Waste to Outsource
Interim Processing

1.4%
Final Disposal

H 43,900 tons

J 9,200 tons
(Final disposal after outsourcing
for interim process)

3.7%
Final Disposal

I 24,200 tons
(Directly from sites to final disposal)

Breakdown of Discarded Material [A]Breakdown of Valuable Material [C]Metals:Oils: 1% 4%

Plastics: 1%

Fluids:11%

Breakdown of Waste subject toOn-site Interim Processing [D]Breakdown of Final Disposal [I+J]Others:7%

Paper:
5%
Plastics:
12%

Fluids:1%

Paper:
15%

Ash: 13%Paper: 52%
Sludge: 82%

Sludge: 25%

Plastics:
22%

Paper: 83%
Plastics:
8%

51.5

Plastics:
20%

Plastics:
18%

G 69,800 tons

Fluids:13%

68.2

Paper:
19%

he Current Status of DNP Group's Waste Generation in fiscal 2000.

Oils: 2%

93.8

Others:
Metals: 2% 5%
Sludge: 4%Paper:
12%

Oils: 4%

Sludge:
21%

100
100

Sludge:16%

Fluids: 30%

Others:
Metals:3% 1%

Trends in Industrial Waste Generation per Production

Plastics:
21%

Oils: 8%

Breakdown of Waste to
Outsource Interim Processing [H]Others:
Metals: 4%4%Paper:
16%

Sludge:15%

Plastics:
17%
Fluids:16%

In view of the growing constraints on landfill
capacity, the DNP Group is working to reduce
industrial waste and achieve zero utilization of final
disposal sites, with the ultimate target of realizing
the “zero emissions” (zero generation of industrial
waste) ideal. Namely, as shown in the chart on thenext page, the total of the weight taken directly fromsites for final disposal [I] and the weight of waste
sent indirectly by outsourcing companies for final disposal [J] is zero. Our activities focuses on 4 areas:
1. Targeting waste sources(improving production
systems to minimize the generation of waste)
2. Separating waste for collection and recycling(reinforce recycling, including converting into
products with commodity value).
3. Reduction of the weight and volume of waste atsites.
4. Strengthening management methods and theestablishment of educational systems.
DNP Group reduces the weight and volume ofwaste at the sites by incineration and the dehydration of sludge. The heat from incinerators is converted into steam for maximum energy use.
In fiscal 2000 we worked to separate, collect andrecycle waste.
The total amount of discarded material [A] in fiscal 2000 was 650,100 tons. This was 25,300 morethan the 624,800 tons produced in fiscal 1999, due
to an increase in the number of sites being counted, 53 in the current as opposed to 46 a year earlier. However, the total waste generation decreased
by 4,400 tons, from fiscal 1999, owing to an

Breakdown of Material
Recycled as Resources [G]Fluids: 18%

87

80

71

66

60

Target54

50

40
Actual20■ Fiscal 2001 Targets

From fiscal 2001, in addition to our targets for reducing waste generation and our zero emission targets, we set new targets for the reduction of discarded materials [A] and to reduce
ratios [A/amount of materials] for the promotion of better efficient usage of resources and forthe improvement of our recycling rate [(C+G)/A] to promote the enhanced recycling of discarded materials.

0
’91

18

’92

’93

’94

’95

’96

’97

’98

’99

’00

’01

19

(1) DNP Group’s Environmental Targets(2) Current energy consumption

Reduce energy consumption per production
by 15%, and CO2 emissions per production by
20% over fiscal 1990 levels by fiscal 2010.

During fiscal 1997, as the average heatvalue and CO 2 emissions climbed, we
worked toward reducing the CO2 emissions.
However, despite continued efforts to lower
CO 2 emissions starting in fiscal 1998,
changes in our business environment caused
these values to rise.
In fiscal 2000, to cap this rise in emissions,
we implemented energy conservation strategies based on a new system. As a result,CO2 emissions were kept to a minimum, only
rising 0.8% year-on-year. The CO2 emissions
per production climbed by a mere 0.3%.
Despite the various factors boosting emissions, the CO2 emissions per production has
declined 3% in contrast to fiscal 1990.

Energy average heat value
Energy consumption = converted consumption value (terra joule)
per production
Production output (¥100 million)
CO2 emissions
per production

CO2 emissions (t – CO2)
Production output (¥100 million)=

Establish internal standards that are more
stringent than evaluation criteria set out in the
Law Concerning the Rational Use of Energy,
and institute rational energy use and voluntary management.

1. Electricity: Since 1990, we increased thenumber of new plants in conjunction withthe expansion of our businesses. Becauseof this, consumption took a sharp rise. As aresult of our efforts to conserve energy, infiscal 2000 our electricity consumption
increased by a marginal 0.6 % year-on-year
2. Fuel: From 1990, we have been working toshift from heavy oil, which has a high levelof CO2 emissions per unit of heat, to otherfuel sources.

1,140,716 1,147,816

1,200,000
1,000,000
800,000

879,920
648,554600,000
400,000
200,000
0

’90

’95

’99

2000

City Gas Consumption (1,000m3)
150,000
120,302

120,000■ Total and Unit Energy Consumption, CO2 Emissions : Comparison with fiscal 1990 (%)
Fiscal 1990 Emissions 420,000 tons
Consumption 10,000 TJ

Fiscal 1995 Emissions 550,000 tons
Consumption 15,000 TJ

Fiscal 1999 Emissions 750,000 tons
Consumption 21,000 TJ

250

250

200

200

126,439

68,32332,912

’95

’99

2000

<Table 1>
Fiscal 1999 Fiscal 2000 Change
results
results

50

Consumption
Target Consumption
per Production

Joule
An international standard measurement for heat value. This
mark must be used when
implementing this method of
measurement. 1 calorie equals
4.19606 joules.
TJ: terra joules
10 to the 12th power of a joule.

20

’94

’95

Emissions
Consumption
per Production

’96

’97

’98

’99

’00

’01

Emissions per Production• Consumption: The energy consumption is calculated based on the conversion of theaverage heat value (joule) based on conversion rates used in the Energy
Conservation law and by the Energy Conservation Center, Japan.
• Emissions:
CO2 emissions are calculated based on the September 2000 results fromstudies on greenhouse gas calculations produced by the working groupon calculating greenhouse gas emissions.
• Consumption per Production: Energy consumed/value added amount (TJ/¥100 million)• Emissions per Production: CO2 emissions/value added amount (t-CO2/¥100 million)• Production output: A value added amount (¥100 million)

19,853

12,607

0

4,956

’90

’95

’99

2000

From fiscal 2001, we expanded the coverage of
our energy reduction activities. We are placing aheavier focus on the prevention of global warming.
During the term, we plan to introduce large-scaleenergy conservation facilities (a co-generation
system), improve the efficiency of production facilities, and install various types of energy conservation devices. In addition, to make full implementation of the energy management manual, we plan significant reductions in energy consumption and CO2
emissions as indicated in Table 2 below.

100

’93

2000

(4) Energy conservation measuresand results in fiscal 2001

100

’92

’99

’95

(3) Energy conservation measuresand results in fiscal 2000

150

’91

10,275

16,711

5,000

30,000’90

10,43410,000In accordance with the DNP Group’s environmental guidelines, 390 energy conservation themes
were implemented at all 53 sites. The results areshown in Table 1.

’90

’90

20,00060,000018,789LPG Consumption (tons)

150

50

35,00030,00025,00020,00015,00010,0005,000
0)32,312

15,00090,000Fiscal 2000 Emissions 760,000 tons
Consumption 21,000 TJ

The heavy oil cunsumption in fiscal 2000
was nearly one-third that of fiscal 1990 andwas reduced by 1.5% over the previous year.
As an alternative fuel for heavy oil, we
selected city gas and LPG. To the best of ourability, we are giving priority to the use of city
gas because of its lower CO2 emissions.
In fiscal 2000, CO2 emissions resulting fromfuel consumption increased by only 0.9% overthe prior year reflecting our efforts to shift to
new energy sources and conserve on the consumption of energy.
Heavy Oil Consumption (Electricity Consumption (1,000kwh)

Number of energy conservation themes
Reductions by energy conservation
themes (kl/year) Note 1
Reductions by energy conservation
themes (t-CO2/year) Note 2
Energy conservation rate (%) Note 3

277

390

141%

5,375

10,168

189%

8,944

16,713

186%

1.10

2.05

Note 1: Conversion to crude oil
Note 2: CO2 emissions (conversion to carbon X 44/12)
Note 3: The energy conservation rate is based on the following
formula for evaluating the reduction by implementation ofenergy conservation themes
Energy conser- =vation rate

Environmental Conservation Activities

Environmental Conservation Activities■ Consumption by Type of Energy

Energy Reduction

Reduction after conversion to crude oil
Energy consumption based + Reduction after converon conversion to crude oilsion to crude oil

Co-generation system
Extracting various types ofenergy (electricity andheat) from a single energy
source.

<Table 2>
Fiscal 2001 plans

Number of energy conservation themes
Projected reductions by energy
conservation themes (kl/year)
Projected reductions by energy
conservation themes (t-CO2/year)

Change303

78%

32,815323%

55,002329%

Crude oil conversion: Based on calculations shownin Appendix 1 of Article 3 of the Enforcement
Regulations under the Energy Conservation Law
Carbon conversion: Based on data in Table 1 of the
Ministry of Environment’s environmental activities
assessment program21

Environmental Conservation Activities

PRTR: Chemical Substance Management● Target for PRTR
Identify the chemical substances that are specified as “Class 1 designated chemical substances” in
PRTR and reduce the discharge and transport of those substances by 50% over fiscal 1998 levels
by fiscal 2001.

