Contents

Introduction

Management

Social (S)Environment (E)Governance (G)Recognition / Assurance

Human Assets | Diversity & Inclusion | Human Rights | Employee Health & Safety / Work-Life Balance | Supply Chain Management | Research and Development | Intellectual Property | Total Quality Assurance | Engagement | Social Contribution Activities

Supply Chain Management
Basic Approach
Approach

TOPPAN promotes sustainable procurement throughout the
supply chain in cooperation with suppliers and subcontractors

observed by every department responsible for procurement or

use of natural resources to avoid or minimize impacts on

involved in operations linked to products and services, and thebiodiversity in the global environment.

Sustainable Procurement Standards, which are to be satisfied byour business partners.
The Sustainable Procurement Standards comprise nine(“business partners”) to fulfill the Group’s social responsibilities

sections: “legal compliance and respect for internationallyand support a sustainable society. We also seek to enhancerecognized standards,” “human rights and labor,” “health andcorporate value for ourselves as well as our business partners

safety,” “environment,” “fair business and ethics,” “quality andthrough sustainable procurement endeavors.

safety,” “information security,” “business continuity planning,”

A revised set of TOPPAN Group Sustainable Procurement
Guidelines issued in January 2022 will be shared throughout the ore details on the TOPPAN Group Sustainable Procurement
M
Guidelines
https://www.holdings.toppan.com/assets/en/pdf/sustainability/The_Toppan_Group_
Sustainable_Procurement_Guidelines.pdf

More details on the TOPPAN Group Human Rights Policy
https://www.holdings.toppan.com/en/about-us/our-corporate-approach/humanrights-policy.html

 ore details on the Annex to the TOPPAN Group Declaration on the
M
Global Environmentand “establishing a management system.”
Based on the TOPPAN Group Human Rights Policy, thesupply chain. The revisions are a response to the growing

Annex to the TOPPAN Group Declaration on the Global

demand in society for supply-chain management practices thatEnvironment, and the Declaration of Partnership Building, ouraddress human rights, better ensure occupational safety andprocurement departments engage in BCP activities, implement

health, preserve the environment, and attain various otherhuman rights and environmental conservation initiatives in thesustainability targets. We will accelerate sustainablesupply chain, and take a proactive approach to the sustainable

https://www.holdings.toppan.com/assets/en/pdf/sustainability/The_Toppan_Group_
Declaration_on_the_Global_Environment_AnnexV1.pdf

More details on the Declaration of Partnership Building (in Japanese)
https://www.holdings.toppan.com/assets/ja/pdf/our-corporate-approach/toppan's_
partnership.pdf

procurement with business partners through a cycle ofoperations, audits, and refinement.
Under a Declaration of Partnership Building released by
Toppan Inc. in September 2022, we will be working withbusiness partners to fulfill our corporate social responsibilities
on both sides through supply-chain-wide initiatives that help
develop a sustainable society. We strive for co-prosperity withbusiness partners by maintaining good business practices andsupporting our partners with advice on their business continuity
planning (BCP) activities.

The Structure of the TOPPAN Group Sustainable Procurement Guidelines
Basic Procurement Policy

Sustainable Procurement Standards

This is a basic policy that applies to all workers involved in procurement activities

These are sections that set out requirements for suppliers andWe fairly and impartially offer opportunities to all Business Partners and potential

1. L egal Compliance and Respect for Internationally Recognized

We comply with domestic and overseas laws and regulations and conduct fair

2. Human Rights and Labor

We strictly control the information obtained through procurement activities.

4. Environment

at the TOPPAN Group.
Business Partners.

business transactions based on corporate ethics.

We work to conserve the environment and reduce impact on the environment.

The Sustainable Procurement Guidelines
The TOPPAN Group Sustainable Procurement Guidelines

We pursue QCD (Quality, Cost, Delivery) in order to meet the needs of the market.
We work to foster mutual cooperation and build relationships of trust with
Business Partners.

