CSR Report 2019

Contents / Editorial Policy

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

DNP Group CSR Report 2019
CONTENTS
02
03
04

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

10

Report on Activities under Each Principal Theme
10 - Business to Contribute to SDGs Achievement
11 - Fair Operating Practices
14 - Human Rights and Labor

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

23 - Responsible Procurement

Scope of report

27 - Product Safety and Quality

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

Recognition from Society

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

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

April 1, 2018 to March 31, 2019 (FY2018)
However, reporting is not confined to this period regarding somecontents.

35 - Corporate Citizenship

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

Period covered by this report

22 - Environment

30 - Information Security

42

Editorial Policy

CSR sectionsof the website

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

All companies and divisions of the DNP Group

IssuedOctober 2019 (Next scheduled issue: September 2020)

DNP Group CSR Report1

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

Contents / Editorial Policy

Corporate Profile

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme(as of March 31, 2019)

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

Number of Employees: 38,051 (Consolidated)
10,757 (Non-consolidated)
Group Companies:

Tel: +81-3-3266-2111

Consolidated subsidiaries: 107
Equity-method affiliates:
18

Website:Established:https://www.dnp.co.jp/eng/
October 1876

Financial Data: (FY ending March 2019)
Net sales

Incorporated:

January 1894

Paid-in Capital:¥114,464 million

Operating income ¥49.8 billion (up 7.6% year-on-year)
Ordinary income ¥58.2 billion (up 14.3% year-on-year)
Net income attributable to shareholders of the parent		¥-35.6 billion

Business Segments:

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

Printing

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

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

Beverages

Recognition from Society

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

¥1,401.5 billion (down 0.8% year-on-year)

Percentage of
total sales

54.1 %“honto”
hybrid-type generalbookstore

Smart cards andrelated products

Ki-Re-i ID photobooth

28.2 %

Packaging

Curved resin glass

Exterior
materials forbuildings

13.7 %

Semiconductor
photomasks

Master templatefor nanoimprinting

Optical films
used fordisplays

4.0 %Soft drinks

DNP Group CSR Report2Contents / Editorial Policy

Corporate Profile

A Message from the CSREnvironment Committee Chairman

A Message from the
CSR-Environment
Committee Chairman
Satoru Inoue
CSR-Environment Committee Chairman, Managing Director

In recent years, global environmental and social issues, including those related toclimate change, poverty and human rights, have been causing a greater impact on
our society. In order to increase sustainability, the international community now
needs to make concerted efforts to resolve these issues. At DNP, we, as a memberof society, intend to fulfill our responsibility by resolving these issues and creating
new value that meets people’s expectations.
DNP regards corporate social responsibility (CSR) as maintaining the trust of allof our stakeholders. We have accordingly specified three responsibilities, namely
Value Creation, Integrity in Conduct and Transparency (Accountability). In order toyield maximum results from our corporate activities designed to fulfill these responsibilities, we are also enhancing corporate governance and reinforcing CSR
management.
Particularly in the area of CSR management, we clearly define Principal Themes
on which to focus. In establishing these themes, we naturally take into consideration our management strategies, business fields and business risks and conduct
comprehensive analysis while incorporating themes emphasized by the international community, such as the UN Global Compact, the Sustainable Development
Goals (SDGs) and the Guiding Principles on Business and Human Rights. We haveconsequently selected eight Principal Themes, including Human Rights and Labor,
Environment and Fair Operating Practices. For each theme, we have defined
a medium-to-long-term vision along with priority tasks for achieving the visionand their performance indicators, and have been promoting activities on an
ongoing basis.
In April 2019, we embarked on a fundamental reform of our personnel-related
systems. The aim is to establish an environment that allows employees, who areleading our new value creation efforts, to take more active roles. Through the

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

reform, we will design or rebuild various systems related to recruitment, development and promotion of excellent human resources in order to optimize and maximize our human capital while capturing overall trends in society. As a first step, weare reforming systems mainly targeting young employees and people with varying
careers both within and outside the Group. Moreover, we have been undertaking
initiatives to leverage our strength in diversity in carrying out business. For example,
we established DNP Business Partners Co., Ltd., a new Group company, inFebruary 2019 to further encourage active engagement of persons with disabilities
and promote the employment of diverse human resources.
With regard to risk management, we have constantly been reinforcing our initiatives concerning CSR procurement. DNP has formulated the DNP Group CSR
Procurement Guidelines to carry out business activities in an environmentally andsocially conscious manner throughout the entire supply chain and has been working with suppliers and other parties to ensure compliance with the guidelines. In
FY2018, we held a study session on CSR procurement for 220 managers in business divisions of DNP and Group companies in Japan, which are in charge of
placing orders to subcontractors. The session incorporated specific examples to
explain the latest trends in social issues and their impact on business activities aswell as the importance of engaging in CSR procurement within the entire supply
chain. The session was an opportunity to learn again the approach of DNP. We
have also extended the scope of our supplier survey conducted under the guidelines globally and have been checking for any risks in our supply chain.
Besides business activities that aim to resolve social issues, DNP intends toassume a proactive role as a corporate citizen. As an example, in response tonatural disasters that have been occurring on a more frequent basis recently, several organizations, including the CSR & Environment Department, Employee
Relations Department and the Federation of DNP Group Labor Unions, worked
together to revise our disaster support criteria to promote quick recovery andreconstruction. In the revised, new DNP Group Criteria for Conducting Disaster
Recovery and Reconstruction Support, we specify detailed criteria that factor in thescale of a disaster and relationship between each disaster-stricken area and DNP,
thereby establishing a structure to swiftly provide support to both areas andemployees affected by a disaster.
Going forward, DNP will continue to play a proactive role toward the resolution ofsocial issues while endeavoring to gain the trust from many people in society.

DNP Group CSR Report3Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

Three Corporate Responsibilities 〉〉 DNP Group Vision 2015 / Code of Conduct 〉〉 Risks and Opportunities 〉〉 CSR Management 〉〉 CSR Management: Principal Themes

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

Three Corporate Responsibilities

Responsibility 1

Responsibility 2

Responsibility 3

Value Creation

Integrity in Conduct

Transparency (Accountability)

The first and most fundamental responsibility of
a company to society is “providing new value tosociety.” We are working to link the offering ofproducts and services necessary to the sustainable
development of society to the growth of thecompany. Through our Business Vision, we willcontinue to provide new value which contributes tothe solution of social issues and meets people’s
expectations.

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

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

DNP Group CSR Report4Contents / Editorial Policy〉〉

A Message from the CSREnvironment Committee Chairman

Corporate Profile

Report on Activities under
Each Principal ThemeCSR at DNP

Recognition from Society

Three Corporate Responsibilities 〉〉 DNP Group Vision 2015 / Code of Conduct 〉〉 Risks and Opportunities 〉〉 CSR Management 〉〉 CSR Management: Principal Themes

CSR at DNPCorporate Governance and Internal Controls System

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

General Meeting of Shareholders
Board of Directors

Audit

Audit

Advisory Committee

Management Committee

Executive Directors

DNP Group Vision 2015 / Code of Conduct

ReportingCorporate Ethics Committee
Reporting(Autonomous implementation,
inspection, review,
improvement)

Check
Guidance
Training

CSR & Environmental Committee
Information Security Committee

Audit

Quality Assurance & Product Safety Committee

Guidance

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

BCM Promotion Committee

AssistanceCentral Disaster Prevention Council

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

Reporting

Audit Unit

Group companies

Audit
Auditing Department

TAIWA and Cooperation

Divisions(Oversight of internal controls)

Guiding
Principles

Open Door RoomInformation Disclosure Committee

Head OfficeBusiness
VisionAudit

Operating Units

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

DNP
Group Vision
2015

Accounting Auditors

Philosophy

Corporate Officers
in charge

Board of Statutory Auditors

Corporate

The DNP Group connects
individuals and society andprovides new value.

Audit
Guidance

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

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

Reporting
Coordination

To realize our Group Vision, DNP has established a structure for appropriate management decision-making, precise and speedy operational
implementation based on the decisions made and oversight and auditing of such implementation, which we continually seek to upgrade andimprove. To further reinforce that structure, we operate a system comprising nine directors, including three outside directors (as of June 2019).
Furthermore, based on the principles of Japan’s revised Corporate Governance Code effective as of June 2018, we are promoting TAIWA(“dialogue”) with various stakeholders, including shareholders and investors. Additionally, the nomination of director candidates and director
compensation are considered and reviewed by the Management Committee, with the advice and recommendations from the Advisory
Committee consisting of independent outside directors, and then discussed and determined by the Board of Directors.

DNP Group CSR Report5Contents / Editorial Policy〉〉

A Message from the CSREnvironment Committee Chairman

Corporate Profile

Report on Activities under
Each Principal ThemeCSR at DNP

Recognition from Society

Three Corporate Responsibilities 〉〉 DNP Group Vision 2015 / Code of Conduct 〉〉 Risks and Opportunities 〉〉 CSR Management 〉〉 CSR Management: Principal Themes

Risks and Opportunities

Value Creation

Based on its corporate philosophy, DNP aims to resolve social issues and continues to provide
new value that meets people’s expectations. In doing so, we will correctly recognize economic,
social and environmental issues and risks and respond to rapid changes in the business environment through activities directly linked to “value creation” and those serving as a “foundation
to support value creation.”

