CSR REPORT 2018

Contents / Editorial Policy

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

DNP Group CSR Report 2018
CONTENTS
02
03
04

Corporate Profile
A Message from the
CSR-Environment Committee Chairman
CSR at DNP- Three Corporate Responsibilities- DNP Group Vision 2015 / Code of Conduct- CSR Management: Principal Themes

09

Report on Activities under Each Principal Theme
09 - Business to Contribute to SDGs Achievement
11 - Fair Operating Practices
13 - Human Rights and Labor
18 - Environment
21 - Responsible Procurement

38
46

Editorial Policy
A company is only viable when society is sound, andcontributing to the sustainable development of society
translates into its own sustainable growth. Making sucha contribution requires integrated thinking to leverageboth financial and non-financial capital in a cohesive
manner and integrated corporate activities based on
swift and accurate decision-making.
Under this belief, DNP published its first DNP Group
Integrated Report in 2018, and at the same time, reexamined how we should disclose sustainability-related
information. In this DNP Group CSR Report, we specifically cover social issues that are of high interest to
stakeholders and broadly report on our approach andinitiatives concerning these issues. We will ensure our
accountability by disclosing information in an appropriate and timely manner through this report as well as
through the DNP Group Integrated Report, the DNPGroup Environmental Report and our corporate website.

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

Financial and non-financial information to meetstakeholder needs is provided in an easy-tounderstand form via a range of media

Period covered by this report

April 1, 2017 to March 31, 2018 (FY2017)25 - Product Safety and Quality

However, reporting is not confined to this period regarding somecontents.

28 - Information Security

Scope of report33 - Corporate CitizenshipIn this report, “DNP” indicates the DNP Group, as distinct from Dai
Nippon Printing Co., Ltd. The designation “DNP Group” shall be
used in contexts where we emphasize the Group as a whole.

FY2017 CSR Management Report
Recognition from Society

DNP Corporate Website
DNP information database for presenting
financial and non-financial information

CSR sectionsof the website

CSR Report Environmental Integrated Report(PDF)
Report (PDF)(booklet/PDF)

All companies and divisions of the DNP Group

IssuedOctober 2018 (Next scheduled issue: September 2019)DNP Group CSR Report1

About the cover design:
The design features diverse human resourcesof DNP, who play a key role in delivering ourcorporate philosophy, “connecting individuals
and society, and providing new value.”

Contents / Editorial Policy

Corporate Profile

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report(as of March 31, 2018)

Company Name: Dai Nippon Printing Co., Ltd.
Head Office:	1-1, Ichigaya Kagacho 1-chome,
Shinjuku-ku, Tokyo 162-8001, Japan

Number of Employees: 38,627 (Consolidated)
10,775 (Non-consolidated)
Group Companies:

Tel: +81-3-3266-2111

Consolidated subsidiaries: 105
Equity-method affiliates:
18

Website:Established:

http://www.dnp.co.jp/eng/
October 1876

Financial Data: (FY ending March 2018)
Net Sales

Incorporated:

January 1894

Paid-in Capital:¥114,464 million

Operating Income ¥46.3 billion (up 47.6% year-on-year)
Ordinary Income ¥50.9 billion (up 38.7% year-on-year)
Net income attributable to shareholders of the parent		¥27.5 billion (up 9.0% year-on-year)

Business Segments:

Information Communication
Publishing printing, commercial printing, smart cards,
network business, imaging communication, etc.

Printing

Lifestyle and Industrial Supplies
Packaging, residential and non-residential interior andexterior materials, industrial supplies, etc.

Electronics
Display components, electronic devices, optical film, etc.

Beverages

Recognition from Society

Beverages
Manufacturing and sales of soft drinks by Hokkaido
Coca-Cola Bottling Co., Ltd., etc.

¥1,412.2 billion (up 0.1% year-on-year)

Percentage of
total sales

54.9 %“honto”
hybrid-type generalbookstore

Smart cards andrelated products

Ki-Re-i ID photobooth

27.8 %

Packaging

Automotive
interior materials

Exterior
materials forbuildings

13.3 %

Semiconductor
photomasks

Master templatefor nanoimprinting

Optical films
used fordisplays

4.0 %Soft drinks

DNP Group CSR Report2Contents / Editorial Policy

Corporate Profile

A Message from the CSREnvironment Committee Chairman

A Message from the
CSR-Environment
Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Corporate Founding,” we primarily addressed issues of our corporate customers.
In our “Third Corporate Founding,” we will go a step beyond and earnestly take theinitiative in identifying issues facing people and society and finding solutions byutilizing our financial and non-financial capital.

Reinforcing CSR Management to Increase Corporate Value

Satoru Inoue
CSR-Environment Committee Chairman, Managing Director

First of all, I would like to express my sincere condolences to the persons who losttheir lives in the June 2018 earthquake that hit the northern part of Osaka and theJuly 2018 heavy rain that caused serious damage across prefectures mainly inwestern Japan. I also would like to convey my heartfelt sympathy to the residentsof the disaster-stricken regions.
DNP has been strengthening its ability to withstand natural disasters and has
formulated and implemented Disaster Response Work Plans and a BusinessContinuity Plan (BCP), which take into consideration the natural disaster risk andemergency procedures against other emerging threats. We will continue to expand
our collaboration with local communities and increase our disaster resilience.

Seeking to Resolve Social Issues through Corporate Activities
DNP is now making Group-wide efforts toward the realization of our “Third
Corporate Founding.” This means to combine DNP’s accumulated strengths in thefields of printing and information (P&I) and the strengths of our many partners tocreate value that will resolve social issues, and by doing so, to achieve sustainablegrowth of both DNP and society. The concept represents our very idea of corporate social responsibility (CSR), in which all employees contribute to society throughour business, enabling us to fulfill our social responsibility as a company.
DNP’s predecessor, Shueisha, was founded in 1876 to carry out businesscentered on publishing printing. In the tumultuous post-war period, DNP promoted“expansion printing” to broaden our business domains by applying our printing
technologies and achieved what we refer to as our “Second Corporate Founding.”
Now, however, we are witnessing dramatic changes in the times. For example, theworld is experiencing frequent natural disasters, possibly as an effect of global
warming and climate change. Our natural resources are also limited, and we must
make an all-out effort to resolve a number of issues facing society. In the “Second

For DNP, CSR means to maintain the trust of all of our stakeholders. We haveaccordingly specified three responsibilities, namely value creation, integrity in conduct and transparency (accountability), and have been promoting corporate activities to fulfill these responsibilities. In order to yield maximum results from our efforts,
we are also enhancing corporate governance and reinforcing CSR management.
Particularly in the area of CSR management, we clearly define Principal Themes
to be promoted. In establishing these themes, we identify important, priority
themes of DNP in relation to our management policies and business fields andconduct comprehensive analysis while incorporating priority themes emphasized
by the international community, mainly based on the 10 principles of the UN Global
Compact and the Sustainable Development Goals (SDGs). In FY2017, we reexamined the existing Principal Themes and newly established eight themes. These are:Business to Contribute to SDGs Achievement; Fair Operating Practices; Human
Rights and Labor; Environment; Responsible Procurement; Product Safety andQuality; Information Security; and Corporate Citizenship. For each theme, we havedefined a medium-to long-term vision and specified the corresponding SDGs,
along with priority tasks for achieving the vision and their performance indicators, inorder to ensure ongoing activities.
In working toward the realization of our Principal Themes, we redefined our greenhouse gas (GHG) emissions reduction target, and the new target (to achieve a 25%
reduction from the FY2015 level by 2030) has been recognized by the international
Science Based Targets (SBT) initiative as “science based” in helping to achieve thegoal of the Paris Agreement, which is to keep global warming below two degrees
Celsius. With the cooperation of 130 key suppliers of our overseas business locations, we also conducted a survey on their level of compliance with the DNP GroupCSR Procurement Guidelines. In addition, we formulated the DNP Group AntiBribery Policy. These are just a few examples of our recent main activities.
Going forward, DNP will fulfill our social responsibility by constantly providing
new value that will accelerate the resolution of social issues while endeavoring togain the trust from many people in society.

DNP Group CSR Report3Corporate Profile

Contents / Editorial Policy〉〉

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Three Corporate Responsibilities 〉〉 DNP Group Vision 2015 / System 〉〉 CSR Management 〉〉 Principal Themes

CSR at DNP
DNP’s Approach to CSR
At DNP, corporate social responsibility (CSR) means both making contributions
through our business activities and maintaining the trust of all of our stakeholders
by living up to the varying expectations of members of society. To remain acompany trusted by society, we will fulfill our three important responsibilities ofValue Creation, Integrity in Conduct and Transparency (Accountability).

Three Corporate Responsibilities

Responsibility 1

Responsibility 2

Responsibility 3

Value Creation

Integrity in Conduct

Transparency (Accountability)

The most fundamental responsibility of a company
to society is “providing new value to society.” Wemust make a connection between the offering ofproducts and services necessary to the sustainable
development of society and the growth of thecompany. DNP will continue to provide new value
which contributes to the solution of social issues
under our Business Vision.

The second responsibility is “practicing fairness andimpartiality in value creation processes.” No matter
how superior or useful to society the value producedis, value is compromised if, for example,
environmental damage occurs or laws are broken
during the value creation process. Therefore, DNP
seeks to fulfill this responsibility by ensuring that all
employees always conduct business with integrity inaccordance with the DNP Group Code of Conduct.

Finally, the third vital corporate responsibility is“being a company that is accountable and highly
transparent.” DNP achieves accountability byencouraging all employees, during the course of
their regular duties, to engage in TAIWA(“dialogue”) with stakeholders, listen to theiropinions and provide correct information
themselves.

DNP Group CSR Report

4

〉
〉

A Message from the CSREnvironment Committee Chairman

Corporate Profile

Contents / Editorial Policy

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Three Corporate Responsibilities 〉〉 DNP Group Vision 2015 / System 〉〉 CSR Management 〉〉 Principal Themes

CSR at DNPCorporate Governance and Internal Controls System

The fundamental points of reference for fulfilling these responsibilities and providing
new value that will resolve social issues are the DNP Group Vision 2015 and the
DNP Group Code of Conduct. To support DNP’s corporate activities, we have alsoestablished a system of corporate governance and internal controls, which we
continually seek to upgrade and improve.

General Meeting of Shareholders
Audit

Audit
Board of Directors
Advisory Committee

Management Committee

President and Directors in Charge

DNP Group Vision 2015 / Code of Conduct

ReportingCorporate Ethics Committee

Information Security Committee
Quality Assurance & Product Safety Committee
Central Disaster Prevention Council

Audit
Guidance

Legal and other main divisions(CSR & Environment Department, Employee Relations
Department, R&D and Engineering Management
Division, Finance & Accounting Division, Strategic
Business Planning & Development Division, Intellectual
Property Division, Corporate Communication Division,
Legal Affairs Department, etc.)

ReportingAssistance
Audit Unit

(Autonomous implementation, Guidance
inspection, review,
Training
improvement)

DNP Group Code of Conduct
1. C ontributing to the development of society
1. S ocial contribution as a good corporate
citizen
1. C ompliance with the law and social ethics
1. Respect for human dignity and diversity
1. E nvironmental conservation and therealization of a sustainable society

Check

CSR & Environmental Committee

Auditing Department

Group companies

Audit

Information Disclosure Committee

Divisions

TAIWA and Cooperation

Open Door Room(Oversight of internal controls)

Guiding
Principles

Audit

Reporting

Head OfficeBusiness
VisionDirectors andCorporate Officers
in charge
Operating Units

Use P&I Innovations to
expand business,
primarily around four
growth areas.

DNP
Group Vision
2015

Accounting Auditors

Philosophy

The DNP Group connects
individuals and society andprovides new value.

Board of Statutory Auditors

Corporate

Audit

1. Realization of a ‘universal society’
1. Ensuring the safety and quality of our
products and services
1. Ensuring information security
1. Proper disclosure of information
1. Realization of a safe and vibrant workplace

As preconditions for fulfilling our Three Responsibilities, we have established the DNP Group Vision 2015, the foundation of our businessactivities, and the DNP Group Code of Conduct, setting forth the conduct with integrity that all employees must adhere to. The Group Visioncomprises the three elements of the Corporate Philosophy, Business Vision and Guiding Principles, showing our commitment to society, to drive
the creation of new value that contributes to solving the challenges faced by society.

Guidance
Reporting
Coordination

To realize our Group Vision, DNP has established a structure for appropriate management decision-making, precise and speedy operational
implementation and oversight and auditing of such implementation, which we continually seek to upgrade and improve. To further reinforce thatstructure, we operate a system comprising 11 directors, including two outside directors (as of June 2018). Furthermore, based on the principlesof Japan’s Corporate Governance Code increasingly being adopted among companies in Japan, we are actively promoting TAIWA (“dialogue”)
with shareholders and investors. The nomination of director candidates and director compensation are considered and reviewed by theManagement Committee, with the advice and recommendations from the Advisory Committee consisting of independent outside directors, andthen discussed and determined by the Board of Directors.