PRTR(Pollutant Release
and Transfer Register)Law
Law requiring the reporting of emissions andtransport of harmful substances into the environment. (refer to Page 6)
Class-1 designated chemical substances
Consists of 354 chemical
substances listed in Article
2, Section 2 of the Law toPromote Improved Tracking
and Management ofEmissions Volumes for
Designated Chemical
Substances Released
into the Environment (PRTR
Law)

The DNP Group, prior to the establishment of
the Law to Promote Improved Tracking andManagement of Emissions Volumes for
Designated Chemical Substances Released into
the Environment (PRTR Law), began its own inhouse surveys (DN-PRTR) from 1998. We set targets for reducing emissions into the environment,such as into the atmosphere or water bodies,including decreasing waste.
In fiscal 2000, of the 354 substances designated as class-1 chemicals under the PRTR Law,
we reported the use of 28 (Fiscal 2001 andFiscal 2002 Environmental Reports) of these substances, mainly solvents such as toluene, andalso reported the release and transport of thesesubstances at 35 of our business sites.
Furthermore, we found that emissions of theseclass-1 chemical designated substances, contained in raw materials, are equivalent to 28% of
the usage and that all are being emitted into theatmosphere. Reducing emissions into the atmosphere is the next issue we need to solve.
The basic idea for solving this problem is not
to use these designated chemical substances,
reduce the amount used, shift to a less harmful
substance or prevent the used chemical frombeing emitted into the atmosphere as much as
possible (collection and reuse, decompositionand conversion into a non-harmful substance).

Pollutant Release and Transfer Register (PRTR)

Recycled
21%
Transported
5%
Soil
0%
Water
0%

Atmosphere
28%

Consumption
28%

Removed
18%

Ratio of emissions andtransport of class-1 substances< Measure currently being
undertaken >• Boosting the rate of collection forrecovery devices• Installing and promoting the use ofremoval devices• Making solvents water soluble or finding alternative solvents• Terminate usage of compact waste
incinerators• Separation of incinerator waste• Reduction of waste

The Inctec Kansai plant:
Prior to shutting down the incinerator

22

After removal of the incinerator

Environmental Conservation Activities

Office environmental conservation
Separate Collection and Recycling of Office
Waste
At the DNP Group, from fiscal 1993 used paper
has been separated into 4 categories, high-quality,
newspaper, magazines and cardboard. The Group
set targets for separating and collecting used paperand continues to work to improve its collection rate.
Office environmental conservation targets
The separation and collection of used paper
accounts for over 65% of all domestic waste disposed of.
Comparison to domestic waste means...

While not directly related to the separation andcollection of used paper, the Ichigaya plant, the DAINIPPON PRINTING PRECISION DEVICE plant at
Mihara, and the C&I headquarters all introduced
food waste processing machines and are creating
into compost. In this way, they are controlling thegeneration of municipal waste.

Changes in the used paper separation and collection rate for municipal waste(%) 8072%70Volume of used paper in the office that is separated
and collected

65%

60
50

(A)

40
30

Waste which has the same properties asmunicipal office waste or waste emitted from the office(this includes the used paper not collected
and excludes cans, bottles and food waste)(B)

The formula used is [A/(A+B)] X 100.
In fiscal 2000, used paper was separated and collected at 13 sites. This means 960 tons Note of usedpaper were collected. The rate of separated and collected used paper was 65.3%. The group has
achieved its targets since fiscal 1997. The collected
used paper is recycled for use as a raw material.

20
100(Year)

1993

Wood-free6%
paper
Newspaper 48%
Miscellaneous 2%
paper
Cardboard
3%

1994

1995

1996

1997

1998

1999

2000

8%

12%

16%

13%

13%

12%

8%

52%

46%

44%

49%

53%

57%

52%

2%

3%

3%

4%

2%

2%

2%

2%

2%

1%

1%

1%

1%

3%

Change in the volume of collection of separated used paper
960 tons(tons) 1,000

870 tons
800

Note: Aside from this, about 1,100 tons of used paper was collected from 24 sites. This includes paper not generated by
offices and not separated. This is the reason these sites were
not included along with the above sites.

600
400

The main activities related to the separation and collection of used paper are aimed at improving the collection rate. 1) Survey how used paper is being separated (see how much used paper is not being collected in municipal waste). 2) Patrol to check separationand collection activities. 3) Use posters to enlighten
employees on the merits of recycling used paper. 4)
Recycle shredded paper. 5) Set up special boxes forseparating and collecting used paper. 6) Review written procedures for separation.
As a measure to reduce domestic waste, aside
from collecting used paper, 1) reduce paper usage byincreasing computer network utilization, 2) use bothsides of copier paper, and 3) use a scanner instead ofa copier to copy data.

2000(Year)

1993

1994

1995

1996

1997

1998

1999

2000

Wood-free30
paper
Newspaper
25
Miscellaneous 500
paper
Cardboard
58

22

25

16

13

14

17

39

24

39

39

48

30

24

22

552

545

513

581

655

682

781

80

148

184

158

155

147

118

Note: Total for separation and collection rate and volume at the 5 Tokyo sites through fiscal 1999.

Current status survey of office waste separation

Food waste processing machine(located in the basement of the
C&I headquarters)

23

Environmental Conservation Activities

Introduction of ISO 14001 environmental management standards
The DNP Group is implementing its own
unique environmental management system, the
Eco-Report System, in an effort to improve theenvironment.
Moreover, in fiscal 2001, the Group aims toacquire the ISO14001, a globally recognizedenvironmental standard, for 15 sites, and plans
to introduce the standards to 30 sites by fiscal
2005.

Current status of ISO14001
certification
In November 1997, the DNP Group’s
Okayama plant, a part of the Information Media
Supplies Operations, was not only the first DNPGroup site to acquire the ISO 14001, but wasalso the first in the printing industry. Since then,as of the end of fiscal 2000, 4 sites haveobtained certification.
Recently, in May 2001, TOKAI DAI NIPPONPRINTING CO., LTD. was certified.
Currently 12 sites are constructing systems inhopes of acquiring certification.

ISO14001 Certified Sites

TOKAI DAI NIPPON PRINTING CO., LTD.

Okayama plant, Information Media Supplies Operations
Mihara plant, Display Components Products Operations
DNP Facility Service Co., Ltd.Note 1
Okayama plant, Decorative Interiors Operations
TOKAI DAI NIPPON PRINTING CO., LTD.

Date of Acquisition

Surveying
Organization

Nov. 1997
July 1998
Apr. 2000
July 2000
May 2001

JIA Note 2
DNV Note 3
JIC-QA Note 4
JIA
JIA

Note 1: Aside from ISO 14001, also acquired certification for its comprehensive management
system covering quality, environment, health & safety and food sanitation
Note 2: Japan Gas Appliances Inspection Association
Note 3: Det Norske Veritas (Norway)
Note 4: JIC Quality Assurance

Green Purchasing

Targets for Green Purchasing• Construct a database of toxic chemical substances in raw materials by fiscal 2001.
• Encourage the purchase of environmentally conscious products for office equipment and stationery

Current status of use of environmentally conscious products for officeequipment and stationery
We refer to the Green Purchasing Network’s“Green Purchasing Principles” when choosing
office equipment and stationery. That means weselectively purchase equipment and stationery tosatisfy the following criteria: reducing environmental pollutants, conserving resources and energy,
maintaining a renewable harvest of resources,using products that have a long life, reusability
and recyclability, use of recycled material, easy totreat as waste, etc.
By fiscal 2000, the Group had boosted its usageof recycled paper in copiers and printers to 94%(the headquarters is in charge of purchasing for 34
sites). This is 9 points above fiscal 1999. We haveswitched to using office envelopes, notepaper, letter paper, and business cards made from recycled24

paper. Regarding office supplies, we are aiming toshift to goods made from recycled materials, items
that are easy to utilize and dispose of or that canbe recycled. Currently 34% of our office supplies
are environmentally friendly. Along with our efforts
to promote the use of Eco-Mark products, in fiscal
2000, 61% of all our uniforms were labeled with the
Eco-Mark. In fiscal 2001 we plan to only purchasethose items that bear the Eco-Mark.
Green purchasing activities during fiscal 2001
are not only to include office equipment and supplies but will also be extended to raw materials
and supplies.

Database of Toxic Chemical
Substances in Raw Materials
We added the results of our reports on theemissions and transport of PRTR class-1 designated chemicals in fiscal 2000 to our database.

Environmental Conservation Activities

The Current Status of Internal Audits
The internal audit system “Eco-Audits” wasstarted in fiscal 1996 in order to support ourenvironmental conservation activities.
An Eco-Audit seeks to assure that environmental management is being implemented
properly. This is the center of our eco-reportsystem in which all of our sites participate. We
began our Eco-Audits in fiscal 1996 and fromfiscal 1999 have conducted them annually foreach site.
In fiscal 2000, Eco-Audits were carried out at
53 sites, involving 143 persons and taking 259
hours.
As a result, we found 129 areas that required
improvement. Among these, there were legal
problems, such as the failure of designatedfacilities to submit documentation or impropermarkers for waste storage facilities.
Those sites identified as having problems
proposed plans for improvement and adopted
all necessary measures.
In fiscal 2000, the DNP Group was not finedor penalized for environmental infractions.
In addition, in February 2001, the second
Eco-Auditor training session was held. 46
employees passed the course and became
new eco-auditors. The DNP Group currently has
92 eco-auditors.

Number of cases requiring improvement(cases) 200
170

156

150
129

100

50

0
Fiscal 1996-1998 Fiscal 1999

Pollution prevention
organization
EnergyWaste
Odor
Vibration
Noise
Water quality
Air
Number of sites audited
Sites with no problems

Fiscal 2000

6

1

5

5
95
5
12
12
19
16
43
3

6
108
0
9
9
17
6
43
4

2
86
1
13
8
11
3
53
13

July 26, 2000
Ichigaya Publication Printing Operations: Tsuruse plant

July 27 2000
Dai Nippon Printing Technopack Kansai: Kyoto plant

October 4, 2000
Dai Nippon Printing Technopack: Izumisaki plant

December 19, 2000
DNP Logistics

February 17, 2001
Eco-Auditor training session

February 22, 2001
The Inctec: Kansai plant25

Environmental Conservation Activities

Environmental Education
The DNP Group offers a training program on environmental education for different levels. Eachcourse has its own textbook.