Visualization of supply chain information

Workforce shortage caused by loss of personnel
or difficulty in acquiring personnelInterests of and impact on stakeholders

EconomySociety

Changes in economic conditions, consumption
trends in Japan and overseas, currency
fluctuations and others

Society

Environment

Acceleration of technological innovations andintensifying development competition
Increase of large-scale cyber attacks
Emerging issues toward an information-driven society
Shift to a sharing economy

Growing disparity between urban and rural areas

Food loss, and food safety and security

Revisions to Japan’s energy policy

Response to climate change (mitigation and adaption)

Worsening marine pollution and ecosystem degradation

Shift to a circular economy

Depletion of natural resources

DNP is promoting activities to expand business opportunities
while regarding the recognized risks as the needs of society.
DNP aims to solve society’s challenges through business activities in the following four growth areas.

Knowledge and Communication

A future where people worldwide can expand
opportunities for safe and secure communications
and pass on and develop knowledge

Food and Healthcare

A future where people around the world no longer
have anxieties about their own lives and can lead
lifelong safe, secure, comfortable and high-quality lives

Lifestyle and Mobility

A future that safely and securely protects all living
spaces where people worldwide are mobile andlead their lives

Environment and Energy

Issues and risks related to thefoundation of corporate activities

Issues and risks related to thefoundation of DNP’s corporate
activities

Leakage or infringement of intellectual properties

Failure or disruption of information infrastructure

Reduced performance of or internal
control deficiencies of alliance partners

Failure or disruption of social infrastructure

A sustainable future that reduces environmental
impacts and enables people worldwide to co-exist
harmoniously with the earth

Foundation to Support Value Creation

Social/political turmoil and increase ofcountry risks
Declining reputation
Compliance violations
Loss of biodiversity

Environment

EconomyIssues and risks related to the foundation of
DNP’s corporate activities and business commercialization themes* Including the Sustainable Development Goals (SDGs), Global Reporting Initiative (GRI)
Guidelines, the UN Global Compact, ISO 26000, Dow Jones Sustainability Indices(DJSI), FTSE4Good Global Index and MSCI Global Sustainability Indexes

Reference: SDGs “wedding cake” illustration presented by Johan Rockström and Pavan Sukhdev– Turning risks into opportunities and contributing to
the achievement of the SDGs

Most important

Identification of Risks
We analyze global social issues and environmental, social andgovernance (ESG)* trends and broadly identify economic, social andenvironmental issues that represent risks. We then prioritize activities anddefine targets based on the interests of stakeholders and the impact onthem as well as the degree of importance to DNP.

Business Risks
Assumed from the
Perspective of the
SDGs

Expanding business opportunities

Growing water risk

Changes in supply-demand balance in terms ofraw materials procurement
Large-scale unauthorized use/leakage of data
Work environment issues
Flaws in quality check items for products
and services
Reinforcement of response to climate change
and natural disasters
Tightening and easing of legal and otherenvironmental regulations

Important

Measures for minimizing the impact ofassumed risks
For activities to serve as a “foundation to support value
creation,” DNP has selected the following seven Principal
Themes (representing material issues). Based on these
themes, we have been promoting initiatives for integrated
risk management and rotating the plan-do-check-act(PDCA) cycle.
Fair Operating Practices

Human Rights and Labor

Environment

Responsible Procurement

Product Safety and Quality

Information Security

Corporate Citizenship
Degree of importance to DNP

DNP Group CSR Report6

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

Three Corporate Responsibilities 〉〉 DNP Group Vision 2015 / Code of Conduct 〉〉 Risks and Opportunities 〉〉 CSR Management 〉〉 CSR Management: Principal Themes

CSR at DNP

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

Establishing Principal Themes
DNP defines Principal Themes to promote CSR activities. In establishing these
themes, we examine our management policies, business lines and strengths
against various social issues* from a multifaceted perspective and identify important, priority issues. In FY2017, to increase the effectiveness of our CSR activities,
we reviewed how DNP envisions our relationship with society and specified neweight Principal Themes, which represent matters we particularly value. (Refer topages 8-9.) With a view to enabling both society and DNP to grow in a sustainable
manner, we will continue to proactively tackle issues facing society and seek tomaintain the trust placed upon us by society.

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

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

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

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

DNP Group CSR Report7

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

Three Corporate Responsibilities 〉〉 DNP Group Vision 2015 / Code of Conduct 〉〉 Risks and Opportunities 〉〉 CSR Management 〉〉 CSR Management: Principal Themes

CSR at DNP

CSR Management: Principal Themes
Value creation

DNP’s principal themes andSDGs covered by the themes
Business to Contribute to SDGs Achievement

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

Foundation to support value creation

Fair Operating Practices

Performance indicators to monitor the progressin achieving the vision and the targets

Medium-to long-term vision

We help to maintain and develop orderly, freeand competitive markets based on laws andsocial ethics and by always remaining fair andequitable.

Human Rights and Labor

We place human dignity first and foremost andrespect diversity in the culture, nationality, creed,
race, ethnicity, language, religion, gender, gender
identity, sexual orientation, age and ways ofthinking of all persons. We accordingly respect
working styles suited to the diversity of ouremployees and make efforts to create a safe,
healthy and vibrant working environment.

FY2018 results(1) S ales of environmentally conscious
products and services(DNP contributes to achieving the SDGs
through all its business activities. DNP
set the above as one of the clear
indicators to monitor progress.)(1) Achieve sales of 600 billion yen
by FY2020.

(1) 603.2 billion yen(1) Number of meetings of the Corporate
Ethics Committee(1) Hold meeting once a month (12times a year).

(1) Once a month(12 times)(2) Bases holding Autonomous Corporate
Ethics Training(2) Achieve 100% (covering all
applicable bases).

(2) 100% (105 bases)(1) Number of women in managerial
positions(1) Double the number of women in
managerial positions by the endof March 2019 compared with thenumber (96) in February 2016.

(1) 2.05 times the(2) Ratio of employees with disabilities(2) Achieve the ratio above 2.0% in
FY2017 and above 2.2% in
FY2018 onwards.

(2) 2.17%(3) Annual paid leave taken(3) Achieve an increase over theprevious fiscal year.

(3) 52.4% (50.8% in
FY2017)(4) Frequency rate of lost workday injuries(4) Keep the rate below 0.2.

(4) 0.33

number (196)* In FY2019, we will consider the establishmentof a system concerning human rights due
diligence.

Environment

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

→ Please refer to page 15, ”Environmental Activity Targets and Results,” in the “Environmental
Management Activities” section of the DNP Group Environmental Report 2019.

DNP Group CSR Report8

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

Three Corporate Responsibilities 〉〉 DNP Group Vision 2015 / Code of Conduct 〉〉 Risks and Opportunities 〉〉 CSR Management 〉〉 CSR Management: Principal Themes

CSR at DNP

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

Foundation to support value creation

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

Product Safety and Quality

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

Information Security

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

Corporate Citizen

Performance indicators to monitor the progressin achieving the vision and the targets

Medium-to long-term vision

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

FY2018 results(1) A verage score of DNP Group CSR Procurement
Guidelines survey on key suppliers(1) Achieve average score of 90 points by
FY2030.

(1) 85 points in Japanand 81 points
overseas(2) Percentage of overseas business locations conducting
DNP Group CSR Procurement Guidelines surveys(2) Achieve 100% (covering all overseas
business locations).

(2) 100%(3) Percentage of key suppliers conforming to DNP Group
Guidelines for Procurement of Paper for Printing andConverting(3) Achieve 100% by FY2030.

(3) 92%(1) N umber of serious accidents* caused by our products(1) Achieve zero accidents.

(1) Zero accidents(2) Percentage of newly developed products undergoingproduct safety and risk assessment(2) Achieve 100%.

(2) 100%(184 products)(1) N umber of information security complianceassessments conducted(1) Achieve 100% (covering all businessdepartments and group companies).

(1) 100%(85 departments
and companies)(2) Number of inspections and instructions on divisions
implementing priority measures for personal information
security performed by executive officers in charge(2) Achieve 100% (covering all applicable
bases).

(2) 100%(63 bases)(3) Participation rate of information security education andtraining(3) Achieve 100% (covering all applicabledivisions).

(3) 100% (Approx.
41,000 persons)(4) Number of security vulnerability tests for publicly open
websites(4) Achieve 100% (covering all applicablewebsites).

(4) 100% (260systems tested)(1) N umber of external participants for DNP’s original
future generations development programs(1) Achieve an accumulated total of 7,500
persons from FY2015 to FY2019.

(1) Accumulated total:
6,435 persons(2) Number of local volunteer activities held each year to
support reconstruction of disaster-stricken regions,
including Tohoku and Kumamoto(2) Constantly conduct activity three times
a year until FY2019.

(2) Three times (twice
in Tohoku and oncein Kumamoto)* Including cases where a defect in our products jeopardizes
the user’s life, causes serious bodily harm or inflicts serious
damage on the user’s property (other than the product itself)

DNP Group CSR Report9Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

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

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

→ For details of this Principal Theme, please refer to the DNPGroup Integrated Report 2019.