DNP Group CSR Report5Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Three Corporate Responsibilities 〉〉 DNP Group Vision 2015 / System 〉〉 CSR Management 〉〉 Principal Themes

CSR at DNP

CSR Management
CSR Management System
At DNP, we have a CSR-Environment Committee comprised of directors and corporate officers in charge of the respective matters at the head office. Led by amanaging director, the committee deliberates on and decides DNP’s CSR policies
and targets. The dedicated CSR department and other relevant departments thencollaborate to undertake specific activities based on, and to achieve, the targets
established by the committee. Various committees have also been established todeal with key CSR themes such as corporate ethics and information security.

Establishing Principal Themes
DNP defines Principal Themes to promote CSR activities. In establishing these
themes, we examine our management policies, business lines and strengths
against various social issues* from a multifaceted perspective and identify important, priority issues. In FY2017, to increase the effectiveness of our CSR activities,
we reviewed how DNP envisions our relationship with society and specified neweight Principal Themes, which represent matters we particularly value. (Refer topages 7-8) With a view to enabling both society and DNP to grow in a sustainable
manner, we will continue to proactively tackle issues facing society and seek tomaintain the trust placed upon us by society.

In July 2006, DNP announced its support for the GC and its 10principles relating to human rights, labor, the environment and anti-corruption and is working to reflect their spirit in its Group management.

The Sustainable Development Goals (SDGs)
In September 2015, the UN General Assembly adopted the 2030 Agenda for
Sustainable Development. The Agenda’s action plan consists of 17 Sustainable
Development Goals (SDGs) and 169 targets. With the entire world working toward
these goals and targets, it aspires to realize a society where no one will be left
behind.
The future society depicted in the DNP Group Vision 2015 is sustainable, thatis, it is an abundant society in which the SDGs have been achieved. To ensure that
we fulfill our responsibility as a company deeply engaging with society, we will
provide new value while using the SDGs in all aspects of our corporate activities asa measure to gauge our work toward a better society.
We will voluntarily contribute to the achievement of the SDGs by way of “value
creation” through our products and services and by leveraging our “foundation to
support value creation” throughout our value chain.

* Social issues emphasized in the UN Global Compact, the Sustainable Development Goals (SDGs), the UN Guiding
Principles on Business and Human Rights, ISO 26000 international guidelines for social responsibility, ISO 20400 forsustainable procurement, other international treaties and agreements and ESG/SRI (socially responsible investment);
and those reflecting stakeholders’ opinions.

Supporting International Sustainability Frameworks
The United Nations Global Compact
The UN Global Compact (GC) calls upon companies and organizations to demonstrate responsible, creative leadership, act as a good member of society and takethe initiative to participate in the creation of global structure for sustainable growth.

DNP Group CSR Report6

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Three Corporate Responsibilities 〉〉 DNP Group Vision 2015 / System 〉〉 CSR Management 〉〉 Principal Themes

CSR at DNP

CSR Management: Principal Themes

Foundation to support value creation

Value creation

DNP’s principal themes andSDGs covered by the themes

Medium-to long-term vision

Performance indicators to monitor the progress in achieving the vision and the targets

Business to Contribute to SDGs Achievement
We create new value through products
and services, which will contribute to theachievement of the SDGs, and help
society grow in a sustainable manner.

(1) S ales of environmentally conscious products andservices(DNP contributes to achieving the SDGs through all its
business activities. DNP set the above as one of the clear
indicators to monitor progress.)(1) Achieve sales of 600 billion yen by
FY2020.

Fair Operating Practices

We help to maintain and develop orderly,
free and competitive markets based onlaws and social ethics and by always
remaining fair and equitable.

(1) N umber of meetings of the Corporate Ethics
Committee(2) B ases holding Autonomous Corporate Ethics Training(1) Hold meeting once a month (12 times
a year).
(2) Achieve 100% (covering all applicable
bases).

Human Rights and Labor

We respect diversity in the culture,nationality, creed, race, ethnicity,
language, religion, gender, age andways of thinking of all persons and fulfill
our responsibility to protect humanrights. We also seek to maintain andimprove our working environment toenable everyone to work safely andremain healthy.

Environment

To create a sustainable society with the
Earth’s limited natural resources, wereduce environmental impact andconserve biodiversity while ensuring
compliance with environmental laws andregulations and by recognizing our
relationship with the environment in all
business activities.

(1) Number of women in managerial positions(2) Ratio of employees with disabilities(3) Annual paid leave taken(4) Frequency rate of lost workday injuries* In FY2018, we will consider the establishment of a system
concerning human rights due diligence.

Reference → p. 45 Environmental Activity Targets and Results

DNP Group CSR Report7(1) Double the number of women in
managerial positions by FY2019
compared with the number (96) at theend of FY2015.
(2) Achieve the ratio above 2.0% in
FY2017 and above 2.2% in FY2018
onwards.
(3) Achieve an increase over the previous
fiscal year.
(4) Keep the rate below 0.2.

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Three Corporate Responsibilities 〉〉 DNP Group Vision 2015 / System 〉〉 CSR Management 〉〉 Principal Themes

CSR at DNP

CSR Management: Principal Themes
DNP’s principal themes andSDGs covered by the themes

Foundation to support value creation

Responsible Procurement

Product Safety and Quality

Information Security

Corporate Citizen

Medium-to long-term vision

For creating excellent value andcultivating strong compliance awarenessat the same time, we work jointly with
our supply chain stakeholders andconduct procurement that gives due
consideration to human rights, theenvironment and other factors.

We seek to gain the trust of society byprioritizing the safety and quality of our
products and services as part of our
responsibility as a company that
supplies these to society.

Performance indicators to monitor the progress in achieving the vision and the targets(1) A verage score of DNP Group CSR Procurement
Guidelines survey on key suppliers(2) P ercentage of overseas business locations conducting
DNP Group CSR Procurement Guidelines surveys(3) P ercentage of key suppliers conforming to DNP Group
Guidelines for Procurement of Paper for Printing andConverting(1) Achieve average score of 90 points by
FY2030.
(2) Achieve 100% (covering all overseas
business locations).
(3) Achieve 100% by FY2030.

(1) N umber of serious accidents* caused by our products* Including cases where a defect in our products jeopardizes
the user’s life, causes serious bodily harm or inflicts serious
damage on the user’s property (other than the product itself)(1) Achieve zero accidents.
(2) Achieve 100%.

(2) P ercentage of newly developed products undergoingproduct safety and risk assessment

We ensure the exceptional security of
personal information and all otherinformation assets through management
and protection as part of the social
responsibility of a company handlingsuch information assets.

(1) N umber of information security complianceassessments conducted(2) N umber of inspections and instructions on departments
implementing priority measures for personal information
security performed by executive officers in charge(3) P articipation rate of information security education andtraining(4) N umber of security vulnerability tests for publicly open
websites which handle personal information(1) Achieve 100% (covering all businessdepartments and group companies).
(2) Achieve 100% (covering all applicable
bases).
(3) Achieve 100% (covering all applicabledepartments).
(4) Achieve 100% (covering all applicablesites).

We contribute to society by resolvingsocial issues, conducting volunteer
activities and through cultural activities
as we look to deepen our relationshipwith society as a good corporate citizen
that coexists with society.

(1) N umber of external participants for DNP's original
future generations development programs(2) N umber of local volunteer activities held each year to
support reconstruction of disaster-stricken regions,
including Tohoku and Kumamoto(1) Achieve an accumulated total of 7,500
persons from FY2015 to FY2019.
(2) Constantly conduct activity three times
a year until FY2019.

DNP Group CSR Report8

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Business to Contribute to SDGs Achievement
Medium-to
long-term vision

We create new value through products andservices, which will contribute to the achievementof the SDGs, and help society grow in asustainable manner.

We seek to resolve various challenges in society through our business by focusing
on particular issues for which DNP can provide unique solutions and by combining
our strengths in the printing and information (“P&I”) fields and strengths of ourexternal partners. In a sense, the United Nations’ SDGs, which represent many
unresolved issues, could be regarded as a source of value creation. While using theSDGs as a measure to gauge our work toward a better society, we will create newvalue unique to DNP and contribute to the realization of a sustainable society.

Initiatives Related to Environmentally Conscious Products andServices
At DNP, we have created the Environmentally Conscious Products and Services
Development Guidelines to direct from the design stage the creation of environmentally conscious products, so as to reduce the environmental impact of our
products and services throughout their lifecycle. To develop more eco-friendly
products and services, we have introduced an internal certification system to rate
products and services using points and certify “Super Eco-Products” and “EcoProducts” based on the points earned.
Sales of environmentally conscious products and services amounted to 599.3
billion yen in FY2017 and reached the specified target. Moreover, 38 products haveso far been certified as Super Eco-Products as of March 2018.

SDGs Covered by the Vision

Integrating the SDGs into Corporate Activities

Performance Indicators to Monitor the Progress in Achieving the
Vision and Activity Results
Performance indicator

Target(1) Sales of environmentally conscious
products and services(1) Achieve sales of 600
billion yen by FY2020.

In order to help create a better society, it is important that we consider various
social issues in conducting activities of DNP and link these activities to the provision of value. We believe that the SDGs offer valuable insight, which will enable us
to create new value for the sustainable development of society while leveraging ourstrengths, and have been integrating the SDGs into our corporate activities.

FY2017 result(1) 599.3 billion yen(DNP intends to contribute to the achievement of the SDGs through all its corporate activities and has selected theabove as one of the indicators to clearly monitor the progress of its efforts.)

DNP Group CSR Report9Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Business to Contribute to SDGs Achievement
SDGs Supported by DNP
Example 1

Functional Films

DNP’s diverse range of functional films offer excellent functionality to control light, heat and humidity. To achieve this level offunctionality, we have improved, refined and applied ourtechnologies cultivated in printing processes, such as photolithography technology to form fine patterns on a metal surface
and coating technology to uniformly apply ink and othermaterials. The added value brought about by this functionality Multifunctional insulation box
serves to promote energy and resource savings and help toaccomplish both economic growth and conservation of the global environment.
Our multifunctional insulation box uses a thin, lightweight vacuum insulation
panel, and when used with refrigerating materials, maintains refrigeration temperatures for a long time without using electricity. With this product, we are encouraging
the establishment of an efficient cold chain that can keep the freshness of foodstuffs exported from Japan even in regions where refrigerated trucks are not readily
available.

having physical or mental concerns or difficulties sometimes need help in public
spaces. There are also people who wish to help but are too nervous to act spontaneously. The “&HAND” project uses the LINE communication app to match people
in need and those willing to help to turn kindness into action. (Please refer to thediagram below for how it works and how to use it.)In December 2017, DNP, Tokyo Metro Co., Ltd., LINE Corporation and theGeneral Incorporated Association PLAYERS jointly conducted five-day field testing
on a subway car of Tokyo Metro’s Ginza Line to connect expectant mothers wishing to have a seat and supporters willing to offer their seats. During the testing,
11,415 users registered the “&HAND” account as their friend, and among those
who actually participated in the test, there were 3.2 supporters on average for one
person needing help.
We will continue to work toward the commercialization of the project while
improving its service quality and contribute to the realization of “a society wherekindness generates more kindness,” the philosophy of the “&HAND” project.
Example “&HAND” user’s screen and how it works(2) Sends a message
asking for help

Chatbot

SDGs Supported by DNP(3) Recognizes there issomeone nearby
needing help(4) Messages exchanged via a chatbot

Example 2“&HAND”

A person wishing to offer hisor her seat uses the “&HAND”
account on the LINE app totell where he or she is seated.

Persons with disabilities, elderly people, expectant mothers and other people

DNP Group CSR Report10& HAND spot
(LINE Beacon)

Person in need

(1) When coming within the beacon’s
service area, the “&HAND” accountautomatically sends a message toa person in need.

Person wishingto help

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Fair Operating Practices
Medium-to
long-term vision

We help to maintain and develop orderly, free andcompetitive markets based on laws and social
ethics and by always remaining fair and equitable.

It is our belief that in carrying out business activities, we need to do more than justensuring DNP’s and its employees’ compliance with laws and regulations but
always remain fair and equitable, acting under even higher ethical standards thansociety calls for. To help maintain and develop orderly, free and competitive markets
and consistently undertake business activities that measure up to society’s expectations, we aim to instill and establish corporate ethics more firmly throughout the
DNP Group.

SDGs Covered by the Vision

Performance Indicators to Monitor the Progress in Achieving the
Vision and Activity Results
Performance indicator(1) Number of meetings of the
Corporate Ethics Committee*1(2) Bases holding Autonomous
Corporate Ethics Training*2

Target

FY2017 result(1) Hold the meeting once amonth (12 times a year).
(2) Achieve 100% (covering
all applicable bases).