We promote sustainable procurement throughout the entire supply chain.

subcontractors*.
Standards

3. Health and Safety

5. Fair Business and Ethics
6. Quality and Safety

7. Information Security

8. Business Continuity Planning

9. Establishing a Management System*“Subcontractors”
are referred to as“Business Partners” inthese guidelines.

consist of the Basic Procurement Policy, a basic framework to be

66

Sustainability Report 2023

Contents

Introduction

Management

Social (S)Environment (E)Governance (G)Recognition / Assurance

Human Assets | Diversity & Inclusion | Human Rights | Employee Health & Safety / Work-Life Balance | Supply Chain Management | Research and Development | Intellectual Property | Total Quality Assurance | Engagement | Social Contribution Activities

Promotion Framework

Departments that Work with Business Partners

Promotion framework

Sustainable procurement is a Groupwide initiative undertaken
not just by procurement departments, but by every departmentthat handles products and services. The Manufacturing
Management Division works with related departments acrossDepartments

Key Business Categories

Production control

OEMs

Purchasing

Suppliers

Planning

Subcontractors

General affairs

Temporary staffing agencies

Selecting Key Business Partners
Following is our evaluation approach to selecting key business
partners, including both new companies and current partnercompanies.
Business partners engaged in ongoing business with
TOPPAN are divided into four key categories: OEMs, suppliers,

Group sites to implement sustainable procurement in close

subcontractors, and temporary staffing agencies. Their ESG

cooperation with business partners throughout our procurement

risks are assessed in subcategories of business. For each of theoperations around the world.

four key categories, partners who account for 90% of our
procurement in a given transaction item by monetary value or

Supply Chain Management Structure

those who have country-specific or business-specific ESG risks
are designated as “key business partners.”

Board of Directors
Reporting and supervising

Approach to Selecting Key Business Partners

Management Committee

Four KeyBusiness
Categories

Reporting and supervising

TOPPAN Group ESG Management Promotion Committee
Reporting and supervising

Corporate ESG Project
Supply Chain Working Group

Director in charge of the Manufacturing Management Division
Manufacturing Management Division
Domestic Group sites

Overseas Group sites

Business partners

Business partners(as of March 2023)

Existing / New Business Partners

Sustainability Promotion Committee

ESG Risks by
Detailed Business Category

Classify business partners bysubcategory of business and rank
their ESG risks on a three-point
scale (low, medium, high)OEMs

・Environmental: Atmosphere, soil,
or water pollution, climate change,etc.

Suppliers

・Social: Workers’ human rights,
impact on communities,
occupational safety and health,etc.
Commodity-specific risks: Lumber,
etc.

Subcontractors

Temporarystaffing
agencies・Governance: Risk management,
corruption prevention, etc.

67

Importance to
Our BusinessBusiness partners
accounting for 90%
of our previous
year’s procurement
for a given
transaction itemby monetary value

Key Business
Partners

Key OEMs

Key suppliers

Key subcontractors
ESG risks bydetailed businesscategory: Medium
and high levels

Key temporary staffing
agencies

Sustainability Report 2023

Contents

Introduction

Management

Social (S)Environment (E)Governance (G)Recognition / Assurance

Human Assets | Diversity & Inclusion | Human Rights | Employee Health & Safety / Work-Life Balance | Supply Chain Management | Research and Development | Intellectual Property | Total Quality Assurance | Engagement | Social Contribution Activities

Group Policies and Measures for Sustainable Procurement
Group Policy
TOPPAN Group
Human Rights Policy

Policy (details)
Human rights initiatives

Basic Procurement Policy

KPI Benchmark or Management Metric or Standard

Forced labor, harassment, or other human rights issues inthe supply chain

Dissemination of the human rights policy and confirmationof compliance

Key business
partners*

Compliance training in procurement departments

Relateddepartments within
the Group

Training on the Sustainable Procurement Guidelines inprocurement departments

Relateddepartments within
the Group

Monitoring on compliance in procurement departments
and the assessment of monitoring results

Key business
partners*

Number and percentage of business partners (meeting
the Group’s sales criterion) that have signed cooperationagreements, basic transaction agreements, and basic sale
& purchase agreements stipulating the observance of the
TOPPAN Group Sustainable Procurement Guidelines

Key business
partners*

Self-assessment questionnaires business partners canuse to assess their own ESG efforts based on the
TOPPAN Group Sustainable Procurement Standards

Key business
partners*

Compliance violations (violations of subcontract law, etc.);
acts contrary to accepted social ethics

TOPPAN Group
Sustainable
Procurement
Guidelines
Sustainable Procurement
Standards

Declaration ofPartnership Building

Annex to the
TOPPAN Group
Declaration on the
Global Environment

Business Partners
CoveredRisks Identified by the Evaluation

Quality-related incidents, environmental incidents, legal
violations, insufficiencies in raw material supply, or otherincidents in the supply chain that can develop into issues
in wider society

Continuation of business
operations with business
partners in the event of adisasterSupply disruption of materials, components, or equipment
caused by earthquakes, storms, floods, or other natural
disasters

Enhancement of the business continuity competencies ofbusiness partners (through questionnaires andworkshops on BCP)

Key business
partners*

Observance of good businesspractices with business
partners

Damage to social credibility arising from failures to rectify
business practices concerning pricing methods, payment
terms, work style reform, intellectual property usage, thesharing of expenses for mold management, etc.