Training

CourseTargetIntroductory
education

Dealing withthe environment
How DNP deals
with theenvironment

Education on the DNP Group’s
environmental activities
Aimed at technicians.
An overall look at how DNP deals withthe environment.
Aimed at technicians.
Knowledge of laws and regulations related
to the environment.
Basic knowledge of environmental issues andgaining understanding of the connection
between environmental issues and businessand consideration of new business chances.
Considering environmental issues as a part ofself-enlightenment

Technical
seminarTechnical
seminarEnvironment

Network
learning

Environmental
problems andbusiness

Correspondence
course—Network learning: Environmental
education any time and at your own
convenience
Environmental education is provided over the
intranet for the Group’s approximately 4,500 sales
and planning staff nationwide. Basic knowledge ofenvironmental issues can be obtained, as well as anunderstanding of the relationship between environmental issues and business. By taking the course,
employees can provide detailed explanations to cus-

Network Learning (first screen)

No. ofTimes Held

Full and part-time workers
in fiscal 2000 (required)

1 hourOnce a year224

1st and 2nd year technicians,
all employees (required)

2 hours

3 timesa year

171

Technicians (optional)

3.5 hours Once a year

Employees with more than
2 years experience in thesales and planning division(required)
All employees from DNP and
its affiliates (optional)

26

Approx.
2 hours

—

3,195

—

Signs ups
twice a year

10

tomers and acquire knowledge necessary to makeproposals and create new business opportunities.
For those sales and planning staff that are busy ona regular basis, the system allows employees tostudy on their own anytime and at their own convenience. The system, which also allows for Q&A, wasdeveloped in-house from planning all the way to contents. 3,200 employees have taken the course.

Network Learning (Main text)

Network Learning (An employee studying)

26

No. of People
Attended in
Fiscal 2000

LengthEligibility

Environmental Conservation Activities

Employees with Certifications related to Environmental Laws and Regulations
In accordance with laws on pollution prevention, waste, electricity, gas and energy, depending on thesize of the business and the type of substances being handled, sites must hire employees with certain qualifications. The table below exhibits the number of qualified and certified workers within the DNP Group.
(1) Pollution prevention management
Number of sites
Number of certified workers

Air

Water quality

Noise

Vibration

22
91

11
74

0
30

0
16

(2) Waste management
Managers in charge of special managementof industrial waste

Managers in charge of industrial waste
treatment facilities and technology

50
96

10
26

Number of sites
Number of certified workers(3) Management of Electricity, Gas and Energy

Number of sites
Number of certified workers

Electrical technicians

Persons in charge of gas safety

49
103

17
149

Energy managers
Heat

Electricity

23
75

33
86

Number of cases related to environmentally-related special facilities and measurements
At the 53 sites, DNP maintains the following special facilities in compliance with environmental laws. All of thesites work to reduce environmental impact under the guidance and supervision of an environmental committee.
(1) Laws related to the environment special facilities(2) Measurements and analysis related to the environment

Air (boiler, freezer)
Water quality (plating facilities, plate-making,printing plate washing facilities)
Noise (printing press, air compressor, ventilation)
Vibration (printing press, air compressor, extrusion molding)Air
Water quality
Noise
Vibration
Odor
Waste

288 units
637 units
2,471 units
920 units

123 cases
570 cases
27 cases
13 cases
30 cases48 cases

Dealing with Product Liability
Comparable to the reduction of environmental
impact, the supply of products that are safe isanother responsibility of corporations. The PL(product liability) Law requires that manufacturers
always provide safe products.
The DNP Group places the same amount of priority on creating safe products as it does on environmental conservation.
1. Basic policy
Product specifications must meet laws and regulations. By manufacturing products that exceed thesafety expectations of customers, it allows the company to meet its responsibilities. This is the basic policy.
2. In-house system
The in-house system was established on
November 1, 1994, and consists of product safetycommittees in its headquarters, operations andGroup companies.
3. Product safety standard documents
Based on guidelines for product safety measuresby the headquarters’ product safety committee, theproduct safety committees in each operations andGroup company develop standards such as product safety assurance, sales activities and productsafety standards for each product handled. These
documents help to clearly state the roles of the
product safety committee and sales division andmeasures for dealing with product safety.
4. PL management system
Product safety assurance is not a one-time event
but must be continually carried out. From thisstandpoint, we created and operate a PL management system, the PDCA cycle for product safety.

DNP Group Product Safety Measures
Basic policy for product safety measures
Basics for product safety
In-house system for PL Law

Policy
PLP, PLD
Headquarters productsafety committee
Operations productsafety committee

Create product safety standards
Standard for product safetyassurance

BC product safety committee
Product safety standards foreach product handled

Product Liability (PL)This means manufacturers
or designers are responsible for product safety.
Product Liability Prevention(PLP)
By taking precautions toprevent defects and thereoccurrence of defects.
This specifically includes
improvement of productsafety, detailed labeling andmanuals and full after-care.
Product Liability Defense(PLD)
Quick and positive actions
to take care of consumers
that might have been
injured by a product.
Create a system to takecare of disputes and a full
lineup of measures to compensate for damages.
Brother Company (BC)A DNP Group affiliate.

27

Review of Environmental Conservation Activities by Business Site
Environmental Manager Review
Masakatsu Noda, Managing Director, Plant Manager,
Hokkaido Dai Nippon Printing Co., Ltd.

Hokkaido Dai Nippon Printing Co.,Ltd. / Sapporo, Hokkaido
Review of Environmental Conservation Activities by Business Site

Established: June 1940
(commercial printing, packaging, bonds)

Naebo Elementary School

Niiho ParkPark

SapporoBreweries

Kita 8-jostreetHokkaido
Dai Nippon
Printing

Hokkaido
Regional
Development
BureauSapporoBrewery's
Beer Garden
plant site

residential areaothers■ Atmosphere
Substance

Dust (g/Nm3)

NOx (ppm)

Facility

Actual Value (Max)Regulated Value

Through-flow boiler A
Through-flow boiler B
Through-flow boiler C
Through-flow boiler A
Through-flow boiler B
Through-flow boiler C

<0.01
<0.01
<0.01
53
47
52

0.10
0.10
0.10
150
150
150

Actual Value (Max)Actual Value (Ave)Standard Value(Sewage Water Law)

420
530

81.2
73.7

600
600

3.6

1.9

5

130
0.075
0.05

27.9
0.057
0.05

220
3
2

■ Water Quality (mg/l)
Substance

BOD (mg/l)
Suspended Matter (mg/l)
n-hexane Extract
Mineral oil (mg/l)
Iodine consumption (mg/l)
Copper (mg/l)
Chrome (mg/l)■Release and Transport of PRTR Chemicals
ChemicalTolueneEmissions volume
Atmosphere
Water

149.8

0

(tons/year)
Soil

0

Transport volume
Sewer
Waste

0

29.0

■Industrial Waste
Promotion Targets

Generation per Production (ton / ¥ million)
Final Waste Disposal Rate (%)

Actual Value Voluntary Target Value

0.602
0.0

0.519
0.0

■Energy Conservation
Promotion Targets

Crude Oil Energy Consumption per Production(kilo liter / ¥100 million)
CO2 Emissions per Production(Carbon tons / ¥100 million)

28

Actual Value Voluntary Target Value

102.9

93.9

152.6

142.4

We established an environmental committee chaired by theplant manager. The activities ofthis committee are linked with the
HD21 program, which analyses
problems by stage and is used toboost production efficiency.
Furthermore, we take on environmental issues working closelywith the local community.
In fiscal 2000, in the area of waste reduction, we
worked to improve productivity and improve various
types of loss. Owing to the launch of the No. 3 plant wewere not able to achieve our targets for the year.
However, we accomplished zero emissions with a final
waste disposal rate of 0%.
In regard to energy conservation, we improved productivity, cut back on various types of loss, and introduced an inverter-type motor. Moreover, we improved
our energy consumption by employing the drying
process. Once again, owing to the start up of our No. 3
plant we did not meet our targets.
Our environmental activities were carried out in linewith the environmental laws and regulations and basedon our responsibility to society. We made careful considerations to obtain the understanding of local residents when constructing the No. 3 plant and when new
facilities were delivered. Thanks to these efforts, thenew plant was safely launched.
In accordance with the revised DNP Group environmental targets for fiscal 2001, we introduced new indicators and reviewed and established new targets.
Among these new targets, in conjunction with the startof full-scale operations at our No. 3 plant, we installed acatalytic incinerator and aim to reduce our emissions oftoluene into the atmosphere by about 40% by 2002 andby approximately 75% by 2003. We plan to make further
reductions to environmental impacts and also make stable progress with manufacturing solutions, while pushing forward with improving the structure of our plant.
Inverter
An inverter converts direct current to alternating current. The inverter makes it possible to control voltage and frequency. It is an effective method for energy conservation.

■Environmental Accounting Report(Unit: ¥1,000)

Environmental Conservation Costs
Content
Capitalinvestment

1) Prevention of Air Pollution
2) Prevention of Water Pollution3) Noise Prevention4) Vibration Prevention5) Odor Prevention
6) Prevention of Global Warming
7) Prevention of Ozone Layer Depletion
8) Reduction, Recycling, Disposal of Waste
9) Environmental Management Activities
10) Tree Planting, Beautification, Cleaning11) Others
Total: Environmental Conservation Costs
Economic Benefits related to Environmental
Conservation Activities
1) Proceeds from the sales ofrecyclable materials

Expenditure

17,09635,986

3,231
32,401
44,277
1,180

35,986

7,683

98,187

Environmental Manager Review
Yoshiaki Nagano, President,
F.D.P. Dai Nippon Co., Ltd.