(1) O nce a month(12 times)(2) 100% (105 bases)*1: A
 n organization overseeing internal controls, responsible for promoting a compliance framework to ensure that all
business activities of the DNP Group are carried out in an appropriate manner. Consisting of directors and corporate officers in charge of organizational units within the head office, the committee holds regular monthly meetings
to formulate and determine policies and various activity implementation plans concerning the compliance framework of the entire Group. The committee is also responsible for comprehensively inspecting, reviewing andproviding guidance for the framework established and operated in accordance with the implementation plans.
*2: T raining provided on a continuous basis since 2003. The heads of each business division provide lectures on
corporate ethics as a foundation of business and explain to their staff the issues and countermeasures relevant to
the operations of their respective divisions.

Structure to Promote Management and Training
In instilling and establishing corporate ethics, DNP attaches particular emphasis on
continuity, autonomy, positivity and efficiency.
We have established the Corporate Ethics Committee as an organization
responsible for instilling and establishing corporate ethics throughout the Group.
The committee is led by the Senior Managing Director overseeing governance,compliance and risk management and consists of directors and corporate officers
in charge of organizational units within the head office. Each business division of
DNP and the operating units of each Group company also have their own
Corporate Ethics Committee. Through these committees, we are engaging inGroup-wide, multifaceted activities in relation to corporate ethics.
(1) Goal management system

Used as a personnel evaluation and promotion system. We include corporate ethics as an item of self-evaluation
conducted under the goal management system to increase the awareness of each employee.

(2) S elf-examination of compliance DNP’s business divisions and Group companies use evaluation items developed by the responsible head office division to
perform self-examination and self-evaluation for constant improvements. This activity has been carried out since 1997
with law and rules
under the motto “Protect our company by ourselves.”(3) Compliance evaluation system

Implemented in 2005 by the responsible head office division as a system to evaluate DNP’s business segments and Group
companies using common performance indicators. This evaluation is conducted twice a year on a regular basis.

(4) Corporate ethics training

We provide various education and training opportunities, as we believe that a high level of awareness and a correctunderstanding among employees will make our efforts related to corporate ethics more effective.

(5) Open Door Room

Established in 2002 as a whistle-blower system to receive inquiries and reports on matters concerning corporate ethics.
We also set up an external helpline in 2015, in which lawyers receive relevant inquiries and reports. These are safe inquiry
and reporting systems operated in accordance with the DNP Group Open Door Room Operating Standards, which are
based on Japan’s Whistle-Blower Protection Act.

(6) Supplier Hotline

This hotline, established in 2009, receives information from suppliers on any misconduct (or possible misconduct) of DNP
employees or other parties, which they have come to recognize during their transaction with the DNP Group.
Link https://www.dnp.co.jp/CGI/csr/supplier/form.cgi

DNP Group CSR Report11Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Fair Operating Practices
Social Issue Recognized by DNP

Annual economic loss in the world directly causedby corruption: 2 trillion dollars (International Monetary Fund, 2016)
According to an estimate made in a paper published by the International
Monetary Fund (IMF) in 2016, the annual cost of public sector bribery
amounts to 1.5 to 2 trillion dollars in the world. The paper also estimates
indirect economic loss to be even larger, as disincentives among taxpayers to pay taxes lead to lower tax revenues, which in turn cause lesspublic spending in infrastructures and health and education systems. The
paper states an anti-corruption strategy is critical in achieving macro-economic stability, and the strategy requires the promotion of transparency
and a clear legal framework with the credible threat of prosecution andelimination of excessive regulations. Companies are now increasingly
required to act with higher ethical standards to prevent corruption.

DNP has formulated the DNP Group Code of Conduct, which serves as conduct guidelines to be observed by all employees in carrying out corporate activities,
and has included “Compliance with the laws and social ethics” as one of the 10
tenets specified under the code, prohibiting employees from seeking profit throughbribery and other dishonest means. With the aim of disseminating our approach
more thoroughly both in and outside DNP, we formulated the DNP Anti-Bribery
Policy in March 2018. To remain a company trusted by society, the DNP Group will
facilitate anti-bribery efforts on a global basis under this policy.

DNP ʼs Efforts for the Resolution of Social Issues

Political Donations and Dealing with Antisocial Forces
DNP’s basic policy is to maintain political neutrality by not making political
donation, either directly or indirectly. To antisocial forces that negatively affectpublic order and sound activities of society, we also prohibit the provision of
inappropriate payoffs.

DNP ʼs Efforts for the Resolution of Social Issues

Reinforcing Our Anti-Corruption Structure ona Global Scale
As recent corporate activities expand beyond regional and national boundaries,
regulations concerning bribery are being tightened in each country in order toensure a fair and open competitive market.

DNP Group CSR Report12

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Human Rights and Labor
Medium-to
long-term vision

We respect diversity in the culture, nationality,
creed, race, ethnicity, language, religion, gender,
age and ways of thinking of all persons and fulfill
our responsibility to protect human rights.
We also seek to maintain and improve ourworking environment to enable everyone to worksafely and remain healthy.

DNP respects and encourages the mutual acceptance of differences among individuals, and by leveraging their diversity, connects people and society and provides
new value (“promotion of diversity”).
For facilitating the lasting growth of the DNP Group and the creation of a safe,
healthy and vibrant workplace, we also strive to maintain and improve the safety
and healthiness of workplace environments and to maintain and promote thephysical and mental health of employees and their families (“promotion of occupational safety and health”).

Performance Indicators to Monitor the Progress in Achieving the
Vision and Activity Results
Performance indicator

Target

FY2017 result(1) N umber of women in
managerial positions(2) R atio of employees withdisabilities(3) A nnual paid leave taken(4) F requency rate of lost
workday injuries(1) Double the number of women in
managerial positions by FY2019
compared with the number (96) at theend of FY2015.
(2) Achieve the ratio above 2.0% in FY2017
and that above 2.2% in FY2018 onwards.
(3) Achieve an increase over the previous
fiscal year.
(4) Keep the rate below 0.2.

(1) 1.65 times thenumber (158)(2) 2.06%(3) 50.8% (48.9%
in FY2016)(4) 0.32

SDGs Covered by the Vision

DNP Group CSR Report13

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Human Rights and Labor
Structure to Promote Diversity Management
Social Issue Recognized by DNP

DNP has been promoting diversity since around 2000 in seeking to fostera corporate culture that allows women and other diverse human resources toplay active roles.
In 2016, as an effort to augment our activities in this area, we established theDiversity Promotion Office within the Employee Relations Department in the head
office and the Diversity Promotion Committee in each business division and Group
company. To drive our efforts further, we converted the Diversity Promotion Office
into an independent, dedicated organization in June 2018 and extended our focus
from women to other groups, including non-Japanese employees, persons withdisabilities and senior employees.

Japan’s ranking in the Global Gender Gap Index:
114th place/144 countries(The Global Gender Gap Index 2017, the World Economic Forum)

According to the World Economic Forum, Japan’s ranking in the Global
Gender Gap Index in 2017 was 114th place among the 144 countries.
The global index is developed using data in four categories, and except
for taking first place in the Health and Survival category, Japan ranked low
in the remaining three categories of Economic Participation (114th),
Educational Attainment (74th) and Political Empowerment (123rd). Against
this backdrop, Japan enforced the Act on Promotion of Women’sParticipation and Advancement in the Workplace (“Women’s Participation
Promotion Act”) in 2016 with the aim of promoting the active role ofwomen in their work life and to realize an enriching and vibrant society
where women working on their own free will and those wishing to do socan demonstrate their individualities and abilities to the fullest.

Structure to Promote Occupational Safety and Health
DNP stipulates its basic policy on and a structure to promote a safe and healthy
workplace environment in the DNP Group Safety and Health Management
Regulations.
Our safety and health activities are being promoted under the policy that safety
takes precedence over everything else. The DNP Group Safety and Health Liaison
Council oversees and leads relevant activities of the entire Group, while the responsible committee of each business segment and Group company and the Safety
and Health Committee of each workplace create specific action plans. In this way,
DNP and its employees are making concerted efforts to increase the level of safety
and health throughout the Group.

DNP ʼs Efforts for the Resolution of Social Issues
With a view to creating new value by respecting and leveraging diversity, we havebeen promoting diversity under the policy of developing diverse human resources,
fostering a corporate culture to encourage the active participation of diverse humanresources and realizing diverse work styles.
One pillar of our activities is promoting the active role of women. Under the

DNP Group CSR Report14

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Human Rights and Labor
Women’s Participation Promotion Act, we set out a target to double the number ofwomen in managerial positions by the end of FY2018 compared with the end of
FY2015 and are carrying out the following initiatives.

Initiatives to Continuously Produce Female Employees
Assuming Leadership Roles
 areer training for young female employees (for mid-level femaleC
employees)

Initiatives to Increase the Number of Women in
Managerial Positions
 ext-generation female leaders training (for female section chiefNcandidates)
We provide training to female employees whom we expect to assume leadershiproles. They receive training to become next-generation leaders through simulationof management duties. Upon the completion of the training, participants are certified by DNP as a mentor and will take the role of providing career consultation toyoung male and female employees under a mentor system.

 iversity promotion leaders training (for general managers andD
those in equivalent positions)
We provide training to develop a promotion leader of the Diversity Promotion
Committee of each business segment. During the training, participants identify
factors that hinder diversity and gain knowledge
and the skills necessary to plan and implement
solutions. They will also serve as a mentor forparticipants of the next-generation female leaders
training. Through these promotion leaders, we aim
to foster a corporate culture that allows women
Joint session of the next-generationand other diverse human resources to fully
female leaders training and the diversity
demonstrate their abilities.
promotion leaders training

This training cultivates career awareness among mid-level female employees, whoare expected to assume managerial positions or leadership roles in the future, toenable them to design a work and life plan on their own.

 areer development support training (for supervisors having
Cfemale subordinates)
We provide training for supervisors to gain skills to link what DNP expects andwhat a female subordinate aspires for her medium-to long-term career, promote
her growth appropriately throughwork and hold effective dialogue for Number of Female Employees in Managerial Positions andLeader-Level Positions(As of March 31, 2018)
this purpose.
700
As a result of these initiatives, thenumber of female employees inmanagerial positions increased to158, 1.7 times the number at theend of FY2015, while the number of
those in leader-level positions roseto 443, 1.3 times the number also
at the end of FY2015.

DNP Group CSR Report

601

600

552

432
400
415

300
341

443

379

200
100
0

91

107

FY2014FY2015

Leader-level positions

15

管理

486

500

137

158

FY2016FY2017

Managerial positions

リーContents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Human Rights and Labor
Japan’s industrial safety and health initiatives as well as our past activity results andissues facing DNP.

Social Issue Recognized by DNP

Annual global economic loss resulting from workrelated accidents and illnesses:
2.99 trillion dollars (International Labour Organization)
According to the figure developed by Finland, Singapore, the European
Union (EU) and the International Commission on Occupational Health(ICOH), with the support of the International Labour Organization (ILO),
the annual cost of work-related injuries and illnesses is estimated torepresent 3.94% of global GDP, or 2.99 trillion dollars. This means thatabout 2.78 million workers lose their lives due to work-related injuries andillnesses each year. In Japan, the 13th Occupational Safety & Health
Program (FY2018 to FY2022) has just been rolled out under the country’s
Industrial Safety and Health Act. The program continues to emphasize theprevention of industrial accidents in the manufacturing industry, andreflecting the recent changes in the working environment, attaches
greater importance to measures to prevent long working hours andensure the health, including mental health, of workers.

Efforts Unique to DNP for Preventing Industrial Accidents
In our Third Basic Plan for Prevention of Industrial Accidents (FY2015 – FY2017),
the first priority task was to eliminate accidents involving machinery at manufacturing sites, and we made Company-wide efforts accordingly. These efforts led toincreased implementation of equipment safety measures, and coupled with thesteady 4S (Sort, Set in Order, Shine and Standardize) activities undertaken by each
workplace, had enabled us to draw up a clearer roadmap for our accident prevention activities. In our Fourth Basic Plan that will start in FY2018, we will continue ourequipment safety activities and improve work processes in order to increase oursafety level both in terms of “hardware” and “software.”With our aging workforce, there has been an increase in fall accidents.
In response, we will roll out preventive activities through the “STOP! Fall Accidents
Project.”
As another effort, we will work to disseminate DNP’s original safety education
programs, which utilize our know-how accumulated in the past activities, for developing and appropriately assigning human resources to support our activities.

Efforts for Maintaining and Promoting Physical and
Mental Health
DNP ʼs Efforts for the Resolution of Social Issues
DNP is promoting safety and health activities by formulating the Basic Plan forPrevention of Industrial Accidents and the Basic Plan for Health Maintenance andPromotion every three years. These medium-term plans reflect social trends andUnder our Third Basic Plan for Health Maintenance and Promotion (FY2015 –FY2017), we mainly promoted initiatives for enhancing our health education andimplementing mental health-related measures.
As for the promotion of physical health, we have been encouraging each

DNP Group CSR Report16

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Human Rights and Labor
employee’s voluntary engagement through health-related events and educational
programs. Efforts include providing nutritional and exercise guidance and offering
healthy menus at company cafeterias.
In the area of mental health, we have been conducting self-care, line-care andother relevant education, centered around stress checks introduced in 2006, andalso providing tools for employees to check their mental health status at anytime.
Each workplace has also been making their own efforts based on the results ofworkplace analysis and in conjunction with our workstyle innovation activities toprovide a better working environment and improve employees’ work engagement.

