CSR REPORT 2009 - toppan.co.jp

CSR REPORT 2009Report on Corporate Social Responsibility Activities

IEditorial PolicyToppan is disclosing information in the hopes of encouraging dialogue on socialand environmental activities with more people, especially people who have aninterest in Toppan’s CSR activities.IPeriod CoveredThis report mainly covers activities in fiscal 2008 (April 2008 to March 2009),though information on prior and later years is also included in parts.IScope and Boundary of this ReportIn principle, this report covers the social and environmental activities of ToppanPrinting Co., Ltd. (“the Company”) and Group entities consolidated for accountingpurposes. Most of the information on personnel applies to personnel within ToppanPrinting Co., Ltd., the parent company. The boundary of environmental perfor-mance data and environmental accounting is presented on P. 52. Sixty-twodomestic sites and 22 overseas sites are ISO 14001 certified. ISelecting the Information for this Report In selecting the information to present in this CSR report, Toppan assesses the“materiality” of the information for society and the Company itself.

To assess whether information can be considered material for society, Toppanholds in-house discussions on the following points: independent reviews andthird-party opinions, questionnaire responses to CSR reports from inside and out-side the Company, other opinions gleaned from dialogues inside and outside theCompany, the content of various guidelines (such as the Environmental ReportingGuidelines [fiscal 2007 version] from the Ministry of the Environment of Japan andthe GRI Sustainability Reporting Guidelines 2006 from the Global ReportingInitiative [GRI]), questionnaire items from third-party organizations, and CSR-related information from media and news agencies. IReliabilityKPMG AZSA Sustainability Co., Ltd. provides external assurance for this report.As a testament to the reliability of the sustainability information in this report,Toppan is authorized to attach the following mark. This means that the reportmeets the standards for sustainability report assurance and registration estab-lished by The Japanese Association of Assurance Organizations for SustainabilityInformation (http://www.j-sus.org/).

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

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

This site posts the latest information on ISO 14001 certification, data on theGlobal Reporting Initiative (GRI) content index, and other forms of CSR informa-tion. If erroneous entries or misprints are found after CSR reports are issued, therelated information will be shown here.

Details on corporate governance can be found at the following URLs.•Corporate governance reports: http://www.tse.or.jp/tseHpFront/HPCGDS0701E.do?method=init&callJorEFlg=1 (in Japanese)

•Financial statements: http://info.edinet-fsa.go.jp/ (in Japanese)

Terms Used in this Report

•CSR: Corporate social responsibility•Stakeholder: A person (or interested party) who has a direct or indirect relation-ship with a corporation, such as a customer, employee, shareholder/investor, orbusiness partner. A community or society as a whole can also be a stakeholder.

•Stakeholder dialogue: Dialogue and exchange of views with stakeholders•Corporate governance: Framework for the governance of corporate activities•Compliance: Observance of laws, regulations, and corporate ethics•PDCA: A sequence of four procedures—Plan, Do, Check, and Act

Cover

Toppan expresses its commitment to communicate with society in the three pri-mary colors of printing: blue for sincerity, red for enthusiasm, and yellow forcreativity. Toppan takes a sincere, enthusiastic, and creative approach in com-munication to fulfill the expectations of all of its stakeholders, from customers and employees to shareholders/investors, business partners, communities, andsociety at large.

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

Publication Dates

Previous report: November 2008Current report: October 2009Next report: October 2010 (planned)

Contact Information

CSR Promotion Department, Legal Affairs Division, Toppan Printing Co., Ltd.(Tokyo, Japan) Email: [email protected]

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

TOPPAN CSR REPORT 2009 1

Executive Message 2

Group Business Outline 4

Highlights 2008–2009

Special Reports: Businesses Designed to Help Solve Social Issues 8

CSR Activity Topics 12

CSR Management

Toppan’s Social Responsibility 16

Review of CSR Activities and New Initiatives 20

Corporate Governance 24

Compliance 26

Information Risk Management 28

Conduct Guidelines and Information Management Policy 30

Social Report

For Customers 32

With Business Partners 36

With Communities 38

With Employees 42

With Shareholders and Investors 50

Environmental Report

Overview of Environmental Activities 52

Review of Fiscal 2008 Results and Future Targets 54

Environmental Management 58

Environmental Conservation Activities 64

Environmentally Friendly Products and Environment-related Business 68

Conserving Biodiversity 71

Environmental Data 72

Third-party Opinion and External Assurance

Third-party Opinion 77

External Assurance 78

Company Reaction to the Third-party Opinion andExternal Assurance 80

Contents

TOPPAN CSR REPORT 20092

To Be a Trustworthy, Respected, and RobustCorporation

The subprime loan crisis in the United States has triggered

economic downturns all over the world. The current world-

wide recession has stirred chaos in the global economy,

causing great damage to many companies in many countries.

Toppan has not been spared. While we have striven to

create new businesses, accelerate global business opera-

tions, and increase profitability through structural reforms

and cost reductions, business results have worsened.

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

ever reported since its listing in 1949.

The Toppan Group is now orchestrating full-fledged mea-

sures for the early recovery of its business performance.

I feel that it is exactly in such a situation that we must press

on firmly with our corporate responsibility initiatives.

Sustainable development and the sustainable growth of

a company are mutually dependent; neither can exist with-

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

our own corporate social responsibilities towards sustain-

able development and the sustainable growth of the

Company. In our ongoing drive to fulfill our corporate social

responsibilities globally, we have been participating in the

United Nations Global Compact and supporting its 10 prin-

ciples since September 2006.

I have always urged employees to work together to build

up a company that is trusted and respected by society and

remains strong based on this foundation of trust. It is now

the time, I am convinced, to grasp the significance of this

slogan and move into action.

Towards a Sustainable Society

We position TOPPAN VISION 21 as the foundation for all

of our corporate activities.

TOPPAN VISION 21 consists of a Corporate Structure

(the Corporate Philosophy, the Corporate Creed, and a set

of Conduct Guidelines defining the Group’s important val-

ues and standards) and five Business Fields based on the

Corporate Structure.

In my view, the goal of Toppan’s corporate social respon-

sibility is to realize the Corporate Structure. All of the peo-

ple working in the Group must accurately understand their

responsibilities to society and to stakeholders, and endeavor

to fulfill those responsibilities in their daily business opera-

tions. Our progress in this direction is certain to help Toppan

contribute to the creation of a sustainable society.

Reviewing Environmental Management

In 2008, the concerted action of international society to

mitigate global warming moved into a new phase. Global

leaders met to discuss the environment at the Hokkaido

Toyako Summit in Japan, and the first commitment period

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


of the Kyoto Protocol was commenced across the globe.

Toppan established the Ecology Center in 1991 at the

head office to implement Company-wide environmental

conservation activities on a full scale. Through intensive

reviews from a managerial viewpoint, however, we have

discovered various inconsistencies and inefficiencies in our

environmental activity.

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

Activities in fiscal 2008, a series of environmental measures

to spread augmented cost-reduction and morale-improving

effects onto our corporate operations. Plant managers

across Japan have been appointed to run and oversee the

activities, while directors have promoted their own measures

to position environmental considerations as stable and

familiar elements of employee operations at Toppan. We will

advance the activities by setting numerical targets on specific

measures and conducting audits and reviews repeatedly.

Photovoltaic power generation, meanwhile, has been

drawing recent attention as a leading environmentally friendly

power source using green energy.

Solar cell back sheets from Toppan are fabricated based

on a vacuum deposition process for highly functional bar-

rier films, a technology acquired in the Living Environment

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

of Japan’s largest-scale manufacturing facilities for next-

generation back sheets for solar cells (in Fukaya City,

Saitama). The cells fabricated with the back sheets output

from this new plant each year will have an annual power

generation capacity of more than 2 gigawatts.

Just as a car must have wheels, our environment man-

agement must have environmental conservation activities

and systems in place for the development and production

of environmentally friendly products. And just as the wheels

of a car must rotate in synchronicity, so too must the com-

ponents of our environmental management.

The Toppan Group strengthened the organizational func-

tions of the Ecology Center to reinforce its environmental

management in fiscal 2008. The Group also reviewed

Toppan’s Declaration on the Global Environment and estab-

lished The Toppan Group Declaration on the Global

Environment, in April 2009. We have reaffirmed our deter-

mination to accelerate environmental activities across Group

companies on every level.

Towards Awareness and Solutions for Broader Social Issues

Another important initiative for fulfilling Toppan’s social

responsibility, as I see it, is to recognize broader social

issues and provide products and services to help resolve

them in parallel with issues to do with the environment.

To cite an instance, our microfabrication and coating

technologies have been applied to develop single nucleotide

polymorphism (SNP) chips for genotype analysis. An SNP

chip can easily detect a gene signature from a single drop

of a patient’s blood. These chips will play a vital role in real-

izing optimal therapies for individual patients through per-

sonalized medicine. The benefits from this will be multifold,

beginning with reductions in the incidences of excessive

dosing and adverse drug effects. Over time, the ever-rising

expenses for medical care will be better contained.

In a contest held based on the principles of the Corporate

Philosophy in fiscal 2008, the Company encouraged employ-

ees to submit business proposals for the resolution of

broader social issues. We hope to enhance employee

awareness of social issues throughout the Company and

begin developing employee ideas into new businesses with

socially redeeming values for the future.

Working with Our Stakeholders

Corporate social responsibility is a responsibility to all corpo-

rate stakeholders. Stakeholders will seldom be satisfied with

a company’s CSR activities, no matter how thoroughgoing

or extensive, unless the activities are designed to respond to

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

geration to report that we begin every effort to fulfill our

CSR by listening sincerely to the voices of the stakehold-

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

For better focus and refinement in our dialogues with

stakeholders, we began convening the CSR Promotion Study

Group in an annual meeting to observe and evaluate our

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

The suggestions, opinions, and advice offered in the sec-

ond meeting, held in February 2009, will be used to improve

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

Henceforth, Toppan will be promoting information dis-

closure on CSR activities as a fundamental approach for

communication with stakeholders. We are eager to hear

your candid opinions in this regard.

The Toppan Group will maintain its work to serve society

as a trustworthy, respected, and robust corporation com-

mitted to the creation of rich and fulfilling lifestyles in a sus-

tainable world. We rely on your ongoing support and

guidance in the future.

July 2009

Naoki AdachiPresident & CEO

Toppan Printing Co., Ltd.


INext-generation ProductsProviding high-performance industrial materials with links to the next generation by developing fields of business with growth potential

ISecurities and Cards ICommercial Printing IPublications Printing

IPackaging IIndustrial Materials

IFor Displays IFor Semiconductors

IHigh-performance Components

IHydrogen sensor

IMapion, Internet-based map information service (in Japanese)

IPersonal ServiceProviding customers with Toppan’s original brand of innovative information services and devices to enrich the links between people and goods

IInformation & NetworksProviding solutions to increase the value of information and effectively deliver information for clients who require smooth communication

ILiving EnvironmentProviding customers around the world with products and services optimal for creating fulfilling lifestyles in fields such as medicine, food, and housing

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

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

Corporate ProfileCorporate name

Toppan Printing Co., Ltd.

Head office

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

Established

January 17, 1900

President & CEO

Naoki Adachi

Number of employees (Nonconsolidated)

11,548 (as of the end of March 2009)

Number of employees (Consolidated)

47,522 (as of the end of March 2009)

Capital (Nonconsolidated)

104.9 billion yen

Group ProfileThe Toppan Group comprises Toppan PrintingCo., Ltd. and 219 related companies (195subsidiaries and 24 affiliates) engaged in man-ifold businesses in three main fields:Information & Networks, Living Environment,and Electronics.

On page 5 you will find an outline of thepositioning of Toppan and its related compa-nies in these fields.(The business divisions in the Business Fieldson page 4 are presented under the new cor-porate structure adopted from April 2009.)

Business Fields


Notes:•No symbol: subsidiary—195 companies ∗: affiliates—24 companies (as of the end of March 2009)•Toppan Group’s business activities are usually divided into five fields. Here, however, they are divided into three fields based on the current sizes of thebusinesses and other factors.

•The composition ratios given under each business field are percentages of overall sales contributed. (The Net Sales by Business Field are shown on P. 7.)• Among Toppan’s subsidiaries, Toppan Forms Co., Ltd. and Tosho Printing Co., Ltd. are listed on the first section of the Tokyo Stock Exchange.•Toppan Printing Co., Ltd. completed the procedures to acquire SNP Corporation Pte. Ltd. of Singapore in September 2008. Toppan Printing’s voting interest inSNP Corporation is 100%. Consequently, SNP Corporation Pte. Ltd. became a consolidated subsidiary of Toppan Printing Co., Ltd.

•Toppan operational sites span across 21 countries and regions, including Japan.

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

Toppan Group Structure

Customers

Manufacturing CompaniesToppan Display Co., Ltd.

Toppan Graphic Co., Ltd.

Toppan Graphic Communications Co., Ltd.

Toppan Seihon Co., Ltd.18 other companies

Toppan Forms Tokai Co., Ltd.12 other companies

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

∗Data Products Toppan Forms Ltd. (Thailand) 7 other companies

Manufacturing and Sales CompaniesToppan Forms Co., Ltd.

Tosho Printing Co., Ltd. 5 other companies

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

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

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

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

∗Beijing SNP Leefung Changcheng Printers Co., Ltd. (PRC)

2 other companies

Sales Companiesfroebel-kan co., ltd.

Total Media Development Institute Co., Ltd.

Toppan Travel Service Corp.

Toppan Multisoft Ltd.

Tokyo Shoseki Co., Ltd. 24 other companies

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

SNP Corporation Pte. Ltd. (Singapore)

Toppan Printing Co. (Australia) Pty. Ltd. (Australia) 33 other companies

Manufacturing CompaniesToppan Plastic Co., Ltd.

Toppan Kansai Packs Co., Ltd.

Toppan Saga Yoki Co., Ltd.

Mikkabi Toppan Printing Co., Ltd. 18 other companies

Manufacturing and Sales CompaniesToppan TDK Label Co., Ltd.

Toppan Containers Co., Ltd.

Tamapoly Co., Ltd.

Toppan Prosprint Co., Ltd. 1 other company

∗Toyo Ink Mfg. Co., Ltd. 3 other companies

P.T. Toppan Printing Indonesia (Indonesia)

Toppan Interamerica Inc. (USA) 7 other companies

Sales CompaniesToppan Cosmo, Inc.

4 other companies

Manufacturing CompaniesNiigata Toppan Printing Co., Ltd.

Toppan Shiga Seimitsu Co., Ltd. 5 other companies

Manufacturing and Sales CompaniesNEC Toppan Circuit Solutions, Inc.

Toppan CFI (Taiwan) Co., Ltd.

Toppan Photomasks, Inc. (USA) 11 other companies

∗Advanced Mask Technology Center GmbH & Co. KG (Germany)

1 other company

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

Products

Materials

Service

Inform

ation &

Netw

orks 59%

To

pp

an Printing

Co

., Ltd. (M

anufacturing and

sales com

pany)

Living E

nvironm

ent 24%E

lectronics 17%


The Japanese economy faced anextremely severe situation in fiscal 2008.The vast slowdown of the world econ-omy originating from the U.S. had anextreme impact on real economic activ-ities in Japan. Corporate profits rapidlyshrank, resulting in a spread of produc-tion and employment adjustments anda precipitous decline in stock markets.In the printing industry, the prices ofpaper and raw materials rose markedlyas a side effect of the sharply higherprices of crude oil. Toppan and otherprinting companies were forced to oper-ate in an unforgiving business environ-ment marked by cuts in corporateadvertising expenditure, sluggish per-sonal consumption, and significant stag-nation in the electronics-related marketin the second-half of the fiscal year.

In the time intervening, the Toppan

Group has pressed forward full-fledgedefforts based on the Corporate Structureand five Business Fields for the 21stcentury, as defined in TOPPAN VISION21. In the Information & Networks field,the Group has provided market-ori-ented, high-added-value solutions for abroad range of customers. In the LivingEnvironment field, it has stepped up thedevelopment and sales of productsresponsive to the growing demands forsafety and eco-friendliness. In the Elec-tronics field, it has striven to enhancecompetitiveness through technologydevelopment and optimized productionsite arrangements globally. And in theInformation & Networks field, it hasintegrated its sales departments andworked to reduce costs and improvequality. Yet with the worldwide recessionstemming from the subprime loan crisisin the U.S., Toppan’s operating perfor-mance was hit especially hard in thesecond-half of the fiscal year.

Consequently, consolidated net salesdecreased to 1,617.3 billion yen in fiscal2008 (a 3.2% decline from the previousyear), while consolidated operatingincome decreased to 29.1 billion yen (a 59.5% decline from the previous year).As a result, Toppan weathered aconsolidated net loss of 7.7 billion yen(versus a consolidated net income of38.5 billion yen in the previous year),principally due to the inclusion of a lossfrom valuation of marketable securitiesand investment securities and animpairment loss of long-lived assets dueto underperforming operations atToppan Photomasks, Inc., a companyhard hit by the deepening slump insemiconductors.

Outline of ConsolidatedOperating Performance

Net Sales Operating Income Net Income or Loss

Number of Employees

35,954

10,582

36,757

10,899

47,522

11,548

38,570

11,181

32,724

10,548

35,954

10,582

60,000

40,000

50,000

20,000

10,000

30,000

2005

36,757

10,899

47,522

11,548

2006

38,570

11,181

2007 2008

32,724

10,548

20040

■Consolidated ■Nonconsolidated (Employees)

(Fiscal year)

Number of Employees by BusinessField (Consolidated)

Electronics6,672 Company-wide positions 973

Living Environment11,510

Information & Networks28,367

(Employees)

15.121.9

50

40

20

10

–10

30

2005

26026.020.2

2006

38538.5

25.2

–7.7–7.7

585.8

2007 2008

40.5

21.5

2004

0

■Consolidated ■Nonconsolidated (Billion yen)

(Fiscal year)

910

721

91.0

38.0

100

80

40

20

60

2005

69.3

30.3

2006

72.1

31.6 29129.1

7.8

2007 2008

86.9

39.9

20040


(Fiscal year)

1,548.2

947.1 948.7

1,413.5

952.8 947.1

1,800

1,200

1,500

600

900

300

2005

1,557.8

948.7

2006

1,022.9

1,670.3

1,022.9 967.6

1,617.3

967.6

2007 2008

1,413.5

952.8

20040


(Fiscal year)


Net Sales by Business Field

Net Sales by Region

Key Financial Data (Consolidated)

Capital Expenditures Total Assets & Return on Assets (ROA)

R&D Expenses Net Assets & Return on Equity (ROE)

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

Net sales (million yen)

Operating income (million yen)

Net income or loss (million yen)

Total assets (million yen)

Net assets (million yen)

Interest-bearing debt (million yen)

Capital expenditures (million yen)

R&D expenses (million yen)

Current income taxes (million yen)

Share price—high (yen)

Share price—low (yen)

Net income or loss per share (Basic) (yen)

Net income per share (Diluted) (yen)

Shareholders’ equity per share (yen)

Dividends per share (yen)

Return on assets (ROA; %)

Return on equity (ROE; %)

Cash and cash equivalents at end of period (million yen)

Number of employees

Fiscal 2004

1,413,58086,93840,574

1,483,477768,245205,00886,62522,25522,1541,3801,00260.0959.94

1,154.2119.00

2.85.4

168,80432,724

Fiscal 20051,548,208

91,08515,148

1,727,636803,678304,736119,22127,59334,0731,6481,05022.1322.02

1,216.0420.00

0.91.9

206,97435,954

Fiscal 20061,557,876

69,37626,067

1,837,719918,002359,631133,72229,13232,3541,6451,16139.5839.40

1,222.2720.00

1.53.2

240,59636,757

Fiscal 20071,670,351

72,15338,523

1,787,408940,303290,32472,91129,73216,2141,396

96558.6358.49

1,223.4122.00

2.14.8

224,31538,570

Fiscal 20081,617,341

29,186–7,730

1,681,745867,738343,54692,02228,79113,2911,230

523–11.87

—1,148.00

22.00–0.4–1.0

236,19647,522

Notes:1. Net sales do not include consumption taxes.2. The number of employees is the number of employees working at the Company. The

number of non-regular employees for fiscal 2008 stood at 6,912 on consolidated basisand 1,270 on a nonconsolidated basis (the average number of employees throughoutthe fiscal year, including part-time workers but excluding temporary staff).

3. The net income per share (diluted) for fiscal 2008 is not included in the above table.This amount turns out to be a net loss per share in spite of the dilutive shares issued.

4. Net assets have been calculated based on the “Accounting Standard for thePresentation of Net Assets in the Balance Sheet” and the “Guidance on theAccounting Standard for the Presentation of Net Assets in the Balance Sheet” sincefiscal 2006.

5. High and low share prices are prices on the first section of the Tokyo Stock Exchange.

Other regions 30.7 (2%)Asia, excluding Japan99.7 (6%)

Japan 1,486.8 (92%)

(Billion yen)

Electronics282.0 (17%)

LivingEnvironment385.5 (24%)

Information & Networks949.7 (59%)

(Billion yen)

(Fiscal year)

(%)(Billion yen)2,000

1,500

1,000

500

0

3.0

2.0

1.0

0

–1.0

1,727.6

2005

1,483.41,483.4

0.91.5

2.8

0.9

1,837.7

2006

1,787.41,681.7

2007 2008

1.5

2.12.1

–0.4–0.4

2004

2.8(Billion yen)

(Fiscal year)

150

120

90

60

30

0

86686.6

2004

119.2

2005

133.7

2006

72.9

92.0

2007 2008

(Fiscal year)

(%) (Billion yen)1,000

200

400

600

800

0

8.0

6.0

4.0

2.0

0

–2.0

803.6

2005

768.2

1.9

3.25.4

1.9

918.0

2006

940.3940.3867.7

2007 2008

3.2

4.84.8

–1.0–1.0

2004

5.4

(Fiscal year)

(Billion yen)35

14

21

28

7

0

22.2

2004

27.5

2005

29.1

2006

29.7 28.7

2007 2008

Towards the Realization of PersonalizedMedicineGenotype Analysis System with SNP Chips

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

When patients undergo personalized medicine, they receiveoptimal individualized therapies suitable for their own phys-ical characteristics. A genotype screening of a patient withleading-edge analytical technologies before prescription ofmedication will enable a doctor to assess whether a drugwill have a favorable or adverse effect on the patient andprescribe an appropriate drug at the optimal dose.

If adopted widely, personalized medicine will help to min-imize the administration of drug regimens likely to be lessefficacious or to have side effects. This, in turn, will helpprevent and alleviate pain and physical burdens for patientsand limit healthcare expenditures through enhancements inthe efficiency of medical care.

Since 2003, researchers running the BioBank JapanProject on the implementation of personalized medicinehave been laying the groundwork for the realization of per-sonalized medicine in Japan. This project team has alreadycollected DNAs, blood serum, and clinical data from some300,000 subjects with 47 types of disease. With these sam-ples and data, the team has been carrying out studies toidentify how individual genetic differences correlate with drugefficacy, side effects, and disease.

Since 1999, Toppan has been establishing a set of newresearch themes with the aim of launching businesses in thelife sciences, a field of growing importance for society. Basedon the themes, the Company has worked together withRIKEN, Japan and other entities to develop a genotype

analysis system with single nucleotide polymorphism (SNP)*chips for medical application. Toppan, RIKEN, and RIKENVenture Capital Co., Ltd. jointly founded a new companycalled RIKEN GENESIS CO., LTD. in October 2007.Researchers at RIKEN GENESIS seek to realize the practicaluse of personalized medicine by providing genotype analysisservices on a contract basis and marketing compact geno-type analysis systems and chips applicable to patient exam-inations at hospitals and other healthcare facilities.

Personalized Medicine and Toppan

Genotype Analysis System with SNP Chips forMedical Application

Millennium Development Goalshttp://www.undp.org/mdg/

BioBank Japan Project on the implementation of personalized medicinehttp://www.biobankjp.org/ (in Japanese)

RIKEN Center for Genomic Medicine at the RIKEN YokohamaInstitutehttp://www.src.riken.jp/english/index.html

RIKEN GENESIS CO., LTD.http://www.rikengenesis.jp/en/index.html

With the genotype analysis system, a single SNP chip candetermine a patient’s genotype from a drop of the patient’sblood in only an hour.

The procedure works as follows. A blood sample is col-lected from the patient. DNA is extracted from a blood cellin the sample, and a solution containing the extracted DNAis dispensed onto an SNP chip pre-coated with dots of

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Clinical Studies in Thailand

The estimated number of HIV carriers stood at 33 millionworldwide in 2007. An estimated 2.5 million people werenewly infected, and 2 million or so died from AIDS. Thoughthe growth of HIV carriers shows signs of slowing, tremen-dous numbers of people are still being newly infected.HIV/AIDS will remain a devastating social problem until drugmakers develop medicines capable of completely curingAIDS after symptoms appear.

The HIV epidemic in Thailand spread relatively early inAsia and reached a serious stage in around 1990.Preventive activities by the Thai government to abort theepidemic have been effective, and the number of newlyinfected people has been decreasing. Yet even with theprogress against the disease, an estimated 580 thousandpeople in Thailand were HIV carriers in 2005.

Toppan provides genotype analysis systems with SNPchips for studies on dosing strategies for anti-HIV drugs inThailand. Tests are to be conducted to predict side effectsof Nevirapine, a globally prescribed antiretroviral agent effec-tive in postponing the onset of AIDS and preventing mother-

to-child transmission of HIV. Nevirapine is relatively moderatein price, but patients treated with the drug can have sideeffects such as drug rashes. Mahidol University in Thailandand RIKEN in Japan have been conducting a study to deter-mine the risk of drug rash before giving a patient Nevirapine.

Toppan will continuously provide its genotype analysissystems for various other research purposes besides thatjust mentioned. Applying the study results to practical use,Toppan will strive to upgrade its genotype analysis systemin order to achieve broader medical application and moreextensive benefits.

dried reagent. The reagent on the chip can amplify a tinystrand of DNA on a massive scale and generate fluores-cence when particular types of SNPs are applied. Basedon the presence or absence of fluorescence activation viareaction with the reagent, the system can accurately pre-dict differences in the patient’s response to a particulardrug, in terms of efficacy and side effects.

Various Toppan technologies acquired through printingare used to fabricate the chip, including techniques in micro-fabrication, surface treatment, formation, and coating. Withthese technologies, Toppan has formed a precision chipon which a tiny amount of DNA correctly reacts to thereagent and onto which the reagent can be coated withextreme accuracy.

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

Laboratory in Ramathibodi Hospital, a facility attached to Mahidol Universityin Thailand

Analysis Procedure with an SNP Chip

Loading the chipinto the system

Fluorescence not generatedChipCell Nucleus

ReagentDNA DNA solution

Fluorescence generated

orDispensing theextracted DNAonto the chip


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

“Clinical art” is a type of art therapy that seeks to stir thesenses and activate the right brain through creative activi-ties such as painting and carving. Its purposes include theprevention of dementia, the cultivation of acute sensitivity,and the refreshing of tired minds. The Institute of theFormative Art Co., Ltd. in the Toppan Group operates abusiness using clinical art in Japan.

The Institute of the Formative Art began exploring thefield of art therapy in the 1990s. Since 1998, it hasresearched and developed curricula as a member of theart therapy study group at the Kansei Fukushi ResearchCenter at Tohoku Fukushi University. One of its main activ-ities is to train clinical art instructors called “clinical artists”with specialized knowledge and the high-quality skills nec-essary for working in welfare and education. Some 150clinical artists are now engaged in clinical art across Japan.As of the end of March 2009, two thousand people hadcompleted training courses for clinical artists in Tokyo andother cities in Japan. Eight local governments and 11 med-ical corporations and healthcare facilities for the elderlyhave introduced clinical art therapy to prevent and remedydementia among the elderly.

In addition to the training courses for clinical artists, theInstitute operates original programs for children. Foremostamong them are the Da Vinci Class to foster creativity inchildren (from two to twelve years old) and several pro-

grams to leverage the potential of art for the cultivation ofaesthetic sensitivity, environmental awareness, and humancompassion in daycare centers, kindergartens, and ele-mentary schools.

The Institute has developed more than 400 types of clin-ical art curricula so far.

Clinical Art

About the Curricula

Anyone can paint a picture. But how many people seepainting as their forte? Every curriculum developed at theInstitute is designed to encourage the participants to con-centrate on the creation process and experience a senseof accomplishment and inspiration when they completetheir artworks. The motto for clinical artists is “Touch, lis-ten, and praise, but never judge.”

The first step of the curriculum is to help participants feelthe essence of the subjects of their pictures or formativeartworks with their five senses. If the theme is rain, forexample, they listen to the sound of falling rain. When thetheme is a fruit, they taste the fruit, smell it, and hold it intheir hands to feel the texture and weight.

The next steps are to create a representation of whatthey have just experienced by selecting and combining col-ors and materials into actual forms. When starting a pic-ture, the participant is asked not to draw an outline, but topaint the background or spread the paint out in patternsthat approach his or her mental picture. Through this

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

Energizing the Mind through the Power of Art Clinical Art

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nuanced process of creation, anyone can create an excel-lent work of art with an individual worldview. The processactivates the right brain by recruiting the five senses towork actively.

Every finished creation is an outstanding, highly individ-ual artwork. In the last step, clinical artists praise the goodelements of each work, without evaluating the skill of exe-cution. When participants receive the praise, positive feel-ings such as joy, willingness, confidence, and self-affirmationare awakened in their hearts and delightful memories areformed.

In fiscal 2008, Komatsu Elementary School in KasukabeCity in Saitama, Japan adopted this program for a periodof integrated learning. The pupils experienced a clinical artcurriculum first, then became supporters of clinical art forthe elderly in the local community. The program has beenongoing since fiscal 2006. By cultivating children’s individ-ual sensibilities, the program encourages children to praiseeach other’s works as a matter of course. It can also bringlively smiles to the faces of elderly participants. The programhas been highly evaluated for its positive effects in bothwelfare education and the fostering of future generations.

Towards Fiscal 2009

Since November 2008, the Institute has been running acollaborative study with Tokyo University of the Arts. Thepurpose is to develop curricula with which to refresh theminds of working people and help them discover entirelynew viewpoints and ideas. Toppan Group employees haveparticipated in a test program as part of the study. TheInstitute will fully apply the curricula developed in this col-laborative study to operate art salons and art-for-mental-healthcare business as a means of promoting mental healthamong working people.

With rising awareness of each person’s need to make asocial contribution, an increasingly wide variety of peopleare learning and experiencing clinical art. The Institute willcontinue to use the power of art to contribute to society inthe future.

Example of a Curriculum: Bird of Paradise Flower (Strelitziaceae)

To stir the sensesWith a roller spread out paints with colors imag-ined to be found in a tropical region. Imaginingand choosing colors stimulates and sensitizesthe mind.

To activate the right brainMark out the shape of the background. Focusingon the shape of the background activates theright brain.

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

a a


Topic 02Topic 01

Electronic-paper Signage for EmergencyCommunication Support

Toppan participated in a field test for a local emergencycommunication support system now being developed bythe Kanto Bureau of Telecommunications, a division ofthe Ministry of Internal Affairs and Communications ofJapan. The chief function of this system is to transmitemergency information within disaster-stricken areas viaradio. At a field test conducted around Ikebukuro Stationin Tokyo on January 23, 2009, Toppan provided digitalsignage, an electronic-paper display device, to post theemergency information.

Electronic-paper signage has features of high viewabil-ity even under sunshine, ultra-low power consumption*,and screen display retention after power shutoff. Thesignage holds promise as an emergency display mediumfor conveying information within disaster-stricken areas.Its chief advantage is the ability to retain the latest infor-mation displayed on the screen before power shutoff:when a disaster cuts off the power, the information stayson display.

As an active electronic-paper signage provider, Toppanhas been operating a machikomi (town communication)service using electronic-paper signage as an advertisingmedium at subway stations in Sendai City in Miyagi,Japan. Toppan will further develop its signage technologyby examining the strengths and weaknesses of the sys-tem for disaster preparedness, as revealed by theIkebukuro field test.

Showing VR Productions at an Exhibition in Paris

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

CSR Activity Topics 2008–2009

Left: Large-size electronic-paper signage at Toshima Post OfficeRight: Electronic-paper signage mounted on a bus stop sign at HigashiIkebukuro 2-chome *Ultra-low power consumption: The former, a post office sign, con-sumes about 24 watts. The latter, a bus stop sign, consumes about9 watts.

Kinkaku-ji

Kyoko-chi (mirror pond) seenfrom the rooftop

*1 Virtual Reality (VR) allows viewers to move freely within computer-generated 3D graphic images and experience a sense of actuallyoccupying 3D space.

