CSR Report 2005

CSR REPORT 2005
Report on Corporate Social
Responsibility Activities

Towards the Realization of Toppan Vision 21
Toppan redefined its Corporate Social Responsibility (CSR) in fiscal 2003.
The new definition was to realize, with sincerity, passion and ingenuity, Toppan Vision 21,
which encompasses Toppan’s values, Corporate Philosophy and Corporate Creed.
CSR activities in fiscal 2004 have been working towards the realization of Toppan Vision 21,
Toppan has appraised its actual results and issues, and outlines these in this report.
Toppan will continue to uphold its social responsibilities as it seeks
to realize its vision for the 21st century.

Corporate Philosophy
Each of us shallreciprocate our customers’ continued trust,create dedicated products byharnessing our vibrant knowledge and technology,
and contribute to a fulfilling lifestyle asa mainstay of information and culture.
Established June 2, 2000

Ideas Representing the Six Lines of the Corporate Philosophy
OEach employee shares these values and bears the responsibility of upholding them.
ONurture and develop a relationship of trust with customers.
OTake pride in our products and services and recognize their importance as creations for the customer.
OContinue and strengthen our operations through the use of knowledge (marketing and planning) and technology
concerning printing, to attain faithful reproduction with detail and creativity.
OCreate fulfilling lifestyles within society by giving shape to the aspirations to communicate both on individual andcorporate levels.
ORecognize the universal role of printing as a medium for information and culture.

CSR Report 2005
Contents

Executive Message

2

Business Activities and Social Responsibility
Toppan’s Business and Social Responsibilities
Business Fields and Society

4Toppan’s Social Responsibilities

6

Overview of Activities and Organization
Overview of CSR Activities and New Initiatives

8

Strengthening Corporate Governance

10

Highlights 2004–2005

To the ReadersThis CSR Report 2005 is a communication tool to disclose information to
stakeholders and solicit their comments. The report was prepared with thefollowing points in mind.
OCompleteness and Materiality
The contents of this report were strictly chosen with consideration for
Toppan’s business situation on the basis, the following sets of guidelines,
and feedback returned from surveys on socially responsible investment,with a particular focus on important issues:•Environmental Reporting Guidelines (fiscal 2003 version) by the Ministryof the Environment•Environmental Performance Indicators for Businesses (fiscal 2002 version)by the Ministry of the Environment•Environmental Accounting Guidelines (2005 version) by the Ministry of
the Environment•Environmental Reporting Guidelines 2001—With Focus on Stakeholders
by the Ministry of Economy, Trade and Industry in 2001
•Sustainability Reporting Guidelines 2002 from the GRI (Global Reporting
Initiative)
OReadability
While Toppan assumes that the main readership will be those with an interest in CSR, in order to promote understanding of its activities among a
broad spectrum of readers care has been taken in the organization of thematerial, layout, color schemes, typeface, and font sizes. In addition, toenhance referencing, pages carrying related information are indicated by
the symbol sP.XX.
OReliability
AZSA Sustainability Co., Ltd. (formerly the Environmental Solution Consulting of Asahi & Co.) has provided an annual independent review of Toppan
reports on the environment and social responsibility from fiscal 2000
onward (starting with the 2001 report). For the CSR Report 2004 and forthis year’s report Toppan also received the opinions and advice of third
party authorities in the CSR field. For the CSR Report 2005 Toppan hasreceived third-party opinion from Mr. Yoshiki Midorikawa, co-chair of The
Valdez Society and director of Green Consumer Research Group.
In addition to appearing in print once yearly, this report is available on the
Toppan website, along with environmental performance data on each site,
the latest information on ISO 14001 certification throughout Toppan Group,and other relevant data. The Toppan website is regularly updated.

Special Report:
CSR in the Information Communication Industry

15

CSR Topics

20

Social ReportCompliance26

Improving Customer Satisfaction

32

Respecting and Leveraging Human Assets

36

Activities for Society and Culture

40

Environmental Report
Toppan’s Environmental Activities
Environmental Management

50

Environmental Conservation Activities

56

Environmentally-friendly Products &Environment-related Business

60

Data and Additional Information
Basic Reporting Data

66

Economic Performance Data

67

Social Performance Data

68

Environmental Management Data72

Eco-protection Data74

Eco-creativity Data

77

Independent Review and Third-party Opinion
Independent Review

78

Third-party Opinion

79

Company Reaction to Independent Review andThird-party Opinion

80

Global Reporting Initiative (GRI) Index

81

URL for CSR Report: http://www.toppan.co.jp/english/corporate/csr/index.html

Scope of this Report
In principle, this document reports on the environmental and social activitiesof Toppan Printing Co., Ltd. and group entities that are consolidated foraccounting purposes. This report mainly covers activities during fiscal 2004
(April 2004–March 2005) but also includes information regarding prior andsubsequent periods. Information regarding personnel refers in principle toToppan Printing Co., Ltd., the parent company. The scope of environmental
performance information and environmental accounting has been decided inaccordance with respect to the importance of environmental conservation
among subsidiaries.

44

Overview of Fiscal 2004 Results and Environmental Targets 46

Publication Dates:
Published in December 2005. Toppan plans to publish the next report in
December 2006.

Inquiries on Content and Contact Information:
Compliance Department, Legal Affairs Division, Toppan Printing Co., Ltd.
(Tokyo, Japan)
E-mail: compliance@toppan.co.jp

Contributing to Fulfilling Lifestyles
The Toppan Group aims to inspire the enduring trust of society andits stakeholders and to continue to be an essential element of the fabric of society.

Toppan’s Social Mission
The Toppan Group was founded in 1900 by agroup of printing engineers from the printing
bureau of the former Finance Ministry who
desired to bring the benefits of printing technology to society at large. Since its foundation, andworking in partnership with its customers, shareholders, business partners, local communities,
and stakeholders in every field, its printing-based
businesses have contributed to the developmentof Japan’s information culture.
Since Gutenberg’s invention of the printingpress, printing has made a vital contribution to
the development of culture and industry as a
medium to disseminate information, and has
played a major role in the enrichment of culture.
The subsequent 500 years has witnessed a dramatic expansion of the range of printing technology applications. Printing has penetrated deeply
into our lifestyles, becoming an essential component of our existence. At the same time, as
Toppan’s businesses have also grown, we recognize that the expectations of society and of our
stakeholders have also increased, leading to acommensurate increase in the social responsibilities that we must fulfill. The social mission of the
Toppan Group of today is to convey information, foster culture, and contribute to fulfilling
lifestyles. In order to realize fulfilling lifestyles it
is essential that first we inspire the enduring trustof society and continue to be recognized as an
essential element of society. I believe that a company’s approach to its corporate social responsibilities (CSR) is the very essence of corporate
activities and for Toppan this means the realization of the values that we regard as importantand that are enshrined in our corporate philosophy. To achieve this, we must define to society
what our responsibilities are and how we will ful-2

CSR REPORT 2005

fill them by continuing to set high targets andachieving them; disclosure of this process is indispensable. I am convinced that if all people whowork at Toppan embrace and understand thesetargets in their own ways and pursue them intheir daily work we can pursue a path towards
the harmonious coexistence of Toppan with society and the environment.

The Major Themes of Toppan’s CSR
Last year was a definitive year for CSR at Toppan.
We completed a thorough review of the diverse
activities that we have so far pursued, and established our Corporate Philosophy as the top-level
concept of our corporate vision for the 21st century, our Corporate Creed, that defines our standards for corporate activities; and Conduct
Guidelines that express rules of behavior basedon our corporate thinking and spirit of compliance. Based on these we have formulated six priority themes, which are outlined below.
OCorporate Governance: We will perform ourmanagement activities rapidly and efficiently
with a robust commitment to forming clear
managerial strategies, strengthening our supervisory and auditing capabilities in corporate
management, and improving the transparencyof our managerial activities.
OCompliance: We will conduct our corporate
activities in strict observance of corporate ethics and all applicable laws and regulations. All
employees will follow our corporate Conduct
Guidelines with an unwavering sense of ethics
and morality.
OImproving Customer Satisfaction: We will
strive to see things from the customer’s perspective. Through our work with knowledge
and technology, we will devote ourselves to the123creation of products that bind us to our customers in a relationship of trust based on
responsibility, passion, and skill.
ORespecting and Leveraging Human Assets:
Through our strict commitment to humanasset development and respect for individuals,
we will foster employees that continue toenhance their abilities and meet their fullpotential. The people within the Toppan Groupwill share the enjoyment of their work within a
corporate atmosphere that is gratifying andrewarding to inhabit.
OActivities for Society and Culture: As a leader
in the information communication industry,
we will develop activities to promote social andcultural progress. We will also work to create arich cultural environment in partnership withlocal communities.
OCommitment to the Environment: Under the
initiatives set forth in Toppan’s Declaration on
the Global Environment (1992), we will continue to alleviate the environmental burden of
our operating activities by proposing, developing, and providing environmentally-friendly
products and services that coexist in harmony
with our irreplaceable global environment.

Last Year’s Initiatives
Based on the framework provided by the major
themes listed above we listed action points anddeveloped our activities. The degree to which weachieved our targets based on these action points
varied but, as far as CSR activities are concerned,
merely achieving targets does not signal completion of the task. We are fully aware that the constant review of measures taken and our approach
to issues, the setting of new and higher targets
and the maintenance of sustained, steady activity
are of far greater importance.

Furthermore, over the past year we have developed initiatives to diffuse consciousness of CSR
and as a result have taken the first step towards
an approach in which each employee addresses
their work based on of what CSR means to them.

On the Publication of This Report
We have approached this year’s report by examining what we have achieved and what we have not
yet achieved with reference to last year’s CSR
Report 2004.
Through reading this report, we hope that agreat many customers and others will come tounderstand and appreciate the activities of the
Toppan Group. Furthermore, we intend to
steadily develop our approach through engaging
in a dialogue with our customers and a wide
range of other stakeholders so please let us hear
your opinions. Looking ahead, we intend to earnestly pursue our activities based on the priorities
outlined above and to report on these annually ina CSR Report.
The Toppan Group aims to contribute to therealization of a society that can provide rich andfulfilling lifestyles and to continue to be a trustworthy corporate citizen. We hope to benefit
from your continued support and guidance in the
future.
September 2005

Naoki Adachi
President & CEO
Toppan Printing Co., Ltd.

Executive Message

3

Business Fields and Society
Since its founding in 1900, Toppan has fostered the advancement of society with a range oftechnologies centered around printing techniques. As a leader in information communication, Toppan
aims to further enhance its vibrant knowledge and technology as it strives to contribute to the futureadvancement of society.

The Printing Business and Society

The Erhört Letterpress,
which gives Toppan its
nameMagazines launched andbrought back following
the warBanknotes printed just after
the end of the war

Toppan was founded in 1900 at a time when Europeans were flocking to the International Paris Exhibition, while Japan was steadily building up its
modern industries in the aftermath of the Meiji
Restoration. At this time, printing was mainly used
for three purposes: to print banknotes, bonds andsecurities, important ingredients in the establishment of modern capitalism; to publish newspapers, the medium for public discussion on the
progress of civilization; and to publish translations,novels and magazines that enlightened the populace and encouraged the establishment of themodern state.
During such a period, Toppan was founded by agroup of printing engineers from the former
Finance Ministry who desired to build an industry
around the most advanced steel-based printing
machine of the time, the Erhört Letterpress. Just
over a century later, Toppan, which started byprinting such things as cigarette packaging andeducational materials, through constant researchand development and by improving its marketing
power and technical development capabilities has
continued to produce new services and products
and thus respond to the needs of its customers.
Starting with plastics and metals, concurrent withincreasing the types of materials that can be
printed on, Toppan has continued to advance ourinformation culture by printing books, magazines,
pamphlets, calendars, food packages, wallpaper,and countless other items essential to daily life.

The Information Communication
Industry

The Toppan Vision 21
pamphlet4

CSR REPORT 2005

The range of application of printing technology
has expanded to such things as electronic parts andholograms. Furthermore, projects that have hitherto been incidental to Toppan’s business, such as
special processing, filling services and various otherservices have developed into main businesses. For
example, through the production of photomasks
and color filters Toppan is contributing to the development of the electronics industry and is playing arole in the realization of fulfilling lifestyles.

In the second half of the 1990s, the information
technology revolution gained momentum andaccelerated the dismantling of borders between
markets. With the increased diversification of information media and migration from analogue todigital technologies in the printing industry, theinformation processing technologies used in printing became highly sophisticated. The result of thiswas a flourish of new activity in the printing industry in the much broader context of information
communication and subsequently Toppan’s business fields extended into securities, cards, commercial printing, publications printing, packaging,industrial materials (interior and exterior materials),and electronics.

Continuing to Respond to Society’s
Needs
In recent years, with moves towards high-speed
information, globalization and changes in industrial structure, along with environmental issues,and the diversification of lifestyles and people’svalues, society’s requirements have dramaticallychanged. Amidst this era of change, to continue
growing and fulfilling its social responsibilities as aleader in the information communication industry
in the 21st century, Toppan introduced Toppan
Vision 21, a declaration of the company’s vision, at
its centenary in 2000.
As important business fields for the 21st century, Toppan reorganized its existing business into
three fields: ‘Information & Networks’, ‘Living Environments’, and ‘Electronics’. As well as further
developing these fields by adding software andservice elements to them, Toppan established two
new domains, ‘Personal Services’, for consumers
and ‘Next-generation Products’, high functionindustrial materials for the next generation. In
total, Toppan now has five business fields.
Currently, while establishing these five businessfields, we are shifting to become a global corporation that transcends country borders, languages
and distance, while seeking further developmentof the information communication business.

Business Activities and Social Responsibility
Toppan’s Business and Social Responsibilities

Toppan’s Business Fields
IInformation &Networks:
Supporting the businessesof our customers with services to process, manage
and administer content
such as images, text, andacoustics; and enabling theefficient creation of new
Securities and Cards
value through the use ofthis content.

Commercial printing

Publications printing

E-businessInformation&
Networks

IPersonal Services:
Providing valuable information, products and services toindividual users by leveraging
our information technologies,
digital and security technologies, and marketing skills.

Personal
Services

LivingEnvironment

INext-generation
Products:
Developing high-performance industrial materials formarkets with large growthpotential, based on technologies such as coding andphoto-lithography.

Nextgeneration
Products

Vibrant
Knowledge
andTechnology

Electronics

Handy Bitway

Hydrogen sensor

ILiving Environment:
Providing products and services that contribute to
comfortable lifestyles while meeting the needs of bothindividuals and society from environmental and otherstandpoints.

IElectronics:
Providing high-performance parts and electronics
products and services in the fields of semi-conductors
and displays.

PackagingElectronics

Industrial materials

Net Sales■ Consolidated ■ Non-consolidated (billion yen)

1,500

1,413.5
1,296.1

1,251.6

Net Sales by Segment (consolidated)

Number of Employees

Electronics
290.9

35,000(billion yen)

1,297.3

960.2

911.7

914.6

31,61033,292

32,17832,72425,000952.8

20,00015,0006000

12,74812,053

11,512

2001

2002

2003

10,00

3000
0

■ Consolidated ■ Non-consolidated (employees)

30,0001,200
9000

Optronics

2001

2002

2003

2004
(Fiscal year)

LivingEnvironment
353.6

Information &Networks
769.0

10,548

5,000
0

2004
(Fiscal year)*Please see page 67 for further details on trends in our main management indicators (consolidated).
*Net sales by segment (consolidated) are arranged into three segments by business scale.

Business Fields and Society

5Toppan’s Social Responsibilities
Along with the broadening of business fields, social responsibility has become even more far-reaching. Aiming forthe realization of Toppan Vision 21, which sets out the Group’s vision for the 21st century, Toppan is fully involvedin CSR activities based around six major themes.

Toppan’s Ideas and Social Responsibility
The Toppan Vision 21 declaration is based on
Toppan’s new Corporate Structure and Business
Fields. The Corporate Structure, in turn, is madeup of three elements: Toppan’s Corporate Philosophy, Corporate Creed, and Conduct Guidelines.
These elements specify the complete system of values and standards of the Toppan Group.
The Corporate Philosophy is the concept that
underpins Toppan’s corporate activities and defines
its most important values and thinking. Toppan’s
ideas are embedded in every sentence.
The Corporate Creed expresses standards that
Toppan applies to its activities.
The Conduct Guidelines build on the Corporate
Philosophy, elaborate the Corporate Creed, andexpress the behavioral norms on the basis of compliance and corporate ethics. Under no circumstances will any member of the Toppan Group
engage in an operational activity that infringes therules of society or poses any risk of environmental

or social harm. Further, the Group understands
that any faltering in the development of its operational activities may make it difficult to guarantee
a profitable return and benefit for society. The
Conduct Guidelines are to be closely observed byevery employee if Toppan is to fulfill its social obligations as a corporate citizen.
These Conduct Guidelines are considered to beopen to review as necessary to respond to variations in the environment surrounding the group. In
July 2003, several new articles were introduced
and a general revision was carried out to clarify thelinks with the Corporate Philosophy and Corporate
Creed.

Corporate Philosophy

Corporate Creed
To build our customers’ trust though
sincerity, enthusiasm, and creativity
in all our corporate endeavors.

Each of us shallreciprocate our customers’ continued trust,create dedicated products byharnessing our vibrant knowledge and technology,
and contribute to a fulfilling lifestyle asa mainstay of information and culture.

To strive for total innovation from a global
perspective by conducting marketing andtechnological development rich in originality.
To conduct fair and open business operations
while acknowledging our social
responsibilities and aspiring for harmony
with our global environment.
To create a positive working environment by
maximizing our individual talents andstrengths as a team.
To enhance our corporate standing andpromote the continual development of
the Toppan Group throughthe exploration of new possibilities.

Established June 2000

6

CSR REPORT 2005

Established June 2000

Business Activities and Social Responsibility
Toppan’s Business and Social Responsibilities

Various exhibitions

Discussions with customers

Making contributions tothe community at the Printing
MuseumDiscussions between the
President and employees

Publication of IR tools

Giving Shape to Stakeholder Ideas

Six Major Themes for CSR Activities

Continuing Toppan’s businesses is only possible
thanks to its strong ties to various stakeholders.
The company recognizes the great importance of
maintaining good communications with stakeholders and building closer relationships of trust
to enable continuous development. In a structured
approach to these ends, Toppan has defined fivecategories of stakeholders upon whom its businessactivities deeply depend: customers, business partners, communities, employees and shareholders.
The Toppan of the 21st century serves a customer
base of more than just the companies with which
it transacts business and we regard all end-users as
our customers.
By serving people, uncovering the possibilities
within every customer and employee’s ideas andrealizing them one by one, the company aims toopen up new worlds of possibility, surprising anddelighting society.

From fiscal 2003, in light of relationships withstakeholders, and the concept of a balanced development of the triple ‘bottom lines’ of economy,society, and the environment, Toppan has been
examining issues in which it should be involved, in
keeping with Toppan Vision 21. In fiscal 2004, inorder to proceed with more effective and involved
CSR activities, Toppan has set out six major themes
for social responsibility and the issues that thecompany should be seriously involved in.
Through CSR activities, in order to introduce
more practical activities while constantly reviewing
its operations, Toppan will hereafter seek to maintain the sustainability of its business operations
and pursue its goal of creating value while aiming
to earn the trust of society as a solid corporate
citizen.

Six Major Themes
Conduct Guidelines
Chapter 1
Basic Principles
1. Respecting basic human rights
2. Maintaining public order and standards ofdecency
3. Complying with laws and ethics
4. Conducting fair business operations
5. Appropriate disclosure of information
6. Environmental and safety considerations
Chapter 2
Outline of Conduct Guidelines
Section 1 Building customer trust
Section 2 Reforming operations
Section 3 Fulfilling corporate social responsibilities
Section 4 Creating a positive work environment
Section 5 Developing the Toppan Group

Corporate
Governance
AP.10–

Compliance
AP.26–

Improving
Customer
Satisfaction
AP.32–

Respecting andLeveraging
Human Assets
AP.36–

ToppanVision 21

Activities forSociety andCultureAP.40–

Commitment to
the Environment
AP.44–

Established June 2000, revised July 2003.
For more detailed information on the Conduct Guidelines please see page 68

Toppan’s Social Responsibilities

7

Overview of CSR Activities and New Initiatives
Six major themes were established to promote CSR activities.
In fiscal 2004 specific measures were identified and pursued for each theme.
Toppan has compiled details these activities and achievements and established new targets and issues
to be addressed for fiscal 2005 and beyond.

Further Developing CSR Activities
Corporate governance forms the foundation of Toppan’s CSR activity, andduring fiscal 2004 the Company strengthened its internal auditing and actively

developed educational activities for the
Conduct Guidelines, which embody thebasic thinking on compliance at Toppan.
In addition a group-wide approach to
information risk management was taken,
including personal information manage-

ment, and Toppan has achieved resultsthat will contribute to future activities.
With respect to activities aimed at
improving customer satisfaction, throughthe promotion of a self-developed
approach to product quality assurance.

Results for Fiscal 2004 and Future Issues and Targets
Major Theme
Corporate
GovernanceCompliance

Improving
Customer
Satisfaction

Fiscal 2004 Measures

Preparing a risk management
system•Clarified which crisis management risks require urgent response and established urgent initial
response mechanism

Increasing the transparency ofmanagement activities•Disclosed annual compensation of all directors and all corporate auditors (including directors
bonuses paid from retained profits and retirement allowances decided based on AGM approval)•Added Japanese language Annual Report to website (November)

Education regarding the
Conduct Guidelines and strict
enforcement•Introduced Conduct Guideline Promotion Leader system and held training seminars for leaders•Created Conduct Guideline Casebook (compilation of case studies)•Implemented Conduct Guideline training on a stratified basis

Information risk management•Implemented new system with General Manager of Corporate Planning Department (Director)
appointed as Supervisor, introduced study group for promotion of the protection of personal
information•Systemized rules for handling personal information, produced internal personal information Q&A•Received Privacy Mark certification (one division and one subsidiary; eight divisions and two relatedcompanies have applied)

Approach to the supply chain•Established and disclosed procurement policy•Implemented Supplier Check-up at each factory, implemented ISO 9000 series based supplierappraisal

Strengthening product quality
assurance•Promoted self-developed improvement and maintenance approach based on synthesis of TPM andISO 9000 series, clarified calculation standards to discover problems•Implemented contamination prevention measures and reduced claims by introducing productguarantee audit and verification machines used in food processing factories•Utilized electronic paper technology in station publicity notice boards•Test production of UD Selection Desert Cup with the National Institute of Advanced Industrial
Science and Technology•Participated in the International Association for Universal Design

Research and development
aimed at value creation
Products and services
developed with society in mind
Respecting
and Leveraging
Human Assets

Activities forSociety andCultureDevelopment and training of
human assets•Introduced new appraisal system for management staff and implemented training for all
administrative staff, introduced a multiple track grading system for general office employees•Clarified employment standards based on conduct characteristics and implemented casual dressinterviews, held employment seminar in China•Actively recruited female staff in management and supervisory roles•Formulated and submitted action plan based on the Law for Measures to Support the Developmentof the Next Generation

Health and safety, healthmanagement
Welfare system•Established a Safety, Health and Fire Prevention Discussion Meeting•Appointed a specialist in charge of mental health•Maintained a 100% ratio of staff receiving health check ups

Advancement of printing
culture and its traditions•Held an exhibition at the Printing Museum ‘Seeing and Seen: variations in Depiction between Japanand Foreign Lands’; held a Summer vacation experience workshop
The Printing Museum signed a mutual cooperation agreement with the Cheongju Early Printing
Museum of the Republic of Korea (September 2004)•Received the Sato Toshinosuke Prize at the 4th Annual Awards of the Japan Typography Association•The Toppan Hall’s 34th concert included a Brahms recital: held Espoir Special event to introduce
young foreign artists to Japan as early as possible•Continued participation in tree-planting projects in Victoria and Tasmania, Australia•Registered as a Supporting member of the Japan Overseas Plantation Center for Pulpwood•Contributed relief money for the Niigata Chuetsu Earthquake

Sharing of impressions
Tree planting activities
Greater symbiosis with local
areas
Commitment to
the Environment

8Main Activities and Achievements in Fiscal 2004

Strengthening audit and control •Audited compliance with applicable laws and company regulations in all operating and HQ divisions
functions

CSR REPORT 2005

•Targets and results for Toppan’s environmental commitment are shown on page 46

Business Activities and Social Responsibility
Overview of Activities and Organization

Toppan identified key issues. The Company also sustained its commitment touniversal design. In pursuit of the fostering and development of human resources
through new personnel methods theappraisal system for administrative staff

Fiscal 2005 Measures
Strengthening audit andcontrol functions
Improve risk management
systemIncrease the transparencyof management activities

and the grading system for generalemployees were reviewed. There wassteady success in Toppan’s commitment
to the environment.
In fiscal 2005 the Company will sustain
its commitment to strict corporate gover-nance and compliance and its approachto the social aspects of supply chain
management it will also actively develop
activities to address the issues and meet
the targets identified in fiscal 2004.

Main Issues and Targets for Fiscal 2005

Related Pages•Implementation of follow-up to the audit of compliance with applicable laws and company rules•Implement comprehensive audit of main overseas subsidiaries and domestic subsidiaries•Priority audit of manufacturing divisions of all operating divisions•Speed up information flow of urgent initial response mechanism•Formulate basic plan for disaster countermeasures, consider implementation of system to confirm safety of
employees in event of disaster•Widely disclose annual compensation of all directors and all corporate auditors and include in CSR report

sP10–

Awareness and thorough•Continue Conduct Guideline Promotion Leader system education including correspondence education for
implementation of conduct new leaders
guidelines•Thoroughly implement self-development training for general employees via the Company intranet, etc.
•Implement training for sales managers related to the revision of the anti-monopoly law
Information risk
•Create management procedure manual based on risk analysis
management•Receive Privacy Mark- eight divisions and two related companies
sP26–

Strengthening supply chain •Formulate policy on a group-wide basis including all group companies and overseas subsidiaries
management•Feedback to suppliers the results of Supplier Check-ups to strengthen relationships•Formulate group-wide procurement policy and selection standards and aim for consistency with ISO 9000
supplier appraisals
Strengthening productquality assurance

Contributing to society
through development oftechnology
Merit based personnel
policies
Foster, develop and utilize
human resources•Increase the number of and train experienced in-house consultants conversant with Toppan’s technical skills
and promote guidance activities•Continue to implement product quality assurance audits of food product packaging and food packing
factories to prevent adulteration•Develop coatings for large scale color filters, reduce cost and improve productivity•Develop order-made medical equipment chips and equipment•Promote development and commercialization of products based on Toppan’s six principles of Universal Design•Actively participate in the International Association for Universal Design and Universal Design Consortium

sP32–•Revise salary and promotion system for management staff

Leveraging humanresources•Through continued deliberations by the Human Resources Development Committee improve links between
company wide training and in business division and its departmental training•Provide opportunities for each employee to develop their own career vision•Consider female teams in order to develop business that leverages the female perspective and sensitivities•Respond to extension of the working age to 65

Realize a safe and secure
working environment•Initiate a project encompassing work-life balance and diversity, and consider implementation measures•Improve framework for addressing mental health issues and implement training for management

sP36–•Hold exhibitions to mark the fifth anniversary of the Printing Museum ‘Golden Age of Printing: From theContributing to the
traditions and development Collection of the Plantin-Moretus Museum’, ‘Beginning of the Printing Revolution: from Gutenberg to
Plantin’; continue to hold Summer vacation experience workshops
of printing culture andsharing impressions

Tree planting activities•Hold 35th Concert at Toppan Hall ‘Today’s World-Cutting edge Violin’ including a series of 14 concerts
focusing on the fostering of talented youth.
•Continued participation in and support for tree planting

Activities for contributing
to regional society•Each regional location to hold events to interact with local communities, active participation in and support
for local events•Medium-term targets for our environmental commitment are shown on page 48

sP40–

sP44–

*In the 2004 report Tree Planting Activities was classified in ‘Activities for Society and Culture’. In this report it has been reclassified in ‘Commitment to
the Environment’ to clarify the fact that it is seen as a social responsibility of a printing company, this is explained on page 63, Part 1.

Overview of CSR Activities and New Initiatives

9

Strengthening Corporate GovernanceCorporate governance represents the foundation on which Toppan can fulfill its social responsibilities promptly andthoroughly. The Company is strengthening corporate governance by improving its CSR promotion framework andstriving to strengthen the auditing function of its business operations, maintaining a risk management system andimproving the transparency of its corporate activities.

Toppan’s Corporate GovernanceToppan considers the most important
issues for its management to be continuous development, increasing its corporate
value and winning the approval of shareholders, customers and ultimately society
as a whole. To succeed in its strategy
Toppan is endeavoring to establish amanagement administration structure,strengthen corporate management auditing functions, thoroughly implement
compliance and improve the transparency of its business operations. In accordance with Japanese Commercial Law,
the company uses a system of corporate
auditors and is strengthening an appropriate and effective corporate governancesystem by establishing a Management
Audit Office and Compliance Department as well as an Ecology Center.
Further, Toppan is implementing governance that aims for the maximizationof corporate value and putting into place
integrated management with relatedcompanies based on the Related Company
Administration Regulations established
as a foundation to promote fair-mindedgroup management. By leveraging eachcompany’s technology and expertise to
the maximum, as well as promoting theeffective use of production assets,through the Group’s collective strength
Toppan is aiming to provide products andservices and grow profitability.
Directors, the Board of Directors andVarious Meetings
Toppan’s Board of Directors consists of
31 directors, including one outside director. Meetings of the Board of Directors
are held regularly each month, andwhenever pressing business requires
action or deliberation.
With regard to important businessmatters, the company applies a businessdecision-making process that pursues
efficiency via the work of a Management
Committee made up of managing directors and more senior directors fromheadquarters. In addition, Toppan has
established an organization made up of
executives from headquarters and division
chiefs to directly implement activities andreview them from various perspectives.
Corporate Statutory Auditors,
The Board of Corporate Statutory
Auditors and the Auditing Firm
Toppan has adopted a system of corporate statutory auditors. Two of the four
corporate statutory auditors appointed

at Toppan are external. In addition to theregularly scheduled meetings of theBoard of Corporate Statutory Auditors,
corporate auditors attend important
meetings of the Board of Directors, Management Committee and meetings on
the environment and other important
issues. Corporate auditors also carry out
audits of related companies and operating sites and perform preventive auditsof the legality of the business activities of
directors and each department to ensurethat smooth and appropriate management is being carried out adhering toregulations and company policy.
In order that the corporate auditors
are able to relevantly fulfill their expected
responsibilities and roles, in fiscal 2004
the ‘Board of Corporate Auditors Regulations’ and ‘Board of Corporate Auditors
Standards’ were reviewed to enhancetheir efficacy.
Further, Toppan’s corporate auditors
receive advice from KPMG AZSA & Co.,an independent auditing firm that cooperates with the company’s corporate
auditors to verify the appropriateness ofthe company’s accounts and enhance
the reliability and transparency of financial information.

Toppan’s Corporate Governance System
Meeting of shareholders
Appointment or
dismissal

Appointment or
dismissal

Auditing
Audit firm

Auditing
Administrative
Auditing
Departments
Supervising
Directors

Management
Committee

Considers issues prior to board of director
meetings

Management
Auditing Office

Promotes investigates and audits the legality
and appropriateness of operational activities

ComplianceDepartment

Verifies and audits the strict observance oflaws and regulations and the establishmentof ethical business practices

Ecology Center

Coordination and sustained improvementof Toppan’s environmental activities

Auditing

Working together

10

CSR REPORT 2005

Auditing

Working
togetherWorking
togetherWorking
together

Corporate Statutory Auditors,
Board of Corporate Statutory Auditors

Board ofDirectors

Appointment or
dismissal

Business Activities and Social Responsibility
Overview of Activities and Organization

System for Promoting CSR
To promote CSR on a wider scale, thePresident & CEO of Toppan is leading themove to develop activities through collaboration with the Legal Affairs Division
Compliance Department, which spearheads the initiative, and headquarters,
which is heavily involved in CSR activities.
The managers of each administration
department, through daily operations,collaborate with the related departmentsof Group companies to promote CSR
activities as well as attending regular CSR
promotion meetings. At these meetings,
representatives of each department reporton progress made and, as internal stakeholders in the company, are involved infrank exchanges of opinions on areas outside their spheres of influence, which areused in the creation of plans and the daily
activities of each department.
Further, from fiscal 2005, an Executive
Vice-President of Toppan has been
appointed as the supervisor of CSR andwill fully promote Toppan’s CSR activities.

Toppan’s CSR Promotion System

Strengthened Auditing andCorporate Oversight Functions
As well as broadening corporate audit
activities, an auditing system regarding
overall management activities has been
established. In order to reduce operating
risks, in October 2004 the Internal Auditing Office was renamed the Management Audit Office and systems were
strengthened. In order to improve management integrity, this division wasestablished independently of operating
departments and carries out auditing ofeach department and production facility,
including risk control and compliance.
The audit results are reported to the
President & CEO, managers and corporate auditors as required.
In fiscal 2004 auditing was divided into
three categories: management audits oncompanies and each business division,
operating audits on operations, and ‘follow-up audits’ to review corrective actions
in response to results of audits held in
the previous fiscal year. These audits are
not limited to overall profitability or risk
management but also ensure the continued observance of laws and corporate
rules in Toppan’s business activities andheadquarters since the previous year.

Thorough audits are carried out basedon overall compliance articles such as
information management and the Subcontract Act, Product Liability Law, andregulations governing labor management, safety and hygiene. These target
areas are being broadened in both overseas and domestic subsidiaries.
Toppan will continue to place greatemphasis on the auditing of overseas
and domestic subsidiaries and production departments.

Fiscal 2004 Internal Auditing Results
Audit Items

President & CEO

Fiscal 2004 Results

Complete audit of companies or businessdivisions•Profitability of overall management•Internal control•Risk management•Compliance*•Operating audit of all operations

One business division,
four overseas subsidiaries,
one domestic subsidiary

Secretary Department

Profitability

Two businesses

Information andPublicity Division

Compliance

Four business divisions,
three sub-divisions,
one division of headofficeInformation systems

One division of headoffice,one subsidiary

Product quality management, production
management, manufacturing administration

Two business divisions

Follow-up of previous year’s audit

Review of corrective actions in
response to results of previous
year’s audit

Executive
Vice-president
CSR Promotion Committee
Administration

Management
Audit

Legal Affairs DivisionCorporate Planning Division

Operating
Audit

Personnel &Labor Relations Division
Finance &Accounting DivisionCorporate Manufacturing,Technology & Research Division
Purchasing Division

Follow-up
Audit*Information management, the Subcontract Act, Product Liability Law, labor management, safety and hygiene,
the environment, export management, etc.

International Division

Strengthening Corporate Governance11

Risk Management System
From 1993, a newly established Company-wide Crisis Management Committee at Toppan began setting up a regimenof crisis management measures. Later, in
2002, the Company launched a Crisis
Management Project to strengthen its
crisis prevention measures. Currently,
weekly meetings are being held andToppan is now reformulating a comprehensive risk management system thatincorporates the functions of both crisis
management and risk management.
In building its comprehensive risk management system, Toppan began by identifying the most threatening risks to thecompany—the risks that require tightand absolute control. As shown in thechart below, Toppan has instituted a systematic method of management that
allots the responsibility of risk responseto specific departments based on thetype of risks involved. Since July 2004,
the Company has established an urgent
response system for risks requiring a
rapid response and has begun to improvethe efficiency and speed of its information transfer. Furthermore, as a crisis
management measure, revision of thenatural disaster countermeasures plan andthe introduction of emergency contact
and employee safety information confirmation systems are being considered.
Information Risk Management
SystemAn information Security Management
Committee and a Personal Information
Management Committee have been
established group-wide. As well as regular meetings held every six months, special meetings are held as necessary.
Decisions are made on such important
articles as the formulation of policies andthe creation of rules, and the thoroughmanagement and sharing of information.
As a part of the Total Quality Control
Guarantee, in October 2004, Information Security and Personal Information
Management were integrated. The manager of the Management Planning Department was placed in charge of the new
structure. Due to this system integration,
duplication of important items relating to
information security and personal information management has been minimized
and the burden on each department
is being reduced. Toppan is striving toestablish a company-wide information
security system.
The Company is also aiming to raise
security levels by increasing auditing efficiency and incorporating it into daily
work routines.
Preventing Leaks of Personal
Information through Subcontracting
As part of commitments to the handlingof personal information, periodic appraisals of safety levels of subcontracting
companies are carried out based on acheck sheet and collaborating companies
that fulfill all criteria are increasingly utilized. Contracts are signed with subcontractors concerning the handling of
personal information and clauses in
the contract referring to confidentiality,
restrictions on further subcontracting,and responsibility in the case of accidents, extraordinary restorations or deletions are laid down and periodicallyrevised. As necessary, guidance is provided to the sub contractor on processes
and regular checks on the level of safety,
including the status of safety administration measures and on-the-spot checks
are carried out.