F.D.P. Dai Nippon Co., Ltd., Otone Plant(color filter for LCD displays)
Toyono Elementary
SchoolFamily Grounds
TeramaeChildren's Park
Hoshikonuma
Park
kag

aw

plant site

residential area

Promotion Targets

Substance

Dust (g/Nm3)

NOx (ppm)

Actual Value Voluntary Target Value

0.063

0.05

1.4

0.0

Crude Oil Energy Consumption
per Production(kilo liter / ¥100 million)
CO2 Emissions per Production(Carbon tons / ¥100 million)

othersFacility

Actual Value (Max)Regulated ValueFirst Boiler
Second Boiler
Third Boiler
Fourth Boiler
Fifth Boiler
Sixth Boiler
Seventh Boiler
Eighth Boiler
Ninth Boiler
Tenth Boiler
Eleventh Boiler
First Boiler
Second Boiler
Third Boiler
Fourth Boiler
Fifth Boiler
Sixth Boiler
Seventh Boiler
Eighth Boiler
Ninth Boiler
Tenth Boiler
Eleventh Boiler<0.002<0.003<0.003<0.003<0.002<0.003<0.002<0.004<0.003<0.002<0.002
38
39
73
70
30
43
34
20
32
42
81

0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
150
150
150
150
150
150
150
150
150
150
150

Actual Value (Max)Actual Value (Ave)

Regulated Value

2.1
5.8
7.8

2.01
3.97
4.29

20
10
60

1.6

1.14

5

8.0
0.33
<0.01
<0.01
<0.01
<0.05
0.12
0.26
0.42
<0.05
<1

4.54
0.12
<0.01
<0.01
<0.01
<0.05
0.06
0.08
0.13
<0.05
<1.00

60
8
0.1
0.1
0.1
3
5
10
10
2
15

■Water Quality (mg/l)■Energy Conservation
Promotion Targets

farmlandDai Nippon Printing
F.D.P. Dai Nippona■Atmosphere■Industrial Waste
Generation per Production(ton / ¥ million)
Final Waste Disposal Rate (%)

Toyonodai Techno town

Na

Actual Value Voluntary Target Value

83.92

74.6

123.7

121.7

■Environmental Accounting Report(Unit: ¥1,000)

Environmental Conservation Costs
Content
Capitalinvestment

1) Prevention of Air Pollution
2) Prevention of Water Pollution3) Noise Prevention4) Vibration Prevention5) Odor Prevention
6) Prevention of Global Warming
7) Prevention of Ozone Layer Depletion
8) Reduction, Recycling, Disposal of Waste
9) Environmental Management Activities
10) Tree Planting, Beautification, Cleaning11) Others
Total: Environmental Conservation Costs
Economic Benefits related to Environmental
Conservation Activities
1) Proceeds from the sales ofrecyclable materials

64,83050,161

Expenditure

36,758
266,773
7,910
7,150
5,978
41,377
1,437
415

Substance

BOD (mg/l)
COD (mg/l)
Suspended Matter (mg/l)
n-hexane Extract
Mineral oil (mg/l)
Nitrogen (mg/l)
Phophorus (mg/l)
Cadmium (mg/l)
Lead (mg/l)
Arsenic (mg/l)
Copper (mg/l)
Zinc (mg/l)
Steel (soluble) (mg/l)
Manganese (mg/l)
Chrome (mg/l)
Flourine compounds (mg/l)■Release and Transport of PRTR Chemicals
Chemical

114,991

367,798

TolueneEmissions volume
Atmosphere
Water

0.25

0

(tons/year)
Soil

0

Transport volume
Sewer
Waste

0

0.95

3,122

29

Review of Environmental Conservation Activities by Business Site

This site stands in the northeastern area of Saitama prefecture. The area is a rich suburban
agricultural area with rural landscape near the magnificent Tone
river and strawberry fields. The
region holds a great reverence forwater. Following the constructionof the plant in 1995, we began
contributing to the development of
an information-based society as a key manufacturingsite of color filters for LCD displays, indispensable forimage devices for information communication.
In taking on environmental issues, in 1996 we established the eco-promotional committee. Activities centered around this committee include the pinpointing andpromotion of key issues that will link to cost cutting methods including industrial waste reduction and energy conservation.
In the area of industrial waste reduction, in fiscal 2000
we were able to turn used solvents, mostly consisting ofsludge and waste liquid, into valuables. Moreover, toreduce discarded glass, to promote the recycling ofglass, we actively reviewed manufacturing steps tolocate the source of the problem. In this fashion, we are
steadily working toward the reduction of waste.
To save energy, from the start we have been working
to reduce wasteful loss through a meticulous operationand management. We also promote other measures
such as the effective use of exhaust gas heat and theuse of an inverter control in the water coolant pump.
As a new step in this first year of the 21st century, we
aim to promote the creation of a recycling-oriented society and compliance with environmental laws and ordinances, we move forward with our environmental activities on both a global and local scale. We are going backto our origins by focusing on basic themes such asindustrial waste reduction and energy conservation. To
the best of our ability we are working to encourage theachievement of zero emissions and zero energy loss.

Otone, Kita Saitama-gun, Saitama Prefecture
Established: April 1995

Environmental Manager Review
Dai Nippon Offset Co.,Ltd., Shiraoka Plant
Hiroyuki Umehara, President, Plant Manager

Dai Nippon Offset Co.,Ltd., Shiraoka Plant

This site is situated in an industrial park in the town of Shiraoka
in Saitama Prefecture. The plant
handles the offset printing mainlyof regular publications such as
weekly and monthly magazines.
Regarding our environmental
management, in our aim tobecome a plant with little environmental impact, from 1996 we began the promotion of
our eco-plan activities and in 2000 established an environmental safety promotion office.
As an environmentally conscious plant, the point of
our eco-plan activities is to promote compliance withlaws and regulations to reduce industrial waste emissions and to thoroughly eliminate wasteful use of energy.
In fiscal 2000, concerning energy conservation, we
achieved our target for a 5% annual reduction in industrial waste emissions, our targets for reducing both
energy consumption and CO2 emissions year-on-year,
and easily cleared legal restrictions on air and water
quality.
As one of our activities from here forward, we aim tocreate an environmentally conscious, recycling-oriented
plant, and also aim to promote the 3Rs (reduce, reuse,recycle).

(publishing, commercial printing)

Shiraoka
Industrial Park

Dai Nippon Offset

Hayatoborigawa

ball park

plant site

residential area

sh

ika

wa

Shiraoka
Environment Center

Ho

Review of Environmental Conservation Activities by Business Site

Shiraoka, Minami Saitama-gun, Saitama Prefecture
Established: Arpil 1993

farmlandothersOffset printing
Printing on a paper cut to a specific size.

■Industrial Waste■Atmosphere
Substance

Dust (g/Nm3)

NOx (ppm)

Hydrogen chloride (mg/Nm3)
DXN (ng-TEQ/Nm3)

Regulated Value

Actual Value (Max)

Hot/cold water supply
device No. 1
Hot/cold water supply
device No. 2
Incinerator
Hot/cold water supply
device No. 1
Hot/cold water supply
device No. 2
Incinerator
Incinerator
Incinerator

0.0027

0.1

0.005

0.1

0.0114
104

0.25
150

■Energy Conservation

40

150

52
11
21

N/A
500
80 (proposed)

Crude Oil Energy Consumption
per Production(kilo liter / ¥100 million)
CO2 Emissions per Production(Carbon tons / ¥100 million)

Substance

30

Generation per Production(ton / ¥ million)
Final Waste Disposal Rate (%)

Promotion Targets

Actual Value Voluntary Target Value

0.035

0.104

0.8

0.0

Actual Value Voluntary Target Value

100.2

100.2

144.0

153.3

■Environmental Accounting Report■Water Quality (mg/l)
BOD (mg/l)
Suspended Matter (mg/l)
n-hexane Extract
Mineral oil (mg/l)

Promotion Targets

Facility

Actual Value (Max)Actual Value (Ave)

<2.0
<2.0

<2.00
<2.00

Regulated Value

N/A
N/A

1.1

<1.01

N/A

(Unit: ¥1,000)

Environmental Conservation Costs
Content
Capitalinvestment

1) Prevention of Air Pollution
2) Prevention of Water Pollution3) Noise Prevention4) Vibration Prevention5) Odor Prevention
6) Prevention of Global Warming
7) Prevention of Ozone Layer Depletion
8) Reduction, Recycling, Disposal of Waste
9) Environmental Management Activities
10) Tree Planting, Beautification, Cleaning11) Others
Total: Environmental Conservation Costs
Economic Benefits related to Environmental
Conservation Activities
1) Proceeds from the sales ofrecyclable materials

Expenditure

12,168
1,195

1,260

1,232
6,419
1,454
264

1,260

7,684

22,732

Environmental Manager Review
The Inctec Inc., Kansai Plant
Akio Matsuo, Plant Manager

The Inctec Inc., Kansai Plant / Hirakata, Osaka

As a member of the DNPGroup, we participate in the ecoreport system and work to reduce
environmental impact related toprinting ink production.
We are building a system inpreparation for the introduction of
the ISO14001.
In fiscal 2000, we promoted therecycling of used ink. We also made efforts to improveenergy efficiency, including the installation of a steam
absorption water cooling/heating device. However,owing to a decline in production values and the introduction of facilities to ensure quality, we were not able
to achieve targets in this area. However, we did achieve
our targets for the final waste disposal rate. In the areaof environmental conservation, we reaffirmed our compliance with environmental laws and regulations and set
voluntary standards for maintaining air and water quality, and reducing noise and vibration.
In fiscal 2001, we established new targets and areworking toward realizing them.

