CSR REPORT 2009
Report on Corporate Social
Responsibility Activities

Questionnaire enclosed at the back: Please let us know your opinions
We welcome feedback from readers. Stakeholder opinions are used to enhance the understandability and relevance ofour corporate social responsibility (CSR) initiatives and information disclosure for both stakeholders and the people inside
Toppan. We encourage you to take a few minutes to answer the questionnaire enclosed at the back of the report.

IEditorial Policy
Toppan is disclosing information in the hopes of encouraging dialogue on socialand environmental activities with more people, especially people who have aninterest in Toppan’s CSR activities.
IPeriod Covered
This report mainly covers activities in fiscal 2008 (April 2008 to March 2009),
though information on prior and later years is also included in parts.
IScope and Boundary of this Report
In principle, this report covers the social and environmental activities of Toppan
Printing Co., Ltd. (“the Company”) and Group entities consolidated for accounting
purposes. Most of the information on personnel applies to personnel within Toppan
Printing Co., Ltd., the parent company. The boundary of environmental performance data and environmental accounting is presented on P. 52. Sixty-two
domestic sites and 22 overseas sites are ISO 14001 certified.
ISelecting the Information for this Report
In selecting the information to present in this CSR report, Toppan assesses the“materiality” of the information for society and the Company itself.
To assess whether information can be considered material for society, Toppan
holds in-house discussions on the following points: independent reviews andthird-party opinions, questionnaire responses to CSR reports from inside and outside the Company, other opinions gleaned from dialogues inside and outside theCompany, the content of various guidelines (such as the Environmental Reporting
Guidelines [fiscal 2007 version] from the Ministry of the Environment of Japan and
the GRI Sustainability Reporting Guidelines 2006 from the Global Reporting
Initiative [GRI]), questionnaire items from third-party organizations, and CSRrelated information from media and news agencies.
IReliability
KPMG AZSA Sustainability Co., Ltd. provides external assurance for this report.
As a testament to the reliability of the sustainability information in this report,
Toppan is authorized to attach the following mark. This means that the report
meets the standards for sustainability report assurance and registration established by The Japanese Association of Assurance Organizations for Sustainability
Information (http://www.j-sus.org/).

URL for CSR Report: http://www.toppan.co.jp/english/csr/csrreport.html
This site posts the latest information on ISO 14001 certification, data on the
Global Reporting Initiative (GRI) content index, and other forms of CSR information. If erroneous entries or misprints are found after CSR reports are issued, therelated information will be shown here.
Details on corporate governance can be found at the following URLs.
•Corporate governance reports: http://www.tse.or.jp/tseHpFront/
HPCGDS0701E.do?method=init&callJorEFlg=1 (in Japanese)•Financial statements: http://info.edinet-fsa.go.jp/ (in Japanese)
Terms Used in this Report•CSR: Corporate social responsibility•Stakeholder: A person (or interested party) who has a direct or indirect relationship with a corporation, such as a customer, employee, shareholder/investor, orbusiness partner. A community or society as a whole can also be a stakeholder.
•Stakeholder dialogue: Dialogue and exchange of views with stakeholders•Corporate governance: Framework for the governance of corporate activities•Compliance: Observance of laws, regulations, and corporate ethics•PDCA: A sequence of four procedures—Plan, Do, Check, and Act
Cover
Toppan expresses its commitment to communicate with society in the three primary colors of printing: blue for sincerity, red for enthusiasm, and yellow for
creativity. Toppan takes a sincere, enthusiastic, and creative approach in communication to fulfill the expectations of all of its stakeholders, from customers
and employees to shareholders/investors, business partners, communities, andsociety at large.

■ ■ ■The cover of this report is printed on ALUGLAS®, a high-brightness sheet with ametallic shine, from Toppan Prosprint Co., Ltd. ALUGLAS® comes in many types,
including Silver, Gold, Hologram, and Pearl, each designed in consideration of theenvironment. The Pearl series, a highly recyclable type, is chosen for this report.
Publication Dates

IEye-friendliness and Readability
In line with Toppan’s in-house guidelines, this report considers eye-friendlinessand readability. It also incorporates universal-design displays for as many people
as possible regardless of individual differences in color perception. Upon entrustment by Toppan, the Color Universal Design Organization (CUDO), a nonprofit
organization, has reviewed and certified this report for its universal design.

Previous report: November 2008
Current report: October 2009
Next report: October 2010 (planned)
Contact Information
CSR Promotion Department, Legal Affairs Division, Toppan Printing Co., Ltd.
(Tokyo, Japan)
Email: csr@toppan.co.jp

Contents

Executive Message

2

Group Business Outline

4

Highlights 2008–2009
Special Reports:
Businesses Designed to Help Solve Social Issues

8

CSR Activity Topics

12

CSR Management
Toppan’s Social Responsibility

16

Review of CSR Activities and New Initiatives

20

Corporate Governance24Compliance

26

Information Risk Management

28

Conduct Guidelines andInformation Management Policy

30

Social Report
For Customers

32

With Business Partners

36

With Communities

38

With Employees

42With Shareholders and Investors

50

Environmental Report
Overview of Environmental Activities

52

Review of Fiscal 2008 Results and Future Targets

54

Environmental Management

58

Environmental Conservation Activities

64

Environmentally Friendly Products andEnvironment-related Business

68

Conserving Biodiversity

71

Environmental Data

72

Third-party Opinion and External Assurance
Third-party Opinion

77

External Assurance

78

Company Reaction to the Third-party Opinion andExternal Assurance

80

TOPPAN CSR REPORT 20091

Contributing to Fulfilling Lifestyles
The Toppan Group seeks to serve society as a trustworthy, respected,
and robust corporation that contributes to the realization of a sustainable world.

To Be a Trustworthy, Respected, and Robust
Corporation

The Toppan Group is now orchestrating full-fledged measures for the early recovery of its business performance.
I feel that it is exactly in such a situation that we must press

The subprime loan crisis in the United States has triggeredon firmly with our corporate responsibility initiatives.

economic downturns all over the world. The current world-

Sustainable development and the sustainable growth ofwide recession has stirred chaos in the global economy,

a company are mutually dependent; neither can exist with-

causing great damage to many companies in many countries.

out the other. It is therefore vital, for us at Toppan, to fulfill

Toppan has not been spared. While we have striven to

our own corporate social responsibilities towards sustain-

create new businesses, accelerate global business opera-

able development and the sustainable growth of thetions, and increase profitability through structural reforms

Company. In our ongoing drive to fulfill our corporate socialand cost reductions, business results have worsened.

responsibilities globally, we have been participating in the

Toppan recorded a loss at the end of fiscal 2008, the first

United Nations Global Compact and supporting its 10 prin-ever reported since its listing in 1949.

ciples since September 2006.
I have always urged employees to work together to build
up a company that is trusted and respected by society andremains strong based on this foundation of trust. It is now
the time, I am convinced, to grasp the significance of thisslogan and move into action.

Towards a Sustainable Society
We position TOPPAN VISION 21 as the foundation for allof our corporate activities.
TOPPAN VISION 21 consists of a Corporate Structure(the Corporate Philosophy, the Corporate Creed, and a setof Conduct Guidelines defining the Group’s important values and standards) and five Business Fields based on the
Corporate Structure.
In my view, the goal of Toppan’s corporate social responsibility is to realize the Corporate Structure. All of the people working in the Group must accurately understand their
responsibilities to society and to stakeholders, and endeavor
to fulfill those responsibilities in their daily business operations. Our progress in this direction is certain to help Toppan
contribute to the creation of a sustainable society.

Reviewing Environmental Management
In 2008, the concerted action of international society to
mitigate global warming moved into a new phase. Global
leaders met to discuss the environment at the Hokkaido
Toyako Summit in Japan, and the first commitment period

2

TOPPAN CSR REPORT 2009

of the Kyoto Protocol was commenced across the globe.

To cite an instance, our microfabrication and coating

Toppan established the Ecology Center in 1991 at thetechnologies have been applied to develop single nucleotide

head office to implement Company-wide environmental

polymorphism (SNP) chips for genotype analysis. An SNP

conservation activities on a full scale. Through intensive

chip can easily detect a gene signature from a single drop

reviews from a managerial viewpoint, however, we haveof a patient’s blood. These chips will play a vital role in real-

discovered various inconsistencies and inefficiencies in ourizing optimal therapies for individual patients through per-environmental activity.

sonalized medicine. The benefits from this will be multifold,

To respond, we launched what we call the Pro-Green

beginning with reductions in the incidences of excessive

Activities in fiscal 2008, a series of environmental measures

dosing and adverse drug effects. Over time, the ever-risingto spread augmented cost-reduction and morale-improving

expenses for medical care will be better contained.

effects onto our corporate operations. Plant managers

In a contest held based on the principles of the Corporate

across Japan have been appointed to run and oversee thePhilosophy in fiscal 2008, the Company encouraged employ-

activities, while directors have promoted their own measuresees to submit business proposals for the resolution of

to position environmental considerations as stable andbroader social issues. We hope to enhance employee

familiar elements of employee operations at Toppan. We willawareness of social issues throughout the Company andadvance the activities by setting numerical targets on specificbegin developing employee ideas into new businesses withmeasures and conducting audits and reviews repeatedly.

socially redeeming values for the future.

Photovoltaic power generation, meanwhile, has beendrawing recent attention as a leading environmentally friendly

Working with Our Stakeholders

power source using green energy.
Solar cell back sheets from Toppan are fabricated based

Corporate social responsibility is a responsibility to all corpo-

on a vacuum deposition process for highly functional bar-rate stakeholders. Stakeholders will seldom be satisfied withrier films, a technology acquired in the Living Environment

a company’s CSR activities, no matter how thoroughgoing

field. In April 2009, we completed the construction of one

or extensive, unless the activities are designed to respond toof Japan’s largest-scale manufacturing facilities for next-

the needs of stakeholders and society at large. It is no exag-

generation back sheets for solar cells (in Fukaya City,

geration to report that we begin every effort to fulfill our

Saitama). The cells fabricated with the back sheets output

CSR by listening sincerely to the voices of the stakehold-from this new plant each year will have an annual power

ers—their suggestions, opinions, expectations, and desires.

generation capacity of more than 2 gigawatts.

For better focus and refinement in our dialogues with

Just as a car must have wheels, our environment man-stakeholders, we began convening the CSR Promotion Study

agement must have environmental conservation activities

Group in an annual meeting to observe and evaluate ourand systems in place for the development and production

CSR activities on a fixed-point basis, starting from fiscal 2007.

of environmentally friendly products. And just as the wheels

The suggestions, opinions, and advice offered in the sec-of a car must rotate in synchronicity, so too must the com-

ond meeting, held in February 2009, will be used to improveponents of our environmental management.

the PDCA cycle to drive our CSR management in the future.

The Toppan Group strengthened the organizational func-

Henceforth, Toppan will be promoting information dis-

tions of the Ecology Center to reinforce its environmental

closure on CSR activities as a fundamental approach for

management in fiscal 2008. The Group also reviewed

communication with stakeholders. We are eager to hear

Toppan’s Declaration on the Global Environment and estab-your candid opinions in this regard.

lished The Toppan Group Declaration on the Global
Environment, in April 2009. We have reaffirmed our deter-

The Toppan Group will maintain its work to serve society

mination to accelerate environmental activities across Group

as a trustworthy, respected, and robust corporation com-companies on every level.

mitted to the creation of rich and fulfilling lifestyles in a sustainable world. We rely on your ongoing support and

Towards Awareness and Solutions for
Broader Social Issues

guidance in the future.
July 2009

Another important initiative for fulfilling Toppan’s social
responsibility, as I see it, is to recognize broader social

Naoki Adachi

issues and provide products and services to help resolve

President & CEO
Toppan Printing Co., Ltd.

them in parallel with issues to do with the environment.

TOPPAN CSR REPORT 20093

Group Business Outline
Toppan has developed its activities through the integrated strength of the Group in five fields of business:
Information & Networks, Living Environment, Electronics, Personal Service, and Next-generation Products.
Toppan’s business activities in all of these fields have been expanded with printing technology at the core.

Corporate Profile
Corporate nameToppan Printing Co., Ltd.
Head office
1, Kanda Izumi-cho, Chiyoda-ku,
Tokyo 101-0024 Japan
Phone +81-3-3835-5111

Business Fields
IInformation & Networks
Providing solutions to increase the value of information andeffectively deliver information for clients who require smoothcommunication

Established
January 17, 1900
President & CEO
Naoki Adachi
Number of employees (Nonconsolidated)
11,548 (as of the end of March 2009)

ISecurities and Cards

ICommercial Printing

IPublications Printing

Number of employees (Consolidated)
47,522 (as of the end of March 2009)
Capital (Nonconsolidated)
104.9 billion yen

ILiving Environment
Providing customers around the world with products andservices optimal for creating fulfilling lifestyles in fields suchas medicine, food, and housing

Group Profile
The Toppan Group comprises Toppan Printing
Co., Ltd. and 219 related companies (195subsidiaries and 24 affiliates) engaged in manifold businesses in three main fields:
Information & Networks, Living Environment,
and Electronics.
On page 5 you will find an outline of thepositioning of Toppan and its related companies in these fields.
(The business divisions in the Business Fields
on page 4 are presented under the new corporate structure adopted from April 2009.)

IPackaging

IElectronics
Working with leading-edge technologies to provide electronic
components with strong potential to be adopted as de facto
standards

IFor Displays

4

TOPPAN CSR REPORT 2009

IIndustrial Materials

IHigh-performance
Components

IFor Semiconductors

IPersonal Service

INext-generation Products

Providing customers with Toppan’s original
brand of innovative
information services
and devices to enrich
the links between
people and goods
IMapion, Internet-based
map information service(in Japanese)

Providing high-performance industrial materials
with links to the next generation by developing
fields of business withgrowth potential

IHydrogen sensor

Customers

Toppan Group Structure
Manufacturing Companies
Toppan Display Co., Ltd.
Toppan Graphic Communications
Co., Ltd.
Toppan Seihon Co., Ltd.
18 other companies
Toppan Forms Tokai Co., Ltd.
12 other companies

Toppan Travel Service Corp.

Toppan Printing Co. (America), Inc.
(USA)

Toppan Multisoft Ltd.
Tokyo Shoseki Co., Ltd.
24 other companies

Toppan Printing Co., (H.K.) Ltd. (PRC)
Toppan Printing Co., (Shenzhen)Ltd. (PRC)

Living Environment 24%∗Data Products Toppan Forms Ltd.
(Thailand)
7 other companies∗Beijing SNP Leefung Changcheng
Printers Co., Ltd. (PRC)
2 other companies

Manufacturing Companies
Toppan Plastic Co., Ltd.

Manufacturing andSales Companies

Toppan Kansai Packs Co., Ltd.

Toppan TDK Label Co., Ltd.

Toppan Saga Yoki Co., Ltd.

Toppan Containers Co., Ltd.

Mikkabi Toppan Printing Co., Ltd.
18 other companies

Tamapoly Co., Ltd.
Toppan Prosprint Co., Ltd.
1 other company∗Toyo Ink Mfg. Co., Ltd.
3 other companies
P.T. Toppan Printing Indonesia(Indonesia)
Toppan Interamerica Inc. (USA)
7 other companies

Electronics 17%

Toppan Shiga Seimitsu Co., Ltd.
5 other companies

Total Media Development InstituteCo., Ltd.

Tosho Printing Co., Ltd.
5 other companies

Toppan Printing Co., (Shanghai) Ltd.
(PRC)
10 other companies

Niigata Toppan Printing Co., Ltd.

froebel-kan co., ltd.

Toppan Forms Co., Ltd.

T.F. Company, Ltd. (PRC)
9 other companies

Manufacturing Companies

Sales Companies

Manufacturing andSales Companies
NEC Toppan Circuit Solutions, Inc.
Toppan CFI (Taiwan) Co., Ltd.

∗Toppan M&I Co., Ltd.
6 other companies

Toppan Printing Co., Ltd. (Manufacturing and sales company)

Information & Networks 59%

Toppan Graphic Co., Ltd.

Manufacturing andSales Companies

SNP Corporation Pte. Ltd. (Singapore)Toppan Printing Co. (Australia) Pty.
Ltd. (Australia) 33 other companies

Sales Companies
Toppan Cosmo, Inc.
4 other companies

Sales Companies
Toppan Electronics (Taiwan)Co., Ltd.
2 other companies

Toppan Photomasks, Inc. (USA)
11 other companies∗Advanced Mask Technology
Center GmbH & Co. KG (Germany)
1 other company

Notes:•No symbol: subsidiary—195 companies ∗: affiliates—24 companies (as of the end of March 2009)•Toppan Group’s business activities are usually divided into five fields. Here, however, they are divided into three fields based on the current sizes of thebusinesses and other factors.
•The composition ratios given under each business field are percentages of overall sales contributed. (The Net Sales by Business Field are shown on P. 7.)• Among Toppan’s subsidiaries, Toppan Forms Co., Ltd. and Tosho Printing Co., Ltd. are listed on the first section of the Tokyo Stock Exchange.
•Toppan Printing Co., Ltd. completed the procedures to acquire SNP Corporation Pte. Ltd. of Singapore in September 2008. Toppan Printing’s voting interest in
SNP Corporation is 100%. Consequently, SNP Corporation Pte. Ltd. became a consolidated subsidiary of Toppan Printing Co., Ltd.
•Toppan operational sites span across 21 countries and regions, including Japan.

Products
Materials
Service■ Boundary of this Report•In principle, this report covers the social and environmental activities of Toppan Printing Co., Ltd. and Group entities consolidated for accounting purposes.
•Most of the information on personnel applies to personnel within Toppan Printing Co., Ltd.
•The boundaries of environmental performance data and environmental accounting are presented on P. 52.
•Sixty-two domestic sites and 22 overseas sites are ISO 14001 certified.

TOPPAN CSR REPORT 20095

Outline of Consolidated
Operating Performance
The Japanese economy faced an
extremely severe situation in fiscal 2008.
The vast slowdown of the world economy originating from the U.S. had an
extreme impact on real economic activities in Japan. Corporate profits rapidly
shrank, resulting in a spread of production and employment adjustments anda precipitous decline in stock markets.
In the printing industry, the prices of
paper and raw materials rose markedly
as a side effect of the sharply higher
prices of crude oil. Toppan and otherprinting companies were forced to operate in an unforgiving business environment marked by cuts in corporate
advertising expenditure, sluggish personal consumption, and significant stagnation in the electronics-related market
in the second-half of the fiscal year.
In the time intervening, the Toppan

Group has pressed forward full-fledged
efforts based on the Corporate Structureand five Business Fields for the 21st
century, as defined in TOPPAN VISION
21. In the Information & Networks field,
the Group has provided market-oriented, high-added-value solutions for abroad range of customers. In the Living
Environment field, it has stepped up thedevelopment and sales of products
responsive to the growing demands forsafety and eco-friendliness. In the Electronics field, it has striven to enhancecompetitiveness through technology
development and optimized production
site arrangements globally. And in the
Information & Networks field, it has
integrated its sales departments andworked to reduce costs and improve
quality. Yet with the worldwide recession
stemming from the subprime loan crisisin the U.S., Toppan’s operating performance was hit especially hard in thesecond-half of the fiscal year.

Consequently, consolidated net sales
decreased to 1,617.3 billion yen in fiscal
2008 (a 3.2% decline from the previousyear), while consolidated operating
income decreased to 29.1 billion yen(a 59.5% decline from the previous year).
As a result, Toppan weathered aconsolidated net loss of 7.7 billion yen(versus a consolidated net income of
38.5 billion yen in the previous year),principally due to the inclusion of a loss
from valuation of marketable securities
and investment securities and an
impairment loss of long-lived assets due
to underperforming operations at
Toppan Photomasks, Inc., a company
hard hit by the deepening slump in
semiconductors.

Net Sales

Operating Income

Net Income or Loss

■Consolidated ■Nonconsolidated (Billion yen)
1,670.3 1,617.3
1,548.2 1,557.8
1,500 1,413.5
1,800

1,200
952.8

947.1

948.7

1,022.9

100■Consolidated ■Nonconsolidated (Billion yen)
91.0
910
86.9

80
60
40

300

20

0

0

39.9

20

38.0
30.3

31.6 29.1
291
7.8

2005

2006

2007
2008
(Fiscal year)

Number of Employees

2004

2005

2006

2007
2008
(Fiscal year)

Number of Employees by Business
Field (Consolidated)■Consolidated ■Nonconsolidated (Employees)

Electronics
6,672(Employees)
Company-wide positions 973

LivingEnvironment
11,510Information & Networks
28,36747,52250,00040,00032,72435,95436,757 38,570

30,00020,00010,0000

6

10,548 10,582

10,899 11,181 11,548

2004

2006

2005

2007

TOPPAN CSR REPORT 2009

40.5

21.5

600

2004

■Consolidated ■Nonconsolidated (Billion yen)
38.5
385

30
967.6

900

60,000

40

72.1
721

69.3

50

2008
(Fiscal year)

21.9
15.1

26.0
260
20.2

10

25.2

5.8
58

0
–10

2004

2005

2006

–7.7
2007
2008
(Fiscal year)

Key Financial Data (Consolidated)
Fiscal 2005
1,548,208
91,085
15,1481,727,636
803,678
304,736
119,221
27,59334,073
1,648
1,050
22.13
22.02
1,216.04
20.00
0.9
1.9
206,974
35,954

Fiscal 2004

1,413,580
86,93840,574
1,483,477
768,245
205,008
86,62522,255
22,154
1,380
1,002
60.09
59.94
1,154.21
19.00
2.8
5.4
168,804
32,724

Net sales (million yen)
Operating income (million yen)
Net income or loss (million yen)
Total assets (million yen)
Net assets (million yen)Interest-bearing debt (million yen)
Capital expenditures (million yen)
R&D expenses (million yen)
Current income taxes (million yen)
Share price—high (yen)Share price—low (yen)Net income or loss per share (Basic) (yen)Net income per share (Diluted) (yen)Shareholders’ equity per share (yen)Dividends per share (yen)Return on assets (ROA; %)Return on equity (ROE; %)Cash and cash equivalents at end of period (million yen)
Number of employees

Notes:
1. Net sales do not include consumption taxes.
2. The number of employees is the number of employees working at the Company. The
number of non-regular employees for fiscal 2008 stood at 6,912 on consolidated basis
and 1,270 on a nonconsolidated basis (the average number of employees throughout
the fiscal year, including part-time workers but excluding temporary staff).
3. The net income per share (diluted) for fiscal 2008 is not included in the above table.
This amount turns out to be a net loss per share in spite of the dilutive shares issued.

Electronics
282.0 (17%)

Fiscal 2007
1,670,351
72,15338,523
1,787,408
940,303
290,324
72,91129,732
16,214
1,396
965
58.63
58.49
1,223.41
22.00
2.1
4.8
224,315
38,570Fiscal 2008

1,617,341
29,186–7,7301,681,745
867,738
343,546
92,022
28,791
13,291
1,230
523–11.87—
1,148.00
22.00
–0.4
–1.0
236,196
47,522

4. Net assets have been calculated based on the “Accounting Standard for the
Presentation of Net Assets in the Balance Sheet” and the “Guidance on the
Accounting Standard for the Presentation of Net Assets in the Balance Sheet” since
fiscal 2006.
5. High and low share prices are prices on the first section of the Tokyo Stock Exchange.

Capital Expenditures

Net Sales by Business Field

Fiscal 2006
1,557,876
69,376
26,067
1,837,719
918,002359,631
133,722
29,13232,354
1,645
1,161
39.58
39.40
1,222.27
20.00
1.5
3.2
240,596
36,757

Total Assets & Return on Assets (ROA)(Billion yen)(Billion yen)
150

133.7

1,727.6

119.2

120
90

(Billion yen)
2.8
2,000

1,500
72.9

2.1

1,483.4(%)
3.0

1,681.7
2.0

1.5

92.0

86.6
866

1,837.7 1,787.4

0.9
1,000

1.0

60
500

30
LivingEnvironment
385.5 (24%)

0–0.4Information & Networks
949.7 (59%)

0

2004

2005

2006

2007
2008
(Fiscal year)

0

2004

2005

2006

2007 2008(Fiscal year)–1.0

Note: Here, sales are divided into three business fields
based on the sizes of the businesses and otherfactors.

R&D Expenses

Net Sales by Region
Asia, excluding Japan99.7 (6%)(Billion yen)
Other regions 30.7 (2%)

Net Assets & Return on Equity (ROE)(Billion yen)

35
27.5

28

29.1

29.7

(Billion yen)
1,000

28.7
800

768.2

600

5.4

22.2
21

918.0

(%)
8.0

940.3
867.7

803.6

6.0

4.8
3.2

4.0

1.9
14

400

7

200

0
Japan 1,486.8 (92%)

2004

2005

2006

2007
2008
(Fiscal year)

0

2.0
–1.0

2004

2005

2006

2007 2008(Fiscal year)

TOPPAN CSR REPORT 2009

0
–2.0

7

Special
Report1

Towards the Realization of Personalized
Medicine
Genotype Analysis System with SNP Chips

The ageing population, dwindling birthrate, and spread of obesity and lifestyle-related diseases have drawn
increasing attention to the fields of health and medicine in Japan. Globally, the Millennium Development Goals
targeted for achievement by 2015 through the combined efforts of international societies include various
goals in public health, such as the prevention of the spread of HIV/AIDS, malaria, and other epidemics.
Toppan imaginatively uses the technologies it has acquired through printing to develop businesses
in support of health, one of the most important foundations for humankind and society.

Personalized Medicine and Toppan
When patients undergo personalized medicine, they receive
optimal individualized therapies suitable for their own physical characteristics. A genotype screening of a patient withleading-edge analytical technologies before prescription of
medication will enable a doctor to assess whether a drug
will have a favorable or adverse effect on the patient andprescribe an appropriate drug at the optimal dose.
If adopted widely, personalized medicine will help to minimize the administration of drug regimens likely to be lessefficacious or to have side effects. This, in turn, will help
prevent and alleviate pain and physical burdens for patientsand limit healthcare expenditures through enhancements inthe efficiency of medical care.
Since 2003, researchers running the BioBank Japan
Project on the implementation of personalized medicine
have been laying the groundwork for the realization of personalized medicine in Japan. This project team has alreadycollected DNAs, blood serum, and clinical data from some
300,000 subjects with 47 types of disease. With these samples and data, the team has been carrying out studies to
identify how individual genetic differences correlate with drug
efficacy, side effects, and disease.
Since 1999, Toppan has been establishing a set of new
research themes with the aim of launching businesses in thelife sciences, a field of growing importance for society. Basedon the themes, the Company has worked together withRIKEN, Japan and other entities to develop a genotype

8

TOPPAN CSR REPORT 2009

analysis system with single nucleotide polymorphism (SNP)*
chips for medical application. Toppan, RIKEN, and RIKEN
Venture Capital Co., Ltd. jointly founded a new company
called RIKEN GENESIS CO., LTD. in October 2007.
Researchers at RIKEN GENESIS seek to realize the practicaluse of personalized medicine by providing genotype analysis
services on a contract basis and marketing compact genotype analysis systems and chips applicable to patient examinations at hospitals and other healthcare facilities.
Millennium Development Goals
http://www.undp.org/mdg/
BioBank Japan Project on the implementation of personalized medicine
http://www.biobankjp.org/ (in Japanese)
RIKEN Center for Genomic Medicine at the RIKEN Yokohama
Institute
http://www.src.riken.jp/english/index.html
RIKEN GENESIS CO., LTD.
http://www.rikengenesis.jp/en/index.html

Genotype Analysis System with SNP Chips for
Medical Application
With the genotype analysis system, a single SNP chip candetermine a patient’s genotype from a drop of the patient’s
blood in only an hour.
The procedure works as follows. A blood sample is collected from the patient. DNA is extracted from a blood cellin the sample, and a solution containing the extracted DNA
is dispensed onto an SNP chip pre-coated with dots ofAnalysis Procedure with an SNP ChipDNA

Reagent

DNA solution

Fluorescence generated
orLoading the chip
into the system

Dispensing theextracted DNA
onto the chip
Cell

NucleusChip

dried reagent. The reagent on the chip can amplify a tiny
strand of DNA on a massive scale and generate fluorescence when particular types of SNPs are applied. Basedon the presence or absence of fluorescence activation via
reaction with the reagent, the system can accurately predict differences in the patient’s response to a particulardrug, in terms of efficacy and side effects.
Various Toppan technologies acquired through printing
are used to fabricate the chip, including techniques in microfabrication, surface treatment, formation, and coating. With
these technologies, Toppan has formed a precision chipon which a tiny amount of DNA correctly reacts to thereagent and onto which the reagent can be coated withextreme accuracy.

Fluorescence not generated

to-child transmission of HIV. Nevirapine is relatively moderate
in price, but patients treated with the drug can have side
effects such as drug rashes. Mahidol University in Thailand
and RIKEN in Japan have been conducting a study to determine the risk of drug rash before giving a patient Nevirapine.
Toppan will continuously provide its genotype analysis
systems for various other research purposes besides thatjust mentioned. Applying the study results to practical use,
Toppan will strive to upgrade its genotype analysis system
in order to achieve broader medical application and more
extensive benefits.

Clinical Studies in Thailand
The estimated number of HIV carriers stood at 33 million
worldwide in 2007. An estimated 2.5 million people were
newly infected, and 2 million or so died from AIDS. Though
the growth of HIV carriers shows signs of slowing, tremendous numbers of people are still being newly infected.
HIV/AIDS will remain a devastating social problem until drugmakers develop medicines capable of completely curing
AIDS after symptoms appear.
The HIV epidemic in Thailand spread relatively early in
Asia and reached a serious stage in around 1990.
Preventive activities by the Thai government to abort the
epidemic have been effective, and the number of newly
infected people has been decreasing. Yet even with theprogress against the disease, an estimated 580 thousandpeople in Thailand were HIV carriers in 2005.
Toppan provides genotype analysis systems with SNP
chips for studies on dosing strategies for anti-HIV drugs in
Thailand. Tests are to be conducted to predict side effects
of Nevirapine, a globally prescribed antiretroviral agent effective in postponing the onset of AIDS and preventing mother-

SNP chip (left) and genotype analysis system with SNP chips (right)

Laboratory in Ramathibodi Hospital, a facility attached to Mahidol University
in Thailand*SNP: The individual variations from person to person at birthderive from differences in the estimated 3 billion base pairs in the
genome sequence. A single nucleotide polymorphism (SNP) is asite in the genome sequence where a single nucleotide varies
from person to person. Differences in SNPs cause individual
variations, including variations in drug sensitivity and diseasesusceptibility. By examining these differences, physicians cantailor drug regimens and therapies to individual patients.

TOPPAN CSR REPORT 20099

Special
Report2

Energizing the Mind throughthe Power of Art
Clinical Art

The human mind is sometimes unconsciously exhausted by our busy lives, relationships withothers, and gaps between ideals and reality. More and more people of every age are overwhelmed by stress.
Some lose confidence and are finding themselves trapped in negative mindsets; others close their hearts.
And patients with dementia and their families suffer from heavy burdens.
The fostering of creativity and compassion in children today is important for the society of the future.
In fiscal 2008, the Toppan Group launched a new endeavor by enlisting a company that uses the power ofart to help resolve various issues facing society.

Clinical Art“Clinical art” is a type of art therapy that seeks to stir thesenses and activate the right brain through creative activities such as painting and carving. Its purposes include theprevention of dementia, the cultivation of acute sensitivity,
and the refreshing of tired minds. The Institute of theFormative Art Co., Ltd. in the Toppan Group operates abusiness using clinical art in Japan.
The Institute of the Formative Art began exploring thefield of art therapy in the 1990s. Since 1998, it has
researched and developed curricula as a member of theart therapy study group at the Kansei Fukushi ResearchCenter at Tohoku Fukushi University. One of its main activities is to train clinical art instructors called “clinical artists”
with specialized knowledge and the high-quality skills necessary for working in welfare and education. Some 150
clinical artists are now engaged in clinical art across Japan.
As of the end of March 2009, two thousand people hadcompleted training courses for clinical artists in Tokyo andother cities in Japan. Eight local governments and 11 medical corporations and healthcare facilities for the elderly
have introduced clinical art therapy to prevent and remedy
dementia among the elderly.
In addition to the training courses for clinical artists, theInstitute operates original programs for children. Foremost
among them are the Da Vinci Class to foster creativity inchildren (from two to twelve years old) and several pro-

10

TOPPAN CSR REPORT 2009

grams to leverage the potential of art for the cultivation ofaesthetic sensitivity, environmental awareness, and human
compassion in daycare centers, kindergartens, and elementary schools.
The Institute has developed more than 400 types of clinical art curricula so far.

About the Curricula
Anyone can paint a picture. But how many people see
painting as their forte? Every curriculum developed at theInstitute is designed to encourage the participants to concentrate on the creation process and experience a senseof accomplishment and inspiration when they complete
their artworks. The motto for clinical artists is “Touch, listen, and praise, but never judge.”
The first step of the curriculum is to help participants feelthe essence of the subjects of their pictures or formative
artworks with their five senses. If the theme is rain, forexample, they listen to the sound of falling rain. When thetheme is a fruit, they taste the fruit, smell it, and hold it intheir hands to feel the texture and weight.
The next steps are to create a representation of what
they have just experienced by selecting and combining colors and materials into actual forms. When starting a picture, the participant is asked not to draw an outline, but topaint the background or spread the paint out in patterns
that approach his or her mental picture. Through thisnuanced process of creation, anyone can create an excellent work of art with an individual worldview. The processactivates the right brain by recruiting the five senses towork actively.
Every finished creation is an outstanding, highly individual artwork. In the last step, clinical artists praise the goodelements of each work, without evaluating the skill of execution. When participants receive the praise, positive feelings such as joy, willingness, confidence, and self-affirmation
are awakened in their hearts and delightful memories areformed.
In fiscal 2008, Komatsu Elementary School in KasukabeCity in Saitama, Japan adopted this program for a period
of integrated learning. The pupils experienced a clinical art
curriculum first, then became supporters of clinical art for
the elderly in the local community. The program has beenongoing since fiscal 2006. By cultivating children’s individual sensibilities, the program encourages children to praise
each other’s works as a matter of course. It can also bring
lively smiles to the faces of elderly participants. The program
has been highly evaluated for its positive effects in both
welfare education and the fostering of future generations.

Towards Fiscal 2009
Since November 2008, the Institute has been running acollaborative study with Tokyo University of the Arts. The
purpose is to develop curricula with which to refresh theminds of working people and help them discover entirely
new viewpoints and ideas. Toppan Group employees haveparticipated in a test program as part of the study. The
Institute will fully apply the curricula developed in this collaborative study to operate art salons and art-for-mentalhealthcare business as a means of promoting mental healthamong working people.
With rising awareness of each person’s need to make asocial contribution, an increasingly wide variety of people
are learning and experiencing clinical art. The Institute willcontinue to use the power of art to contribute to society inthe future.

Example of a Curriculum: Bird of Paradise Flower (Strelitziaceae)a
To stir the senses
With a roller spread out paints with colors imagined to be found in a tropical region. Imagining
and choosing colors stimulates and sensitizes
the mind.

a

To activate the right brain
Mark out the shape of the background. Focusing
on the shape of the background activates theright brain.

To finish the work
Once the senses are sharpened, watch theStrelitziaceae carefully and paint in the details of
the flower. The process “further” activates senses
and helps the participants create works that givethem great joy.

