CSR REPORT 2012 Report on Corporate Social Responsibility Activities

中島凸版印刷ＣＳＲレポート２０１２英語版印刷費本社初校表紙 (1-4) CSR REPOR

T 2012 CSR REPORT 2012 Report on Corporate Social Responsibility Activities

As a member of GPN, we incorporate Green Purchasing in our printing services.

This report incorporates eye-friendly displays as a consideration for as many different types of people as possible, regardless of individual differences in color perception. Monitors from the Color Universal Design Organization (CUDO), a nonproﬁt organization, have reviewed and certiﬁed this report for its universal design. http://www.toppan.co.jp/english/ © TOPPAN 2012.10 K I Printed in Japan

耐磨 OP ニス表紙 1 IEditorial Policy IEye-friendliness and Readability Toppan is disclosing information in the hopes of encouraging dialogues on social This report considers eye-friendliness and readability in accordance with Toppan’s and environmental activities with more people, especially people who have an in-house guidelines. It also incorporates universal-design displays for as many interest or stake in Toppan’s corporate social responsibility (CSR) activities. Toppan different types of people as possible, regardless of individual differences in color edits this CSR report in line with the seven core subjects set under ISO 26000, perception. The universal design in this report has been reviewed and certified by an international standard on social responsibility. the Color Universal Design Organization (CUDO), a nonprofit organization, on IPeriod Covered entrustment by Toppan. This report mainly covers activities in fiscal 2011 (from April 2011 to March 2012), though information on prior and later years is also included in parts. ICSR Report 2012: Detailed Data IScope and Boundary of this Report A PDF file with detailed information on CSR activities is posted on the Toppan In principle, this report covers the social and environmental activities of Toppan website. Printing Co., Ltd. (“the Company”) and Group entities consolidated for accounting purposes. Most of the information on personnel applies to personnel within Toppan IURLs for Relevant Information Printing Co., Ltd., the parent company. The scope of the environmental perfor- •CSR information: http://www.toppan.co.jp/english/csr/ mance data is presented on page 36. This site posts the “CSR Report 2012: Detailed Data,” the latest information on ISelecting the Information for this Report ISO 14001 certification, the GRI content index, the CSR Procurement Guidelines, In choosing the information to present in this CSR report, Toppan assessed the and other forms of CSR information. If erroneous entries or misprints are found “materiality” of the information for society and the Company itself. after CSR reports are issued, the related information will be shown here. To assess whether information can be considered material for society, Toppan •IR information: http://www.toppan.co.jp/english/ir/ holds in-house discussions on the following points: opinions gleaned from dia- Details on corporate governance can be found at the following URLs. logues inside and outside the Company, questionnaire responses to CSR reports Corporate governance reports: http://www.tse.or.jp/listing/corpgov/ (in Japanese) from inside and outside the Company, the content of various guidelines (such as Financial statements: http://info.edinet-fsa.go.jp/ (in Japanese) the Environmental Reporting Guidelines [fiscal year 2007 version] from the Minis- try of the Environment of Japan and the Sustainability Reporting Guidelines 2006 IPublication Dates from the Global Reporting Initiative [GRI]), questionnaire items from third-party organizations, and CSR-related information from media and news agencies. Previous report: December 2011 IGuidelines Observed Current report: October 2012 This report has been prepared in accordance with the Sustainability Reporting Next report: October 2013 (planned) Guidelines 2006 at an application level B+ as defined by the GRI. IReliability IContact Information KPMG AZSA Sustainability Co., Ltd. provides independent assurance for this CSR Promotion Department, Legal Affairs Division, Toppan Printing Co., Ltd. report. As a testament to the reliability of the sustainability information presented (Tokyo, Japan) in the report, Toppan is authorized to attach the following mark. Any report bear- Email: [email protected] ing this mark meets the standards for sustainability report assurance and registration established by The Japanese Association of Assurance Organizations for Sustainability Information (http://www.j-sus.org/).

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

Human Rights Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses.

Labour Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation.

