ENVIRONMENTAL REPORT 2003 Toppan Group’S Environmental Conservation Activities Contents

ENVIRONMENTAL REPORT 2003 Toppan Group’s Environmental Conservation Activities Contents

1 Message from the President Editorial Policy 2 Corporate Profile & Scope of the Environmental Report Toppan Printing Co., Ltd. uses its Environmen- 2. The report must be reliable 4 Toppan’s Environmental Vision tal Report as a tool to convey two types The Environmental Reports have been subjected 4 Management Policy & Environmental Activities of important information to stakeholders: the to third-party examinations and independent of the Toppan Group company’s environmental efforts, and the audits since fiscal 2001. 6 Environmental Targets under the Declaration actual environmental burden that the com- on the Global Environment pany’s business activities impose. 3. The report should be easy to understand 8 Toppan’s Environmental Targets & Evaluation In keeping with this purpose, Toppan has In setting the editorial policy and pinpointing of Achievements in Fiscal 2002 closely abided by three editorial guidelines in prospective readers, Toppan referred to a set producing the Environmental Report for 2003. of reporting guidelines issued by the Ministry 10 Feature: Environmental Communication of Economy, Trade and Industry in 2001 (Envi- Exhibition 1. The information in the report should ronmental Reporting Guidelines 2001—With be easy to compare with environmental Focus on Stakeholders). 14 Environmental Management information from other sources The framework and layout adopted in the Activities The company referred to the guidelines below Environmental Report 2002 have been substan- 15 Environmental Management Structure & to facilitate comparisons by business cate- tially revised to improve the readability of this Promotion System gories and business operators: report for 2003. The company has also added 16 Introduction of Environmental Management • Environmental Reporting Guidelines (fiscal year new feature articles and laid the report out in 17 Environmental Management System 2000 version) of Ministry of the Environment a column format to enhance understandability 20 Environmental Accounting • Environmental Performance Indicators for Busi- visually. 22 Environmental Education, Environmental nesses (fiscal 2002 version) of Ministry of the Compliance & Emergency Response Environment Toppan’s Environmental Report is issued annu- 24 Eco-creativity Activities • Environmental Accounting Guidelines (2002 ally, in Japanese and English as a printed mat- 25 Overview of Eco-creativity Activities & version) of Ministry of the Environment ter, in accordance with the one-year period 13 Environmental Claims • Sustainability Reporting Guidelines 2002 of GRI adopted under the Environmental Manage- 26 Development & Evaluation of (Global Reporting Initiative) ment System. The report is also released on Environmentally-friendly Products the internet, where it is regularly updated to 27 Introduction to LCA (Life Cycle Assessment) provide the latest data on environmental per- 28 Toppan’s Environmentally-friendly Products formance by site, Toppan’s progress towards in Daily Life ISO 14001 certification, and more. 30 Promoting Environmentally-friendly Printing Services 32 Development of Environmental Support Environmental Report 2003 Business 34 Efforts to Create a Recycling-oriented Society Period covered Scope of coverage 35 Environmental Communication Column April 1, 2002 to March 31, 2003 Please refer to the Scope of Toppan Group Eco-creativity—AP Carton Notes: • Data on key items may include information Companies in the Environmental Report 2003 acquired through August 2003 as well as (See P.3). 36 Eco-protection Activities future projections. 37 Overview of Eco-protection Activities • Some data previously reported in the Envi- 38 Energy Saving & Prevention of Global Warming ronmental Report 2002 may be corrected or Department in charge of publication 40 Prevention of Pollution & Management of modified in the current report due to revised Please direct inquiries on the contents of this Chemical Substances methods for calculation, or for other reasons. report to: 42 Managing Waste 44 Office Eco-protection Activities Publication details Ecology Center Published December 2003 46 Efforts in Logistics Toppan Printing Co., Ltd. (Tokyo, Japan) (Published annually since fiscal 1998) 47 Environmental Communication Column Phone: +81-3-3835-5549 Eco-protection—Satte Plant Fax.: +81-3-3835-0847 Next scheduled publication E-mail: [email protected] 48 Environmental Communication December 2004 Activities 49 Overview of Environmental Communication Activities 50 Communication inside the Company About the cover 51 Communication outside the Company 52 Working with Local Communities The cover design incorporates the same environmental 53 Social Contributions & Awards motifs condensed into Toppan’s Environmental Logo. The background colors have varied from year to year: 54 Appendix: Business Fields pale brown representing the earth in the fiscal 2000 INPUT/OUTPUT DATA report, green for the trees and grass in fiscal 2001, and 59 Appendix: Toppan’s Environmental pink for flowers and fruits in fiscal 2002. To highlight our Chronology theme of ‘water’ this year, the cover depicts a replenish- ing cycle of water that circulates back to the ocean. 60 Independent Review of Environmental Report & Questionnaire Results Message from the President

As both a corporate citizen and member of society, Toppan Printing Co., Ltd. advocates a recycling-oriented society. From this year, the company introduced the Environmen- tal Efficiency Index, a tool by which to measure our business activities as we work to align the dual goals of business expansion and environmental preservation. The company also continues to establish mid-term targets to minimize environmental burden and pollution while maximizing economic value. These efforts, we believe, represent environmental management in its truest sense. In the years to come, nothing will undermine our commitment to achieve these targets. To heighten environmental awareness throughout the whole of the Toppan Group, this report has been expanded to cover group-wide environmental activities since last year. Our fundamental principle of environmental preservation was first expressed in Toppan’s Declaration on the Global Environment in 1992. Later, the principal took shape as Toppan Vision 21 in 2000. Under this set of definitive environmental policies, Toppan implements three categories of environmental activities: Eco-protection Activities to reduce or eliminate the environmental burden of business activities, Eco- creativity Activities to promote our environmental business through providing envi- Naoki Adachi ronmentally-friendly products and services, and Environmental Communication President & CEO Activities to share eco-awareness with other Toppan Group companies and people outside the Group. The principal targets of our Eco-protection Activities are to save energy and reduce both wastes and the emissions of chemical substances. In order to pinpoint the environmental burden of our business activities, we disclose all environment performance data on our three business fields—Information & Networks, Living Environment, and Electronics. When setting our targets for coming years, we use these data to more effectively reduce the environmental burden of our production processes. Toppan’s Eco-creativity Activities are undertaken to develop more environmentally-friendly features in Toppan’s eco-brand products, as well as to provide higher- quality products and services in general. Through these activities, we hope that customers will understand our policies toward environmental issues. Among Toppan’s various Environmental Communication Activities, I am proud to mention ecollable 2002, Environmental Communication Exhibition, an exhibition organized in November 2002 at the PLAZA21 showroom of the Toppan Koishikawa Building in collaboration with the Nikkei Business Publications Eco Management Forum & Nikkei Ecology and Global Environment Information Centre, with support from Ministry of the Environment. Companies, local governments, and citizen organizations visited the exhibition to discuss the environment and reinforce their recognition of the ongoing need to take cooperative action for environmental causes. For Toppan itself, the exhibition represented an opportunity to hear from a wide sampling of people involved in environmental issues from across the country. Our experience at the exhibition deepened our understanding of the importance of our environmental mission and responsibilities to society. We publish this report in the hopes of informing both customers and the greater public of the intensive efforts of the Toppan Group to conserve the environment. In the future we look forward to receiving your frank opinions and comments, as well as kind guidance and support.

September 2003 Corporate Profile & Scope of the Environmental Report

Corporate name Toppan Printing Co., Ltd. Sales (100 million yen) Consolidated Head office 1, Kanda Izumi-cho, Chiyoda-ku, Tokyo 101-0024 Japan Phone: +81-3-3835-5111 Nonconsolidated 14,000 12,938 12,961 Established January 17, 1900 12,370 12,516 12,000 President & CEO Naoki Adachi 10,000 9,693 9,602 Number of employees 9,191 9,117 (Nonconsolidated) 12,053 (end of March, 2003) (Consolidated) 33,292 (end of March, 2003) 8,000 Capital 6,000 (Nonconsolidated) 104.9 billion yen (end of March, 2003) 4,000 Consolidated Result Non-consolidated Result The business environment has been quite severe in the In spite of ongoing sluggishness in the economic climate, 2,000 printing industry. Though net income has increased and Toppan sought to bring in higher revenues by reinforcing some progress has been achieved in creating new busi- its business structure and promoting businesses that utilize 0 nesses and reducing costs, Toppan’s consolidated sales, its high IT and marketing abilities. Nevertheless, non-con- March term, 2001/3 2002/3 2003/3 operating profit, and ordinary profit all fell below the fiscal solidated sales, operating profit, and ordinary profit fell fiscal 2000 2002 levels. below the previous year’s figures.

Locations of Production Plants (Plants of Toppan Printing and its affiliates*1) *1 Subsidiaries lead by headquarters or business headquarters

Sapporo plant Production plants in Information & Networks Chitose plant Production plants in Living Environment Sendai plant Production plants in Electronics Gunma plant Niigata plant NEC Toppan Circuit Satte plant Solutions Niigata, Inc. Takino plant (Packaging) Asaka plant (Electronics) Fukuzaki plant Mie plant (Since fiscal 2003) Asaka plant (Securities) Toppan Harima Products Co., Ltd. Asaka plant (Commercial Printing) Shiga plant Kansai plant (Commercial Printing) Kashiwa plant (Takino) Takino plant (Securities)

Fukuoka plant No. 1 Overseas Production Plants Kannabe Toppan Toppan Plastic Co., Ltd. Co., Ltd. (Plants of overseas subsidiaries) Fukuoka plant No. 2 Toppan Graphic Co., Ltd. Toppan Containers Co., Ltd. Toppan Saga Yoki, Co., Ltd. An overseas subsidiary, representative office, Itabashi plant or sales office in Toppan Printing Toppan Seihon Co., Ltd. Kumamoto Toppan Co., Ltd. Matsuzaka Sagamihara plant TOPPAN PRINTING CO., (SHENZHEN) LTD. plant Toppan Printing Communications TOPPAN PRINTING CO., (SHANGHAI) LTD. Nagoya plant Co., Ltd. TOPPAN PAP (TAIWAN) CO., LTD. Mikkabi Toppan Ranzan plant Kumamoto Printing Co., Ltd. TOPPAN PRINTING CO. (AMERICA), INC. plant Kansai plant (Commercial Itami plant Printing) (Osaka) Osaka Toppan Display Co., Ltd. Toppan Electronics Fuji, Co., Ltd.

TOPPAN OPTICAL PRODUCTS, INC. (Since fiscal 2003)

SIAM TOPPAN PACKAGING CO., LTD.

PT TOPPAN SAMPOERNA INDONESIA For contact with a specific operational site, TOPPAN PRINTING CO., (H.K.) LTD. please visit the Corporate Profile of our website at TOPPAN CHUNGHWA ELECTRONICS CO., LTD. http://www.toppan.co.jp/english/index.html TOPPAN CFI (TAIWAN) CO., LTD. TOPPAN INTERAMERICA INC.

2 Ordinary profits Net income Number of employees Consolidated Consolidated (100 million yen) Consolidated (100 million yen) (employees) Nonconsolidated Nonconsolidated Nonconsolidated 800 350 35,000 33,379 731 32,163 33,292 694 304 31,610 700 300 291 30,000 635 278 600 250 244 25,000 507 500 494 484 207 214 183 20,000 411 200 400 344 147 150 15,000 13,543 300 13,026 12,748 12,053 100 10,000 200 5,000 100 50 0 0 0 March term, 2001/3 2002/3 2003/3 March term, 2001/3 2002/3 2003/3 March term, 2001/3 2002/3 2003/3 fiscal 2000 fiscal 2000 fiscal 2000

Notes: • Amounts shown were rounded off, discarding figures below the 100 million yen mark. • Consolidated accounting reflects the results of all subsidiaries and affiliates, with consolidated subsidiaries numbering 122 and companies subject to the Equity Law numbering 21.

Scope of Toppan Group Companies in the Environmental Report 2003

Customers

IManufacturing Companies IManufacturing and ISales Companies Sales Companies Toppan Display Co., Ltd. Froebel-kan, Co., Ltd. Toppan Graphic Co., Ltd. Toppan Forms Co., Ltd. Total Media Development Institute

Information & Networks 1 other company Toppan Graphic Communications Co., Ltd. Co., Ltd. ∗Tosho Printing Co., Ltd. Toppan Travel Service Co., Ltd. ∗ Toppan Seihon Co., Ltd. Tokyo Magnetic Printing Co., Ltd. Toppan Printing Co., Ltd. Toppan Multisoft Ltd. Toppan Graphic Arts Co., Ltd. Toppan Printing Co. (America), Inc. 18 other companies 16 other companies Toppan Printing Co., (H.K.) Ltd. ∗Toppan M & I Co., Ltd. ∗Hino Offset Printing Co., Ltd. Toppan Printing Co., ∗Tokyo Shoseki Co., Ltd. 2 other companies (Shenzhen) Ltd. 3 other companies Hamamatsu Toppan Forms Co., Ltd. Toppan Printing Co., (Shanghai) Ltd. Toppan Printing Co. (Australia) 10 other companies 3 other companies Pty. Ltd. T. F. Company, Ltd. 5 other companies ∗Korea Toppan Forms Co., Ltd. 6 other companies

IManufacturing Companies IManufacturing and (Manufacturing and sales company) ISales Companies

Living Environment Sales Companies Toppan Plastic Co., Ltd. Toppan Cosmo, Inc. Toppan Kansai Packs Co., Ltd. Toppan Label Co., Ltd. 1 other company Toppan Saga Yoki, Co., Ltd. Toppan Containers Co., Ltd. Mikkabi Toppan Printing Co., Ltd. Tamapoly Co., Ltd. 19 other companies ∗Toyo Ink Mfg. Co., Ltd. Tama Processing Co., Ltd. 2 other companies 2 other companies PT Toppan Sampoerna Indonesia ∗Tama Processing Toppan Interamerica Inc. (Private Limited Company) 3 other companies

IManufacturing Companies IManufacturing and ISales Companies

Electronics Niigata Toppan Printing Co., Ltd. Sales Companies Toppan Chunghwa Electronics Co., Ltd. Toppan Shiga Seimitsu Co., Ltd. NEC Toppan Circuit Solutions 2 other companies Niigata, Inc. NEC Toppan Circuit Solutions Niigata, Inc. 5 other companies Toppan Electronics, Inc. 3 other companies Products Raw materials Service Notes: • No symbol: Subsidiary—122 companies; ∗(asterisk): Affiliate—21 companies (March 31, 2003) • While Toppan’s business operations activities are actually divided into five fields, only three main categories are presently adopted for consolidated environmental accounting. This decision was made in view of the actual scale of sales. • Among Toppan’s subsidiaries, Toppan Forms Co., Ltd. is listed on the First Section of the Tokyo Stock Exchange. • The scope of the environmental performance data and environmental accounting is determined based upon the importance of each subsidiary in terms of environmental conservation.

3 Management Policy & Environmental Activities of the Toppan Group Toppan’s future role is that of a model global citizen and printing company that focuses closely on fulfilling its responsibilities of sorting information and conveying culture. It places top priority on the environment in its business management and promotes its environmental activities in all facets of its business.

opnsEvrnetlVision Environmental Toppan’s Toppan—Information an information communication industry. related to safety and the environment, and Communication Industry This represents a series of challenges for to comply strictly with company ethics as Roles as an “information the company. responsible members of society. communication industry” These policies are clearly described in Since its foundation in 1900, Toppan Print- TOPPAN VISION 21 the Corporate Creed. The company is con- ing Co., Ltd. has established high grades of The centennial anniversary of Toppan in tinuously taking appropriate measures to technology and knowledge in plate-mak- 2000 was proclaimed as the Second Renais- fulfill its social responsibility. This is a stance ing and printing, with ever deepening ties sance of the company. To mark the event, shared by all Toppan employees as they go to information, lifestyle, and culture. Hav- the company announced its Toppan Vision about their daily business. ing crossed over into the 21st century, the 21, a statement of corporate concepts and company is now applying its most sophisti- business fields. Under the policy enunciated Declaration on the Global Environment cated knowledge and technology in print- in Toppan Vision 21, employees throughout In 1991, Toppan established the Ecology ing to new uses for the next generation. the company shall work to establish new Center and assigned it the role of control- With printing as its core, Toppan fuses all technologies and business with a shared ling environmental activities. The following types of rich communication together into sense of purpose, to promote activities April, the company promulgated Toppan’s

Toppan’s Management Policy Toppan’s Business Fields TOPPAN VISION 21

Internet Development and sales of content Corporate Philosophy distribution network Personal Wireless LAN connection services Services In-house Entrepreneurial Business Each of us shall reciprocate Ventures Establishment of character pro- P.58 our customers’ continued trust, duction, counseling and mental health services companies create dedicated products by harnessing our vibrant knowledge and technology, and contribute to a fulfilling lifestyle as a mainstay of information and culture.

Electronics Business

P.57 Toppan shall continue to play a central role in supporting information Electronics Design and manufacturing electronic components and devices; manufacturing LSI (large-scale and culture as a leading information integrated circuit) package-related products, including photomasks and lead frames, shadow communication company. masks for CRTs, color filters for LCDs (Liquid Crystal Displays), and printed wiring boards

4 Declaration on the Global Environment, a tal policy. In September 2000, this Dec- Toppan Corporate Creed comprehensive environmental philosophy laration was actually modified in several 1. To build our customers’ trust through sincer-

appended with explanations of methods comprehensive efforts to revamp the man- ’ ity, enthusiasm, and creativity in all our cor- Vision Environmental s to be used to translate that philosophy into agement policy. More specifically, Toppan porate endeavors. actions. Since that time, the declaration has has regularly reviewed the Environmental 2. To strive for total innovation from a global guided the efforts of all employees as they Action Plan, refined the company’s Envi- perspective by conducting marketing and technological development rich in originality. work together to advance Toppan’s environmental Targets as an index of environ- 3. To conduct fair and open business operations ronmental activities. mental management, and adopted the while acknowledging our social responsi- Toppan is now developing the informa- targets as commitments for the continuous bilities and aspiring for harmony with our global environment. tion communication industry in five busi- improvement of the company’s activities. 4. To create a positive working environment ness fields newly specified in Toppan Vision by maximizing our individual talents and 21. As Toppan undertakes its activities in all strengths as a team. these business fields, its efforts are based 5. To enhance our corporate standing and pro- on Toppan’s Declaration on the Global Envi- mote the continual development of the Toppan group through the exploration of ronment as a comprehensive environmen- new possibilities.

Securities and Cards Producing various types of securities (share- certificates, bonds, gift vouchers, etc.) and Information cards (credit cards, prepaid cards, etc.) & Commercial Printing Networks Producing various types of commercial printed P.55 materials such as advertising tools (catalogs, pamphlets, flyers, posters, calendars, etc.) Publications Printing Producing a variety of publications, including magazines, books, encyclopedias, dictionaries, and art books

Packaging Vibrant Producing packaging materials, including cardboards, paper ware, plastic films, plastic containers, Knowledge and Living different types of cups, and paper Environment containers for liquids Technology Industrial Materials P.56 Producing industrial materials, including various sheets for the interior decoration of houses and shops, wallpapers, woodwork products, building fittings, and flame- retardant materials for interiors and exteriors

Environmental conservation policies in all business fields

Next-generation Declaration on the Global Environment Products P.58

5 Environmental Targets under the Declaration on the Global Environment Toppan specifies a concrete action policy on the basis of its Environmental Action Plan to achieve the targets of the Declaration on the Global Environment. The company has also reviewed and established Medium- and Long-term Environmental Targets, and Environmental Targets for the current every fiscal year.

Toppan Development of the Declaration Targets and Environmental Targets for the tal Manager evaluates the results, reviews on the Global Environment current fiscal year. The company expands the Medium- and Long- term Environmen-

’ Environmental Action Plan and its environmental activities through its tal Targets, and sets up specific environ- niomna Vision Environmental s Environmental Targets business activities that comply with Decla- mental targets for the following year. Toppan specifies a concrete action policy ration on the Global Environment Toppan. When social trends to do with the environ- for all business fields on the basis of its The company considers one fiscal year ment undergo significant changes, the Environmental Action Plan to achieve the as one cycle for its environmental activities company may revise the Declaration on the targets of the Declaration on the Global and reviews its environmental activities Global Environment in the interests of con- Environment. within that time frame. Once records on tinual improvement. The Environmental Action Plan specifies the activities for the year are collected at Medium- and Long-term Environmental the Ecology Center, the Chief Environmen-

Toppan’s Environmental Action Plan

Toppan’s Declaration on the Global Environment Activities

1 Employee education & development Each of our employees recognizes Social the importance of global environmental Responsibility issues and endeavors to conserve the Social contribution global environment.

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

3 Eco-protection Activities Sorting waste & recycling We abide by laws and social order, striving to prevent environmental pollution.

Prevention of environmental pollution 4 Through our business operations, we actively support our customers’ activities Management of chemicals to conserve the global environment.

5 Commitment to Eco-creativity Activities In our research, we endeavor to develop products and technologies that help Eco-creativity Activities conserve the global environment. Planning, research, and development of environmentally-friendly products and technologies 6 We implement corporate activities designed to further global conservation Conservation of the global environment in the context of an international society. at overseas operational sites Global Response

*Partially applicable to overseas production plants. Not applicable to independent subsidiaries. 6 Toppan’s Environmental Vision 7 checked by → measures by energy-saving activities and fuel → s Green Procurement Standard: 5 point increase (compared to fiscal ’ sales amount) unit) → → emissions: Maintenance of fiscal 2000 levels 2 Review of Medium- and Long-term Environmental Targets by December 2003 Review of Medium- and Long-term (internal amount Review of Medium- and Long-term Environmental Targets by December 2003 Review of Medium- and Long-term (absolute figure Sales proceeds from Environmental-related Activities: 115.0 billion yen (10% increase compared to fiscal 2002) in-house environmental audit overseas ∗ (Information & Networks, Living Environment, Electronics) replacement ∗ 2002) Relevance ratio to Toppan Emissions of dichloromethane into the air: 10% reduction (compared to fiscal 2002) Emissions of toluene into the air: 40% reduction (compared to fiscal 2002) Expanded site report publishing plants: 9 plants Realization of zero-emission sites: 20 sites Compliance and review of in-house control standards in all operational sites Final waste landfill disposal: 10% reduction (compared to fiscal 2002) Final waste landfill disposal: 10% reduction (compared Expanded e-learning system (members: 5,000 employees) and operation of environmental management systems at 11 production plants Introduction Sales of unit energy consumption: maintain fiscal 2000 levels Sales of unit energy consumption: maintain fiscal 2000 Environmental communication through participation in Eco Products 2003 Deploy recycling plants for Cartocan (paper-based beverage containers) in plants located in Tokyo region audits: 3 plants in Asia and 2 plants in the United States In-house environmental Compliance with local regulatory standards, monthly report on environment-related information Funding of forestation activities and participation in forest protection fund (continued) Funding of forestation activities and participation in forest CO Development of LCA evaluation of environmentally-friendly products in 3 business fields Registration of 3 more environmentally-friendly products (total: 60 products) compared to fiscal 2002) Sales proceeds from Environmental Business: 53.5 billion yen (10% increase R R R R R R R R R R R R R R R R R R R R Revise the definition of unit energy Revise the definition consumption Environ- Revise Medium- and Long-term Activities mental Targets for Eco-creativity environmental Set sales targets for businesses Environmen- Set Medium- and Long-term manage- tal Targets for environmental ment systems overseas W W W W emission by 2 the Green Standard guideline 16 for the medium and long 16 for the medium — conventions, etc. overseas production plants disclosure environmental information technologies, products, and services for the Printing Industry landfill disposal by fiscal 2010 operational sites by fiscal 2010 through the effective use of industrial waste generated in production the legal regulations fiscal 2005 consumption by fiscal 2010, per unit of internal production emissions by fiscal 2005 contribution to the cause of environmental conservation issues and the promotion of corporate-wide activities to issues and the promotion of corporate-wide activities preserve the environment fiscal 2010 Compliance with local regulations, international Establishment of environment management systems in Development of environmentally-friendly products and Expanded proposals on environmentally-friendly printing Expanded environmental communication activities Participation and operation of 90% reduction (compared to fiscal 2000) of final waste 90% reduction (compared to fiscal 2000) of final waste Realization of zero-emissions target in all domestic Compliance with in-house control standards that embody Realize zero-emission of dichloromethane by the end of 30% reduction (compared to fiscal 2000) of unit energy 30% reduction (compared to fiscal 2000) of unit energy 90% reduction (compared to fiscal 2001) of toluene Voluntary participation in social activities and active Appropriate communication with stakeholders 7% reduction (compared to fiscal 2000) of CO Enhanced employee awareness regarding environmental Enhanced employee awareness regarding environmental R R R R R R R R R R R R R R R R Medium- and Long-term Environmental Targets Environmental targets for fiscal 2003 Create Medium- and Long-term Environ- Create Medium- and Long-term mental Targets to reduce toluene and dichloromethane emissions into the air Environmental targets for fiscal 2003 Environmental targets for fiscal Based upon the achievements new environmental 2002, Toppan set 36 targets within fiscal terms, and 20 to be achieved condenses the 2003. The following table the targets for main objectives in setting fiscal 2003: W Toppan’s Environmental Targets & Evaluation of Achievements in Fiscal 2002 Toppan set a total of 18 environmental targets for fiscal 2002 and undertook various programs and activities to attain them. This chapter describes and evaluates the company’s achievements and activities for the year. From fiscal 2003, Toppan has also incorporated the Environmental Efficiency Index to achieve environmental management.