TOPPAN CSR REPORT 200911

CSR Activity Topics 2008–2009
Topic 01

Topic 02

Electronic-paper Signage for Emergency
Communication Support

Showing VR Productions at an Exhibitionin Paris

Toppan participated in a field test for a local emergency
communication support system now being developed by
the Kanto Bureau of Telecommunications, a division of
the Ministry of Internal Affairs and Communications ofJapan. The chief function of this system is to transmit
emergency information within disaster-stricken areas via
radio. At a field test conducted around Ikebukuro Stationin Tokyo on January 23, 2009, Toppan provided digital
signage, an electronic-paper display device, to post the
emergency information.
Electronic-paper signage has features of high viewability even under sunshine, ultra-low power consumption*,and screen display retention after power shutoff. The
signage holds promise as an emergency display medium
for conveying information within disaster-stricken areas.
Its chief advantage is the ability to retain the latest information displayed on the screen before power shutoff:when a disaster cuts off the power, the information stays
on display.
As an active electronic-paper signage provider, Toppan
has been operating a machikomi (town communication)
service using electronic-paper signage as an advertising
medium at subway stations in Sendai City in Miyagi,
Japan. Toppan will further develop its signage technology
by examining the strengths and weaknesses of the system for disaster preparedness, as revealed by the
Ikebukuro field test.

Convinced that virtual reality (VR)*1 technology has great
potential as a visual medium for the exhibition of cultural
assets, Toppan has created numerous VR productions ofcultural assets using color management and other printing-related technologies. Based on its experience in VR
production, the Company has created VR reproductionsof Kinkaku-ji and Ginkaku-ji, two of the most historicallyimportant Japanese temples in Kyoto (formally known as
Rokuon-ji and Jisho-ji). From October to December 2008,
the Petit Palais museum in Paris used the latest ultrahigh-definition 4K*2 projectors to display these VR reproductions at “Art Treasures from Shokokuji, Kinkakuji andGinkakuji temple,” an exhibition to commemorate 150
years of exchange between France and Japan and 50
years of friendship between Paris and Kyoto. The beautiful, immersive ultrahigh-definition images on the large
screen convey the lifelike experience of actually standingon the temple grounds. They also enable views not possible at the sites themselves.

Kinkaku-ji

Kyoko-chi(mirror pond) seenfrom the rooftop

Left: Large-size electronic-paper signage at Toshima Post Office
Right: Electronic-paper signage mounted on a bus stop sign at Higashi
Ikebukuro 2-chome*Ultra-low power consumption: The former, a post office sign, consumes about 24 watts. The latter, a bus stop sign, consumes about
9 watts.

12

TOPPAN CSR REPORT 2009

*1 Virtual Reality (VR) allows viewers to move freely within computergenerated 3D graphic images and experience a sense of actuallyoccupying 3D space.
*2 4K is a format advocated by Digital Cinema Initiatives, LLC (DCI),a digital cinema standardization organization led by seven leading
U.S. motion picture companies. It has a resolution of 8.85 million
pixels (4,096 × 2,160 pixels; 4K × 2K), more than four times that offull hi-vision.

Topic 03
Awards for Environmental Initiatives at
Toppan Plants in Japan
Toyama Plant of NEC Toppan Circuit Solutions, Inc. (TNCSi)
In fiscal 2008, the Director General of the Chubu Bureau
of Economy, Trade and Industry awarded the Toyama
Plant of TNCSi for a series of energy-saving measuresjudged to be outstanding among subscribed projects
carried out in the Chubu (central) region in Japan. The
plant’s adoption of a new humidity-control system
received high praise. Compared to conventional systems,
this system consumes less energy for the control of room
humidity. It works via a two-step process: extract heatdissipated from existing plant equipment to warm up air,then humidify the warmed air with spraying machinery.
Kannabe Toppan Co., Ltd. (the current Fukuyama Plant ofToppan Nishinihon Printing & Processing Co., Ltd.)In fiscal 2008, Kannabe Toppan Co., Ltd. received an
Outstanding Energy-Efficient Factory Award from the
Director General of the Chugoku Bureau of Economy,
Trade and Industry of Japan. Kannabe Toppan’s successin reducing energy consumption per unit of production
volume by 5-10% year-on-year was highly commended.
Its measures have included a monthly energy-saving
committee, a switchover to highly efficient lighting
apparatus, and the introduction of a “free cooling” systemthat works with outside air in wintertime.
Niigata Plant in the Electronics Division (the current
Niigata Plant of Toppan Electronics Products Co., Ltd.)The Niigata Plant in the Electronics Division received the
Excellent prize at the PRTR* Awards 2008 in Japan. The
PRTR Awards were established to recognize companies
for outstanding achievements in the management ofchemical substances at factories and in risk communication with local governments and residents. The plant was
highly commended for its progress in chemical substancemanagement in accordance with its own set of welldefined policies that go beyond the environmental management policies across the Company. In setting themanagement policies, the plant carefully considered theproperties of the region hosting the plant and the featuresof the products the plant manufactures. The plant wasalso commended for its many years of dialogue withneighboring residents.

Topic 04
Newly Constructing One of Japan’s
Largest-scale Plants for Next-generation
Back Sheets for Solar Cells
In April 2009, Toppan completed the construction of the
Fukaya Plant in Fukaya City in Saitama, a new manufacturing site for next-generation functional films. The
Company will build up production lines at the plant forthe manufacture of a wide variety of functional films tokeep up with the brisk market demand.
Earlier, in July 2008, Toppan signed a technology transfer and license agreement for a polyvinyl fluoride coating
technology with E.I. du Pont de Nemours and Company(DuPont) of the United States. Tedlar® Film, a material forsolar cell back sheets developed by DuPont more than
25 years ago, has been rated highly for its outstanding
weather resistance. The Fukaya Plant will mainly produce
next-generation back sheets for solar cells based on thefurther amalgamation of the material technology of Tedlar®
Film and the processing technology of Toppan. Using
materials supplied by DuPont for Tedlar® Films, an integrated mass production line for finished back sheet products will be constructed.
Toppan aims to expand its share of the global market
by supplying a broad range of back sheets tailored todiverse specifications required for applications such as
solar cells for large-scale photovoltaic power plants andsolar panels for ordinary houses.

External view of the Fukaya Plant, a future manufacturing site for solar
cell back sheets*The Pollution Release and Transfer Register (PRTR) system
requires the confirmation, summary, and disclosure of data on therelease and transfer of diverse chemical substances deemed to bepotential environmental pollutants. The data required include information on the amounts of chemicals released, the sources fromwhich chemicals are released, and the amounts of chemicals transferred outside business premises as waste.

TOPPAN CSR REPORT 200913

Topic 05
Leaking Solvent at the Itabashi Plant of Toppan Printing Co., Ltd.
Toppan Printing Co., Ltd. has promoted routine implementation of environmental measures to ensure thoroughsafety management at every operational site. Regretfully,
however, these precautions failed to prevent a toluene
leak from an underground tank of printing solvent at the
Itabashi Plant (Itabashi Ward, Tokyo) on June 12, 2009.
Toppan sincerely apologizes for the anxiety caused tosurrounding neighborhoods.
As an emergency measure, this underground tank has
already been emptied and decommissioned. The following columns report the actual incident and details, including the results of a subsequent investigation.
From now on, Toppan will take vigorous steps in goodfaith to protect the safety of local residents and conserve
the environment surrounding the plant by strictly preventing the diffusion and recurrent leakage of solvent.
■Details and Causes of the Leakage
Approximately 4,500 liters of toluene, a solvent for printing, leaked from an underground tank at the Itabashi Plant
on June 12, 2009. The source of the leak was a steelplate tank with a capacity of 13,500 liters, buried aboutfour meters below the surface of the ground.
The Company will identify the causes of the leakthrough a detailed investigation in the near future.
Preliminary inspections suggest that cracks may haveformed at the bottom of the tank during a regular maintenance operation.
■Detection and Countermeasures
The liquid level of an underground tank rapidly fell duringa regular maintenance operation on June 12, 2009. The
tank concerned was decommissioned and a different tankwas used to supply solvent for manufacturing. The following measures have been taken so far.
•Both the interior and exterior of the underground tankwere inspected to estimate leakage conditions, andthe leakage of solvent from the underground tank was
confirmed.
•The leakage was reported to Shimura Fire Station of
the Tokyo Fire Department, which conducted an onsite
investigation and instructed the plant on specific countermeasures in the coming days.
•A boring investigation around the underground tankhas been commenced to examine the impact on thesoil, etc. surrounding the tank.
•The leakage was also reported to Shimura Police
Station, Itabashi City Office, and Tokyo Metropolitan
Government to receive guidance on future measures.

14

TOPPAN CSR REPORT 2009

■ Future Measures
Toppan will take the following measures in good faith
based on consultation with local authorities to protect thesafety and environment of the plant and local communities.
•The diffusion and recurrent leakage of solvent will be
prevented to ensure the safety of local residents.
•The cause will be ascertained by an investigation to
be conducted in collaboration with independent organizations, and appropriate responses will be taken
according to the investigation results.
•Details will be reported to local residents whenevernecessary.
Toppan will carry out the following specific measures
without delay.
Specific measures:
1) Enclosure of the leakage area through the burial ofsteel sheet piles to prevent the solvent from diffusing
2) Suction of the solvent from the soil via newly installedpumping wells
3) Removal of the underground tank that contained thesolvent
4) Excavation and removal of the soil surrounding theunderground tank concerned, and backfill with goodsoil5) Inspection of the soil, water, and air in the area

CSR Management

Toppan’s Social Responsibility
Basic Approach to CSR

16

Review of CSR Activities and New Initiatives
Results for Fiscal 2008 and Future Measures

20

Stakeholder Dialogue

22

Corporate GovernanceCorporate Governance24Compliance
Compliance Promotion Activities

26

Information Risk Management
Information Risk Management

28

Conduct Guidelines andInformation Management Policy

30

CSR Management

Toppan’s Social Responsibility

Basic Approach to CSR
Toppan devotes itself to the fulfillment of its social responsibilities based on TOPPAN VISION 21,
the foundation of all Group business activities.

Towards Sustainable
Development
When Toppan was founded in 1900,
Japan was rapidly building up its modern industries in the aftermath of the
Meiji Restoration.
The printing industry was contributing
to society in three important areas:
1) the printing of banknotes, bonds, andsecurities, crucial instruments for theestablishment of modern capitalism;2) the publication of newspapers, amedium for public discussion to stimulate the progress of civilization; and3) the publication of translations, novels, and magazines to enlighten the public and encourage the establishment ofa modern state.
Toppan began in the last century as
a provider of printing services to support the establishment of modern Japan.
Today it has grown into a multifaceted

enterprise with myriad businesses centered around core printing technologies,
such as IT and electronics. Toppan supports the development of information
culture and the creation of fulfilling
lifestyles in many ways.
Toppan has grown steadily amid thedrastic changes that have taken placeworldwide in the more than 100 years
since its founding. These changes continue to pose threats to the earth andhumankind in the 21st century. The
world must contend with poverty,
abuses of human rights, environmental
destruction, and health problems. In
Japan, meanwhile, birthrates are declining and the population is ageing.
Toppan believes it has a responsibility
to help solve these problems in cooperation with all of its stakeholders throughbusiness operations conducted under
its founding Corporate Philosophy ofcontributing “to a fulfilling lifestyle as amainstay of information and culture.”
The Company contributes as an essential corporate citizen with an active
commitment to realizing sustainable
development for itself and society.

Corporate Philosophy

Each of us shall

Subject

Under the recognition that every employee upholds thisphilosophy, all members of the Toppan Group shallreciprocate our customers’ continued trust,

Corporate
attitude

give top priority to valuing and facilitating a relationship of trustwith customers,

create dedicated products by

Code ofconduct

work with passion, responsibility, and foresight to create
excellent-quality products and services dedicated tocustomers, andharnessing our vibrant knowledge and technology,

Businessfoundations

enhance strengths in knowledge (marketing and planning capabilities) and technology (technical capabilities) to draw out the
reproducibility and vibrancy (detailed and creative expression)of printing as the Group’s business foundation, in order toand contribute to a fulfilling lifestyle as

Corporate
goal

help create fulfilling lifestyles by realizing individual andcorporate aspirations to communicate with others, and by

a mainstay of information and culture.

Corporate role

recognizing the universal role of printing as a mainstay of
information and culture with pride and responsibility.

Established in June 2000

16

TOPPAN CSR REPORT 2009

Basic Approach to CSR

Toppan’s Social
Responsibility: Realizing an
Ideal “Corporate Structure”

Corporate Philosophy
The Corporate Philosophy is the toplevel concept that underpins Toppan’s
corporate activities and defines its mostimportant values and thoughts.

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

Toppan’s Social Responsibility

Corporate Creed and Conduct
Guidelines
The Corporate Creed expresses thestandards that the Toppan Groupapplies to its corporate activities.
Built on the Corporate Philosophy andCorporate Creed, the Conduct Guidelines express the behavioral norms basedon every employee’s compliance withlaws, regulations, and corporate ethics.
Under no circumstances will any mem-ber of the Toppan Group engage in abusiness operation that infringes therules of society or poses any risk of environmental or social harm. The Groupalso understands that any failure to
maintain its high standards for business
operations may make it difficult to guarantee reasonable returns and benefits
for society.
The Conduct Guidelines specify items
that every employee in the Toppan
Group should closely observe.
The Group reviews its Conduct Guidelines every year in the conviction thatthe guidelines must evolve over time torationally adapt to the various changes
underway in corporate and social environments.

CSR Management

TOPPAN VISION 21 expresses the basic
concept and directionality of the activities undertaken by Toppan to grow inharmony with society and the global
environment.
TOPPAN VISION 21 consists of the“Corporate Structure” and “Business
Fields.” The Corporate Structure, meanwhile, is made up of three elements:
Toppan’s Corporate Philosophy, theCorporate Creed, and the Conduct
Guidelines. These elements specify acomplete set of values, standards, andguidelines for the business operationsof the Toppan Group. The Group will fulfill its social responsibilities by realizing
this Corporate Structure.
The Toppan Group regularly enlightens its employees on the basic tenetsof TOPPAN VISION 21 and the Corporate Structure through communication in workplaces, training sessions,and various tools.

Conduct Guidelines
Chapter 1: Basic Principles
1. Respecting basic human rights
2. Maintaining public order and standards of decency

To strive for total innovation from a global
perspective by conducting marketing andtechnological development rich in originality.

3. Complying with laws and ethics

To conduct fair and open business operations
while acknowledging our social responsibilities
and aspiring for harmony with
our global environment.

6. Appropriate management and disclosure of
information

To create a positive working environment by
maximizing our individual talents andstrengths as a team.

Chapter 2: Specific Conduct Guidelines

4. Conducting fair business operations
5. Striving to improve quality

7. Environmental and safety considerations

Section 1: Building customer trust
Section 2: Reforming operations

To enhance our corporate standing andpromote the continual development of
the Toppan Group throughthe exploration of new possibilities.
Established in June 2000

Section 3: Fulfilling corporate responsibilities
Section 4: Creating a positive work environment
Section 5: Developing the Toppan Group
Established in June 2000; revised in April 2006
For more detailed information on the Conduct Guidelines, please see P. 30.

TOPPAN CSR REPORT 200917

CSR Management

Toppan’s Social Responsibility

Toppan’s Relationships with
Stakeholders

Communication with Stakeholders
Stakeholder dialogues are a very effective way to regularly grasp social needs.
Toppan promotes and upgrades its CSR
activities by incorporating stakeholder
dialogues into the PDCA cycle.
Toppan held special dialogue sessions with key stakeholder representatives in fiscal 2004 and 2006, in addition
to the regular dialogues it carried out inthe course of business. From 2005 to
2007, the Company invited an external
expert into annual in-house meetings of
CSR promotion members to review its
annual CSR activities.
The CSR Promotion Study Group, abody established in fiscal 2007, seeks
to improve the PDCA cycle of Toppan’s
CSR activities using the knowledge
gained through stakeholder dialogues
outside the Company. In principle, theFor Toppan to operate businesses andstay viable as a corporation, it must build
strong ties with various stakeholders.
The Company has defined five categories of stakeholders vital for its business activities: customers, business
partners, communities, employees, andshareholders/investors. Toppan strives
to build closer relationships of trust with
its stakeholders in these categories bythoroughly disclosing information andengaging stakeholders in dialogue.
In addition to the companies withwhich Toppan does business, end users
and other members of society are Toppan
customers. The Company understands
its responsibilities to society at large andis determined to promote initiatives forthe fulfillment of these responsibilities.

study group meets at the end of eachfiscal year to unify the channels of dialogue with external stakeholders. The
second meeting was held in fiscal 2008(➞P. 22).

Toppan’s Relationships with Stakeholders and Communication Tools
IFor All Stakeholders(: Tools for communication)

IFor Customers
Toppan’s customers are not just thecompanies with which Toppan does business.
Just about every person in society is a Toppan
customer, in some way or another. The
Company strives to always merit the trust ofcustomers with sincerity, enthusiasm, andcreativity by satisfying customer requirements
through Total Quality Assurance throughout
the entire product life cycle, from planning andmanufacturing to use and disposal.
Various reports on business operations
Various reports on products and services
Various newsletters, etc.

Corporate Guide
CSR Report
Various guides for individual divisions
Financial statements
Quarterly business reports
Website, etc.
IFor Shareholders and Investors
Toppan strives to improve its corporate
value through sustainable businessdevelopment on the basis of stabledividends. The Company makes itself fully
accountable by promptly and appropriately
disclosing corporate information to ensurethat shareholders and investors completely
and accurately understand the Company’sbusiness activities.
Shareholder newsletter Toppan Story
Business reports
Annual Report
Corporate governance reports, etc.
IFor Employees (including part-timeworkers and temporary staff)
Toppan strives to provide comfortableworkplaces where diverse employees canwork to their full potential—a working
environment where the dignity and livesof all employees are respected. The
Company offers satisfying jobs to fulfill
employees and tangibly contribute to thegoals of the corporation.
In-house newsletter CONVEX andWeb CONVEX
Overseas in-house newsletter Interlink
Various pamphlets on welfare benefits,
etc.

18

TOPPAN CSR REPORT 2009

Customers

Shareholders
andInvestors

Employees

Business
Partners

Environmental
conservation
Communities

IFor Business Partners
Another crucial element in strong customer
trust is steady relationships of trust andcooperation with business partners. Toppan
does business on an equal footing with its
partner companies in a fair and open manneras a matter of course. The Company strives tomeet the expectations of customers andsociety with regard to its social responsibilities
by promoting CSR procurement in cooperation with business partners.
CSR Procurement Guidelines on
the Toppan website, etc.

IFor Communities
Toppan relates with communities and society
through its business operations. The
Company strives to win the trust ofcommunities by contributing to society as amainstay of information and culture.
Plant guides
Site Eco Report
Annual report Printing Museum, etc.

Basic Approach to CSR

Specific Concept of CSR
Activities

Toppan’s Social Responsibility

CSR Material Topics
Toppan sets action points and goals foreach material topic to be addressed
through CSR activities and reviews the
topics yearly by assessing the levels ofachievement. The Company establishedeight topics in fiscal 2008 and has
advanced its CSR initiatives ever since.

ration with the relevant management
divisions of the head office and the CSR
Promotion Department of the Legal
Affairs Division, the department undertaking administrative operation. These
parties regularly convene a CSR promotion department meeting to assess the
progress of each action point and discuss ways to resolve related challenges.

CSR Management

The purpose of Toppan’s CSR activities
is to realize the sustainable developmentof society and the Company. To achievethis, Toppan must be a trustworthy,
respected corporation for stakeholdersof every kind. A company without thispolicy cannot expect to succeed inaddressing social issues and needs
through the creation of added-value
businesses over the years.
Toppan has therefore set out material
topics for its activities by combining its
policy towards the balanced development of society, the economy, and theenvironment with a conviction that therealization of an optimally organizedCorporate Structure will help theCompany fulfill its social responsibilities.
Toppan announced its support for theUnited Nations Global Compact as anactive participant in 2006. By disseminating the principles of the Global
Compact across the Company, Toppan
promotes CSR activities in consideration of the roles it is to play as a member of international society.

CSR Promotion Structure
The President & CEO and the Director
in charge of CSR are leading a move todevelop CSR activities through collabo-

CSR Material Topics Based on the Corporate Structure and Stakeholders

Toppan’s CSR Promotion Structure
President & CEO

Director in charge of CSR
Complying withlaws, regulations,and corporate
ethicsConserving
the global
environment

Reinforcing
information risk
management

TOPPANVISION 21
Corporate Philosophy

Assuring
product safety
and quality/
Providing products
and services tohelp solve
social issues

CSR promotion department meeting
Administration
Legal Affairs Division
Secretary Department
Public Relations DivisionCorporate Creed
Respecting andleveraging
human assets

Conduct
Guidelines

Disclosing
information ina fair and open
manner andimprovingtransparency

Establishinga trusted
supply chain

Contributing
to society,community,and culture

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

The United Nations Global Compact sets forth 10 principles in the fourareas of human rights, labour standards, environment, and anti-corruption. Toppan supports and implements the 10 principles as a socially
responsible corporation.

TOPPAN CSR REPORT 200919

Review of CSR Activities and New Initiatives

CSR Management

Results for Fiscal 2008 and Future Measures
Toppan carries out various CSR activities based on the action points established for each of
the eight material topics and reviews them annually. The next two pages summarize Toppan’s
activities and achievements in fiscal 2008 and its main measures planned out for fiscal 2009.

Stakeholders

TopicsAction Points

Complying with laws, regulations,and corporate ethics

Heightening awareness of laws, regulations,and the Conduct Guidelines throughcompliance promotion activities—

Reinforcing information risk
management

Establishing an information security
management structure towards the complete
elimination of information-related accidents—

Conserving the global environment(See PP. 54–56 for the results of the environment
activities and future measures to promote them)—

Ensuring product safety

Preventing accidents relevant to the Product Liability (PL) Law and therevised Consumer Product Safety Law of Japan

Quality assurance and enhancement

Enhancing customer satisfaction (analyzing the degree of customer
satisfaction and applying the results to business operations under the
ISO 9001 QMS) and preventing serious quality-related accidents
concerning the performance and functions of products

All stakeholders

Customers

Assuring product safety andquality/Providing products andservices to help solve social issues

Targets

Launching energy-related businesses for the future
Expanding businesses in the life sciences
Providing products and services to help solve
social issues

Adapting to the aging society

Passing down cultural assets via virtual reality (VR) reproductions

Business partners

Establishing a trusted supply chain

Performing business deals strictly compliant
with the CSR Procurement Standards

Disseminating the CSR Procurement Standards to all of Toppan’sbusiness partners in Japan and encouraging these business partners
to implement the standards
Establishing a management and assurance system for chemical
substances
Mutually enhancing corporate values through strengthened partnerships

Communities

Shareholders and investors

Social contributions

Enriching programs to address social issues

Community contributions

Expanding opportunities to communicate with local communities andmaking contributions suitable for local needs

Cultural contributions

Contributing to society through the provision of high-quality
information, endeavoring to elevate the roles of printing and relatedindustries, striving to establish the study of printing culture,contributing to the communities surrounding the operational sites,and supporting educational institutions

Enhancing IR activities

Improving accessibility to Company information disclosed in a timely
manner

Merit-based personnel policies

Operating personnel treatment systems appropriately

Contributing to society,community, and culture

Disclosing information in a fair andopen manner and improving
transparency

Respecting basic human rights
Ensuring occupational safety and healthReinforcing countermeasures against fires and disasters
Promoting healthcare and health enhancement
Realizing a safe and secure working
environment

Employees

Supporting work-life balance by 1) shortening total working hours

Supporting work-life balance by 2) creating workplaces where employees
can strike a balance between working and raising children

Respecting and leveraging humanassetsCreating a better working environment through partnerships between
labor and management
Providing an open environment for recruitment
Supporting individual career development
Promoting positive action
Leveraging diverse human assets
Supporting second careers for retired employees
Promoting employment of persons with disabilities
Securing the propriety of contract- and temporary-worker-related operations
Developing and fostering human assets

20

TOPPAN CSR REPORT 2009

Fostering highly motivated employees based on “conduct of high value”

Results for Fiscal 2008 and Future Measures

Main Activities and Achievements in Fiscal 2008
•Established Conduct Guidelines Promotion Leader systems at all Group
companies in Japan•Introduced Conduct Guidelines for subsidiaries in Thailand and Indonesia•Checked compliance and organized employee education on the Subcontract
Law of Japan (30 times; 2,369 participants)•Carried out head office audits primarily to check the control status of humanerror in the handling of important information•Acquired ISO/IEC 27001 certification in three operations and expanded thecertification boundaries of two operations•Conducted questionnaire surveys to assess secular changes in the levels of
information security management—•Continued extensive community contributions through environmental
beautification activities, plant tours, hands-on training sessions, etc.
<Printing Museum, Tokyo>•Held 1950s Japan: The Blossoming of the Graphic Designer, a temporary
exhibition that attracted a higher-than-average number of visitors for school andcompany training•Held summer vacation workshops, attracting more than 1,000 participants
through intensive announcements<Toppan Hall>•Sponsored 35 concerts, organized special performances to discover and foster
talented young musicians from around the world, and rented the hall out to local
music colleges and elementary schools•Added new content to the IR website and redesigned the English version of the site
•Posted timely topic content for the Annual Report and Toppan Story, anewsletter for shareholders•Activated organizations and individuals through appropriate operation of
personnel treatment systems based on the competence and achievements ofindividual employees•Enlightened employees on basic human rights through rank-based training andfollow-up training for younger employees•Compiled a database of information on occupational accidents and accelerated
the process for grasping the details on how the accidents occurred•Formulated a complete set of countermeasures against large-scale disasters,
including the reservation of stockpiles•Arranged medical checkups and healthcare guidance and education incooperation with clinics•Took steps to manage overtime work throughout the Company; substantiallydecreased the number of employees working overtime for long hours and theaverage hours of overtime worked in the second-half of fiscal 2008 (comparedwith the same period a year earlier)•Convened labor-management committees five times to help create a working
environment amenable to enhanced job satisfaction•Started to operate the staggered work-hour system for childrearing•Resolved to introduce a staggered work-hour system for expectant mothers•Held various labor-management meetings on diverse themes such as jobsatisfaction enhancement and mental healthcare, in addition to the routine
business councils•Ran online training courses and other types of internship programs to provide
students with expanded opportunities to experience actual work
•Appointed 17 non-regular employees to regular positions•Developed the learning management system (LMS) to support individual careerdevelopment•Attained a 3.31% ratio of female managerial and supervisory staff (as of April 1,
2009)•Reemployed 83 retired employees under the Senior Reemployment System(equivalent to 60% of the employees who retired this fiscal year)•Attained a 1.93% ratio of employees with disabilities in the total workforce (as ofthe end of March 2009)•Held briefings to respond to laws and regulations related to non-regular employees,
including the legislation responsible for Japan’s “problem 2009” (the three-yearlimitation for temporary workers dispatched to companies in manufacturing industries)•Rotated employees into different regions, job categories, and product specialties(including 411 managerial staff rotations)

For Details

A•Fostering Conduct Guidelines Promotion Leaders who can design andimplement dissemination activities by themselves•Introducing Conduct Guidelines for subsidiaries in the U.S.A.

PP. 26–27

A•Revising the Information Security Management Guidebook and issuing andusing the Close Calls on the Job booklets•Promoting the acquisition of ISO/IEC 27001 certification for areas undertight security•Reinforcing the management of confidential operations and the handling ofprinted securities materials

PP. 28–29——

PP. 52–76

C•Checking actual conditions in the establishment and operation of the systemthrough audits

B

B
A
B

A

•Continuing to organize product quality education using standardized inhouse textbooks for the sales departments•Assembling a database of quality-related information for the prevention ofquality-related accidents•Selecting operational sites to be audited intensively based on productquality conditions and improving the effectiveness of the QMSs at the sites•Promoting permissions that entitle clients to use patents held by theCompany; respecting the intellectual properties held by other companies•Developing a new material and low-cost, high-efficiency manufacturing
technologies for fuel cells•Providing SNP chips and genotype analysis systems to support studies on
HIV treatment•Researching and developing intuitive designs and incorporating the designs
into new products•Exhibiting existing VR productions on tours and producing and exhibiting
five new works•Continuing to promote the use of VR productions as a business

B•Continuing to disseminate the Company’s CSR procurement initiatives to
new and existing business partners•Continuing to interview business partners•Collecting certification for the non-usage of chemical substances prohibitedby the Company, and auditing to confirm the non-usage

B•Installing and smoothly operating the Supplier Hotline

A

PP. 32–33

PP. 34–35
PP. 8–9
P. 35

P. 12

PP. 36–37•Planning and organizing a new type of employee-participatory socialcontribution program to support solutions for the social issues declared in
the Millennium Development Goals•Continuing to organize various community contributions in tune with local
needs at operational sites across Japan

PP. 40–41

A<Printing Museum, Tokyo>•Holding an exhibition entitled Textbooks That Supported Modern Educationin Japan—Textbooks from the Tosho Bunko and Printing Museum Collections•Enriching community contributions in collaboration with the Bunkyo
Academy Foundation and cultural facilities in Bunkyo Ward, Tokyo<Toppan Hall>•Continuing to sponsor concerts, organize special performances for the
discovery and fosterage of talented young musicians, and rent out the hall

PP. 38–39

A•Participating in conferences for foreign institutional investors•Intensifying individual consultations with and visits to institutional investors

B
A

A
A
A
A
A
A

A

A

•Continuing to operate the existing personnel treatment systems andexamining actual operational conditions to find and consider necessary
revisions for the systems•Continuing to enlighten employees on basic human rights through rankbased training sessions•Undertaking TPM activities led by the Safety and Health Committee toeliminate occupational accidents; using the database on occupational
accidents to prevent recurrence•Implementing countermeasures against large-scale disasters throughout theCompany•Offering healthcare guidance for employees in need of lifestyle improvements(calorie-control diet plans, actions to preempt lifestyle-related health problem)•Eradicating extended overtime through a review of the ways individuals
work, strengthened management of overtime working hours by managerial
staff, and the continuation of the various types of working systems already inplace; encouraging employees to take various forms of leave•Reviewing labor contracts and employment regulations based on the trends
in relevant laws and regulations•Creating a working environment where male employees can take childcare
leave more easily•Continuing to convene labor-management committees in order to help
create a working environment amenable to enhanced job satisfaction•Holding labor-management meetings to review schemes for regular salaryrevisions, discuss the Company’s responses to the revised the Labor Standards
Act of Japan (to be enforced from April 2010), and deliberate various other themesA•Expanding communication activities for recruitment and public relations forhiring in Japanese cities other than Tokyo

B•Launching the learning management system (LMS) and using it effectively

A
A
A•Promoting the appointment of female employees to managerial andsupervisory positions through positive action•Passing on the experiences and specialized knowledge of veteranemployees to younger employees via the Senior Reemployment System•Maintaining the 1.8% ratio of employees with disabilities in the total
workforce, as designated by the relevant law in JapanA•Holding training sessions and conducting internal audits in the general affairs
departments to cope with Japan’s “problem 2009”A•Shifting from personnel rotation among different job categories to personnel
rotation centering on age and rank

Review of CSR Activities and New Initiatives•Collaborated in the Campaign to Deliver Picture Books and donated about 200
picture books to children in three Southeast Asian countries and refugee camps

Main Measures in Fiscal 2009

CSR Management•Established a system based on the Product Safety Management Guidelines
under the ISO 9001-series QMS, but failed to check compliance with theguidelines through audits•Continued product quality education using standardized in-house textbooks forthe sales departments and spread the effort across Group companies inJapan•Carried out internal audits on the operation status of the ISO 9001-series QMS
for almost all domestic sites•Promoted the granting of permissions to entitle clients to use Company patents;organized training sessions to educate the planning departments on theprevention of patent infringements•Upgraded the performance of a non-platinum catalyst used in the inking process
for the prototype development of fuel cell components•Evaluated the performance of a genotype analysis system with SNP chips atcooperative medical institutions•Researched a method for the development of products to accommodate
persons with weak or age-impaired vision•Produced and exhibited four new virtual reality (VR) reproductions of cultural
assets, including the sculpture of Ashura (screened at an exhibition held inTokyo, “National Treasure ASHURA and Masterpieces from Kohfukuji”); a total of
21 VR productions have been created to date
•Promoted the rental and secondary use of VR productions as a business•Held briefings and conducted surveys to assess the current status of about 1,000
business partners working with the planning and sales promotion departments•Started interviews with some business partners•Established an internal system to enhance the effectiveness of the management ofchemical substances in products at business partners (based on Toppan’s QMS)
•Planned a series of case presentations, study meetings, etc. to be held incooperation with business partners (postponed due to current problems in thebusiness environment surrounding the Company)

Self Evaluation

P. 50

P. 42

PP. 43–45

PP. 46–47

PP. 48–49

Evaluation criteria: S, Results achieved far surpass targets; A, Targets achieved; B, Activities fully carried out, but targets unachieved;
C, Activities insufficient

TOPPAN CSR REPORT 200921

CSR Management

Review of CSR Activities and New Initiatives

Stakeholder Dialogue
Toppan seeks CSR initiatives satisfactory to all stakeholders through planning andassessment based on dialogues with society.

The CSR Promotion Study Group
Toppan values dialogues with society and draws great benefits
from views on ways to promote CSR activities. In fiscal 2008,
the Company convened the second CSR Promotion Study
Group, a meeting launched in fiscal 2007 to discuss how todevelop more compelling initiatives for both society and theCompany itself.

Outline of the Second CSR Promotion Study Group■ DateFrom 13:30 to 16:30 on February 23 (Mon), 2009
■ Participants
Stakeholders: Five experts (see below)
Facilitator: Mr. Fumitake Sakamoto from Witan Associates Limited.
Toppan: Mr. Shingo Kaneko, Senior Managing Director, head of the
Corporate Planning Division, and Director in charge of CSR; Mr. Tsuneaki
Hagiwara, Senior General Manager of the Legal Affairs Division, thedivision in charge of CSR promotion; and 15 more persons from thedivisions of the head office

Major Opinions from Stakeholders
1. Enhancing Corporate Competitiveness through CSR
Activities
In entering a recessional phase, companies should strive toimprove their profits while attempting to circumvent additional
crises. New businesses can evolve from services or activities
designed to solve problems facing society. And society itself
needs these businesses. Specifically, CSR procurement can
prevent risks from rising in the supply chain and improve thesustainability profile of material procurement. Supporting worklife balance and leveraging diverse human resources, meanwhile, can improve productivity.

Mr. Yukio Okubo

Mr. Toshihiko Goto

Ms. Mizue Tsukushi

General Manager, Works Institute, Recruit Co.,
Ltd.

Chair, Environmental Auditing Research Group

President & CEO, The Good Bankers Co., Ltd.

Plays an active part in overall CSR topics focusedon the environment as a member of the Boardof Japan, Global Compact Japan Network.

Takes charge of investment advisory, planningand development, and research services forfinancial products categorized as socially responsible investments (SRI).

Mr. Toshihiko Fujii

Ms. Mariko Mikami

Mr. Fumitake Sakamoto

Consulting Fellow, Research Institute of
Economy, Trade and Industry, Incorporated
Administrative Agency (IAA)

Journalist; Visiting Associate Professor, Instituteof Innovation Management, Graduate School of
Shinshu University

Facilitator
Senior Consultant, Witan Associates Limited.

Took charge of lobbying against EU and product-related environmental regulations as a member of the Ministry of Trade and Industry (thecurrent Ministry of Economy, Trade and Industry)of Japan. Specializes in European CSR.

Plays an active role in national newspapers, business journals, television, and other global media
as a scholar and reporter on themes such asorganization, accounting, finance, M&As, andindustry-creation.

Founded the Works Institute, installed as General
Manager there in 1999. Specializes in humanresource management, labor policies, and career
issues.

22

Themes of the Second CSR Promotion Study GroupTo seek out expert views on issues on which to focus in future
CSR promotion, and to explore action points that Toppan
expects to become more relevant for society and the Company(see the bottom-right chart), in consideration of recent economic conditions and subsequent changes in society.

TOPPAN CSR REPORT 2009

Consults on PR and CSR activities for corporations and provides management assistance for
NPOs.

Stakeholder Dialogue

3. Enhancing a Company’s Sensitivity to Society
As entities, companies should persistently carry out their businesses while helping resolve social problems. Amid the drasticchanges now surrounding companies, better foresight of thecoming social responsibilities to be fulfilled and more proactive
approaches to implementing initiatives to address them will
reliably strengthen competitiveness and garner support fromthe public. Thus, companies should work steadily to enhancetheir sensitivities to social trends and public opinion.