(printing ink manufacturing)UNIONNIPPONSEISEN

APICA
TAIYO
KIKAI

The Inctec

TOMIYASU
METALPRINTING

residential areaothers

KOTOBUKIDIECASTING

Substance

Dust (g/Nm3)

NOX (ppm)

Promotion Targets

Generation per Production(ton / ¥ million)
Final Waste Disposal Rate (%)

Facility

Actual Value (Max)Regulated Value

Boiler # 1
Boiler # 2
Boiler # 3
Boiler # 1
Boiler # 2
Boiler # 3
Boiler # 1
Boiler # 2
Boiler # 3<0.004<0.013<0.0040.016
0.00530.0030
159
37
42

0.28
0.31
N/A
0.20
0.05
N/A
180
150
N/A

Actual Value (Max)Actual Value (Ave)

Regulated Value

5.5
12.0
21.5

5.1
9.8
16.6

25
25
65

0.8

0.7

4

29.2
2.91
<0.025
<0.1
0.52
0.2
<0.1
<0.04
2.7

16.6
1.92
<0.025
<0.1
0.31
0.2
<0.1
<0.04
1.68

120
16
1
3
5
10
10
2
15

■Water Quality (mg/l)
Actual Value Voluntary Target Value

0.107

0.101

4.2

5.6

■Energy Conservation
Promotion Targets

Shinike■Atmosphere
SOX (Nm3/h)■Industrial Waste

Review of Environmental Conservation Activities by Business Site

Established: January 1979

Actual Value Voluntary Target Value

Crude Oil Energy Consumption
per Production(kilo liter / ¥100 million)
CO2 Emissions per Production(Carbon tons / ¥100 million)

22.8

20.2

32.9

29.7

■Environmental Accounting Report(Unit: ¥1,000)

Environmental Conservation Costs
Content
Capitalinvestment

1) Prevention of Air Pollution
2) Prevention of Water Pollution3) Noise Prevention4) Vibration Prevention5) Odor Prevention
6) Prevention of Global Warming
7) Prevention of Ozone Layer Depletion
8) Reduction, Recycling, Disposal of Waste
9) Environmental Management Activities
10) Tree Planting, Beautification, Cleaning11) Others
Total: Environmental Conservation Costs
Economic Benefits related to Environmental
Conservation Activities
1) Proceeds from the sales ofrecyclable materials

6,000

Expenditure

647
3,684

235
14,1508,200

28,3501,943
25,705992
500

Substance

BOD (mg/l)
COD (mg/l)
Suspended Matter (mg/l)
n-hexane Extract
Mineral oil (mg/l)
Nitrogen (mg/l)
Phophorus (mg/l)
Phenols (mg/l)
Copper (mg/l)
Zinc (mg/l)
Steel (soluble) (mg/l)
Manganese (mg/l)
Chrome (mg/l)
Flourine compounds (mg/l)■Release and Transport of PRTR Chemicals
Chemical

Ethylbenzene
Ethylene glycol
Monoethyl ether
Ethylene glycol
Monomethyl ether
XyleneToluene2- Ethylhexyl(tons/year)

Emissions volume
Atmosphere
Water
Soil

Transport volume
Sewer
Waste

0.44

0

0

0

0.75

0.04

0

0

0

0.12

0.57

0

0

0

1.70

0.50
4.39
0.02

0
0
0

0
0
0

0
0
0

0.84
1.15
0.36

33,706031

Dai Nippon Printing Technopack Kansai Co., Ltd., Tanabe Plant
Review of Environmental Conservation Activities by Business Site

Kyotanabe, Kyoto
Established: September 1995
(packaging)
Joyo Drainage
Pump Station

Environmental
Sanitation Center

Bo

DAISHINug

ag

NISHIYODOKUCHOKI

aw

a

Ki

du

Dai Nippon Printing
Dai Nippon Printing Technopack Kansai

ga

wa

y

wa

ss

e
pr

Meiji Dairies
Corporation
plant site

residential area

wa

Ex

a
ein

K

others■ Atmosphere
Facility

Actual Value (Max)Incinerator
Incinerator
Incinerator
Incinerator

Regulated Value

0.17
0.0096920.00062

1.71
0.25
250
80

Actual Value (Max)Actual Value (Ave)

Regulated Value

39
69

26.3
42.6

600
600

<1.0

<1.0

5

BOD (mg/l)
Suspended Matter (mg/l)
n-hexane Extract
Mineral oil (mg/l)

Toluene32(tons/year)

Emissions volume
Atmosphere
Water
Soil

0.22

0

Actual Value Voluntary Target Value

0.608

0.490

10.1

0.0

■Energy Conservation
Crude Oil Energy Consumption
per Production(kilo liter / ¥100 million)
CO2 Emissions per Production(Carbon tons / ¥100 million)

Actual Value Voluntary Target Value

128.9

111.2

182.5

163.6

■Environmental Accounting Report■Release and Transport of PRTR Chemicals
ChemicalPromotion Targets

Generation per Production(ton / ¥ million)
Final Waste Disposal Rate (%)

Promotion Targets■Water Quality (mg/l)
Substance

This site is a part of the paper
packaging division. In 1995, thefirst plant building was built. Then
another building was constructed
in 1999. The plant mainly handles
the manufacture of liquid paper
packaging and ordinary paper
packaging. The plant is located in
an area especially designated for industries. However,the surrounding area is all countryside. The plant isblessed with a great environment.
At the time the plant was built, knowhow amassed at
the Kyoto Plant was used for planning the installation of
an incinerator that used waste heat, and printing flue gas
deodorizing equipment; unit management and operationof air ventilation systems in keeping with their environmental impact, and the use of inverters in pumps.
In fiscal 2000, the staff and manufacturing divisioncame together to implement and accomplish environmental activities such as waste reduction, energy conservation, and making gravure printing water-soluble
and non-toluene in accordance with PRTR.
In fiscal 2001, we aim to analyze loss to see how we
can curtail waste, eliminate habits used up until now,
employ product designs that minimize loss at the design
stage, boost the yield rate during manufacturing, promote the reduction of auxiliary facilities, use selective
survey methods and review the packaging methods ofproduct being transported during processing. We alsoplan to achieve great progress not only in reducing
waste but also in using raw materials.
■Industrial Waste

SubstanceSOx (Nm3/h)
Dust (g/Nm3)
NOX (ppm)
DXN (ng-TEQ/m3N)

Environmental Manager Review
Dai Nippon Printing Technopack Kansai Co., Ltd.,
Tanabe Plant
Yoshihisa Tanimoto, Plant Manager

0

Transport volume
Sewer
Waste

0

46.7

(Unit: ¥1,000)

Environmental Conservation Costs
Content
Capitalinvestment

1) Prevention of Air Pollution
2) Prevention of Water Pollution3) Noise Prevention4) Vibration Prevention5) Odor Prevention
6) Prevention of Global Warming
7) Prevention of Ozone Layer Depletion
8) Reduction, Recycling, Disposal of Waste
9) Environmental Management Activities
10) Tree Planting, Beautification, Cleaning11) Others
Total: Environmental Conservation Costs
Economic Benefits related to Environmental
Conservation Activities
1) Use of waste heat derived from waste
incinerator
2) Proceeds from the sales ofrecyclable materials
Total: Economic Benefit

Expenditure

19,800398

12,707
92
2,313

1,653

1,368

44,306

119,930
1,530
826
570
139,336

66,157215,172
4,128
219,300

Otsu, Otsu-gun, Okayama Prefecture
Established March 1993
(decorative paneling for housing)

NICHIAS
Myoukenzan
Akadake261

331

Mitsu Industrial Park

UCHIYAMA
MANUFACTUARING

plant siteothers■ Atmosphere
Substance

Facility

Actual Value (Max)Regulated Value

Heating boiler No. 1
Heating boiler No. 2
Heating boiler No. 1
Heating boiler No. 2<0.005<0.005
40
37

0.10
0.10
150
150

Substance

Actual Value (Max)Actual Value (Ave)

Regulated Value

BOD (mg/l)
COD (manganese) (mg/l)
n-hexane Extract (mg/l)
Suspended Matter (mg/l)
Nitrogen (mg/l)
Organic phophorus compounds(mg/l)
Copper (mg/l)
All chrome (mg/l)

3.5
9.8
<1.0
4.5
4.0

2.6
6.3
<1.0
3.2
3.1

10
20
3
50
120

Dust (g/Nm3)
NOx (ppm)■Water Quality (mg/l)(Unit: ¥1,000)

Environmental Conservation Costs
Content
Capitalinvestment

1) Prevention of Air Pollution
2) Prevention of Water Pollution3) Noise Prevention4) Vibration Prevention5) Odor Prevention
6) Prevention of Global Warming
7) Prevention of Ozone Layer Depletion
8) Reduction, Recycling, Disposal of Waste
9) Environmental Management Activities
10) Tree Planting, Beautification, Cleaning11) Others
Total: Environmental Conservation Costs
Economic Benefits related to Environmental
Conservation Activities
1) Proceeds from the sales ofrecyclable materials

54,000

Expenditure

18,581
11,1692,662
840
10,916
18,294
1,678
78,286
4,325
2,304

TolueneEthylene glycol
Monomethyl ether
XyleneEthylene glycol
Monoethyl ether

1,229

149,056

3.1

16

0.04
<0.1

0.5
0.5

(tons/year)

Emissions volume
Atmosphere
Water
Soil

Transport volume
Sewer
Waste

149.6

0

0

0

0

41.0

0

0

0

0

12.3

0

0

0

0

3.1

0

0

0

0

■Industrial Waste
Promotion Targets

Generation per Production(ton / ¥ million)
Final Waste Disposal Rate (%)

Actual Value Voluntary Target Value

0.404

0.43

42.0

39

■Energy Conservation
Promotion Targets

54,000

4.0
0.06
<0.1

■Release and Transport of PRTR Chemicals
Chemical■Environmental Accounting Report

Kanagawa
Mitsu
JuniorHigh School

Dai Nippon Printing
Dai Nippon Printing Kenzai

ine
aL
yam
Tsu

This site is located in the Mitsu
Industrial Park in the central part of
Okayama Prefecture. The plantdeals mainly in the manufacture ofdecorative paneling for housing. In
1993, the plant became involvedin eco-plan promotion activities.
The plant promoted the reduction of environmental
impact centered around 4 working groups covering the
reduction of industrial waste, energy conservation, PRTR
and improvement of the product environment. In July
2000, the plant acquired ISO14001 certification.
In fiscal 2000, the working group on the reduction ofindustrial waste created valuables from used plastics andbegan the recycling of pallets. In addition, the plant wasable to reduce the amount of industrial waste generated
by improving manufacturing processes and reducing
emissions by 31% from the previous year thanks to better
productivity.
The energy conservation working group created electronic maps to get an actual look at energy usage byfacility or area. In fiscal 2000, the plant took up energy
conservation proposals from employees and establisheda energy conversation patrol using members in the working committee. Furthermore, we nurtured themes basedon the energy conservation screening performed by the
Energy Conservation Center, Japan, to reduce wastefulloss. As a result, we reduced fuel consumption (converted to crude oil) by 13% and also improved productivity.
The PRTR working group worked to make organic solvents included no-toluene ink. In addition, to the disposalof the low density organic solvent emitted into the air fromthe organic solvent plant, the solvent is condensed andburned. Steam is recycled from the heat emitted by theburning by using a thermal recycling system. Plans are to
start up the system in fiscal 2001 and to reduce waste bynearly 85%.
The working committee for the improvement of productenvironment is continuing to assess the reduction of environmental impact at the time a new product is designed.
In fiscal 2001, our target is not only to reduce values
but also to aim for continual improvement. We plan to do
this by working to reduce industrial waste emissions andenergy consumption and also by curtailing the absolutevolume of emissions.