Toppan Achievements in fiscal 2002 energy consumption. The major obstacles tion fell short of the company’s target. The Evaluation of Toppan’s progress to CO2 reduction were the construction company still faces difficulty in introducing in achieving its environmental targets ’ and extension of production plants, and toluene alternatives in the production of niomna Vision Environmental s Toppan laid out a total of 18 environmental the introduction of new equipment and some of its products. targets for fiscal 2002 (one of the targets environmental conservation systems for In spite of the severe economic condi- was added after reviewing in December) new businesses. In the current fiscal year tions for the year, new registrations of and undertook various programs and activ- Toppan will be establishing a special environmentally-friendly products under ities to attain them. As of the end of the group-wide division to speed up the mea- Toppan’s Eco-creativity Activities gener- year, 13 of the targets were reached and sures taken to achieve these targets. ated approximately 48.6 billion yen in sales, five were missed. The company’s expanded zero-emission marking an almost 9% increase compared For the second year running, the com- activities significantly reduced the amount to fiscal 2001. Though several targets were pany failed to achieve two Environmental of final waste landfill disposal. Toluene not achieved, the company was therefore Targets set to curb CO2 emissions, one emissions were reduced by around 20% deemed to have made steady progress for directly and one through reductions in from the fiscal 2001 level, but this reduc- the year. In the area of Environmental com-

Progress Check Sheet on Environmental Targets for Fiscal 2002 Toppan’s Declaration on the Global Medium- and Long-term Environmental Targets Environmental targets for fiscal 2002 Environment IEnhancement of employee awareness and knowledge of environmental issues and the promotion of corporate-wide activities to preserve IRestructuring the system for environmental education Declaration 1 the environment Social Responsibility IVoluntary participation in social activities and active contributions to IParticipation in forestation activities the cause of environmental conservation

I30% reduction (compared to fiscal 2000) of unit energy consumption by IUnit energy consumption: Maintaining fiscal 2000 levels fiscal 2010, proportioned to the financial amount of plant production

I7% reduction (compared to fiscal 2000) of CO2 emission by fiscal 2010 ICO2 emissions: Maintenance of fiscal 2000 levels

I90% reduction (compared to fiscal 2000) of final waste landfill disposal IFinal waste landfill disposal: 10% reduction compared by fiscal 2010 to fiscal 2001

Declarations 2 & 3 IRealization of zero-emissions target in all domestic operational sites by fiscal I Eco-protection 2010 through the effective use of industrial waste generated in production Realization of zero-emission sites: 15 sites Activity ICompliance with in-house control standards, exceeding the legal I regulations Review and establishment of in-house control standards

IEmissions of toluene: 30% reduction compared to fiscal 2001 IAppropriate management of chemical substances and the reduction of toxic chemical substances IEmissions of dichloromethane: 10% reduction compared to fiscal 2001

IActive proposal for proprietary technologies, products, and services to ISales proceeds from environmental business: 12.1% increase our customers compared to fiscal 2001

IActive cooperation to serve the needs of our customers and society IDisclosure of environmental-related information

IInvolvement in businesses that can contribute to environmental IReinforcement of efforts for Environmental Support conservation through Toppan’s own environmental activities Declarations 4 & 5 Business Eco-creativity IContinued operation and promotion of a recycling IPlanning and proposals for community-based recycling systems Activity system for printed materials

IIntroduction of Green Procurement I Promotion of corporate activities that take into account in-house IExecution of LCA (Life Cycle Assessment) of product planning, production processes, and the final disposal of environmentally-friendly products: 1 case products IIncrease of registered environmentally-friendly products

IIn-house environmental audits at overseas production ICompliance with local regulatory standards, international conventions, etc. Declaration 6 plants: 5 plants in Asia Global IIntroduction of environmental management system at Response I Active promotion of local environmental conservation activities 9 overseas production plants

Note: Partly applied to overseas production plant. Not applicable to independent subsidiaries.

8 munication, the participation in Eco-Prod- targets will continue in full force. Toppan IDefinition of Environmental Efficiency ucts 2002 and the hosting of the Environ- Moreover, Toppan will bring in its new Environmental Economic value = mental Communication Exhibition 2002 Environmental Efficiency Index to assess ’ efficiency Environmental burden Vision Environmental s were both successful. progress in the company’s continuous IToppan’s Orientation of development of environmental manage- Environmental Efficiency Review from evaluation result and ment. Examination results on environmen- One of the means for assessing progress introduction of Environmental tal efficiency, including secular changes, of environmental management 1. Guideline for setting targets to Efficiency Index will be reflected in environmental progress promote environmental activities Toppan reviewed its Environmental Action management. The company will imple- 2. Factor for assessing progress of Plan for fiscal 2003 based on the evaluation environmental activities by ment a trial in fiscal 2003 and set up new comparing secular change result of environmental targets (See P.6 and environmental targets in fiscal 2004. IToppan’s Indexes P.7). The company reviewed six Medium- 1. Improvement efficiency of environmental burden and Long-term Environmental Targets and 2. Economic efficiency of set another four. Activities to achieve those environmental burden 3. Eco-business index 4. Logistics index See P.39

Evaluation criteria S: Achievements significantly above target A: Target fully accomplished B: Tackled actively, but missed the target C: Insufficient effort

Progress made and present status in fiscal 2002 Evaluation Page in report

IIntroduction of e-learning system to the environmental education system: A P.22 499 employees finished (99.8% course completion)

IDonation to the Global Citizen’s Forest fund for tree planting activities: 1.305 million yen A P.53 IContribution to the forestation joint company (continued)

I5.1% increase compared to fiscal 2000 level (absolute energy consumption: 5.6% increase compared to fiscal 2000 level, 14.942 million GJ) C P.38–P.39

I3.7% increase compared to fiscal 2000 level: 655,000 t-CO2 C P.38

I16.7% reduction compared to fiscal 2001 level: 14,021 t S P.42–P.43

IZero-emission accreditation sites: 17 sites A P.43 ∗12 sites based on reviewed standards (recycling rate 95% → 98%)

IConfirmation by in-house environmental auditing for compliance with the in-house A P.18 control standards at 50 operational sites

I19.9% reduction compared to fiscal 2001 level: 5,343.2 t B P.41 ∗Calculations based on the production plants that achieved 1.0 t or greater toluene per year

I21.1% reduction compared to fiscal 2001 level: 25.6 t A P.41

I8.9% increase compared to fiscal 2001 level: 48,576 million yen B P.28–P.34

IOrganizing and hosting the Environmental Communication Exhibition 2002 S P.10–P.13, P.51 IDisclosure of information through participation in Eco-Products 2002

IContinued investigation and research B P.32–P.33

IIn-house deployment of the Cartocan recycling system A P.34

IInvestigation of suitable products for Toppan’s Green Procurement Standard A P.45

IExecution of LCA on clear deposition film A P.27

INew registration of environmentally-friendly products: 8 products (total 57 products) S P.26, P.28–P.29

IExecution of in-house environmental audits at overseas production plants: 5 plants in Asia A P.19

IISO 14001 certification: 3 production plants A P.19

9 Feature: Environmental Communication Exhibition New communication to forge links outside the company Toppan holds practical environmental and community events for participants from companies, local governments, and citizen groups in order to provide hints on environmental issues and establish resource networks. The company also works toward the creation of a sustainable society by encouraging its members to communicate and collaborate with parties outside the company as it introduces its environmental business.

From November 11 to 29 in 2002, Toppan held the ecollable 2002 Environment Com- munication Exhibition at the PLAZA21 showroom of the Toppan Koishikawa Building (in collaboration with Nikkei Business Publica- tions Eco Management Forum & Nikkei Ecol- ogy and Global Environment Information Centre, and sponsored by Ministry of the Envi- ronment). This was the second exhibition in the series following the Environmental Com- munication Exhibition 2000 held in the same q w plaza in autumn 2000. er

q A Visual History of Society and the Environment—on the relationship between society and the environment w New Society System—on methods to create a sustainable society A Japanese-language abstract of the seminars held at the first exhibition (Environmental Communication e Exhibition of the information and publication fields—on the development of environmentally-friendly ink and Exhibition 2000—ecollable) is available. bookbinding adhesive Presenters: Lester Brown, Ryoichi Yamamoto, and others r Exhibition of environmentally-friendly products in the packaging field

10 t i ecollable (What does it mean?)

Ecology (a sustainable, ecologically sound society) y

Collaboration (through collaboration)

Able u (can be achieved)

A sustainable, ecologically t Commemorative photograph with “Green Santa Claus,” an ambassador of “environmental sound society can be achieved goodwill” from Denmark through collaboration y Exhibition of approximately 300 environmental reports issued by Japanese companies u “ecollable city”—Toppan’s vision of a Utopian city in complete harmony with its environment i The exhibition saw many visitors daily

Exhibition Contents Total Visitors ecollable Zone as “Society and Environment” 2,359 Other I Visual History of Society and the companies Environment (a chronology) I Advanced activities of companies, 40% governments, and citizens

Business & Collaboration Zone Visitor profile Status of Environmental Activities Students and I Growing eco-material the general I “New society system” to create a public sustainable society 2% I “Forestation” to preserve an Toppan Printing environmental asset Co., Ltd. Other companies I Communication to promote 50% in the Toppan Group environmental activities 8%

The exhibition was conceived as a showcase and forum for common environmental Comments from Visitors A Word from agenda that require the collaboration of com- the Coordinator panies, governments, and citizen groups. • Toppan has a strong environmental aware- Yuko Yamamoto Actual products were exhibited in the (Environmental Solutions ness and powerful environmental technolo- Team, Commercial Printing ecollable Zone (a zone with practical exam- gies. I’m looking forward to Toppan’s future Division) ples of environmental concepts) and the expansions in environmental activities, espe- Business & Collaboration Zone (a zone with cially in environmental support businesses. practical examples of environmental activi- (Newspaper) ties). As a supplementary activity, Toppan also Visitors to the ecollable Exhibition offered held seminar workshops on the following • I learned a great deal about the good works many helpful comments, suggestions, and themes: and environmental commitment of many questions. I learned a great deal on every day •The Environmental Brand of companies, companies. In the future I think they should of the event. •Eco-material, make more of an effort to hold exhibitions By lucky accident, Green Santa Claus and •Environmental Report Analysis, like this for the public. (Local government) TV crews showed up at the event. This added •Practical Examples from Environmentally entertainment value to our environmental Advanced countries, and other topics. • When it comes to environmental activities, communication event. We would like to To energize the exhibition and lift spirits, the printing industry is far, far ahead of my extend our thanks for the cooperation and the event featured Green Santa Claus, a jolly industry. (Electronics manufacturer) visits of the companies, associations, and environmental conservationist who moon- general visitors for coming. All of us at Top- lights as an ambassador of environmental • Environmental communication is an impor- pan will be taking up the ecollable concept in goodwill. Toppan will continue to organize tant, near-future task for my company. My our future environmental activities. presentations under the ecollable concept. experience here will serve as a very good reference. (Ad agency)

11 Seminars at ecollable 2002 Introduction of three of five seminars

Future Visions and Strategies for Environmental Management in Northern Europe An introduction to the activities of two environmentally progressive countries, Sweden and Denmark

The first of the seminars was entitled “Future *The Natural Step is a globally active environmental education founded in 1989 by Dr. Karl-Henrik Robèrt, Dreaming of a Green Christmas Visions and Strategies for Environmental Man- a specialist in childhood cancer. The organization agement in Northern Europe—Environmental holds that corporate environmental action represents Green Santa stopped by for a visit at the Education and Environmental communica- not just the fulfillment of social responsibility, but a PLAZA21 showroom on November 21, 2002 to survival strategy and a means to establish competitive tion.” The purpose was to introduce concepts advantage. trumpet the causes of environmental conser- and activities to achieve a sustainable society vation forest protection as a goodwill ambassador (guardian of the green forest) from in companies and local governments in Swe- Denmark, an environmentally progressive coun- den and Denmark, two environmentally pro- try. In keeping with the seminar theme, the gressive countries. Sachiko Takami, the director advanced environmental protection activities of a nonprofit organization (NPO) known as in Northern Europe, he presented visitors with The Natural Step*, gave a presentation on the lotus flower seeds on a card with a brief message on environment and forest pro- concepts and activities undertaken by her tection. Visitors warmly organization to achieve a society capable of welcomed Green Santa. conserving the environment while sustaining steady economic development. The presentation also included detailed descriptions of advanced environmental strategies and the methods for adopting them in Japanese Sachiko Takami delivered a highly understandable lecture companies. with concrete examples

Red-pencil the Environmental Report! Put on your editors caps and make your own changes and comments to the environmental report

This was a hands-on editorial workshop where “checked” the report based on their personal participants made their own changes to the criteria and exchanged opinions. Through their Asahi Breweries’ Environment Communication thorough readings, the participants gained a Report 2002. The event was held for the sec- fuller understanding on the content, format, ond year in a row in the “ecollable café” (the understandability, and other features of the eco-products organizer project zone) in col- report. The shrewd and compelling topics laboration with the event facilitator, Hideto posed by Kawakita roused a spirited exchange Kawakita, director of IIHOE (International Insti- of opinions. tute for Human, Organization and Earth). After responding to the facilitator’s questions on personalized answer sheets, the participants Hideto Kawakita’s smooth facilitation and performance were a delight to workshop participants

Final Seminar Defining and realizing environmental communication

The final seminar, basically a wrap-up and that “Environmental management is a set of summary for the whole exhibition, included comprehensive creative activities for compa- presentations with wise messages from two nies. Communication should be approached guest speakers Norio Fukao (chief editor of from the points of co-understanding, co-con- Nikkei Ecology) and Tsutomu Iijima (represen- necting, and co-supporting. Most important tative of CO-WORKS). In comments on the of all, we have to enjoy communicating.” Both overall concept of communication, Fukao presenters offered concrete examples to illus- advised listeners to “Make allies in your com- trate their opinions. panies. Talk with various people in various sit- uations. Make sure you know what we communicate, and why.” Iijima also opined Tsutomu Iijima (left) and Norio Fukao (middle) enlighten listeners on the essence of communication

12 Environmental Communication in Other Areas

Hokkaido Division

PLAZA21 (Osaka)

PLAZA21 (Tokyo) Tokyo Big Sight

ecollable 2003 Environmental Eco Products 2002 Toppan Communication Fair Communication Exhibition Tokyo Hokkaido Osaka Toppan followed up the Tokyo seminar with Toppan exhibited its products at the Eco Toppan Communication Fair was held from an ecollable 2003 Environmental Communi- Products 2002 convention held from Decem- July 2 to 5, 2003 to commemorate the cation Exhibition in Osaka. This was the first ber 5 to 7, 2002 at Tokyo Big Sight (organized completion of the Hokkaido Division’s new Toppan seminar held in the Kansai region by The Japan Environmental Management headquarters. since the Toppan Environmental Exhibition Association for Industry and Nihon Keizai The exhibition highlighted four strengths 2000, held three years ago (from January 22 Shimbun, Inc.). of Toppan’s latest products: brand power, cre- to 24, 2003 at TOPPAN PLAZA21 KANSAI). Toppan positions Eco Products 2002 as a ativity, technology, and applicability to next- The exhibition showcased various exam- good opportunity to introduce its environ- generation solutions. ples of Toppan’s involvement in environmen- mental activities to all stakeholders, a very At the fair’s Ecology zone, Environmental tal communication and related activities, in important mission for the company. Management, Eco-protection and Eco-creativ- order to encourage visitors to consider envi- To enlighten visitors on the scope of appli- ity Activities were introduced with a focus on ronmental issues more deeply and take their cation, Toppan divided its exhibits of envi- environmentally-friendly products. own actions. ronment-friendly products and services into Many visitors and corporate companies Exhibition visitors learned the concepts of three categories: indoors, shops and outdoors. who visited the zone gained a deeper under- environmental business, as well as details on Many visitors commented, “It was amazing standing of Toppan’s environmental commu- the status of environmental activities conducted to learn how many of Toppan’s environmen- nication activities. jointly by Toppan and corporate customers. tally-friendly products I actually encounter in daily life.”

The environmental activity exhibits provided by Toppan Visitors appreciated the exhibitions of environmentally- Besides environmentally-friendly products, the exhibits and corporate customers were highly rated for their nuts- friendly products on display in each living category, as well featured educational materials and books related to and-bolts approaches and plenitude of concrete examples as Toppan’s comprehensive coverage of the products Toppan’s broad-based environmental activities

13 Environmental Management Activities Toppan has built up an efficient environmental management system to use as the basis for all of its environmental activities. This chapter gives a detailed overview of Toppan’s management system and discusses its effectiveness and areas to be improved.

Plan Environmental targets for niomna Management Environmental plants

Action Do Review by plant Environmental management activities

Plant

Check Environmental auditing Plan Plan Environmental Environmental targets for targets for department department

Action Do Action Do Review by department Environmental Review by department Environmental management activities management activities Sales and R&D Department Sales Promotion Departments Check Check Environmental auditing Environmental auditing

Activity Topics for Fiscal 2002

TOPIC 1 TOPIC 2 TOPIC 3 ISO 14001 certification e-learning adopted for Toppan Group Environment at three overseas production environmental education Meeting to build up the plants Group’s environmental management structure

In fiscal 2002, Toppan obtained To better provide environmental Toppan commenced the Toppan ISO 14001 certification at three knowledge for all employees, Group Environment Meeting from overseas subsidiaries, Siam Toppan Toppan has been running a WBT this fiscal year. The presidents of all Packaging Co., Ltd. in Thailand (Web Based Training) e-learning of the affiliate companies gather at (the first of Toppan’s overseas system for environmental educa- this meeting to build up the com- subsidiaries), Toppan Printing Co., tion since fiscal 2002. This new prehensive strength of the group (H.K.) Ltd. in Hong Kong, and channel for education provides a by reviewing the environmental Toppan Printing Co. (America), Inc. two-way communication structure management structure and mak- in the U.S. free from the constraints of a con- ing arrangements for the sharing ventional educational environ- of environmental tasks. Ten manu- ment. e-learning makes it possible facturing companies will come to to provide all employees with a participate in the meeting twice fully operative, time-efficient edu- each year. cation on the environment.

14 Environmental Management 15 Function: planning, development and Function: Execution of LCA of Frequency: Biannually Major objectives: Reporting and Frequency: Biannually Function: Advisory meeting on Function: Promotion of Eco-creativity T evaluation, registration, qualification products environmentally-friendly of T products T T discussing achievements of activities environmental T T environmental company-wide measures I of divisions of and to plan or implement measures to har- and to plan or implement strength. ness their comprehensive Environmental Activities Promotion System System Eco-protection Promotion plant, an Eco- In each Toppan production has been protection Promotion Committee activities, set up to promote environmental with different subcommittees designed to function for specific environmental issues. Eco-creativity Promotion System In each Toppan division, an Eco-creativity Promotion System has been established to develop environmentally-friendly products and environmental support business. Note: Excluding overseas subsidiaries and independent subsidiaries. LCA Working Group Tokyo Meeting on Eco-creativity Eco-creativity Project, Securities Printing Division Commercial Printing Eco-Project, Commercial Printing Division Eco-creativity Promotion Committee, Kansai Commercial Printing Sub-division Eco-creativity Promotion (Electronics), Electronics Division Eco-promotion Project, Publications Printing Division Package and Environment 2000 Project, Packaging Division Eco-creativity Promotion Committee, Interior Decor Materials Division Eco-creativity Promotion Committee, Optronics Division Chubu Eco-Project, Chubu Division Nishinihon Eco-creativity Committee, Nishinihon Division Tohoku Eco-creativity Project, Tohoku Division Eco-creativity Committee, Hokkaido Division Eco-creativity Promotion Committee, Toppan Technical Research Institute Eco-creativity Promotion System National Meeting on Eco-creativity Eco-creativity Promotion System Environmentally-friendly Product Development System at each division s Eco-protection and ’ head office of each division Corporate auditor Sales and sales Directors in charge Related divisions at To push Toppan promotion departments Eco-creativity Activities efficiently forward, Eco-creativity Activities an internal the company has established System and inter- Eco-protection Promotion nalboth Eco-creativity Promotion System, specific envi- of which are now deploying the direction ronmental activities under of the Ecology Center. Reinforcing the comprehensive strength of the Group Toppan reviewed its environmental management structure as a corporate group and started the Toppan Group Environ- ment Meeting in June 2003. Heads of affiliated companies gather for the meeting to discuss the sharing of environmental tasks sions and production plants back to central sions and production plants management. Frequency: Annually Function: Strategy meeting on management of ISO 14001 Frequency: Monthly in principle Function: Operational administration of environmental Frequency: Monthly in principle Function: Streamlining energy use Established at each site, depending on site-specific Frequency: Biannually Major Objectives: Reporting and discussing Frequency: Whenever necessary Function: Advisory meeting on company-wide T T T T management system T T T environmental features (types, scale, etc.) T T achievements of environmental activities T T measures environmental s vari- ’ Manager and Hideaki Kawai Naoki Adachi, Ecology Center President & CEO R&D departments Managing Director Chief Environmental Subcommittee on Energy Other Subcommittees Tokyo Eco-protection Meeting Environmental ISO Secretariat Meeting ons and production plants of Toppan Group Eco-protection Promotion System Eco-protection Promotion Committee National Eco-protection Meeting s environmental policies and envi- ’ production plants Affiliated Companies Meetings with Heads of Environmental Meeting Domestic and overseas Environmental Management Structure Toyo Ink Mfg. Co., Ltd. Tosho Printing Co., Ltd. Tokyo Shoseki Co., Ltd. Toppan Forms Co., Ltd. Tokyo Magnetic Printing Toppan Label Co., Ltd. Toppan Logistics Co., Ltd. Tamapoly Co., Ltd. NEC Toppan Circuit Toppan Printing Co., Ltd. T T T T T Ltd. Co., T T T T Solutions, Inc. T ronmental measures, as well as to convey environmental information from the divi- ous divisi Toppan Features of Toppan’s environmental Features of Toppan’s management R&D department, In every production plant, department and sales and sales promotion Toppan has set inside and outside of Japan, system up an environmental management leadership of the under the control and President and the Chief Environmental Manager. The Ecology Center, a part of the Corporate Manufacturing, Technology & Research Division at the head office, is directly responsible for the system employed to inform the company Environmental Management Structure Toppan is building up an ISO 14001-based environmental management system as a framework for its Eco-protection and for its Eco-protection as a framework management system environmental up an ISO 14001-based Toppan is building to reinforce Meeting in fiscal 2003 Group Environment also started the Toppan Activities. Toppan Eco-creativity Group. structure of the Toppan management the environmental Environmental Management Structure Management Promotion & Environmental System Introduction of Environmental Management The core function of Toppan’s environmental management is to promote environmental activities by PDCA (Plan-Do-Check-Action) cycle activities. The Chief Environmental Manager evaluates and verifies the results of annual environmental activities and conveys them to an environmental management review.