Environment Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. CONTENTS

Executive Message 2 Group Business Outline 4 Special Report 1: Book Wagon— Mobile Libraries to Support the Creation of Communities 6 Special Report 2: Labor-Management Committee for the Creation of a Working Environment Amenable to Enhanced Job Satisfaction 10 Results in Fiscal 2011 and Future Measures 12 Toppan’s CSR Activities 14

Initiatives at Toppan and Seven Core Subjects under ISO 26000 16 Organizational Governance 17 Human Rights 20 Labor Practices 22 Fair Operating Practices 26 Consumer Issues 30 Community Involvement and Development 34 The Environment Toppan’s Environmental Activities 36 Environmental Targets and Results 37 Toppan’s Environmental Burden 38 Environmental Management Activities 40 Eco-protection Activities (Mitigating global warming, building a recycling- oriented society, preventing pollution, controlling chemical substances, conserving biodiversity) 42 Eco-creativity Activities 47 Environmental Communication Activities 48

Independent Assurance 49 Independent Assurance Report 50 Group Business Structure 51

TOPPAN CSR REPORT 2012 1 Executive Message Contributing to Fulfilling Lifestyles

The Great East Japan Earthquake is already a year and five effective ones across the operational sites in Japan taking months behind us. Yet our journey of reconstruction has into account the lessons learned from the earthquake and only just begun. I would like once more to extend my sym- its significant impacts in fiscal 2011. pathies to all of the people affected by the disaster and to express my strong hope that the disaster-stricken areas To Be a Robust Group of Companies will be restored swiftly and without delay. Trusted and Respected by Society

I believe that change will continue to pick up speed not The Japanese economy was buffeted by myriad changes only in the Japanese economy, but throughout all of the in fiscal 2011. On one level, Japan’s industries were under world. In today’s tough environment, however, a company immense pressure to cope with the power shortages and must develop steadily in step with all of society. I broken supply chains caused by the Great East Japan understand that the crucial challenge for us now is to use Earthquake and the nuclear accidents. On another level, the printing technologies we have cultivated since our the floods in Thailand caused widespread damage and the founding to help solve social issues and create a new yen rose sharply in reaction to the economic disruption of engine that will allow us to grow steadily in step with the the EU triggered by the financial crisis in Greece. sustainable development of all of society. I will be advo- In the Toppan Group we expedited recovery at all of our cating and tackling three management challenges for three disaster-stricken plants, strove to save electricity, and these purposes. supported reconstruction efforts in the affected areas The first challenge is to advance our Group-wide struc- through united, Group-wide action. We also started to tural reform in order to reorganize ourselves into a lean restructure our business continuity plans (BCPs) into more organization that can make profit by responding promptly to today’s ever-changing markets. The second is to create new businesses and new markets by intensively devoting managerial resources to businesses with growth potential. The third is to accelerate global business expansion for swift operations by arranging business alliances and M&As and by restructuring our production sites and reinforcing our sales structures in the growing markets of emerging countries mainly in Asia. TOPPAN VISION 21 is positioned as the foundation for all of our corporate activities. This vision consists of a Corporate Structure (the Corporate Philosophy, the Corporate Creed, and a set of Conduct Guidelines defining the values and standards we should respect) and five Business Fields based on the Corporate Structure. To make TOPPAN VISION 21 a reality, I am convinced that it will be vital for us to accomplish the three management challenges and fulfill our social responsibilities as a corporation. We will be developing socially and environmentally balanced corporate activities in parallel with operations in pursuit of economic profits. Through these efforts we would like to establish ourselves as a robust company group that is trusted and respected broadly by society.