Risk to be Managed
Risks to be Managed
Accidents involving products/
product liability

Accidents or disasters related
to company operations

Defamation, slander, or othercriminal damages
Natural disasters
Unlawful activities related toexternal contracts
Infringement of intellectual
property
Environmental problems

12

CSR REPORT 2005

Accidents or complaints related to products

Division
Corporate Manufacturing
Technology & ResearchBusiness Innovation
Personnel & Labor Relations
Finance & Accounting
Legal Affairs
Legal Affairs

Accidents related to a main system
Accidents at the workplace, traffic accidents, other accidents involving employees
Debt-related incidents
Legal problems with orders received
Leakage of personal information or internal confidential information
Leakage of personal information or internal confidential information through a computer
E-businessnetwork
Damage to the Company’s computer system for customers due to cyber terrorism, illegal
E-business
access, illegal usage, or leakage of personal information or internal confidential information
Corporate Manufacturing
Accidents or disasters related to fires or explosions
Technology & Research
Corporate Manufacturing
Illegal activity related to the storage of solvents, management of hazardous chemicals, etc.
Technology & Research
Damage to the Company’s internal computer system due to cyber terrorism, illegal access,Business Innovationillegal usage, or leakage of personal information or internal confidential information
Crimes against the Company (threats, bribery, theft)
Personnel & Labor Relations
Material losses or personal accidents sustained by customers or the Company due to
Personnel & Labor Relations
earthquakes, wind or water damage, lightning, etc.
Violations of Subcontract Act, illegal activity with suppliers

Corporate Planning

Infringement of patents, trademarks, copyrights

Legal Affairs

Violations of environmental laws or standards, illegal disposal of industrial waste

Corporate Manufacturing
Technology & ResearchBusiness tivities an d So ial esponsibility
Overview o tivities and Or anization

Improving the Transparency ofManagement
Toppan is working to improve the transparency of its management activities inorder to earn the ongoing trust of society. Much of this effort focuses on theactive disclosure of information. From itsvery beginnings, Toppan has actively created and distributed communication
tools to satisfy the needs of its stakeholders and uphold its priority of communicating with society. With these tools,
Toppan reliably fulfills its duty of explaining its operations with timely and appropriate information.
Strengthening IR Activities
Many of the IR activities undertaken at
Toppan focus on communication andinformation disclosure to shareholders.
In keeping with its Basic IR Policy,

Toppan uses its websites to ensure fairness and transparency in its disclosure of
IR information. Toppan renewed its website devoted to IR activities in April 2004
providing a rich and easily accessible
source of company information.
Toppan has been announcing its financial results on a quarterly basis since fiscal
2003. As well as posting information on
its website, the Company also produces
a quarterly newsletter for shareholders,‘Toppan Story’. Public meetings withinstitutional investors and analysts areheld to explain the company’s interim
and full year results. All documents distributed at the meetings are posted on
the company’s website for the benefit ofthose unable to attend.
Further, from fiscal 2003, the annual
report, which hitherto has only been
published in English, is now being posted
in Japanese on the website. Moreover,the bonuses and retirement packages for
all directors and auditors are now being
presented in financial statements andbusiness accounts. (sP.67)

Toppan’s main IR tools

Toppan Stakeholders and Information Tools
IFor all stakeholders

IFor Customers

Corporate Guide
CSR Report
Various reports on business fields
Financial statements
Quarterly business reports
Website, etc.

Toppan’s customers are not just theenterprises with which Toppan does
business, but all individuals in society.
Toppan strives to merit the trustof its customers by satisfying theirrequirements, staying attuned to thelatest changes in the environment, andadapting to the trends of the times withsincerity, enthusiasm and creativity.
Various reports on business operations
Various brochures on products
Various newsletters, etc.

For
Customers

IFor Shareholders and Investors
A complete and accurate understandingof Toppan’s activities is crucial toshareholders and investors. Toppan
understands this and goes to great
lengths to disclose its corporate information and explain its activities in a timely
and appropriate manner. By developing
its business and increasing its corporate
value, Toppan aims to be appreciated byshareholders and society alike.
Shareholder newsletter Toppan Story
Business reports
Annual Report, etc.

IFor Employees
The efforts of its employees are thesingle largest resource for Toppan’sbusiness. Toppan strives to create a lively,energizing workplace and cultivate theindividual abilities of its employees as atoken of its respect for them andgratitude for their contributions.
Internal newsletter CONVEX
Overseas internal newsletter Interlink
Pamphlets on welfare benefits, etc.

IFor Business Partners

For
Shareholders
andInvestors

For
Employees

For
Business
Partners

For
Communities

Another crucial element in strong
customer trust is a steady relationship oftrust and cooperation with the suppliers
that provide the raw materials, theplants that manufacture products in
tie-ups with Toppan, and the othercompanies with which Toppan does
business. Toppan is building a system tofoster good trading relationships by
conducting business on an equal
footing with its partners in a fair andopen manner.
Procurement guidelines website
Purchasing guidelines, etc.

IFor Communities
The business conducted by Toppan
affects local communities and the global
environment in many ways. Toppan
strives to conserve the environment, win
the trust of communities and benefit
society as a corporate citizen.
Plant guides
Operational site reporting
Annual report Printing Museum, etc.

Strengthening Corporate Governance13

Strengthening Alliances with
Stakeholders
As part of the promotion of CSR activities, in order to reflect external objective
viewpoints, Toppan is fully involved instakeholder dialogues. Taking the themeof ‘What we expect from Toppan’s CSR’in July 2004, Toppan invited customers
and NPOs who are thoroughly involved
in developing CSR activities to a roundtable discussion (please see the 2004
CSR Report). At the ‘CSR Communication Fair’ held in January 2005 (sP.19), a
number of supervisors of the CSR reportcame to present to the attendees on
Toppan’s activities and to take part in an
exchange of ideas through a Q&A session.
Furthermore, regarding the CSR Report,
for the 2004 version, we received theopinion of Dr. Hiroshi Tasaka, a professor
at Tama University and the representativeof the Thinktank Sophia Bank, and forthe 2005 version we have received theopinion of Mr. Yoshiki Midorikawa, cochair of The Valdez Society and directorof Green Consumer Research Group(sP.79). His advice did not concentratesolely on the contents of the report, but

Introducing Stakeholder Engagement Policies
At the 2004 CSR activities review meeting held on July 14, 2005 by the CSR
Promotion Committee, in order to makethe meeting more meaningful, Mr.
Hideto Kawakita, CEO of IIHOE (International Institution for Human, Organization and the Earth) attended as a
facilitator. This represents Toppan’s thinking on stakeholder engagement and is amethod of continuously receiving external opinions from stakeholders. Mr.
Kawakita is both an expert on CSR Communication and has also been involvedin Toppan’s main CSR communications
activities since Toppan launched Environmental Communication Development in
2000.

Hideto Kawakita
CEO of IIHOE (International Institution for Human,
Organization and the Earth). After working asa PR and international recruiting specialist at
Recruit Co., Ltd. he began working as Secretary in
Charge of Policy at the Diet and was the Japanese
representative for international youth exchange
NGOs. He established IIHOE in 1994 and offers
management support to NPOs and companies.
http://www.iihoe.com

14

CSR REPORT 2005

Fiscal 2004 CSR activities that performed
better and worse than expectations, aswell as future issues, were discussed at
the meeting. The receipt of the Privacy
Mark for activities in product safety andthe revision of personnel structure wereindicated as successful items. Issues suchas the commercialization of CSR promotion activities and the establishment ofappropriate targets in CO2 management
were considered as future issues.
Based on the status of society andother companies’ activities, Mr. Kawakita
gave us advice on the importance of thebalance between a top-down and a bottom-up approach and on the necessityof hearing information from colleagues
and partners promptly.

also covered the overall range of Toppan
CSR activities.
Looking ahead Toppan will strive toimprove its CSR activities through listening to the opinions of a range of stakeholders.

123

As a leader in the information communicationindustry, Toppan appreciates the extreme importance of information management for securing
customer trust. Information leaks, theft and loss
are just some of the risks associated with thisindustry. As part of its business, Toppan gathers
and maintains information* on behalf of its customers and should there be any abuses or leakagesof information by its employees or a contracted
company, Toppan would lose credibility as a company.
Based on this awareness Toppan has been
actively addressing this issue for some time. In
anticipation of the introduction of the Act concerning Protection of Personal Information, in April
2005 the Group became fully involved in related
activities and introduced an even stricter personal
information management system.

To manage customer information and internal
confidential information safely and properly theCompany has created its Information Management Policy guidelines and rules. Toppan adheres
to an ongoing cycle of educating the workforce,
auditing operations, and reviewing management
policies and processes on a regular basis. The company is also fully involved with the procurement of
the ISMS (Information Security Management System) and the Privacy Mark.
Toppan also regards offering solutions that makea contribution to the improvement of the securityof information relating to customers’ businessactivities as a social responsibility and is developinga range of activities. Furthermore, regarding theCompany’s overall, broad CSR activities, Toppan isoffering the wide range of its accumulated expertise to the information communication industry.

*Personal information refers
to information that canbe used to identify anindividual, such as: name,address, telephone number,date of birth, sex, family,
job, company name, job
title, password, user name,bank account number, credit
card details, etc.

Special Report:

CSR in the Information Communication Industry
CSR demands a wide range of activities from Toppan as a part of society.
As a part of the Information Communication Industry, from among those activities,
Toppan has taken information risk management and contribution to society throughits business to as the two main themes of its social responsibility.

Highlights
2004–2005

1 Personal Information Protection Policy
The Personal Information Protection
Policy of TOPPAN PRINTING CO., LTD.
Based on the belief that the appropriate handlingand maintenance of personal information is asocial responsibility, in February 1999 the Information Security Committee laid down the following
information security policy. At its start, this policy
states that ‘We hold great respect for the dignityof the individual’ and places great emphasis on therights of the individual as set out by the Act concerning Protection of Personal Information.

The Personal Information Protection Policy of
TOPPAN PRINTING CO., LTD.
1. We hold great respect for the dignity of the individual and shallfully comply with our internal rules, all relevant laws, and theprinciples of social order as we endeavor to protect the personal
information entrusted to our company.
2. We are acutely aware of the risks that threaten the personal
information entrusted to our company and shall take all reasonable measures to protect it from wrongful access, loss destruction, manipulation, leakage and all other forms of damage. In
the case of a problem arising, we shall deal with it quickly andappropriately.
3. We shall only collect personal information for the purposes of
the Company’s business, excluding all information not required
for the Company’s business. The collection, use and disclosureof personal information by our company shall be fair and appropriate at all times.
4. When customers entrust our Company with personal information, our thorough information management will secure theirconfidence that the information is fully protected.
5. We shall create an internal corporate system to protect personal
information, operate this system effectively, and reform it asneeded.
Established February 1, 1999
Revised March 1, 2005
TOPPAN PRINTING CO., LTD.

From April 2005 Toppan’s Personal Information Maintenance
Policy and The Aims for the Use of Personal Information are being
displayed on the website as part of the company’s privacy policy.
http://www.toppan/co.jp/privacy/

President & CEO

Special Report: CSR in the Information Communication Industry

15

Special Report CSR in the Information Communication Industry

Personal information Protection Activities
Establishment and Revision of Personal
Information Management Rules
The Toppan Personal Information Management
Rules, which were created in line with the Personal
Information Protection Policy, are basic regulations
for the procurement of the Privacy Mark pursuant
to the JIS Q 15001 ‘Requirements of a complianceprogram for personal information protection’.
Since 2002, ‘the rules for the handling of personal
information entrusted by customers’ and the specific rules for each business location have beenrevised. Conforming to these measures, Toppan
has handled the information received from customers and that which it has gathered itself with anappropriate level of caution.
Reflecting Toppan’s recognition of the importance of not only preventative measures regarding
information risk management, but also reactive
measures to prevent large-scale damage, in March
2005, the Personal Information Protection Policy
and rules on personal information protection wererevised. In April 2005, the guidelines for handlingpersonal information for web business wererevised to become the rules for handling personal
information for web business. In the future,
Toppan will develop operational procedures for thehandling of personal information and strive to fully
implement them.

Personal Information Management
Systems for the Full Implementation of
the Entire Process
Toppan handles personal information in almost allof its business fields. Under the auspices of Chief
Privacy Officers from across the Company representatives of each department have created management systems as supervisors of information
management and, in April 2005, began addressing company-wide issues focusing on the newly
formed Information Risk Management Promotion
Division. Furthermore, the Personal Information
Management Promotion Panel was created in
October 2004 to prevent accidents in production
departments and is promoting group-wide management operations regarding the actual occurrence and solving of problems.
Further, to ensure that the safety managementof personal information is thoroughly carried out
throughout the process, in March 2004 the creation of the ‘Personal Information Handling Process Manual’ was proposed and from fiscal 2005,
headquarters has been utilizing this in training andauditing.

Personal Information Management System
President & CEO

Receive and Update Privacy Mark Certification for the Whole Company

In March 2000, Toppan’s Securities Printing Divisionbecame the first business in the Japanese printing industry to acquire Privacy Mark Certification, and was followed
by 17 business locations including Group companies thatwere certified in July 2005. In April 2004, the updating of
this Privacy Mark was adopted as part of Toppan’s lateraldevelopment policy as an important first step in personal
information management. In addition management operations systems were established and applications madefor the seven business divisions and one Group company
which had not acquired this certification.

Chief Privacy Officers

Meeting of Representatives regarding
Personal Information Management

Headquarters

Eachdivision

Personal
Information
Management
Promotion
Committee**Legal Affairs Division, Management Planning Division, E-Business
Division, Corporate Manufacturing, Technology & Research
Department.

Procurement and Update of ISMS

In June 2002, Toppan’s TOPICA website hosting service
was conferred the very first ISMS certification to beacquired in the Japanese printing industry. In June 2005,
it received version 2.0. Among Group companies, Toppan
Forms Co., Ltd. obtained the certification for two of its
data centers in February 2003.
*The Privacy MarkThe Privacy Mark is an accreditation system managed by the Japan Information Processing Development Corporation for the handling of personal information. The criteria for the accreditation
conform to the JIS Q 15001 (required items for compliance programs regarding personal information
protection).
*Information Security Management System (ISMS)
The ISMS is a comprehensive system that ensures that an institution is managing information appropriately and protecting confidentiality. In Japan, the Japan Information Processing Development
Corporation administers the ISMS Compatibility Appraisal System certification scheme.

16

CSR REPORT 2005

In March 2004 each production department created the‘Personal Information Handling Process Manual’ and from fiscal
2005, headoffice has been utilizing this in training and auditing.

123

Thoroughgoing Security Management
Procedures
In principle, the personal information stored in
Toppan’s servers uses the ISMS (Information Security Management System) certified in-house TOPICA
hosting service. TOPICA is an information data
center building and operating solution offered by
Toppan. In order to use other data centers, users
must undergo regular security checks and obtainclearance from the related division at our Head
Office.
Strengthened control of access to Toppan’s
premises is in place and secure areas have been
designated. Toppan has also instituted an enhanced
set of security rules that prohibit use of portable
PCs provided by the Company outside the office,and also prohibit access to Toppan’s network fromprivately owned terminals. Anti-computer virus
measures include anti-virus software in all PCs
used by employees and limits on the type ofbrowser that can be used to link to the Internet.
At the same time, we are conducting extensive
security training. In addition to full-time employees,
we require part-timers and temporary staffers whodeal with personal information to sign a confidentiality agreement and other covenants. To safeguard
security in our outsourcing activities, we perform
annual on-site inspection of the facilities used forthese operations. We also assess the adequacy of
their security management systems based on prespecified standards in accordance with the type ofjobs performed. We outsource only to those entities
that have concluded a security contract with us.

Milestones in Information Risk Management
1991
1999

May Toppan establishes its Confidential Information Management Rules.
February Toppan formulates its Personal Information Protection Policy and Personal
Information Management Rules.
2000
March Securities Printing Division acquires the Privacy Mark certification.
2001
April Toppan adopts the Information Management Policy and Information Security
Management Rules.
May Toppan’s Commercial Printing Division receives the Privacy Mark certification.
June Toppan Forms obtains the Privacy Mark certification.
December Toppan introduces bylaws concerning the Information Security Management
Rules.
2002
June Toppan’s E-Business Division acquires ISMS certification for its TOPICA
service.
November Toppan draws up Guidelines for Personal Information Processing in Web
Business.
Toppan initiates the auditing of personal information management in its
Web business.
2003
January Toppan implements bylaws concerning Employee Personal Information
Management and Application.
February Toppan establishes bylaws concerning the Processing of Personal Information
Entrusted by Clients.
Toppan Forms receives ISMS certification.
December Toppan starts the audit of information management security.
2004 February Toppan NSW acquires the Privacy Mark certification.
April Toppan adopts the Technology Information Security Guidelines.
Toppan confirms its policy calling for the acquisition of Privacy Markcertification across all group companies.
July Toppan carries out e-learning education programs in information security
management.
November Toppan Logistics obtains Privacy Mark certification.
December Toppan’s Commercial Printing Division simultaneously audits personal
information management and information security management in its Web
business.
Toppan’s West Japan Business Division receives Privacy Mark certification.
Toppan’s Head Office, E-Business Division, Electronics Division, Information& Publications Division, Packaging Division, Hokkaido Division and Tohoku
Division file applications for Privacy Mark certification.

Highlights 2004-2005

2005

March Toppan revises its Information Management Policy, Information Security
Management Rules, Personal Information Protection Policy and Personal
Information Management Rules.
Tosho Printing applies for Privacy Mark certification.
April Toppan formulates bylaws concerning Personal Information Processing in
Web Business.
Toppan places its compendium of Rules, Guidebook, and Guidelines on
Legislation and collected Q&A on the Intranet.
(The Act Concerning the Protection of Personal Information is enacted in full.)June Toppan’s E-Business Division receives ISMS Ver. 2.0 certification for its
TOPICA service.
Toppan Multi-Soft receives Privacy Mark certification.
July Toppan’s Chubu Division acquires Privacy Mark certification.

sPlease see page 28 for the details of information risk management

At the Forefront of Personal Information Protection

Improved security measures include this state-of-the-art security
gate system that was installed in July 2005.

Newsletters, manuals, Q&A booklets, e-learning service, slogan
posters and other educational tools are widely used to heighten
security consciousness.

In September 2004, The Act Concerning the Protection of Personal Information
Study Council*, comprising ten member organizations, was established under the
auspices of the Japan Federation of Printing Industries and the Management andLabor Committee. On September 30, this Study Council held a special presentation on “The Act Concerning the Protection of Personal Information and the Printing Industry.” The manager of Toppan’s Compliance Department, who chairs the
Study Council, gave a lecture on “The Act Concerning the Protection of Personal
Information and the Response of Printing
Companies” on behalf of the printing
industry. He stressed the importance ofsharing risk awareness with the client
and building a system to actively promote personal information protection.
*The Study Council was set up with the aim of
conducting reviews of specific measures to betaken by the printing industry and establishingguidelines. The Council also provides information and consultation on personal information
protection.

Special Report: CSR in the Information Communication Industry

17

Special Report CSR in the Information Communication Industry

2 Contributing to Society through Business
Security Solutions
In anticipation of the full enactment of the Act
Concerning the Protection of Personal Informationin April 2005, Toppan actively pursued wide-ranging opportunities in security-related business. This
resulted in a premises access control system using
IC-based employee ID cards, an ID card system thathas been adopted by U.S. governmental agencies,and consultations on the acquisition of the Privacy
Mark certification.
In response to the widespread forgery of securities certificates, demand for cutting-edge anticounterfeit technology has been increasing. On
the strength of highly sophisticated security technology that it has been developing since its foundation, Toppan is responding to customer needs
by promoting R&D with a focus on advanced anticounterfeit measures.

Moreover, a de-metalized hologram, which isextremely hard to counterfeit, has been successfully developed and commercialized. In addition
and a variety of new security technologies, including a hybrid card combining applications for bothfinancial and transportation services, have beenlaunched, as well as a compound IC card that
includes Edy and other electronic money functions.

Smart-On-Solo safeguards personal information stored in PCs
using IC cards.

Support of Personal Information Protection

In May 2004, Toppan and Toppan NSW launched total support services for personal information. These services support the client in the formulation of in-houserules, development of in-house systems, and in information management & application in the area of personal information protection. As part of support for theformulation of in-house rules, Toppan offers personal information protection
diagnostic services in line with the specifications of JIS Q 15001 (“gap assessment”) and consulting on the acquisition of the Privacy Mark certification.
Toppan’s support for the development of in-house systems includes website total
diagnostic services based on the ISMS concept, as well as the supply of confidential information management and leak proof systems that use IC cards and tags
as well as other related products developed by Toppan. In information management & application services, the Company supports customer analysis and thedevelopment of tools to comply with the Act Concerning the Protection of Personal Information. Through these activities,
Toppan provides comprehensive backup forsteps taken by customers as they comply
with the requirements of personal informaSecurity policy
tion protection.
Support for the formulationof in-house rules
Support forthe developmentof in-house systems

IC tag-enabled office document storage cabinet
manages confidential information using IC tags.

Compliance
Education & instruction
Security infrastructure
Data classification, analysis and reporting

Support for information
management & application

Data collection, management and application
Planning & production/fabrication, Security system

18

CSR REPORT 2005

The intricate pattern formed on the de-metalized
hologram by partially removing thin metallic film is
extremely hard to counterfeit.

123

CSR Communication Support BusinessIn 1999, Toppan launched an environmental reportcompilation support service that draws on accumulated experience in supporting corporate communication including the production of company
brochures, business reports and annual reports.
Responding to an increased emphasis on CSR,
Toppan services for the production of CSR reports
have been expanded. As a result, the number ofclients in this business increased from 8 in 1999,
the first year, to 26 in 2000, 50 in 2001 andreached over 90 in 2004.
Toppan offers a full service in CSR communication; comprising consulting, editing and production. An example of this is Suntory’s ‘School ofForest and Water’ project, which opened in March
2004. This is an extraordinary educational facility
which teaches children the importance of the natural environment and ecosystem. Toppan provided
consulting from the conceptualization stage andsupported planning, system development andoperations including wide-ranging services that
more than satisfied the requirements of our client,
Suntory Limited.

Going beyond the printed medium, Toppan supports information disclosure utilizing CD-ROMs,
DVDs and the Web. Taking advantage of ourbroad-based capabilities, the company assists inthe planning and operation of exhibitions & eventsand constructs booths.
In 2004, Toppan held a seminar on USR (University Social Responsibility). In keeping with the widening horizon of CSR activities, communication
support services are being broadened.

Highlights 2004-2005
Toppan designs and installs many exhibition booths atenvironmental events and the Company’s own buildings.

CSR Communication FairCSR Communication Fair 2005, the second of its kind, was held at Toppan’s Plaza
21 building in Koishikawa, Tokyo for five days from January 24 through 28, 2005.
In this year’s Fair, some 10 CSR programs were introduced from a more practicalstandpoint on the theme of ‘Perspectives of Corporate Communication’. Specificcases of approaches taken by foreign-companies and the views of consumers
were presented. We believe that this annual event provided new insights into CSR
for many visitors.

In addition to experts in CSR, photographers,
designers and housewives took part in the Fairand various opinions were expressed by thevisitors.

Toppan published a booklet recording thecontents of the seminar to share the Fair’s
accomplishments with as many people aspossible.

Program of CSR Communication Fair 2005
IGeneral outlook on CSR
Global/regional CSR–Social contribution & cause related marketing
IGlobal CSR
Approach taken by global companies–Diversity/supply chain
IAccountability
The only the case of information disclosure in Japan that is
made in accordance with the AA1000 specifications.
ILet’s enjoy CSR
What are CSR messages that reach the general public?
A heated discussion among communication experts
ISocial responsibility and cause related marketing (CRM): I
Support using the company’s products, services and humanresources, and social contribution oriented marketing
ISocial responsibility and cause related marketing (CRM): II
Panel discussion by the representatives of companies that participated in Part I.
–Possibility of social contribution activities that link companies
and the community
IWhat housewives really want to know
In goo’s questionnaire on the Report on the Environment andSociety, the number of female respondents exceeded that ofmale respondents. Against this background, insights are offered on what information housewives want to find in corporate communication on the environment.
IAll about Toppan’s CSR
Taking Toppan as a case, the approach taken by companies to
CSR was explored.
ICSR from the viewpoint of design
Designing CSR for our daily lives–City, space and graphic design
IBrand & corporate communication (CC)
Analysis of the 2004 PR questionnaire survey report/CC tool
branding

Special Report: CSR in the Information Communication Industry

19

25GB Paper Disc Wins
the 2004 Good Design AwardThe 25GB paper disc, which was jointly
developed by Toppan and Sony Corp.,
received the 2004 Good Design Award(G Mark) from the Japan Industrial Design
Promotion Organization (JIDPO).
The 25GB paper disc is a renewable
paper based (paper content: 51%) data
storing medium that adopted the Blu-ray
Disc format, the next generation standard optical disc technology with acapacity five times as large as that ofDVD. Because the transparent reflective
layer (transparent plastic material) of thereader laser is extremely thin when compared with those of DVD and CD, thesubstrate on the side not transmitted by
the reader laser can be thicker and thisenables the use of paper, an opaquematerial.

The paper disc offers many advantages
as it can reduce the amount of plastics
used, print elaborately designed labels
and can be easily cut to pieces with scissors.

In deciding the recipient of the Good DesignAward, the screening committee placed greatvalue on the uniqueness of using paper in a data
storage disc and its environmentally friendly nature. The committee spokesman commented,“This technology has also significantly expanded
the possibility of designing the surface of the discitself.”Strengthened Approach to Life Science

CSR Topics

Toppan started research into life sciencearound 1999 with a focus on DNA
chips*, an area that allows the Company
to take advantage of its proprietary surface treatment technology and nanotechnology developed for the electronics
business. In 2004 a joint R&D project with
Riken and Shimadzu Corp. was launched
to develop SNP detection chips for clinical trials, with the aim of beginning commercial production in 2006.
SNP denotes differences among individuals in the genes related to susceptibility to disease and to the prolongationof life. The SNP chip is a tool that detects

differences in these genes. Within one
hour the chip can easily detect genetic
codes by simply placing it in the detector
after injecting the patient’s blood into
it. This technology is expected to pave
the way for individual health care with
reduced side effects by identifying thetype of drugs and dosage that are mostsuitable to each patient.

*A DNA chip is a substrate on which numerous types
of DNA samples are placed. It can analyze the functions of many types of DNA simultaneously.

Toppan Receives TPM Award

Toppan Group company PM Award recipients at
the awards ceremony

20

CSR REPORT 2005

As a means of promoting quality assurance activity, Toppan has been aspiring
to win the TPM (total productive maintenance) Awards established by the Japan
Institute of Plant Maintenance. So far, 29of the 40 plants, including affiliated companies in Japan, have been granted theseawards.
In 2004, the TPM Special Award waspresented to the Toppan NEC Circuit
Solutions Niigata Plant, which has madesignificant achievements in loss reduction
through company-wide participation. Thisaward is given to a plant that has madeits mark by enhancing TPM* activities
and achieved unique results. In addition,
three other Toppan plants, including Toppan Harima Products, have received the
TPM Award of Excellence by substantially
improving quality through thoroughgoing voluntary maintenance activity inkeeping with the basic tenets of the TPM
movement, and reducing their costs.
(sP.32)*Total Productive Maintenance“UD Selection” Standing Pouches Enter the Market
Following the full introduction of theContainers and Packages Recycling Law
in 2000, growing importance is being
attached to standing pouches due totheir advantages in reducing the volumeof packaging and the ease of disposal.
Toppan has devised a unique model ofstanding pouches from the viewpoint of
universal design. They were adopted by

Lion Corporation for refilling packages of
Shokubutsu Monogatari and Kirei-Kirei
detergents. This product was modeledon Toppan’s original design and developed as a “UD selection” with emphasison the ease of handling, opening andpouring for the user (see p.35 of the2004 CSR Report).

Toppan’s standing pouches were developed in pursuit of greater ease of handlingand refilling. The shape has been designed to be easily handled by women. Its
spout can be easily inserted into the bottle to be refilled and the volume of thecontent can be clearly measured.

Alliance with Tokyo Institute of Technology
In October 2004, Toppan concluded anagreement to forge an organizational
alliance with the Tokyo Institute of Technology. Over many years Toppan has
developed surface treatment technology
in the packaging business and nanotechnology in the electronics field. We are
now aiming to integrate these technologies with Tokyo Tech’s new technologies
to make inroads into new domains ofapplication and development.
At the same time, we are seeking toform new alliances by taking part inexchange forums in such areas as R&D in

nano-thin film application using nanotechnology and coating technology for
next generation fuel cells.
We are also pushing a number of R&D
projects forward efficiently and effectively through joint research, exchangeof researchers and the use of each other’s
R&D facilities with partner organizations.
These efforts are made to enhance
Toppan’s technological capabilities andcontribute to Tokyo Tech’s technological
Highlights 2004-2005
training facilities and feedback of researchachievements to society.

Toppan’s Wall-Sized Electronic Paper Exhibited at
Expo 2005 Aichi, Japan
Electronic paper is a next generation display technology combining the advantages of paper and electronic displays.
Jointly with E Ink Corporation of the U.S.,
Toppan has developed the front planelaminate, the core component of E Ink
electronic paper. In April 2004, this technology was adopted by an electronics
manufacturer as the world’s first electronic paper product.
Using this technology, Toppan has set
up a business to supply display tiles forlarge area signage in public facilities andtraffic systems. When the 2005 World
Exposition, Aichi, Japan opened in March,
Toppan installed a wall-sized electronic
paper display named the “Yomiuri Global
Newspaper” at the Yomiuri Newspaper
booth in the Global House, pavilion.
With a super thin and lightweight design,

the electronic paper consumes a fractionof the electric power of existing LED
displays.

The wall-sized electronic
paper exhibited at Expo2005. Its height of 2.2m
and width of 2.6m makes
it the largest of its kind in
the world. Headlines andtext are displayed in black
and white in a newspaperlike layout and color photographs are shown on aliquid crystal display (LCD)
panel. The wall newspaper
was updated twice daily,
showing the latest news
throughout the Expo period of six months.

CSR Topics

21

The Multi Track Job Function System and Reform of
the Job Evaluation System
Our personnel and remuneration policy
is rooted in the belief that our success ismeasured in terms of the realization of
Toppan Vision 21. Based on this notion,
we revised the New Evaluation System
for Managers, established the Multi Track
Job Function System for non-managerial
personnel and carried out revisions of
the Job Evaluation System.
These steps were taken not only toContribution to Child Education through SuperiorChildren’s Booksfroebel-kan co., ltd. is a publisher specializing in the R&D and supply of childcare
products and educational materials forchildren, as well as the publication ofchildren’s books. In February 2004, “Tsuchi Collection (A Collection of Soils)” by
Koichi Kurita received the Child Welfare
and Culture Award from the Child Welfare and Culture Award Screening Committee. The book, which was publishedby froebel-kan, was recognized as an
outstanding accomplishment in childeducation and culture.

The Child Welfare and Culture Awardwas established in 1934 in commemoration of Child Welfare Week to promotechild education and culture. By publishing superior children’s books, froebel-kan
is contributing to the advance of childeducation.
The book introduces around 10,000 specimens ofsoil in a multitude of colors that have been collectedby the author. The book explains that soil is used inpencils, paper, digestive drugs, cosmetics and manyother things that play an important role in supporting
all forms of life on earth. The child can then explore
the wonders of nature through soil, which is familiar
to every one.

The Printing Museum receives the Keinosuke Sato AwardIn April 2005, the Printing Museum
received the 4th Japan Typography Association Award in commemoration of
Keinosuke Sato, a pioneer in typographic
technology. The award was establishedby the NPO to commend those individuals and organizations that “carry out
emotionally charged activities dedicatedto typography, ranging from basic researchto creative work, taking a multi-faceted
approach to typographical culture.”
The Printing Museum contains exhibitions of printing technology from theearliest history to the era of digital printing in addition to various events andsymposiums. It also preserves printing
machines and types that have formed
the foundation of printing culture. These
activities have been highly rated by theJapan Typography Association. (sP.40)
The Printing Museum stores and exhibits the Suruga-edition copper printing types that were commissioned in the early 17th century by Tokugawa
Ieyasu, the first shogun of the Edo Period.
In addition to these historic printing types, which are designated as important cultural assets, the Printing Museum also holds regular exhibitions introducing the origin of type print. These activities, which are closely related
to typographical culture, have received high praise.
The plaque (left) and certificate (right) presented by the Japan Typography
Association.

22

CSR REPORT 2005

bring about a remuneration scheme
based on a merit system but also because
we believe that we can build up thecommunity’s trust in Toppan by cultivating a corporate culture in which all
employees carry out conduct of highvalue as well as by changing their perceptions and behavior by focusing on
Toppan Vision 21. (sP.36)

Soil and Groundwater Contamination and Restoration/Cleanup work at the Premises of
the Former Fukuoka Plant
Detection and monitoring of soil
contamination
In 2002, Toppan carried out a voluntary
soil investigation as part of the redevelopment of the premises of the former
Fukuoka No. 1 Plant and detected theaccumulation of a pollutant (chromate VI)
exceeding the limit specified as the environmental standard. As a result of this,the soil restoration project was launched.
The case was reported in the 2003 Environmental Report and since then Toppan
has been conducting regular monitoring
four times annually. In August 2004,
chromate VI was again detected in monitoring wells drilled on the premises.
The Company undertook a thoroughinvestigation and soil restoration planunder instruction from the governmentsof Fukuoka Prefecture and Koga City and,on September 13, 2004, held a briefing
for the residents in the community. As aresult of the investigation, it was determined that the maximum concentrationof chromate VI in the soil is 0.13mg/l,
which is 2.6 times higher than the limit
specified in environmental standards. As
for underground water, the maximum
concentration of chromate VI was 0.3mg/l,
6.6 times higher than the standards.
However, no trace of chromate VI wasfound in the 23 monitoring wells drilledon the border of the premises. Therefore,
we conclude that the areas that surroundthe premises are not contaminated.
Detection of VOCs and the current
statusOn the other hand, VOCs (volatile organic
compounds) were detected in the moni-

toring wells that had been newly drilledin preparation for the detailed investigation and a thorough inspection of five
types of VOCs was carried out under
instruction from the government of
Fukuoka Prefecture. This investigation
showed that the concentration of tetrachloroethylene and cis-1,2-dichloroehylene exceeded environmental standards.
The maximum concentration of tetrachloroethylene was 0.033mg/l, 3.3 times
higher than environmental standards
and that of cis-1, 2-dichloroethylen at
0.093mg/l was 2.3 times higher than thestandards. However, Toppan has not used
tetrachloroethylene in the past and thissubstance was detected from the
upstream of groundwater only in themonitoring wells drilled on the borderareas of the premises. Therefore, it is difficult to conclude that the pollution by
this type of VOC was directly caused by
Toppan.
Measures taken after theinvestigation and progress
On November 29, 2004, Toppan held abriefing for the residents in the community on the results of the detailed investigation that had begun at the end of
August and explained the restoration
plan. After gaining the understanding of
the local community the soil restorationand groundwater purification project
was launched. The work will be finishedin October 2005 and, after continuingmonitoring for two years, the restoration
project will be ended. At present, nochromate VI and VOCs have been
detected in the monitoring wells drilledon the premises and the restoration planis well under way.
We are also conducting intensive monitoring of the plants that use the sameequipment as the former Fukuoka No.1
Plant and checking the history of the useof possibly pollutant substances at all ourplants. Based on the findings of theseinvestigations, we are carrying out voluntarily soil analysis at places where further
investigation is considered necessary. At
the same time, we are taking measures
to comply with relevant laws and regulations with stepped up monitoring ofgroundwater. (sP.53)*Five types of VOCs are tetrachloroethylene, trichloroethylene, cis-1,2-dichloroethylene, 1,1-dichloroethylene and dichloromethane.