Environmental Management confirmation, and finally passed on to all sets sales targets for environmental busi- niomna Management Environmental System and PDCA Cycle parties concerned. ness and numerical targets for environ- Toppan environmental management mentally-friendly products to be newly review Eco-protection Activities developed. During the phases of imple- Toppan establishes and manages its envi- At production plants all environmental mentation, managers in charge check the ronmental management structure using activities are led through the environ- progress towards the targets set. PDCA cycle activities. The “environmental mental management system at each oper- In the area of environmental communi- management review” remains in perpetual ational site. For more information see P.17 cation, all departments concerned strive to operation to enhance the effectiveness of and P.18. achieve targets set for the planning and environmental improvements. execution of communication activities. Results of environmental activities are Eco-creativity Activities and environ- collected at the Ecology Center, evaluated mental communication activities and verified by the Chief Environmental In planning the Eco-creativity Activities of Manager, reported to management for the Sales/SP and R&D departments, Toppan

Outline of Environmental Management

Legal Eco-protection Activities requirements Environmental Production plants/Research centers conditions National Environmental Environmental Eco-protection Eco-protection Promotion Meeting impact policy Eco- Committee Eco- Environmental protection Environmental protection objectives Activity Achievement activities Environmental Plan Progress review Report Chaired by Environmental management targets the Chief Environmental review by Achievement Manager managements Review evaluation/review

Held in May annually

Toppan’s Declaration on the Global Environment LCA Eco-creativity Activities (As required) evaluation Sales/SP and R&D departments Revision of Green Medium- and purchasing National Long-term R&D of Development system for environmentally- Meeting on Environmental Medium- and Development environmentally-friendly products Targets targets friendly products Eco-creativity Long-term Achievement Progress Environmental Subject of evaluation/ Data review Targets research review collection Review Chaired by the Chief Revision of Promotion system for Environmental Environmental Sales activities Eco-creativity Activities Manager Targets Targeted sales for Environmental Sales management Business Environmental Targets Held each June

Environmental Communication Activities Information sharing All departments Cohabitation National with local Consciousness Eco-protection community survey Meeting Internal communication activities Communication External communication activities Data targets Activities with neighboring communities collection Social contribution activities Environmental National PR Eco-creativity Meeting

Held in May and June annually

16 Environmental Management System The environmental management system deploys environmental activities at each production plant. In addition, Toppan promotes comprehensive in-house environmental auditing covering all operational sites of the company. In fiscal 2002, six domestic and three overseas production plants were awarded ISO 14001 certification.

Toppan’s Environmental ISO 14001 Certification within the Toppan Group (Domestic) niomna Management Environmental Management (16 systems/21 sites as of July 31, 2003) A unique environmental management Division Operational site Main product Registrar Registration system date Toppan’s environmental management Electronics Shiga Electronics products JQA 1998. 7 system is uniquely structured. At every Electronics Kumamoto Electronics products JQA 1998.11 Wallpapers, decorative 2000. 3 operational site, the company’s PDCA paper/film, for Interior Decor Materials Satte/Kashiwa JQA (revised in (Plan-Do-Check-Action) Cycle concept is furniture, decorative June 2000) sheets put into practice irrespective of ISO 14001 Niigata and NEC 2000. 4 certification. Electronics Toppan Circuit Electronics products JQA (revised in Forty-seven production plants and two Solutions Niigata, Inc. October 2002) R&D departments in Japan are pushing Toppan Printing Books, magazines, 2000.10 JQA Commercial Printing Communications catalogs (revised in their environmental activities forward to Co., Ltd. December 2002) achieve the targets set under the Eco-pro- Securities and Cards Ranzan Credit cards, IC cards JQA 2000.11 tection Activities Plan. Akihabara office/ Planning, development, JQA 2001. 3 Packaging Ebie office design, sales, prepress of packages Toward continual improvement Itabashi/Toppan Publications Printing Books, magazines JQA 2002. 2 Once each year, Toppan management con- Seihon Co., Ltd. firms and reviews the company’s environ- Soft packaging Packaging Fukuzaki materials, paper cups, JQA 2002. 7 mental activities, collecting basic data for plastic products laying out our Environmental Policy and Toppan Graphic Publications Books, magazines JQA 2002. 8 Environmental Objectives and Targets for Co., Ltd. Commercial printed the following year. Commercial Printing/ materials, securities, Securities and Cards/ Takino JQA 2002.10 In addition, each of Toppan’s operational paper containers for Packaging sites submits an Eco-protection Achieve- liquids Soft packaging ment Report and Environmental Perfor- Packaging Gunma JQA 2003. 7 materials mance Data based on calculations and analyses of environmental efficiency at the Member companies Registration Operational site Main product Registrar end of each fiscal year. Feedback on this of the Group date information is provided at Toppan National Total Media Development Consulting for 2001. 3 JSA Eco-protection Meeting held in May of Institute Co., Ltd. Whole company museums and related (revised in facilities April 2002) each year. If any measures are found to be Toppan Forms Co., Ltd. Hino Business forms JQA 2001. 6 particularly effective, they are reported in Toppan Label Co., Ltd. Fukushima Self-sealing labels JQA 2001.11 the Eco-protection Case Study Meeting so Storage and that other sites can share the benefits of Toppan Logistics Co., Ltd. Kawaguchi site transportation of JQA 2002.10 products those successful initiatives. Note: Plans for obtaining certification: six operational sites are slated to be certified by the end of March 2004.

Outline of Toppan’s Environmental Management System*1

Medium- and Eco-protection Toppan’s Environmental Long-term Achievement Declaration on Action Plan Targets Environmental Report the Global Targets Environment Improvement Plan PDCA cycle of Environmental environmental policies, objectives & targets for each operational site management

In-house Internal Eco-protection Environmental environmental environmental Check Do Activity Plan Report audit audit*2 Information Site-specific disclosure Environmental In-house Report*2 Environmental Audit Report *1 Independent subsidiaries are not included in the system. *2 ISO 14001-certified production plant.

17 to 90 50 1 140 280 18 March 2003) – 136 to ensure pointed out is submitted (as of June 30, 2003) — — Number of issues Improvement Plan (Survey period: April 2002 Position Personnel Toppan created an Registered Internal Environmental Auditors Managers Supervisors Employees Total rectify these weaknesses through specified methods over a scheduled period. To verify the progress status of remediation actions, the in-house environmental audits were reviewed for 129 problems identified at 13 operational sites. matters at the operational site, based on the Manual on Hearings matters at the operational site, based on the Manual on for the In-house Environmental Audit. on Evaluation Standards for the In-house Environmental Audit. on Evaluation Standards for the In-house Environmental on the inspection within and around the operational site, based Audit. Manual on Inspections for the In-house Environmental Four-point evaluation (0, 1, 2 and 3) on applicable check items, based Four-point evaluation (0, 1, 2 and 3) on applicable check items, A summary of activities conducted throughout the year compliance with approximately 200 check items for in-house environmental auditing, as specified by the head office to the head office in June of the following fiscal year. conducted A review of the in-house environmental audit report is prior to the implementation of an on-site audit to clarify environmental aspects at each site. Summary of issues in need of improvement, along with the evaluation scores and general comments. Returned to the operational site for feedback. Description of a specific improvement plan in response to issues in need of improvement, as pointed out by the audit. Submitted to the head office upon confirmation by executives at the operational site. Delivered to the Auditor and the Chief Environmental Manager. Conducted to assess progress and give appropriate guidance concerning issues found by the auditors to require improvement. (1) Hearings with executives and staff in charge of environmental (1) Hearings with executives and staff in charge of environmental (2) (3) Verification of the state of environmental management via an (3) Verification of the state of environmental management Partial conformance with the standard Efforts may be required for improvement for full conformity with the standard Notable achievement, as an action, made from the point of view of environmental management Item Contents Structure of In-house Environmental Audit Document audit In-house Environmental Audit Results Review of the in-house environmental audit Summary and evaluation results of the in-house environmental audit Improvement Plan for Specified Issues On-site audit In-house Environmental Audit Report ment Plan and remediation measures ment Plan and remediation pointed executed to improve weaknesses out in the environmental audit of the previous fiscal year (fiscal 2001) Management Standard environmental conservation targets Number of Issues Pointed Out under ISO 14001 (Fiscal 2002) Minor nonconformance Point for observation Excellent point In-house environmental audit results In-house environmental from fiscal 2002 improvements were A total of 327 required environmental pointed out in the in-house included the audits. The main weaknesses following. Poor conformity between the Improve- 1. by the In-house Excess value specified 2. Insufficient progress in management for 3. year s in-house environmental audit sys- ’ 18 In-house environmental audit hearing tem follows a two-stage screening process: a document record audit and an on-site audit. The in-house environmental audit team consists of provisional auditors of the Environmental Management System and internal environmental auditors. This team inspects and evaluates not only the struc- tural status of systems and compliance with rules and regulations, but also the status of compliance with in-house standards at all the operational sites subject to the audit. The auditors then put together the In-house Environmental Audit Results, a document specifying any necessary improvements pointed out during the auditing, and submit it to the director in charge. These auditors also review the in- house environmental audits within the same fiscal year with the objective of raising the level of compliance for the following fiscal year. Environmental Audit In-house environmental audit system Toppan included seven sites for Information & Net- included seven sites for Environment, and works, six sites for Living With the new three sites for Electronics. 2002, the number ISO acquisitions in fiscal (including sub- of the Toppan employees sidiaries engaged in production activity) working under ISO 14001 certification reached approximately 12,000. Member companies of the Toppan Group certified in fiscal 2002 by ISO 14001 included Toppan Logistics Co., Ltd. (Kawaguchi site). Status for obtaining ISO 14001 Status for obtaining ISO certification awarded ISO 14001 The 16 operational sites previous fiscal certification before the

Environmental Management Activities in Oversea Status for obtaining ISO 14001 niomna Management Environmental In-house environmental audits Outside of Japan, Siam Toppan Packaging Local hearings and inspections are carried Co., Ltd., (packaging business) became the out every other year at overseas produc- first overseas subsidiary to earn ISO 14001 tion plants in the United States and Asia. certification in April 2002. In the following In fiscal 2002, local environmental audit- month, May 2002, Toppan Printing Co., ing was carried out at the following opera- (H.K.) Ltd. obtained three certifications tional sites (five production plants in Asia): simultaneously—ISO 9001, ISO 14001, and

1. PT Toppan Sampoerna Indonesia OHSAS 18001. This was a first for an Asian Hearing in Toppan Sampoerna Indonesia 2. Siam Toppan Packaging Co., Ltd. printing company outside of Japan. Later, 3. Toppan PAP (Taiwan) Co., Ltd. in December 2002, Toppan Printing Co. 4. Toppan Chunghwa Electronics Co., Ltd. (America), Inc. also earned an ISO 14001 5. Toppan CFI (Taiwan) Co., Ltd. certificate. The company examines the status of environmental management and operations. Three major items were examined: 1) The understanding, operation, and confirmation of compliance with local environment-related laws and regulations; Inspection in Siam Toppan Packaging 2) The environmental impact on air and water; and 3) The daily control of waste materials. In the annual surveillance inspection, ISO 14001 Certification Overseas (3 systems/3 sites as of March 31, 2003) Registration 54 operational conditions were designated Companies incorporated overseas Main product Registrar to require further improvement. To improve date Paper containers, decorative Siam Toppan Packaging Co., Ltd. MASCI 2002.4 the operational conditions designated to corrugated cardboard require improvement at Toppan’s overseas Books, magazines, printed Toppan Printing Co., (H.K.) Ltd. DNV 2002.5 production plants, those plants have used commercial materials the same procedures employed under the Toppan Printing Co. (America), Inc. Printed commercial materials DNV 2002.12 Improvement Plan for domestic plants. Note: Two operational sites are slated to be certified by the end of March 2004.

“Our bottom line is green”—ISO 14001 and ISO 9002 As basics of marketing activities at Toppan Printing Co. (America), Inc.

Toppan Printing Co. (America), Inc., as a marketing tool. Manufacturing divi- Toppan’s American subsidiary, discloses sions, production divisions, and the sales its concepts on the environment on its division at the company regularly pool website for customers and the general their efforts to promote environmental public. In its printing operations, the activities for higher goals. company works ceaselessly to deepen One such activity is the Eco-shield its understanding of its environmental program to provide customers with impacts. environmentally-friendly printing mate- Since its ISO 14001 certification in rials using recycled paper and non-VOC December 2002, Toppan America has ink. At the same time, management at actually increased its corporate-wide Toppan America sustains environmen- activities for environmental improve- tal commitment in the corporate cul- ment, fully aware of their ongoing ture outside the company. importance for the environment and PR poster for simultaneous qualification of ISO 14001 and ISO 9002

19 — of (internal × Environmental Waste treatment and recycling cost: 45.3% Social activities cost: less than 0.1% profit margin × unit price × Environmental damage remediation cost: 0.5% symbol denoting a negative value ” “ Upstream & downstream cost: 3.9% 11.143 billion yen indicates an increase from the previous year. two more affiliates in the scope of environmental accounting for fiscal 2002. (The affiliates were not included in the accounting for fiscal 2001 since they had not yet commenced operations as production bases.) more precise accounting, and the results for fiscal 2001 were recalculated by the new method. Accounting Guidelines (2002 version) Accounting Guidelines (2002 version) conservation cost in fiscal 2002. mental protection facilities obtained facilities (according to ordinary accounting), operational costs (including electricity, fuel and repairs), and other maintenance costs. related to environmental works, the percentage related to environmental conservation is defined in the in-house guidelines for aggregation. The economic effect (effect on business) is based solely on the actual effect and does not include surmised effects. annual amount) tally-friendly products financial production amount for fiscal 2002/ internal production amount for fiscal 2001) conservation effect The environmental conservation effect is a value calculated by comparing the amount of business activities quantified during a stable period (a period with average fluctuation in business) with the amount quantified during the targeted period. The following equation is used: Reduction (reduction of environmental burden): environmental burden for fiscal 2001 environmental burden for fiscal 2002 Note: The Ministry of the Environment Ministry of the Environment Total costs: Calculation Standards for Calculation Standards for Environmental Accounting Fiscal 2002 5. 2002 Basic changes during a) We expanded production abroad and included b) was slightly revised for The calculation method 1. Reference guidelines 1. Reference 2. Calculation standards for environmental a) Based on the prices of the environ- Investment: b) Cost: Depreciation of environmental protection c) For a fuller grasp of the portion Composite cost: 3. for economic effect Calculation standards a) (converted to Energy saving: energy savings b) of environmen- Environmental business: sales 4. Calculation standards for environmental s efforts ’ Global environmental conservation cost: 4.8% Breakdown of Environmental Conservation Cost for Fiscal 2002 Management activities cost: 8.3% Pollution prevention cost: 29.1% Research & development cost: 8.0% the Law Concerning Special The emissions of water pollutants The emissions of water Both energy consumption and carbon In the area of environmental conserva- In the area of environmental Pollution prevention cost: 62.8% Management activities cost: 2.7% Using data to calculate the Environmental Efficiency Index Toppan will be making use of the data achieved from environmental accounting and introducing an index to measure environmental efficiency from fiscal 2003. When setting specific targets, the company can promote its environmental activities and control the progress of its environmental management by examining the changes of environmental efficiency over long periods of time. Measures against Dioxins. Toppan Measures against Dioxins. continue in the to reduce dioxins will future. increased overall due to the establishment of new production bases leading to an increase in the number of sites to be measured. dioxide emissions increased overall, in spite of various measures such as implementation of energy saving diagnosis and horizontal deployment of energy saving examples. The company will continue to introduce more measures at both facility and administrative levels to redouble the effects of the conventional measures to reduce energy consumption already underway in fiscal 2003. Future Challenges tion, Toppan successfully reduced dioxin tion, Toppan successfully the remodeling emissions by 30% through shutdown) in com- of incinerators (including pliance with Total 2.705 billion yen investment: newly established also contributed. Research & development cost: 5.8% s R&D themes pending the completion ’ Waste treatment and recycling cost: 20.7% Breakdown of Environmental Conservation Investment for Fiscal 2002 This increase mainly stems from the This increase mainly The cost reduction during fiscal 2002 Global environmental conservation cost: 8.0% 20 this accounting and disclose more detailed information to stakeholders. detailed information and disclose more this accounting Results for Fiscal 2002 cost Environmental conservation fiscal year, the Compared to the previous for fiscal 2002 results of the aggregation by 295 mil- show an increase of investment of cost by 1,157 lion yen and a reduction million yen. to treat exhaust introduction of equipment gas from the printing and drying processes at Information & Networks and Living Envi- ronment production plants, and equipment to treat wastewater generated at production bases in Electronics production plants. The introduction of equipment to prevent air pollution and equipment for wastewater treatment at production bases abroad was mainly the result of renewed efforts to promote the sorting of wastes from production processes. Besides reducing costs in waste treatment, these efforts substan- tially improved the recycling rate within the company. Cost reductions were also brought about by revisions in the company Environmental Accounting Environmental management. in environmental decision making 1998 as a tool for effective accounting in fiscal environmental Toppan introduced contents in order to enrich the from fiscal 2001 environmental accounting affiliates abroad in its began to include The company of technology transfers and the achievement or targets for previously established themes. Economic effect and environmental conservation effect The economic effect of environment- related business increased by 912 million yen (14%) in fiscal 2002, chiefly through the increased sales of environmentally-friendly products.

Environmental Management Toppan Group’s Environmental Accounting for Fiscal 2002 niomna Management Environmental Environmental Conservation Cost (unit: millions of yen) Current term Change (current term–previous term) Item Description of major contents Investment Expenses Investment Expenses amount amount (1) Total internal cost 2,475 8,832 610 L606 Cost for pollution prevention, such as air pollution 1. Pollution prevention cost (1,698) (3,243) (256) (L149) prevention 2. Global environmental Cost for global environmental conservation, such as (216) (536) (L36) (L81) conservation cost global warming prevention 3. Waste treatment and Cost for adequate treatment and recycling of waste (562) (5,052) (390) (L376) recycling cost materials Cost for green procurement, containers/packages (2) Upstream/downstream cost — 433 — 90 recycling, and others Cost for obtaining certification for environmental (3) Administration cost management systems and maintenance, planting 73 927 L7 L13 trees at sites, and others Cost for research and development of environmentally- (4) R&D cost 157 886 L308 L552 friendly products, and others Cost for donations, support, etc. for environmental (5) Social activity cost — 10 — 0 conservation organizations, and others (6) Environmental damage Cost for restoring damage such as soil pollution, — 54 — L76 remediation cost and others Total 2,705 11,143 295 L1,157

Total investment amount for the period covered 83,312 L508

Economic Effect (unit: millions of yen)

Item Description of major contents Current term Change (current term–previous term)

(1) Energy saving Reduced amount related to energy saving 106 L36 (2) Sales proceeds of valuables Sales amount of the waste from plants 1,513 177 Profit amount related to sales of (3) Environmental business 7,447 912 environmentally-friendly products (4) Subsidies Subsidies related to countermeasures for resources — L85

Environmental Conservation Effect Environmental burden Item Page number Reduction for fiscal 2002 Energy Total energy consumption L725,000 GJ 17,784,000 GJ P.38 Water Water consumption L1,230,000 m3 14,127,000 m3 P.57

Air CO2 emission L25,000 t-CO2 804,000 t-CO2 P.38 Emission of substances destructive to the ozone layer 0.04 ODP-t 5.18 ODP-t P.40 NOx emission 11 t 269 t P.40 SOx emission 9 t 83 t P.40 Emission of dioxins 0.09 g-TEQ 0.20 g-TEQ P.41 Water system and soil Total water discharge 90,000 m3 11,303,000 m3 P.57 Underground penetration (water) 194,000 m3 52,000 m3 — On-site evaporation (water) L521,000 m3 1,775,000 m3 — Discharge of water-polluting substances L218 t 598 t P.40 Waste Total generation 3,000 t 376,000 t P.42–P.43 Notes: • Entities covered: Toppan Group (See P.3) • Period covered: April 2002 to March 2003 (January 2002 to December 2002 for overseas subsidiaries) • Total values may not match, as decimals were rounded up or down. • The “” symbol denoting a negative value indicates an increase from the previous year.

21 Environmental Education, Environmental Compliance & Emergency Response Toppan carries out thorough environmental education designed to maintain and improve the quality and scope of the company’s environmental activities. As a matter of course, the company emphasizes environmental compliance, i.e., compliance with all laws and regulations related to the environment. The company also conducts emergency training and drills to prepare for accidents that may have an impact on the environment.

Philosophy and Structure Review niomna Management Environmental Toppan Environmental Education System of Environmental Education Raising consciousness by environmental education Training for new recruits (General environmental education (primary)) In maintaining and improving the quality and New recruits compulsorily undergo this program. Conducted twice a year to convey basic scope of our educational activities, Toppan knowledge of global environmental problems and a brief summary of Toppan’s environmental activities. A total of 240 employees participated in fiscal 2002. believes that all Toppan employees need to reach a new level of awareness. For this Training for new managerial staff (General environmental education (intermediate)) purpose, the company provides a variety of New managers compulsorily undergo this program. Conducted once a year to convey the educational opportunities to raise the envi- various environmental trends and countermeasures in general business activities, as well ronmental consciousness of the entire work- as a brief summary of Toppan’s environmental activities. A total of 123 employees participated in fiscal 2002. force, from new recruits to top managers. e-learning (Environmental problems surrounding companies and Toppan Group’s activities)

Reinforcing the structure The e-learning system sup- Toppan provides various environmental ported by WBT (Web-Based Training). In the first fiscal year education opportunities for the training of of 2002, a total of 499 em- new recruits and new managerial staff ployees, new managerial staff, and supervisors completed a through elective programs. Moreover, course entitled “Environmental Toppan provides employees at each site problems facing Toppan and corporate activities deployed”. with environmental training focused on (Course completion rate: 99.8%) the environmental burden of the specific production activities in which they engage. Toppan business school This training also encompasses counter- This training supports the career development of interested employees by educating them measures to deal with specific impacts, as in specialized skills. Three types of training services are offered to improve individual skills: Elective training, The Challenge School, and the Video library. well as the environmental conservation Introduction to ISO 14001 (primary)/introduction to activities undertaken by the company to Elective training environment-related law (primary)/LCA practical heighten the environmental consciousness (intermediate)/energy saving (intermediate) of the Toppan workforce. Short-term programs that employees can select individually. One Mindful of the importance of enhancing course with 15 participants was held in fiscal 2002. Another three environmental courses were newly added in fiscal 2003 (total of four education across the entire company, courses). Toppan introduced an e-learning system The Challenge School Four environment-related courses supported by WBT (Web-Based Training) in This program helps employees pursue further training on their own fiscal 2002. This system will enable the by offering correspondence courses with incentive payments upon entire Toppan workforce to receive effec- completion. Ninety-six employees participated in the four environmental courses offered in fiscal 2002. tive training within short periods of time. The company has been continuously Video library Two environment-related titles reviewing and building up its environmen- This program introduces and lends video materials for self study and workplace education. As of April 2003, two environment- tal education structure in fiscal 2003. related titles were made available. Among other changes, we have scaled up the target range for e-learning to more Training to become an in-house environmental auditor than 5,000 people and expanded the menu To reinforce in-house environmental audits, the Ecology Center conducts training in in- of environmental courses in Toppan’s elec- house environmental audits at the company headquarters. In fiscal 2002, a total of 192 tive education program. participants attended the four courses held and became qualified to perform in-house environmental audits at the business sites to which they belong.

