Toyo Seikan GroupCSR Report2020

CSR Office, Toyo Seikan Group Holdings, Ltd.
Osaki Forest Bldg., 2-18-1 Higashi-Gotanda, Shinagawa-ku, Tokyo, 141-8627 Japan
Tel. +81-3-4514-2303

Published in October 2020

Management Philosophy of Toyo Seikan Group

Open Up and Be Inspiredheoyo eikanroup contributes to the solution of social issues through its

business activities.
ll our employees are a are of their social responsibility in daily operations

Management Policy

Editorial Policy/Report Profile ...................................................... 2

We will constantly create new and innovativevalues, aspire to achieve a sustainable society andcontribute to people’s happiness.

Management Philosophy of Toyo Seikan Group/
Fundamental Principles of Toyo Seikan/
Table of Contents . . . . . . . . . . . . . . . . ................................................................ 3

CreedCompany Profile . . . . . . . . . . . ................................................................ 4

We will honor dignity and always strive to be fair andunbiased in every way.

Top Message . . . . . . . . . . . . . . . . . ................................................................ 6

e create the values of

pen

p and

e nspired,and aim to become a company that contributes toachieving a sustainable society.

Materiality Topics . . . . ................................................................. 8

All of us will fully demonstrate our own strengths andexpertise, and contribute to social prosperity while we growand thrive as an individual, a corporation or a group.

and act accordingly.
hrough these efforts,

Table of Contents

CSR Management of Toyo Seikan Group ........ 10

ENVIRONMENT

VisionOur Commitment to Global Environment ....... 12

We will aim to become the Group which can provide uniqueand innovative technologies and products that will meetglobal expectations.

SOCIETY
Quality Assurance System ........................................... 18
Human Rights . . . . . . . . . . . .............................................................. 20
Together with Our Employees .................................. 21

Fundamental Principles of Toyo Seikan

Social Contribution Activities ..................................... 26

In 1933 our founder Tatsunosuke Takasaki clearly stated our founding
philosophy as the fundamental principles in the handbook “The Missionof Toyo Seikan,” which was distributed to shareholders, employees, andpartners in the industry. Since then, we have fulfilled our duties based on
the principles. This is the origin of CSR activities of the Toyo Seikan Group.

GOVERNANCE
Corporate Governance ................................................... 28
Compliance . . . . . . . . . . . . . . . . . . ............................................................. 29
Risk Management . . ............................................................. 31

1. Our aim is to achieve results that bring happiness to
mankind.

Toyo Seikan Group Companies ................................. 32

2. We shall work not just for profit, which is merely a resultof our business activities and not the main purpose.

2

Editorial Policy

Report Profile

The Toyo Seikan Group (the “Group”) promotes CSR management basedon its “Management Philosophy” under a holding company system.
This report was created with the aim to clearly communicate the Group’s
CSR vision and activities to its stakeholders. For your better understandingof our specific CSR activities, we classified our achievements in fiscal 2019(the year ended March 2020) into environmental, social and governancecategories and described them in the corresponding sections of the report.
Please visit our website for the information not covered by this report, such as
our CSR-related policies, systems and data.
Our stance on CSR is based on sincere communication with our
stakeholders and actions originating from such communication. We would
appreciate your opinions and feedback.

Companies covered by the Report:
Domestic and overseas group companies including
Toyo Seikan Group Holdings, Ltd.

https://www.tskg-hd.com/en/csr/

Reference Guideline:
ISO26000 (Guidance on Social Responsibility)

3. All of us shall have a spirit of service to fulfill our
respective duties and demonstrate the spirit as the entire
organization, striving for the prosperity of our business
partners in the same way as for our own success.

Period covered:
April 1, 2019 to June 30, 2020
Numerical data:
April 1, 2019 to March 31, 2020
Published in:
October 2020 (Next issue to be published in
October 2021)

Please refer to the relevant websites for details of activities at group companies described below.
(Reports marked with an asterisk (*) are available only in Japanese.)■ Toyo Seikan Co., Ltd.: Environmental Website*■ Toyo Glass Co., Ltd.: Environmental Activities*■ Toyo Kohan Co., Ltd.: CSR*

■ Mebius Packaging Co., Ltd.: Our Commitment to Environment■ Tokan Kogyo Co., Ltd.: CSR■ Toyo Aerosol Industry Co., Ltd.: Environmental Policy*■ Nippon Closures Co., Ltd.: Environmental and Social■ TOMATEC CO., LTD.: The Measure for Environment

Activities*

Toyo Seikan Group CSR REPORT 20203

Company ProﬁleToyo Seikan Group Holdings, Ltd.
Founded:Representative:
Capital:Head Office:Number of
Employees:

June 25, 1917

Financial Data (Consolidated)
Net sales

Net sales by business segment

Ichio Otsuka,
President and Representative Director

Functional materials related

4.7%

Operating profit

850 (Billion yen)

Real estate related 1.0%

3.2

800

Steel plate related

8.0%

447 (19,307 on a consolidated basis)
as of March 31, 2020

4.0(%)

Others 3.1%

11,094 million yen
Osaki Forest Bldg., 2-18-1 Higashi-Gotanda,
Shinagawa-ku, Tokyo 141-8627, Japan

ROE

40 (Billion yen)

30

793.1

785.2
Packaging related

83.3%

2.0

31.8

790.8
25.4

750

27.2
0

20

0.1
700

10

-2.0

0

0

-4.0

Business Overview
Packaging business

Steel plate related
business

2017

Functional materials
related business

2019

2018

(FY)

Earnings per share

2017

2018

(%) 100

Net Assets

0

58.2
-2.71

Manufacturing and sales of
packaging-related machinery andequipment including container
manufacturing equipment and filling& seaming equipment.

20 (Billion yen)

13.7

60

14.3

15.3

10

58.4

400

40

200

20

5

-121.96

-150

0

2019

2018

(FY)

Cash flow

Real estate related
business

58.6

624.5

-75

2017

Machineryandequipment

(FY)

15

649.8

Manufacturing and sales of materials
with various functional properties,
such as aluminum substrates formagnetic disks, functional films for
optics, glaze, micronutrient fertilizers,
pigments and gel coats.

2019

80

720.2
600

Manufacturing and sales of various
steel plate materials used inevery phase of daily life, such as
materials for cans, electrical andelectronic components, automotive
and industrial machinery parts,and construction and consumer
electronics.

2018

Equity Ratio

800

103.052017

Research & development costs

1,000(Billion yen)

75

(FY)

Net assets & equity ratio

150 (YEN)

Manufacturing and sales of various
packaging containers that support
people’s daily lives, such as metal
cans, plastic containers, closures,
glass bottles, paper containers andaerosol products.

2019

3.8

2018

2019

Investingactivities

2018

2019

(FY)

Net sales by region

Financing
activities

100

Asia (Thailand, China, Malaysia, etc.)

7.4%

19,500

Others (U.S., etc.)

7.6%

78.6
50

2017

20,000 (Persons)Operatingactivities

59.2

0

(FY)

Number of employees

150 (Billion yen)

Other businesses

0

2017

55.2

19,30719,00018,9500

Logistics

Trucking and warehousing services
mainly for group companies.

4

Leasing of office buildings andcommercial properties.

Manufacturing and sales ofautomotive press dies, machineryand appliances, hard alloys andagricultural-use materials; sales of
petroleum products; and non-life
insurance agency business.

18,500-50

Japan18,419

-25.2

-36.4

-53.8

-30.5

2017

2018

-40.2

85.0%

18,000

-58.2

-100

0

2019

(FY)

2017

2018

2019

(FY)

*Since the Company has adopted the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, issued on February 16, 2018) for its
consolidated financial statements from fiscal 2018, figures for fiscal 2017 are retrospectively adjusted according to the currently adopted standards.
Toyo Seikan Group CSR REPORT 20205

Top Message

Address ongoing social Issues andseek to look ahead to social changes
through our management based on
corporate social responsibility

Our commitment to theMateriality of Toyo SeikanGroup
As part of our CSR-based management under theManagement Philosophy established in 2016, we have been
engaged in our Eight Material Issues, specific priority issues
we have identified, across the group.

Compliance, which underlies all of our activities
I believe that thorough compliance is the foundation of
all activities.
In 2019, our operating company Toyo Seikan received
a surcharge payment order from the Japan Fair Trade
Commission regarding the violation of the Antimonopoly
Act. To ensure that this will never happen again, we havebeen implementing group-wide preventive measures,
including the establishment of compliance framework for the
Antimonopoly Act, the enhancement of bribery prevention,and deeper understanding of the Group’s Code of Conduct
and Guidelines of Behavior. The Group’s founder Tatsunosuke
Takasaki used to say that technicians who make canned
food must deserve the trust of people since the products’
contents cannot be seen at all from the outside. In doing
business, we must engrave these words on our mind andnever forget them.

Addressing environmental issues

President and Representative Director
Toyo Seikan Group Holdings, Ltd.

Developing a transparent
organization to addressrisks under the initiativeof Risk Management
Administration Oﬃce
In publishing our CSR Report 2020, we would like toexpress our deepest sympathy to those who are sufferingfrom the coronavirus disease and to those who are indifficulties amid the pandemic. We would also like to express
our sincere gratitude to medical professionals and people
working dedicatedly in this situation. Making maximum efforts
to prevent infection, we as the entire group also continue toperform our duties to support your daily lives.

6

In the past the Toyo Seikan Group suffered damage to its
facilities caused by natural disasters such as the Great East
Japan Earthquake, the flooding in Thailand and the torrential
rains in Western Japan. In October 2019, we established the
Risk Management Administration Office to provide against
various risks, including natural disasters which frequently
occur worldwide and information security issues. The newdivision is also playing a central role in responding to theongoing COVID-19 pandemic, collecting information andimplementing our business continuity plan (BCP).
Recognizing that an inappropriate initial response poses a
significant risk, the office always bases itself on the principle:“Share bad information as quickly as possible.” I believe thishas been working well to allow the Group as a whole to takeprompt action.

Regarding the contribution to the environment, the marine
plastic pollution is an urgent issue to address, following
climate change. Plastic containers such as PET bottles
have been widely used in the food and beverage industries
to help deliver safe and reliable products. Meanwhile, mass
production and consumption models are reaching their limits,and there is an irreversible trend towards the production andconsumption that are well-balanced with the environment.
In order to create a sustainable society, we will contributeto the solution of the environmental issues through ourefforts, including the “3Rs” initiatives, the development andintroduction of alternative materials, and cooperation withexternal partners.

Be more sensitive to future changes, provide packaging
and services that meet the needs of society
We have expertise and knowledge, both tangible andintangible, which have been accumulated for over 100 years
since founding of the Group. To utilize them for innovation
to provide solutions to social issues, we ourselves should
refine our sensitivity to anticipated changes in society. As
one of such efforts, we launched the Future Design Lab in
our Singapore branch office in April 2019. Singapore is thecenter of Asia, where emerging nations are growing, and theplace where information is being exchanged across borders.