Responding to the Opinions Obtained
To prepare for the study group meeting, Toppan chose a new
set of action points that it expects to become more relevant
for society and the Company. From fiscal 2009, Toppan willtake the opinions of the study group to heart and deepen its
focus on the action points that it expects to become more relevant.

Review of CSR Activities and New Initiatives

4. Bringing Innovative Changes into Reality
International society has agreed on the benefits to be gainedby halving CO2 emissions by 2050. The years in which toachieve this ambition are few. If we fail to act at once, we cannever hope to succeed.
Eco businesses have entered an era to be redefined. Global
warming, drought, and other ecological crises are predictedscientifically. Based on the ecological predictions, companies
should model new competitive businesses with prospects forstrong quantifiable benefits for society in concrete forms.

CSR Management

2. Improving Fairness in Personnel Policies
In Europe, the birthplace of corporate social responsibility(CSR), companies must provide in-house education to help
employees acquire the levels of competence necessary toqualify them for recruitment to new positions if they are maderedundant. If the regular employees in a company receive better in-house training than the non-regular employees, the company must level the inequity through CSR activities.
When a company drives globalization, it should treat its
employees fairly all over the world.

Action Points that Toppan Expects to Become More Relevant for Society and the Company

For Toppan

Expected to become more relevant◆Operating personnel treatment systems appropriately◆Supporting individual career development■ Enhancing environmental education and theenvironmental awareness of all employees■ Promoting environmental communication

Environment
Labor■Mitigating global warming through ◆Supporting work-life balance (improving
productivity and fostering the next generation)
the development of energy-saving◆Creating better working environments
measuresthrough partnerships between labor and■Promoting waste reduction andmanagement
recycling◆Promoting positive action◆Providing an open environment for
Global◆Establishing a trusted supply chain
recruitment◆Promoting employment of persons with
■Upgrading environmental mandisabilities◆Supporting second careers for retired
agement systems at overseas
employees
production sites
Capturing growing businesses■ Expanding environmental contribution via
the development and marketing of eco products◆Providing products and services to help solve social issues●Complying with laws, regulations, and corporate
ethics●Reinforcing information risk management
As relevant as before

Toppan has classified its CSR action points basedon the relevancy for society and the Company forthe future, extracting the action points it expects
to become more relevant.

◆Assuring product safety and quality◆Respecting basic human rights◆Ensuring occupational safety and health◆Reinforcing countermeasures against fires anddisasters◆Contributing to society, community, and culture◆Fostering highly motivated employees based on“conduct of high value”■ Avoiding environmental risk
■ Preventing atmospheric pollution via VOC emission
restraints■ Controlling risks from chemicals
As relevant as before

Segments●CSR management field◆Social field■Environmental field

Expected to become more relevant
For Society

TOPPAN CSR REPORT 200923

Corporate Governance

CSR Management

Corporate GovernanceToppan is reinforcing corporate governance by strengthening its auditing andsupervisory functions and improving the transparency of its corporate management.

Corporate GovernanceToppan is equipped with a Board of
Corporate Auditors under the Company
Law of Japan and has strengthened its
governance system by establishing aManagement Audit Office, ComplianceDepartment, and Ecology Center.
The Company advances its corporate
management under the Related Company Administration Regulations prescribed to ensure the propriety ofoperations within the Toppan Group.

Especially important management
themes are deliberated beforehand in
the Management Committee made up
of directors selected by the President &CEO. The goal is to lay weight on managerial efficiency in business judgment.
Directors from the head office and otherdirectors acting as division chiefs cometo these meetings to discuss and examine measures and policies directly
related to the Company’s businesses
from various perspectives.

The Directors, Board of Directors,
and Various Meetings
Toppan has 29 directors on its board(as of the end of March 2009). Board
meetings are held monthly and whenever a pressing matter requires action
or deliberation.

Corporate Auditors, Board of
Corporate Auditors, and Audit FirmThree of the five corporate auditors are
external (as of the end of March 2009).
The corporate auditors regularly holdboard meetings, attend meetings of theBoard of Directors and Management

Committee, and carry out audits for operational sites. They audit and advise theCompany from a preventive perspective
to ensure the legality and effectivenessof the operations of the directors anddepartments and smooth and appropriate corporate management in line withcompany policies and regulations.
Toppan strives to audit effectively
through the cooperative efforts of theBoard of Corporate Auditors, the audit
firm KPMG AZSA & Co., and internal
audit-related departments in the Company (notably, the Management Audit
Office). The Board of Corporate Auditorsof the Toppan Group also regularly
meets to improve the effectiveness of
the audits by the corporate auditors on
a Group-wide basis. Toppan has had
KPMG AZSA verify the propriety of the

Toppan’s Corporate Governance Structure
Meeting of Shareholders
Appointing or dismissing

Appointing or dismissing

Appointing or dismissing

Board of Directors
Auditing

Auditing
Supervising

Selecting or demitting

Crisis Management Committee

Special Committee (for defending
against takeover bids)

President & CEO

Responding to emergencies

Compliance Department

Promotes, verifies, and audits the strict
observance of laws and regulations andthe establishment of ethical businesspractices

Ecology Center

Coordination, supervision, and verificationof Toppan’s environmental activities

Observing andguiding

Relevant head office divisions(mainly those responsible formonitoring laws andregulations) check, evaluate,
and improve the legality andpropriety of operations indivisions.

Instructing

National Conduct Guidelines
Promotion Supervisors

Other organizations for control
Safety and Health Committee

Chief information security
managerNational Eco-protection Committee

TPM National Conference

Working together

24

TOPPAN CSR REPORT 2009

ReportingAssistingGuiding

Auditing(Board of) Corporate Auditors

Investigates and audits the legality andappropriateness of operational activities

Corporate Auditors Office

Audit firm

Management Audit OfficeGroup companies

Auditing

Management Committee
Considers issues prior to boardof directors’ meetings

Directors in charge
Business Divisions

Advising and counselingCorporate Governance

Company’s accounts through audits toenhance the reliability and transparencyof the Company’s financial information.

Strengthening Audit Functions
The Management Audit Office established independently from the operating
departments fairly and objectively audits
all of the corporate management systems and business operations from theviewpoints of legality and rationality.
The office provides feedback to the

Risk Management Structure
Toppan manages risk comprehensively
to avoid risk and minimize the losses
incurred when events at risk occur.
The Rules on Risk Management havebeen established to resolve mattersregarding risk avoidance and the minimization of loss when an event at risk
occurs. In accordance with these rules,
the Company has set up a risk management structure under which the
responsibilities for risk management areallotted to specific divisions in the head
office based on the types of risk
involved. Under this structure, the directors in charge of each relevant division
are responsible for taking measures toprevent, avoid, and correct each type ofrisk. Toppan reviews risks to be managed once a year and examines countermeasures to be taken in line with therules. The Company also holds a regular Risk Management Liaison Meetingfor the persons in charge of risk management in the head office divisions toshare information on a continuous basis
and respond to risk practically.

Corporate Governance*Including the remuneration paid to three directors who worked at the Company on April 1,2008 and retired after the completion of theordinary general meeting of shareholders in June2008.

monitoring the progress of improvements (➞P. 52).

CSR Management

Remuneration to Directors andCorporate Auditors
Remuneration to directors is determinedat the Board of Directors by the endorsement of the Meeting of Shareholders.
The amounts remunerated are set basedon considerations of the performance,
responsible roles, and fulfillment of theoperational targets of each director. In
fiscal 2008, the total annual remuneration to directors was 1,207 million yen*and the total annual remuneration tocorporate auditors was 108 million yen.

relevant departments on the problems
pointed out by the audits, proposesmeasures for improvement when necessary, and reports the audit results to
the President & CEO, directors in chargeof relevant departments, and the corporate auditors whenever necessary.
In fiscal 2008, the office conducted
operational evaluations of internal control for all of Company divisions and subsidiaries around the world. It also carriedout regular management audits andoperation audits for nine departments.
The Compliance Department in the
Legal Affairs Division spearheads theCompany’s initiatives to ensure the strict
observance of laws and regulations andto firmly establish ethical business practices. The department facilitates thecomplete awareness of the Conduct
Guidelines and organizes employee education on compliance with existing laws
and regulations. It also implementsinternal audits on information security(➞PP. 26–29).
The Ecology Center in the Corporate
Manufacturing, Technology & Research
Division supervises the Company’s environmental activities by conducting internal audits at each operational site andRisk to Be Managed and the Relevant Head Office Divisions in Charge
Risk to Be Managed
Accidents involving
Accidents or complaints related to products
products or product liability
Accidents related to main systems
Occupational accidents, traffic accidents, and other accidents involving employees
Incidents related to notes or accounts receivable
Accidents or disasters
Legal problems with orders received
related to company
Leakage of personal information or internal confidential information
operations
Accidents or disasters related to fires or explosions

Division in Charge
Corporate Manufacturing,Technology & ResearchBusiness System
Personnel & Labor Relations
Finance & Accounting
Legal Affairs
Legal Affairs
Corporate Manufacturing,Technology & Research
Illegal activity related to the storage of solvents, management of dangerous chemicals, etc.
Corporate Manufacturing,Technology & Research
Damage to the company’s internal computer system due to cyber terrorism, illegal access or use Business System
Defamation, slander, and of company information, and leakage of personal information or internal information
other criminal damages
Crimes against the company (threats, kidnapping, robbery)
Personnel & Labor Relations
Relationship with
Unreasonable demands from antisocial organizations, transactions conducted between business Legal Affairs
antisocial organizations
partners and antisocial organizations
Personnel & Labor Relations
Natural disasters
Material losses or personal accidents suffered by customers or the company due toearthquakes, wind or water damage, lightning, etc.
Risk in business management Shareholder derivative lawsuits, hostile takeovers
Legal Affairs
Unlawful activities related Violations of the Subcontract Law of Japan, illegal transactions with business partners
Corporate Manufacturing,
to external contracts
Technology & Research
Infringement of intellectual Infringements of patents, trademarks, copyrights
Legal Affairs
property
Violations of environmental laws or standards, illegal disposal of industrial waste
Corporate Manufacturing,
Environmental problems
Technology & Research
Risk in overseas business Product accidents, environmental problems, fires or natural disasters, damage to human or
Corporate Planning
activities
physical resources caused by international conflicts or terrorism, etc.

TOPPAN CSR REPORT 200925

Compliance

CSR Management

Compliance Promotion Activities
The Toppan Group thoroughly implements its Conduct Guidelines to ensure full compliance with laws,
regulations, and corporate ethics at all times.

Disseminating the Conduct
Guidelines
The Conduct Guidelines consist ofseven Basic Principles and 43 Specific
Conduct Guidelines (➞P. 30) to express
the behavioral norms by which every
employee at the Toppan Group complies with laws, regulations, and corporate ethics.
Conduct Guidelines Promotion Leaders
Toppan has introduced a Conduct
Guidelines Promotion Leader system todisseminate the Conduct Guidelines in
the workplace and ensure full compliance with the guidelines. Under this system, a team of Conduct Guidelines
Promotion Supervisors (the “Supervisors”) and Leaders (the “Leaders”) has
been deployed in all operational sites,
including the Group production companies. In total, 626 Leaders are now operating across Japan. A cumulative totalof 2,445 employees have worked as
Leaders since the commencement of thesystem in 2004. In keeping with the principle of one-year terms, Toppan reelected
Leaders in fiscal 2008 to ensure that
more employees would have the opportunity to serve as Leaders. Most of newly

elected Leaders were department supervisors. While the current ratio of female
Leaders is 4.3% (27 Leaders), the Company will maintain its assertive efforts toincrease this rate with the aim of fostering more female Leaders.
From fiscal 2008, the system has
been implemented throughout all Group
companies in Japan, with semiannual
specialist training sessions for Leadersheld jointly with the Group companies.
Dissemination Activities by Conduct
Guidelines Promotion Leaders
The Leaders have formulated an optimal
dissemination plan and devoted themselves to develop activities based on theplan. In setting the plan, they have tailored the details to business operations,staff compositions, and working environments at their relevant workplaces.
The National Meeting of Conduct
Guidelines Promotion Supervisors is heldeach October to share and discuss thevarious outstanding dissemination activities in the operational sites across Japan.
Using Tools to Promote the Conduct
Guidelines
Toppan gives every employee a Conduct

Guidelines Casebook, a Q&A style casebook describing actual situations that
can arise in daily work. The Leaders use
the casebook to disseminate information and the Company uses it to provide
rank-based education on compliance.
The Conduct Guideline Notifications
posted on the Company intranet
heighten employee awareness on thelatest important issues to do with conduct in the workplace. The notifications
issued in fiscal 2008 provided news andinformation on topics such as insider
trading, transactions under the Subcontract Law of Japan, information leakages, collusion and cartel, driving under
the influence of alcohol, and the use ofillegal drugs.
In fiscal 2008, Toppan also prepareda Conduct Guideline Handbook, a collection of actual cases to illustrate theseven Basic Principles of the Conduct
Guidelines in a brief, easy-to-understandstyle. From fiscal 2009, the Leaders at
the workplaces will begin to use thishandbook as a tool for directing pervasive measures for the stimulation of adeepened understanding of the guidelines among all Company employees.

Structure to Promote the Conduct Guidelines
President & CEO
Director in charge of Conduct Guidelines Promotion
Compliance Department

Divisions in the Company

Divisions of
the head office

Division heads
Conduct Guidelines Promotion Supervisors
The persons in charge of management: Business Strategy Department GM
The persons in charge of education: General Affairs Department GM

Conduct Guidelines
Promotion Supervisor
Senior General
Manager of Legal
Affairs Division

Conduct Guidelines
Promotion Leadersin sales andplanning departments

Conduct Guidelines
Promotion Leadersin manufacturing
departments

Conduct Guidelines
Promotion Leaders

Educational leaders

Managers or
supervisors of eachdepartment

Sales promotion
managers, etc.

Conduct Guidelines
Promotion Leadersin administrative
departments
Managers or
supervisors of eachdepartment
Employees

26

TOPPAN CSR REPORT 2009

Employees

Training for the Conduct Guidelines Promotion
Leaders

Conduct Guidelines Casebook (left) and Conduct
Guideline Handbook (both in Japanese)Compliance Promotion Activities

Operating the Toppan
Helpline

To promote compliance in overseas
Group companies, the Toppan Group
introduced Conduct Guidelines for subsidiaries in Beijing and Shanghai in fiscal 2006 and in Taiwan in fiscal 2007.
In fiscal 2008, the Group introduced
Conduct Guidelines for subsidiaries inThailand and Indonesia and launchedinitiatives to disseminate the guidelines.
The Eastern Asian subsidiaries organized specialist training for the Conduct
Guidelines Promotion Leaders to further
facilitate the guidelines.

Education on Compliance with
the Subcontract Law of JapanTo attain full compliance with the relevant laws and regulations in transactions
with subcontractors, Toppan held 30
educational and verification sessions oncompliance with the Subcontract Law
throughout Japan in fiscal 2008. The
sessions were conducted mainly for the
production management departments
and planning and sales promotion
departments. About 2,400 employees
took part.

Compliance

Compliance Education
Compliance Education
Toppan has held specialist training
series for Conduct Guidelines Promotion
Leaders for several years. Two of theseries were held in Japan in fiscal 2008.
In the first, 655 Leaders were trained in
31 sessions across the country, from
August to October 2008. In the second,
561 Leaders were trained in 27 sessions, from February to March 2009.

Toppan also implemented an ongoing series of compliance education in
rank-based training sessions for new
employees and newly appointed supervisors and managerial staff.

CSR Management

The Toppan Helpline, the Company’s
internal reporting system established in
2003, complies with the Whistleblower
Protection Act enforced in Japan from
April 2006. When a legal violation or injustice is discovered, it is to be reported
to superiors for deliberation. When an
employee’s superiors fail to settle a
problem, the employee is encouraged
to call the Helpline to report the matterwith his or her real name. In fiscal 2008,
the Helpline was renamed the Toppan
Group Helpline and expanded to cover
all Group companies. It is kept open foruse by all directors and employees of
the Group, including temporary staff andpart-time workers.
In fiscal 2008, the Helpline was usedin four cases involving power harassment, the improper use of company
expenses, and other inappropriate
actions. All four cases were strictly investigated and properly handled to prevent
recurrence.

Promoting Compliance inOverseas Group Companies

Briefing on Compliance
In fiscal 2008, Toppan was not involvedin any violations of laws or regulations
with major impacts on society. The Company received no criminal punishments,
administrative penalties, or administrative guidance.

Toppan Group Helpline
Communicator

When a problem
is not settled

All Group employees
Reporting andconsultation

Superior
Reporting on
progress andresults,
Follow-up
communication

Internal reporting(emails or sealed
documents sent with theemployees’ real names)

Training for the Conduct Guidelines Promotion
Leaders in China

ReceiverToppan Printing Co., Ltd.
President & CEO or
Senior Corporate Auditor
Instructions
Reporting

Investigation andcountermeasureorganizations

Tools for promoting the Conduct Guidelines usedin Thailand and Indonesia

TOPPAN CSR REPORT 200927

CSR Management

Information Risk Management

Information Risk Management
To secure customer trust and assurance:
The Company has striven to prevent any form of information leakage,from unauthorized data extraction to human error.

Preventing Unauthorized
Information Extraction and
Human Error
As a company operating in the information communication industry, Toppan
handles a great deal of personal information and other types of data entrusted
by customers. Ensuring information
security and preventing information leakage are vital to the advancement ofToppan’s businesses.
In May 2008, the Company rechecked
all the areas under tight security designated for the handling of personal information and reviewed the risk levels andmanagement measures in each area.
Toppan also reviews its in-house ruleson the handling of printed securities
materials and confidential operations tostandardize them whenever needed.
To minimize human errors and otheroperational mishaps at the workplace,
Toppan issued Close Calls on the Job,
Vol. 1 and Vol. 2, in-house booklets
describing problems that can potentiallyresult from operational mishaps. The
goal is to facilitate a thorough awareness of the rules to be observed by
employees in daily operations.

Reinforcing Management
under ISO/IEC 27001 andPromoting ISO/IEC 27001
Certification

Strengthening Information
Management Foundations
through Human Asset
Development

Following the full-scale revision of inhouse rules and bylaws in fiscal 2007
based on ISO/IEC 27001, the global
standard for information security management systems (ISMS), Toppan has
comprehensively promoted certificationacquisition for operations in sites in theElectronics field and in areas under tightsecurity designated for the handling of
personal information across the Company.
In fiscal 2008, three operations were
newly certified and the boundaries of
two operations were expanded.
Certified operational sites evaluate
possible risks after sorting out all information assets, including intermediate
products resulting from the informationhandling processes. These sites thenadopt countermeasures suitable foreach risk level from among the management measures specified in the
appendix of the ISO/IEC 27001 standard. The adopted measures arereviewed on a regular basis to support
necessary and sufficient reinforcement.

Toppan treats human asset development
as its most crucial initiative for tightening
information security management.
In fiscal 2008, the Company added ahost of illustrations to its Information
Security Management Guidebook to bolster information security management by
all employees, including temporary staff.
A total of 84 briefings on the revised
guidebook were held across Japan,
chiefly to inform employees of the familiar
rules on management for the handling ofmanuscripts and artworks, regular password changes, and other routines. Afterthe briefings, the employees were tested
to assess their understanding of the rules.
Toppan fosters in-house proponents
of information security by holding training
sessions for employees who seek qualification to serve as internal assistant auditors responsible for auditing the ISMS.
The sessions have been held three times
a year since fiscal 2007 (in September,
October, and December in fiscal 2008).
Internally qualified employees are encouraged to acquire higher qualification as
ISMS assistant auditors. There are now
91 ISMS-qualified staff working at Toppan,
including applicants who have passed thetraining session.

ISO/IEC 27001 Certification
IInformation and Communication Division•TOPICA (December 2001)•Asaka Securities Printing Plant, Toppan
Communication Products Co., Ltd.—Information and Communication Manufacturing
Subdivision (June 2006)•IT Development Department, Toppan Idea
Center; Contents Division, Toppan Graphic
Communications Co., Ltd. (July 2008)•Takino Securities Printing Plant, Toppan
Communication Products Co., Ltd.— Information and Communication Manufacturing
Subdivision (November 2008)
IElectronics Division
Photomask departments, Semiconductor
Related Subdivision (January 2008)
IToppan Multisoft Ltd.
Data Center (February 2008)
IMapion Co., Ltd. (August 2008)

Close Calls on the Job, Vol. 1 and Vol. 2(in Japanese)

28

TOPPAN CSR REPORT 2009

Information Security Management Guidebook(in Japanese)

Information Risk Management

relevant staff in divisions. The wholeprocess took one to two days per audit.

In fiscal 2008, Toppan reviewed theinternal audit mechanisms to maintainand improve its information management system on an ongoing basis.
Based on this review, the Company
established an internal audit systemcentering on the following four procedures.

Internal Audits in Divisions
Each division conducted an advisoryinternal audit according to a standard
checklist of 182 items for the 325
Company departments and the Group
production companies.

Directive Audits by the Head Office
The Information Security Management
Promotion Committee conducted exhaustive questionnaires and onsite interviews
with information security managers andAudits on the Processes for Handling
Personal Information
The Company audited all of the processes
for handling personal information. The
audits were conducted from a qualitycontrol perspective to impose theappropriate procedures for preventing
information-related accidents.

Reinforcing Quality Controlof Websites
Toppan installed a security-check tool
on a test basis for constructing andoperating risk-free websites. The tool
proved to be effective for correcting
glitches that went undetected by othermeans. In fiscal 2009, the Company will
deploy the tool in full-scale operation.

Security Level Checks for Web Applications

Scanning

Quasi-attackWebapplication
Web server

FirewallDiagnostic tool

Participating in the Rating
Business
I. S. Rating Co., Ltd., a rating company
specialized in information security inJapan, was founded in May 2008.
Toppan participated as a member of thestudy group assigned to prepare for thefoundation of this company from the very
beginning. Toppan also underwent a trial
review by the company in October 2008.
To honor the trust of customers,
Toppan will strive to establish a more
stringent, publicly laudable management
system for the prevention of informationrelated accidents.
Activities in Fiscal 2008

Scanning
Checking
via Internet

The Toppan Group holds a quarterly
Information Security Promotion Meetingfor Related Companies to reinforce theinformation management systems atdomestic Group companies by checking the progress of the various measuresin place. In fiscal 2008, Toppan held
three ISMS introductory training sessions with internal lecturers and several
sessions to individually respond to thedemands from Group companies.

Information Risk Management

Preliminary Survey of Actual
Conditions for All Employees
Prior to internal audits, the Company
surveyed the entire Toppan workforce(21,307 employees in total, including
temporary staff) on the actual status ofcompliance with 46 familiar rules (e.g.,
the restriction against removing PCs
from the workplace). The department
trends clarified through survey results
have been used as basic data for internal audits.

Reinforcing Cooperation
within the GroupCSR Management

Enhancing the Effectivenessof Internal Audits

DNS server
Scanning

Mail server

Databaseserver

IMeetings of Information Security Managers:
May 2008, February 2009
IRegular meetings of the Information Security
Management Promotion Committee: weekly
IInformation Security Promotion Meetings for
Related Companies: April, July, and October
2008, January 2009
IVarious surveys•Audit on the handling of personal information: from
April 2008 to February 2009
•Survey of actual conditions in Web-related
businesses: quarterly; May, August, and November
2008, February 2009
•Survey of actual conditions in all areas under tightsecurity: May 2008
•Report on the results of monitoring of all areas
under tight security: monthly
IEducation•Regular training for information security: from July to
October 2008
•Internal auditor training: from September to October
2008•Training for personnel handling Web-related
businesses: from September to October 2008
•Training for ISMS internal auditor qualification:
September, October, and December 2008
•Issuance of Close Calls on the Job booklets:
October 2008, April 2009
IOther•Undergoing a review via a trial version of theindication evaluation organized by a rating company
specialized in information security: October 2008

TOPPAN CSR REPORT 200929

CSR Management

Conduct Guidelines and Information Management Policy
Conduct Guidelines
Chapter 1: Basic Principles

Chapter 2: Specific 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 concept 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 handling of personal information
6. Protecting confidential corporate information

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 effects 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 overseas and domestic laws,
regulations, commercial practices, government notifications, andoperational and industrial standards applicable to our corporate
endeavors. Compliance with these laws and regulations forms theminimum standard of society’s rules and we will uphold them without
fail. In addition, we will act with a high sense of ethical and moral
awareness in carrying out our operations. Even in situations whenlegal issues do not arise, we still cannot allow humanitarian, moral, or
ethical problems 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. Striving to improve quality
With regards to the “dedicated products” that we provide tocustomers, we will strive to improve quality based on the concept of“Total Quality Assurance,” not just in the direct manufacturing andquality management sections but throughout the entire Company,
including sections related to sales, research, and administration.
6. Appropriate management and disclosure of information
Fully recognizing the importance of information, all employees will
undertake its appropriate management. Even if it affects us adversely,
we will not conceal information but actively undertake its appropriate
disclosure and increase the transparency of our operations.
7. 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 useof limited resources and facilitate recycling.
Furthermore, we will conduct safe production activities, ensure
product safety, and aim to facilitate a healthy and secure society tolive in.

Information Management Policy
1. Employees shall comply with all internal rules on information management and manage information appropriately in full observance ofthe law and social order.
2. Employees shall collect information for appropriate purposes using
appropriate methods.
3. Employees shall recognize the value of information as an asset anduse information safely and efficiently for the stated purpose of use.
4. Employees shall safely manage information handled on behalf of customers to secure customer trust.
5. To ensure the appropriate management of 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 on April 1, 2001

30

TOPPAN CSR REPORT 2009

Section 2: Reforming operations
1. Complying with international rules and respecting the culture andcommercial practices of overseas countries
2. Striving to improve knowledge, skills, and technology
3. Fulfillment of work responsibilities
4. Securing and utilizing intellectual property
5. Respecting the rights and interests of others
6. Striving to improve the current situation and targeting new
possibilities
Section 3: Fulfilling corporate responsibilities
1. Compliance with antitrust laws
2. Prohibition of unlawful practices in dealings with support
companies
3. Prohibition of unlawful acts against corporate competitors
4. Prohibition of receipt or provision for personal gain or rebate
5. Prohibition of bribery
6. Prohibition of inappropriate 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 import and export transactions
12. Prohibition of child labor and forced labor
13. Curtailment and reduction of environmental impact
14. Promotion of environmentally friendly activities
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 and power harassment
8. Prohibition of private activities
9. Appropriate use of the Internet
10. Appropriate management of information and records
11. Prevention of tacit approval, false reporting, and concealment ofillegal conduct
12. Prevention of retaliation against a person 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. Promoting communication with shareholders and investors
Established in June 2000

Revised in April 2006

Social Report

For Customers
Assuring Product Safety and Quality

32

Providing Products andServices to Help Solve Social Issues

34With Business Partners
Establishing a Trusted Supply Chain

36

With Communities
Cultural Contributions

38

Social Contributions/Community Contributions

40

With Employees
Merit-based Personnel Policies

42

Realizing a Safe and Secure Working
Environment

43

Leveraging Diverse Human Assets

46

Developing and Fostering Human Assets

48

With Shareholders and Investors
Increasing Transparency andDistributing Profits Appropriately

50

Social Report

For Customers

Assuring Product Safety and Quality
Toppan ensures the safety and quality of every product through a commitment toTotal Quality Assurance in every process.

Total Quality Assurance
Every customer who has a product manufactured at a Toppan plant prescribes
a precise specification, and every specification requires a separate approachto quality assurance.
To build a product of satisfactory quality
for a customer, Toppan must have morethan just an accurate grasp of its customer’s needs. The Company must know
the unspoken demands that even thecustomer cannot see. Once all of theneeds and demands are known, theCompany must incorporate them seamlessly into the design of the final product.
Quality assurance for products at
Toppan is a concern for every department, not only the departments directly
responsible for production. The departments involved in marketing, R&D, planning, design, sales, and delivery allcontribute to absolute quality. This is
why Toppan describes quality assurance
in production as a total activity (“Total
Quality Assurance”) with top priority forbusiness management.

Assuring Product Safety andQuality
The following departments take com-prehensive activities throughout theprocesses to deliver wholly safe productsthat meet the specified requirements.
Activities in the Sales and Planning
Departments
As active contributors to every process,from the submission of product plans to
final delivery, the sales and planningdepartments at Toppan keep the relevant departments informed of the exact
customer requirements in terms of quality, cost, and delivery (QCD). Their participation and guidance redoubles theassurance of high quality.
The 10 Toppan textbooks for sales
departments cover a wide range of topics necessary for the creation of safe
products in compliance with the Product
Liability (PL) Law of Japan. Every sales
department in every division uses the
textbooks for employee education andcase studies.
Activities in the R&D Departments
The Technical Research Institute has
established guidelines on research results
for the development of products in consideration of safety and the environment.
Based on these guidelines, the instituteTotal Quality Assurance in Toppan’s Business Activities
Planning

IDo we have a proper grasp of the customer’s demands?
IHave we uncovered needs the customer was unaware of?
IDo we have the technical development capabilities to create new
production methods?

Estimate
IHave we accurately calculated costs?

Receipt of Order

32

Production
Instructions

IHave we issued production instructions that are proper in light of quality,
cost, and delivery requirements?

Production

IHave we delivered the quality the customer demands?

Inspection

IHave we properly inspected the product?

Shipment

IHave we assembled an appropriate shipping system?
IHave we delivered the product on time?

TOPPAN CSR REPORT 2009

researches and develops safe products inaccordance with related laws and regulations, including the PL Law. The productsafety considerations cover all R&D
processes, from the first stages of research
up to the design reviews for the commercialization of the research results.
Activities in the Technology andProduction Departments
Toppan has established a unique quality
assurance system in the technology andproduction departments responsible for
manufacturing products that meet thequality requirements of customers. Oncethe technology departments define theideal production conditions, the production departments refine the conditions
towards the complete elimination of production defects through Total Productive
Maintenance (TPM) and other management techniques. Finally, the Company
standardizes the refined production conditions as rules to be maintained underthe ISO 9001 quality management system (QMS) and audits the departments
to confirm that the rules are enforced
throughout the Company.

Quality Assurance for Intellectual
Property
Quality assurance for intellectual property isa crucial matter for Toppan, an enterprisethat works with creativity and inventive ideas
in all business processes, from planning toshipment, in every department.
Toppan is eager to file patents to protect
its intellectual properties, especially the technologies and business models the Company
derives from its most ingenious, inventive
concepts. At the same time, the Company
takes careful steps to avoid any infringementof the copyrights, trademarks, and other intellectual property rights held by other companies. This is essential to protect customer
companies from the risk of trouble or inconvenience in the course of business.
As one measure to avoid unintended
infringements, the planning departments
instruct employees and business partners on
copyrights and explain actual cases.

Assuring Product Safety and Quality

Improving the Effectivenessof QMS through Audits andExpansions in the Boundaryof ISO 9001

Adopting a Certified Approval
System for Manufacturing inFood-related Businesses

Managing Chemical
Substances in Products

Quality Assurance Cycle in
Manufacturing Departments

Audits on Food Container andFilling/Packing Business

Complying with the Revised Consumer
Product Safety Law of Japan

Improvement by TPM Rootage by ISO
Thorough coverage through auditing

Required quality

TPM and ISO
Further
upgradesISO (auditing)
Dissemination to all
employees throughstandardization and education
Verification of thorough coverage

TPM
Assessment of ideal conditions
Improvement of the conditions prescribedfor eliminating defects in manufacturing

Passage of time
Integration of TPM and ISO
Improvement in product quality

Audit Points•Agreement with customers•Quality assurance system•Management of equipment and inspection devices•Management of safety and sanitation•Steps to prevent the admixture of different products•Steps to prevent the admixture of foreign
substances•Steps to prevent the outflow of defective
products•Steps to prevent contamination•Traceability•Security•Education and training•Maintenance of systems and frameworks

For Customers

Manufacturers all around the world arepressed to more strictly manage thechemical substances contained in theirproducts. In fiscal 2006, Toppan established a set of guidelines and began
reviewing in-house quality assurance
rules and systems for the managementof chemical substances in products. In
fiscal 2007, the Company conductedinternal audits on chemical substancemanagement mainly at plants in theElectronics and Living Environment
fields.
Since fiscal 2008, all of the plants at
Toppan have been incorporating chemical substance management systems
into their quality or environmental management systems. Every division forms
its own plan to integrate the systems
based on the specific requirements for
its products and customers. The
Company will advance the integration
process to enhance the effectiveness ofchemical substance management in fiscal 2009.

Social Report

One operational site acquired theISO 9001 certification in fiscal 2008,
bringing the total number of certified
sites at Toppan to 39. Once the operational sites are certified, external auditors
revisit the sites for routine surveillance
audits once a year and reassessments
for renewal once every three years. To
confirm whether ISO 9001 is appropriately and effectively put into practice,
the head office carried out 35 audits at
31 operational sites, in addition to theroutine internal audits carried out at all
Toppan sites, in fiscal 2008. In addition,
24 internal auditor training sessions were
held to improve the quality of the internal audits. These activities continue toimprove the effectiveness of Toppan’squality management system.
The latest information on ISO certification is available at http://www.toppan.
co.jp/english/csr/iso.html.

The head office audits primarily seek toverify whether the points improved
through TPM activities and defect prevention measures are properly standardized as rules, whether the standardized
rules are accurately observed, andwhether there are possibilities for further
improvement.
In food filling and packaging, a business that requires exacting quality assurance for safety and sanitation, the audits
cover not only in-house plants, but all
operational sites, including those of partner companies. Toppan has adopted acertified approval system to ensure that
operational sites can manufacture only
after receiving the required ratings basedon audit results.
In fiscal 2008, the Packaging Divisioncontinued to collaborate with the head
office in a series of audits to verify that
all operational sites had responsible
quality assurance practices in place.

Toppan established a basic stance andguidelines on product safety managementand disseminated them among employees
to prepare for the enforcement of the Product
Liability (PL) Law of Japan. To accommodate
the revisions of the Consumer Product Safety
Law in Japan in May 2007, the Company
reviewed its stance and guidelines for reinforced product safety management as a step
to complete its internal control.
In fiscal 2008, the head office informed
every division of the details of the revision,
provided instructions, and ensured that product safety management met the requirements of quality assurance in conformity with
ISO 9001.

Operational Sites Audited
Food containers•9 operational sites at divisions and production subsidiaries
Filling/packing business•5 operational sites at production subsidiaries•17 operational sites at production business partners

TOPPAN CSR REPORT 200933

For Customers

Social Report

Providing Products and Services to Help Solve Social Issues
Toppan uses the various technologies it has acquired in printing to develop products andservices responsive to social issues and needs.

Developing Technologies toHelp Solve Social Issues
The Technical Research Institute plays acentral role in exploring untapped areasof science by thinking freely and pushing forward with R&D projects on new
products designed to respond to theanticipated needs of the future market.
Product development efforts at Toppan
are guided by analysis to grasp the latest trends in the market and customers.
The Company has developed a goodnumber of high-performance, systemized products with enhanced environmental benefits and high added value.
In the field of production technology,
the Company seeks to improve quality,
shorten lead times, and reduce costs byautomating lines, saving labor andenergy, and modifying processes for
production.
Next-generation Products Developed
by Technologies Derived from Printing
Advances in technologies—surfacetreatment technology, microfabrication
technology based on prepress technology, and technologies acquired in printing—have led to the development of

next-generation products such as fullcolor organic Electro Luminescent (EL)displays, medical chips for analysis, andcomponents for fuel cells.
Industry-Government-Academia
Alliance
Toppan closely collaborates with various
external research institutes in technological development in Japan. In addition to engaging in national collaborative
projects (including contract researchsponsored by the New Energy andIndustrial Technology Development
Organization), Toppan researchers collaborate with many universities (including the University of Tokyo, the Tokyo
Institute of Technology, and Tohoku
University).
Toppan is also an active participant intechnical cooperation projects withcompanies around the world to develop
products, systems, and services that
address social needs and help solve
broader social issues in various fields.