Education to raise environmental awareness at each site

Special environmental courses and social contribution activities are undertaken at each site based on characteristics of the surrounding communities and regions. Examples include new employee assignment, energy saving month, and Earth Month. In fiscal 2002, four sites provided environmental education to all of their employees as an activity to obtain ISO 14001 certification for two systems.

Guidance and evaluation through in-house environmental audit

In its annual environmental audit of all Toppan production plants, the Ecology Center confirms and reviews the activities at each site under the audit categories of local community activities, as well as environmental education and awareness-raising activities.

Environmental Education at Toppan Electronics Fuji, Co., Ltd.

22 Status for Environmental Compliance status is reported to head- Emergency Response niomna Management Environmental Compliance quarters in the form of Eco-protection Preventive emergency-response Compliance status for environment- Achievement Reports every April and the measures related laws and regulations status is checked by in-house environmen- Chemical solvents are used and handled Toppan’s production plants comply with tal audits. on a daily basis at each site. In some cases, all environmental laws, regulations and In the audit on compliance with control accidents during handling and use involve agreements set by national and local gov- standards for water and air, auditors found the risk of soil and water pollution (for ernments. The plants also comply with no major nonconformity with the laws and example, during the transfer of solvents Toppan’s anti-pollution guidelines, which regulations that could have directly led to a from tank trucks into storage tanks). At are usually stricter than those set by grave accident. Regarding the protection operational sites subject to any possibility government. of the soil, the environmental standards for of environmental impact, the company is soil were exceeded in two cases in fiscal now installing pollution-preventive devices 2001 and one case in fiscal 2002. Toppan and preparing oil fences, sandbags, and Major Environment-related Laws other appropriate measures to prevent the involving the Printing Industry in Japan dealt with these problems by soil renova- tion (excavation and backfilling). Regard- flow of solvents outside the sites in the Basic Stance & Rules P.4–P.7 The Basic Environment Law ing noise pollution, Toppan received event of a leak or similar accident. Law for Promotion of Nature Restoration administrative notifications twice in fiscal Periodic drills are also carried out so that The Basic Law for Establishing the Recycling- Based Society 2002 for exceeding the noise standards. necessary actions can be taken in case of Legislation to Implement a Basic Law on Energy Policy Both cases were caused by malfunctions emergencies. At the same time, the proce- Eco-protection Fields P.36–P.53 in outdoor units. Toppan immediately dural manuals are regularly evaluated and Air Pollution Control Law Water Pollution Control Law installed noise insulation materials and updated to ensure they remain effective Sewerage Law reported the matters to the relevant local for actual emergencies. Septic Tank Law Law Concerning Special Measures for Conservation government. of the Environment of the Seto Inland Sea No court cases, penalties or non-penal Soil Contamination Countermeasures Law Offensive Odor Control Law fine were filed or imposed in fiscal 2002. Noise Regulation Law Vibration Regulation Law Response to requests from Industrial Water Law stakeholders The Law concerning the Rational Use of Energy Law Concerning Promotion of the Development The communities around Toppan’s plants and Introduction of Alternative Energy filed a total of 40 complaints and inquiries Law Concerning Promotion of the Use of New Energy in fiscal 2002. Though this marks a decline Waste Disposal and Public Cleaning Law from the number filed in fiscal 2001, Law for the Control of Export, Import and Others of Specified Hazardous Wastes and Other Wastes Toppan feels compelled to apologize to Construction Materials Recycling Act some of the neighborhoods. The main Law Concerning Special Measure against PCB waste Law Concerning the Reporting, etc. of Releases to complaints had to do with noise and odor, the Environment of Specific Chemical Substances two forms of urban pollution. While most and Promoting Improvements in their Management Law Concerning Special Measures against Dioxins of the problems related to production Law concerning Special Measures for Total Emission activities were promptly solved, several Reduction of Nitrogen Oxides from Automobiles in Specified Areas require further work. Toppan will continue Law Concerning the Protection of the Ozone Layer to make capital investments and commu- through the Control of Specified Substances and Other Measures nicate with neighborhoods for the pur- Law Concerning the Promotion of the Measures to poses of improvement. Cope with Global Warming Factory Location Law City Planning Law City Green Zone of Conservation Act Law Concerning the Improvement of Pollution Prevention Systems in Specific Factories Eco-creativity Fields P.24–P.35, P.48–P.53 Law Concerning the Promotion of Procurement of Eco-Friendly Goods and Services by the State and Other Entities Law for Promotion of Effective Utilization of Recyclable Resources Law for Promotion of Sorted Collection and Recycling of Containers and Packaging Law for the Conservation of Endangered Species of Wild Fauna and Flora Note: Compliance status with each law is shown on respective pages. Soundproof wall installation (Toppan Seihon Co., Ltd.) Board displaying emergency equipment (Ranzan plant)

23 Eco-creativity Activities Environmental business is “business that helps realize a recycling-oriented society through the supply of products, technologies and services, based on environmentally-friendly production activities.” Toppan’s Eco-creativity Activities promote environmental business.

Development of environmentally- friendly products YProduct assessment YLCA (Life Cycle Assessment) Eco-creativity YEnvironmental Labeling Type II

Promotion of environmentally- friendly printing services YGPN’s Order Guidelines for Offset Printing Services YJFPI’s Green Standard for Offset Printing Services Support for environmental YEnvironmentally-friendly ink, activities of customers waterless printing methods through the supply of environmentally-friendly Support for environmental businesses YOrganization of environment-related products and services events ecollable Net YSupport for the preparation of environmental reports

Efforts to build up a recycling- oriented society YWaste paper recycling system YPackaging material recycling system

Activity Topics for Fiscal 2002

TOPIC 1 TOPIC 2 TOPIC 3 LCA on Clear Deposition Environmentally-friendly Radar Chart Product Film Line-up Increases to Assessment 57 Products

Material 1.00 0.80 0.60 0.40 0.20 Recycling/ Product Deposition 0.00 manufacturing

Use Distribution Resource saving (reduced use of materials) Point gained Conventional Theoretical Use of raw materials is reduced, and the type maximum packing material is incorporated in the display. Recyclable as cardboard.

Toppan conducted an inventory All products that meet in-house A qualitative environment evalua- analysis on clear deposition film, standards are marked with Toppan’s tion system was structured to esti- one of its main products, to assess Label for Environmentally-friendly mate material selection, use, and its influence over global warming. Products to provide information disposition for products in the The company will disclose all LCA on environmental friendly features. commercial printing field such as information required by customers The labels are actively attached to brochures and POP displays. and society for the evaluation of product samples and booklets. Customers appreciate the radar environmental impacts. charts for their clear depictions of the environmental burdens of Toppan products.

24 Overview of Eco-creativity Activities & 13 Environmental Claims Eco-creativity Activities constitute Toppan’s environmental business conducted through the supply of products and services. The product life cycle from production to disposal is classified into 13 steps, each with its own environmentally-friendly features. These features are explained below.

What are Eco-creativity through the supply of environmentally- Basic Philosophy for Activities? friendly products, technologies and services Environmentally-friendly Support for customers and NPOs based on the environmentally-friendly busi- Products Eco-creativity through two activities ness activities conducted by the company Label displays environmentally- Environmental Business (Eco-business) is globally. Each Toppan division undertakes friendly features a priority business at Toppan, designed activities to promote this business, which Toppan plans to raise the accuracy of its to help create a recycling-oriented society Toppan calls Eco-creativity Activities. accountability to customers and to actively Eco-creativity Activities are broadly cat- support the environmental claims made on egorized into two different areas. The first behalf of its products. The company per- 13 Environmental Claims covers research and development of envi- forms prior evaluations at each division during the design and development of Safe ronmentally-friendly products. Product Biodegradability materials developers begin by preparing evaluation products and registers these developed Easy Recycled standards and guidelines that duly con- products at the Ecology Center. These separation materials and easy sider the overall lifecycle of the product, products are marked with Toppan’s Label detachment Resource Production saving and follow up with evaluations on the basis for Environmentally-friendly Products for Suitability After use and for distribution Recovered of those standards and guidelines. easy understanding of the applicable envi- disposal energy The second area supports environmen- ronmental considerations. Recyclability Use Reduced tal conservation. Eco-creativity Activities Toppan plans, develops, and supplies solid waste Reuse Long life Energy in this area are intended as supports for products friendly to the environment at products saving environmental conservation activities con- every stage of the product lifecycle, from Reduced release of chemical substances ducted collaboratively with customers and the raw material stage through to manu- NPOs. facture, distribution, use, and after-use.

Principal Environmentally-friendly Products and Environmental Claims See P.28 and P.29 for more information on each product. Recycled 101 Low-halogen Eco Pack vegetable- Coordination printed 13 Environmental claims PURE ALL Ecogloss Stand NaturArt TP-Tray Cerap Card for ETC oil ink Floor wiring board Production and distribution Safe materials

Recycled materials

Resource saving

Recovered energy

Reduced solid waste

Energy saving

Use Reduced release of chemical substances

Long life products

Reuse

Recyclability After use

Suitability for disposal

Easy separation and easy detachment

Biodegradability

Main environmental claim Related environmental claim Note: As of March 31, 2003, Toppan manufactures and sells 57 registered environmentally-friendly products.

25 Development & Evaluation of Environmentally-friendly Products Toppan has established an original set of evaluation standards based on the concepts of the ISO 14021 self declaration labeling system for planning, development, and evaluation. The products developed on the basis of those standards are highly evaluated in the market.

Formulating Toppan’s Guidelines Efforts toward a Product Next-generation and Standards for Environ- Assessment Method Environmentally-friendly mentally-friendly Products Control and evaluation of Products Eco-creativity Considering the standards from environmental impact Development of electronic paper the planning stage Toppan developed and utilizes its own Toppan is now developing electronic paper Toppan’s Evaluation and Standards for method of qualitative evaluation using radar in collaboration with E Ink Corporation Environmentally-friendly Products are used charts to illustrate the environmental bur- (U.S.A.). This effort may bring environmen- for guidance in the planning and develop- den of catalogs and POP displays. tal benefits, as the adoption of electronic ment of products. The guidelines consist of paper is expected to reduce paper con- 13 items; ten based on the ISO 14021 stan- Material Point gained sumption in companies and households. 1.00 Conventional dards and three added by Toppan itself 0.80 type (safe materials, reduced emissions of chem- Recycling/ 0.60 Theoretical disposition maximum ical substances, and suitability for disposal). 0.40 0.20 The products developed in keeping Product 0.00 manufacturing with the above guidelines are evaluated according to the control procedure for environmentally-friendly products. Use Distribution

Prototype of E Ink Electronic paper Control Procedure for Environmentally-friendly Products (Cooperation: E Ink Corporation, Koninklijke Philips Electronics N.V., and Printing Museum, Tokyo)

Division

Planning and development of environmentally- Efforts by Toppan Group friendly products Evaluation Companies Standards Products based on original standards (guidelines) Toppan Group companies are also working Evaluation of environmentally-friendly products to achieve a sustainable society through productive activities that conserve the global environment. Each Group company Application for registration as environmentally- Application for friendly products Registration is committed to the development of environmentally-friendly products based on its original standards in its field of operation.

Ecology Center

Verification of division’s evaluation

Registration of environmentally-friendly products

Conversion of registration data to database One-Pack Mail envelopes made from biodegradable film Approval of Toppan’s Label for Environmentally- Approval for Toppan’s Label for by Toppan Forms Co., Ltd. friendly Products Environmentally- Environmentally-friendly products (Type-II label) friendly Products

Pamphlet Labeling Resource saving (reduced use of materials) Product Use of raw materials is reduced, and the packing material is incorporated in the sample display. Recyclable as cardboard.

Manufacture of product

Environmental education video series, Looking Note: As of March 31 2003, Toppan’s produces and sells 57 registered environmentally-friendly products. into the Immediate Environment (five volumes): Tokyo Shoseki Co., Ltd.

26 Introduction to LCA (Life Cycle Assessment) Toppan places great importance on understanding the environmental influences of its products in quantitative terms. Toppan’s LCA analyses improve the company’s accountability to customers and society by establishing credibility, upgrading processes in the design and development divisions, and reducing environmental burdens.

Toppan’s LCA Activities Actual examples of LCAs Quantitative evaluation based on Toppan conducts LCA activities for each ISO 14040 product family. One of the LCAs in fiscal Eco-creativity All companies need to understand the 2002 covered clear deposition film, a major degree to which products burden the Toppan product. The assessments were global environment. supported by the National Institute of In the LCA analyses by Toppan, the com- Advanced Industrial Science and Technol- pany evaluates the life cycle of its environ- ogy/Research Center for Life Cycle Assess- mentally-friendly products according to 13 ment (Tsukuba city, Ibaraki Prefecture). environmental criteria applied at three Inventory analyses was performed to different stages of the life cycle, or what assess greenhouse gasses per unit area Clear deposition film the company calls environmental claims (m2) and impact on global warming. throughout three life cycle processes: Devel- The scope for this LCA started with the opment & Distribution, Use, and After-use. mining of the materials used in clear depo- (See P.25) sition films, then proceeded to the later To grasp the quantitative environmen- stages of ingredient manufacture at the tal burden of our products on a global material maker and the various processes scale, Toppan employs an LCA based on of product manufacture at Toppan. ISO 14040 in its evaluation. Results and evaluation of LCAs

The inventory analysis revealed that CO2 (85.9 g/m2) was the main gas among the LCA Standards Sheet LCA data and report greenhouse gases emitted through the Setting the purpose steps up to manufacturing. Inventory Results of Clear Deposition Film and coverage The total impacts were quantified at 2 2 70.3 g/m and 89.4 g/m (CO2 conversion) Greenhouse gas Emissions Analyzing inventory Interpreting up to the completion of material manufac- the results ture and product manufacture, respectively. Toppan concluded that 78% of the CO2 85.9 g/m2 Evaluating impact environmental impact originates in the materials. Accordingly, the company has N O 0.0128 g/m2 concluded that the selection of materials 2 The purpose of LCA for Toppan that generate less greenhouse gas is effec- The LCA activities at Toppan generally tive to reduce the impact on global warm- have two purposes: CH4 0.000734 g/m2 ing. Toppan will actively use such materials (1) To establish credibility through com- in the future. plete accountability to customers and Toppan will promote LCAs on other society (full disclosure of the quantita- products and use its results to reduce envi- tive environmental burdens imposed Impacts on Global Warming ronmental burden in manufacturing. by the products). (CO2 conversion: g/m2) (2) To improve design and development 100 89.4 processes and reduce environmental burden for each product by providing 80 70.3 detailed feedback on LCA results to the design & development department. 60

0 Material Product

Note: Coefficient for greenhouse effects impact evaluation is GWP (CO2 = 1) Eco95.

27 Toppan’s Environmentally-friendly Products in Daily Life Toppan plans and develops products that conserve environmental resources and increase recycling rates in all of its business fields. Toppan’s Label for Environmentally-friendly Products intelligibly describe environmental features and their benefits.

Eco-creativity Interior

PURE ALL Recycled vegetable-oil inks Low-halogen printed-wiring board PURE ALL is a mirror-finished non-vinyl decorative This ink for offset printing is made from repurified This wiring board contains no halogen material, film. It is most commonly used as a surfacing for waste oil from school kitchens and food service a potential source of toxic gas when incinerated. closets, kitchens, and cabinet doors. providers. The board is incorporated in notebook personal computers.

Non-chlorine-based Recycled vegetable oil Low-halogen material materials Two types of aromatic-free inks are made from Uses material with low-halogen flame- The film emits extremely low levels of recycled vegetable oils, the rotary type and offset retardant and emits minimal noxious gases noxious gas when incinerated for disposal sheet-fed type. The former contains at least 7% when incinerated. after use. recycled vegetable oil; the latter, at least 20%.

101 Coordination Floor Household flooring materials with reduced formaldehyde emission.

Reduced release of chemical substances Flooring materials with reduced levels of the substances known to cause ‘Sick-House’ syndrome. Also designed for longer product life with improved protection against water and sunlight.

28 Shops Eco-creativity

Eco Pack Stand A life-size POP display for commercial use. The POP body and packaging are made of recycled paper and NaturArt Ecogloss cardboards. Packaging can Special natural-wood product that combines thinly Paper containers using aromatic-free soybean oil be used as a base, result- sliced wood from systematically logged forests with ink and aqueous varnish with reduced petroleum ing in resource savings. Toppan’s unique printing technology. It is mainly solvents. This shiny paper has an excellent de-inking used for walls or furniture. property. Reduced release of Resource saving Resource saving and recycled materials (reduced use of materials) chemical substances Decorative materials that release reduced (reduced use of depletable resources) Use of raw materials is reduced, and the substances that cause ‘Sick-House’ syndrome packing material is incorporated in the Glossy paperware that uses soy ink and and produce low noxious gas emissions when aqueous varnish for higher recyclability. display. Recyclable as cardboard. incinerated for disposal after use.

Outdoors

Cerap TP-Tray Cards for ETC A decorative sheet for car bodies, made from poly- An excellent cushioning material made from corru- Heat-resistant IC card made of polyester plastic. Used olefin sheeting coated with a ceramic material. gated cardboard. The use of only a single material in ETC systems on expressways. Cerap has superior soil resistance and antibacterial makes the product easy to recycle. properties.

Non-chlorine-based Recyclable as cardboard Non-chlorine-based materials materials The standard PVC film used to protect the The use of a single raw material allows This card has low noxious gas emissions surfaces of vehicle bodies is replaced with these trays to be more easily folded and when incinerated for disposal after use. a ceramic coating. recycled after use.

29 Promoting Environmentally-friendly Printing Services Moving forward from its success with environmentally-friendly papers and inks, Toppan now provides printing services that conserve environmental resources from the design stage.

Conformity with GPN’s Order Tangible Examples of The high volatility of petroleum-based Guidelines for Offset Printing Environmentally-friendly solvents imparts a rapid-drying property Services Printing Services important for offset rotary press printing. Eco-creativity Environmentally-friendly from paper Toppan’s environmentally-friendly Yet the environmental deficits of these inks to production paper are now perceived as unacceptable. In As a member of the Green Purchasing Net- Printing paper is a material that directly response to the growing demand for print- work (GPN), Toppan strives to minimize the relates to the protection of forest resources. ing methods even friendlier to the environ- environmental burdens of printing based Nowadays there are two categories of paper ment, Toppan has developed an ink made on the Guidelines for Ordering Offset Printing that help to conserve forest resources: from 100% vegetable oil. By adjusting the Services, Japan’s first set of environmental recycled paper and treefree paper. printing conditions and energy for optimal criteria for customers who order printing Toppan offers a variety of treefree drying, this new ink has realized petro- services. The guidelines are already adopted papers with different textures and print- leum-free printing. by municipalities and corporations now ability, including kenaf, bagasse, and bam- practicing Green Purchasing and working boo pulp. Waterless printing system on other environmental issues. Traditional offset printing consists of litho- With a host of environmentally-friendly Using environmentally-friendly inks graphic printing that makes use of the technologies at its command, Toppan offers The petroleum-based solvents of offset interaction between water and oil. The sys- versatile proposals for customers seeking printing inks contain aromatics, a family of tem leaves the printing area receptive to oil quality printing services in all the fields cov- compounds that may by harmful to the air at the time of plate-making and forms ink- ered in the Guidelines: paper, ink, surface and human body. Fortunately, a solvent adhesion areas by adding moisture (damp- coating, bookbinding, and other finishing almost completely free of these presum- ening water) to the plate at the time of processes. ably hazardous aromatics (aromatic-free printing. The dampening water used in tra- solvent) has now been developed. This ditional offset printing processes contains advance has enabled the development of IPA (isopropyl alcohol), an organic solvent an aromatic-free soy ink made by combin- that needs to be more strictly controlled ing this solvent with soybean oil ink. and treated in order to reduce the levels of To take progress one-step further, volatile organic compounds released into Toppan is developing a more recyclable the atmosphere. form of these aromatic-free inks by reusing Meanwhile, in lieu of water, the water- other resources. Already the company has less printing system uses a silicone layer succeeded in practically applying a process that repels water. This eliminates the need that refines used soybean oil recovered for dampening water and the discharge of

Green Purchasing Network (GPN): A nationwide from school catering services and the liquid waste as a result. network founded in 1996 to promote Green Pur- restaurant industry for use in printing ink. chasing. As of June 26, 2003, membership Butterfly mark for waterless totaled 2,802 organizations, including 2,167 Besides offering the same performance as printing products companies, 366 administrative organizations, traditional offset printing inks, this recycled and 269 private organizations. Announced Order Guidelines for Offset Printing Services (GPN-GL14) vegetable-oil ink features a de-inking prop- in December 2001. erty (required for paper recycling) even better than that of conventional inks.

Environmental-friendly bookbinding and finishing processes Fragmentation-resistance hot-melt is an adhesive suitable for used paper recycling. Besides offering strong cohesion, it can be removed entirely from printed materials without fragmenting, even during the process of desegregation during recycling. Toppan has also developed Eco-binding and other bookbinding and manufacturing processes that require no stitching (wire), thereby enabling the company to use bind- Marks for environmentally-friendly printing products Petroleum-free ink for rotary press ing processes with outstanding recyclability.