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

SDGs Covered by the Vision

Performance Indicators to Monitor the Progress in Achieving the
Vision and Activity Results
Performance indicator(1) Sales of environmentally conscious
products and services

Target(1) Achieve sales of 600
billion yen by FY2020.

FY2018 result(1) 603.2 billion yen(DNP contributes to achieving the SDGs through all its business activities. DNP set the above as one of the clear
indicators to monitor progress.)

DNP Group CSR Report10Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Fair Operating Practices
Medium-to
long-term vision

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

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

SDGs Covered by the Vision

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

Targets

FY2018 results(1) Number of meetings of the Corporate
Ethics Committee*1(1) Hold the meeting once amonth (12 times a year).

(1) O nce a month(12 times)(2) Bases holding Autonomous
Corporate Ethics Training*2(2) Achieve 100% (covering
all applicable bases).

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

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

We use corporate ethics as a basis of performance evaluation and promotion decisions made under the personnel
evaluation system and strive to develop human resources who live up to society’s expectations with sincerity.

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

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

(4) Corporate ethics training

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

(5) Open Door Room

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

(6) Supplier Hotline

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

DNP Group CSR Report11Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Fair Operating Practices
Social Issue Recognized by DNP

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

DNP ʼs Efforts for the Resolution of Social Issues

Initiatives to Ensure Compliance with the Law andSocial Ethics
DNP has formulated the DNP Group Code of Conduct, which serves as conduct
guidelines to be observed by all employees in carrying out corporate activities, andhas included “Compliance with the laws and social ethics” as one of the 10 tenets

specified under the code. While these 10 tenets remain the same, we revised “howemployees should act” stipulated in the code in April 2019.
The revision added two themes, namely “creating an open workplace culture”
and “attaching utmost importance to safety and health.” These are essential incultivating workplace and corporate cultures that allow active engagement of
employees with confidence, pride and a sense of security through true TAIWA(“dialogue”). We have been conveying the importance of striving toward theseaction themes to all employees by using various means, including distribution ofa leaflet that explains the revision. Moreover, as an effort to ensure the proper
functioning of the organizational self-cleansing capability throughout the entire
DNP Group, this leaflet also provides information on our Open Door Room,a whistle-blower system for employees to report or seek advice on any misconduct
when it cannot be resolved within their department or just by consulting theirsuperiors or colleagues.

Anti-Bribery Initiatives
As recent corporate activities expand beyond regional and national boundaries,
regulations concerning bribery are being tightened in each country in order toensure a fair and open competitive market. DNP had and has always prohibited
employees from seeking profit through bribery and other dishonest means andstipulated so in the Code of Conduct. To further reinforce our efforts in this area,
the Board of Directors passed a resolution in December 2017 to establish an
anti-bribery structure within the DNP Group. Following the resolution, we
announced the DNP Anti-Bribery Policy both in and outside DNP in March 2018.
We have since been engaging in various ongoing initiatives to turn the policy into
specific practices.

DNP Group CSR Report12

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Fair Operating Practices
Anti-bribery structure
Dai Nippon Printing Co., Ltd. and its Group companies in and outside Japan haveformulated and implemented the DNP Group Anti-Bribery Regulations and DNPGroup Anti-Bribery Guidelines.

Efforts for instilling and establishing anti-bribery practices(1) Provided relevant e-learning training to 18,028 employees in and outside Japan.
(2)	Included prevention of bribery as a topic in the Autonomous Corporate Ethics
Training* provided by each organizational unit to instill and establish anti-bribery
practices among all employees.
* An initiative to instill and establish corporate ethics more firmly throughout the DNP Group. The heads of eachbusiness division and Group company serve as lecturers themselves to explain to their staff the issues andcountermeasures relevant to their respective divisions in an easy-to-understand manner using their own words.

(3)	At a base in Singapore, the responsible head office division held an anti-bribery
briefing session for managers and responsible persons of Group companies inSoutheast Asia.

Checking the status of implementation (anti-bribery self-check)(1)	Conducted an inspection at each applicable base* using our anti-bribery selfcheck sheet. The inspection included a check on the occurrence or nonoccurrence of related incidents, the number of applications made and thenumber of education and awareness-raising activities conducted.
* Divisions within the head office, business divisions and Group companies in and outside Japan(2)	Conducted interviews on the status of implementation at each overseas Group
company during the anti-bribery briefing held at a base in Singapore.

DNP Group CSR Report13

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Human Rights and Labor
Medium-to
long-term vision

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

We place human dignity first and foremost andrespect diversity in the culture, nationality, creed,
race, ethnicity, language, religion, gender, gender
identity, sexual orientation, age and ways ofthinking of all persons. We accordingly respect
working styles suited to the diversity of our employees and make efforts to create a safe, healthy andvibrant working environment.

Performance indicators

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

Targets

FY2018 results(1) N umber of women in
managerial positions(1) Double the number of women in
managerial positions by the end of March
2019 compared with the number (96) inFebruary 2016*.

(1) 2.05 times thenumber (196)(2) R atio of employees withdisabilities(2) Achieve the ratio above 2.0% in FY2017
and that above 2.2% in FY2018 onwards.

(2) 2.17%(3) A nnual paid leave taken(3) Achieve an increase over the previous fiscal
year.

(3) 52.4% (50.8% in
FY2017)(4) F requency rate of lost
workday injuries(4) Keep the rate below 0.2.

(4) 0.33* Targets in FY2019 onwards:
1. Achieve the ratio of women in managerial positions (section chief or above) of 7%.
2. D
 ouble the number of women in managerial positions and leader-level positions compared with the number at theend of February 2016 (from 430 to 860).

Initiatives and Systems to Support Active Roles of Diverse Human
Resources

SDGs Covered by the Vision

For increasing our corporate capabilities to resolve social issues and create newvalue that meets people’s expectations, and to support employees working toward
these goals, we launched a fundamental reform of personnel systems in FY2018.
(Refer to page 15.)DNP Group CSR Report14

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Human Rights and Labor
DNP ʼs Efforts for Value Creation through Innovation

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

Fundamental Reform of Personnel Systems for
Accelerating Value Creation
For increasing its corporate capabilities to resolve social issues and create newvalue that meets people’s expectations, and to support employees working toward
these goals, DNP launched a fundamental reform of personnel systems in April
2019. Through the reform, we will design or rebuild various systems related torecruitment, development and promotion of excellent human resources in order to
optimize and maximize our human capital while capturing overall trends in society.
《 Feature of the Reform》

As a first step, we carried out a system reform mainly targeting young employees
and people with varying careers both within and outside the Group.

Structure to Promote Occupational Safety and Health
DNP stipulates its basic policy on and a structure to promote a safe and healthy
workplace environment in the DNP Group Safety and Health Management
Regulations.
Our safety and health activities are being promoted under the policy that safety
takes precedence over everything else. The DNP Group Safety and Health Liaison
Council oversees and leads relevant activities of the entire Group, while the responsible committee of each business division and Group company and the Safety and
Health Committee of each workplace create specific action plans. In this way, DNP
and its employees are making concerted efforts to increase the level of safety andhealth throughout the Group.
In order to instill the said policy more firmly throughout the Group and foster asafety culture through TAIWA (“dialogue”) and education, we have also formulated
the DNP Group Safety and Health Charter and decided to initiate All-DNP activities
involving all employees in FY2019. (Refer to page 19.)

1.	Employment-related systems to proactively incorporate outside
perspectives• Introduction of fixed-term employment: We established system to enable excellent outside human resources having highly advanced knowledge and skills inparticular fields of expertise to play active roles at DNP.
• Establishment of return-to-work system: We newly launched return-to-worksystem to rehire, under certain selection criteria, former DNP employees toencourage them to bring into DNP the abilities and new perspectives they havecultivated outside DNP.
• Starting to permit certain side jobs or dual employment: We started giving
permission to employees to engage in certain side jobs or dual employment,
provided that these jobs will not interfere with their work at DNP and will involve
various types of innovation that will lead to new value creation by DNP.