Our Response to Human Rights Issues
Recently, there has been growing attention to the impact of business on human rights.
As part of our due diligence effort concerning human rights, DNP has been conducting
surveys in a phased manner to identify and monitor the risk related to human rights inbusiness activities. Specifically, during the period from 2014 to 2016, we conductedinterview surveys on all business segments and written surveys on all of the 22 consolidated subsidiaries outside Japan. These surveys were designed to identify risk from a
broad perspective, encompassing such aspects as countries/local communities in which
we do business, suppliers/contractors, origins of raw materials, consumers/customers
and employees. Within the scope of information gathered through these surveys, wehave concluded that there is no significant risk concerning human rights. In 2017, we
examined ways to proceed with our plans to formulate our human rights policy and tocarry out detailed risk assessment, while also incorporating opinions from subject
matter experts.

DNP Group CSR Report17

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Environment
Medium-to
long-term vision

Performance Indicators to Monitor the Progress in Achieving the
Vision and Activity Results

To create a sustainable society with the Earth’s
limited natural resources, we reduce environmental
impact and conserve biodiversity while ensuring
compliance with environmental laws andregulations and by recognizing our relationship withthe environment in all business activities.

DNP has always believed in the importance of coexistence with the natural environment to ensure sustainable business. We have set “Environmental conservationand the realization of a sustainable society” as one part of our Code of Conduct
and are implementing environmental activities such as the reduction of environmental burden in consideration of the relationship between business activities andthe environment throughout the supply chain.

SDGs Covered by the Vision

Performance indicator

Target

FY2017 result→ See “Environmental Activity Targets and Results” on page 45.

Environmental Management Structure
The DNP Group has established the CSR-Environment Committee to coordinate
Group-wide environmental activities and the Operations & Group Company
Environmental Committees to preside over domestic and overseas activities withineach business area. Each committee has its own office or promotion office.
l CSR-Environment Committee
The committee is led by the managing director in charge of CSR and the environment at the head office and consists of corporate officers responsible forrespective organizational units within the head office. The Committee deliberates
on and makes decisions concerning the environmental policies, targets andplans of the entire Group and monitors the progress of the plans and the statusof the achievement of those targets.
l Operations & Group Company Environmental Committees
These committees lead activities, including those of our overseas businesslocations, based on the decisions made by the CSR-Environment Committee
and the characteristics of their respective business areas.

DNP Group CSR Report18

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Environment
Environmental Management System
The DNP Group created our own environmental management system (EMS) in
1993, prior to the publication of ISO 14001. Our system primarily uses two reports,
namely Eco-Reports prepared by the CSR-Environment Committee Office andSite-Eco Reports prepared by the Operations & Group Company Environmental
Committees, and works through the plan-do-check-act (PDCA) cycle every six
months. The Eco-Reports cover trends in environmental issues and changes inapplicable laws, our courses of action and how well the DNP Group overall has
achieved our targets and are distributed to the Operations & Group Company
Environmental Committees and to every business site. The Site Eco-Reports document each site’s targets, plans and status of activities. The Operations & Group
Company Environmental Committees use the Site Eco-Reports to monitor thesituation at each site and submit a summary report to the CSR-Environment
Committee.
The CSR-Environment Committee and the Operations & Group Company
Environmental Committees carry out continuous improvement activities throughguidance and hands-on sessions and liaison meetings. Progress is checked atperiodic environmental activities promotion meetings.

DNP Group CSR ReportSocial Issue Recognized by DNP

Japan’s medium-term GHG emissions reduction
target under the Paris Agreement: A 26% reduction
from the 2013 level by 2030 (Japanese government, 2015)
In 2015, the Paris Agreement was adopted by the Conference of theParties (COP) to the United Nations Framework Convention on Climate
Change held in Paris, France, as an international framework of measuresagainst climate change for 2020 onwards. Designed to respond to continued global warming caused by increasing greenhouse gas (GHG) emissions and other factors and growing concern about the spread of negative
impact across the world, the agreement sets its goal to curb global warming by keeping a global temperature rise well below 2 degrees Celsius
above pre-industrial levels and to make efforts to limit the rise even further
to 1.5 degrees Celsius. Japan ratified the agreement in 2016. The agreement also calls for action on the part of companies to undertake various
activities to contribute to the achievement of the goal.

19

Corporate Profile

Contents / Editorial Policy〉〉

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Environment
DNP ʼs Efforts for the Resolution of Social Issues

GHG Emissions Reduction Target of the DNP Group
Recognized by the Science Based Targets (SBT) Initiative

Efforts at DNP to Counter Climate Change
Recognizing that responding to climate change is one of the world’s most pressing
issues, DNP has been making efforts on a global basis to reduce the total GHG
emissions of the DNP Group, including its overseas business locations, by setting
a reduction target of 10% for FY2020 and then another target of 20% for FY2030,
both from the FY2005 level. Our efforts so far have included conserving energy
used for air conditioning and power, improving production line operations andincreasing the energy efficiency of heating units. Compared with the FY2005 level(1.110 million tons), we successfully reduced our annual GHG emissions by 19.6%
to 0.892 million tons in FY2017 and achieved our FY2020 target.
We have also been working to reduce environmental impact through products
and services and making steady progress in our action against climate change
throughout our supply chain.
DNP Group’s GHG emissions (including overseas operations)0

GHG emissions (1,000 t-CO2)

500

1,000

2005

1,500

0.70

2011

0.73

1,110

2012

0.75

1,090

0.69

2015

0.67

2016

0.66

0.00

1,058
1,020
982
929

0.63
0.50

Down

19.6％
1.110
million tons
0.892
million tons

1,114

0.73

2014

2017

With regard to our Scope 3 emissions, we will work to reduce our total GHG emissions
throughout our supply chain by encouraging our key suppliers to receive the SBT
initiative’s approval by 2025.

1,110

2010

2013

As DNP nearly achieved its FY2030 GHG emissions
reduction target in FY2017, we defined a newtarget in accordance with an international framework. In July 2018, this new target was recognizedby the international Science Based Targets (SBT)
initiative as “science-based” in helping to achieve
the goal of the Paris Agreement, which is to keep
global warming below two degrees Celsius. DNP
will continue to augment its GHG emissions reduction activities by saving energy andintroducing energy-saving facilities.
GHG emissions reduction target of the DNP Group: To achieve a 25% reduction in
GHG emissions from the FY2015 level by 2030

892
1.00

1.50

Emissions per-unit value (t-CO2/million yen)

2.00

2005

2017

* For electricity emission factors, the FEPC’s 2005 point-of-use CO2
emissions unit value of 0.423 (kg-CO2/kWh) was used uniformly.

DNP Group CSR Report20

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Responsible Procurement
Medium-to
long-term vision

Performance Indicators to Monitor the Progress in Achieving the
Vision and Activity Results

For creating excellent value and cultivating strong
compliance awareness at the same time, we work
jointly with our supply chain stakeholders andconduct procurement that gives due consideration
to human rights, the environment and otherfactors.

DNP is working with our suppliers throughout the supply chain to improve compatibility with social expectations. Excellent products and services would mean nothing if we break social norms or cause trouble to society in their manufacturing
processes or raw material procurement practices. As such, we aim to create value
and cultivate compliance awareness at the same time and are carrying out various
types of management.
Additionally, DNP will fulfill its social responsibility by taking appropriate action to
avoid becoming a party to global-scale environmental destruction, abuse of humanrights or labor issues.

SDGs Covered by the Vision

Performance indicator

Target

FY2017 result(1) A verage score of a DNP Group CSR
Procurement Guidelines survey on key
suppliers(2) P ercentage of overseas businesslocations conducting the DNP GroupCSR Procurement Guidelines surveys(3) P ercentage of key suppliers
conforming to the DNP Group
Guidelines for Procurement of Paper
for Printing and Converting(1) Achieve the averagescore of 90 points by2030.
(2) Achieve 100%
(covering all overseas
business locations).
(3) Achieve 100% by 2030.

(1) 81.7 points(the average of
key suppliers ofoverseas businesslocations)(2) 100%(3) 92.4%

Internal Structure and Management
In the CSR-Environment Committee led by a managing director, DNP has confirmed its commitment to conducting responsible procurement that takes into
account human rights and other social and environmental aspects. We have formulated necessary guidelines
and have been making a rangeof efforts to increase the effectiveness of these guidelines.
Specifically, we have formulated the DNP Group CSR
Procurement Guidelines, Link andto cover topics of significant
Briefing session for suppliers held in October 2017 (with 136
importance, developed individual participants from 102 companies)

DNP Group CSR Report21

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Responsible Procurement
guidelines, including the DNP Group Guidelines for Procurement of Paper for
Printing and Converting Link and the DNP Group Green Procurement Guidelines for
Chemical Substances. Link
To increase their effectiveness, the dedicated CSR department and purchasing
and other related departments work closely together and go through the plan-docheck-act (PDCA) cycle by holding briefing sessions for suppliers, conducting
periodic surveys and feeding back the survey results as well as conducting interviews and the exchange of opinions.

Social Issue Recognized by DNPBusiness impact of human rights infringement insupply chain: More than 100 billion yen per company(Deloitte Tohmatsu Consulting LLC)

Deloitte Tohmatsu Consulting LLC made an estimate of the impact on
business of human rights infringement in the supply chain based on pastcases. According to the estimate, loss of sales due to the resulting consumer boycott or suspension of operations exceeds 100 billion yen percompany. Companies need to recognize the magnitude of such a business impact and set up a process to prevent and correct any adverse
impact on human rights.

DNP ʼs Efforts for the Resolution of Social Issues

Reinforcement of CSR Procurement Management
We fully revised our DNP Group CSR Procurement Criteria established in 2006
from a more global viewpoint and converted the criteria into the DNP Group CSR
Procurement Guidelines in March 2017. Our procurement guidelines are based on
the Responsible Business Alliance (RBA, formerly the Electronic Industry
Citizenship Coalition – EICC) Code of Conduct and the Supply Chain CSR
Promotion Guidebook of the Japan Electronics and Information Technology
Industries Association (JEITA) and reflect the requirements of the international
community. The guidelines cover 40 topics under the seven themes, namely
human rights and labor, safety and health, the environment, product safety andquality, information security, fair transaction and ethics and social contribution.
We also reviewed the scope of our CSR procurement management andextended it from our bases in Japan and principal overseas business locations to
the entire global supply chain. Specifically, in November 2017 we requested all ouroverseas business locations and their suppliers to act in accordance with the DNPGroup CSR Procurement Guidelines and conducted a survey on 130 key suppliers.
We confirmed and evaluated the compliance level of each by using two versions ofcheck sheets we have prepared to accommodate for their varying sizes (standard
version consisting of 130 questions and simplified version of 30 questions). The
overall average score of the 130 suppliers was 81.7 points (83.4 points for the
standard version and 79.4 points for the simplified version), and there was no
significant imbalance among the average scores of the individual themes, such as
human rights and labor and the environment. There were, however, 21 suppliers
whose overall score was below the average at 70 points. Some of our future efforts
will be geared toward increasing the level of compliance at these suppliers.

DNP Group CSR Report22

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Responsible Procurement
Our Response to Conflict Minerals
Some minerals (gold, tin, tantalum and tungsten) originating from the Democratic
Republic of Congo and surrounding countries (conflict region) are used to financearmed opposition groups, prompting fears that the trading of these minerals is
exasperating conflict and the abuse of human rights by these groups. To counterthe situation, Section 1502 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act requires companies listed on the U.S. Stock Exchange to file reportson the use of these four minerals originating from the conflict region every year.
DNP does not have an obligation to report directly to the U.S. authorities
regarding the matter but has included responsible procurement in our DNP GroupCSR Procurement Guidelines to avoid getting involved in these issues, which are
detrimental to the sustainable development of society. According to the guidelines,
we are undertaking business activities in an appropriate manner jointly with eachsupplier and have confirmed that the said minerals used in our electronic devices
business do not come from the conflict region. In FY2017, we again performed thecheck and determined that minerals that may facilitate conflict or human rights
infringement are not used in our products or included in the raw materials we use.

DNP Group CSR ReportSocial Issue Recognized by DNP

Net forest loss in the world: 129 million hectares(Food and Agriculture Organization of the United Nations, 1990-2015)

According to a survey conducted by the Food and Agriculture
Organization (FAO), the world’s total area of forests fell from 4,128 million
hectares in 1990 to 3,999 million hectares in 2015. Natural forests, which
accounted for 93% of the net forest loss of 129 million hectares, arecritical in sustaining the global environment as they conserve genetic
diversity and help to maintain the natural composition of tree species.
The decrease in forest area has been continuing and is particularly noticeable in tropical regions, driven by the expansion of agricultural landthrough illegal logging.
For DNP, paper is one of the essential raw materials for its printing
business. We strive to contribute to sustainable forest management as
one priority activity.