30 the tremendous popularity the technology Environmental Consideration Changes in Design and Printing in Design Production and Plate now enjoys. Yet color correction is difficult Process Making without color-positive film. Toppan pro- Perfect digital Conventional Eco-creativity Environmental consideration in the vides stable color reproduction using its processing processing prepress process integrated color management system for Digital Photography The design production and plate making photography and plate making. photography prepress processes must be as environmentally-friendly as the printing process Replacement of color proofs with DDCP Development itself. Toppan substitutes color proofs, an indis- Image Most printed materials nowadays are pensable process in producing final proofs, conversion Scanning prepared using DTP (Desktop Publishing) with DDCP (Direct Digital Color Proof). This software and hardware—computerized significantly reduces the amount of film DDCP Designing systems for editing and design. consumed in the prepress process. However, DTP systems were designed Designing Film output to compose layouts using photographic Film-free plate with CTP images requiring film development and CTP is an acronym for Computer To Plate. color proof printing. In conventional plate making, plates are Plate output Toppan further developed conventional printed from films. In CTP, plates are printed directly from computers. This streamlines Color DTP using an in-house digital processing correction system based on our highly efficient, envi- the process and stabilizes quality. ronmentally-friendly color management Film output system (CMS). CTP Plate output Photography by digital camera The great advantages of digital photography, no film and no liquid waste, are key to Printing Printing

Designed using DTP

Design correction by DDCP

Environmental Considerations Environmental Considerations in the Toppan Environmental Report 2003

in this Report ProcessSpecific measures Environmental consideration Comments

Use of digital photography Elimination of filming and Photographic image data can Photography Toppan actively applies various envi- whenever possible development processes be used for other purposes ronmentally-friendly technologies and Reduction of mid-process Design & editing Digital processes by DTP methods in the printing services used materials Elimination of films and plates Color correction Correction by DDCP to print the Toppan Environmental for color proofs Report. In addition to carefully selecting Elimination of films for plate Plate making Plate-making by CTP paper and printing methods, the com- making pany has focused closely on formerly Printing Sheet-fed press Reduction of IPA use IPA content: 5% or less

overlooked prepress processes in the Consider color matching with Paper FSC-certified paper Forest resource saving production of the current report. DDCP Ink Recycled vegetable-oil ink Resource saving Bookbinding & Fragmentation-resistance Improved recycling efficiency finishing Hot-Melt (EVA-base)

Note: This report is printed on FSC-certified paper. The inks used for printing and all other materials are based on the Green Standards for Offset Printing Services (level 2) established by the Japan Federation of Printing Industries.

31 Development of Environmental Support Business The company supplies ample solutions for customers seeking to expand their own environment activities, in the form of paper, CD-ROM, online content, and other media. The solutions are based on the knowledge Toppan has accrued in developing and supplying environmentally-friendly products.

Miru-navi ecollable Net Environmental sumers can environmental activities achieve Flexible operation and search Monitoring System balanced growth. Toppan developed an integrated CD-ROM Evaluating environmental activities Eco-creativity browser software package called Miru-navi online Activities in fiscal 2002 for its release of the Toppan Environmental Toppan’s ecollable Net is a network-based In fiscal 2002, Toppan communicated with Report 2002 on CD-ROM. Miru-navi is capa- environmental monitoring system designed many people by surveying the environ- ble of browsing multiple file formats, index- to bridge the gaps between businesses mental awareness of Green Consumers ing content across media, and executing and Green Consumers (consumers who and hosted an environmental communica- high-speed searches through all content. take an interest in environmental activities) tion seminar for companies. The company In addition, Miru-navi can read character by soliciting the latter to respond to polls also carried out several field investigations. data and image data formatted for printing on the Web. The network was developed in and reproduce the layout faithfully on collaboration with the Chubu Recycle, an computer monitors and CD-ROM. As the environmental NPO that continues to work same data can be used for both printed with Toppan in the network operation. matter and CD-ROM, Miru-navi drastically Environmental activities conducted solely reduces CD-ROM production costs. from the viewpoints of business and admin- Besides its use for environmental reports, istration have their limits. Only with the Miru-navi can also be used as a communi- support and approval from Green Con- cation tool for enterprises disseminating business reports, annual reports, corporate ecollable profiles, recruitment brochures, and many Net website others types of information.

ecollable Net URL http://ecollable.eal.or.jp/ (in Japanese) Environmental communication seminars

ecollable Net system

Miru-navi screen

ecollable Net ecollable Net secretariat Investigation from Company consumer viewpoint ecollable monitor Toppan Printing Co., Ltd. Environmental- Green Consumer related planning Company

Highly specialized Toppan Environmental Report 2002 Miru-navi version investigation Environmental Chubu Recycle experts Internet Company

Participation in Planning, analysis, investigation and and operational planning administration Company

32 Support in Preparing Based on the knowledge it has acquired Environmental Reports in preparing environmental reports, includ- Paving the way for environmental ing research results on social currents con- Eco-creativity reports in the future cerning environmental issues and trends More companies consider environmental in environmental reporting, Toppan has issues as an administrative activity, and a supported approximately 70 companies in growing number of environmental reports preparing their own environmental reports. are being published each year. In fiscal 2003, In many cases Toppan proposes the com- over 1,000 companies are said to be publish- bined use of hardcopy (paper copies) and ing environmental reports of their own. The other media to generate synergistic effects, reports themselves are expanding in con- such as Internet linkage and CD-ROM tent and evolving into what can better be development. Toppan deploys communi- Environmental reports assisted by Toppan described as “sustainability reports” cover- cation support services as a partner of ing aspects of economy (financial data, pro- customers. ject outlines, etc.) and social roles (company philosophy, working safety and sanitation, etc.), as well as the environment itself.

Win the FSC CoC Certification

Toppan’s Commercial Printing Division environmental education tools from was awarded the Chain of Custody Toppan’s Commercial Printing Division. (CoC) certification by the Forest Stew- Toppan will continue making proposals ardship Council (FSC), an international for wooden products.

environmental NGO, in May 2002. This Note: The FSC forest administration certification was the first such authorization is a system to certify well-managed forests on the basis of principles and standards awarded in the printing business sector established by the FSC (Forest Stewardship in Japan. Since the achievement, the Council). The FSC CoC (Chain of Custody) certification gives assurance that FSC-certified FSC CoC certification has gained atten- wood is never mixed with non-certified tion in many fields and has been lumber in the course of production. awarded to several other Japanese organizations as well. The Commercial Printing Division was also awarded the FSC CoC certification in wooden processing in February 2003. All wooden POP displays, novelties, display booths in showrooms, and business-use furniture are now produced using wood lumbered from FSC-certified forests. Toppan will continue to print materi- Personnel form the division handling the field als and manufacture wooden products development of products manufactured with bearing the FSC logo. The products FSC-approved materials bearing the FSC logo embody three themes: environmental communication Examples of Wooden Products between companies and customers, forest management support, and the ITables, chairs, and benches creation of Toppan businesses. The ISales stands, display racks integration of these themes is expected IDisplay furniture for showrooms Iobjets d’art to align the goals of environmental con- ISpeaker boxes IRacks IFancy boxes ICoasters servation and economic development. IStationery (rulers, penholders, bookends) Many companies order FSC-certified ITrays ISignboards (plates, nameplates) environmental reports, catalogs, and

33 Efforts to Create a Recycling-oriented Society Toppan is fully aware of the importance of taking the initiative in reducing, reusing and recycling to achieve a sustainable society. The company undertakes a host of activities in these areas.

Establishment of the Printed Activities in the Chubu region Cartocan Recycling Material Recycling System The Chubu Division of Toppan is presently In-house paper recycling Recycling printed materials into operating the printed material recycling As a packaging manufacturer, Toppan Eco-creativity original printing paper system in collaboration with the Tokai Co- places importance not only on the sale of Recycling must be promoted ceaselessly in op Consumers’ Co-operative Federation, containers, but also their recycling after use. order to build a recycling-oriented society. along with its member co-ops: Meikin In cooperation with trading companies Toppan has been promoting a self-com- Coop, Co-op Gifu, Mikawa Citizens’ Co-op, dealing in raw materials in the paper man- pleting recycling system for printed materi- and Co-op Mie. During fiscal 2002, the sys- ufacturing industry, the Packaging Division als that encourages activities conducive to tem recovered 2,352 tons of used paper, an worked out a recycling system to manufac- resource conservation. approximately 13% increase over the previ- ture toilet paper from used Cartocans in Yet this is a system that can only bear ous fiscal year. January of 2002. The company engages fruit if the paper manufacturers share in production and filling operations for Car- Toppan’s goal of creating a recycling-ori- Records of Catalogue Recovery tocan, one of Toppan’s main packaging ented society. Discarded printed materials at the Tokai Co-op products. (t) recovered from consumers by the paper 2,500 2,352 The system has the capability to recycle manufacturers are recycled as Toppan’s 2,086 unwashed cans and then re-commercialize 2,000 original recycled printing paper, then rede- 1,796 the recycled material. In fiscal 2002, livered to consumers in the form of new 1,442 1,481 Toppan became the biggest consumer of 1,500 printed materials. ECO-GREEN toilet paper, a product made of Up to now, our collection activities have 1,000 approximately 50% used Cartocans, by centered on the recycling of catalogues purchasing 647 cases (60 roles per case) for and other printed materials. From here, 500 office use. Toppan employees are using the however, Toppan will explore the possibil- high-quality ECO-GREEN. 0 ity of expanding the system to other areas 1998 1999 2000 2001 2002 (Fiscal year) as well.

Used-paper Recycling System Recycling System

Sorting for disposal Old catalogues Product delivery Customers’ Collection trucks collect old sales offices catalogues from Automatic Customers’ sales offices each sales office vending Used Cartocan collect old catalogues machine recycling bin at the office when distributing new catalogues Office Users

Distribution Regenerated as Paper Delivery to toilet paper for manufacturer New catalogues the customers’ re-commercialization logistics centers

New catalogues delivered Toppan prints on to the customer the recycled paper and uses it for new catalogues Gathered by used- (Recycled paper) paper collectors Processed in the recycling plants of paper makers Toilet rolls recycled from Cartocans as a re-commercialized product

34 Environmental Communication Column Eco-creativity—AP Carton

AP Carton—Environmentally-friendly Products Born from Communications with Customers

AP cartons used in local fisheries markets in Hokkaido (front left) are

significantly lighter Eco-creativity than existing wooden cases (back right)

Fishery port in Hokkaido

Voices of the Customers Resource saving (reduced use of logistics energy) This carton weighs 60% less than a wooden carton with the same capacity. Made of waterproof paper for recycling after use.

The AP carton was developed by the that are sturdy like wood yet light Sapporo city Fishery Hokkaido Division at the request of cus- like cardboard?” In ensuing months we Company tomers in the fisheries industry. Con- thought long and hard over the prob- Manager Mr. Funaki ventional wooden fish-transport cartons lem. The AP carton was the culmination are replaced with boxes made of of numerous trials and errors with new When we bring out the frozen crabs in an environmentally-friendly paper box materials and processing techniques. summer, the cardboard boxes absorb impermeable to water. The carton is made of a PE (polyeth- the heavy condensation. ylene)-coated cardboard held together Cardboard with a paraffin coating Troubles that had to be fixed using a special cementing technique. It effectively resists the water, but those Conventional fish-transport cartons made weighs 60% less than a wooden box, boxes are too difficult to discard after of wood consume high energy in trans- can be easily recycled as paper, and use. In addition, the paraffin coating portation due to their leaden weight. produces little smoke when burned. also makes them environmentally unsound. Disposal of the used cartons is another The environmentally-friendly AP car- The AP cartons are waterproof and serious problem in the stores where the ton was born from customers’ needs. easy to discard. They’re the perfect fish are ultimately sold. The customer’s voice will continue to solution for summer. One alternative to the wooden car- guide the company as it develops more ton is a waterproof cardboard box environmentally-friendly products. coated with paraffin. This alternative is seriously flawed, as the waxy coating Sapporo city makes the cardboard non-recyclable Fishery and produces a thick black smoke when packaging Development company incinerated. Division Manager Kazuo Togashi Mr. Suzuki “The selection of a Development of the AP carton cardboard processing Waste disposal is one of the most seri- method is a major ous problems in the fishery distribu- It all started when a customer ap- obstacle to both proached us and asked, “Do you have development and tion process (fishery company material selection. market brokerage merchandiser). any fully disposable waterproof boxes We made samples manually with an old Merchandisers strongly dislike card- fold line extruder.” board boxes coated with paraffin, as they produce a thick black smoke Marketing and Sales Representative when incinerated. Sales Promotion Shinji Kakugen When we consulted with Toppan, Division Manager “What convinced us Tomota Kiya to develop the AP they immediately recommended the “The old wooden carton? A trip to the AP carton. boxes absorbed fish market to listen water, weighed to our customers.” The cartons are waterproof, highly boats down, and resistant to pressure, and emit very lit- generated vast amounts of garbage. tle toxic gas. The AP carton is a fantas- Our customers were tic packaging product. at a loss.”

*AP is an acronym for Aqua Proof, an industry synonym for waterproof.

35 Eco-protection Activities The efforts at Toppan to reduce the environmental burden of business activities are called Eco-protection Activities. All of the people working at Toppan—at the logistics department, at every plant, at every office—aspire to conserve the global environment and foster a recycling-oriented society.

Eco-protection Production plants

Green Procurement of raw materials Pollution Energy Energy Management Waste prevention saving saving of chemical management substances Improvement of environmental performance Offices Logistics department

Green Purchasing of office Office Protective Improvement Measures Measures supplies Eco-protection, measures for of distribution adopted in adopted centered on offices and systems operations in facilities recycling and equipment energy saving

Activity Topics for Fiscal 2002

TOPIC 1 TOPIC 2 TOPIC 3 Toluene emissions into Twelve zero-emission sites Promotion of energy saving the air have been reduced now in operation activities in all departments by the widening use of environmentally-friendly ink

Toppan achieved an approxi- To qualify as a zero-emission site, a In addition to its Eco-protection mately 1,500 t reduction of toluene plant has to recycle over 98% of Activities in production plants, emissions in fiscal 2002 through the resources that it consumes Toppan also promotes Office Eco- the use of environmentally-friendly through the effective use of wastes protection Activities in its offices. non-toluene ink. Though this marks both inside and outside the site The Office Eco-protection Activi- premises. In fiscal 2002, Toppan good progress, the company must ties prioritize energy saving and operated as many as 12 certified continue to vigorously adopt the reduction of CO2 emissions. The zero-emission sites. use of non-toluene ink and com- Henceforth, the company is pur- logistics department has substan- mission new waste gas processing suing further efficiency enhance- tially reduced CO2 emissions by equipment in order to meet its tar- ments in an effort to increase the introducing low-emission vehicles get of a 90% reduction in toluene number of zero-emission sites to and improving its logistic systems. emissions (fiscal 2001 level) by 20 in fiscal 2003. The company will fiscal 2005. make maximum use of the Toppan Group network in order to achieve its zero-emission targets.

36 Overview of Eco-protection Activities To reduce the environmental burden generated by production activities, every Toppan production plant and research center has set up its own Eco-protection Promotion Committee.

Environmental Conservation (3) Resource saving: Protecting natural Offices Activities in Production Fields resources. The offices at each operational site con- Activities led by the Eco-protection (4) Management of chemical substances: tinue their efforts to work smarter. Besides Eco-protection Promotion Committee Reducing the use and emission of haz- the expansion of Green Purchasing, their Each operational site has established and ardous chemical substances and facili- efforts focus on the following: organized an Eco-protection Promotion tating their proper management. (1) Office Eco-protection centered on recy- Committee in conformity with the com- (5) Waste management: Acting to achieve cling and energy saving. pany’s Eco-protection Committee Opera- zero-emissions. (2) Conservation measures for facilities and tional Policies to direct activities to reduce equipment, such as the adoption of the environmental burden at the site level. Sharing data on environmental rainwater utilization systems at new The sites also organize their own Energy activities buildings, ice thermal-storage systems, Subcommittees and other sub-committees The Ecology Center compiles and processes motion-sensors for lighting equipment, to deliberate environmental challenges of the data reported by production plants in and so on. specific types. The principal aim of these their “Eco-protection Achievement Reports,” activities is to reduce environmental burden. then conveys the data to management. Logistics department (1) Pollution prevention: Combating the Toppan shares its knowledge of Eco- Toppan Logistics Co., Ltd., the logistics spe- pollution of air, water, and soil; acting to protection Activities with every person cialist in the Group, promotes eco-driving protect the ozone layer. within the company through two channels, by encouraging the introduction of low- (2) Energy saving: Reducing energy con- Toppan National Eco-protection Meeting emission vehicles, a “Stop Idling” cam- sumption and improving the efficiency (held semiannually) and the Toppan Envi- paign, economic-speed driving, and other of energy use. ronment Link intranet. environmentally-friendly practices in the transportation operations of the Group.

Activities of the Eco-protection Promotion Committee

National Eco-protection Meeting Management (semiannually)

Consolidation Company-wide and reporting environmental Ecology Center targets Reporting Guidance Conveying information and support Reporting

Eco-protection Promotion Committee

Verification of environmental activities in regular Eco-protection Promotion Meetings Items subject to verification

Specific 1. Reporting of activity achievements and measures taken (1) Reporting on troubleshooting analyses and Eco-protection targets at for Eco-protection issues recommendations on improvement plans Achievement production (1) Results in waste disposal and recycling (correction or prevention) for cases in question Report plants (2) Results in energy saving (2) Diffusing information on common problems in (annually) (3) Status of observance of in-house standards on different departments Revision of the air, water, and so on 5. Reporting on other environment-related information targets if 2. Information on environmental concerns outside (1) Adopting or changing chemical substances uses necessary the company (2) Changing or newly installing production processes (1) Information on the establishment and revision and facilities of environment-related laws and regulations 6. Reporting on the environmental management system (2) Information on the control of contractors for (1) Content of in-house environmental auditing Studies on industrial waste disposal consignment (2) Content of internal environmental auditing measures (3) Guidelines, requests, and information from 7. Other information on the environment Recording of government administrations, including local (1) Eco-protection-related information from the Ecology activity status municipalities Center (4) Complaints, requests, and feedback from local (2) Environment-related issues from management residents and others (3) Miscellaneous issues 3. Progress of the Eco-protection Activity Plan 8. Issues specific to the production plant, such as Issues requiring (Environmental Management Program) ecological conservation of the premises and/ modification 4. In-house nonconformities and irregularities in or the surrounding areas environmental conservation

37 Energy Saving & Prevention of Global Warming

In fiscal 2002, Toppan failed to attain its environmental targets related to energy saving and CO2 emissions. For this reason, the Group is redoubling efforts to achieve its energy saving targets laid out for fiscal 2003. Toppan is upgrading its Subcommittees on Energy and performing Energy-saving reviews at each of its production plants.

Activities for Energy Saving For the last few years, Toppan has fun- The company is also reviewing its equip- Basic policy neled its efforts into the building of new ment-management activities at each pro- Toppan takes the prevention of global production sites, the restructuring of old duction plant to ensure compliance with Eco-protection warming very seriously. The company is plant buildings, and other infrastructure the Energy-saving Law. Part of this effort constantly striving toward more effective developments for new businesses. Major includes the Energy-saving Review, a spe- ways to use energy in an effort to reduce efforts have also been made to enhance cialized review to identify and correct

CO2 (carbon dioxide) emissions classified as working environments and introduce envi- wasteful practices and processes. To pro- greenhouse gases. Toppan has established ronment conservation equipment in order vide access to ample expert knowledge, the following Medium- and Long-term to improve the bases for Toppan’s produc- the subcommittee is held in corporation Environmental Targets: tion systems. In spite of these efforts, the with the Ecology Center and affiliates in (1) To reduce energy consumption by 30% company fell short of achieving its environ- charge of Toppan’s Facility Division. per unit of output (financial amount of mental targets for energy consumption in Through the above efforts, Toppan is con- internal production) in fiscal 2010, rela- terms of the financial value per unit of solidating and restructuring its energy man- tive to fiscal 2000 figures. internal production. agement system for rationalized energy use.

(2) To reduce CO2 emissions by 7% in fiscal According to production site evalua- 2010, relative to fiscal 2000 figures. tions by unit production volume, however, To achieve the above values, Toppan the company has made some progress. sets up the Group’s company-wide targets Daily management and upgraded produc- for the next fiscal year. Each operational tion processes have improved efficiency at site also lays out its own targets using the some of Toppan’s production plants in the financial amount of production, produc- Living Environment field, and expansions tion values, and substitute production values in production quantities have improved (energy consumption per unit of produc- efficiency at most of the company’s plants tion volume) for evaluation purposes. in the Electronics field.

Achievements in fiscal 2002 Consolidation of energy management Toppan set the following targets for energy system

consumption and CO2 emissions in fiscal Since fiscal 2003, Toppan has been review- 2002: ing its management system for the ratio- (1) Energy consumption: Maintain the fiscal nalization of energy use. As first steps to 2000 level (in terms of financial value reinforce its rationalization efforts, the per unit of internal production). company is overhauling its Energy Man-

(2) CO2 emissions: Maintain the fiscal 2000 agement Policy, appointing personnel to level. handle energy management at each pro- Actual results for the year fell slightly duction plant, and holding regular meet- short of the targets: ings of the new Energy Subcommittee (1) Energy consumption: 5.1% increase com- (monthly in principle). Energy saving review pared to fiscal 2000.

(2) CO2 emissions: 3.7% increase compared to fiscal 2000. Trends in Energy-consumption CO2 Emissions Trends (1,000 GJ) (1,000 t-CO ) 18,000 800 2

16,000 14,942 700 14,155 14,451 631 640 655 14,000 13,027 600 589 11,969 545 12,000 500 10,000 400 8,000 300 6,000 200 4,000 2,000 100 0 0 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 (Fiscal year) (Fiscal year)

Notes: • Calculation base: the values were taken as ref- Notes: • Calculation base: values taken from the Law erence from the Law Concerning the Rational Concerning the Promotion of Measures to Cope Use of Energy. with Global Warming. • Standards for the scope of data acquisition • Standards for the scope of data acquisition Energy saving inspection at site were changed in fiscal 2000. were changed in fiscal 2000.

38 Medium- and Long-term Concepts for Greenhouse Gases City Gas Consumption Environmental Targets and Utilizing Kyoto Mechanisms Toppan’s CO2 emissions are expected to Environmental Efficiency Index Eco-protection Review of Medium- and Long-term increase as businesses expand. Among (1,000 m3) 90,000 Environmental Targets energy-saving measures now implemented 78,443 80,000 Under Toppan Vision 21 in 2000, Toppan throughout the company, those imple- 71,041 has grouped its businesses into five sepa- mented in-house are still expected to fall 70,000 60,927 rate fields and promoted activities in each. 60,000 short of their desired effects. To address 54,388 Toppan has been actively starting new the problem, Toppan has been directing its 50,000 47,298 businesses and expanding existing ones eyes outward. In addition to participating 40,000 over the past several years. In its environ- in the greenhouse gas emission permit 30,000 mental monitoring, however, the company transaction workshops held by Ministry of has encountered difficulties in evaluating the Environment, the company is consider- 20,000 two environmental indices of company- ing adoption of the Kyoto Mechanisms for 10,000 wide activities used since the 1990s, namely, future emission transactions. 0 1998 1999 2000 2001 2002 energy consumption and CO2 emissions. (Fiscal year) To improve its grasp of the actual levels, the company will be reviewing Medium- and Long-term Environmental Targets by Ratio of Energies by Type for Kerosene and A-grade Heavy December 2003. Fiscal 2002 Oil Consumption (converted into heating values) Kerosene A-grade heavy oil (kR) Environmental Efficiency Index 18,000 Light oil and gasoline Toppan will introduce a series of Environ- less than 1% 16,000 15,892 14,838 mental Efficiency Indices to facilitate the LPG 2% 14,118 14,536 13,690 14,000 13,179 sustainable development of its environ- A-grade heavy oil 13,013 12,599 3% 12,000 11,959 mental businesses. 11,228 Upon a completion of a trial period in Kerosene 3% 10,000 fiscal 2003, the indices will be set up as tar- 8,000 City gas gets in fiscal 2004. 24% 6,000 Toppan has established four main Envi- 4,000 ronmental Efficiency Indices, as described on P.9. Targets have already been set to 2,000 Electricity 68% 0 improve the efficiency with which environ- 1998 1999 2000 2001 2002 mental burdens are reduced. (Fiscal year) In fiscal 2003, for example, the company aims to obtain a value of 1.54 for Sales amount/CO2 emissions, indices of the effi- Electricity Consumption LPG Consumption ciency with which environmental burdens are reduced. A ratio of 1.39 was achieved in (MWh) (t) 1,200,000 6,000 fiscal 2002. 5,570 1,037,390 5,261 1,006,611 1,005,497 4,919 1,000,000 941,670 5,000 878,512 4,550 4,018 800,000 4,000

600,000 3,000

400,000 2,000

200,000 1,000

0 0 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 (Fiscal year) (Fiscal year)

Note: Standards for the scope of data acquisition were changed in fiscal 2000.