Developing ProductComponents for Reduced
Carbon Dioxide Emissions
By combining technologies for largearea microfabrication and surface treatment, Toppan is making progress in thedevelopment of components for fuelcells and other products that contributeto the reduction of CO2 emissions.
Membrane Electrode Assembly(MEA) for the Fuel Cell
A fuel cell generates electricity througha reaction between hydrogen and oxygen. Two features of this generating system make the fuel cell an ideal sourceof next-generation energy with low environmental burden: the reaction generates power more efficiently than existing
generating systems, and it emits no CO2
whatsoever during power generation.
The only by-product discharged is water.
Toppan is developing a membraneelectrode assembly (MEA) and a separator, two core components of fuel cells.
The MEA consists of a catalyst layer andelectrolyte membrane for optimal powergeneration efficiency and durability. The
fuel cell system requires a smooth flow

Membrane Electrode Assembly (MEA) for the Fuel Cell

Hydrogen(H2)

Oxygen
(O2)

Water
(H2O)
Separator

Catalyst Electrolyte Catalyst
electrode membrane electrode
layer
layer

Separator

Membrane electrodeassembly (MEA)
Proton (H+)

H 2 2H ++ 2e–
2H+ + 1/2O 2 + 2e–

Electron (e–)

Total

34

TOPPAN CSR REPORT 2009

H 2 + 1/2O 2

H 2O

H 2O

Membrane electrode assembly (the sheet shownat the center of the photo)Providing Products and Services to Help Solve Social Issues

Challenges in Universal
DesignAs Toppan sees it, universal design (UD)is a corporate social responsibility forevery company in the information communication industry. Toppan strives tocreate fulfilling lifestyles by creating andbuilding products and services customized to users in the various theatersof communication between client companies and their own customers.
Deepening the Awareness of UD in
Society
The Comfortable Design Exhibit andUniversal Design in Printing Exhibit were
held at the Toppan Koishikawa Buildingin Tokyo to encourage shared thinking
and deeper awareness about UD for
Toppan and its customers. The exhibits
introduced strategic UD concepts and awide variety of UD practices.

For Customers

UD Efforts at Toppan Departments
Toppan researchers, mainly from thepackaging departments, began studying the color perception of the elderly in
1998. A decade later, in fiscal 2008, theCompany took out a patent on the color

conversion device, a technology jointly
developed with Katsunori Okajima(Associate Professor, Yokohama National
University in Japan), an expert in vision
science. Toppan continues to develop
easily recognizable designs for theelderly and people with weakness incolor perception.
The Company concentrates intensive
resources on the development of products and services from consumer viewpoints based on the results of user
surveys on the various environments inwhich its products and services are
expected to be used. The packaging
departments are pressing ahead with
their projects to plan and develop
more intuitive packaging materials withenhanced user friendliness. Departments in the Information & Networks
field, meanwhile, are gearing up theirwork to plan and develop pamphlets
that are easier to read, search, andunderstand for readers. As more ofthese pamphlets are produced, moreorders come in. These efforts will be
continued in the future.

Social Reportof hydrogen, oxygen, electrons, andwater in the catalyst layer to increase
the power-generation efficiency. Toppan
is working to obtain this ideal MEA condition with proprietary inking, coating,and laminating technologies.
In fiscal 2008, Toppan made someheadway in upgrading the performanceof a non-platinum catalyst used in the
inking process. In fiscal 2009, theCompany will continue to develop a newmaterial for fuel cells as a participant inprojects run jointly by industry, government, and academia. It will also seek tobuild up low-cost and high-efficiency
production technologies by further refining its own coating and laminating technologies.
Toppan will explore possible new
applications for fuel cells in renewed
relationships with automakers and the
manufacturers of fixed fuel cells.

UD paper containers

Eye-tracking camera for analyzing consumer
gaze behavior

UD flexible packaging materials and plastic
containers

TOPPAN CSR REPORT 200935

Social Report

With Business Partners

Establishing a Trusted Supply Chain
Under its CSR Procurement Guidelines, the Toppan Group implements CSR initiatives throughout
the entire supply chain in collaboration with business partners.

Promoting CSR Procurement
The Toppan Group has established a setof CSR Procurement Guidelines to promote CSR procurement in collaboration
with business partners involved in theprovision of raw materials and equipment and the production and processing of products for the Group.
These guidelines consist of the Basic
Procurement Policy and the CSR Procurement Standards. The Basic Procurement Policy is a conceptual framework
to be closely observed by every employee
involved in procurement operations.
The policy states the following six
principles.
•Fairness and propriety•Compliance•Information security•Environmental consideration•Pursuit of quality, cost, and delivery(QCD)•Promotion and development of CSR
To deepen employee understanding of
the Basic Procurement Policy, the Group
incorporates the Conduct Guidelines,
the Purchasing Rules, and the Subcontract Law Compliance Manual in
education and training.

The CSR Procurement Standards
stipulate the requirements to be satisfied by every business partner. At thesame time, all employees in the Toppan
Group are required to adhere to thestandards. In collaborating with business
partners, the Group implements CSR
initiatives throughout the entire supply
chain with the aim of corporate valueenhancement for every counterpart.

Boundary and Breadth of the
CSR Procurement Standards
The CSR Procurement Standards
require the close consideration of basic
human rights, public order, information
management, the environment, QCD,
and social contributions in the course of
all business activities at the Toppan
Group. The 20 standards categorized
into the eight separate areas covered by
the CSR Procurement Standards conform with Toppan’s Conduct Guidelines
and the CSR terms established by
the Japan Electronics and Information Technology Industries Association(JEITA). The Group asks its business
partners not only to seek cost performance, but also to pay attention to soci-ety and the environment.
As a basis for business, the Toppan
Group recognizes that every business
partner must have a full understandingof the purposes of CSR procurement at
the Group, must comply fully with theGroup’s CSR Procurement Standards
when dealing with Toppan or Group
companies, and must fully cooperate in
the implementation of CSR initiatives.
The business partners of the Group
include raw material manufacturers,
trading companies, sales agencies,
companies entrusted with production
and processing, companies specializedin planning and design, and providersof services and labor.

Complying with the CSR
Procurement Standards andAdvancing CSR Initiatives
Interactively
The boundary of business partners asked
to cooperate with the efforts of the Toppan
Group to advance CSR procurement
was expanded to include planning anddesigning companies in fiscal 2008. In
total, 902 companies participated in thebriefing on the Group’s CSR initiatives.

Toppan Group CSR Procurement Guidelines (revised from the Procurement Guidelines in May 2007)
Basic Procurement Policy
IWe impartially offer opportunities to all suppliers.
IWe comply with all domestic and overseas legislation and perform fair business dealings based on corporate ethics.
IWe strictly control the information obtained through our procurement activities.
CSR Procurement Standards
1. Basic human rights(1) The company respects basic human rights.
(2) The company does not carry out unjust discrimination in the treatment
and employment of employees.
2. Public order, compliance with laws, fair business activities(3) The company does not carry out inappropriate profit sharing or receipts.
(4) The company does not have dealings with any antisocial individual or group.
(5) The company complies with laws, regulations, and government notices
applicable to business activities, such as company laws, antitrust laws,
subcontracting laws, labor-related legislation, and environment-related
legislation.
(6) The company complies with laws protecting those who disclose information in the public interest, and it protects the rights of those whoreport internally.
(7) The company complies with legislation related to exports and with thelaws of the countries and regions in which it operates.
(8) The company does not allow child labor or forced labor.
(9) The company does not infringe intellectual property rights such as
patents, copyrights, and trademarks.
3. Management and disclosure of information(10) The company carries out appropriate management of confidential information and personal information obtained through its dealings.

36

TOPPAN CSR REPORT 2009

IWe give full consideration to impacts on the environment.
IWe pursue QCD (Quality, Cost, Delivery) in order to meet the needs of themarket.
IWe implement CSR initiatives throughout the entire supply chain.
(11) The company strives to make timely and appropriate disclosure of
information relating to matters such as the details of business activities, quality, and product safety.
4. The environment and safety(12) The company strives to use raw materials and components with a low
impact on the environment.
(13) The company strives to devise processes with a low impact on theenvironment for manufacturing and processing.
(14) The company carries out appropriate management of chemical substances specified by Toppan.
(15) The company carries out appropriate disposal of industrial waste.
(16) The company strives to prevent work-related accidents and create asafe and clean workplace, and also works to ensure the safety of
employees in an emergency.
5. Improving quality(17) The company meets the standards for quality required by Toppan andstrives to improve quality.
6. Appropriate pricing(18) The company provides products or services at a price that is competitive in the market.
7. Stable supply(19) The company meets stipulated delivery dates and supplies items safely
and reliably.
8. Social contributions(20) The company engages in contributions to society.

Establishing a Trusted Supply Chain

Assisting Business Partners
in the Management ofChemical Substances

One important factor in building a sustainable society is to purchase environmentally friendly products preferentially.
In conformance with the Green
Standards for Offset Printing Services
established by The Japan Federation of
Printing Industries (JFPI), Toppan introduced a “green procurement” system in
April 2002 and revised it in March 2006.
In fiscal 2008, Toppan’s conformance
ratio for ink was 95.8%. For paper products, the Law on Promoting Green
Purchasing of Japan and the Green
Purchasing Network (GPN)’s purchasing
standards in the Japanese market wererevised in February and April 2009,
respectively, to cope with the emergenceof recycled paper products with fraudulent labeling on their used paper content.
To keep up with these revisions, Toppan
is considering how the Company should
revise its in-house standards accordingly.
For its office operations, meanwhile,
Toppan adopted a Basic Policy of Green
Purchasing in January 1999. Under thisbasic policy, the Company selects products that meet in-house “green purchasing” standards and purchases themon an ongoing basis.

With Business Partners

Among the CSR Procurement Standards
in place, the standards governing themanagement of chemical substances
harmful to humans are extremely
important.
Toppan manages chemical substances in collaboration with business
partners by establishing a set of Company-wide Standards for the ChemicalComponents of Raw Materials, basedon the 24 groups of substances designated by the Japan Green Procurement
Survey Standardization Initiative (JGPSSI).
Each of the common Company-widestandards is supplemented by separate
standards set for businesses that require
management systems for specific product types, such as electronic components, bank and credit cards, andpackaging for food and medical supplies.
In fiscal 2008, Toppan established amanagement system based on its QMS
in order to enhance the effectiveness ofchemical substance management at its
business partners.

Promoting Green Procurement
and Green Purchasing

Social Report

The business partners willing toobserve the Group’s rules of CSR procurement submit a memorandum ofcooperation and report the current statusof their CSR activities in a questionnaire.
The Toppan Group collects and analyzes questionnaire results and provides
feedback evaluations to the relevantbusiness partners whenever necessary.
The Group has also begun to visit
business partners to conduct onsite
checks and exchange views on CSR initiatives based on the results of its evaluations of the survey response forms.
Through this approach, the Group seeks
to enhance the level of CSR activities
interactively with its business partners.
The Supplier Hotline, a portal forreceiving reports from business partners,
has been installed since July 1, 2009.
The hotline serves as another channel
for the steady improvement of communication with business partners.
The Group’s CSR Procurement Guidelines are posted on the Toppan website,
together with an email link for inquiries.

Green Purchasing Network (GPN)A nationwide network founded in 1996 to promote green purchasing in Japan. As of March
11, 2009, the network comprised 2,929 organizations (2,393 companies, 264 government institutions, and 272 private organizations). The
network announced its Purchasing Guidelines
for Offset Printing Services (GPN-GL14) inDecember 2001.

CSR Procurement Guidelines
http://www.toppan.co.jp/english/csr/policy.html

Interview with a business partner

TOPPAN CSR REPORT 200937

Social Report

With Communities

Cultural Contributions
Adhering to its identity “as a mainstay of information and culture” under the Corporate Philosophy,
Toppan draws from its specialist knowledge in printing to operate cultural facilities andorganize cultural activities.

As a Mainstay of Information
and Culture

Activities to Contribute to
CultureEver since its invention, printing has contributed to the development of culture
and art through the conveyance of
information. The information conveyed
through printing can amaze and leave
deep impressions. Activities to contribute to culture help Toppan live up to
its identity “as a mainstay of information and culture” under the Corporate
Philosophy.
The Toppan Hall and Printing Museum,the Company’s main cultural facilities,
are venues for a host of cultural activities sponsored and organized by
Toppan. Both are annexed to the
Toppan Koishikawa Building in Tokyo.
Group companies such as Tokyo
Shoseki Co., Ltd. (a publisher of school
textbooks) and froebel-kan co., ltd.
(a publisher of children’s and picture
books) have also been contributing culturally. Toppan is eager to contribute to
the growth of not only the Group, but
the printing industry as a whole.

Printing Museum
The Printing Museum, Tokyo pursues
activities towards the establishment of a
new academia, the study of printing culture, to cultivate learning on the culturaldimensions of printing itself. More than
260,000 people have visited the museum
to date.
The public can visit the General
Exhibition Zone in the Main Exhibition
Room year round, as well as temporary
exhibitions held several times annually.
The museum also includes a Printing
Workshop, VR (Virtual Reality) Theater,
specialized library, and museum shop.
A permanent installation in the General
Exhibition Zone presents an easy-tounderstand history of printing over atimeline spanning five ages, from thebirth of printing to the present. The
Printing Workshop, a space for education and training, has been used by over
150 institutions and organizations,
including companies, technical colleges,
and elementary schools.
The museum held two temporary
exhibitions in the Main Exhibition Roomin fiscal 2008: 1950s Japan: The Blos-

soming of the Graphic Designer and The
Birth of a Million Seller: Magazines as
media in the Meiji-Taisho era.
1950s Japan: The Blossoming of theGraphic Designer featured 500 graphic
design works and related production
content for books, booklets, posters,newspaper and magazine advertisements, wrapping paper and packaging,and more. The exhibit attempted to
trace the patterns of development ofJapanese graphic design in the 1950s,
a decade when the foundations of
postwar design were being laid. The
Birth of a Million Seller: Magazines as
media in the Meiji-Taisho era traced thehistory of magazines in Japan over three
periods. Visitors learned how magazines
rapidly evolved as a medium to support
the lifestyles of the general public.
The P&P Gallery adjacent to thePrinting Museum presents temporary
standalone exhibitions on themes mainly
to do with printing techniques, designs,
and books. Several exhibitions wereorganized in fiscal 2008, including
GRAPHIC TRIAL 2008; How Pop-Up
Books are Created; Born in Bulgaria—
Using the Cyrillic Alphabet in Posters;
and World Book Design 2007–08.

Local Community Activities Conducted by the Printing Museum

1950s Japan: The Blossoming of the Graphic
Designer

The Printing Museum engages in a broad
range of community activities as a cultural
facility operating in Bunkyo Ward, Tokyo. The
museum is especially active in collaborative
projects with local educational institutions.
Since its opening in 2000, the museum
has supported a number of programs for
extracurricular study, career experience education, and integrated learning by elementary and junior high school students in
Bunkyo Ward. Its main effort in this area has
been a collaborative learning project with
Kanatomi Elementary School. The museum
has organized various learning programs
since the launch of the project in 2001. In
fiscal 2008, it educated fourth- and fifthgraders on the history and mechanisms ofprinting. In October 2008, the school sent
the museum a letter of appreciation to commemorate their eight years of collaborative
activities.

In addition to supporting learning projects
at schools, the museum has been contributing to lifelong learning programs for residents
in Bunkyo Ward. Since 2007, it has held the
Bunkyo Academic lecture series, a lifelong
learning program for local residents hosted
by Bunkyo Ward, in collaboration with the
Bunkyo Academy Foundation. Four lectureson the theme of “Learning printing culture”
were presented in fiscal 2008.

Bunkyo Academic lecture series
The Birth of a Million Seller: Magazines as media
in the Meiji-Taisho era

38

TOPPAN CSR REPORT 2009

Cultural Contributions

Concert by the Tokyo College of Music String
Orchestra

Contributing to Society throughMusic
In 1959, froebel-kan co., ltd., a publisher
of children’s and picture books, organized a boys choir, a relatively rare thingin Japan, as a social and cultural project. By the time the Froebel Boys Choircelebrated its 50th anniversary in 2009,as many as 1,000 boys had passed
through its ranks. About 80 young vocalists, from three-year-olds to junior highschool students, are now members. The
choir makes very kinds of appearances,including television performances andcommercials.
True to its corporate philosophy, “todevelop character through educationand culture,” Tokyo Shoseki Co., Ltd.
has been a joint sponsor of Japan’s
Nursery Rhyme Culture Award, an event
hosted by the Association of Children’s
Song Writers in Japan, since 2002. The
sponsors celebrate the Children’s SongDay on July 1 of every year by bestowing the award on an individual or groupof individuals in Japan who have helped
to spread children’s songs. Through thisaward, they hope to pass along thenursery rhyme culture of Japan to coming generations.

Central Contest for Book Report Drawings

Commendation ceremony for Japan’s Nursery
Rhyme Culture Award

Exhibition room at The Textbook Library

Froebel Boys Choir

TOPPAN CSR REPORT 2009

With Communities

Song Series—Gedichte und Musik: ChristophPrégardien

Supporting and Sustaining Education
CultureToppan works with The Mainichi Newspapers Co., Ltd. and the Japan School
Library Association as a cosponsor of
the Central Contest for Book Report
Drawings, an annual contest to encourage students to express their impressions of books by drawing. The judgesof the 20th competition in 2008 received
555,385 picture entries from 7,354
schools.
Tokyo Shoseki Co., Ltd. opened The
Textbook Library, Japan’s first repositoryof school textbooks, back in 1936. Thislibrary now houses about 140,000 volumes, from historical literature in the Edo
Period to modern textbooks. The entire
collection can be browsed at no charge.
The Tosho Education Award wasestablished in 1984 with the aim of contributing to education. The library commends excellent essays on teachingfrom among submissions from educational professionals across Japan every
year. The essays are compiled in a collection and distributed to teachers
around the country to help propagate
excellent teaching methods.

Social Report

Toppan Hall
Toppan Hall is a 408-seat symphonicconcert hall opened in 2000. Designed
as a venue for a shared “moving of theheart,” the hall is known for the redolent, acoustical warmth of its woodmaterials.
Performances of many genres havebeen held at the hall, from recitals by
world-famous musicians to Lunchtime
Concerts (six times a year; admissionfree) and Espoir series, events held todiscover and foster talented young
musicians. Thirty-five concerts wereorganized in fiscal 2008, including special programs such as the publicly
acclaimed Song Series—Gedichte undMusik and Olivier Messiaen’s 100th BirthAnniversary Series—Messiaen: Quatuor
pour la Fin du Temps. Toppan Hall isalso lent out for the Music Competitionof Japan and local music colleges andelementary schools. More than 330,000
people have visited the hall to date.

39

Social Report

With Communities

Social Contributions/Community Contributions
Wherever Toppan operates around the globe, its operational sites undertake activities tofacilitate harmony with the people in communities and societies.

Toppan Charity Concerts
The Toppan Charity Concerts havebeen held in Japan since fiscal 2007 as
events to address social issues of global
relevance.
The concerts are organized to help
raise child literacy rates across theworld. After deducting honorariums forthe performers, the ticket revenue fromthe concerts is donated to the Office of
the United Nations High Commissioner
for Refugees (UNHCR) via “Japan for
UNHCR,” an NPO acting as the official
recipient for the office in Japan. The
donations are used to fund education
for child refugees.
The Company sponsored the second
series of Toppan Charity Concerts on
March 6 and 7, 2009. The high turnout
over the two days enabled Toppan to
donate 2,465,000 yen in total.

Harmony with Local
Communities
Harmony with local communities is an
important CSR theme for the Toppan
Group, a coalition of companies that
operate businesses throughout many
regions across the globe.
In Japan, Toppan harmonizes with
communities through various important
community contribution activities. The
Company beautifies the environment
around its plants, organizes plant tours
and hands-on training sessions, establishes cooperative structures for natural
disaster response, and opens site facilities for local residents.
Blood Drives and Activities for
Cleanup and Beautification of theEnvironment
Toppan develops blood donation drives
and activities for local cleanup and beautification on a regular and ongoing basis
to contribute to local communities.
Thousands of Toppan employees participate each year.
An accumulated total of 14,749
Toppan employees took part in environmental cleanup and beautification activ-

ities at 30 operational sites in fiscal 2008.
In addition, a cumulative total of 2,829
employees donated blood at 32 operational sites.
Plant Tours, Hands-on Training
Sessions, and Job-hunting Support
Programs
Toppan holds briefings and meetings toreport and discuss environmental efforts
at its plants with residents from surrounding communities. As measures
for the fosterage of the next generation,
the Company offers plant tours for elementary and junior high school students
and support programs for young jobhunters.
For elementary and junior high school
students, its plants host tours and show
videos introducing production systems
and processes for printed materials. By
making requests, students can actuallytake part in production processes understrictly controlled safety conditions.
To support young job-hunters, Toppan
provides hands-on plant training and lectures on the basics of printing and marketing. One of the core purposes of the
support programs is to deepen the stu-

Collaborating in the “Campaign to Deliver Picture Books” and Picture Book Bazaar

Ai Okumura on violin, Takehiko Yamada on piano

Izumi Tateno (left) and Ayumi Hirahara (right) on
piano

40

TOPPAN CSR REPORT 2009

On November 9, 2008, a group of Toppan
employees held a social contribution eventat the Toppan Koishikawa Building in Tokyo
by inviting other employees, employee families, local residents, and members of organizations for the support of persons withphysical or mental challenges.
After a mini-concert, participants in theevent took part in the Campaign to Deliver
Picture Books organized by the Shanti
Volunteer Association (SVA). Working withpicture books published in Japan, theypasted over Japanese text with sticker printouts of the same text translated into
Southeast Asian languages.
Through this simple approach, they preparedabout 200 picture books for children in countries with limited opportunities to read. The
books were sent to children in Laos, Cambodia,
and other Southeast Asian countries.
Eleven organizations, including several
dedicated to the support of the physically or
mentally challenged, held a bazaar during the
campaign.

Social Contributions/Community Contributions

dents’ understanding of the businessworld and the rules they will be expected
to observe as new members of businesssociety. The Company also organizes
plant tours and hands-on training sessions for students from schools for thehandicapped and the deaf (Japan has
schools for all types of handicapped persons, including schools exclusively forthe blind and deaf). As a safety precaution, these students are always accompanied by Toppan employees fluent insign language.
Through these programs, Toppan
welcomed 1,668 people to plant tours
and hands-on training sessions at 27
operational sites in fiscal 2008.

Initiatives Overseas

Initiatives in Asia
Under a program called “A plan to makeInitiatives in the U.S. and Europe
Toppan Printing Co. (America), Inc. organized several activities over fiscal 2008,
including student grants, tree planting,and donations to the American Cancer
Society. On one special occasion,
Toppan Printing Co. (America) donatedfunds to girls scheduled to undergo
organ transplants in the U.S. Its New
Jersey Plant made food donations to
the disadvantaged via the local Franklin
Township Food Bank.

With Communities

The basic policy for community contributions overseas is to carry out community-based activities in full considerationof local laws, customs, and cultures. The
operational sites around the world makecharitable donations and hold plant
tours, in addition to organizing volunteer
activities, blood donation drives, andcleanups around the plants. The sites
also engage in various activities in collaboration with NGOs and NPOs in theirregions, including support activities for
local events and participation in meetings aimed at promoting understandingof different cultures.

dreams come true,” Toppan CFI (Taiwan)Co., Ltd. has been supporting children
from single-mother families and otherhouseholds in need of economic aid.
Toppan CFI (Taiwan) donated playequipment to families in March 2008 andsent 146 books for first-graders to the
Tainan Municipal Library in April 2009.
P.T. Toppan Printing Indonesia invites
children from nearby orphanages to visit
its operational site. The children takemeals together with employees andreceive donations and commemorative
gifts such as stationery and bags. P.T.
Toppan Printing Indonesia has been
continuing these activities as an annual
regular event.
Social Report

Cooperation with Local Communities
in Natural Disasters
Cooperative support in neighborhoods
is vital for effective disaster response.
The head office in Chiyoda Ward,
Tokyo enters agreements for mutual
support in disaster-relief activities withneighboring companies and nursing
homes for the elderly. The purpose of
these agreements is to minimize disaster damage through cooperative support in firefighting, rescue, and first-aid

activities when disasters strike. The
activities at the head office in fiscal 2008
included a joint evacuation drill in neighborhoods. In addition, the Honjo officein Sumida Ward, Tokyo negotiated withlocal neighborhood associations on an
arrangement for offering temporary shelter for residents. At the Shiga Plant,
meanwhile, eight employees registeredin a local fire brigade

Activities for Contributing toLocal Communities in Fiscal 2008
Operational
Participants
Sites
Environmental cleanup
and beautification
activities

30

14,749Blood donation drives

32

2,829

Plant tours and hands-on
training sessions

27

1,668
Joint evacuation drill under a mutual-support
agreementChildren receiving donations (Toppan CFI [Taiwan])

Cleanup around a plant

Welcoming children to an operational site (P.T.
Toppan Printing Indonesia)

TOPPAN CSR REPORT 200941

With Employees

Social Report

Merit-based Personnel Policies
Toppan values its employees as important assets (“human assets”).
The Company develops personnel policies to encourage highly motivated, vigorous, and earnest efforts.

Basic Concept of Human
Assetspenalties, and the establishment of anopen and fair environment.

Toppan values its employees as precious company assets (“human assets”)
and recognizes how much it depends
on them. From this perspective, theCompany supports the motivated, vigorous, and earnest work of the Toppan
workforce. The Company keenly understands the importance of the motivation
to take on new challenges, the drive towork vigorously with a healthy body andmind, and earnest commitment to follow
through on tasks to completion. Whenemployees work vigorously, earnestly,
and with strong motivation, Toppan isconvinced that they show their true abilities to the full. Toppan strives to improve
the abilities and draw out the organizational powers of every employee throughthe stages of hiring, appointment, training, leveraging, and treatment. To do so,
the Company places high priority on
communication between superiors andsubordinates in a spirit of mutual trust,
employee progress towards goals withwell-defined visions, the formulation of apersonnel system for the strict andappropriate enforcement of rewards andBasic Thinking on Personnel Policies
Toppan recognizes that it can build thetrust and respect of society, customers,
and other stakeholders by encouraging
all of its employees to pursue the realization of TOPPAN VISION 21 through“conduct of high value.” In keeping withthis conviction, the Company’s personnel policies for hiring, appointment, training, leveraging, and treatment are allbased on “conduct of high value” and“abilities and skills.” The term “conductof high value” describes the concrete
employee actions that go into the realization of the Corporate Philosophy andCorporate Creed. “Abilities and skills,”
meanwhile, are indispensable to thepractice of valuable conduct. A basic
framework for abilities and skills is set
for each job type and department.
Operating the Personnel System
Properly in Cooperation with theLabor Union
The labor union surveys non-managerial
staff with questionnaires to gauge how

As of March 31 each fiscal year. The number of temporary staff members forfiscal 2006 and 2007 is the average number from January to March.

Employee Data

Male

30

2,173

Total
Employees
9,964

Female

1

15

69

935

9.4

31.6

Management
Class
1,796

Directors
Fiscal 2006
Fiscal 2007
Fiscal 2008

Supervisors

AverageTenure
15.8

Average Age
39.0

Male

29

1,840

2,205

10,18015.5

39.1

Female

1

21

89

1,001

9.2

31.6

Male

28

1,836

2,244

10,437

15.3

39.2

Female

1

26

108

1,111

9.0

31.7

Sum Total
Employees

Part-timeWorkers

TemporaryStaff

10,899

1,163

1,851

11,181

1,273

2,039

11,548

1,208

1,666

Fiscal 2007 Fiscal 2008 Fiscal 2009
Number of Recruits*1
Sales,
Regular
Male
178
132
136
recruitment of administration, Female
66
75
72
etc.
new university
Male
170
146
150
graduates andTechnical
post-graduates
Female36
31
36
New graduates from high
Male
151
156
155
schools and National
Female25
1724Colleges of Technology

Reasons for Leaving*2

Total number of regular recruits(percent female)*2 The number of female employees who left the company is shown inparentheses.

626 (20.3%) 557 (22.1%) 573 (23.2%)

Mid-career recruitment of77
61—
experienced personnel*1 Part of the data for fiscal 2008 is restated from the data disclosed in thefiscal 2008 report. The data for fiscal 2009 includes the number of employees now working at subsidiaries that were spun off on April 1, 2009.

42

thoroughly the Company informs themof the evaluation criteria it uses to set
annual salaries and bonuses. The questionnaire assesses: 1) the alignment ofjob goals and the degrees to which thegoals are achieved; 2) the status of opinion exchanges with superiors on issues
to be solved or improved in the future;and 3) the degree to which employees
are satisfied with their feedback interviews. The questionnaire results arereported to management and used forcomprehending and reviewing the operation of the personnel system. Thisapproach helps management develop
and operate the personnel system effectively in cooperation with employees at
all times.

TOPPAN CSR REPORT 2009

Fiscal 2006 Fiscal 2007 Fiscal 2008

Personal reasons

320 (86)348 (77)249 (41)

Retirement

117 ( 0)150 ( 2)144 ( 3)

Requested by the company

0 ( 0)

0 ( 0)

0 ( 0)

Accession to directorship

3 ( 0)

6 ( 0)

2 ( 0)

440 (86)504 (79)395 (44)

3.9%

4.4%

3.4%

Total
Turnover rate

Average Annual SalaryFiscal 2006 Fiscal 2007 Fiscal 2008

Total

6,751,069
yen

6,699,674
yen

6,561,080
yenRealizing a Safe and Secure Working Environment
Toppan goes to great lengths to provide a safe and secure working environment.
Safety and security are prerequisites for improving productivity and fulfilling the Company’s
most fundamental responsibilities to employees.

Respecting Basic Human
RightsCountermeasures against Disasters

Occupational Safety and
Health2006

Deaths from Frequency
Occupational
Rate*3
Accidents
0
0.16

Severity
Rate*4
0.02

2007

0

0.39

0.01

2008

0

0.19

0.001

*3 Number of occupational accidents requiring
employee leave, per million working hours(reflects the frequency of occupational accidents)*4 Number of workdays lost as a consequenceof occupational accidents, per thousandworking hours (reflects the severity of occupational accidents)

Countermeasures against Pandemic Influenza
Toppan has prepared a manual on healthcontrol measures to prevent the infection andspread of pandemic influenza using information gathered from relevant authorities. In
accordance with this manual, the Company
has been stockpiling masks and other necessary articles; encouraging employees totake up preventive practices such as gargling
and hand washing; restricting business trips;
establishing a routine for sterilization with
ethyl alcohol before entry into the Company’s
premises; and taking various other countermeasures.

Under the basic plan for countermeasuresagainst disasters, Toppan has implemented
comprehensive disaster-preparedness measures in alliance with Toppan Security Service
Co., Ltd. Since fiscal 2007, the Company
has been holding disaster-preparedness drills
in conjunction with an emergency life-saving
drill that includes training sessions on the useof Automated External Defibrillators (AEDs).
The Company’s fire-response squads havealso participated in Self-defense Fire Training
Competitions held by local fire departments.
In the meantime, an evacuation drill has
been held in the head office to rehearse forthe eventuality of a large-scale inland earthquake in Tokyo. This drill includes simulations of the steps to be taken to establish a
disaster-countermeasure office. In fiscal 2008,
the Company checked the initial actions to
be taken primarily by its own fire-response
squads when an actual disaster strikes, withthe aim of reducing the time required to identify personnel under disaster conditions.
To alleviate earthquake damage preemptively, Toppan has been working steadily

Toppan arranges regular medical checkups and screenings for lifestyle-relateddiseases in order to maintain andenhance the health of employees by
preventing and promptly detecting
health problems. The Company has
been implementing a Lifestyle Improvement Support Service and other measures. Employees in need of lifestyle
improvements are offered guidance on
preemptive actions they can take tostave off health problems.
In response to the Japanese medical
institutional reforms of April 2008, theCompany has established a new system to take countermeasures against
metabolic syndrome, in cooperation with
the Toppan Group Health Insurance
Union and 59 clinics across Japan.
Toppan also provides employees with
opportunities to enhance their physicaland mental wellbeing in various ways.
In one program, for example, membership is subsidized for any of the 500 fitness clubs contracted by the Toppan
Group Fraternal Benefit Society throughout Japan.

With Employees

Occupational Safety and Health

The Conduct Guidelines call for theassurance of the dignity of individuals
under all circumstances, and no invidious discrimination on the basis of race,
ethnicity, nationality, religion, gender, or
physical characteristics. To raise esteem
for basic human rights, including the prevention of sexual and power harassment,
Toppan has been promoting awarenessraising activities in rank-based training
for employees. Some 1,020 employees
participated in fiscal 2008.
To resolve and prevent troubles
with sexual harassment, inappropriate
employee conduct is reprimanded under
employment regulations based on the
Basic Policy on Sexual Harassment at
the Workplace established in 1999.
Sexual harassment counselors are also
deployed.
No instances of child labor or forcedlabor have ever occurred in the Company.

Healthcare and HealthEnhancement

Social Report

Toppan makes every effort to eliminate
occupational accidents through the workof the Safety and Health Committee.
This committee regularly organizes safety
education and establishes safeguards
as a body planned and operated bylabor and management. Safety and
Health Subcommittees are set up in the
manufacturing departments to bolster
the total productive maintenance (TPM)
activities within the departments. These
subcommittees seek to secure safety
through a set of all-hands safety improvement activities designed to enable every
employee to apply his or her full-fledged
abilities without fear of injury.
Whenever an accident occurs, employees throughout the Toppan Group
receive information on the details andcauses of the problem. Each operationalsite uses the information to plan out customized countermeasures to ensure thatsimilar accidents will never recur on its
premises.
The technology departments, meanwhile, lead Company-wide efforts to
identify and understand all of the potential causes of occupational accidents
before installing equipment. Proactive
safety checks and improvements are
essential steps for preventing accidents.

since fiscal 2005 to install a system to receive
the Earthquake Early Warnings issued by theJapan Meteorological Agency.
Measures to reserve stockpiles for disasters have also been taken. As part of thiseffort, Toppan is cooperating with theJapanese Consumers’ Co-operative Union ina project to install vending machines that will
dispense food, beverages, and goods for freeduring power failures caused by disasters.

Training session on AED operation

TOPPAN CSR REPORT 200943

Social Report

Measures for Mental
Healthcare
The number of patients with mental illnesses in Japan has been increasing
year by year. The maintenance andenhancement of the mental health of
employees have become important
issues for Toppan.
The Company has been enrichingmeasures to cope with this issue with
an emphasis on prevention and early
detection. Various mental healthcare
training sessions have been arranged
and a person has been appointed ateach operational site to take charge ofmental health enhancement.
Toppan considers its work to maintain employee health—a vital component of its corporate activities—as acommon task to be shared by labor andmanagement. These two parts of theCompany exchange their frank views on
mental healthcare measures on arepeated basis through channels suchas the business councils, the committees formed to help create a working
environment amenable to enhanced job
satisfaction, and the special committees

With Employees

formed to promote mental healthcare.
Since October 2008, several rules havebeen appended to the employment regulations to help the Company provide a
working environment to which employees can more readily return after
extended periods of mental healthcare
leave. These rules include a clear set ofcriteria for deciding when an employee
should return to work, measures to prevent the recurrence of leave, and programs to support employees once they
return to work. Toppan has enhanced
its mechanisms to prevent and promptly
provide care for mental problems byholding mental health checkups andintroducing new programs, including an
art session for employees to refresh theirminds and bodies through art. The
Company has also concluded advisory
agreements with medical specialists in
the regions in which it operates tosecure a ready source of advice andinstruction from professional viewpoints.
A workforce of employees healthy inmind and body with thriving potential
and skills to contribute to the mastheadis essential for the development of

Overview of Mental Healthcare System
Secondary
Prevention:

MedicalTreatment:

Proactive measure

Early detection

Early cure

Mental healthtraining
IRank-based
training
IIncorporated in
optional (group)
training

Supporting Work-Life Balance
Efforts to Shorten Total Working Hours
Excessive overtime is a longstanding
issue for Toppan. Labor and management have jointly examined the actual
overtime practices at each operationalsite and responded with measures tocontrol the numbers of hours worked.
For the time being, however, the characteristics of the printing industry still
stand in the way of fundamental solutions. In October 2008, Toppan launcheda Company-wide effort to eradicate
extended overtime work as a top-priority issue for compliance with laborrelated laws and regulations, the support
for work-life balance, and the maintenance of employee health above all.
Senior management seeks to bringToppan closer to its ultimate goal oferadicating extended overtime by collaborating with managers and employees
Annual Paid Holidays Used

Primary
Prevention:

Regular mental health checkups,
including stress checks

the Company. Toppan will continue its
endeavors to maintain employee healthand support the recovery of employees
who are forced to take leave for reasonsof health.