DNP Group CSR Report15

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Human Rights and Labor
2.	Revising promotion-related systems for the creation of newvalue• Drastic increase in young employees’ bonus and wage levels: The revision isintended to encourage young employees to invest in themselves or for education
to refine their own sensitivity.
• Establishment of an ICT professional system: We newly established a system tosecure and appropriately promote ICT professionals. As an example, we started
providing an allowance to project managers under the system.
• Rebuilding wage and promotion systems by job type and region: We enhanced
our promotion system to factor in job ratings in the labor market and facilitate
personnel promotion in a way to realize a required function within DNP whileconsidering job duties and skill levels. We also increased financial support for job
transfers involving relocation.
• Revision to a personnel evaluation system and promotion of TAIWA-based
human resources development management: We introduced a system to evaluate actions of employees, business processes and details of human resources
development while linking goals of our business with goals of individuals.

and their subordinates, placing more weight on the nurturing of subordinates,
reducing time spent on meetings and reducing the workload of employees tocreate internal documents.
Fundamental reform of personnel systems, including establishment of a new ICT
professional system (news release)

3.	Promoting and supporting flexible work styles for effective timeand space utilization• Introduction of telecommuting: By improving and utilizing our IT environment, we
promoted the fusion of various work styles, such as teleworking, working at asatellite office and mobile working, and went ahead with drastic enhancement of
required measures.
• Promotion of work style reform: We have been implementing various measures
every three years since 2009. The current, fourth phase is mainly focusing onchanging the way managers work and creating a workplace environment with
better productivity for the ultimate goals of accelerating value creation. We will
work toward innovation by always encouraging TAIWA between managers

DNP Group CSR Report

Link

https://www.dnp.co.jp/news/detail/1192275_1587.html

Social Issue Recognized by DNP

Japan’s ranking in the Global Gender Gap Index:
110th place/149 countries(The Global Gender Gap Index 2018, the World Economic Forum)

According to the World Economic Forum, Japan’s ranking in the Global
Gender Gap Index in 2018 was 110th place among the 149 countries.
The global index is developed using data in four categories, and Japanranked low in all of the four categories of Health and Survival (down fromthe first place in the previous year to the 41st), Economic Participation(117th), Educational Attainment (65th) and Political Empowerment (125th).
Against this backdrop, Japan enforced the Act on Promotion of Women’sParticipation and Advancement in the Workplace (“Women’s Participation
Promotion Act”) in 2016 with the aim of promoting the active role ofwomen in their work life and to realize an enriching and vibrant society
where women working on their own free will and those wishing to do socan demonstrate their individualities and abilities to the fullest.

16

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Human Rights and Labor
DNP ʼs Efforts for the Resolution of Social Issues

2. Double the number of women in managerial positions and leader-level positions
compared with the number at the end of February 2016 (from 430 to 860).

Promoting Diversity-Related Measures Leading to Value
Creation《 Various Initiatives》

With a view to creating new value by respecting and leveraging diversity, we havebeen promoting diversity under the policy of developing diverse human resources,
fostering a corporate culture to encourage the active participation of diverse humanresources and realizing diverse work styles.
《 Major Initiative in FY2018》

We provided e-learning training consisting of three parts (basic, practical and
TAIWA) to all employees to foster a correct understanding of diversity.

Promoting the Active Role of Women
One pillar of our activities is promoting the active role of women, and we have been
implementing relevant measures in accordance with an action plan formulated
under the Women’s Participation Promotion Act. With the aim of continuously
producing female employees who will assume leadership roles and involve in organizational decision-making, we have been providing systematic training to increase
the number of actively engaging female employees at each job level.
《 Action Plan》

First phase (April 2016 to March 2019) target:
Double the number of women in managerial positions compared with the number(96) in February 2016. ⇒ Achieved
Second phase (April 2019 to March 2022) targets:
1. Achieve the ratio of women in managerial positions (section chief or above) of 7%.

Initiatives to increase the number ofwomen in managerial positions• Next-generation female leaders training (for female
section chief candidates)
Female participant (left) receiving advice
We provide training to female employees whomfrom an executive-level employee
we expect to assume leadership roles. They
receive training to become next-generation leaders through simulation of management duties. Upon the completion of the training, participants are certified by
DNP as a mentor and will take the role of providing career consultation to young
male and female employees under a mentor system.
• Diversity promotion leaders training (for general managers and those in equivalent
positions)
We provide training to develop a promotion leader of the Diversity Promotion
Committee of each business segment. During the training, participants identify
factors that hinder diversity and gain knowledge and the skills necessary to planand implement solutions. They will also serve as a mentor for participants of thenext-generation female leaders training. Through these promotion leaders, we
aim to foster a corporate culture that allows women and other diverse humanresources to fully demonstrate their abilities.

Initiatives to continuously produce female employees assuming
leadership roles• Career training for young female employees (for mid-level female employees)
This training cultivates career awareness among mid-level female employees,

DNP Group CSR Report17

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Human Rights and Labor
who are expected to assume managerial positions or leadership roles in the
future, to enable them to design a work and life plan on their own.
• Career development support training (for supervisors having female subordinates)
We provide training for supervisors to gain skills to link what DNP expects andwhat a female subordinate aspires for her medium-to long-term career, promote
her growth appropriately through work and hold effective dialogue for this purpose.
As a result of these initiatives, theNumber of Female Employees in Managerial Positions andLeader-Level Positions
number of female employees in
Leader-level positions
Managerial positions (As of the end of each FY)
managerial positions increased to700
686
196, 1.84 times the number at the
601
600
552
end of FY2015, while the number
486
of those in leader-level positions
500
432
490
rose to 490, 1.3 times the number
400
443
also at the end of FY2015.
415
300
379
In FY2018, we expanded the341
scope of our mentor development
200
training from female employees to
100
196
158
all employees. We also set up a
137
107
91
0
certification renewal system that
FY2014FY2015FY2016FY2017FY2018now requires mentors to receive
training before certification renewal instead of just attending an annual certified
mentors follow-up meeting, and at the same time, extended their term from one
year to a maximum of three years.

Employment of Persons with Disabilities
At DNP, each business division and Group company has worked individually torecruit and retain persons with disabilities and support their active roles. With aneye to further facilitating their active participation and promoting employment ofdiverse human resources, we established DNP Business Partners Co., Ltd., a
100% subsidiary, on February 1, 2019.
Going ahead, in addition to recruitment by individual business divisions andGroup companies, we intend to create opportunities of active participation formany more persons with disabilities by promoting related cross-sectional operations within the Group as a business of the new company.
《 Feature of DNP Business Partners》

Rather than hiring persons with disabilities suited for pre-determined positions, DNP
リーダークラス Partners seeks to create opportunities for each of them to get the best
Businessfromhimself or herself by finding positions that match their types of disabilities.
管理職• Recruitment
The company carries out recruitment activities in collaboration with various organizations, including public job-placement offices, local job training centers andspecial needs schools, and promotes employment regardless of types of disabilities (physical, mental or intellectual).
• Assignment and skills development
The company assigns persons with disabilities to positions in mail center andfood store operations (including company cafeterias) based on their aptitude,
which allow each of them tofully demonstrate individual
strengths, and conducts skills
development.
• Promotion and welfare
Persons with disabilities, whohave undergone three-monthtrial employment and become

DNP Group CSR Report

Corporate brochure18

Snapshot of a workplace

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Human Rights and Labor
regular employees, receive the same benefits as other DNP Group employees interms of flexible work styles, such as shorter working hours (six hours or more/day) and shorter working days (four days or more/day), and in terms of promotion and welfare. In this way, the company is setting up a variety of systems
designed for normalization, enabling them to lead independent, purposeful lives
with rewarding work, while giving due consideration to their disabilities.

Social Issue Recognized by DNP

Annual global economic loss resulting from workrelated accidents and illnesses:
2.99 trillion dollars (International Labour Organization)

DNP ʼs Efforts for the Resolution of Social Issues

Formulating the DNP Group Safety and Health Charter for
the Realization of a Safe and Healthy Workplace Culture
DNP has promoted Group-wide safety and health activities under the policy thatsafety takes precedence over everything else. Ensuring the safety of manufacturing
sites, in particular, requires an overarching approach encompassing all businessactivities from sales and planning to general affairs and employee relations. Under
this belief and toward the realization of a safe and healthy workplace culture, we
formulated the DNP Group Safety and Health Charter in April 2019.

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

DNP Group CSR Report

DNP Group Safety and Health Charter

Safety takes precedence over everything else.
1. We place maximum priority on human life and act accordingly.
2. We value the mental and physical health of each.
3. Safety and health originate from TAIWA (“dialogue”) and education andthrough the nurturing of human resources.
4. Strong commitment to observing rules serves to maintain safety.
5. Safety increases through wisdom and persistent efforts for improvements.
6. A good working environment fosters health.
7. We achieve safety and health through strong top leadership and All-DNP
determination involving all employees.

19

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Human Rights and Labor
VOICE Words from Top Management

Yoshinari Kitajima
President, Dai Nippon Printing Co., Ltd.
The phrase, “All-DNP determination involving all employees,” includedin the DNP Group Safety and Health Charter reflects my aspirationthat all persons working for the DNP Group become fully aware ofsafety and health, think about the two from their respective standpoints and take action
accordingly. Safety in the true sense of the word is only possible if we thoroughly rethink,or fundamentally change in certain instances, the way we do business. This includes
how we sell our products, meet delivery deadlines, assign work and accept orders. I
also believe that all employees working with good mental and physical health will generate the total strength of the DNP Group.
Under the charter, I intend to promote initiatives, including setting aside time for
TAIWA and education, under the strong leadership of each department head and withengagement of all employees to realize a safe and healthy workplace culture.

Formulating Basic Plans and Promoting Occupational
Safety and Health Initiatives
DNP is promoting safety and health activities by formulating the Basic Plan forPrevention of Industrial Accidents and the Basic Plan for Health Maintenance andPromotion every three years. These medium-term plans reflect social trends andJapan’s industrial safety and health initiatives as well as our past activity results andissues facing DNP.