39 Prevention of Pollution & Management of Chemical Substances Toppan is reducing its environmental burden and preventing pollution by complying with legal regulations and establishing more stringent control standards of its own. Based on the PRTR Law, Toppan actively promotes the management of chemical substances.

Activities for Pollution Protecting the ozone layer Prevention In March 1994, Toppan abolished the use Basic policy of specific CFCs (chlorofluorocarbons) and Eco-protection Toppan is now developing activities to pre- 1,1,1-trichloroethane, two ozone-depleting vent pollution and minimize the environ- substances that were mainly used in clean- mental burden of its production activities. ing processes. In addition, Toppan regu- Through these efforts, the company will larly updates the 17 of its refrigerating acquire an accurate picture of the actual machines throughout the company that state of the various environmental burdens still use CFCs (five units abolished in fiscal and clarify these burdens for each opera- 2002). Measures to reduce HCFCs (Hydro Twenty eels have been living in water discharged from the Kumamoto Electronics plants for the last tional site. The company is decreasing its chlorofluorocarbons), a CFC-substitute used three years environmental burden and preventing pol- in cleaning processes, will be determined lution by complying with in-house control in fiscal 2003, and targets will be set from cessing and cleaning. In addition to actively standards (established by the Eco-protec- fiscal 2004 onward. reducing water intake and discharge, the tion Promotion Committee for each opera- company is making more effective use of tional site) even more stringent than the Preventing water pollution its water resources with its efficient recy- legal regulations. Toppan reduces water pollution at its cling systems. plants by installing wastewater treatment Preventing air pollution facilities tailored to reduce the environ- Preventing soil pollution To prevent air pollution, Toppan controls mental burden imposed by the production Toppan’s principal safety concern in man- smoke-producing facilities such as boilers processes. The company has also intro- aging its chemical solution storage tanks is and incinerators by switching fuels and duced a 24-hour monitoring system for to block the leakage of fluids. Walls have managing operations under appropriate treatment facilities to cope with seasonal been constructed around the storage combustion conditions. At the same time, changes in BOD (biological oxygen demand) tanks, and workers regularly inspect the the company introduces waste gas treat- and COD (chemical oxygen demand) val- tanks and piping in order to detect cracks ment facilities for thorough control of air ues. The environmental audits performed and aging before soil pollution can occur. pollution prevention. in fiscal 2002 identified no major noncon- The company also investigates the In addition, Toppan has abolished seven formities with laws or regulations that potential for soil pollution when expand- of its 11 incinerators in order to reduce could have directly led to grave accidents. ing, modifying, or removing buildings. At dioxin emissions in fiscal 2002. The four Toppan is treating wastewater internally the old plant site in Fukuoka, the measured incinerators still in service have been by building closed-process water systems values proved to exceed the standard lim- updated and fitted with advanced dioxin- at sites for electronics production and plat- its imposed for the treated soil by the removal equipment. ing processes, operations that consume municipality in fiscal 2002. Upon consulta- large amounts of water for chemical pro- tion with the Prefecture and city, about 300 m3 of polluted soil was excavated and back- filled with healthy soil. Through the above NOx Emission SOx Emission operations, the polluted soil was ade- quately treated and disposed in conformity 300 (t) (t) 100 with the Waste Disposal and Cleaning Law. 237 244 243 250 80 76 68 200 59 60 150 40 100

50 20

0 0 2000 2001 2002 2000 2001 2002 (Fiscal year) (Fiscal year)

Notes: • Calculation base: values taken from the Environ- Notes: • Calculation method: sulfur (S) content of the mental Activities Evaluation Program (April 2002). fuel used at each operational site is employed • The calculations methods have changed since as the basis. After converting the value into the fiscal 2002. Data from previous years has been quantity corresponding to SO2, the quantity of re-estimated using new methods. SOx emissions from in-house incinerators is added thereto. • The calculations methods have changed since fiscal 2002. Data from previous years has been re-estimated using new methods. Waste gases combustion facility

40 The results of the activities show the fol- Managing Chemical Substances Toluene Emission into the Air Basic policy lowing: (t) Toppan is managing its chemical sub- (1) Toluene emissions into the air: 19.9% 8,000 6,668.6 Eco-protection stances in conformity with the PRTR* Law reduction. since the law went into force in July 2000. (2) Dichloromethane emissions into the air: 6,000 5,343.2 Management has systematically studied 21.1% reduction. 5,763.3 the present status in considerable detail, While Toppan successfully reduced 4,000 and it continues to explore the possibility dichloromethane emissions to below the of using alternatives in further efforts to targeted level, it failed to reach its goal in 2,000 accomplish Toppan’s targets. reducing toluene emissions. The main obstacle to reduction efforts was an 0 2000 2001 2002 2003 2004 2005 * PRTR (Pollutant Release and Transfer Register) increase in products that cannot be easily A system to register and publicly announce the (Fiscal year) amounts of hazardous chemical substances be printed with non-toluene inks. In fiscal released into the environment and the transferred 2003, Toppan reestablished the following amounts contained in waste. Medium- and Long-term Targets: reduce Dichloromethane Emission into dichloromethane emissions to zero, and the Air (t) Achievements in fiscal 2002 60 reduce toluene emissions by 90% relative For fiscal 2002, Toppan set up the following 49.9 to the fiscal 2001 level by fiscal 2005. 50 targets to reduce the amounts of hazardous Toppan improved the accuracy of its chemical substances released: 40 measurement and analysis, wastewater 32.3 (1) Toluene emissions into the air: 30% processing, and reviews of raw materials. 30 reduction relative to the fiscal 2001 These improvements helped the company 25.6 level. 20 achieve reductions in the emissions of (2) Dichloromethane emissions into the air: 10 eight types of chemicals. 10% reduction relative to the fiscal 2001 level. 0 2000 2001 2002 2003 2004 2005 (Fiscal year)

PRTR Investigation at Toppan and Results for Fiscal 2002 (unit: kg/year) Transferred Transferred Released PRTR No. Chemical substances amount in amount for amount 1. Air 2. Water 3. Soil sewerage system disposal 16 2-aminoethanol 000000 24 n-alkylbenzensulfonic acid and its salts 479 0 479 0 0 11,005 40 Ethylbenzene 66,355 66,355 0 0 0 9,800 44 Ethylene glycol monoethyl ether 50 5000090 63 Xylene 80,922 80,922 0 0 0 10,964 68 Chromium and chromium (III) compounds 49 0 49 0 0 19,193 69 Chromium (VI) compounds 000052,656 132 1,1-dichloro-1-fluoroethane (HCFC-141b) 14,337 14,337 0 0 0 8,288 145 Dichloromethane 13,186 13,186 0 0 0 5,391 179 Dioxins — (172.9 mg) ——(0.3 mg) (2,349.9 mg) 207 Copper salts (water-soluble) 55 0 55 0 34 345,421 227 Toluene 5,342,119 5,342,119 0 0 0 933,910 230 Lead and its compounds 30 0 30 0 0 8,020 231 Nickel 000000 232 Nickel compounds 236 0 236 0 0 658,612 254 Hydroquinone 0000012,888 309 Poly (oxyethylene) = nonylphenyl ether 5,953 5,953 0 0 0 28 310 Formaldehyde 199 199 0 0 0 337 311 Manganese and its compounds 173 0 173 0 0 3,719

Notes: • Period of computation: April 1, 2002 to March 31, 2003. • Subjects of notification: 19 chemicals above. • Operational sites covered: Operational sites that handle 5.0 t/year or more of specified class I designated chemical substances annually (and 0.5 t/year or more of class I designated chemical substances). Overseas subsidiaries and independent subsidiaries are not included in the calculations. • The amount of transported outside of the operational sites as wastes (including inverse onerous contract and charge-free recycling) is accounted for as a transferred amount for disposal.

41 Managing Waste Through its skillful management of waste materials, Toppan has reduced its final landfill disposal amount by 16.7% compared to the previous fiscal year. An increase to 12 zero-emission operational sites has been achieved. Toppan will continue to actively promote the reuse of waste as recycled resources.

Waste Management Activities (3) Recycling Reusing Waste as Recycled Basic policy (4) Heat recovery Resources Wastepaper, a waste product derived pri- The company will carefully dispose of any Sorting wastes and recycling Eco-protection marily from Toppan’s Information & Net- waste that continues to be generated in wastepaper works and Living Environment fields, spite of the foregoing efforts. Manifests of Toppan considers the sorting of waste comprises 73.9% of the total waste dis- that disposal will also be kept. materials as the foremost step in the charged from Toppan’s operational sites. process to reuse waste as a recycled Waste acids (such as waste etchant from Achievements in fiscal 2002 resource. The Group has set up several sets plants in the Electronics field) and waste In fiscal 2002, through company-wide of waste-sorting criteria suited to the con- plastics (from plants in the Living Environ- efforts, Toppan reduced its final landfill dis- ditions at each operational site. To instill ment field) also make up substantial por- posal amount by 16.7% relative to the fiscal greater awareness of the waste sorting tions of the total waste discharge. 2001 level, far surpassing the 10% reduc- process and its importance, management As an incentive for improved waste tion targeted for the year. The company develops educational materials and activi- management performance, the company attributes this success to its more thorough ties that encourage employees to explore has set a target to reduce its final landfill approach to the sorting and recycling of methods for maximizing the reuse of waste disposal (direct landfill disposal amount + wastes. Further efforts in waste manage- materials. landfill disposal amount of residues from ment will focus on two important areas, Most of the waste generated at Toppan intermediate treatment) by 90% in fiscal sludge treatment in the Electronics field is wastepaper. The company is already 2010, relative to the figure for fiscal 2000. (which is continually working on recycling recycling 92.5% of that wastepaper, and The company uses the following waste-dis- and reuse of generated waste) and the efforts are underway to recycle the remain- posal methods to realize this goal (listed in more efficient use and recycling of ing 7.5% as a recycled resource. The recy- the order of priority): paper/plastic-layered materials in the Liv- cling ratio of wastepaper currently stands (1) Reduction (in waste generation) ing Environment field. at 98.9%, including all recycled resources. (2) Reuse

Waste Disposal Flow

Total amount of waste generation Sorting and intermediate processing

Incinerated Heat recovery on site Recycled (93.1%) Heat release Total amount of Cinders Regeneration waste discharge disposed 76.8% Cinders 1.2% Wastepaper, plastics, etc. Others 0.4% Heat recovery and others Glass chips 0.3% 16.3% Waste acid, Wooden chips 0.6% waste alkali, metal chips, etc. Metal chips 1.6%

Waste alkali 2.1% Heat release Sludge 2.5% Cinders, sludge, etc. Waste oil 2.9%

Waste acid 7.0% Landfill Waste plastic 7.4% Waste plastics, metal chips, etc. 6.9% Wastepaper 73.9%

(% by weight ratio)

42 Development of Zero-emissions a recycling rate (regeneration and reuse) of Reuse of waste as recycled resources Target 95% or more, and certified as such by the Two important tasks in the work towards Starting point of activities Ecology Center in the head office. Eleven zero-emission efforts are to use wastes more Eco-protection Toppan continues to devote a great deal of sites were certified under the new criteria effectively in-house and to develop exter- attention to waste management in order to in November 2001. nal communication on recycling. Toppan is maximize its reuse of waste as a recycled In 2002, besides the modification in the committed to reusing the waste from each resource and to achieve its ultimate target criterion for the recycling rate, one of the process throughout the company. of zero-emissions. In 1999 the company zero-emissions criteria was tightened from In fiscal 2002, Toppan reused 11,983 t of chose a number of plants as zero-emission 95% to 98%, in keeping with the social waste solvent and harnessed the heat from models and launched activities to achieve forces pushing for a recycling-oriented the incineration of 19,171 t of waste col- zero-emissions targets at those facilities. society. To further improve performance at lected in-house. The company consigns Based on the results achieved at its model the 17 operational sites that achieved recy- the recycling of acids to third parties and plants, Toppan started to certify zero-emis- cling rates of 98% or more in fiscal 2001, distributes the recycled acid to suppliers. In sion plants In November 2001 (plants that Toppan examined specific issues blocking fiscal 2002, 9,784 t of acid was recycled and achieve zero-emissions targets.) achievement of the zero-emissions target put back into circulation. from technical, economic, and regional Definition of zero-emission standpoints. Twelve of the sites were certi- Toppan encountered a major obstacle in fied at the Toppan National Eco-protection achieving this target. As the recycling rate Meeting held in November 2002. was largely dictated by external factors, Toppan targets the operation of a total progress inevitably required cooperation of 20 zero-emission plants in fiscal 2003. with outside recycling partners. In a review Zero-emissions will be achieved by making of its certification criteria, Toppan rede- maximum use of the Toppan Group network. fined a zero-emissions plant as a plant with

Plants Certified for Zero-emissions Regenerating/Recycling Rate (Certified in November of 2002) in the Total Waste Discharge Total waste Total recycled Recycling Plant generated (tons) waste (tons) ratio (percent) (%) 100 Fiscal 2001 Fiscal 2001 Fiscal 2001 93.1 80 91.0 1 Asaka plant (Commercial Printing) 15,365 15,118 98.39 88.4 78.4 82.7 2 Toppan Printing Communications Co., Ltd. 20,348 20,289 99.71 60 3 Itabashi plant (Publications) 17,297 17,172 99.28 4 Toppan Graphic Co., Ltd. 54,851 54,682 99.69 40 5 Toppan Graphic Co., Ltd. (Plant No. 4) 1,920 1,906 99.27 20 6 Toppan Seihon Co., Ltd. 32,970 32,852 99.64 7 Toppan Plastics Co., Ltd. (Sagamihara plant) 174 174 100.00 0 1998 1999 2000 2001 2002 8 Osaka Toppan Display Co., Ltd. (Oyodo plant) 3,851 3,845 99.84 (Fiscal year) 9 Itami plant (Packaging) 9,422 9,395 99.71 Kansai Commercial Printing plant, Takino site 10 9,978 9,891 99.13 Waste Discharge (Final Waste (Commercial Printing) Disposal) and Unit Disposal 11 Takino Packaging plant (Packaging) 4,192 4,191 99.98 Proportioned to Internal Output 12 Kumamoto Toppan Co., Ltd. 5,440 5,360 98.53 Total waste discharge (1,000 Final disposal tons) Unit final disposal (index) 400 100

337.2 Unit final disposal (index) Total waste discharge 334.6 311.5 314.7 318.7 (final disposal) 300 75 62.3 72.9 50 200 40.2 29.6 22.5 100 25 67.4 57.8 39.2 28.5 22.0 0 0 1998 1999 2000 2001 2002 (Fiscal year) RPF (Refuse Paper and Plastic Fuel) equipment: facility Waste plastic compression machine Note: Unit consumption: fiscal 1990 as 100 for recycled solid fuel derived from wastepaper and waste plastics

43 Office Eco-protection Activities Office Eco-protection is the name Toppan has selected for the environmental activities it undertakes in its offices: chiefly recycling, energy saving, and resource saving. Office Eco-protection starts from the consciousness of the individual employees. The company has also been practicing Green Procurement since fiscal 2002.

Efforts in Offices Since the introduction of Toppan’s Eco- Green Purchasing and Green Office Eco-protection protection Activities, every employee has Procurement Toppan calls its environmental activities acquired a host of daily energy-saving The Green Purchasing approach Eco-protection at offices Office Eco-protection Activities. habits, including the adjustment of air- If Toppan is to contribute meaningfully to Broadly speaking, these activities can be conditioning to manage temperatures, the achievement of a recycling-oriented placed into three categories: recycling, the powering-down of lighting and office- society, the company believes that it must energy saving, and resource saving. automation equipment during lunch breaks, place priority on environmentally-friendly the use of stairways instead of elevators, products as a purchaser. Management Recycling activities and so forth. established its Basic Policy on Green Pur- As a result of the recycling activities under- chasing in January 1999 and promptly initi- taken in fiscal 2002, the recycling rate at Conservation of water through use ated Green Purchasing throughout the Toppan’s buildings was 67.0%, about the of rainwater corporation. same rate of the last fiscal year. At the Toppan introduced rainwater use systems Under the Green Purchasing policy, Toppan Koishikawa Building, the single in Honjo GC building in April 1994. The Toppan selects and purchases products largest source of office waste among Toppan Koishikawa Building also intro- that meet its in-house Green Purchasing Toppan buildings, the rate was 89.2%. The duced a used-water treatment/recycling standards, especially for designated prod- waste sorting process continues to grow system that collects water from cafeterias uct categories: office paper, copiers and more thorough. to reuse for flushing toilets. printers, personal computers, stationery, office supplies, and toilet paper. Toppan Energy saving uses 100% recycled paper for internal Among other energy-saving endeavors in printed materials, company envelopes, and Toppan offices, the company is now installing employee diaries, and 70% recycled paper energy-saving fluorescent lamps and motion for business cards. sensors for its lighting equipment.

In-house Green Purchasing Standards Wastepaper Recycling Rate Utilization of Rainwater and Achievements in Office Buildings Rate achieved Designated Purchase (%) (m3) 80 10,000 products standards Fiscal Fiscal 2001 2002 Honjo GC building 9,391 69.4 67.0 70 Toppan Koishikawa Building Must be made of 61.9 8,000 7,701 Office 70% or more 60 recycled paper, 99.2% 98.6% paper with a white-sheen 50 6,000 of 80% or less. Must have an 40 4,651 Copiers automatic sleep or shutdown function 30 4,000 and 97.6% 97.9% 3,258 3,223 after remaining idle 2,754 printers for a specified 20 period. 2,000 10 Must have an automatic sleep or 0 0 shutdown function 2000 2001 2002 2000 2001 2002 Personal after remaining idle (Fiscal year) (Fiscal year) for a specified 99.8% 100.0% computers period, with limited electricity consumption in sleep mode. Must be made of Toilet 100% recycled paper paper, with a 100.0% 100.0% white-sheen of 80% or less. Must bear an appropriate certification Stationery (Eco-Mark, Green Mark, etc.) or 85.7% 86.6% and office classification as an supplies environmentally- friendly product in the manufacturer’s Paper sorting station in offices (Akihabara office Used-water recycling facility (Toppan Koishikawa catalogue. building) Building)

44 Approach for Green Procurement Toppan’s Green Procurement Standard

Since April 2002, the Toppan Group has Paper Level 1 Level 2 Remarks introduced a Green Procurement system

Treefree paper is also Eco-protection 1. Use of recycled Must be made of 100% included in the calculation Must be 70% or more that conforms to the Green Standard for paper recycled paper of the percentage of Offset Printing Services established by the recycled paper 2. Consideration of Must be approximately Must be approximately Excluding high quality Japan Federation of Printing Industries. colored paper and white-sheen 70% or less (up to + 4%) 80% or less (up to + 4%) special paper Toppan has been setting a Toppan 3. Consideration of Must be 12 g/m2 or less Must be 30 g/m2 or less Green Procurement Standard based on its coating (8 g/m2 max. for one side) (17 g/m2 max. for one side) Basic Policy on Green Purchasing since fis- Level 1 Level 2 Remarks cal 2002. Under recent trial examinations, Offset printing ink* 1. Non-use of 19% of all paper (level 2) and 88% of all off- Must conform to the NL (Negative List) designated by substances harmful the Japan Printing Ink Manufacturers’ Association set ink (level 2) purchased were rated as to human body adequate products. Toppan will be review- 2. Non-use of ing its aggregation standards in fiscal 2003 chlorinated resin Must not include chlorinated resin and pushing its targeted rates for adequate 3. Consideration of Must identify the PRTR- Consideration of PRTR- PRTR-designated designated substances products up by 5%. designated substances substances used (MSDS to be prepared) 4. Limitation of VOC The proportion of petroleum Must be aromatic-free ink, (Volatile Organic solvent is 15% or less soy ink, or recycled Compound) emission (except for rotary press ink) vegetal-oil ink *Excluding gold, silver and pearl inks.

New Office Friendly to Environment and Ecosystem

Toppan Forms Co., Ltd established a new office at Shiodome, Tokyo, an extremely modern and ambitious urban redevelopment project. The office has been open since June 2003. The redevelopment is near the Hamarikyu Garden, a famous public garden in Tokyo inhabited by many plants and animals. Companies partici- Offices in the building The Shiodome building pating in the redevelopment consid- features, including planted trees to ered environmental effects imposed on provide fresh, natural air. the ecological system around this area The rest of the building is environ- in the design and construction of the ment friendly as well, designed for optimal buildings and city block, based on an energy saving and resource efficiency environmental impact assessment con- using advanced systems modeled after ducted by the city of Tokyo. the outstanding energy-saving features Toppan Forms developed green of the Toppan Koishikawa Building. spaces around its building by planting The air-conditioning system incorpo- Japanese kerria and bush clover. rates three sub-systems that work Toppan Forms will continue to audit together to limit daytime electricity environmental impact by checking consumption: a gas conditioning sys- the growth of trees planted in the tem, ice thermal storage system, and Hamarikyu Garden. (The Tokyo Metro- building frame thermal storage system. politan Government uses the secular The “Low-e double glass” adopted changes of these plants as an index of for the windows increases thermal effi- environmental burden within the area.) ciently by shielding the building from The 18th floor of the new Toppan external heat through multiple design Forms building has an open-terrace features, including a curtain of air circu- designed with environmentally-friendly lating over the glass surface. Open rooftop terrace

45 Efforts in Logistics Toppan Logistics Co., Ltd. handles the logistics of the Toppan Group. The main environmental challenge in logistics is to reduce environmental burden caused by transportation. Among other activities, this subsidiary is actively introducing low-emission vehicles, eco-driving, and other new systems.