2 TOPPAN CSR REPORT 2012 To a New Stage of CSR Management The impact of the Great East Japan Earthquake broke apart precious kizuna—tightly woven ties between peo- Toppan has been participating in the United Nations Global ple—and destroyed human communities that had been Compact and supporting the 10 principles of the Global built up over many generations. Compact on human rights, labour, environment, and anti- In July 2011, we launched the Book Wagon mobile corruption since September 2006. libraries and plotted out their routes through 14 temporary For the fulfillment of our social responsibility, I will con- housing areas for disaster victims in Sendai City, Miyagi tinue espousing the United Nations Global Compact as Prefecture. The wagons served as venues for communica- an invaluable guideline for shaping our corporate social tion among residents through the lending out of books. We responsibility (CSR) activities. started this activity at the proposal of a young employee In November 2010, the International Organization for who envisioned mobile libraries as cozy places of refuge Standardization (ISO) issued its 26000 Guidance on Social where displaced people could come together and take Responsibility as an international standard for organiza- comfort. This employee hoped that the Book Wagons tions. Multiple stakeholders took part in the formulation of would become instruments of community reconstruction. ISO 26000 from the early stages. Governments, consumer By the end of March 2012, a cumulative total of about groups, industries, labor unions, NGOs, and experts from 5,000 residents had used the Book Wagons. Local govern- more than 100 countries, many of them developing, were ments and the like commended the activity. involved in the process. The standard condenses various We also established the Reconstruction Support social issues to be solved. From my perspective, it also Development Center in the Higashinihon Division of Toppan serves as guidance for implementing the United Nations Printing Co., Ltd. in April 2012 as an organization to provide Global Compact. medium-and-long-term support for the disaster-stricken We incorporated ISO 26000 in our CSR management areas through Toppan businesses. Toppan will remain com- practices in fiscal 2011 and have been pushing forward mitted to the disaster-affected communities through this with our CSR activities by checking our initiatives and piec- center and will keep up its support works to solve the ing together a clear picture of the social issues we should various challenges confronting the communities. help solve and the social responsibilities we should fulfill. With Our Stakeholders Towards a Sustainable Society From fiscal 2011 we began disclosing information on our Japan’s demand-and-supply balance in energy has shifted CSR activities closely aligned with the seven core subjects dramatically since the Great East Japan Earthquake. On addressed in ISO 26000. We would like to continue disclos- the demand side, Toppan, like Japan itself, must use energy ing information through this CSR report, one of our most more efficiently to carry out business operations. On the valuable tools for communicating with our stakeholders. I supply side, heightened expectations for renewable energy am eager to hear your candid opinions about this report. in Japan can expand business opportunities for Toppan, a We will keep up our work to contribute to the creation provider of functional components for solar cells and lith- of fulfilling lifestyles in a sustainable world. We rely on your ium-ion batteries. In every scenario going forward, I rec- ongoing support and guidance. ognize that the energy demand and supply will become an increasingly significant management challenge. I am also July 2012 sure that it is important for us to sustainably use the mate- Shingo Kaneko rials on which we rely for our businesses. In this regard, President & Representative Director we will consider forest environments when procuring paper Toppan Printing Co., Ltd. and will advance the practical application of biomass plastics and other eco-friendly materials.

TOPPAN CSR REPORT 2012 3 Group Business Outline

Corporate Profile Group Profile

Corporate name Number of employees The Toppan Group comprises Toppan Printing Co., Ltd. and 194 related Toppan Printing Co., Ltd. (nonconsolidated) companies (165 subsidiaries and 29 affiliates) engaged in manifold busi- Head office 8,508 (as of the end of March 2012) nesses in three main fields: Information & Networks, Living Environment, 1, Kanda Izumi-cho, Chiyoda-ku, Number of employees and Electronics. Tokyo 101-0024, Japan (consolidated) The positioning of Toppan and related companies in these fields is out- Phone +81-3-3835-5111 47,872 (as of the end of March 2012) lined on page 51. Established Capital (nonconsolidated) January 17, 1900 104.9 billion yen President & Representative Director Shingo Kaneko

Business Fields

Information & Networks Providing solutions to increase the value of information and effectively deliver information for customers who require smooth communication

Securities and Cards Commercial Printing Publications Printing

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

Packaging Functional Product and Energy Interior Décor Materials Related

Electronics Personal Service Next-generation Products Ball SAW sensors

Fuel cell Display Related Semiconductor Related Shufoo!—an online mall for digital components flyers (in Japanese)

Working with leading-edge technologies to provide electronic components Providing consumers with Toppan’s Providing high-performance indus- with strong potential to be adopted as de facto standards original brand of innovative informa- trial materials with links to the next tion services and devices to enrich generation by developing fields of the links between people and goods business with growth potential