Efforts for prevention of industrial accidents
In our Third Basic Plan for Prevention of Industrial Accidents (FY2015 – FY2017),

the first priority task was to eliminate accidents involving machinery at manufacturing sites, and we made Company-wide efforts accordingly. These efforts led toincreased implementation of equipment safety measures, and coupled with thesteady 5S (Sort, Set in Order, Shine, Standardize and Sustain) activities undertaken
by each workplace, had enabled us to draw up a clearer roadmap for our accident
prevention activities. In our Fourth Basic Plan started in FY2018, we continue ourequipment safety activities and improve work processes in order to increase oursafety level both in terms of “hardware” and “software.”
Additionally, in response to an increasing trend of fall accidents among senior
employees, we have been promoting preventive activities through the “STOP! Fall
Accidents Project.”
As another effort, we have been providing DNP’s original safety education
programs, which utilize our know-how accumulated in the past activities, for developing and appropriately assigning human resources to support our activities.

Efforts for maintaining and promoting physical and mental health
Under our Third Basic Plan for Health Maintenance and Promotion (FY2015 –FY2017), we mainly promoted initiatives for enhancing our health education andimplementing mental health-related measures. As for the promotion of physicalhealth, we have been encouraging each employee’s voluntary engagement throughhealth-related events and educational programs. Efforts include providing nutritional and exercise guidance and offering healthy menus at company cafeterias.
In the area of mental health, we have been conducting self-care, line-care andother relevant education, centered around stress checks introduced in 2006, andalso providing tools for employees to check their mental health status at anytime.
Each workplace has also been making their own efforts based on the results ofworkplace analysis and in conjunction with our work style reform activities* toprovide a better working environment and improve employees’ work engagement.
* Activities launched in 2009 with the aim of increasing the value added to work and enhancing personal lives througheffective utilization of time resource

DNP Group CSR Report20

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

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

Report on Activities under Each Principal Theme

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

DNP Group CSR Report

21

Recognition from SocietyContents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

Recognition from Society

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

Report on Activities under Each Principal Theme

Environment
Medium-to
long-term vision

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

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

FY2018 results→ Please refer to page 15, ”Environmental Activity Targets and Results,” in the “Environmental
Management Activities” section of the DNP Group Environmental Report 2019.

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

→ For details of this Principal Theme, please refer to the
DNP Group Environmental Report 2019.

SDGs Covered by the Vision

DNP Group CSR Report

Targets

22

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Responsible Procurement
Medium-to
long-term vision

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

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

Performance indicators

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

SDGs Covered by the Vision

Targets

FY2018 results(1) A verage score of DNP Group CSR
Procurement Guidelines survey on key
suppliers(1) Achieve the averagescore of 90 points by
FY2030.

(1) 85 points in Japanand 81 points
overseas(2) P ercentage of overseas businesslocations conducting DNP Group CSR
Procurement Guidelines surveys(2) Achieve 100%
(covering all overseas
business locations).

(2) 100%(3) P ercentage of key suppliers conforming
to DNP Group Guidelines for
Procurement of Paper for Printing andConverting(3) Achieve 100% by
FY2030.

(3) 92%

Internal Structure and Management
In the CSR-Environment Committee led by a managing director, DNP has confirmed its commitment to conducting responsible procurement that takes into
account human rights and other social and environmental aspects. We have formulated necessary guidelines and have been making a range of efforts to increase
the effectiveness of these guidelines.
Specifically, we have formulated the DNP Group CSR Procurement Guidelines,
Linkand to cover topics of significant importance, developed individual guidelines,
including the DNP Group Guidelines for Procurement of Paper for Printing andConverting Link and the DNP Group Green Procurement Guidelines for Chemical
Substances. Link

DNP Group CSR Report23

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Responsible Procurement
To increase their effectiveness, the dedicated CSR department and purchasing
and other related departments work closely together and go through the plan-docheck-act (PDCA) cycle by providing staff education, holding briefing sessions for
suppliers, conducting periodic supplier surveys and feeding back the survey results
as well as conducting interviews and the exchange of opinions.

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

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

DNP ʼs Efforts for the Resolution of Social Issues

Reinforcement of CSR Procurement Management
With supply chains becoming increasingly
globalized and complex, a stronger callhas been placed on companies tocounter risks in such areas as the environment, human rights and labor and corruption. As DNP operates both in and outside
Japan, we recognize that it is importantfor us to evaluate and mitigate the impact
An internal study session for departments in charge ofof our business activities on the internaplacing orders to business subcontractors was held.
tional as well as local communities from a
global viewpoint and have been implementing specific initiatives based on thisrecognition.
Since 2006, DNP had undertaken initiatives jointly with suppliers for responsible
procurement that gives due consideration to social and environmental aspects. In
March 2017, we fully revised these initiatives and formulated the DNP Group CSR
Procurement Guidelines. At the same time, we started reinforcing our responsible
procurement management and extended its scope to suppliers of all our overseas
business locations. In order to upgrade our structure to ensure uniform implementation across the entire global supply chain, we again extended the scope in 2018
to Group companies conducting procurement on their own. As another effort tosteadily implement responsible procurement, we have held an internal study session for divisions actually engaging in such procurement, including purchasing
divisions and other divisions in charge of placing orders to business subcontractors, and provided education to 220 managers and other staff members.

DNP Group CSR Report24

Contents / Editorial Policy〉〉

A Message from the CSREnvironment Committee Chairman

Corporate Profile

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Responsible Procurement
Under this new management structure, we conducted a DNP Group CSR
Procurement Guidelines survey on 379 key suppliers and 1,397 business subcontractors in FY2018 to check their level of compliance. The overall average scores ofthe 240 suppliers in Japan and the 139 suppliers outside Japan were 85 points
and 81 points, respectively, and there was no significant imbalance among the
average scores of the individual themes, such as human rights and labor and theenvironment.
In the future as well, DNP will make continuous efforts to improve compatibility
with social expectations throughout the entire supply chain.

detrimental to the sustainable development of society. According to the guidelines,
we are undertaking business activities in an appropriate manner jointly with eachsupplier and have confirmed that the said minerals used in our electronic devices
business do not come from the conflict region. In FY2018, we again performed thecheck and determined that minerals that may facilitate conflict or human rights
infringement are not used in our products or included in the raw materials we use.

Average Scores of DNP Group CSR Procurement Guidelines Compliance Level Survey

(point)
Supplier

OverallaverageHuman
CSRrights andmanagement
labor

Product
Safety andEnvironment safety andhealthquality

Fair
Information
Socialtransactions
security
contribution
and ethics

240 in Japan

85

84

89

88

81

88

89

85

75

139 outside Japan

81

76

84

86

80

89

84

81

70

Our Response to Conflict Minerals
Some minerals (gold, tin, tantalum and tungsten) originating from the Democratic
Republic of Congo and surrounding countries (conflict region) are used to financearmed opposition groups, prompting fears that the trading of these minerals is
exasperating conflict and the abuse of human rights by these groups. To counterthe situation, Section 1502 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act requires companies listed on the U.S. Stock Exchange to file reportson the use of these four minerals originating from the conflict region every year.
DNP does not have an obligation to report directly to the U.S. authorities
regarding the matter but has included responsible procurement in our DNP GroupCSR Procurement Guidelines to avoid getting involved in these issues, which are

DNP Group CSR ReportSocial Issue Recognized by DNP

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

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

25

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Responsible Procurement
DNP ʼs Efforts for the Resolution of Social Issues

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

DNP Group CSR Report26

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Product Safety and Quality
Medium-to
long-term vision

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

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

Performance indicators(1) N umber of serious accidents* caused
by our products

FY2018 results(1) Achieve zero accidents.

(1) Zero accidents(2) Achieve 100%.

(2) 100%(184 products)* Including cases where a defect in our products
jeopardizes the user’s life, causes serious
bodily harm or inflicts serious damage on theuser’s property (other than the product itself)

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

SDGs Covered by the Vision

Targets(2) Percentage of newly developed
products undergoing product safety
and risk assessment

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

DNP Group CSR Report27

Contents / Editorial Policy〉〉

A Message from the CSREnvironment Committee Chairman

Corporate Profile

Report on Activities under
Each Principal ThemeCSR at DNP

Recognition from Society

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

Report on Activities under Each Principal Theme

Product Safety and Quality
Flow of Management

DNP Group Product Safety Policy Link
DNP Group Quality Policy Link

Designing products
Designing manufacturing processes
Formulating the Quality and Product Safety Standards

DNP Group Quality Assurance and Product Safety Management Structure

Setting up a system for ensuring quality and safety[DNP Group]
Quality Assurance andProduct Safety Committee

Changing product design
Improving the manufacturing and inspection processes
Revising the Quality and Product Safety Standards
Improving the system for ensuring quality and safety

Administration office[Business Division]
Quality Assurance andProduct Safety Committee

Quality
Assurance andProduct Safety
Management
Structure

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

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

Administration office

Administration office

Each plant

Each plant

Performing risk assessment on product lineup
Evaluation and validity check of products required tooffer high reliability and durability

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

To satisfy the requirements of corporate customers and the marketplace, wehave also acquired certification in relevant fields, including ISO 9001 certification,
an international standard for quality management, and Food Safety System
Certification (FSSC) 22000 in the field of food packaging. Other certification we
have acquired in the information management field includes ISO/IEC 15408 certification for information technology (IT) security, “PrivacyMark” certification for protection of personal information, ISO/IEC 27001 (Information Security Management
System – ISMS) certification for information security and ISO 22301 (BusinessContinuity Management System – BCMS) certification.
Acquisition of ISO 9000 series certification Link
Food safety and quality certification management systems: Acquisition of ISO
22000/FSSC 22000 and British Retail Consortium (BRC) certification Link
Quality management system for the automotive industry: Acquisition of ISO/TS
16949 certification Link

DNP Group CSR Report28

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Product Safety and Quality
Efforts for Ensuring Product Safety

DNP ʼs Efforts for the Resolution of Social Issues

Ensuring product safety requires continuous efforts. We perform a product safety
risk check on all families of products twice a year, in addition to a check conductedduring product development. In case a risk check results in a change of productdesign or an improvement in manufacturing technology in order to ensure safety,
we compile such a change and improvement along with details into a document
and use it as our product safety standards.
We have also been providing relevant training to employees since 1994. In
FY2000, the training was converted into e-learning programs targeting all employees. Over the three years since 2016, a total of 25,058 employees have received
training through these e-learning programs.