Decorative Interiors Operations, Okayama Plant
Review of Environmental Conservation Activities by Business Site

Environmental Manager Review
Dai Nippon Printing Kenzai Co., Ltd.,
Okayama Plant
Toshikazu Yokota, Managing Director, Plant
Manager

Crude Oil Energy Consumption
per Production(kilo liter / ¥100 million)
CO2 Emissions per Production(Carbon tons / ¥100 million)

Actual Value Voluntary Target Value

117.9

147.4

209.6

276.1

33

Environmental Communication Support Services
Environmental Communication Support Services

Since 1999, the DNP Group annually publishes its Environmental Annual Report as a method tocommunicate its environmental conservation activities to external stakeholders.
We continue to make improvements to enable a more detailed and simple way of communicating
our corporate stance of contributing to the creation of a sustainable and recycling-oriented society.
Furthermore, we have made a business out of helping to develop environmental communication
tools, mainly environmental reports. From 1999 we have amassed experience in the area of creating environmental tools for our customers.
We are developing a system to deal with the growing sophistication of information disclosure andwe aim to become the leading company in this field.

Transmitting information to the Public
The 2000 Environmental Report has the following
characteristics.

1. An organizational chart that clarifies the range of
disclosure.
2. The use of environmental accounting as a management tool.
3. Detailed introduction of environmentally conscious products.
4. Introduction of environmental managers fromeach site.
5. To ensure our objectivity, we obtain an independent review report.

Environmental Communication Support Services
Working to create a more sophisticated environmental report
Media Galaxy
Since 1995 DNP has been
operating Media Galaxy, acomprehensive businessservice handled over theInternet. Media Galaxy offers
comprehensive services
including consulting for thecreation of Web pages,planning and production ofcontents, server hosting andsite management. Currently
over 400 companies benefit
from Media Galaxy’s services.

34

Environmental reports are making rapid
progress. Currently, we are in a transitional period, and there is no predetermined format forenvironmental reports. Since the Ministry of theEnvironment provides guidelines, many companies use these guidelines to create their reports.
However, while this may make it easier to makecomparisons, the conformity to these guidelines
may make it difficult to communicate corporatecharacteristics to readers. The balance between
the level of information coverage and the communication of corporate characteristics is important.
We at the DNP Group believe these issues
can be resolved by using our ability to arrange

and present data with the reader in mind, a skill
nurtured through our long experience in theprinting industry.
Importance of disclosure over the Web
In 2000, the number of companies concerned
about their homepages increased. We utilize ourknowhow gained from operating Media Galaxy
and are continually aware of proposals for themultiple-use of printed data.
DNP continues to hold environmental seminars
From 2000, we began holding seminars toteach corporate managers in charge of the environmental reports of their respective companies
how to create environmental reports.

Environmental Communication Support Services

Ties with the local community
The DNP Group has production sites nationwide.
As a member of the community, we endeavor tomaintain open lines of communication with the local
community. We conduct clean up activities in theareas surrounding our business sites and have plant
observation trips. We participate in and offer ourcooperation through annual events, such as the summer festival and fireworks displays. We also partakein and support the operation of various sporting
events. Furthermore, we help sponsor local town
events, join in joint charities, and get involved inblood donations. These efforts help us to deepen our

Kuki Plant: Young drivers volunteer as a clean-up crewties with the local community. We also strive toincrease the safety of local communities by taking
part in disaster prevention training and guidance atcrosswalks.
Unfortunately, at times, we receive complaints
about noise and foul odors from the surroundingarea. We do our best to methodically determine thecause of the problem and not only work to resolve
the crisis but also to ensure that it does not happen
again.

Sayama Plant: Clean-up campaign at the Iruma River

Kami-Fukuoka Plant: Clean-up campaign< Major Volunteer Environmental Activities >• Warabi Plant: Clean Day Activities (every third Friday of the month)• Tohoku Dai Nippon Printing: Clean up of walkways around the vicinity of the plant (weekly)• Shikoku Dai Nippon Printing: Clean up of the surrounding area (twice a month)• Fukuoka Plant: Sidewalk Cleanup in the Neighborhood (Year round)• Commercial printing Operations, Akabane Plant: Clean up of public roadways (May 1, 2000)• Kami-Fukuoka Plant: Clean up campaign for the area surrounding the plant to the nearest train station(Kami Fukuoka)(May 1, 2000)• Kuki Plant: Volunteer Cleaning Activities by the Young Drivers’Club (May 7, 2000)• Tsuruse Plant: Participation in the 2000 Zero Waste Movement (May 25, 2000)• Sayama Plant: Participation in the clean up of the Iruma River (June 10, 2000)• The Inctec Tokyo Plant: Clean up of the west side of the plant (June 16, 2000)• Hokkaido Dai Nippon Printing: Clean up of walkways surrounding the plant (November 2000)< Activities Promoting Communication with the Local Community >• Kyoto Plant: Explanation of construction on the plant premises to towns in the surrounding area (irregularly)• Plants in the Akabane district: Guidance at crosswalks during traffic safety week (Spring and Fall of 2000)• Dai Nippon Cup Sayama Plant: Provides paper cups to the Fureai Hiroba sponsored by the Sayama Social
Welfare Committee (April 2000)• The Inctec Tokyo Plant: Plant observation tours for third grade elementary school students (June 21, 2000)• Chikugo Plant: A supporter of the fireworks display sponsored by the tourism bureau of the city of Chikugo(August 1, 2000)• Okayama Plant: Plant observation trips for foreign university students and those families hosting overseas students(August 2, 2000)• Ichigaya Plant: Contribute notepads and other items to the summer exercise event (August 2000)• Utsunomiya Plant: A supporter in the Nishikata-cho Kappa Festival (August 4, 2000)• Chikugo Plant: A supporter the Mita school district’s Obon dance festival (August 5, 2000)• Warabi Plant: Donate notepads and other items to the summer festival held by three townships (August 6, 2000)• Otone Plant: Participate in the Otone fireworks display (August 12, 2000)• Hokkaido Dai Nippon Printing: Clean up walkways around the plant area (November 2000)• Okayama Plant: Mitsu-cho Summer Festival (November 18, 2000)• Dai Nippon Hoso: Provide an experience of vocational training for second year junior high school students(February 20, 2001)
35

Environmental Communication Support Services

Overseas activities

Reforestation Project in Vietnam

Boned Dry Ton
Weight of completely driedwood.

In 1995, the DNP Group established a joint
venture in Binhdinh Province in Vietnam withNew Oji Paper Co., Ltd., (presently Oji Paper
Co., Ltd.) and Nissho Iwai Corp. for reforestation projects. Owing to war, fires left the hilly
areas barren. Over the past seven years, anannual 1,500ha was planted with acacia andeucalyptus trees. Afforestation plans call for theplanting of a total 10,500ha.
Printing companies are a major consumer of
paper products. In addition to our efforts in theeffective use and recycling of paper resources,
we wish to contribute to global environmental
protection efforts through reforestation programs.
Oji Paper Co., Ltd. is implementing afforestation plans in seven other areas as well, including locations in Australia and New Zealand. The
company has begun sales of paper manufactured purely from the chips from the trees planted in these areas. Chips from the first 1,500ha
planted in Binhdinh will be used to manufacture
paper from 2002. New saplings will be planted
after the trees are cut. Along with the continuation of this long-term afforestation project, thecompany plans to produce 70,000 boned dry
tons in chips per annum.
The repetitive recycling of used paper resultsin the deterioration of pulp fibers. Because ofthis, there is a limit to the number times usedpaper can be recycled before new pulp
becomes necessary. After the trees are cut, thearea is immediately reforested. As a result, thiscreates a pulp source that does not trigger thedestruction of natural forests or global warming.
Reflecting this, DNP Group plans its full-scalecooperation in this program.

Scenery after
afforestation

2000

Hanoi

17˚ N

Thailand

2001

Laos
Binhdinh
Province

Cambodia

VietnamHo Chi Minh City

Working toward acquisition of ISO14001 certification
Tien Wah Press, located at 4 Pandan Crescent, SINGAPORE 128475, mainly involved in theprinting of books in Singapore, has begun activities to acquire ISO14001 certification. The
company aims for the simultaneous acquisition of the OHSAS18001 labor and safety certificate. The company hopes to obtain the certificate in January 2002.