*2 4K is a format advocated by Digital Cinema Initiatives, LLC (DCI),a digital cinema standardization organization led by seven leadingU.S. motion picture companies. It has a resolution of 8.85 millionpixels (4,096 × 2,160 pixels; 4K × 2K), more than four times that offull hi-vision.


Awards for Environmental Initiatives atToppan Plants in Japan

Toyama Plant of NEC Toppan Circuit Solutions, Inc. (TNCSi)In fiscal 2008, the Director General of the Chubu Bureauof Economy, Trade and Industry awarded the ToyamaPlant of TNCSi for a series of energy-saving measuresjudged to be outstanding among subscribed projectscarried out in the Chubu (central) region in Japan. Theplant’s adoption of a new humidity-control systemreceived high praise. Compared to conventional systems,this system consumes less energy for the control of roomhumidity. It works via a two-step process: extract heatdissipated from existing plant equipment to warm up air,then humidify the warmed air with spraying machinery.

Kannabe Toppan Co., Ltd. (the current Fukuyama Plant ofToppan Nishinihon Printing & Processing Co., Ltd.)In fiscal 2008, Kannabe Toppan Co., Ltd. received anOutstanding Energy-Efficient Factory Award from theDirector General of the Chugoku Bureau of Economy,Trade and Industry of Japan. Kannabe Toppan’s successin reducing energy consumption per unit of productionvolume by 5-10% year-on-year was highly commended.Its measures have included a monthly energy-savingcommittee, a switchover to highly efficient lightingapparatus, and the introduction of a “free cooling” systemthat works with outside air in wintertime.

Niigata Plant in the Electronics Division (the currentNiigata Plant of Toppan Electronics Products Co., Ltd.)The Niigata Plant in the Electronics Division received theExcellent prize at the PRTR* Awards 2008 in Japan. ThePRTR Awards were established to recognize companiesfor outstanding achievements in the management ofchemical substances at factories and in risk communica-tion with local governments and residents. The plant washighly commended for its progress in chemical substancemanagement in accordance with its own set of well-defined policies that go beyond the environmental man-agement policies across the Company. In setting themanagement policies, the plant carefully considered theproperties of the region hosting the plant and the featuresof the products the plant manufactures. The plant wasalso commended for its many years of dialogue withneighboring residents.

*The Pollution Release and Transfer Register (PRTR) systemrequires the confirmation, summary, and disclosure of data on therelease and transfer of diverse chemical substances deemed to bepotential environmental pollutants. The data required include infor-mation on the amounts of chemicals released, the sources fromwhich chemicals are released, and the amounts of chemicals trans-ferred outside business premises as waste.

Topic 03


Newly Constructing One of Japan’sLargest-scale Plants for Next-generationBack Sheets for Solar Cells

In April 2009, Toppan completed the construction of theFukaya Plant in Fukaya City in Saitama, a new manufac-turing site for next-generation functional films. TheCompany will build up production lines at the plant forthe manufacture of a wide variety of functional films tokeep up with the brisk market demand.

Earlier, in July 2008, Toppan signed a technology trans-fer and license agreement for a polyvinyl fluoride coatingtechnology with E.I. du Pont de Nemours and Company(DuPont) of the United States. Tedlar® Film, a material forsolar cell back sheets developed by DuPont more than25 years ago, has been rated highly for its outstandingweather resistance. The Fukaya Plant will mainly producenext-generation back sheets for solar cells based on thefurther amalgamation of the material technology of Tedlar®

Film and the processing technology of Toppan. Usingmaterials supplied by DuPont for Tedlar® Films, an inte-grated mass production line for finished back sheet prod-ucts will be constructed.

Toppan aims to expand its share of the global marketby supplying a broad range of back sheets tailored todiverse specifications required for applications such assolar cells for large-scale photovoltaic power plants andsolar panels for ordinary houses.

External view of the Fukaya Plant, a future manufacturing site for solarcell back sheets

Topic 04

Topic 05

Toppan Printing Co., Ltd. has promoted routine imple-mentation of environmental measures to ensure thoroughsafety management at every operational site. Regretfully,however, these precautions failed to prevent a tolueneleak from an underground tank of printing solvent at theItabashi Plant (Itabashi Ward, Tokyo) on June 12, 2009.

Toppan sincerely apologizes for the anxiety caused tosurrounding neighborhoods.

As an emergency measure, this underground tank hasalready been emptied and decommissioned. The follow-ing columns report the actual incident and details, includ-ing the results of a subsequent investigation.

From now on, Toppan will take vigorous steps in goodfaith to protect the safety of local residents and conservethe environment surrounding the plant by strictly prevent-ing the diffusion and recurrent leakage of solvent.

■Details and Causes of the LeakageApproximately 4,500 liters of toluene, a solvent for print-ing, leaked from an underground tank at the Itabashi Planton June 12, 2009. The source of the leak was a steel-plate tank with a capacity of 13,500 liters, buried aboutfour meters below the surface of the ground.

The Company will identify the causes of the leakthrough a detailed investigation in the near future.Preliminary inspections suggest that cracks may haveformed at the bottom of the tank during a regular main-tenance operation.

■Detection and CountermeasuresThe liquid level of an underground tank rapidly fell duringa regular maintenance operation on June 12, 2009. Thetank concerned was decommissioned and a different tankwas used to supply solvent for manufacturing. The fol-lowing measures have been taken so far.

•Both the interior and exterior of the underground tankwere inspected to estimate leakage conditions, andthe leakage of solvent from the underground tank wasconfirmed.

•The leakage was reported to Shimura Fire Station ofthe Tokyo Fire Department, which conducted an onsiteinvestigation and instructed the plant on specific coun-termeasures in the coming days.

•A boring investigation around the underground tankhas been commenced to examine the impact on thesoil, etc. surrounding the tank.

•The leakage was also reported to Shimura PoliceStation, Itabashi City Office, and Tokyo MetropolitanGovernment to receive guidance on future measures.

■Future MeasuresToppan will take the following measures in good faithbased on consultation with local authorities to protect thesafety and environment of the plant and local communities.

•The diffusion and recurrent leakage of solvent will beprevented to ensure the safety of local residents.

•The cause will be ascertained by an investigation tobe conducted in collaboration with independent orga-nizations, and appropriate responses will be takenaccording to the investigation results.

•Details will be reported to local residents whenevernecessary.

Toppan will carry out the following specific measureswithout delay.Specific measures:1) Enclosure of the leakage area through the burial of

steel sheet piles to prevent the solvent from diffusing2) Suction of the solvent from the soil via newly installed

pumping wells3) Removal of the underground tank that contained the

solvent4) Excavation and removal of the soil surrounding the

underground tank concerned, and backfill with goodsoil

5) Inspection of the soil, water, and air in the area

Leaking Solvent at the Itabashi Plant of Toppan Printing Co., Ltd.


CSR Management

Toppan’s Social Responsibility

Basic Approach to CSR 16

Review of CSR Activities and New Initiatives

Results for Fiscal 2008 and Future Measures 20

Stakeholder Dialogue 22

Corporate Governance

Corporate Governance 24

Compliance

Compliance Promotion Activities 26

Information Risk Management

Information Risk Management 28

Conduct Guidelines and Information Management Policy 30



CSR Management

Basic Approach to CSR

Towards SustainableDevelopment

When Toppan was founded in 1900,Japan was rapidly building up its mod-ern industries in the aftermath of theMeiji Restoration.

The printing industry was contributingto society in three important areas: 1) the printing of banknotes, bonds, andsecurities, crucial instruments for theestablishment of modern capitalism; 2) the publication of newspapers, amedium for public discussion to stimu-late the progress of civilization; and 3) the publication of translations, nov-els, and magazines to enlighten the pub-lic and encourage the establishment ofa modern state.

Toppan began in the last century asa provider of printing services to sup-port the establishment of modern Japan.Today it has grown into a multifaceted

enterprise with myriad businesses cen-tered around core printing technologies,such as IT and electronics. Toppan sup-ports the development of informationculture and the creation of fulfillinglifestyles in many ways.

Toppan has grown steadily amid thedrastic changes that have taken placeworldwide in the more than 100 yearssince its founding. These changes con-tinue to pose threats to the earth andhumankind in the 21st century. Theworld must contend with poverty,abuses of human rights, environmentaldestruction, and health problems. InJapan, meanwhile, birthrates are declin-ing and the population is ageing.

Toppan believes it has a responsibilityto help solve these problems in cooper-ation with all of its stakeholders throughbusiness operations conducted underits founding Corporate Philosophy of

contributing “to a fulfilling lifestyle as amainstay of information and culture.”The Company contributes as an essen-tial corporate citizen with an activecommitment to realizing sustainabledevelopment for itself and society.

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

Under the recognition that every employee upholds thisphilosophy, all members of the Toppan Group shall

Corporate Philosophy

Each of us shall

reciprocate our customers’ continued trust,

create dedicated products by

harnessing our vibrant knowledge and technology,

and contribute to a fulfilling lifestyle as

a mainstay of information and culture.

Established in June 2000

Subject

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

Corporateattitude

work with passion, responsibility, and foresight to createexcellent-quality products and services dedicated tocustomers, and

Code ofconduct

enhance strengths in knowledge (marketing and planning capa-bilities) and technology (technical capabilities) to draw out thereproducibility and vibrancy (detailed and creative expression)of printing as the Group’s business foundation, in order to

Businessfoundations

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

Corporate goal

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

Basic Approach to CSRC

SR

Manag

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To

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an’sS

ocialR

espo

nsibility


Toppan’s SocialResponsibility: Realizing anIdeal “Corporate Structure”

TOPPAN VISION 21 expresses the basicconcept and directionality of the activi-ties undertaken by Toppan to grow inharmony with society and the globalenvironment.

TOPPAN VISION 21 consists of the“Corporate Structure” and “BusinessFields.” The Corporate Structure, mean-while, is made up of three elements:Toppan’s Corporate Philosophy, theCorporate Creed, and the ConductGuidelines. These elements specify acomplete set of values, standards, andguidelines for the business operationsof the Toppan Group. The Group will ful-fill its social responsibilities by realizingthis Corporate Structure.

The Toppan Group regularly enlight-ens its employees on the basic tenets

of TOPPAN VISION 21 and the Cor-porate Structure through communica-tion in workplaces, training sessions,and various tools.

Corporate PhilosophyThe Corporate Philosophy is the top-level concept that underpins Toppan’scorporate activities and defines its mostimportant values and thoughts.

Corporate Creed and ConductGuidelinesThe Corporate Creed expresses thestandards that the Toppan Groupapplies to its corporate activities.

Built on the Corporate Philosophy andCorporate Creed, the Conduct Guide-lines express the behavioral norms basedon every employee’s compliance withlaws, regulations, and corporate ethics.

Under no circumstances will any mem-

ber of the Toppan Group engage in abusiness operation that infringes therules of society or poses any risk of envi-ronmental or social harm. The Groupalso understands that any failure tomaintain its high standards for businessoperations may make it difficult to guar-antee reasonable returns and benefitsfor society.

The Conduct Guidelines specify itemsthat every employee in the ToppanGroup should closely observe.

The Group reviews its Conduct Guide-lines every year in the conviction thatthe guidelines must evolve over time torationally adapt to the various changesunderway in corporate and social envi-ronments.

Corporate Creed

To build our customers’ trust though sincerity, enthusiasm, and creativity

in all our corporate endeavors.

To strive for total innovation from a global perspective by conducting marketing and

technological development rich in originality.

To conduct fair and open business operations while acknowledging our social responsibilities

and aspiring for harmony with our global environment.

To create a positive working environment by maximizing our individual talents and

strengths as a team.

To enhance our corporate standing and promote the continual development of

the Toppan Group through the exploration of new possibilities.

Conduct Guidelines

Chapter 1: Basic Principles

1. Respecting basic human rights

2. Maintaining public order and standards of decency

3. Complying with laws and ethics

4. Conducting fair business operations

5. Striving to improve quality

6. Appropriate management and disclosure of information

7. Environmental and safety considerations

Chapter 2: Specific Conduct Guidelines

Section 1: Building customer trust

Section 2: Reforming operations

Section 3: Fulfilling corporate responsibilities

Section 4: Creating a positive work environment

Section 5: Developing the Toppan Group

Established in June 2000 Established in June 2000; revised in April 2006For more detailed information on the Conduct Guidelines, please see P. 30.



CSR Management

Toppan’s Relationships withStakeholders

For Toppan to operate businesses andstay viable as a corporation, it must buildstrong ties with various stakeholders.The Company has defined five cate-gories of stakeholders vital for its busi-ness activities: customers, businesspartners, communities, employees, andshareholders/investors. Toppan strivesto build closer relationships of trust withits stakeholders in these categories bythoroughly disclosing information andengaging stakeholders in dialogue.

In addition to the companies withwhich Toppan does business, end usersand other members of society are Toppancustomers. The Company understandsits responsibilities to society at large andis determined to promote initiatives forthe fulfillment of these responsibilities.

Communication with StakeholdersStakeholder dialogues are a very effec-tive way to regularly grasp social needs.Toppan promotes and upgrades its CSRactivities by incorporating stakeholderdialogues into the PDCA cycle.

Toppan held special dialogue ses-sions with key stakeholder representa-tives in fiscal 2004 and 2006, in additionto the regular dialogues it carried out inthe course of business. From 2005 to2007, the Company invited an externalexpert into annual in-house meetings ofCSR promotion members to review itsannual CSR activities.

The CSR Promotion Study Group, abody established in fiscal 2007, seeksto improve the PDCA cycle of Toppan’sCSR activities using the knowledgegained through stakeholder dialoguesoutside the Company. In principle, the

study group meets at the end of eachfiscal year to unify the channels of dia-logue with external stakeholders. Thesecond meeting was held in fiscal 2008(➞P. 22).

Customers

BusinessPartners

Communities

Environmentalconservation

Employees

Shareholdersand

Investors

IFor All Stakeholders IFor Customers

IFor Shareholders and Investors

IFor Employees (including part-time workers and temporary staff)

IFor Business Partners

IFor Communities

( : Tools for communication)

Corporate Guide CSR Report Various guides for individual divisions Financial statements Quarterly business reports Website, etc.

Toppan strives to improve its corporate value through sustainable business development on the basis of stable dividends. The Company makes itself fully accountable by promptly and appropriately disclosing corporate information to ensure that shareholders and investors completely and accurately understand the Company’s business activities.

Shareholder newsletter Toppan Story Business reports Annual ReportCorporate governance reports, etc.

Toppan strives to provide comfortable workplaces where diverse employees can work to their full potential—a working environment where the dignity and lives of all employees are respected. The Company offers satisfying jobs to fulfill employees and tangibly contribute to the goals of the corporation.

In-house newsletter CONVEX and Web CONVEX Overseas in-house newsletter Interlink Various pamphlets on welfare benefits, etc.

Toppan’s customers are not just the companies with which Toppan does business. Just about every person in society is a Toppan customer, in some way or another. The Company strives to always merit the trust of customers with sincerity, enthusiasm, and creativity by satisfying customer requirements through Total Quality Assurance throughout the entire product life cycle, from planning and manufacturing to use and disposal.

Various reports on business operationsVarious reports on products and servicesVarious newsletters, etc.

Another crucial element in strong customer trust is steady relationships of trust and cooperation with business partners. Toppan does business on an equal footing with its partner companies in a fair and open manner as a matter of course. The Company strives to meet the expectations of customers and society with regard to its social responsibilities by promoting CSR procurement in coopera-tion with business partners.

CSR Procurement Guidelines on the Toppan website, etc.

Toppan relates with communities and society through its business operations. The Company strives to win the trust of communities by contributing to society as a mainstay of information and culture.

Plant guidesSite Eco Report Annual report Printing Museum, etc.

Toppan’s Relationships with Stakeholders and Communication Tools

Basic Approach to CSRC

SR

Manag

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To

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Specific Concept of CSRActivities

The purpose of Toppan’s CSR activitiesis to realize the sustainable developmentof society and the Company. To achievethis, Toppan must be a trustworthy,respected corporation for stakeholdersof every kind. A company without thispolicy cannot expect to succeed inaddressing social issues and needsthrough the creation of added-valuebusinesses over the years.

Toppan has therefore set out materialtopics for its activities by combining itspolicy towards the balanced develop-ment of society, the economy, and theenvironment with a conviction that therealization of an optimally organizedCorporate Structure will help theCompany fulfill its social responsibilities.Toppan announced its support for the

United Nations Global Compact as anactive participant in 2006. By dissemi-nating the principles of the GlobalCompact across the Company, Toppanpromotes CSR activities in considera-tion of the roles it is to play as a mem-ber of international society.

CSR Material TopicsToppan sets action points and goals foreach material topic to be addressedthrough CSR activities and reviews thetopics yearly by assessing the levels ofachievement. The Company establishedeight topics in fiscal 2008 and hasadvanced its CSR initiatives ever since.

CSR Promotion StructureThe President & CEO and the Directorin charge of CSR are leading a move todevelop CSR activities through collabo-

ration with the relevant managementdivisions of the head office and the CSRPromotion Department of the LegalAffairs Division, the department under-taking administrative operation. Theseparties regularly convene a CSR promo-tion department meeting to assess theprogress of each action point and dis-cuss ways to resolve related challenges.

CSR Material Topics Based on the Corporate Structure and Stakeholders

Legal Affairs Division

Secretary Department

Public Relations Division

Corporate Planning Division

Personnel & LaborRelations Division

Finance & Accounting Division

Corporate Manufacturing,Technology & Research Division

Purchasing Division

Administration

CSR promotion department meeting

President & CEO

Director in charge of CSR

Toppan’s CSR Promotion Structure

Reinforcinginformation risk

management

Contributingto society,

community,and culture

Disclosinginformation in

a fair and openmanner andimproving

transparency

Complying withlaws, regulations,

and corporateethics

Assuringproduct safety

and quality/Providing products

and services tohelp solve

social issues

Establishinga trusted

supply chain

Conservingthe global

environment

Respecting andleveraging

human assets

Corporate Philosophy

Corporate Creed

ConductGuidelines

TOPPANVISION 21

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


CSR Management Review of CSR Activities and New Initiatives

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

Stakeholders

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

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

(See PP. 54–56 for the results of the environmentactivities and future measures to promote them)

Ensuring product safety

Quality assurance and enhancement

Performing business deals strictly compliant with the CSR Procurement Standards

Social contributions

Community contributions

Cultural contributions

Enhancing IR activities

Merit-based personnel policies

Leveraging diverse human assets

Developing and fostering human assets

Action Points

—

—

—

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

Launching energy-related businesses for the future

Expanding businesses in the life sciences

Adapting to the aging society

Passing down cultural assets via virtual reality (VR) reproductions

Disseminating the CSR Procurement Standards to all of Toppan’sbusiness partners in Japan and encouraging these business partnersto implement the standardsEstablishing a management and assurance system for chemicalsubstances

Mutually enhancing corporate values through strengthened partnerships

Enriching programs to address social issues

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

Improving accessibility to Company information disclosed in a timelymanner

Operating personnel treatment systems appropriately

Respecting basic human rights

Ensuring occupational safety and health

Reinforcing countermeasures against fires and disasters

Promoting healthcare and health enhancement

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

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

Creating a better working environment through partnerships betweenlabor and management

Providing an open environment for recruitment

Supporting individual career development

Promoting positive action

Supporting second careers for retired employees

Promoting employment of persons with disabilities

Securing the propriety of contract- and temporary-worker-related operations

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

Targets

Complying with laws, regulations,and corporate ethics

Reinforcing information risk management

Conserving the global environment

Disclosing information in a fair andopen manner and improvingtransparency

Communities

Shareholders and investors

Topics

All stakeholders

CustomersAssuring product safety and quality/Providing products and services to help solve social issues

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

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

Providing products and services to help solve social issues

Business partners Establishing a trusted supply chain

Contributing to society, community, and culture

Employees Respecting and leveraging humanassets

Realizing a safe and secure working environment

Results for Fiscal 2008 and Future MeasuresC

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For DetailsSelf EvaluationMain Activities and Achievements in Fiscal 2008•Established Conduct Guidelines Promotion Leader systems at all Groupcompanies in Japan

•Introduced Conduct Guidelines for subsidiaries in Thailand and Indonesia•Checked compliance and organized employee education on the SubcontractLaw of Japan (30 times; 2,369 participants)

•Carried out head office audits primarily to check the control status of humanerror in the handling of important information

•Acquired ISO/IEC 27001 certification in three operations and expanded thecertification boundaries of two operations

•Conducted questionnaire surveys to assess secular changes in the levels ofinformation security management

—

•Established a system based on the Product Safety Management Guidelinesunder the ISO 9001-series QMS, but failed to check compliance with theguidelines through audits

•Continued product quality education using standardized in-house textbooks forthe sales departments and spread the effort across Group companies in Japan

•Carried out internal audits on the operation status of the ISO 9001-series QMSfor almost all domestic sites

•Promoted the granting of permissions to entitle clients to use Company patents;organized training sessions to educate the planning departments on theprevention of patent infringements

•Upgraded the performance of a non-platinum catalyst used in the inking processfor the prototype development of fuel cell components

•Evaluated the performance of a genotype analysis system with SNP chips atcooperative medical institutions

•Researched a method for the development of products to accommodatepersons with weak or age-impaired vision

•Produced and exhibited four new virtual reality (VR) reproductions of culturalassets, including the sculpture of Ashura (screened at an exhibition held inTokyo, “National Treasure ASHURA and Masterpieces from Kohfukuji”); a total of21 VR productions have been created to date

•Promoted the rental and secondary use of VR productions as a business•Held briefings and conducted surveys to assess the current status of about 1,000business partners working with the planning and sales promotion departments

•Started interviews with some business partners•Established an internal system to enhance the effectiveness of the management ofchemical substances in products at business partners (based on Toppan’s QMS)

•Planned a series of case presentations, study meetings, etc. to be held incooperation with business partners (postponed due to current problems in thebusiness environment surrounding the Company)

•Collaborated in the Campaign to Deliver Picture Books and donated about 200picture books to children in three Southeast Asian countries and refugee camps

•Continued extensive community contributions through environmentalbeautification activities, plant tours, hands-on training sessions, etc.

<Printing Museum, Tokyo>•Held 1950s Japan: The Blossoming of the Graphic Designer, a temporaryexhibition that attracted a higher-than-average number of visitors for school andcompany training

•Held summer vacation workshops, attracting more than 1,000 participantsthrough intensive announcements

<Toppan Hall>•Sponsored 35 concerts, organized special performances to discover and fostertalented young musicians from around the world, and rented the hall out to localmusic colleges and elementary schools

•Added new content to the IR website and redesigned the English version of the site•Posted timely topic content for the Annual Report and Toppan Story, anewsletter for shareholders

•Activated organizations and individuals through appropriate operation ofpersonnel treatment systems based on the competence and achievements ofindividual employees

•Enlightened employees on basic human rights through rank-based training andfollow-up training for younger employees

•Compiled a database of information on occupational accidents and acceleratedthe process for grasping the details on how the accidents occurred

•Formulated a complete set of countermeasures against large-scale disasters,including the reservation of stockpiles

•Arranged medical checkups and healthcare guidance and education incooperation with clinics

•Took steps to manage overtime work throughout the Company; substantiallydecreased the number of employees working overtime for long hours and theaverage hours of overtime worked in the second-half of fiscal 2008 (comparedwith the same period a year earlier)

•Convened labor-management committees five times to help create a workingenvironment amenable to enhanced job satisfaction

•Started to operate the staggered work-hour system for childrearing•Resolved to introduce a staggered work-hour system for expectant mothers

•Held various labor-management meetings on diverse themes such as job-satisfaction enhancement and mental healthcare, in addition to the routinebusiness councils

•Ran online training courses and other types of internship programs to providestudents with expanded opportunities to experience actual work

•Appointed 17 non-regular employees to regular positions•Developed the learning management system (LMS) to support individual careerdevelopment

•Attained a 3.31% ratio of female managerial and supervisory staff (as of April 1,2009)

•Reemployed 83 retired employees under the Senior Reemployment System(equivalent to 60% of the employees who retired this fiscal year)

•Attained a 1.93% ratio of employees with disabilities in the total workforce (as ofthe end of March 2009)

•Held briefings to respond to laws and regulations related to non-regular employees,including the legislation responsible for Japan’s “problem 2009” (the three-year-limitation for temporary workers dispatched to companies in manufacturing industries)

•Rotated employees into different regions, job categories, and product specialties(including 411 managerial staff rotations)

A

A

—

C

B

B

A

B

A

A

B

B

B

A

A

A

A

A

A

A

A

A

A

A

A

B

A

A

A

A

A

PP. 26–27

PP. 28–29

PP. 52–76

PP. 32–33

PP. 34–35

PP. 8–9

P. 35

P. 12

PP. 36–37

PP. 40–41

PP. 38–39

P. 50

P. 42

PP. 43–45

PP. 46–47

PP. 48–49

•Fostering Conduct Guidelines Promotion Leaders who can design and implement dissemination activities by themselves

•Introducing Conduct Guidelines for subsidiaries in the U.S.A.

•Revising the Information Security Management Guidebook and issuing andusing the Close Calls on the Job booklets

•Promoting the acquisition of ISO/IEC 27001 certification for areas undertight security

•Reinforcing the management of confidential operations and the handling ofprinted securities materials

—

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

•Continuing to organize product quality education using standardized in-house textbooks for the sales departments

•Assembling a database of quality-related information for the prevention ofquality-related accidents

•Selecting operational sites to be audited intensively based on product-quality conditions and improving the effectiveness of the QMSs at the sites

•Promoting permissions that entitle clients to use patents held by theCompany; respecting the intellectual properties held by other companies

•Developing a new material and low-cost, high-efficiency manufacturingtechnologies for fuel cells

•Providing SNP chips and genotype analysis systems to support studies onHIV treatment

•Researching and developing intuitive designs and incorporating the designsinto new products

•Exhibiting existing VR productions on tours and producing and exhibitingfive new works

•Continuing to promote the use of VR productions as a business

•Continuing to disseminate the Company’s CSR procurement initiatives tonew and existing business partners

•Continuing to interview business partners•Collecting certification for the non-usage of chemical substances prohibitedby the Company, and auditing to confirm the non-usage

•Installing and smoothly operating the Supplier Hotline

•Planning and organizing a new type of employee-participatory social-contribution program to support solutions for the social issues declared inthe Millennium Development Goals

•Continuing to organize various community contributions in tune with localneeds at operational sites across Japan

<Printing Museum, Tokyo>•Holding an exhibition entitled Textbooks That Supported Modern Educationin Japan—Textbooks from the Tosho Bunko and Printing Museum Collections

•Enriching community contributions in collaboration with the BunkyoAcademy Foundation and cultural facilities in Bunkyo Ward, Tokyo

<Toppan Hall>•Continuing to sponsor concerts, organize special performances for thediscovery and fosterage of talented young musicians, and rent out the hall

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

•Continuing to operate the existing personnel treatment systems andexamining actual operational conditions to find and consider necessaryrevisions for the systems

•Continuing to enlighten employees on basic human rights through rank-based training sessions

•Undertaking TPM activities led by the Safety and Health Committee toeliminate occupational accidents; using the database on occupationalaccidents to prevent recurrence

•Implementing countermeasures against large-scale disasters throughout theCompany

•Offering healthcare guidance for employees in need of lifestyle improvements(calorie-control diet plans, actions to preempt lifestyle-related health problem)

•Eradicating extended overtime through a review of the ways individualswork, strengthened management of overtime working hours by managerialstaff, and the continuation of the various types of working systems already inplace; encouraging employees to take various forms of leave

•Reviewing labor contracts and employment regulations based on the trendsin relevant laws and regulations

•Creating a working environment where male employees can take childcareleave more easily

•Continuing to convene labor-management committees in order to helpcreate a working environment amenable to enhanced job satisfaction

•Holding labor-management meetings to review schemes for regular salaryrevisions, discuss the Company’s responses to the revised the Labor StandardsAct of Japan (to be enforced from April 2010), and deliberate various other themes

•Expanding communication activities for recruitment and public relations forhiring in Japanese cities other than Tokyo

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

•Promoting the appointment of female employees to managerial andsupervisory positions through positive action

•Passing on the experiences and specialized knowledge of veteranemployees to younger employees via the Senior Reemployment System

•Maintaining the 1.8% ratio of employees with disabilities in the totalworkforce, as designated by the relevant law in Japan

•Holding training sessions and conducting internal audits in the general affairsdepartments to cope with Japan’s “problem 2009”

•Shifting from personnel rotation among different job categories to personnelrotation centering on age and rank

Main Measures in Fiscal 2009

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

Review of CSR Activities and New Initiatives


CSR Management

Stakeholder DialogueToppan seeks CSR initiatives satisfactory to all stakeholders through planning and assessment based on dialogues with society.

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

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

Major Opinions from Stakeholders1. Enhancing Corporate Competitiveness through CSR

ActivitiesIn entering a recessional phase, companies should strive toimprove their profits while attempting to circumvent additionalcrises. New businesses can evolve from services or activitiesdesigned to solve problems facing society. And society itselfneeds these businesses. Specifically, CSR procurement canprevent risks from rising in the supply chain and improve thesustainability profile of material procurement. Supporting work-life balance and leveraging diverse human resources, mean-while, can improve productivity.

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

Mr. Yukio OkuboGeneral Manager, Works Institute, Recruit Co.,Ltd.

Founded the Works Institute, installed as GeneralManager there in 1999. Specializes in humanresource management, labor policies, and careerissues.

Mr. Toshihiko GotoChair, Environmental Auditing Research Group

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

Ms. Mizue TsukushiPresident & CEO, The Good Bankers Co., Ltd.

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

Mr. Toshihiko FujiiConsulting Fellow, Research Institute ofEconomy, Trade and Industry, IncorporatedAdministrative Agency (IAA)

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

Ms. Mariko MikamiJournalist; Visiting Associate Professor, Instituteof Innovation Management, Graduate School ofShinshu University

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

Mr. Fumitake SakamotoFacilitatorSenior Consultant, Witan Associates Limited.

Consults on PR and CSR activities for corpora-tions and provides management assistance forNPOs.

Stakeholder DialogueC

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2. Improving Fairness in Personnel PoliciesIn Europe, the birthplace of corporate social responsibility(CSR), companies must provide in-house education to helpemployees acquire the levels of competence necessary toqualify them for recruitment to new positions if they are maderedundant. If the regular employees in a company receive bet-ter in-house training than the non-regular employees, the com-pany must level the inequity through CSR activities.

When a company drives globalization, it should treat itsemployees fairly all over the world.

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

4. Bringing Innovative Changes into RealityInternational society has agreed on the benefits to be gainedby halving CO2 emissions by 2050. The years in which toachieve this ambition are few. If we fail to act at once, we cannever hope to succeed.

Eco businesses have entered an era to be redefined. Globalwarming, drought, and other ecological crises are predictedscientifically. Based on the ecological predictions, companiesshould model new competitive businesses with prospects forstrong quantifiable benefits for society in concrete forms.

Responding to the Opinions ObtainedTo prepare for the study group meeting, Toppan chose a newset of action points that it expects to become more relevantfor society and the Company. From fiscal 2009, Toppan willtake the opinions of the study group to heart and deepen itsfocus on the action points that it expects to become more rel-evant.

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

Expected to become more relevantAs relevant as before

Environment■Mitigating global warming through

the development of energy-saving measures

■Promoting waste reduction and recycling

Global◆Establishing a trusted supply chain

■Upgrading environmental man-agement systems at overseas production sites

Labor◆Supporting work-life balance (improving

productivity and fostering the next generation) ◆Creating better working environments

through partnerships between labor and management

◆Promoting positive action◆Providing an open environment for

recruitment◆Promoting employment of persons with

disabilities◆Supporting second careers for retired

employees

Capturing growing businesses■Expanding environmental contribution via

the development and marketing of eco products

◆Providing products and services to help solve social issues

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

◆Operating personnel treatment systems appropriately◆Supporting individual career development

■Enhancing environmental education and the environmental awareness of all employees

■Promoting environmental communication

●Complying with laws, regulations, and corporate ethics

●Reinforcing information risk management

◆Assuring product safety and quality ◆Respecting basic human rights◆Ensuring occupational safety and health◆Reinforcing countermeasures against fires and

disasters◆Contributing to society, community, and culture◆Fostering highly motivated employees based on

“conduct of high value” ■Avoiding environmental risk■Preventing atmospheric pollution via VOC emission

restraints■Controlling risks from chemicals

Segments●CSR management field◆Social field■Environmental field

Fo

r To

pp

an

For Society

Exp

ected to

beco

me m

ore relevant

As relevant as b

efore



CSR Management


Corporate GovernanceToppan is equipped with a Board ofCorporate Auditors under the CompanyLaw of Japan and has strengthened itsgovernance system by establishing aManagement Audit Office, ComplianceDepartment, and Ecology Center.