23

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Responsible Procurement
DNP ʼs Efforts for the Resolution of Social Issues

DNP Group Guidelines for Procurement of Paper for
Printing and Converting
To increase the effectiveness of our efforts to reduce environmental impact, we
conduct responsible procurement jointly with suppliers involved in the purchase of
raw materials that have a large impact on the environment.
Especially for paper, which is one of our principal raw materials, we are committed to the conservation of forest resources and the effective use of raw materials
and are proactively encouraging the use of thinned wood and forest-certified paper.
Since 2012, we have also been collaborating more closely with suppliers, including
paper manufacturers and sales companies, as an effort to share our procurement
policy under the DNP Group Guidelines for Procurement of Paper for Printing andConverting, establish and operate a management structure to confirm the legalityof our procurement practices, ensure traceability and increase the percentageof paper that is friendly to forest resources in the overall volume of our paper
purchase.
These efforts continued in FY2017, and we conducted our routine survey andinterview with key suppliers. As a result, we confirmed that these suppliers(accounting for 92.4% of our monetary purchase amount) conform to our DNPGroup Guidelines for Procurement of Paper for Printing and Converting.

DNP Group CSR Report24

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Product Safety and Quality
Medium-to
long-term vision

As a responsibility of a company providing
products and services to society, we give firstpriority to ensuring safety and quality, and by doing
so, earn the trust of society.

DNP recognizes that placing safety and quality first and foremost is a responsibilityof a company providing products and services to society. Under this recognition,
we strive for constant improvement by always exploring how our products andservices are used and thinking “what quality is required of them and what makes
them safe and easy to use” from the perspective of consumers and customers.
From the proposal stage through to the final delivery, we commit ourselves toproviding products and services that satisfy people to earn even greater trust fromthem, and this forms the basis of our safety and quality efforts.

Performance Indicators to Monitor the Progress in Achieving the
Vision and Activity Results
Performance indicator

Target(1) N umber of serious accidents* caused
by our products(1) Achieve zero accidents.
(2) Achieve 100%.

* Including cases where a defect in our
products jeopardizes the user’s life, causes
serious bodily harm or inflicts serious damageon the user’s property (other than the productitself)(2) P ercentage of newly developed
products undergoing product safety
and risk assessment

SDGs Covered by the Vision

DNP Group CSR Report25

FY2017 result(1) Zero accidents(2) 100%(184 products)

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Product Safety and Quality
DNP Group’s Internal Structure for Quality Management

Management to Ensure Safety and Quality

DNP’s basic policy concerning quality management is twofold. One is to ensurethat our products and services conform to the required standards and legal regulations, and the other is to fulfill our corporate social responsibility by providing products and services that deliver levels of quality and safety exceeding the needs andexpectations of corporate customers and consumers.
To uphold this basic policy, we have established the Quality Assurance andProduct Safety Committee within the head office (led by a managing director) andin each business division and Group company. We have also stipulated Groupwide rules, consisting of matters that should be implemented for ensuring thesafety and quality of our products. With the committee within the head office taking
the lead, we have established and been operating a quality management system
and a product safety management structure.
DNP Group Product Safety Policy Link
DNP Group Quality Policy Link

DNP has stipulated Group-wide rules, consisting of matters that should be implemented by each business division and Group company for ensuring product safety
and quality. According to the rules, the Quality Assurance and Product Safety
Committee receives reports on the status of Group-wide activities, issues andother relevant matters twice a year, and based on the reports, revises policies andtargets and gives instructions for improvement. In response, the responsible division within the head office then provide guidance to each business division andGroup company to increase the safety and quality of our products.
Flow of Management
Designing products
Designing manufacturing processes
Formulating the Quality andProduct Safety Standards
Setting up a system for ensuring quality
and safety

DNP Group Quality Assurance and Product Safety Management Structure
Changing product design[DNP Group]
Quality Assurance andProduct Safety Committee

Improving the manufacturing andinspection processes
Revising the Quality andProduct Safety Standards
Improving the system forensuring quality and safety

Administration office[Business Division]
Quality Assurance andProduct Safety Committee

Administration office

Each plant

Each plant

Manufacturing, inspection andmanagement conforming to the Quality
and Product Safety Standards

Examining the system for ensuring quality
and safety[Group Company]
Quality Assurance andProduct Safety Committee

Administration office

Qualityand Product
SafetyStandards

Performing risk assessment on
product lineup
Evaluation and validity check of products
required to offer high reliability anddurability

DNP Group CSR Report26

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Product Safety and Quality
To satisfy the requirements of corporate customers and the marketplace, wehave also acquired certification in relevant fields, including ISO 9001 certification,
an international standard for quality management, and Food Safety System
Certification (FSSC) 22000 in the field of food packaging. Other certification we
have acquired in the information management field includes ISO/IEC 15408 certification for information technology (IT) security, “PrivacyMark” certification for protection of personal information and ISO/IEC 27001 (Information Security Management
System – ISMS) certification for information security.

Social Issue Recognized by DNP

Many scandals involving quality-related misconduct
by Japanese companies (2017)
In FY2017, a number of quality-related misconduct cases, such as
inappropriate execution of legally required inspections and falsification ofquality data, were uncovered and made headlines in various media.
At DNP, we have been implementing sufficient risk management
against legal violation and quality-related misconduct as an effort toprevent such cases from occurring.

DNP ʼs Efforts for the Resolution of Social Issues

DNP’s Efforts for Preventing Quality-Related Misconduct
In 2017, following the successive occurrence of quality-related misconduct cases
in Japan, DNP carried out an emergency examination in all divisions to check forany legal violation or quality-related misconduct. The results revealed no such
misconduct or possible misconduct, and we have confirmed that our operations
follow the stipulated rules. Additionally, we provide education on an ongoing basis
for each division tailored to its roles, for reinforcing our quality management structure, communicating the specifications agreed upon with corporate customers inorder to ensure the structural reinforcement and for instilling Group-wide rules,
including ensuring the reliability of inspections.
DNP will continue to ensure thorough legal compliance and the prevention of
misconduct, endeavor to secure quality and safety from the perspective of stakeholders and consumers and fulfill the responsibility as a provider of products andservices to earn the greater trust of society.

DNP Group CSR Report27

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Information Security
Medium-to
long-term vision

We ensure the exceptional security of personal
information and all other information assets throughmanagement and protection as part of the social
responsibility of a company handling suchinformation assets.

Performance Indicators to Monitor the Progress in Achieving the
Vision and Activity Results
We have set the following indicators that we are working toward in order to establish and put into operation a sophisticated security system.

DNP has a core strength in information security technology and know-how built up
in the application of information assets entrusted to us by companies and consumers as well as our own information assets. We leverage this strength to provide
new value through highly secure and reliable products and services.

SDGs Covered by the Vision

Performance indicator

Target

FY2017 result(1) N umber of information security
compliance evaluations implemented(2) N umber of inspections and guidance
given to divisions implementing corepersonal information measures byexecutive in charge(3) P articipation rate for information
security education and training(4) N umber of security vulnerability tests
for public sites on the internet
handling personal information(1) 100% implementation
rate in business divisionsand Group companies(2) 100% implementation
rate in targeted divisions(3) 100% participation ratein targeted divisions(4) 100% implementation
rate for targeted sites(1) 100% (82 divisions
and companies)(2) 100% (34 bases)(3) 100%(Approx. 41,000
persons)(4) 100%(83 systems tested)

Structure to Promote Management
Since establishing the Office for the Protection of Personal Information in 1999,
DNP has continued to strengthen our information security measures in response tochanges in the security environment in Japan and overseas. We established theInformation Security Committee and Information Security Headquarters at the head
office as the umbrella organizations for Company-wide control to provide inspection and guidance for business segments and Group companies. The executive
officer in charge of the head office serves as the committee chief.
Also, Information Security Committees have been established in each of the

DNP Group CSR Report28

Contents / Editorial Policy〉〉

A Message from the CSREnvironment Committee Chairman

Corporate Profile

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Information Security
core business divisions and Group companies, in which under the direction of thecommittee chief and persons in charge of personal information control (together
with the heads of each operating unit), they handle issues such as training, security
zoning and information security measures, as well as taking charge of inspections.
Information Security Committees have been set up at a total of nine overseas
Group companies since 2015 (covering 41% of overseas Group companies).
DNP Group’s Basic Policy on Information Security Link
DNP Group Privacy Policy Link

Information Security Control System
Head Office
DNP Group Information Security Committee
Committee Chief, Manager for the Protectionof Personal Information, Committee Member

Framework for Promoting Information Security Within
Operations and Group Companies
Information Security Committee
Committee Chief, person responsible for managing personal
information (general managers of operations and presidents ofGroup companies)
Person responsible for inspections

DNP is undertaking information security related measures with a particular focus onorganizational measures, human measures and physical and technical measures.

Organizational Measures
Maintaining internal procedures and rules
Personal information protection includes the development of the Personal
Information Protection Regulations and the establishment of joint rules regarding
actual standards for information protection within the Group. We also developed
the Basic Personal Information Policy and Basic Personal Information Regulation,
under which 10 standards have been established concerning information security,
including those for document control, computer usage, areas from which non-DNP
employees are restricted from entry, education, website and social media. We
rapidly send out notices and establish or revise our rules in response to new
threats and risks, and we make sure that employees are thoroughly informed about
them.

Information Security Promotion Office Manager

Information Security Headquarters

Establishment of a management system

Information Security Manager
Person responsible for education
Person responsible for security area measures
Person responsible for public relations
Person responsible for information security measures

DNP ensures thorough legal compliance, attaining the Privacy Mark in July 2008,
and is promoting the establishment of a management system in compliance with
the Japanese Industrial Standards, “Personal Information Protection Management
System Requirements” (JISQ15001). We are also actively making progress toward
acquiring the Privacy Mark and ISO / IEC27001 at all business divisions and Group
companies handling personal information in the course of business activities.
Acquisition status of Privacy Mark and ISO / IEC 27001 Link

DNP Group CSR Report29

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Information Security
Human Measures trengthening information security through human resourcesS
development
DNP provides ongoing education and training to all employees, particularly personnel responsible for strengthening information security.
We prepare teaching materials in 10 languages, including Japanese, to makesure our education covers all employees. Training courses are provided via
groups to personnel in charge of strengthening information security, and theGroup company CP Design Consulting, Ltd., which provides consulting related topersonal information protection, offers practical courses based on DNP’s products
and services.

on-site workers so that data cannot be taken off-site. We also separate the locations where information is written to media, employ checks using metal detectors,
implement and verify access logs, and reduce the number of employees engaged
in the work of writing to recording media. These and other measures serve tofurther strengthen control.

Measures at operational bases using IC card employee IDs
DNP is promoting a variety of information security measures using IC card
employee IDs. We are increasing the number of operational bases with a security
gate system in which employees need the IC card to enter and leave the building
or factory. In addition, we have introduced a thin client system for laptops taken
off-site in which authentication is provided with the IC card. We are also adding afunction enabling the integrated management of multifunction machine usage logs
by the manager on a server by requiring authentication via IC card when printing.

Physical and TechnicalMeasures easures in departmentsM
handling personal information
Various measures are in place at the Data
Processing Offices handling personal
information and other important data,
including entry/exit controls using biometrics to ensure that unauthorized persons
cannot access the facilities, surveillancecameras that keep improper behavior incheck and pocket-free uniforms forInitiatives for the safe delivery of information
DNP has introduced CipherCraft, a tool to prevent the erroneous transmission ofemail with such functions as destination identity verification, attachment file verification, mandatory encryption and the temporary holding of outgoing mail. The aim is
to prevent information leaks through erroneous transmission when employees send
email outside the Group.
In addition, we have developed and are operating the “Gendarme” system
when transferring the personal data of clients via a network. We also developed our“Dreadnought” CD-R loaded with software that encrypts data in 2007. This not
only encrypts data sent and received between clients and DNP, but can also be
used for the encryption of important information by the client.

DNP Group CSR Report30

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Information Security
Corruption measures for website
DNP conducts vulnerability tests twice a year for all internet servers handlingpersonal information that are run by the Group to ensure more secure and robust
website creation and management.

Social Issue Recognized by DNPGlobal loss from cybercrime: ¥63 trillion (2016)(The Economic Impact of Cybercrime - No Slowing Down, Center for Strategic and International Studies(CSIS) and McAfee, LLC, 2018)

Promoting information security measures in the industry
According to the 2018 report “The Economic
Impact of Cybercrime - No Slowing Down,”
cybercrime has led to a loss of approximately US$600 billion in the global economy(approx. ¥63 trillion/as of 2016). This is anincrease from the study done in 2014
(approx. ¥46 trillion) and the risk of cybercrime is expected to grow going forward.