Outline of the former Fukuoka No. 1 Plant:
From opening to dismantling
The Plant started operation in 1961 with film
gravure printing and then expanded into commercial printing and paper container printing andprocessing. In July 1995 the Commercial Printing
Division moved to the newly opened Fukuoka
No.2 Plant. When the Fukuoka No.1 Plant was
newly rebuilt in March 2002 in the plot adjacent toNo.2 Plant, all facilities were moved to the newplant and the former No.1 Plant was closed in
September 2002.

Highlights 2004-2005
The treatment ofchromate VI in the
groundwater purification unit.

The site of soil
restoration work.
Contaminated soil
is removed andreplaced with new
soil in each block.

A complete view of the soil restoration and groundwater purification work site (left: the groundwater purification facilities; right: VOCs decontamination work)

Measures taken Against Asbestos
Toppan has never manufactured nor
used asbestos as a raw material. Nevertheless, in response to the enforcementof the “Asbestos Damage Prevention
Regulations” on July 1, 2005, we areinspecting the possibility of the use ofasbestos in all facilities on our premises

including plant buildings, offices, dormitories, sales offices and warehouses.
We will promptly take necessary measures if we determine, as a result of theinspection, that there is a fear of exposure to asbestos dust.

CSR Topics

23

Awards Received by Toppan in Fiscal 2004
Name of Award Received

Awarding Organization

Outstanding Researcher Award: For the development of optical substrate using
high polymer optical guided wave path

Association of Super-Advanced Electronic Technologies(ASET)

Best Printing and Bookbinding Award: For the Japanese edition of “National
Geographic” magazine

National Geographic Society

2004 Display Device Technology Award: To Toppan CFI (Taiwan) Co., Ltd.

Taiwan Ministry of the Economy

The 2004 Printing Promotion Award

The Japan Federation of Printing Industries

Essay Award: “Trial Production of Educational Contents Using the Scalable VR
System”

The Virtual Reality Society of JapanThe 34th Japan POP Festival Gold Award

Japan Point of Purchase Promotion Institute Inc.

The 2004 Good Design Award: For the development of the 25GB paper discJapan Industrial Design Promotion Organization

Ubiquitous Gaming “Information Processing System Award”

Information Month organized by the Information Promotion
Project sponsored by the Ministry of Economy, Trade andIndustry and other Information Promoting Organizations

The 14th Outstanding Corporate History Award:
To three documents on the Company’s history

Japan Business History InstituteDisney Best Product Award: To froebel-kan co., ltd.

Die Ausstellungs und Messe GmbH des Börsenvereins desDeutschen Buchhandels

TPM Special Award and TPM Award of Excellence

Japan Institute of Plant MaintenanceThe 2004 Japan Society of Printing Science and Technology Award
To “The softening phenomenon over time in ambient temperatures of the plated
film of electrodeposited copper used in plate making for gravure printing”

The Japan Society of Printing Science and Technology

The 2005 Japan Shop System Awards of Excellence: For the development of the
25GB paper disc

Shop System Study Society

The 2005 ADY Best Component/Material Award: To FC screen

Reed Exhibition Japan Ltd.

Keinosuke Sato Award: To Print Museum

Japan Typography Association

The 2005 Selete Award: For the development of photo mask defect inspection
technology

Semiconductor Leading Edge Technologies, Inc.

OrgaTechno Grand Prize ad Device Award:
For the development of ball SAW (surface acoustic wave) device

ORGAnic Materials TECHNOlogy Exhibition 2005

The Minister of Economy, Trade and Industry Award:
In the 2005 Japan Packaging Competition

The Japan Federation of Printing Industries

Communicating the News of CSR Activities through the In-house Newsletter
Toppan is actively communicating thedevelopment of CSR activities on a company-wide basis in order that every
employee takes an interest in these
activities as his or her own mission andbecomes involved with CSR programs.
So far, CONVEX, the in-house newsletter
published monthly as a tool of communication with employees, has featured
CSR six times since October 2004. This
serial feature, which was entitled “CSR iseverybody’s business at Toppan,” heightened the employees’ awareness of thiscampaign centering on the six main
themes.

24

CSR REPORT 2005

The June 2004–January 2005
issues of CONVEX, the inhouse newsletter publishedmonthly have featured theToppan Vision 21 and Total
Quality Assurance initiatives
to educate all employees.

Social Report
By coming into contact with people atthe Koishikawa Building ‘public green
space’ that directly borders Toppan
Hall and the Printing Museum,
Toppan aims to be a company
that is open to society.

Compliance
Awareness and Thorough Implementation of
Conduct Guidelines

26

Information Risk Management

28

Strengthening Supply Chain Management

30

Improving Customer Satisfaction
Strengthening Product Quality Assurance

32

Contributing to Society throughthe Development of Technology

34

Respecting and Leveraging Human Assets
Merit Based Personnel Policies

36

Fostering, Developing and Utilizing Human Resources

37

Leveraging Human Resources

38

Realizing a Safe and Secure Working Environment

39

Activities for Society and Culture
Contributing to the Traditions and Development ofPrinting Culture and Sharing Impressions

40

Activities for Contributing to Regional Society

42

Awareness and Thorough Implementation of
Conduct Guidelines
For a company to fulfill its social responsibilities, every one of its employees must fully comply with the laws andcorporate ethics in the areas in which it does business. Toppan is involved in company-wide efforts to thoroughly
implement its corporate ethics guidelines, the Conduct Guidelines.

System for Promoting the Conduct
Guidelines
In April 2003, Toppan established a Compliance Department within its Legal
Affairs Division as an instrument to promote compliance with laws and corporate ethics. In addition to ensuring
universal compliance with the Conduct
Guidelines, guaranteeing information
security, protecting personal information,and overseeing employee education onlaws and rules, as the main promoter of
CSR activities within the company, theCompliance Department works towards
the promotion of activities and clarification of issues throughout the entire company.
Conduct Guidelines Promotion
Leaders
In establishing its structure to promote
the observance of laws and corporate
ethics, Toppan has carefully endeavored
to ingrain its Conduct Guidelines into
daily operations. In order to achieve this,in October 2004, Toppan established‘Conduct Guidelines Promotion Leaders’to lead the way as the standard-bearersof Conduct Guidelines promotion activities in the workplace. This structure

Compliance (Conduct Guidelines)
Promotion System

specifies Conduct Guidelines promotion
supervisors and promotion leaders ineach Group company and business location, and there are currently around 670
across Japan. Focused on these supervisors and leaders, each workplace isimplementing educational activities andstudy groups.
Toppan Helpline
In August 2003, Toppan established theToppan helpline and Toppan Internal
Reporting System. In order that there be
no mistrust from society, these systems
have been established in order to discover promptly any corruption on violations of law, and to respond swiftly andappropriately to prevent any misconduct
before it occurs.
The Toppan helpline is open not only
to regular employees, but contract employees and temporary workers as well. Furthermore, in accordance with the Law ofWhistleblower Protection promulgatedin June 2004, in order to ensure that
there is no adverse handling of information, the privacy of individuals is rigorously protected.

Conduct Guidelines Awareness
Activities
As a code of conduct based on the Corporate Philosophy and Corporate Creed,
the Conduct Guidelines ensure that theemployees of Toppan universally respect
the laws and corporate ethics in their dayto-day actions. The scope of the Conduct
Guidelines covers all of Toppan’s businessactivities. The company is also considering measures to promote compliancewith the Corporate Guidelines among all
employees of the Group. (sP.68)
Creation and Utilization of the CaseBook
In order to enhance understanding andfurther spread the Conduct Guidelines,
in November 2004 Toppan published theConduct Guidelines Casebook and distributed it to the Conduct Guidelines
Promotion Leaders at each Group company. In order to provide a clear image ofthe contents of the Conduct Guidelines,
the casebook explains examples of possible incidents taken from everyday work.
The casebook is comprised of 83 casesthat correspond to the structure of theConduct Guidelines. It has been createdin a binder format to allow new cases tobe added.

Toppan Helpline

Conduct Guidelines Promotion Supervisors
Management
Supervisors
Supervising Conduct
Guidelines
Promotion Leadersand liaising with
Legal Affairs Division

Education
Supervisors
Structuring
Promotional
Organization andsupervising
education

Communicator
All employees

Internal Communications
Progress and Results Reporting

Conduct Guidelines Promotion Leaders
OImplementation supervisors at eachbusiness location (Standard-bearers)
OEducation (study groups) measures
OIdentifying issues with the Conduct
Guidelines

Employees

26

CSR REPORT 2005

Emails and sealed documents
sent under real name

Follow-up after communication

Investigation
andCountermeasure
Organizations

ReportingInstructions

ReceiverPresident & CEOor
Senior Corporate
AuditorSocial ReportCompliance

Specialist Training
In fiscal 2004, Toppan launched its
annual training program (group training)for the Conduct Guideline Promotion
leaders. A total of 576 employees took
part in a series of one-day programs heldin 26 locations nationwide over theperiod between December 2004 andMarch 2005. After the morning session,
which consisted mainly of lectures, they
were divided into groups and actively
participated in discussions on a variety ofissues.
Also, to mark the start of the Conduct
Guideline Promotion Leader system infiscal 2004, Toppan initiated a correspondence education scheme to allow allleaders to systematically increase theirbasic knowledge. Toppan will continue
this scheme for newly-appointed leadersin the future, along with the annual leadership training programs.
Company-wide Training
In keeping with Toppan Vision 21, a
company-wide training initiative is now
under way with a focus on promoting
the Conduct Guidelines. The program
offers rank-specific, regular training programs for newly-recruited employees

and, newly-appointed supervisors, managers and general managers. In addition,
topic-specific training is conducted onsuch vital issues as information security,
personal information protection and revisions to relevant laws.
In fiscal 2004, in addition to rank-specific training highlighting the Conduct
Guidelines training program, Toppan carried out training in subcontract law,
copyright law and information management on a nationwide scale. In fiscal
2005, in response to the amendment ofJapan’s anti-monopoly law, Toppan isproviding systematic training in theessentials of this legal reform, primarily
for sales persons.
Conduct Guidelines Newsletter
From fiscal 2005 Toppan has been issuing a monthly Conduct Guidelines newsletter on its intranet. So far it has included
coverage of relevant events and incidents
and revisions to laws, etc. and it aims toheighten the awareness in our employees of the growing importance of issues
such as personal information protection,
opposition to bid-rigging, and compliance with the subcontract law. The
newsletter aims to enhance the law-abiding consciousness of every employee
by regularly featuring topical themes infuture issues.
Optional Training
A practical course of basic legal study has
been added to the Toppan Business
School, an optional training initiative that
forms one aspect of Toppan’s initiatives
to strengthen human resource capabilities, and this opportunity is being
extended to group companies.
With emphasis on the furtherance of
the Conduct Guidelines, this training
program was offered to employees inthree locations in fiscal 2004 in the areasof sales, planning and marketing and isdesigned to increase their ability to makea more focused response to customers’
needs. In fiscal 2005, Toppan plans tooffer optional training in six locations
nationwide.

Summary of Conduct Guidelines Promotion Activities

Sustainable Development

Maintaining the Trust of Society
OInstituting measures toprevent a recurrence

Plan

ActionConduct
Guidelines

OQuestionnaires
Check
OAwareness surveys

Conduct
Guidelines
Promotion
Leader(systematic
foundation)

OPreparing a Conduct
Guidelines promotion plan(annual plan; medium- andlong-term plans)Conduct Guidelines Promotion Leader Training

Do

OCreating education tools
OSpecialist training(leader training,correspondence courses)
OCompany-wide training(stratified e-learning)

Conduct Guidelines Promotion
Supervisor/Conduct Guidelines
Promotion Leader

Specialist
training

Employees

Company-widetraining

Conduct Guidelines Casebook

Awareness and Thorough Implementation of Conduct Guidelines

27

Information Risk Management
Based on its Information Management Policy, Toppan is further strengthening information management throughstaff education and auditing from human and organizational standpoints. At the same time, the Company is
keeping strict control of information with regard to systems and physical structure.

Systematization of Policies andRules
In April 2001, Toppan instituted its Information Management Policy as part of its
overall policy on information security.
This move was an extension of the Rules
on Management of Confidential Information established in 1991. Since then,the Company has been systemizing
under this policy, its rules concerningbusiness operation in the spheres of
information security management, personal information management andinsider trading prevention control.
In March 2005, in anticipation of thefull enactment of the Act Concerning
Protection of Personal Information in thefollowing month, Toppan took a series ofmeasures to improve and revise its policies and rules related to personal information management. This included thelaunch of its personal information protection policy, information management
policy and Information Security Management Rules.
In the future, Toppan will consolidate its
policies and rules across the entire spectrum of information security managementwith regular reviews and revisions in
response to the changes in laws and rules
and social concerns.

Information Management Policy
1. Employees shall comply with all internal
rules on information management andmanage information appropriately in fullobservance of the law and social order.

Information Security Management
In April 2001, Toppan formulated its
Information Security Management Rules
in tandem with the adoption of its Information Management Policy. Since then,the Company has implemented a total ofeight company-wide bylaws and four
bylaws concerning specific areas of operations including the bylaws Concerning
the Processing of Information in Conformity with ISO/IEC (International Organization for Standardization/International
Electrotechnical Commission) 17799, a
set of international standards for theoperation of information security management. Moreover, Toppan is striving to
upgrade security management by formulating bylaws applicable to the uniquesituation of each business operation.
In April 2004, the Company drew up
its Guidelines for Confidential Information Security Management at the Technical Research Institute in order to enhance
information risk management in advanced
technologies. In addition to full-time
employees, the Company now requires
retirees and part-timers to sign the confidentiality agreement. Toppan is planningto systematize its bylaws by promoting
the parallel development of its technology information security management

guidelines and the formulation of business continuation rules, including crisis
response rules.

Information Management Audit
In 1999, Toppan started internal auditingof the Securities Printing Business Division in preparation for Privacy Mark certification. This was followed by auditingof personal information management in
the web business from 2002 and theauditing of information security management from 2003. In fiscal 2004, theCompany produced a manual for thesimultaneous audit of information security management and personal information management, which was carried out
in December in the Commercial Printing
Division. Starting from fiscal 2005, thissimultaneous auditing is being conducted in all business units. Toppan is
now gearing up to establish the PDCA
(Plan, Do, Check, Action) cycle in which a
representative of each group takes theinitiative in implementing corrective measures in response to the audit results.
Since April 2005, the development
and observation of rules for each manufacturing process in all plants including

Rules on Internal Information Management
Rules onInformation
Security
Management

Information
Management
Policy2. Employees shall collect information for
appropriate purposes using appropriate
methods.

5. To ensure the appropriate managementof information at all times, the company
and its employees shall improve its information management system based on
periodic reviews of social circumstances,
technology trends, and the latest revisions
in information systems.
Established April 1, 2001

28

CSR REPORT 2005

Bylaws on information security
concerning outsourcing of
information systems
Bylaws concerning information
security auditing

3. Employees shall recognize the value of information as an asset and use information
safely and efficiently for the stated purpose of use.
4. Employees shall safely manage information handled on behalf of customers tosecure their trust.

Information handling bylaws

Bylaws concerning information
security education
Eight bylaws in all
Operating bylaws concerning
individual services
Rules on theProtection of
Personal
Information

Rules on theManagement of
Personal
Information

Operating bylaws concerning
the management of employees’
personal information
Bylaws concerning information
entrusted by customers
Bylaws concerning the handlingof personal information in
the Web business

Rules to Prevent
Insider Trading

Compliance programs in eachbusiness location

Social ReportComplianceoutsourced operators have been auditedby the Corporate Manufacturing Technology and Research Division seeking toeliminate accidents caused by operational mistakes.

Employee Education andInformation Dissemination
Toppan has produced e-learning materials entitled “Basic Information Security”
and started, in July 2004, an educational
program on its intranet for all 11,000
employees (including some using printed
textbooks). The understanding of thecontents by the participants is measured
and analyzed using questionnaire surveys
and tests and improvements are made toteaching materials and program operation. In addition, through e-learning
newsletters, announcements, manuals,
Q&A booklets, slogan posters and othereducational tools, the Company is striving to expand the scope of education in
more effective ways.
Since April 2005, Toppan has also
been posting the “Collection of Rules”,”Guidebook” and “Guidelines of Governmental Agencies and Industrial Organizations for the Protection of Personal
Information” on the Intranet. The Company also provides guidelines for specificissues through “Q&As” and “Case Studies”.
Business Divisions and Group Companies
Acquired Privacy Mark Certification andCertifications Pending in Fiscal 2004
Newly acquired
Nishinihon Division
Chubu Division
Toppan Logistics Co., Ltd.
Toppan Multi-Soft Ltd.
Certifications pending
Head Office
E-Business Division
Electronics Division
Information & Publications
Division
Packaging Division
Hokkaido Division
Tohoku Division
Tosho Printing Co., Ltd.

December 2004
July 2005*
November 2004
June 2005*
December 2004
December 2004
December 2004
December 2004
December 2004
December 2004
December 2004
March 2005

*Both of these business entities filed applications infiscal 2004.
See page 69 for all business divisions and group companies that acquired the Privacy Mark.

Company, they must follow the approval
procedures and abide by rules for thesafeguarding of personal information
mediums.

Greater Physical Security
To maintain a secure environment for thehandling of personal information, Toppan
has introduced systems that identify individual employees of the Company as wellas those who are working for outsourced
operators, and those who are specificallyallowed access to its premises. Operations involving the processing of personal
information are performed in a designated security area equipped with special
protection devices. The media in which
personal data is held are stored in a heavily locked up vault that has an anti-seismic structure and is equipped with a UPS(uninterrupted power supply) system.
Monitoring cameras are set up in specificareas with indicators that clearly show to
employees who is permitted access tothese facilities and that the cameras areoperating.
Moreover, to prevent the theft of personal information, employees are prohibited from storing such data in the harddisc of their PCs. They are required toactivate the screen saver operated with apassword when they leave their desk andlock the containers and mediums inwhich personal information and related
data are input. Employees are also notallowed, as a rule, to use mobile PCs outside the Company. If it is absolutely necessary to take out these PCs from theTechnological Aspects
When the server that stores personal data
is located in a data center, as a principle itis operated using the ISMS (Information
Security Management System) certified
in-house TOPICA hosting service. Anyone
who wishes to use other servers in thedata center must pass a regular security
check and get clearance from the relevant
division at the head office. The records ofaccess to these servers are kept in custodyfor a specified period.
Websites are constructed in accordance with the Security Check Items for
Website Construction, which took effectin March 2004 to prevent the leak of
personal information resulting fromincorrect setup procedures. Security
checks are performed at regular intervals
after operation has started. Only authorized staff members are allowed accessto personal information and they are
identified by ID card and password. Theirpasswords are changed at regular intervals and when any of them leaves thecompany, his or her password is immediately invalidated.

Toppan’s Information Management Measures
ODevelopment and improvement of information
management systems
OSystemization of information management rules
OQuality control systems at manufacturing plants
OAudit of sub-contractors
OInternal audit
Organizational
aspects of
security
management
measuresPhysical
aspects of
security
management
measures
OControl of access to the premises
ODesignation of security areas
OPrevention of theft

OEmployee education
OConclusion of confidentiality
agreements
OMonitoring
Human
aspects of
security
management
measures

Technologicalaspects of
security
management
measures
OControl of access to networks and servers
OCountermeasures against corrupt software
OSecurity checks on websites
OExpanded use of safety assured in-house
data centersSee page 15 for the feature on security management measures with a focus on the Act Concerning theProtection of Personal Information

Information Risk Management

29

Strengthening Supply Chain Management
As well as committing to appropriate and fair trading based on the Procurement Guidelines, Toppan is ensuring
CSR applies throughout the entire supply chain with regular checkups of suppliers. Toppan is also fully promoting
green procurement and green purchasing.

Fair and Just Dealings
Toppan regards suppliers as business
partners and makes every effort to deal
with them fairly and in a highly transparent manner. Its social responsibility in the
procurement of raw materials and outsourcing of production is prescribed in
the Conduct Guidelines, Purchasing Rules
and Subcontract Law Compliance Manual. At the same time, the Company
carries out extensive educational andtraining programs for all employees dealing with suppliers to ensure the dischargeof their social responsibility. As a result,
Toppan has forged good relationships
with its suppliers.

Basic Trade Contract
Toppan is entering into basic trade contracts with its longstanding partners as
another means to preserve fairness in its
dealings. Each contract clearly lays out
the basic terms of the deal and the rights
and obligations of both Toppan and its
partners. The objectives are to prevent
problems in dealings and support highly
transparent business for both parties.
In April 2003, Toppan revised the contract to include more items on legal compliance and the protection of personal
information protection from a CSR standpoint. As of this writing, the new contract had been signed with about 12,000
companies. The mutual respect for thisbasic trade contract will ensure the fairness of business.

Basic Procurement Policy on the website
http://www.toppan.co.jp/aboutus/tech_info/policy/
policy.html

Procurement Guidelines
Basic Procurement Policy
OToppan will provide procurement opportunities in a fair manner to suppliers that meet its Supplier
Selection Standards.
OToppan will conduct its procurement activities fairly in keeping with the principles of fair trade and in fullcompliance with both domestic and international laws.
OToppan will strictly manage Information acquired in the course of procurement and make every
reasonable effort to maintain confidentiality.
OToppan will make every effort, in conducting its procurement activities, to protect and preserve
resources and the environment.
Supplier Selection Standards
Toppan provides fair and equal business opportunities to suppliers that meet the following standards.
Once suppliers are selected, Toppan continually assesses their performance based on its original selection
standards in a cooperative effort to realize an even better trading relationship.
Legal ComplianceFulfills social responsibilities and complies with both domestic and international law
Quality

Meets Toppan’s standards and provides stable quality

Price

Offers products at prices equal to or lower than those of competitors

SupplyMeets Toppan’s delivery requests and provides a stable supply of products

Toppan reviews the performance and management stance of its suppliers by evaluating the following items:
Management Foundation Maintains a sound corporate financial baseTechnical Ability

Actively improves conventional technologies and develops new products andtechnology

Information Supply Ability Provides necessary and effective information in a timely and appropriatemannerConfidentiality

Strictly manages information acquired through trade and maintains
confidentiality

Concern for Environment Conducts business with sufficient concern for resource protection andenvironmental preservation
CSR Measures

Takes CSR measures and discloses them
Established July 200430

CSR REPORT 2005

Response to the Amendment of the
Subcontract Law
In response to the amendment of the
Law to Prevent the Delay of Payments to
Subcontractors (the subcontract law),
Toppan is taking every possible step toobserve the Law on a company-widebasis. In particular, the Company makes
sure that the respective business division(or head office) issues an purchase ordersheet for every transaction in advanceand reports the results quarterly to theboard of directors. In fiscal 2004 Toppan
also held seminars on the subcontract
law, not only for its business units, butalso for group companies in preparation
for the revision of this law. In particular,
briefing and lecture meetings on thesubcontract law were designed for thosebusiness divisions and group companies
outsourcing design production andtransportation which were newly added
to the scope of the Subcontract Law.
The Company will continue to give
guidance on and check unfair pressure
for price reductions while monitoring
its performance vis-à-vis the subcontractlaw.

Measures to Ensure Compliancewith Japan’s Subcontracting Law
In an inspection of business locations
carried out by the Small and Medium
Enterprise Agency in May 2004, it was
indicated that Toppan still has several
areas in which there is room for
improvement. As well as swiftly taking
measures to respond to this, and inorder to thoroughly spread awarenessof the main points of the report, adebriefing session for all those concerned throughout Japan was held in
June.
Further, since August, the resultsof pre-issued purchase order sheets at
the Sales Division have been compiled.
From August 2004, Toppan has maintained a record of no violations, including the Manufacturing Administration
Division.

Social ReportCompliance

Promotion of CSR in the Supply
Chain
Toppan recognizes that CSR must apply
to the entire supply chain if the company
is to be trusted by its customers. In
actively fulfilling its social responsibilities
with the first-tier suppliers with whom it
trades directly, Toppan requires them todo the same with second-tier suppliers.
Toppan externally discloses its Basic
Procurement Policy and Supplier Selection Standards regarding trading to presuppose that each supplier fulfills
Toppan’s basic requirements as regards
observing laws, confidentiality and environmental responses. By gaining theunderstanding and cooperation of eachsupplier in this way, as partners, CSR processes continue down the supply chain.
Supplier Checkup
Besides the crucial factors of cost, quality, and delivery, the social responsibilityof candidates are considered in the evaluation process. In the case of major suppliers, this process is regularly repeatedthrough a process Toppan refers to as
Supplier Checkup. By providing feedbackon the results of the checkup to the suppliers, relationships are improved andstrengthened.

In fiscal 2004 Toppan constantly carried out appraisals of over 1,200 companies. In the future, the Company will
establish a uniform checkup method andcontinue to carry out evaluations.
Intellectual Property Rights
As services provided by Toppan include
designs and text manuscripts, the Company needs to constantly maintain due
diligence for copyright and design rightprotection. In many cases, these creative
assignments are outsourced to external
specialists. Therefore, Toppan provides
seminars for these specialists and theCompany’s employees concerned to
study intellectual property rights together
and other related issues. By creatingproducts based on correct knowledge
Toppan aims to provide satisfaction to its
customers.

Green Procurement & Greenpurchasing
One important factor in building a recycling-oriented society is to place a priority
on purchasing products that have been
manufactured taking environmental conservation into consideration. In April
2002, Toppan introduced a Green Pro-

Overview of Supply Chain Management Based on CSRGreen Purchasing Network

CSR

CSR

CSR

Survey,RequestSupplier
checkup,Subcontract Act
Compliance,
Training of
Cooperating
Companies,
RequestManagement,
Request

Order

Order

Order

Customer
Supplyingproducts and services

First-tiersupplier
Supplyingproducts and services

curement system that conforms to theGreen Standard for Offset Printing Services established by the Japan Federationof Printing Industries. In printing paper,
although Toppan’s achievement ratio ofthese standards rose from 22.7% to24.7% in fiscal 2004, the Company
could not achieve its target of a five percentage points improvement. Nevertheless, Toppan is continuing its green
procurement policy in fiscal 2005, seeking to achieve a clearance ratio of 30%
in the mid-to-long term. Since ink has
already achieved a high level of green
standards clearance ratio, the Company
is making sure that this will be maintained in the future.
Toppan also adopted a Green Purchasing Basic Policy in January 1999 andlaunched a company-wide green purchasing initiative. This initiative setsgreen standards for office paper, copiermachines, printers, PCs, toilet paper andstationery. The Company selects the
products that meet in-house green standards and purchases them on a continuing basis. (sP.69)

A nationwide network founded in 1996 topromote Green Purchasing. As of July 21,
2005, the network comprised 2,828 organizations (2,231 companies, 319 organizational institutions, and 278 privateorganizations). The network announced its
Order Guidelines for Offset Printing Services (GPN-GL14) in December 2001.

Second-tiersupplier

Supplyingproducts and services

Strengthening Supply Chain Management

31Strengthening Product Quality Assurance
Toppan is promoting Quality Assurance activities based on Total Quality Assurance not only in divisions directly
linked to manufacturing, but also across the whole company. Furthermore, the Company is promoting its
proprietary TPM activities, and is involved in improving product quality.

Toppan’s Total Quality Assurance
Toppan recognizes that the manufacturing and quality assurance departments
are by no means the only parts of Toppan
involved in quality assurance. Sales, Planning, Technology and Research, Manufacturing and Administration Departments
as well as management areas are involvedin Quality Assurance—unified activities
to improve and advance products.
At Toppan, multi-faceted activities,
including inspection by senior management, are in place to enhance quality.
Since early 2005, it has been promoting
a company-wide campaign in pursuit ofthorough total quality assurance.
From fiscal 2004, the Manufacturing &Sales Joint Conference has been held. All
key members of the Sales Division fromthe general manager down to the section chiefs attend this conference tocommunicate directly with the staff ofthe Manufacturing Division seeking ways
to prevent accidents that negatively
affect quality.

Activities of the Planning and Sales
Divisions
The Planning and Sales Divisions carryout daily business activities seeking tocontinuously increase customer satisfaction by taking part in the whole processof making proposals in the most effective
manner, considering customer’s needs,
manufacturing, delivery and payment.
The Company is hard at work toachieve customer satisfaction with consideration of their social and futureneeds. This includes leveraging Toppan’s
marketing capabilities to elicit customer
cooperation in product development aswell as innovations made by the Company’s technological development expertiseto boost customer satisfaction.

TPM Promotion
Toppan’s TPM*1 is a proprietary systemthat targets zero production loss througha fusion of quality management, IE*2,
and the ISO 9000 series. TPM dramatically improves production efficiency
through modifications in equipment andhuman resources. With those improvements, Toppan can reform its corporate
structure and improve its competitiveness in quality, cost and delivery.
In fiscal 2004, Toppan developed aframework in which TPM and the ISO
9000 series of industrial standards are
combined to improve and maintain quality. As a consequence, many plants identified quality-related issues as the basis of
calculation had become much clearer. In
the future, the Company will carry on
continuous improvement on the strengthof the accumulated experience of its inhouse consultants and proprietary technology using Toppan’s overall capabilities
to find solutions for company-wideissues.
*1 Total Productive Maintenance*2 Industrial Engineering

A joint Quality Assurance training session with theSales, Planning and Manufacturing Administration
Departments.

Total Quality Assurance in Toppan’s Business Activities
Planning

Basic Stance on Product Safety
Management

OCan we accurately understand the customer’s demands?
OCan we discover potential needs?

Toppan prevents product-related accidents
and protects the health and safety of the usersof its products through the following steps:

ODo we conduct accurate and appropriate cost
Quote rcalculations?
Receipt of Order•Recognize the importance of productsafety.
•Promote measures to improve Toppan’s
product safety management.

Manufacturing ODoes the manufacturing order to the plant satisfy
quality (Q), cost (C), and delivery (D) requirements?
Order
Product Planning ODo we have the technological development ability todevelop new manufacturing methods?

32

Manufacture

OAre we effectively meeting the levels of quality
required to satisfy the customer?

Inspection

OAre we conducting our inspections properly?

Shipment

ODo we deliver the product on schedule

CSR REPORT 2005

•Contribute to society through Toppan’s
product safety management.
Improving
Customer
Satisfaction

Established March 1999

Social Report
Improving Customer Satisfaction

Acquisition of ISO 9001 certification
In fiscal 2004, the Ranzan Plant of Toppan
Packaging Service and the Amagi Plant
of Kyushu Sub-division, Nishinihon Division newly acquired the ISO 9001 quality
certification. Also those operations that
had already received the certification
successfully passed annual audits andrenewal audits. (sP.70)
The Company also conducted internal
audits over 20 times to check how
QMS*3 is operated. QMS was also maintained and strengthened by increasing
the number of internal auditors stationed
at each plant. Over ten training sessions
were held for these auditors across thecountry to improve their auditing skills
including the Internal Auditor Guardianship Training and Internal Auditor LevelUp Training.
The latest information on the acquisition of ISO 9001 is posted on the Company’s website*4.
*3 Quality Management System*4 http://www.toppan.co.jp/aboutus/tech_info/
iso/index.html

Measures Taken for Product is
attached Quality Assurance
Food Business
Toppan develops food product containers and packaging materials, prints andprocesses these containers and packages, and fills food products. And thus
attaches great importance to quality
assurance from the viewpoint of foodsafety and sanitation in the manufactureof food containers and in the food filling
process.
In fiscal 2004, the Company organized
the Food Audit Team consisting of head
office staffers responsible for ISO 9000
series certification, analysis technicians at
the Technical Research Institute and thequality assurance staff of the Packaging
Division. The team audited all operations
performing the food filling process at theplants of Toppan and its subsidiaries andcooperating companies. In particular, Xray testers and metal detectors were set
up on all production lines to prevent the
mixing of metallic objects in the product.
In addition, steady progress has been
made by executing improvement plans
based on the audit report that pointed
out the areas needing corrective measures. As a result, the Company hasreceived no serious claims regarding theinclusion of metallic objects in products
and will continue audit and improvement
activities in fiscal 2005.
Electronics-related business
In January 2004, Toppan’s Mie Plant
started running a production line forcolor filters that are designed for theworld’s first sixth-generation LCD (liquid
crystal display) with a screen size of
1,500mm × 1,800mm for large sized
television sets. The Company’s proprietary quality control system based on ISO
9001 has been introduced and the plantis operating efficiently. Production statusand quality inspection outcomes aremonitored in real time. Production equipment and conditions are checked andproducts are managed with a statistic
based process control system. With feedback from this system, the plant is maintaining and raising quality by proactively
eliminating defective products.
In the future, Toppan is planning toinstall the same system in electronics
plants operating both at home andabroad.

Toppan Proprietary TPM Activities

TPM
ContinualManagement of
stableequipment

ISO 9000 series

Fostering employees
who focus onequipment andquality
High-quality goods
created by people
and equipment

Toppan’s
own TPM

Safe and clean
work environment

The Mie Plant (Kameyama City, Mie Prefecture:
Plan showing the plant following completion of
the current expansion work.)

IE

Strengthening Product Quality Assurance

33

Contributing to Society through the Development ofTechnology
Toppan carries out proactive R&D projects in order to provide high-value-added products, systems and services thatmeet the needs of the future market. The Company contributes to society through the development of products
using next-generation technology.
Development Organization (NEDO).
Toppan has also forged alliances withmany academic institutions and corporations at home and abroad, actively promoting joint technology development.

Basic Stance on Research andDevelopment
Primarily through its Technical ResearchInstitute Toppan is pushing forward
R&D projects with a view to exploring
untapped areas of science and responding to the needs of the future market.
The Company has achieved numerous
successful results in product development by marshalling the forces of theSales and Product Promotion Divisions to
identify the latest trends in the market
and the customers’ needs and this isaugmented by the promotion of higher
product performance and higher value
added. In the area of production technology, Toppan is meeting the customer’s
expectations through close collaborationof the Manufacturing Division to reduce
costs, shorten delivery time and enhancequality. This has been achieved primarily
by automation and energy saving in production lines and process improvement.

In Pursuit of Universal Design
Toppan is pursuing universal design (UD)that is based on the concept that puts
emphasis on the creation of productsthat can be easily used by as many people as possible.

Total Solutions using IC Tags
IC tags have potential in a wide variety ofareas. For instance, pedestrian ITSs (intelligent transport systems), which help
visually-impaired people navigate thestreets, are expected to form the infrastructure of barrier-free community
spaces. IC tags can also play a major rolein a recycle-oriented society by spreading
the use of returnable packages.
Toppan offers total solutions in thisarea with IC chips and diversified applications developed using its proprietary
technology. At the same time, it is participating in a number of demonstration
trials including the self-controlled moving support project for people with disabilities and the triage* tag experiment.
Looking ahead, the Company will continue to explore the possibilities of IC
tags in realizing a better society.

Industry-Government-Academia
alliance
Toppan is forging stronger ties with external organizations seeking to contribute its
proprietary technology more extensively
to society. The Company is participatingin government projects and currently carrying out research commissioned by the
New Energy and Industrial Technology*Triage is the process in which the priority of giving
treatment to patients and injured persons, andtransporting these people to the medical institution
is decided based on the seriousness and the degreeof urgency of disease or injury. IC tags are expectedto speed up this data handling.