The Company advances its corporatemanagement under the Related Com-pany Administration Regulations pre-scribed to ensure the propriety ofoperations within the Toppan Group.

The Directors, Board of Directors,and Various MeetingsToppan has 29 directors on its board(as of the end of March 2009). Boardmeetings are held monthly and when-ever a pressing matter requires actionor deliberation.

Especially important managementthemes are deliberated beforehand inthe Management Committee made upof directors selected by the President &CEO. The goal is to lay weight on man-agerial efficiency in business judgment.Directors from the head office and otherdirectors acting as division chiefs cometo these meetings to discuss and exam-ine measures and policies directlyrelated to the Company’s businessesfrom various perspectives.

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

Committee, and carry out audits for oper-ational sites. They audit and advise theCompany from a preventive perspectiveto ensure the legality and effectivenessof the operations of the directors anddepartments and smooth and appropri-ate corporate management in line withcompany policies and regulations.

Toppan strives to audit effectivelythrough the cooperative efforts of theBoard of Corporate Auditors, the auditfirm KPMG AZSA & Co., and internalaudit-related departments in the Com-pany (notably, the Management AuditOffice). The Board of Corporate Auditorsof the Toppan Group also regularlymeets to improve the effectiveness ofthe audits by the corporate auditors ona Group-wide basis. Toppan has hadKPMG AZSA verify the propriety of the

Toppan is reinforcing corporate governance by strengthening its auditing and supervisory functions and improving the transparency of its corporate management.

Toppan’s Corporate Governance Structure

Relevant head office divisions (mainly those responsible for monitoring laws and regulations) check, evaluate, and improve the legality and propriety of operations in divisions.

Investigates and audits the legality and appropriateness of operational activities

Coordination, supervision, and verification of Toppan’s environmental activities

Promotes, verifies, and audits the strict observance of laws and regulations and the establishment of ethical business practices

Meeting of Shareholders

Board of Directors

President & CEO Management Committee

Management Audit Office

Compliance Department

Ecology Center

Directors in charge

Business Divisions

Group companiesAud

it firm

(Bo

ard o

f) Co

rpo

rate Aud

itors

Co

rpo

rate Aud

itors O

ffice

Appointing or dismissingAppointing or dismissing

Auditing Auditing

Auditing

Observing andguiding Auditing

Reporting

Assisting

Appointing or dismissing

Selecting or demitting

Instructing

Supervising

Working together

TPM National Conference

Chief information securitymanager

National Conduct GuidelinesPromotion Supervisors

Guiding

National Eco-protection Committee

Safety and Health Committee

Other organizations for control

Special Committee (for defending against takeover bids)

Considers issues prior to board of directors’ meetings

Crisis Management Committee

Responding to emergencies

Advising and counseling

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monitoring the progress of improve-ments (➞P. 52).

Risk Management StructureToppan manages risk comprehensivelyto avoid risk and minimize the lossesincurred when events at risk occur.

The Rules on Risk Management havebeen established to resolve mattersregarding risk avoidance and the mini-mization of loss when an event at riskoccurs. In accordance with these rules,the Company has set up a risk man-agement structure under which theresponsibilities for risk management areallotted to specific divisions in the headoffice based on the types of riskinvolved. Under this structure, the direc-tors in charge of each relevant divisionare responsible for taking measures toprevent, avoid, and correct each type ofrisk. Toppan reviews risks to be man-aged once a year and examines coun-termeasures to be taken in line with therules. The Company also holds a regu-lar Risk Management Liaison Meetingfor the persons in charge of risk man-agement in the head office divisions toshare information on a continuous basisand respond to risk practically.

relevant departments on the problemspointed out by the audits, proposesmeasures for improvement when nec-essary, and reports the audit results tothe President & CEO, directors in chargeof relevant departments, and the corpo-rate auditors whenever necessary.

In fiscal 2008, the office conductedoperational evaluations of internal con-trol for all of Company divisions and sub-sidiaries around the world. It also carriedout regular management audits andoperation audits for nine departments.

The Compliance Department in theLegal Affairs Division spearheads theCompany’s initiatives to ensure the strictobservance of laws and regulations andto firmly establish ethical business prac-tices. The department facilitates thecomplete awareness of the ConductGuidelines and organizes employee edu-cation on compliance with existing lawsand regulations. It also implementsinternal audits on information security(➞PP. 26–29).

The Ecology Center in the CorporateManufacturing, Technology & ResearchDivision supervises the Company’s envi-ronmental activities by conducting inter-nal audits at each operational site and

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

Remuneration to Directors andCorporate AuditorsRemuneration to directors is determinedat the Board of Directors by the endorse-ment of the Meeting of Shareholders.The amounts remunerated are set basedon considerations of the performance,responsible roles, and fulfillment of theoperational targets of each director. Infiscal 2008, the total annual remunera-tion to directors was 1,207 million yen*and the total annual remuneration tocorporate auditors was 108 million yen.*Including the remuneration paid to three direc-tors who worked at the Company on April 1,2008 and retired after the completion of theordinary general meeting of shareholders in June2008.

Strengthening Audit FunctionsThe Management Audit Office estab-lished independently from the operatingdepartments fairly and objectively auditsall of the corporate management sys-tems and business operations from theviewpoints of legality and rationality.

The office provides feedback to the

Risk to Be Managed and the Relevant Head Office Divisions in ChargeRisk to Be Managed

Accidents involvingproducts or product liability

Relationship withantisocial organizations Natural disasters

Risk in business managementUnlawful activities relatedto external contractsInfringement of intellectualpropertyEnvironmental problems

Risk in overseas businessactivities

Accidents or complaints related to products

Accidents related to main systemsOccupational accidents, traffic accidents, and other accidents involving employeesIncidents related to notes or accounts receivableLegal problems with orders receivedLeakage of personal information or internal confidential informationAccidents or disasters related to fires or explosions

Illegal activity related to the storage of solvents, management of dangerous chemicals, etc.

Damage to the company’s internal computer system due to cyber terrorism, illegal access or useof company information, and leakage of personal information or internal informationCrimes against the company (threats, kidnapping, robbery)Unreasonable demands from antisocial organizations, transactions conducted between businesspartners and antisocial organizations Material losses or personal accidents suffered by customers or the company due toearthquakes, wind or water damage, lightning, etc.Shareholder derivative lawsuits, hostile takeoversViolations of the Subcontract Law of Japan, illegal transactions with business partners

Infringements of patents, trademarks, copyrights

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

Product accidents, environmental problems, fires or natural disasters, damage to human orphysical resources caused by international conflicts or terrorism, etc.

Division in ChargeCorporate Manufacturing,Technology & ResearchBusiness SystemPersonnel & Labor RelationsFinance & AccountingLegal AffairsLegal AffairsCorporate Manufacturing,Technology & ResearchCorporate Manufacturing,Technology & ResearchBusiness System

Personnel & Labor RelationsLegal Affairs

Personnel & Labor Relations

Legal AffairsCorporate Manufacturing,Technology & ResearchLegal Affairs

Corporate Manufacturing,Technology & ResearchCorporate Planning

Accidents or disastersrelated to companyoperations

Defamation, slander, andother criminal damages


CSR Management Compliance

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

Disseminating the ConductGuidelines

The Conduct Guidelines consist ofseven Basic Principles and 43 SpecificConduct Guidelines (➞P. 30) to expressthe behavioral norms by which everyemployee at the Toppan Group com-plies with laws, regulations, and corpo-rate ethics.

Conduct Guidelines Promotion LeadersToppan has introduced a ConductGuidelines Promotion Leader system todisseminate the Conduct Guidelines inthe workplace and ensure full compli-ance with the guidelines. Under this sys-tem, a team of Conduct GuidelinesPromotion Supervisors (the “Super-visors”) and Leaders (the “Leaders”) hasbeen deployed in all operational sites,including the Group production compa-nies. In total, 626 Leaders are now oper-ating across Japan. A cumulative totalof 2,445 employees have worked asLeaders since the commencement of thesystem in 2004. In keeping with the prin-ciple of one-year terms, Toppan reelectedLeaders in fiscal 2008 to ensure thatmore employees would have the oppor-tunity to serve as Leaders. Most of newly

elected Leaders were department super-visors. While the current ratio of femaleLeaders is 4.3% (27 Leaders), the Com-pany will maintain its assertive efforts toincrease this rate with the aim of foster-ing more female Leaders.

From fiscal 2008, the system hasbeen implemented throughout all Groupcompanies in Japan, with semiannualspecialist training sessions for Leadersheld jointly with the Group companies.

Dissemination Activities by ConductGuidelines Promotion LeadersThe Leaders have formulated an optimaldissemination plan and devoted them-selves to develop activities based on theplan. In setting the plan, they have tai-lored the details to business operations,staff compositions, and working envi-ronments at their relevant workplaces.

The National Meeting of ConductGuidelines Promotion Supervisors is heldeach October to share and discuss thevarious outstanding dissemination activi-ties in the operational sites across Japan.

Using Tools to Promote the ConductGuidelinesToppan gives every employee a Conduct

Structure to Promote the Conduct Guidelines

Training for the Conduct Guidelines PromotionLeaders

Conduct Guidelines Casebook (left) and ConductGuideline Handbook (both in Japanese)

President & CEO

Director in charge of Conduct Guidelines Promotion

Conduct GuidelinesPromotion Supervisor

Senior GeneralManager of Legal

Affairs Division

Sales promotionmanagers, etc.

Conduct GuidelinesPromotion Leaders

in sales andplanning departments

Educational leaders

Conduct GuidelinesPromotion Leadersin manufacturing

departmentsManagers or

supervisors of eachdepartment


Managers orsupervisors of each

department


in administrativedepartments

Divisions in the Company Divisions ofthe head office

EmployeesEmployees

Division heads

Compliance Department

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

Guidelines Casebook, a Q&A style case-book describing actual situations thatcan arise in daily work. The Leaders usethe casebook to disseminate informa-tion and the Company uses it to providerank-based education on compliance.

The Conduct Guideline Notificationsposted on the Company intranetheighten employee awareness on thelatest important issues to do with con-duct in the workplace. The notificationsissued in fiscal 2008 provided news andinformation on topics such as insidertrading, transactions under the Sub-contract Law of Japan, information leak-ages, collusion and cartel, driving underthe influence of alcohol, and the use ofillegal drugs.

In fiscal 2008, Toppan also prepareda Conduct Guideline Handbook, a col-lection of actual cases to illustrate theseven Basic Principles of the ConductGuidelines in a brief, easy-to-understandstyle. From fiscal 2009, the Leaders atthe workplaces will begin to use thishandbook as a tool for directing perva-sive measures for the stimulation of adeepened understanding of the guide-lines among all Company employees.

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Operating the ToppanHelpline

The Toppan Helpline, the Company’sinternal reporting system established in2003, complies with the WhistleblowerProtection Act enforced in Japan fromApril 2006. When a legal violation or injus-tice is discovered, it is to be reported to superiors for deliberation. When anemployee’s superiors fail to settle aproblem, the employee is encouragedto call the Helpline to report the matterwith his or her real name. In fiscal 2008,the Helpline was renamed the ToppanGroup Helpline and expanded to coverall Group companies. It is kept open foruse by all directors and employees ofthe Group, including temporary staff andpart-time workers.

In fiscal 2008, the Helpline was usedin four cases involving power harass-ment, the improper use of companyexpenses, and other inappropriateactions. All four cases were strictly inves-tigated and properly handled to preventrecurrence.

Toppan also implemented an ongo-ing series of compliance education inrank-based training sessions for newemployees and newly appointed super-visors and managerial staff.

Education on Compliance with the Subcontract Law of JapanTo attain full compliance with the rele-vant laws and regulations in transactionswith subcontractors, Toppan held 30educational and verification sessions oncompliance with the Subcontract Lawthroughout Japan in fiscal 2008. Thesessions were conducted mainly for theproduction management departmentsand planning and sales promotiondepartments. About 2,400 employeestook part.

Briefing on ComplianceIn fiscal 2008, Toppan was not involvedin any violations of laws or regulationswith major impacts on society. The Com-pany received no criminal punishments,administrative penalties, or administra-tive guidance.

Promoting Compliance inOverseas Group Companies

To promote compliance in overseasGroup companies, the Toppan Groupintroduced Conduct Guidelines for sub-sidiaries in Beijing and Shanghai in fis-cal 2006 and in Taiwan in fiscal 2007.

In fiscal 2008, the Group introducedConduct Guidelines for subsidiaries inThailand and Indonesia and launchedinitiatives to disseminate the guidelines.The Eastern Asian subsidiaries orga-nized specialist training for the ConductGuidelines Promotion Leaders to furtherfacilitate the guidelines.

Compliance EducationCompliance EducationToppan has held specialist trainingseries for Conduct Guidelines PromotionLeaders for several years. Two of theseries were held in Japan in fiscal 2008.In the first, 655 Leaders were trained in31 sessions across the country, fromAugust to October 2008. In the second,561 Leaders were trained in 27 ses-sions, from February to March 2009.

Training for the Conduct Guidelines PromotionLeaders in China

Tools for promoting the Conduct Guidelines usedin Thailand and Indonesia

Internal reporting(emails or sealed

documents sent with theemployees’ real names)

ReportingInstructions

Reporting andconsultation

CommunicatorAll Group employees

ReceiverToppan Printing Co., Ltd.

President & CEO orSenior Corporate Auditor

Investigation andcountermeasure

organizations

SuperiorReporting on progress and results, Follow-up communication

When a problemis not settled

Toppan Group Helpline


CSR Management Information Risk Management

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

Preventing UnauthorizedInformation Extraction andHuman Error

As a company operating in the informa-tion communication industry, Toppanhandles a great deal of personal infor-mation and other types of data entrustedby customers. Ensuring informationsecurity and preventing information leak-age are vital to the advancement ofToppan’s businesses.

In May 2008, the Company recheckedall the areas under tight security desig-nated for the handling of personal infor-mation and reviewed the risk levels andmanagement measures in each area.

Toppan also reviews its in-house ruleson the handling of printed securitiesmaterials and confidential operations tostandardize them whenever needed.

To minimize human errors and otheroperational mishaps at the workplace,Toppan issued Close Calls on the Job,Vol. 1 and Vol. 2, in-house bookletsdescribing problems that can potentiallyresult from operational mishaps. Thegoal is to facilitate a thorough aware-ness of the rules to be observed byemployees in daily operations.

Reinforcing Managementunder ISO/IEC 27001 andPromoting ISO/IEC 27001Certification

Following the full-scale revision of in-house rules and bylaws in fiscal 2007based on ISO/IEC 27001, the globalstandard for information security man-agement systems (ISMS), Toppan hascomprehensively promoted certificationacquisition for operations in sites in theElectronics field and in areas under tightsecurity designated for the handling ofpersonal information across the Company.

In fiscal 2008, three operations werenewly certified and the boundaries oftwo operations were expanded.

Certified operational sites evaluatepossible risks after sorting out all infor-mation assets, including intermediateproducts resulting from the information-handling processes. These sites thenadopt countermeasures suitable foreach risk level from among the man-agement measures specified in theappendix of the ISO/IEC 27001 stan-dard. The adopted measures arereviewed on a regular basis to supportnecessary and sufficient reinforcement.

IInformation and Communication Division•TOPICA (December 2001)•Asaka Securities Printing Plant, ToppanCommunication Products Co., Ltd.—Infor-mation and Communication ManufacturingSubdivision (June 2006)

•IT Development Department, Toppan IdeaCenter; Contents Division, Toppan GraphicCommunications Co., Ltd. (July 2008)

•Takino Securities Printing Plant, ToppanCommunication Products Co., Ltd.— Infor-mation and Communication ManufacturingSubdivision (November 2008)

IElectronics DivisionPhotomask departments, SemiconductorRelated Subdivision (January 2008)

IToppan Multisoft Ltd.Data Center (February 2008)

IMapion Co., Ltd. (August 2008)

ISO/IEC 27001 Certification

Strengthening InformationManagement Foundationsthrough Human AssetDevelopment

Toppan treats human asset developmentas its most crucial initiative for tighteninginformation security management.

In fiscal 2008, the Company added ahost of illustrations to its InformationSecurity Management Guidebook to bol-ster information security management byall employees, including temporary staff.A total of 84 briefings on the revisedguidebook were held across Japan,chiefly to inform employees of the familiarrules on management for the handling ofmanuscripts and artworks, regular pass-word changes, and other routines. Afterthe briefings, the employees were testedto assess their understanding of the rules.

Toppan fosters in-house proponentsof information security by holding trainingsessions for employees who seek quali-fication to serve as internal assistant audi-tors responsible for auditing the ISMS.The sessions have been held three timesa year since fiscal 2007 (in September,October, and December in fiscal 2008).Internally qualified employees are encour-aged to acquire higher qualification asISMS assistant auditors. There are now91 ISMS-qualified staff working at Toppan,including applicants who have passed thetraining session.

Information Security Management Guidebook(in Japanese)

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

Information Risk ManagementC

SR

Manag

ement

Inform

ation

Risk

Manag

ement


Reinforcing Cooperationwithin the Group

The Toppan Group holds a quarterlyInformation Security Promotion Meetingfor Related Companies to reinforce theinformation management systems atdomestic Group companies by check-ing the progress of the various measuresin place. In fiscal 2008, Toppan heldthree ISMS introductory training ses-sions with internal lecturers and severalsessions to individually respond to thedemands from Group companies.

Participating in the RatingBusiness

I. S. Rating Co., Ltd., a rating companyspecialized in information security inJapan, was founded in May 2008.Toppan participated as a member of thestudy group assigned to prepare for thefoundation of this company from the verybeginning. Toppan also underwent a trialreview by the company in October 2008.

To honor the trust of customers,Toppan will strive to establish a morestringent, publicly laudable managementsystem for the prevention of information-related accidents.

Enhancing the Effectivenessof Internal Audits

In fiscal 2008, Toppan reviewed theinternal audit mechanisms to maintainand improve its information manage-ment system on an ongoing basis.Based on this review, the Companyestablished an internal audit systemcentering on the following four proce-dures.

Preliminary Survey of ActualConditions for All EmployeesPrior to internal audits, the Companysurveyed the entire Toppan workforce(21,307 employees in total, includingtemporary staff) on the actual status ofcompliance with 46 familiar rules (e.g.,the restriction against removing PCsfrom the workplace). The departmenttrends clarified through survey resultshave been used as basic data for inter-nal audits.

Directive Audits by the Head OfficeThe Information Security ManagementPromotion Committee conducted exhaus-tive questionnaires and onsite interviewswith information security managers and

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

Internal Audits in DivisionsEach division conducted an advisoryinternal audit according to a standardchecklist of 182 items for the 325Company departments and the Groupproduction companies.

Audits on the Processes for HandlingPersonal InformationThe Company audited all of the processesfor handling personal information. Theaudits were conducted from a quality-control perspective to impose theappropriate procedures for preventinginformation-related accidents.

Reinforcing Quality Controlof Websites

Toppan installed a security-check toolon a test basis for constructing andoperating risk-free websites. The toolproved to be effective for correctingglitches that went undetected by othermeans. In fiscal 2009, the Company willdeploy the tool in full-scale operation.

Security Level Checks for Web Applications

Diagnostic tool

Firewall

Web server

Checkingvia Internet

Quasi-attackWeb application

DNS server

Scanning

Scanning

Scanning

Databaseserver

Mail server

IMeetings of Information Security Managers:May 2008, February 2009

IRegular meetings of the Information SecurityManagement Promotion Committee: weekly

IInformation Security Promotion Meetings forRelated Companies: April, July, and October2008, January 2009

IVarious surveys•Audit on the handling of personal information: fromApril 2008 to February 2009

•Survey of actual conditions in Web-relatedbusinesses: quarterly; May, August, and November2008, February 2009

•Survey of actual conditions in all areas under tightsecurity: May 2008

•Report on the results of monitoring of all areasunder tight security: monthly

IEducation•Regular training for information security: from July toOctober 2008

•Internal auditor training: from September to October2008

•Training for personnel handling Web-relatedbusinesses: from September to October 2008

•Training for ISMS internal auditor qualification:September, October, and December 2008

•Issuance of Close Calls on the Job booklets:October 2008, April 2009

IOther•Undergoing a review via a trial version of theindication evaluation organized by a rating companyspecialized in information security: October 2008

Activities in Fiscal 2008


CSR Management

Information Management Policy1. Employees shall comply with all internal rules on information man-

agement and manage information appropriately in full observance ofthe law and social order.

2. Employees shall collect information for appropriate purposes usingappropriate methods.

3. Employees shall recognize the value of information as an asset anduse information safely and efficiently for the stated purpose of use.

4. Employees shall safely manage information handled on behalf of cus-tomers to secure customer trust.

5. To ensure the appropriate management of information at all times,the Company and its employees shall improve its information man-agement system based on periodic reviews of social circumstances,technology trends, and the latest revisions in information systems.

Established on April 1, 2001

Conduct Guidelines and Information Management Policy

Chapter 1: Basic Principles

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

2. Maintaining public order and standards of decencyWe will always be aware of our involvement with society, act withgood sense, and never act in a way that disturbs public order or thatdefies common sense. We will sufficiently consider the effects of ouroperations on society and not act in a way that goes against publicorder and standards of decency.

3. Complying with laws and ethicsWe will conduct ourselves in a way that complies with the laws andethics in society. We will comply with overseas and domestic laws,regulations, commercial practices, government notifications, andoperational and industrial standards applicable to our corporateendeavors. Compliance with these laws and regulations forms theminimum standard of society’s rules and we will uphold them withoutfail. In addition, we will act with a high sense of ethical and moralawareness in carrying out our operations. Even in situations whenlegal issues do not arise, we still cannot allow humanitarian, moral, orethical problems to develop.

4. Conducting fair business operationsWe will conduct all foreign and domestic operations in a fair manner.As an upstanding corporate citizen, we will be aware of our socialresponsibilities and carry out sound operations that will not damageour reputation in society.

5. Striving to improve qualityWith regards to the “dedicated products” that we provide tocustomers, we will strive to improve quality based on the concept of“Total Quality Assurance,” not just in the direct manufacturing andquality management sections but throughout the entire Company,including sections related to sales, research, and administration.

6. Appropriate management and disclosure of informationFully recognizing the importance of information, all employees willundertake its appropriate management. Even if it affects us adversely,we will not conceal information but actively undertake its appropriatedisclosure and increase the transparency of our operations.

7. Environmental and safety considerationsWe will carry out operations in harmony with the global environment.We will protect the precious environment bequeathed to us bynature and perform corporate operations that strive for reduced useof limited resources and facilitate recycling.

Furthermore, we will conduct safe production activities, ensureproduct safety, and aim to facilitate a healthy and secure society tolive in.

Chapter 2: Specific Conduct Guidelines

Section 1: Building customer trust1. Doing our best for the customer2. Maintaining customer trust3. Appropriate management of customer property 4. Protecting information about customers5. Appropriate handling of personal information 6. Protecting confidential corporate information

Section 2: Reforming operations1. Complying with international rules and respecting the culture and

commercial practices of overseas countries2. Striving to improve knowledge, skills, and technology3. Fulfillment of work responsibilities4. Securing and utilizing intellectual property5. Respecting the rights and interests of others6. Striving to improve the current situation and targeting new

possibilities

Section 3: Fulfilling corporate responsibilities1. Compliance with antitrust laws2. Prohibition of unlawful practices in dealings with support

companies3. Prohibition of unlawful acts against corporate competitors4. Prohibition of receipt or provision for personal gain or rebate5. Prohibition of bribery6. Prohibition of inappropriate entertainment practices7. Prohibition of illegal political contributions and donations8. Prohibition of providing unjust benefits9. Prohibition of support for antisocial activities10. Prohibition of insider trading11. Prohibition of unlawful import and export transactions12. Prohibition of child labor and forced labor13. Curtailment and reduction of environmental impact14. Promotion of environmentally friendly activities

Section 4: Creating a positive work environment1. Striving for a lively and vibrant workplace2. Striving for a safe and clean workplace3. Following Company rules4. Protecting corporate property5. Avoiding conflicts of corporate interests6. Prevention of discriminatory practices7. Prevention of sexual harassment and power harassment8. Prohibition of private activities9. Appropriate use of the Internet10. Appropriate management of information and records11. Prevention of tacit approval, false reporting, and concealment of

illegal conduct12. Prevention of retal iation against a person who reports

misconduct

Section 5: Developing the Toppan Group1. Taking pride in the Toppan brand 2. Developing the Toppan brand3. Strengthening cooperation between Group companies4. Appropriate disclosure of information5. Promoting communication with shareholders and investors

Established in June 2000 Revised in April 2006

Conduct Guidelines

Social Report

For Customers

Assuring Product Safety and Quality 32

Providing Products and Services to Help Solve Social Issues 34

With Business Partners

Establishing a Trusted Supply Chain 36

With Communities

Cultural Contributions 38

Social Contributions/Community Contributions 40

With Employees

Merit-based Personnel Policies 42

Realizing a Safe and Secure WorkingEnvironment 43

Leveraging Diverse Human Assets 46

Developing and Fostering Human Assets 48

With Shareholders and Investors

Increasing Transparency and Distributing Profits Appropriately 50


Social Report For Customers

Assuring Product Safety and Quality

Total Quality AssuranceEvery customer who has a product man-ufactured at a Toppan plant prescribesa precise specification, and every spec-ification requires a separate approachto quality assurance.

To build a product of satisfactory qualityfor a customer, Toppan must have morethan just an accurate grasp of its cus-tomer’s needs. The Company must knowthe unspoken demands that even thecustomer cannot see. Once all of theneeds and demands are known, theCompany must incorporate them seam-lessly into the design of the final product.

Quality assurance for products atToppan is a concern for every depart-ment, not only the departments directlyresponsible for production. The depart-ments involved in marketing, R&D, plan-ning, design, sales, and delivery allcontribute to absolute quality. This iswhy Toppan describes quality assurancein production as a total activity (“TotalQuality Assurance”) with top priority forbusiness management.

Assuring Product Safety andQuality

The following departments take com-

prehensive activities throughout theprocesses to deliver wholly safe productsthat meet the specified requirements.

Activities in the Sales and PlanningDepartmentsAs active contributors to every process,from the submission of product plans tofinal delivery, the sales and planningdepartments at Toppan keep the rele-vant departments informed of the exactcustomer requirements in terms of qual-ity, cost, and delivery (QCD). Their par-ticipation and guidance redoubles theassurance of high quality.

The 10 Toppan textbooks for salesdepartments cover a wide range of top-ics necessary for the creation of safeproducts in compliance with the ProductLiability (PL) Law of Japan. Every salesdepartment in every division uses thetextbooks for employee education andcase studies.

Activities in the R&D DepartmentsThe Technical Research Institute hasestablished guidelines on research resultsfor the development of products in con-sideration of safety and the environment.Based on these guidelines, the institute

researches and develops safe products inaccordance with related laws and regula-tions, including the PL Law. The productsafety considerations cover all R&Dprocesses, from the first stages of researchup to the design reviews for the commer-cialization of the research results.

Activities in the Technology andProduction DepartmentsToppan has established a unique qualityassurance system in the technology andproduction departments responsible formanufacturing products that meet thequality requirements of customers. Oncethe technology departments define theideal production conditions, the produc-tion departments refine the conditionstowards the complete elimination of pro-duction defects through Total ProductiveMaintenance (TPM) and other manage-ment techniques. Finally, the Companystandardizes the refined production con-ditions as rules to be maintained underthe ISO 9001 quality management sys-tem (QMS) and audits the departmentsto confirm that the rules are enforcedthroughout the Company.

Toppan ensures the safety and quality of every product through a commitment to Total Quality Assurance in every process.

Total Quality Assurance in Toppan’s Business Activities

Planning

ProductionInstructions

Production

Estimate

Receipt of Order

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

production methods?

IHave we accurately calculated costs?

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

IHave we delivered the quality the customer demands?

Inspection IHave we properly inspected the product?

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

Quality Assurance for IntellectualProperty

Quality assurance for intellectual property isa crucial matter for Toppan, an enterprisethat works with creativity and inventive ideasin all business processes, from planning toshipment, in every department.

Toppan is eager to file patents to protectits intellectual properties, especially the tech-nologies and business models the Companyderives from its most ingenious, inventiveconcepts. At the same time, the Companytakes careful steps to avoid any infringementof the copyrights, trademarks, and other intel-lectual property rights held by other compa-nies. This is essential to protect customercompanies from the risk of trouble or incon-venience in the course of business.

As one measure to avoid unintendedinfringements, the planning departmentsinstruct employees and business partners oncopyrights and explain actual cases.

So

cialRep

ort


Assuring Product Safety and Quality F

or

Custo

mers

Managing ChemicalSubstances in Products

Manufacturers all around the world arepressed to more strictly manage thechemical substances contained in theirproducts. In fiscal 2006, Toppan estab-lished a set of guidelines and beganreviewing in-house quality assurancerules and systems for the managementof chemical substances in products. Infiscal 2007, the Company conductedinternal audits on chemical substancemanagement mainly at plants in theElectronics and Living Environmentfields.

Since fiscal 2008, all of the plants atToppan have been incorporating chem-ical substance management systemsinto their quality or environmental man-agement systems. Every division formsits own plan to integrate the systemsbased on the specific requirements forits products and customers. TheCompany will advance the integrationprocess to enhance the effectiveness ofchemical substance management in fis-cal 2009.

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

One operational site acquired theISO 9001 certification in fiscal 2008,bringing the total number of certifiedsites at Toppan to 39. Once the opera-tional sites are certified, external auditorsrevisit the sites for routine surveillanceaudits once a year and reassessmentsfor renewal once every three years. Toconfirm whether ISO 9001 is appropri-ately and effectively put into practice,the head office carried out 35 audits at31 operational sites, in addition to theroutine internal audits carried out at allToppan sites, in fiscal 2008. In addition,24 internal auditor training sessions wereheld to improve the quality of the inter-nal audits. These activities continue toimprove the effectiveness of Toppan’squality management system.

The latest information on ISO certifi-cation is available at http://www.toppan.co.jp/english/csr/iso.html.

Adopting a Certified ApprovalSystem for Manufacturing inFood-related Businesses

The head office audits primarily seek toverify whether the points improvedthrough TPM activities and defect pre-vention measures are properly standard-ized as rules, whether the standardizedrules are accurately observed, andwhether there are possibilities for furtherimprovement.

In food filling and packaging, a busi-ness that requires exacting quality assur-ance for safety and sanitation, the auditscover not only in-house plants, but alloperational sites, including those of part-ner companies. Toppan has adopted acertified approval system to ensure thatoperational sites can manufacture onlyafter receiving the required ratings basedon audit results.

In fiscal 2008, the Packaging Divisioncontinued to collaborate with the headoffice in a series of audits to verify thatall operational sites had responsiblequality assurance practices in place.

Quality Assurance Cycle in Manufacturing Departments

Complying with the Revised ConsumerProduct Safety Law of Japan

Toppan established a basic stance andguidelines on product safety managementand disseminated them among employeesto prepare for the enforcement of the ProductLiability (PL) Law of Japan. To accommodatethe revisions of the Consumer Product SafetyLaw in Japan in May 2007, the Companyreviewed its stance and guidelines for rein-forced product safety management as a stepto complete its internal control.

In fiscal 2008, the head office informedevery division of the details of the revision,provided instructions, and ensured that prod-uct safety management met the require-ments of quality assurance in conformity withISO 9001.

Passage of time

Req

uired q

uality

Integration of TPM and ISO Improvement in product quality

Improvement by TPM Rootage by ISO Thorough coverage through auditing

TPMAssessment of ideal conditionsImprovement of the conditions prescribed for eliminating defects in manufacturing

ISO (auditing)Dissemination to all employees through standardization and educationVerification of thorough coverage

TPM and ISOFurther upgrades

Audit Points•Agreement with customers•Quality assurance system•Management of equipment and inspec-tion devices

•Management of safety and sanitation•Steps to prevent the admixture of differ-ent products

•Steps to prevent the admixture of foreignsubstances

•Steps to prevent the outflow of defectiveproducts

•Steps to prevent contamination •Traceability•Security•Education and training•Maintenance of systems and frameworks

Operational Sites AuditedFood containers

•9 operational sites at divisions and pro-duction subsidiaries

Filling/packing business•5 operational sites at production sub-sidiaries

•17 operational sites at production busi-ness partners

Audits on Food Container and Filling/Packing Business


Social Report For Customers

Providing Products and Services to Help Solve Social Issues

Developing Technologies toHelp Solve Social Issues

The Technical Research Institute plays acentral role in exploring untapped areasof science by thinking freely and push-ing forward with R&D projects on newproducts designed to respond to theanticipated needs of the future market.Product development efforts at Toppanare guided by analysis to grasp the lat-est trends in the market and customers.The Company has developed a goodnumber of high-performance, system-ized products with enhanced environ-mental benefits and high added value.