4 TOPPAN CSR REPORT 2012 Net Sales Operating Income or Loss Net Income or Loss (billion yen) QConsolidated QNonconsolidated (billion yen) QConsolidated QNonconsolidated (billion yen) QConsolidated QNonconsolidated

2,000 80 40 38.5 72.1 1,670.3 1,617.3 60 30 1,500 1,506.7 1,556.4 1,510.4 25.2 45.0 40 38.2 20 1,000 1,022.9 967.6 31.6 29.1 31.5 885.9 895.5 11.7 12.4 12.1 849.2 20 10 15.3 5.8 500 7.8 6.6 3.0 0 0 0.5

–7.1 –3.2 0 –20 –10 –7.7 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 (fiscal year) (fiscal year) (fiscal year)

Number of Employees Number of Employees by Business Field (consolidated) QConsolidated QNonconsolidated Electronics Company-wide 50,000 47,522 47,650 48,197 47,87248,197 7,075 positions 959 40,00038,570

30,000

20,000

11,181 11,548 10,000 8,769 8,633 8,508

0 Living Environment Information & Networks 2007 2008 2009 2010 2011 11,349 28,489 (ﬁscal year)

Net Sales by Business Field Capital Expenditure Total Assets & Return on Assets (ROA) (billion yen) (billion yen) (billion yen) (%)

Electronics 100 2,000 3.0 250.8 (17%) 92.0 1,787.4 1,681.7 1,665.6 1,694.3 80 2.1 1,586.8 72.9 1,500 2.0 68.0 65.0 66.8 60 1,000 1.0 0.7 0.7 40 0.2 500 0 20

–0.4 Living Environment Information & Networks 0 0 –1.0 381.9 (25%) 877.6 (58%) 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 (ﬁscal year) (ﬁscal year)

Net Sales by Region R&D Expenses Net Assets & Return on Equity (ROE) (billion yen) (billion yen) (billion yen) (%)

Asia, excluding Other regions 35 1,000 8.0 Japan 43.4 (3%) 9,403940.3 29.7 867.7 874.0 864.0 866.2 170.2 (11%) 28 28.7 800 6.0 4.8 24.4 23.4 21 21.4 600 4.0

14 400 1.6 1.6 2.0 -1.0 0.4 7 200 0

0 0 –2.0 Japan 1,296.6 (86%) 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 (ﬁscal year) (ﬁscal year)

Notes: 1. Net sales do not include consumption taxes. 2. The number of employees is the number of employees working at the Group. The number of non-regular employees for fiscal 2011 stood at 9,160 on a consolidated basis (the average number of employees throughout the fiscal year, including part-time workers but excluding temporary staff).

TOPPAN CSR REPORT 2012 5 Special Report 1 Book Wagon—Mobile Libraries to Support the Creation of Communities

Toppan runs a core business related to information and communication. This put Toppan in an ideal position to launch Book Wagon mobile libraries in the areas affected by the Great East Japan Earthquake over the post-disaster period from July 2011 to March 2012. Each week the wagons did their rounds, lending out books and magazines to displaced disaster victims in temporary housing areas. The Book Wagons were arranged proactively as means to provide mental support for victims at a time when great stresses were anticipated and to support the creation of new communities among the residents living in the temporary housing areas. This special report describes the Book Wagons and related activities.

6 TOPPAN CSR REPORT 2012 Temporary Housing Areas on the Book Wagon Routes

Book Wagon #1 Book Wagon #2 On Tuesdays On Tuesdays Sendai Oroshimachi 5-chome Ogimachi 4-chome Shiogama Port Park Park Takasago 1-chome Tsurumaki 1-chome- Sendai City, Sendai Station Park Higashi Park Miyagi Prefecture obu Road On Wednesdays On Wednesdays Okada-Nishimachi Park Fukudamachi-Minami Sendai-T Ogimachi 1-chome 1-chome Park Park Konan-Nishi Park On Fridays On Fridays Sendaiko Haigochi-6 JR Minami-Koizumi Park Apartment Shichigo-Chuo Park Wakabayashi-Nippe Ground On Saturdays Arai-Shogakkoyochi On Saturdays Asuto Nagamachi 38-gaiku