Universal Design of Packages
Toppan is cooperating with the Japan
Packaging Institute in drafting a set of
guidelines aimed to promote designs
that take the elderly and people with disabilities into consideration such as JIS(Japan Industrial Standards) S0025 andS0022. The Company is also appointed
as a member of the JIS Draft Preparation
Committee on Universal Design andactively spreading this movement by participating in the International Association
for Universal Design (IAUD).
In fiscal 2004, Toppan, working
together with Digital Human ResearchCenter of the National Institute ofAdvanced Industrial Science and Technology, made, on an experimental basis,
food containers that can be easily handled by the elderly and other people who
suffer from weakened grip power. The
Company has proposed these containers
to a food processing company andexpects that these will be adopted soon.

The direction sensor is attached toa PDA equipped with a tag reader.

Downloading thelatest data

Local information server forthe pedestrian ITS
Conceptual image of the reader

Reader antenna

White cane with antenna

IC tagMagnetic flux

IC tags are placed on the visually-impaired pedestrian guidance blocks on the road surface. The pedestrian gets
information from IC tags through the antenna set in the white stick for the blind. The pedestrian can find his or
her way by using positional and directional information supplied from this system.

34

CSR REPORT 2005

The “UD Selection” dessert cup is a semicircularfood container developed by Toppan. Using aperson’s grip power efficiently, its seal-like lid can bepeeled off with minimum force. The shape issymmetrical so both the left- and right-handed
persons can use it with the same ease.

Social Report
Improving Customer Satisfaction

Next Generation Sensors

Cutting Edge Display Technology

Virtual Reality Technology

In a “hydrogen society” of the futurethat is run on hydrogen in place of petroleum to prevent global warming, we willneed various types of sensors. For example, fuel cells will require a hydrogen leaksensor as well as sensors that measuretemperature and humidity. In 1999,
Toppan and Tohoku University jointly
developed the ball SAW (surface acousticwave) sensor, a super sensitive miniaturedevice. The Company is now exploring
the possible applications of this technology including its use as a system that willmeet the needs of the hydrogen society.
The Company is also developing, with
Tokyo Institute of Technology, a smell
sensor. This sensor can be installed innursing robots, which are expected to be
used widely in the future. The sensor can
detect the smell of hazardous substances
and will be employed extensively in security systems against terrorist activities. In
addition, it will be utilized for cosmetic
purposes to detect body smell and tocontrol fragrance used in business facilities.

The OLED (Organic Light Emitting Diode)is a next generation self-emitting display
device that offers superior dynamic image
regeneration. Toppan has developed theworld’s first RGB (red, green and blue)
full-color organic EL display that uses theprinting format. The Company is now
moving to the stage of commercialization and exploring the possible application areas of this technology.
In the field of rear projection TVs (PTV),
taking advantage of its lens making technology, Toppan has also successfully
developed a new screen (high definition,
wide angled) for PTV, a wide/thin screen
using high precision micro processing.
The screen can reproduce digital TV and
DVD images with high definition.
At the same time, Toppan is also conducting research into anti-reflection film
to prevent the reflection of exterior lighton these high definition, wide angled,
flat LCD screens. The Company has
developed the LR (low reflection) filmwith anti-electrical charge function, that
does not collect dust on the surface ofthe screen. It is now increasing the production of large-sized displays using thisfilm.

Toppan is developing the technology tocreate a digital archive of cultural assets& works of fine art and produce VR (virtual reality) contents for educational andcultural applications.
In a joint project with the researchgroup of Professor Ikeuchi at the University of Tokyo that began in September
2003, Toppan created CG (computer
graphics) of the stone room of Otsuka
Kofun in Katsuragawamachi, Fukuoka
Prefecture. This is an ancient burial
mound designated as a special historicalmonument and well known for its prehistoric decorative design.
The results of this research will be on
permanent display under the supervisionof Mr. Nobuaki Kuchitsu of the National
Research Institute for Cultural Properties,
Tokyo, in the Kyushu National Museumthat opened in October 2005.

The ball SAW device won the Device Award at theOrganic Materials Technology Exhibition held in July
2005 at the Tokyo Big Site. Its development ofleading-edge material and application technology
received wide acclaim. Exploiting the characteristics
of high frequency oscillation that circles several
hundred times around the surface of a crystal ball of
1mm in diameter, the device detects changes inextremely minute physical properties by amplifying
them. One of its important features is that, bychanging the sensitivity film, the sensor can performdifferent functions and integrate them. (The photois the driving kit of the ball SAW sensor.)

The production of CG images of a decorative
ancient burial mound based on actual
measurements of delicate form and color is the firstin history. It shows a new way of preserving precious
cultural assets and presenting them to the public.

The 5-inch RGB full color OLED display developed
using Toppan’s printing technology.

Contributing to Society through the Development of Technology

35

Merit Based Personnel Policies
One of the key themes of Toppan Vision 21 is the development of personnel policies.
In fiscal 2004, Toppan made a significant reform of its personnel systems and as a result,can now make personnel decisions more firmly based on merit.

Basic Thinking on Personnel
Systems

Reform of Personnel Systems

Toppan recognizes that it can build thetrust of the community, customers andother stakeholders when each employee
consistently practices “conduct of highvalue” to realize Toppan Vision 21. In
keeping with this conviction, the Company’s personnel policies for hiring, appointment, training, promotion and treatment
are all based on “conduct of high value”
as well as on abilities and skills.
The term “conduct of high value”
embodies the concrete activities thatrealize a corporate philosophy and business principles. On the other hand, abilities and skills are indispensable to thepractice of valuable conduct. Job-specificassessment items are set for sales &planning, manufacturing, technology &research and business administration
within the framework of abilities andskills. Business administration is further
divided into finance, legal affairs, purchasing, personnel and labor.

New Manager Evaluation System
As the first step of a personnel administration based on merit, Toppan introduced the New Manager Evaluation
System in April 2005. Under this system,
targets, outcomes and the entire processof performance improvement are evaluated on the basis of merit and reflected
proportionately in rewards. In particular
the process of performance improvement
is evaluated in terms of “conduct of highvalue” as well as with respect to abilities
and skills.
With the introduction of the new
evaluation system, the Company provided training for all managers fromJanuary through March 2005 on theobjectives and contents of the reform. It
also offered training on job performance
evaluation.
In addition Toppan will carry out personnel policies more closely attuned tothe merit system through the reform of
the remuneration and promotion systems
for managers. These new systems arescheduled for implementation in April
2006.

The Multi-Track Job Function System
and Reform of the Job Evaluation
SystemFor general employees, Toppan introduced the Multi-Track Job Function System and carried out reform of the Job
Evaluation System. To reflect performance more accurately in the Job Function System, two different grade schemes
were established. Employees in the Sales,
Planning, Technology, Research and Business Administration Departments areevaluated under a five-grade scheme
while those in the manufacturing departments are working under an eight-grade
scheme.
As in the New Manager Evaluation
System, the Job Function System is operated with a focus on “conduct of highvalue” combined with the evaluation of
the three elements of capability, activity
and performance to determine treatment.
Toppan held a briefing for all employees when these systems were introducedin April 2005, and distributed a booklet
explaining the new systems in detail. In
the future, the Company will operatethese systems more extensively.

Toppan Vision 21 and the Human Assets Education Cycle
Accomplishments

Goals

Management
policies

Business
policies

Mediumterm plan

Term plan

Department
plan

ToppanVision 21
Corporate
Philosophy
Corporate
Creed
Conduct
Guidelines
Business Fields

ActionPerformance
Improvement

36

CSR REPORT 2005

Conduct of high value

Abilities and Skills

OEarning the trust of customers
OStrengthening businessfoundations
OFulfilling corporate responsibility
OStrengthening organization
OImproving corporate value

OKnowledge and information skills
OTechniques and know-how
OCommunication and learning
abilities
OAbility to identify and formulatetasks
OAbility to accomplish tasks
OBasic Skills

Strengthof
Individual
Realizing a positive
cycle between
individual andorganization
StrengthofOrganization

Maintaining theWork Environment

Social Report
Respecting and Leveraging Human Assets

Fostering, Developing and Utilizing Human Resources
Human resources are developed and fostered at Toppan based on “conduct of high value” andskills and abilities to develop individuals and the Company as a whole.

Concept of Human Resource
Development and Fostering
Toppan has begun rank based training.
This is aimed to facilitate employees’
understanding and learning of their roles
and the responsibilities and obligationsof each rank, as well as appreciating andpracticing “conduct of high value”. In
addition, a variety of training programs
are offered for them to acquire the abilities and skills required by each business
unit. In particular, during rank based anddivisional training sessions, employees
act as trainers to conduct training moreclosely tuned to actual business situations. This is aimed to create individuals
and an organization that reflects theunique characteristics of Toppan. In fiscal
2004, some 3,000 employees participated in rank based and optional training
programs sponsored by the head office
and a cumulative total of over 13,000
took part in various training programs,
including those held by divisions anddepartments.
Toppan is also using e-learning todevelop the abilities and skills that are
required by all employees. So far, it has
implemented education in the basics ofenvironmental conservation and information security. Toppan also provides the
DTP (desk top publishing) Expert Certifi-

cation Course and other programs primarily designed for the staff of the sales
divisions to enhance the capabilities ofindividual employees.
Synergy of Human Resource
Development
In fiscal 2004, Toppan selected ‘integrated strength enhancement’ and ‘total
quality assurance’ as important themes
for the entire company. These themes
were pursued in the development andfostering of human resources. In addition
to the continued implementation ofextensive job rotation including horizontal rotation, some newly recruitedemployees were rotated between thedivisions/departments in Tokyo and local
cities in order to acquire well-balanced
knowledge and skills in wide-ranging
areas. In the sales and technology development department, rank based training
was conducted for new employees,
middle management staff and department and section heads to strengthen
the unity and synergy of divisions anddepartments. (sP.71)
Moreover, Toppan instituted an Integrated Sales Strength Commendation
System to recognize to proposals andperformances made based on the Company’s total strength. It is now taking measures to further enhance this advantage.

In the future, Toppan will monitor thedevelopment of human resources at eachdepartment and department throughdeliberation at the Human Resource
Development Committee, which was set
up in fiscal 2004 to strengthen the pivotal functions of human resource development. While the effects of rotation areverified and follow-up measures aretaken for the participants, the synergy ofcompany-wide training and divisional
training will be reinforced in order todevelop human resources more effectively. The Company will also offer job
opportunities that are more finely tuned
to each individual’s career visions.

Open Recruitment
Toppan offers employment opportunities
in spring, autumn, and also at othertimes of the year. In fiscal 2004, theCompany took new approaches torecruitment including interviews in casual
wear and the adoption of hiring standards based on behavior characteristics
in order to draw out the innate merit ofeach person. Toppan also held a recruitment briefing in China and is continuing
its internship program. (sP.71)

Toppan’s Human Assets Development Program
Rank based training
Creating Value through Actions
OEarning the trust of customers
OStrengthening businessfoundations
OFulfilling corporate responsibility
OStrengthening organization
OImproving corporate value

ONew department manager
training
ONew manager training
ONew supervisor training
OOJT Brother/Sister training
ONew employee training
ORecruit training

Manager development training
Selective department manager andassistant department manager training

Department based training
Abilities and Skills
OKnowledge and information skills
OTechniques and know-how
OCommunication and learning
abilities
OAbility to identify and formulatetasks
OAbility to accomplish tasks
OBasic skills
Toppan is constantly aware of its goals and issues anddefines people who are able to act proactively as humanassets, considering them to be valuable assets of theorganization.

Executive business school

Understanding, learning and acquiring the requisite skills and abilities foreach rank (including roles, responsibilities, and obligations)

OAssistant manager training at eachdepartment
OMid-career training at each department
ONew employee training at eachdepartment
Toppan Business School
OLearning programs for different
skills and abilities
OTraining, research for manufacturing departments
OTraining for sales departments

Special Needs Training
OEnvironmental education,
information security
OOverseas study

Individual Training
OTraining in each division andat each work site
Training for all Employees

Acquiring the skills and abilities required at each business division and department

Merit Based Personnel Policies/Fostering, Developing and Utilizing Human Resources37Leveraging Human Resources
People are the most precious assets of a company. Toppan provides a working environment in which the employees
can work with great enthusiasm. In the future, the Company will seek more diversity to leverage the talents of adiverse range of people.

Leveraging Diverse Human
Resources
Promotion of Female Employees
In the new appointments announced on
April 1, 2005, Toppan appointed more
female employees as managers andsupervisors. There are now more than 80
female managers and supervisors in the
Company. (sP.71)
Toppan has also instituted various
measures to eliminate gender-related
issues and set up sexual harassment
consultation channels. In the future, theCompany is preparing to organize afemale-only team to respond to the customer’s needs from the viewpoint andsensitivity of women.
Utilizing Experience and Skills
Toppan launched its Professional Employee
System as a measure to utilize experienceand skills amassed by the staff members
over long periods of service. As of theend of March 2005, a total of some 570
people are denoted professional employees. They are actively utilizing theirknowledge, experience and human connections in their current positions andare also valuable assets providing links to
the next generation.

Further, human resources are being
leveraged on projects promoting important themes for the Company. In fiscal
2004, Toppan assembled some 20 veteran staff members who have accumulated long experience and deep
knowledge from business units all overJapan and launched a new project tothoroughly minimize waste on a company-wide scale.
Opportunities for Self-Promotion
In fiscal 2004, Toppan started the Challenging Job System in which employees
and managers in the fields of sales, technology and administration are allowed toregister and file applications regarding
their careers. Moreover, business opportunities and chances for individual
employees’ career development are being
matched-up through an open recruitment system set up throughout the company.
Leveraging Human Resourcesamongst Group Companies
Some 100 people are rotated annually invarious business units in Toppan. In addition, dispatches and transfers of staff
members are carried out among groupcompanies. Although the number haschanged from year to year due to reshuffling on a business-wide basis, in the past
three years, an average of 80 people ayear have been transferred between
Group companies in order to more effectively leverage human resources.
Temporary Staff
As of the end of March 31, 2005, Toppan
has placed some 360 people in the forefront of businesses, including professional and general jobs, through thetemporary staffing operations of Toppan
Human Information Service, a subsidiaryspecializing in human resource development.
Employing those with Disabilities
In 1993, Toppan founded Tokyo Metropolitan Pre-Press Toppan, a third sector
entity jointly formed with the Tokyo Metropolitan Government to employ people
with disabilities. In fiscal 2004, thosewith disabilities accounted for 1.83% of
the total work force in the Company.
(sP.71)

Supporting the Fostering of the Next Generation and Work-Life Balance
In accordance with the Law for Measures
to Support the Development of the Next
Generation created in July 2004, Toppan
formulated an action plan and announced
it in April 2005. Under a new registration
system, which will take effect in the near
future, the Company will implement thisplan aiming to obtain the official certification of the Director of the Labor
Bureau.
In the meantime, as well as participating in an external research group inorder to aggressively promote work-lifebalance, Toppan has set up a project in
the Company to consider work-life balance in total and to take concrete measures.

38

CSR REPORT 2005

Specific measures under consideration:• Educating managers•Allowing employees on maternity leave
to participate in training• Establishing information systems
Toppan has also responded to therequirements of laws and rules formaternity leave and nursing leave in atimely manner by introducing easy-toapply systems for employees. In the
future, the Company will promptly
launch effective systems in response to
the revisions of labor-related laws andrules. (sP.71)
Toppan also holds the Good Life
Seminar as part of the life design support initiative undertaken by the Toppan
Group Fraternal Benefit Society.

Along with 30 member companies including
Shiseido Co., Ltd. and IBM Japan, Ltd., Toppan
supports the Work-Life Balance Research Group.
In 2005, the Group stepped up the school children
support program and organized children’s study
tours on many occasions. As part of this program,the children of the employees of the researchgroup’s member firms visited the Toppan Printing
Museum and experienced working in the Printing
Workshop.

Social Report
Respecting and Leveraging Human Assets

Realizing a Safe and Secure Working Environment
Toppan recognizes a working environment that is safe and secure for its employees is not only a social responsibility
but also a prerequisite for improving productivity. Consequently, the Company goes to great lengths to assure
safety and security beyond mere compliance with relevant laws and regulations.

Occupational Safety and HealthToppan has been making every effort toeliminate workplace accidents by forming the Safety and Health Committee.
Specifically, it has set up the Safety and
Health Subcommittee as part of its TPM(Total Productive Maintenance) activities
seeking to increase the synergy of production activities and safety and security
measures. In addition to the seven steps
prescribed in TPM, Toppan has taken
measures specifically designed for safety.
The Company is also conducting safetyassessments that go a step further than
anticipating danger and improving
unsafe facilities. By carrying out proactive safety checks, Toppan is seeking toeliminate the root causes of workplace
accidents by installing the necessary
equipment and making improvements
in cooperation with the technology
department. (sP.71)
In order to prevent and respond to fires,
Toppan has organized the fire response
squad in alliance with, and under theguidance of Toppan Security. The teamhas recorded high scores in Self-Defense
at Fire Training Competitions.
In the future, the Company is planning to organize a National Safety,
Health and Fire Prevention Council to

Review of Measures for Employees
Following Mandatory Retirement

Health Management andImprovement Activities
Toppan supports the health managementof employees through the Toppan Group
Health Insurance Union and the Toppan
Group Fraternal Benefit Society. In fiscal
2004, as in other years, 100% of employees received an annual medical checkup.
Toppan also has contracts with 500 locations across Japan and the number of
employees using these fitness facilities isalso rising.
Mental HealthToppan has committed itself to employees’ mental health management by setting up consultation rooms on mental
problems in association with the healthinsurance union (clinic), thereby raising
the managers’ awareness and educating
employees to aid with prevention. In fiscal
2004, the Company appointed dedicatedstaff to deal with mental health issues at
the Personnel & Labor Relations Divisionat the Head Office. In fiscal 2005, it is considering setting up a dedicated unit andhiring a psychiatrist.

Labor-Management Partnership
In keeping with the perception that laborand management are partners in sharedideals, the Company is tackling various
problems and holding a range of events incooperation with the labor union. For
instance, Toppan holds business councils
as forums to discuss wide-ranging issues
related to labor and management andmaintains a special committee to exchange
views on the wage system, working hours,
welfare and many other subjects.
In the future, the Company is planning
to reform the flexi-time work schedule toallow it to be more easily managed inline with business units and job functions. The Company will review not only
the system itself but also the method of
operation. Meanwhile, the Committee
for Reducing Working Hours, which isorganized by labor and management,
will continue to address issues relating to
improvement of productivity and reduction of working hours.
In addition, Toppan is coordinating
overall activities of the health insurance
union and the Toppan Group Fraternal
Benefit Society within the framework oflabor management projects to bringabout more effective and efficient
employee welfare systems.

The Mental Health System (draft)
Operator (Safety and Health Section of the Personnel & Labor Relations Division at the Head Office)Formulation andannouncement ofpolicy and measures

Industry doctor
supervising mental healthToppan Group Health
Insurance Union

Educationand provisionof information

General affairs department ofeach business unit
Provision ofInformation

Industry doctor and clinic staff(resources in the business unit)
Coordination
and Advice

Supervisor
Consultation

Consideration
for working

Employees

Health guidanceand consultation

Cooperation

AdviceConsultation

Resources outside of the business unit
(psychiatrist and counselor)

Education

Education andprovision of information

Toppan is reviewing measures taken
for employees following retirement(retirement benefit plan). By building
a point-based retirement benefit plan
which reflects not only the length ofservice but also the degree of contribution made to the Company, it ishoping to provide long-term incentives
for employees. Furthermore, Toppan isconsidering phasing in an increase of
the current retirement age of 61 to
65 and reforming the wage system
including the pension plan. The Company will also clarify re-employment
screening standards.
Toppan also supports the Friendsof Toppan Society, a fraternity organization of retirees.

promote safety and health initiatives on
a company-wide basis.

Leveraging Human Resources/Realizing a Safe and Secure Working Environment

39

Contributing to the Traditions and Development ofPrinting Culture and Sharing Impressions
Aiming to contribute to shared and fulfilling lifestyles, Toppan recognizes that communicating printing as a culture
is a societal duty. Futhermore, it is fully involved in promoting cultural operations and in the support of culturalactivities.

Printing Museum
The Printing Museum was opened in
October 2000 as a way of sharing thehistorical significance of printing and thetremendous contribution of printing to
the development of human civilization.
There have been over 150,000 visitors to
the museum since its opening.
The public can visit the General Exhibition Zone in the Main Exhibitions Roomyear round, as well as Temporary Exhibitions held several times annually. The
museum also includes the Printing Workshop, VR (virtual reality) theatre, specialized library, and museum shop. The
Printing Workshop is used as an area foreducation and training, and has beenutilized by over 150 institutions andorganizations including, junior schools,
technical colleges and companies.
In fiscal 2004, the Printing Museum
held the Seeing and Seen: Variations in
Depiction between Japan and Foreign
Lands Exhibition—an Exhibition to Markthe 150th Anniversary of the Opening ofJapan’ and other commemorative exhibitions. At the Printing Workshop it also
launched ‘Summer Holidays Experience
School’ and ‘Making a Book Whilst doinga Quiz’ activities for children.

Englishmen sightseeing in Edo. Shown at the Seeing
and Seen: Variations in Depiction between Japanand Foreign Lands

40

CSR REPORT 2005

Cooperation with the Cheongju
Early Print Museum in the Republicof Korea
In September 2004, the Print Museum
signed a mutual corporation agreementwith Cheongju City Early Print Museum
in the Republic of Korea. The Cheongju
Museum, which opened in 1992, specializes in ancient print technology. It is
located in the historical site of Heong
Deok Temple where the ‘Analects of
Paekun,’ the highly respected Korean zen
buddhist of the late 14th century, wasprinted using the world’s oldest metal
types.
In the future, the two museums will
lend collections to each other andexchange researchers for academic study.
The Cheongju Museum will provide thePrinting Museum with research materials
on the casting technology used to fabricate metal types. Based on this information, the Print Museum is planning tocarry out research into metal type printing performed in Japan and type printing
technology developed in Asia.

The Development of the Printing
Industry

At the signing ceremony on September 3, 2004.
From right: Cheongju City Mayor Dae-Soon Han,
and the Chairman of the Cheongju Early Print
Museum Director Choi Chang-ho.

Chairman Fujita speaking at the Eighth World
Printing Congress meeting

Printing Museum URL:
http://www.printing-museum.org/

As an industry leader, Toppan has always
striven to modernize the printing industry and promote information culture in
Japan. Since 1995, Toppan Chairman &Representative Director Hiromichi Fujita
has spearheaded efforts to develop theindustry through his activities as thechairman of the Japan Federation of
Printing Industries.
In January 2005, the 8th World Print
and Communication Congress (WPC8)*
was held in South Africa under the auspices of the World Print and Communication Forum. Chairman Fujita of Toppan
Industry, gave a lecture entitled “New
Trends that Affect Japan’s Printing Industry” in his capacity as the chairman of
the Japan Federation of Printing Industries.
*The event was hosted by the World Printing Communication Forum. This forum was held to makedecisions regarding issues affecting the world ofprinting and to discuss the state of the printing industry responding to the modern age.

Social Report
Activities for Society and Culture

Supporting and Sustaining
Education Culture
Since 1989, Toppan has assisted The
Mainichi Newspapers Co., Ltd. and theJapan School Library Association as cosponsor of the Book Report Drawing
Contest, their annual drawing contest
to encourage youths to express theirimpressions of books through drawing.
In 2004, the 16th holding of this competition garnered over 47,4592 picture
entries from 7,076 schools.
In 1936 Tokyo Shoseki Co., Ltd.
opened The Textbook Library, the firstsuch institution in Japan. It now houses
about 150,000 textbooks, the largest
collection in Japan. Every variety of textbook is represented, from the very newest editions to antique teaching materials
from the public school district schools
and private temple schools of the Edo
Period. Researchers, students and thegeneral public are all free to browse thecollections. No admission is charged. In
1984, with the aim of contributing to theeducational world, the Tosho Education
Award was established. Every year, thelibrary selects the best essay on teachingfrom many submissions and honors thewinner. The winning essays are publishedfor Japan’s teaching community.

Prize ceremony for the 16th Book Report Drawing
ContestToppan Hall
Toppan Hall is a concert hall for classicalmusic built in commemoration of thecentenary of Toppan’s foundation andopened in 2000. The hall is a classic concert hall with 408 seats and, since its
opening, has been holding around 40
concerts every year based around theconcept of ‘sharing impressions’. Morethan 180,000 people have attended
these concerts.
Toppan Hall offers unique programs
including “Espoir” which is jointly
planned by the hall staff and the musicians themselves with a clear theme, andin which young musicians hold three
concerts to demonstrate their progressto the audience. Concerts and the “Lunch
Time Concert” featuring promising young
musicians also take place. In fiscal 2004,
Toppan Hall also started the ‘Espoir Special’ concerts to introduce young foreign
artists to Japan. Moreover, the Hall ishired out by around 140 events annually,
including the ‘Japan Music Concours
Preliminary Contest’.

The lunchtime concerts have an average attendance
rate of 92%

Contributions to Society throughMusic
In 1959, froebel-kan co., ltd. organized
the Froebel Boys Choir to foster young
men with refined sensibilities in a country
where boys choirs were relatively rare.
Since its founding, as many as 1,000
boys have passed through its distinguished ranks. The choir now has about
80 young vocalists, ranging from 3-year
olds to second-year students in middle
school. The boys give one annual performance, as well as special concerts, andappearing on television and commercials
and are always well received.
Further, Tokyo Shoseki is a joint sponsor of the Association of Children’s Song
Writers in Japan’s Nursery Rhyme CultureAward. From a viewpoint of handing
over Japanese culture to the next generation, the Company is working to raise
the level of children’s music.

Froebel Boys Choir

Toppan Hall URL:
http://www.toppanhall.com/
The Textbook Library

The barrier-free layout is wheelchair accessible

Contributing to the Traditions and Development of Printing Culture and Sharing Impressions

41

Activities for Contributing to Regional Society
As Toppan has business locations throughout Japan, it considers communication with local communities to be an
important activity. As well as its main business, each business location is contributing to local society with a wide
range of activities including volunteer work and support work in areas afflicted by disasters.

Harmony with Local Communities

Volunteer Activities

All of Toppan’s operational sites organize
activities to deepen their ties with thelocal communities in which they operate.
Most of the sites invite neighbors fromthe community to take on-site tours andmany hold annual beer festivals in July or
August. Other organized get-togethers
between employees and neighbors areheld to nurture friendships. These andother activities have made the sites popular destinations for local residents seeking relaxation and recreation. Needlessto say, Toppan employees also take part incommunity events outside the company.

Toppan supports employees who participate in voluntary activities through thevoluntary leave system. In fiscal 2004, an
employee, taking advantage of this leavesystem, joined the Japan Overseas Cooperation Volunteers organized by theJapan International Cooperation Agency(JICA). She was assigned to the environmental conservation project carried out
by the Sabah provincial government in
Kota Kinabalu, Sabah on Borneo Islandin Malaysia.
Making the most of knowledge andskills gained by working in a printing
company this employee supported theoperation of PR agencies, planned educational materials, reported, photographed,printed and proofread to heighten local
people’s awareness of the importanceof environmental conservation. She also
conducted environmental education
activities using materials she produced.
Her contribution was greatly appreciatedby the local community.
In the future, Toppan will continue tosupport employees who participate insignificant volunteer projects.

Gymnasiums and Multi-purpose
Facilities Open to the Public
The gymnasium and facilities at the
Itabashi plant (Itabashi Ward, Tokyo) areopen to the local community as well as
Toppan employees. The facilities are used
to host local sports events, rehearsals formusical ensembles (including employee
groups) and other functions that requirecommunity spaces of this type. The gymnasiums and facilities of plants in all
regions are also open to the local communities.

The ‘public green space’ within the compound has
been planted with some 5,500 trees and is a place
employees and the public are encouraged to visit.
(Toppan Koishikawa Building)42

CSR REPORT 2005

A meeting with local staff for the creation of anenvironmental information pamphlet.

Support for Areas Afflicted by
Disasters
Toppan donated 10 million yen to the
Niigata Disaster Relief Headquarters to
help those stricken by the Niigata
Chuetsu earthquake in October 2004.
Moreover, the Niigata Chuetsu Earthquake Victim Support Society, formed byvolunteers among Toppan’s employees,
collected donations in the Company andsent 10.89 million yen to communities
affected by the disaster. Donations werealso collected at the Charity page of theClub Bitway website of Bitway, the Contents Distribution Service operated by
Toppan.

The support for areas afflicted by disasters page on
the Club Bitway website.

Environmental Report
This year, ducks have again returned tothe pond at the Asaka plant.
Toppan considers the protection ofan ecosystem such as this to be
an important issue.

Overview of Environmental Activities
Toppan’s Environmental Activities

44

Overview of Fiscal 2004 Results and Environmental
Targets
Fiscal 2004 Results and Environmental Targets

46

Environmental Accounting

49

Environmental Management
Environmental Management System

50

Environmental Management Activities

52

Environmental Communication Activities

54

Environmental Conservation Activities
Preventing Global Warming and Conserving Energy

56

Waste Reduction and Promotion of Recycling

57

Pollution Prevention and Chemical SubstanceManagement and Reduction

58

Approach to Logistics

59

Environmentally-friendly Products & Environmentrelated Business
Development and Assessment of Environmentally-friendly
Products
60
Promoting Environmentally-friendly Printing Services

62

Efforts to Build a Recycling-oriented Society

63

Environmental Activities: Topics

64

Toppan’s Environmental Activities
Toppan is aware of the importance of the environment as a management issue and is promoting environmental
activities in all sectors of its business. Toppan’s environmental activities can be placed into two main categories:
the development and commercialization of environmentally-friendly products, and the reduction of the environmental
burden of production. The environmental burden caused by business activities is taken as the base of all activities.

Declaration on the Global
Environment

Overview of Environmental
Activities

Toppan’s Environmental Burden
and Environmental Impact

In 1991, Toppan established the Ecology
Center and assigned it the role of overseeing its environmental activities. The
following April, the Company laid out
the Toppan Declaration on the Global
Environment, a comprehensive environmental philosophy appended with explanations of methods to be used totranslate that philosophy into action.
Since then, the declaration has guided
the efforts of all employees of the Groupas they work together to advanceToppan’s environmental activities under
the leadership of the Ecology Center.
In September 2000, areas of the Toppan
Declaration on the Global Environment
were revised to reflect reformed management policies. The Environmental
Action Plan is reviewed on a regularbasis, and the Environmental Targets aretreated as an index of Toppan’s environmental management as the Company
forges ahead with its ongoing reforms.
(sP.46)
The Toppan Declaration on the Global
Environment will be completely revised
whenever social attitudes on the global
environment undergo a significant
change. The Company’s environmental
activities will be continuously improvedon every front.

Toppan has a broad business base, andeach of the products manufactured
brings with it a different environmental
burden. It is necessary to reduce thatenvironmental burden in accordancewith the life cycle of each individual
product while staying abreast of each of
the particular features of the Company’sbusiness activities and the resultant environmental burdens.
In order to achieve this, for each product group Toppan has established “environmentally-friendly product assessment
guidelines.” By acting on this assessment
guideline from the product planning anddevelopment stage, the Company aims
to conduct environmentally-friendly product development that is appropriate to
the environmental burden of each business area.
Toppan also compiles and ascertains
data on the environmental burden associated with its production activities inthree separate business fields and isundertaking environmental activities tailored to the environmental burden ofeach area.

In order to reduce the environmental
burden, it is necessary first to ascertain
the environmental impact of the Company’s overall business activities. At Toppan,
we compile data on the materials balance at each production center, based on
INPUT (materials and energy used)/OUTPUT (materials discharged as a result of
production) and conduct an impact
assessment of the various environmental
aspects of each business operation. The
Company establishes environmental targets based on those results, clarifies thepriorities and carries out environmental
activities, and verifies the results of those
activities.
Toppan’s business activities cover adiverse range so the effects on the environment are also varied and the Company aims to ascertain and compile details
regarding that impact in three businessfields: Information and networks, Living
Environment, and Electronics. (sP.76)

Toppan’s Declaration on the Global
Environment
1. Each of our employees recognizes the importance of global environmental issues
and endeavors to conserve the global environment.

Flow of Environmentally-friendly Products

Business
division

Planning and development ofenvironmentally-friendly products

Assessment
guidelines

Assessment of environmentally-friendly products

2. We actively promote energy/resource conservation and recycling as a means of conserving the global environment.

Application for environmentally-friendly products

3. We abide by the law and social order, striving to prevent environmental pollution.
4. Through our business operations, we actively support our customers’ activities toconserve the global environment.
5. In our research, we endeavor to develop
products and technologies that help conserve the global environment.
6. We implement corporate activities designed to further global conservation in
the context of an international society.
Established April 1992
Revised September 2000

44

CSR REPORT 2005

Ecology
CenterConfirmation of business division assessment

Registration of environmentally-friendly products
Registered data enteredinto database
Product manufacturing

Registration
application

Environmental Report
Overview of Environmental Activities

Environmentally-friendly Products in Each Business Field
Information and Networks
A business field that supports customers’ businesses
via the processing, management and operation of anarray of contents including images, text and audio.

Living Environment
A business field that provides products and services
that contribute to the creation of a pleasant life style,reflecting specific social needs, including those forenvironmentally-friendly products and services.

Electronics
A business field that provides high performance components in the semi-conductor and display field alongwith electronics products and services.

Recycled Vegetable Oil Ink
Printing ink and printed materials that substitute recycled vegetable oil for more than 70% of the soybean oil component.

GL Family
A transparent barrier film that does not use chlorine
based resin. Apart from being used in a broad rangeof packaging, including that for foods, beverages
and pharmaceuticals, the film is also used in solar
batteries and display materials.

Anti-reflective Film
An anti-reflective optical film that reduces theamount of plastic used in the material by 50% compared to our existing product range. The film is attached to the surface of the liquid crystal displays
used in cellular phones and PCs.

Major Environmental Burdens in Each Business Field
Total Energy Consumption
Non-production Business Areas
854,967

Electronics
5,054,693

LivingEnvironment
4,418,077

Total

15,630,174(Unit: GJ)

Information and
Networks
5,302,437

Effluent Discharge Volume
Total energy consumption
is the sum of electricaland thermal energy consumption, with little divergence seen between
the different business areas. Comparisons of the
breakdown of electricaland thermal energy, however, reveal that Information and Networks accounts for approximately
50% of thermal energy
consumption. Web offset
printing is characterized
by an environmental burden in which dry energy isused in order to make theink stick to the paper.

Non-production Business Areas
322,231
LivingEnvironment
1,440,692

Total

10,280,023(Unit: m3)

Information
andNetworks
1,212,941

Total Waste Output Volume
Non-production Business Areas
3,616
LivingEnvironment
95,492

Total

324,479(Unit: t)Information and
Networks
181,461

Electronics
43,909

Electronics
7,304,159

The Electronics field ischaracterized by the factthat total effluent discharge from this area
comprises 70% of overall
discharge. In the etchingprocess that uses chemicals to induce metal corrosion repeated washingis conducted. This highvolume detergent effluent poses an environmental burden, but after being rendered harmless via
processing at an effluent
treatment facility most of
the discharge is released
into the public waterzone.

Total PRTR Output
The Information and Networks field is characterized by the fact that waste
output volume accounts
for 55% of the overall total. Waste sheet paperand shredded waste generated in the printing andprocessing stage pose anenvironmental burden,
and Toppan views reductions in the amount ofwaste generated as a priority issue. However, it isworth noting that almost
the entire amount ofwaste paper generated isrecycled as used paper
products.

Non-production Business Areas
0.4
LivingEnvironment
725.0

Total

1,323.8(Unit: t)Information and Networks
541.2

Electronics
57.2

The Living Environment
field is characterized by
the fact that the total output of PRTR designatedchemical substances accounts for approximately
55% of the overall total.
A breakdown of amenity
based PRTR output shows
it comprises almost 100%by VOC including toluene, xylene and ethyl
benzene released into theatmosphere, and Toppan
is promoting the establishment of environmental
targets aimed at a reduction of such emissions on
a company-wide basis.

Note: Does not include figures for overseas operations and some independently operating subsidiaries. Total PRTR Output does not include dioxins.