In this region, we will seek to detect signs of changes beyond
the common ideas, aiming to integrate such insight with ourexisting knowledge.
We also initiated the OPEN UP! PROJECT, a projectfor innovation and product development from a long-term
viewpoint to redesign the Group for the next 100 years.
Demanding a quick return would force us to focus moreon existing businesses and would result in a lack of longterm development activities and eventually, a lack of future
opportunities for the next generations. We must prevent suchsituations.
In addition, diversity is important in designing new products
and services. As for packaging containers, for instance,
removing little inconvenience in daily living is required—including caps easy to open for the elderly with weakerhand strength, and containers suitable for sorted collection
from the viewpoint of consumers sensitive to effective useof resources. We need colleagues with different perspectives
in order to find a clue out of the findings made in daily life
and to use it for business. To that end, we will continue todevelop our organization and corporate culture that allow
diverse members to demonstrate their different abilities.

Governance to bring out abilities of operating companies
Our group management is aimed at bringing out thestrength of individual operating companies. To achieve thisgoal, management needs a dialogue with employees in
the respective workplace. Since taking office, I have visiteddomestic and overseas operating companies to talk withcolleagues working there. Recently I began to send mymessage twice a month to all group members, hoping tofoster the sense of unity within the Group. We also invited
a new outside director who had served as an executive
at other companies. With critical opinions from the newboard member, management is developing a framework forbusiness plan formulation and investment decision-making.

Be a business group that
opens up the future withnew technologies
I expect that the key words 20 to 30 years from now willbe “food and health,” “environment” and “digital information.”
Responding to new social issues such as climate change
and digitalization while maintaining our founding principles ofdelivering safe, reliable and high-quality products and services,
we need to be aware of expectations for us and become agroup that opens up the future with new technologies. Thisis the way for us to implement our management philosophy:
We will constantly create new and innovative values, aspireto achieve a sustainable society and contribute to people’s
happiness.
Toyo Seikan Group CSR REPORT 20207

Materiality Topics

Materiality
Materiality

More Sustainable
Supply Chain

Mebius Packaging Takes Part in a Joint R&D
Project for Recycling Plastic Containers

With demand for businesses to contribute to the solution of global environmental issues,ebius ackaging, together ith sahi asei orporation and ion orporation,
has been engaged in an
pro ect to help create a ero aste society.
OutlineSolar Power System Introduced in Thailand

In October 2019, Toyo Seikan (Thailand) introduced a solar
power generation system, the first for the Toyo Seikan Groupin Thailand. The new system of 374 kW capacity with 1,134
solar panels installed on the roof is expected to generate 530
MWh of electricity per year, reducing carbon emissions byapproximately 280 tons annually. We will continue to introduce
renewable energy as a measure against global warming.

Progress

The three companies have jointly conducted R&D
activities based on a research program led by New Energy
and Industrial Technology Development Organization(NEDO), “R&D on material recycling processes to achieve
an advanced plastic recycling,” which began in July 2019.
Under this project, Mebius Packaging has focused onrecycling polyethylene that is collected as household
waste in schemes under the Containers and Packaging
Recycling Law to be reused for packaging containers.
Challenges

We aim to overcome the challenges facing with theentire value chain by allowing companies from upstream
to downstream to work together to comprehensively
address relevant issues involving recycling methods andways of reusing. In the NEDO-led program, we performed
blow molding evaluation for a 50/50 weight percent blendof virgin and recycled polyethylene and succeeded informing bottles from the mixed material. While the bottle
satisfies the product standards for both compression
strength and drop strength, there remain several issues
that are characteristic of recycled plastic, such as foreign
matter contamination.

Unlike used PET bottles, many of which are recycled
into new beverage containers, progress in recycling
polyethylene waste is slow despite its large volume.
One reason is that containers which are collected aswaste widely vary in their applications, contents, andspecifications. Another reason is that there are no
established recycling processes or ways of using recycledplastic which work properly for those diverse packages inthe value chain.

Eco Action Plan 2030 – Environmental Goals of Mebius Packaging –Use ratio of recycled/
plant-based plastics

30% or more

Recyclable productspecifications

100%

Contribute to a Low-Carbon Society
Emissions from operations(Scope 1&2)
per unit production weight

30% less** Compared to fiscal 2013

Emissions from supply chain(Scope 3) per unit sales weight

10% less*

Top: View from the top
Left: Solar panels and inverters

Materiality

Respect for Employees

Left: Prototype made of a 50/50 blend of virgin and recycled resin
Right: Bottle using recycled material with white-color coating of virgin plastic

Contribute to a Zero-Waste Society

8

Contribution to Environment Protection

The NEDO-led program ended in July 2020, and sinceAugust 2020 we have taken on a new phase under theframework of a national project aimed at implementationin the society. Our R&D efforts continue on towards asociety that recycles plastic packaging infinitely, like the
Möbius loop, with all abilities of the cross-company team.

Achieving Flexible Work Environment for
Work-Life Balance

Toyo Seikan Group Holdings started a pilot programof teleworking as part of its work style reform from fiscal
2018. In July 2019, the telework system was officiallyintroduced for all its employees. The company has
succeeded in improving productivity and implementing its
business continuity plan by utilizing thin client PCs and a
web conference system. In addition, employees have beenable to use their time more efficiently in both work andprivate life. Since fiscal 2018, the company has also joined
a government-led program TELEWORK DAYS, and in
November 2019, it was selected as "Pioneer of Telework"by the Ministry of Internal Affairs and Communications.
Other group companies are also promoting the adoptionof telework systems that are suited for their respective
work conditions. Nippon Closures, for example, has
opened satellite offices at Ishioka Plant and in TechnicalDevelopment Center at Hiratsuka Plant so that employees
who work for its head office can save commuting time andmake efficient use of their time.

These steps implemented across the group in theways suitable for individual group companies enabled us
to smoothly transition into teleworking in response to theoutbreak of the COVID-19 pandemic this year.
We will continue with our efforts to create a better
work environment and become a company where diverse
employees can grow and develop, aiming to increase ourcorporate value and achieve a continuous growth.

Attending a web
meeting
Satellite office in Nippon Closures’ TechnicalDevelopment Center

Toyo Seikan Group CSR REPORT 2020

9

CSR Management of Toyo Seikan GroupToyo Seikan Group CSR Policy

Materiality of Toyo Seikan GroupThe Toyo Seikan Group defines CSR as “continuous contribution to the happiness and prosperity of mankind through fairand honest business activities.” All employees of the Group understand its CSR commitment and work for all stakeholders.

The Toyo Seikan Group has identified the “eight items of materiality” as its material issues to address with a high priority
in order to contribute to the creation of a sustainable society. They are based on our Management Philosophy and serve
as a basic guide for us to promote management that is fully integrated with CSR. Through addressing these issues, we
also contribute to achieving the Sustainable Development Goals (SDGs), which were adopted by the United Nations in
September 2015.

All stakeholders

Process of Setting Materiality

We will respect basic human rights and diversity of people, and communicate and act sincerely.

We will provide safe and reliable
products, systems and services toensure customer satisfaction.

We will always conduct fair
and transparent businessactivities with good ethics.

Customers

Business
partners

Employees

Localsocieties

Toyo Seikan GroupWe will strive to enhance corporate Shareholders
andvalue, and manage and disclose
investors
information appropriately.

We will create a safe,
clean and vibrant workplace.

We will promote participationin community activities
to coexist in harmony
with local communities.

1

2

3

4

Identification of social
material issues

Identification of theGroup’s material issues

Assessment ofappropriatenessSetting priorities

We identified what efforts
are needed in the society,using reporting guidelines,
such as GRI and SASB,
and ESG assessment
criteria, including DJSI
and FTSE.

We identified material
issues for the Group andrated their importancethrough discussions
among group companies’
presidents and operating
officers.

Drawing a matrix of social
and the Group’s material
issues, the appropriatenessof identified issues arereviewed by taking
the opinions ofexternal experts into
consideration.

We will strive to preserve andGlobalenvironment improve the global environment.

Materiality of Toyo Seikan Group
Category

Materiality
Development of packaging

Continuous
containers and services increation of new line with social needs
products andEnhancement of quality
services

CSR Promotion Framework of Toyo Seikan GroupThe Group has established the Group CSR Promotion Committee to promote its CSR management.
The committee, chaired by the President of Toyo Seikan Group Holdings, consists of officers of the company andpresidents of key group companies.

Toyo Seikan Group
Holdings, Ltd.

Audit and Supervisory Board

We selected mostimportant items for boththe society and the Groupand set priorities on them.

Board of Directors

Eco-friendly
systems

Governance Committee

President
Executive Management Meeting
Management Strategy Meeting

Honest andresponsible
behavior

Group Environment Committee

Contribution to SDGs

Develop and provide safe and useful products, systems andservices to the society.

assurance

Ensure quality and safety of our products, systems andservices.

Contribution toenvironment protection

Contribute to the creation of a low-carbon, Zero-Waste
Society that coexists with nature.

More sustainable supply
chain

Establish a system for sustainable raw material procurement.

Coexistence with
communities

Promote community contribution activities with a careful
understanding of social conditions, cultures and customs ofcountries where we operate.

Respect for human rights

Respect the fundamental human rights and never violate thehuman rights in every aspect of our business.
Develop and support individuals who continue to seek growthand challenges.

Group CSR Promotion Committee
Group Risk and Compliance Committee

Goals

Create a corporate culture where we are able to takeadvantage of our diversity.
Respect for employees
Achieve a flexible work style that allows for a right balance
between work and home life.

Toyo Seikan

10

Toyo Kohan

Tokan Kogyo

NipponClosuresToyo Glass

Mebiuspackaging

Toyo Aerosol
Industry

Maintain the workplace that is safe and healthy andcomfortable for employees.

TOMATEC
Ensuring thoroughcompliance

Ensure that our business activities are properly conducted.

Toyo Seikan Group CSR REPORT 2020

11

ENVIRONMENTENVIRONMENTOur Commitment to
Global EnvironmentWe

ill strive to preserve and improve the global environment.

Cleanup Eﬀorts through Litter Picking App PIRIKA and
Ocean Cleanup Campaign Marine Waste Zero Week

TOPICSE

In recent years, attention has been drawn to a plastic-free life
as a solution to the marine plastic pollution. As part of our efforts
to address the issue, our group is focusing on cleanup activities.
We use litter collection app “PIRIKA” to post articles about
our activities on the web. In fiscal 2019, a total of 889 people
across the Group joined the program and picked up 10,236 litersof waste. We will expand the activity to the entire group going
forward.
In response to the Ministry of the Environment’s campaign“Marine Waste Zero Week” to reduce marine debris, Tokan Kogyo
and its group companies have taken on an initiative to make theircleanup activities more socially conscious. Among them, Nippon
Tokan Package has been actively involved in cooperative activities
with local communities and business partners, in addition to litter
picking up in the surrounding areas of its plants. In fiscal 2019,the company enhanced its activities in terms of both quality andquantity; a total of 545 people joined 78 events at 14 locationsin Japan.

The Toyo Seikan Group established its environmental policy in 2002. Since then, we have been actively working on theprotection and improvement of the global environment through our business activities.
In 2015, we fully revised our environmental vision and set new long-term goals towards 2050, and have taken the next
step for the creation of a sustainable society.

Toyo Seikan Group Environmental Vision
Combining our proprietary technologies and tapping into technologies across the world, we will contribute toachieving a sustainable society from three perspectives in the value chain of our products, services and systems.