In the field of production technology,the Company seeks to improve quality,shorten lead times, and reduce costs byautomating lines, saving labor andenergy, and modifying processes forproduction.

Next-generation Products Developedby Technologies Derived from PrintingAdvances in technologies—surface-treatment technology, microfabricationtechnology based on prepress technol-ogy, and technologies acquired in print-ing—have led to the development of

next-generation products such as full-color organic Electro Luminescent (EL)displays, medical chips for analysis, andcomponents for fuel cells.

Industry-Government-AcademiaAllianceToppan closely collaborates with variousexternal research institutes in techno-logical development in Japan. In addi-tion to engaging in national collaborativeprojects (including contract researchsponsored by the New Energy andIndustrial Technology DevelopmentOrganization), Toppan researchers col-laborate with many universities (includ-ing the University of Tokyo, the TokyoInstitute of Technology, and TohokuUniversity).

Toppan is also an active participant intechnical cooperation projects withcompanies around the world to developproducts, systems, and services thataddress social needs and help solvebroader social issues in various fields.

Developing ProductComponents for ReducedCarbon Dioxide Emissions

By combining technologies for large-area microfabrication and surface treat-ment, Toppan is making progress in thedevelopment of components for fuelcells and other products that contributeto the reduction of CO2 emissions.

Membrane Electrode Assembly(MEA) for the Fuel CellA fuel cell generates electricity througha reaction between hydrogen and oxy-gen. Two features of this generating sys-tem make the fuel cell an ideal sourceof next-generation energy with low envi-ronmental burden: the reaction gener-ates power more efficiently than existinggenerating systems, and it emits no CO2

whatsoever during power generation.The only by-product discharged is water.

Toppan is developing a membraneelectrode assembly (MEA) and a sepa-rator, two core components of fuel cells.The MEA consists of a catalyst layer andelectrolyte membrane for optimal power-generation efficiency and durability. Thefuel cell system requires a smooth flow

Toppan uses the various technologies it has acquired in printing to develop products and services responsive to social issues and needs.

Membrane Electrode Assembly (MEA) for the Fuel Cell

Electrolytemembrane

Membrane electrodeassembly (MEA)

H2 2H++ 2e–

2H++ 1/2O2 + 2e– H2O

H2 + 1/2O2 H2O

Separator Separator

Total

Proton (H+)

Electron (e–)

Hydrogen(H2)

Oxygen(O2)

Catalystelectrode

layer

Catalystelectrode

layer

Water(H2O)

Membrane electrode assembly (the sheet shownat the center of the photo)

So

cialRep

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Providing Products and Services to Help Solve Social IssuesF

or

Custo

mers

Challenges in UniversalDesign

As Toppan sees it, universal design (UD)is a corporate social responsibility forevery company in the information com-munication industry. Toppan strives tocreate fulfilling lifestyles by creating andbuilding products and services cus-tomized to users in the various theatersof communication between client com-panies and their own customers.

Deepening the Awareness of UD inSocietyThe Comfortable Design Exhibit andUniversal Design in Printing Exhibit wereheld at the Toppan Koishikawa Buildingin Tokyo to encourage shared thinkingand deeper awareness about UD forToppan and its customers. The exhibitsintroduced strategic UD concepts and awide variety of UD practices.

UD Efforts at Toppan DepartmentsToppan researchers, mainly from thepackaging departments, began study-ing the color perception of the elderly in1998. A decade later, in fiscal 2008, theCompany took out a patent on the color

conversion device, a technology jointlydeveloped with Katsunori Okajima(Associate Professor, Yokohama NationalUniversity in Japan), an expert in visionscience. Toppan continues to developeasily recognizable designs for theelderly and people with weakness incolor perception.

The Company concentrates intensiveresources on the development of prod-ucts and services from consumer view-points based on the results of usersurveys on the various environments inwhich its products and services areexpected to be used. The packagingdepartments are pressing ahead withtheir projects to plan and developmore intuitive packaging materials withenhanced user friendliness. Depart-ments in the Information & Networksfield, meanwhile, are gearing up theirwork to plan and develop pamphletsthat are easier to read, search, andunderstand for readers. As more ofthese pamphlets are produced, moreorders come in. These efforts will becontinued in the future.

of hydrogen, oxygen, electrons, andwater in the catalyst layer to increasethe power-generation efficiency. Toppanis working to obtain this ideal MEA con-dition with proprietary inking, coating,and laminating technologies.

In fiscal 2008, Toppan made someheadway in upgrading the performanceof a non-platinum catalyst used in theinking process. In fiscal 2009, theCompany will continue to develop a newmaterial for fuel cells as a participant inprojects run jointly by industry, govern-ment, and academia. It will also seek tobuild up low-cost and high-efficiencyproduction technologies by further refin-ing its own coating and laminating tech-nologies.

Toppan will explore possible newapplications for fuel cells in renewedrelationships with automakers and themanufacturers of fixed fuel cells.

Eye-tracking camera for analyzing consumergaze behavior

UD paper containers

UD flexible packaging materials and plasticcontainers


Social Report With Business Partners

Establishing a Trusted Supply Chain

Promoting CSR ProcurementThe Toppan Group has established a setof CSR Procurement Guidelines to pro-mote CSR procurement in collaborationwith business partners involved in theprovision of raw materials and equip-ment and the production and process-ing of products for the Group.

These guidelines consist of the BasicProcurement Policy and the CSR Pro-curement Standards. The Basic Procure-ment Policy is a conceptual frameworkto be closely observed by every employeeinvolved in procurement operations. The policy states the following sixprinciples.•Fairness and propriety•Compliance•Information security•Environmental consideration•Pursuit of quality, cost, and delivery(QCD)

•Promotion and development of CSRTo deepen employee understanding ofthe Basic Procurement Policy, the Groupincorporates the Conduct Guidelines,the Purchasing Rules, and the Sub-contract Law Compliance Manual ineducation and training.

ety and the environment.As a basis for business, the Toppan

Group recognizes that every businesspartner must have a full understandingof the purposes of CSR procurement atthe Group, must comply fully with theGroup’s CSR Procurement Standardswhen dealing with Toppan or Groupcompanies, and must fully cooperate inthe implementation of CSR initiatives.The business partners of the Groupinclude raw material manufacturers,trading companies, sales agencies,companies entrusted with productionand processing, companies specializedin planning and design, and providersof services and labor.

Complying with the CSRProcurement Standards andAdvancing CSR InitiativesInteractively

The boundary of business partners askedto cooperate with the efforts of the ToppanGroup to advance CSR procurementwas expanded to include planning anddesigning companies in fiscal 2008. Intotal, 902 companies participated in thebriefing on the Group’s CSR initiatives.

The CSR Procurement Standardsstipulate the requirements to be satis-fied by every business partner. At thesame time, all employees in the ToppanGroup are required to adhere to thestandards. In collaborating with businesspartners, the Group implements CSRinitiatives throughout the entire supplychain with the aim of corporate valueenhancement for every counterpart.

Boundary and Breadth of theCSR Procurement Standards

The CSR Procurement Standardsrequire the close consideration of basichuman rights, public order, informationmanagement, the environment, QCD,and social contributions in the course ofall business activities at the ToppanGroup. The 20 standards categorizedinto the eight separate areas covered bythe CSR Procurement Standards con-form with Toppan’s Conduct Guidelinesand the CSR terms established bythe Japan Electronics and Informa-tion Technology Industries Association(JEITA). The Group asks its businesspartners not only to seek cost perfor-mance, but also to pay attention to soci-

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

Toppan Group CSR Procurement Guidelines (revised from the Procurement Guidelines in May 2007)

CSR Procurement Standards1. Basic human rights

(1) The company respects basic human rights.(2) The company does not carry out unjust discrimination in the treatment

and employment of employees.2. Public order, compliance with laws, fair business activities

(3) The company does not carry out inappropriate profit sharing or receipts.(4) The company does not have dealings with any antisocial individual or group.(5) The company complies with laws, regulations, and government notices

applicable to business activities, such as company laws, antitrust laws,subcontracting laws, labor-related legislation, and environment-relatedlegislation.

(6) The company complies with laws protecting those who disclose infor-mation in the public interest, and it protects the rights of those whoreport internally.

(7) The company complies with legislation related to exports and with thelaws of the countries and regions in which it operates.

(8) The company does not allow child labor or forced labor.(9) The company does not infringe intellectual property rights such as

patents, copyrights, and trademarks.3. Management and disclosure of information

(10) The company carries out appropriate management of confidential infor-mation and personal information obtained through its dealings.

(11) The company strives to make timely and appropriate disclosure ofinformation relating to matters such as the details of business activi-ties, quality, and product safety.

4. The environment and safety(12) The company strives to use raw materials and components with a low

impact on the environment.(13) The company strives to devise processes with a low impact on the

environment for manufacturing and processing.(14) The company carries out appropriate management of chemical sub-

stances specified by Toppan.(15) The company carries out appropriate disposal of industrial waste. (16) The company strives to prevent work-related accidents and create a

safe and clean workplace, and also works to ensure the safety ofemployees in an emergency.

5. Improving quality(17) The company meets the standards for quality required by Toppan and

strives to improve quality.6. Appropriate pricing

(18) The company provides products or services at a price that is compet-itive in the market.

7. Stable supply(19) The company meets stipulated delivery dates and supplies items safely

and reliably.8. Social contributions

(20) The company engages in contributions to society.

Basic Procurement PolicyIWe impartially offer opportunities to all suppliers. IWe comply with all domestic and overseas legislation and perform fair busi-

ness dealings based on corporate ethics. IWe strictly control the information obtained through our procurement activities.

IWe give full consideration to impacts on the environment. IWe pursue QCD (Quality, Cost, Delivery) in order to meet the needs of the

market. IWe implement CSR initiatives throughout the entire supply chain.

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Establishing a Trusted Supply ChainW

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artners

The business partners willing toobserve the Group’s rules of CSR pro-curement submit a memorandum ofcooperation and report the current statusof their CSR activities in a questionnaire.

The Toppan Group collects and ana-lyzes questionnaire results and providesfeedback evaluations to the relevantbusiness partners whenever necessary.

The Group has also begun to visitbusiness partners to conduct onsitechecks and exchange views on CSR ini-tiatives based on the results of its eval-uations of the survey response forms.Through this approach, the Group seeksto enhance the level of CSR activitiesinteractively with its business partners.

The Supplier Hotline, a portal forreceiving reports from business partners,has been installed since July 1, 2009.The hotline serves as another channelfor the steady improvement of commu-nication with business partners.

The Group’s CSR Procurement Guide-lines are posted on the Toppan website,together with an email link for inquiries.

Promoting Green Procurementand Green Purchasing

One important factor in building a sus-tainable society is to purchase environ-mentally friendly products preferentially.In conformance with the GreenStandards for Offset Printing Servicesestablished by The Japan Federation ofPrinting Industries (JFPI), Toppan intro-duced a “green procurement” system inApril 2002 and revised it in March 2006.In fiscal 2008, Toppan’s conformanceratio for ink was 95.8%. For paper prod-ucts, the Law on Promoting GreenPurchasing of Japan and the GreenPurchasing Network (GPN)’s purchasingstandards in the Japanese market wererevised in February and April 2009,respectively, to cope with the emergenceof recycled paper products with fraudu-lent labeling on their used paper content.To keep up with these revisions, Toppanis considering how the Company shouldrevise its in-house standards accordingly.

For its office operations, meanwhile,Toppan adopted a Basic Policy of GreenPurchasing in January 1999. Under thisbasic policy, the Company selects prod-ucts that meet in-house “green pur-chasing” standards and purchases themon an ongoing basis.

Assisting Business Partnersin the Management ofChemical Substances

Among the CSR Procurement Standardsin place, the standards governing themanagement of chemical substancesharmful to humans are extremelyimportant.

Toppan manages chemical sub-stances in collaboration with businesspartners by establishing a set of Com-pany-wide Standards for the ChemicalComponents of Raw Materials, basedon the 24 groups of substances desig-nated by the Japan Green ProcurementSurvey Standardization Initiative (JGPSSI).

Each of the common Company-widestandards is supplemented by separatestandards set for businesses that requiremanagement systems for specific prod-uct types, such as electronic compo-nents, bank and credit cards, andpackaging for food and medical supplies.

In fiscal 2008, Toppan established amanagement system based on its QMSin order to enhance the effectiveness ofchemical substance management at itsbusiness partners.

Green Purchasing Network (GPN)A nationwide network founded in 1996 to pro-mote green purchasing in Japan. As of March11, 2009, the network comprised 2,929 organi-zations (2,393 companies, 264 government insti-tutions, and 272 private organizations). Thenetwork announced its Purchasing Guidelinesfor Offset Printing Services (GPN-GL14) inDecember 2001.

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

Interview with a business partner


Social Report

Local Community Activities Conducted by the Printing Museum

The Printing Museum engages in a broadrange of community activities as a culturalfacility operating in Bunkyo Ward, Tokyo. Themuseum is especially active in collaborativeprojects with local educational institutions.

Since its opening in 2000, the museumhas supported a number of programs forextracurricular study, career experience edu-cation, and integrated learning by elemen-tary and junior high school students inBunkyo Ward. Its main effort in this area hasbeen a collaborative learning project withKanatomi Elementary School. The museumhas organized various learning programssince the launch of the project in 2001. Infiscal 2008, it educated fourth- and fifth-graders on the history and mechanisms ofprinting. In October 2008, the school sentthe museum a letter of appreciation to com-memorate their eight years of collaborativeactivities.

In addition to supporting learning projectsat schools, the museum has been contribut-ing to lifelong learning programs for residentsin Bunkyo Ward. Since 2007, it has held theBunkyo Academic lecture series, a lifelonglearning program for local residents hostedby Bunkyo Ward, in collaboration with theBunkyo Academy Foundation. Four lectureson the theme of “Learning printing culture”were presented in fiscal 2008.

With Communities

Cultural Contributions

Activities to Contribute toCulture

Printing MuseumThe Printing Museum, Tokyo pursuesactivities towards the establishment of anew academia, the study of printing cul-ture, to cultivate learning on the culturaldimensions of printing itself. More than260,000 people have visited the museumto date.

The public can visit the GeneralExhibition Zone in the Main ExhibitionRoom year round, as well as temporaryexhibitions held several times annually.The museum also includes a PrintingWorkshop, VR (Virtual Reality) Theater,specialized library, and museum shop.A permanent installation in the GeneralExhibition Zone presents an easy-to-understand history of printing over atimeline spanning five ages, from thebirth of printing to the present. ThePrinting Workshop, a space for educa-tion and training, has been used by over150 institutions and organizations,including companies, technical colleges,and elementary schools.

The museum held two temporaryexhibitions in the Main Exhibition Roomin fiscal 2008: 1950s Japan: The Blos-

As a Mainstay of Informationand Culture

Ever since its invention, printing has con-tributed to the development of cultureand art through the conveyance ofinformation. The information conveyedthrough printing can amaze and leavedeep impressions. Activities to con-tribute to culture help Toppan live up toits identity “as a mainstay of informa-tion and culture” under the CorporatePhilosophy.

The Toppan Hall and Printing Museum,the Company’s main cultural facilities,are venues for a host of cultural activi-ties sponsored and organized byToppan. Both are annexed to theToppan Koishikawa Building in Tokyo.

Group companies such as TokyoShoseki Co., Ltd. (a publisher of schooltextbooks) and froebel-kan co., ltd.(a publisher of children’s and picturebooks) have also been contributing cul-turally. Toppan is eager to contribute tothe growth of not only the Group, butthe printing industry as a whole.

soming of the Graphic Designer and TheBirth of a Million Seller: Magazines asmedia in the Meiji-Taisho era.

1950s Japan: The Blossoming of theGraphic Designer featured 500 graphicdesign works and related productioncontent for books, booklets, posters,newspaper and magazine advertise-ments, wrapping paper and packaging,and more. The exhibit attempted totrace the patterns of development ofJapanese graphic design in the 1950s,a decade when the foundations ofpostwar design were being laid. TheBirth of a Million Seller: Magazines asmedia in the Meiji-Taisho era traced thehistory of magazines in Japan over threeperiods. Visitors learned how magazinesrapidly evolved as a medium to supportthe lifestyles of the general public.

The P&P Gallery adjacent to thePrinting Museum presents temporarystandalone exhibitions on themes mainlyto do with printing techniques, designs,and books. Several exhibitions wereorganized in fiscal 2008, includingGRAPHIC TRIAL 2008; How Pop-UpBooks are Created; Born in Bulgaria—Using the Cyrillic Alphabet in Posters;and World Book Design 2007–08.

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

The Birth of a Million Seller: Magazines as mediain the Meiji-Taisho era

Bunkyo Academic lecture series

1950s Japan: The Blossoming of the GraphicDesigner

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Toppan HallToppan Hall is a 408-seat symphonicconcert hall opened in 2000. Designedas a venue for a shared “moving of theheart,” the hall is known for the redo-lent, acoustical warmth of its woodmaterials.

Performances of many genres havebeen held at the hall, from recitals byworld-famous musicians to LunchtimeConcerts (six times a year; admissionfree) and Espoir series, events held todiscover and foster talented youngmusicians. Thirty-five concerts wereorganized in fiscal 2008, including spe-cial programs such as the publiclyacclaimed Song Series—Gedichte undMusik and Olivier Messiaen’s 100th BirthAnniversary Series—Messiaen: Quatuorpour la Fin du Temps. Toppan Hall isalso lent out for the Music Competitionof Japan and local music colleges andelementary schools. More than 330,000people have visited the hall to date.

Supporting and Sustaining EducationCultureToppan works with The Mainichi News-papers Co., Ltd. and the Japan SchoolLibrary Association as a cosponsor ofthe Central Contest for Book ReportDrawings, an annual contest to encour-age students to express their impres-sions of books by drawing. The judgesof the 20th competition in 2008 received555,385 picture entries from 7,354schools.

Tokyo Shoseki Co., Ltd. opened TheTextbook Library, Japan’s first repositoryof school textbooks, back in 1936. Thislibrary now houses about 140,000 vol-umes, from historical literature in the EdoPeriod to modern textbooks. The entirecollection can be browsed at no charge.

The Tosho Education Award wasestablished in 1984 with the aim of con-tributing to education. The library com-mends excellent essays on teachingfrom among submissions from educa-tional professionals across Japan everyyear. The essays are compiled in a col-lection and distributed to teachersaround the country to help propagateexcellent teaching methods.

Contributing to Society throughMusicIn 1959, froebel-kan co., ltd., a publisherof children’s and picture books, orga-nized a boys choir, a relatively rare thingin Japan, as a social and cultural pro-ject. By the time the Froebel Boys Choircelebrated its 50th anniversary in 2009,as many as 1,000 boys had passedthrough its ranks. About 80 young vocal-ists, from three-year-olds to junior highschool students, are now members. Thechoir makes very kinds of appearances,including television performances andcommercials.

True to its corporate philosophy, “todevelop character through educationand culture,” Tokyo Shoseki Co., Ltd.has been a joint sponsor of Japan’sNursery Rhyme Culture Award, an eventhosted by the Association of Children’sSong Writers in Japan, since 2002. Thesponsors celebrate the Children’s SongDay on July 1 of every year by bestow-ing the award on an individual or groupof individuals in Japan who have helpedto spread children’s songs. Through thisaward, they hope to pass along thenursery rhyme culture of Japan to com-ing generations.

Song Series—Gedichte und Musik: ChristophPrégardien

Concert by the Tokyo College of Music StringOrchestra

Central Contest for Book Report Drawings

Exhibition room at The Textbook Library

Commendation ceremony for Japan’s NurseryRhyme Culture Award

Froebel Boys Choir


Social Report With Communities

Social Contributions/Community Contributions

Harmony with LocalCommunities

Harmony with local communities is animportant CSR theme for the ToppanGroup, a coalition of companies thatoperate businesses throughout manyregions across the globe.

In Japan, Toppan harmonizes withcommunities through various importantcommunity contribution activities. TheCompany beautifies the environmentaround its plants, organizes plant toursand hands-on training sessions, estab-lishes cooperative structures for naturaldisaster response, and opens site facili-ties for local residents.

Blood Drives and Activities forCleanup and Beautification of theEnvironment Toppan develops blood donation drivesand activities for local cleanup and beau-tification on a regular and ongoing basisto contribute to local communities.Thousands of Toppan employees par-ticipate each year.

An accumulated total of 14,749Toppan employees took part in environ-mental cleanup and beautification activ-

ities at 30 operational sites in fiscal 2008.In addition, a cumulative total of 2,829employees donated blood at 32 opera-tional sites.

Plant Tours, Hands-on TrainingSessions, and Job-hunting SupportProgramsToppan holds briefings and meetings toreport and discuss environmental effortsat its plants with residents from sur-rounding communities. As measures for the fosterage of the next generation,the Company offers plant tours for ele-mentary and junior high school studentsand support programs for young job-hunters.

For elementary and junior high schoolstudents, its plants host tours and showvideos introducing production systemsand processes for printed materials. Bymaking requests, students can actuallytake part in production processes understrictly controlled safety conditions.

To support young job-hunters, Toppanprovides hands-on plant training and lec-tures on the basics of printing and mar-keting. One of the core purposes of thesupport programs is to deepen the stu-

Toppan Charity ConcertsThe Toppan Charity Concerts have been held in Japan since fiscal 2007 asevents to address social issues of globalrelevance.

The concerts are organized to helpraise child literacy rates across theworld. After deducting honorariums forthe performers, the ticket revenue fromthe concerts is donated to the Office ofthe United Nations High Commissionerfor Refugees (UNHCR) via “Japan forUNHCR,” an NPO acting as the officialrecipient for the office in Japan. Thedonations are used to fund educationfor child refugees.

The Company sponsored the secondseries of Toppan Charity Concerts onMarch 6 and 7, 2009. The high turnoutover the two days enabled Toppan todonate 2,465,000 yen in total.

Wherever Toppan operates around the globe, its operational sites undertake activities to facilitate harmony with the people in communities and societies.

Ai Okumura on violin, Takehiko Yamada on piano

Izumi Tateno (left) and Ayumi Hirahara (right) onpiano

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

On November 9, 2008, a group of Toppanemployees held a social contribution eventat the Toppan Koishikawa Building in Tokyoby inviting other employees, employee fami-lies, local residents, and members of organi-zations for the support of persons withphysical or mental challenges.

After a mini-concert, participants in theevent took part in the Campaign to DeliverPicture Books organized by the ShantiVolunteer Association (SVA). Working withpicture books published in Japan, theypasted over Japanese text with sticker print-outs of the same text translated intoSoutheast Asian languages.

Through this simple approach, they preparedabout 200 picture books for children in coun-tries with limited opportunities to read. Thebooks were sent to children in Laos, Cambodia,and other Southeast Asian countries.

Eleven organizations, including severaldedicated to the support of the physically ormentally challenged, held a bazaar during thecampaign.

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dents’ understanding of the businessworld and the rules they will be expectedto observe as new members of businesssociety. The Company also organizesplant tours and hands-on training ses-sions for students from schools for thehandicapped and the deaf (Japan hasschools for all types of handicapped per-sons, including schools exclusively forthe blind and deaf). As a safety precau-tion, these students are always accom-panied by Toppan employees fluent insign language.

Through these programs, Toppanwelcomed 1,668 people to plant toursand hands-on training sessions at 27operational sites in fiscal 2008.

Cooperation with Local Communitiesin Natural DisastersCooperative support in neighborhoodsis vital for effective disaster response.

The head office in Chiyoda Ward,Tokyo enters agreements for mutualsupport in disaster-relief activities withneighboring companies and nursinghomes for the elderly. The purpose ofthese agreements is to minimize disas-ter damage through cooperative sup-port in firefighting, rescue, and first-aid

activities when disasters strike. Theactivities at the head office in fiscal 2008included a joint evacuation drill in neigh-borhoods. In addition, the Honjo officein Sumida Ward, Tokyo negotiated withlocal neighborhood associations on anarrangement for offering temporary shel-ter for residents. At the Shiga Plant,meanwhile, eight employees registeredin a local fire brigade

Initiatives OverseasThe basic policy for community contri-butions overseas is to carry out commu-nity-based activities in full considerationof local laws, customs, and cultures. Theoperational sites around the world makecharitable donations and hold planttours, in addition to organizing volunteeractivities, blood donation drives, andcleanups around the plants. The sitesalso engage in various activities in col-laboration with NGOs and NPOs in theirregions, including support activities forlocal events and participation in meet-ings aimed at promoting understandingof different cultures.

Initiatives in AsiaUnder a program called “A plan to make

dreams come true,” Toppan CFI (Taiwan)Co., Ltd. has been supporting childrenfrom single-mother families and otherhouseholds in need of economic aid.Toppan CFI (Taiwan) donated playequipment to families in March 2008 andsent 146 books for first-graders to theTainan Municipal Library in April 2009.

P.T. Toppan Printing Indonesia inviteschildren from nearby orphanages to visitits operational site. The children takemeals together with employees andreceive donations and commemorativegifts such as stationery and bags. P.T.Toppan Printing Indonesia has beencontinuing these activities as an annualregular event.

Initiatives in the U.S. and EuropeToppan Printing Co. (America), Inc. orga-nized several activities over fiscal 2008,including student grants, tree planting,and donations to the American CancerSociety. On one special occasion,Toppan Printing Co. (America) donatedfunds to girls scheduled to undergoorgan transplants in the U.S. Its NewJersey Plant made food donations tothe disadvantaged via the local FranklinTownship Food Bank.

Joint evacuation drill under a mutual-supportagreement

Cleanup around a plant

Children receiving donations (Toppan CFI [Taiwan])

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

Activities for Contributing to Local Communities in Fiscal 2008

Environmental cleanupand beautificationactivities

Blood donation drives

Plant tours and hands-ontraining sessions

14,749

2,829

1,668

Participants

30

32

27

OperationalSites

With Employees


Social Report

Merit-based Personnel Policies

Basic Concept of HumanAssets

Toppan values its employees as pre-cious company assets (“human assets”)and recognizes how much it dependson them. From this perspective, theCompany supports the motivated, vig-orous, and earnest work of the Toppanworkforce. The Company keenly under-stands the importance of the motivationto take on new challenges, the drive towork vigorously with a healthy body andmind, and earnest commitment to followthrough on tasks to completion. Whenemployees work vigorously, earnestly,and with strong motivation, Toppan isconvinced that they show their true abil-ities to the full. Toppan strives to improvethe abilities and draw out the organiza-tional powers of every employee throughthe stages of hiring, appointment, train-ing, leveraging, and treatment. To do so,the Company places high priority oncommunication between superiors andsubordinates in a spirit of mutual trust,employee progress towards goals withwell-defined visions, the formulation of apersonnel system for the strict andappropriate enforcement of rewards and

penalties, and the establishment of anopen and fair environment.

Basic Thinking on Personnel PoliciesToppan recognizes that it can build thetrust and respect of society, customers,and other stakeholders by encouragingall of its employees to pursue the real-ization of TOPPAN VISION 21 through“conduct of high value.” In keeping withthis conviction, the Company’s person-nel policies for hiring, appointment, train-ing, leveraging, and treatment are allbased on “conduct of high value” and“abilities and skills.” The term “conductof high value” describes the concreteemployee actions that go into the real-ization of the Corporate Philosophy andCorporate Creed. “Abilities and skills,”meanwhile, are indispensable to thepractice of valuable conduct. A basicframework for abilities and skills is setfor each job type and department.

Operating the Personnel SystemProperly in Cooperation with theLabor UnionThe labor union surveys non-managerialstaff with questionnaires to gauge how

thoroughly the Company informs themof the evaluation criteria it uses to setannual salaries and bonuses. The ques-tionnaire assesses: 1) the alignment ofjob goals and the degrees to which thegoals are achieved; 2) the status of opin-ion exchanges with superiors on issuesto be solved or improved in the future;and 3) the degree to which employeesare satisfied with their feedback inter-views. The questionnaire results arereported to management and used forcomprehending and reviewing the oper-ation of the personnel system. Thisapproach helps management developand operate the personnel system effec-tively in cooperation with employees atall times.

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

Reasons for Leaving*2

Personal reasons

Retirement

Requested by the company

Accession to directorship

Total

Turnover rate

320 (86)

117 ( 0)

0 ( 0)

3 ( 0)

440 (86)

3.9%

Fiscal 2006

348 (77)

150 ( 2)

0 ( 0)

6 ( 0)

504 (79)

4.4%

Fiscal 2007

249 (41)

144 ( 3)

0 ( 0)

2 ( 0)

395 (44)

3.4%

Fiscal 2008

*1 Part of the data for fiscal 2008 is restated from the data disclosed in thefiscal 2008 report. The data for fiscal 2009 includes the number of employ-ees now working at subsidiaries that were spun off on April 1, 2009.

*2 The number of female employees who left the company is shown inparentheses.

Average Annual Salary

Total 6,751,069yen

Fiscal 2006

6,699,674yen

Fiscal 2007

6,561,080yen

Fiscal 2008

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

Fiscal 2006

Fiscal 2007

Fiscal 2008

TotalEmployees

9,964

935

10,180

1,001

10,437

1,111

AverageTenure

Average Age

15.8

9.4

15.5

9.2

15.3

9.0

39.0

31.6

39.1

31.6

39.2

31.7

Sum TotalEmployees

Part-timeWorkers

TemporaryStaff

10,899

11,181

11,548

1,163

1,273

1,208

1,851

2,039

1,666

Male

Female

Male

Female

Male

Female

ManagementClass 1,796

15

1,840

21

1,836

26

Directors

30

1

29

1

28

1

Supervisors

2,173

69

2,205

89

2,244

108

Male

Female

Male

Female

Male

Female

178

66

170

36

151

25

626 (20.3%)

77

Fiscal 2007Number of Recruits*1

132

75

146

31

156

17

557 (22.1%)

61

Fiscal 2008

136

72

150

36

155

24

573 (23.2%)

—

Fiscal 2009

Regularrecruitment ofnew universitygraduates andpost-graduatesNew graduates from highschools and NationalColleges of TechnologyTotal number of regular recruits(percent female)

Mid-career recruitment ofexperienced personnel

Sales,administration,

etc.

Technical

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Realizing a Safe and Secure Working Environment

Respecting Basic HumanRights

The Conduct Guidelines call for theassurance of the dignity of individualsunder all circumstances, and no invidi-ous discrimination on the basis of race,ethnicity, nationality, religion, gender, orphysical characteristics. To raise esteemfor basic human rights, including the pre-vention of sexual and power harassment,Toppan has been promoting awareness-raising activities in rank-based trainingfor employees. Some 1,020 employeesparticipated in fiscal 2008.

To resolve and prevent troubles with sexual harassment, inappropriateemployee conduct is reprimanded underemployment regulations based on theBasic Policy on Sexual Harassment atthe Workplace established in 1999.Sexual harassment counselors are alsodeployed.

No instances of child labor or forcedlabor have ever occurred in the Company.

Occupational Safety andHealth

Toppan makes every effort to eliminateoccupational accidents through the work

of the Safety and Health Committee.This committee regularly organizes safetyeducation and establishes safeguardsas a body planned and operated bylabor and management. Safety andHealth Subcommittees are set up in themanufacturing departments to bolsterthe total productive maintenance (TPM)activities within the departments. Thesesubcommittees seek to secure safetythrough a set of all-hands safety improve-ment activities designed to enable everyemployee to apply his or her full-fledgedabilities without fear of injury.

Whenever an accident occurs, employ-ees throughout the Toppan Groupreceive information on the details andcauses of the problem. Each operationalsite uses the information to plan out cus-tomized countermeasures to ensure thatsimilar accidents will never recur on itspremises.

The technology departments, mean-while, lead Company-wide efforts toidentify and understand all of the poten-tial causes of occupational accidentsbefore installing equipment. Proactivesafety checks and improvements areessential steps for preventing accidents.

Healthcare and HealthEnhancement

Toppan arranges regular medical check-ups and screenings for lifestyle-relateddiseases in order to maintain andenhance the health of employees bypreventing and promptly detectinghealth problems. The Company hasbeen implementing a Lifestyle Improve-ment Support Service and other mea-sures. Employees in need of lifestyleimprovements are offered guidance onpreemptive actions they can take tostave off health problems.