Issues and Efforts in Distribution Eco-driving to reduce the number of vehicles, utilize Departments Toppan Logistics Co., Ltd., increased the different types of transportation vehicles, Reducing air pollutants fuel efficiency of its operations by around and shorten transportation distances. Eco-protection To reduce the environmental burden 10% from the fiscal 2001 level by actively Toppan Logistics Co., Ltd., has intro- imposed, the logistics departments of the promoting eco-driving. To meet its target duced a new transportation system called Toppan Group are undertaking and devel- of a 20% reduction in fiscal 2003, the sub- WARTS (Wide Area Relay Trucking System). oping various activities to reduce air pollu- sidiary holds training sessions for all of its Based on consolidated delivery instruc-

tants, including the CO2, NOx and PM employees and training in practical eco- tions it receives from logistics departments, emitted by the company trucks. All mea- driving skills for employees individually WARTS coordinates cargoes shipped out sures are promoted based on the environ- (semiannually). Both measures will be from plants and operational bases in differ- mental management system. deployed to partner companies this year. ent areas, allowing the consolidated shipment of multiple cargoes from operational Introducing low-emission vehicles System operation for CO2 reduction bases in specific areas. The system offers Company cars are being converted to low- Toppan Logistics Co., Ltd., has expanded its the following advantages: emission vehicles (adapted to standards of Environmentally Balanced Logistics Man- (1) Reduces the number of trucks operat- eight municipalities surrounding Tokyo) agement system in order to further reduce ing by an average of about 200 units per throughout the company. As of July 2003, CO2 reduction. As an initial goal for fiscal month (on a 4-ton truck basis). the introduction rate was 30%. In addition, 2010, the subsidiary targets a 10% reduc- (2) Considerably reduces packing materials. CNG (compresses natural gas) cars have tion of CO2 by unit energy consumption The system is currently deployed not been in service since August 2003. compared to the fiscal 2002 level. The three only in Tokyo, but also the Kansai and principal strategies to reach this target are Chukyo districts. Circuit transportation is also adopted to increase the scale of the loads. Trucks driving the circuit can transport consolidated Fuel Efficiency (km/R) shipments to plural delivery locations. 4.0 The second strategy for CO2 reduction, 3.88 3.8 the shortening of transportation distances, is achieved by increasing the scale of loads 3.6 using the dispatch support system. Toppan 3.42 3.42 3.39 3.50 Logistics checks the dispatch schedule to 3.4 determine the daily shipment amounts, 3.2 then reduces the transportation distances by calculating the most efficient trans- 0 portation routes on the transportation Fiscal 2001 Fiscal 2001 Fiscal 2002 Fiscal 2002 Fiscal 2003 First half Second half First half Second half First 3 months schedule, separating via- and direct transportation, and employing various other Low-emission vehicle logistical techniques. The third activity, conversion of trans- Toppan’s Logistics System portation vehicles, is taking place through a modal shift at Toppan Logistics. This modal shift is a conversion from mainline transportation by car to rail transportation, Destination a more energy-efficient method for the transport of goods. The modal shift rate in Operational Consolidated WARTS truck fiscal 2003 is 22% by cargo weight. Toppan sites information Logistics will continue promoting the modal shift in the future.

Kansai District Tohoku District

Kyushu District Kanto District Chubu District

46 Environmental Communication Column Eco-protection—Satte Plant

Toppan’s Satte Plant—Seeking Profits through Environmentally-friendly Businesses

The Satte plant (Interior Decor Materials Several steps have been taken to Division) manufactures wallpaper and improve the recycling process at the decorative sheeting (Ecowall, Ecosheet, Satte plant. Foremost among them is Eco-protection and so on) as environmentally-friendly the introduction of a vibration cutter products entirely without the use of and volume reducer. The cutter cuts the polyvinyl chloride. Since earning its sheet at lengths that dramatically reduce ISO14001 certification in March 2000, the loading space in transportation, and the plant has continued to expand its the volume reducer minimizes paper activities for improved environmental tubes and other paper before sorting. Environment Section Manager of Satte plant: friendliness and efficiency in the use of Masashi Amano resources. New business opportunities Environmental communication with through better communication with suppliers and the public recycling manufacturers Precision sorting of waste at The lobby of the Satte plant building is The Satte plant used to have a simple the Satte plant decorated with panels displaying envi- relationship with recycling manufac- The plant generates two major recy- ronment-related data. Visitors on busi- turers: it asked them to take away clable wastes, the first from the Ecosheet ness or from the public are free to request materials. The relationship grew more process and the second from the wall- any of the environmental reports, site complex when it began rationalizing paper process. eco-reports, and eco-improvement dec- recycling costs. The waste from the Ecosheet process larations that Toppan has issued, and to More specifically, the plant seeks to consists of pure polypropylene from examine the actual products and recy- bring in recycling profits by enhancing the so-called clear layer used to cover cled materials that Toppan produces at added values. This can be accomplished printed decorative sheeting. Once the Satte plant. These measures help by preparing the materials before hand- processed by a simple crushing treat- the company improve its communica- ing them over, or employing stricter cri- ment, the waste material is immediately tion with others. ready for reuse at an overall expense teria when selecting manufacturers. that the plant expects to recover. As a result of the efforts described so Recycling Efficiency (%) The waste from the wallpaper process far, the Satte plant has improved its 90 80 77.1 87.0 consists of defective rolled samples recycling rate from 34.4% to 77.1% 70 after many process steps such as print- within the last two years. Moreover, it 60 50 47.5 ing, application of PP, and winding. This expects to attain a recycling rate of 40 34.4 waste is difficult to reuse and has a poor 87.0% or better in fiscal 2003 and aims 30 at zero-emission in fiscal 2004. recycling efficiency. 0 2000 2001 2002 2003 (target) (Fiscal year) Recycling Process and Items

Waste from Ecosheet process Reused as PP

PP Printing application Winding Product

Defective samples from each process step are sent to sorting Used as materials or incinerated to harness heat energy Sorting of waste (into 8 types) at manufacturing site Environmental communication space in the lobby

Vibration cutter Volume reducer Waste, recycled materials and products

47 Environmental Communication Activities To add substance to Toppan’s environmental activities, the company must develop an awareness of environmental practices not only among its employees, but among the many people outside the company with whom Toppan employees do business. To accomplish this, the Toppan Group is conducting communication activities on a variety of levels. These include awareness- raising efforts both inside and outside the company and collaborative activities with local communities. niomna Communication Environmental Communication Communication Social contribution outside the company inside the company activities

Customers

Logos Disclosure of Awareness-rising information Award system Lectures and seminars Participation Forestation project in expositions Forestation fund Support for NPOs Local communities

Disclosure of information Community- friendly plant Participation in local events

Activity Topics for Fiscal 2002

TOPIC 1 TOPIC 2 TOPIC 3 Participation in a regional Environmental workshop Two environmental activities trade show, Made for support program cited at the President’s the Environment Eco-Workshop Awards ceremony in fiscal 2002

Toppan supports and participates More and more children are learn- In fiscal 2002, Toppan’s CEO cited in regional events for better coming about environmental prob- two outstanding achievements. munication. lems in environmental lessons The first citation was conferred The Itabashi plant, a facility spe- integrated in their school curricula. in recognition of the increased cialized in the Information & Net- Toppan would like to connect brand power achieved through works businesses, presented its children with companies and asso- the certification and rapid con- environmentally-friendly products ciations actively engaged in envi- struction of the in-house manage- and panel displays of its environ- ronmental works. As a first step, ment system leading up to it. The mental activities at Made for the Toppan suggests the develop- second was conferred to laud the Environment, a trade show held by ment of special children’s work- men and women who voluntarily the Itabashi Environment Confer- shops on the environment. introduced the outstanding sys- ence Committee, a local environ- tem for reducing the environmen- mental group in Itabashi. tal burden of gravure plating.

48 Overview of Environmental Communication Activities Environmental communication plays an important role in all of Toppan’s Environmental Management, Eco-creativity, and Eco-protection Activities. Toppan promotes environmental management through environmental communication.

Concept of Environmental During the second stage, Environmental Promotion of environmental Communication Environmental Communication Citizenship, the company defines its roles management Three environmental stages as a member of the society, establishes its Environmental communication links Toppan Toppan believes that environmental man- relationship with the general public, and with the various stakeholders involved in agement should be promoted in three sep- engages in environmental and commu- these three stages, both inside and outside arate stages. nity-oriented activities outside the com- the company. In the first stage, Environmental Corpo- pany in collaboration with citizens. Toppan believes that environmental ratization, the company needs to develop In the third stage, Environmental Social- communication is the engine to establish environmentally-friendly products and ization, the company forges its strategy relationships and promote environmental technologies, reduce environmental bur- to promote a sustainable and recycling- management. den through manufacture, distribution, oriented society outside of its in-house sales, and clarify the activities possible with framework. Fields of collaboration engage an environmental management system. industry, academia, government, and the Collaboration with other Group companies public at large. and in-house departments is vital in this first stage.

Categories of Environmental Communication Activity

• Organized and hosted the Environmental Communication Exhibition 2002 • Exhibitions at Eco-Products 2002 • Operated the Environmental monitoring system, ecollable Net • Operated the Tokai Co-op catalog recycling system • Operated the Cartocan recycling system • Donated to the Forest Fund (forest saving and environmental education funds) • Invested in a joint forestation venture in Australia

STAGE 3 • Issued the Environmental Report and Site Reports Environmental • Environmental declaration through Toppan’s Socialization Label for Environmentally-friendly Products • Production of Phase of Environmental Communication • Risk communication • Activities for symbiosis with local areas • Ecosystem-saving activities

STAGE 2 • Established Toppan’s Declaration on the Global Environmental Environment Citizenship • Established the Ecology Center • Structure and operation of environmental management system • Environmental Accounting, environmental education, environmental compliance • Eco-protection Activities at production sites • Office Eco-protection Activities • Introduced Low-emission vehicles; Promoted STAGE 1 eco-driving Environmental • Developed Toppan Environmentally-friendly Corporatization Products • Evaluated products based on LCA and prior products assessment • Promoted environmentally-friendly printing service • Promoted support business for preparing environmental reports • Adopted Toppan’s Environmental Logo • Introduced Toppan Environmental Link • Established the President’s Ecology Awards

49 Communication inside the Company By building up an information-sharing system using the in-house intranet, Toppan strives to share its environmental philosophy and raise employee consciousness on environmental issues. The President’s Ecology Awards are bestowed to commend outstanding environmental activities.

niomna Communication Environmental Adoption of Toppan’s Principal Communication Toppan Environmental Link Environmental Logo Activities Inside the Company The Toppan Environmental Link was set up Environmental awareness of every Earth Month and energy-saving on the in-house intranet in May 2001 as a employee months channel through which to share environ- Every employee within Toppan must share To promote participation throughout the mental information. Links are provided to an awareness of environmental issues if the entire company, the employees designate environmental information and data on company is to fully understand its own each June as Earth Month, and February environmentally-friendly products both impact on the environment and promote and August as energy-saving months. inside and outside the company in order comprehensive environmental activities. To prepare for the various activities con- to raise the environmental awareness of To help propagate this environmental ducted during Earth Month, Toppan spon- employees. awareness, Toppan adopted an environ- sors a contest to select environmental Toppan began reviewing the system in mental logo in 1999. This logo is now slogans corporate-wide. The winning slo- fiscal 2003 and has provided interactive printed on in-house publications, business gans are printed on posters and distributed input to activate in-house communication cards, stationery, and so on to provide a corporate-wide for display throughout the activities. ubiquitous reminder of the environment. month. In the fiscal 2003 contest, the company chose eight winning slogans in three categories, from among 3,902 proposed Toppan’s Environmental Logo slogans sent in by employees: the No. 1 slogan for the month, two outstanding slogans, and five exemplary slogans. During the energy-saving months, each operational site posts inspirational posters and slogans to promote energy-saving activities. To expand awareness of these inspirational activities throughout the company, the details of these and other activities are presented to other sites Toppan Environmental Link through activity reports prepared at the

Through its Eco-protection and Eco-creativity end of each energy-savings month. Activities, Toppan aspires to devote increasing President’s Ecology Awards attention to the global environment. This corporate philosophy and conduct are expressed in the Toppan newly incorporated the Ecology logo. Toppan’s environmental efforts and actions Awards in its biannual lineup of President’s are symbolized as a seed that will germinate and grow. The stalk shooting out of the seed symbol- Awards as a strategy to stimulate the izes the “E” of ecology, and its two leaves repre- environmental efforts of employees. Two sent Toppan’s Eco-protection and Eco-creativity Activities. achievements were selected and awarded in fiscal 2002: the first FSC-CoC certification Poster for Earth Month in the printing business sector and the introduction of an environmentally- friendly gravure plating system. Prizewinning Slogans in Fiscal 2003 INo. 1 Slogan An environment declaration to myself: Kyosuke Fuji (Hokkaido Division) Think always with an eco-certified mind. IOutstanding Slogans Resources are limited. Efforts are not. Act now for Keiji Okazaki (Toppan Graphics Communications the environment. Kansai Co., Ltd.) Change comes from attitude. Make Toppan the No. 1 Takehiko Yanagawa (Publications Printing Division) friend to the environment! IExemplary Slogans Designing products with reduced waste. Efficient and Masaru Oda (Packaging Division, Kansai Division) effective production. Two hands are better than one; 10,000 hands are better Yoshio Kawaguchi (Toppan Hokkaido Insatsukako than two. Thinking environment? Think network! Co., Ltd.) Waste nothing as you work, and throw nothing away. Yoshimi Todate (Toppan Printing Communications FSC-CoC certification awarded at the President’s Keep the Earth clean. Regenerate the Earth with wise ideas. Co., Ltd.) Ecology Awards A beautiful Earth is a gift to the future! Take the first small Mitsunori Yoshino (Electronics Division, Display Dept., steps now. Kumamoto plant) If each of us saves a little energy, we’ll have a whole lot Yoichiro Tsuna (Packaging Division, Kansai Division, for tomorrow. Takino plant (Packaging))

50 Communication outside the Company Toppan discloses its environmental information through its Environmental Reports, Site Reports, Label for Environmentally-friendly Products, and other means. The company also promotes participatory activities such as seminars and exhibitions on environmental themes.

Disclosure of Environmental Adoption of Toppan’s Label for Other Communication Activities Communication Environmental Information Environmentally-friendly Products Symposiums Continual publication of In fiscal 2000, the company began apply- To promote a fuller understanding of the Environmental Reports ing its Label for Environmentally-friendly environmental efforts outside the com- Toppan has been disclosing environment- Products to products that meet Toppan’s pany, Toppan participates in a wide variety related information in its Environmental in-house standards for environmental friend- of lectures and seminars, including both Report since 1998. liness. These labels explain the company’s its own programs and the symposiums With the globalization of business activi- environmental efforts in plain language. and conferences of trade and industrial ties, the company has also been disclosing By the end of March 2003, a total of organizations. environmental data in English since 2000. 57 products were internally qualified to The same information published as the bear Toppan’s Label for Environmentally- Environment-related exhibitions Environmental Report in booklet form is friendly Products. (See P.26 to P.29.) Toppan believes that hosting and partici- posted on our website, where it can be pating in environmental exhibitions puts seen by as many people as possible. environmental communication into prac- Non-chlorine-based materials tice. (See P.10 to P.13.) The card emits extremely low levels of Issuance of Site Reports noxious gas when incinerated for disposal In December 2002, Toppan and Toppan Since fiscal 2000, Toppan’s ISO 14001- after use. Forms Co., Ltd. set up a joint exhibit at Eco- certified operational sites have been issuing Label for Environmentally-friendly Products Products 2002 to introduce visitors to the the Site Reports, periodic communications many environmental initiatives taken by directed to municipalities and residents in the Toppan Group. surrounding areas. To obtain copies of the Captions on Toppan’s Label for Environmentally-friendly Products Site Reports, e-mail [email protected]. (a few examples) This Environmental Report deals only with environmental performance data on a • Non-chlorine-based materials Group level. Environmental performance • 30% recycled paper data on specific cites can also be found on • Biodegradable plastic Toppan’s website. • Resource saving (reduced use of materials) • Use of recycled materials • Weight-saving paper containers • Reduced release of chemical substances

• Low-halogen material Eco-Products 2002 • Recyclable as cardboard • Recyclable as paper packs

Eco Workshop

Site Reports in 2003 Toppan invited Eriko Teranishi, a skilled creator of recycled handicrafts and indus- Environmental Report URL trial arts, to hold an Eco workshop for par- http://www.toppan.co.jp/ ents and children on December 15, 2002. english/index.html To prepare for the holiday celebrations shortly ahead, participants made their decorated their frames with knick-knacks own Christmas wreaths from advertising and ornaments, and colored them vividly Contact address for Site Reports catalogs. with lacquer spray. Participants returned [email protected] Participants began by rolling printed home with beautiful wreaths for their advertising leaflets tightly into thin tubes Christmas celebrations. of paper, then weaving the tubes together Toppan will continue to organize fun to form frames for their wreaths. Next they and rewarding workshops in the future.

51 Working with Local Communities Toppan carries out a wide range of activities at the company’s operational sites nationwide in collaboration with local residents and communities. The company also began developing its risk communication system in compliance with the newly enforced PRTR law.

niomna Communication Environmental Communication with Local Principal Activities for Smoother Asaka plant (Niiza city, Saitama Prefecture) Communities Coexistence with Outlying and the gym in the Itabashi plant (Itabashi Basic risk communication policy Communities ward, Tokyo). Conventionally, Toppan has each of its Space opened at the Toppan Organizing plant tours sites respond to local inquiries. The newly Koishikawa Building To facilitate collaboration with local com- enforced PRTR law requires companies The Toppan Koishikawa Building in Bunkyo munities, management is working to to more transparently account for the ward, Tokyo was completed in May 2000. enhance mutual communication by orga- environmental impacts imposed by their The facility sits within an expansive area nizing plant tours and other events for business activities. Toppan has met this (about 3,000 m2) of open greenery encom- local residents and people from neighbor- requirement by conducting environmental passing about 200 mature trees and some ing facilities. assessments to elucidate the current status 30,000 shrubs. The grounds are open to Mikkabi Toppan Printing Co., Ltd., a of its environmental activities and by local residents as well as employees, and all manufacturer of paper containers in Inasa, reviewing its methods to communicate are encouraged to come and relax when- Shizuoka Prefecture, organized a plant tour with people outside of the company ever they please. in January 2003 for 45 third-graders from a through risk communications. social studies class at a nearby primary Toppan’s headquarters prepares guide- school. Tour hosts working at the plant lines for the communication and holds Risk introduced products, manufacturing pro- Communication Study Sessions to share cesses, the plant history, and basics on gen- information. eral plant management such as measures for commuting. In March 2003, a worker at the Mikkabi plant discovered a baby horned owl on the plant grounds. The worker informed the Space open to the public nearby the Toppan Koishikawa Building municipal government of the baby horned owl, and a civil servant came to the site to Multi-purpose facilities open to local take care of strayed creature. residents Toppan believes these responses are Two of Toppan’s multi-purpose club facili- important symbiotic activities reflecting ties are open to residents in their neighbor- the company’s commitment to local areas Environmental monitoring around a site hoods: the Yuai Fraternity Plaza at the and nature.

Submission of Environmental Burden Reduction Plan to Saitama Prefecture Toppan compiled and submitted an Envi- ronmental Burden Reduction Plan for its seven plants in Saitama Prefecture on the basis of the Saitama Living Environment Conservation Regulation. The plants are now disclosing their environmental protection activities under the plan, including Plant tour their programs to reduce CO2 and waste emissions. The company describes its seven Saitama plants as Eco-up plants. Toppan Graphic Co., Ltd. (Kawaguchi city), the biggest Information & Networks site in the prefecture, reconstructed its environmental communication system for obtaining ISO 14001 certification in August 2002. The company actively promotes communication with neighbor- hood associations by reporting their environmental activities through seminars and other channels. Mikkabi Toppan Printing and a strayed baby horned owl

52 Environmental Communication 53 — awarded in the Fifth s Award for Plants Distinguished in Toppan head office, Akihabara an NPO that runs the Forest Fund, an NPO that runs the ’ ” — Itabashi plant — Environmental Report 2001 Environmental Report Awards Future, and environmental a fund for forestation The company con- education in Thailand. in fiscal 2002. tributed 1.3 million yen servation activities are underway in Mon- golia, a landlocked country highly suscep- tible to global warming. The foundation promotes various joint projects with NGOs in providing various environmental services, including environmental education at the Ecology Center of the Mongolia Uni- versity of Education and forestation of land stripped bare by devastating forest fires in Ulan Bator. Japan LCA Forum ECOMATERIALS Forum, The Society of Nontraditional Technology Society for Chemical Risk Environmental Study Group, Japan Environment Association Network for Environmental Reporting Collect-and-Use Recycling Association, others Awards Organization Fukuzaki plant s Environmental Conservation Activities ’ — s Award, Kanto Bureau of International Trade and Industry for Plants s Award, Kanto Bureau of International Trade and Industry ’ Distinguished in Energy Management Awards Encouragement Award, Saitama Prefecture Global Environmental Toppan Graphic Co., Ltd. Awards Fuji Sankei Group Award, the Fifth Global Environment the Rationalization of The Highest Award, Chairman's Awards, Committee on Energy Consumption in the Kanto Region Awards 2001 The Excellence Award at the Fifth Environmental Report Director Minister of International Trade and Industry Greening Activities s Participation in Environment-related Organizations s Participation in Environment-related Organizations ’ Starting from 1995, the Japan Ecology Foundation has managed a forest saving fund as a part of its Treefree activities to develop and diffuse treefree paper. Fund revenue is mainly provided in the form of donations from participating companies, and grant money is additionally provided to support greening activities. In fiscal 2002 the foundation paid an NGO about 9 million yen to help save the environment around the Chiang Mai mountains in Thailand and provide environmental education to an ethnic minority dwelling in the area. Concurrent environmental con- Treefree Funds Japan Ecology Foundation WWF (the World Wide Fund for Nature) Japan Nikkei BP Eco Management Forum Green Purchasing Network UNU Zero Emissions Forum Global Reporting Initiative Forum Japan July 1991 February 1992 February 1995 April 1996 February 1999 December 2001 Toppan Main Awards Received for Toppan Environmental Funds for the Earth and Environmental Funds Cartocan Product sales to fund forestation Product sales to fund of the revenue Toppan reserves a portion Cartocan (paper- earned from sales of to donate to based beverage container) “ absorbed by forested 2 The venture participants have also Four years after the start of forestation Six months after the start of forestation joined a research project cosponsored by the Japanese government and private enterprises seeking the development of a concrete method of measuring the amounts of CO Forestation activities set up a joint cor- In January 1997, Toppan in southeast Aus- poration for forestation with Oji Paper tralia and western Victoria Iwai Corporation. Co., Ltd. and the Nissho mainly plant early- The three companies other broadleaf maturing eucalyptus and covering a total area trees, with the goal of of 10,000 hectares by the year 2007. New sprouts will quickly take the place of trees felled when logging begins in 2008, and still newer sprouts will be planted. Toppan will continuously invest in this project. Social Contributions Social Contributions & Awards & Contributions Social activities paper, Toppan is pioneering of vast quantities of industry and handler player in the printing As a major the global environment. resources and conserve to protect forest and commendations. of awards have earned a long succession activities Toppan environmental trees. This project was started shortly after the Seventh Conference of the Parties to the U.N. Framework Convention on Cli- mate Change. The absorption source monitoring method is being developed and monitored in the joint venture forests in the State of Victoria. Appendix: Business Fields INPUT/OUTPUT DATA

Toppan’s Business Fields and operations, it stands to reason that the problems in the course of activities such as Environmental Impact company has an impact on the environ- waste disposal, and indirect environmental Three business fields ment in various ways. The environmental impacts through the use and after-use of

Appendix Toppan has positioned itself as a leading burdens of the printing industry can be products. company in the information communi- divided into input and output. Input refers To best reduce its environmental bur- cation industry. To operate within this to the raw materials and fuels whose con- dens, Toppan must accurately understand position, the company has classified its sumption in the production of commodi- the impacts imposed by all company operations into five categories. ties such as paper, plastic film, ink, and processes and operations. Each opera- Toppan divides its operations into three solvents may deplete resources, encourage tional site at Toppan records its input and fields of business—Information & Networks, sequential logging, and cause acid rain. output of substances and utilizes these Living Environment and Electronics—based Output refers to the chemicals dis- data to calculate its environmental burdens. on the scale of operations and other fac- charged from production processes and Once the burden is quantified at each tors. Products are manufactured in each emissions of pollutants such as chlorofluo- site, the company sets environmental tar-

operational category, and comprehensive rocarbons and CO2 (carbon dioxide) from gets in priority areas and assesses the data on environmental burden is compiled fuel consumption. The chief environmental results of environmental activities con- in each field of business. impacts from output include ozone ducted over the previous year. destruction, and global warming. Other The environmental impacts of factors to be taken into account include company operation the environmental impacts on air, water, Given the very wide range of Toppan’s and soil, the generation of environmental

Input/Output Data INPUT OUTPUT Energy Air

CO2 emission (t-CO2) 803,501 Total energy consumption (1,000 GJ) 17,784 Emission of substances destructive to the ozone layer (ODP-t) 5.18 Electric energy (1,000 GJ) 12,537 NOx emission (tons) 269 Thermal energy (1,000 GJ) 5,247 SOx emission (tons) 83 Emission of dioxins (g-TEQ) 0.20

Water Information & Networks Water system and soil Water consumption (1,000 m3) 14,127 Total water discharge (1,000 m3) 11,303 3 8,245 Industrial-use water (1,000 m3) 1,658 Public water system (1,000 m ) Sewage system (1,000 m3) 3,058 Municipal water (1,000 m3) 2,485 Underground penetration (1,000 m3) 52 3 Groundwater (1,000 m ) 9,984 On-site evaporation (1,000 m3) 1,775 254 (Utilization of rainwater) (1,000 m3) 18 Living Environment BOD discharge (tons) (Utilization of water circulated COD discharge (tons) 189 on premises) (1,000 m3) 677 Nitrogen discharge (tons) 151 Phosphorous discharge (tons) 5 Main raw materials Waste Paper, plastic film (1,000 tons) 1,680 Waste discharge (tons) 376,169 Ink (1,000 tons) 33 Recycling (tons) 347,574 Electronics Solvents (1,000 tons) 18 Final waste disposal (tons) 28,595

Notes: • The period of aggregation covered for the overseas subsidiaries is from January 1, 2002 to December 31, 2002. • Data used to calculate the scope of water consumption include neither utilization of rainwater nor water circulated on premises. • Data on overseas subsidiaries and independent subsidiaries are not included in the values for main raw materials and the data shown on P.38 to P.45.