To enhance personal information protection throughout the printing industry, DNP
dispatches employees with sophisticated technical knowledge to personal information protection working groups run by the information security committee of theJapan Federation of Printing Industries. The employees participate in making
guidelines for personal information protection, Q&A and formulating andpreparing educational materials. (Two DNP employees have been stationed
there since 2004.)

DNP ʼs Efforts for the Resolution of Social Issues

Strengthening Cyber Security Measures
Now that cyber attacks are becoming increasingly artful and complex, it is nolonger sufficient to rely solely on conventional border protection measures aimed at
not allowing threats to enter a company’s computer systems.
DNP is constructing multilayered countermeasures based on unique security
solutions that combine—in addition to the conventional “inbound measures” that
address things like system vulnerabilities and keeping out viruses—“internal

DNP Group CSR Report31

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Information Security
measures” for preventing and containing damage in the event that an intruder does
manage to infiltrate the system, and “outbound measures” that prevent informationfrom being illicitly transmitted outside the system. DNP promotes Security By
Design, whereby protective functions are built into a computer system from thedevelopment stage, as well as measures for counteracting new threats such as
periodic inspection of systems already in use to check for vulnerabilities.
Based on this expertise, the DNP Group company Cyber Knowledge Academy
Co., Ltd. provides educational programs for training personnel to counter cyberattacks. DNP also belongs to the Nippon CSIRT Association, whose industry-wide
members share information and cooperate across company lines to enhance cybersecurity.

Efforts to Boost the Information Security Literacy of
Employees Worldwide
DNP is undertaking measures to increase the information security literacy of
employees around the world. In FY2017, we expanded our training by creating
the Introduction to Information Security 2017 educational tool in 10 languages,
including Japanese, in order to promote information security management atoverseas Group companies.

DNP Group CSR Report32

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Corporate Citizenship
Medium-to
long-term vision

Performance Indicators to Monitor the Progress in Achieving the
Vision and Activity Results

As a good corporate citizen operating in harmony
with society, we proactively seek deeper
engagement with society and make social
contributions through the resolution of social issues
and volunteer and cultural activities.

DNP aims to contribute broadly to the resolution of social issues and the realizationof a better society through business activities and by acting as a good corporate
citizen while effectively utilizing our management resources, including humanresources, intellectual properties, technologies and facilities, while promoting cooperation and collaboration with external organizations. We also support the social
contribution activities of employees, as these activities encourage their personal
growth and self-fulfillment.

SDGs Covered by the Vision

Performance indicator

Target

FY2017 result(1) N umber of external participants for
DNP’s original future generations
development programs(2) N umber of local volunteer activities heldeach year to support reconstruction ofdisaster-stricken regions, including
Tohoku and Kumamoto(1) Achieve an accumulated
total of 7,500 persons
from FY2015 to FY2019.
(2) Constantly conduct theactivity three times ayear until FY2019.

(1) Accumulated total:
4,033 persons(2) Three times (twice
in Tohoku andonce inKumamoto)

DNP Group Social Contribution Policy and Social Contribution Themes
The DNP Group contributes to the realization of a sustainable society by providing
valuable products and services to society through business activities and by acting
as a corporate citizen while effectively utilizing our management resources andfacilitating labor-management collaboration as well as cooperation and collaboration with external organizations. In doing so, we have formulated the DNP Group
Social Contribution Policy, consisting of five Social Contribution Themes, and havebeen carrying out activities accordingly.

Five Social Contribution Themes

Environmental
conservation

DNP Group CSR Report

33

Contribution to
local communities

Future generations
development

Arts and culture

Humanitarian aid

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Corporate CitizenshipSocial Issue Recognized by DNP

Japan’s global competitiveness: 9th place(The Global Competitiveness Report 2017-2018; 6th place in 2014)

Japan’s poor global competitiveness is said to have been caused by adecline in its innovation capability. DNP believes that developing andsupporting children, who will lead the next and future generations, areessential in creating a sustainable society. We aim to nurture children who
have a broad knowledge, a flexible way of thinking and an ability to create
new value.

information technologies. Of the five Social Contribution Themes, we attach thegreatest importance to “education”, which is closely connected to our founding
conviction.
As an example, we provide lessons, career education and workshops mainly at
schools and public facilities located near our bases across Japan. One is a lesson
program called “The Wonder of Colors,” which we provide at elementary schools.
The program gives children an opportunity to understand how colors are represented in printing through observation, experiment and experience and is similar toadvanced learning programs for other science learning topics, such as How Our
Body Works and Lives of Living Things. It is also an initiative being promoted under
DNP’s action plan that has been formulated in accordance with the Act on
Advancement of Measures to Support the Raising of Next-Generation Children.
In 2017, we conducted “The Wonder of Colors” and other lesson programs at
11 locations for 677 children.

DNP ʼs Efforts for the Resolution of Social Issues
Social Issue Recognized by DNP

Future Generations Development
DNP was originally founded in 1876 withthe conviction that “Scholarship, the artsand sciences are the pillars of the nation.
Learning is brought to fruition throughbooks, and books are created throughprinting. Therefore, printing is a business ofcivilization.” For more than 140 years since
its founding, DNP has engaged in businessbased on its strengths in printing andNumber of out-of-school children of primary school
age in the world: 61 million (UNICEF, 2015)
DNP recognizes that education is absolutely essential for developing abetter society. Particularly in emerging and other countries, we believethat receiving education and gaining knowledge will protect children’s lives
and living.
“The Wonder of Colors” lesson provided by
employee volunteers

DNP Group CSR Report34

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Corporate Citizenship
DNP ʼs Efforts for the Resolution of Social Issues
Social Issue Recognized by DNP

Contribution to Local Communities and Future
Generations Development
Under the idea of “contributing to the realization of a safer, more comfortable andenriching society from a global perspective,” we support the intent of theCampaign to Deliver Picture Books, an activity of the non-governmental organization Shanti Volunteer Association (SVA) providing educational support to children in
Asia, and started participating in the campaign in 2017.
The campaign sends Japanese picture books, affixed with seals bearing translations into the local language, to children in Asia, who have less learning opportunities due to conflict or poverty. In FY2017, 132 employee volunteers from Group
companies across Japan participated in preparing the picture books for children in
refugee camps in Cambodia and Myanmar (Burma).
In August 2017, we also hosted a
volunteer workshop jointly with SVA for
about 90 elementary and junior highschool students and their families. The
workshop was designed to convey
what children in Asia are facing to abroader audience and increase thenumber of supporters for the campaign, which provides more learning“Send Picture Books to Asia,”
opportunities for these children.
a workshop for children and their parents

Number of disasters designated as disasters withextreme severity in recent years: 26(June 2012 – July 2018) (Cabinet Office, 2018)

Recently, Japan has been experiencing frequent disasters, including
earthquakes, typhoons and heavy rains.
In order to raise individuals’ disaster awareness, it is critical that wepass on the lessons learned during the past disasters to future generations to prevent them from fading away and think about ways to avoid
becoming victims of a next disaster.

DNP ʼs Efforts for the Resolution of Social Issues

Humanitarian Aid
As a good corporate citizen operating in harmony with society, DNP assumes themission of providing support to victims of major disasters both in and outside
Japan. In providing support, what we focus is to have sympathy for disastervictims and sincerely think about what support really helps people living in disasterstricken areas.
We thus collaborate closely with non-profit organizations (NPOs) and otherparties well-acquainted with the conditions in disaster-stricken areas and

DNP Group CSR Report35

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Corporate Citizenshipcontinuously undertake activities to support reconstruction based on the needs ofand situations in these areas.

 olunteer activities to support reconstruction from the Great East
V
Japan Earthquake
In areas affected by the 2011 Great East Japan Earthquake, we have carried out
volunteer activities nine times during the period from 2013 to 2017, in which a totalof more than 200 Group company employees and their families participated.
In 2017, we conducted local volunteer activities twice in Ishinomaki City, Miyagi
Prefecture, assisting fishery-related work in July and cleaning up temporary housing and engaging in work related to the relocation of a local recovery and community center in October.
In July, 37 Group company employees and their families assisted in fisheryrelated work in Higashihama district, Ishinomaki City. The district is located in the
middle and on the west side of the Oshika Peninsula stretching east to south from
Ishinomaki. The place has been known for its oyster farming, but the facilities wereseriously damaged by the earthquake-induced tsunami. Since 2015, DNP has
been continuously providing assistance for restoring oyster beds in the district.
In October, activities were carried out by 31 employees and their families in
Ohashi and Ogatsu districts in Ishinomaki
City. In Ohashi district, they worked in a
temporary housing complex, cleaning up
individual housing and community areas. In
Ogatsu district, they engaged in work
related to the relocation of a local recovery
and community center, including cleaning
up the facility, transporting trees, weedingflowerbeds and planting.
Cleaning up temporary housing in Ishinomaki City,

In addition to local volunteer activities to support reconstruction, we offeredspecial menus in company cafeterias and donated a portion of their sales with amatching donation from DNP (for a total of 1,701,838 yen) to the Chance forChildren, a public interest incorporated association providing educational support
to children.
ActivityNo.

Date

Location in Miyagi Pref.

Activity

Employee
Familyparticipants participants

1

Nov.2013 Ishinomaki City

Cleaning up temporary housing

24

—

2

Jul.2014 Ishinomaki City

Cleaning up temporary housing

30

—

3

Oct.2014 Minami Sanriku-cho Fishery-related work (sea squirt farming)

30

—

4

Jul.2015 Ishinomaki City

Cleaning up temporary housing

19

—

5

Oct.2015 Ishinomaki City

Fishery-related work (oyster farming)

25

6

Oct.2016 Ishinomaki City

Fishery-related work (oyster farming)

19

7

Dec.2016 Ishinomaki City

Cleaning up temporary housing

18

—

8

Jul.2017 Ishinomaki City

Fishery-related work (oyster farming)

25

12

9

Oct.2017 Ishinomaki City

Cleaning up temporary housing and work related to
the relocation of a recovery and community center

28

3

218

15

Total

—

 olunteer activities to support reconstruction from the Kumamoto
V
Earthquakes
We have conducted employee volunteer activities in areas affected by the 2016
Kumamoto Earthquakes twice to date (once in 2016 and once in 2017) with theparticipation of a total of 37 Group company employees.
In 2017, 21 Group company employees conducted recovery support activities
in Tateno district, Minamiaso Village, Kumamoto Prefecture. The earthquakes
caused damage to the district’s infrastructure, destroying roads and cutting off the

Miyagi Prefecture

DNP Group CSR Report36

Contents / Editorial Policy〉〉

A Message from the CSREnvironment Committee Chairman

Corporate Profile

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Business to Contribute to SDGs Achievement 〉〉 Fair Operating Practices 〉〉 Human Rights and Labor 〉〉 Environment 〉〉 Responsible Procurement 〉〉 Product Safety and Quality 〉〉 Information Security 〉〉 Corporate Citizenship

Report on Activities under Each Principal Theme

Corporate Citizenshipwater supply. Following the earthquakes, a heavy rain and the subsequent landslide partially destroyed more than 180 families’ homes, and the district received
a long-term evacuation instruction for nearly 18 months. Employee volunteers
conducted activities with residents affectedby the disaster, such as removing disasterdebris, cleaning up a local shrine, weeding
village roads and housing areas, cleaning
and clearing up waste at individual homes
and dismantling a shed.
DNP will continue to undertake activities
that will lead to the recovery and revitalization of local communities, always thinking
what we can do for the reconstruction of
Weeding a village road in Minamiaso Village,
disaster-stricken areas.
Kumamoto Prefecture

ActivityNo.

Date

Location in Kumamato
Pref.

Activity

1

Oct. 2016

Mashiki Town and
Aso City

Closing down an evacuation center and agriculturerelated work

16

—

2

Nov. 2017 Minamiaso Village

Removing debris, weeding and cleaning up

21

—

37

—

Total

Employee
Familyparticipants participants

DNP Group CSR Report37

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

FY2017 CSR Management Report 〉〉 Environmental Activity Targets and Results

FY2017 CSR Management Report
Mid-Range Targets

FY2017 Targets

Compliance with the
Law and Social Ethics○ Target achieved △ Efforts to be continued into the next fiscal year as target not yet achieved × Efforts insufficient

CSR
Theme*

Disseminate and instill DNP’s corporate ethics, and enhance the effectiveness of internal controls and risk
management.

• Continue to implement Autonomous Corporate Ethics Training
and similar efforts.
• Analyze and assess risks at all international locations; implement
ongoing risk response.
• Formulate and disseminate a basic policy, etc., for corruption
prevention, and ensure compliance.

Strengthen the DNP Group’s ability
to withstand natural disasters

Development of a System for
Business Continuity

Foundations of the Three Corporate Responsibilities

Evaluation Indications• Strengthen each workplace’s ability
to withstand natural disasters
based on the Disaster Response
Work Plans and BusinessContinuity Plan.
• Strengthen disaster defense
measures in Ichigaya to protect
DNP’s central functions.
• Establish a wide-area joint support
framework for disaster situations.
• Strengthen disaster damage
reduction measures for information
systems.