Steps to Prevent
Recurrence:
Support for returning
employees (fresh starts)

Contracts with mental healthcare specialists

Average Paid
Holidays Used

Average Ratio*1

Fiscal 2006

7.8

41.2%

Fiscal 2007

7.7

41.4%

Cooperation with medical and counseling institutions outside Toppan

43.5%
Fiscal 2008
8.1
*1 Average ratio = average paid holidays used /average paid holidays granted

Guidance and information of consultants
outside Toppan (contracted with the
Toppan Group Health Insurance Union)

Employees Taking Maternity orChildcare Leave•A clear set of criteria
for deciding whenan employee on
leave should return•A new rule forpreventing therecurrence of mental
healthcare leave

Introduction of programs to support employees
returning from mental healthcare leave

Employees
Employees
Taking Maternity Taking Childcare
Leave*2
Leave
40
Fiscal 2006
58 (1)
Fiscal 2007

Permanent installation of an art session for employees
Appointment
and deploymentof a person totake charge ofmental healthenhancement at
each operational
site

44

TOPPAN CSR REPORT 2009

Steps to allay
anxiety after
resignation
Financial assistancefrom the Toppan
Group Fraternal
Benefit Society andlike sources for fixed
periods after
resignation37

63 (2)

42
74 (2)*2 The number of male employees who tookchildcare leave is shown in parentheses.
Fiscal 2008

Realizing a Safe and Secure Working Environment

Toppan will continue to implement
various measures to provide employeeswith working environments for better
work-life balance.

Labor-Management Partnership
In keeping with the perception that laborand management are partners in sharedideals, the Company management andthe labor union trust and respect eachother’s positions. The two parties work on
various issues together on an equal footing
and hold events of different sorts, including recreational activities for employees.
Business councils are convened asforums on Company-wide and operational site bases to discuss wide-ranging managerial issues. Committees todeliberate individual issues are also convened, including standing committees
to discuss working hour reductions,wages, welfare, and safety and health,and special committees to tackle topical issues facing the Company.
Toppan has introduced a union shop
system. In principle, all non-managerial
employees are members of the labor
union.

With Employees

Efforts to Foster the Next Generation
In addition to making efforts to shorten
total working hours, Toppan has striven

for years to create a working environment in which employees can achieve
better work-life balance. It does so by
providing systems for childcare andnursing care leave, for reduced working
hours, and for a higher family allowancefor dependents.
A rehiring system for employees who
resign from the Company to deliver andbring up children has been establishedsince fiscal 2006. Now, in the third yearof system operation, 12 resigning employees have registered for future rehiring. The
coverage of the system for reduced working hours for employees who need to care
for a child has also been extended. A
schedule reduction of up to two hours a
day was originally offered to a parent until
his or her child reached the age of three;
now it is available until the child completes the third year of elementary school.
A staggered work-hour system for childrearing has been put in place during
fiscal 2008. In fiscal 2009, Toppan introduced another institutional improvement
by granting staggered work-hours for
expectant mothers to help them avoid
rush-hour commutes.

Social Reportin implementing measures to improve
operating effectiveness by reviewing theways individuals work and the ways
management administrates, equalize
overtime hours by adjusting operations
within the departments, and introduce
new working systems such as flex-timeand off-hour working schedules on a
trial basis.
As a result of these measures, thenumber of employees who worked longhours due to extra work on holidays andextended overtime late into the night
was reduced by about 90% over the sixmonth period from October 2008 to
March 2009, compared with the same
period a year earlier. The average hoursof overtime worked decreased byaround 20%.
Fundamental solutions to excessive
overtime will require constant andceaseless attention. Toppan will tackle
the issue with its full energies over theyears to come.

Main Holiday and Leave Systems / Measures to Support Work-Life Balance and Foster the Next Generation
Stock Leave

Employees can accumulate up to 50 days of annual paid leave (exercisable within two years from the date they are granted).
Employees are eligible to use their stock leave when they or their dependents require treatment or nursing, or for recovery
from unexpected disasters.

Childcare Leave

Both mothers and fathers are eligible for fulltime childcare leave consecutively until their child reaches the age of 18 months(10 male employees have taken childcare leave so far, on a cumulative basis). Employees on leave receive 10% of theirregular salaries from the Company and subsidies of 30,000 yen a month from the Toppan Group Fraternal Benefit Society.
They can also work for shorter hours (maximum reduction of two hours per day, in principle) from the date of their return tothe job until their child completes the third year of elementary school. The Company subsidizes certain childcare costs andprovides childcare-related information through a consultation office.

Rehiring of Employees who
Leave the Company toRaise Children

Rehiring is guaranteed for an employee who resigns to deliver and raise a child, provided that the employee has worked for
Toppan for more than three consecutive years up to the date of resignation. A resigned employee who meets these
conditions will remain eligible for rehiring until May 1 of the year when the child enters primary school.

Nursing Care Leave

Employees are entitled to take leave for nursing care. The maximum consecutive leave and maximum reduction in a working
day are one year and two hours, respectively, for every family member requiring the nursing care. The Toppan Group
Fraternal Benefit Society pays a 30,000-yen subsidy per month as compensation during the nursing care leave. The
Company subsidizes certain nursing care costs and provides nursing care-related information.

Healthcare Leave

Employees can take up to 10 days of leave a year. These days can also be taken in half-day allotments when necessary.

Volunteer Leave

In principle, employees can take a volunteer leave to engage in socially beneficial activities for a maximum of one year.
Employees on volunteer leave receive an allowance.

Staggered Work-hours

An employee can adjust daily working hours upward or downward by up to one hour to avoid rush-hour commutes during
pregnancy, and by up to two hours for childcare (until the child completes the third year of elementary school).

Dependent Family Allowance The Company pays every employee with children a monthly allowance of 20,000 yen for each child. This allowance isdiscontinued on the first April 1 to arrive after the child’s 18th birthday. (No limit for the number of children is applied.)
Partial Subsidization ofBabysitter Expenses

The Toppan Group Fraternal Benefit Society subsidizes 50% of babysitter expenses, up to 5,000 yen a day, for up to 90
days a year.

Other Systems

The Toppan Group Health Insurance Union offers a supplementary allowance in addition to a lump-sum allowance forchildbearing and childrearing. It also provides one-year free subscriptions to the monthly childcare magazine Baby andMommy and runs a consultation office for employees with questions about the health of the body and mind.

TOPPAN CSR REPORT 200945

With Employees

Social Report

Leveraging Diverse Human Assets
Toppan leverages an array of human assets in pursuit of diversity*1 in order to provide broad andequal opportunities and draw from the diverse “integrated strength” of its people.

Leveraging Female TalentMore Shrewdly
Toppan has promoted positive action toleverage female talent for creating newvalue. To better respond to customer
and social needs, the Company must
develop new products and services fromfeminine perspectives.
Toppan proactively appoints female
employees to managerial and supervisory positions. Those efforts haveincreased the number of female managerial and supervisory staff to 140, or
to 3.31% of the total number of managers and supervisors (as of April 1,
2009). This trend is an encouragement
for female employees and tends to activate energy in the workplace overall. In
parallel with its vigorous attempts to promote managerial advancement for
women, Toppan has upgraded andexpanded various systems to create
working environments in which female
employees can take full advantage of
their capacities at work as businesswomen and at home as mothers. The
Company will maintain its efforts to build
workplace environments in which female
employees can contribute more energetically and freely.
Female Managerial and Supervisory Staff(Staff) ■Female supervisory staff
150 ■Female managerial staff
136

90
60

87
110

110

91
72

30
0

Ongoing Success in the
Employment of Persons
with Disabilities
In 1993, Toppan founded Tokyo Metropolitan Government (T.M.G.) Prepress
Toppan Co., Ltd., a special subsidiarythat employs persons with disabilities.
Since then, Toppan’s ongoing measures
to promote the hiring of persons withdisabilities have been handled mainly
via this company. As of June 1, 2009,
persons with disabilities accounted
Employees with Disabilities
Employees

Percentage of Total
Workforce*2

2007

146

1.84%

2008

151

1.83%

2009

160

1.90%

(As of April)
140

112

120

Supporting Second Careers
To support second careers in company
life, Toppan offers diverse options forsecond-career employees by developing suitable work categories. The Company builds up a structure to use theknowledge, experience, techniques, andskills that employees acquire throughlong years of work.
Toppan operates a Senior Reemployment System to offer retired employees
extended tenure at the Company on a
post-retirement basis until they reach theage of 65. Eighty-six of 144 employees
who retired in fiscal 2008 were reemployed in the same year and now remain
with the Company.

15

21

26

30

2006

2007

2008

2009

*2 The percentage is calculated based on the
total number of regular employees (as of June1) as a denominator. The total number waspresented in the Disabled Persons Employment Report in accordance with Article 8 of
the Law for Employment Promotion, etc. of
the Disabled of Japan.

*1 Diversity: “Diversity is a ‘strategy of utilizing avariety of human resources.’ Avoiding the hitherto established standards within firms andsociety and taking into consideration the values and concepts of various attributes (gender, age, nationalities, etc.), this is a strategy
which responds to the changes in businessenvironment in a rapid and smooth manner
to achieve firm growth and individual happiness.” (Regression to the Origin—The Directions of Diversity Management from Japan
Federation of Employers’ Associations: May
2002)
T.M.G. Prepress Toppan Co., Ltd.

46

TOPPAN CSR REPORT 2009

for 1.90% of the total workforce at
Toppan.

Providing an Open
Environment for Recruitment
Toppan offers various employment
opportunities for persons of both genders and persons of many nationalities,
ages, and levels of physical ability.
Recruitment takes mainly two forms: hiring of new graduates from universities
and high schools every April, and midcareer hiring of experienced personnel
year round.
Prior to recruitment screening, Toppan
determines the forms of talent it actuallyrequires based on the results of
employee consciousness surveys and areview of the behavioral characteristics
of outstanding achievers and performers. In screening candidate recruits, theCompany tries to estimate if their competencies and potentialities are suitable.
Recruitment screenings are conductedin seven venues in Japan to provide amore open environment for hiring. The
Company has also run various internship programs to boost student awareness about work, including practicaltraining sessions, lectures, workshops,Leveraging Diverse Human Assets

and online training courses. A cumulative total of 1,244 interns have participated in these programs during fiscal
2008.
Toppan hired 61 experienced personnel in fiscal 2008. These persons cometo the Company with a rich variety ofexperience and skills suitable for the pursuit of Toppan’s business strategies.

Systems for Self-determinationon the Career Path

The Toppan Group organized a joint company orientation session to give students theopportunity to understand the integrated
strength of the Group. A cumulative total of
350 students participated. Each of the nineGroup companies that took part in the session presented participants with a description of its business and its attractive points.
The sessions awakened the interest of thestudents and convinced many of them toapply for recruitment screening at these companies.

Properly Leveraging
Non-regular Employees
Part-time workers, temporary staff, contract workers, and various other categories of non-regular employee engage
in operations for Toppan. Wheneverneeded, the Company verifies whether
individual contract details and related
laws and regulations are faithfully
observed in their employment. It also
appoints non-regular staff to regular
positions, depending on their competence and willingness. Seventeen persons became regular employees under
Toppan’s system for the hiring of experienced personnel in fiscal 2008.

Internship

TOPPAN CAFÉToppan’s internship program provides students with opportunities to experience work
as it really is. Participants gain insight into
work at Toppan through lectures on marketing theory and printing techniques, as well
as experience in planning. The program also
gives interns the chance to actually experience a day’s work by accompanying staff inthe sales and planning departments. Wheninterns complete the program, they leave witha palpable understanding of the work experience at Toppan.

The TOPPAN CAFÉ is not a company orientation session per se. It can be better
described as a series of roundtable meetings where students meet with Toppan
employees to discuss and share their concerns and difficulties as job hunters. The purpose is to ease the common anxieties andtroubles of newcomers to the labor market.
Some 412 students took part in the meetings in fiscal 2008.

TOPPAN CSR REPORT 2009

With Employees

Joint Company Orientation Session
for the Toppan GroupInternal Venture System
The Internal Venture System was established in January 2001 to discoverhuman assets abounding in entrepreneurial spirit, cultivate a problem-solving, can-do mindset in employees, andcreate next-generation businesses. Fiftysix projects have been proposed under
the system so far. This has led to thefounding of one company (Toppan Character Production Co., Ltd.), the initiationof two in-house businesses, and theadoption of one proposal into a company project. The in-house awards tocommend projects with excellent outcomes enhance employee motivationand increase the likelihood that the projects awarded will be able to continue
their businesses in the future.

Maintaining Employment
Even within the severe business environment of fiscal 2008, Toppan has continued its efforts to maintain employment
and leverage human assets through personnel relocation, work-sharing, andother work arrangements for both regular and non-regular employees. Believingthat “a company is its people,” Toppan
will never cease its extensive work toactivate human assets.

Social Report

Toppan is establishing an ideal working
environment for employees who areeager to create their own careers. The
Company offers employees various
opportunities to take on new challenges
through the Challenging Job System, inhouse staff recruitment system, andoverseas study support system.
In the Challenging Job System,
employees consider their own mediumto-long-term career aspirations, develop
skill-enhancement plans, and cultivatea problem-solving, can-do mindset.
Employees voluntarily report their own
work experiences, official qualifications,language abilities, and the names of thedepartments and divisions to which theywould like to be transferred. Before sub-mitting voluntarily reports, they have theopportunity to exchange opinions withsuperiors in interview settings and personally make comments and requests
with regard to Company-wide affairs andtheir own career plans.

47

With Employees

Social Report

Developing and Fostering Human Assets
Human assets are developed and fostered at Toppan based on the two concepts—“conduct of high value” and “abilities and skills”—to develop individuals andthe Company as a whole.

Concept of Human Asset
Development and Fosterage

participated in rank-based training sessions sponsored by the head office infiscal 2008. The head office welcomes
employees of related companies to thesessions. In department-based training,
the relevant divisions of the head officeplan out curricula to resolve the problems faced by each department. The
divisional training sessions equip employees with practical skills essential for
performing tasks.
The Toppan Business School, meanwhile, offered self-development training
to a cumulative total of 10,900 employees in fiscal 2008. The programs at theschool are customizable to employee
career designs with optional (group)
courses, the Challenge School (correspondence learning courses), and thevideo library. The video collection at thelibrary is useful for holding small group
activities on themes at specific workplaces. A total of 352 videos were lentout in fiscal 2008.
Human resource development leaders from the departments gather at regular meetings to maximize the effectsof training by sharing information on thecontent and purposes of the training
sessions organized by the departments.

Toppan’s rank-based training helps
employees understand the roles andresponsibilities of each rank and appreciate and practice conduct of high value.
The Company offers a wide variety of
training programs systematically to
encourage employees to acquire theabilities and skills required by each division, department, and workplace. In
rank- and department-based training
sessions, employees draw up the curricula and act as facilitators or trainers
to lead and train others in styles closely
attuned to actual business situations.
Toppan also places emphasis on training to activate communications between
superiors and subordinates, between
senior associates and new employees,
and so on. The curriculum for the rankbased training is designed to equiptrainees with skills in asserting themselves
and facilitating and coaching others, as
required for their ranks. Various other lectures are scheduled in the optional training sessions.
Organizing Rank-based Training andSupporting Self-development
A cumulative total of 3,000 employees

Organizing E-learning-based
Programs and Specialist Training
Toppan offers e-learning-based educational programs on CSR activity promotion, personal information protection,
introductory information on sales operations, and TOPPAN VISION 21. The
course on CSR activity promotion has
been conducted as a part of Toppan’srank-based training.
The Company also encourages personnel in the design, prepress, andsales departments to acquire certifications by enrolling in preparatory courses
for DTP experts certified by the Japan
Association of Graphic Arts Technology(JAGAT) and for Promotional Marketers
certified by the Japan POP Promotion
Institute Inc. Some 174 employees
acquired the DTP expert certification in
fiscal 2008.
Coordinating Development andFosterage
Toppan develops personnel rotation topromote individual career advancement
and organizational strength enhancement. Every employee must be capableof handling a wide range of operations
to fulfill the two Company-wide priority
themes: integrated strength enhance-

Toppan’s Human Asset Development Program
Earning the trustof customers“Conduct of High Value” Based on Corporate Philosophy and Corporate Creed
Strengthening business
Fulfilling corporate social
Strengthening
foundations
responsibility
organization

Knowledge andinformation skills“Abilities and Skills” for “Conduct of High Value”
Ability to identify and
Ability to accomplish
Techniques andformulate tasks
tasks
know-howRank-based Training
INew division manager training
INew department manager training
INew manager training
INew supervisor training

48

INew employee Company-widetraining
IEarly career planning
IOJT brother/sister training

Training to Meet Special Needs

Selective Training

ITraining for experienced personnel
hired through mid-career recruitment
IShort-term overseas study
IIT training in India
IGlobalization training
IForeign language training

IExecutive business school
ITraining to nurture industry-leading
talentTOPPAN CSR REPORT 2009

Improving corporate value

Communication andtraining skills

Department-based Training
ISelected training for section
managers in sales departments
ISelected training for mid-level staff insales departments
ITraining for new section managers intechnology and manufacturing
departments

Toppan Business School
IOptional training
IChallenge School
IVideo library

ITraining for employees in production
management departments
ITraining for new supervisors intechnology departments
IIndividual department-based training(Purchasing, Secretary, Personnel &Labor Relations, Technology &Research, and other divisions)

Training by the Divisions
ITraining in each division and at each
workplaceDeveloping and Fostering Human Assets

ment and Total Quality Assurance. The
Company rotates employees systematically and frequently into different regions,job categories, and product specialties
to give individuals experiences in various
operations throughout their career paths.
In the first two years after hiring, somenew employees are rotated between divisions in Tokyo and other major cities inJapan. The experience of work in otherparts of the Company fosters humanassets who can develop solutions byleveraging Toppan’s integrated strength.

With Employees

Personnel Rotation*1

People-to-People Exchange with theOverseas Subsidiaries
Toppan temporarily assigns employees toposts in overseas Group companies as ameans of promoting people-to-people
exchange among Group companies. The
Company also accepts employees fromoverseas Group companies as trainees
through its education and skill training systems. Nine personnel from Siam Toppan
Packaging Co., Ltd. in Thailand received
education and skill training in fiscal 2008.

Fostering Human Assets Active in
Global Businesses
Toppan highly values its system to support overseas study for the fosterage ofhuman assets who can play active roles
in global businesses. Employees havethe opportunity to participate in the following specialist training programs: theMBA abroad program to foster experts
in business management, the study
abroad program for engineers to foster
technical human assets and build overseas networks, IT training in India for inhouse IT specialists, and the support
system for short-term overseas training
to foster human assets in the sales andplanning departments.
Toppan’s globalization training is a setof individualized courses to help candidates for overseas assignments andemployees from departments involvedin overseas businesses acquire basic
skills for working internationally (such as
cross-cultural communication, proposing and presenting in other languages,
facilitating and managing conferences,and negotiating and persuading overseas businesspeople). All of the 130
employees who have participated since
the launch of the training in 1996 haveworked in overseas Group companies
or departments involved in overseas
businesses.

Social Report

Assigning and Fostering New
Employees
Employees hired mainly through regular
recruitment are interviewed on at least
three occasions before assignment: attheir recruitment, during orientation justafter they enter the Company, and shortly
after they are assigned. At each interview
they have the opportunity to express theirwishes for posting and to confer with theirsupervisors on the divisions most suitable for their career plans. Employees
also have the chance to meet with supervisors one year after assignment to discuss whether they are well positioned intheir current workplaces. After this interview, the Company formally determines
the division or department to which theemployee should be assigned.

Toppan regards the first three years
after recruitment as the fosterage period
for new employees and establishes an
early career planning system to help new
employees achieve individually affirmed
career ideals. A senior associate in theemployee’s workplace is appointed as a
“Brother” or “Sister” responsible fortraining and fostering new employees
mainly through on-the-job training (OJT).
The employee, the employee’s immediate superior, and the Brother or Sister
prepare an action plan “design sheet forability and skill development” and regularly check the employee’s accomplishments. The training sessions for Brothers
and Sisters—trainers of new employees—are also held across the Company
to improve the level of the fosteragesystem.

Results in Human Asset Development

Fiscal 2006

Employees
Transferred
301

Percentage ofTotal Workforce
2.8%

Fiscal 2007

595

5.3%

Fiscal 2006

Fiscal 2008
556
4.8%
*1 Only includes rotations among different divisions
to develop human assets for integrated strength
enhancement and Total Quality Assurance.

Retention Rate for Recruits(Percentage of fiscal 2006 hires stillworking at Toppan)

Funds Spent
Usage Rate ofon Training per Toppan Training
Employee
Center*2
37,900 yen
51.5%

Fiscal 2007

41,300 yen

66.4%

Fiscal 2008

35,325 yen

59.2%*2 The usage rate is calculated by dividing thenumber of days it was actually used (including use by subsidiaries and affiliated companies) by the number of days the facility wasavailable.

Trainees from Siam Toppan Packaging receiving
education and skill training

Male Female
Hired on April 1, 2006
Still with Toppan as ofApril 1, 2009
Retention rate
Average totals for males
and females
Percentage who leave the Company
before working three years

500

113

440

102

88%

90%

88%
12%
Globalization training

TOPPAN CSR REPORT 200949

Social Report

With Shareholders and Investors

Increasing Transparency and Distributing Profits Appropriately
Toppan works to continuously enhance corporate value and establish long-term, stable relationships withshareholders through fair and open disclosure of its management activities and appropriate profit distribution.

Increasing the Transparencyof Management Activities
Adhering to its investor relations (IR)motto of fair and open disclosure ofmanagement activities, Toppan thoroughly discloses information throughvarious communication tools for eachstakeholder (➞P. 18).
Disclosing IR Information
Under the in-house Basic Policy on IR,
Toppan has built an exclusive IR website to ensure fairness, transparency,
and promptness in its disclosure of IR
information. Toppan has been announcing its financial results quarterly via the
Company’s website and Toppan Story,
a newsletter for shareholders. Public
meetings with top management havealso been held to explain the Company’s
second-quarter and full-year results. All
documents distributed at these meetings are posted on the Company’s IR
website.

Basic Policy on IR
1. Information Disclosure Standards
Toppan discloses all information required
under the Rules on Timely Disclosure established by the Tokyo Stock Exchange. It alsouses its website in a positive and fair manner
to disclose useful information not required by
the rules, in order to help shareholders andinvestors fully understand the Company.
2. Information Disclosure Methods
Information applicable to the Rules on Timely
Disclosure is disclosed on the Timely Disclosure network (TDnet) provided by Tokyo
Stock Exchange under the rules. Information
disclosed on TDnet is posted on the Company’s website as soon as possible.
The Company’s website does not include
all of the information disclosed by theCompany and may include expressions different from the expressions used in othersources.

Stock Ownership andShareholder Profile
As of the end of March 2009, the total
number of outstanding common stock
was 699,412,481 shares and the total
number of shareholders was 44,547.
Financial institutions, individual investors,
foreign companies, and other companies
make up 41.46%, 24.89%, 18.18%, and14.47% of the shareholders, respectively. The principal shareholders arelisted below.
Dividend Policy
Toppan seeks to improve its dividend
payout with a consolidated dividend
payout ratio of 30% or more as a guidebased on comprehensive considerationof the consolidated financial performance of each fiscal year, the dividend
payout ratio, and internal reserves.
Through this approach, it strives to provide stable profit returns to its valued
shareholders and realize sustainablegrowth of the Company.
Sufficient reserves will be allotted tocapital investment and research anddevelopment for expanding businessfields with growth potential, with theobjective of enhancing corporate value.

The Company will also allocate retained
funds to increase investment efficiency
from a long-term perspective.
Toppan believes that its policy on
profit distribution will help to enhance its
corporate structure and increase future
profitability, and thereby enable theCompany to return profits to its shareholders.
The annual dividend per share at theend of fiscal 2008 was 22.00 yen.
Meeting of Shareholders
A total of 233 shareholders participatedin the ordinary general meeting held in
June 2009. Toppan has established asystem that allows shareholders whochoose not to attend the meeting to
exercise their voting rights online or inwriting.

Stock Ownership Profile
Financial instruments firms(securities companies)
6,977,423
1.00%

Foreign companies
127,133,746
18.18%

By Type of
Shareholder

Financial
institutions
290,001,821
41.46%

Less than 1,000 shares
2,156,971
0.31%

Other
companies
101,232,428
14.47%

Total
699,412,481
sharesIndividual investors
174,067,063
24.89%
Principal Shareholders

The Master Trust Bank of Japan, Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account)
Nippon Life Insurance Company
Japan Trustee Services Bank, Ltd. (Trust Account 4G)
NATS CUMCOThe Dai-ichi Mutual Life Insurance Company
The Bank of Tokyo-Mitsubishi UFJ
Sumitomo Mitsui Banking Corporation
Employees’ Stock Club
Kodansha Ltd.

1,000,000
shares or more
490,156,578
70.08%

1,000 shares or more
69,815,837
9.98%
10,000 shares or more
28,946,669
4.14%
By Number of
50,000 shares
Shares Heldor moreTotal
699,412,481
11,892,491
shares1.70%
100,000 sharesor more96,443,935
13.79%

Number of Shares Held
(1,000 shares)
38,30933,02532,64831,88425,44522,886
15,62815,62814,012
13,077

Percentage of Total Numberof Shares Issued (%)
5.48
4.72
4.67
4.56
3.64
3.27
2.23
2.23
2.00
1.87

Note: As of March 31, 2009. The 54,327,000 shares of treasury stock are included in the “Individual investors” categoryof the graph “By Type of Shareholder” and in the “1,000,000 shares or more” category of the graph “By Numberof Shares Held.” These shares are excluded from the above table “Principal Shareholders.”

50

TOPPAN CSR REPORT 2009

Environmental Report

Overview of Environmental Activities
Toppan’s Environmental Activities

52

Review of Fiscal 2008 Results and Future Targets
Environmental Targets and Results for
Fiscal 2008

54

Environmental Investment andConservation Benefit

57

Environmental Management
Environmental Management Structure

58

Environmental Management Activities

60

Environmental Communication Activities

62

Environmental Conservation Activities
Mitigating Global Warming and Saving Energy

64

Resource Circulation

65

Pollution Prevention and Chemical SubstanceManagement and Reduction

66

Approach to Logistics

67

Environmentally Friendly Products andEnvironment-related Business
Developing and Assessing
Environmentally Friendly Products

68

Environmentally Friendly Printing Services

70

Conserving Biodiversity
Conserving Biodiversity

71

Environmental Data
Environmental Data

72

Environmental Report

Overview of Environmental Activities

Toppan’s Environmental Activities
Toppan reinforces its Group-wide approach to preserve the global environment based on
The Toppan Group Declaration on the Global Environment, a new philosophy revised from
Toppan’s Declaration on the Global Environment.

The Toppan Group Declarationon the Global Environment

Overview of Environmental
Activities

Environmental Burden andEnvironmental Impact

With the growing awareness of environmental conservation throughout theworld in the 1990s, the scope ofenvironmental issues to be tackled bycompanies grew significantly. Toppan
reorganized its previous structure forenvironmental conservation by establishing the Ecology Center in 1991 andpromulgating Toppan’s Declaration on
the Global Environment, a basic philosophy for environmental conservation
activities, in 1992. The Company has
promoted environmental conservation
initiatives ever since.
In April 2009, Toppan took an important step to help realize a sustainable
world in which every form of life cancoexist into the future by revising
Toppan’s Declaration on the Global
Environment into The Toppan Group
Declaration on the Global Environment,a new basic philosophy for environmental activities for the entire Group. The
revised declaration reflects Toppan’s
more assertive approach to the preservation of the global environment.

Toppan’s environmental activities are
divided into four main areas, all centeredaround The Toppan Group Declarationon the Global Environment, Toppan’s
basic environmental philosophy.
First are the environmental management activities for systematically managing environmental initiatives such as
the construction of the environmental
management system (EMS). Second are
the Eco-protection Activities to reduce
the environmental burden associatedwith corporate activities as much as
possible. Third are the Eco-creativity
Activities to proactively promote thedevelopment, assessment, and sales ofenvironmentally friendly products andtechnical services. Fourth are the environmental communication activities forsharing awareness of environmental
conservation with stakeholders throughdialogue with local communities andeducational programs inside and outside the Group.

The first step in reducing environmental
burden is to ascertain the environmental
impact of the Company’s overall business activities. Toppan aggregates dataon the balance of materials at each production site based on INPUT (materials
and energy used)/OUTPUT (materials
discharged as a result of production)and then assesses the impacts of sites
from various environmental standpoints.
The Company establishes environmental targets based on the results of theseassessments to clarify the priorities andverify the results of its environmental
activities.
As a company engaged in diverse
business fields, Toppan imposes environmental impacts in various forms. To
evaluate the extent and variation of its
environmental burden rationally, theCompany aggregates and ascertains its
environmental data independently in its
three main business fields: Information& Networks, Living Environment, andElectronics (➞P. 53).

The Toppan Group Declaration on the Global Environment
As responsible members of international society,we who work within the Toppan Group
strive to realize a sustainable society
through forward looking corporate activities with consideration
for the conservation of the global environment.
Basic Principles
1. We observe all laws, regulations and in-company rules relating to theenvironment.
2. For the future of the Earth, we strive for the effective utilization of limited resources and the reduction of all types of environmental burden.
3. With foresight, we promote the development and widespread use of
products that show consideration for the environment, and contributeto the environmental activities of customers.
4. We engage in communication related to the environment with a wide
range of peoples both inside and outside the company, and strive formutual understanding.
5. We also take a proactive approach to environmental conservation incorporate activities in international society.
Established in April 1992
Revised in April 2009

52

TOPPAN CSR REPORT 2009

Boundaries of Environmental Performance Data andEnvironmental Accounting
IFirst, Toppan selected subsidiaries that share important roles in theenvironmental conservation activities of Toppan Printing Co., Ltd. andthe Toppan Group, from among the Group entities consolidated foraccounting purposes. Next, the Company decided which of thesubsidiaries selected were to be included within the boundary, basedon the autonomy and independency of their environmental activities.
Toppan Forms Co., Ltd., Toppan TDK Label Co., Ltd., Toppan
Logistics Co., Ltd., Tamapoly Co., Ltd., Tokyo Metropolitan
Government (T.M.G.) Prepress Toppan Co., Ltd., Tokyo Shoseki Co.,
Ltd., Tosho Printing Co., Ltd., Hino Offset Printing Co., Ltd., andoverseas subsidiaries are not included, in principle. The entities
covered differ, however, for the following types of data.
IP. 57 Capital Investment for Environmental Conservation, Environmental Conservation Benefit ➞ Entities covered: All domestic andoverseas subsidiaries with important roles in the environmental
conservation activities of the Toppan GroupIP. 67 Approach to Logistics ➞ Entity covered: Toppan Logistics Co., Ltd.
IP. 69 Entities covered: Toppan Printing Co., Ltd., Toppan Forms Co.,
Ltd., Toppan TDK Label Co., Ltd., Tamapoly Co., Ltd., Tokyo ShosekiCo., Ltd., Tosho Printing Co., Ltd., Toppan Cosmo, Inc., and froebelkan co., ltd.
IP. 72 Environmental INPUT/OUTPUT Data by Business Field ➞ Entities
covered (other than material data): All domestic and overseas Group
companies with important roles in the environmental conservation
activities of the Toppan GroupToppan’s Environmental Activities

Major Environmental Burdens in the Business Fields (INPUT/OUTPUT data)
INPUT
Material Input (➞P. 72)

Total Energy Consumption (➞P. 64)

Total Water Consumption (➞P. 72)

Total PRTR Handling (➞P. 66)

Information & Networks
1,254,972 (71%)

Information & Networks
4,889 (29%)

Information & Networks
1,294 (10%)

Information & Networks
1,826 (30%)

Living Environment
475,950 (27%)

Living Environment
4,977 (29%)

Living Environment
1,914 (14%)

Living Environment
2,384 (40%)

Electronics
25,785 (2%)

Electronics
6,569 (38%)

Electronics
9,710 (73%)

Electronics
1,821 (30%)

Non-production sites
0 (0%)

Non-production sites
747 (4%)

Non-production sites
347 (3%)

Non-production sites
4 (0%)

Total 1,756,707 (Unit: tons)

Total 17,182 (Unit: 1,000 GJ)

Information & Networks

Total 13,265 (Unit: 1,000 m3)

Living Environment

Total 6,035 (Unit: tons)

Electronics
Environmental Report

OUTPUT
Total Waste Generation (➞P. 65)

CO2 Emissions (➞P. 64)

Total Effluent Discharge (➞P. 72)

Total PRTR Release (➞P. 66)

Information & Networks
214,163 (28%)

Information & Networks
761 (6%)

Information & Networks
123 (30%)

Living Environment
103,398 (33%)

Living Environment
239,269 (32%)

Living Environment
1,354 (12%)

Living Environment
230 (56%)

Electronics
43,877 (14%)

Electronics
267,591 (36%)

Electronics
9,086 (79%)

Electronics
55 (14%)

Non-production sites
2,052 (1%)

Non-production sites
30,337 (4%)

Non-production sites
335 (3%)

Non-production sites
0 (0%)

Total 313,752 (Unit: tons)

Total 751,360 (Unit: t-CO2)

Total 11,536 (Unit: 1,000 m3)

Overview of Environmental Activities

Information & Networks
164,425 (52%)

Total 408 (Unit: tons)

IPapers used in Information & Networks and Living Environment account for 86% of material input and 73% of total waste generation, while water consumption and effluent discharge in Electronics account for 73% and 79%, respectively.
ITwo types of waste are covered in this report: industrial waste of no value, and materials of value sold or transferred as resources. Both types are generated
by or connected with business activities.
ITotal waste generation in Electronics exceeds material input due to the inclusion of waste liquid (waste acid and alkali).
ITotal energy consumption, i.e., the quantity of electricity and fuels consumed, is about the same in each business field.
Note: The calorific value of the primary energy input associated with electricity consumption is calculated uniformly as 0.00983 GJ/kWh. Some of the material
inputs are calculated from estimated values based on production values.

TOPPAN CSR REPORT 200953

Environmental Report

Review of Fiscal 2008 Results and Future Targets

Environmental Targets and Results for Fiscal 2008
Toppan establishes Medium- and Long-term Environmental Targets and various concrete targets forevery current fiscal year in order to promote environmental activities in which every employee
participates towards the realization of the goals of the Declaration on the Global Environment.

Setting Environmental
Targets
Toppan specifies environmental objectives for the realization of the goals of
the Declaration on the Global Environment, the basic philosophy governing
Toppan’s overall environmental activities
in every business field. The Medium- andLong-term Environmental Targets andconcrete targets for every current fiscal
year are set under the individual environmental objectives to clarify the activities to be taken and the criteria forassessing achievements. Based on theobjectives and targets, Toppan promotes environmental activities with participation from every employee.
The Company reviews its environmental activities once every fiscal year
(ending March 31). Based on the evaluation of achievements towards the environmental targets for the current fiscal
year, the Medium- and Long-term Environmental Targets are reviewed andthe targets for the following fiscal year
are set.