DNP’s Efforts for Preventing Quality-Related Misconduct

Social Issue Recognized by DNP

Many scandals involving quality-related misconduct
by Japanese companies (2018)

DNP strives to enforce legal compliance and ensure quality and safety and has
been implementing sufficient risk management against legal violations and qualityrelated misconduct as an effort to prevent such cases from occurring.
In response to the successive occurrence of quality-related misconduct cases
in Japan, DNP has been working to prevent similar incidents from occurring within
DNP. As specific efforts, we have been reinforcing our quality management system
by performing a validity check led by the head office, along with receiving ISO andother external certification and diagnosis, and providing guidance and instructions
for corrective action to each business division.
Additionally, we provide education on an ongoing basis for each division tailored
to its roles, for reinforcing our quality management structure, communicating thespecifications agreed upon with corporate customers in order to ensure the structural reinforcement and for instilling Group-wide rules, including ensuring thereliability of inspections.

As in FY2017, a number of quality-related corporate misconduct cases,
such as inappropriate execution of legally required inspections and falsification of quality data, were again uncovered in succession and madeheadlines in various media in FY2018.
Many misconduct cases were found in the automotive and construction fields, and they gave rise to concern over a possibly jeopardizing
impact on human life and became a social issue.

DNP Group CSR Report29

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Information Security
Medium-to
long-term vision

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

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

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

Performance indicators

Targets

FY2018 results(1) N umber of information security
compliance assessments conducted(1) Achieve 100% (covering all
business departments andgroup companies)(1) 100%(85 departments
and companies)(2) Achieve 100% (covering all
applicable bases)(2) 100%(63 bases)

SDGs Covered by the Vision(2) Number of inspections and instructions
on divisions implementing priority
measures for personal information
security performed by executive
officers in charge(3) Participation rate of information
security education and training(3) Achieve 100% (covering all
applicable divisions)(3) 100%(Approx. 41,000
persons)(4) Number of security vulnerability tests
for publicly open websites(4) Achieve 100% (covering all
applicable websites)(4) 100%(260 systems
tested)Structure to Promote Management
Since establishing the Office for the Protection of Personal Information in 1999,
DNP has continued to strengthen our information security measures in response tochanges in the security environment in Japan and overseas. We established theInformation Security Committee and Information Security Headquarters, which are

DNP Group CSR Report30

Contents / Editorial Policy〉〉

A Message from the CSREnvironment Committee Chairman

Corporate Profile

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Information Security
supervising organizations for Company-wide management to provide inspection
and guidance for business segments and Group companies. The executive officer
in charge of the head office serves as the committee chief.
Also, Information Security Committees have been established in each of thebusiness entitles as departments and Group companies, in which under the direction of the committee chief and person responsible for managing personal information (together with the heads of each operating unit), they handle issues such as
education, security area measures and information security measures, as well as
taking responsibility for inspections. Information Security Committees have been
set up at a total of 14 overseas Group companies since 2015 (covering 64% of
overseas Group companies).
DNP Group’s Basic Policy on Information Security Link
DNP Group Privacy Policy Link
Framework for Information Security Management System
Head Office

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

Establishment of a management system

Operational Divisions and Group Companies

DNP Group Information Security Committee

Information Security Committee

Committee Chief, Manager for the Protectionof Personal Information, Committee Member

Committee Chief, person responsible for managing personal
information (general managers of operations and presidents ofGroup companies)
Person responsible for inspections
Information Security Promotion Office Manager

Information Security Headquarters

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

Information Security Manager
Person responsible for education

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

Person responsible for security area measures
Person responsible for public relations
Person responsible for information security measures

DNP Group CSR Report31

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

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

Physical and TechnicalMeasures easures in divisions handlingMpersonal information
Various measures are in place at the Data
Processing Offices handling personal
information and other important data,
including controls for entering/leaving abuilding (room) using biometrics to ensurethat unauthorized persons cannot accessthe facilities, surveillance cameras thatkeep improper behavior in check andpocket-free uniforms for on-site workers so that data cannot be taken off-site. We
also separate the locations where information is written to media, employ checks
using metal detectors, implement and verify access logs, and reduce the numberof employees engaged in the work of writing to recording media. These and othermeasures serve to further strengthen control.

Measures at operational bases using IC card employee IDs
DNP is promoting a variety of information security measures using IC card
employee IDs. We are increasing the number of operational bases with a security
gate system in which employees need the IC card to enter and leave the building
or factory. We are also adding a function enabling the integrated management of amulti-purpose machine usage logs by the manager on a server by requiring
authentication via IC card when printing.

Initiatives for the safe delivery of information
DNP has introduced a tool to prevent the erroneous transmission of email withsuch functions as destination identity verification, attachment file verification, mandatory encryption and the temporary holding of outgoing mail. The aim is to prevent information leaks through erroneous transmission when employees send email
outside the Group.
In addition, we are operating a system when transferring the personal data ofclients via a network.

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

DNP Group CSR Report32

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Information Security
Promoting Information Security Measures in the Industry

DNP ʼs Efforts for the Resolution of Social Issues

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

Measures to Counter the Dark Web (Combat Illicit Use of
ID/Password, etc.)

Social Issue Recognized by DNP

Increase in Illegal Dealings on the Dark Web
The dark web refers to Internet content that cannot be searched for using
Google, etc., and requires specific software to access. It is often used forillegal dealings that include forged passports, counterfeit money in different currencies, stolen personal information, ID/password combinations,
illegal hidden cameras and information on the vulnerability of Internet
sites. In particular, list-type attacks have become a social problem inrecent times in which ID/password combinations are stolen to fraudulently
access a site.

DNP has started running an integrated security log analysis system known as SIEM
(Security Information and Event Management) that enables swift response to asecurity incident to prevent damage from spreading through automatic and efficient
detection of suspicious server communication as well as quick examination of logs
and response in the event of a security incident. DNP also conducts organizedactivities through DNP-CSIRT (DNP Group Computer Security Incident Response
Team: 3 full-time workers and 17 with concurrent posts) to share information withexternal organizations such as the Nippon CSIRT Association and enhance its levelof defense. The organized activities being undertaken by DNP are listed below.
l Devise and implement cyber security measuresl Research information security technology inside and outside the Company andintercept malicious site communicationl Make available information on site vulnerability required to enable emergency

response and verify the status of measuresl Provide instruction on technological measures in an emergency such as infectionor spread of a virus
DNP has personnel seconded to the Information-technology Promotion Agency,
Japan (IPA), an independent administrative organization, and participates in longterm education at IPA’s Industrial Cyber Security Center of Excellence with the aimof improving the skill level of its human resources in the field of cyber security.

DNP Group CSR Report33

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Information Security
Social Issue Recognized by DNP

Swiftly Strengthening Supply Chain Security
Cyber attacks often target the most vulnerable areas of the supply chain
such as subcontractors or subsidiaries, with the perpetrators employing
diverse techniques to ultimately ensure a successful attack on public
institutions or large organizations. Overseas, attacks on the supply chain
have led to leaks of large volumes of credit information in some cases.
Since DSP’s security measures alone are insufficient to deal with thesethreats, it is necessary to strengthen cyber security throughout the
supply chain.

manage to infiltrate the system, and “outbound measures” that prevent informationfrom being illicitly transmitted outside the system. DNP promotes Security By
Design, whereby protective functions are built into a computer system from thedevelopment stage, as well as measures for counteracting new threats such as
periodic inspection of systems already in use to check for vulnerabilities. Based on
this expertise, the DNP Group company Cyber Knowledge Academy Co., Ltd.
provides educational programs for training personnel to counter cyber attacks.
Some 101 DNP employees have completed the program.