How Can Toppan Contribute to and enjoy conversation and interchange, it would become Disaster-stricken Areas? a venue for community creation. Toppan is closely involved in books through its printing business and has longstanding Administrative bodies, NPOs, and private companies pledged relationships with many publishing companies. It also operates commitments and started activities to support disaster victims businesses related to community creation to help meet public soon after the Great East Japan Earthquake struck on March challenges. Toppan found many reasons to plan and execute 11, 2011. Toppan discussed the types of support it could its mobile library project in the disaster-stricken areas. provide and considered how it could most benefit the disaster- affected areas on diverse levels. Toppan focused on the types of support required to address the medium-and-long-term demands arising in the affected Activity Results July 11, 2011 (Monday)–March 31, areas and activities in spheres where it could contribute the Activity period 2012 (Saturday) most. In the early discussions, a young employee submitted Mobile library 2 vehicles a plan to support the areas by deploying mobile libraries. 14 temporary housing sites in Sendai Travel route The plan was premised on the following prediction. Once City, Miyagi Prefecture relocated from the shelters to temporary housing, the victims Number of on-site staff 123 would have to rebuild their lives while still enduring the pain from the Toppan Group and confusion of the disaster and evacuation. They would have Number of people who dropped by the Book 9,650 to communicate and form relationships with new neighbors. Wagons At a time when both mutual support and mental healthcare Number of people who 5,123 were vital, books could provide comfort and encouragement. took out books If the mobile library became a place where people could gather Number of books lent out 17,105

Aims of the Book Wagons

Emergency evacuation Period for rebuilding lives Recovery period period (in shelters) (in temporary housing) (in restoration housing)

Modes of IPreparing hot meals, transporting IAssisting with relocation to temporary support supplies housing Supporting the creation of towns, etc. expected to be IRemoving dirt, clearing and tidying IMotivating affected individuals in life, I most needed devastated spaces, etc. providing jobs, etc.

Book delivery People can converse and share ideas through weekly visits over many weeks

Contributing to mental healthcare and building communities in the temporary housing areas

TOPPAN CSR REPORT 2012 7 Ceremony to mark the launch of the project on the first day of operation at Special bookshelves put together to match the season and the visitors’ the Company’s operational site in Izumi Ward, Sendai City, Miyagi Prefecture. interests. The selected themes were travel, Japan, self-reflection, connect- This was the base for Book Wagon operations, the point where project ing with others, and so on. organizers and volunteers pooled their hearts on reconstruction assistance.

Towards Community-rooted Activities with tions that they, the support-providers, had to make, the best All-hands Participation methods for communicating with the residents in temporary housing, and so on. Toppan set two principles in establishing the operating structure for the Book Wagons. Actual Situation in the Field—Understood One was to make the wagons an activity in which all of through Books the Toppan employees who wished to could take part. Many employees across the Company had already expressed the About 5,000 books were prepared for the Mobile Wagons. wish to contribute to the disaster-stricken areas. The Book The books were donated by Toppan employees, Group com- Wagon planners responded to their wishes by encouraging panies, the publisher SHUEISHA Inc., and the ‘Daishinsai- employees within the Group to join in an all-hands activity. Their taisaku’ Publisher’s Committee, a support force formed by a hope was to keep the concern for the victims and the spirit of large number of publishing company sponsors in response to support alive in as many Toppan people as possible. Employees the earthquake disaster. The Book Wagons also purchased a had the opportunity to take part in either of two ways. One was selection of the latest bestsellers from bookshops in Sendai to donate books they recommended to the mobile libraries. City. The librarians operating the wagons came up with their The other was to actually operate the libraries on site as mobile own book classifications for the shelves in consideration of the librarians. The Book Wagons were to be deployed into the field sentiments and needs of the temporarily housed residents. from July 2011, four months after the quake, about when the They prepared shelves for books related to mental healthcare victims who had evacuated to the shelters would be settled and life reconstruction. Special shelves were also set aside for in temporary housing. The planners began to request books books on seasonal topics. that people thought would be most useful and comforting for The Book Wagons did regular weekly rounds over the many the victims as the post-disaster period drew on. The mobile months of operation following their inauguration on July 11, librarians were replaced every week to ensure that as many 2011. As weeks passed and new temporary housing structures Toppan employees as possible could join in the operation. were built, more and more residents dropped by the wagons. The second principle was to root the activity in the communi- The number of picture books lent out rose sharply in sum- ties themselves. The planners were determined to leave the com- mertime, when children had their vacations from school. With munities with lasting records of the Book Wagon activities and the children came their parent homemakers, who took out the relationships the wagons helped to forge. Meanwhile, Toppan Types of Books Lent out (in a month; abstract) employees living outside the affected areas could only see news (books) reports and had no means to fully understand real situation. Picture books 1,000 Toppan therefore invited the participation of Miyagi Sendai Kodomo-no-oka, a specified nonprofit corporation that pro- 834 800 vides support to communities and families raising children, Novels mainly through the operation of children’s centers in Sendai 600 Recipes/ City, Miyagi Prefecture. Toppan also invited Dunamis Inc., cookbooks Comic books an operator of student internship programs. Both organiza- Religion/ 400 psychology/ Craft/ tions had already been involved in assistance for shelters and philosophy fancywork 340 252 reconstruction through their own networks. Both provided the 200 209 Book Wagon librarians with support-giving pointers during daily 105 115 operations: the real feelings of the victims, the mental prepara- 0