10 people from Fukuoka Plant
of Nippon Tokan Package joineda cleanup event of the townof Shingu where the company
operates

Three
Perspectives

Low-Carbon
Society

Zero-Waste
SocietySociety Coexistingwith Nature

Significantly reduce
CO2 emissions

Effectively use limited
resources

Continuously benefit
from nature

We will reduce the use of new
resources to the maximum extent
and replace them with recycled or
renewable materials.

We will contribute, through our
products and services, to thecreation of a society where humans
and all other creatures on the planetcan coexist permanently, with due
consideration to product lifecycles
in the processes of procurement,
development, manufacturing, sales
and service activities.

PIRIKA activity report on website
https://www.pirika.org/u/5256552586149888/posts

Certified in Distribution Integration and Streamlining Planning by the
Ministry of Land, Infrastructure, Transport and Tourism (MLIT)
Tokan Logitech and its four partners, including McDonald’s
Holdings Japan, have taken on an initiative to reduce thecarbon emissions from packaging material transportationand the driving time of truck drivers. As of September 24,
2019, their plan was certified as “Integration and Streamlining
Plan” by the Kyushu District Transport Bureau of MLIT underthe Act on Advancement of Integration and Streamlining ofDistribution Business.

Environmental Vision and Goals

As all their transportation of paper cups and other materials
from Inuyama City in Aichi to Tosu City in Saga had been
performed by trucks, the plan aims to switch more than
90% of the transportation, in terms of distance, to railway.
This is expected to reduce emissions by 65% per year andto also shorten truck driving time by 75%, supporting thework style reform for truck drivers.

Long-term
Goals towards
2050

We aim to halve CO2
emissions by 2050
*Compared to fiscal 2013

Group environmental management framework
The Toyo Seikan Group has formed a Group Environment Committee (chaired by the President of Toyo Seikan Group
Holdings, Ltd.), and has been promoting environmental management on a group-wide basis.
Deliberations and resolutions concerning group-wide environmental management initiatives are carried out at the biannual
Environment Committee meetings. Progress is managed through administrative officeliaison meetings, which are held fivetimes a year. Each Group company takes initiatives based on decisions by the Group Environment Committee to promote
their environmental management activities.

Point
BeforeswitchingInuyama,
Aichi

Tosu,
Saga

Approx. 800 km

Modal shift fromtrucking to railway
The warehouses close to the freightterminals allow for a significant
reduction in truck transport distance.

EffectAfterswitchingInuyama,Aichi

Terminal
stationApprox.
30km

Approx. 820 km

東罐興業厚木工場（第2工場）
屋根に設置した太陽光パネル

12

Tosu,
Saga

Terminal
stationApprox.
2 km

Environmental organizations at group companies

Toyo Seikan Group Environmental
Management System

Toyo Seikan Group Holdings
Toyo Seikan
Toyo Kohan

Toyo Seikan Group Environment Committee

Reduced CO2
emissionsSaved
driving time

21 t-CO2/year

841 hours/year(65% less)(75% less)

Tokan Kogyo

Chairman: President of Toyo Seikan Group Holdings, Ltd.
Members: Officers in charge of environmental issues
from the committee member companies

Nippon Closures
Toyo Glass

Subsidiarygroup
companies

Mebius Packaging
Administrative
officeToyo Aerosol Industry
TOMATEC

Toyo Seikan Group CSR REPORT 2020

13

ENVIRONMENTENVIRONMENTE

Our Commitment to Global Environment

Achieving Mid-term Environmental Goals “Eco Action Plan 2030”

Targets for 2030 and Progress in FY2019

Eco Action Plan 2030, formulated in fiscal 2019, is a set of quantitative environmental targets
for the Group to achieve by 2030, the target year of the SDGs, through activities to address
the climate change, to promote resource recycling, and to conserve biodiversity, which is often
discussed with the marine plastic litter problem. In addition to the environmental impact of ourown business activities, we have been taking specific measures to reduce the environmental
impacts across our entire supply chain.

The table below shows the progress we made in fiscal 2019 based on the Eco Action Plan 2030.
Evaluation: ★★★ Achieved
Environmental Vision
Targets of Eco Action Plan 2030

Low-Carbon Society
1) Reduce CO2 emissions from business activities (Scope 1 & 2) by 30%

Addressing Global Warming

Resource Recycling

We will reduce carbon emissions from our businessactivities (Scope 1 emissions directly from fuel combustionand Scope 2 emissions indirectly from electricity
consumption) as well as emissions from upstream anddownstream of our supply chain (Scope 3 emissions). We
have set our reduction targets focusing in particular on
the emissions associated with procurement (purchased
products and services) and disposal of products wesold, which account for a significant portion of the total
emissions from the entire supply chain.

We will switch materials we use especially from fossilbased to recycled and renewable materials, including
plant-based plastics. In setting the numerical targets, highpriority is placed on shifting from single-use products andservices to circular ones by reducing the consumptionof exhaustible resources as much as possible and by
designing products so that they can be easily recycled.
Marine Plastic Pollution

As we provide a wide range of plastic products for thesociety, solutions to marine plastic litter cannot be foundthrough a single company’s effort. We will cooperate withall partners in our value chain to address this issue.

Environmental Impact of Business Activities
We monitor the amounts of material input and output of the entire group to reduce the environmental impact of ourbusiness activities.

2) Reduce CO2 emissions from the supply chain (Scope 3) by 15%

Zero-Waste Society
1) Reduce the use of exhaustible resources(1) by 30%
2) Reduce the use of fossil resources(2) for plastic products by 40%• 15% reduction by decreasing product weight and switching materials• Increasing the ratio of recycled and plant-based plastics by 30%
3) All packaging to be recyclable or reusable

Society Coexisting with Nature
1) Reduce environmental risk and environmental pollutant• 15% cut in the release and transfer amount of chemical substances
under the Pollutant Release and Transfer Register Law (PRTR Law) by
FY2022(2) Promote biodiversity conservation• 30% cut in water consumption by business activities

FY2019 Material Flow of Domestic Operations of Toyo Seikan GroupINPUTOUTPUT

Input amounts of energy, etc.

Amount of waste sent for final
processing: 6,000 tons

Total output of waste, etc.: 251 thousand tons
Total energy usage: 23.7 million GJ
Electrical power: 1,695 million kWh
Fuel: 180 thousand kl
Water withdrawal: 20.1 million m³

Toyo

Release and transfer amounts of chemical
substances (listed under PRTR law): 478 tons
CO2 emissions (factories and office locations):
1,226 thousand CO2 tons

SeikanProducts (in thousand tons)Group
Raw material input (in thousand tons)
Metallic materials:
834
Plastic materials:
387
Paper, etc.:
391
Glass raw materials: 429
Other:
118

14

Business
Activities

Metal cans:
Plastic products:
Paper products:
Glass products:
Cap-type products:
Metal sheet products:
Materials:
Machinery:

227
301
351
318
88
465
196
7.1

Amount of resources recycled:
245,000 tons

3) Promote communication with external parties• Action to address marine plastic pollution (prevention of litter) and thedisclosure of relevant information★★ Nearly achieved★ More effort needed

FY2019 Results (Major efforts)

Evaluation

1) The Scope 1 and 2 emissions decreased 14.7%
from the base year and 5.0% from the previous
year. Domestic facilities particularly saw a steadyprogress in reducing energy consumption asa result of equipment replacement and various
energy-saving efforts.

★★★

2) The emissions from supply chain (Scope 3) havedeclined 4.9%. Our resource recycling initiatives
such as the reduction of product weight areyielding results.
1) The consumption of exhaustible resources has
decreased 9.4%. This is partly due to a decline inproduction volume compared to the base year. We
are working on reducing packaging weight andimproving yield rates (lowering defective rates).

★★

2) We seek to reduce the consumption of fossil
resources by using recycled plastic from usedbottles for new PET bottles and plant-based resinfor other plastic containers.
1) The release and transfer amount of chemicals
subject to the PRTR Law has declined 9.1%. While
the amount did not decrease as much as planned
for recent years due to production process control
reasons for several products, fiscal 2019 saw anannual 7.6% reduction with various improvement
efforts, such as excluding toluene from printing ink.
2) Water withdrawal has increased 5%. While the useof water has decreased at domestic facilities, theexpansion of overseas operations has pushed up thetotal amount compared to the base year.

★★

3) We have started plastic pellet management by
formulating a group-wide guidelines to prevent
plastic pellet from flowing out of our plants.
Meanwhile, we have participated in the Clean Ocean
Material Alliance, which consists of a wide range ofbusiness operators across the supply chain.

Base year: FY2013
Note:
1. An exhaustible resource is a natural resource that is not replenished by natural processes as fast as humans consume it.
2. Fossil resources include crude oil and natural gas.
*The scope of activities in the Eco Action Plan includes non-consolidated subsidiaries and affiliates as well as consolidated subsidiaries, and therefore theemissions indicated here are different from the emissions shown in page 16, which are only from consolidated companies.
Customers
Logistics
Transport distance: 126 million km
CO2 emissions: 86,000 tons

Toyo Seikan Group CSR REPORT 2020

15

ENVIRONMENTENVIRONMENTE

Our Commitment to Global Environment

Achieving a Low-Carbon Society

Achieving a Zero-Waste Society

CO2 Emissions from Operations (Scope 1 & 2)

Our group companies produce packaging containers
and materials by processing raw materials from exhaustible resources, such as metal and petroleum. Therefore,
efficient use of resources through the reduction of material
input and waste and the recycling of materials is a major
mission for the Group. Under the Eco Action Plan 2030,
we have taken on activities towards its target of a 30 percent cut in use of exhaustible resources to help achievea zero-waste society. In addition to our ongoing efforts
to reduce container weight, raising the ratio of recycled
and plant-based materials used for our plastic products
is particularly an important theme for our activities to address the marine plastic pollution. The group companies
will continue to carry out their activities to achieve thetargets of Eco Action Plan 2030, seeking solutions tosocial issues.

In fiscal 2019, total carbon emissions from the Group’s
facilities in Japan and abroad decreased 5% from theprevious year to 1,475 thousand tons.
The emissions from the domestic facilities declinedby 76 thousand tons from the year earlier as a result of
replacement of air compressors, periodic repair of melting
furnaces and other energy-saving activities, while thosefrom overseas facilities decreased by 2 thousand tons
year on year.
We continue to engage in cutting carbon footprintin fiscal 2020 through energy-saving efforts, including
replacing equipment, streamlining production lines andimproving production efficiency.
Greenhouse Gas Emissions from Supply Chain (Scope 3)

from purchased products (Category 1) accounted forapproximately 75%, followed by disposal of sold products (Category 12) and transportation and distribution(Category 4). The results indicate that reducing emissions
related to purchased products (e.g. material procurement)
is increasingly important. We will continue with our efforts
to reduce product weights and to use more recycled andplant-based materials.