Training on good business practices (training ontransaction-related legislation and the Declaration ofPartnership Building)

Relateddepartments within
the Group

Control of chemical
substances in products

Reduced product safety resulting from the admixture ofhazardous substances into raw materials

Dissemination of the TOPPAN Group Standards for theManagement of Chemical Components of Raw Materials

Key business
partners*

Suspension of operations at paper manufacturers resulting
from interruptions in the supply of lumber derived fromforest resources (the main material of paper) that areconsidered to have significant impact on biodiversity

Verification of the legality of lumber to promote thesustainable use of forest resources for paper production

All paper
manufacturers inthe supply chain

Supply stoppage of printing paper and suspensions ofprinting operations

Dissemination of the Paper Procurement Guidelines for
the Sustainable Use of Forest Resources

Key business
partners*

Proactive approach to thesustainable use of natural
resources by avoiding or
minimizing impacts on
biodiversity*Key business partners are those who engage in ongoing business with the Group and either account for 90% of supply by monetary value or have country-specific or business-specific ESG
risks in any of the four business categories (OEMs, suppliers, subcontractors, and temporary staffing agencies).

68

Sustainability Report 2023

Contents

Introduction

Management

Social (S)Environment (E)Governance (G)Recognition / Assurance

Human Assets | Diversity & Inclusion | Human Rights | Employee Health & Safety / Work-Life Balance | Supply Chain Management | Research and Development | Intellectual Property | Total Quality Assurance | Engagement | Social Contribution Activities

Sustainable Procurement Initiatives
Approach

Applying the Sustainable Procurement Guidelines
We began implementing the following measures in fiscal 2022

and deepen relationships of trust with business partners. The
hotline is open for use by all of our partners.
We have also sent business partners questionnaires towith key business partners.

transactions with the partners.

https://www.holdings.toppan.com/en/about-us/our-corporate-approach/supplierhotline.html

Conserving Biodiversity
We promote the sustainable use of natural resources based on
the Annex to the TOPPAN Group Declaration on the Global

questionnaires on the Sustainable Procurement Standards

Environment. To govern the procurement of raw materials, weand encourage them to rectify the issues they have identified

have formulated a set of paper procurement guidelines towide-scale disasters

advance the sustainable use of paper, a resource representing
70% of our material input.
To assure the sustainable use of forest resources, we

We have also established the Standards for the Management ofcooperate with paper manufacturers in the supply chain to

Chemical Components of Raw Materials, a set of standards toconfirm that the lumber they use for paper production is legallycontrol chemical components throughout the entire supply

obtained.

chain.
 ore details on the TOPPAN Group Standards for the Management ofM
Chemical Components of Raw Materials
https://www.holdings.toppan.com/assets/en/pdf/about-us/our-corporate-approach/chemical-components-of-raw-materials-v4.8en.pdf

Advocating the Basic Procurement Policy(Fair transactions by procurement departments)

and ask them to observe the TOPPAN Group Sustainable
Procurement Guidelines.
For the sustainable use of forest resources, we survey key
paper manufacturers to confirm the legality of the lumber usedagreements, and basic sale & purchase agreements

・Confirm the BCP steps business partners are taking to address

For wider dissemination of the sustainability initiatives
throughout the supply chain, we select key business partners

More details on the Supplier Hotline

・Conclude cooperation agreements, basic transaction(stipulating the observance of the procurement guidelines)

Selecting Key Business Partners

in accordance with the Basic Procurement Policy in their・Hold briefing sessions on the procurement guidelines

・Ask business partners to fill out self-assessment

Activity results, performance data

monitor whether our procurement departments operate properly

to apply the TOPPAN Group Sustainable Procurement
Guidelines throughout the entire supply chain, in cooperation

Main Activities and Results ore details on the Annex to the TOPPAN Group Declaration on the
M
Global Environment

in their paper production lines.