Evaluating Progress towards
the Environmental Targets
In fiscal 2008, Toppan undertook various activities to achieve the 16 environmental targets set for the year. Elevenof the targets were reached and fivewere not.
The Company has succeeded inachieving its annual targets for an
improved material recycling rate, an
expanded number of certified zero-emission sites, and reduced handling ofchemical substances designated under
the PRTR law.

Environmental Targets and Results for Fiscal 2008
Environmental Objectives

Medium- and Long-term Environmental Targets

1. Mitigation of global warming through the development of energysaving measures

Reduce CO2 emissions per unit of sales by 10% by fiscal 2010 (compared to thefiscal 2000 level)

2. Promotion of waste reduction and recycling

Reduce waste generation per unit of production value by 25% by fiscal 2010
(compared to the fiscal 2000 level)
Expand the material recycling of waste
Reduce final landfill waste disposal*1 by 95% by fiscal 2010 (compared to thefiscal 2000 level)
Efficiently use the industrial waste materials generated in the manufacturing stage
and have all domestic sites certified as zero-emission sites*2 by fiscal 2010

3. Prevention of atmospheric pollution via VOC emission restraints

Reduce VOC emissions into the atmosphere by 70%*3 by fiscal 2010 (comparedto the fiscal 2000 level)

4. Control of risks from chemicals

Reduce the handling of chemical substances designated under the PRTR law

5. Environmental contribution via the development and marketing of eco
products

Promote the sales of environmentally friendly products

Reinforce efforts to develop, manufacture, and assess environmentally friendly
products
6. Promotion of environmental communication—

7. Avoidance of environmental risk

Establish and observe appropriate in-house management guidelines that embrace
regulatory controls
Reduce the risk of soil contamination
Maintain adequate communication with stakeholders

8. Enhancement of environmental education and the environmental
awareness of all employees—

9. Upgrading of environmental management systems at our overseas
production sites—*1 Final landfill waste disposal: Direct landfill disposal + landfill disposal of residues from intermediate treatment*2 Zero-emission site: Operational site with a recycling rate of 98% or over (subject to approval by the Ecology Center)*3 Target in the industry: 41% reduction by fiscal 2010 (compared to the fiscal 2000 level)*4 The material recycling was redefined in fiscal 2008. Accordingly, the target rate has been changed from 85% to 92%.
*5 The target number is revised in accordance with the consolidation of operational sites through site reorganization.

54

TOPPAN CSR REPORT 2009

Environmental Targets and Results for Fiscal 2008

However, Toppan fell short of achieving its targeted reductions of CO2 emissions per unit of sales, waste generation
per unit of production value, final landfill
waste disposal, and VOC emissions into
the atmosphere. Among the obstacles
to target achievement, the most significant was Toppan’s decreased production volume in the second-half of the
fiscal year.

Reviewing Environmental
Targets
Toppan established environmental targets for fiscal 2009 based on evaluations of the progress towards theachievement of the targets set for
fiscal 2008 (➞P. 56). In fiscal 2009, theCompany is planning out environmental
activities towards the same number oftargets in fiscal 2008: 15 medium- andlong-term targets and 16 targets for thecurrent fiscal year.
The Company intends to continue tohelp mitigate global warming through thedevelopment of energy-saving measures, to further reduce its environmental burden through the promotion ofwaste reduction and recycling, and tocontrol risks from chemicals throughthe prevention of atmospheric pollution
via VOC emission restraints and the
reduced handling of chemical substances designated under the PRTR law.
Toppan will carefully consider setting
new targets beyond fiscal 2011 in tune
with the environmental trends in industry.

Environmental Targets for Fiscal 2008

Results and Status for Fiscal 2008

CO2 emissions per unit of sales: Reduce by 5% compared to
the fiscal 2007 level

CO2 emissions per unit of sales: Reduced by 0.9% compared to
the fiscal 2007 level

Evaluation For Details
B

Waste generation per unit of production value: Reduce by 5%compared to the fiscal 2007 level

Waste generation per unit of production value: Increased by 3.2%
compared to the fiscal 2007 level

B

Material recycling rate: 92%*4

Material recycling rate: 93%*4

Final landfill waste disposal: Reduce by 15% compared to thefiscal 2007 level

Final landfill waste disposal: Reduced by 14.2% compared to thefiscal 2007 level

B

Expand the number of certified zero-emission sites: To 40
sites (out of 58 domestic sites in total)

Expand the number of certified zero-emission sites: Increased to
43 sites (out of 58 domestic sites in total)A

VOC emissions into the atmosphere: Reduce by 10% compared to the fiscal 2007 level

VOC emissions into the atmosphere: Reduced by 6.7% comparedto the fiscal 2007 level

B

Handling of chemical substances designated under the PRTR
law: Reduce by 5% compared to the fiscal 2007 level

Handling of chemical substances designated under the PRTR law:
Reduced by 12.4% compared to the fiscal 2007 level

S•Review the criteria for environmentally friendly products•Maintain sales at the fiscal 2007 level•Reviewed to revise Toppan’s 14 Environmental Points and reset
the life cycle stages•Increased sales in environment-related business year over year

A

•Promote FSC certification•Apply LCI in conjunction with the Packaging Division•Examined the management system for production processes atthe Hokkaido Division to prepare for FSC certification at the site
•Carried out LC-CO2 assessment on the Cartocan

B

Provide information through exhibitions, lectures, and otherpresentations

Exhibited at Eco-Products 2008 (held on December 11–13, 2008)

Observe in-house management guidelines at all operationalsites and review them as necessary

Assessed the observance of in-house management guidelines at
58 domestic sites through internal environmental audits

Monitor the operational sites, including the vacant lots ofreconditioned sites

Monitored the sites on an ongoing basis

Expand the number of operational sites that issue Site Eco
Reports: To 33 domestic sites (25 reports in total)*5

Expand the number of operational sites that issue Site Eco
Reports: Increased to 33 domestic sites (25 reports in total)

A•Conduct new employee education•Review environmental education materials•Conducted environmental education via Company-wide training•Reviewed and revised the content of e-learning-based programs

A

Conduct internal environmental audits at overseas production
sites: Eastern Asia

•Conducted audits at eight sites in Eastern Asia in February, July,
November, and December

A

Collect monthly records on conformance with local regulatory
standards and environment-related data

Periodically reported data on environment-related issues via
monthly overseas site reports

A

P. 64
P. 65

A

Environmental Report

P. 66

P. 68

A
A

Review of Fiscal 2008 Results and Future Targets

A

PP. 62–63
P. 60
P. 61
P. 63
P. 61
P. 62

Evaluation criteria: S, Results achieved far surpass targets; A, Targets achieved; B, Activities fully carried out, but targets unachieved;
C, Activities insufficient

TOPPAN CSR REPORT 200955

Environmental Report

Review of Fiscal 2008 Results and Future Targets

Environmental Targets for Fiscal 2009
Environmental Objectives and Mediumand Long-term Environmental Targets

Environmental Targets for
Fiscal 2009

Details on Specific Measures

1. Mitigation of global warming through the development of energy-saving measures
Reduce CO2 emissions per unit of sales by CO2 emissions per unit of sales:•Promote energy-saving measures through the reinforced activities of
10% by fiscal 2010 (compared to the fiscal Reduce by 5% compared to the fiscal
the Energy Subcommittees (energy-saving reviews, etc.)
2000 level)
2008 level•Apply measures across the Company via shared information onenergy saving (meetings of personnel in charge of energy saving, etc.)•Implement energy-loss control measures for older equipment (loadmeasurements, etc.)•Promote large-scale energy-saving measures (fuel switchover,reduced loads for air-conditioning control in clean rooms)
2. Promotion of waste reduction and recycling•Reduce waste generation per unit ofWaste generation per unit of•Reduce material input and improve yield rates
production value by 25% by fiscal 2010
production value: Reduce by 5%(compared to the fiscal 2000 level)compared to the fiscal 2008 level
Expand the material recycling of waste
Material recycling rate: 94%•Share information within the Toppan Group to seek external recycling
partners•Monitor recycling processes through onsite inspections for contractors
1
Reduce final landfill waste disposal* by
Final landfill waste disposal: Reduce•Examine recycling processing technologies and processing contractors
95% by fiscal 2010 (compared to the fiscal by 15% compared to the fiscal 2008
2000 level)
level
Efficiently use the industrial waste materials Expand the number of certified zero•Encourage the operational sites to separate wastes for conditioning
generated in the manufacturing stage and emission sites: To 45 sites (out of 56
as valuable resources and provide the sites with waste management
have all domestic sites certified as zerodomestic sites in total)
guidanceemission sites*2 by fiscal 2010
3. Prevention of atmospheric pollution via VOC emission restraints
Reduce VOC emissions into the
VOC emissions into the atmosphere:•Introduce equipment for recovering solvents (installation, verification,
atmosphere by 70%*3 by fiscal 2010
Reduce by 10% compared to thetest-base operation)
fiscal 2008 level•Take measures to cope with the expiration of the grace period(compared to the fiscal 2000 level)
stipulated under the Air Pollution Control Law of Japan (equipment
installation at seven plants subject to the expiration of the grace period)
4. Control of risks from chemicals
Reduce the handling of chemical
Handling of chemical substances•Reduce the handling of materials containing designated chemical substances
substances designated under the PRTR
designated under the PRTR law:and shift to alternative materials with low content of the same substances
law
Reduce by 5% compared to the fiscal •Comply with the revisions of the Law Concerning the Examination and2008 level
Regulation of Manufacture of Chemical Substances Control and the
Law Concerning Reporting, etc. of Releases to the Environment ofSpecific Chemicals and Promoting Improvements in their
Management of Japan (compliance with the revised MSDS)
5. Environmental contribution via the development and marketing of eco products
Promote the sales of environmentally•Review the criteria for•Examine, issue, and implement the revised criteria
friendly products
environmentally friendly products•Design a method via a development project (result checks, judgment•Examine designs for an LCIA method for next steps)
Reinforce efforts to develop, manufacture, •Establish an in-house structure to•Organize structure in each division, launch the “carbon footprint”
and assess environmentally friendly
calculate and label Toppan’s “carbon system, and support actual operations for the divisions
products
footprint”•Examine and establish in-house guidelines in response to the•Comply with the guidelines
governmental guidelines issued
developed under the Convention on
Biological Diversity
6. Promotion of environmental
Provide information through exhibitions, •Exhibit at Eco-Products 2009 and take part in environmental forums,
communicationlectures, and other presentationsetc.
7. Avoidance of environmental risk
Establish and observe appropriate inObserve in-house management•Conduct internal environmental audits at 58 domestic sites to confirm
house management guidelines thatguidelines at all operational sites andthe validity and observance of the reference values established underembrace regulatory controls
review them as necessary
the in-house management guidelines
Reduce the risk of soil contamination
Monitor the operational sites, including •Regularly monitor groundwater and VOCs and report the results tothe vacant lots of reconditioned sites
governmental organizations
Maintain adequate communication with
Publish a CSR Report in July (in Japanese); •Issue a CSR Report and Site Eco Reports
stakeholders
expand the number of operationalsites that issue Site Eco Reports: To
36 domestic sites (27 reports in total)
8. Enhancement of environmental•Conduct new employee education•Conduct environmental education via Company-wide training
education and the environmental•Conduct environmental education via •Conduct environmental education after revising the content of theawareness of all employees
e-learninge-learning-based programs
9. Upgrading of environmental
Conduct internal environmental audits •Conduct audits at two sites in Southeast Asia and two sites the U.S.A.
management systems at ourat overseas production sites:
overseas production sites
Southeast Asia and the U.S.A.
Collect monthly records on confor•Periodically report data on environment-related issues via monthly
mance with local regulatory standards
overseas site reports
and environment-related data
*1 Final landfill waste disposal: Direct landfill disposal + landfill disposal of residues from intermediate treatment*2 Zero-emission site: Operational site with a recycling rate of 98% or over (subject to approval by the Ecology Center)*3 Target in the industry: 41% reduction by fiscal 2010 (compared to the fiscal 2000 level)

56

TOPPAN CSR REPORT 2009

Environmental Investment and Conservation Benefit
Toppan promotes more effective environmental conservation activities by fully monitoring its capital investment forenvironmental conservation and the environmental conservation benefits obtained.

Capital Investment forEnvironmental Conservation

efficiency in waste paper treatment at
production sites in the Living Environment field, and the replacement of compressors for saving energy at production
sites in the Information & Networks field.
Other capital investments have been
expended to fund energy-saving improvements by installing inverters onto air
conditioning machines, adopting highly
efficient chillers and LED lights, andswitching over to brighter lights without
increasing energy consumption. Toppan
has also invested resources to create
green spaces for beautification.
Capital investment for environmental
conservation includes investments inequipment improvement work for noise
reduction and deodorization in responseto administrative guidance and complaints and inquiries from neighboring
residents.

1. Investment inequipment toprevent
pollution

Investment inequipment to prevent
atmospheric and otherforms of pollution

2. Investment inequipment toconserve theglobalenvironment

Investment in equipment to conserve theglobal environment
such as by mitigating
global warming

3. Investment inequipment tocirculateresources

Investment in equipment for the adequate
treatment and recycling of waste materials

4. Investment inequipment for
management
activities

Investment in equipment to monitor andmeasure environmental
burdens and plant trees
at operational sites

Total

Fiscal
2008

840

326

Increase/
Decrease
fromFiscal
2007
33

137

Total
Sum forthe Last
Five
Years

Environmental Conservation Benefit
Major Contents

Increase/
Decrease

Fiscal2008

EnergyTotal energy consumption (1,000 GJ)

2,194

26,020Water

Water consumption (1,000 m3)–295

17,609

Atmosphere

CO2 emission (1,000 t-CO2)

123

1,228

Emission of ozone-depleting
substances (ODP-t)

0.3

1.0

NOx emission (tons)

–10

221

SOx emission (tons)

–19

37

Emission of dioxins (mg-TEQ)

–106

9

Total effluent discharge (1,000 m3)–31

15,371Item

10,9581,414
Water andsoil
environments

164–1,997

5,316
Waste

24

15

166

1,354

–1,812

17,854

Underground penetration (1,000 m3)

1755

Onsite evaporation (1,000 m3)

–45

1,989

BOD (tons)–756

COD (tons)–1

25

Total generation (1,000 tons)

7

448

Review of Fiscal 2008 Results and Future Targets

Major Contents

Waste treatment equipment (Miyagi Plant, Toppan
Containers Co., Ltd.)

Compressor (Toppan Graphic Co., Ltd.)

Capital Investment for Environmental Conservation (Million yen)
Item

Effluent gas treatment equipment (Fukuoka Plant)

Environmental Report

Toppan has been keeping an environmental account since fiscal 1998 as atool to calculate the cost effectivenessof its investment in environmental conservation. Since fiscal 2005, the Company has focused solely on capital
investment for environmental conservation and the environmental conservation
benefits obtained. This is expected to
improve the accuracy of assessments
and verifications of cost effectiveness by
excluding reliance on estimates insofar
as possible.
Toppan invested 1,354 million yen in
environmental conservation in fiscal
2008, 57% less than it invested the year
before. This reduction is the result ofconsiderable investments in fiscal 2007
to install equipment to recycle waste,take measures to conserve water usedin wastewater treatment equipment, andundertake improvement work to mitigate
odor from printing machines.
The major capital investments for fiscal 2008 have been used to pay for the
installation of effluent gas treatment
equipment for organic solvent gases andwaste treatment equipment for improved

Notes: Period covered: Last fiscal year for each company or subsidiary
See P. 66 for details on the conservation benefit gained from thereduction in PRTR release.

TOPPAN CSR REPORT 200957

Environmental Management

Environmental Report

Environmental Management Structure
Toppan has established an environmental management system based on its PDCA cycle
in order to promote two types of activities: Eco-protection Activities to reduce
the environmental burden associated with corporate activities, and Eco-creativity Activities
to develop, assess, and market environmentally friendly products and technical services.

Environmental Management

Features of Toppan’s Environmental
Management System
Toppan’s EMS is uniquely managed. The
PDCA cycle is put into practice at every
operational site, irrespective of the ISO
14001 certification. Fifty-six domestic
production sites and two research facilities have been pressing ahead with theirenvironmental activities to achieve thetargets set under the Eco-protection
Activity Plan.
Every month, the Eco-protection Promotion Committees check the progressof the activities to ensure that any newly
arising problems are resolved as quickly
as possible. Every operational site sends
the Ecology Center reports on major
environmental performance data, suchas results on energy and waste, either
monthly or every half-year. Toppan prepares an effective system for evaluating
progress towards its environmental targets and reviewing the targets whenever necessary.

Toppan’s environmental management
relies on the operation of an establishedenvironmental management system(EMS) based on the Company’s environmental management rules. The PDCA
cycle is a core part of the EMS and vitalfor the continuous improvement of theefficiency of the system. To ensure theeffectiveness of the PDCA cycle, top
management conducts ongoing environmental management reviews. The
environmental performance data are regularly collected by the Ecology Center,and the Director in charge of the Center
verifies and evaluates the data andreports evaluation results to the Boardof Directors and other management
bodies. Improvements to the EMS are
proposed and implemented throughout
the entire Company.

ISO 14001 Certification
Eighty-four sites (65 systems) in the
Toppan Group were ISO 14001 certified
as of the end of March 2009. Four systems acquired the certification in fiscal
2008: Fukuoka Plant Manufacturing
Department 1, Toppan Techno Co., Ltd.,SNP Leefung Printers Ltd., and SNP
Leefung Packaging & Printing Co., Ltd.
Two domestic sites are establishingsystems to prepare for the certification.
Toppan is working towards the certification of the remaining five major sites by
fiscal 2012.

Promotion Structure forEnvironmental Activities
The Board of Directors is positioned as
the highest decision-making body in
Toppan’s promotion structure for environmental activities. The Ecology Centersupervises environmental activities
undertaken at the divisions and Group
companies under its Director, the officer
responsible for the Company’s environment-related matters. Every division andOverview of Environmental Management
The Toppan
Group Declarationon the Global
Environment
Legal requirements
Environmental aspects
Environmental impact

Mediumand Long-term
Environmental
Targets
Environmental burden
assessment on R&D
Green procurement

Eco-protection Activities
Production sites and research facilities
Environmental
policyEnvironmental
objectives
Environmental
targets

Ecoprotection
Activity Plan

Environmental
activities

Eco-protection
Promotion
Committee
Progress review
Achievement
evaluation, review

Review

Eco-creativity Activities
Sales/SP and R&D departments
Development
targets

R&D for environmentallyfriendly products

Research
topics

Review

System for the Developmentof Environmentally
Friendly Products
Progress review
Achievement
evaluation, review

Environmental
targets forthe current
fiscal year

58

Ecoprotection
Achievement
ReportGroup-wide
meetingNational
Eco-protection
Meeting
Report andshare results onenvironmental
activities

Targeted sales

TOPPAN CSR REPORT 2009

Sales activities forenvironment-related
business

Eco-creativity
Promotion System
Sales management

Group-wide
meeting

Total

National
Eco-creativity
Meeting
Report andshare results onenvironmental
activities

Environmental
management
review by top
management(as required)

Review of
Medium- andLong-term
Environmental
Targets

Review ofenvironmental
targets forthe current
fiscal year

Environmental Management StructureGroup company has its own Environmental Management Officers in relevant
departments. These officers head theenvironmental activities carried out attheir departments in collaboration with
the Eco-protection Promotion Committees, the bodies responsible for theactual implementation of the activities.
Toppan has established two in-housesystems to promote the Eco-protection
and Eco-creativity Activities: the Ecoprotection Promotion System and the
Eco-creativity Promotion System. Under
these systems, the Company advancesvarious environmental measures withguidance from the Ecology Center.
Operational sites convene their own
Eco-protection Promotion Committees,

and subcommittees set up under thecommittees plan out activities to address
specific environmental issues. The Energy
Subcommittees in these sites have continued to pursue energy-saving activities.
With regard to Toppan’s Eco-creativity Activities, all of the divisions have theirown Eco-creativity Officers to develop
environmentally friendly products andenvironmental support businesses.
Reinforcing the Integrated Strengthof the GroupAs a Group-wide environmental management initiative, Toppan organizes asemi-annual Toppan Group Environmental Meeting under the auspices ofthe Meetings with the Heads of Related

Companies. Based on shared information on environmental issues and theprogress towards the environmental targets of each company, Toppan reinforces its environmental risk management
and spreads measures supported by
the integrated strength of the Groupthroughout the workplaces in the Group
companies.
The Company intends to further
improve the level of environmental management through internal environmental
audits in the years to come.

Environmental Management Structure
Board of Directors
Director in charge of the Ecology Center

Environmental ISO
Supervisory Meeting
Eco-protection
Promotion Committee

Toppan divisions

Presidents

Division heads

Environmental
Management Officers

Environmental
Management Officers

Eco-protection
Promotion Committees

Eco-protection
Promotion Committees

IFrequency: Semi-annual
IMajor objectives: Reporting and discussion
on the achievements of Toppan’senvironmental activities
IFrequency: Annual
IFunction: Strategy planning meeting for
ISO 14001 operations
IFrequency: Monthly, in principle
IFunction: Operational management of theenvironmental management system

Energy Subcommittee

IFrequency: Monthly, in principle
IFunction: Streamlining of energy use

Other subcommittees

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

National Eco-creativity Meeting

Eco-creativity Promotion System

System for the Development ofEnvironmentally Friendly
Products in each division

Environmental Management

National Eco-protection
Meeting

Group companies

Environmental Report

Ecology Center

IFrequency: Semi-annual
IMajor objectives: Reporting anddiscussion on the achievements ofToppan’s environmental activities
IFunction: Promotion of Eco-creativity
Activities in the divisions
IFunction: Planning, development,
evaluation, registration, and qualificationof environmentally friendly products

TOPPAN CSR REPORT 200959

Environmental Report

Environmental Management

Environmental Management Activities
Toppan fully implements the PDCA cycle through internal environmental audits and environmental
management systems established at its operational sites. The Company also works towards total
environmental compliance, that is, the upholding of all environmental laws and regulations.

Internal Environmental Audit
SystemToppan’s internal environmental audit
system follows a two-stage screening
process: a document audit and an
onsite audit. The internal environmental
audit team consists of assistant auditors to oversee the environmental management system (EMS), in addition to
the internally certified environmental
auditors. The team begins by inspecting
and evaluating the status of the EMSs
and compliance with environmentrelated laws, regulations, and in-housestandards at all of the operational sites
audited. To correct the deficiencies
associated with the “issues in need of
improvement” pointed out during theaudits, the team requires each site tosubmit a Plan for the Improvement ofSpecified Issues (Improvement Plan).
Later, the team conducts a Review of
the Internal Environmental Audit toassess the progress towards the required
improvements.
Results of the Fiscal 2008 Audit
The internal environmental audit team

identified 594 issues in need of improvement at 58 domestic sites in fiscal
2008. To correct the deficiencies pointed
out, each operational site follows an
Improvement Plan with a detailed list ofrequired improvements and deadlines
for completion. Toppan has confirmed
the progress of improvement measureson 72 issues at nine operational sites
through internal environmental audit
reviews. The progress and results of theremaining 522 specified issues are to bereviewed during the internal environmental audits for fiscal 2009.
Onsite hearings and inspections arecarried out every other year, in principle,
at overseas production sites. Eight sites
in Eastern Asia were inspected for local
environmental audits in fiscal 2008. The
inspections identified 103 issues in needof improvement. The priorities in theinspections were the implementationand operation of the EMSs and compliance with local environment-relatedlaws, regulations, and ordinances. Other
points included the environmental
impacts on water and the atmosphere,
and the regular control of energy andwaste. The overseas sites have followed
the example of the domestic sites bytaking necessary procedures to achieve
better operational conditions under the
Improvement Plan.

Approach to Environmental
ComplianceToppan’s production sites endeavor toprevent environmental pollution by complying with established standards for inhouse control, standards that generally
tend to be stricter than the national andlocal regulatory standards. Through thisapproach, the production sites seek toeliminate all failures in complying withthe environmental laws, regulations,ordinances, and agreements set by thenational and local governments where
the sites operate.
The compliance status at every
domestic site is reported to the head
office via the Eco-protection Achievement Reports every April. Overseas
sites, meanwhile, submit monthly overseas site reports. The reports from both
domestic and overseas sites are to beassessed by internal environmental audits.

Internal Environmental Audit System
A summary of activities conducted throughout the year to ensure
Environmental Audit Reports* compliance with about 200 items for internal environmental audits
specified by the head office
Document audit

A pre-check of the Internal Environmental Audit Reports conductedprior to the implementation of an onsite audit to clarify environmental
aspects at each operational site

Onsite audit

1) Hearings with managers and personnel in charge of environmental
matters at an operational site, based on the Manual on Hearings
for the Internal Environmental Audit
2) Verification of the status of environmental management via an
inspection within and around an operational site, based on the
Check Sheet for Inspections for the Internal Environmental Audit

Internal Environmental
Audit Reports

Summary of issues in need of improvement and general comments
for each operational site. Returned to the senior management for
feedback at each site

Plan for the Improvement ofSpecified Issues(Improvement Plan)

Description of a specific improvement plan to address issues
identified by the internal auditors as points in need of improvement.
Submitted to the head office upon confirmation by the chief of the
Eco-protection Promotion Committee at the operational site

Review of the Internal
Environmental Audit

A review conducted to assess progress and give appropriate
guidance on issues identified by the internal auditors as points inneed of improvement

Internal Environmental
Audit Result Report

A report delivered to the Senior Corporate Auditor and the Director in
charge of the Ecology Center*The operational sites that have already acquired the ISO 14001 certification report their activities in the
management review document.

60

TOPPAN CSR REPORT 2009

Internal environmental audit hearing

Internal environmental audit inspection

Environmental Management Activities

monitor groundwater. The case involving soil and groundwater pollution withhexavalent chromium at the Itabashi
Plant in Itabashi Ward, Tokyo wasarbitrated by the Pollution Examination
Commissioner of Tokyo Metropolitan
Government in April 2009.
Emergency Responses
At every production site, chemical solvents are conveyed to the sites in tanktrunks and transferred to storage tanks
on the premises on a daily basis.
Leakage accidents during the operations pose the risk of soil and waterpollution.
Toppan has therefore prepared oil
absorbents, sandbags, and other necessary safeguards to prevent the outflow ofsolvents in the event of an emergency or
accident during production operations.
Emergency-preparedness drills havealso been held regularly. The Company
formulates procedures to prevent andmitigate environmental pollution during
emergencies. The effectiveness of theprocedures is verified and defective
points are corrected during the drills.

Environmental Education
Toppan provides environmental education through comprehensive e-learningbased programs for all employees. It
also organizes specialized training sessions for employees of every rank,
including new employees and newly
appointed managers.
Optional training courses at the
Toppan Business School include seminars on ISO 14001 and sessions tofoster internal environmental auditorsand enhance their skills. Personnel fromthe Ecology Center lecture trainees inseminars and sessions held regularly
throughout the year.
Toppan uses this education as anopportunity to raise the environmental
awareness of employees and maintainand improve the level of the Company’senvironmental activities on a continuous
basis (➞P. 74).

Environmental ReportCompliance in Fiscal 2008
Two production sites in Japan recordedlevels of odor exceeding the regulatory
standards set under the Offensive Odor
Control Law. Five production sites,
meanwhile, recorded levels of BOD,
COD, and normal hexane exceeding theregulatory standards set for water contaminants under the Water Pollution
Control Law and Sewerage Law. The
Company immediately took corrective
measures for every case, including steps
to revise the control methods for equipment. It strives to reliably prevent recurrence by reviewing control procedures
as well.
Toppan also received complaints offoul odor, a problem caused by insufficient control of effluent gas treatment
equipment at several sites. The problem
was resolved by immediate corrective
measures at each site, and full reportson the incidents were presented to therelevant authorities.
Regarding the pollution of soil andgroundwater environments, the Company has taken soil remediation measures (shown below) and continues toPurification of Soil and Underground Water Pollution Monitored by Voluntary
Investigation
Operational Site

Location

DetailProgress in Fiscal 2008

Nishi Ward,
Nagoya City,
Aichi

Soil pollution by hexavalentchromium(Detected by a voluntary
investigation during disposal into
underground pits)

Remediation work iscompleted; groundwater isbeing continuously
monitored

Shiga Plant

Higashi-omi
City, Shiga

Soil pollution by hexavalentchromium(Detected by a voluntary investigation of areas where substances ofconcern were formerly used)

Remediation work iscompleted; groundwater isbeing continuously
monitored

Groundwater pollution by VOCs
(Detected by a voluntary
investigation of well water on theplant premises)

Groundwater is being
continuously monitored

Asaka Plant

Niiza City,
Saitama

ToppanElectronics, Inc.
(TEI) Miramar
Plant

Soil pollution by heavy metals
San Diego(lead, etc.) and VOCsCounty,California, USA

Remediation work iscompleted; VOC
concentrations are now
being monitored

Itabashi Plant

Itabashi Ward,
Tokyo

Deliberated for arbitration by
the Pollution Examination
Commissioner of Tokyo
Metropolitan Government(arbitrated in April 2009)

Groundwater pollution by hexavalentchromium(Detected by a voluntary
investigation of well water on theplant premises)

Environmental Management

Nagoya Plant

Internal environmental auditor training by Toppan
personnel

Emergency-preparedness drill to cope with asolvent leakage

TOPPAN CSR REPORT 200961

Environmental Report

Environmental Management

Environmental Communication Activities
Toppan strives to share environmental conservation awareness with stakeholders throughactivities to harmonize with local communities and enhance knowledge on environmental
issues inside and outside the Group.

Major In-house
Communication Activities
Environmental Meeting
Toppan has held a National Eco-protection Meeting in Japan to report and discuss environmental activities twice ayear since 1992. Meeting participants
report environmental performance data
across the Company and by businessfield, while describing the actual measures taken at the operational sites topromote similar actions throughout theCompany. Every operational site convenes an Eco-protection Promotion
Committee every month, in principle, in
accordance with its environmental management system to share the information on daily activities to reduce
environmental burden at the site. Theseare part of a multiple-layer meeting
regime throughout Toppan to maximize
the sharing and dissemination of environmental awareness and information on
environmental issues and solutions.
Environment Month
The Ministry of the Environment of Japan
advocates “Environment Month” in Juneto promulgate environmental actions inJapan. Toppan undertakes a number ofactivities each June as an opportunity
to deepen employee awareness of theenvironment, create comfortable andenvironmentally friendly workplaces, andmaintain and enhance positive relationships with local communities.
An environmental slogan coined by a
Toppan employee is posted at each
operational site in Environment Monthto improve environmental awarenessamong employees. In fiscal 2008, Toppan
joined in the GPN 5 Million Mass-action
Project, a campaign by the Green Purchasing Network (GPN) of Japan to promote mass action for green purchasing.
Energy-Saving Month
To bolster energy-saving endeavors,
Toppan continues to take part in activities for Energy-Saving Month, an event
advocated by the Ministry of Economy,
Trade and Industry of Japan, in summer
and winter. The Company also joins inJapan’s national initiative Team Minus
6%* and encourages its employees towear light clothing in the summer (known
in Japan as “Cool Biz”) and heavy clothing in the winter (“Warm Biz”).
*The name “Team Minus 6%” refers to Japan’s
greenhouse-gas-emission reduction target of
6% under the Kyoto Protocol.

Environmental Slogan

National Eco-protection Meeting held in Japan

Eco-protection Promotion Committee

62

TOPPAN CSR REPORT 2009

Every June, in Environment Month, Toppan
solicits environmental slogans from employees, selects the most outstanding of all theentries submitted, and posts it at every operational site. From among the 6,600 entries
submitted in fiscal 2008, the Company
selected one as the most outstanding, two
as outstanding, and five as notable.
The Toppan Group’s environmental slogan
for fiscal 2008 was “Eco-activities Start Simply:
The Small Step from Thinking to Action.”

President’s Ecology Awards
Toppan has incorporated Ecology Awards
in its biannual lineup of President’sAwards to encourage the environmental efforts of employees by commending excellent environmental activities.
Employees who have achieved or contributed in the following ways are nominated as candidates to receive theaward: those who significantly contributeto in-house environmental conservation
activities; those who serve as rolemodels through their successes inpromoting ingenious innovations for
improvement; those who contribute
substantially to the development of environmentally friendly technologies or
products that win patents or utility modelrights. A project team received an
Ecology Award in fiscal 2008 for its
work in developing and commencing
the manufacture of paper composite
containers.
The paper composite container, acombination of a paper cup and plastic
rim, can be used as a paper-based alternate to a plastic container. The teamdeveloped the paper composite container by successfully applying the same
proprietary technique Toppan uses for
Chewing Gum Container Made
Mostly from Paper in Combination
with a Plastic Rim
A container developed based on the same
proprietary technique used to manufacture
Toppan’s Cartocan paper-based beveragecontainer. The raw material for the paper
component is lumber chip harvested fromforest thinning, a process crucial for soundforest management and forests withimproved CO2 absorption efficiency. This isan environmentally friendly container designed
to help mitigate global warming.

Environmental Communication Activities

the formulation of Cartocan. Team members from the sales, production, anddevelopment departments were also
highly rated for their coordinated efforts
to swiftly launch the manufacture of thisnew product.

Disclosing Environmental
Information

Issuing Site Eco Reports
Toppan’s ISO 14001-certified sites havebeen issuing Site Eco Reports on theirenvironmental activities since fiscal
2000. As periodic communications
directed towards local municipalities andresidents in surrounding communities,
25 reports were issued at 33 domestic
sites in fiscal 2008.
When issuing reports, operationalsites fully consider the understandability
and readability based on Toppan’s inhouse Guidelines for Creating Environmental Reports for Operational Sites.

Major Environmental Events in Japan in
Fiscal 2008
2008
June

2008 Integrated Exhibition of
the Environment in celebration of the Hokkaido Toyako
SummitAugust
Surprise! 100 Eco Ideas
September Environmental communication
seminar at PLAZA21
OctoberTOKYO PACK 2008
December Eco-Products 2008
2009
March

Toppan displayed Cartocans and other environmentally friendly products and services atthe 2008 Integrated Exhibition of the Environment to celebrate the Hokkaido Toyako
Summit held in Japan in June 2008. The
Company also supported the Hokkaido
Toyako Summit Preparation Council by providing a special series of 10,000 Cartocans
designed exclusively for the Summit. Cartocan
is a paper-based beverage container designed
to help foster sound forests.

Eco Workshops opened at
PLAZA21 in a tie-up with the
P&P Gallery

Eco-Products 2008
Toppan exhibited total environmental solutions from the Toppan Group in cooperation
with six Group companies (Tokyo ShosekiCo., Ltd., Tosho Printing Co., Ltd., Toppan
Forms Co., Ltd., Toppan Cosmo, Inc.,
Toppan TDK Label Co., Ltd., and froebelkan co., ltd.) at the Eco-Products 2008 heldin Japan in December 2008. Toppan’s catchphrase for the event was: “Connecting, delivering, spreading, and communicating.”

Environmental Management

2008 Integrated Exhibition of theEnvironment in celebration of the
Hokkaido Toyako Summit

Site tour

Organizing and Participating in
Seminars and Environment-related
Exhibitions
Toppan wants the public outside theCompany to understand its environmental efforts. The Company dispatches lecturers to seminars held by variousorganizations, participates in environment-related exhibitions, and organizes
environment-related programs of its
own. Toppan’s environmentally friendly
products are on permanent display at
PLAZA21 in the Toppan Koishikawa
Building in Tokyo, a communication
venue set up to present case examplesof the integrated strength of the Group.