DNP ʼs Efforts for the Resolution of Social Issues

Responding to Targeted Attacks (Multilayered
Countermeasures/Training on Email Attacks, etc.)
Now that cyber attacks are becoming increasingly artful and complex, it is nolonger sufficient to rely solely on conventional border protection measures aimed at
not allowing threats to enter a company’s computer systems.
DNP is constructing multilayered countermeasures based on unique security
solutions that combine—in addition to the conventional “inbound measures” that
address things like system vulnerabilities and keeping out viruses—“internal measures” for preventing and containing damage in the event that an intruder does

DNP Group CSR Report34

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

Recognition from Society

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

Report on Activities under Each Principal Theme

Corporate Citizenship
Medium-to
long-term vision

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

We contribute to society by resolving social issues,
conducting volunteer activities and through culturalactivities as we look to deepen our relationshipwith society as a good corporate citizen thatcoexists with society.

Performance indicators

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

SDGs Covered by the Vision

Targets

FY2018 results(1) N umber of external participants for
DNP’s original future generations
development programs(1) Achieve an accumulated
total of 7,500 persons
from FY2015 to FY2019.

(1) Accumulated total:
6,435 persons(2) N umber of local volunteer activities heldeach year to support reconstruction ofdisaster-stricken regions, including
Tohoku and Kumamoto(2) Constantly conduct theactivity three times a year
until FY2019.

(2) Three times (twice
in Tohoku and oncein Kumamoto)

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

Five Social Contribution Themes

Environmental
conservation

DNP Group CSR Report

35

Contribution to
local communities

Future generations
development

Arts and culture

Humanitarian aid

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Corporate CitizenshipSocial Issue Recognized by DNPApproximately 40% of the world’s people do nothave access to education in the language they
speak or can understand.
(Education for People and Planet, The Global Education Monitoring Report 2016 (UNESCO))

According to a report published by UNESCO (United Nations Educational,
Scientific and Cultural Organization), education and lifelong learning are
critical components for long-term economic growth. It is estimated thatapproximately 40% of the world’s population do not have access to
education in they language they speak or can understand, however, while
one in every six of the world’s people aged 15 or over are thought to lack
the reading and writing skills necessary for daily life. For these reasons,enhancing literacy, the foundation of education and lifelong learning, isconsidered to be a vital key to drive the sustainable development of society.

children in developing countries by providing them with the opportunity to accessbooks, an area that we have been deeply connected with since our founding, DNP
has been participating in the Campaign to Deliver Picture Books since FY2017.
The campaign, run by the non-governmental organization Shanti Volunteer
Association (SVA), sends Japanese picture books, affixed with seals bearing translations into the local language, to children in developing countries. In FY2018, 132
employee volunteers from Group companies across Japan once again heeded thecall to take part in the project with DNP paying half of the participation fee.
In August 2018, DNP hosted a workshop jointly with SVA that was available to
the general public as part of the Shinjuku Creators Festival held in Shinjuku, Tokyo
to broaden the activity to society. Some 72 parents with children took part in theworkshop in which they learned about the conditions facing children in developing
countries throughout Asia and helped make the picture books with translations.
In February 2019, DNP Group employees volunteered for an event at the SVA
Office in Sendagaya, Tokyo to send the picture books donated throughout the year
to the developing countries. A total of 16,716 books, including 132 donated by
DNP, were given to children in developing countries and refugee camps.

DNP ʼs Efforts for the Resolution of Social Issues

Contribution to Local Communities and Humanitarian Aid articipation in a campaign to deliver picture books to increasePthe literacy rate of children in developing countries

The workshop was attended by a large numberof children during summer holidays.

Many children around the world have never even seen a picture book due to conflict, poverty or other factor. Based on a desire to help boost the literacy rate of

DNP Group CSR Report

36

DNP employee volunteers helped send thepicture books to developing countries.

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Corporate Citizenship
Picture Books Donated by DNP in FY2018
Burmese (For Myanmar, Myanmar (Burma) refugee camps, Myanmar immigrants)

45 books

Karenic language (For Myanmar (Burma) refugee camps)

44 books

Khmer language (For Cambodia)

43 books

Total

132 books

Social Issue Recognized by DNP

39.3% of high school graduates in Japan leave theirjob within three years of graduating(Ministry of Health, Labour and Welfare, 2018)

VOICE Outside Opinion

Eri Yamamoto,
Secretary General, Shanti Volunteer Association
Having access to good quality picture books is very important forchildren forced to live in insecurity due to poverty, disaster or conflictto respect their desire to live and dignity as human beings. A single
picture book made by people at DNP can open the door to the future for a child andlead to the development of human resources critical to the development of that country.
Schools that have received picture books from Japan and embraced reading havereported seeing positive changes in the children. Efforts to promote reading have been
incorporated into the educational policy of countries as a result, with Shanti being asked
to take part in the establishment of such policy.
In Japan, volunteers who help with the books grow an interest in the conditions of
the adults and children in the countries they are being sent to. This provides the impetus
to ponder why others live in poverty and why educational assistance is hard to come by.
It also encourages people to reexamine their own lifestyle and country. The children who
receive the books get a good insight into the support of the Japanese people throughthis campaign. It would be difficult to achieve the Sustainable Development Goals(SDGs) without this mutual understanding. Grassroots activities like this one that DNP is
assisting with have the power to realize big goals.

DNP Group CSR Report

According to a paper titled “The status of job separation for new graduates” released by the Ministry of Health, Labour and Welfare in 2018,
64.1% of junior high school students, 39.3% of senior high school students, 41.5% of junior college students and 31.8% of university students
who graduated in March 2015 left their job within three years. That means
one in every three new employees leaves their job within three years.
The top reason for both male and female junior and senior high school
students leaving their job was an ill fit (Male: 33.2% (top ranked answer),
Female: 25.5% (3rd ranked answer/Multiple answers).
Accordingly, DNP believes in the importance of students envisioning
their desired career and providing them with the opportunity to experience
the work process while still in school and to hone their technical andprofessional skills that will be of benefit once they enter society.

37Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Corporate Citizenshippackaging based on unique ideas that would likely sell well in actual commercial
settings, thus providing useful reference for DNP.
DNP will continue contributing to the development of talented human resources
who can lead the next generation through projects such as this.

DNP ʼs Efforts for the Resolution of Social Issues

Future Generations Development
 roviding the opportunity for new business education to highPschool students through commercial education consortium tokyo
Commercial Education Consortium Tokyo was established in July 2018 so theTokyo Metropolitan Government Board of Education could provide teaching support in conjunction with corporations and the local community in order to increase
the opportunity for commercial high school students to learn about business froma practical perspective. DNP, in working with the consortium, provided lessons on
business basics to around 210 first-year students at Tokyo Metropolitan FourthCommercial High School on four occasions between July 2018 and March 2019.
The idea behind this project was to offer the chance for business education to highschool students, thereby helping to develop the next generation. It also has apositive impact on DNP’s business activities as the Company gains a valuable
insight into the preferences of the younger generation.
In the lessons provided by DNP, students experienced the workflow for developing a candy product, from devising a plan, including packaging, through to its
sale, with the theme built around DNP’s packaging business. The students visited
DNP to observe and experience its product packaging facilities, while an expert
from DNP’s package planning department
went to the school to impart knowledge. This
gave the students the knowhow required forplanning and developing packaging for a
product. In the final lesson, participants gavea presentation on the candy they devised forhigh school students and its packaging. A
An expert from DNP’s package planning visits
number of the presentations revealed product the school to give a lesson.

DNP Group CSR Report

VOICE Outside Opinion

Makoto Hirose,
Tokyo Metropolitan Board of Education
Currently over 97% of students advance to high school in Japan,
requiring us to build unique schools that can cope with increasing
diversification in ability, aptitude, hobbies, interests and course. On theother hand, approximately 40% of young people who graduate high school and findwork in a company full of expectation about the future end up leaving their job within
three years. One reason for this may be that the things learned in school aren’t very
useful in society, and in particular in the business activities of a company. Commercial
Education Consortium Tokyo run by the Tokyo Metropolitan Government seeks toprovide a solution to this problem. The initiative aims to maximize the technical andprofessional skills of students studying at commercial high schools in Tokyo that havebeen reorganized to offer business courses focused on business education befitting thetimes in cooperation with corporations and the local community. This provides theopportunity for self-development and a forwarding-looking perspective.
The Tokyo Metropolitan Government has also stated that “cultivating talent for the
future” will be an important pillar of policy under The Action Plan for 2020 and will bepositioned as a strategy contributing to the achievement of Goal 4 of the United Nations
Sustainable Development Goals (SDGs), namely providing quality education to everyone.
In FY2018, the first year of the plan, DNP’s efforts to take the initiative in the development of young commercial high school students with flexible sensibility generated resultsthat exceeded expectations. We hope to continue receiving the support and cooperation of DNP for this project as we believe it has the power to create the value necessary
for students to live through these uncertain times and realize a sustainable Tokyo that
leads the world.