No. of Key Business Partners
Fiscal 2022
Item
No. of key business
partners
Key tier 2 suppliers (paper
manufacturers)
Total no. of companies

No. ofCompanies

Proportion of Total
Procurement by
Monetary Value

2,998

93%

10

−

3,008

−

Concluding Agreements with Business Partners

https://www.holdings.toppan.com/assets/en/pdf/sustainability/The_Toppan_Group_
Declaration_on_the_Global_Environment_AnnexV1.pdf

We have been promoting sustainable procurement throughoutMoredetails on the TOPPAN Group Paper Procurement Guidelines
for the Sustainable Use of Forest Resources (second edition) (inJapanese)

conclude cooperation agreements, basic transaction agreements,

https://www.holdings.toppan.com/library/japanese/about-us/files/sustainability/2014/proc2014_06.pdf

the entire supply chain by encouraging business partners toand basic sale & purchase agreements stipulating theobservance of the TOPPAN Group Sustainable Procurement
Guidelines. Our goal is to conclude agreements with 90% of key
partners by no later than fiscal 2025. We also ask business

Sustainable procurement practices should be built upon trust

partners to fill out self-assessment questionnaires and have

between business partners and us. We have set up a Supplierthem assess and boost their own ESG efforts based on the

Hotline to enhance transparency and fairness in transactions

guidelines.

69

Sustainability Report 2023

Contents

Introduction

Management

Social (S)Environment (E)Governance (G)Recognition / Assurance

Human Assets | Diversity & Inclusion | Human Rights | Employee Health & Safety / Work-Life Balance | Supply Chain Management | Research and Development | Intellectual Property | Total Quality Assurance | Engagement | Social Contribution Activities

Turning to the environment, we advance sustainable

Group Sustainable Procurement Guidelines and the modalities of

Questionnaire Themes (excerpt)

procurement in line with specific standards such as thecorporate social responsibility the guidelines prescribe.

International certifications obtained / Policies and rules

Standards for the Management of Chemical Components of Raw

Ex. 1: Cooperation Agreement text (excerpt)

formulatedMaterials and the Paper Procurement Guidelines for the

The company understands the intent of sustainable

Sustainable Use of Forest Resources.

procurement, and in transactions with TOPPAN Group

respect for internationally

7. Information security

companies, shall observe sustainable procurement

recognized standards

8. Business continuity

standards and shall comply with said procurement

2. Human rights and labor

standards or equivalent company standards.

3. Health and safety

No. of Partners with Cooperation, Basic Transaction,
or Basic Sale & Purchase Agreements

Ex. 2: Basic Transaction Agreement (excerpt)

Fiscal 2022
Target2,998

Actual

1,807

Rate of conclusion of agreements

60%

Breakdownbybusiness
category

OEMs

646

Suppliers

723

Subcontractors

420

Temporary staffing
agencies

18*Briefings on the sustainable procurement guidelines provided to 1,807
partners

planning
9. Establishing a management

4. Environment

Article 41.

system

5. Fair business and ethics

Legal Compliance and Promotion of Corporate Social
Responsibility

Enhancing BCP Competencies

Through procurement, manufacturing, sales, disposal, and allother business activities, the company shall observe theBusiness partners need to prepare procedures in advance to

Sustainable Procurement Guidelines, and shall request its own

ensure that production can be promptly resumed when abusiness partners to comply with said guidelines or withwide-scale natural disaster or other emergency affects theirequivalent guidelines established by the company.

operations. The Declaration of Partnership Building released
business continuity planning (BCP) at business partners toRequesting Self-assessments

Fiscal 2022
Target2,998

Actual1,807

Percentage of responses received

6. Quality and safety

from Toppan Inc. in September 2022 voices our support forNo. of Partners Performing Self-assessments

Breakdown
by businesscategory

1. Legal compliance and

60%

OEMs

646

Suppliers

723

Subcontractors

420

Temporary staffing
agencies

18

Agreements to Be Signed
We encourage business partners to enter into cooperationagreements, basic transaction agreements, and basic sale &purchase agreements stipulating the observance of the TOPPAN

secure the continuity of their businesses in the event of a

The questionnaire guides business partners through self-

disaster. We survey the BCP steps taken by key businessassessments of their own environmental, social, and governancepartners and hold BCP workshops with them.

(ESG) activities and outputs results that can be used to refine their
ESG initiatives in cooperation with TOPPAN.