GHG Emissions from Supply Chain (FY2019)
Total: 5,542
Scope 1: 397
Scope 2: 829

Unit: thousand tons

7% 15%The Toyo Seikan Group calculates the amount of GHG
emissions from upstream and downstream of the supply
chain (Scope 3) as well as its direct emissions from operations, including fuel combustion (Scope 1), and indirectemissions generated by electricity consumption (Scope2). Under the Group’s environmental vision Eco Action
Plan 2030, we aim to reduce the Scope 3 emissions 15%
by fiscal 2030 compared to fiscal 2013.
The Scope 3 emissions associated with our domestic operations accounted for around 80% of the total
emissions from the supply chain for the entire group in
fiscal 2019. Among the total Scope 3, the emissions

78%

Scope 3:
4,316

OthersCategory 4:
Upstreamtransportationand distribution
Category 12:
End-of-life
treatmentof sold products

11%

Scope 3emissions75%
by category

Category 1:
Purchased
goods
and services

Japan

2,000 (Thousand tons)

1,600

203

1,747
215

Overseas

1,690
210

1,633

1,617

209

234

1,553
251

1,200

1,475

-30%

Achieving a Society Coexisting with Nature
Risk Management of Production Facilities

Flowing dangerous substances and waste fluid outof plants deteriorates the surrounding environmentand has a long-lasting impact on it. As individual groupcompanies have implemented risk management with
their environment management systems, we now aim
to further enhance our risk management framework. We
specify high-risk equipment among the facilities that could
cause leakage accidents due to aging and deteriorationand other factors. The management of piping and storage
tanks are given special attention since a leakage fromsuch equipment would have a material impact.

249

Addressing Marine Plastic Pollution
800

1,597

1,532

1,481

1,424

1,383

1,302

1,226

2016

2017

2018

2019

1,260

400

0

2013
(Base year)

2014

2015

2030
(Target year)

Note: Since the scope of data collection has limited to consolidated companies from fiscal 2019, the figures for the previous years are retrospectively adjusted.

16

The Toyo Seikan Group has been working on
developing, manufacturing and selling low environmental
impact products, considering their entire lifecycle. We
have certified several products of the Group as ecoconscious products based on our group-wide standards
for evaluation in the stages of raw material procurement,
production, transportation, consumption and disposal/
recycling. As of the end of March 2020, a total of 60 items
have been certified as eco-conscious products, for which
the details are provided on the website of Toyo SeikanGroup Holdings (only in Japanese).
Going forward, our efforts to increase the numberof certified eco-conscious products will contribute toachieving the targets of Eco Action Plan 2030. Not only
to existing products, we will also adopt
the certification scheme to products
to be developed in the future, throughcooperation with development and sales
divisions, so that our products will be
widely accepted in the market.

10%

4%

Changes in CO2 Emissions from Business Activities

1,799

Eco-Conscious Products(Fiscal year)

Engagement through the Clean Ocean Material
Alliance
In January 2019, the Clean Ocean Material Alliance(CLOMA) was established with a wide range of business
operators participating to address the problem of marine
plastic litter, an emerging global challenge. CLOMA aims
to promote the “3Rs” initiative for a sustainable use ofplastic products and the development and introduction ofalternative materials as well as to accelerate innovation
through a public-private collaboration. Toyo Seikan Group

Holdings has joined the alliance as a managing partner
since its preparation phase and has been working as a
key member of its subcommittee to promote information
sharing and partnerships with relevant parties from acrossindustries.
Strong Commitment to Plastic Pellet Loss Prevention
Plastic pellets with a size of several millimeters, which
are used to make plastic products, could become marine
plastic litter if they escape from the plant site. We have been
implementing measures to prevent the particles dropped
on the ground from flowing out of plants, including placing
metal net on the storm drain. In order to ensure appropriatepellet management aimed at zero pellet loss, we haverecently formulated the Group’s Guidelines for Preventing
Plastic Pellet Loss. The relevant group companies
have just begun the implementation of the guidelines,
including identifying potential leakage points and taking
preventive measures, daily
management
processes,
and auditing, under theirrespective
environment
management systems.
Pellet-collecting screen set on a
rainwater catch basin
Toyo Seikan Group CSR REPORT 2020

17

SOCIETY

SOCIETYS

Quality Assurance System
he oyo eikan roup endeavors to develop and provide products,
systems and services that cater to the needs of its customers and idersociety, through the effective utili ation of experience, technologies andkno ho accumulated over many years in the industry.

TOPICSSpecial Achievement Award of Kudamatsu City Industrial
Technology Promotion Award Program, Following theLast Year s Award from Yamaguchi Prefecture

In November 2019, the Kudamatsu Plant of
Toyo Kohan received the Special Achievement
Award from Kudamatsu City in Yamaguchi aspart of the city’s industrial technology promotionaward program for advanced technology
development and new technology research.
The award was given to the achievement indeveloping gene testing kits with DNA chips,
on which the company has continued its
research. This follows the last year’s Yamaguchi
Prefecture Industrial Technology Special Award
given by the prefecture.
Anticancer drugs currently used to treat
cancer may have serious side effects dependingon genotypes of patients. The Toyo Kohan’sgene testing kit enables to determine individual
patients’ suitability for anticancer agents byanalyzing their genotype in advance. The
company will continue research on reducing theside effects of anticancer drugs to contribute totreatments that mitigate the burden on patients.

We are engaged in quality assurance activities acrossthe group companies according to our quality assurance
principles, which focus on i) providing customers andthe society with products, systems and services that aresafe and reliable, and ii) implementing social activities
necessary for a corporate group that deserves the trustof customers and the society. In April 2019, Toyo SeikanGroup Holdings established the Quality Administration
Department to further reduce quality risk for the entire
group. With our motto “High Quality, Reasonable Prices
and Swift Delivery,” which we have been following since
the founding of the Group, we continue with our efforts toearn customer trust by maintaining and improving quality
levels that meet requirements of the times throughout
our operational processes, including development,
procurement, manufacturing, sales and service provision.

Construction of Management System

Award-Winning Product
The gene testing kits
and specialized equipment (medical devices)
are on the market. They
help determine treatment
for blood cancer andhave contributed to many
patients.

Each operating company in the Group has constructed
a quality management system for maintaining andimproving the quality of products and services inaccordance with the ISO9001 standards. Among them,companies manufacturing and selling food containers
have also built food safety management systems basedon the FSSC22000 standards, in order to provide safer
products and to increase reliability in the food chain.
Toyo Seikan, Toyo Glass and Mebius Packaging, inparticular, have established a TMS (Total Management
System), which integrates the three systems of quality
management, food safety management and environmental
management (ISO14001 standards-based). The system
integration allows the companies to reduce overlaps inoperations and expand their focus from sub-optimization
to total optimization. Using the dynamic system that links
their management systems closely with actual businessactivities, they have been promoting manufacturing thatprovides customers with reliability.

Technology Development Initiatives

Gene testing kit

Individual operation of management systems

Q

E

FS

Q (Quality)

E (Environment)

FS (Food Safety)

Ceremony of Industrial Technology Promotion Award of Kudamatsu City

Joint Research with Yamaguchi University won the Yamaguchi Prefecture
Industrial Technology Special Award in 201818

Quality Assurance System

Specialized device

To increase trust and satisfaction of customers, weare engaged in research and development efforts todevelop products, technologies, systems and services
with high added-value to fulfill the diversifying needs in the
packaging and container market. We are also working tocreate new markets and new businesses by utilizing both
newly developed technologies and existing technologies
accumulated over many years.

Integrated total management system operation (TMS)PLAN

Q
ACTION

DO

Shared

E

FS
CHECK

Technology Development Framework

Q

Our technology development activities are conductedwith cooperation between technical development
departments across the Q
Group, including Corporate
R&D, the basic research and development unit of Toyo
Seikan Group Holdings, Technical Center of Toyo Seikan,
R&D Center of Toyo Kohan,Technology Development
SharedDivision of Tokan Kogyo, Technical Development Centerof Nippon Closures,
EDevelopment Division
FS of Toyo Glass,and Research & Development Department of Mebius
Packaging.

Toyo Seikan Group CSR REPORT 2020

19

SOCIETY

SOCIETY

SOCIETY

Human Rights

Together with
Our Employees

We conduct business activities that respect the human rights of all
the stakeholders in accordance ith oyo eikan roup uman ights
olicy.
2019 Human Rights Due Diligence Workshop Reporthttps://www.tskg-hd.com/en/csr/social/human_rights/

e-Learning on Human Rights

We

ill create a safe, hygiene and vibrant

Full text of the Toyo Seikan Group Health Management Declaration is shown on the Group’s website.

2,412 employees of the group companies stated below,
using an online material that was jointly developed by the
Asia-Pacific Human Rights Information Center “Hurights
Osaka” and Amnesty International Japan. (The completion
rate of the program was 99.3 percent.)

Group companies joining the program● Toyo Seikan Group Holdings● Toyo Kohan● Nippon Closures● Toyo Seikan● Tokan Kogyo● TOYO GLASS●

Honshu Seikan●

TM Pack●

Nippon Tokan Package● Mebius Packaging●

Nippon National Seikan●

Japan Bottled Water●

Tokan Kosan● Toyo Aerosol Industry●

Ryukyu Seikan Kaisha●

Toyo Seikan Group Engineering●

Tokan Logitech● TOMATEC●

Toyo Seihan●

Toyo Mebius●

Shosando● Tokan Trading Corporation●

Fukuoka Packing●

Sunnap● Tokan Kyoei Kaisha

https://www.tskg-hd.com/en/csr/soc_staff.html

We understand that employees’ health is one of our management issues. In September 2017 we released the Toyo
Seikan Group Health Management Declaration for maintaining and enhancing the health of employees.
2020 Outstanding Enterprise in Health and Productivity
Management

In March 2020, five of the group companies (Toyo SeikanGroup Holdings, Toyo Seikan, Toyo Kohan, Tokan Kogyo andToyo Glass) were certified as 2020 Outstanding Enterprises in
Health and Productivity Management in the large enterprise
category of the certification program managed by the
Nippon Kenko Kaigi and the Ministry of Economy, Tradeand Industry. Among the five, Toyo Seikan Group Holdings
and Toyo Seikan were also recognized as White 500, a
certification given to the top 500 enterprises. Meanwhile,
Nippon National Seikan and Ryukyu Seikan Kaisha werecertified in the small and midsized business category.

Toyo Seikan Group Holdings

Participating in Stakeholder
Engagement Program
The Group joined the 2019 Human Rights Due Diligence
Workshop (Stakeholder Engagement Program) conductedby non-profit organization Caux Round Table Japan. With
participants from corporations and non-governmental andnon-profit organizations and experts on human rights, abroad range of human rights problems are discussed in
the workshop.
We also reviewed the sector-specific human rights
issues using the Human Rights Guidance Tool developed
by United Nations Environment Programme FinanceInitiative (UNEP FI), deepening our understanding of
those issues. We will continue to engage in human rightsrelated activities with the knowledge we have gained in
the program.
The report on the workshop is available on the CSR
section of our website.

Group-Wide Quit Smoking Program

In September 2017, as part of our initiatives to maintainand enhance employees’ health, we launched a campaign
to “achieve a complete smoke-free workplace during
work hours for all domestic facilities by April 2020.” At thehead office building in Osaki, a quit-smoking project has
been implemented in several stages. Smoking has been
completely prohibited during work hours in all areas of thebuilding since October 2018.
Purposes of encouraging quit-smoking
Prevent health damage from secondhand smoke
Top priority on employee health
Steps taken at the head office building

The Group’s Health Management Promotion Framework

In November 2019, we conducted a CSR seminar
entitled “Business and human rights—major challenges
Japanese companies will face in the years ahead,” inviting
Mr. Sakon Kuramoto, a lawyer admitted to practice inJapan and New York State and working at Orrick’s Tokyo
Office, as a lecturer. As respect for human rights is oneof the eight items of the Group’s Materiality, we advocatethat we will respect fundamental human rights and neverviolate them in any situation.
Aiming to raise awareness of human rights in ourbusiness activities, Mr. Kuramoto discussed the futureissues facing Japanese corporations from the perspectiveof harmony between business and human rights, and how
to deal with those issues, with specific examples in Japanand abroad.
The seminar was joined by 176 people across the Group,
including presidents of group companies, providing agood opportunity for them to deepen their understandingof human rights-related knowledge and issues.

orkplace.