In response to the Japanese medicalinstitutional reforms of April 2008, theCompany has established a new sys-tem to take countermeasures againstmetabolic syndrome, in cooperation withthe Toppan Group Health InsuranceUnion and 59 clinics across Japan.Toppan also provides employees withopportunities to enhance their physicaland mental wellbeing in various ways.In one program, for example, member-ship is subsidized for any of the 500 fit-ness clubs contracted by the ToppanGroup Fraternal Benefit Society through-out Japan.

Toppan goes to great lengths to provide a safe and secure working environment. Safety and security are prerequisites for improving productivity and fulfilling the Company’s most fundamental responsibilities to employees.

*3 Number of occupational accidents requiringemployee leave, per million working hours(reflects the frequency of occupational accidents)

*4 Number of workdays lost as a consequenceof occupational accidents, per thousandworking hours (reflects the severity of occu-pational accidents)

Occupational Safety and Health

0

0

0

Deaths fromOccupational

Accidents0.16

0.39

0.19

FrequencyRate*3

0.02

0.01

0.001

SeverityRate*4

2006

2007

2008

Countermeasures against Pandemic Influenza

Toppan has prepared a manual on health-control measures to prevent the infection andspread of pandemic influenza using informa-tion gathered from relevant authorities. Inaccordance with this manual, the Companyhas been stockpiling masks and other nec-essary articles; encouraging employees totake up preventive practices such as garglingand hand washing; restricting business trips;establishing a routine for sterilization withethyl alcohol before entry into the Company’spremises; and taking various other counter-measures.

Countermeasures against Disasters

Under the basic plan for countermeasuresagainst disasters, Toppan has implementedcomprehensive disaster-preparedness mea-sures in alliance with Toppan Security ServiceCo., Ltd. Since fiscal 2007, the Companyhas been holding disaster-preparedness drillsin conjunction with an emergency life-savingdrill that includes training sessions on the useof Automated External Defibrillators (AEDs).The Company’s fire-response squads havealso participated in Self-defense Fire TrainingCompetitions held by local fire departments.

In the meantime, an evacuation drill hasbeen held in the head office to rehearse forthe eventuality of a large-scale inland earth-quake in Tokyo. This drill includes simula-tions of the steps to be taken to establish adisaster-countermeasure office. In fiscal 2008,the Company checked the initial actions tobe taken primarily by its own fire-responsesquads when an actual disaster strikes, withthe aim of reducing the time required to iden-tify personnel under disaster conditions.

To alleviate earthquake damage preemp-tively, Toppan has been working steadily

since fiscal 2005 to install a system to receivethe Earthquake Early Warnings issued by theJapan Meteorological Agency.

Measures to reserve stockpiles for disas-ters have also been taken. As part of thiseffort, Toppan is cooperating with theJapanese Consumers’ Co-operative Union ina project to install vending machines that willdispense food, beverages, and goods for freeduring power failures caused by disasters.

Training session on AED operation


Social Report With Employees

the Company. Toppan will continue itsendeavors to maintain employee healthand support the recovery of employeeswho are forced to take leave for reasonsof health.

Supporting Work-Life BalanceEfforts to Shorten Total Working HoursExcessive overtime is a longstandingissue for Toppan. Labor and manage-ment have jointly examined the actualovertime practices at each operationalsite and responded with measures tocontrol the numbers of hours worked.For the time being, however, the char-acteristics of the printing industry stillstand in the way of fundamental solu-tions. In October 2008, Toppan launcheda Company-wide effort to eradicateextended overtime work as a top-prior-ity issue for compliance with labor-related laws and regulations, the supportfor work-life balance, and the mainte-nance of employee health above all.

Senior management seeks to bringToppan closer to its ultimate goal oferadicating extended overtime by collab-orating with managers and employees

Measures for MentalHealthcare

The number of patients with mental ill-nesses in Japan has been increasingyear by year. The maintenance andenhancement of the mental health ofemployees have become importantissues for Toppan.

The Company has been enrichingmeasures to cope with this issue withan emphasis on prevention and earlydetection. Various mental healthcaretraining sessions have been arrangedand a person has been appointed ateach operational site to take charge ofmental health enhancement.

Toppan considers its work to main-tain employee health—a vital compo-nent of its corporate activities—as acommon task to be shared by labor andmanagement. These two parts of theCompany exchange their frank views onmental healthcare measures on arepeated basis through channels suchas the business councils, the commit-tees formed to help create a workingenvironment amenable to enhanced jobsatisfaction, and the special committees

formed to promote mental healthcare.Since October 2008, several rules havebeen appended to the employment reg-ulations to help the Company provide aworking environment to which employ-ees can more readily return afterextended periods of mental healthcareleave. These rules include a clear set ofcriteria for deciding when an employeeshould return to work, measures to pre-vent the recurrence of leave, and pro-grams to support employees once theyreturn to work. Toppan has enhancedits mechanisms to prevent and promptlyprovide care for mental problems byholding mental health checkups andintroducing new programs, including anart session for employees to refresh theirminds and bodies through art. TheCompany has also concluded advisoryagreements with medical specialists inthe regions in which it operates tosecure a ready source of advice andinstruction from professional viewpoints.

A workforce of employees healthy inmind and body with thriving potentialand skills to contribute to the mastheadis essential for the development of

Overview of Mental Healthcare System

PrimaryPrevention:

Proactive measure

SecondaryPrevention:

Early detection

MedicalTreatment:

Early cure

Steps to PreventRecurrence:

Support for returningemployees (fresh starts)

Regular mental health checkups,including stress checks

Contracts with mental healthcare specialists

Introduction of programs to support employeesreturning from mental healthcare leave

Cooperation with medical and counseling institutions outside Toppan

Permanent installation of an art session for employees

•A clear set of criteriafor deciding whenan employee onleave should return

•A new rule for preventing the recurrence of mental healthcare leave

Appointment and deployment of a person to take charge of mental health enhancement at each operational site

Mental health training

IRank-based training

IIncorporated in optional (group) training

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

Steps to allay anxiety after resignationFinancial assistance from the Toppan Group Fraternal Benefit Society and like sources for fixed periods after resignation

*1 Average ratio = average paid holidays used /average paid holidays granted

Annual Paid Holidays Used

Fiscal 2006

Fiscal 2007

Fiscal 2008

7.8

7.7

8.1

Average PaidHolidays Used

41.2%

41.4%

43.5%

Average Ratio*1

*2 The number of male employees who tookchildcare leave is shown in parentheses.

Employees Taking Maternity or Childcare Leave

Fiscal 2006

Fiscal 2007

Fiscal 2008

40

37

42

EmployeesTaking Maternity

Leave58 (1)

63 (2)

74 (2)

EmployeesTaking Childcare

Leave*2

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in implementing measures to improveoperating effectiveness by reviewing theways individuals work and the waysmanagement administrates, equalizeovertime hours by adjusting operationswithin the departments, and introducenew working systems such as flex-timeand off-hour working schedules on a trial basis.

As a result of these measures, thenumber of employees who worked longhours due to extra work on holidays andextended overtime late into the nightwas reduced by about 90% over the six-month period from October 2008 toMarch 2009, compared with the sameperiod a year earlier. The average hoursof overtime worked decreased byaround 20%.

Fundamental solutions to excessiveovertime will require constant andceaseless attention. Toppan will tacklethe issue with its full energies over theyears to come.

Efforts to Foster the Next GenerationIn addition to making efforts to shortentotal working hours, Toppan has striven

for years to create a working environ-ment in which employees can achievebetter work-life balance. It does so byproviding systems for childcare andnursing care leave, for reduced workinghours, and for a higher family allowancefor dependents.

A rehiring system for employees whoresign from the Company to deliver andbring up children has been establishedsince fiscal 2006. Now, in the third yearof system operation, 12 resigning employ-ees have registered for future rehiring. Thecoverage of the system for reduced work-ing hours for employees who need to carefor a child has also been extended. Aschedule reduction of up to two hours aday was originally offered to a parent untilhis or her child reached the age of three;now it is available until the child com-pletes the third year of elementary school.A staggered work-hour system for chil-drearing has been put in place duringfiscal 2008. In fiscal 2009, Toppan intro-duced another institutional improvementby granting staggered work-hours forexpectant mothers to help them avoidrush-hour commutes.

Toppan will continue to implementvarious measures to provide employeeswith working environments for betterwork-life balance.

Labor-Management PartnershipIn keeping with the perception that laborand management are partners in sharedideals, the Company management andthe labor union trust and respect eachother’s positions. The two parties work onvarious issues together on an equal footingand hold events of different sorts, includ-ing recreational activities for employees.

Business councils are convened asforums on Company-wide and opera-tional site bases to discuss wide-rang-ing managerial issues. Committees todeliberate individual issues are also con-vened, including standing committeesto discuss working hour reductions,wages, welfare, and safety and health,and special committees to tackle topi-cal issues facing the Company.

Toppan has introduced a union shopsystem. In principle, all non-managerialemployees are members of the laborunion.

Stock Leave

Childcare Leave

Rehiring of Employees whoLeave the Company to Raise Children

Nursing Care Leave

Healthcare Leave

Volunteer Leave

Staggered Work-hours

Dependent Family Allowance

Partial Subsidization ofBabysitter Expenses

Other Systems

Main Holiday and Leave Systems / Measures to Support Work-Life Balance and Foster the Next GenerationEmployees can accumulate up to 50 days of annual paid leave (exercisable within two years from the date they are granted).Employees are eligible to use their stock leave when they or their dependents require treatment or nursing, or for recoveryfrom unexpected disasters.

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

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

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

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

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

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

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

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

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



Leveraging Diverse Human Assets

Leveraging Female TalentMore Shrewdly

Toppan has promoted positive action toleverage female talent for creating newvalue. To better respond to customerand social needs, the Company mustdevelop new products and services fromfeminine perspectives.

Toppan proactively appoints femaleemployees to managerial and supervi-sory positions. Those efforts haveincreased the number of female man-agerial and supervisory staff to 140, orto 3.31% of the total number of man-agers and supervisors (as of April 1,2009). This trend is an encouragementfor female employees and tends to acti-vate energy in the workplace overall. Inparallel with its vigorous attempts to pro-mote managerial advancement forwomen, Toppan has upgraded andexpanded various systems to createworking environments in which femaleemployees can take full advantage oftheir capacities at work as business-women and at home as mothers. TheCompany will maintain its efforts to buildworkplace environments in which femaleemployees can contribute more ener-getically and freely.

Supporting Second CareersTo support second careers in companylife, Toppan offers diverse options forsecond-career employees by develop-ing suitable work categories. The Com-pany builds up a structure to use theknowledge, experience, techniques, andskills that employees acquire throughlong years of work.

Toppan operates a Senior Reemploy-ment System to offer retired employeesextended tenure at the Company on apost-retirement basis until they reach theage of 65. Eighty-six of 144 employeeswho retired in fiscal 2008 were reem-ployed in the same year and now remainwith the Company.

Ongoing Success in theEmployment of Persons with Disabilities

In 1993, Toppan founded Tokyo Metro-politan Government (T.M.G.) PrepressToppan Co., Ltd., a special subsidiarythat employs persons with disabilities.Since then, Toppan’s ongoing measuresto promote the hiring of persons withdisabilities have been handled mainly via this company. As of June 1, 2009,persons with disabilities accounted

for 1.90% of the total workforce atToppan.

Providing an OpenEnvironment for Recruitment

Toppan offers various employmentopportunities for persons of both gen-ders and persons of many nationalities,ages, and levels of physical ability.Recruitment takes mainly two forms: hir-ing of new graduates from universitiesand high schools every April, and mid-career hiring of experienced personnelyear round.

Prior to recruitment screening, Toppandetermines the forms of talent it actuallyrequires based on the results ofemployee consciousness surveys and areview of the behavioral characteristicsof outstanding achievers and perform-ers. In screening candidate recruits, theCompany tries to estimate if their com-petencies and potentialities are suitable.Recruitment screenings are conductedin seven venues in Japan to provide amore open environment for hiring. TheCompany has also run various intern-ship programs to boost student aware-ness about work, including practicaltraining sessions, lectures, workshops,

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

T.M.G. Prepress Toppan Co., Ltd.

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

*1 Diversity: “Diversity is a ‘strategy of utilizing avariety of human resources.’ Avoiding the hith-erto established standards within firms andsociety and taking into consideration the val-ues and concepts of various attributes (gen-der, age, nationalities, etc.), this is a strategywhich responds to the changes in businessenvironment in a rapid and smooth mannerto achieve firm growth and individual happi-ness.” (Regression to the Origin—The Direc-tions of Diversity Management from JapanFederation of Employers’ Associations: May2002)

Employees with Disabilities

2007

2008

2009

146

151

160

Employees

1.84%

1.83%

1.90%

Percentage of TotalWorkforce*2

Female Managerial and Supervisory Staff

■Female supervisory staff■Female managerial staff

(Staff) (As of April)150

120

90

60

30

0

87

20072006

112112

7291

15 21

136

110

26

2008

140

110

30

2009

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With

Em

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Leveraging Diverse Human Assets

Maintaining EmploymentEven within the severe business envi-ronment of fiscal 2008, Toppan has con-tinued its efforts to maintain employmentand leverage human assets through per-sonnel relocation, work-sharing, andother work arrangements for both regu-lar and non-regular employees. Believingthat “a company is its people,” Toppanwill never cease its extensive work toactivate human assets.

Properly Leveraging Non-regular Employees

Part-time workers, temporary staff, con-tract workers, and various other cate-gories of non-regular employee engagein operations for Toppan. Wheneverneeded, the Company verifies whetherindividual contract details and relatedlaws and regulations are faithfullyobserved in their employment. It alsoappoints non-regular staff to regularpositions, depending on their compe-tence and willingness. Seventeen per-sons became regular employees underToppan’s system for the hiring of expe-rienced personnel in fiscal 2008.

mitting voluntarily reports, they have theopportunity to exchange opinions withsuperiors in interview settings and per-sonally make comments and requestswith regard to Company-wide affairs andtheir own career plans.

Internal Venture SystemThe Internal Venture System was estab-lished in January 2001 to discoverhuman assets abounding in entrepre-neurial spirit, cultivate a problem-solv-ing, can-do mindset in employees, andcreate next-generation businesses. Fifty-six projects have been proposed underthe system so far. This has led to thefounding of one company (Toppan Char-acter Production Co., Ltd.), the initiationof two in-house businesses, and theadoption of one proposal into a com-pany project. The in-house awards tocommend projects with excellent out-comes enhance employee motivationand increase the likelihood that the pro-jects awarded will be able to continuetheir businesses in the future.

and online training courses. A cumula-tive total of 1,244 interns have partici-pated in these programs during fiscal2008.

Toppan hired 61 experienced person-nel in fiscal 2008. These persons cometo the Company with a rich variety ofexperience and skills suitable for the pur-suit of Toppan’s business strategies.

Systems for Self-determinationon the Career Path

Toppan is establishing an ideal workingenvironment for employees who areeager to create their own careers. TheCompany offers employees variousopportunities to take on new challengesthrough the Challenging Job System, in-house staff recruitment system, andoverseas study support system.

In the Challenging Job System,employees consider their own medium-to-long-term career aspirations, developskill-enhancement plans, and cultivatea problem-solving, can-do mindset.Employees voluntarily report their ownwork experiences, official qualifications,language abilities, and the names of thedepartments and divisions to which theywould like to be transferred. Before sub-

Joint Company Orientation Sessionfor the Toppan Group

The Toppan Group organized a joint com-pany orientation session to give students theopportunity to understand the integratedstrength of the Group. A cumulative total of350 students participated. Each of the nineGroup companies that took part in the ses-sion presented participants with a descrip-tion of its business and its attractive points.The sessions awakened the interest of thestudents and convinced many of them toapply for recruitment screening at these com-panies.

Internship

Toppan’s internship program provides stu-dents with opportunities to experience workas it really is. Participants gain insight intowork at Toppan through lectures on market-ing theory and printing techniques, as wellas experience in planning. The program alsogives interns the chance to actually experi-ence a day’s work by accompanying staff inthe sales and planning departments. Wheninterns complete the program, they leave witha palpable understanding of the work expe-rience at Toppan.

TOPPAN CAFÉ

The TOPPAN CAFÉ is not a company orien-tation session per se. It can be betterdescribed as a series of roundtable meet-ings where students meet with Toppanemployees to discuss and share their con-cerns and difficulties as job hunters. The pur-pose is to ease the common anxieties andtroubles of newcomers to the labor market.Some 412 students took part in the meet-ings in fiscal 2008.



Developing and Fostering Human Assets

Concept of Human AssetDevelopment and Fosterage

Toppan’s rank-based training helpsemployees understand the roles andresponsibilities of each rank and appre-ciate and practice conduct of high value.The Company offers a wide variety oftraining programs systematically toencourage employees to acquire theabilities and skills required by each divi-sion, department, and workplace. Inrank- and department-based trainingsessions, employees draw up the cur-ricula and act as facilitators or trainersto lead and train others in styles closelyattuned to actual business situations.

Toppan also places emphasis on train-ing to activate communications betweensuperiors and subordinates, betweensenior associates and new employees,and so on. The curriculum for the rank-based training is designed to equiptrainees with skills in asserting themselvesand facilitating and coaching others, asrequired for their ranks. Various other lec-tures are scheduled in the optional train-ing sessions.

Organizing Rank-based Training andSupporting Self-developmentA cumulative total of 3,000 employees

participated in rank-based training ses-sions sponsored by the head office infiscal 2008. The head office welcomesemployees of related companies to thesessions. In department-based training,the relevant divisions of the head officeplan out curricula to resolve the prob-lems faced by each department. Thedivisional training sessions equip employ-ees with practical skills essential forperforming tasks.

The Toppan Business School, mean-while, offered self-development trainingto a cumulative total of 10,900 employ-ees in fiscal 2008. The programs at theschool are customizable to employeecareer designs with optional (group)courses, the Challenge School (corre-spondence learning courses), and thevideo library. The video collection at thelibrary is useful for holding small groupactivities on themes at specific work-places. A total of 352 videos were lentout in fiscal 2008.

Human resource development lead-ers from the departments gather at reg-ular meetings to maximize the effectsof training by sharing information on thecontent and purposes of the trainingsessions organized by the depart-ments.

Organizing E-learning-basedPrograms and Specialist TrainingToppan offers e-learning-based educa-tional programs on CSR activity promo-tion, personal information protection,introductory information on sales opera-tions, and TOPPAN VISION 21. Thecourse on CSR activity promotion hasbeen conducted as a part of Toppan’srank-based training.

The Company also encourages per-sonnel in the design, prepress, and sales departments to acquire certifica-tions by enrolling in preparatory coursesfor DTP experts certified by the JapanAssociation of Graphic Arts Technology(JAGAT) and for Promotional Marketerscertified by the Japan POP PromotionInstitute Inc. Some 174 employeesacquired the DTP expert certification infiscal 2008.

Coordinating Development andFosterageToppan develops personnel rotation topromote individual career advancementand organizational strength enhance-ment. Every employee must be capableof handling a wide range of operationsto fulfill the two Company-wide prioritythemes: integrated strength enhance-

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

INew division manager trainingINew department manager trainingINew manager trainingINew supervisor training

INew employee Company-wide training

IEarly career planningIOJT brother/sister training

ISelected training for section managers in sales departments

ISelected training for mid-level staff in sales departments

ITraining for new section managers in technology and manufacturing departments

ITraining for employees in production management departments

ITraining for new supervisors in technology departments

IIndividual department-based training (Purchasing, Secretary, Personnel & Labor Relations, Technology & Research, and other divisions)

Rank-based Training Department-based Training

Training to Meet Special Needs

Earning the trustof customers

Strengthening businessfoundations

Fulfilling corporate socialresponsibility

“Conduct of High Value” Based on Corporate Philosophy and Corporate CreedStrengtheningorganization Improving corporate value

Knowledge andinformation skills

Ability to identify andformulate tasks

Ability to accomplishtasks

“Abilities and Skills” for “Conduct of High Value”Techniques and

know-howCommunication and

training skills

Selective Training Toppan Business School Training by the Divisions

ITraining for experienced personnel hired through mid-career recruitment

IShort-term overseas studyIIT training in IndiaIGlobalization trainingIForeign language training

IExecutive business schoolITraining to nurture industry-leading

talent

IOptional trainingIChallenge SchoolIVideo library

ITraining in each division and at each workplace

Toppan’s Human Asset Development Program

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Developing and Fostering Human AssetsW

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

Assigning and Fostering NewEmployeesEmployees hired mainly through regularrecruitment are interviewed on at leastthree occasions before assignment: attheir recruitment, during orientation justafter they enter the Company, and shortlyafter they are assigned. At each interviewthey have the opportunity to express theirwishes for posting and to confer with theirsupervisors on the divisions most suit-able for their career plans. Employeesalso have the chance to meet with super-visors one year after assignment to dis-cuss whether they are well positioned intheir current workplaces. After this inter-view, the Company formally determinesthe division or department to which theemployee should be assigned.

Toppan regards the first three yearsafter recruitment as the fosterage periodfor new employees and establishes anearly career planning system to help newemployees achieve individually affirmedcareer ideals. A senior associate in theemployee’s workplace is appointed as a“Brother” or “Sister” responsible fortraining and fostering new employeesmainly through on-the-job training (OJT).The employee, the employee’s immedi-ate superior, and the Brother or Sisterprepare an action plan “design sheet forability and skill development” and regu-larly check the employee’s accomplish-ments. The training sessions for Brothersand Sisters—trainers of new employ-ees—are also held across the Companyto improve the level of the fosteragesystem.

People-to-People Exchange with theOverseas SubsidiariesToppan temporarily assigns employees toposts in overseas Group companies as ameans of promoting people-to-peopleexchange among Group companies. TheCompany also accepts employees fromoverseas Group companies as traineesthrough its education and skill training sys-tems. Nine personnel from Siam ToppanPackaging Co., Ltd. in Thailand receivededucation and skill training in fiscal 2008.

Fostering Human Assets Active inGlobal BusinessesToppan highly values its system to sup-port overseas study for the fosterage ofhuman assets who can play active rolesin global businesses. Employees havethe opportunity to participate in the fol-lowing specialist training programs: theMBA abroad program to foster expertsin business management, the studyabroad program for engineers to fostertechnical human assets and build over-seas networks, IT training in India for in-house IT specialists, and the supportsystem for short-term overseas trainingto foster human assets in the sales andplanning departments.

Toppan’s globalization training is a setof individualized courses to help candi-dates for overseas assignments andemployees from departments involvedin overseas businesses acquire basicskills for working internationally (such ascross-cultural communication, propos-ing and presenting in other languages,facilitating and managing conferences,and negotiating and persuading over-seas businesspeople). All of the 130employees who have participated sincethe launch of the training in 1996 haveworked in overseas Group companiesor departments involved in overseasbusinesses.

Results in Human Asset Development

*2 The usage rate is calculated by dividing thenumber of days it was actually used (includ-ing use by subsidiaries and affiliated compa-nies) by the number of days the facility wasavailable.

*1 Only includes rotations among different divisionsto develop human assets for integrated strengthenhancement and Total Quality Assurance.

Fiscal 2006

Fiscal 2007

Fiscal 2008

37,900 yen

41,300 yen

35,325 yen

Funds Spenton Training per

Employee51.5%

66.4%

59.2%

Usage Rate ofToppan Training

Center*2

Personnel Rotation*1

Fiscal 2006

Fiscal 2007

Fiscal 2008

301

595

556

EmployeesTransferred

2.8%

5.3%

4.8%

Percentage ofTotal Workforce

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

Hired on April 1, 2006Still with Toppan as of April 1, 2009Retention rateAverage totals for males and femalesPercentage who leave the Companybefore working three years

500

440

88%

Male

113

102

90%

Female

Trainees from Siam Toppan Packaging receivingeducation and skill training

Globalization training

88%

12%


Social Report With Shareholders and Investors

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

Increasing the Transparencyof Management Activities

Adhering to its investor relations (IR)motto of fair and open disclosure ofmanagement activities, Toppan thor-oughly discloses information throughvarious communication tools for eachstakeholder (➞P. 18).

Disclosing IR InformationUnder the in-house Basic Policy on IR,Toppan has built an exclusive IR web-site to ensure fairness, transparency,and promptness in its disclosure of IRinformation. Toppan has been announc-ing its financial results quarterly via theCompany’s website and Toppan Story,a newsletter for shareholders. Publicmeetings with top management havealso been held to explain the Company’ssecond-quarter and full-year results. Alldocuments distributed at these meet-ings are posted on the Company’s IRwebsite.

The Company will also allocate retainedfunds to increase investment efficiencyfrom a long-term perspective.

Toppan believes that its policy onprofit distribution will help to enhance itscorporate structure and increase futureprofitability, and thereby enable theCompany to return profits to its share-holders.

The annual dividend per share at theend of fiscal 2008 was 22.00 yen.

Meeting of ShareholdersA total of 233 shareholders participatedin the ordinary general meeting held inJune 2009. Toppan has established asystem that allows shareholders whochoose not to attend the meeting toexercise their voting rights online or inwriting.

Stock Ownership andShareholder Profile

As of the end of March 2009, the totalnumber of outstanding common stockwas 699,412,481 shares and the totalnumber of shareholders was 44,547.Financial institutions, individual investors,foreign companies, and other companiesmake up 41.46%, 24.89%, 18.18%, and14.47% of the shareholders, respec-tively. The principal shareholders arelisted below.

Dividend PolicyToppan seeks to improve its dividendpayout with a consolidated dividendpayout ratio of 30% or more as a guidebased on comprehensive considerationof the consolidated financial perfor-mance of each fiscal year, the dividendpayout ratio, and internal reserves.Through this approach, it strives to pro-vide stable profit returns to its valuedshareholders and realize sustainablegrowth of the Company.

Sufficient reserves will be allotted tocapital investment and research anddevelopment for expanding businessfields with growth potential, with theobjective of enhancing corporate value.

Basic Policy on IR

1. Information Disclosure StandardsToppan discloses all information requiredunder the Rules on Timely Disclosure estab-lished by the Tokyo Stock Exchange. It alsouses its website in a positive and fair mannerto disclose useful information not required bythe rules, in order to help shareholders andinvestors fully understand the Company.2. Information Disclosure MethodsInformation applicable to the Rules on TimelyDisclosure is disclosed on the Timely Disclo-sure network (TDnet) provided by TokyoStock Exchange under the rules. Informationdisclosed on TDnet is posted on the Com-pany’s website as soon as possible.

The Company’s website does not includeall of the information disclosed by theCompany and may include expressions dif-ferent from the expressions used in othersources.

Financial instruments firms (securities companies)6,977,4231.00%

The Master Trust Bank of Japan, Ltd. (Trust Account)Japan Trustee Services Bank, Ltd. (Trust Account)Nippon Life Insurance CompanyJapan Trustee Services Bank, Ltd. (Trust Account 4G)NATS CUMCOThe Dai-ichi Mutual Life Insurance CompanyThe Bank of Tokyo-Mitsubishi UFJSumitomo Mitsui Banking CorporationEmployees’ Stock ClubKodansha Ltd.

38,30933,02532,64831,88425,44522,88615,62815,62814,01213,077

5.484.724.674.563.643.272.232.232.001.87

Principal ShareholdersNumber of Shares Held

(1,000 shares)Percentage of Total Number

of Shares Issued (%)

Foreign companies127,133,746

18.18%

Othercompanies

101,232,42814.47%

Financial institutions290,001,82141.46%

Individual investors174,067,063

24.89%

Total699,412,481

shares

By Type ofShareholder

Total699,412,481

shares

By Number ofShares Held

Less than 1,000 shares2,156,9710.31%

1,000 shares or more69,815,837

9.98%10,000 shares or more

28,946,6694.14%

1,000,000 shares or more490,156,57870.08%

50,000 sharesor more

11,892,4911.70%

100,000 sharesor more

96,443,93513.79%

Stock Ownership Profile

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


Overview of Environmental Activities

Toppan’s Environmental Activities 52

Review of Fiscal 2008 Results and Future Targets

Environmental Targets and Results for Fiscal 2008 54

Environmental Investment and Conservation Benefit 57

Environmental Management

Environmental Management Structure 58

Environmental Management Activities 60

Environmental Communication Activities 62

Environmental Conservation Activities

Mitigating Global Warming and Saving Energy 64

Resource Circulation 65

Pollution Prevention and Chemical Substance Management and Reduction 66

Approach to Logistics 67

Environmentally Friendly Products and Environment-related Business

Developing and Assessing Environmentally Friendly Products 68

Environmentally Friendly Printing Services 70

Conserving Biodiversity

Conserving Biodiversity 71

Environmental Data

Environmental Data 72


Environmental Report Overview of Environmental Activities

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

The Toppan Group Declaration on the Global Environment

As responsible members of international society, we who work within the Toppan Group strive to realize a sustainable society through forward looking corporate activities with consideration for the conservation of the global environment.

Basic Principles 1. We observe all laws, regulations and in-company rules relating to the

environment. 2. For the future of the Earth, we strive for the effective utilization of lim-

ited resources and the reduction of all types of environmental burden. 3. With foresight, we promote the development and widespread use of

products that show consideration for the environment, and contributeto the environmental activities of customers.

4. We engage in communication related to the environment with a widerange of peoples both inside and outside the company, and strive formutual understanding.

5. We also take a proactive approach to environmental conservation incorporate activities in international society.

Established in April 1992Revised in April 2009

Boundaries of Environmental Performance Data and Environmental Accounting

IFirst, Toppan selected subsidiaries that share important roles in theenvironmental conservation activities of Toppan Printing Co., Ltd. andthe Toppan Group, from among the Group entities consolidated foraccounting purposes. Next, the Company decided which of thesubsidiaries selected were to be included within the boundary, basedon the autonomy and independency of their environmental activities.Toppan Forms Co., Ltd., Toppan TDK Label Co., Ltd., ToppanLogistics Co., Ltd., Tamapoly Co., Ltd., Tokyo MetropolitanGovernment (T.M.G.) Prepress Toppan Co., Ltd., Tokyo Shoseki Co.,Ltd., Tosho Printing Co., Ltd., Hino Offset Printing Co., Ltd., andoverseas subsidiaries are not included, in principle. The entitiescovered differ, however, for the following types of data.

IP. 57 Capital Investment for Environmental Conservation, Environ-mental Conservation Benefit ➞ Entities covered: All domestic andoverseas subsidiaries with important roles in the environmentalconservation activities of the Toppan Group

IP. 67 Approach to Logistics ➞ Entity covered: Toppan Logistics Co., Ltd.IP. 69 Entities covered: Toppan Printing Co., Ltd., Toppan Forms Co.,

Ltd., Toppan TDK Label Co., Ltd., Tamapoly Co., Ltd., Tokyo ShosekiCo., Ltd., Tosho Printing Co., Ltd., Toppan Cosmo, Inc., and froebel-kan co., ltd.

IP. 72 Environmental INPUT/OUTPUT Data by Business Field ➞ Entitiescovered (other than material data): All domestic and overseas Groupcompanies with important roles in the environmental conservationactivities of the Toppan Group

The Toppan Group Declarationon the Global Environment

With the growing awareness of environ-mental conservation throughout theworld in the 1990s, the scope ofenvironmental issues to be tackled bycompanies grew significantly. Toppanreorganized its previous structure forenvironmental conservation by estab-lishing the Ecology Center in 1991 andpromulgating Toppan’s Declaration onthe Global Environment, a basic philos-ophy for environmental conservationactivities, in 1992. The Company haspromoted environmental conservationinitiatives ever since.

In April 2009, Toppan took an impor-tant step to help realize a sustainableworld in which every form of life cancoexist into the future by revisingToppan’s Declaration on the GlobalEnvironment into The Toppan GroupDeclaration on the Global Environment,a new basic philosophy for environmen-tal activities for the entire Group. Therevised declaration reflects Toppan’smore assertive approach to the preser-vation of the global environment.

Overview of EnvironmentalActivities

Toppan’s environmental activities aredivided into four main areas, all centeredaround The Toppan Group Declarationon the Global Environment, Toppan’sbasic environmental philosophy.

First are the environmental manage-ment activities for systematically man-aging environmental initiatives such asthe construction of the environmentalmanagement system (EMS). Second arethe Eco-protection Activities to reducethe environmental burden associatedwith corporate activities as much aspossible. Third are the Eco-creativityActivities to proactively promote thedevelopment, assessment, and sales ofenvironmentally friendly products andtechnical services. Fourth are the envi-ronmental communication activities forsharing awareness of environmentalconservation with stakeholders throughdialogue with local communities andeducational programs inside and out-side the Group.