Toppan’s Environmental Activities

45

Fiscal 2004 Results and Environmental Targets
Based on its Environmental Action Plan, Toppan specifies concrete actions to realize the goals of its Declarationon the Global Environment. Also each year the Company reviews and establishes Medium-term Environmental
Targets, Long-term Environmental Targets and Environmental Targets for the current fiscal year.

Environmental Action Plan andEnvironmental Targets
Based on its Environmental Action Plan,
Toppan specifies concrete policies for allof its businesses to achieve the targets of
the Declaration on the Global Environment. The Environmental Action Plan
specifies Medium- and Long-term Environmental targets and Environmental
Targets for the current fiscal year. The
Declaration on the Global Environment
provides the Company with a road map

for expanding its environmental activities
and encouraging employees to take anactive role.
The Company takes one fiscal year as
one cycle for its environmental activities
and reviews its environmental activities
within that time frame. Specifically,
Medium-term environmental targets arerevised and Environmental targets are set
for the following fiscal year.

Evaluation of Toppan’s Progress inEnvironmental Targets
Toppan laid out a total of 20 environmental targets for fiscal 2004 and undertook various programs and activities toattain them. As of the end of the year, 14of the targets were reached and 5 had
not been achieved.
Since fiscal 2003 Toppan has achieveda wide range of environmental targets for
reducing waste materials (final landfill volume) and chemical materials with a pri-

Environmental Targets and Fiscal 2004 Results
Toppan’s Declaration on
the Global Environment

1 Each of our employees recognizes
the importance of global environmental
issues and endeavors to conserve
the global environment.

2 We actively promote energy/resource
conservation and recycling as a means ofconserving the global environment.

Activities
Energy/Resource
conservation
Reduction of greenhousegases

Medium- and Long-Term Environmental Targets
By fiscal 2010 raise the environmental burden improvement ratio(net sales/CO2 emissions) by 20% (over the level in fiscal 2000)

Reduce landfill waste disposal by 90% by fiscal 2010 (from the level infiscal 2000)
Sorting waste & recycling Realize zero-emissions target in all domestic operational sites by fiscal
2010 through the effective use of industrial waste generated in
production
Comply with in-house control standards that embody the applicable
Prevention oflaws and regulations
environmental pollution
Communicate appropriately with stakeholders
By 2005, reduce VOC atmospheric emission by 90% from the level in fiscal
2001 (for the 12 operational sites emitting large amounts of toluene)
By 2005, reduce toluene emission by 90% from the level in fiscal 2001
Management of chemicals(for the 12 operational sites emitting large amounts of toluene)
Realize zero-emission of dichloromethane by the end of fiscal 2005

3 We abide by the law and social order,
striving to prevent environmental
pollution.

4 Through our business operations, we
actively support our customers’ activities
to conserve the global environment.

Participate in and operate the Green Standard Guideline for the Printing
Industry
Planning, research anddevelopment ofenvironmentally-friendly
technologies

Develop environmentally-friendly products and disclose environmental
information

Expand proposals on environmentally-friendly printing technologies,
products and services
Commitment to
Eco-creativity Activities
Expand environmental communication activities

5 In our research, we endeavor to develop
products and technologies that help
conserve the global environment.

Employee education &development
Social contributions

Enhance employee awareness on environmental issues and promote
corporate-wide activities to preserve the environment
Participate voluntarily in social activities and actively contribute to thecause of environmental concern

Comply with local regulations, international conventions, etc.

6 We implement corporate activities
designed to further global conservationin the context of an international society.

Conservation of the global
environment at overseas
operational sites
Establish environmental management systems in overseas production
plantsNote: Partially applicable to overseas subsidiaries. Not applicable to independent subsidiaries.

46

CSR REPORT 2005

Environmental Report
Overview of Fiscal 2004 Results and Environmental Targets

ority on VOC (toluene, dichloromethane),the development of environmentallyfriendly products and environment-related
businesses. However, in fiscal 2003 and2004 the Company did not meet targets
for reducing carbon dioxide emissions.

mental Targets,” (with an organizational
structure for the three new targets to be
developed by next fiscal year.) (sP.48)
A set of environmental burden improvement efficiency standards, known as the“Environmental Efficiency Guidelines,”
were introduced in the previous fiscal year.
Toppan has decided to review these guidelines to make them a measure of carbon
dioxide unit output in order to comply
with industry guidelines developed by theJapan Business Federation aimed at fulfilling the targets of the Kyoto Protocol.

Review of Environmental Targets
Toppan has made major revisions to its
Environmental Action Guidelines for fiscal 2005 based on a performance assessment of the environmental targets inplace in fiscal 2004. While consolidating
existing medium- to long-term targets,
the Company has also established three
new medium- to long-term targets.
Toppan aims to promote environmental
activities based on its 14 “Medium- to
Long-term Targets,” and 19 “Environ-

Environmental Targets for Fiscal 2004

Fiscal 2004 Results

Evaluation Reference
Page

Raise the environmental burden improvement ratio (net sales/CO2
emissions) by 9% over the level in fiscal 2003

Increased by 2.2% over the level in 2003

B

Reduce landfill waste disposal by 10% (from the level in fiscal
2003)

Reduced by 44% from the level in 2003

S

Increase the number of zero-emission sites recognized to 20

Certified Zero-emission sites increased to 20
r Sites with a recycle rate of over 98%: 21AComply with and review of in-house control standards in all
operational sites
Plants publishing site reports: expand to 12
Atmospheric emissions of VOC: Reduce by 80% (from the level infiscal 2001)
Atmospheric emissions of toluene: Reduce by 45% (from the levelin fiscal 2003)
Atmospheric emissions of dichloromethane: Reduce by 40% (fromthe level in fiscal 2003)
Relevance ratio to Toppan’s Green Procurement Standard: Increaseby 5 percentage points (over the ratio in fiscal 2003)
Improve LCA education and develop the LCA evaluation ofenvironmentally-friendly products in the Information & Networks,
Living Environment, and Electronics businesses
Register 3 more environmentally-friendly products(total: 73 products)
Sales from Environment-related Business: Increase to 57.0 billion
yen (10% over the level in fiscal 2003)
Sales from Environment-related Activities: Increase to 136.0 billion
yen (10% over the level in fiscal 2003)
Promote environmental communication by participating in
Eco-products 2004
Deploy recycling systems for Cartocan (paper-based beveragecontainers) in 15 plants in Japan
Educate some 5,600 employees in basic environmental education
via e-learning
Continue funding forestation activities and participation in theforest protection fund
Conduct in-house environmental audits in 2 plants in Asia and2 plants in the U.S.
Comply with local regulatory standards and prepare monthly
reports on environment-related information

Introduce and operate environmental management systems at
11 overseas production plants

Following an in-house audit, 51 operational sites have been
confirmed as complying with in-house control standards
Plants publishing site reports: 15 (12 reports)

sP.57

A

sP.52

A

sP.55

Not evaluated due to regular revisions—

Reduced 65% from the level in fiscal 2003

S

Reduced 63% from the level in 2003

S

Increased by 2 points over the ratio in fiscal 2003 (Offset printerpaper: total ratio: 24.7%)
Implemented in Living Environment and Electronics. On hold in
Information & Networks.
Implementation of training for LCA Adoption (July 30, 2004)
10 more environmentally-friendly products were registered(total: 80 products)
Fiscal 2004 results: Increase to 56.5 billion yen (9% increaseover the level in fiscal 2003)
Fiscal 2004 results: Increase to 151.0 billion yen (22% increaseover the level in fiscal 2003)

sP.56

sP.58

B

sP.31

B

sP.61

S

sP.60

B
sP.60–63

S

Presentation made at Eco-Products 2004

A

sP.55

Recycled toilet paper deployed in 13 plants (12 in fiscal 2003)

B

sP.63

Candidates to complete training: 5,895

A

sP.54

4.203 million yen donated to Eco-Future FundA—

Conducted in 2 Asian plants (completed in January 2005)
Conducted in 2 American plants(completed in April 2005)
Regular reports on environment-related information in theOverseas Plant Monthly Report
ISO 14001 acquired by 2 production plants (total of 7 plants)

A
A

sP.50

A

Valuation standard: S: Results achieved greatly in excess of targets; A: Targets achieved; B: Activities fully carried out but targets unachieved; C: Activities were insufficient

Fiscal 2004 Results and Environmental Targets

47

New Medium- to Long-term Environmental Targets
Environmental Objectives and new MediumEnvironmental Targets for Fiscal 2005
to Long-term Environmental Targets
Prevention of global warming through the development of energy saving measures
To reduce carbon dioxide emissions by 10%
compared to business year 2000 levels by
fiscal 2010

Reduction in carbon dioxide emissions:
By 4% compared to fiscal 2004 levels

Details of Specific Measures•Develop a methodology for proper energy management
by setting up management guidelines that demonstrate
the status of efficient energy usage at each division•Consider introduction of a gas turbine co-generation system•Switch to gas fuel from liquid fuelThe promotion of waste reduction and recycling
Reduction of unit waste generation
Establish targets for fiscal 2006

•Establish a system for ascertaining performance•Establish a system for ascertaining performance
Establish targets for fiscal 2006
•Confirm recycle processing operations by inspecting
processing contractor sites•Reduce direct final disposal volume by cutting the volume
Final disposal: Reduce volume by 10%
of waste generated
Final disposal: Reduce fiscal 2010 volume*1
by 90% compared to fiscal 2000 levels
compared to fiscal 2004 levels•Reduce the volume of residual processed waste by
selecting efficient intermediate treatment technology•Promote waste recycling by reviewing waste separation
To aim for the efficient utilization of industrial
waste materials generated in the production Expand the number of certified zero emission guidelines and making them into binding rules•Expand in-house treatment and recycle facilities along withstage, and the realization of zero emissions
operational sites*3: To 25
the pursuit of appropriate recycle partners
at all domestic divisions by fiscal 2010.
Prevention of atmospheric pollution via VOC emission restraints•Establish a system for ascertaining performance
Establish targets for fiscal 2006
•Introduce waste gas treatment facilities including solvent
recovery•Reduce usage levels of raw materials that include toluene,
Reduction of toluene emissions into theand switch to materials with low toluene content and
To reduce VOC emissions into theenvironment*4: 45% compared to fiscal
substitute ink
environment*2 by 80% compared to2004 level (and 90% compared to fiscal
fiscal year 2001 levels by fiscal 2010
•Introduce waste gas treatment facilities including solvent
2001 level)
recovery
Reduction of dichloromethane emissions into •Reduce usage levels of raw materials that include
the environment: Zero by the end of fiscal
dichloromethane, and switch to materials with low
2005dichloromethane content and substitutes
Contributing to the environment via the development and marketing of eco products
Sales based on “environmental business”:
The promotion of environmental business•The promotion of sales and marketing activities for61.7 billion yen (an increase of 7% comparedthrough expanded sales of environmentallyenvironmentally-friendly products via ISO 14001 operations
to fiscal 2004)
friendly products•Product development based on “environmentally-friendly
Expand the number of products registered as
product guidelines”
environmentally-friendly products: 14 new•Disclose product environmental data through the “Toppan
products (94 in total)
environmentally-friendly product label”•Newly implement LCA (Nishinihon Division, Hokkaido
Division) and upgrade LCA (Tohoku Division)
The development of environmentally-friendly
Expand LCA to amenity based regional•Project support for Toppan LCA implementation center
products and the putting into practice of LCA
business locations
from HQ•Intelligence gathering via participation in LCA related
forums and study groups•The establishment and operation of an LCA assessment
Implement LCA assessments as a topic ofsystem based on ISO 14001 at the Toppan TechnicalresearchResearch Institute
Implement environmental communication•Information dissemination via participation in
The promotion of environmental
following our participation in “Eco products
environmental forums, exhibitions, and lecturecommunication
2005”
presentations
Avoidance of environmental risk
The establishment and observance ofObserve in-house management guidelines at •Establish in-house management guidelines via in-houseappropriate in-house management guidelines all business locations, along with necessary
environmental monitoring and confirm the validity ofthat embrace regulatory controls
reviews
criteria measures
Implement soil investigations at business•Implement measures to remove the source of pollution in
Risk prevention of soil contamination
locations that track the use of specified toxic
cases where soil investigations confirm contamination,
substancesalong with removal and remedial actions
The maintenance of appropriate
Expand the number of business locations that
•Issue a “CSR report” and a “Site report”
communication with stakeholders
issue site reports: 20 business locations•Expand the number of learners in the environmental
The enhancement of environmental
Expand “e-learning” systems (Student base:education area by setting up an intranet “e-learning” system
education and the dissemination of
10,000 people at Toppan group companies)•Promote two way environmental communication via theenvironmental awareness to all employees
use of the intranet system “Toppan environmental link”•The implementation of in-house monitoring including site
Implement environmental monitoring at
inspections
overseas production centers: Taiwan and•Confirm establishment of Environmental Management
The upgrading of environmental
China regions
Systems through in-house environmental audit
management systems at our overseas
production centers
Monthly records of conformance to local•Activities aimed at acquiring ISO 14001 accreditation
regulatory guidelines and environmentally•Release periodic data related to the environment via
related data“Monthly reports from overseas business centers”
Expansion of material recycling of industrial
waste*1 Final disposal volume: Volume of direct landfills and residual landfills following intermediate treatment*2 Scheduled to be calculated based on industry “self imposed VOC substance” performance*3 Zero emission certified business center: A business center with a regeneration and recycling ratio in excess of 98%, and certified as an ecology center*4 Calculated based on performance at 11 plants

48

CSR REPORT 2005

Environmental Report
Overview of Fiscal 2004 Results and Environmental Targets

Environmental Accounting
Toppan introduced environmental accounting in fiscal 1998 as a tool for effective decision making in environmental
management. The Company began to include overseas subsidiaries in its environmental accounting from fiscal
2001 in order to expand the scope of the accounting and disclose more detailed information to stakeholders.
In 2004, partly due to the necessity of restoring contaminated sites, expenses increased 17%.

Environmental Accounting in
Fiscal 2004
Environmental Conservation Costs
The Company made environmental plantand facility investments of 3,691 million
yen in fiscal 2004. That was 33% lessthan in the previous fiscal year, as theCompany has almost completed a project promoted in recent years for the
introduction of plant and facilities forprocessing VOC emitted in the printing
and drying process. (The Company has
invested approximately 3,000 million yen
in this project since fiscal 2002.)
A major portion of the plant and facility investment made in fiscal 2004 wastaken up with expansions to effluent

treatment facilities in the Electronics
related product cleansing process andnewly constructed VOC processing facilities at Living Environment related production locations.
There were 13,746 million yen in costs
in fiscal 2004, an increase of 17% compared to the previous fiscal year. This was
based on remediation of contaminatedsoil and increases in depreciation costs
based on the increase in investment inenvironmental plants and facilities inrecent years.
Economic and Environmental
Conservation Benefits
As far as economic benefits are concerned, the Company earned profits of

9,826 million yen through the development and sale of new environmentallyfriendly products, an increase of 23%
compared to the previous fiscal year.
In terms of environmental conservation effects, carbon dioxide emissions
increased 2.9% in line with increased
overall energy consumption. The Company is however making progress in reining in increases in the ratio of carbon
dioxide emissions to overall energy consumption by making advances with suchmeasures as fuel switching. The Company will continue to make environmental investments with an emphasis on
global warming prevention measures.

Toppan Group’s Environmental Accounting for Fiscal 2004
Environmental Conservation Cost
Item

(Millions of yen)

Change(current term–previous term)

Fiscal 2004

Description of Major Contents

Investment Expenses Investment Expenses
3,559

10,169▲1,554

560

2,750

4,221

▲879

204

Cost for global environment conservation, such as global warming
prevention

381

645

▲327

20

Cost for adequate treatment and recycling of waste materials

427

5,302

▲348

336

(1) Total in-house cost
1 Pollution prevention cost

Cost for pollution prevention, such as atmospheric pollution prevention

2 Global environment

conservation cost
3 Waste treatment andrecycling cost(2) Upstream/downstream cost(3) Administration cost(4) R&D cost(5) Social activity cost

Cost for green procurement, containers/packages recycling, etc.
Cost for obtaining certification for environmental management systems,
maintenance, tree-planting at sites, etc.
Cost for research and development of environmentally-friendly products, etc.
Cost for donations, support, etc. for environmental conservation
organizations, etc.

458
50

1,100

▲180

226

83

698

▲49

▲69

(6) Environmental damage cost Cost for restoring damage such as soil contamination, and others
3,691

TotalsTotal investment in fiscal 2004
Economic Benefit
Item(1) Energy saving(2) Sales ofcommodities(3) Environmental
business(4) Contributions

Reduced amount related toenergy-saving
Sales of the waste fromplantsProfit related toenvironmentally-friendly
products
Contributions forenvironmental
countermeasures

3

▲6

1,317

1,317

13,746▲1,78386,625(Millions of yen)

Description of Major
Contents

5

Current
Term

Change(current term–
previous term)

151

125

2,077

296

9,826

1,835

1

Notes:
Entities covered: Toppan Group (please see page 66)
Period covered: April 2004–March 2005
(January 2004–December 2004 for overseas subsidiaries)
Total values may not match, as decimals were rounded up or down.

2,033
1,517

Environmental Conservation Benefit
Item

Description of Major Contents

Reduction

Environmental
Burden for
Fiscal 2004

EnergyTotal energy consumption (1,000 GJ)

995

19,418Water

Water consumption (1,000 m3)

286

14,984CO2 emission (1,000 t-CO2)
Emission of substances destructive
to the ozone layer (ODP-t)

25

878

▲1.03

3.60

Atmosphere NOx emission (tons)

▲5

219

SOx emission (tons)

▲3

64

0.046

0.059

Total water discharge (1,000 m3)

220

12,231

Underground penetration (water)(1,000 m3)

▲12

50

▲7

2,092

▲42

375

0

431

▲3

Emission of dioxins (ng-TEQ)

Water
and soilenvironments On-site evaporation (water) (1,000 m3)
Discharge of water polluting
substances (tons)
Waste

Total generation (1,000 tons)

Fiscal 2004 Results and Environmental Targets/Environmental Accounting

49

Environmental Management System
Toppan has established an environmental management system to enhance the efficiency of its environmental
activities and promote the use of the PDCA cycle as an underpinning to environmental action This section gives us
a detailed overview of Toppan s environmental management system

Toppan’s Environmental
Management
Toppan’s environmental management
relies on the operation of an establishedmanagement system that covers thesales, sales promotion and R&D departments in addition to the actual production plants. At one level, executives
conduct ongoing environmental management reviews to ensure that the
PDCA cycle, a core part of this system,
continues to improve the efficiency ofenvironmental measures. Meanwhile,data on the actual results of environmental measures are collected by the Ecology
Center in head office, evaluated andverified by the Chief Environmental Manager, and reported to top management.
After further reviews, the improvements
to the system are promoted throughout
the entire Company.
Characteristics of Toppan’sManagement System
Toppan’s environmental management
system is uniquely structured. At every
operational site, the Company’s PDCA
Cycle concept is put into practice irre-

spective of ISO 14001 certification. In
fiscal 2004 forty-nine production plants
and two research centers in Japan havebeen pressing ahead with their environmental activities to achieve the targets
set under the Eco-protection Activities
Plan.
Once each year, management confirms
and reviews the Company’s environmental activities to ensure their continual
improvement. The basic data collected in
the review help Toppan formulate its Environmental Policy, Environmental Objectives, and Targets for the following year.
Status for Obtaining ISO 14001
Certification
In June 2005 there were 41 Toppan
domestic business sites (29 systems) that
had obtained the ISO 14001 certification. Further, following Toppan CFI (Taiwan) Co., Ltd. and P.T. Toppan Sampoerna
Indonesia’s acquisition of the certification, there are seven certified overseas
business sites. This is not limited to only
production sites, but the pursuit of ISO
certification in research and operatingsites can be said to be a characteristic ofToppan. (sP.73)

As well as ISO 14001, Toppan’s Technical Research Institute has also acquired‘Eco-Stage’ certification from the Specified non-profit Organization R-ISO Environmental Management Research Institute(sP.64), and Toppan Logistics has ‘GreenManagement’ certification from the
EcoMo Foundation (sP.59). Toppan considers the acquisition of such third-party
certification to be a chance to consistently improve its environment management systems.

Eco-Stage Certification/ Technical Research nstitute

Overview of Environmental Management
Eco-protection Activities
ToppanDeclaration on
the Global
Environment

Legalrequirements
Environmental
aspects
Environmental
impactManufacturing and research sites
Environmental
policyEnvironmental
objectives

Eco-protection
Activity Plan

Environmental
activities

Progress review

Environmental
targets

National
Eco-Creativity
meeting
Chaired by
the Chief
Environmental
OfficerGreenpurchasing

R&D of Environmentallyfriendly products

Development system forenvironmentally friendly
products

Subject of
research

Review

Progress review
Achievement
Evaluation/review

Environmental
Targets
Targetedsales

CSR REPORT 2005

Sales activities forEnvironmental Business

National
Eco-creativity
Meeting
Total

Chaired by
the Chief
Environmental
Officer

Promotion system for
Eco-Creative Activities
Sales management(as required)

Revision ofMediumLong-term
Environmental
Targets

Sales/SP and R&D departments
Development
targets

Environmental
management
review by top
management(semi-annually)

Eco-Creativity Activities

LCA
evaluation50

Ecoprotection
Achievement
ReportAchievement
evaluation/
review

Review

Medium- andLong-term
Environmental
Targets

Eco-protection
committee(semi-annually)

Revision ofEnvironmental
Targets

Environmental Report
Environmental Management

Environmental Activities
Promotion Structure
In every Toppan production plant, R&D
department, sales department, and sales
promotion department inside and outside of Japan, the Company has set up
an environmental management system
under the control and leadership of the
President & CEO and the Chief Environmental Manager. The Ecology Center, apart of the Corporate Manufacturing,Technology & Research Division at head
office, is directly responsible for operating the system. The center works to instill
the environmental policies and environmental targets among the employees ofthe various divisions and production
plants, as well as to convey environmental information from the divisions andproduction plants back to top management.
The in-house Eco-protection Promotion System and in-house Eco-Creativity

Promotion System have been establishedto move the Eco-protection and Ecocreativity Activities at Toppan forward
efficiently (sP.72). These systems areadvancing under the direction of the
Ecology Center.
Many of Toppan’s Eco-protection Activities are launched independently at theplant level. Toppan plants convene theirown Eco-protection Promotion Committees, each with its own subcommittees toaddress specific issues. The Company’s
strong focus on energy-saving activities
has led to a considerable strengtheningof the Energy Subcommittees since thebeginning of fiscal 2003.
With regard to Toppan’s Eco-creativity
Activities, each division has establishedan Eco-creativity Promotion System todevelop environmentally-friendly products and environmental support businesses.

Reinforcing the Comprehensive
Strength of the Group
Starting in June 2003, Toppan has begun
reviews of its environmental management structure as a corporate group andorganizes the semi-annual Toppan Group
Environmental Meeting under the auspices of the Meeting with the Heads ofaffiliated companies. By confirming the
progress towards the environmental targets of each company and sharing environmental issues, Toppan is strengthening
its Environmental Risk Management
structure and preparing and implementing measures that utilize the comprehensive strength of the Group.
Furthermore, in fiscal 2004, the ‘Toppan
Group Eco Products Committee’ wasestablished and began operations in earnest with the aim of sharing each groupcompany’s environmental information andstandardizing product evaluation standards
in the environmentally-friendly products
and environment support businesses.

Environment Management Structure
President & CEO
Meetings with Heads ofAffiliated Companies
Toppan Group
Environmental Meeting

Corporate Auditor

Toppan GroupEco Products Meeting
Chief Environmental Manager

Directors at Head Office

Corporation Manufacturing
Technology & Research Division
Ecology Center

Related Divisions
at Head Office

R&D Departments

Sales and sales
promotion departments

Domestic and overseas
production plants
IFrequency: Semi-annually

National Eco-protection Meeting IMajor objectives: Reporting and discussing

National Eco-creativity Meetingachievements of environmental activities

Tokyo Eco-protection
Meeting

IFrequency: As needed
IFunction: Advisory meeting on
company-wide environmental measures

Environmental ISO
Secretariat Meeting

IFrequency: Annually
IFunction: Advisory meeting on
management of ISO 14001

IFrequency: Semi-annually
IMajor objectives: Reporting and discussing
achievements of environmental activities

Tokyo Eco-creativity
Meeting

IFrequency: Biannually
IFunction: Advisory meeting on
company-wide environmental measures

Environment ISO
Supervisory Committee

IFrequency: Annually
IFunction: Strategy planning committee for
ISO 14001 operations
IFunction: Promotion of Eco-creativity ofdivisions

IFrequency: Monthly in principle
IOperational administration ofenvironmental management system

Eco-creativity Promotion System

Energy Subcommittee

IFrequency: Monthly in principle
IFunction: Streamlining of energy use

IFunction: Planning, development andEnvironmentally-friendly Productevaluation, registration, qualification of
Development System at each Division environmentally-friendly products

Other Subcommittees

IEstablished at each site, depending onsite-specific environmental features(type, scale, etc.)

Eco-protection
Promotion Committee

LCA Working Group

IFunction: Execution of LCA of products

Note: Does not include some overseas subsidiaries and independent subsidiaries

Environmental Management System

51

Environmental Management Activities
op pan s DCA cycle is being fully implemented via each individual company s environmental management systems
and in-house environmental auditing. Furthermore, based on environmental compliance, in other words upholding
all regulations relating to the environment, in the event that an accident should occur, oppan is implementing
emergency response training.

In-house Environmental Audit
SystemToppan’s in-house environmental audit
system follows a two-stage screening
process: a document audit and an on-site
audit. The in-house environmental audit
team consists of provisional auditors of
the Environmental Management System
and in-house environmental auditors.
This team begins by inspecting and evaluating the structural status of systems,
the compliance with environment-related
laws and regulations, and the compliance with in-house standards at all theoperational sites audited (sP.72). Next,
the team compiles the In-house Environmental Audit Reports, a report specifying
any necessary improvements pointed out
during the audit, and submits it to theofficer in charge. The in-house environmental audits are reviewed within thesame fiscal year in order to raise the levelof compliance for the following fiscal
year.
Results of Fiscal 2004 Audit
In fiscal 2004, the in-house environmental audit team audited 51 operationalsites in Japan and compiled a list of 383
areas in need of improvement. To correctthese deficiencies, each operational site
is now following an Improvement Plan
that lists the required improvements andschedules deadlines for completion.
Toppan has confirmed the progress ofimprovement measures on 197 items at
15 operational sites through an in-houseenvironmental audit review. The progressand results of the remaining 186 improvement measures will be reviewed at thetime of the fiscal 2005 in-house environmental audits.
Local hearings and inspections are carried out every other year at overseas production plants in the Americas and Asia.
In fiscal 2004, local environmental auditing was carried out at two production
plants in Asia and two in the U.S. As aresult of examining the implementationand operation of environmental management systems with respect to: 1) theunderstanding and confirmation of compliance with local laws and regulations,2) the environmental impact on atmosphere and water; and 3) the daily control of energy and waste, the inspection
identified 29 items requiring further
attention. To improve the operational
conditions, the overseas plants have used
the same procedures employed under the
Improvement Plan for domestic plants.

Approach to Environmental
ComplianceToppan’s production plants comply withall environmental laws, regulations andagreements set by national and local
governments and communities. The plants
also comply with Toppan’s anti-pollution
guidelines, which are usually stricter thannational and local regulatory standards.
The compliance status at domestic
operational sites is reported to head
office in Eco-protection Achievement
Reports every April. Overseas operationsites, meanwhile, submit Monthly Overseas Operational Site Reports, and compliance at both domestic and overseas
sites is confirmed by in-house environmental audits.
Compliance in Fiscal 2004
In respect of all production sites Toppan
has confirmed that in relation to theatmosphere there were no problems at
any site but with regard to water, threeoperational sites (BOD: 2 cases; Phosphorous levels: 1 case) recorded contamination levels exceeding the regulatory
standards. The Company plans corrective
measures in each case, and Toppan alsoplans to continue permanent corrective

Review of the In-house Environmental Audit
In-house Environmental
Audit Report

A summary of activities conducted throughout the year to ensurecompliance with about 200 items for in-house environmental
auditing specified by the head office.

Document audit

A review of the in-house environmental audit report is conductedprior to the implementation of an on-site audit to clarify
environmental aspects at each site.

On-site audit(1) Hearings with executives and staff in charge of environmental
matters at the operational site, based on the Manual on
Hearings for the In-house Environmental Audit.
(2) Four-point evaluation (0, 1, 2 and 3) on applicable items, basedon Evaluation Standards for the In-house Environmental Audit.
(3) Verification of the state of environmental management via an
inspection within and around the operational site, based on the
Manual on Inspections for the In-house Environmental Audit.

Summary and evaluation of
results of the in-houseenvironmental audit
Improvement Plant forSpecified Issues

An in-house environmental auditing hearing.

Summary of issues in need of improvement, along with anevaluation score and general comments. Returned to theoperational site for feedback.
Description of a specific improvement plan in response to issues inneed of improvement, as pointed out by the audit. Submitted to thehead office upon confirmation by executives at the operational site.

In-house Environmental
Audit Reports

Delivered to the Auditor and the Chief Environmental Officer

Review of In-house
Environmental Audit

Conducted to assess progress and give appropriate guidance on
issues found in the audit to be in need of improvement.
In-house environmental auditing.

52

CSR REPORT 2005

Environmental Report
Environmental Management

measures in fiscal 2005 to prevent recurrence.
In terms of soil related cases, in fiscal
2001 there were two confirmed instancesof soil contamination exceeding environmental or municipal standards, and one
each in fiscal 2002 and fiscal 2003, all ofwhich were handled with remediation
steps. In fiscal 2004, soil contamination
exceeding environmental standards was
confirmed at the site of the former Fukuoka No. 1 factory and the Shiga factory.
(For more details on the background,removal and remedial actions related tothe site of the former Fukuoka No. 1 factory, please see Page 23, “CSR activity
topics.”)At the Shiga factory in Higashiomi City,
as a result of the self-imposed soil investigation conducted in the wake of land
alterations in line with the reconstructionof the factory, it was discovered thatchromium VI exceeded environmental
standards. The Company removed andbackfilled approximately 1,000m3 of contaminated soil, carrying out appropriate
processing and disposal in compliancewith Soil Contamination Countermeasures Law under the guidance of theauthorities.

Based on our experience with soil contamination at the site of the former
Fukuoka No. 1 factory, Toppan plans totake preventative measures against futuresoil contamination by implementing regular voluntary investigations of businesslocations where there is the possibility ofsoil contamination, and coming up witha response that complies with applicablelaws.
In terms of noise pollution, there was
one instance in fiscal 2004 of the authorities bringing to the Company’s attention
noise levels that exceeded regulatory
standards. The cause was noise as theresult of defective outdoor equipment,
to which the Company reacted by rapidly
imposing sound proofing measures, andmaking a full report to the relevant
authorities. The Company is aiming for
further noise reduction at Toppan’s production and business locations in suburban areas, and will continue to promotenoise prevention measures.
In fiscal 2004 Toppan was not subject
to any environmentally-related litigation,
penalties or fines.

Emergency Response
Chemical solvents are handled and used
on a daily basis at each operational site.
Some types of accidents that occur during handling and use pose the risk of soil
and water pollution, particularly those that
occur when the solvent is being transferred from tank trucks to tanks. Toppan
is now installing pollution-preventive
devices and preparing oil fences, sandbags, and other measures to prevent theoutflow of solvents in the event of leaks
or similar accidents at sites susceptible tohaving an impact on the environment.
Periodic drills are carried out to prepare the workforce for emergency action.
The procedural manuals are also regularly
evaluated and updated to ensure that theyremain effective for actual emergencies.

In case of chemical spillages in the truck loading
entrance, a pit has been dug to prevent the leakage
spreading around or even escaping the area.
(Toppan Electronics Fuji Co., Ltd.)The Parallel Development of Emergency Responses
At Toppan Printing Co., (H.K.) Ltd. drills
for use in emergency situations were videoed, as a way of promoting paralleldevelopment with other divisions, andspeeding up the spread of understanding to employees and other related staff.

Emergency drill video
prepared by Toppan
Hong Kong

Simulation of situationof accidental solvent
spillage during shipping

Employee immediately
reports to superiors andawaits further
instructions

Always in a state of
preparedness to makea rapid response to
emergency situations

Superiors rapidly relay
report to HQ

Goggles, mask andrubber gloves aredonned and the solvent
is disposed of

Final clearing up is also
conducted in a cautious
manner

The video also showed
responses in cases
where staff members
feel sick during thecleanup process

A metal drum is placed inside a special
polythene container to prevent spillage
while transferring waste ink(Toppan Interamerica Inc.)

Environmental Management Activities

53

Environmental Communication Activities
In order to make its environmental activities more fruitful, Toppan considers it important to spread awareness of its
environmental activities amongst the wide range of people related to the Group, starting with employees. Toppan
is developing various levels of environmental communication, including environmental education and integration
into local communities.

Environmental Education
To maintain and improve the quality andscope of its environmental activities,
Toppan recognizes that its employees
need to raise their level of awareness. For
this purpose, the Company provides asystematic range of educational opportunities to raise the environmental consciousness of its entire workforce, fromnew recruits to senior managers.
In fiscal 2002, Toppan introduced ane-learning system supported by webbased training. This system offers educational opportunities for all employees
without any constraints on time or place,and the network platform supports twoway communications for Q&A and otherforms of dialog-based learning. Thanks
to this system, employees can learn environmental issues effectively within ashort time. In fiscal 2005, leveraging thecharacteristics of this e-learning, Toppan
is implementing ‘ISO 14001 In-house
Auditor Education Training (2004 version).’Major Internal Communication
Activities
Formulation of Toppan’s
Environmental Logo
Every employee within Toppan must
share an awareness of environmental
issues if the Company is to fully understand its own impacts and promote comprehensive environmental activities. The
Toppan environmental logo adopted in
1999 is now printed on in-house publications, business cards, stationery, and othermaterials to remind employees of theconstant need for environmental action.

Toppan’s Environmental Logo
Toppan aspires to devote increasing attention to theglobal environment through its Eco-protection andEco-creativity Activities. The Environmental Logo expresses both the Corporate Philosophy and Conduct
Guidelines. Toppan’s environmental efforts and actions are symbolized as a seed that will germinate
and grow. The stalk shooting out of the seed symbolizes the “E” of ecology, and its two leaves represent
Toppan’s Eco-protection and Eco-creativity Activities.

Toppan Environmental Link
The Toppan Environmental Link website
was set up on the in-house intranet
in May 2001 as a channel for sharing
environmental information and raising
employee awareness on the environment. Links to environmental information and data on environmentally-friendly
products inside and outside the Company
are provided.
President’s Ecology Awards
Toppan newly incorporated the Ecology
Awards in its biannual lineup of President’s Awards as a strategy to stimulate
the environmental efforts of employees.
In fiscal 2004, the following three cases
were selected and received awards: ‘The
Thorough Promotion of Risk Communication Activities at Toppan Graphics Co.,
Ltd.’, ‘The Development of an Ethyl Acetate Recovery System at the Matsuzaka
Plant’ (sP.57), and ‘The Reduction ofWaste through the Launch and Commercialization of Biodegradable Plant Pot
Labels at the Hokkaido Division’ (sP.60).