FY2017 Results• Strengthen measures to cope with large-scale disasters.
· Equip and enhance collaboration and support structure
between operating locations in case of wide-area disaster.
· Strengthen Ichigaya (Tokyo) and Kashiwa (Chiba Prefecture)area backup structures for plant systems.
· Strengthen disaster response capabilities in Ichigaya area.
· Expand use of FMC service*.
* An extension telephone service using mobile phones that enables callingwith in-house extensions while out of the office.

· Implement work-from-home IT service.
· Strengthen structure and environment to ensure continuous
provision of IT services even if data center is affected bydisaster.
• Promote specific, practical activities to lower risk based on
disaster management plans covering climate change and local
disaster risk at each workplace.

*Former CSR ThemeDNP Group CSR Report

38

Evaluation• Implemented Autonomous Corporate Ethics Training and level-based and othertypes of training at each organization.
• Head Office and international Group companies collaborated to implement
measures against significant risks including the EU General Data Protection
Regulation (GDPR).
• Formulated the DNP Group Anti-Bribery Policy and related regulations andguidelines to strengthen systematic prevention of corruption.

○• Redeveloped Ichigaya site’s disaster response capabilities to a framework in which
each building acts independently while being integrative for the area, and established the cycle to implement and evaluate this framework. Also, considered
expanding the measure to other sites.
• Established a parallel operation environment for the portal site and Email of the twosites to realize full redundancy. Also, considered expanding redundancy for otheroperating systems.
• Continually expanded use of FMC service, with 12,000 mobile phones inoperation, an increase of 2,000 from the previous year.
• Considered implementation of work-from-home IT service measures.
• Implemented early prevention measures such as for wind and flood damage basedon management standards. Also, reduced risks by establishing action guidelines inthe event of an emergency.

○

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

FY2017 CSR Management Report 〉〉 Environmental Activity Targets and Results

FY2017 CSR Management Report
Evaluation Indications

Contributing to the Development ofSociety

Responsibility #1

CSR
Theme*

Mid-Range Targets[Realizing Our Group Vision]
Promote the creation of an environment to accelerate the realization of
the DNP Group Vision 2015.

○ Target achieved △ Efforts to be continued into the next fiscal year as target not yet achieved × Efforts insufficient

FY2017 Targets

FY2017 Results

Evaluation• Promote sales and production activity acceleration and integration
measures (structures and systems) to realize the DNP Group
Vision.

• Carrying out unconventional inter-divisional cooperation measures as a result ofdivision integrations due to the redevelopment of DNP’s Ichigaya site. At the Tokyo
Anime Center in DNP Plaza located in the Ichigaya site, three business divisions
are working together to promote sales activities that lead to new value.
• Undertaking innovative production activities that lead to the offering of new value
together with client companies. Established a joint-venture company with
Switzerland’s SIG Combibloc Group to promote a filling system and paper container in which solid foods such as fruits or cereal can be filled together with liquids
in a single process within clients’ production facilities.
• Promoted appropriate location of production. Since materials for photo printing
businesses are in high demand in the United States, production has been shiftedto the United States.

○*Former CSR ThemeDNP Group CSR Report39

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

FY2017 CSR Management Report 〉〉 Environmental Activity Targets and Results

FY2017 CSR Management Report
Evaluation Indications

CSR
Theme*

Mid-Range Targets○ Target achieved △ Efforts to be continued into the next fiscal year as target not yet achieved × Efforts insufficient

FY2017 Targets

Contributing to the Development of Society

Responsibility #1

Promote products, services and business models aimed atachieving DNP’s growth strategy[Progress in relation to growthstrategy]
Develop capability for an early graspof issues for people and society,create products and services toprovide new value, and contribute tosocial development.

• Knowledge and communication
Support cultural development, promote communication with
consumers and develop new products and services to provide
valuable information safely and securely in the optimal form.
• Food and healthcare
Develop new products and services to facilitate safe andhigh-quality life as well as lifelong health maintenance in an aging
society.
• Lifestyles and mobility
Contribute to achieving comfortable personal spaces and a smart
society adapted to the diversifying values of consumers.
• Environment and energy
Develop new products and services that aim to realize a sustainable society and promote respect for the global environment andenergy/resource conservation.

*Former CSR ThemeDNP Group CSR Report40

FY2017 Results

Evaluation• Established the IGUD design method for digital marketing. This method offers
designs that are easy to understand for diverse people by combining infographics(IG), which visually presents information and data using illustrations and diagrams,
and universal design (UD), which focuses on usability for diverse people.
• Conducted a demonstration experiment of “&Hand,” an initiative which connects
pregnant women who wish to sit in the train with passengers willing to offer theirseats on the Tokyo Metro Ginza Line.
• Developed office equipment incorporating the Internet of Secure Things IoST
(Internet of Secure Things®) Platform, a DNP service that provides the IoT environment with security functions in order to boost security and IoT convenience.
Supports client’s workstyle innovation initiative by offering office equipment using
smart card technology for added safety and security.
• In a joint research with The University of Tokyo, successfully developed an ultrathin,elastic skin display, which fits snugly on the skin and shows the moving electrocardiographic waveform measured by a skin sensor, holding hopes for application inhome healthcare.
• Products by Pokka Sapporo Food & Beverage Ltd. using the DNP microwavable
packaging materials was awarded the Kinoshita Prize by the Japan Packaging
Institute. The packaging, which has superior heat and impact resistance, also
contributes to the reduction of environmental load and food loss.
• In collaboration with Yusen Logistics Co., Ltd., established a high-quality, temperature controlled international transport service using the DNP multifunctional insulation box, which helps to reduce CO2 emissions by improving transport efficiency
and eliminating the need for refrigeration functions, as well as to contribute to the
reduction of food loss by securing the cold chain.
• Developed curved resin glass for electric vehicles suitable for use in curved largesized parts. Contributed to reduced vehicle weight, which leads to the reduction of
CO2 emissions and supports the shift to electric vehicles.
• Together with the National Institute of Advanced Industrial Science and Technology,
developed the Flexible Surface Pattern Sensor, a sensor sheet to monitor the stress
distribution in bridges. Contributes to safer and more secure transportation by using
sensors to check on the deterioration conditions of transportation infrastructures.

○

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

FY2017 CSR Management Report 〉〉 Environmental Activity Targets and Results

FY2017 CSR Management Report
Mid-Range Targets

FY2017 Targets

FY2017 Results

Evaluation

Contributing to theDevelopment of Society○ Target achieved △ Efforts to be continued into the next fiscal year as target not yet achieved × Efforts insufficient

CSR
Theme*

Establish an organization conduciveto overseas expansion.

• Promote building an organizational structure based on our new
international strategy.

• Established a structure to contribute to the economic development of Asia, suchas stationing employees other than those dedicated to existing businesses at the
India Representative Office.

○

Review and develop management
structure in line with trends in international human rights standards; inaccordance with that, review and takevarious opportunities to promote
understanding and compliance withsuch standards on the part of
employees and suppliers.

• Consider methods to perform human rights due diligence.
• Implement specific risk mitigation measures based on risk survey
analysis.
• Continue activities such as level-based group training with a focus
on human rights risk issues.

• Began considerations toward the formulation of human rights policies andimplementation of human rights due diligence.
• Bolstered management in order to reduce supply chain risk. Expanded CSR
procurement management to international business locations.
• Carried out level-based and specialized staff training with a focus on education on
supply chain risks including human rights.

○• Greater participation by women• Employment for persons withdisabilities• Greater participation by contracted
employees and senior staff• Employment of non-Japanesecitizens• Implement measures in accordance with the Act to Advance
Women’s Success in Their Working Life (action plan goal: double
the number of female managers by the end of FY2019).
• Achieve an employment rate of 2.2% for persons with disabilities
through such measures as the development of job categories
and year-round employment screening.

• Carried out various trainings geared toward promoting female employees tomanagers and producing female leaders: Next-Generation Female Leader Training(35 participants), Diversity Promotion Leader Training (18 participants), Step-Up
Program for Young Female Employees (146 participants) and Training for Providing
Career-Development Support to Staff Members (134 participants).
• Conducted a workshop to support mid-to long-term career development withconsideration for life events (84 participants).
• Employment rate for persons with disabilities: 2.06%.

○

Enhance development of an in-house
workforce able to make contributions
to the global community.

• Combine global training system and new jumpstart global workforce development training to strengthen junior employee
development.

• Launched the jumpstart global workforce development training with the aim todevelop and obtain a global workforce in a systematic manner. Carried out one
year training program (including three month training abroad program) for 16
selected employees.

○

Respect for Human Dignity and Diversity

Responsibility #2

Responsibility #1

Evaluation Indications

Encourage diversity in employment:*Former CSR ThemeDNP Group CSR Report41

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

FY2017 CSR Management Report 〉〉 Environmental Activity Targets and Results

FY2017 CSR Management Report
Evaluation Indications

Realization of a Safe and Vibrant Workplace

Responsibility #2

Respect for Human Dignity
and Diversity

CSR
Theme*○ Target achieved △ Efforts to be continued into the next fiscal year as target not yet achieved × Efforts insufficient

Mid-Range Targets

FY2017 Targets

FY2017 Results

Evaluation

Help alleviate poverty for producers indeveloping nations.

• Expand internal consumption of fair trade-certified products.
· Serve 100,000 cups of coffee annually.
· Expand number of certified products sold internally.
• Encourage propagation of fair trade internally and externally.
· Leverage knowledge acquired through internal consumption to
implement fair trade promotion activities in collaboration withexternal partners.

• Fair trade-certified coffee: Achieved cumulative total of 1 million servings since
2006.
• Fair trade-certified ice cream: Expanded internal sales to two locations.
• Conducted a workshop jointly hosted by four companies (DNP, NTT Data, Konica
Minolta Japan and NYK Line) encouraging internal consumption of fair tradecertified products with the aim to promote fair trade (with cooperation from the
NPO Fairtrade Label Japan and JICA). There were 50 participants including
professionals and government staff in charge of promotion of the SDGs at related
ministries and agencies.

○

Develop personnel to drive thefulfillment of our Corporate
Philosophy.

• Encourage understanding and use of new goal management
system and merit rating system.
• Implement training with the theme of solving social problems.

• Carried out training for all managers in the Group aimed at increasing the effectiveness of the goal management system and transforming the management (2,000
participants).
• Conducted training and workshops for staff members in charge of promoting thegoal management system at each department.
• Conducted technological seminars on the SDGs (approx. 50 participants).

○

Offer workstyle innovation to enable
DNP to respond swiftly and flexibly tochanging social environments, andimplement measures to improve job
satisfaction for every employee so as
to generate popular momentum
toward creating an invigorated, highperformance company.

• Continue activities in each organization based on plans to realize
workstyle innovation.
• Enrich full participation of worksite unit activities and achievetarget for mutually confirming and supporting the use of paid
leave.
• Continue to promote the balance of work and nursing care
responsibilities, and participation by male employees in childrearing.

• Continued activities in each organization based on plans to realize workstyleinnovation. Labor and management monitored progress twice through theProductive Time Resources Project.
• Carried out progress survey of workstyle innovation and provided each organization with feedback on analysis results. Paid leave use rate: 50.8%• Carried out seminars to support the balance of work and nursing care responsibilities as well as individual conferences regarding nursing care. Revised the pamphlet promoting participation by male employees in child rearing in accordancewith the revised Child Care and Family Care Leave Law, and ensured dissemination and awareness.

○*Former CSR ThemeDNP Group CSR Report42

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

FY2017 CSR Management Report 〉〉 Environmental Activity Targets and Results

FY2017 CSR Management Report
CSR
Theme*

Mid-Range Targets

FY2017 Targets

FY2017 Results

Evaluation

Realization of a Safe andVibrant Workplace

Carry on the creation of workplaceenvironments where employees canwork with peace of mind, free fromhealth hazards. This will be achieved
based on plans to prevent workrelated accidents and promote/maintain health.

• Prioritize elimination of machine-related accidents, promote risk
assessment and facility safety measures based on safety standards for in-house equipment, and strengthen education/
guidance.
• Based on stress check results, create structure to promoteindependent efforts at every workplace.
• In light of results from the first model business for health education, implement second model business for health education withmore effective content.

• Completed countermeasures for high-risk sections in production facilities. Also
conducted training on facility safety measures for managers and staff in order todevelop personnel with expertise who can take leadership in safety activities at
each site (six training sessions, 164 participants).
• Based on organizational analysis of stress check results, formulated workplace
improvement action plans at every workplace and established a structure to unify
these actions with workplace unit activities on workstyle innovation.
• In light of results from the first model business for health education, provided
support for the 230 participants at each stage of “realization,” “action,” “confirming
efficacy” and “improving measures.”○

Ensuring the Safety and Qualityof Our Products and Services○ Target achieved △ Efforts to be continued into the next fiscal year as target not yet achieved × Efforts insufficient

In order to meet the expectations ofenterprises, consumers and society,carry out inter-departmental activities
involving all DNP employees anddepartments worldwide, maintain andenhance production quality, andcreate products with the world’s
highest levels of quality and safety.