Environmental Burden andEnvironmental Impact

The first step in reducing environmentalburden is to ascertain the environmentalimpact of the Company’s overall busi-ness activities. Toppan aggregates dataon the balance of materials at each pro-duction site based on INPUT (materialsand energy used)/OUTPUT (materialsdischarged as a result of production)and then assesses the impacts of sitesfrom various environmental standpoints.The Company establishes environmen-tal targets based on the results of theseassessments to clarify the priorities andverify the results of its environmentalactivities.

As a company engaged in diversebusiness fields, Toppan imposes envi-ronmental impacts in various forms. Toevaluate the extent and variation of itsenvironmental burden rationally, theCompany aggregates and ascertains itsenvironmental data independently in itsthree main business fields: Information& Networks, Living Environment, andElectronics (➞P. 53).

Toppan’s Environmental ActivitiesE

nvironm

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Overview

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Enviro

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Major Environmental Burdens in the Business Fields (INPUT/OUTPUT data)

IPapers used in Information & Networks and Living Environment account for 86% of material input and 73% of total waste generation, while water consump-tion and effluent discharge in Electronics account for 73% and 79%, respectively.

ITwo types of waste are covered in this report: industrial waste of no value, and materials of value sold or transferred as resources. Both types are generatedby or connected with business activities.

ITotal waste generation in Electronics exceeds material input due to the inclusion of waste liquid (waste acid and alkali).ITotal energy consumption, i.e., the quantity of electricity and fuels consumed, is about the same in each business field.

Note: The calorific value of the primary energy input associated with electricity consumption is calculated uniformly as 0.00983 GJ/kWh. Some of the materialinputs are calculated from estimated values based on production values.

INPUT

Material Input (➞P. 72)

Information & Networks Living Environment Electronics

Electronics25,785 (2%)

Total 1,756,707 (Unit: tons)

Information & Networks1,254,972 (71%)

Living Environment475,950 (27%)

Non-production sites0 (0%)

Total Energy Consumption (➞P. 64)


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

Information & Networks4,889 (29%)



Total Water Consumption (➞P. 72)


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




Total PRTR Handling (➞P. 66)


Total 6,035 (Unit: tons)




OUTPUT

Total Waste Generation (➞P. 65)


Total 313,752 (Unit: tons)



Non-production sites2,052 (1%)

CO2 Emissions (➞P. 64)


Total 751,360 (Unit: t-CO2)



Non-production sites30,337 (4%)

Total Effluent Discharge (➞P. 72)


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

Information & Networks761 (6%)



Total PRTR Release (➞P. 66)

Electronics55 (14%)

Total 408 (Unit: tons)

Information & Networks123 (30%)

Living Environment230 (56%)



Environmental Report Review of Fiscal 2008 Results and Future Targets

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

1. Mitigation of global warming through the development of energy-saving measures

2. Promotion of waste reduction and recycling

3. Prevention of atmospheric pollution via VOC emission restraints

4. Control of risks from chemicals

5. Environmental contribution via the development and marketing of ecoproducts

6. Promotion of environmental communication

7. Avoidance of environmental risk

8. Enhancement of environmental education and the environmentalawareness of all employees

9. Upgrading of environmental management systems at our overseasproduction sites

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

Reduce waste generation per unit of production value by 25% by fiscal 2010(compared to the fiscal 2000 level)

Expand the material recycling of waste

Reduce final landfill waste disposal*1 by 95% by fiscal 2010 (compared to thefiscal 2000 level)

Efficiently use the industrial waste materials generated in the manufacturing stageand have all domestic sites certified as zero-emission sites*2 by fiscal 2010

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

Reduce the handling of chemical substances designated under the PRTR law

Promote the sales of environmentally friendly products

Reinforce efforts to develop, manufacture, and assess environmentally friendlyproducts

—

Establish and observe appropriate in-house management guidelines that embraceregulatory controls

Reduce the risk of soil contamination

Maintain adequate communication with stakeholders

—

—

Setting EnvironmentalTargets

Toppan specifies environmental objec-tives for the realization of the goals ofthe Declaration on the Global Environ-ment, the basic philosophy governingToppan’s overall environmental activitiesin every business field. The Medium- andLong-term Environmental Targets andconcrete targets for every current fiscalyear are set under the individual envi-ronmental objectives to clarify the activ-ities to be taken and the criteria forassessing achievements. Based on the

objectives and targets, Toppan pro-motes environmental activities with par-ticipation from every employee.

The Company reviews its environ-mental activities once every fiscal year(ending March 31). Based on the evalu-ation of achievements towards the envi-ronmental targets for the current fiscalyear, the Medium- and Long-term Envi-ronmental Targets are reviewed andthe targets for the following fiscal yearare set.

Evaluating Progress towardsthe Environmental Targets

In fiscal 2008, Toppan undertook vari-ous activities to achieve the 16 environ-mental targets set for the year. Elevenof the targets were reached and fivewere not.

The Company has succeeded inachieving its annual targets for animproved material recycling rate, anexpanded number of certified zero-emis-sion sites, and reduced handling ofchemical substances designated underthe PRTR law.

Environmental Targets and Results for Fiscal 2008Environmental Objectives Medium- and Long-term Environmental Targets

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

Environmental Targets and Results for Fiscal 2008E

nvironm

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ort

Review

of

Fiscal2008

Results

andF

utureT

argets


However, Toppan fell short of achiev-ing its targeted reductions of CO2 emis-sions per unit of sales, waste generationper unit of production value, final landfillwaste disposal, and VOC emissions intothe atmosphere. Among the obstaclesto target achievement, the most signifi-cant was Toppan’s decreased produc-tion volume in the second-half of thefiscal year.

Reviewing EnvironmentalTargets

Toppan established environmental tar-gets for fiscal 2009 based on evalua-tions of the progress towards theachievement of the targets set for fiscal 2008 (➞P. 56). In fiscal 2009, theCompany is planning out environmentalactivities towards the same number oftargets in fiscal 2008: 15 medium- andlong-term targets and 16 targets for thecurrent fiscal year.

The Company intends to continue tohelp mitigate global warming through the

development of energy-saving mea-sures, to further reduce its environmen-tal burden through the promotion ofwaste reduction and recycling, and tocontrol risks from chemicals throughthe prevention of atmospheric pollutionvia VOC emission restraints and thereduced handling of chemical sub-stances designated under the PRTR law.

Toppan will carefully consider settingnew targets beyond fiscal 2011 in tunewith the environmental trends in industry.

Environmental Targets for Fiscal 2008 Results and Status for Fiscal 2008 Evaluation For Details

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

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

Material recycling rate: 92%*4

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

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

VOC emissions into the atmosphere: Reduce by 10% com-pared to the fiscal 2007 level

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

•Review the criteria for environmentally friendly products•Maintain sales at the fiscal 2007 level

•Promote FSC certification•Apply LCI in conjunction with the Packaging Division

Provide information through exhibitions, lectures, and otherpresentations

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

Monitor the operational sites, including the vacant lots ofreconditioned sites

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

•Conduct new employee education•Review environmental education materials

Conduct internal environmental audits at overseas productionsites: Eastern Asia

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

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

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

Material recycling rate: 93%*4

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

Expand the number of certified zero-emission sites: Increased to43 sites (out of 58 domestic sites in total)

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

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

•Reviewed to revise Toppan’s 14 Environmental Points and reset the life cycle stages

•Increased sales in environment-related business year over year

•Examined the management system for production processes at the Hokkaido Division to prepare for FSC certification at the site

•Carried out LC-CO2 assessment on the Cartocan

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

Assessed the observance of in-house management guidelines at58 domestic sites through internal environmental audits

Monitored the sites on an ongoing basis

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

•Conducted environmental education via Company-wide training•Reviewed and revised the content of e-learning-based programs

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

Periodically reported data on environment-related issues viamonthly overseas site reports

B

B

A

B

A

B

S

A

B

A

A

A

A

A

A

A

P. 64

P. 65

P. 66

P. 68

PP. 62–63

P. 60

P. 61

P. 63

P. 61

P. 62

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


Environmental Report Review of Fiscal 2008 Results and Future Targets

Details on Specific MeasuresEnvironmental Targets for Fiscal 2009

Environmental Objectives and Medium-and Long-term Environmental Targets

1. Mitigation of global warming through the development of energy-saving measures

2. Promotion of waste reduction and recycling

3. Prevention of atmospheric pollution via VOC emission restraints

4. Control of risks from chemicals

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

7. Avoidance of environmental risk

Reduce CO2 emissions per unit of sales by10% by fiscal 2010 (compared to the fiscal2000 level)

•Reduce waste generation per unit ofproduction value by 25% by fiscal 2010(compared to the fiscal 2000 level)

Expand the material recycling of waste

Reduce final landfill waste disposal*1 by95% by fiscal 2010 (compared to the fiscal2000 level)Efficiently use the industrial waste materialsgenerated in the manufacturing stage andhave all domestic sites certified as zero-emission sites*2 by fiscal 2010

Reduce VOC emissions into theatmosphere by 70%*3 by fiscal 2010(compared to the fiscal 2000 level)

Reduce the handling of chemicalsubstances designated under the PRTRlaw

Promote the sales of environmentallyfriendly products

Reinforce efforts to develop, manufacture,and assess environmentally friendlyproducts

6. Promotion of environmentalcommunication

Establish and observe appropriate in-house management guidelines thatembrace regulatory controlsReduce the risk of soil contamination

Maintain adequate communication withstakeholders

8. Enhancement of environmentaleducation and the environmentalawareness of all employees

9. Upgrading of environmentalmanagement systems at ouroverseas production sites

Environmental Targets for Fiscal 2009

CO2 emissions per unit of sales:Reduce by 5% compared to the fiscal2008 level

Waste generation per unit ofproduction value: Reduce by 5%compared to the fiscal 2008 levelMaterial recycling rate: 94%

Final landfill waste disposal: Reduceby 15% compared to the fiscal 2008levelExpand the number of certified zero-emission sites: To 45 sites (out of 56domestic sites in total)

VOC emissions into the atmosphere:Reduce by 10% compared to thefiscal 2008 level

Handling of chemical substancesdesignated under the PRTR law:Reduce by 5% compared to the fiscal2008 level

•Review the criteria forenvironmentally friendly products

•Examine designs for an LCIA method•Establish an in-house structure tocalculate and label Toppan’s “carbonfootprint”

•Comply with the guidelinesdeveloped under the Convention onBiological Diversity

Provide information through exhibitions,lectures, and other presentations

Observe in-house managementguidelines at all operational sites andreview them as necessaryMonitor the operational sites, includingthe vacant lots of reconditioned sitesPublish a CSR Report in July (in Japanese);expand the number of operationalsites that issue Site Eco Reports: To36 domestic sites (27 reports in total)•Conduct new employee education•Conduct environmental education viae-learning

Conduct internal environmental auditsat overseas production sites:Southeast Asia and the U.S.A. Collect monthly records on confor-mance with local regulatory standardsand environment-related data

•Promote energy-saving measures through the reinforced activities ofthe Energy Subcommittees (energy-saving reviews, etc.)

•Apply measures across the Company via shared information onenergy saving (meetings of personnel in charge of energy saving, etc.)

•Implement energy-loss control measures for older equipment (loadmeasurements, etc.)

•Promote large-scale energy-saving measures (fuel switchover,reduced loads for air-conditioning control in clean rooms)

•Reduce material input and improve yield rates

•Share information within the Toppan Group to seek external recyclingpartners

•Monitor recycling processes through onsite inspections for contractors•Examine recycling processing technologies and processing contractors

•Encourage the operational sites to separate wastes for conditioning as valuable resources and provide the sites with waste managementguidance

•Introduce equipment for recovering solvents (installation, verification,test-base operation)

•Take measures to cope with the expiration of the grace periodstipulated under the Air Pollution Control Law of Japan (equipmentinstallation at seven plants subject to the expiration of the grace period)

•Reduce the handling of materials containing designated chemical substancesand shift to alternative materials with low content of the same substances

•Comply with the revisions of the Law Concerning the Examination andRegulation of Manufacture of Chemical Substances Control and theLaw Concerning Reporting, etc. of Releases to the Environment ofSpecific Chemicals and Promoting Improvements in theirManagement of Japan (compliance with the revised MSDS)

•Examine, issue, and implement the revised criteria•Design a method via a development project (result checks, judgmentfor next steps)

•Organize structure in each division, launch the “carbon footprint”system, and support actual operations for the divisions

•Examine and establish in-house guidelines in response to thegovernmental guidelines issued

•Exhibit at Eco-Products 2009 and take part in environmental forums,etc.

•Conduct internal environmental audits at 58 domestic sites to confirmthe validity and observance of the reference values established underthe in-house management guidelines

•Regularly monitor groundwater and VOCs and report the results togovernmental organizations

•Issue a CSR Report and Site Eco Reports

•Conduct environmental education via Company-wide training•Conduct environmental education after revising the content of the e-learning-based programs

•Conduct audits at two sites in Southeast Asia and two sites the U.S.A.

•Periodically report data on environment-related issues via monthlyoverseas site reports

*1 Final landfill waste disposal: Direct landfill disposal + landfill disposal of residues from intermediate treatment *2 Zero-emission site: Operational site with a recycling rate of 98% or over (subject to approval by the Ecology Center) *3 Target in the industry: 41% reduction by fiscal 2010 (compared to the fiscal 2000 level)

Enviro

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

Capital Investment forEnvironmental Conservation

Toppan has been keeping an environ-mental account since fiscal 1998 as atool to calculate the cost effectivenessof its investment in environmental con-servation. Since fiscal 2005, the Com-pany has focused solely on capitalinvestment for environmental conserva-tion and the environmental conservationbenefits obtained. This is expected toimprove the accuracy of assessmentsand verifications of cost effectiveness byexcluding reliance on estimates insofaras possible.

Toppan invested 1,354 million yen inenvironmental conservation in fiscal2008, 57% less than it invested the yearbefore. This reduction is the result ofconsiderable investments in fiscal 2007to install equipment to recycle waste,take measures to conserve water usedin wastewater treatment equipment, andundertake improvement work to mitigateodor from printing machines.

The major capital investments for fis-cal 2008 have been used to pay for theinstallation of effluent gas treatmentequipment for organic solvent gases andwaste treatment equipment for improved

efficiency in waste paper treatment atproduction sites in the Living Environ-ment field, and the replacement of com-pressors for saving energy at productionsites in the Information & Networks field.

Other capital investments have beenexpended to fund energy-saving improve-ments by installing inverters onto airconditioning machines, adopting highlyefficient chillers and LED lights, andswitching over to brighter lights withoutincreasing energy consumption. Toppanhas also invested resources to creategreen spaces for beautification.

Capital investment for environmentalconservation includes investments inequipment improvement work for noisereduction and deodorization in responseto administrative guidance and com-plaints and inquiries from neighboringresidents.

Capital Investment for Environmental Conservation Environmental Conservation Benefit

Fiscal2008

1. Investment inequipment topreventpollution

2. Investment inequipment toconserve theglobalenvironment

3. Investment inequipment tocirculateresources

4. Investment inequipment formanagementactivities

Total

Investment inequipment to preventatmospheric and otherforms of pollution

Investment in equip-ment to conserve theglobal environmentsuch as by mitigatingglobal warming

Investment in equip-ment for the adequatetreatment and recycl-ing of waste materials

Investment in equip-ment to monitor andmeasure environmentalburdens and plant treesat operational sites

840

326

164

24

1,354

33

137

–1,997

15

–1,812

10,958

1,414

5,316

166

17,854

Increase/Decrease

fromFiscal 2007

Major ContentsItem

Total Sum for the Last

Five Years

(Million yen)

Total energy consumption (1,000 GJ)

Water consumption (1,000 m3)

CO2 emission (1,000 t-CO2)

Emission of ozone-depletingsubstances (ODP-t)

NOx emission (tons)

SOx emission (tons)

Emission of dioxins (mg-TEQ)

Total effluent discharge (1,000 m3)

Underground penetration (1,000 m3)

Onsite evaporation (1,000 m3)

BOD (tons)

COD (tons)

Total generation (1,000 tons)

Increase/DecreaseMajor ContentsItem

2,194

–295

123

0.3

–10

–19

–106

–31

17

–45

–7

–1

7

Fiscal2008

26,020

17,609

1,228

1.0

221

37

9

15,371

55

1,989

56

25

448

Energy

Water

Atmosphere

Waste

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

Compressor (Toppan Graphic Co., Ltd.)

Waste treatment equipment (Miyagi Plant, ToppanContainers Co., Ltd.)

Effluent gas treatment equipment (Fukuoka Plant)

Water andsoilenvironments


Environmental Report Environmental Management

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

Environmental ManagementToppan’s environmental managementrelies on the operation of an establishedenvironmental management system(EMS) based on the Company’s envi-ronmental management rules. The PDCAcycle is a core part of the EMS and vitalfor the continuous improvement of theefficiency of the system. To ensure theeffectiveness of the PDCA cycle, topmanagement conducts ongoing envi-ronmental management reviews. Theenvironmental performance data are reg-ularly collected by the Ecology Center,and the Director in charge of the Centerverifies and evaluates the data andreports evaluation results to the Boardof Directors and other managementbodies. Improvements to the EMS areproposed and implemented throughoutthe entire Company.

Features of Toppan’s EnvironmentalManagement SystemToppan’s EMS is uniquely managed. ThePDCA cycle is put into practice at everyoperational site, irrespective of the ISO14001 certification. Fifty-six domesticproduction sites and two research facil-ities have been pressing ahead with theirenvironmental activities to achieve thetargets set under the Eco-protectionActivity Plan.

Every month, the Eco-protection Pro-motion Committees check the progressof the activities to ensure that any newlyarising problems are resolved as quicklyas possible. Every operational site sendsthe Ecology Center reports on majorenvironmental performance data, suchas results on energy and waste, eithermonthly or every half-year. Toppan pre-pares an effective system for evaluatingprogress towards its environmental tar-gets and reviewing the targets when-ever necessary.

ISO 14001 CertificationEighty-four sites (65 systems) in theToppan Group were ISO 14001 certifiedas of the end of March 2009. Four sys-tems acquired the certification in fiscal2008: Fukuoka Plant ManufacturingDepartment 1, Toppan Techno Co., Ltd.,SNP Leefung Printers Ltd., and SNPLeefung Packaging & Printing Co., Ltd.

Two domestic sites are establishingsystems to prepare for the certification.Toppan is working towards the certifica-tion of the remaining five major sites byfiscal 2012.

Promotion Structure forEnvironmental Activities

The Board of Directors is positioned asthe highest decision-making body inToppan’s promotion structure for envi-ronmental activities. The Ecology Centersupervises environmental activitiesundertaken at the divisions and Groupcompanies under its Director, the officerresponsible for the Company’s environ-ment-related matters. Every division and

Overview of Environmental Management

The ToppanGroup Declaration

on the GlobalEnvironment

Medium-and Long-termEnvironmental

Targets

Environmentaltargets forthe currentfiscal year

Legal requirements

Environmental aspects

Environmental impact

Environmental burdenassessment on R&D

Green procurement

Production sites and research facilities

Environmentalpolicy

Environmentalobjectives

Developmenttargets

Researchtopics

Environmentaltargets

Eco-protection

Activity Plan

Review

Environmentalactivities

Eco-protection Activities

Eco-protectionPromotionCommittee

Progress review

Achievementevaluation, review

Eco-protection

AchievementReport

Group-widemeeting

NationalEco-protection

Meeting

Group-widemeeting

NationalEco-creativity

Meeting

Report andshare results onenvironmental

activities

Environmentalmanagementreview by topmanagement

(as required)

Review ofMedium- and

Long-termEnvironmental

Targets

Review ofenvironmental

targets forthe currentfiscal year

Report andshare results onenvironmental

activities

Total

Eco-creativity Activities

System for the Developmentof EnvironmentallyFriendly ProductsProgress review

Achievementevaluation, review

Sales management

Eco-creativityPromotion System

R&D for environmentallyfriendly products

Review

Sales activities forenvironment-related

businessTargeted sales

Sales/SP and R&D departments

Environmental Management StructureE

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Enviro

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ent


Group company has its own Environ-mental Management Officers in relevantdepartments. These officers head theenvironmental activities carried out attheir departments in collaboration withthe Eco-protection Promotion Commit-tees, the bodies responsible for theactual implementation of the activities.

Toppan has established two in-housesystems to promote the Eco-protectionand Eco-creativity Activities: the Eco-protection Promotion System and theEco-creativity Promotion System. Underthese systems, the Company advancesvarious environmental measures withguidance from the Ecology Center.

Operational sites convene their ownEco-protection Promotion Committees,

and subcommittees set up under thecommittees plan out activities to addressspecific environmental issues. The EnergySubcommittees in these sites have con-tinued to pursue energy-saving activities.

With regard to Toppan’s Eco-creativ-ity Activities, all of the divisions have theirown Eco-creativity Officers to developenvironmentally friendly products andenvironmental support businesses.

Reinforcing the Integrated Strengthof the GroupAs a Group-wide environmental man-agement initiative, Toppan organizes asemi-annual Toppan Group Environ-mental Meeting under the auspices ofthe Meetings with the Heads of Related

Companies. Based on shared informa-tion on environmental issues and theprogress towards the environmental tar-gets of each company, Toppan rein-forces its environmental risk managementand spreads measures supported by the integrated strength of the Groupthroughout the workplaces in the Groupcompanies.

The Company intends to furtherimprove the level of environmental man-agement through internal environmentalaudits in the years to come.

Environmental Management Structure

Board of Directors

Group companies

Presidents

EnvironmentalManagement Officers

Eco-protectionPromotion Committees

Toppan divisions

Division heads

EnvironmentalManagement Officers

Eco-protectionPromotion Committees

Director in charge of the Ecology Center

Ecology Center

National Eco-protectionMeeting

Environmental ISOSupervisory Meeting

Eco-protectionPromotion Committee

Energy Subcommittee

Other subcommittees

National Eco-creativity Meeting

Eco-creativity Promotion System

System for the Development ofEnvironmentally FriendlyProducts in each division

IFrequency: Semi-annualIMajor objectives: Reporting and discussion

on the achievements of Toppan’s environmental activities

IFrequency: Annual IFunction: Strategy planning meeting for

ISO 14001 operations

IFrequency: Monthly, in principleIFunction: Operational management of the

environmental management system

IFrequency: Semi-annualIMajor objectives: Reporting and

discussion on the achievements of Toppan’s environmental activities

IFunction: Promotion of Eco-creativity Activities in the divisions

IFunction: Planning, development, evaluation, registration, and qualification of environmentally friendly products

IFrequency: Monthly, in principleIFunction: Streamlining of energy use

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



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

Internal Environmental AuditSystem

Toppan’s internal environmental auditsystem follows a two-stage screeningprocess: a document audit and anonsite audit. The internal environmentalaudit team consists of assistant audi-tors to oversee the environmental man-agement system (EMS), in addition tothe internally certified environmentalauditors. The team begins by inspectingand evaluating the status of the EMSsand compliance with environment-related laws, regulations, and in-housestandards at all of the operational sitesaudited. To correct the deficienciesassociated with the “issues in need ofimprovement” pointed out during theaudits, the team requires each site tosubmit a Plan for the Improvement ofSpecified Issues (Improvement Plan).Later, the team conducts a Review ofthe Internal Environmental Audit toassess the progress towards the requiredimprovements.

Results of the Fiscal 2008 AuditThe internal environmental audit team

identified 594 issues in need of improve-ment at 58 domestic sites in fiscal2008. To correct the deficiencies pointedout, each operational site follows anImprovement Plan with a detailed list ofrequired improvements and deadlinesfor completion. Toppan has confirmedthe progress of improvement measureson 72 issues at nine operational sitesthrough internal environmental auditreviews. The progress and results of theremaining 522 specified issues are to bereviewed during the internal environ-mental audits for fiscal 2009.

Onsite hearings and inspections arecarried out every other year, in principle,at overseas production sites. Eight sitesin Eastern Asia were inspected for localenvironmental audits in fiscal 2008. Theinspections identified 103 issues in needof improvement. The priorities in theinspections were the implementationand operation of the EMSs and compli-ance with local environment-relatedlaws, regulations, and ordinances. Otherpoints included the environmentalimpacts on water and the atmosphere,and the regular control of energy and

waste. The overseas sites have followedthe example of the domestic sites bytaking necessary procedures to achievebetter operational conditions under theImprovement Plan.

Approach to EnvironmentalCompliance

Toppan’s production sites endeavor toprevent environmental pollution by com-plying with established standards for in-house control, standards that generallytend to be stricter than the national andlocal regulatory standards. Through thisapproach, the production sites seek toeliminate all failures in complying withthe environmental laws, regulations,ordinances, and agreements set by thenational and local governments wherethe sites operate.

The compliance status at everydomestic site is reported to the headoffice via the Eco-protection Achieve-ment Reports every April. Overseassites, meanwhile, submit monthly over-seas site reports. The reports from bothdomestic and overseas sites are to beassessed by internal environmental audits.

Internal Environmental Audit System

Environmental Audit Reports*

Document audit

Internal EnvironmentalAudit Result Report

Plan for the Improvement ofSpecified Issues

(Improvement Plan)

Internal EnvironmentalAudit Reports

Onsite audit

Review of the InternalEnvironmental Audit

A summary of activities conducted throughout the year to ensure compliance with about 200 items for internal environmental audits specified by the head office

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

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

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

A report delivered to the Senior Corporate Auditor and the Director in charge of the Ecology Center

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

1) Hearings with managers and personnel in charge of environmental matters at an operational site, based on the Manual on Hearings for the Internal Environmental Audit

2) Verification of the status of environmental management via an inspection within and around an operational site, based on the Check Sheet for Inspections for the Internal Environmental Audit

*The operational sites that have already acquired the ISO 14001 certification report their activities in themanagement review document.

Internal environmental audit hearing

Internal environmental audit inspection

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Environmental EducationToppan provides environmental educa-tion through comprehensive e-learning-based programs for all employees. Italso organizes specialized training ses-sions for employees of every rank,including new employees and newlyappointed managers.

Optional training courses at theToppan Business School include semi-nars on ISO 14001 and sessions tofoster internal environmental auditorsand enhance their skills. Personnel fromthe Ecology Center lecture trainees inseminars and sessions held regularlythroughout the year.

Toppan uses this education as anopportunity to raise the environmentalawareness of employees and maintainand improve the level of the Company’senvironmental activities on a continuousbasis (➞P. 74).

Compliance in Fiscal 2008Two production sites in Japan recordedlevels of odor exceeding the regulatorystandards set under the Offensive OdorControl Law. Five production sites,meanwhile, recorded levels of BOD,COD, and normal hexane exceeding theregulatory standards set for water cont-aminants under the Water PollutionControl Law and Sewerage Law. TheCompany immediately took correctivemeasures for every case, including stepsto revise the control methods for equip-ment. It strives to reliably prevent recur-rence by reviewing control proceduresas well.

Toppan also received complaints offoul odor, a problem caused by insuffi-cient control of effluent gas treatmentequipment at several sites. The problemwas resolved by immediate correctivemeasures at each site, and full reportson the incidents were presented to therelevant authorities.

Regarding the pollution of soil andgroundwater environments, the Com-pany has taken soil remediation mea-sures (shown below) and continues to

monitor groundwater. The case involv-ing soil and groundwater pollution withhexavalent chromium at the ItabashiPlant in Itabashi Ward, Tokyo wasarbitrated by the Pollution ExaminationCommissioner of Tokyo MetropolitanGovernment in April 2009.

Emergency ResponsesAt every production site, chemical sol-vents are conveyed to the sites in tanktrunks and transferred to storage tankson the premises on a daily basis.Leakage accidents during the opera-tions pose the risk of soil and waterpollution.

Toppan has therefore prepared oilabsorbents, sandbags, and other neces-sary safeguards to prevent the outflow ofsolvents in the event of an emergency oraccident during production operations.Emergency-preparedness drills havealso been held regularly. The Companyformulates procedures to prevent andmitigate environmental pollution duringemergencies. The effectiveness of theprocedures is verified and defectivepoints are corrected during the drills.

Purification of Soil and Underground Water Pollution Monitored by Voluntary Investigation

Internal environmental auditor training by Toppanpersonnel

Emergency-preparedness drill to cope with asolvent leakage

Nagoya Plant

Shiga Plant

Asaka Plant

ToppanElectronics, Inc.(TEI) MiramarPlant

Itabashi Plant

Operational Site

Nishi Ward,Nagoya City,Aichi

Higashi-omiCity, Shiga

Niiza City,Saitama

San DiegoCounty,California, USA

Itabashi Ward,Tokyo

Location

Soil pollution by hexavalentchromium(Detected by a voluntaryinvestigation during disposal intounderground pits)

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

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

Soil pollution by heavy metals (lead, etc.) and VOCs

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

Detail

Remediation work iscompleted; groundwater isbeing continuouslymonitored

Remediation work iscompleted; groundwater isbeing continuouslymonitored

Groundwater is beingcontinuously monitored

Remediation work iscompleted; VOCconcentrations are nowbeing monitored

Deliberated for arbitration bythe Pollution ExaminationCommissioner of TokyoMetropolitan Government(arbitrated in April 2009)

Progress in Fiscal 2008



Environmental Communication ActivitiesToppan strives to share environmental conservation awareness with stakeholders through activities to harmonize with local communities and enhance knowledge on environmental issues inside and outside the Group.

Major In-houseCommunication Activities

Environmental MeetingToppan has held a National Eco-protec-tion Meeting in Japan to report and dis-cuss environmental activities twice ayear since 1992. Meeting participantsreport environmental performance dataacross the Company and by businessfield, while describing the actual mea-sures taken at the operational sites topromote similar actions throughout theCompany. Every operational site con-venes an Eco-protection PromotionCommittee every month, in principle, inaccordance with its environmental man-agement system to share the informa-tion on daily activities to reduceenvironmental burden at the site. Theseare part of a multiple-layer meetingregime throughout Toppan to maximizethe sharing and dissemination of envi-ronmental awareness and information onenvironmental issues and solutions.

Environment MonthThe Ministry of the Environment of Japanadvocates “Environment Month” in Juneto promulgate environmental actions inJapan. Toppan undertakes a number of

activities each June as an opportunityto deepen employee awareness of theenvironment, create comfortable andenvironmentally friendly workplaces, andmaintain and enhance positive relation-ships with local communities.

An environmental slogan coined by aToppan employee is posted at eachoperational site in Environment Monthto improve environmental awarenessamong employees. In fiscal 2008, Toppanjoined in the GPN 5 Million Mass-actionProject, a campaign by the Green Pur-chasing Network (GPN) of Japan to pro-mote mass action for green purchasing.

Energy-Saving MonthTo bolster energy-saving endeavors,Toppan continues to take part in activi-ties for Energy-Saving Month, an eventadvocated by the Ministry of Economy,Trade and Industry of Japan, in summerand winter. The Company also joins inJapan’s national initiative Team Minus6%* and encourages its employees towear light clothing in the summer (knownin Japan as “Cool Biz”) and heavy cloth-ing in the winter (“Warm Biz”).*The name “Team Minus 6%” refers to Japan’sgreenhouse-gas-emission reduction target of6% under the Kyoto Protocol.

President’s Ecology AwardsToppan has incorporated Ecology Awardsin its biannual lineup of President’sAwards to encourage the environmen-tal efforts of employees by commend-ing excellent environmental activities.Employees who have achieved or con-tributed in the following ways are nomi-nated as candidates to receive theaward: those who significantly contributeto in-house environmental conservationactivities; those who serve as rolemodels through their successes inpromoting ingenious innovations forimprovement; those who contributesubstantially to the development of envi-ronmentally friendly technologies orproducts that win patents or utility modelrights. A project team received anEcology Award in fiscal 2008 for its work in developing and commencing the manufacture of paper compositecontainers.

The paper composite container, acombination of a paper cup and plasticrim, can be used as a paper-based alter-nate to a plastic container. The teamdeveloped the paper composite con-tainer by successfully applying the sameproprietary technique Toppan uses for

National Eco-protection Meeting held in Japan

Eco-protection Promotion Committee

Environmental Slogan

Every June, in Environment Month, Toppansolicits environmental slogans from employ-ees, selects the most outstanding of all theentries submitted, and posts it at every oper-ational site. From among the 6,600 entriessubmitted in fiscal 2008, the Companyselected one as the most outstanding, twoas outstanding, and five as notable.

The Toppan Group’s environmental sloganfor fiscal 2008 was “Eco-activities Start Simply:The Small Step from Thinking to Action.”

Chewing Gum Container MadeMostly from Paper in Combinationwith a Plastic Rim

A container developed based on the sameproprietary technique used to manufactureToppan’s Cartocan paper-based beveragecontainer. The raw material for the papercomponent is lumber chip harvested fromforest thinning, a process crucial for soundforest management and forests withimproved CO2 absorption efficiency. This isan environmentally friendly container designedto help mitigate global warming.