Fiscal 2004 Results of Toppan’s Environmental Education
Training or Education

Contents

Number ofStudents

New employee training

General environmental education (introductory level)215

New supervisor training

General environmental education (intermediate level)

135

e-learning
Toppan Business
SchoolSelected training

Challenge school
Video library
In-house environmental
auditor training

Environmental issues surrounding corporations andToppan Group activities
Introduction of ISO 14001
Introduction to laws related to the environment
Introduction of LCA
Seminar to increase the level of ISO 14001 internal
auditors
4 courses related to the environment
2 titles related to the environment
In-house environmental auditor training program

5,895
16
20
21

e-learning

35
38
—
129

Toppan Environmental Link

54

CSR REPORT 2005

Environmental Report
Environmental Management

Disclosure of Environmental
Information
Communication with Local
Communities
The communities around Toppan’s plants
filed a total of 44 complaints and inquires
in fiscal 2004, indicating that many
stakeholders were inconvenienced. The
complaints dealt mainly with noise andodors, two forms of urban pollution.
While most of the problems were
promptly solved, several require further
efforts. Toppan will continue to makecapital investments in efforts to improve
facilities and deepen communication
with local residents.
Toppan recognizes the importance ofcommunicating with local communities.
In order to make clearer its responsibility
for the impact of its business activities on
the environment, with the momentum
from the launch of the PRTR law, theCompany thoroughly reviewed both theunderstanding of the current situation
through environmental assessment, andthe way opinions are exchanged withthird-parties through risk communica-

tion. Specifically, as well as presenting
guidelines from the head office, Toppan
shares information through holding ‘Risk
Communication Study Groups’ and is
implementing risk communication basedon the actual status of each businesssite.
In fiscal 2004, the Matsuzaka plant,
Toppan Graphics Kawaguchi plant andthe Fukuzaki plant, as well as Toppan
Container Co., Ltd. and the Saitama
plant were all involved in exchanges of
opinion with the local communities.
Publishing the Environmental Report
Toppan has been disclosing the environmental information in its Environmental
Report (re-named the CSR Report in2004) since 1998. Furthermore, in linewith the development of its global business, the same report has been available
in English since 2000. Since 2000
Toppan’s ISO 14001-certified sites havebeen issuing Site Reports, periodic communications directed to municipalities
and residents in surrounding areas(sP.76).

Participation in Seminars andHolding of and Presenting at
Environment Related Exhibitions
To promote a fuller understanding of theenvironmental efforts outside the Company, Toppan participates in a great many
lectures and seminars, including its own
programs and the seminars and conferences of trade and industrial organizations. Furthermore, presenting at andholding seminars, is allocated as a priority for Environment Communication
activities. In fiscal 2004, as well as presenting at the Eco-products Exhibition,
Toppan carried out an environmental
seminar roadshow throughout the Kansai region.
The CSR Report 2005 only presents environmental
performance data from the entire Group. It is possible
to obtain individual environmental performance datausing the CSR Report URL below.
In order to view Site Reports, please make requests
by email using the address below.
•CSR Report URL
http://www.toppan.co.jp/csr/report05/•Address for requesting Site Reports
eco@toppan.co.jp

Exhibiting at Eco-Products 2004
Toppan was an exhibitor at Eco-Products
2004 in December 2004. Four major
companies within the Group—Toppan
Forms Co., Ltd., Toppan Label Co., Ltd.
and Tokyo Shoseki Co., Ltd.—exhibited
their own environmentally-friendly products and explained Toppan’s Group-wide
environmental approach to interested
visitors.
Environmentally-friendly products wereseparated into the following three categories and presented. The categories are:‘woodland protection’, ‘atmosphere protection’ and ‘land protection (reducing
landfills)’. Quantitative results for eachenvironmentally-friendly product were
presented as they are used across Japan.
Moreover, the Eco-mini Plaza was opened
and environmental events were held.

The Toppan booth was designed to allow people
to gather under the large tree in the center‘Kinder Eco Clay (soft)’ a froebel-kan modelingclay which uses composite vegetable oils but does
not have the typical smell of oil-based clay greatly
impressed those who saw it.

Regarding the atmosphere, Toppan displayed
environmentally-friendly products that produce
only small amounts of harmful gases even after
disposal or burning

Making Christmas decorations from printing
trimming waste

Environmental Communication Activities

55

Preventing Global Warming and Conserving Energy
In fiscal 2004, Toppan was unable to achieve its CO2 emissions targets. However, by strengthening its energy
management structure clear results began to be seen from energy conservation methods. Promotion of theseenergy conservation methods will be continued and strengthened in fiscal 2005.

Energy Saving Activities
Basic Policy on Energy-saving
Activities
Toppan is constantly striving towards
more effective ways to use energy in aneffort to reduce greenhouse gas emissions, including CO2 (carbon dioxide)
emissions. To respond to Kyoto Protocol
targets for reduced CO2 emissions
Toppan has established the following
medium- and long-term targets:
By fiscal 2010, Toppan seeks to increase
its environmental burden improvement
index (sales/CO2 emissions) by 20% relative to the level in fiscal 2000.
The Company also set targets for eachfiscal year based on the medium andlong-term targets. To meet Toppan’s
overall targets for the year, every production facility sets individual targets per
basic unit of production value and per
basic unit of production volume.
In fiscal 2004, Toppan began activities
with the set aim of increasing its environmental burden improvement index by
9% but was not able to reach that target, realizing a result of 2.2%. The resultsof energy conservation, through strengthening and review of energy management
structures, did not spread to the reorganization of business sites through new
establishments such as the recognizationof production systems and implementation of environment preservation facilities. For this reason, Toppan is striving to
improve the basic production amounts ineach production site as far as production
units are concerned, and make improvements in the majority of business sites.
Examples of Energy Consumption
Measures
From fiscal 2003, Toppan has beenreviewing its management system for therationalization of energy use. Along with
its Energy Management Policy, the Company has appointed personnel to handle
energy management at each production
plant and, by establishing the Energy
Subcommittee (which in principle meets
each month), the Company is driving
energy saving activities.
Equipment management activities arealso being reviewed at each production
plant to ensure compliance with theEnergy-saving Law. Part of this effort
includes the Energy-saving review, a specialized review held each year to identify
and correct any problems. Wide-ranging
improvements were confirmed in energy
conservation items indicated in the previous fiscal year at 39 production plants
targeted as needing improvements inenergy management structure in 2004.

Energy Consumption

CO2 Emissions(1,000 GJ)

18,00016,00014,00015,090 15,630
14,152 14,607

12,000

700

652

669

683

2001

2002

2003

698

600

400

8,000

300

6,000

200

4,000

100

2,000
0

(1,000t-CO2)

800

500

10,000
By placing and sprinkling water onto the tops offactory roofs, radiant heat from the sun’s rays insummer is reduced, decreasing the burden on air
conditioning. (Kumamoto plant)

Energy Savings via Improvements to
Air Conditioning Equipment
At the Toppan Graphics Kawaguchi
plant, a production center in the Information and Networks field, the Company
has placed partitions between the ceilingand the printing machines in order topromote reductions in VOC emissions. By
preventing the flow of VOC from theinterior of the printing room, the Company has managed to increase the processing efficiency of its solvent recovery
equipment. By putting partitions into
place, the area to be air conditioned has
been reduced by 25%, and by replacing
facilities with two air conditioners capable of operating as stand alones it has
been possible to operate the air conditioners in line with production conditions. The effects of the improvements in
air conditioning facilities can be seen in
the successful reductions of 210 MWh inelectrical energy, and 644,000 m3 in gas
energy achieved by the Company. This
amounts to 1,438t when calculated as
CO2 emissions; equivalent to 3.3% of
total emissions from the Kawaguchi
plant in the business year for 2004.

2001

2002

2003

2004

(Fiscal year)

0

2004

(Fiscal year)

Note: Excluding certain overseas subsidiaries and independent subsidiaries. For calculating energy consumption
and CO2 emissions, the Company referred to the Ministry of the Environment’s Guidelines for Greenhouse
Emissions Calculations from Businesses. Detailed percentage data by type of energy is shown on page 74.

56

CSR REPORT 2005

Environmental Report
Environmental Conservation Activities

Waste Reduction and Promotion of Recycling
Through its skillful management of waste materials, Toppan has reduced its final disposal amount by 44%
compared to the previous fiscal year and increased the number of zero-emission sites to 20. Toppan will continue
to actively promote the reuse of waste as a recycled resource.

Waste Reduction Activity
Waste paper, a waste product derived
primarily from Toppan’s Information &Networks and Living Environment fields,comprises 72.4% of the total waste
generated by Toppan’s operational sites.
Waste acids (such as waste etchant fromplants in the Electronics field) and waste
plastics (from plants in the Living Environment field) also make up substantial
portions of the total waste generated.
As an incentive for improved waste
management performance, the Company has set a target to reduce its final
disposal (direct landfill disposal volume +landfill disposal volume of residues fromintermediate treatment) by 90% in fiscal
2010, relative to the level in fiscal 2000.
In fiscal 2004, company-wide efforts tothoroughly separate and recycle wastes
led to a 44% reduction in final disposal
relative to the fiscal 2003 level. This far
surpassed the 10% reduction targeted
for the year.

Total Waste Discharge and Final Disposal
Waste/Recycling Rate
■ Total waste generated ■ Final Landfill waste
Recycling rate (recycling amount/total waste generated)(1,000 tons)
(%)

500

91.0

93.1

94.4

95.4

314.7

318.7

321.6

324.5

400

100
80

300

60

200

40

100

20

0

16.8

14.0

10.5

2001

2002

2003

5.9
0
2004

Development of Zero-emissions
TargetReuse of Waste as Recycled
Resources

In a move to standardize its approach towaste reduction, Toppan launched activities to achieve zero-emission targets at anumber of plants selected as “zero-emission models” in 1999. Based on the
results achieved at these model plants,
Toppan began certifying “zero-emission
plants” in November 2001.
Toppan encountered obstacles inachieving its zero-emission targets when
external factors beyond the Company’scontrol began dictating the regeneration
and reuse rate (recycling rate). As a solution, Toppan reviewed its certification
criteria and redefined zero-emission
plants as plants with a regeneration-andreuse rate of 98% or more. The Ecology
Center in the head office certified 20
sites on the basis of these new criteria at
the Toppan National Eco-protection Meeting held in November 2004 (sP.74).

Two important tasks in the work toachieve zero-emission efforts are to use
wastes more effectively in-house and todevelop recycling through external communication. Toppan is committed toreusing the waste from each process
throughout the Company.

Cyclic use of waste plastics generated by businesssites as a recycle pallet. (Toppan Plastics Co., Ltd.
Koshigaya plant)

Waste Disposal by TypeType of Waste

DisposalAmount (tons)

Waste paper
Waste plastic
Waste acid
SludgeWaste oil
Waste alkali
Metal chips
Wooden chips
Cinders
Glass chips
OthersTotal

234,871
25,657
19,225
12,21010,405
8,680
5,221
2,602
2,473
1,173
1,963
324,479

Cyclic use of VOCs in emitted gas as recycled
solvents through reclamation and purification ofemitted gases with solvent recovery processing
equipment. (Matsuzaka plant)

Ratio
72.4%
7.9%
5.9%
3.8%
3.2%
2.7%
1.6%
0.8%
0.8%
0.4%
0.6%

Through the RPF (Refuse Paper and Plastic Fuel)system introduced in 1999, waste plastic and paper
is recycled as solid fuel. (Sagamihara plant)(Fiscal year)

Note: Due to changes in the definition of recycleamounts, data from previous years have beenrevised.

Preventing Global Warming and Conserving Energy/Waste Reduction and Promotion of Recycling57

Pollution Prevention and Chemical SubstanceManagement and Reduction
Toppan is working to reduce its burden on the environment and prevent pollution by complying with legal
regulations and establishing more stringent control standards of its own. Continuing from the previous fiscal year,
in fiscal 2004 Toppan continued to greatly reduce VOC emissions concentrating on toluene.

Pollution Prevention Activities
Toppan is now developing activities toprevent pollution and minimize the environmental burden of its production
activities. Through these efforts, theCompany will acquire an accurate pictureof the actual state of the various environmental burdens at each operational site.
The Company is working actively to
reduce its burden on the environment
and prevent pollution by complying within-house control standards (establishedby the Ecoprotection Promotion Committee for each operational site) evenmore stringent than the legal regulations.
Preventing Atmospheric Pollution
and Protecting the Ozone Layer
To prevent atmospheric pollution, Toppan
controls smoke and soot generating
facilities such as boilers and incinerators
by switching fuels and managing operations under appropriate combustion conditions. At the same time, the Company
has introduced VOC waste gas treatment
equipment for the thorough control of
atmospheric pollution prevention.
Substantial progress has been achievedin ozone protection. In March 1994,

Toppan abolished the use of specific
CFCs (chlorofluorocarbons) and 1,1,1trichloroethane, two ozone-depleting
substances mainly used in cleaning processes. Toppan regularly updates andreplaces the remaining refrigeratingmachines that still use CFCs throughout
the Company (two units abolished in fiscal 2004, 13 units currently in use).
Another solid achievement in ozone-protection for fiscal 2004 was a large 40%
reduction in the emissions of HCFCs(hydrochlorofluorocarbons), a family of
CFC-substitutes used in cleaning processes.
Preventing Water and Soil Pollution
Toppan reduces water pollution at its
plants by installing wastewater treatment
facilities designed to ameliorate the environmental burden imposed by specificproduction processes.
Toppan’s principal safety concern inmanaging its chemical solution storage
tanks is to prevent the leakage of fluids.
Walls have been constructed around thestorage tanks, and workers regularly
inspect the tanks and piping to detectcracks and other flaws before soil pollution can occur.

Toluene Emissions into the Atmosphere(tons)

8,000
6,676
6,000
5,763
4,000

Management and Reduction ofChemical Substances
Toppan has managed its chemical substances in conformity with the PRTR Law
since the law went into force in July
2000 (sP.75). Management systematically studies the status of chemical usage
and explores the feasibility of introducing
alternatives to improve compliance withenvironmental targets.
Fiscal 2004 Performance
In fiscal 2004, the Company successfully
achieved reduced emissions into theenvironment by 62% in 16 of the 18
specified chemical substances that are
subject to registration, and for which
there was evidence of emissions in theprevious comparable period. In particular, compared to the previous period, theCompany achieved a significant 63%
increase in reductions of toluene anddichloromethane emissions for which
environmental targets had been established. Toppan will continue to makeefforts in activities aimed at reducing theamount of PRTR designated chemical
substances in use and the volume emitted into the environment.

Dichloromethane Emissions into
the Atmosphere

50
5,349

(tons)

60
49.9

40
32.3
30

3,296

25.6
19.8

20
Gas emissions processing equipment(Fukuzaki plant)

2,000

0

1,232

2000 2001 2002 2003 2004 2005

7.4

10
0

2000 2001 2002 2003 2004 2005

(Fiscal year)

Note: covers operational sites that handle at least
1.0 ton annually58

CSR REPORT 2005

(Fiscal year)

Note: covers all sites

Environmental Report
Environmental Conservation Activities

Approach to Logistics
Toppan Logistics Co., Ltd. handles the distribution and logistics of the Toppan Group. The main environmental
challenge in logistics is to reduce the environmental burden caused by transportation. The introduction of, andoperations of environmental management systems and implementation of Ecodrive is being fully pursued.

Leveraging Environmental
Management Systems
Toppan Logistics is undertaking anddeveloping various activities to reduce
atmospheric pollutants, including CO2,
NOx, and PM emitted from company
trucks. Regarding the ISO 14001, as wellas the Kawaguchi (Saitama) site beingcertified in October 2002, it is planned
that the Nishigaoka (Tokyo) plant andsales division will also acquire it.
In October 2004, recognizing theTransport Division’s achievement withregard to environmental impact, it wascertified as a ‘Green Business’ by the
EcoMo Foundation.

Toppan is promoting mixed transportation between Kanto, Kansai, Chubu andKyushu, as well as promoting mixed
transportation within specified areas.
Toppan is also striving to increase theeffectiveness of loading by developingbases, and increase transportation efficiency.
On the other hand, as measures toreduce transportation distances, in fiscal
2004 Toppan introduced GPS systems tokeep track of the whereabouts of vehicles. During fiscal 2005 Toppan installed
GPS systems in 150 vehicles and is making plans to increase the efficiency ofvehicle allocation and routes. As a resultof these measures, CO2 levels in fiscal
2004 were 7.6% lower than the level infiscal 2002.

Operating the Environmental
Awareness Management System(LEMS)

Promotion of Ecodrive

By fiscal 2010, Toppan is aiming to
reduce CO2 emission levels by 10% fromthe levels in fiscal 2002 and is promoting
decreases in the number of vehicles used
and the distance traveled as well aschanging transport methods (modal
shift). Regarding the reduction of vehicles,

As part of Ecodrive activities, Toppan has
allocated increasing fuel consumption
efficiency by 30% from the fiscal 2002
level. The Company is carrying out workshops and practical training for drivers aswell as morning briefings and attachingeducational stickers to the vehicles.

Toppan has also begun the lateral spreadof Ecodrive activities into affiliated transportation companies.
Toppan’s Fuel consumption efficiency
in fiscal 2004 was 13.0% higher than in
fiscal 2002. In fiscal 2005 it is planned toincrease the number of affiliated transportation companies to 40 with 250
vehicles, while at the same time the threeyear plan calls for an increase to 100
companies with 1,000 vehicles.

Other Activities
Responses to the laws and regulations
pertaining to diesel fuel in eight cities
and Hyogo Prefecture is 100% completed, including affiliated companies.
Regarding waste products, as activities
to follow the completion of zero-emission, the ‘Waste Committee’ and its
members as an organization, are promoting turning waste into useful material. In fiscal 2004, Toppan succeeded insurpassing its conversion target of 65%,
achieving a 75.6% rate.

Fuel Consumption Ratio Improvement Activities (Company-owned transportation)
1. Ecodrive Committee (semi-annually)
2. On-site Training (semi-annually)
Compared with professional driver data
Realizing Benefits
3. Monitoring of progress (every day)
4. Feedback on problem areas (as necessary).
Indicate and train through individual
meetings

5. Public display of results (everymonth)
Publish results by month and individual
Confirmation of feeling of achievement
6. Motivation through awards
7. Confirmation of safety by all employees(every day)

Green Management certification sticker

Trends in Fuel Consumption Ratio
4.0

3.88

3.90

(km/3)

Trends in CO2 Emission Amounts
4.0

3.8

3.9

3.6

3.8

3.4

3.65

3.6

3.2
3.0

3.75

3.7

3.45

(t/1 million)

3.95

2002

2003

2004

(Fiscal year)

3.5

GPS system tracking the whereabouts of vehicles
2002

2003

2004

(Fiscal year)

Note: Calculated based on the Ministry for the Environment’s ‘Environmental Activities Valuation
Program’ (April 2002).

Pollution Prevention and Chemical Substance Management and Reduction/Approach to Logistics

59

Development and Assessment of Environmentally-friendly Products
The planning and development of environmentally-friendly products is carried out based on Toppan’s in-house
guidelines, which are compliant with ISO 14021. Furthermore, Toppan is striving to quantify the environmental
burden through its ISO 14040 compliant LCA procedures. Each Group company has introduced Eco-products
standards and is playing a role in the planning, development and assessment of environmentally-friendly products.

Toppan’s Basic Thinking on
Environmentally-friendly Products
Toppan plans and develops its environmentally-friendly products in accordancewith the environmentally-friendly product management flow described on page
44. The design and development procedures conform with a 14 point setof Environmental Evaluation Standards
Guidelines developed independently by
Toppan based on ISO 14021 standards.
Each division carries out its own evaluation, and the Ecology Center performs a
final inspection to ascertain whether thedeveloped products meet all the criteria
for registration as environmentallyfriendly products. Only products thatpass the final screening can beregistered as environmentally-friendly
products.
In addition to adding environmental
labels to clarify the features of its environmentally-friendly products, Toppan
has publicly disclosed its 14 Environmental Points to ensure accountability. 80
environmentally-friendly products wereregistered as of the end of March 2005
(sP.77).

EPOP
An electronic POP made with safe materials. Solder
around the board does not use lead.

Biodegradable plant pots
Produced using biodegradable plastics which are
broken down by microbes in the soil.

Plastic clips
Clips used to seal pouches are made using recycled
PET. This saves on natural resources by reducing theamount of material.

Jar Plus
Receptacle made with specially constructed plastics
to reduce the amount of plastic used.

Toppan’s 14 Environmental Points and Environmental Considerations
Life Cycle
Stage

ISO 14021
Environmental
Labeling Type II

Recycling rate

Toppan’s
14 Environmental Points
for its Environmentallyfriendly Products
1. Use of safe
materials

The Company will not use substances banned by industry organizations or substances that may
result in the contamination of any of the materials used in the Company’s products withenvironmental hormones.

2. Use of recycledmaterials

Toppan will not produce products from recycled materials that do or may containenvironmental hormones or substances banned by industry organizations.

Products
Resource reduction 3. Resource-saving
and
4. Reduced energy
Distribution
consumption in
production
5. Use of recovered
Recovered energy
energyReduced solid
6. Reduced solid
waste
waste
Energy-saving

7. Energy-saving

The consumption of resources is reduced during the materials production and logistics processes.
The consumption of energy and water is reduced during the production and logistics
processes.
Products are manufactured with surplus energy or energy recovered from waste materials.
The generation of solid waste is reduced through modifications of the design process, productdesign, and packaging. (By products reused in processes are not included in this category.)
Energy consumption is reduced during product operation.

8. Reduced release of
Products release the lowest possible levels of chemical substances.
chemical substances

Use
Long-life products

9. Long product life

Product lifetimes are extended by improving durability and adopting scalable designs.

Reusable/Refillable

10. Reusability

Products can be reused or refilled for their original or related purposes Systems andinfrastructures are provided for collection and reuse.

Recyclable

11. Recyclability

Systems and facilities are provided for product recycling. Recyclable parts are indicated as such.

12. Suitability fordisposal

The materials used discharge the lowest possible levels of harmful gas during incineration.
Landfill waste is carefully treated to prevent all forms of soil contamination.

Easy detachment
design13. Easy separationand disassembly

Degradability

14. Biodegradability

Product designs enable easy separation and disassembly. The parts and materials used support
product recycling.
The biodegradable or photodegradable materials contained in the products break down
naturally and are assimilated back into the environment.

After use

60

Toppan’s Standards

CSR REPORT 2005

Environmental Report
Environmentally-friendly Products & Environment-related Business

LCA Activities
In order to gain a quantitative grasp of
the burdens of its products, Toppan uses
LCA*1 methodology in line with ISO
14040 in environmental impact assessment activities.
In fiscal 2004, in the Living Environment fields, the Company carried out anassessment of biodegradable film packaging materials using CO2 emissions, andconducted a comparison with polypropylene film packaging materials at the
Tohoku Division. In the Electronics business, Toppan also carried out a comparative assessment of CO2 emissions at theTechnical Research Institute, employing a
new manufacturing procedure for color
filters used in Liquid Crystal Displays
which revealed the environmental impact
produced as a result of the differing processes. The Company also established an‘LCA Sub-committee’, at the TechnicalResearch Institute with the goal ofacquiring ISO 14001 accreditation. As aresult, it can be seen that Toppan isincluding LCA assessments right fromthe very start with the R&D stage.
In fiscal 2005, the Company is implementing LCA at the Tohoku Division inline with the configuration of ISO 14001.

The Company also plans to introduce
LCA at other regional divisions that are
producing Living Environment products.
At the Technical Research Institute, theCompany carries out LCA assessment on
numerous products, and is accumulating
fundamental data on environmental
design.
Activities at the Tohoku Division
Toppan has implemented LCA regarding
biodegradable packaging at the Tohoku
division. In the early stages, there were
varying reactions to the basic thinking
behind LCA and in the commitment to
the project from the materials makers
that cooperate with Toppan on data
gathering. However, Toppan has now
improved communication with eachcompany by holding a series of discussions, and is now in the position torequest that each company continue todevelop LCA data. Toppan positions LCA
as an important criteria of environmental
impact levels in the choice of materials
and processing methodology in developing new products going forward, andaims to strengthening the systematic
implementation of LCA itself.

Activities at Group Companies
Toppan group affiliates are also contributing to the establishment of a recyclingoriented society through production
activities that place importance on thepreservation of the global environment.
From fiscal 2004, Toppan drew upon ISO
14021 to establish the ‘Toppan Group(TG) Eco Products Guideline,’ following
discussions with group companies. In
accordance with this guideline, eachmember company of the Toppan Group
has set up their own Eco-products Guideline, in line with the conditions in theirrespective industries. Toppan group companies are making efforts to develop,
produce and market environmentallyfriendly products based on this Eco-products Guideline at the same time as reinvigorating the environmental activities ofthe overall group by gaining accreditationfor environmentally-friendly products.

* LCA: Life Cycle Assessment

LCA Assessment Sheet
Establishment ofobjective andscope of study

Inventory analysis

Interpretation

Impact Assessment
Packaging materials using biodegradable film andink on which the Tohoku division performed LCA
analysis

LCA analytical software from the Japan
Environmental Management Association for Industry
used in LCA analysis’Environmentally-related publications’ from Tokyo
Shoseki Co., Ltd that play an important role inenvironmental education and other enlightenment
activities

Clay that uses synthetic vegetable oil and is easy on theskin. The clay is also odor free and can be disposed of in
regular flammable rubbish. froebel-kan co., ltd.

Development and Assessment of Environmentally-friendly Products

61

Promoting Environmentally-friendly Printing Services
Toppan provides its environmentally-friendly printing services to respond to the demands of society. Every process
is approached from an environmentally-friendly stance, from the initial design and selection of environmental inks
and papers to the latter stages of printing, binding, and processing.

Introducing GPN’s Order
Guidelines for Offset Printing
Services
As a member of the Green Purchasing
Network (GPN) (sP.31), Toppan minimizes the environmental impact of printing and provides printing services basedon the Guidelines for Ordering Offset
Printing Services. The Company applies
environmentally-friendly technologies at
every step in the process, from the selection of designated inks and papers tosurface processing, binding, and packaging. Many local governments and companies involved in green purchasing
activities have adopted these services.

be harmful to both life and the atmosphere. The Company has also commercialized a recycled vegetable oil ink madefrom used soybean oil collected fromschool cafeterias, restaurants and othersuch sources.
Toppan’s Environmentally-friendly
Paper
Printing paper is a commodity madefrom forest resources. Types of printing
paper in use today help conserve forest
resources: recycled paper, tree-free paper,and paper made from tree-thinnings, aswell as FSC certified paper.

Production and Plate-making
By digitalizing the entire process fromdrafts to plate-making, Toppan saves
natural resources and energy.
Using Environmentally-friendly Inks
Toppan has developed a soybean oil ink
that contains virtually no aromatics, aclass of organic compound thought toWaterless Printing System
In lieu of water, the waterless printing
system uses a silicone layer that repels
ink. This eliminates the need for dampening water containing
IPA (isopropyl alcohol), an organic solvent, and the resulting
discharge of liquid
waste.
Environmental-friendly Bookbinding
and Finishing Processes
Fragmentation-resistant hot-melt is anadhesive suitable for use on paper to berecycled. Besides offering strong cohesion, it can be completely removed fromprinted materials without fragmenting
during recycling. Toppan has also developed Eco-binding and other bookbinding
and manufacturing processes that confer
outstanding recyclability to boundprinted materials by eliminating the useof stitching (wire).

Toppan’s Advanced Technology•Color Management System (CMS): A computer-based color management technology for printing•Digital photography technology: A photographic technology that requires no film
•DDCP (Direct Digital Color Proof): A color proof technology that generates far less film at the platemaking stage•CTP (Computer to Plate): A plate technology that sends digital data directly to the printing plate

Environmental Considerations in Producing this Report
Toppan actively applies various environmentally-friendly technologies and methods in the printing of the Toppan CSR
Report.
The paper used for the cover page istree-free ‘Cotton Linter Pulp’. This is apulp refined from the short fibers of cotton used for clothing. As this cotton has
short fibers growing inside it, it was notsuitable for clothing use so those parts
have been used as materials for printing
paper.

62

CSR REPORT 2005

Environmental Considerations in the Toppan CSR Report 2005
Process

Specific Measures

Photography

Use of digital photography wherever
possible

Design andediting
Plate-making

Digital processes by DTP
Plate-making by CTP

Printing

Sheet-fed press waterless printing

Paper

Cover: 10% Cotton Linter + 90% nonchlorine bleached pulp papers
Main section: 70% recycled paper
Ink
Recycled vegetable oil made forwaterless printing
Bookbinding and Fragmentation-resistant Hot-Meltfinishing(EVA-base)Environmental Considerations
Elimination of filming anddevelopment processes (photographs
used in data form)
Reduction of mid-process materials
Elimination of films for platemaking
Reduction of IPA use
Elimination of waste fluids
Forest resource-saving andencouragement of forest nurturing
Resource-saving, use of recycledmaterials
Improved recycling efficiency

Environmental Report
Environmentally-friendly Products & Environment-related Business

Efforts to Build a Recycling-oriented Society
Toppan is fully aware of the importance of taking the initiative in the 3Rs (reducing, reusing and recycling) toachieve a recycling-oriented society. As well as developing products which can be recycled, Toppan is also involvedin a range of activities to develop mechanisms for recycling.

Cartocan Recycling
In April 2004, with the aim of contributing to the protection of the environment
and expanding supply and demand for
Cartocans Toppan established the ‘Conference for Spreading Paper Soft Drink
Containers that Protect the Environment’with 30 soft drink and paper companies.
Toppan took part in 10 events such as
the Eco-products Exhibition, and strove
to increase awareness of its activities.
Toppan’s Packaging Division established a system for the recycling into toilet paper of empty Cartocans in January
2002. The Cartocan recycling system salvages the paper from unwashed Cartocans and re-commercializes the recycledmaterial. ECO-GREEN, an environmentally-friendly toilet paper, is made fromabout 50% used Cartocans. Toppan purchased 1,486 cases (60 rolls a case) of
ECO-GREEN in fiscal 2004, making it thenation’s largest user of the product.

Cartocan Recycling System

Participation in and Cooperation
with Tree Planting Programs

Recycling must be earnestly adopted inevery part of life before a truly recyclingoriented society can be established. As
Toppan uses large amounts of printing
paper, it has been promoting a self-completing recycling system for printed
materials that encourages activities conducive to resource conservation.
Yet this is a system that can only bear
fruit if customers and paper manufacturers share Toppan’s goal of building a
recycling-oriented society. Discarded
printed materials recovered from consumers by paper manufacturers arerecycled into Toppan’s original printing
paper and redelivered to consumers in
the form of new printed materials.
The Chubu Division of Toppan is presently operating the printed material recycling system in collaboration with theTokai Co-op Consumers’ Co-operative
Federation, along with its member co-ops:
Meikin Coop, Co-op Gifu, Mikawa Citizens’ Coop, and Co-op Mie. During fiscal
2004, the system recovered 3,637 tonsof used paper, an approximately 26%
increase over the previous fiscal year.

In 1997, Toppan in collaboration with Oji
Paper Co., Ltd and Nissho Iwai (nowSojitz Corporation), established GPFL*1 a
joint tree planting venture aimed at producing hardwood chip in Victoria, Australia. (Hokkaido Electric Power Co. has
been involved in the venture from 2000).
Toppan is also a participant in joint
research related to the development ofmethodology for monitoring CO2 absorption in forests. From fiscal 2004, Toppan
has also been a participant in PPT’s*2
hardwood planting program in Tasmania,
Australia.
Since fiscal 1999, aiming to secure
paper and pulp resources for future generations, the Company has been enrolled
as a supporting member of Japan Overseas Plantation Center for Pulpwood,
which conducts study and research related
to plantations, in order to contribute to
the healthy economic development ofvarious regions overseas and the preservation of the global environment.

Used Cartocan
recycling bin

Paper
manufacturer(tons)

4,000

3,637

3,000

2,000

Reproduced
toiletpaper for
re-commercialization*1 GPFL: Green Triangle Plantation Forest Companyof Australia Pty. Ltd*2 PPT: Plantation Platform of Tasmania Pty. Ltd

Catalog Recovery at the Tokai Co-op
Separationfordisposal

OfficeEstablishment of a Printed
Material Recycling System

2,352
2,086

1,000

In GPFL, Toppan is aiming for 10,000 hectares offorest by 2006. In fiscal 2004, the Company
achieved 6,100 hectares.
2001

ECO-GREEN toilet paper made using recycled
Cartocans.

2,878

2002

2003

2004

(Fiscal year)

In PPT, Toppan has set a goal of foresting 7,500
hectares by 2014. From 2000 to 2004, theCompany had achieved 2,400 hectares.

Promoting Environmentally-friendly Printing Services/Efforts to Build a Recycling-oriented Society

63

Environmental Activities: Topics
Toppan independently
produces and publishes
Environmental Report
2004.

Environmental Improvement Activities at Overseas Business Centers
During fiscal 2004, Toppan implemented
in-house environmental audits at four
overseas locations, including Siam Toppan
Packaging in Thailand, Toppan Sampoerna Indonesia (TSI,) Toppan Printing Co.
(America), Inc. (New Jersey) and Toppan
Interamerica’s Atlanta plant. Beginningwith the configuration of environmental
management systems and their operation,
the audits mainly covered developments
in environmental performance improvements, including waste materials andenergy, and confirming the existence ofchemical material management systems.
Improvements were seen at each plantin areas where recommendations had
been made previously, and measures
were adopted to improve environmental
performance. In particular, TSI was evaluated for its forward looking environmental activities, and lateral development
carried out in Japanese domestic locations

through the “National Eco-guard Council.”
TSI acquired ISO 14001 certification in
November 2004, and has been fully
engaged on a company wide level withthe promotion, dissemination and development of environmental activities. During the review of the environmental
management system, the Company
implemented a variety of facilities based
responses. Regarding operational improvements, TSI also established a common
rule on separating waste materials at
each work station through a bold review
of 5S throughout the entire factory. As aresult, major advances were seen in theseparating of waste from each work station. The thorough implementation of 5S
activities has led not only to environmental improvements, but has also begun to
produce results on the safety and quality
levels as well.

Promoting Efforts Aimed at Acquiring ISO 14001 Accreditation Covering
the Entire Range of Business Activities from R&D through Planning,
Production and Sales
Fiscal 2004 was a turning point for activities aimed at acquiring ISO 14001 certification. Toppan built an environmental
management system covering the entire
range of business activities at four domestic manufacturing and sales bases concentrated mainly in regional centers. The
Company did not stop at environmental
conservation activities in offices and factories, as operations and staff worked
together along with the manufacturing
workshop to promote environmental activities covering environmentally-friendly products and services from the planning stage
through production to sales and marketing.
In May 2005, the Toppan TechnicalResearch Institute—the R&D backbone of
the Company—acquired ISO 14001 certi-

fication. The Technical Research Institute,situated at Sugito Town in Saitama Prefecture, features an environmental management system that subjects all products toassessment forecasts of their environmental impact at the R&D stage, and reflects
these results in research activities. LCA
methodology is also adopted, dependingon the research theme. The TechnicalResearch Institute acquired Eco-stage III*in recognition that LCA effective management has been incorporated into existing
operations.

The Company renews
its underground
effluent tanks, andincreases the use of
warning devices
against the possibilityof emergency situations
including leakages.
Toppan reviews
recovery methods for
waste ink. An example
of improvements tooperating efficiency,
while also preventing
ink splashing over tosurrounding areas.
Staff awarded“Winner’s Caps” inrecognition of theaccomplishments
achieved throughoutstanding activities.
(Lateral developmentof a system put into
practice at Siam
Toppan Packaging.)

Toppan’s efforts as a Member ofTeam Minus 6%
As a member of “Team minus 6%,”
Toppan promotes anti-global warming
measures. As one facet of our office ecoprotection activities, the Company ispromoting ‘Coolbiz’ at our Sales andAdministration divisions, making theannouncement via posters and display
boards posted at each business center
that give a run down of the movement.
Toppan has gone one step further at its
West Chugoku and Shikoku Sub-division,
looking to heighten the sense of participation by having all staff members wear
badges.

*A private sector standard that recognizes the degreeof progress in environmental management, including“green procurement,” and management at wastematerial contractors. This standard aims to complement ISO 14001, at the same time as, supporting thestage by stage development of environmental management in line with the scope of the organization.