Health and Productivity Management

To improve understanding of human rights issues, allemployees in the Group are provided with opportunities
to learn about the Group’s Guidelines of Behavior, which
prohibit any discrimination, harassment or abuse.
In fiscal 2019, we conducted an e-learning program on
business and human rights for all officers and applicable

CSR SeminarS

President
Officer in Charge
Administraof Human Resources
tive Office
Human Resources Department
Occupational Physicians/Nurses/
Health-and-safety managers

Group Companies

Group companies individuallyformulate their promotion frameworks.

Oct. 2017 Set smoking hours
Apr. 2018 Reduce smoking areas
Set non-smoking day (once a month)
Oct. 2018 No-smoking during work hours in all areas

The mascot of the
Toyo Seikan Group’s
quit-smoking support
campaign

Quit-smoking support
Health Insurance
Association
Guide and support
group companies
in health management

In order to implement the Group’s Health Management
Declaration, we have established a framework to promotehealth management. Meanwhile, the Group HealthManagement Promotion Meeting, consisting of healthand-safety managers and the occupational health staff, isengaged in various activities from the respective viewpointsof management and employees. In July 2019, themeeting invited an external lecturer to a seminar, in which
attendees learned the background of health management
and the key points in its implementation. The seminar wasattended also by a number of management members andhigh-level managers across group companies, enhancing
top management commitment necessary for driving
health management.

Group companies and several health insurance associations in
the Group have taken measures to help employees quit smoking,including financial aid to use smoking cessation outpatient services,
drugs to help stop smoking, and incentives for those who achieved
quitting. These measures encourage smokers to increase their
willingness to face the challenge.

Health Maintenance Event

In November 2019, Toyo Seikan Group Holdings
hosted a lunch meeting for women to help advance theirhealth, with participants from across group companies.
While enjoying lunch, they listened to a lecture by HealthSupport Office on “life stages and health of working
women” and exchanged information about womenspecific health issues and company support schemes.
They also learned the importance of obtaining accurate
knowledge, preventive measures against diseases andpreemptive action with early detection of illness.

©2019 Caux Round Table Japan20

Toyo Seikan Group CSR REPORT 2020

21

SOCIETY

SOCIETY

S

Together with Our Employees

More Diversified Human Resources and Work Style Reform
In order for the Toyo Seikan Group to enhance its
competitiveness and continue to grow over the longterm, each employee needs to make full use of their own
abilities for their individual growth and for contributing to
the Group’s development. To this end, it is essential tocreate a culture in which every one of us is able to accept
both visible diversity, including in gender, nationality anddisability, and invisible diversity, including in perspective.
We will pursue diversity management to create such
culture, implementing measures to empower womenand to promote flexibility in work style that can respondto various circumstances, including working while caring
for children and elderly family members and working withdisability.
Our Perspective on Diversity Management
Work continuity
Various working styles/
Back-to-work support/
Support to balance workand child/elderly care

Workplaceawareness & culture

Growthopportunity

Understanding frommanagers and colleagues

Providing opportunities for
employees’ development

Employee Survey

In 2019, following 2016, the Group conducted a surveyof 10,594 employees from seven group companies(including full-time and part-time employees, fixed-term
contract workers and temps), asking what understanding
and value they have, in order to create a vibrant work
environment that respects human rights and allows
workers to feel fulfillment in their work and lives. (Among thesurveyed employees, 9,141 people, or 86%, responded.)
There were requests from full-time employees regarding
personnel shortage and human resource allocation,
personnel scheme amendment, and better salary
rewarding. They also made proposals for more active
human resource development and on review of ouroperations. Fixed-term contract and part-time workers
and temps presented their requests for better working
conditions and treatment, more intimate communicationin the workplace, including greetings, and appropriate
instructions during work.
We will continue to conduct the survey every three years
to monitor changes in employees' attitudes and needs,
using the results for improving our personnel and working
systems.

Encourage More Active Participation of Women

Introducing a system to support various work styles

We are implementing the General Employers Action
Plan we have formulated under the Act on the Promotionof Female Participation and Career Advancement in the
Workplace and the Act on Advancement of Measures to
Support Raising Next-Generation Children.

Group companies are increasingly introducing atelework system and a flextime system. Toyo Glass
has also introduced hourly paid leave, aiming to create
a comfortable work environment so that each of theemployees can fully demonstrate their abilities.

Issues in the plan

* The details of our engagement in the workplace, including the telework system,
are shown in the Materiality section on page 9.

1) Traditional gender role attitudes still remain.
2) Women who return from parental leave are faced withchallenges in assignment, demonstration of ability, andcareer development.
3) The ratio of women in managerial positions is low.
4) There is a lack of frameworks and culture that allow employees with diverse characteristics to demonstrate theirabilities.

To solve these challenges, in fiscal 2016 we set atarget of a minimum of 30% women in new recruits foradministrative and technical jobs. We have achieved thistarget, and since fiscal 2018, we have been pursuing ahigher target of a minimum of 30% women in “all new
recruits including production line staff” for a broader
participation of women in the workplace. By introducing AI
technologies, automation and labor-assistance equipment
to production facilities, we are seeking to create aworkplace comfortable for female workers, which is also
comfortable for everyone, resulting in a highly productive
work environment.
Current situation with regard to female employment rates(for new graduate and mid-career hires)
FY2017FY2018FY2019

17.9%

16.9%

24.4%

Administrative depts

42.4%

42.4%

51.3%

Technical depts

20.5%

22.6%

22.0%

Administrative + technical depts

30.3%

32.2%

36.3%

Production line staff

12.1%

9.7%

19.4%

Overall* The fiscal year is from April 1 to March 31 of the following year.
* The figures for fiscal 2019 are based on new graduates only since the numberof mid-career recruits for the year is not available at the point of preparing thisreport.

FY2017FY2018FY2019Number of employees

7,718

7,856

8,004

Proportion of female
employees (overall)

12.8%

13.2%

13.5%

Proportion of female
employees in management roles(section manager and above)

2.9%

2.7%

3.1%

The scope of data includes Toyo Seikan, Toyo Kohan, Tokan Kogyo, Nippon
Closures, Toyo Glass, Mebius Packaging and Toyo Seikan Group Holdings.

22

Eijyo College —Empowering Women in Sales

Tokan Kogyo won the Special Judges’ Award in the“New Generation Eijyo College 2019” program.
The Eijyo College is a cross-industry platform thataims for active participation of women in the sales force.
Participants experience a six-month cross-company
exchange program and in-house experimental projects,
and finally offer suggestions for problem solutions.
The team of Tokan Kogyo conducted two experimental
projects, including the PASSER system for specializationin sales activities, successfullyincreasing labor productivity
and customer satisfaction.
The members’ activity involving the entire company was
highly evaluated.
First Female Shift Workers in Production Line

Toyo Kohan has started hiring women as shift workers
in production divisions from fiscal 2019. The company
aims to create a better work environment for women also
in the production line to promote diversity management.
The first four women for shift working and two senior
female employees had a meeting to discuss the workplace conditions, their expectations, and future goals.
The senior employees gave
the new colleagues warm
advice and encouragement.
Please look forward to further
advancement of women in
the company.
Seminar for Balancing Work and Elderly Care

Employee numbers (as of April 1 of each year)

to those who wish to have one, and posted its content on
our intranet. We continue to work on retaining employees
who have to care for family members, aiming to create awork environment where everyone can balance work andcare.

In August 2019, we held a seminar for balancing workand elderly care at the head office building, inviting an
external lecturer. Approximately 80 people attended thevenue, with many managers and employees listening to
the lecture through a video conference system from theirrespective sites. They learned important points such as
mental preparation for working while caring for family
members and information on necessary services. We also
prepared the “Book for Working While Caring” to distribute

Work Style Reform at Nippon Closures

To raise employees' awareness of work style reform,
Nippon Closures has launched the initiative “Smart &Challenge,” which encourages individual employees towork in their own efficient way (Smart) to seek to create
a new value (Challenge). The company is improving both
hardware and software infrastructure and implementing
various measures at each facility.
Facility

Major activities

Ishioka Plant

Operational standardization using iPad

Hiratsuka Plant

Introduction of wearable devices

Technical Development
Center of Ishioka Plant
All company

Introduction of satellite offices available for all
employees
Introduction of flextime working without core hours
to administrative divisions of plants

The New Declaration for Building a Vibrant Workplace /Certification under “Youth Yell” Scheme

In June 2019, Tokan Takayama registered for the work
style reform promoting project of the Labor Bureau of
Gifu Prefecture: New Declaration for Building a Vibrant
Workplace. Under this project, the labor and management
representatives of a participating company jointly declarethat they will aim to create a workplace where everyone
can work in good health and with energy. In February 2020,
Tokan Takayama also obtained “Youth Yell Certification” of
the Ministry of Health, Labour and Welfare, which allows
the company to objectively demonstrate its commitment
to employing and fostering young people. It will continue
to improve its work environment and promote information
disclosure, aiming to be an attractive company loved bypeople in the community.

Toyo Seikan Group CSR REPORT 2020

23

SOCIETY

SOCIETY

S

Together with Our Employees

Human Resource Development

Health and Safety Activities
We are working to create a workplace where all employees can work safely, healthily and with peaceful mind.

Coordinated Human Resource Development across the GroupWe have been engaged in human resource development
in a group-wide effort. The collective educational programs
commonly provided for group members include LogicalThinking Training Program for younger generations,Managers Training Programs for newly assigned generalmanagers, managers and assistant managers, andTechnical Leaders Program (TLP) for younger technicalleaders selected based on the perspective of Managementof Technology (MOT). Through these cross-company
programs, we have been cultivating the sense of unity
across group members and establishing a group-wide
human network.
To assist employees in their self-development activities,
a financial support system has been established toreimburse those who completed a correspondence
course for the full amount of the course fee; in fiscal 2019,
there were a total of 3,149 applications across the group.
The Group also offers a financial aid program to pay thefull amount of TOEIC test fee to promote language skill
enhancement efforts.

Programs forselected candidates

Programs for
specific positions

ProgramStudy period
8 months (13 days of sessions)

15

TSGBC (8th)13 months (3 months for schooling,
18 days of sessions)

18

TLP (12th)

8 months (14 days of sessions)

27

Training for new general managers (4-part)25

Training for new managers (5-part)

79

Training for new assistant managers (8-part)2 nights and 3 days

Health Management Declaration and is working on mental
and physical health checks and quit-smoking support for
employees.
With each of the employees more deeply understanding
the evaluated points for the award, they will continue
with their united efforts to achieve zero accident in theworkplace.
Frequency and severity of occupational accidents at majorgroup companies
Company
Toyo Kohan*

Tokan Kogyo
Nippon Closures
Toyo Glass*
Mebius Packaging
Toyo Aerosol Industry

TOMATEC*
Total numberof participants

355

104
87

Comments
from TLP
attendee24

In October 2019, ten additional AEDs (automated external defibrillators) were installed in the Group’s head officebuilding, which now has a total of eleven AEDs. According
to the Japan Foundation for Emergency Medicine’s recommendation to install an AED at a place that enables
the device to be used within five minutes after cardiac arrest is recognized, we have arranged the devices so thatthey can be easily found on every floor and used in threeminutes after the occurrence. The information on the installation was immediately disseminated via intranet toemployees, while group companies jointly conducted AED
drills, in which 57 people from 13 companies participated.
They learned basic knowledge of AED, cardiopulmonary
resuscitation, and how to use the device through lecturesand practice.