54 Appendix 8 7 2 45 17 124 559 144 55 3.33 0.13 6,965 2,291 1,704 6,783 ) 308,078 227,883 221,100 3 ) 3 ) 3 ) 3 Delivery to ) 2 the customer emission (t-CO 2 CO (1,000 m penetration Underground (1,000 m evaporation On-site BOD discharge (tons) (tons) BOD discharge (tons) discharge COD (tons) discharge Nitrogen (tons) discharge Phosphorous (tons) discharge waste Total Recycling (tons) disposal (tons) waste Final Emission of substances destructive Emission of substances (ODP-t) layer the ozone to NOx emission (tons) SOx emission (tons) (g-TEQ) Emission of dioxins (1,000 m discharge water Total Delivery Air Water Waste Energy (1,000 GJ) consumption energy Total Water m (1,000 consumption Water system and soil Input/Output Data for the Information & the Information for Input/Output Data Field Networks OUTPUT INPUT Finished prints are delivered The printed material undergoes bookbinding processes (such as perfect binding, saddle stitching, side stitching, etc.) as needed, and is then subjected to gloss-finishing processes such as lamination, press- coating, coating, and so on. in various forms: magazine, book, catalog, booklet, flyer, poster, calendar, share-certifi- vouchers, andgift cates, so on. sheet-fed — Printing are used. The rotary machine Four colored plates (yellow, magenta, cyan, and black) are placed within the offset printing machine, each color is printed, and the ink is allowed to dry. Two types of offset printing machines machine and rotary machine — can handle duplex print, which makes it more suitable for high-volume printing. Bookbinding is representative of the set printing: sheet-fed and web offset (on set printing: sheet-fed The main distinction an offset rotary press). methods resides in between these two The web press per- their drying methods. via a hot-blast forms vaporation drying press utilizes dryer, while the sheet-fed reaction that an oxidative polymerization to the paper. The allows the ink to stick is the thermal input in the printing process energy of the web press dryer, and the output consists of exhaust gases from the deodorization equipment of the web press, whose gases pose an environmental burden. finishing process. This process generates wastepaper from cutting when it converts printed paper into books and the like. The output from bookbinding (consisting of spoilage) poses the greatest environmental burden. Paper feed Printing Plate-making Finishing This process is used to produce press plates for printing (machine plates or stamps). An original film plate is prepared from the original data, then a machine plate is obtained via film printing to a PS plate (Presensitized Plate) and conveyed onto the development process. CTP (Computer To Plate), a process to directly produce machine plates from input data, is now becoming the mainstream process. Editing Information & Networks Information The plate-making process includes the Two methods are typically used for off- Information & Networks Production Process Sheet-fed printing: The paper from the feeder is printed in the printing unit and ejected through conveyers as printed material. Offset Printing creation of positive films for printing and the production of press plates. The outputs of this process consist of wastewater, the developing and fixing solutions used in film processing, waste films, and other substances that pose environmental burdens. Environmental impact of production Environmental impact processes & Networks Operations in the Information of information field employ a diverse range in commercial technologies for works printing, securities printing, publications printing, and the production of cards. Pro- duction plants in the Information & Net- works field mainly undertake offset printing, a process broadly divided into plate-making, printing, and finishing. Products and Environmental & Impact of the Information Networks Field The characters and images of a printed page are displayed on a computer monitor and edited by digital processing (DTP: Desktop Publishing). After mockups with layouts and color samples are printed and proofread, the data is corrected digitally and passed on to the plate-making process. 2 60 42 45 45 17 118 476 1.86 0.05 5,302 2,308 1,757 94,653 11,627 ) 268,377 106,280 3 ) 3 ) 3 ) 3 Delivery to ) 2 the customer Cooling-down Take-up emission (t-CO 2 CO (1,000 m penetration Underground (1,000 m evaporation On-site BOD discharge (tons) (tons) BOD discharge (tons) discharge COD (tons) discharge Nitrogen (tons) discharge Phosphorous (tons) discharge waste Total Recycling (tons) disposal (tons) waste Final Emission of substances destructive Emission of substances (ODP-t) layer ozone the to NOx emission (tons) SOx emission (tons) (g-TEQ) Emission of dioxins (1,000 m discharge water Total Air Water Waste Energy (1,000 GJ) consumption energy Total Water m (1,000 consumption Water system and soil Input/Output data for the Living for Input/Output data Field Environment OUTPUT INPUT Dryer processes Converted prints are deliv- Various finishing Once printing is completed, most printed materials are converted through procedures such as pasting with films, extruder processing, emboss- ing (making surface bumpy), die cutting, and slitting (to adjust the shape of products). ered to customers in various forms: films, packaging materials such as paper containers for liquids, decorative paper for buildings, decorative sheets, and wallpaper. Printing Recently developed envi- Cylinders for each color are set on the gravure printing machine, then ink diluted with organic solvent is used to print on base materials such as films. The process is completed once the ink settles onto the base materials through the processes of drying and cooling. ronmentally-friendly inks have no organic solvents. The company plans to use water-based ink and biodegradable ink for gravure printing in the future. Gravure printing on a rotary gravure Gravure printing on The finishing process includes various replacement of the electroplating solutions. replacement of the electroplating by diluting numer- press is accomplished organic solvents. ous colors of ink with products, When printing multicolored be treated by every color printed must air drying unit vaporation using a hot the ink adheres to (dryer) to ensure that For this reason, the the substrate surface. thermal energy used for drying (input) and the discharge gas from the dryer unit (output) pose a significant environmental burden in this type of printing. steps such as lamination onto the printing substrate and die cutting. Input (thermal energy for melting resins and heat sealing) and output (waste plastic discharged as die-cutting scraps) both pose environmental burdens in this process. Plate-making Fashioning the printing cylinder using image data. Based on the image data, an electrical graving machine engraves the image onto the surface of a cylinder. The cylinder surface is coated with copper beforehand to facilitate engraving, and a coat of chrome is applied after the engraving to fortify the surface. The engraved negative spaces are filled with ink for printing. Pay-off Editing Living Environment Living The printing plate is usually a metallic Living Environment Production Process Gravure printing is often performed by rotary presses, machines capable of printing even on plastic films. The film or paper fed from the pay-off reel is printed, dried, and cooled on a separate unit for each color, then wound up on the take-up reel. 56 Gravure printing Environmental impact of the Environmental impact production process Environment field Operations in the Living the manufacture of include packaging and use. The business materials for industrial development of itself is focused on the products that can contribute to more com- fortable lifestyles. Most of the operations in this field involve gravure printing, a process mainly comprised of cylinder-making, printing and finishing. cylinder made of steel or aluminum, surface coated with successive layers of copper and chrome plating. Though the wastewater is successfully treated and reused, environmental burdens are imposed by the sludge from the wastewater treatment and waste solutions derived from the Products and Environmental Environment Impact of the Living Field The characters and images of a printed page are displayed on a computer monitor and edited by digital processing (DTP: Desktop Publishing). After mockups with layouts and color samples are printed and edited, the data is corrected digitally and passed on to the plate-making process.

Appendix Electronics

Products and Environmental temperature and moisture. The input of Input/Output Data for the Electronics Impact of the Electronics Field the energy consumed for this air-condi- Field Environmental impact of the tioning poses an environmental burden. INPUT Energy production process Among the many subprocesses employed Appendix Total energy consumption (1,000 GJ) 4,864 Plants in the Electronics field mainly pro- in production, the etching metals with Water vide components used for the manufac- chemical etchants merits special environ- Water consumption (1,000 m3) 9,219 ture of semiconductors and displays. mental attention. The etching subprocess Toppan designs and manufactures a host prints patterns onto a photoresist-coated OUTPUT of electronic components and devices, metal, develops the print, rinses away ele- CO2 emission (t-CO2) 201,401 including photomasks used in the manu- Emission of substances destructive ments other than the photopolymer in the to the ozone layer (ODP-t) — facture of semiconductors and LSI (large- etching solution, and finally applies a coat- Air NOx emission (tons) 23 scale integrated circuit) package-related ing, for example, a metal plating, to pro- SOx emission (tons) 15 products such as lead frames, shadow duce a finished product. The wastewater Emission of dioxins (g-TEQ) 0.02 masks for CRTs, color filters for LCDs (liquid derived from the repeated washing in this Total water discharge (1,000 m3) 7,570 crystal displays), and printed wiring boards process is neutralized in treatment equip- Underground penetration (1,000 m3) 2 Water On-site evaporation (1,000 m3) 691 for various electronic units. ment and finally discharged into the public system BOD discharge (tons) 57 Production facilities in the Electronics water system. This wastewater constitutes and soil COD discharge (tons) 94 field require extremely clean environ- an output of the process and imposes the Nitrogen discharge (tons) 115 ments. Most of the products are produced heaviest environmental burden of all out- Phosphorous discharge (tons) 1 in clean rooms, where air-conditioning puts from processes in the Electronics field. Total waste discharge (tons) 40,423 equipment is used to maintain constant Waste Recycling (tons) 30,289 Final waste disposal (tons) 10,134

Electronics Production Process Etching

Examples of etching products

Preprocessing Apply photoresist on Exposure Degrease the surface of the metal both sides Fix patterns to the metal plate and plate, remove foreign matter, and Apply and dry photoresist on both expose to an ultra violet or X-ray toughen to ensure proper adherence sides of the photopolymer

Etching solution Lead frames for semiconductor packaging Etching product

Develop Etching Peel film Dissolve non-exposed sensitive film Apply acid to melt the portions of Remove portions of sensitive film in developing fluid the metal plate surface not covered no longer needed with a film- with sensitive film removal solution

After-use water Shadow masks for CRT Recycling process RO (Reverse Osmosis) Recycling Biological treatment Active carbon tower Sand filter membrane*

Bacteria decompose the Active carbon absorbs Remnant inorganic mate- Final filtration is perfor- BOD of the wastewater the decomposed organic rials floating on the surface med to eliminate ion materials are removed Fluorescent character display tube

*RO (Reverse Osmosis) membrane: A membrane that traps almost all solutes but allows water to freely pass through.

57 Personal Services

Content distribution network Bitway on the Internet To respond to the rapid spread of broad- band into households, Toppan is vigorously promoting Bitway, Japan’s largest content distribution service. Since obtaining a patent on its business model for content distribution to PCs, the

Appendix company has added to its existing services for PCs and PDAs with a new service for cell phones. Through its affiliation with Han- dango Inc., America, the world’s largest content provider, Toppan’s PDA service @irBitway now offers Japan’s largest content menu. Toppan is also enriching the service menu for HandyBitway, the company’s third-generation cell phone service. Besides the company’s original Mapion map search system, Toppan now deploys the Chizu i-Mapion service for cell phones (official site for NTT DoCoMo i-mode). Bitway and Toppan’s other content businesses Efforts are underway to attract more pay- ing subscribers.

Next-generation Products

Constructed Technical Research ate research and development for next- pany will also press ahead with its current Institute Experiment Center generation semiconductor technologies in research in high-definition and high-den- Toppan is now building infrastructure to a clean experimental environment. This sity technologies for next-generation semi- expedite the development of electronics project was commenced with the introduc- conductors. and next-generation products in the fields tion of large projection screens, next- Toppan established a facility to pioneer defined in Toppan Vision 21. Base facilities generation semiconductor parts, and other these R&D themes with the completion of have already been established to acceler- equipment for experimentation. The com- the Technical Research Institute Experi- ment Center next to the company’s main Technical Research Institute in Sugito town (Katsushika, Saitama Prefecture). Since the commencement of operations in January 2003, the center has placed top priority on research themes related to Toppan Vision 21. To streamline development, the center has prioritized themes related to Toppan Vision 21 and set target dates for the acquisition of experimental results. Employees can flexibly change the level of cleanliness in the experimental clean room from class 1,000 to class 100,000. This advanced feature provides researchers with the best possible experimental environment for business examinations.

Technical Research Institute Experiment Center

58 Appendix Toppan’s Environmental Chronology Toppan’s first major environmental efforts came in the 1960s when the company launched activities to prevent pollution. The company has since evolved into a true global citizen.

Activities in the Toppan Group Societal developments

IEstablished the Environmental Management Division at the head office, IMinistry of the Environment established established environmental maintenance departments at all production 1971 divisions, and introduced the pollution-prevention audits IMontreal Protocol on Substances that Deplete the Ozone 1987 Layer adopted Appendix 1988 IEco-Mark adopted, Control Law on CFCs enacted

IBasel Convention on the Control of Transboundary Movements 1989 of Hazardous Wastes and Their Disposal adopted IIntroduced the company’s first cogeneration system 1990

IEstablished the Ecology Center within the head office (Reform the IThe Global Environment Charter established by Keidanren corporate-wide environmental management structure and management 1991 system) IEstablished Toppan’s Declaration on the Global Environment, Toppan’s IHosting of the U.N. Conference on the Basic Environment basic philosophy for environmental action 1992 (Global Summit) IAdded the Ecology Award to the Toppan President's awards IEstablished the Toppan Voluntary Plan on the Global Environment as a IBasic Environment Law enacted basic guideline for conduct 1993 IHalted the use of specific CFCs and trichloroethane IStarted in-house environmental audits in oversea subsidiaries 1994

1995 IContainers and Packaging Recycling Law enacted

IReceived the Fuji Sankei Group Award at the Fifth Global Environmental ICommencement of the ISO 14000 Series (Environmental Awards 1996 Management System) IJoined the Green Purchasing Network IGreen Purchasing Network established IIntroduced an ISO 14001-compliant environmental management system IHosting of the Third Conference of Member Countries to the at all production plants 1997 United Nations Framework Convention on Climate Change (COP3) and adoption of the Kyoto Protocol

IDeveloped an in-house LCA method for packaging products INPO Law enacted IObtained ISO 14001 certification at the Shiga and Kumamoto plants IHome Appliance Recycling Law enacted (Electronics) 1998 ICommenced publication of the Environmental Report

IIntroduced a system to promote Green Purchasing throughout the entire IRevised Energy Conservation Law put into force company IPRTR Law enacted IIntroduced the RPF system at the Sagamihara plant (Packaging) 1999 ILaw on the Promotion of Countermeasures against Global IIntroduced Toppan's Environmental Logo Warming enacted IIntroduced environmental accounting IEnvironmental Impact Assessment Law enacted

IEstablished Toppan Vision 21 IGreen Purchasing Law enacted IEstablished Toppan’s certification standards for environmentally-friendly IConstruction Recycling Law enacted products IBasic Law for Promotion of a Recycling-Oriented Society IAchieved zero-emissions target at the Sakado plant 2000 enacted IObtained ISO 14001 certification at the Niigata, Satte, Kashiwa, Sakado and IFood Recycling Law enacted Ranzan plants IOrganized and hosted the Environmental Communication Exhibition 2000 IExhibited products in Eco-Products 2000 IObtained ISO 14001 certification at the Akihabara and Ebie offices IRevised Waste Treatment Law put into force IIntroduced the Toppan Group Consolidated Environmental Accounting ILaw concerning Special PCB-related Measures enacted IThe Environmental Report 2001 selected for the Excellent Performance 2001 IRevised Automobile NOx Law put into force Prize at the Environmental Report Awards 2001 IEstablishment of the “Offset Printing Services” Green Standards by the Japan Federation of Printing Industries

IObtained ISO 14001 certification at the Itabashi site, Fukuzaki plant, IWorld Summit on Sustainable Development (Johannesburg Takino site, and Toppan Graphic Co., Ltd. (Kawaguchi) Summit) held IObtained ISO 14001 certification at three overseas plants (Siam Toppan, ISoil Contamination Countermeasures Law established Toppan Hong Kong, Toppan America) IDisclosure of report data commenced based on the PRTR Law IExtended the Toppan Group Consolidated Environmental Accounting to 2002 the company’s overseas subsidiaries IIntroduced e-learning into Toppan’s environmental education system IEstablished the Toppan Green Procurement Standards IRevised the company’s zero-emission certification standards IEnhanced the group environmental management system through the IThe Law for Promotion of the Nature Restoration enacted Toppan Group Environmental Committee IDiscussion for utilization of Kyoto Mechanisms accelerated IObtained ISO 14001 certification at the Gunma plant 2003 IElectric shortage in midsummer stirs social concern over energy saving requirements

59 Independent Review of Environmental Report & Questionnaire Results To ensure the credibility of the information reported herein, Toppan has had independent examiners review this Environmental Report since fiscal 2001. This section outlines the procedure and results of the review. At the end of this section, readers will find the results of a questionnaire submitted to persons who read last year’s Environmental Report.

Toppan’s Approach to An independent review and PDCA cycle Reporting on the Review Results the Review Toppan relies on independent reviews not Findings (points improved and points Background only for their evaluations of the various to be improved) Toppan issued its first Environmental Report environmental performance and account- For an overview of the results, please refer in 1998. This year’s report is the third report ing indexes used, but also guidelines for to the report on the Independent Review to undergo an annual independent review continuous improvement of the indexes. of the Environmental Report 2003 on P.61. by Asahi & Co. Once each independent review is fin- Asahi & Co, the auditor, has also reported In producing its Environmental Report, ished, the reviewer issues a report on the the details on the reviewers’ findings in Toppan attempts to provide a clear source results. In addition to the reviewer’s assess- their examinations. A summary of the com- of information on the group’s commitment ments of Toppan’s internal administration mentary follows. to environmental preservation, with spe- of data collection, calculation methods, As to the environmental performance, cific and demonstrative data on the results reporting coverage, and calculation accu- Toppan has set the medium- and long- the group has achieved. To ensure the racy, this report includes advisory com- term targets based on fiscal 2000, and credibility of this data, the company has ments to effectively promote Toppan’s strived to achieve them. In fiscal 2002, the had the environmental performance indexes environmental protection activities. The scope for aggregation was expanded. To and environmental accounting results company closely studies the results as it enable comparison with data from previ- reviewed independently by Asahi & Co for prepares for actions to be taken in the ous years, the earlier data were determined the last three years in a row. following year using the PDCA (plan- by estimation. The auditor evaluated this do-check-action) cycle system. effort. Yet it also pointed out that there were some overseas sites that had not measured or aggregated water discharges.

Toppan has started to collect data on CO2 emissions based on the company’s distribution activities. As this data has yet to be collected from some of the companies within the Toppan Group, the reviewers rec- ommend data collection from the entire group and full disclosure of the results.

Review at Toppan Forms Co., Ltd.

Procedure of Independent Review

Planning A hearing to review improvements from the previous year; examination of methods and scope IDiscussion and planning of aggregation; determination of the schedule and the sites to be reviewed

Implementation Interview with the president on the topics of Eco-protection, Eco-creativity and environmental communication activities for fiscal 2002 (preparations for the “Message from the President” for 2003), ITop management interview the stance of the Toppan Group toward environmental management, and the status of environmental reporting and environmental accounting IExamination at head office A hearing on data collection methods, including internal rules; examination of analytical methods and Toppan Printing and evidence (with questions and answers); examination of the calculation accuracy and appropriateness members of the group of methods; examination of consistency among data (including descriptions)

IOn-site review Shiga plant, Gunma plant, Toppan Forms (head office and Hino plant)

Final review of the I Environmental Report (script) Review at head office Review of the draft of the Environmental Report (screening for negative information)

Internal review at Asahi & Co Before submitting the independent review, Asahi reviewers uninvolved in the Toppan review examine the IInternal review meeting review procedure, examine the review results, and draw up their conclusions about the Environmental Report 2003

Submitting the Independent ISubmission of the The independent reviewer submits the Independent Review Report Review Report Independent Review Report

Meeting the examiner IBriefing on the findings The independent reviewer reports the findings in the review in the independent review

60 For aggregation of environmental accounting, the identification of environmental conservation costs related to the purchase and use of environmental protection facilities is important. The costs are, for instance, additional costs, expended for the differ- ence between green products and conventional ones; and the other costs contained in operational facilities or products, and they should be deducted in relation to their rate for purpose of environmental protection. Toppan revised the cost classification and the environmental preservation ratio of some environmental protection facilities in response to items pointed out during the on-site reviews in the previous year. The revision and adoption of a unified aggregation method throughout the entire group has continuously improved the level of precision. Regarding environmental targets that were not reached this year, Asahi & Co recommended that Toppan describe the causes and solutions in detail in the Envi- ronmental Report, in order to improve the report as an effective tool for environmental communication.

Questionnaire results

Toppan attaches a questionnaire to each replied “Sufficient,” while 19.6% selected be provided as a reference for comparison. copy of the Environmental Report as a tool “Average.” When asked to rate the “most IThe report should have a section for children. to promote dialog with readers (also posted impressive” sections in the report, readers IThe report should describe Toppan’s on the Toppan website). The questionnaire cited the following, in descending order: activities based on the Kyoto Protocol. is also used as part of the environmental “Eco-protection Activities,” “Eco-creativity IThe authors should provide more detail education session held for new Toppan Activities,” and “Toppan’s Businesses and in their explanations to help consumers employees. Environmental Impact.” more fully understand the importance According to results for fiscal 2002, Respondents also provided a number of of developing environmentally-friendly 76.6% of the readers and new Toppan helpful suggestions on ways to improve products. recruits who responded to the question- the Report. A few examples follow. Toppan will consider these suggestions naire assessed the Report as “Easy to under- IThe report should list specific figures on from respondents in its ongoing effort to stand,” while 21.9% rated it as “Average.” In Toppan’s long-term targets. improve the Environmental Report and the evaluating the content of the Report, 79.7% ISimilar data on other companies should company’s environmental communications.