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the formulation of Cartocan. Team mem-bers from the sales, production, anddevelopment departments were alsohighly rated for their coordinated effortsto swiftly launch the manufacture of thisnew product.

Disclosing EnvironmentalInformation

Communicating with LocalCommunitiesThe communities around Toppan’s plantsfiled 29 complaints and inquiries (five ofthem new) at 14 domestic sites in fiscal2008, indicating that many stakeholderswere inconvenienced. The complaintsdealt mainly with noise and odors. Whilemost of the problems were promptlysolved, the Company has been imple-menting intensive measures for theremediation of odor-related problems attwo operational sites.

To mitigate noise, Toppan has takensound-insulating measures such as theinstallation of soundproof walls. To miti-gate odors, the Company has revisedmethods for the operation and control ofeffluent gas treatment equipment anddeodorizing equipment in order to prop-erly manage routine operations. Through

routine inspections, the Company hasstepped up its measures to prevent therecurrence of odor- and noise-relatedproblems.

Toppan will continue to engage inenvironmental management throughmore detailed and comprehensive com-munications with residents in surround-ing communities.

Issuing Site Eco ReportsToppan’s ISO 14001-certified sites havebeen issuing Site Eco Reports on theirenvironmental activities since fiscal2000. As periodic communicationsdirected towards local municipalities andresidents in surrounding communities,25 reports were issued at 33 domesticsites in fiscal 2008.

When issuing reports, operationalsites fully consider the understandabilityand readability based on Toppan’s in-house Guidelines for Creating Environ-mental Reports for Operational Sites.

Organizing and Participating inSeminars and Environment-relatedExhibitionsToppan wants the public outside theCompany to understand its environmen-tal efforts. The Company dispatches lec-turers to seminars held by variousorganizations, participates in environ-ment-related exhibitions, and organizesenvironment-related programs of itsown. Toppan’s environmentally friendlyproducts are on permanent display atPLAZA21 in the Toppan KoishikawaBuilding in Tokyo, a communicationvenue set up to present case examplesof the integrated strength of the Group.

Site tour

Site Eco Reports (in Japanese)

Major Environmental Events in Japan in Fiscal 2008

2008June 2008 Integrated Exhibition of

the Environment in celebra-tion of the Hokkaido ToyakoSummit

August Surprise! 100 Eco IdeasSeptember Environmental communication

seminar at PLAZA21October TOKYO PACK 2008December Eco-Products 2008

2009March Eco Workshops opened at

PLAZA21 in a tie-up with theP&P Gallery

2008 Integrated Exhibition of theEnvironment in celebration of theHokkaido Toyako Summit

Toppan displayed Cartocans and other envi-ronmentally friendly products and services atthe 2008 Integrated Exhibition of the Environ-ment to celebrate the Hokkaido ToyakoSummit held in Japan in June 2008. TheCompany also supported the HokkaidoToyako Summit Preparation Council by pro-viding a special series of 10,000 Cartocansdesigned exclusively for the Summit. Cartocanis a paper-based beverage container designedto help foster sound forests.

Eco-Products 2008

Toppan exhibited total environmental solu-tions from the Toppan Group in cooperationwith six Group companies (Tokyo ShosekiCo., Ltd., Tosho Printing Co., Ltd., ToppanForms Co., Ltd., Toppan Cosmo, Inc.,Toppan TDK Label Co., Ltd., and froebel-kan co., ltd.) at the Eco-Products 2008 heldin Japan in December 2008. Toppan’s catch-phrase for the event was: “Connecting, deliv-ering, spreading, and communicating.”


Environmental Report Environmental Conservation Activities

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

Energy-saving ActivitiesToppan engages in energy-saving activ-ities to reduce the emissions of carbondioxide (CO2) and other greenhousegasses. To work towards the KyotoProtocol targets for reduced greenhousegas emissions, Toppan has establisheda Medium- and Long-term Environ-mental Target: to reduce CO2 emissionsper unit of sales by 10% by fiscal 2010,compared to the fiscal 2000 level. TheCompany also sets a yearly target toaccomplish the medium- and long-termtarget. To meet the Company’s targetfor the year, every production site setsindividual targets for emissions per unitof production value and emissions perunit of production volume by producttype.

CO2 emissions per unit of sales in fis-cal 2008 were reduced by only 0.9%compared to fiscal 2007, failing short ofthe targeted reduction of 5%. Thoughextensive energy-saving measures weretaken, a substantial decrease in ordersreceived in the second-half of the fiscalyear prevented Toppan from reachingthe targeted reduction. Compared to thefiscal 2000 level, CO2 emissions per unit

of sales in fiscal 2008 resulted in a 6.3%increase. Toppan will take more inten-sive energy-saving initiatives, mainlythrough operational enhancements ofequipment and devices.

Details of the Company’s EffortsTowards reduced energy consumption,Toppan made a focused effort to pre-vent leaks of compressed air from pro-duction equipment in fiscal 2008. Leakcountermeasures were strengthened viatwo approaches: conducting energy-saving reviews to check actual condi-tions and clarify points to be improved,and duplicating effective measuresalready deployed at certain sites forapplication elsewhere in the Company.Toppan developed other energy-savinginitiatives through seminars held withoutside experts, air leak checks withdetectors, and ongoing fuel-switchoverpromotion.

The Company has also been gradu-ally adopting LED lighting for indoor useand installing solar panels as a green-energy solution for outdoor lighting. Insummer months, operational sites acrossJapan install “green curtains” over build-

ings, a natural source of shade to helplimit the rises in indoor temperatures.

In recognition of these unflaggingenergy-saving efforts, two Toppan siteswere conferred awards from governmen-tal organizations in fiscal 2008 (➞P. 13).

0

5

10

15

20Energy consumptionEnergy consumption per unit of sales 28,000

21,000

14,000

7,000

02000

14,023

14.47

2004

15,764

16.54

2005 2006 2007 2008

16,35017,796 18,348

17,182

17.04 16.40 16.3016.46

(1,000 GJ) (GJ/million yen)

(Fiscal year)

Energy Consumption

0

0.20

0.40

0.60

0.80

1.001,500

900

1,200

600

300

02000

650

0.67

2004

706

0.74

2005 2006 2007 2008

730785 805

751

0.730.75

(1,000 t-CO2) (t-CO2/million yen)

(Fiscal year)

CO2 emissions CO2 emissions per unit of sales

0.72 0.71

CO2 Emissions

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

A “green curtain” composed of bitter melons

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Resource CirculationToppan controls waste generation and recycles waste materials in aiming to achieve zero emissions at all domestic sites.

Waste Reduction ActivityWaste paper derived primarily fromoperational sites in the Information &Networks and Living Environment fieldscomprises 73% of the total waste gen-erated at the Toppan sites. Waste plas-tics from plants in the Living Environmentfield and waste acids such as wasteetchant from plants in the Electronicsfield also make up substantial portionsof the total waste generated.

Toppan has established a medium-and long-term target of reducing finallandfill waste disposal by 95% by fiscal2010, compared to the fiscal 2000 level.In fiscal 2008, Toppan reduced finallandfill waste disposal by 14.2% relativeto the fiscal 2007 level. While this fellslightly short of the 15% target set forthe year, final landfill waste disposal hasbeen reduced by 93.4% from the fiscal2000 level. The Company will remainactive in recycling waste to attain themedium- and long-term target.

The waste generation per unit of pro-duction value in fiscal 2008 increasedby 3.2% relative to the fiscal 2007 level,falling behind the targeted reduction of5% year-on-year. This result was mainly

attributable to the substantial decline inorders received in the second-half of thefiscal year. As of the end of fiscal 2008,the medium- and long-term reductionstood at 18.2%, compared to the fiscal2000 level. The reduction targeted byfiscal 2010 is 25%, so efforts to accom-plish the medium- and long-term targetswill clearly have to be reinforced.

The Company will accelerate itsefforts for the control of waste genera-tion and the recycling of waste in theyears to come.

Targeting Zero Emissionsand Recycling Waste

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

Toppan recorded a 93% material

recycling rate* in fiscal 2008, meetingthe 92% target set. Two important taskstowards the further improvement of thematerial recycling rate will be to usewaste more effectively at operationalsites and to discuss material recyclingwith industrial waste treatment compa-nies. Toppan pursues the maximumreuse of the waste generated from everyprocess throughout business opera-tions, with the target of having alldomestic sites certified as zero-emis-sion sites by fiscal 2010.

0

20

60

40

80

100

Total waste generation Final landfill waste disposalRecycling rate (recycling amount/total waste generation)

500

400

300

200

100

02000

337.2

24.0

92.9

2004

324.5

5.9

95.4

2005 2006 2007 2008

325.0

3.8

330.9

2.0

313.8

1.6

333.6

1.8

96.3 98.0 98.2 98.8

(1,000tons) (%)

(Fiscal year)

Total Waste Generation, Final Landfill Waste Disposal, and Recycling Rate

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

1.0

0.8

0.6

0.4

0.2

02000 2006 2007 2008

(tons/million yen)

(Fiscal year)

0.879

0.7510.696 0.719

Waste Generation Per Unit of Production Value

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


Environmental Report Environmental Conservation Activities

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

Preventing Pollution Every production site gleans an accu-rate picture of the handling of chemicalsubstances and identifies its own envi-ronmental burden. Based on the results,the Eco-protection Promotion Committeeat every site sets in-house control stan-dards even more stringent than the legalrequirements. By complying with thesestandards, Toppan production siteswork vigorously to reduce their environ-mental burdens and prevent pollution.

Preventing Atmospheric Pollutionand Protecting the Ozone LayerTo prevent atmospheric pollution,Toppan controls boilers and othersources of smoke and soot by switch-ing fuels and managing operations underappropriate combustion conditions. TheCompany has also introduced VOCeffluent gas treatment equipment for thethorough control of atmospheric pollu-tants. VOC emissions into the atmos-phere in fiscal 2008 were reduced by6.7% compared to fiscal 2007, fallingshort of the 10% target set for the year.Efforts to reduce emissions were hin-dered by increases in the handling ofcleaning solvents and in malfunctions of

VOC effluent gas treatment equipment.For ozone-layer protection, all equip-

ment that uses designated chlorofluoro-carbons at Toppan plants is controlledin conformance with the relevant lawsand regulations. The step-by-stepreplacement of this equipment is nowbeing considered.

Preventing Water and Soil PollutionTo prevent pollution in the water envi-ronment, Toppan manages wastewaterat its plants by installing wastewatertreatment facilities designed to amelio-rate specific production processes.Wastewater recycling systems areinstalled at production sites with inten-sive water consumption in the Electron-ics field. These systems enable the sitesto recover and reuse wastewater andreduce the levels of water consumptionand effluent discharge.

The Company’s principal concern inmanaging its chemical solution storagetanks is to prevent the leakage of fluids.Walls have been constructed around thestorage tanks and Toppan personnelregularly inspect the tanks and piping todetect flaws before soil pollution occurs.

Managing ChemicalSubstances

Toppan works to reduce the handling ofchemical substances designated underthe PRTR law.

The handling of these substanceswas reduced by 12.4% in fiscal 2008,surpassing the targeted reduction of 5%year over year. The total release and totaltransfer were also decreased by 22.3%and 6.6%, respectively, compared to thefiscal 2007 levels. Toppan’s switchoverto toluene-free or low-toluene-contentinks and cleaning solvents was thelargest contributor to these results byfar, accounting for 50.0% of the reduc-tion in handling, 90.9% of the reductionin total release, and 88.2% of the reduc-tion in total transfer.

Toppan will press forward in materialswitchover to further reduce the han-dling of chemical substances designatedunder the PRTR law (➞P. 76).

6,159

558 449 362

(tons)

20,549

9,085

2000 2006 2007 2008

24,000

18,000

12,000

6,000

0

(Fiscal year)

7,851 7,326

VOCs Toluene

VOC and Toluene Emissions into the Atmosphere

1,032893

726 678

749 672 526408

6,156

6,850 6,893

6,035

(tons)

2005 2006 2007 2008

8,000

6,000

2,000

1,000

0

(Fiscal year)

Total transfer Total releaseTotal handling

Chemical Substances Designated under the PRTR Law

Note: Calculated based on data on the handling,release, and transfer of chemical sub-stances designated under the PRTR lawat each operational site. Dioxins areexcluded due to a difference in the count-ing unit.

Note: Emissions into the atmosphere are calcu-lated in conformance with the standardsestablished by the Japan Federation ofPrinting Industries (JFPI) and the JapanElectronics and Information TechnologyIndustries Association (JEITA). The datafor fiscal 2007 and earlier have beenrestated based on the revised methods forcalculation.

NOx and SOx Emissions

36

5944

32

(tons)

193

222

2005 2006 2007 2008

250

200

150

100

50

0

(Fiscal year)

208

174

NOx SOx

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

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

Reducing CO2 Emissions inTransportation

Complying with the Revised EnergySaving Law of JapanUnder the revised Energy Saving Law ofJapan, Toppan is classified as a “desig-nated shipper” and required to reduceenergy consumption per unit of trans-port volume by an average of 1% a year.Toppan Logistics Co., Ltd. is conduct-ing energy-saving activities together withToppan to meet this mandatory target.Measures to conserve energy consump-tion at Toppan Logistics during fiscal2008 included an upsizing of company-owned trucks via a switchover to vehi-cles with maximum load capacities of 8tons or more, an increase in the loadefficiency of trucks via the adoption ofmixed cargo containers, and the pro-motion of a modal shift to rail transportfor applicable products. As a result ofthese measures, Toppan Logisticsreduced energy consumption per unit oftransport volume by 4.3% comparedwith fiscal 2007, surpassing the targetedreduction of 3% for the year.

In fiscal 2009, Toppan Logistics willcontinue to pursue reductions of CO2

emissions by rationalizing transport

methods and introducing measures forimproved transport efficiency.

Promoting the Green Management-certified InitiativesToppan Logistics proactively implementseco-driving and inspects and maintainsvehicles according to in-house stan-dards as it works to promote the GreenManagement-certified initiatives applica-ble mainly to company-owned vehicles.

In pursuit of enhanced eco-drivingeffects, Toppan Logistics sets newcheckpoints to control driving practicesharmful to the environment, such aswarming-up-in-idle, quick braking, jack-rabbit starting, driving at inappropriatespeeds, and idling during extendedstops. A system to keep track of actualdriving conditions supports the effortsof Toppan Logistics to improve vehiclemileage on an ongoing basis.

Reinforcing EnvironmentalManagement

Toppan Logistics operates an ISO14001-certified environmental manage-ment system (EMS) mainly at theKawaguchi site, its major logistics base,to effectively promote environmental

conservation activities. The boundary ofthe EMS has been extended to coverother sites, including the Niiza site in fis-cal 2008.

Ongoing reinforcements in environ-mental management will allow ToppanLogistics to continue reducing and recy-cling wastes while strictly complying withenvironment-related laws and regula-tions such as the Waste Disposal andPublic Cleaning Law and the Law Con-cerning Special Measures for Total Emis-sion Reduction of Nitrogen Oxides fromAutomobiles in Specified Areas of Japan.

Securing Safe TransportationToppan Logistics operates a safety man-agement system to improve the safetyof company-owned-vehicle transportoperations according to the require-ments under the comprehensive law ondriving transport safety enforced inJapan from 2006.

In fiscal 2008, Toppan Logistics imple-mented safe transportation measures atthe Numazu and Niiza sites on a top-priority basis. These two sites werenewly included in the consolidationboundaries of Toppan Logistics Co., Ltd.for the year.

(km/L)

3.52

2001 2005 2006 2007 2008

4.5

4.0

3.5

3.0

(Fiscal year)

3.90

4.204.25

4.36

Fiscal 2008 Results

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

IMileage of company-owned vehicles23.9% improvement compared to thefiscal 2001 level

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

IWaste recyclingRecycling rate: 92.9%* (1.8-pointincrease compared to the fiscal 2007level)

ISafety management systemZero serious accidents

IPromotion of eco-drivingHeld joint seminars for drivers from thecompany and its partner companies

Mileage of Company-owned Vehicles

Eco-driving lecture (discussion during a dangerawareness drill)

Eco-driving lecture (vehicle maintenance)*The method for calculating the recycling ratehas been changed.


Environmental Report Environmentally Friendly Products and Environment-related Business

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

Basic Thinking onEnvironmentally FriendlyProducts

Toppan develops environmentally friendlyproducts in accordance with its own setof criteria established in closer consid-eration of the social demand for prod-ucts and services from the divisions andToppan’s 14 Environmental Points basedon ISO 14021. The Ecology Centerassesses newly developed products inorder to certify and register those thatmeet all of the criteria for “environmen-tally friendly products.” In response to the increased environmental awarenessin society, the number of newly regis-tered environmentally friendly productsincreased to 14 in fiscal 2008, exceed-ing the number registered in the previ-ous fiscal year. Toppan will review thecriteria for its environmentally friendlyproducts by elaborating the Environ-mental Points in ways conducive to newperspectives.

The Company has developed 94 envi-ronmentally friendly products so far (asof the end of August 2009) (➞P. 73).

Environment-relatedBusiness

In fiscal 2008, Toppan worked to boostthe sales of its environmentally friendlyproducts, began to review its in-housecriteria for registering environmentallyfriendly products, and began to reinforceits Eco-creativity Promotion System.

The chief objectives of the criteriareview for environmentally friendly prod-ucts were to revise Toppan’s Environ-mental Points and reset the stagesof the product life cycle in ways con-ducive to biological diversity and other new approaches for conserving theenvironment.

To respond to the growing interest ofcustomers in the environmental effi-ciency of products, all of the divisionshave reinforced the Eco-creativity Pro-motion System by appointing moreEco-creativity Officers.

Group companies are also consider-ing means to conserve the global envi-ronment as they conduct their corporateactivities. Each company assertivelydevelops, produces, and markets eco-friendly products in line with its own Eco-product Standards carefully formulated

Toppan’s 14 Environmental Points and Environmental Considerations

Toppan will not use substances banned by industrial organizations or substances that couldpotentially contaminate products manufactured at the Company with environmental hormones.Toppan will not produce products from recycled materials that could potentially containenvironmental hormones or substances banned by industrial organizations.The consumption of resources is reduced during the materials production and logistics processes.The consumption of energy and water is reduced during the production and logistics processes.

Products are produced with surplus energy or energy recovered from waste materials.The generation of solid waste is reduced through modifications of the production process, productdesign, and packaging. (Byproducts reused in processes are not included in this category.)Energy consumption is reduced during product operation.Products release the lowest possible levels of chemical substances.

Product lifetimes are extended by improving durability and adopting scalable designs.Products can be reused or refilled for uses related to the purposes for which they were originallyintended, or for other purposes of the Company. Systems and infrastructures are provided forcollection and reuse.Systems and facilities are provided for product recycling. Recyclable parts are indicated as such.The materials used discharge the lowest possible levels of harmful gases during incineration.Landfill waste is carefully treated to prevent all forms of soil contamination.Product designs enable easy separation and disassembly. The parts and materials used supportproduct recycling.The biodegradable and photodegradable materials used in the products break down naturally andare assimilated back into the environment.

1. Use of safe materials

2. Use of recycled materials

3. Resource-saving4. Reduced energy con-

sumption in production5. Use of recovered energy 6. Reduced solid waste

7. Energy-saving 8. Reduced release of

chemical substances 9. Long product life 10. Reusability

11. Recyclability12. Suitability for disposal

13. Easy separation anddisassembly

14. Biodegradability

Recycling rate

Resource reduction

Recovered energyReduced solid waste

Energy-saving

Long-life products Reusable/refillable

Recyclable

Easy detachment design

Degradability

Products anddistribution

Use

After use

Life Cycle StageISO 14021

Environmental Labeling Type II

Toppan’s 14 EnvironmentalPoints for Environmentally

Friendly ProductsToppan’s Standards

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

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

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

Developing and Assessing Environmentally Friendly ProductsE

nvironm

entalRep

ort

Enviro

nmentally

Friend

lyP

rod

uctsand

Enviro

nment-related

Business


Calculating and labelingCarbon Footprint

To help mitigate global warming, theMinistry of Economy, Trade and Industry(METI) of Japan issued the Guidelineson the Carbon Footprint System(Guidelines) and the Standards forEstablishing Product Category Rules(PCRs). The Guidelines specify the basicrules on “carbon footprint” for calcula-tion and labeling on CO2 emissionsderived from products and services.METI will draw up PCRs for each prod-uct and begin requiring businesses tolabel information on the CO2 emissionson their products.

Toppan is preparing for the establish-ment of a structure to respond to thecalculation and labeling requirements foreach of its products under the PCRs.For printed products, CO2 emissions arederived primarily from raw materials. TheCompany will therefore develop prod-ucts that use fewer raw materials, begin-ning with containers and packaging.

Establishing an EvaluationMethod Well Suited toPrinted Products

Toppan began to develop an originalmethod for evaluating environmentallyfriendly products in fiscal 2008. Drawingfrom the LCA concept, this method isespecially well suited to items in print.

In essence, it is a quantitative evalua-tion of the environmental friendliness ofa product with respect to inventoriessuch as global warming mitigation andbiodiversity conservation, based onToppan’s 14 Environmental Pointsthroughout the product life cycle. Whenthe evaluation is complete, the resultsare to be integrated and disclosed as asingle indicator.

Toppan has enlisted the cooperationof Norihiro Itsubo, an Associate Professorfrom Tokyo City University, to develop anew environmental impact evaluationmethod suitable for printing productsclassified as nondurable goods. Throughcoming development efforts over thenext two years, the Company seeks toestablish a method for products in theLiving Environment field, with plans forfull-scale introduction in fiscal 2010.

in consideration of the demands fromsociety and the features of its productsand services.

The boundary of sales in the environ-ment-related business was extendedfrom Toppan Printing Co., Ltd. (noncon-solidated) to cover Group companies(consolidated) in fiscal 2008. As a result,total sales of the environment-relatedbusiness of the entire Group stood at256.8 billion yen.

In pursuit of improved and uniformenvironmental efficiency for productsand services, the Toppan Group willexamine a way to standardize the crite-ria for environmentally friendly productson a Group-wide basis.

Basic Flow of Environmental Impact Evaluation Method

Inventory Imp

act range (characterizatio

n)

Categ

ory end

po

int

Impact evaluation of protection targets

Global warming:CO2

Integration

Single indicatorAcid rainfall: NOx

Overabundance ofnutrients: BOD

Solid waste

Calculation of Carbon Footprint

INPUTEnergy, raw materials, fuel, etc.

OUTPUTGreenhouse gas (GHG) emissions (CO2 equivalent)

Procurem

ent ofraw

materials

Manufacturing

Transport

Use

Recycling ordisposal


Environmental Report Environmentally Friendly Products and Environment-related Business/Conserving Biodiversity

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

GPN Purchasing Guidelinesfor Offset Printing Services

As a member of the Green PurchasingNetwork (GPN) of Japan (➞P. 37),Toppan tries to minimize the environ-mental impact of printing and providesprinting services based on the Purchas-ing Guidelines for Offset Printing Services.The Company offers environmentallyfriendly technologies and materials forevery step of the printing process, fromthe selection of designated inks andpapers to surface treatment and bind-ing. Many local governments and com-panies involved in green purchasingactivities have adopted these services.

Production and Plate-makingToppan saves natural resources andenergy by excluding filming and devel-opment processes through the full digi-talization of every stage, from productionof the original manuscript and artworkto plate-making.

Using Environmentally Friendly InksThe new soybean-oil ink developed byToppan contains virtually no aromatichydrocarbon, an organic compoundharmful to both the human body andthe earth’s atmosphere. The Companyhas also commercialized a recycledvegetable-oil ink made from used soy-bean oil collected from school cafete-rias, restaurants, and other sources.

Toppan is spreading the use of envi-ronmentally friendly inks by printing withvegetable oil inks designated by theJapan Printing Ink Makers Association(JPIMA). All products printed with theseinks bear the special “VEGETABLE OILINK” mark from the JPIMA.

Providing Environmentally FriendlyPaperThe selection of printing paper con-tributes greatly to the conservation offorest resources. Toppan’s environmen-tally friendly paper lineup includes tree-free paper, FSC-certified paper, andpaper made with pulp from forest-thin-ning operations.

Waterless Printing SystemThe waterless printing system repels inkwith a layer of silicon instead of a layerof water. This eliminates the use and dis-charge of dampening water, an indus-trial chemical with an organic solventisopropyl alcohol (IPA) component.

Recyclable Methods for Bookbindingand ProcessingFragmentation-resistant hot-melt is anadhesive suitable for use on paper tobe recycled. Besides offering strongcohesion, it can be completely removedfrom printed materials without fragment-ing during recycling. Toppan has alsodeveloped methods for bookbinding andprocessing to confer outstanding recy-clability. With Eco-binding, for example,printed materials can be bound withoutthe stitching wire used in saddle stitching.

Recyclable Printed Materials

The Japan Federation of Printing Industries(JFPI) issued the “Guidelines for recyclable printproductions” in March 2009 to increase thepaper-to-paper recycling rate in cooperationwith relevant industries. The JFPI classifiespapers, inks, and processed materials basedon the component properties that inhibit recy-cling. Once the classification is complete, recy-clability of a printed material is clarified bycombining the various component propertiesthat inhibit recycling.

The usage rate of waste paper for printedmaterials for publication and other purposes iscurrently limited to about 30%. Some printingmaterials degrade the quality of recycled paperor cause problems in the processes to pro-duce them. To enhance the usage rate, it willbe necessary to improve the recyclability of theprinted materials themselves.

Toppan will endeavor to generalize recy-clable printing in cooperation with client com-panies and business partners.

Source: “Guidelines for recyclable print pro-ductions” issued by The Japan Federa-tion of Printing Industries and thePaper Recycling Promotion Center inJapan in March 2009

Printing Materials(papers, inks, and processing materials)

Intended Purposeof Recycled Paper(paper, paper board)

Recyclable PrintedMaterials

Ranking of waste paper recyclability

Rank AFor paper: S For paper board: SDoes not inhibit recycling into paper and paper board.

PaperNewspapers, flyers, magazines, books, etc.

Recyclability AThis printed material can be recycled into paper for printing.

Fully recyclableinto paper

Recyclability BThis printed material can be recycled into paper board.

Fully recyclable into paper board

Paper boardPaper boxes, picture books, cardboard containers, paper tubes, etc.

Rank BFor paper: × For paper board: SInhibits recycling into paper, but not recycling into paper board.

Rank CFor paper: × For paper board: ×Inhibits recycling into paper and paper board.

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

Production

Production

Recycling

Recycling

Enviro

nmentalR

epo

rtE

nvironm

entallyF

riendly

Pro

ducts

andE

nvironm

ent-relatedB

usiness/Co

nservingB

iod

iversity


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

CartocanMeasures taken for the sound nurturingand maintenance of forest resourceshelp to provide habitats for diversespecies. The Forestry Agency of Japanadvocates KIZUKAI-UNDOH (WoodProducts Utilization Campaign), a cam-paign to encourage forest maintenancein Japan by promoting the use ofdomestic lumber, including lumber har-vested from forest-thinning operations.

As a supporter of KIZUKAI-UNDOH,Toppan contributes to the sound nurtur-ing and maintenance of the country’sforest resources by preferentially adopt-ing domestic lumber for the productionof its paper-based beverage container,Cartocan.

To extend the benefits of Cartocan,Toppan established a system for therecycling of empty Cartocans into ECO-GREEN toilet paper in January 2002.ECO-GREEN is made from about 50%used Cartocans. Toppan purchased2,753 cases (60 rolls per case) of ECO-GREEN in fiscal 2008.

Pallets Made with LumberHarvested from Forest-thinning Operations

Since 2007, the Takino CommercialPrinting Plant has participated in thePresents from the Forest—Eco-FriendlyPallet Project operated by FoE Japan,an international environmental NGO.

The purpose of this project is to effec-tively use logs that are too short or toothin to be processed into products byconventional means. The processing ofthese logs into a commodity enablespeople and companies in the forestindustry to supplement their incomes.Many Toppan sites adopt pallets madewith lumber harvested from forest-thin-ning operations with support from palletmanufacturers and logging and pro-cessing companies.

FSC CoC CertificationIn May 2002, Toppan became the firstcompany to acquire the Forest Steward-ship Council (FSC) Chain of Custody(CoC) certification in the field of com-mercial printing in Japan. The Company

subsequently acquired the CoC certifi-cation in the fields of securities printingand publications printing.

Tree-planting ProgramsToppan has been investing and partici-pating in two projects in Australia: theGPFL*1 tree-planting venture to producehardwood chip, a raw material for paper,in Victoria, and the PPT’s*2 hardwoodplanting program in Tasmania.

To help conserve the environment andbiodiversity in these afforested areas,Toppan has acquired a third-party for-est management certification togetherwith relevant companies and seeks toestablish a system to improve the trace-ability of wood products. The Companyhas also been participating in a jointresearch project to develop methods formonitoring CO2 absorption in forests.

And since fiscal 1999, Toppan hasbeen collaborating in research on plan-tation methods as a supporting mem-ber of the Japan Overseas PlantationCenter for Pulpwood.

(Case)

1,4861,717

2,4132,675

1,500

2,000

2,500

3,000

500

1,000

02004 2005 2006 2007

2,753

2008(Fiscal year)

ECO-GREEN Purchasing

The FSC forest management certification systemis a framework to approve responsible forestmanagement under the principles and standardsestablished by the Forest Stewardship Council.The FSC Chain of Custody (CoC) certificationcan only be granted to comprehensive manage-ment systems that effectively ensure that prod-ucts are made of materials from well-managedforests, controlled sources and recycled woodor fiber.

Tree planting by GPFL (upper) and PPT (lower)

*1 Green Triangle Plantation Forest Company ofAustralia Pty. Ltd.

*2 Plantation Platform of Tasmania Pty. Ltd.Using pallets made with lumber harvested fromforest-thinning operations



INP

UT

OU

TPU

T

Environmental Data

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

Material

Energy

Water

Chemical substance

Atmosphere

Waste

Total input (tons)

Paper (tons)

Plastic (tons)

Glass (tons)

Ink, solvent (tons)

Other (tons)

Total energy consumption (1,000 GJ)

Electricity consumption (1,000 GJ)

Fuel consumption (1,000 GJ)

Water consumption (1,000 m3)

Industrial water (1,000 m3)

Municipal water (1,000 m3)

Groundwater (1,000 m3)

Use of rainwater (1,000 m3)

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

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

CO2 emission (t-CO2)

Emission of ozone-depleting substances (ODP-kg)

NOx emission (kg)

SOx emission (kg)

Emission of dioxins (mg-TEQ)

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

Total effluent discharge (1,000 m3)

Public water system (1,000 m3)

Sewage system (1,000 m3)

Underground penetration (1,000 m3)

Onsite evaporation (1,000 m3)

BOD (kg)

COD (kg)

Nitrogen discharge (kg)

Phosphorous discharge (kg)

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

Total generation (tons)

Recycled (tons)

Final landfill waste disposal (tons)

Information &Networks

1,254,972

1,226,404

2,690

1

22,623

3,254

8,327

5,946

2,381

3,585

976

1,284

1,325

37

0

1,831

403,813

892

91,891

294

5

126

2,915

1,176

1,739

10

625

1,271

5,289

1,331

159

0

269,719

265,810

2,210

ElectronicsCategory Chief Component

25,785

38

2,943

7,513

12,465

2,826

10,631

9,336

1,295

11,544

1,765

376

9,403

2

27,247

1,821

456,739

0

35,144

16,073

0

55

10,650

8,654

1,996

1

813

49,511

16,542

16,670

710

391

49,468

45,157

1,879

LivingEnvironment

475,950

285,164

142,823

2

36,591

11,370

6,250

4,571

1,679

2,124

526

781

817

0

30

2,454

334,338

93

90,193

20,334

4

240

1,462

895

567

44

505

4,796

3,243

5,937

657

96

124,428

119,560

2,691

Non-productionSites

0

0

0

0

0

0

812

663

149

356

0

356

0

16

0

4

33,565

0

3,640

1

0

0

344

0

344

0

46

0

0

0

0

0

4,260

3,730

30

Total

1,756,707

1,511,606

148,456

7,516

71,679

17,450

26,020

20,516

5,504

17,609

3,267

2,797

11,545

55

27,277

6,110

1,228,455

985

220,868

36,702

9

421

15,371

10,725

4,646

55

1,989

55,578

25,074

23,938

1,526

487

447,875

434,257

6,810Note: CO2 emissions are calculated by the method specified in the Guidelines for Calculating Greenhouse Gas Emissions from Businesses (2003) from the Ministry of the Environment

of Japan. The calorific value of the primary energy input associated with electricity consumption is calculated uniformly as 0.00983 GJ/kWh. The data for overseas sites, how-ever, are calculated based on other definitions.