Participants

Next-Gen. Management Training (8th)Logical Thinking Training (4-part)

Scene of discussion at TLPHead Office Building Installs More AEDs
and Conducts AED Drills* The group-wide recruitment scheme covers seven group companies: Toyo
Seikan Group Holdings, Toyo Seikan, Toyo Kohan, Tokan Kogyo, Nippon
Closures, Toyo Glass and Mebius Packaging.

Group-wide internal training programs (FY2019)
Category

Meanwhile, in order to foster our next-generation
leaders, we have been implementing core personnel
management for general managers and managers of
key group companies, focusing on “finding, training andallocating” human resources. Selected candidates attend
the Next-Generation Management Training Program
designed for general managers or the Toyo Seikan Group
Business College (TSGBC) designed for managers.
Through the training, the participants seek to gain
“knowledge” on management and establish the “core”
as a leader, engaging in drawing up business plans andproposals to management. After completing the courses,
they are provided with opportunities to take significant
roles in various fields.
We will adopt a group-wide process* for periodic
recruitment of new college graduates from fiscal 2021.
Enhancing cooperation among group companies infostering talent, we are actively engaged in establishing
our human resource base through various opportunities
for human resource development.

Naotoshi Tokunaga

Quality Assurance Department
Electronics Materials Plant
KOHAN KOGYO CO., LTD.

In the Technical Leaders Program, I learned aboutprocesses to make proposals for new products to themarket, focusing on our group’s technologies as well as
on social needs.
TLP was a more active, participatory program compared to ordinary educational
programs, as we visited other companies to exchange ideas. Looking at theoutside of the company allowed me to realize how narrow-minded I was. I gained
valuable experience and was able to find clues that would help me grow.
Our team faced so many challenges until the final report—every idea wesubmitted was rejected during the review process. But because of this, we built
a strong relationship which could not be achieved in ordinary training programs.
Looking ahead, I will perform my daily duties while pursuing a long-term goal tocreate a new value together with my teammates in TLP.

Labor Bureau Director-General’s Award at Okinawa
Industrial Safety and Health Conference 2019

Ryukyu Seikan Kaisha won the Okinawa Labor Bureau
Director-General’s Excellence Award (business andorganization category) for its safety activities in fiscal
2019, recommended by the Labor Standards Inspection
Office in Nago, Okinawa.
The company has been engaged in various safety
activities, placing the top priority on protecting employees’safety. In the production division, they have actively
carried out research on accidents with injuries at its
group companies and case studies of near-miss incidents
to examine andverify the safetyof people andproducts.
As
part of its work
style reform, thecompanyhasregisteredforthe prefecture’s
Hiyamikachi

Fiscal year
2019
2018
2017
2019
2018
2017
2019
2019
2018
2017
2019
2018
2019
2018
2017
2019
2018
2017

Frequency
rate
0.00
0.00
0.48
0.00
0.90
0.92
1.07
0.00
1.12
0.00
0.94
0.00
0.04
0.10
0.11
0.00
1.75
0.00

Severity
rate
0.00
0.00
0.00
0.00
0.01
0.02
0.03
0.00
0.05
0.00
0.04
0.00
0.01
0.03
0.02
0.00
0.00
0.00

* The data for Toyo Kohan, Toyo Glass and TOMATEC are on a calendar year basis
since their fiscal-year based figures are currently not available, as we present thestatistics for the first time in this report. The data collection may be changed to a
fiscal year basis in the future report.

Heat Stroke Prevention Program

In May and June every year, Toyo Glass invites an external lecturer to conduct an educational program for heatstroke prevention and treatment. The program provides anopportunity for participants to be reminded of the dangerof heat stroke as they learn the mechanism and symptoms
of dehydration and thenecessary
steps
toprevent andtreat heatstroke.

Toyo Seikan Group CSR REPORT 2020

25

SOCIETY

SOCIETYS

Social Contribution
Activities
We ill promote participation in community activities to coexist inharmony ith local communities.

Blood Donation Campaign

Social Contribution Activities Outside Japan

Construction of Flood Barrier Wall

As part of our voluntary activities, we have been engaged
in blood donation campaigns at individual facilities. Being
recognized for years of continuous effort, Chiba Plant of
Toyo Glass received the Golden Merit Award of Japanese
Red Cross Society on November 24, 2019, and Kawagoe
Plant of Toyo Aerosol Industry was given the 10th
Anniversary Letter of Appreciation by the organization on
July 30, 2019. We have also conducted a periodic blood
donation campaign at our facilities in Thailand undercooperation with Thai Red Cross Society. We will continue
our active contribution in Japan and abroad.

Among overseas bases of Toyo Seikan, four companies
in Thailand (Bangkok Can Manufacturing, Next Can
Innovation, Kanagata (Thailand) and Global Eco-can
Stock (Thailand)) were involved in cleanup and planting
activities and donated lunches, stationaries, sports
equipment and other necessities to children, and Yangon
Can Manufacturing in Myanmar donated lumber forconstructing a new temple building. Meanwhile, Toyo
Filling International in Thailand joined a school renovation
project and planting at a power plant in the WHA Eastern
Seaboard Industrial Estate. We will continue our social
contribution activities closely linked to local communities.

Toyo Seikan’s Hiroshima Plant was damaged by theflood of the Numata River when the torrential rain occurredin July 2018. Learning from this disaster, we have taken
measures to prevent the plant site from flooding caused byheavy rains. In October 2019, after a prayer ceremony forthe safety of construction work, the project to install barrier
walls began at the site and was completed in June 2020.
The plant is now prepared to work as a temporary shelter
for residents in the surrounding areas in an emergency.
We will build a network of mutual cooperation during
normal times while enhancing our education and training
frameworks to raise awareness of disaster prevention.

Toyo Glass received the award at
ceremony

Blood donation in Thailand

Internship ProgramGroup companies provide internship opportunities forstudents to deepen understanding of society and workthrough practical experience. In fiscal 2019, Komaki Plant
of TOMATEC accepted three students from neighboringhigh schools and conducted two days of practical training
for products such as frit and gel coat. We hope that young
people will find out the significance of working through thiskind of experience, increase their motivation to work, andplay an active role as a future leader in local communities.
Toyo Seikan is also engaged in internship programs
actively outside Japan; infiscal 2019, two of its groupcompaniesin
Thailand
accepted 17 interns, one
in Myanmar accepted 10
interns, and one in China
Internship at TOMATEC
took on 9 interns.

Joining TABLE FOR TWO
Since February 2018, the Group’s head office building
has participated in the TABLE FOR TWO initiative. Buying a
specific healthy meal at the canteen automatically makes adonation of 20 yen to school lunch programs in developing
countries. In fiscal 2019, we donated 93,030 yen,bringing the cumulative amountof donation to 210,480 yen. We
are also sending information on
this initiative to employees using
display panels.
TABLE FOR TWO menu

26

Next-Generation Fostering Support
Upper left / lower left:
Renovation and painting work at Ban Khao
Wang Man School in Thailand

Upper right / lower right:
Planting at WHA industrial estate

Fill and Provide Ethanol Sanitizer for Local
Medical Facilities
In response to a shortage of ethanol for disinfectionin Japan amid the COVID-19 pandemic, the Group
cooperated with the government of Kanagawa prefecture
to fill aluminum bottles with diluted high-concentration
alcohol and supply them as sanitizer refills to hospitals andclinics in the prefecture.
Under the special approval of the Ministry of Health,Labour and Welfare and the guidance of the relevant
government offices, we converted a research line to atemporary filling line to dilute high-concentration alcohol
procured by the Kanagawa government to 65 to 67
degrees, and packed it into 400 ml aluminum bottles. The
metal bottles were substitutes for plastic containers forrefill products, which were scarce under excess demand.
On April 30, 2020, Mr. Kuroiwa, Governor of Kanagawa
prefecture, stated his appreciation at press conference,saying “I would like toexpress my gratitude
to the Toyo SeikanGroup’s spirit, which
embodies its members’
willingness to face Research line
Can: Toyo Seikan
challenges together.”
Cap: Nippon Closures

Toyo Kohan makes donation every year to the
Kudamatsu City, where its Kudamatsu Plant operates,for next-generation fostering activities. In November
2019, sponsored by the donation, a small ensemble
performance by classical music duo SUGITETSU was heldin the city, inviting around 1,600 students in the fourth tosixth grades from local schools. There was performanceof classical masterpieces with exquisite arrangement, as
well as a composer name quiz, which made children enjoy
the concert. Being recognized for its support activities foryears, the company received the Education Merit Award
from the city and theChallenge Yamaguchi!
Community
Contribution Award from
Yamaguchi prefecture.

Agreement on Disaster Relief Supplies with
Sakura City in Tochigi
On July 26, 2019, Tochigi Plant of Nippon Tokan Package
signed an agreement on providing corrugated board beds
used at shelters in the event of natural disasters, such as
earthquake and flooding, with the city of Sakura in Tochigi
prefecture.
The direct agreement with a cardboard manufacturer
operating in the city is expected to allow for prompt supplyof cardboard beds to people in need. The agreement also
assumes that, in the event that the Tochigi Plant is damaged
by a disaster, other plants in Kanto area will produce andprovide the same
products. We will
do our best in an
emergency basedon the experience
we had in previous
natural disasters.

Cooperate with Komaki City in Social Welfare
Service “Security Capsule”
Agreeing with the aim of the “Security Capsule” project,which the Social Welfare Council of Komaki City, Aichi,
launches in cooperation with the city government, Tokan
Kogyo’s Komaki Plant donated 2,000 sets of PET cup
and dome-shaped lid used for the Security Capsules. The
capsule is to contain emergency contact information andhome doctor details of an individual who would need help
at a time of disaster and be stored in the refrigerator athome, expecting quick response in emergency transportand other rescue operations.

Aid for Disaster-Hit Areas
The Group is engaged in support activities
to aid relief and recovery efforts in areas
struck by severe natural disasters. In fiscal
2019, we made a donation of 10 million yen
through the Japanese Red Cross Society
to relief efforts for the victims of Typhoon
Hagibis (Typhoon No. 19 in 2019).

Major disaster relief donations
Year

2019
2018

2016

DisasterTyphoon Hagibis (No. 19
in 2019)
The July 2018 WesternJapan Torrential Rain

The 2016 Kumamoto
Earthquake

Amount donated

Recipient

10 million yen

Japanese Red Cross
Society

10 million yen

Japanese Red Cross
Society

10 million yen
Donation of containers

・700 thousand paper cups forbeverage・350 thousand paper bowls for food・12 thousand emergency toilet bags

Japanese Red Cross
Society
13 municipalities
with more than 1,000
evacuees that asked
for paper containers

Carton: Nippon Tokan Package
Toyo Seikan Group CSR REPORT 202027

GOVERNANCE

GOVERNANCE

GOVERNANCE

Corporate GovernanceCompliance

We strive to enhance our corporate governance to conduct businessfairly and honestly.