36

Environmental Communication Support Services

Environmental Conservation Awards
The following are awards the DNP Group has received over the years for its environmental conservation
efforts.
1987 April

The Kyoto Plant receives the Agency of Natural Resources and Energy Director
General’s Award for Factories Excellent in Energy Management

1988 March

Dryer for gravure printing developed by the Manufacturing Technology
Integration Laboratory is selected as Excellent Energy-Saving Equipment andcommended by the Japan Machinery Federation

1991 January

The Ichigaya Plant’s roof garden wins the Sky Front Forum Group Commended
Award as a case study in factory horticulture

1993 March

Developed an environmentally friendly medical waste product processing unit,
HAZ-PAC, which wins the JPC Award from the Minister of International Trade &Industry

1993 JulyThe Ichigaya Publication Printing Operations’ Kuki Plant and Dai Nippon
Printing Kuki Micro Co., Ltd., conduct volunteer clean-up operations andreceive a letter of thanks from the Kuki City mayor for “cooperation in cleaning
up the surroundings of industrial complexes”

1994 July

Dai Nippon Printing in Ichigaya and affiliate Dai Pack Co., Ltd. (presently DNP
Logistics Co., Ltd.) , receive the Award of Excellence for their Approach to
Municipal Waste (Office Building Section) from the Tokyo Metropolitan
Government

1995 April

DNP wins the Minister of International Trade and Industry Award, part of the
Fourth Global Environment Awards, which commends companies and organizations contributing to global environmental protection
The Award was established by the Nippon Kogyo Shimbun and the Fuji Sankei Group, withthe cooperation of such entities as WWF JAPAN, MITI, the Environment Agency, and theFederation of Economic Associations (Keidanren)

1996 February

The Ichigaya Publication Printing Operations receive recognition from Shinjuku
Ward (Tokyo) as Business Operators with an Excellent Record in Recycling

1999 June

The Ichigaya Plant’s roof garden wins the Tokyo Metropolitan Government’s
Chief of Environmental Conservation Bureau Award for its contribution to promoting tree-planting

1999 October

The Business Form Operations’ Warabi Plant commended for being “a groupwith waste reduction and environmental beautification” at the Eighth National
Competition for Waste Reduction.

2001 February

The C&I headquarters building and Wakaba dormitories was awarded for distinguished services in 2000 by the Shinjuku Ward for the assessment of its
waste reduction and recycling activities (sponsored by the Shinjuku Ward
office’s Office for Resources and Sanitation).

2000 awards ceremony for distinguished service inthe area of waste reduction and recycling activities

Award from the Shinjuku Ward

Boxes for the separation and collection of used
paper

37

Environmental Accounting
Environmental Accounting

Environmental accounting allows the highly effective promotion of environmental activities.

Purposes
1. Environmental accounting as an environmental management tool
(1) The summary and classification of the costs of environmental conservation activities and their outcome
are used as data for evaluating and reviewing the effectiveness of environmental conservation activities.
(2) Environmental accounting data is used to determine the cost of individual environmental facilities, theGroup’s overall budget for environmental conservation, and the amount of investment in environmental
activities.
(3) Environmental accounting is used to evaluate the outcome and achievement level for the year to ensure
continuous improvement in our environmental performance.
2. Environmental accounting as a communications tool with society(1) Environmental accounting is used to make the DNP Group’s environmental conservation efforts and theiroutcome available to the public.
(2) The opinions and reactions to environmental accounting from shareholders, clients, and local communities are used as feedback to modify our approach to environmental conservation.

Environmental Conservation Cost
Framework* Depreciation costs are standardized in accordancewith the Corporation Tax Law.
* In the calculation of labor costs, the actual labor cost
is used for a full-time researcher and one fifth or tenthof the average salary, depending on the assignments,
is used for a researcher who holds another post.

(1) To measure the outcome of environmental conservation activities, the conversion rate to crude for electricity is 1,000kW to0.265kl. Conversion rates for other fuels are in accordance withconversion rates stipulated in Appendix 1 in Article 3 of the
Enforcement Regulations under the Energy Conservation Law.
Conversions for CO2 are based on the calculations set forth in
the September 2000 results from studies on greenhouse gas
calculations produced by the study group for calculating greenhouse gas emissions volume.
(2) “Sales of environmentally conscious products” refer to the total
sales of those products developed by Dai Nippon Printing
based on concepts such as: 1) a reduction in environmental pollutants, 2) energy and resource conservation, 3) renewable
resources, 4) longer product life, 5) reusability, 6) recyclability,
7) usability as recycled material, and 8) easy of waste treatment.
(In the comparison data, the sales amount given for the current
fiscal year is also for Dai Nippon Printing.)(3) The amount of economic benefits of co-generation (simultaneous supply of heat and electricity) are calculated by subtracting
depreciation and running costs from the market value of generated electricity and steam.
(4) The economic benefits of the heat recovery incinerator is calculated by subtracting depreciation, running costs and waste ash
disposal costs from the sum of the market value of generated
steam and the market price of having the waste treated by anoutside waste treatment company.
(5) Hypothetical assumptions are not made in the calculation of
economic benefits.

Data Collection Progress in Fiscal 2000

Conclusion(1) Costs for onsite business operations include
the following:1) Depreciation of environmental facilities
2) Cost of repairs to environmental facilities
3) Contract fees for running environmental
facilities
4) Labor costs for running environmental
facilities
5) Contract fees for waste treatment (recycling)(2) The recycling fee for sales products shown
under “Cost incurred by upstream and downstream business operations” is the contract
fee paid to the Japan Container and Package
Recycling Association.
(3) Research and development costs comprisethe total costs for materials and labor used forthe development of ecologically-friendly
materials, products and manufacturing facilities at Dai Nippon Printing research institutes.

Incinerator
A furnace for burning
waste.

38

Environmental Accounting• Period: From April 1, 2000 to March 31, 2001
• Subject: 53 domestic business sites in theprinting industry, including affiliated companies• Unit of Data Collection: per business site
• Official format: The Environment Agency’s
Guidelines for Fiscal 2000

(1)Investment for environmental facilities was over JPY2.0 billion,
the same as in the previous year.
• Refurbishment of incinerators, expansion of solvent recycling
facilities, refurbishment of waste water disposal facilities(2)Environmental conservation costs increased 7.9%, to around
JPY11.7 billion• The reason for the increased cost burden is mainly due to repairsof facilities related to the atmosphere, water quality and noise, theexpansion of green purchasing, the full implementation of theContainer and Package Recycling Law, and higher personnel
costs for the fortification of the environmental management system.
(3)Favorable expansion of environmental conservation activities• Sales of environmentally conscious products doubled over theprevious fiscal year to around JPY63.0 billion.
• The economic benefit was approximately JPY2.0 billion, nearly
twice that of a year earlier.
• CO2 emissions remained unchanged from a year earlier. The
final waste processing plant utilization rate was 5.1%, anapproximate 28% improvement year-on-year.

Environmental Accounting Report(Unit: ¥million)

Content

Fiscal 1999

Environmental Conservation Costs
increasing and
Fiscal 2000
decreasing

Environmental Conservation Capital Investment
increasing and
Fiscal 2000
decreasing

Fiscal 1999

1) Preventing Pollution
a. Prevention of Air Pollution

907.1

1,069.6b. Prevention of Water Pollution

871.2

c. Noise Prevention

46.7

d. Vibration Prevention

162.5

209.0

41.9

–167.1

1,047.6

176.4

186.8

220.8

34.0

215.9

169.3

78.4

21.6

–56.8

3.9

18.5

14.6

0

0.3

0.3

e. Odor Prevention

466.3

324.3

–142.0

116.7

362.7

246.0

f. Others

48.1

21.3

–26.8

41.2

3.2

–38.0

a. Prevention of Global Warming

921.1

891.6

–29.5

810.1

881.8

71.7

b. Prevention of Ozone Layer Depletion

290.5

363.7

73.2

570.9

344.5

–226.42) Preserving the Global Environment3) Resources Recycling
a. Reduction and Recycling of Waste

843.8

749.7

–94.1

40.4

129.0

88.7

b. Treatment and Disposal of Industrial Waste

3,250.5

3,043.1–207.4000c. Treatment and Disposal of Municipal Waste
Total: Onsite Business Operations

2.6

7.7

5.1

0

0

0

7,651.7

7,752.9

101.2

2,053.3

2,005.9–47.5

Total investment 2,053.3

2,005.9–47.5

Environmental Conservation Costs
increasing and
Fiscal 1999 Fiscal 2000
decreasing

Content

Sales of Environmentally Conscious Products(2) Upstream and Downstream Business Operations

Division

1) Green Purchases

0.4

203.3

202.9

2) Recycling of Sales Products

5.3

63.8

58.5

Total: Upstream and Downstream
Business Operations

5.7

267.1

261.4

(3) Management Activities
1) Environmental Education

2.4

1.6

2) Environmental Impact Assessment

62.6

75.6

12.9

3) Establishing and Operating EMS

17.1

13.8

–3.3

4) Labor Costs for Environmental Management

649.2

1,055.8

406.6

Total: Management Activities

731.4

1,146.8

–0.8

415.4

(4) Research and Development

Fiscal 2000(2)(2)/(1)

Information and Media Supplies

Fiscal 1999(1)2,971.6

5,578.9

1.88

Lifestyle Products

26,966.7

42,289.2

1.57

Electronic components—

4,311.8—

Others—10,852.3—

Total

29,938.3

63,032.3

2.11

Economic Benefit related to Environmental Conservation Activities
Division

Fiscal 1999(1)2,501.1

54.1(2)/(1)

132.1

368.2

2.79

Savings from the use of incinerator waste heat

127.0

558.5

4.40

Proceeds from the sales of recyclable materials
2,447.0

Fiscal 2000(2)Energy cost savings from co-generation

Total

748.4

1,140.0

1.52

1,007.5

2,066.7

2.05(5) Cost of Activities in the Community
1) Tree Planting, Beautification, Reforestation

47.6

59.9

12.3

2) Support for Environmental Groups

5.5

4.3

–1.2

Division

Fiscal 1999(1)Fiscal 2000(2)(2)/(1)

3) PR on the Environment, others

6.9

29.1

22.3

60.0

93.4

33.3

4.88
(TJ/¥100 million)