Environmental Report

Communicating with Local
Communities
The communities around Toppan’s plants
filed 29 complaints and inquiries (five ofthem new) at 14 domestic sites in fiscal
2008, indicating that many stakeholders
were inconvenienced. The complaints
dealt mainly with noise and odors. Whilemost of the problems were promptly
solved, the Company has been implementing intensive measures for the
remediation of odor-related problems at
two operational sites.
To mitigate noise, Toppan has takensound-insulating measures such as theinstallation of soundproof walls. To mitigate odors, the Company has revised
methods for the operation and control of
effluent gas treatment equipment anddeodorizing equipment in order to properly manage routine operations. Throughroutine inspections, the Company has
stepped up its measures to prevent therecurrence of odor- and noise-related
problems.
Toppan will continue to engage inenvironmental management throughmore detailed and comprehensive communications with residents in surrounding communities.

Site Eco Reports (in Japanese)

TOPPAN CSR REPORT 200963

Environmental Conservation Activities

Environmental Report

Mitigating Global Warming and Saving Energy
Toppan is pushing ahead with efforts to mitigate global warming,
one of the most pressing environmental issues facing the planet, mainly throughenergy-saving measures to reduce carbon dioxide emissions.

Energy-saving Activities
Toppan engages in energy-saving activities to reduce the emissions of carbon
dioxide (CO2) and other greenhousegasses. To work towards the Kyoto
Protocol targets for reduced greenhousegas emissions, Toppan has establisheda Medium- and Long-term Environmental Target: to reduce CO2 emissions
per unit of sales by 10% by fiscal 2010,
compared to the fiscal 2000 level. The
Company also sets a yearly target toaccomplish the medium- and long-termtarget. To meet the Company’s target
for the year, every production site sets
individual targets for emissions per unitof production value and emissions perunit of production volume by producttype.
CO2 emissions per unit of sales in fiscal 2008 were reduced by only 0.9%
compared to fiscal 2007, failing short of
the targeted reduction of 5%. Thoughextensive energy-saving measures weretaken, a substantial decrease in orders
received in the second-half of the fiscal
year prevented Toppan from reaching
the targeted reduction. Compared to thefiscal 2000 level, CO2 emissions per unitof sales in fiscal 2008 resulted in a 6.3%
increase. Toppan will take more intensive energy-saving initiatives, mainly
through operational enhancements ofequipment and devices.
Details of the Company’s Efforts
Towards reduced energy consumption,
Toppan made a focused effort to prevent leaks of compressed air from production equipment in fiscal 2008. Leak
countermeasures were strengthened via
two approaches: conducting energysaving reviews to check actual conditions and clarify points to be improved,and duplicating effective measuresalready deployed at certain sites forapplication elsewhere in the Company.
Toppan developed other energy-saving
initiatives through seminars held withoutside experts, air leak checks with
detectors, and ongoing fuel-switchoverpromotion.
The Company has also been gradually adopting LED lighting for indoor use
and installing solar panels as a greenenergy solution for outdoor lighting. In
summer months, operational sites acrossJapan install “green curtains” over build-

21,000

16.46

17.04

16.40

15
16,35017,796

18,34814,023

17,182

2004

2005

2006

2007

(t-CO2/million yen)
1.00

CO2 emissions
CO2 emissions per unit of sales

0.74

0.73

706

730

0
2008
(Fiscal year)

0.75

0.72

0.71

0.80

0.67
900

5

2000

1,200

10

7,000

0

(1,000 t-CO2)
1,500

16.30

14.47
15,76414,000(GJ/million yen)
20

Energy consumption
Energy consumption per unit of sales
16.54

A “green curtain” composed of bitter melons

CO2 Emissions

Energy Consumption(1,000 GJ)
28,000ings, a natural source of shade to help
limit the rises in indoor temperatures.
In recognition of these unflagging
energy-saving efforts, two Toppan sites
were conferred awards from governmental organizations in fiscal 2008 (➞P. 13).

650

785

805

0.60
751

600

0.40

300

0.20

0

2000

2004

2005

2006

2007

2008
(Fiscal year)

0

Note: CO2 emissions are calculated by the method specified in the Guidelines for Calculating Greenhouse Gas Emissions from Businesses (2003) from the
Ministry of the Environment (MOE) of Japan. When calculated by another MOE method specified in the Manual on Calculating and Reporting Greenhouse
Gas Emissions (2007), CO2 emissions in fiscal 2008 amounted to 819,391 t-CO2. The calorific value of the primary energy input associated with electricity consumption is calculated uniformly as 0.00983 GJ/kWh. The Company does not use the fiscal 1990 CO2 emissions as the base year value, as
problems with the measurement accuracy and expansions and revisions in the boundary of data would make a retroactive calculation highly contingent
on elaborate estimates. The energy type ratio and other detailed data are shown on P. 75.

64

TOPPAN CSR REPORT 2009

Resource Circulation
Toppan controls waste generation and recycles waste materials in aiming toachieve zero emissions at all domestic sites.

Waste Reduction Activity

attributable to the substantial decline inorders received in the second-half of the
fiscal year. As of the end of fiscal 2008,
the medium- and long-term reduction
stood at 18.2%, compared to the fiscal
2000 level. The reduction targeted byfiscal 2010 is 25%, so efforts to accomplish the medium- and long-term targets
will clearly have to be reinforced.
The Company will accelerate its
efforts for the control of waste generation and the recycling of waste in theyears to come.

Waste paper derived primarily fromoperational sites in the Information &Networks and Living Environment fields
comprises 73% of the total waste generated at the Toppan sites. Waste plastics from plants in the Living Environment
field and waste acids such as waste
etchant from plants in the Electronics
field also make up substantial portionsof the total waste generated.
Toppan has established a mediumand long-term target of reducing final
landfill waste disposal by 95% by fiscal
2010, compared to the fiscal 2000 level.
In fiscal 2008, Toppan reduced final
landfill waste disposal by 14.2% relative
to the fiscal 2007 level. While this fellslightly short of the 15% target set for
the year, final landfill waste disposal has
been reduced by 93.4% from the fiscal
2000 level. The Company will remain
active in recycling waste to attain themedium- and long-term target.
The waste generation per unit of production value in fiscal 2008 increasedby 3.2% relative to the fiscal 2007 level,
falling behind the targeted reduction of
5% year-on-year. This result was mainly

recycling rate* in fiscal 2008, meetingthe 92% target set. Two important tasks
towards the further improvement of thematerial recycling rate will be to use
waste more effectively at operationalsites and to discuss material recycling
with industrial waste treatment companies. Toppan pursues the maximum
reuse of the waste generated from every
process throughout business operations, with the target of having all
domestic sites certified as zero-emission sites by fiscal 2010.

Targeting Zero Emissions
and Recycling Waste

Total Waste Generation, Final Landfill Waste Disposal, andRecycling Rate

*Material recycling was redefined in fiscal 2008.
Accordingly, the target rate has been changed
from 85% to 92%.

Waste Generation Per Unit of
Production Value(tons/
million yen)
1.0

80

0.8

300

60

0.6

200

40

0.4

20

0.2

1.6
0
2008
(Fiscal year)

0

Total waste generation
Final landfill waste disposal
Recycling rate (recycling amount/total waste generation)
92.9

95.4

96.3

98.0

98.2

98.8

400
337.2

330.9

325.0

324.5

333.6

100
24.0
0

2000

5.9

3.8

2004

2005

2.0
2006

1.8
2007

Environmental Conservation Activities

(%)
100

(1,000tons)
500

Environmental Report

Toppan began certifying “zero-emission
sites” in fiscal 2001. The recycling
rate has great influence on the degree
to which the Company can expect
to achieve its zero-emission targets.
Toppan, therefore, defines zero-emission
sites as operational sites with recycling
rates of 98% or over and zero-emission
approval by the Ecology Center in thehead office. The center certified and registered 43 sites out of the total of 58
domestic sites in fiscal 2008 (➞P. 75).
Toppan recorded a 93% material

0.879

0.751

313.8

2000

2006

0.696

0.719

2007

2008
(Fiscal year)

Note: Final landfill waste disposal is direct landfill disposal plus landfill disposal of residues from intermediate treatment. It includes the residues
discharged from recycling processes.

TOPPAN CSR REPORT 200965

Environmental Conservation Activities

Environmental Report

Pollution Prevention and Chemical Substance Management
and Reduction
Toppan is working to reduce its environmental burden and prevent pollution by complying within-house control standards even more stringent than the legal requirements. The Company continued
its efforts to reduce the handling of chemical substances, especially the handling of toluene, in fiscal 2008.

Preventing Pollution
Every production site gleans an accurate picture of the handling of chemical
substances and identifies its own environmental burden. Based on the results,
the Eco-protection Promotion Committee
at every site sets in-house control standards even more stringent than the legal
requirements. By complying with thesestandards, Toppan production sites
work vigorously to reduce their environmental burdens and prevent pollution.
Preventing Atmospheric Pollution
and Protecting the Ozone Layer
To prevent atmospheric pollution,
Toppan controls boilers and othersources of smoke and soot by switching fuels and managing operations underappropriate combustion conditions. The
Company has also introduced VOC
effluent gas treatment equipment for thethorough control of atmospheric pollutants. VOC emissions into the atmosphere in fiscal 2008 were reduced by
6.7% compared to fiscal 2007, fallingshort of the 10% target set for the year.
Efforts to reduce emissions were hindered by increases in the handling ofcleaning solvents and in malfunctions of
VOC and Toluene Emissions into the
Atmosphere(tons)
24,000VOCs

TolueneVOC effluent gas treatment equipment.
For ozone-layer protection, all equipment that uses designated chlorofluorocarbons at Toppan plants is controlled
in conformance with the relevant laws
and regulations. The step-by-step
replacement of this equipment is now
being considered.
Preventing Water and Soil Pollution
To prevent pollution in the water environment, Toppan manages wastewaterat its plants by installing wastewater
treatment facilities designed to ameliorate specific production processes.
Wastewater recycling systems are
installed at production sites with intensive water consumption in the Electronics field. These systems enable the sites
to recover and reuse wastewater andreduce the levels of water consumption
and effluent discharge.
The Company’s principal concern inmanaging its chemical solution storage
tanks is to prevent the leakage of fluids.
Walls have been constructed around thestorage tanks and Toppan personnel
regularly inspect the tanks and piping todetect flaws before soil pollution occurs.

NOx

Toppan works to reduce the handling ofchemical substances designated under
the PRTR law.
The handling of these substances
was reduced by 12.4% in fiscal 2008,
surpassing the targeted reduction of 5%
year over year. The total release and totaltransfer were also decreased by 22.3%
and 6.6%, respectively, compared to thefiscal 2007 levels. Toppan’s switchover
to toluene-free or low-toluene-content
inks and cleaning solvents was thelargest contributor to these results byfar, accounting for 50.0% of the reduction in handling, 90.9% of the reduction
in total release, and 88.2% of the reduction in total transfer.
Toppan will press forward in material
switchover to further reduce the handling of chemical substances designatedunder the PRTR law (➞P. 76).

Chemical Substances Designatedunder the PRTR Law

NOx and SOx Emissions(tons)
250

Managing Chemical
Substances(tons)
8,000

SOx

222

20,549208
200

18,000Total transfer
Total handling
6,850

Total release
6,893

6,156

193
174

6,035

6,000

150
12,000

2,000
9,085
7,851

7,326

6,159

100

50

0

2000

558

449

362

2006

2007

2008
(Fiscal year)

Note: Emissions into the atmosphere are calculated in conformance with the standards
established by the Japan Federation of
Printing Industries (JFPI) and the Japan
Electronics and Information Technology
Industries Association (JEITA). The data
for fiscal 2007 and earlier have been
restated based on the revised methods forcalculation.

66

1,032

59

6,000

TOPPAN CSR REPORT 2009

0

36

2005

1,000

44
32

2006

2007

2008
(Fiscal year)

Note: Calculated based on the Environmental
Reporting Guidelines (fiscal 2007 version)and the Environmental Activities Evaluation
Program (April 2002) issued by the Ministryof the Environment of Japan.

726
749

0

893

2005

672

526

2006

2007

678
408
2008
(Fiscal year)

Note: Calculated based on data on the handling,
release, and transfer of chemical substances designated under the PRTR law
at each operational site. Dioxins are
excluded due to a difference in the counting unit.

Approach to Logistics
Toppan Logistics Co., Ltd., the logistics specialist for the Toppan Group,
secures safe transportation and organizes environmental conservation activities toreduce CO2 emissions in transportation and stimulate waste reduction and recycling.

Reducing CO2 Emissions inTransportation

Fiscal 2008 Results

IMileage of company-owned vehicles
23.9% improvement compared to thefiscal 2001 level

Reinforcing Environmental
Management
Toppan Logistics operates an ISO
14001-certified environmental management system (EMS) mainly at the
Kawaguchi site, its major logistics base,to effectively promote environmental
Mileage of Company-owned Vehicles(km/L)
4.5

4.36
4.20

4.0

IEnvironmental management system(EMS)
Extended the boundary to cover the
Niiza site; ISO 14001 renewal completed

3.5

IWaste recycling
Recycling rate: 92.9%* (1.8-point
increase compared to the fiscal 2007
level)

3.0

ISafety management system
Zero serious accidents

Securing Safe Transportation
Toppan Logistics operates a safety management system to improve the safetyof company-owned-vehicle transport
operations according to the requirements under the comprehensive law ondriving transport safety enforced inJapan from 2006.
In fiscal 2008, Toppan Logistics implemented safe transportation measures at
the Numazu and Niiza sites on a toppriority basis. These two sites were
newly included in the consolidation
boundaries of Toppan Logistics Co., Ltd.
for the year.

Environmental Conservation Activities

IPromotion of modal shifts
Ton-kilometers of freight: 11% increase
compared to the fiscal 2007 level

Promoting the Green Managementcertified Initiatives
Toppan Logistics proactively implements
eco-driving and inspects and maintains
vehicles according to in-house standards as it works to promote the GreenManagement-certified initiatives applicable mainly to company-owned vehicles.
In pursuit of enhanced eco-driving
effects, Toppan Logistics sets new
checkpoints to control driving practices
harmful to the environment, such as
warming-up-in-idle, quick braking, jackrabbit starting, driving at inappropriate
speeds, and idling during extended
stops. A system to keep track of actual
driving conditions supports the effortsof Toppan Logistics to improve vehicle
mileage on an ongoing basis.

conservation activities. The boundary of
the EMS has been extended to coverother sites, including the Niiza site in fiscal 2008.
Ongoing reinforcements in environmental management will allow Toppan
Logistics to continue reducing and recycling wastes while strictly complying withenvironment-related laws and regulations such as the Waste Disposal andPublic Cleaning Law and the Law Concerning Special Measures for Total Emission Reduction of Nitrogen Oxides from
Automobiles in Specified Areas of Japan.

Environmental ReportComplying with the Revised Energy
Saving Law of Japan
Under the revised Energy Saving Law ofJapan, Toppan is classified as a “designated shipper” and required to reduceenergy consumption per unit of transport volume by an average of 1% a year.
Toppan Logistics Co., Ltd. is conducting energy-saving activities together with
Toppan to meet this mandatory target.
Measures to conserve energy consumption at Toppan Logistics during fiscal
2008 included an upsizing of companyowned trucks via a switchover to vehicles with maximum load capacities of 8
tons or more, an increase in the load
efficiency of trucks via the adoption of
mixed cargo containers, and the promotion of a modal shift to rail transport
for applicable products. As a result of
these measures, Toppan Logistics
reduced energy consumption per unit oftransport volume by 4.3% comparedwith fiscal 2007, surpassing the targeted
reduction of 3% for the year.
In fiscal 2009, Toppan Logistics willcontinue to pursue reductions of CO2
emissions by rationalizing transport

methods and introducing measures for
improved transport efficiency.

4.25

3.90

Eco-driving lecture (discussion during a danger
awareness drill)
3.52

2001

2005

2006

2007

2008
(Fiscal year)

IPromotion of eco-driving
Held joint seminars for drivers from thecompany and its partner companies*The method for calculating the recycling rate
has been changed.

Eco-driving lecture (vehicle maintenance)

TOPPAN CSR REPORT 200967

Environmentally Friendly Products and Environment-related Business

Environmental Report

Developing and Assessing Environmentally Friendly Products
Toppan develops environmentally friendly products based on ISO-14021-compliant in-house criteria while
applying ISO-14040-compliant LCA methods to quantify the environmental burden of its products.

Basic Thinking on
Environmentally Friendly
Products

Environment-related
Business

Toppan develops environmentally friendly
products in accordance with its own setof criteria established in closer consideration of the social demand for products and services from the divisions andToppan’s 14 Environmental Points basedon ISO 14021. The Ecology Center
assesses newly developed products inorder to certify and register those thatmeet all of the criteria for “environmentally friendly products.” In response to
the increased environmental awarenessin society, the number of newly registered environmentally friendly products
increased to 14 in fiscal 2008, exceeding the number registered in the previous fiscal year. Toppan will review thecriteria for its environmentally friendly
products by elaborating the Environmental Points in ways conducive to newperspectives.
The Company has developed 94 environmentally friendly products so far (asof the end of August 2009) (➞P. 73).

Ultra-thin DM is a direct-mailing brochure madefrom an ultra-thin paper of a type commonly used
for dictionaries and similar publications. The ultrathin paper reduces paper consumption, and theuse of a paste-binding agent as an alternative tostitching wire improves recyclability.

The material for the black matrix (BM) of the color
filter for LCD TVs is changed from chrome toresin. The widths between the matrices are
reduced to attain the same brightness with lesselectric power.

Toppan Material Wood is a recycled industrial
material made entirely from waste wood andwaste plastic. This industrial material can be recrushed and recycled time and time again, withno change in its original form or function.

In fiscal 2008, Toppan worked to boost
the sales of its environmentally friendly
products, began to review its in-house
criteria for registering environmentallyfriendly products, and began to reinforce
its Eco-creativity Promotion System.
The chief objectives of the criteria
review for environmentally friendly products were to revise Toppan’s Environmental Points and reset the stagesof the product life cycle in ways conducive to biological diversity and othernew approaches for conserving theenvironment.
To respond to the growing interest ofcustomers in the environmental efficiency of products, all of the divisions
have reinforced the Eco-creativity Promotion System by appointing more
Eco-creativity Officers.
Group companies are also considering means to conserve the global environment as they conduct their corporate
activities. Each company assertively
develops, produces, and markets ecofriendly products in line with its own Ecoproduct Standards carefully formulated

Toppan’s 14 Environmental Points and Environmental Considerations
Life Cycle StageISO 14021
Environmental
Labeling Type II

Products anddistribution

1. Use of safe materials
Recycling rate

2. Use of recycled materials

Resource reduction

3. Resource-saving
4. Reduced energy consumption in production
5. Use of recovered energy
6. Reduced solid waste

Recovered energy
Reduced solid waste
Use

Energy-saving

After use

Long-life products
Reusable/refillable

7. Energy-saving
8. Reduced release ofchemical substances
9. Long product life
10. Reusability

Recyclable

11. Recyclability
12. Suitability for disposal

Easy detachment design

13. Easy separation anddisassembly
14. Biodegradability

Degradability

68

Toppan’s 14 Environmental
Points for Environmentally
Friendly Products

TOPPAN CSR REPORT 2009

Toppan’s Standards
Toppan will not use substances banned by industrial organizations or substances that could
potentially contaminate products manufactured at the Company with environmental hormones.
Toppan will not produce products from recycled materials that could potentially containenvironmental hormones or substances banned by industrial organizations.
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 produced with surplus energy or energy recovered from waste materials.
The generation of solid waste is reduced through modifications of the production process, productdesign, and packaging. (Byproducts reused in processes are not included in this category.)
Energy consumption is reduced during product operation.
Products release the lowest possible levels of chemical substances.
Product lifetimes are extended by improving durability and adopting scalable designs.
Products can be reused or refilled for uses related to the purposes for which they were originallyintended, or for other purposes of the Company. Systems and infrastructures are provided forcollection and reuse.
Systems and facilities are provided for product recycling. Recyclable parts are indicated as such.
The materials used discharge the lowest possible levels of harmful gases during incineration.
Landfill waste is carefully treated to prevent all forms of soil contamination.
Product designs enable easy separation and disassembly. The parts and materials used support
product recycling.
The biodegradable and photodegradable materials used in the products break down naturally andare assimilated back into the environment.

Developing and Assessing Environmentally Friendly Products

in consideration of the demands fromsociety and the features of its products
and services.
The boundary of sales in the environment-related business was extended
from Toppan Printing Co., Ltd. (nonconsolidated) to cover Group companies(consolidated) in fiscal 2008. As a result,
total sales of the environment-related
business of the entire Group stood at
256.8 billion yen.
In pursuit of improved and uniform
environmental efficiency for products
and services, the Toppan Group will
examine a way to standardize the criteria for environmentally friendly products
on a Group-wide basis.

Establishing an Evaluation
Method Well Suited toPrinted Products

Environmentally Friendly Products andEnvironment-related Business

Integration

INPUT
Energy, raw materials, fuel, etc.

Recycling or
disposal

Use

Transport

Manufacturing

Single indicator

Environmental Report

Calculation of Carbon Footprint

Procurement of
raw materials

Solid waste

Impact evaluation of protection targets

Overabundance ofnutrients: BOD

Category end point

Acid rainfall: NOx

Impact range (characterization)

Global warming:
CO2

To help mitigate global warming, theMinistry of Economy, Trade and Industry(METI) of Japan issued the Guidelines
on the Carbon Footprint System(Guidelines) and the Standards for
Establishing Product Category Rules(PCRs). The Guidelines specify the basic
rules on “carbon footprint” for calculation and labeling on CO2 emissions
derived from products and services.
METI will draw up PCRs for each product and begin requiring businesses tolabel information on the CO2 emissions
on their products.
Toppan is preparing for the establishment of a structure to respond to thecalculation and labeling requirements foreach of its products under the PCRs.
For printed products, CO2 emissions arederived primarily from raw materials. The
Company will therefore develop products that use fewer raw materials, beginning with containers and packaging.

Toppan began to develop an original
method for evaluating environmentallyfriendly products in fiscal 2008. Drawing
from the LCA concept, this method is
especially well suited to items in print.
In essence, it is a quantitative evaluation of the environmental friendliness ofa product with respect to inventories
such as global warming mitigation andbiodiversity conservation, based on
Toppan’s 14 Environmental Points
throughout the product life cycle. Whenthe evaluation is complete, the results
are to be integrated and disclosed as asingle indicator.
Toppan has enlisted the cooperationof Norihiro Itsubo, an Associate Professor
from Tokyo City University, to develop a
new environmental impact evaluation
method suitable for printing products
classified as nondurable goods. Throughcoming development efforts over the
next two years, the Company seeks toestablish a method for products in the
Living Environment field, with plans forfull-scale introduction in fiscal 2010.

Basic Flow of Environmental Impact Evaluation Method
Inventory

Calculating and labeling
Carbon Footprint

OUTPUT
Greenhouse gas (GHG) emissions (CO2 equivalent)

TOPPAN CSR REPORT 200969

Environmental Report

Environmentally Friendly Products and Environment-related Business/Conserving Biodiversity

Environmentally Friendly Printing Services
Toppan considers environmental conservation for every stage of printed material production,from raw material selection, design, and plate-making to printing and processing.

GPN Purchasing Guidelines
for Offset Printing Services
As a member of the Green Purchasing
Network (GPN) of Japan (➞P. 37),
Toppan tries to minimize the environmental impact of printing and provides
printing services based on the Purchasing Guidelines for Offset Printing Services.
The Company offers environmentallyfriendly technologies and materials forevery step of the printing process, fromthe selection of designated inks andpapers to surface treatment and binding. Many local governments and companies involved in green purchasing
activities have adopted these services.
Production and Plate-making
Toppan saves natural resources andenergy by excluding filming and development processes through the full digitalization of every stage, from productionof the original manuscript and artwork
to plate-making.

Using Environmentally Friendly Inks
The new soybean-oil ink developed by
Toppan contains virtually no aromatichydrocarbon, an organic compound
harmful to both the human body andthe earth’s atmosphere. The Company
has also commercialized a recycled
vegetable-oil ink made from used soybean oil collected from school cafeterias, restaurants, and other sources.
Toppan is spreading the use of environmentally friendly inks by printing withvegetable oil inks designated by theJapan Printing Ink Makers Association(JPIMA). All products printed with theseinks bear the special “VEGETABLE OIL
INK” mark from the JPIMA.
Providing Environmentally Friendly
Paper
The selection of printing paper contributes greatly to the conservation offorest resources. Toppan’s environmentally friendly paper lineup includes treefree paper, FSC-certified paper, andpaper made with pulp from forest-thinning operations.

Waterless Printing System
The waterless printing system repels ink
with a layer of silicon instead of a layerof water. This eliminates the use and discharge of dampening water, an industrial chemical with an organic solvent
isopropyl alcohol (IPA) component.
Recyclable Methods for Bookbinding
and Processing
Fragmentation-resistant hot-melt is anadhesive suitable for use on paper tobe recycled. Besides offering strong
cohesion, it can be completely removed
from printed materials without fragmenting during recycling. Toppan has also
developed methods for bookbinding andprocessing to confer outstanding recyclability. With Eco-binding, for example,
printed materials can be bound without
the stitching wire used in saddle stitching.

Recyclable Printed Materials
The Japan Federation of Printing Industries(JFPI) issued the “Guidelines for recyclable print
productions” in March 2009 to increase thepaper-to-paper recycling rate in cooperation
with relevant industries. The JFPI classifies
papers, inks, and processed materials basedon the component properties that inhibit recycling. Once the classification is complete, recyclability of a printed material is clarified by
combining the various component properties
that inhibit recycling.
The usage rate of waste paper for printed
materials for publication and other purposes iscurrently limited to about 30%. Some printing
materials degrade the quality of recycled paperor cause problems in the processes to produce them. To enhance the usage rate, it will
be necessary to improve the recyclability of theprinted materials themselves.
Toppan will endeavor to generalize recyclable printing in cooperation with client companies and business partners.
Source: “Guidelines for recyclable print productions” issued by The Japan Federation of Printing Industries and thePaper Recycling Promotion Center inJapan in March 200970

TOPPAN CSR REPORT 2009

Printing Materials(papers, inks, and processing materials)

Recyclable Printed
Materials

Intended Purposeof Recycled Paper(paper, paper board)

Ranking of waste paper recyclability
Rank AFor paper: S For paper board: S

Production

Recyclability A

Does not inhibit recycling into
paper and paper board.

This printed material
can be recycled into
paper for printing.

Rank BFor paper: × For paper board: S

Fully recyclable
into paper

Recycling

Paper
Newspapers,
flyers,magazines,
books, etc.

Inhibits recycling into paper, but
not recycling into paper board.

Rank CFor paper: × For paper board: ×

Recyclability B

Inhibits recycling into paper andpaper board.

Rank DFor paper: × For paper board: ×
Cannot be recycled into paper or
paper board: interspersed tracematerials cannot be removed.

This printed material
can be recycled into
paper board.

Production

Recycling
Fully recyclable into
paper board

Paper board
Paper boxes,
picturebooks,
cardboardcontainers,
paper tubes,
etc.

Conserving Biodiversity
In procuring materials and making proposals to customers, Toppan considers biodiversity andthe environment of locations in which it procures raw materials.

CartocanPallets Made with Lumber
Harvested from Forestthinning Operations
Since 2007, the Takino Commercial
Printing Plant has participated in the
Presents from the Forest—Eco-Friendly
Pallet Project operated by FoE Japan,
an international environmental NGO.
The purpose of this project is to effectively use logs that are too short or too
thin to be processed into products by
conventional means. The processing ofthese logs into a commodity enables
people and companies in the forest
industry to supplement their incomes.
Many Toppan sites adopt pallets madewith lumber harvested from forest-thinning operations with support from pallet
manufacturers and logging and processing companies.

FSC CoC Certification
In May 2002, Toppan became the firstcompany to acquire the Forest Stewardship Council (FSC) Chain of Custody(CoC) certification in the field of commercial printing in Japan. The Company

subsequently acquired the CoC certification in the fields of securities printing
and publications printing.

Tree-planting Programs
Toppan has been investing and participating in two projects in Australia: theGPFL*1 tree-planting venture to produce
hardwood chip, a raw material for paper,
in Victoria, and the PPT’s*2 hardwood
planting program in Tasmania.
To help conserve the environment andbiodiversity in these afforested areas,
Toppan has acquired a third-party forest management certification together
with relevant companies and seeks toestablish a system to improve the traceability of wood products. The Company
has also been participating in a joint
research project to develop methods formonitoring CO2 absorption in forests.
And since fiscal 1999, Toppan has
been collaborating in research on plantation methods as a supporting member of the Japan Overseas Plantation
Center for Pulpwood.

Environmental Report

Measures taken for the sound nurturingand maintenance of forest resources
help to provide habitats for diverse
species. The Forestry Agency of Japan
advocates KIZUKAI-UNDOH (Wood
Products Utilization Campaign), a campaign to encourage forest maintenancein Japan by promoting the use ofdomestic lumber, including lumber harvested from forest-thinning operations.
As a supporter of KIZUKAI-UNDOH,
Toppan contributes to the sound nurturing and maintenance of the country’s
forest resources by preferentially adopting domestic lumber for the productionof its paper-based beverage container,
Cartocan.
To extend the benefits of Cartocan,
Toppan established a system for therecycling of empty Cartocans into ECOGREEN toilet paper in January 2002.
ECO-GREEN is made from about 50%
used Cartocans. Toppan purchased
2,753 cases (60 rolls per case) of ECOGREEN in fiscal 2008.

ECO-GREEN Purchasing
2,675

2,753

2,413

2,500
2,000
1,500

1,486

1,717

1,000
500
0

Environmentally Friendly Products andEnvironment-related Business/Conserving Biodiversity(Case)
3,000

2004

2005

2006

2007 2008(Fiscal year)

The FSC forest management certification system
is a framework to approve responsible forest
management under the principles and standards
established by the Forest Stewardship Council.
The FSC Chain of Custody (CoC) certification
can only be granted to comprehensive management systems that effectively ensure that products are made of materials from well-managed
forests, controlled sources and recycled woodor fiber.

Tree planting by GPFL (upper) and PPT (lower)*1 Green Triangle Plantation Forest Company ofAustralia Pty. Ltd.
*2 Plantation Platform of Tasmania Pty. Ltd.
Using pallets made with lumber harvested fromforest-thinning operations

TOPPAN CSR REPORT 200971

Environmental Data

Environmental Report

Environmental INPUT/OUTPUT Data by Business Field■ Combined Results by Business Field
Category
Material

Chief Component

Electronics

Total input (tons)

INPUT
Water

25,785

1,254,972

475,95001,756,707

38

1,226,404

285,16401,511,606

Plastic (tons)

2,943

2,690

142,823

0

148,456

Glass (tons)

7,513

1

2

0

7,516

Ink, solvent (tons)

12,46522,62336,591071,679

2,826

3,254

11,370017,450Total energy consumption (1,000 GJ)

10,631

8,327

6,250

812

26,020Electricity consumption (1,000 GJ)

9,336

5,946

4,571

663

20,516

Fuel consumption (1,000 GJ)

1,295

2,381

1,679

149

5,504

Water consumption (1,000 m3)

11,544

3,585

2,124

356

17,609Industrial water (1,000 m3)

1,765

976

526

0

3,267

Municipal water (1,000 m3)

376

1,284

781

356

2,797

Groundwater (1,000 m3)

9,403

1,325

817

0

11,545

2

37

0

16

55

27,247030

027,277

Use of rainwater (1,000 m3)
Use of water circulated on premises (1,000 m3)
Chemical substance

Handling of chemical substances designated under the PRTR law (tons)

Atmosphere

CO2 emission (t-CO2)

1,821

1,831

2,454

4

6,110

456,739

403,813334,338

33,5651,228,455

Emission of ozone-depleting substances (ODP-kg)

Water and soil
environments

0

892

93

0

985

NOx emission (kg)35,144

91,891

90,193

3,640

220,868

SOx emission (kg)

36,702OUTPUT

16,073294

20,334

1

Emission of dioxins (mg-TEQ)

0

5

4

0

9

Release of chemical substances designated under the PRTR law (tons)

55

126

240

0

421

Total effluent discharge (1,000 m3)

10,650

2,915

1,462

344

15,371

Public water system (1,000 m3)

8,654

1,176

895

0

10,725

Sewage system (1,000 m3)

1,996

1,739

567

344

4,646

1

10

44

0

55

813

625

505

46

1,989

BOD (kg)

49,511

1,271

4,796

0

55,578COD (kg)

16,542

5,289

3,243

0

25,074

Nitrogen discharge (kg)

16,670

1,331

5,937

0

23,938

Phosphorous discharge (kg)

710

159

657

0

1,526

Release of chemical substances designated under the PRTR law (kg)

391

0

96

0

487

Total generation (tons)

49,468

269,719

124,4284,260

447,875

Recycled (tons)

45,157

265,810

119,560

3,730

434,257

Final landfill waste disposal (tons)

1,879

2,210

2,691

30

6,810

Underground penetration (1,000 m3)
Onsite evaporation (1,000 m3)

Waste

Total

Paper (tons)

Other (tons)
EnergyLivingInformation &Non-production
Networks Environment
Sites

Note: CO2 emissions are calculated by the method specified in the Guidelines for Calculating Greenhouse Gas Emissions from Businesses (2003) from the Ministry of the Environmentof Japan. The calorific value of the primary energy input associated with electricity consumption is calculated uniformly as 0.00983 GJ/kWh. The data for overseas sites, however, are calculated based on other definitions.