We value dignity, and are engaged in daily efforts to ensure fairness andequality in all aspects of our business activities in order to meet the
expectations of society.

G

Corporate Governance Structure https://www.tskg-hd.com/en/csr/governance/cgovernance/

Our Perspective on Corporate
GovernanceWe believe that the enhancement of corporate
governance under the Group’s management philosophy,
including its management policy, creed, and vision, is oneof the most important management issues in improving
our corporate value and continuing development andevolution while contributing to the society through ourbusiness activities. Based on this point of view, Toyo
Seikan Group Holdings (the “Company”) has formulated
the “Basic Corporate Governance Policy” to continuously
address this issue.
Based on Japan’s Corporate Governance Code, whichcame into effect on June 1, 2015, we will strive to further
enhance our corporate governance to achieve sustainablegrowth and increase corporate value.

Structures of Outside Directors andAuditors
The Company’s Board of Directors (the “Board”)
is composed of eleven Directors, of whom five are
independent outside Directors, representing more than
one-third of the Board. The Board generally meets once amonth and holds extraordinary meetings as necessary to
make important decisions on management matters. There
were 13 board meetings in fiscal 2019 (ended March
2020). The term of office for Directors is set at one year inorder to clarify Directors’ management responsibility andto flexibly establish a management framework that can
promptly respond to changes in business environment.
The Audit and Supervisory Board is composed of fiveauditors, of whom three are independent outside auditors.
The Audit and Supervisory Board generally meets oncea month and holds extraordinary meetings as needed.
There were 14 meetings of the Audit and Supervisory
Board in fiscal 2019.
The outside Directors, together with outside Audit andSupervisory Board Members, hold the outside directors’
meeting on a monthly basis in principle, where they havestraightforward discussions to enhance transparency andobjectivity in management. They are also actively engaged
in other duties, including on-site inspections of domestic
and overseas group companies.
In addition to active discussions at the Board meetings,
these outside Directors and outside Audit and Supervisory
Board Members conduct monitoring on managementwith an objective view of an outsider, which allows theCompany to ensure that surveillance function regarding
its management structure works effectively.

28

Executive Structure
The Company has introduced an operating officer
system to ensure management efficiency and flexibility as
well as to distinguish and clarify responsibilities for decisionmaking/supervision and business execution. It conducts
on a monthly basis the Management Strategy Meeting,which consists of full-time Directors, Heads in charge of
key organizational functions, Executive Officers, and theHead of Corporate R&D. The Company also holds twicea month in principle the Executive Management Meeting,which is attended by full-time Directors, Heads in chargeof key organizational functions, the Head of Corporate
R&D, and Presidents of major group companies.
The Company provides its directors and officers withtraining opportunities as needed to support them inacquiring and continuously updating necessary knowledge
for appropriate performance of their duties.
The Company has also established the GovernanceCommittee, a voluntarily established consultative bodyconsisting of the representative director and the fiveindependent outside directors. The committee is designed
for more objective, transparent and timely decisionmaking of the Board of Directors regarding such issues as
the appointment of representative directors and director
and auditor candidates and the remuneration of directors
and officers.

Structure of Internal Control System
Operation
The Company and other group companies operate
their internal control systems. The Company has set up
the Internal Audit Office, which operates directly under
the President, to ensure corporate activities compliant
with laws and regulations and improve the efficiency ofmanagement. The status of development and operationof the systems and law compliance is checked throughperiodic internal audits conducted by the Internal Audit
Office, and if necessary, improvement measures will betaken based on the audit results.

Main Activities in FY2019
Enhancement of Antimonopoly Act Compliance Framework

Bribery Prevention

We have taken steps to establish a group-wide
framework to comply with the Antimonopoly Act.

• In conjunction with the Group Regulations to Prevent
Bribery Involving Public Officials, established in 2018,
we have formulated new guidelines concerning
commercial bribery to enhance our commitment tobribery prevention.
• The aforementioned regulations and guidelines havebeen translated into English, Chinese, Thai andIndonesian to be disseminated to all group members
inside and outside Japan.
• We provided an e-learning course related to bribery
Involving public officials, which was attended by 2,242
managers from 15 major group companies in Japan.

Declaration of Complete Separation from Cartel
Involvement
The boards of directors of Toyo Seikan Group Holdings
and Toyo Seikan adopted the “Declaration of Complete
Separation from Cartel Involvement” to ensure compliancewith the Antimonopoly Act.
Declaration of Complete Separation from Cartel Involvement
The Toyo Seikan Group (the “Group”) shall conduct transactions
through free and fair competition that complies with the Antimonopoly
Act (the “Act”) and shall not engage in any activity that violates the
Act or that leads to a suspected violation of the Act with any business
operator that competes with companies in the Group.

Internal Regulations to Comply with the
Antimonopoly Act
As of April 30, 2020, Toyo Seikan Group Holdings
established new regulations to comply with the
Antimonopoly Act in order to ensure its fair businessactivities based on a free competition and to strongly urge
the group companies to comply with the Act.
Educational Program for Newly Assigned AssistantManagers
The Legal Department conducted four sessions of acollective educational program for newly assigned assistantmanagers at three locations: Tokyo, Kudamatsu andOsaka, with a total of 123 people attending the program.
They learned how to create documents that never leadto a suspected violation of the Antimonopoly Act andhow to effectively use
the Group’s internalreporting system.
This program will
be conducted on acontinual basis going
forward.
Other Activities• E-learning course on Antimonopoly Act (Cartel
Prevention) conducted with 1,607 attendees from sales
departments across domestic major group companies• E-learning course on competition laws provided for
employees at 34 overseas group companies• Written pledge to comply with the Antimonopoly Act
submitted by all employees in sales departments• Antimonopoly Act Compliance Card carried by all
employees in sales departments at all times

Deepen Understanding of the Group’s Code of Conduct
and Guidelines of Behavior

Every employee in the Groupholds the booklet on the Group’s
Code of Conduct and Guidelines
of Behavior. All new recruits of theGroup hired during fiscal 2019,
including both the new college
graduates and mid-career recruits,
were also given the booklet with explanation on the details
for deeper understanding.
In fiscal 2019, the Legal Department of Toyo SeikanGroup Holdings prepared educational materials anddistributed them to major group companies in Japan andabroad. Using the materials, individual group companies
conducted dissemination and education activities suitedfor their environment and situations.
Month-Long Group Compliance Promotion Campaign(October 2019)• Activities related to Group’scommon campaign theme
1) Compliance with the
Antimonopoly Act
2) Prevention of harassment
and abuse• Group Compliance Training
Seminar• Submission of the written
pledge to comply with ethics
and laws and regulations

Toyo Seikan Group CSR REPORT 202029

GOVERNANCE

GOVERNANCE

GOVERNANCE

G

Risk Management

Compliance

We implement risk management to achieve business continuity andgreater stability of our management infrastructure.

Enhancing Whistleblowing andConsultation System

Educational and Training Programs forGroup Members

Enhancing Risk and Crisis Management
Framework

Risk Management Efforts at Operating
Companies

We have established an internal reporting system thatcovers all group companies in Japan, Thailand and China
for early detection and correction of any non-compliance,
including human rights violation, bribery and corruption,and law violation.

Various programs and educational activities, including
the following, were conducted for domestic groupcompanies.

BCP (Business Continuity Plan) Drill

Structure of our internal reporting system

In June 2019, we invited an external lawyer as alecturer to conduct a training program designed for newly
appointed officers of the Group, with 24 new officers
attending.

As risk and crisis situations surrounding the Group are
becoming more diversified and complicated, risk andcrisis management is gaining importance. Responding
to this trend, as of October 1, 2019, we launched the
Risk Management Administration Office, a permanentorganization dedicated for building a solid framework forthe risk and crisis management across the group.
We also reorganized the Group Risk and Compliance
Subcommittee into the Risk and Crisis Management
Committee, and established the Group Information
Management Committee as a subcommittee of the Group
Risk and Compliance Committee. Meanwhile, Toyo SeikanGroup Holdings organized its Information Management
Committee.

Japan

Internal Consultation Desk
(individually managed by group companies)

Internal reporting system

Toyo SeikanGroup
Compliance
Hotlines

Overseas
Toyo Seikan
Group
Global Hotline

1) Corporate ethics
2) Sexual harassment
External Hotlines(commonly managed by the Group)1) Corporate Ethics Hotline
2) Sexual Harassment andInterpersonal Relations Hotline
ThailandChina

In Japan, to allow group members to easily access thereporting system, it is divided into internal and external
channels, and each channel has the contact points forreporting on “corporate ethics” and “sexual harassment
and Interpersonal relations.”
During fiscal 2019, there were 130 contacts in Japanand overseas, none of which would lead to material noncompliance or human rights violation.
When there is a contact to the system, we promptly
respond to it in accordance with our internal regulations.
We also continuously improve the system, revise relevant
regulations, and add and change learning menus in our
educational programs in order to prevent recurrence.
Other Efforts• We have been promoting employees’ better
understanding of the hotlines with posters and selfcheck cards.
• As of April 17, 2020, Toyo Seikan Group Compliance
Hotlines were registered under the self-declared
Whistleblowing Compliance Management System
Certification managed by the Consumer Affairs Agency.

Legal Training Program for Newly Appointed Group Officers

Theme: Liability and responsibility of operating officers

Group Compliance Training Seminar

In October 2019, the Group Compliance Training
Seminar was held, inviting an external professional as alecturer, and attended by 131 officers of group companies.
Theme:
Not just “Never be involvedin wrongdoing!” but “Do theright thing!”—aiming to build
a business structure that canpursue both ethics and profits

Other Training Programs

In the second half of fiscal 2019, the Legal Department
conducted a seminar on laws and regulations that are
related to our group. Staff members of the department
served as lecturers and a total of 943 people from relevant
departments across the Group attended the seminar.
Content

Dealing with the COVID-19 pandemic in Japan andabroad has been our top priority since February 2020. We
have been taking comprehensive measures to address
the situation as a group, including foreign subsidiaries.
It is our duty to ensure the continuity of the Group’s
operations related to food, beverages and householdproducts, which are essential for maintaining social
functions, while protecting the health of employees. We
are making the utmost efforts to contain infections bysteadily implementing preventive measures at all of ouroperations.

Number of attendees

Antimonopoly Act

15

595

Activities Planned for FY2020

Subcontract Act

781

Amended Law of Obligations

13

267

We will place high priority on the following two items in
the Group’s risk and crisis management activities for thecurrent year.
1) Initiate a three-year plan of group-wide risk management
activities
2) Formulate and disseminate our risk management policy

We are working to raise awareness of compliance as awhole group through individual compliance activities bygroup companies and our efforts to share information on
accidents and events occurring in the society.