4.93(TJ/¥100 million)

1.01

Total: Activities in the Community

Added value related to volume
of energy consumption
Added value related to volumeof CO2 emissions

177(t/¥100 million)

177(t/¥100 million)

1.00

0

0

0

Added value related to volume
of waste emissions

0.343(t/¥million)

0.322(t/¥million)

0.939

10,895.9

11,761.3

865.4

Final waste disposal rate
(Landfill area/total emissions)

7.2%

5.1%

0.718

(6) Environmental Damage
1) Penalties, Fines, Repair costs
Total

Benefit from Environmental Conservation Activities

Environmental Ratio (Ratio of the environmental portion to the total)
Items

Capital investment
Research anddevelopment expenditure
Sales amountFiscal 2000
results

90,500.0

Environment-related portion
Environmental Ratioof fiscal 2000 results

Environmental ratio
for fiscal 1999

2,054.2

2.27%

2.04%

22,257.0

2,501.1

11.24%

11.64%

1,086,681.0

63,032.2

5.80%

2.88%

39

Environmental Accounting Report(1) Onsite Business Operations

Environmental Targets in Fiscal 2001
Environmental Targets in Fiscal 2001

The DNP Group established its “Environmental Targets” in order to minimize the environmental impact of its
business operations, based on its belief that the market in the 21st Century will only lend its support to companies that make efforts to establish and maintain an environmentally conscientious society. From this point on, we
aim to enhance our reputation as a company that effectively carries out environmentally sound business practices by releasing to the public the results of our efforts in our environmental reports and through our home page.

The DNP Group’s Environmental Targets
Development and Sales of Environmentally Conscious Products• Increase sales of environmentally conscious products by 10% on an annual basis.
PRTR• By fiscal 2005, reduce the discharge and transport volume of chemical substances specified asclass-1 under the PRTR Law by 50%, as compared with figures for fiscal 2000.
Prevention of Global Warming• Establish internal standards for the prevention of global warming which are stricter than standards regulated under the Energy Conservation Law.
• Aim to achieve the following targets by fiscal 2010.
• Maintain total energy consumption at fiscal 2000 levels.
• Maintain greenhouse gas emissions at fiscal 2000 levels.
• Reduce energy consumption (consumption of energy converted from crude oil divided byproduction value) by 15% compared to fiscal 1990 levels.
Reduction of Industrial Waste
Aim to achieve the following targets by fiscal 2005.
• Reduce the ratio industrial waste generated (volume of industrial waste divided by production
value) by 20% compared to fiscal 2000 levels.
• Reduce total waste generated by 10% compared to fiscal 2000 levels.
• Achievement of zero emissions at 20 sites.
• Aim for a 20% reduction rate (total waste generated divided by total materials used) comparedto fiscal 2000 levels.
• Boost the rate of recycling (amount of materials recycled divided by total waste generated) by
20% compared to fiscal 2000 levels.
Environmental Conservation
Aim to achieve the following targets by fiscal 2005.
• Maintain maximum density of gases listed in regulations on emissions into the atmosphere under
70% of regulatory standards.
• Maintain maximum density of items listed in regulations on wastewater under 70% of regulatory
standards.
• Maintain the maximum odor levels at site boundaries under 70% of regulatory standards.
• Maintain the maximum noise and vibration levels at site boundaries under 95% of regulatory
standards.
Office Environmental Conservation Targets• Ratio of used paper separated and recycled should exceed 65% that of municipal waste.

Environmental labeling
The use of written, symbol, pictorial or graphicalinformation to informconsumers of the environmental impacts related to a certain productor service. A typical formof environmental labelingis the Eco-Mark.

Green Purchasing• In comparison to the total amount of raw materials purchased, increase the amount of goods
purchased under the purchasing headquarters’ green purchasing standards by 2.5% year-onyear.
• Compared with the total amount of general supplies (including office supplies and fixtures),increase the number of products bearing environmental labeling, such as the Eco-Mark, etc., by
3.0% year-on-year.
Environmental Management System• Expand the number of ISO14001 certified sites to 15 by 2001 and to 30 by 2005.
• Implement eco-audits at all sites.
Created December 18, 1992
12th revision March 21, 2001

40

Independent Review Report
Opinion of Auditing Firm
Independent Review Report

In order to ensure the reliability of this report, we had our DNP Group Environmental Annual Report
2001 (“the Report”) examined by a third party, the auditing firm Shin Nihon & Co. The conclusion of thisreview is as indicated in the following copy of “Independent Review Report on DNP Group
Environmental Annual Report 2001.”
The review was performed from July through August by Shin Nihon & Co. specialists, consisting ofcertified public accountants, environmental examiners and certified environmental measurers. The
consistency of the descriptive information in the Report was reviewed with the respective supporting
documents such as draft proposals and various meeting minutes. In order to verify our numerical information, we provided information on the methods to collect and calculate the data such as the “EcoReport System” and answered various questions posed by the auditing firm. In addition, in order toverify the operations of the “Eco-Report System”, the auditing firm performed on-site
inspections of the six plants mentioned in “Environmental Conservation by Plant,”
interviewed the responsible individuals, and obtained our invoices and measurement
certificates on a sample basis.
The conclusion of the Shin Nihon & Co. review is indicated below. Based on theirremarks, we intend to improve the “Eco-Report System” and show positive results in
our environmental report for the next year.

Reviewing committee

Opinion of Auditing Firm.
Characteristics of Environmental Management:
The DNP Group operates its own environmental management system, the “Eco-Report System”, which monitors theGroup’s progress towards the environmental targets. Under thesystem, all data concerning environmental achievements arerecorded in accordance with the PDCA cycle and disclosed
within the company. Each division of the Group sets its own
environmental policy and targets in considering with the situation of the division. As a whole, the group tackles the full range

of environmental issues at individual sites. As the “Eco-Report
System” also incorporates environmental accounting systemwith environmental management system, it is suitable for controlling the company’s environmental activities under circumstance of environmetal cost and the effects.
Improvement since the previous Review
In our last review, we pointed out a number of matters that
required attention. In accordance with our recommendations,the DNP Group revised its standards and operations. Major
improvement are as follows;
1. The methods of collecting and reporting data were educated at each site. As a result the Group improved the accuracy of its figures for environmental accounting and environmetal performance.
2. Improvement was seen in the method of interpretation ofcertain costs in environmental accounting as a result of theGroup’s instruction to enter the actual cost amount.
Recommendation
1. We recommend that the Group establish an internal verification system in order to help detect and prevent mistakes
as the reliability of the Report depends on the degree of
reliability of the environmental reports of individual sites.
2. To ensure the accuracy of environmetal accounting, it isimportant to take procedures according to the internal standards when inputting data. Therefore, we recommend that
the Group adopt user friendly format for inputting data foreach site manager. In addition, we recommend that theaccounting of numerical data be computerized in order tominimize the possibility of manual error when counting
numerical data.
3. If the effects of environmental conservation are evaluated interms of unit requirements only, the results of environmental
activities may not be clearly reflected in the actual numerical amounts. It is desirable that the method of indicating
effects and the type of indicators used be improved by the
beginning of the next business year.

Independent Review Report

41

The above character symbolizes the support of communication.
This character stands as an emblem of
support for printing and communication.
For the cover of this environmental report,
we chose to use a TOMPA character. Manyof the characters used in the TOMPA
alphabet express some facet of nature. We
plan to introduce many words from the
TOMPA alphabet related to the environment.
TOMPA characters
TOMPA hieroglyphic characters are usedby the Naxi, a minority race living in the
Lijiang region of Yunnan Province, in the
People’s Republic of China (PRC). The letters are still used on a daily basis, indicating that the language is alive and well.
Joseph Rock, a member of the National
Geographic Society dispatched to the PRC
in the 1920’s, was the first to focus upon,
research and introduce the TOMPA characters to the world. This also inspired creative art director Katsumi Asaba to expand
his research of Asian characters to the
TOMPA written language. In Japan, linguistics professor Tatsuo Nishida is known for
his academic research in the field.
The TOMPA characters were used byshaman when performing sacred rights
while chanting religious scriptures. The oldtown of Lijiang is listed on UNESCO’s
World Heritage list.
TOMPA Character Design: Katsumi Asaba
The TOMPA character of the cover represents heaven and earth. The top of thecharacter which resembles a parentheses
mark symbolizes heaven, while the “soupbowl” in the lower portion of the character
signifies earth. By adding a mark meaning“heaven and earth calling out to one another,” the character comes to mean “the resonance of sky and earth.” The character
represents something of great scale and isa fun way of communication.

1-1, Ichigaya Kagacho 1-chome
Shinjuku-ku, Tokyo 162-8001, JapanFor inquiries:
Environment & Product Liability Department: +81-3-5225-8480
Press and Public Relations Department: +81-3-5225-8220
http://www.dnp.co.jp/©2002.2

48
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S

Reader Survey

We would like readers of this report to complete the following survey so that we may incorporate youropinions in our next DNP Group Environmental Annual Report. This year's survey uses a graded-scoreanswering format. We hope to use your evaluations as a reference for further improvement of our nextreport.

Please circle the scoring that most closely resembles your opinion:(5) ... Excellent(4) ... Good(3) ... Fair
(2) ... Poor
(1) ... Extremely Poor

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(Problem points◆ Please circle the section(s) that interested you most• Message from the President• DNP Corporate Overview• DNP Organizational Chart• Message from the Managing Director in Chargeof the Environment• New Topics in Fiscal 2000
• The DNP Group's Basic Environmental Philosophy• The DNP Group's Environmental Policies andEnvironmental Targets• Material Flow Charts for the DNP Group's Main
Businesses (By Division)• DNP's Unique Environmental Management System"Eco-Report System"• Development and Sales of Environmentally Conscious
Products• Environmental Conservation Activities• Review of Environmental Conservation Activities
by Business Site
• Environmental Communication Support Services• Environmental Accounting• Environmental Targets in Fiscal 2001
• Independent Review

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