Coolbiz badge

Registered Scope and Sites of Accredited Divisions
West Chugoku and Shikoku
Sub-division

Registered
Scope

Site

Kansai Commercial Printing
Sub-division/Kansai Securities
Printing Sub-division
Planning, production along withsales and marketing of businessprinting and securities printing(Takino plant received
accreditation in October 2002)

Tohoku Division

Planning, design, plate making,printing, processing along withsales and marketing of generalprinting and packaging(packaging materials)
Tohoku Division (including Sendai
West Chugoku and Shikoku SubKansai Commercial Printing Sub- plant,) Aomori sales office,division, (including the Hiroshima
division/Kansai Securities Printing Hachinohe sales office, Morioka
office,) Fukuyama sales office,sales office, Akita sales office,Sub-division, Hokuriku sales
Matsue sales office, Yamaguchi
office, Kyoto sales office, Osaka Yamagata sales office, Koriyama
sales office, Matsuyama sales
sales office, Utsunomiya sales
Toppan Display Oyodo plant.
office, and Kannabe Toppan.
office, Niigata sales officePlanning, sales and marketing,business management andproduction of business andpackaging type printed materials

Note: Scope of registration of integrated research sites: R&D of Printing Related Products and Related Businesses

64

CSR REPORT 2005

Hokkaido Division
Planning, design, plate making,printing, processing along withsales and marketing of generalprinting and packaging(packaging materials)
Hokkaido Division (including
Sapporo plant)
Chitose plant (including Chitose
sales office)Data and Additional Information

Basic Reporting Data
Corporate Profile

66

Group Profile
Economic Performance Data
Key Financial Data (Consolidated)

67

Corporate GovernanceSocial Performance Data
Conduct Guidelines

68

Information Risk Management

69

Green Procurement/Green Purchasing
Strengthening Product Quality Assurance

70

Hiring and Employment

71

Data Relating to Human Asset Development
Data Related to Leveraging Personnel
Application of Human Resources Measures
Workplace Health and Safety
Environmental Management Data
Organizational Structure

72

Environmental Accounting73

Eco-protection Data
Energy Type Ratio and Consumption

74

Promotion of Waste Reduction and Recycling
Preventing Pollution/The Management andReduction of Chemical Materials

75

Atmospheric Emissions
Environmental INPUT/OUTPUT Data by Site76

Environmental Communication
Eco-creativity Data
Development of Environmentally-friendly Products

77Basic Reporting Data

Corporate Profile

Group Profile

Corporate nameToppan Printing Co., Ltd.

Head office

1, Kanda Izumi-cho, Chiyoda-ku, Tokyo 101-0024 Japan
Phone +81-3-3835-5111

Established

January 17, 1900

President & CEO

Naoki Adachi

Number of employees(Nonconsolidated)

10,548 (end of March 2005)

Number of employees(Consolidated)

32,724 (end of March 2005)

Capital (Nonconsolidated)

104.9 billion yen

The Toppan Group comprises Toppan Printing
Co., Ltd. and 147 related companies (126 subsidiaries and 21 affiliates) engaged in a wide
scope of businesses of which 3 main fields are
Information & Networks, Living Environment,
and Electronics. The position of Toppan and its
affiliated companies with respect to thesebusiness fields is outlined below.

■Toppan Group Structure
Toppan Printing Co., Ltd.
Information & Networks
Manufacturing Companies
Toppan Display Co., Ltd.
Toppan Graphic Co., Ltd.
Toppan Graphic Communications Co., Ltd.
Toppan Seihon Co., Ltd. 16 other companies∗ Hino Offset Printing Co., Ltd. 2 other companies
Hamamatsu Toppan Forms Co., Ltd. 10 other companies
T.F. Company, Ltd. (Hong Kong, China) 8 other companies∗ Korea Toppan Forms Co., Ltd. (Republic of Korea) 8 other companies
Manufacturing and Sales Companies
Toppan Forms Co., Ltd. 2 other companies∗ Tosho Printing Co., Ltd.
∗ Tokyo Magnetic Printing Co., Ltd.
Toppan Printing Co. (America), Inc. (USA)Toppan Printing Co., (H.K.) Ltd. (Hong Kong, China)
Toppan Printing Co., (Shenzhen) Ltd. (China)
Toppan Printing Co., (Shanghai) Ltd. (China) 3 other companies
Sales Companies
froebel-kan co., ltd.
Total Media Development Institute Co., Ltd.
Toppan Travel Service Co., Ltd.
Toppan Multisoft Ltd. 16 other companies∗ Toppan M&I Co., Ltd.
∗ Tokyo Shoseki Co., Ltd. 2 other companies
Toppan Printing Co., (Australia) Pty. Ltd. (Australia) 1 other company

Living Environment
Manufacturing Companies
Toppan Plastic Co., Ltd.
Toppan Kansai Packs Co., Ltd.
Toppan Saga Yoki Co., Ltd.
Mikkabi Toppan Printing Co., Ltd. 14 other companies
Tama Processing Co., Ltd. 2 other companies
Manufacturing and Sales Companies
Toppan Label Co., Ltd.
Toppan Containers Co., Ltd.
Tamapoly Co., Ltd.
Toppan Prosprint Co., Ltd. 2 other companies∗ Toyo Ink Mfg. Co., Ltd. 2 other companies
P. T. Toppan Sampoerna Indonesia (Indonesia)
Toppan Interamerica Inc. (USA) 5 other companies
Sales Companies
Toppan Cosmo, Inc. 1 other company
Electronics
Manufacturing Companies
Niigata Toppan Printing Co., Ltd.
Toppan Shiga Seimitsu Co., Ltd. 5 other companies
Manufacturing Companies
NEC Toppan Circuit Solutions, Inc.
Toppan CFI (Taiwan) Co., Ltd.
Toppan Optical Products, Inc. (USA) 3 other companies
Sales Companies
Toppan Electronics (Taiwan) Co., Ltd. 4 other companies

Notes:•No symbol: subsidiary—126 companies; ∗(asterisk): related company-21 companies (end of March 2005)•While Toppan’s business operations activities are divided into five fields, only three main categories are adopted for consolidated environmental accounting.
•Among Toppan’s subsidiaries, Toppan Forms Co., Ltd. is listed on the First Section of the Tokyo Stock Exchange.

■Main Changes to Operating Companies•On July 1, 2005, the Industrial Materials Division of Toppan Printing
Co., Ltd. merged with Toppan Cosmo, Inc. and became a manufacturing and sales company.
•On April 23, 2005 Dupont Photomasks (U.S.) became a wholly-owned
subsidiary.
•On September 1, 2005, Tokyo Magnetic Printing Co., Ltd. changed its
name to TMP Co., Ltd.

66

CSR REPORT 2005

■Scope of the Report
In principle, this report is concerned with social and environmental activities carried out by Toppan Printing Co., Ltd. and organizations includedin the scope of its consolidated accounting. The report focuses on activities carried out in fiscal 2004 (April 2004 to March 2005), but also
contains complementary information on activities that took place previous in fiscal 2003 or before or those that are scheduled for fiscal 2005
or after. Further, personnel-related data cover only Toppan Printing Co.,
Ltd. The scope of the environmental performance data and environmental accounting is determined based on the importance of each subsidiary in the field of environmental conservation.

Economic Performance Data

Key Financial Data (Consolidated)
Sales (millions of yen)
Ordinary Income (millions of yen)
Net Income (millions of yen)
Net assets (millions of yen)
Total Assets (millions of yen)Interest bearing debt (millions of yen)
Capital expenditure (millions of yen)
R&D expenses (millions of yen)
Corporate, residential & enterprise taxes (millions of yen)
Share price—high (yen)Share price—low (yen)Earnings per share (yen)Shareholders equity per share (yen)Fully diluted earnings per share (yen)Dividends per share (yen)Return on assets (ROA; %)Return on equity (ROE; %)Cash and cash equivalents at end of period (millions of yen)
Number of employees

Fiscal 2000
1,293,836
73,19814,752
716,084
1,380,155
138,979
99,05018,85035,523
1,255
867
21.09
1,023.85
21.00
16.00
1.1
2.1
139,898
32,163Fiscal 2001
1,296,195
63,596
27,847
707,489
1,354,999
144,265
83,82019,14427,422
1,410
944
40.84
1,037.62
40.27
16.00
2.0
3.9
141,179
31,610Fiscal 2002
1,251,605
50,73929,125
715,438
1,317,454
136,294
83,312
20,252
24,872
1,437
732
42.29
1,053.22
41.77
16.00
2.2
4.1
107,21433,292

Fiscal 2003
1,297,357
62,016
31,229740,481
1,461,305
239,20985,10821,302
24,918
1,396
690
45.57
1,104.62
44.86
17.00
2.2
4.3
202,149
32,178

Fiscal 2004
1,413,580
88,301
40,574
768,245
1,483,477
205,008
86,62522,255
22,154
1,380
1,002
60.09
1,154.21
59.94
19.00
2.8
5.4
168,804
32,724

Notes:
1. Sales do not include consumption taxes.
2. Number of employees is indicated as “Number of staff on payroll.”
3. From the start of fiscal 2002 the Company has adopted “Accounting standards related to the treasury stock and the utilization of legal reserves”.
4. From the start of fiscal 2002 the Company has adopted “Accounting standards related to net earnings per share”, along with “Guidelines on accounting standards related to net earnings per share” in calculating net assets per share, net earnings per share and fully diluted net earnings per share.
5. From the start of fiscal 2004 the Company has adopted “Accounting standards related to impairment of fixed assets”, along with “Guidelines on accounting standards
related to impairment of fixed assets”.
6. High and low share prices are as on the first section of the Tokyo Stock Exchange.
For more detailed data please see the IR pages of the Toppan website

Corporate Governance■Dividend Policy
Toppan’s basic policy on profit distribution isto provide stable dividends to shareholders,
and to achieve increasing dividends while taking into account the dividend payout ratio andalso aiming to enhance internal reserves
through establishing a stable revenue baseand strengthening its business structure. In
addition to allotting internal reserves to capital
expenditure and R&D to support expansion inbusiness areas deemed to have growth prospects, the Company also aims to steadily
improve the use of the reserves aimed atincreasing long-term investment efficiency.
Toppan recognizes that conducting profit distribution in this manner will lead to a stronger
business structure, and contribute to increased
profits in the future, as well as making it possible to return profits to investors.
As far as dividends for fiscal 2004 are concerned, the Company continued to face severe
conditions as shipment values from the printing industry were below the previous year forthe seventh consecutive year. However, as aresult of the Company exploiting its collective
strengths to aggressively pursue demand creation oriented operations activities along withthe achievement of ongoing cost reductions,at the 159th General Shareholders Meeting
held on June 29, 2005, a dividend of 10.50
yen per common share was approved. As aresult, when combined with the interim dividend of 8.50 yen per share, dividends per
share in fiscal 2004 rose 2.0 yen to 19.0 yen,with a dividend payout ratio of 59.4%.

■ Relations with Outside Directors andOutside Auditors
Sawako Noma, an outside director of Toppan,
serves as a representative director of Kodansha Ltd., which is a client of Toppan, and withwhich Toppan maintains an ongoing transactional relationship. There is no transactional
relationship between Toppan and its outside
auditors.
■ Remuneration to Directors and Retiring
Directors
Remuneration to directors is decided with theendorsement of the General Shareholders’Meeting, taking into account performance,
the role of each director, and the fulfillment ofoperational targets. The retirement benefit
allowance for directors is decided based oninternal rules relating to retirement benefit
allowances; being the sum total of monthly
remuneration at time of retirement, multipliedby the coefficient of the period in office ateach rank, and on an individually ranked
basis.
Total annual remuneration to directors
1,128,000,000 yen (including 8,000,000
yen for outside directors.)
Total annual remuneration to corporate
auditors
68,000,000 yen (including 21,000,000
yen for outside auditors.)■ List of Major Organizations in which
Toppan Participates
Name of Organization
Nippon Keidanren (Japan Business Federation)
Japan Association of Corporate Executives
The Tokyo Chamber of Commerce andIndustry, and other chambers
The Japan Federation of Printing Industries
Printers Association of JapanThe Japanese Society of Printing Science andTechnology
Japan Electronics and Information Technology
Industries Association
Information Processing Society of Japan
Japan Advertising Review Organization, Inc.
Japan Publishers ClubJapan Packaging InstituteInternational Association for Universal Design
Association for Corporate Support of the Arts,
Japan (Kigyo Mecenat Kyogikai)
Green Marketing Association
The World Wide Fund for Nature (WWF) Japan
Nikkei BP Eco Management Forum
Green Purchasing Network
The United Nations University Zero Emissions
Forum
Global Reporting Initiative Forum Japan
Network for Sustainability Communication
Collect-and-Use Recycle Society
Environmental Management andCommunication Study GroupSpecial Project on Eco-Efficiency and
Eco-Design
Japan for Sustainability
Japan Life Cycle Assessment Association

1. The above-mentioned figures include salaries andbonus payments for directors also listed as staff
members.
2. Apart from the above-mentioned figures, theCompany also paid 256,000,000 yen as retirement
benefit allowances to six retiring directors in linewith decisions made at the General Shareholders’Meeting.

Data and Additional Information

67

Social Performance Data

Conduct Guidelines
Chapter 1: Basic Principles

Chapter 2: Outline of Conduct Guidelines

1. Respecting basic human rights
We will act in a way that our individual talents and abilities can bedemonstrated to their maximum potential based on the ideal ofrespect for people. We will respect basic human rights and in every
regard work to ensure the dignity of individuals.

Section 1 Building customer trust
1. Doing our best for the customer
2. Maintaining customer trust
3. Appropriate management of customer property
4. Protecting information about customers
5. Appropriate management of information on our customers’clientele

2. Maintaining public order and standards of decency
We will always be aware of our involvement with society, act withgood sense, and never act in a way that disturbs public order or that
defies common sense. We will sufficiently consider the affects of ouroperations on society and not act in a way that goes against publicorder and standards of decency.
3. Complying with laws and ethics
We will conduct ourselves in a way that complies with the laws andethics in society. We will comply with international and domestic
laws, regulations, commercial practices, government notifications,operational and industrial standards applicable to our corporate
endeavors. Compliance with these laws and regulations forms theminimum standard of society’s rules that must be upheld. In addition, we are to act with a high sense of ethical and moral awarenessin carrying out our operations. Even in situations when legal issues
do not arise, we still cannot allow humanitarian, moral or ethicalproblems to develop.
4. Conducting fair business operations
We will conduct all foreign and domestic operations in a fair manner.
As an upstanding corporate citizen, we will be aware of our social
responsibilities and carry out sound operations that will not damage
our reputation in society.
5. Appropriate disclosure of information
We will cooperate in the appropriate disclosure of information. Even
if unprofitable, we are committed to not concealing information andconducting operations that are open to the public.
6. Environmental and safety considerations
We will carry out operations in harmony with the global environment. We will protect the precious environment bequeathed to us
by nature and perform corporate operations that strive for reduced
use of limited resources and facilitate recycling. Furthermore, we willconduct safe production activities, ensure product safety, and aim torealise a healthy and secure society to live in.

Section 2 Reforming operations
1. Acting in accordance with international rules
2. Striving to improve knowledge, skills, and technology
3. Fulfillment of work responsibilities
4. Protecting confidential corporate information
5. Securing and utilizing intellectual property
6. Respecting the rights and interests of others
Section 3 Fulfilling corporate responsibilities
1. Compliance with antitrust laws
2. Fair treatment among support companies
3. Abstention from Unlawful acts against corporate competitors
4. Non-solicitation or provision for personal gain or rebate
5. Prohibition of bribery
6. Appropriate entertainment practices
7. Prohibition of illegal political contributions and donations
8. Prohibition of providing unjust benefits
9. Prohibition of support for antisocial activities
10. Prohibition of insider trading
11. Prohibition of unlawful export transactions
12. Prohibition of child labor
13. Curtailment and reduction of environmental impact
14. Promotion of environmentally friendly business
Section 4 Creating a positive work environment
1. Striving for a lively and vibrant workplace
2. Striving for a safe and clean workplace
3. Following company rules
4. Protecting corporate property
5. Avoiding conflicts of corporate interests
6. Prevention of discriminatory practices
7. Prevention of sexual harassment
8. Prohibition of private activities
9. Appropriate use of the Internet
10. Appropriate management of information and records
11. Prevention of participation in illegal conduct, false reports,
and concealment
12. Protection of the identity of persons who reports misconduct
Section 5 Developing the Toppan Group
1. Taking pride in the Toppan brand
2. Developing the Toppan brand
3. Strengthening cooperation between group companies
4. Appropriate disclosure of information
5. Appropriate relationship with shareholders

Established June 2000
Revised July 2003

68

CSR REPORT 2005

Information Risk Management■Privacy Mark Certification
Company
Toppan Printing Co., Ltd.

Operational Site
Securities Printing Division
Commercial Printing Division
Nishinihon Division
Chubu Division
General Production Division
IMS Business Division
Kansai Business Division
Chubu Business Division
Nishinihon Business Division

Toppan Forms Co., Ltd.

Toppan Forms Operation Co., Ltd.
Toppan Forms Logistics and Services Co., Ltd.
Toppan Forms Services (Kansai) Co., Ltd.
Toppan Forms Process Co., Ltd.
Toppan Forms (Hamamatsu) Co., Ltd.
Toppan NSW Co., Ltd.
Toppan Logistics Co., Ltd.
Toppan MultiSoft, Inc.

Date Obtained
March 2000
May 2001
December 2004
July 2005
June 2001
July 2003
November 2002
April 2003
April 2003
August 2002
August 2002
August 2002
June 2003
August 2002
February 2004
November 2004
June 2005

Certification Type
A190005 (03)
A190018 (03)
A190100 (01)
A190171 (01)
A190019 (02)A190050 (01)
A190027 (02)A190039 (01)
A190040 (01)A820089 (02)A450002 (02)A190028 (02)A190047 (01)
A190029 (02)A820186 (01)A450006 (01)B820346 (01)Date Obtained
June 2002 (Ver.1.0)
June 2005 (Ver.2.0)
February 2003 (Ver.1.0)

Certification Type

January 2004 (Ver.1.0)

JQA-IM0137

Entire company
Entire company
Shizuoka plant No. 2■ISMS Certification
Company

Operational Site

Toppan Printing Co., Ltd.

E-business Division (TOPICA service)

Toppan Forms Co., Ltd.

Tokyo Data Center
Kansai Business Division,
Kansai Data Center

CR-I0001
JQA-IM0049

Green Procurement/Green Purchasing■Toppan Green Procurement Standards
Paper
Level 1
1. Recycled paper usage*1
2. Degree of whiteness*2
3. Coating volume

100%
Below 70% (down to +4%)
Below 12g/m2 (Maximum of
8g/m2 per single surface)

Level 270%+
Below 80% (down to +4%)
Below 30g/m2 (Maximum of
17g/m2 per single surface)

Fiscal 2002

Performance
Fiscal 2003

Fiscal 2004

18.3%

22.7%

24.7%

Fiscal 2002

Performance
Fiscal 2003

Fiscal 2004

96.4%

96.6%

98.0%

Fiscal 2002
98.6%

Performance
Fiscal 2003
98.3%

Fiscal 2004
98.9%

97.9%

90.8%

98.5%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

86.6%

92.6%

94.6%

*1 The recycled paper components include paper from non-lumber pulp sources and paper produce from lumber from thinning.
*2 Does not include high quality color and specialized papers.

Offset ink*
Level 1

Level 2

1. Avoiding materials harmful to thehuman body
2. Avoiding use of Chloride based
resinsConforms to NL restrictions of Japan printing ink makers
association

3. Considerations related to PRTR
designated chemicals

Non-usage of PRTR designatedchemicals

4. Restricting VOC emissions

Petroleum solvent ratios below Uses aroma free ink, soybean oil
15% (Does not include web ink) ink, recycled vegetable oil ink

Non-usage of chloride based resins
Identification of PRTR
designated chemicals(prepared with MSDS)*Does not apply to gold, silver and pearl ink■In-house Green Purchasing Standard and Level of Fulfillment
Product
OA paper
Copy machines/
Printers
PCs
Toilet paper
Stationery/
Office goods

Purchasing Standard
Recycled component to be above 70%, whiteness below 80%
Fully functioned to automatically revert to low power mode or off mode if notused for specific period of time
Fully functioned to automatically revert to low power mode or off mode if notused for specific period of time, while maintaining low energy consumption
when in low power mode
100% recycled paper, whiteness below 80%
Products with endorsement highlighting environmentally-friendly stance,
including the eco mark, green mark or products listed in ecology(environmentally-friendly) product catalogues from each maker

Data and Additional Information

69

Social Performance Data

Strengthening Product Quality Assurance■ISO 9001 Certification within the Toppan Group
Division
Electronics DivisionInterior Decor Materials Division
Optronics Division
Electronics Division
Packaging Division, Kansai Branch
Chubu Division
Nishinihon Division, Kyushu Sub-Division
Hokkaido Division
Securities Printing Division
Electronics Division, Display Sub-Division
Group Company
Toppan Seihon Co., Ltd.
Toppan Graphic Communications Co., Ltd.
Toppan Electronics Fuji Co., Ltd.

Operational Site
Asaka plant, Shiga plant
Kashiwa plant, Satte plant
Satte plant, Shiga plant
Kumamoto plant
Takino packaging plant, Fukusaki plant, Itami plant
Matsuzaka plant, Mikkabi Toppan Printing,
Nagoya plantFukuoka plant No. 2, Securities department
Amagi plant
Chitose plant
Asaka plant (Securities), Ranzan plant, Kansai
Securities Printing Sub-Division, Takino plant(Securities), Securities Printing R&D Department
Shiga plant No. 2, Niigata plant, Mie plantOperational Site
CD Manufacturing Department
Itabashi, Asaka, Honjo areas

NEC Toppan Circuit Solutions, Inc.
Kumamoto Toppan Co., Ltd.
Toppan Plastic Co., Ltd., Kansai Branch
Toppan Plastic Co., Ltd.
Toppan Prosprint Co., Ltd.
Toppan Technical Design Center Co., Ltd.

Toppan Logistics Co., Ltd.
Fukusaki plant, Wakayama Manufacturing
Department
Koshigaya plant
Mito plant
Asaka Design Center, Kyoto Design Center

Toppan Display Co., Ltd.
Toppan Packaging Service Co., Ltd.

Ranzan plant

Overseas Subsidiary
Toppan Printing Co., (Shenzhen) Ltd.
Toppan Printing Co. (America), Inc.
Toppan Printing Co., (Shanghai) Ltd.
Toppan Chunghwa Electronics Co., Ltd.
Toppan Printing Co., (H.K.) Ltd.
P. T. Toppan Sampoerna Indonesia
Toppan CFI (Taiwan) Co., Ltd.
Siam Toppan Packaging Co., Ltd.

SQCC
DNV
TÜV Anlagentechnik GmbH
RWTÜV
DNV
LRQA
SGS
MASCI

Registrar

Note: The names of all divisions, company and operating sites are shown as at the time of registration.

■ Main Universities that are
Collaborating and Cooperating inTechnological Development
The University of Tokyo
Tokyo Institute of Technology
Tohoku University
Yamagata University
Massachusetts Institute of Technology
Oxford University

70

CSR REPORT 2005

Registrar
JQA
JQA
JQA
JQA
JQA

Registration Date
November 1993
December 1994
March 1995
April 1995
April 1995

JQA

July 1997

JQA
JQA
JQA

March 1999
June 2004
November 2000

JQA

April 2002

JQA

June 2002

Registrar
JQA
QMI
JQA
Reliability Center forElectronic Components
of Japan
JQA

Registration Date
June 1998
March 2004
December 1993

JQA

October 2001

QMI
JQA
JQA
Quality Certification
Bureau Inc.
JQA

April 2005
November 2001
January 2003

April 1993
November 1997

February 2004
March 2005

Registration Date
November 1995
July 2000
September 2001
May 2002
May 2002
September 2002
December 2003
September 2003

Hiring and Employment

Application of Human Resources Measures■Main Work Holidays and Leave Systems■Number of Employees

Fiscal 2002
as of end of
March 2003
Fiscal 2003
as of end of
March 2004
Fiscal 2004
as of end of
March 2005

Number of
Employees

AverageTenureAverage
Age

TurnoverRate

12,053(8.1% women)

15.5 years

37.4

3.7%

11,512(7.9% women)

15.5 years

37.5

3.6%

10,548(8.2% women)

15.7 years

38.1

Stock Leave

Accumulated annual paid leave is generally lost if it is
not exercised within two years. At Toppan, it is possible
to accumulate 50 days of annual paid leave. This can beused when employees or their dependents require
treatment or nursing, or for recovery from unexpected
accidents.

Maternity Leave

As well as full-time employees, both contract and parttime employees can take up to six weeks of leave
before childbirth and another eight weeks after.

Childcare Leave

Toppan operates a system to allow regular, full-time
employees to take leave to look after children. Until thechild has reached one year old, it is possible to take anextended period of leave. Employees receive a proportion (10%) of their regular salary during the leave.
Employees can also apply to shorten or extend theleave as well as working shorter hours on returning towork. Toppan subsidizes some childcare costs and provides information through its consultation office.
Employees can consult with the Company to discuss
their career plans before they return to work.

Nursing Care
Leave

Regular, full-time employees may take leave, or shorten
working hours to provide nursing care. Leave can betaken once per family member needing care and it ispossible to take a maximum of one year or shorten
working hours by two hours a day. The Company subsidizes some nursing costs and provides information
through its consultation office.

Health Care
Leave

Employees may take leave for the purposes of providing
health care. Employees may take up to five days of
unpaid leave a year.

Volunteer Leave

As a system to support those employees wishing totake leave to engage in socially-beneficial activities, theCompany operates a volunteer leave system. In principle, it is possible to take leave for a maximum of one
year and Toppan provides a volunteer leave benefits
package. In fiscal 2003 this leave was taken advantage
of by an employee in order to take part in the Japan
Overseas Cooperation Volunteers organized by theJapan International Cooperation Agency (JICA).

Other Systems

All employees can take advantage of the flexi-time work
system and the Company’s ‘refresh holiday’ system.

3.5%■Employees by TypeManagement Class
Supervisor(assistant manager(supervisory,
Executives andabove, including including contract
Fiscal 2002
as of end of
March 2003
Fiscal 2003
as of end of
March 2004
Fiscal 2004
as of end of
March 2005

contract employees)

employees)

1,977

2,465

29

782

(0.8% women)
31

1,897

2,334
849

(1.0% women)
31

Parttime

1,836

2,210
893

(1.2% women)■ Recruits (regular hiring, new graduates, including
post-graduate students)

April 2003
April 2004
April 2005

Sales,
Administration
105
105
120

Technical% Women

120
120
150

22.2%
20.9%
22.2%

Data Relating to Human Asset Development■Results and Plans in Human Asset Development
Fiscal 2003
Fiscal 2004

Funds Spent on Training per Employee
29,000 yen
45,800 yen■Status of Work Holiday and Leave Systems■Use of Toppan Training Center
Utilization Ratio—
56.9%

Fiscal 2003
Fiscal 2004

* The training center was established in July 2004. The utilization ratio is calculated
based on the days when the center could be used between July 2004 and March2005.

Fiscal 2002
Fiscal 2003
Fiscal 2004

Average Ratio of Employees Using Employees Using
the Childcare
the Maternity
Annual Paid
Leave System
Leave System
Holiday Used
38.6%
32
37
38.2%
35
48
38.1%
38
46

Workplace Health and Safety
Data Related to Leveraging Personnel■Transfer Staff on Rotation
Employees
Fiscal 2003
Fiscal 2004

588
343

Percentage of Entire
Workforce
4.5%
3.3%

■Employees with Disabilities
Employees
Fiscal 2002
Fiscal 2003
Fiscal 2004

145
137
134

Percentage of Entire
Workforce*
1.84%
1.97%
1.83%

* In accordance with the Law for Employment Promotion, etc. of Disabled Persons,the number of employees with disabilities is calculated based on the numberspresented in the Disabled Persons Employment Report published on June 1,
2005.

Fiscal 2002
Fiscal 2003
Fiscal 2004

Deaths fromWork Accidents000Frequency
Rate*1
0.55
0.30
0.41

Severity Rate*2
0.02
0.01
0.01

*1 Frequency rate: number of employees injured and dead in labor accidents per 1
million working hours (reflects the frequency of labor accidents)*2 Severity rate: number of workdays lost per 1,000 working hours (reflects theseverity of labor accidents)■Prevention of Child Labor, and Forced and Compulsory Labor
Toppan has had no occurrences of problems with Child labor, forced orcompulsory labor.

Data and Additional Information

71Environmental Management Data

Organizational Structure■Toppan Group Environmental Meeting■Verification of Environmental Activities in Eco-protection Promotion Meetings

Tokyo Ink Mfg. Co., Ltd.
Tosho Printing Co., Ltd.
Tokyo Shoseki Printing Co., Ltd.
Toppan Forms Co., Ltd.
Tokyo Magnetic Printing Co., Ltd.
Toppan Label Co., Ltd.
Toppan Logistics Co., Ltd.
Tamapoly Co., Ltd.
NEC Toppan Circuit Solutions, Inc.
Toppan Printing Co., Ltd.
10 companies overall

1) Reporting of activity achievements and measures taken for Eco-protection issues(1) Results in waste disposal and recycling(2) Results in energy saving(3) Status in observance of in-house standards on atmosphere, water and others2) Information on environmental concerns outside the Company(1) Information on the establishment and revision of environment-related laws and regulations(2) Information on contractors for industrial waste disposal consignment(3) Guidelines, requests and information from government administrations, including local
municipalities(4) Complaints, requests, and feedback from local residents and others
3) Progress of the Eco-protection Activity Plan (Environmental Management Program)
4) In-house nonconformities and irregularities in environmental conservation(1) Reporting on troubleshooting analyses and recommendations on improvement plans(correction or prevention) for cases in question(2) Dissemination of information on problems common to different departments
5) Reporting on other environment-related information(1) Adopting or changing the use of chemical substances(2) Changing or newly installing production processes and facilities
6) Reporting on the environmental management system(1) Content of in-house environmental auditing(2) Content of internal environmental auditing
7) Other issues specific to the production plant, such as ecological conservation of the premises and/or the surrounding area

■Toppan Group Eco-products Meeting
Tokyo Ink Mfg. Co., Ltd.
Tosho Printing Co., Ltd.
Tokyo Shoseki Printing Co., Ltd.
Toppan Forms Co., Ltd.
Toppan Cosmo, Inc.
Toppan Label Co., Ltd.
Tokyo Magnetic Printing Co., Ltd.
Total Media Development Institute Co., Ltd.
Toppan Logistics Co., Ltd.
Toppan Multisoft Ltd.
Tamapoly Co., Ltd.
froebel-kan co., ltd.
Toppan Printing Co., Ltd.
13 companies overall■Eco-creativity Promotion System
Division
Securities Printing
Division
Commercial Printing
Division
Kansai Commercial
Printing Sub-division
Electronics Division

Promotion System Name
Eco-creativity ProjectEco-creativity Promotion
Eco-creativity Promotion
Committee
Eco-creativity Promotion(Electronics)

Information &Eco-promotion Project
Publications Division
Package andEnvironmentally-Friendly
Packaging Division
Products Development
Project
Interior Décor
Eco-creativity Promotion
Materials Division
Committee
Eco-creativity Promotion
Optronics Division
Committee
Chubu Division
Chubu Eco-project
Nishinihon Eco-creativity
Nishinihon Division
Committee
Tohoku Eco-Creativity
Tohoku Division
Project
Eco-Creativity
Hokkaido Division
Committee
Research InstituteTechnical ResearchEco-creativity Promotion
Institute
Committee■ Registered In-house Environmental
Auditors
PositionManagers
Supervisors
Employees
Total

72

CSR REPORT 2005

Personnel
204
160
110
474

■Major Environment-related Laws Involving the Printing Industry in Japan
Basic Stance and Rules
The Basic Environment Law
Law for Promotion of Nature Restoration
The Basic Law for Establishing the Recycling-Based Society
Legislation to Implement a Basic Law on Energy Policy
Law Concerning Increasing the Desire for Environmental Conservation and Promoting Environmental
Education
Law Concerning the Promotion of Environmentally Conscious Activities of Specified Businesses
through the Promotion of the Provision of Environmental Information
Eco-protection Fields
Air Pollution Control Law
Water Pollution Control Law
Sewerage Law
Septic Tank Law
Law Concerning Special Measures for Conservation of the Environment of the Seto Sea Island
Soil Contamination Countermeasures Law
Offensive Odor Control Law
Noise Regulation Law
Vibration Regulation Law
Industrial Water Law
Law Concerning the Rational Use of Energy
Law Concerning the Promotion of the Development and Introduction of Alternate Energy
Law Concerning the Promotion of the Use of New Energy
Waste Disposal and Public Cleaning Law
Law for the Control of Export, Import, and Others of Specified Hazardous Wastes and Other Wastes
Construction Materials Recycling Act
Law Concerning Special Measures against PCB waste
Law Concerning Reporting, etc. of Releases to the Environment of Specific Chemicals and Promoting
Improvements in their Management
Law Concerning Special Measures against Dioxins
Law Concerning Special Measures for Total Emission Reduction of Nitrogen Oxides from Automobilesin Specified Areas
Law Concerning the Protection of the Ozone Layer through the Control of Specified Substances andOther Measures
Law Concerning the Promotion of the Measures to Cope with Global Warming
Factory Location Law
Landscape Law
City Planning Law
Urban Green Law
Law Concerning the Improvement of Pollution Prevention Systems in Specific Factories
Eco-creativity Fields
Law Concerning the Promotion of Procurement of Eco-Friendly Goods and Services by the State andOther Entities
Law for the Promotion of Effective Utilization of Recyclable Resources
Law for the Promotion of Sorted Collection and Recycling of Containers and Packaging
Law for the Conservation of Endangered Species of Wild Fauna and Flora■ISO 14001 Certification(36 systems, 48 operating sites as of June 30, 2005)

Division/Operational Site

Main ProductRegistrar

Electronics Division (Shiga plant)

Electronics products

JQA

Electronics Division (Kumamoto plant)

Electronics products

JQA

Interior Décor Materials Division (Satte plant/Kashiwa plant)

Wallpapers, decorative paper/film for furnitures

JQA

Electronics products

JQA

Electronics Division (Niigata plant and NEC Toppan Circuit
Solutions, Inc. Niigata plant)
Commercial Printing Division (Toppan Printing Communications
Co., Ltd.)
Securities Printing Division (Ranzan plant)
Packaging Division (Akihabara office/Ebisu office)Information & Publications Division (Itabashi plant/
Toppan Seihon Co., Ltd.)
Packaging Division (Fukusaki plant)
Information & Publications Division (Toppan Graphic Co., Ltd.
Kawaguchi plant/Oji plant)
Kansai Commercial Printing Sub-Division/Kansai Securities
Printing Sub-Division/Kansai Packaging Sub-Division (Takino plant)
Packaging Division (Gunma plant)
Securities Printing Division/Commercial Printing Division/
Electronics Division/Electronics Division (Asaka plant)
Electronics Division (Toppan Electronics Fuji Co., Ltd,)
East Chugoku and Shikoku Sub-division (Hiroshima Office,Kannabe Toppan Co., Ltd.)
Kansai Commercial Printing Sub-division/Kansai Securities Printing
Sub-division (Ebie Site/Osaka Toppan Display Co., Ltd. Oyodo plant)
Tohoku Division
Technical Research InstituteHokkaido Division (Sapporo plant/Chitose plant)

Registration Date
(Revision Date)
July 1998
November 1998
(December 2001)
March 2000
(June 2000)
April 2000
(October 2002)
October 2000
(December 2002)
November 2000

Books, magazines, catalogs

JQA

Credit cards, IC cards
Planning, development, design, sales, prepress of
packages

JQA
JQA

March 2001

Books, magazines

JQA

February 2002

Soft packaging materials, paper cups, plastic products

JQA

Books, magazines

JQA

July 2002
August 2002
(July 2004)

Printed commercial materials, securities, paper containers
for liquids
Soft packaging materials
Securities, commercial printed materials, electronics
products
Electronics products
Planning and sales of commercial and packaging printed
materials, business administration and manufacture
Planning, sales and manufacture of commercial andpackaging printed materials
Planning, design, manufacture, printing, processing andsales of printed materials and packaging
R&D of printing related products and related businesses
Planning, design, manufacture, printing, processing andsales of printed materials and packaging

JQA

October 2002

JQA

July 2003

JQA

December 2003

JQA

June 2004

JQA

October 2004

JQA

November 2004

JQA

March 2005

JQA

May 2005

JSA

June 2005

Total Media Development Institute Co., Ltd. (Entire company)

Consulting for museums and related facilities

JSA

Toppan Forms Co., Ltd. (Hino plant)
Toppan Label Co., Ltd. (Fukushima plant)

Business forms and DPS (digital print service) products
Self-sealing labels

JQA
JQA

Toppan Logistics (Kawaguchi site)

Storage and transportation of products

JQA

Toppan Forms Co., Ltd. (Fussa plant)
Toppan Forms Co., Ltd. (R&D Center)

Business forms
R&D

JQA
JQA

Toppan Containers Co., Ltd. (Saitama plant/Miyagi plant)

Cardboard and cardboard boxes

JQA

Toppan Forms Co., Ltd. (Nagoya plant)
Toppan Forms Co., Ltd. (Osaka plant)
Toppan Forms Co., Ltd. (Kyushu plant)

Business forms and DPS (digital print service) products
Business forms and DPS (digital print service) products
Business forms and DPS (digital print service) products

JQA
JQA
JQA

Registration Date
(Revision Date)
March 2001
(April 2002)
June 2001
November 2001
October 2002
(October 2003)
February 2004
March 2004
April 2004
(April 2005)
August 2004
December 2004
January 2005

Overseas Subsidiary
Siam Toppan Packaging Co., Ltd.
Toppan Printing Co., (H.K) Ltd.
Toppan Printing Co. (America), Inc.
Toppan Chunghwa Electronics Co., Ltd.
Toppan Printing Co., (Shenzhen) Ltd.
Toppan CFI (Taiwan) Co., Ltd.
P.T. Toppan Sampoerna Indonesia

Main Product
Paper cartons and fine cardboard
Books, magazines, commercial printed matter
Commercial printed matter
Electronics parts
Books, paper containers, cards
Electronics parts
Soft packaging materials

Registrar
MASCI
DNV
DNV
SGS
SSCC
SGS
LLOYD

Registration Date
April 2002
May 2002
December 2002
October 2003
December 2003
November 2004
November 2004

Group Company/Operational Site

Main ProductRegistrar

Note: The names of all divisions, company and operating sites are shown as at the time of registration or revision.