• Reinforce quality assurance and product safety management
structures across the Group, as well as inter-departmental
activities to enhance quality and product safety and ensure
prevention of major product quality accidents and accidents
relating to product safety.
• Continue holding inter-departmental Frontline Practices
Committee meetings.
• Through quality system verification, strengthen efforts from thedevelopment stage to improve quality and safety in new
businesses.

• Aggregated rules on major product quality accidents and accidents relating to
product safety; revised them from a client perspective; reflected them in theGroup’s Quality Assurance and Product Safety Rules; and ensured awarenessacross the Group.
• Continued holding inter-departmental Frontline Practices Committee meetings(69 times).
• To improve quality and safety in new businesses, established Group-wide rules toinclude adequacy evaluation through risk assessment and design reviews assuming usage quality at the developmental and design stage. Also, conducted quality
system inspections at main facilities (70 times).

○

Ensuring Information Security

Responsibility #2

Evaluation Indications• Aim for strong information security
and efficient, highly productive work.
• To respond to globalization, extend
DNP’s information security management protocol to every country inwhich it operates, in accordancewith local rules and regulations.
• Recognize network security risks
and take proper measures.
• Promote protection of personal
data.

• Promoted adoption of thin client PCs (cumulative total of 5,044 terminals).
• Promoted introduction of SSFC-based (Shared Security Formats Cooperation)
printing management systems (cumulative total of 511 systems).
• Created Introduction to Information Security 2017 educational tool in 10
languages.
• Conducted trainings and technical seminars for all employees through e-learning(six times).
• Revised Policy on Protection of Personal Information (including for domestic andoverseas Group companies)○• To ensure secure internal and external conduct of business,promote introduction of thin client PCs• Revamp office environments and cut back on the use of paper.** Reduce paper usage by making the working environment conducive toelectronic communication and data storage.

• Expand educational tools to cover multiple languages and provide
training aimed at promoting information security management atoverseas Group companies.
• Raise the level of understanding and training with respect tonetwork security measures.
• Formulate internal rules in response to revisions to the Act on theProtection of Personal Information and JISQ15001.

*Former CSR ThemeDNP Group CSR Report43

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

FY2017 CSR Management Report 〉〉 Environmental Activity Targets and Results

FY2017 CSR Management Report
Mid-Range Targets

FY2017 Targets

FY2017 Results

Evaluation

Promoting Social Responsibility
through the Supply Chain

DNP and its suppliers will understandthe importance of CSR and act withintegrity and in accordance with the
CSR Procurement Guidelines toimprove compatibility with social
expectations across the whole supply
chain, thereby achieving sustainablegrowth both for the enterprise andsociety, which is the basis for business activities.

• Conduct and announce results of supplier survey relating toconflict minerals.
• CSR Procurement Guidelines· Carry out compliance survey and engage in TAIWA (“dialogue”)
with key suppliers.
· Expand the number of business subcontractors subject to thesurvey.
· Reinforce CSR Procurement activities at overseas businesslocations.
• Guidelines for Procurement of Paper for Printing and Converting· Engage in TAIWA with key suppliers and confirm guideline
conformance.

• Conducted supplier survey relating to conflict minerals.
• Held an information session on CSR Procurement Guidelines for key suppliers(102 companies, 136 participants). Explained the background of revisions to the
Guidelines, such as social trends, and requested the efforts of each company.
Also, began preparations for a compliance survey.
• Expanded the scope of CSR procurement activities to overseas business locations
and their suppliers and subcontractors. Ensured awareness of Guidelines internallyand externally, and conducted, analyzed and evaluated the compliance survey of
130 key suppliers.
• Conducted surveys and interviews with 27 companies on the Guidelines for
Procurement of Paper for Printing and Converting and confirmed guideline
conformance.

○

Social Contribution asa Good Corporate Citizen○ Target achieved △ Efforts to be continued into the next fiscal year as target not yet achieved × Efforts insufficient

CSR
Theme*

Expand the impact of social contribution activities to facilitate the realization of a sustainable society• Promote the five activity themes of
the DNP Social Contribution
Activities Policy (through FY2019).
• Group programs: 2.5% employee
participation rate (1,000 persons).
• Location-specific programs: 100%
implementation rate.

• Enhance Group programs:· Number of participants: 200 in single fiscal year, cumulative totalof 574.
· Continue expanding Group programs to locations throughout
Japan.
• Monitor and analyze business division and Group company
activities, and formulate a strategy and framework to strengthen
activities in FY2018 and beyond• Number of participants: 290 in FY2017, cumulative total of 690.
• Established two new work-at-home program open to employees throughout
Japan.
• Revised CSR themes and frameworks.

○• Make appropriate, timely disclosure of positive and negativesocial impacts from our business activities.
• Prepare for disclosure of combined financial and nonfinancial
information relating to our value creation process.

• Actively carried out constructive TAIWA with institutional investors based on
corporate governance codes and stewardship codes.
• Based on the fair disclosure rule, reinforced structure to disclose information ina consistent manner in accordance with laws and promote constructive TAIWA
with institutional investors.
• Recognized for its measures and information disclosure on ESG, DNP wasselected for inclusion in various SRI indices and three ESG indices selected by
Japan’s Government Pension Investment Fund (GPIF).
• Worked to shift corporate activities based on “integration thinking” and determined
to disclose the results by “integrated reporting.”○

Proper Disclosure ofInformation

Responsibility #3

Responsibility #2

Evaluation Indications

Enhance corporate transparency andreinforce DNP’s position as a company trusted by the public by providing stakeholders with the timely,
appropriate information they need.

*Former CSR ThemeDNP Group CSR Report

44Corporate Profile

Contents / Editorial Policy〉〉

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

FY2017 CSR Management Report 〉〉 Environmental Activity Targets and Results

FY2017 CSR Management Report
Environmental Activity Targets and Results
Evaluation Criteria

Environmental Conservation and the Realization of a Sustainable Society

Responsibility #2

CSR
Theme*Topic◎ Target exceeded by a wide margin ○ Target achieved or making steady progress toward target △ Making active efforts but target not achieved × Efforts insufficient

Targets through FY2020

FY2017 results

Reduction of GHG emissions

To reduce GHG emissions by 10% from FY2005 levels and 20% by FY2030(Includes overseas locations)

Reduction of environmental
impact incurred during transport

To reduce per-unit fuel use for transport by 1% per annum and 10% compared with FY2010

Reduction of volatile organic
compounds (VOC) emissions

Reduction of industrial waste

To reduce emissions of VOCs (except for methane) by 35% compared with FY2010

Emissions in FY2005: 1.110 million tons
Emissions in FY2017: 0.892 million tons
Per unit in FY2010: 16.1 kl/billion yen
Per unit in FY2017: 14.7 kl/billion yen
Emissions in FY2010: 6,729 tons
Emissions in FY2017: 4,831 tons

Evaluation

19.6% decrease
from FY2005◎

8.7% decrease from
FY2010○28.2% decrease
from FY2010○

Overseas, based on local laws and regulations, we plan to reduce atmospheric emissions of
VOCs to the greatest extent possible through the introduction of technologies and other measures

Continue operation of VOC recovery equipment at DNP
Indonesia’s Karawang Plant○

To reduce per-unit waste emissions (waste emissions/production) by 20% compared with
FY2010. (Includes overseas locations)

Per unit in FY2010: 42.4 tons/billion yen
Per unit in FY2017: 34.3 tons/billion yen

19% decrease from
FY2010○

Maintained zero
emissions◎

34% decrease from
FY2010◎5.0% increase from
FY2015○Landfill waste rate in FY2015: 0.06%

To maintain zero emissions for the entire DNP Group

Landfill waste rate in FY2017: 0.04%
Per unit in FY2010: 10.8 m³/million yen

Reduction of water usage

To reduce per-unit water use by 25% compared with FY2010(Includes overseas locations)

Development and sales ofenvironmentally conscious
products and services

Development and sales of environmentally conscious products and services to totaling 600
billion yen

Sales of 599.3 billion yen in FY2017

To keep the maximum concentration of air emissions subject to emissions regulations at 70% of
the required standard or less

96% achievement rate of targets for
FY2017 (voluntary target)○

To keep the maximum concentration of water emissions subject to wastewater regulations at
70% of the required standard or less

99% achievement rate of targets for
FY2017 (voluntary target)○

To keep the maximum concentration of odors at our site perimeters at 70% of the required
standard or less

100% achievement rate of targets for
FY2017 (voluntary target)○

To keep the maximum level of noise at our site perimeters at 70% of the required standard
or less

98% achievement rate of targets for
FY2017 (voluntary target)○

To keep the maximum level of vibration at our site perimeters at 70% of the required standard
or less

100% achievement rate of targets for
FY2017 (voluntary target)○

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

80.9% recovery of waste paper in FY2017◎

Environmental conservation

Office environment

Per unit in FY2017: 7.1 m³/million yen*Former CSR Themes

DNP Group CSR Report

45

Sales of 570.8 billion yen in FY2015

Contents / Editorial Policy

A Message from the CSREnvironment Committee Chairman

Corporate Profile

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Recognition from Society
Inclusion in SRI Indexes (As of September 2018)
DNP is included in the world’s major socially responsible investment (SRI) indices.

THE INCLUSION OF Dai Nippon Printing IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS,
TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE ASPONSORSHIP, ENDORSEMENT OR PROMOTION OF Dai Nippon Printing BY MSCI OR ANY OF ITS
AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCIINDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

FTSE4Good Global Index

ETHIBEL Investment Register

FTSE Russell, a wholly owned subsidiary of
London Stock Exchange Group, evaluatescompanies from around the world and selects
the shares of those that excel in terms ofenvironmental, social and governance (ESG)
performance for inclusion in this index.
DNP has been selected for 18 consecutive
years, since 2000.

An investment universe operated by ForumETHIBEL, a Belgian nonprofit organization.
ETHIBEL selects companies with strong
performance from the standpoint of corporatesocial responsibility.

MSCI ESG Leaders Indexes

Morningstar Socially Responsible
Investment Index

U.S.-based MSCI Inc. offers indices that are
constructed by selecting companies withexcellent ESG profiles from among the top
500 corporations in terms of market
capitalization.

Morningstar Japan K.K. provides financial andeconomic information on a global scale,including issuing a stock newspaper called
The Kabushiki Shimbun.
Morningstar evaluates the extent to which
Japanese companies take a proactive stancetoward ESG and human resources utilization.

MSCI SRI Indexes
THE INCLUSION OF Dai Nippon Printing IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS,
TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE ASPONSORSHIP, ENDORSEMENT OR PROMOTION OF Dai Nippon Printing BY MSCI OR ANY OF ITS
AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCIINDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

Components of MSCI’s SRI indexes arechosen from a group that excludes
corporations that place a heavy load on theenvironment or handle products that may
have negative effects on society in other ways.

DNP Group CSR Report46

Contents / Editorial Policy

A Message from the CSREnvironment Committee Chairman

Corporate Profile

Report on Activities under
Each Principal ThemeCSR at DNP

FY2017
CSR Management Report

Recognition from Society

Recognition from Society
Inclusion in ESG indices (As of September 2018)
DNP was selected for inclusion in all three of the ESG indices selected by Japan’s
Government Pension Investment Fund (GPIF).

FTSE Blossom Japan Index
A comprehensive index that considers every
aspect of ESG, this index was designed tomeasure the performance of Japanesecompanies that are doing an excellent job of
responding to ESG-related concerns.
This index included 155 companies as ofJuly 2018.

MSCI Japan Empowering Women
Index
THE INCLUSION OF Dai Nippon Printing IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS,
TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE ASPONSORSHIP, ENDORSEMENT OR PROMOTION OF Dai Nippon Printing BY MSCI OR ANY OF ITS
AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCIINDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

MSCI Japan ESG Select Leaders
Index
THE INCLUSION OF Dai Nippon Printing IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS,
TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE ASPONSORSHIP, ENDORSEMENT OR PROMOTION OF Dai Nippon Printing BY MSCI OR ANY OF ITS
AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCIINDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

This index consists of companies selected foroutstanding ESG performance from among
the constituents of the MSCI Japan IMI Top
500 Index.
This index included 251 constituent
companies as of July 2018.

DNP Group CSR Report

47

MSCI constructed this index by calculating
various types of gender diversity scores basedon female employment data disclosed in linewith the Act on Promotion of Women's
Participation and Advancement in the
Workplace. The scores are calculated for
MSCI Japan IMI Top 500 Index constituents,
and the companies with the best scores ineach industry group are selected for inclusionin the index.
This index included 215 companies as ofJuly 2018.

Dai Nippon Printing Co., Ltd.
CSR & Environment Department
1-1, Ichigaya Kagacho 1-chome, Shinjuku-ku,
Tokyo 162-8001, Japan
Tel: +81-3-3266-2111
URL: http://www.dnp.co.jp/eng/
Issued: October 2018 ©2018. DNP