Green Procurement and Green Purchasing■Toppan’s Green Procurement Standards (Offset Ink*)*Not applicable to gold, silver, and pearl ink

Level 1

Level 2

1. Avoiding the use ofmaterials harmful tothe human body

Conforms to the NL restrictions of the Association of Japan Printing Ink
Manufacturers

2. Avoiding the use of
substances known togenerate hazardous
substances

Non-usage of chloride-based resins

3. Considering chemical Non-usage of substances designatedsubstances designated under the PRTR law
under the PRTR law

Identification of substances designatedunder the PRTR law (preparing for
MSDS)

4. Controlling VOC
emissions

VOC content below 15% (low-VOC ink)
or soybean-oil ink

VOC content below 1% (non-VOC ink):
Excluding ink for web press

Fiscal 2006

Fiscal 2007

Fiscal 2008

89.1%

86.2%

95.8%

■ In-house Green Purchasing Standards and Level of Fulfillment
Fiscal 2006

Fiscal 2007

Fiscal 2008

Copy machines andprinters

Configured to automatically revert to low-power mode or off mode when not used
for a specific period of time

96.4%

94.5%

100%

PCs

Configured to automatically revert to low-power mode or off mode when not used
for a specific period of time, and to maintain low energy consumption when in lowpower mode

100%

100%

100%

Stationery and office
goods

Products endorsed with environment-friendly qualifications such as the Eco Markor Green Mark; products listed in the eco-friendly product catalogues ofmanufacturers

95.8%

99.0%

94.6%

Product

72

Purchasing Standard

TOPPAN CSR REPORT 2009

Environmentally Friendly Products■ List of Environmentally Friendly Products (as of the end of August 2009)
Business
Field

Product

Environmental Point

Ecothrough card
Paper IC Card
Bulky Waste Processing
Sticker
Card for ETC
Rewritable Paper
Ultra-thin DM
Eco Pack (life-size POP
display)
Paper Desk Calendar
Ecology Calendar
Eco POP

Product

Environmental Point

CartocanPaper Cup Made from
Recycled Paper
Cup made from Tree-Free
paper
Biodegradable Package
Cylindrical Paper Cartridges
Coated Barrier Film
GL-C Bottle
GX film
Jar Plus
Tray AllGL Film Lined Paper Cup
Double-Wall Barrier Cup
Oil-Proof Paper
Functional Coated Paper
In-Mold Barrier Cup
Tamper-Evident Recyclen
Cap
Easy peel-off thermo-cap for
PET bottles
Ecoband
Water-based Cold Seal

Packaging

Biodegradable Plant Pot
Barrier Cup (NSP Process)
Plastic Clip
Notchless Easy-cut
Container (AL type)
Recycled PET Clear Case
ALUGLAS
Stripping and heat-sensitive
label for glass bottles
Food container made fromheat-resistant paper
Paper carton with temper
evident closure
One-piece occlusionpreventive plug for TL-PAKs
Sealed paper tray
Flexible packaging materialusing paper
Clear UV-Blocking Film
Injection-molded articles ofbiomass-plastics
EL-CaseResource-saving (use of
byproducts)
Biodegradability
Resource-saving (reduced
use of energy in logistics)
Suitability for disposal
Resource-saving
Resource-saving
Resource-saving
Easy separation anddisassembly
Resource-saving
Resource-saving
Use of safe materials
Recyclability
Resource-saving
Easy separation anddisassembly
Easy separation anddisassembly
Resource-saving
Reduced release of chemical
substances
Biodegradability
Resource-saving
Recyclability
Resource-saving (reduced energy
expended in manufacturing)
Recyclability
Suitability for disposal
Easy separation anddisassembly
Resource-saving
Resource-saving
Resource-saving
Resource-saving
Resource-saving
Suitability for disposal
Resource-saving
Easy separation anddisassembly
Use of safe materials

Environmental Data

Oil-proof paper for fluorinefree cardboard
Paper cup made from pulp
from forest-thinningGL-compliant back sheet forsolar cells
Paper composite container
Pouch-type fragrance container
Resource-saving Cartocan(rectangular type)Packaging materials using
low-migration type adhesives
Delayed-tack label for glass
bottles (film type)
Cylindrical paper-complex
container
High Resistance Flexible
Pouch
Folding Pouch (for refilling)
In-mold Decorated
Components
Aluminum-free Dead-fold LidMaterial

Recyclability
Use of recycled materials

Environmental Report

Suitability for disposal
Use of recycled materials
Resource-saving (reduced
Securities
use of materials)
and Cards
Suitability for disposal
Long product life
Resource-saving
Resource-saving (reduced
use of materials)
Use of recycled materials
Use of recycled materials
Use of recycled materials,
suitability for disposal,energy-saving
Suitability for disposal
Commercial Cerap
Eco Pack Stand
Resource-saving
Printing
Eco Pack Multipanel
Reusability
Eco Floor Sticker
Suitability for disposal
Eco Pack End Panel
Resource-saving
Eco Pack Stand, Round-type Resource-saving
EPOP
Use of safe materials
Eco Pack Multipanel Mini
Reusability
Multicube POP
Reusability
Recycled vegetable-Oil Ink
Use of recycled materials
Polyurethane Reactive
Easy separation and easy
disassembly
Publications Hot-Melt
Printing
Non-Vinyl Chloride Lenticular Suitability for disposal
Lens
Disk Tottokun Series
Recyclability
Halogen-free printed wiring
Suitability for disposal
board
Anti-reflection film
Use of safe materials
Color filter (resin black matrix Use of safe materials
Electronics[BM])
Palladium-plated leadframe
Use of safe materials
Lead-free solder coated
Use of safe materials
printed wiring board
GL Family
Suitability for disposal
Standing pouch for refill
Resource-saving (reduced
use of materials)
Resource-saving (reduced
Bottled Pouchuse of materials)
Plastic Container Made from Use of recycled materials
Recycled Materials
Ecogloss (environmentallyResource-saving (reduced use
friendly gloss finishing)of exhaustible materials), useof recycled materials
Recording Media Packaging Resource-saving (reduced
use of exhaustible materials)
Easy separation and
TT Paper Can
disassembly
NeovertUse of recycled materials
Ecotainer
Resource-saving (reduced
use of exhaustible resources)
Packaging TL-PAK
Resource-saving (reduced
use of exhaustible resources)
Resource-saving (reduced
EP-PAK (EP-GL)
energy usage in logistics)
Resource-saving (reduced
EP-PAK (Al)energy usage in logistics)
Resource-saving (reducedStand-up Laminated Tubeuse of materials)
Easy separation andRecyclen Cap
disassembly
Resource-saving (reduced
AP Cartonsuse of energy in logistics)
Resource-saving (reduced
Micro-Fluteuse of energy in logistics)
TP-Tray
Recyclability
Corrugated Absorber
Recyclability
AD-CaseResource-saving (reduced
use of materials)

Business
Field

Resource-saving
Suitability for disposal, longproduct life
Resource-saving, recyclability
Resource-saving, recyclability
Resource-saving, recyclability
Reduced release of chemical
substances, use of safe materials
Easy separation anddisassembly, resource-saving
Resource-saving
Resource-saving
Easy separation and disassembly
Reduced release of chemical
substances
Suitability for disposal

TOPPAN CSR REPORT 200973

Environmental Report

Environmental Data

ISO 14001 Certification (65 systems, 84 operational sites as of April 1, 2009)■ Toppan Printing Co., Ltd. and Production Subsidiaries■Domestic Group Companies

Registration
Registrar
Date

Division/Operational Site

Jul. 1998

Registration
Date

NEC Toppan Circuit Solutions, Inc. (Toyama Plant)

JQA

Jan. 1997

Total Media Development Institute Co., Ltd.

JSA

Mar. 2001

Shiga Plants (Electronics Division/Semiconductor
Solutions Division)

JQA

Electronics Division (Kumamoto Plant)

JQA

Nov. 1998

Toppan Forms Co., Ltd. (Hino Plant)

JQA

Jun. 2001

Toppan Cosmo, Inc. (Kashiwa Plant/Satte Plant,
Toppan Decor Products Inc.)

JQA

Mar. 2000

Tokyo Shoseki Co., Ltd. (Head office and plants)

JCQA

Jul. 2001

Electronics Division (Niigata Plant) and NEC
Toppan Circuit Solutions, Inc. (Niigata Plant)

JQA

Apr. 2000

Toppan TDK Label Co., Ltd.
(Fukushima Plant/Takino Plant)

JQA

Nov. 2001

Sakado Site

JQA

Oct. 2000

Toppan Logistics Co., Ltd. (Nishigaoka Site,
including the Kawaguchi transport department)

JQA

Oct. 2002

Information and Communication Division(Ranzan Plant)

JQA

Nov. 2000

Toppan Prosprint Co., Ltd. (Mito Plant)

JSA

Jan. 2004

Packaging Division (Akihabara Office)

JQA

Mar. 2001

Toppan Forms Co., Ltd. (Fussa Plant)

JQA

Feb. 2004

Itabashi Site (including Toppan Seihon Co., Ltd.)JQA

Feb. 2002

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

JQA

Mar. 2004

Fukusaki Site (including Wakayama Plant,
Toppan Plastic Co., Ltd.)JQA

Jul. 2002

Toppan Containers Co., Ltd. (Saitama Plant/
Miyagi Plant/Sano Plant)

JQA

Apr. 2004

Toppan Graphic Co., Ltd.

JQA

Aug. 2002

Toppan Forms Tokai Co., Ltd. (Nagoya Plant)

JQA

Aug. 2004

Takino Plants (Information and Communication
Division/Packaging Division)

JQA

Oct. 2002

Toppan Forms Kansai Co., Ltd. (Osaka Plant)

JQA

Dec. 2004

Toppan Forms Nishinihon Co., Ltd. (Kyushu Plant)

JQA

Jan. 2005

Toppan TDK Label Co., Ltd. (Sagamihara
Plant/Kita Plant/Nishi Plant/Nishi Warehouse)

JCQA

Jan. 2005

Gunma Site (including Tatebayashi Plant)

JQA

Jul. 2003

Asaka Plants (Information and Communication
Division/Semiconductor Solutions Division)

JQA

Dec. 2003

Toppan Prosprint Co., Ltd. (Koto Plant)

JQA

Mar. 2005

Toppan Electronics Fuji Co., Ltd.

JQA

Jun. 2004

Hino Offset Printing Co., Ltd.

JSA

Nov. 2005

West Chugoku & Shikoku Subdivision (Hiroshima
Office/Kannabe Toppan Co., Ltd.)

JQA

Oct. 2004

Toppan Forms Kansai Co., Ltd. (Settsu Plant)

JQA

Mar. 2006

Toppan Forms Co., Ltd. (Kawamoto Plant)

JQA

Aug. 2006

Kansai Division (Commercial Printing Subdivision/
Securities Printing Subdivision/Packaging
Subdivision/East Chugoku & Shikoku Subdivision)

JQA

Toppan Forms Kansai Co., Ltd. (Kobe Plant)

JQA

Sep. 2006

Tohoku Division

JQA

Mar. 2005

Technical Research Institute

JQA

May 2005

Hokkaido Division (Sapporo Plant/Chitose Plant)

JSA

Jun. 2005

Electronics Division (Mie Plant I)

JQA

Jan. 2006

Group Company

Registrar

Registration
Date

SAI
GLOBALDec. 2006

Toppan Photomasks France SAS

LRQAOct. 2000

Toppan Packaging Service Co., Ltd.
(Ranzan Plant/Kyushu Plant)

JQA

Feb. 2007

Toppan Photomasks, Inc. (Santa Clara/Round
Rock)

LRQA

Nov. 2001

Packaging Division (Sagamihara Plant)

SAI
GLOBALMar. 2007

Siam Toppan Packaging Co., Ltd.

MASCI

Apr. 2002

Toppan Printing Co., (H.K.) Ltd.

DNVMay 2002

Toppan Saga Yoki Co., Ltd.

SAIGLOBALNov. 2007

Toppan Printing Co. (America), Inc.

DNV

Dec. 2002

Toppan Chunghwa Electronics Co., Ltd.

SGS

Oct. 2003

SAI
GLOBAL

Oct. 2008

Toppan Printing Co., (Shenzhen) Ltd.

SSCC

Dec. 2003

Toppan Photomasks Germany GmbH

LRQA

Oct. 2004

Toppan CFI (Taiwan) Co., Ltd.

SGS

Nov. 2004

P.T. Toppan Printing Indonesia

LRQA

Nov. 2004

Toppan Photomasks Singapore Pte. Ltd.

LRQA

Feb. 2005

Toppan Photomasks Korea Ltd.

LRQA

Feb. 2005

Toppan Photomasks Co., Ltd., Shanghai

LRQA

Feb. 2005

Toppan Printing Co., (Shanghai) Ltd.

CEC

Feb. 2006

Toppan SMIC Electronics (Shanghai) Co., Ltd.

BSI

Feb. 2007

SNP Leefung Printers (Shanghai) Co. Ltd.

CCCI

Apr. 2007

SNP Yau Yue (Shenzhen) Paper Products Co., Ltd.

SGS

Nov. 2007

Shanghai Toppan Printing Co., Ltd.

NQA

Jul. 2008

SNP Leefung Packaging & Printing (Dongguan)Co., Ltd. (Packaging Division)

MIC

Jan. 2009

SNP Leefung Printers Ltd. (Export Division—book
printing) [SNP Leefung Packaging & Printing(Dongguan) Co., Ltd. (Export Division—book
printing)]

CNAS

Mar. 2009

Toppan Plastic Co., Ltd. (Koshigaya
Plant/Kawaguchi Plant/Sagamihara Plant)

Nishinihon Division (Fukuoka Plant Manufacturing
Department 1)

Nov. 2004

Toppan Techno Co., Ltd.
(Head office/Kansai branch/Atsugi site)

Note: The names of divisions and operational sites accord with those mentioned in thereview report issued in fiscal 2008 by the registrars.

Environmental Education■ Fiscal 2008 Results
Education or Training

Content

Number ofTrainees

New employee
training

General environmental education(introductory level)395

Training for newly
appointed managers

General environmental education(intermediate level)200

E-learning

Environmental issues involving
corporations and Toppan Group
activities

0(Sum total:
20,123)

Optional training

74

Registrar

Group Company/Operational Site

Introduction to ISO 14001

23

Introduction to environmentrelated laws

23

Seminar to enhance the skills of
ISO 14001 internal auditors

39

Challenge School

Six courses related to theenvironment

19Internal environmental
auditor training

Internal environmental auditor
training program

140

TOPPAN CSR REPORT 2009

SAI
Mar. 2009
GLOBAL■Overseas Subsidiaries

Note: The company names accord with those mentioned in the registration certificate.

Energy Type Ratio and Consumption

Promotion of Waste Reduction and Recycling (43 plants certified in December 2008)■Ratio by Energy Type for Fiscal 2008
(in terms of caloric value)■Zero-emission Sites (TZERO-08)

LPG 0.9%

Operational Site

Diesel oil and gasoline
0.0%

Kerosene 0.9%
A fuel oil 1.3%

Generation(tons)

Recycled(tons)

Recycling
Rate

Information and Communication Division(Asaka Securities Printing Plant)

4,069.8

4,066.1

99.91%

Information and Communication Division (Ranzan Plant)

1,051.6

1,050.4

99.89%

392.5

383.2

97.63%

Electronics Division (Mie Plant I)

5,638.2

5,637.9

99.99%

Electronics Division (Kumamoto Plant)

11,166.1

11,097.5

99.39%

180.5

179.3

99.34%

NEC Toppan Circuit Solutions, Inc. (Toyama Plant)

4,238.3

4,237.1

99.97%

Electronics Division (Satte Plant)

2,612.8

2,612.8

100.00%

Semiconductor Solutions Division (Asaka Site)

Toppan Electronics Fuji Co., Ltd.
Purchased
electricity
74.6%

Natural gas
22.3%■ Electricity Consumption
(GWh)
1,500
1,326

1,376
1,305

1,182
1,000

500

0

2005

2006

2007

2008
(Fiscal year)(1,000 Nm3)
88,33390,414

93,94985,58380,00040,00020,000

2005

2006

2007

100.00%16,446.5

99.59%

Information and Communication Division (Asaka Site)

11,121.0

11,094.6

99.76%

Sakado Site

27,063.3

27,054.2

99.97%

Toppan Graphic Co., Ltd.

44,962.8

44,962.8

100.00%Toppan Seihon Co., Ltd.

30,901.4

30,721.6

99.42%

Packaging Division (Sagamihara Plant)

21,182.6

21,126.2

99.73%

Toppan Containers Co., Ltd. (Saitama Plant)

8,941.1

8,824.2

98.69%

Toppan Containers Co., Ltd. (Sano Plant)

4,144.8

4,121.3

99.43%

Toppan Containers Co., Ltd. (Miyagi Plant)

3,589.5

3,589.5

100.00%Toppan Containers Co., Ltd. (Kumagaya Site)

264.6

264.6

100.00%Toppan Plastic Co., Ltd. (Koshigaya Plant)

499.6

499.1

99.90%

Toppan Plastic Co., Ltd. (Sagamihara Plant)

121.0

121.0

100.00%Toppan Packaging Service Co., Ltd. (Ranzan Plant)

500.9

498.6

99.54%

Toppan Packaging Service Co., Ltd. (Kyushu Plant)

228.4

228.4

100.00%Toppan Decor Products Inc. (Kashiwa Plant)

3,571.2

3,571.2

100.00%Toppan Decor Products Inc. (Satte Plant)

5,012.8

5,012.8

100.00%

Packaging Division (Itami Plant)

10,556.5

10,436.7

98.87%

639.5

636.3

99.50%

Information and Communication Division(Takino Commercial Printing Plant)

11,993.5

11,993.5

100.00%

Packaging Division (Takino Packaging Plant)

4,888.2

4,885.0

99.93%

Information and Communication Division(Takino Securities Printing Plant)

1,200.2

1,200.2

100.00%Information and Communication Division (Nagoya Plant)

5,290.9

5,269.6

99.60%

Packaging Division (Matsuzaka Plant)

2,485.4

2,465.5

99.20%

Mikkabi Toppan Printing Co., Ltd.

3,244.0

3,236.4

99.77%

Nishinihon Division (Fukuoka Plant Manufacturing Department 1)

5,391.8

5,296.2

98.23%

Nishinihon Division (Fukuoka Plant Manufacturing Department 2)

6,005.5

5,967.5

99.37%

Toppan Saga Yoki Co., Ltd.

229.1

227.7

99.41%

Kumamoto Toppan Co., Ltd.

6,210.3

6,210.3

100.00%Kannabe Toppan Co., Ltd.

4,099.0

4,018.2

98.03%

Tohoku Division (Sendai Plant)

4,293.9

4,232.1

98.56%

Hokkaido Division (Sapporo Plant)

2,746.3

2,746.1

99.99%

Toppan Prosprint Co., Ltd. (Mito Plant)

3,891.4

3,889.7

99.96%

Toppan Prosprint Co., Ltd. (Koto Plant)

1,713.1

1,710.4(kL)

99.84%

58.2

58.2

100.00%

Fukuren Co., Ltd.

12,000Notes: •Two criteria were set for certifying operational sites as zero-emission sites in December 2008. 1) For first-timecertification, a site is required to have attained a recycling rate of 98% or over in fiscal 2007. 2) For ongoing certification, a site is required to have attained an average recycling rate of 98% or over during fiscal 2006–2007.
•The performance data above are the results for fiscal 2007. Though its recycling rate has been confirmed to fall
below 98%, the Asaka Site in the Semiconductor Solutions Division is certified as a zero-emission site. This siteretains the designation because it underwent an assessment for ongoing certification and maintained an average recycling rate of over 98% during fiscal 2006–2007.

9,968

8,000

Environmental Data

2008
(Fiscal year)■ Kerosene Consumption

10,0001,993.4

16,514.4

Environmental Report

60,0000

1,993.4

Information and Communication Division (Itabashi Site)

Toppan Harima Products Co., Ltd.

■ Natural Gas Consumption
100,000

Electronics Division (Shiga Plant)

7,469

6,000
5,033
4,237
4,000
2,000
0

2005

2006

2007

2008
(Fiscal year)

Note: The calorific value of the primary energy input associated with electricity consumption is calculated
uniformly as 0.00983 GJ/kWh.

TOPPAN CSR REPORT 200975

Environmental Data

Environmental Report

Pollution Prevention and Chemical Substance Management and Reduction■ PRTR Results for Fiscal 2008
PRTR
No.

(Unit: kg/year)

Chemical Substance

HandleRelease

1. Atmosphere

2. Water

Total Transfer

3. Soil

16

2-amino ethanol

52,525000013,12824

Linear alkylbenzenesulfonate and chlorides

2,379

0

0

0

0

809

30

Bisphenol A type epoxy resin (liquid)

1,953

0

0

0

0

586

40

Ethyl benzene

29,069

4,643

4,643

0

0

912

45

Ethylene glycol monomethyl ether

6,056

297

297

0

0

949

46

Ethylene diamine

5,842

0

0

0

0

5,782

61

ε-caprolactam

5,080

0

0

0

0

813

63

Xylene65,877

6,980

6,980

0

0

970

64

Silver and water-soluble compounds

1,441

0

0

0

0

0

68

Chrome and trivalent chromium compounds

21,477

7

0

6

0

5,965

69

Hexavalent chromium compounds

18,206

0

0

0

0

897

108

Inorganic cyanogens compounds

3,706

0

0

0

0

112

132

1,1-dichloro-1-fluoroethane (HCFC-141b)

1,847

1,847

1,847

0

0

0

179

Dioxins

545 (mg-TEQ)

4 (mg-TEQ)

4 (mg-TEQ)00541 (mg-TEQ)

207

Copper salts (water-soluble, except complex salts)

1,340,171

411

0

411

0

221,894

218

1,3,5-tris(2, 3-epoxypropyl)-1,3,5-triazine2,4,6 (1H,3H,5H)-trione

7,290

0

0

0

0

2,174

224

1,3,5-tri-methyl benzene

6,392

1,060

1,060

0

0

5,011

227

Toluene4,252,337

392,670

392,67000357,996231

Nickel

97,020

0

0

0

0

0

232

Nickel compounds

55,922

22

0

22

0

52,666299

Benzene

8,245

0

0

0

0

0

304

Boron and its compounds

1,781

32

0

32

0

2

309

Poly (oxyethylene) nonylphenyl ether

2,194

439

439

0

0

1,712

310

Formaldehyde

39,278

60

60

0

0

0

311

Manganese and its compounds

8,928

16

0

16

0

6,011

6,035,016

408,483

407,996487

0678,389

Total

Notes: Period covered: April 1, 2008–March 31, 2009
Substances designated: The 25 substances shown above
Operational sites covered: Sites that handle more than 1.0 ton of Class I designated chemical substances per year. (Or specified Class I designated chemical substances inexcess of 0.5 tons per year.)
The total transfer is the sum of transfers into waste and sewage systems.

Atmospheric Emissions

Waste Generation and Recycling by Type

■Ratio of Greenhouse Gas Emissions by Type (in tons of CO2 equivalent)■Fiscal 2008 Results(Unit: ratio: % total: t-CO2)

Fiscal Year

CO2

CH4

N2O

Total

Type of
Waste

Generation(tons)

Ratio

2005

99.92

—

0.08

730,356

Waste paper

229,264

2006

99.93

—

0.07

785,562

Waste plastic

26,738

2007

99.93

—

0.07

805,109

Waste acid

2008

99.93

—

0.07

751,901

Waste alkali■Ratio of Greenhouse Gas Emissions by Source (in tons of CO2 equivalent)(Unit: ratio: % total: t-CO2)

Primary Reusage

73.1%

99.8%

Recycled paper

8.5%

99.0% RPF, plastic materials

15,908

5.1%

93.6%

13,631

4.3%

95.8%

Neutralizer

Waste oil

9,150

2.9%

97.2%

Recycled oil, fuelSludge

9,150

2.9%

94.5%

Roadbed materials

Metal chip

4,804

1.5%

99.5%

Metal materials

Wooden chip

1,931

0.6%

99.0% Chip, paper materials

Neutralizer

Fiscal Year

Electricity
UseFuel Use

Waste
Incineration

Total

2005

61

35

4

730,356

Cinder

1,856

0.6%

69.0%

Roadbed materials

2006

64

31

4

785,562

Glass chip

554

0.2%

99.3%

Glass materials

2007

65

32

4

805,109

Other

766

0.3%

77.5%

—

751,901

Total

313,752

100.0%

98.8%

—

2008

66

31

4

Note: Calculated by the method specified in the Guidelines for Calculating Greenhouse
Gas Emissions from Businesses (2003) from the Ministry of the Environment ofJapan.

76

Recycling
Rate

TOPPAN CSR REPORT 2009

Third-party Opinion
The high quality of Toppan’s CSR Reporthas been maintained. The report ranks
among the top in Japan, especially interms of the breadth of information
included. Much is to be learned fromthe information reported on the new
management systems formed and theachievements of the activities conducted
in relation to the environment and tobusiness partners. Yet within the fieldof CSR in general, the reports preparedby Japanese companies have been of
only middling quality. Japanese society,meanwhile, senses the growing importance of a host of new issues, particularly global warming and the need forstable employment amid the rising bifurcation of its labor market due to theincreased hiring of non-regular employees. Noting these current trends, I hopethat Toppan will further step up its CSR
initiatives and improve the level of information disclosure.
PDCA Review This report includes afairly detailed PDCA review of CSR activities (“Results for Fiscal 2008 and Future
Measures” on PP. 20–21), a keystone for
any CSR report. But from now on, I think
it will be necessary to rearrange thisreview. The number of organizing activities carried out in accordance with thenumber planned has yet to earn an “A”
rating in the Company’s self-evaluation.
Toppan must select its activities basedon their materiality for the Company.
Does the activity really address animportant social issue? What responsibilities does the Company burden as it
implements measures to solve the issue?
A host of questions are to be answered
for the selection. A detailed descriptionof each activity should be included in
the relevant section of the report.
Special Reports Toppan selected two
topics. The first is the development of agenotype analysis system for personalized medicine, a potential solution forvarious social issues, particularly in developing countries. The second is a clinical
art therapy to energize the mind throughthe power of art. Both special reports
bring new images of Toppan to light.
Negative Information The report accurately describes an accident involving
the leakage of printing solvent, a problem that occurred about a month before
the report was issued.
Stakeholders The report shows theframework of Toppan’s relationships withmajor stakeholders. For new steps into
the future, Toppan should design newmodes of communication. The report,
meanwhile, should include descriptions
on relationships with more diverse entities, such as research institutions andnational and local governments, amongits stakeholders. I also expect theCompany to expand communications
with the CSR Promotion Study Group,a body of experts it set up in 2008.
Product Life Cycle I think it would bebetter if the report included details on thestatus of complaints about the quality andsafety of products after sales. I would also
like to learn more about the measurestaken to respond to the complaints andimprove the Company products.
Employment and Labor I highly evaluate the information on non-regular
employees and expenditures for
employee training and other humanresource development programs. On theother hand, the report fails to provide
an explanation of the decrease in thenumber of temporary staff. The specificdescriptions of Toppan’s measures toreduce the long hours worked by its
employees show that the Company has
kept up diligent efforts throughout theyear. Toppan should consider present-

ing the numerical changes in total working hours in future reports. Diversity inhuman resources, meanwhile, is becoming an issue of increasing relevance inJapanese society. Though Toppan has
been promoting positive actions, thenumber of female managerial staff islargely unchanged. Strengthened measures to leverage female talent are necessary. One way to take a great leap
forward for diversity would be to form
an exclusive promotion structure, something akin to a “Diversity Promotion
Department.”
Environment The report indicates theaccomplishments in PRTR-related activities. CO2 emissions have also beensteadily reduced, both as a total amountand as an amount per unit of sales. From
now, however, Toppan should set andachieve even higher targets for the
reduction of CO2 emissions. We all foresee the importance of introducing renewable energy in the future. Companies
should take the initiative to develop systems to use renewable natural energy
while demanding financial support oradministrative backing from the government. They should do so both individually and collectively. Toppan can consider
following the example of other companies in building an eco factory. One
intriguing plan would be to build a manufacturing plant for solar-cell-related
products that itself runs on photovoltaic
power. I expect Toppan to establish
medium- and long-term targets formarked improvement in its CSR activities to come.

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

ProfileMr. Midorikawa worked for many years in the Kanagawa prefectural government in Japan, mainly in labor and consumer administration. After retiring from the prefectural service, he served as
Executive Officer of the Kanagawa Prefecture Small and Medium
Business Management Association. Mr. Midorikawa’s NGO/NPO
achievements include the founding of the Green Consumer
Research Group in 1991 and participation in The Valdez Society,a body that researches and proposes concepts and solutions
related to corporate environmental responsibilities through collaboration between citizens and companies (Mr. Midorikawa joinedin 1991). He has authored several books in Japanese, including
CSR Practice Methods with Visible Effects (co-authored), CSR
Management (co-authored), and Green Consumer Shopping
Guide (co-authored).

TOPPAN CSR REPORT 200977

Third-party Opinion and External Assurance

External Assurance
The conclusion of our assurance engagement is stated in our
Independent Assurance Report. The following summarizes
improvements from the previous year and issues remaining, as
identified in the course of our assurance process.
The “Environmental INPUT/OUTPUT Data by Business Field”
on page 72 includes data on Toppan Photomasks, Inc. and its
subsidiaries, entities that were not included in the boundary
before. The table also covers data in a timely manner on thesecond-half of the fiscal year for SNP Corporation Pte. Ltd.
and its subsidiaries, entities acquired by Toppan as consolidated subsidiaries upon the completion of acquisition procedures in September 2008. The boundary for consolidated
financial statements and that for environmental performancedata have thus become more consistent, allowing users tocompare and analyze information more easily. On the other
hand, the boundaries for environmental performance and personnel data on other pages remain relatively limited. The disclosure of performance data on a consolidated accounting
basis is becoming a commonplace practice in CSR reporting.
In light of this, we expect Toppan to consider expanding theboundary in upcoming reports.
Toppan has improved the overall accuracy in the collectionof environmental performance data. Its internal data checkprocedures, however, can still be improved. Each operationalsite could, for example, carry out consistency checks between
different performance indicators before reporting the data to
the head office, and the head office could then verify the con-sistency and completeness of the reported data by performing
comparative analyses in order to improve the accuracy in datacollection.
In reporting social performance indicators, Toppan discloses
actual results for the topics that it considers material, basedon opinions collected from the meeting of the CSR Promotion
Study Group and other stakeholder dialogue channels. The
Company also shows quantitative data wherever possible.
Toppan is expected to examine the possibility of setting quantitative targets in the future.

Kazuhiko Saito
Senior Manager
KPMG AZSA Sustainability Co., Ltd.
(KPMG AZSA & Co. group)

Level of Compliance with GRI Sustainability Reporting Guidelines 2006

78

TOPPAN CSR REPORT 2009

C

C+

B

B+

A

Report on all criteria
listed for Level C plus:
1.2
3.9, 3.13
4.5-4.13, 4.16-4.17

Same as requirementfor Level B

Not RequiredManagement
Approach Disclosuresfor each Indicator
Category

Management
Approach disclosed
for each Indicator
Category

Report on a minimumof 10 Performance
Indicators, including atleast one from eachof: social, economic,
and environment.

Report on a minimumof 20 Performance
Indicators, at least one
from each of:
economic,
environment, humanrights, labor, society,product responsibility.

Report Externally Assured

Report on:
1.1
2.1-2.10
3.1-3.8, 3.10-3.12
4.1-4.4, 4.14-4.15
Report Externally Assured

G3 Performance
Indicators & Sector
Supplement
Performance Indicators

OUTPUT

G3 Management
Approach
Disclosures

OUTPUT

G3 Profile
Disclosures

OUTPUT

Report Application Level

This report is rated B+
among the levels definedin the G3 Guidelines.

Respond on eachcore G3 and Sector
Supplement* indicatorwith due regard to themateriality Principle
by either: a) reportingon the indicator orb) explaining thereason for its
omission.

A+

Report Externally Assured

zations will identify their current levelsof improvement, and helps readers easily understand the extent to which areport complies with the guidelines.

Standard Disclosures

Global Reporting Initiative (GRI) is a
nonprofit organization established toformulate international guidelines forsustainability reporting. Entities of every
type can use these guidelines in theirwork to create their own sustainability
reports. GRI prepares Sustainability
Reporting Guidelines in collaboration
with various stakeholders. The first edition of the guidelines was issued in
2000; the third (G3 Guidelines), in 2006.
Toppan understands that intensive
stakeholder engagement was required
to produce the guidelines. For this reason, the Company treats the guidelines
as an important reference for understanding the types of information readers want to know.
The G3 Guidelines require reportingorganizations to declare the levels towhich they have applied the guidelines.
This ensures that the reporting organi-*Sector supplement in final version*Please access http://www.toppan.co.jp/english/csr/ for the GRI content index.

TOPPAN CSR REPORT 200979

Third-party Opinion and External Assurance

Company Reaction to the Third-party Opinion andExternal Assurance
For this CSR Report 2009, Toppan has
again received a third-party opinion fromMr. Yoshiki Midorikawa (director of theGreen Consumer Research Group andco-chair of The Valdez Society) andexternal assurance from KPMG AZSA
Sustainability Co., Ltd. The Company
would like to thank both for the concrete and stimulating opinions they havedeveloped over their many years of
involvement in the publication of thereports. Following is a brief summary of
the issues to be addressed at Toppan
and directionalities for the future.
As CSR initiatives become more common, companies must select and focus
more intensively on the fields that seemto be material for both society and themselves. Toppan selected its material
topics in fiscal 2008. The Company will
push ahead CSR activities based on
those topics and disclose information inan easier-to-understand way throughongoing examinations to set more
effective target values and determine

how to evaluate the progress towards
the targets.
The boundary of the report is a matterassociated with the expansion of business areas. Toppan advocates “accelerating toward globalization” as an issue
on which to focus. In fiscal 2008,
Toppan established the International
Division as the spearhead of thisendeavor. Toppan’s expansion in thegrowing Chinese market is handled by
the Company’s existing local production
sites and the operational sites of SNP
Corporation Pte. Ltd., a subsidiaryacquired in fiscal 2008. Toppan will
steadily continue its CSR initiatives andexpand the reporting boundary in theyears to come.
On the environmental front, Mr.
Midorikawa proposes that Toppan undertake actions for the mitigation of global
warming, including measures to introduce
renewable energy. KPMG AZSA Sustainability Co., Ltd., on the other hand,points out the need for more accurate

performance data. Toppan commenced
its Pro-Green Activities in fiscal 2008 forthe thorough review and advancementof its environmental management.
Through these activities, the Company
seeks once more to measure its environmental burden and the effectivenessof its actions in precise detail. Toppan
will also perform environmental activities
to contribute to the simultaneous pursuit of global environmental conservation and the continuance of business.
The worsening economic conditions
in fiscal 2008 shed light on various problems and possible crises in the global
environment and world societies, including Japanese society. Communication
with stakeholders is essential for an
accurate understanding of social issues
and an objective evaluation of CSR initiatives. The CSR report is a vital tool
for this communication. Toppan will
therefore reexamine the shaping of the
CSR report in careful consideration of
the opinions it has obtained.

Questionnaire enclosed here: Please let us know your opinions
We welcome feedback from readers. Stakeholder opinions are used to enhance the understandability and relevancy of
our corporate social responsibility (CSR) initiatives and information disclosure for both stakeholders and the people inside
Toppan. We encourage you to take a few minutes to answer the questionnaire enclosed here.

80

TOPPAN CSR REPORT 2009

Questionnaire on Toppan’s CSR Initiatives and CSR Report 2009
Thank you for reading Toppan’s CSR Report 2009. We would
appreciate it if you could answer the following questions and fax
the completed questionnaire to the fax number on the right.
All feedback received will be helpful for us as we develop future
CSR initiatives and CSR reports.

CSR Promotion Department,
Legal Affairs Division, Toppan Printing Co., Ltd.

FAX: +81-3-3835-1447

Q1. From what viewpoint did you read this report?
Customer Customer (in charge of CSR)
Business partner
 Business partner (in charge of CSR)
Member of a community near a Toppan operational site
Governmental organization, government-related institution
Employee/Member of employee’s family Other ( Customer (consumer) Shareholder/Investor
 NPO/NGO (CSR, environment) Media
 Student)

Q2. How did you find the Toppan CSR Report 2009?
Received it from Toppan
Magazine Other ( Toppan website

 From a Toppan employee

Newspaper)

Q3. Please enter numbers of the topics that, in your opinion, fit the ratings in tables A and B(up to five each).
1. Special Report 1: Genotype Analysis System with SNP Chips (P. 8) 2. Special Report 2: Clinical Art (P. 10)
3. Compliance Promotion Activities (P. 26) 4. Information Risk Management (P. 28)
5. Assuring Product Safety and Quality (P. 32) 6. Providing Products and Services to Help Solve Social Issues (P. 34)
7. Establishing a Trusted Supply Chain (P. 36) 8. Cultural Contributions (P. 38)
9. Social Contributions/Community Contributions (P. 40) 10. Merit-based Personnel Policies (P. 42)
11. Realizing a Safe and Secure Working Environment (P. 43) 12. Leveraging Diverse Human Assets (P. 46)
13. Developing and Fostering Human Assets (P. 48) 14. Increasing Transparency and Distributing Profits Appropriately (P. 50)
15. Environmental Management Activities (P. 60) 16. Environmental Communication Activities (P. 62)
17. Mitigating Global Warming and Saving Energy (P. 64) 18. Resource Circulation (P. 65)
19. Pollution Prevention and Chemical Substance Management and Reduction (P. 66) 20. Approach to Logistics (P. 67)
21. Developing and Assessing Environmentally Friendly Products (P. 68)
22. Environmentally Friendly Printing Services (P. 70) 23. Conserving Biodiversity (P. 71)

A. On the content and quality of activities
1. Excellent
2. More effort required
3. PoorB. On the content and quality of the information provided
1. Excellent
2. Room for improvement
3. PoorQ4. Are there any social issues that you think Toppan should address more actively in the future?
(For example: environmental actions; efforts to adapt to the declining birthrate and aging population; support to developing
and impoverished countries; fair business activities; respect for basic human rights; consideration for workers; safety andsecurity for consumers; consideration, cooperation, and support for the communities surrounding the operational sites; etc.)

Thank you very much for your cooperation.
(We do not request any personal information that can be used to identify you as an individual.)

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