Major Activities Planned for FY2020

30

Addressing the COVID-19 pandemic

Number of sessions

Collect and Transmit Compliance-Related Information• Maintaining and enhancing the Antimonopoly Act
compliance framework• Improving the validity of the internal reporting system• Promoting full understanding of the Group Regulations
to Prevent Bribery Involving Public Officials• Month-long group compliance promotion campaign

Toyo Kohan conducts a BCP drill every year. The drill
for fiscal 2019 was performed in October 2019, assumingthat a heavy rain caused flooding in several areas of its
Kudamatsu Plant and brought the rolling line to a 14 day
suspension. In the drill, the head office and the plant worked
together to confirm the procedures for an emergency,
sharing information on the safety of employees, the statusof the damage to equipment and product inventories, andhow to deal with planned deliveries to customers. They
also checked the hazard map of the plant site and theirprotection team’s response to a heavy rain based on theassumed scenario.

Thai Subsidiary Joins Police-Led Safe Driving Campaign

Toyo Filling International joined a safe driving campaign
led by the police and the Industrial Estate Authority ofThailand (IEAT). The company participated in educational
activities to encourage people to observe traffic rules anddistributed souvenirs to participants.

Risk Assessment Workshop

In August 2019, TOMATEC conducted a workshop
for studying comprehensive risk assessment, inviting an
external instructor, to raise safety awareness and improve
the overall efforts at individual plants. The workshop washeld through a video conference system. In the first halfof the session, participants learned the basic points ofrisk assessment (having a common understanding of risks
and implementing measures in order of priority). In thesecond half, they were divided into groups and worked oncase studies of past events in the company to discuss risk
extraction and assessmentand measures to reduce risks.
Based on what they learned
this time, they will continue
to develop health and safety
activities going forward.
Toyo Seikan Group CSR REPORT 202031

Toyo Seikan Group Companies 94(Japan: 43, Overseas: 51)
As of June 30, 2020

: Consolidated subsidiary

Toyo Seikan Group Holdings, Ltd.

● KOHAN KOGYO CO.,LTD.
Manufactures and sells steel bands, automatic binders, hard alloys andmanufactures magnetic disk aluminum substrates

Holding Company● TOYO PACKS CO.,LTD.

Toyo Seikan Co., Ltd.
Manufactures and sells various kinds of cans and containers and filling
equipment● Honshu Seikan Co., Ltd.
Manufactures and sells 18 liter cans, metal cans and general line cans

● Nippon National Seikan Co., Ltd.

Manufactures and sells packing materials and packing work

● KYODO KAIUN CO.,LTD.
Marine transport and harbor transport services, custom agent services● TOYO PARTNER CO., LTD.
Services related to employee welfare facilities and others■ Kudamatsu Unyu Co., Ltd.
Land transport, harbor transport services, custom agent services andwarehousing

Manufactures and sells beverage cans

● Ryukyu Seikan Kaisha, Ltd.
Manufactures and sells PET bottles and sells metal cans

● Toyo Seihan Co., Ltd.
Manufactures and sells printing plates for printing metal and film

● Fukuoka Packing Co., Ltd.
Manufactures and sells sealant for metal, plastic and glass containers● TM Pack Co., Ltd.
Contract filling of PET-bottled beverage products● TOYO-MEMORY TECHNOLOGY SDN.BHD. (Malaysia)● Toyo Seikan Group Engineering Co., Ltd.
Manufactures and sells canning machinery, bottling machinery, packaging
machinery and food processing machinery● Toyo Mebius Co., Ltd.
Trucking, warehousing and others■ T&T Enertechno Co., Ltd.
Manufactures and sells packaging material mainly for lithium-ion secondary
batteries● Bangkok Can Manufacturing Co., Ltd. (Thailand)
Manufactures and sells 2-piece aluminum cans, welded cans and aluminumends● Next Can Innovation Co., Ltd. (Thailand)
Manufactures and sells 2-piece steel & aluminum cans

● Toyo Seikan (Thailand) Co., Ltd.
Manufactures and sells general plastic products; manufactures and sells
beverage PET bottles and provides contract filling; a technical support
center and administration of group companies● Kanagata (Thailand) Co., Ltd.
Manufactures and sells molds for plastic products● Global Eco-can Stock (Thailand) Co., Ltd.
Manufactures and sells resin-coated aluminum materials■ Yangon Can Manufacturing Co., Ltd. (Myanmar)
Manufactures and sells beverage cans

● Toyo Pack (Changshu) Co., Ltd. (China)■ MIYAZU MALAYSIA SDN. BHD. (Malaysia)
Auto parts production, and design and production of the dies, and sale

● TOYO KOHAN SHANGHAI CO., LTD. (China)
Sells steel sheet related products, hard materials and automatic binders andprovides related services■ TOYO KOHAN JIANGSU CO., LTD. (China)
Manufactures laminated steel sheet for cans■

Manufactures and sells 2-piece aluminum cans and ends

■ Asia Packaging Industries (Vietnam) Trading Co., Ltd.
Sells 2-piece aluminum cans and ends

Manufactures and sells tin plates, thin plates, and various surface-treatedsteel sheets and various functional materials● Fuji Technica & Miyazu Inc.
Manufactures and sells stamping dies for car bodies and various molds● KOHAN SHOJI CO.,LTD.

32

Sells steel sheets and their processed products● Tokan (Changshu) High Technology Containers Co., Ltd. (China)
Manufactures and sells plastic products● TAIYO PLASTIC CORPORATION OF THE PHILIPPINES
Manufactures and sells plastic products● T.K.G. CORPORATION (Philippines)
Land leasing■ TAIWAN TOKAN CORPORATION
Manufactures and sells paper packaging containers products

Stamping die and jig design for the body, NC data creation■ FUJI RAYHOO ENG. INC. (China)
Stamping die and jig design for the body, NC data creation■

YANTAI FUJI MITSUI AUTOMOTIVE DIE & PARTS CO.,LTD. (China)

Manufactures and sells metal and plastic closures● Shin-Sankyo-Pd.
Trucking business● Crown Seal Public Co., Ltd. (Thailand)
Manufactures and sells metal and plastic closures and crown closures
Sells metal and plastic closures
Sells metal closures■ PT. INDONESIA CAPS AND CLOSURES (Indonesia)
Manufactures and sells plastic closures■ NCC Crowns Private Ltd. (India)
Manufactures and sells metal closures

Manufactures and sells automatic binders■ TOSYALI TOYO CELIK ANONIM SIRKETI (Turkey)
Production and sales of cold rolled steel sheet and surface treated steel
sheet■ Toyo Kohan America Inc. (USA)Business management etc. of business company in North America■ Polytech America, LLC (USA)Development and manufactures and sells laminated steel sheet in North
America■ FUJI TECHNICA & MIYAZU AMERICA INC. (USA)Die and body technology facilities order intermediation, procurement of a die
design, an inspection jig, the proto panel of the order product■ PT. FUJI TECHNICA INDONESIA (Indonesia)
Auto parts production, and design and production of the dies, and sale

TOYO GLASS CO., LTD.
Manufactures and sells glass bottles● TOYO - SASAKI GLASS CO., LTD.
Manufactures and sells glassware● Toyo Glass Machinery Co., Ltd.
Manufactures and sells molds for glass and plastic bottles, and glass bottle
manufacturing machinery● TOHOKU KEISYA CO., LTD.
Manufactures and sells silica sand

● TOSHO GLASS CO., LTD.
Sells glass products● TOYO GLASS LOGISTICS CO., LTD.
Trucking business, various yard operation contracting

Tokan Kogyo Co., Ltd.
● Nippon Tokan Package Co., Ltd.
Manufactures and sells cardboard products and paper container products● Tokan Kosan Co., Ltd.
● Tokan Takayama Co., Ltd.
Manufactures and sells paper packaging container products and lid
products● Tokan Logitech Co., Ltd.
Trucking● Sunnap Co., Ltd.

Manufactures and sells Synthetic resin and Printing ink● TOMATEC (Shanghai) Fine Materials Co., Ltd. (China)
Manufactures and sells complex inorganic color pigment● TOMATEC (Xiamen) Fine Material Co., Ltd. (China)
Manufactures and sells frit products● TOMATEC America, Inc. (USA)
Imports and sells complex inorganic color pigment and frit products● PT. TOMATEC INDONESIA (Indonesia)

Can Machinery Holdings, Inc. (USA)Holding Company● Stolle Holdings, Inc. (USA)Holding Company● Stolle Machinery Company, LLC (USA)Develops, manufactures and sells can and end manufacturing machines
and provides related services● Stolle Europe Ltd. (U.K.)
Sells can and end manufacturing machines and provides related services

Stolle Machinery do Brasil Industria e Comercio●
Equipamentos Ltda. (Brazil)
Manufactures and sells can and end manufacturing machines and provides
related services● Stolle Asia Pacific Co., Ltd. (Vietnam)● STOLLE MACHINERY (SHANGHAI) CO., LTD. (China)
Sells can and end manufacturing machine parts● Stolle Machinery (Guangdong) Co., Ltd.
Manufactures and sells can manufacturing machine parts● Stolle EMS Group Limited (U.K.)
Holding Company● Stolle European Manufacturing Solutions Limited (U.K.)
Manufactures and sells can manufacturing machines and provides related
services● Stolle EMS Precision Limited (U.K.)
Manufactures and sells can manufacturing machine parts● Stolle EMS Polska Sp. z o.o. (Poland)
Manufactures and sells can manufacturing machines and provides related
services● ICHINOSE-TRADING CO., LTD.
Sells glass bottles and accessories

Manufactures and sells paper and plastic packaging container products■ ISHIKAWA INK CO.,LTD.

Sells can and end manufacturing machine parts and provides related
services

Mortor parts production and design production, sale of the die■ KOHAN KOGYO KOREA CO.,LTD. (Korea)

Manufactures and sells frit products, complex inorganic color pigment, gelcoat and composite micronutrient fertilizer

Nippon Closures Co., Ltd.

● NCC Europe GmbH (Germany)■ YANTAI FUJI WILSON ENGINEERING CO., LTD. (China)

TOMATEC CO., LTD.

Manufactures and sells frit products and complex inorganic color pigment

Trading stamping dies and other products & services for customers in China

Manufactures and sells agricultural films

Toyo Kohan Co., Ltd.

Manufactures and sells plastic and paper products● Riguan Closure (Changshu) Co., Ltd. (China)● Toyo Mebius Logistics (Thailand) Co., Ltd.
■ Asia Packaging Industries (Vietnam) Co., Ltd.

■ Shida Shiko Co., Ltd.

YANTAI FUJI TECHNICA & MIYAZU TRADING INC.
(China)Manufactures and sells beverage PET bottles and provides contract filling
Trucking business

Manufactures and sells paperwares

Manufactures and sells aluminum substrates for magnetic disks● Japan Bottled Water Co., Ltd.
Manufactures and sells bottled water related materials for delivery service● Shosando Co., Ltd.

Mebius Packaging Co., Ltd.

Tokan Trading Corporation
Sells packaging materials, petrochemical products and food machinery,equipment & parts

Manufacturing and sales of plastic products

Tokan Kyoei Kaisha, Ltd.
Toyo Aerosol Industry Co., Ltd.

Offers insurance products, real estate rental management services, andtourism services

Contract manufacturing and sales of aerosol and general filling products● Toyo Filling International Co., Ltd. (Thailand)
Contract manufacturing and sales of aerosol and general filling products■ Toyo & Deutsche Aerosol GmbH (Germany)
Manufactures and sells aerosol products

Plans and sells paper and plastic dishwares

Toyo Seikan Group CSR REPORT 202033