Out of the 248 partners surveyed, 80 participated in online
workshops and discussed BCP matters in fiscal 2022.

BCP Survey Results
Fiscal 2020
Tier 1
Suppliers

Tier 2
Suppliers

Survey results48

No. of companies participating in workshops

13

No. of companies participating in workshops
whose survey evaluation improved
No. of companies participating in workshops whosesurvey evaluation improved (cumulative total)

70

Fiscal 2021
Total

Tier 1
Suppliers

Tier 2
Suppliers

115

163

63

4

17

14

2

1

3

4

8

12

Fiscal 2022
Total

Tier 1
Suppliers

Tier 2
Suppliers

Total

122

185

25

223

248

6

20

7

73

80

2

1

3

2

9

11

6

9

15

8

18

26

Sustainability Report 2023

Contents

Introduction

Management

Social (S)Environment (E)Governance (G)Recognition / Assurance

Human Assets | Diversity & Inclusion | Human Rights | Employee Health & Safety / Work-Life Balance | Supply Chain Management | Research and Development | Intellectual Property | Total Quality Assurance | Engagement | Social Contribution Activities

Procurement Guideline Training within the GroupThe TOPPAN Group Sustainable Procurement Guidelines apply
to every department linked to goods and services used in Group
operations. Training on the guidelines is organized forTraining on the Declaration of Partnership
Building and Transaction-related Legislation
Training Result
No. of participants:
production control

employees in every department concerned.

Fiscal
2020
2,592

Fiscal2021

used for their products (representing more than 90% of our total
paper purchases by monetary value) is obtained through legal
channels. In a survey of 16 sites of 10 business partners aroundFiscal2022

777

the world in fiscal 2022, we confirmed that all of the lumber

2,644

procured from them was obtained legally. In yen terms, these 16
partner sites supplied 97.4% of the paper we used in fiscal 2022.

The Declaration of Partnership Building, issued by Toppan
Inc. in September 2022, pledges our ongoing commitment to thebuilding of close relationships and the observance of goodbusiness practices with business partners.

Monitoring Compliance in Procurement Departments
We regularly ask key business partners to fill out questionnaires

We hold training sessions on transaction-related legislation

monitor whether our procurement departments operate properly

procurement departments to remind personnel of theirin accordance with the Basic Procurement Policy. Information

obligation to practice the following commitment set forth in thegleaned from the responses of 10 partners in fiscal 2022 led to

Basic Procurement Policy: “We comply with domestic andimprovements in compliance in our procurement operations.

Training on the Sustainable Procurement Guidelines
within the Group
Training Result

Fiscal2021

Fiscal2022

Cumulative
Total(persons)

Production
control

327

Purchasing

168

302

470

Planning

ー

1,019

1,019

Generalaffairs

ー

155

155

Total no. of participants

495

2,129

2,624

Breakdown

653

Fiscal
2020

Fiscal2021

Survey Results on the Legality of Lumber for Paper
Production (Paper suppliers representing over 90% of ourpaper purchases)

Fiscal2020

Monitoring Resultstransactions based on corporate ethics.”

https://www.holdings.toppan.com/assets/en/pdf/sustainability/The_Toppan_Group_
Declaration_on_the_Global_Environment_AnnexV1.pdf

on their transactions with us. With the questionnaire results, weand on the Declaration of Partnership Building at theoverseas laws and regulations and conduct fair business
Moredetails on the Annex to the TOPPAN Group Declaration on the
Global Environment

Paper suppliers
surveyed*

Fiscal2022

Fiscal2021

Fiscal
2022

13

13

10

Purchase value basis

90.0%

91.8%

97.4%

100%

100%

100%

No. of responding
companies

17

10

10

Percentage of lumber
sources verified as legal

Cumulative no. ofcompanies

151

161

171

*Paper suppliers subject to a higher risk of noncompliance over the mostrecent three-year period

980

Verifying the Legality of Lumber for Paper Production
The Annex to the TOPPAN Group Declaration on the Global
Environment, issued in March 2022, stipulates that we will takea proactive approach to the sustainable use of natural resources
by avoiding or minimizing the impact on biodiversity when
procuring raw materials. As a major procurer of paper, aresource representing 70% of our material input, we promote
the sustainable use of forest resources by surveying the legalityof lumber, the main material of paper.
We monitor paper manufacturers to verify that the lumber

71

Sustainability Report 2023