Environmental Accounting■ Breakdown of Environmental
Conservation Investment for Fiscal 2004
Research &development 2.2%
Globalenvironmental
conservation
10.3%

Management activities
1.4%
Pollution
prevention
74.5%■ Breakdown of Environmental
Conservation Cost for Fiscal 2004
Global environmental
conservation 4.7%
Management
activities 8.0%

Total
Environmental
Conservation
Investment:

Total
Environmental
Conservation
Cost:

3.691

Waste
treatment
andrecycling
11.6%

Research & development
5.1%
Upstream & downstream
cost 3.3%
Social activities
0.0%

13.746billion yen

billion yen
Environmental
damageremediation
9.6%
Pollution
prevention
30.7%

Waste
treatment
and recycling
38.6%■ Calculating Standards for Environmental
Accounting for Fiscal 2004
1. Reference Guidelines
Ministry of the Environment Environmental
Accounting Guidelines (2005 version)
2. Calculation standards for environmental
conservation costa) Investment: Based on the prices of theenvironmental protection facilities obtained in
the fiscal periodb) Cost: Depreciation of environmental protection
facilities (according to ordinary accounting),
operational costs (including electricity, fuel andrepairs), and other maintenance costs.
c) Composite costs: For more detailed information
related to environmental works, the percentage
related to environmental conservation is definedin the in-house guidelines for aggregation.

3. Calculation standards for economic benefit
The Economic benefit (effect on business) isbased solely on the actual effect and does notinclude surmised effects.
a) Energy-saving: energy saving (converted toannual amount) × unit priceb) Environmental business: sales of environmentallyfriendly products × profit margin

Data and Additional Information73

Eco-protection Data

Energy Type Ratio and Consumption■ Energy Used by Type for Fiscal 2004
(Total heat conversion)
A-grade heavy oil 0.9%

■Electricity Consumption

Light oil andgasoline 0.0%

LPG 1.1%■City Gas Consumption
(GWh)

1,200

1,143

1,150

Kerosene 2.7%

80,000

1,091

1,100

(1,000 m3)

100,000
78,59782,30789,09071,20160,000
1,042

1,050
1,010

40,000

1,000
Purchased
power amounts
71.9%City gas
23.4%

20,000

950
900

2001

2002

2003

0

2004

2001

2002

2003

(Fiscal year)■Kerosene Consumption
14,00013,17912,599

■A-grade Heavy Oil Consumption(k3)

13,27512,00011,334

3,680

4,000

2,000
2002

2003

2004

3,596

3,402

2,000
1,000

2,000
2001

4,550

3,000

6,000

4,000

(tons)

5,570

4,000
7,787

8,000

6,000

6,000
5,000

11,22810,0008,000

013,69012,00010,000■LPG Consumption(k3)

16,00014,0002004(Fiscal year)

0

2001

2002

2003

(Fiscal year)

2004

0

2001

2002

2003

(Fiscal year)

2004(Fiscal year)

Note: Some overseas companies and independent business subsidiaries are not included.

Promotion of Waste Reduction and Recycling■Plants Certified for Zero-emissions
Plant
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Toppan Printing Communications Co., Ltd.
Kumamoto plant (Electronics)
Itabashi plant (Publications Printing)
Kawaguchi plant (Toppan Graphic Co., Ltd.)
Toppan Seihon Co., Ltd.
Oji plant (Toppan Graphic Co., Ltd.)
Sagamihara plant (Packaging)
Sagamihara plant (Toppan Plastics Co., Ltd.)
Saitama plant (Toppan Containers Co., Ltd.)
Sano plant (Toppan Containers Co., Ltd.)
San-ei Shiki Ltd.
Kansai commercial printing plant (Takino site)(Commercial printing)Oyodo plant (Osaka Toppan Display Co., Ltd. )Itami plant (Packaging)
Toppan Harima Products Co., Ltd.
Nagoya plant (Chubu)
Mikkabi Toppan Printing Co., Ltd.
Fukuoka Plant No. 2 (Nishinihon)
Kumamoto Toppan Co., Ltd.
Sapporo plant (Hokkaido)(Certified November 2004)

Total
Total Waste
Recycled
Generated
Waste (tons)(tons)
Fiscal 2003
Fiscal 2003
25,253.6
25,248.2
17,619.7
17,282.4
18,095.8
17,818.8
46,952.0
46,910.0
32,122.5
31,996.5
3,743.8
3,743.8
23,774.2
23,725.9
161.4
161.4
8,278.3
8,167.4
3,576.3
3,554.6
272.3
268.6

Recycling
Ratio (%)
Fiscal 2003
99.98
98.09
98.47
99.91
99.61
100.0099.80
100.00
98.66
99.39
98.64

10,435.8

10,364.6

99.32

3,570.7
8,829.0
32.5
4,164.4
3,376.2
5,565.5
6,052.3
2,440.2

3,544.0
8,747.3
32.0
4,112.7
3,319.0
5,490.4
6,052.0
2,424.8

99.25
99.07
98.46
98.76
98.31
98.65
100.0099.37■Rainwater Use
10,000

Honjyo GC building
Toppan Koishikawa Building(Unit: m3)

9,391
8,716

8,000

8,062

7,701

6,000

4,000
2,754

3,223

3,704

3,182

2,000

0

2001

2002

2003

2004
(Fiscal year)■Office Paper Waste Recycle Ratio(Unit: %)

100

80

69.4

67.0

62.9
56.0

60

40

20

0

2001

2002

2003

2004
(Fiscal year)

74

CSR REPORT 2005

Preventing Pollution/The Management and Reduction of Chemical Materials■Fiscal 2004 Toppan PRTR Survey and Results(Unit: kg/year)

Ordinance
Material
ChemicalNo.
1 Water soluble Zinc compounds
16 2-amino ethanol
24 Linear Alkylbenzenesulfonate and chlorides
40 Ethyl benzene
44 Ethlene glycol Monoethyl ether
46 Ethylene diamine
63 Xylene
64 Silver and water soluble compounds
66 Glutaldehyde
68 Chrome and trivalent chromium compounds
69 Hexvalent chromium
108 Inorganic cyanogens compounds
132 1,1-Dichloro-1-fluoroethane (HCFC-141b)
145 Dicholoro methane
172 N,N-dimethylformamide
179 Dioxins
207 Water soluble copper compounds
224 1,3,5-Tri-methyl benzene
227 Toluene
230 Lead and its compounds
231 Nickel
232 Nickel compounds
254 Hydroquinone
270 Di-n-butyl phthalate
272 Bis phthalate (2-ethylhexyl)
304 Boron and its Compounds
309 Poly (oxyethylene) nonylphenyl ether
310 Formaldehyde
311 Manganese and its compounds
313 Maleic anhydride

Emissions60031,254217
040,180
0
0
30
0
0
8,919
5,860
0
(66mg-TEQ)
294
4,260
1,231,635
2
0
146
0
0
0
35
497
107
323
0

1. Atmosphere

2. Water

3. Soil

0
6
0
0
0
0
31,2540217
00040,180
0
0
0
0
0
0
30
0
0
0
0
8,919
0
5,860
0
0
0
(66mg-TEQ) (0.005mg-TEQ)
0
294
4,260
0
1,231,635
0
0
2
0
0
0
146
0
0
0
0
0
0
0
35
497
0
107
0
0
323
0
0

Volume Moved
to Drains
Disposal
406
011,394
7,756
919
910
9,594
0
0
11,591
1,667
128
1,009
1,251
122,748(936mg-TEQ)
119,299
16,356
1,178,772
246
109
315,758
2,086
8
74
5
1,938
287
3,933
0

Volume
Moved
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
—
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
1
0
0
0
0
0
—
414
0
79
0
0
0
0
0
0
0
0
0
0
0

Notes:•Calculated over the period from April 1, 2004 to March 31, 2005.
•The above 30 substances are the target materials for reports to the government.
•Target divisions: Divisions where amount of Class I designated chemical substances handled over the period of the year are in excess of 1.0t per year.
(In excess of 0.5t per year in the case of specified Class I designated chemical substances.)•Some overseas subsidiaries and independent subsidiaries have been excluded from the numbers.
•The volume of waste materials moved outside each operational site (including inverse onerous contracts and charge free recycling) is listed under volume moved to disposal.

Atmospheric Emissions■Ratio of Greenhouse Gases (Ratio on CO2 Conversion)
Fiscal Year
2001
2002
2003
2004

CO2
99.89
99.90
99.91
99.91

(Unit: ratio: % total: t-CO2)

CH4
0.00
0.00
0.00
0.00

N2O
0.11
0.10
0.09
0.09

Total
652,256
668,964
682,959
698,759■NOx and SOx Emissions
NOx

300
250

244

243
201

200

■ Breakdown of Greenhouse Gas Emissions by Source(Ratio on CO2 Conversion)(Unit: ratio: % total: t-CO2)

Fiscal Year

Electricity Use

Fuel Use

2001
2002
2003
2004

59
59
60
62

36
36
35
34

Waste
Incineration
5
5
5
4

Total
652,256
668,964
682,959
698,759

SOx (Unit: tons)

194

150
100

68

50
0

2001

59

2002

45

2003

41
2004
(Fiscal year)

Notes:
Some overseas companies and independent business subsidiaries are not included.
NOx and SOx emissions are calculated based on the Ministry for the Environment Environmental
Activities Evaluation Program established in April 2002.

Data and Additional Information75

Eco-protection Data

Environmental INPUT/OUTPUT Data by Site
■Combined Results by BusinessElectronics
INPUT

EnergyWater

OUTPUT

Atmosphere

Water system
and Soil

Waste

Total Energy consumption (GJ)Electric Energy consumption (GJ)
Heat Energy consumption (GJ)
Water consumption (m3)
Industrial water (m3)Municipal water (m3)Groundwater (m3)Utilization of Rainwater (m3)Utilization of water circulated onpremises (m3)
CO2 emission (t-CO2)
Emission of substances destructive
to the ozone layer (ODP-kg)
NOx emission (kg)SOx emission (kg)
Emission of dioxins (ng-TEQ)
Total water discharge (m3)
Public water system (m3)Sewage system (m3)Underground penetration (m3)On-site evaporation (m3)
BOD discharge (kg)
COD discharge (kg)
Nitrogen discharge (kg)
Phosphorous discharge (kg)
Total discharge (tons)
Recycling of used products (tons)
Final waste landfill (tons)

6,325,888
5,419,493
906,395
10,216,295
278,291
1,550,381
8,387,623
0Information &Networks
6,896,180
4,393,927
2,502,253
2,241,276
721,578
928,127
591,571
2,424

LivingEnvironments
5,290,899
3,948,034
1,342,865
2,144,390
580,983
749,915
813,4920Non-productive
Operating Sites
905,051
728,305
176,746
381,776
0381,776
0
11,244

19,418,018
14,489,760
4,928,258
14,983,737
1,580,852
3,610,199
9,792,686
13,668

Total

1,367,096

0

98,7550

1,465,851

266,615

307,162

266,399

37,491

877,667

0

2,234

1,363

0

3,597

24,23919,843486,336
8,657,519
7,378,403
1,279,116
0
1,063,848
62,97097,911
20,874507
49,46536,706
5,365

101,148
1,704
12,576,469
1,676,628
234,431
1,442,197
3,100
557,81780,417
18,856
7,812
784
228,249
224,319
1,644

87,43542,20746,283,086
1,568,050
1,100,488
467,562
46,892405,558
25,83026,114
14,6891,373
148,476
143,061
3,116

6,411
50
0
328,615
24,198304,417064,405
9,627
3,822
3,295
230
4,726
4,042
147

219,233
63,804
59,345,891
12,230,812
8,737,520
3,493,292
49,992
2,091,627
178,844
146,703
46,6702,893
430,916
408,127
10,272

Environmental Communication■Fiscal 2004 Toppan Group Environmental Slogan Competition Winners
SloganName

DivisionFirst prize“Don’t just think—act! An energy saving relay to the future.”

Nobuhiro Inoue

Chubu Division, Matsuzaka plant

Distinction“The thawing ice of global warming cries the tears of mother earth.”

Isao Ishida

Kenzai Tech Co., Ltd.

“Environmentally-friendly cost reduction. Reducing waste is also atechnological achievement.”

Kazuhiro Obara

Tohoku Division“Energy saving activities for everyone. Just a little thought can put yourheart and your actions on a higher level.”

Takayuki Fujimoto

Tokyo Securities Printing Sub-division,
Takino Securities plant“Switch off—unnecessary electricity. Switch on—energy saving
awareness.”

Koki Sakamoto

Nishinihon Division“Cut just a little waste and get more mileage out of global resources.”

Ryuichi Kawase

Niigata plant“It only takes a flick of the finger to save electricity. Everything depends
on your attitude.”Takashi Gojitsu

Takino Package plant“Think, that’s a waste! And you’ve already taken the first step towards
environmental preservation.”Takasuke Sugiyama

Toppan Printing Communications

Merit(Total number or respondents : 4,767)■Site Report Issuance
Fiscal Year
Number

76

2000
2

CSR REPORT 2005

2001
5

2002
7

2003
8

2004
12

Eco-creativity Data

Development of Environmentally-friendly Products■List of Environmentally-friendly Products (as of end March 2005)
Business
FieldsSecurities
Printing

Toppan’s Environmentallyfriendly Products
Ecothrough card
Paper IC Card
BE CardEco Holosticker
Bulky Waste Processing
Sticker
Recycleco Gift Card
Card for ETC
Hanshin Expressway Public
Corporation Multipass
Rewritable Paper
Commercial Toppan Green Paper 100
Printing
Toppan Green Paper Bagasu
Eco Pack (life-size POP
display)
Aiba Environmentallyfriendly Exhibit System
Paper Desk Calendar
Ecology Calendar
Eco POP

Publications
Printing

Electronics
Optronic

Interior
Décor
Materials

Eco Pack StandEco Pack Multipanel
Eco Floor Sticker
Cerap
Eco Pack End Panel
Eco Pack Stand, Round-type
EPOP
Recycled vegetable-Oil Ink
Polyurethane Reactive
Hot-Melt
Non-Vinyl Chloride
Lenticular Lens
Low-halogen Printed-wiring
board
Lenticular Screen
Antireflection Film
Toppan Ecowall
Toppan Ecofoil
Functional Ecofoil (Airfeel,
Mirrafeel, Purefeel)
NaturArt
Coordination Floor
PURE ALL

Main Environmental Points
Suitability for disposal
Use of recycled materials
Biodegradability
Biodegradability
Resource-saving (reduced
amount of materials used)
Use of recycled materials
Suitability for disposal
Use of recycled materials
Long-life products
Use of recycled materials
Use of recycled materials
Resource-saving (reduced
amount of materials used)
Reusability
Use of recycled materials
Use of recycled materials
Use of recycled materials,
Suitability for disposal,
Energy saving
Resource-saving
Reusability
Suitability for disposal
Suitability for disposal
Resource-saving
Reusability
Use of safe materials
Use of recycled materials
Easy separation and easy
disassembly
Suitability for disposal
Suitability for disposal
Resource-saving, Use of safe
materials
Resource-saving
Reduced release of chemical
substances
Reduce release of chemical
substances
Suitability for disposal
Reduced release of chemical
substances
Reduced release of chemical
substances, Long-life
substances
Use of safe materials,
Suitability for disposal■ Sales of Environmentally-friendly
Products(million yen)

60,00050,00056,48944,597

48,47851,96840,00030,00020,00010,000
0

2001

2002

2003

Business
FieldsPackaging

Toppan’s Environmentallyfriendly Products
GL FamilyStanding pouch for Refill

Main Environmental Points

Suitability for disposal
Resource-saving (reduced
amount of materials used)
Bottled Pouch
Resource-saving (reduced
amount of materials used)Thin-Wall Bottle
Resource-saving (reduced
amount of materials used)
Plastic Container Made from Use of recycled materials
Recycled Materials
Ecogloss (environmentally
Resource-saving (reduced
friendly gloss finishing)use of exhaustible materials),
Use of recycled materials
Recording Media Packaging Resource-saving (reduced
use of exhaustible materials)
TT Paper Can
Easy separation anddisassembly
NeovertUse of recycled materials
Ecotainer
Resource-saving (reduced
use of exhaustible resources)
TL-PAK
Resource-saving (reduced
use of exhaustible resources)
EP-PAK (EP-GL)
Resource-saving (reduced
energy usage in logistics)
EP-PAK (Al)Resource-saving (reduced
energy usage in logistics)
Stand-up Laminated Tube
Resource-saving (reduced
amount of materials used)
Recyclen Cap
Easy separation anddisassembly
AP Cartons
Resource-saving (reduced
energy usage in logistics)
Micro-FluteResource-saving (reduced
energy usage in logistics)
TP-Tray
Recyclability
Corrugated Absorber
Recyclability
AD-CaseResource-saving (reduceamount of materials used)
CartocanRecyclability
Paper Cup Made from
Use of recycled materials
recycled paper
Cup made from Tree Free
Resource-saving (use of bypaper
products)
Biodegradable Package
Biodegradability
Cylindrical Paper Cartridges Resource-saving
Coated Barrier Film
Suitability for disposal
GL-C Bottle
Resource-saving
GX Film
Resource-saving
Jar Plus
Resource-saving
Tray All
Easy separation anddisassembly
GL Film Lined Paper Cup
Resource-saving
Double-Wall Barrier Cup
Resource-saving
Oil-Proof Paper
Use of safe materials,
suitability for disposal
Functional Coated Paper
Recyclability
In-Mold Barrier Cup
Resource-saving
Tamper Evident Recyclen
Easy separation andCapdisassembly
Easy peel-off thermo-cap for Easy separation andPET bottles
disassembly
Ecoband
Resource-saving
Water-based Cold Seal
Reduce release of chemical
substances
Biodegradable Plant Pot
Biodegradability
Barrier Cup (NSP Process)Resource-saving
Plastic Clip
Recyclability
Notchless Easy-cut
Resource-saving (reduced
Container (AL type)energy expended in
manufacturing process)
Recycled PET Clear Case
Recyclability
ALUGLAS
Suitability for disposal

2004(Fiscal year)

Data and Additional Information

77Independent Review and Third-party Opinion

Independent Review
In the “Overview of CSR Activities and New Initiatives” section
on pages 8 and 9 of this report, Toppan posted a six point priority CSR action plan, highlighting in an easy to view fashion, thestatus of the Company’s CSR activities and its forward looking
stance on this issue. This is commendable. However, I consider
it is important that Toppan establish a more concrete set ofquantitative targets, in addition to the existing qualitative targets. I also indicate that it is necessary for the Company to carryout progress management of CSR activities, along with performance appraisals and reviews, and promote CSR activities as amanagement system.
In the area of Commitment to the Environment, which is oneof its six priority themes, Toppan is promoting toluene reduction
activities throughout the entire Group, and is already seeing
results. This was also touched upon as one of the topics of lastyear’s report. Also, looking at developments in the PRTR reporton emission volumes into the air, review of CSR Reports (Environmental Reports), of the past we can see at a glance that
there have been major reductions in emission volume achieved
over the last year. Based on environmental accounting materials
that I have been provided with during the independent review
process, I was also able to confirm the benefits of investments
made, including investments made in gas emission disposal
equipment over the last few years. Having said that, it is insufficient that there is little mention of such activities and theirresults included in the CSR Report 2005. In the important areaof its approach to the environment I regard Toppan could provide a more concrete and comprehensive explanation by displaying related values on an annual basis, and listing activities todate alongside results for the fiscal year in question.
Toppan’s business activities cover a broad and divergent set ofareas, and as a result, many pages of the report are taken up
with merely explaining its various activities and in-house systems.
I was also conscious that there were duplicated listings in certain
parts of the report. As a result, I expect that Toppan will continue
properly marshalling the listed dated as well as considering boththe inclusion of quantitative listings to back up the qualitative
data and the importance of the other data contained in thereport.

Maho Yao
Manager,
AZSA Sustainability Co., Ltd.
(AZSA & Co. group)■Independent Review Process

78

Planning

IDiscussion and planning

Hearing to review improvements from the previous year, examination of methods andscope of aggregation; determination of the schedule and the sites to be reviewed

Implementation

IManagement interview

Interview with those responsible for CSR activities. Confirmation of Toppan’s basic thinking
on Corporate Social Responsibility (CSR) and presentation guidelines for the CSR Report
2005 confirmed

IHead office Review
Toppan Printing Co., Ltd.
(parent) and Group companies
in and outside Japan

Hearing on data-collection methods, including internal controls; implementation ofanalytical procedures, questioning and vouching procedures; examination of thecalculation accuracy and appropriateness of methods; examination of consistency among
data (including descriptions)

IOn-site review

Toppan Electronics Fuji Co., Ltd.

Final review of the script

IReview at head office

Confirm data on the entire Group and perform a final check on the CSR Report content

Internal review at AZSA
Sustainability Co., Ltd.

IInternal review meetings

Before submitting the independent review, AZSA reviewers uninvolved in the Toppan
review examine the review procedure, examine the review results and draw up theirconclusions about the CSR Report 2005

Submitting the Independent
Review Report

ISubmission of the
Independent Review Report

The independent reviewer submits the Independent Review Report to Toppan

Reporting

IBriefing on the findings in
the independent review

The independent reviewer reports the findings of the review to Toppan

CSR REPORT 2005

Third-party Opinion
The Toppan report comes with many pages and is extremely
detailed. A careful reading of the text reveals that the report isbased on a well thought out, systematic composition. In particular, as a development of the CSR report in its second year, I
found that the presentation of an overview table of the activities performance along with issues and targets in line with the
six CSR priority themes to be praiseworthy and well connectedwith the themes of the report. CSR in the Information Communications Industry is also featured, while personal data protection systems and the status of system development were also
well covered. This is a timely activity that has accurately homed
in on the social issues connected with the unique characteristicsof the industry segment in which Toppan operates, and should
be seen as form of disclosure. From these statements anddescriptions, I was able to get the feeling that the Company issteadily laying the groundwork for CSR activities. Also, in the
CSR topics section, several reports with negative connotations
for soil pollution issues were picked up from various sources,from which I was able to surmise that the Company understands
the basics of CSR reporting.

Social Report
I am able to positively evaluate the fact that the Toppan report
is quite systematic, with listings that touch on a broad range ofareas. There are, however, a number of issues where improvement is called for. For example, the section dealing with supply
chain activities notes that efforts are being made to adopt CSR
activities in selection standards for procurement, and supplieraudits. It is also necessary, however, to provide concrete examples of implementing these measures and of their results.
In disclosing performance data, I believe it is necessary for
Toppan to prioritize the disclosure of activities related to issues
that have become social problems, and would therefore like to
see this considered as one issue for future discussion. There are
numerous examples, for instance, the operational status of hotlines and safeguards for those who disclose information in the
public interest, efforts related to shortening working hours andthe work-life balance, along with mental health measures andperformance results. We are seeing the beginning of moves
towards self-evaluation and disclosure of overall CSR activities,
and as a result, I would like to see the Company make it a rulein the area of personal data as well, to take information, wherever possible, and make disclosures on a quantitative andchronological basis, including self-assessments.
The CSR Report 2005 is heavily tilted to data and resources,and I feel that referencing of these data to the main body of thetext is insufficient. If efforts are not made to make it easier to
get a grasp of the overall picture of each individual section fromthe main body of the text, by providing a basic data section,
including quantitative data, and referencing this to detailed
information in the data section, readers may be disadvantaged
and left in doubt as to the importance of the information presented to them. One way to achieve this could be to include
something in the body of the main text that highlights the existence in the report of a data section.

Environmental Report
Revisions have been made to medium term reports and new
targets established in response to progress in environmental
activities. Overall, there is a large amount of quantitative data,
and this portion of the report is satisfactory. There are however,problematic areas. In particular, the section about activities
aimed at preventing global warming uses a base year of 2001,
and even if the Company manages to fulfill 2010 targets it may
not be positively evaluated by society for doing so. It may benecessary to reset these targets at high levels, but I would like to
see performance disclosure and target fixing switched to a 1990
base year in line with the Kyoto Protocol. Also, the management of chemical substances and their reduction should not be
restricted to specified materials alone; I would like to requestthat the Company disclose quantitative data for emission volume, and changes thereof, for all PRTR materials.
Issues for future discussion include environmental impact
reports and target setting activities on a divisional basis. I would
like to see Toppan look into the possibility of introducing higher
quality activities, including aiming for ongoing improvements bysetting “eco factory” standards, and assessment levels, andusing these measures as a base to consider establishing environmental management indexes linked to such standard businessmeasures as sales.
In closing, while there are numerous photographs throughout
the report, they tend to be of facilities and goods, with somegroup photos thrown in. I feel, however, if a little more information come by people in the work place was included, it would
contribute to making the report more vivid.

Yoshiki Midorikawa
Director, Green Consumer Research Group
Co-chair, The Valdez Society

ProfileMr. Midorikawa graduated from the department of law, Chuo University and departmentof literature Waseda University. He worked
mainly in labor administration after entering
public service in the Kanagawa prefectural
government in 1961. After retiring from theprefectural service in 1995, Mr. Midorikawa
then went on to serve as Executive Officer ofthe Kanagawa Prefecture small and medium
business management association until 1999.
Mr. Midorikawa’s NGO/NPO credentials include
participating from 1991 in the Valdez Society,which researches and make proposals on corporate responsibility to the environment
through collaboration between general citizens and companies, and founding the Green
Consumer Research Group in the same year.
He has been a fulltime officer of the Green
Consumer Research Group since April 1999.

Independent Review and Third-party Opinion

79

Independent Review and Third-party Opinion

Company Reaction to Independent Review andThird-party Opinion
AZSA Sustainability Co., Ltd. has provided an independent review for Toppan’s“Environmental reports” since 2001, andprovided the same service for the CSR
Report 2005. Toppan also solicited thirdparty opinion from Yoshiki Midorikawa,director of the Green Consumer ResearchGroup, and co-chair of the Valdez Society. Toppan would like to express its
gratitude for the objective, thought provoking and concrete opinions provided.
The CSR Report 2004 allowed theCompany to review the issue of “whatconstitutes social responsibility for
Toppan,” and this year has seen the
Company get to grips with the six priority themes earmarked in that report, as
concrete topics for implementation. From
this year, in order to be able to look backon our activities over the year and follow-up from the standpoint of “whatthe Company was able to achieve, andwhere it was we fell short,” Toppan will
add a “check sheet,” which will list an
overview of CSR activities and newactivities, provide disclosure to our stakeholders, as well as serving as a selfadministered check for the Company
itself. In the report on the social natureof the Company, AZSA Sustainability
proposed that Toppan take its progress
management of CSR activities along withperformance appraisals and reviews, andexpand them to produce a CSR management system by establishing targets basedon quantitative data. Mr. Midorikawa
also provided a valuable opinion on
activities related to issues that havebecome social problems, noting the needto make disclosures on a quantitativeand chronological basis after adding selfassessments. He also offered a proposalon the handling of basic data anddetailed data, including data drawn up ina quantitative format.
With this check sheet, Toppan aims to
make self-assessments based on what
the Company was able to achieve andwhere it fell short, and disclose this information to our stakeholders. In addition
the Company would also like to see eachand every Toppan staff member takeaction from the standpoint of “WhatCSR activity can I carry out”.
Concerning the environmental report,
AZSA Sustainability also proposed that
Toppan provide a quantitative disclosureof investments and their effectiveness onan annual basis. The Company is awarethat this latest report contains shortcomings in the area of quantitative data
related to qualitative data, as a result ofToppan actively selecting certain listed
information over other data in order toreduce the number of overall pages. The
Company also aims to perform disclosureof quantitative data related to PRTR emissions into the atmosphere and annualchanges in the “environmental activities
data,” page on the Toppan website following proposals in connection with the“PRTR report on emission volumes into
the atmosphere”.
Mr. Midorikawa also proposed that
the Company review targets set against
the backdrop of 1990 performance disclosure bases for gases linked to global
warming, and disclose quantitative dataon PRTR materials. This is broadly in linewith proposals made by AZSA Sustainability, and we will respond in the aforementioned manner. As far as ascertaining
1990 performance levels for gases linked
to global warming is concerned, we aim
to make this an action issue from theupcoming fiscal year, and will investigate
the possibility of calculating the figure
based on deemed co-efficients, while
taking into consideration industry developments on target setting.
We sincerely accept the proposals andopinions made on the Company’s behalf,
and will implement CSR activities uniqueto Toppan that have a direct bearing on
our business. We will also continue tomake ongoing improvements in order tocontinue to be a true corporate citizen.

included in this report a feature on “personal information protection”, which is a
topic closely connected with consumers.
Toppan has also made efforts to clearly
display negative data in special columns
rather than the main body of the text, toenhance personnel and economic performance related data, improve functional links with related articles and data,at the same as also listing item names inthe “comparative GRI guideline index,”
and powering up retrieval functions,even while reducing the overall numberof pages compared to last year.
As a new venture, the Company

invited external stakeholders, and benefited from their efforts as facilitators
when reviewing CSR activities over theperiod of the year, and as a result wasable to make clear selections of issues tobe addressed going forward. It is impossible to give a full account of our activities in the limited space provided, but wehope that this report will serve to help
the reader understand Toppan’s CSR
activities. We look forward to hearing
your opinions and comments.

Editor’s Postscript
This is the second consecutive year
Toppan has released a “CSR report.” Inediting the report, we have attempted togive expression to the opinions and comments received from stakeholders who
took part in the discussions included as a
special section in last year’s report, alongwith those offered in the independent
review process and third party opinion.
Toppan operates mainly in a “B to B”
driven business, but also takes great
pains in making the connection with theconsumer by adding the all important“to C” element of the equation, and it isin this connection that the Company has

80

CSR REPORT 2005

Global Reporting Initiative (GRI) Index

Vision and Strategy
1.1
1.2

P.4–7
P.2–3

ProfileOrganizational Profile
2.1
P.1
2.2
P.4–5
2.3
P.4–5, 66
2.4
P.66
2.5
P.66
2.6
P.66
2.7
P.4–7
2.8
P.66–67
2.9
P.13
Report Scope
2.10
P.1
2.11
P.1
2.12
—
2.13
P.1
2.14
P.66
2.15
P.66
2.16
P.23
Report Profile
2.17
Used as reference
2.18
P.73
2.19
NA
2.20
P.1
2.21
P.1
2.22
P.1, 13, 15, 40, 41, 55, 67
Governance Structure and Management Systems
Structure and Administration
3.1
P.10
3.2
P.10
3.3
P.10
3.4
P.10
3.5
P.67
3.6
P.11, 16, 51
3.7
P.6–7, 44
3.8
P.10
Stakeholder Engagement
3.9
P.13
3.10
P.13–14, 55
3.11
P.14, 55
3.12
P.14, 55
Overarching Policies and Management
Systems
3.13
P.12, 15–17
3.14
NA
3.15
P.67
3.16
P.30–31, 59, 60–61, 63
3.17
P.61
3.18
P.66
3.19
P.8–9, 11, 46–48, 50
3.20
P.16, 29, 33, 50, 69–70, 73

Economic Performance Indicators
Customers
EC1
P.5, 67
EC2—
Suppliers
EC3
—
EC11
—
EC4
—
Employees
EC5—
Providers of Capital
EC6
P.67
EC7
P.67
Public Sector
EC8
P.67
EC12
—
EC9
—
EC10
—
Indirect Economic Impact
EC13—
Environmental Performance Indicators
Materials
EN1
—
EN2
—
EnergyEN3
P.45, 56, 74, 76
EN17
—
EN18
—
EN4
—
EN19
—
Water
EN5
P.76
EN20
—
EN21
P.76
EN22
P.74, 76
Biodiversity
EN6
—
EN23
—
EN24
—
EN7
—
EN25
—
EN26
—
EN27
—
EN28
—
EN29
—
Emissions, Effluents and Waste
EN8
P.56, 59, 75–76
EN30
—
EN9
P.58, 76
EN10
P.45, 58, 75–76
EN11
P.45, 57, 76
EN31
—
EN12
P.45, 76
EN32
—
EN13
P.23, 52–53
Suppliers
EN33—
Products and Services
EN14
P.60–63, 77
EN15
P.60–63, 77
Compliance
EN16
P.23, 52–53
Transport
EN34
P.59
Overall
EN35
P.49, 73

Social Performance Indicators
Employment
LA1
P.71
LA2
P.71
LA12
P.38–39, 71
Labor/Management Relations
LA3
—
LA4
P.39
LA13
—
Health and Safety
LA5
P.11, 39, 71
LA14
—
LA6
P.39
LA15
P.39
LA7
P.71
LA8
—
Training and Education
LA9
P.37, 71
LA16
P.36–39
LA17
P.36–39
Diversity and Opportunity
LA10
P.37–38
LA11
P.71
Human Rights: Strategy and Management
HR1
P.11, 68
HR8
P.26–27
HR2
P.30–31
HR3
P.30–31
Non-Discrimination
HR4
P.11, 38, 68
Freedom of Association and Collective
Bargaining
HR5
P.39
Child Labor
HR6
P.11, 68
Forced and Compulsory Labor
HR7
P.11, 68, 71
Disciplinary Practices
HR9
P.26
HR10
P.26
Security Practices
HR11—
Indigenous Rights
HR12
—
HR13
NA
HR14
—
Community
SO1
P.40–42
SO4
P.24
Bribery and Corruption
SO2
P.11, 68
Political Contributions
SO3
P.11, 68
SO5
P.11, 68
Competition and Pricing
SO6
P.11, 68
SO7
P.11, 68
Customer Health and Safety
PR1
P.11, 32–33
PR4
P.33
PR5
—
P.24, 33
PR6
Products and Services
PR2
—
PR7
—
PR8
—
Advertising
PR9
—
PR10
NA
Respect for Privacy
PR3
P.11, 15–18
PR11—

Note: This table displays the pages on which the corresponding content for required GRI Guidelines can be found only, and does necessarily not certify that these guidelines
are being adhered to. Blue ink denotes an optional item.

Global Reporting Initiative (GRI) Index81