38

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

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

Report on Activities under Each Principal Theme

Corporate CitizenshipSocial Issue Recognized by DNPApproximately 61.77 million people globally werevictims of natural disasters in 2018.
(United Nations Office for Disaster Risk Reduction (UNDRR), 2019)

It is thought that risk of a natural disaster such as tsunami or flood isincreasing around the world alongside acceleration in global warming. As
one example in Japan, a great deal of damage was caused by torrential
rains that lashed the west of the country following Typhoon No. 7 in July
2018. DNP constantly thinks about what we can do to aid in the rehabilitation of disaster-affected areas and will continue to take steps that provide support toward recovery and revitalization.

mental support based on these standards ever since. A series of natural disasters
in 2018, notably the Northern Osaka Prefecture Earthquake and the torrential rainsin Western Japan, caused significant damage to citizens and even DNP Group
employees. This provided the impetus for DNP to revise its standards in November
2018 based on the belief that it is critical to be able to offer swifter support. The
new “DNP Group Criteria for Conducting Disaster Recovery and Reconstruction
Support” set detailed guidelines in consideration of such factors as the scale ofdisaster, devastated region and connection with the Company, making it possible
to respond more quickly in the area and for affected DNP employees. The revisions
were made to the standards jointly by labor and management, led by the CSR
Division and Employee Relations Division, and in cooperation with the theFederation of DNP Group Labor Unions.

DNP ʼs Efforts for the Resolution of Social Issues

Humanitarian AidSupporting recovery from a natural disaster
Strengthening Our Framework for Disaster Recovery and Reconstruction Efforts
Repeated natural disasters around the world in recent years have led to unprecedented damage. Recovering from damage and building towns and communities
that can continue to thrive require the assistance of corporations to ensure thesustainable development of society. In 2010, DNP formulated standards for support following damage caused by a natural disaster, and has been offering funda-

DNP Group CSR Report39

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

Report on Activities under
Each Principal ThemeCSR at DNP

Recognition from Society

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

Report on Activities under Each Principal Theme

Corporate Citizenship
VOICE Outside Opinion

Takeharu Takahashi,
Secretary General, Japan Platform
I’d like to extend my warmest appreciation for all of the support DNP
has given to Japan Platform (JPF). JPF cooperates and coordinateswith NGOs, the financial sector and government to enable a framework for providing quick emergency support following an outflow of refugees or a natural
disaster. We conducted a variety of support activities in 2018 due to the series of disasters, and received donations from DNP to help deal with the huge damage caused by
the torrential rains in Western Japan and the earthquake and tsunami that struck
Sulawesi Island in Indonesia. In the case of the latter, we were told that DNP held aunique fundraising drive by offering local specialties connected with the disaster-affectedarea in company cafeterias and donating a portion of the proceeds. This assistancehelped our support efforts on the ground while also no doubt serving to increase theinterest of DNP employees in the affected area. I greatly admire the DNP Group as acorporate citizen viewing the challenges of disaster recovery and sustainable development as your own and taking such decisive action. I sincerely hope JPF can work
together again with the DNP Group to support disaster-affected areas and peoples.

Emergency and Continued Support for Major Disasters
As a good corporate citizen operating in harmony with society, DNP assumes themission of providing emergency support to victims of major disasters both in andoutside Japan. We also provide continued support aimed at rehabilitation following
a disaster such as the Great East Japan Earthquake, where the extent of thedevastation was immense.

Nobuhisa Iida, former Secretary General of Japan
Platform (right) receives a donation to assist withrecovery following the torrential rains in WesternJapan in 2018 from the head of the DNP Group
Union (left) in Beppu.

Clean-up activity at disaster recovery public housing

Support results in FY2018
Date
implemented

Disaster

Recipient and details

Amountdonated¥5 million

November 2018

Torrential rains in Western Japan (2018)

Japan Platform (Disaster support funds)

December 2018

Earthquake on Sulawesi Island, Indonesia

Japan Platform (Disaster support funds)¥3 million

January 2019

Earthquake on Sulawesi Island, Indonesia

Japan Platform (Donation of proceeds from special menus
in company cafeterias*)¥350,648*This fundraising activity with employee participation involved the serving of local specialties connected with thedisaster-affected area in company cafeterias and donating a portion of the proceeds for use in reconstruction andsupport programs. In addition to times of emergency, DNP sometimes employs this type of campaign on a long-termbasis, mainly procuring the food from the disaster-stricken area as a form of economic support.

DNP Group CSR Report40

Contents / Editorial Policy〉〉

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

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

Report on Activities under Each Principal Theme

Corporate CitizenshipDateimplemented

Disaster

Recipient and details

No. of employee
participants(incl. family)

July 2018

Great East Japan
Earthquake

Local volunteer activities to support reconstruction (10th occasion)[Regional development activities]

30 (4)

October 2018

Kumamoto
Earthquakes

Local volunteer activities to support reconstruction (3rd occasion)[Agricultural support and improvement of landscape on the summit of Mt. Aso]

20 (1)

November
2018

Great East Japan
Earthquake

Local volunteer activities to support reconstruction (11th occasion)[Development of community facilities and cleaning of disaster recovery public
housing]

16 (1)

April 2019

Great East Japan
Earthquake

Chance for Children received donations from sales of special menus atcompany cafeterias[¥1 million donated for learning support, covering the financial cost of learning
for five elementary school children]

40,000 meals(FY2017)

VOICE Outside Opinion

Yoko Takahashi,
President, Japan Philanthropic Association
Our association has been planning and running volunteer activities
supporting disaster-affected areas that DNP Group employees takepart in since 2013. We have already received the assistance of over
300 employees and their families. We often receive words of surprise and appreciationfrom local residents who witness DNP employees putting their body, head and heart fully
into the work. Actively interacting with the local people gives them great encouragement
as they face uncertain living conditions. I hope more and more people get involved in the
campaign by expanding the special menus so the changing needs of the people can be
met. I also hope that DNP continues to deepen its understanding of disaster-affectedareas, discover new challenges and broaden its support. I have high expectations that
DNP will keep implementing and developing its activities involving employees so that the
DNP Group becomes known as a strong, kind corporate citizen.

DNP Group CSR Report

41

Recognition from SocietyContents / Editorial Policy

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

Recognition from Society
Inclusion in SRI Indexes (As of July 2019)
DNP is included in the world’s major socially responsible investment (SRI) indices.

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

FTSE4Good Global Index

ETHIBEL Investment Register

FTSE Russell, a wholly owned subsidiary of
London Stock Exchange Group, evaluatescompanies from around the world and selects
the shares of those that excel in terms ofenvironmental, social and governance (ESG)
performance for inclusion in this index.
DNP has been selected for 19 consecutive
years, since 2000.

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

MSCI ESG Leaders Indexes

Morningstar Socially Responsible
Investment Index

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

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

42

Contents / Editorial Policy

Corporate Profile

A Message from the CSREnvironment Committee Chairman

CSR at DNP

Report on Activities under
Each Principal Theme

Recognition from Society

Recognition from Society
Inclusion in ESG indices (As of July 2019)
DNP was selected for inclusion in all four of the ESG indices employed by Japan’s Government
Pension Investment Fund (GPIF), the only company in the printing industry with such a distinction.
In the fiscal year ended March 2019, DNP was newly selected for inclusion in two other indices.

FTSE Blossom Japan Index

MSCI Japan Empowering Women Index

A comprehensive index that considers every
aspect of ESG, this index was designed
to measure the performance of Japanesecompanies that are doing an excellent job of
responding to ESG-related concerns.
This index included 155 companies as ofJuly 2019.

MSCI constructed this index by calculating various
types of gender diversity scores based on female
employment data disclosed in line with the Act on
Promotion of Women's Participation and Advancementin the Workplace. The scores are calculated for
MSCI Japan IMI Top 500 Index constituents, and thecompanies with the best scores in each industry groupare selected for inclusion in the index.
This index included 215 companies as of July 2019.

THE INCLUSION OF Dai Nippon Printing IN ANY MSCI INDEX, AND THE USE OF
MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOTCONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF Dai Nippon
Printing BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE
EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOSARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

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

GEI is a stock index developed in 2016 by U.S.-based Bloomberg
L.P. Companies selected for inclusion in this index have been deemed
outstanding in terms of gender equality in such areas as action guidelines,
statistics, personnel system, product development and information
disclosure. A total of 230 companies (14 in Japan) were selected for theindex from 36 countries in the fiscal year ended March 2019.

This index consists of companies selected foroutstanding ESG performance from among
the constituents of the MSCI Japan IMI Top
500 Index.
This index included 251 constituent
companies as of July 2019.

Semi-Nadeshiko
The Ministry of Economy, Trade and Industry of Japan (METI) and theTokyo Stock Exchange (TSE) jointly conduct the Nadeshiko Brand
Initiative for the purpose of selecting and publicizing listed enterprises thatencourage women’s success in the workplace. DNP has been granted“Semi-Nadeshiko Brand” designation, a distinction developed in 2016
for enterprises just below the Nadeshiko Brands that also evaluates thecompanies from the viewpoint of whether or not they have potential for
future growth.

DNP Group CSR Report43Dai Nippon Printing Co., Ltd.
CSR & Environment Department
1-1, Ichigaya Kagacho 1-chome, Shinjuku-ku,
Tokyo 162-8001, Japan
Tel: +81-3-3266-2111
URL: https://www.dnp.co.jp/eng/
Issued: October 2019 ©2019. DNP