■ In-house Green Purchasing Standards and Level of Fulfillment

Copy machines andprinters

PCs

Stationery and officegoods

Product

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

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

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

Purchasing Standard

100%

100%

94.6%

Fiscal 2008

94.5%

100%

99.0%

Fiscal 2007

96.4%

100%

95.8%

Fiscal 2006

Green Procurement and Green Purchasing■Toppan’s Green Procurement Standards (Offset Ink*)

Level 1 Level 2 Fiscal 2008Fiscal 2007Fiscal 2006

*Not applicable to gold, silver, and pearl ink

1. Avoiding the use ofmaterials harmful tothe human body

2. Avoiding the use ofsubstances known togenerate hazardoussubstances

3. Considering chemicalsubstances designatedunder the PRTR law

4. Controlling VOCemissions

Non-usage of substances designatedunder the PRTR law

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

Conforms to the NL restrictions of the Association of Japan Printing InkManufacturers

Non-usage of chloride-based resins

Identification of substances designatedunder the PRTR law (preparing forMSDS)

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

89.1% 86.2% 95.8%

Water and soilenvironments

Enviro

nmentalR

epo

rtE

nvironm

entalData


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

BusinessField

Ecothrough cardPaper IC Card Bulky Waste ProcessingStickerCard for ETC Rewritable PaperUltra-thin DMEco Pack (life-size POPdisplay)Paper Desk Calendar Ecology Calendar Eco POP

Cerap Eco Pack Stand Eco Pack Multipanel Eco Floor Sticker Eco Pack End Panel Eco Pack Stand, Round-type EPOP Eco Pack Multipanel MiniMulticube POPRecycled vegetable-Oil Ink Polyurethane Reactive Hot-MeltNon-Vinyl Chloride LenticularLensDisk Tottokun Series Halogen-free printed wiringboard Anti-reflection film Color filter (resin black matrix[BM])Palladium-plated leadframeLead-free solder coatedprinted wiring board GL Family Standing pouch for refill

Bottled Pouch

Plastic Container Made fromRecycled MaterialsEcogloss (environmentally-friendly gloss finishing)

Recording Media Packaging

TT Paper Can

Neovert Ecotainer

TL-PAK

EP-PAK (EP-GL)

EP-PAK (Al)

Stand-up Laminated Tube

Recyclen Cap

AP Cartons

Micro-Flute

TP-Tray Corrugated Absorber AD-Case

Product

Suitability for disposalUse of recycled materialsResource-saving (reduceduse of materials)Suitability for disposalLong product lifeResource-savingResource-saving (reduceduse of materials)Use of recycled materialsUse of recycled materialsUse of recycled materials,suitability for disposal,energy-savingSuitability for disposalResource-savingReusabilitySuitability for disposalResource-savingResource-savingUse of safe materialsReusabilityReusabilityUse of recycled materialsEasy separation and easydisassemblySuitability for disposal

RecyclabilitySuitability for disposal

Use of safe materialsUse of safe materials

Use of safe materialsUse of safe materials

Suitability for disposalResource-saving (reduceduse of materials)Resource-saving (reduceduse of materials)Use of recycled materials

Resource-saving (reduced useof exhaustible materials), useof recycled materialsResource-saving (reduceduse of exhaustible materials)Easy separation anddisassemblyUse of recycled materialsResource-saving (reduceduse of exhaustible resources)Resource-saving (reduceduse of exhaustible resources)Resource-saving (reducedenergy usage in logistics)Resource-saving (reducedenergy usage in logistics)Resource-saving (reduceduse of materials)Easy separation anddisassemblyResource-saving (reduceduse of energy in logistics)Resource-saving (reduceduse of energy in logistics)Recyclability RecyclabilityResource-saving (reduceduse of materials)

Environmental Point

Packaging

Cartocan Paper Cup Made fromRecycled PaperCup made from Tree-FreepaperBiodegradable Package Cylindrical Paper Cartridges

Coated Barrier Film GL-C Bottle GX film Jar Plus Tray All

GL Film Lined Paper Cup Double-Wall Barrier Cup Oil-Proof Paper Functional Coated Paper In-Mold Barrier Cup Tamper-Evident RecyclenCapEasy peel-off thermo-cap forPET bottlesEcoband Water-based Cold Seal

Biodegradable Plant Pot Barrier Cup (NSP Process) Plastic Clip Notchless Easy-cutContainer (AL type)Recycled PET Clear Case ALUGLASStripping and heat-sensitivelabel for glass bottles Food container made fromheat-resistant paper Paper carton with temperevident closure One-piece occlusion-preventive plug for TL-PAKsSealed paper trayFlexible packaging materialusing paper Clear UV-Blocking FilmInjection-molded articles ofbiomass-plasticsEL-Case

Oil-proof paper for fluorine-free cardboardPaper cup made from pulpfrom forest-thinningGL-compliant back sheet forsolar cellsPaper composite container Pouch-type fragrance containerResource-saving Cartocan(rectangular type)Packaging materials usinglow-migration type adhesivesDelayed-tack label for glassbottles (film type)Cylindrical paper-complexcontainerHigh Resistance FlexiblePouchFolding Pouch (for refilling)In-mold DecoratedComponentsAluminum-free Dead-fold LidMaterial

RecyclabilityUse of recycled materials

Resource-saving (use ofbyproducts)BiodegradabilityResource-saving (reduceduse of energy in logistics)Suitability for disposalResource-savingResource-savingResource-savingEasy separation anddisassemblyResource-savingResource-savingUse of safe materialsRecyclabilityResource-savingEasy separation anddisassemblyEasy separation anddisassemblyResource-savingReduced release of chemicalsubstancesBiodegradabilityResource-savingRecyclabilityResource-saving (reduced energyexpended in manufacturing)RecyclabilitySuitability for disposalEasy separation anddisassemblyResource-saving

Resource-saving

Resource-saving

Resource-savingResource-saving

Suitability for disposalResource-saving

Easy separation anddisassemblyUse of safe materials

Resource-saving

Suitability for disposal, longproduct lifeResource-saving, recyclabilityResource-saving, recyclabilityResource-saving, recyclability

Reduced release of chemicalsubstances, use of safe materialsEasy separation anddisassembly, resource-savingResource-saving

Resource-saving

Easy separation and disassemblyReduced release of chemicalsubstancesSuitability for disposal

BusinessField Product Environmental Point

Securitiesand Cards

CommercialPrinting

PublicationsPrinting

Electronics

Packaging


Environmental Report Environmental Data

■Toppan Printing Co., Ltd. and Production Subsidiaries

■Overseas Subsidiaries

Division/Operational Site

Shiga Plants (Electronics Division/SemiconductorSolutions Division)

Electronics Division (Kumamoto Plant)

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

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

Sakado Site

Information and Communication Division (Ranzan Plant)

Packaging Division (Akihabara Office)

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

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


Takino Plants (Information and CommunicationDivision/Packaging Division)

Gunma Site (including Tatebayashi Plant)

Asaka Plants (Information and CommunicationDivision/Semiconductor Solutions Division)

Toppan Electronics Fuji Co., Ltd.

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

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

Tohoku Division

Technical Research Institute

Hokkaido Division (Sapporo Plant/Chitose Plant)

Electronics Division (Mie Plant I)

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

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

Packaging Division (Sagamihara Plant)


Nishinihon Division (Fukuoka Plant ManufacturingDepartment 1)

Registrar

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JSA

JQA

SAIGLOBAL

JQA

SAIGLOBAL

SAIGLOBAL

SAIGLOBAL

RegistrationDate

Jul. 1998

Nov. 1998

Mar. 2000

Apr. 2000

Oct. 2000

Nov. 2000

Mar. 2001

Feb. 2002

Jul. 2002

Aug. 2002

Oct. 2002

Jul. 2003

Dec. 2003

Jun. 2004

Oct. 2004

Nov. 2004

Mar. 2005

May 2005

Jun. 2005

Jan. 2006

Dec. 2006

Feb. 2007

Mar. 2007

Nov. 2007

Oct. 2008

Group Company/Operational Site

NEC Toppan Circuit Solutions, Inc. (Toyama Plant)

Total Media Development Institute Co., Ltd.

Toppan Forms Co., Ltd. (Hino Plant)

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

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

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

Toppan Prosprint Co., Ltd. (Mito Plant)

Toppan Forms Co., Ltd. (Fussa Plant)

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

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

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

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

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

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

Toppan Prosprint Co., Ltd. (Koto Plant)

Hino Offset Printing Co., Ltd.

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

Toppan Forms Co., Ltd. (Kawamoto Plant)

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

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

Registrar

JQA

JSA

JQA

JCQA

JQA

JQA

JSA

JQA

JQA

JQA

JQA

JQA

JQA

JCQA

JQA

JSA

JQA

JQA

JQA

SAIGLOBAL

Group Company

Toppan Photomasks France SAS

Toppan Photomasks, Inc. (Santa Clara/RoundRock)

Siam Toppan Packaging Co., Ltd.

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

Toppan Printing Co. (America), Inc.

Toppan Chunghwa Electronics Co., Ltd.

Toppan Printing Co., (Shenzhen) Ltd.

Toppan Photomasks Germany GmbH

Toppan CFI (Taiwan) Co., Ltd.

P.T. Toppan Printing Indonesia

Toppan Photomasks Singapore Pte. Ltd.

Toppan Photomasks Korea Ltd.

Toppan Photomasks Co., Ltd., Shanghai

Toppan Printing Co., (Shanghai) Ltd.

Toppan SMIC Electronics (Shanghai) Co., Ltd.

SNP Leefung Printers (Shanghai) Co. Ltd.

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

Shanghai Toppan Printing Co., Ltd.

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

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

Registrar

LRQA

LRQA

MASCI

DNV

DNV

SGS

SSCC

LRQA

SGS

LRQA

LRQA

LRQA

LRQA

CEC

BSI

CCCI

SGS

NQA

MIC

CNAS

RegistrationDate

Oct. 2000

Nov. 2001

Apr. 2002

May 2002

Dec. 2002

Oct. 2003

Dec. 2003

Oct. 2004

Nov. 2004

Nov. 2004

Feb. 2005

Feb. 2005

Feb. 2005

Feb. 2006

Feb. 2007

Apr. 2007

Nov. 2007

Jul. 2008

Jan. 2009

Mar. 2009

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

RegistrationDate

Jan. 1997

Mar. 2001

Jun. 2001

Jul. 2001

Nov. 2001

Oct. 2002

Jan. 2004

Feb. 2004

Mar. 2004

Apr. 2004

Aug. 2004

Dec. 2004

Jan. 2005

Jan. 2005

Mar. 2005

Nov. 2005

Mar. 2006

Aug. 2006

Sep. 2006

Mar. 2009

Environmental Education■Fiscal 2008 Results

New employeetraining

Training for newlyappointed managers

E-learning

Optional training

Challenge School

Internal environmentalauditor training

Education or Training Content

General environmental education(introductory level)

General environmental education(intermediate level)

Environmental issues involvingcorporations and Toppan Groupactivities

Introduction to ISO 14001

Introduction to environment-related laws

Seminar to enhance the skills ofISO 14001 internal auditors

Six courses related to theenvironment

Internal environmental auditortraining program

395

200

0(Sum total:

20,123)

23

23

39

19

140

Number ofTrainees

ISO 14001 Certification (65 systems, 84 operational sites as of April 1, 2009)

■Domestic Group Companies

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

Enviro

nmentalR

epo

rtE

nvironm

entalData


Promotion of Waste Reduction and Recycling (43 plants certified in December 2008)

■Zero-emission Sites (TZERO-08)Energy Type Ratio and Consumption■Ratio by Energy Type for Fiscal 2008

(in terms of caloric value)

Information and Communication Division (Asaka Securities Printing Plant)

Information and Communication Division (Ranzan Plant)

Semiconductor Solutions Division (Asaka Site)

Electronics Division (Mie Plant I)

Electronics Division (Kumamoto Plant)

Toppan Electronics Fuji Co., Ltd.

NEC Toppan Circuit Solutions, Inc. (Toyama Plant)

Electronics Division (Satte Plant)

Electronics Division (Shiga Plant)

Information and Communication Division (Itabashi Site)

Information and Communication Division (Asaka Site)

Sakado Site


Toppan Seihon Co., Ltd.

Packaging Division (Sagamihara Plant)

Toppan Containers Co., Ltd. (Saitama Plant)

Toppan Containers Co., Ltd. (Sano Plant)

Toppan Containers Co., Ltd. (Miyagi Plant)

Toppan Containers Co., Ltd. (Kumagaya Site)

Toppan Plastic Co., Ltd. (Koshigaya Plant)

Toppan Plastic Co., Ltd. (Sagamihara Plant)

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

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

Toppan Decor Products Inc. (Kashiwa Plant)

Toppan Decor Products Inc. (Satte Plant)

Packaging Division (Itami Plant)

Toppan Harima Products Co., Ltd.

Information and Communication Division (Takino Commercial Printing Plant)

Packaging Division (Takino Packaging Plant)

Information and Communication Division (Takino Securities Printing Plant)

Information and Communication Division (Nagoya Plant)

Packaging Division (Matsuzaka Plant)

Mikkabi Toppan Printing Co., Ltd.

Nishinihon Division (Fukuoka Plant Manufacturing Department 1)

Nishinihon Division (Fukuoka Plant Manufacturing Department 2)


Kumamoto Toppan Co., Ltd.

Kannabe Toppan Co., Ltd.

Tohoku Division (Sendai Plant)

Hokkaido Division (Sapporo Plant)

Toppan Prosprint Co., Ltd. (Mito Plant)

Toppan Prosprint Co., Ltd. (Koto Plant)

Fukuren Co., Ltd.

Operational Site Generation(tons)

4,069.8

1,051.6

392.5

5,638.2

11,166.1

180.5

4,238.3

2,612.8

1,993.4

16,514.4

11,121.0

27,063.3

44,962.8

30,901.4

21,182.6

8,941.1

4,144.8

3,589.5

264.6

499.6

121.0

500.9

228.4

3,571.2

5,012.8

10,556.5

639.5

11,993.5

4,888.2

1,200.2

5,290.9

2,485.4

3,244.0

5,391.8

6,005.5

229.1

6,210.3

4,099.0

4,293.9

2,746.3

3,891.4

1,713.1

58.2

Recycled(tons)

4,066.1

1,050.4

383.2

5,637.9

11,097.5

179.3

4,237.1

2,612.8

1,993.4

16,446.5

11,094.6

27,054.2

44,962.8

30,721.6

21,126.2

8,824.2

4,121.3

3,589.5

264.6

499.1

121.0

498.6

228.4

3,571.2

5,012.8

10,436.7

636.3

11,993.5

4,885.0

1,200.2

5,269.6

2,465.5

3,236.4

5,296.2

5,967.5

227.7

6,210.3

4,018.2

4,232.1

2,746.1

3,889.7

1,710.4

58.2

RecyclingRate

99.91%

99.89%

97.63%

99.99%

99.39%

99.34%

99.97%

100.00%

100.00%

99.59%

99.76%

99.97%

100.00%

99.42%

99.73%

98.69%

99.43%

100.00%

100.00%

99.90%

100.00%

99.54%

100.00%

100.00%

100.00%

98.87%

99.50%

100.00%

99.93%

100.00%

99.60%

99.20%

99.77%

98.23%

99.37%

99.41%

100.00%

98.03%

98.56%

99.99%

99.96%

99.84%

100.00%

■Electricity Consumption

■Natural Gas Consumption

■Kerosene Consumption

Purchasedelectricity

74.6%Natural gas22.3%

A fuel oil 1.3%

Kerosene 0.9%

LPG 0.9% Diesel oil and gasoline0.0%

1,182

1,3261,376

1,305

2005 2006 2007 2008 (Fiscal year)

(GWh)

1,500

0

1,000

500

88,333 90,41493,949

85,583

100,000

80,000

60,000

40,000

20,000

02005 2006 2007 2008

(Fiscal year)

(1,000 Nm3)

12,000

10,000

8,000

6,000

4,000

2,000

02005 2006 2007 2008

(Fiscal year)

(kL)

9,968

7,469

5,0334,237

Note: The calorific value of the primary energy input asso-ciated with electricity consumption is calculateduniformly as 0.00983 GJ/kWh.

Notes: •Two criteria were set for certifying operational sites as zero-emission sites in December 2008. 1) For first-timecertification, a site is required to have attained a recycling rate of 98% or over in fiscal 2007. 2) For ongoing cer-tification, a site is required to have attained an average recycling rate of 98% or over during fiscal 2006–2007.

•The performance data above are the results for fiscal 2007. Though its recycling rate has been confirmed to fallbelow 98%, the Asaka Site in the Semiconductor Solutions Division is certified as a zero-emission site. This siteretains the designation because it underwent an assessment for ongoing certification and maintained an aver-age recycling rate of over 98% during fiscal 2006–2007.


Environmental Report Environmental Data

Pollution Prevention and Chemical Substance Management and Reduction■PRTR Results for Fiscal 2008

16

24

30

40

45

46

61

63

64

68

69

108

132

179

207

218

224

227

231

232

299

304

309

310

311

PRTRNo.

2-amino ethanol

Linear alkylbenzenesulfonate and chlorides

Bisphenol A type epoxy resin (liquid)

Ethyl benzene

Ethylene glycol monomethyl ether

Ethylene diamine

ε-caprolactam

Xylene

Silver and water-soluble compounds

Chrome and trivalent chromium compounds

Hexavalent chromium compounds

Inorganic cyanogens compounds

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

Dioxins

Copper salts (water-soluble, except complex salts)

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

1,3,5-tri-methyl benzene

Toluene

Nickel

Nickel compounds

Benzene

Boron and its compounds

Poly (oxyethylene) nonylphenyl ether

Formaldehyde

Manganese and its compounds

Total

Chemical Substance Release

0

0

0

4,643

297

0

0

6,980

0

7

0

0

1,847

4 (mg-TEQ)

411

0

1,060

392,670

0

22

0

32

439

60

16

408,483

Handle

52,525

2,379

1,953

29,069

6,056

5,842

5,080

65,877

1,441

21,477

18,206

3,706

1,847

545 (mg-TEQ)

1,340,171

7,290

6,392

4,252,337

97,020

55,922

8,245

1,781

2,194

39,278

8,928

6,035,016

0

0

0

4,643

297

0

0

6,980

0

0

0

0

1,847

4 (mg-TEQ)

0

0

1,060

392,670

0

0

0

0

439

60

0

407,996

1. Atmosphere

0

0

0

0

0

0

0

0

0

6

0

0

0

0

411

0

0

0

0

22

0

32

0

0

16

487

2. Water

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

3. Soil

13,128

809

586

912

949

5,782

813

970

0

5,965

897

112

0

541 (mg-TEQ)

221,894

2,174

5,011

357,996

0

52,666

0

2

1,712

0

6,011

678,389

Total Transfer

(Unit: kg/year)

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

Atmospheric Emissions■Ratio of Greenhouse Gas Emissions by Type (in tons of CO2 equivalent) ■Fiscal 2008 Results

Fiscal Year

2005

2006

2007

2008

CO2

99.92

99.93

99.93

99.93

CH4

—

—

—

—

N2O

0.08

0.07

0.07

0.07

Total

730,356

785,562

805,109

751,901

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

■Ratio of Greenhouse Gas Emissions by Source (in tons of CO2 equivalent)

Fiscal Year

2005

2006

2007

2008

ElectricityUse

61

64

65

66

Fuel Use

35

31

32

31

WasteIncineration

4

4

4

4

Total

730,356

785,562

805,109

751,901

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

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

Waste paper

Waste plastic

Waste acid

Waste alkali

Waste oil

Sludge

Metal chip

Wooden chip

Cinder

Glass chip

Other

Total

Type ofWaste

229,264

26,738

15,908

13,631

9,150

9,150

4,804

1,931

1,856

554

766

313,752

Generation(tons)

73.1%

8.5%

5.1%

4.3%

2.9%

2.9%

1.5%

0.6%

0.6%

0.2%

0.3%

100.0%

Ratio

99.8%

99.0%

93.6%

95.8%

97.2%

94.5%

99.5%

99.0%

69.0%

99.3%

77.5%

98.8%

RecyclingRate

Recycled paper

RPF, plastic materials

Neutralizer

Neutralizer

Recycled oil, fuel

Roadbed materials

Metal materials

Chip, paper materials

Roadbed materials

Glass materials

—

—

Primary Reusage

Waste Generation and Recycling by Type


Third-party Opinion

The high quality of Toppan’s CSR Reporthas been maintained. The report ranksamong the top in Japan, especially interms of the breadth of informationincluded. Much is to be learned fromthe information reported on the newmanagement systems formed and theachievements of the activities conductedin relation to the environment and tobusiness partners. Yet within the fieldof CSR in general, the reports preparedby Japanese companies have been ofonly middling quality. Japanese society,meanwhile, senses the growing impor-tance of a host of new issues, particu-larly global warming and the need forstable employment amid the rising bifur-cation of its labor market due to theincreased hiring of non-regular employ-ees. Noting these current trends, I hopethat Toppan will further step up its CSRinitiatives and improve the level of infor-mation disclosure. PDCA Review This report includes afairly detailed PDCA review of CSR activ-ities (“Results for Fiscal 2008 and FutureMeasures” on PP. 20–21), a keystone forany CSR report. But from now on, I thinkit will be necessary to rearrange thisreview. The number of organizing activ-ities carried out in accordance with thenumber planned has yet to earn an “A”rating in the Company’s self-evaluation.Toppan must select its activities basedon their materiality for the Company.Does the activity really address animportant social issue? What responsi-bilities does the Company burden as itimplements measures to solve the issue?A host of questions are to be answeredfor the selection. A detailed descriptionof each activity should be included inthe relevant section of the report.Special Reports Toppan selected twotopics. The first is the development of a

genotype analysis system for personal-ized medicine, a potential solution forvarious social issues, particularly in devel-oping countries. The second is a clinicalart therapy to energize the mind throughthe power of art. Both special reportsbring new images of Toppan to light.Negative Information The report accu-rately describes an accident involvingthe leakage of printing solvent, a prob-lem that occurred about a month beforethe report was issued.Stakeholders The report shows theframework of Toppan’s relationships withmajor stakeholders. For new steps intothe future, Toppan should design newmodes of communication. The report,meanwhile, should include descriptionson relationships with more diverse enti-ties, such as research institutions andnational and local governments, amongits stakeholders. I also expect theCompany to expand communicationswith the CSR Promotion Study Group,a body of experts it set up in 2008. Product Life Cycle I think it would bebetter if the report included details on thestatus of complaints about the quality andsafety of products after sales. I would alsolike to learn more about the measurestaken to respond to the complaints andimprove the Company products.Employment and Labor I highly evalu-ate the information on non-regularemployees and expenditures foremployee training and other humanresource development programs. On theother hand, the report fails to providean explanation of the decrease in thenumber of temporary staff. The specificdescriptions of Toppan’s measures toreduce the long hours worked by itsemployees show that the Company haskept up diligent efforts throughout theyear. Toppan should consider present-

ing the numerical changes in total work-ing hours in future reports. Diversity inhuman resources, meanwhile, is becom-ing an issue of increasing relevance inJapanese society. Though Toppan hasbeen promoting positive actions, thenumber of female managerial staff islargely unchanged. Strengthened mea-sures to leverage female talent are nec-essary. One way to take a great leapforward for diversity would be to forman exclusive promotion structure, some-thing akin to a “Diversity PromotionDepartment.” Environment The report indicates theaccomplishments in PRTR-related activ-ities. CO2 emissions have also beensteadily reduced, both as a total amountand as an amount per unit of sales. Fromnow, however, Toppan should set andachieve even higher targets for thereduction of CO2 emissions. We all fore-see the importance of introducing renew-able energy in the future. Companiesshould take the initiative to develop sys-tems to use renewable natural energywhile demanding financial support oradministrative backing from the govern-ment. They should do so both individu-ally and collectively. Toppan can considerfollowing the example of other compa-nies in building an eco factory. Oneintriguing plan would be to build a man-ufacturing plant for solar-cell-relatedproducts that itself runs on photovoltaicpower. I expect Toppan to establishmedium- and long-term targets formarked improvement in its CSR activi-ties to come.

Yoshiki MidorikawaDirector, Green Consumer Research Group

Co-chair, The Valdez Society

ProfileMr. Midorikawa worked for many years in the Kanagawa prefec-tural government in Japan, mainly in labor and consumer admin-istration. After retiring from the prefectural service, he served asExecutive Officer of the Kanagawa Prefecture Small and MediumBusiness Management Association. Mr. Midorikawa’s NGO/NPOachievements include the founding of the Green ConsumerResearch Group in 1991 and participation in The Valdez Society,a body that researches and proposes concepts and solutionsrelated to corporate environmental responsibilities through collab-oration between citizens and companies (Mr. Midorikawa joinedin 1991). He has authored several books in Japanese, includingCSR Practice Methods with Visible Effects (co-authored), CSRManagement (co-authored), and Green Consumer ShoppingGuide (co-authored).



External Assurance

The conclusion of our assurance engagement is stated in ourIndependent Assurance Report. The following summarizesimprovements from the previous year and issues remaining, asidentified in the course of our assurance process.

The “Environmental INPUT/OUTPUT Data by Business Field”on page 72 includes data on Toppan Photomasks, Inc. and itssubsidiaries, entities that were not included in the boundarybefore. The table also covers data in a timely manner on thesecond-half of the fiscal year for SNP Corporation Pte. Ltd.and its subsidiaries, entities acquired by Toppan as consoli-dated subsidiaries upon the completion of acquisition proce-dures in September 2008. The boundary for consolidatedfinancial statements and that for environmental performancedata have thus become more consistent, allowing users tocompare and analyze information more easily. On the otherhand, the boundaries for environmental performance and per-sonnel data on other pages remain relatively limited. The dis-closure of performance data on a consolidated accountingbasis is becoming a commonplace practice in CSR reporting.In light of this, we expect Toppan to consider expanding theboundary in upcoming reports.

Toppan has improved the overall accuracy in the collectionof environmental performance data. Its internal data checkprocedures, however, can still be improved. Each operationalsite could, for example, carry out consistency checks betweendifferent performance indicators before reporting the data tothe head office, and the head office could then verify the con-

sistency and completeness of the reported data by performingcomparative analyses in order to improve the accuracy in datacollection.

In reporting social performance indicators, Toppan disclosesactual results for the topics that it considers material, basedon opinions collected from the meeting of the CSR PromotionStudy Group and other stakeholder dialogue channels. TheCompany also shows quantitative data wherever possible.Toppan is expected to examine the possibility of setting quan-titative targets in the future.

Kazuhiko Saito Senior Manager

KPMG AZSA Sustainability Co., Ltd.(KPMG AZSA & Co. group)

Level of Compliance with GRI Sustainability Reporting Guidelines 2006

Global Reporting Initiative (GRI) is anonprofit organization established toformulate international guidelines forsustainability reporting. Entities of everytype can use these guidelines in theirwork to create their own sustainabilityreports. GRI prepares SustainabilityReporting Guidelines in collaborationwith various stakeholders. The first edi-tion of the guidelines was issued in2000; the third (G3 Guidelines), in 2006.

Toppan understands that intensivestakeholder engagement was requiredto produce the guidelines. For this rea-son, the Company treats the guidelinesas an important reference for under-standing the types of information read-ers want to know.

The G3 Guidelines require reportingorganizations to declare the levels towhich they have applied the guidelines.This ensures that the reporting organi-

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

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

*Please access http://www.toppan.co.jp/english/csr/ for the GRI content index.

Sta

ndar

d D

iscl

osur

es

Report Application Level C+C B+B A+A

Report on a minimum of 10 Performance Indicators, including at least one from each of: social, economic, and environment.

Not Required

Report on:1.12.1-2.103.1-3.8, 3.10-3.124.1-4.4, 4.14-4.15

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

Management Approach Disclosures for each Indicator Category

Report on all criteria listed for Level C plus:1.23.9, 3.134.5-4.13, 4.16-4.17

Respond on each core G3 and Sector Supplement* indicator with due regard to the materiality Principle by either: a) reporting on the indicator or b) explaining the reason for its omission.

Management Approach disclosed for each Indicator Category

Same as requirement for Level BG3 Profile

Disclosures

G3 Management Approach Disclosures

G3 Performance Indicators & Sector Supplement Performance Indicators

Rep

ort E

xter

nally

Ass

ured

Rep

ort E

xter

nally

Ass

ured

Rep

ort E

xter

nally

Ass

ured

OU

TPU

TO

UTP

UT

OU

TPU

T

*Sector supplement in final version



Company Reaction to the Third-party Opinion and External Assurance

For this CSR Report 2009, Toppan hasagain received a third-party opinion fromMr. Yoshiki Midorikawa (director of theGreen Consumer Research Group andco-chair of The Valdez Society) andexternal assurance from KPMG AZSASustainability Co., Ltd. The Companywould like to thank both for the con-crete and stimulating opinions they havedeveloped over their many years ofinvolvement in the publication of thereports. Following is a brief summary ofthe issues to be addressed at Toppanand directionalities for the future.

As CSR initiatives become more com-mon, companies must select and focusmore intensively on the fields that seemto be material for both society and them-selves. Toppan selected its materialtopics in fiscal 2008. The Company willpush ahead CSR activities based onthose topics and disclose information inan easier-to-understand way throughongoing examinations to set moreeffective target values and determine

how to evaluate the progress towardsthe targets.

The boundary of the report is a matterassociated with the expansion of busi-ness areas. Toppan advocates “acceler-ating toward globalization” as an issueon which to focus. In fiscal 2008,Toppan established the InternationalDivision as the spearhead of thisendeavor. Toppan’s expansion in thegrowing Chinese market is handled bythe Company’s existing local productionsites and the operational sites of SNPCorporation Pte. Ltd., a subsidiaryacquired in fiscal 2008. Toppan willsteadily continue its CSR initiatives andexpand the reporting boundary in theyears to come.

On the environmental front, Mr.Midorikawa proposes that Toppan under-take actions for the mitigation of globalwarming, including measures to introducerenewable energy. KPMG AZSA Sustain-ability Co., Ltd., on the other hand,points out the need for more accurate

performance data. Toppan commencedits Pro-Green Activities in fiscal 2008 forthe thorough review and advancementof its environmental management.Through these activities, the Companyseeks once more to measure its envi-ronmental burden and the effectivenessof its actions in precise detail. Toppanwill also perform environmental activitiesto contribute to the simultaneous pur-suit of global environmental conserva-tion and the continuance of business.

The worsening economic conditionsin fiscal 2008 shed light on various prob-lems and possible crises in the globalenvironment and world societies, includ-ing Japanese society. Communicationwith stakeholders is essential for anaccurate understanding of social issuesand an objective evaluation of CSR ini-tiatives. The CSR report is a vital toolfor this communication. Toppan willtherefore reexamine the shaping of theCSR report in careful consideration ofthe opinions it has obtained.

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

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

FAX: +81-3-3835-1447Q1. From what viewpoint did you read this report?

�Customer �Customer (in charge of CSR) �Customer (consumer)�Business partner �Business partner (in charge of CSR) �Shareholder/Investor�Member of a community near a Toppan operational site �NPO/NGO (CSR, environment)�Governmental organization, government-related institution �Media �Student�Employee/Member of employee’s family �Other ( )

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

Q2. How did you find the Toppan CSR Report 2009?�Received it from Toppan �Toppan website �From a Toppan employee �Newspaper �Magazine �Other ( )

Q4. Are there any social issues that you think Toppan should address more actively in the future? (For example: environmental actions; efforts to adapt to the declining birthrate and aging population; support to developing and impoverished countries; fair business activities; respect for basic human rights; consideration for workers; safety and security for consumers; consideration, cooperation, and support for the communities surrounding the operational sites; etc.)

Questionnaire on Toppan’s CSR Initiatives and CSR Report 2009

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

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

A. On the content and quality of activities

1. Excellent

2. More effort required

3. Poor

B. On the content and quality of the information provided

1. Excellent

2. Room for improvement

3. Poor

The cover of this report is printed on ALUGLAS®, a high-brightness sheet from Toppan Prosprint Co., Ltd.http://www.toppan-pp.co.jp/business/index.html (in Japanese)

The body of this report (excluding the cover) is printed via a waterless printing system.

This report incorporates eye-friendly displays and considerations for as many people as possible regardless of individual differences in color perception. Monitors from the Color Universal Design Organization (CUDO), a nonprofit organization, have reviewed and certified this report for its universal design.

© TOPPAN 2009. 10 K I Printed in Japanhttp://www.toppan.co.jp/english/

CSR REPORT 2009 - toppan.co.jp

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