8 TOPPAN CSR REPORT 2012 Children perched themselves on cushions next to the Book Wagon and Visitors chatted as they browsed the bookshelves. Some were already surrendered their imaginations to their favorite books. acquainted. Others got to know one another through their encounters at the wagons.

a great many cookbooks and magazines with recipes. One ers. It will be wonderful if some of the interchanges between mother commented, “Since the quake my parents have been the temporarily housed and ordinary residents blossom into living with us under the same roof. Now I have to cook for my lasting friendships. children and my parents.” Another said, “Now I want to get Most of the visitors to the Book Wagons overall were elderly as much fun out of cooking as I can.” Cooking seemed to be women, mothers, and children. Concerned about the rela- a first step in rebuilding an ordinary life. tively low visit-rate by middle-aged and elderly men, the mobile Books on fancywork, knitting, and travel started to get librarians steadily acquired more magazines, special hobby- popular at the end of summer. Borrowers reported new reso- related books, and other content they hoped would appeal to lutions: “I’m going to start knitting again;” “I want to take a males who had lost their jobs because of the quake. journey through books.” Their words and the sorts of books In collaboration with companies and universities, Toppan they took out seemed to reflect a growing motivation to get also held special Salon Space events such as a workbook into the swing of their new lives. communication program, a book café, and the Art Salon, an Some book borrowers spoke with the mobile librarians art session for refreshing the mind through the creative work about the novels and self-help books they took out. Their of painting. Toppan strove to provide opportunities to engen- conversations revealed much about how they felt about living der conversation and interchange among the residents in the in an unfamiliar environment. affected areas through regular visits and extended-period operation over the nine months of the Book Wagon service. Contributing to Community Creation The mobile librarians set up a tent called the Salon Space next What Toppan Got back from the Communities to the Book Wagon. Residents could visit the space for chats Toppan was richly rewarded by the interest and kindness over tea or to browse newspapers and magazines. Grounds sur- of residents in the communities. The mobile librarians were rounding the Salon Space were opened for recreational events delighted by the small groups of children already waiting for arranged in cooperation with volunteers from Miyagi Sendai the Book Wagons when they arrived. They were also touched Kodomo-no-oka. The main events were a fancywork activity for by the words of gratitude residents gave to them and the gifts women and activities for children such as origami, picture-story of cold tomatoes and cucumbers residents brought in the hot shows, and games such as tag. summer. The Book Wagon experience reawakened Toppan vol- The mobile librarians noted how the Book Wagons served unteers to the magnificence of books and gave them a chance as meeting points and motivators for interchange among resi- to reflect. In daily meetings and reports, the mobile librarians dents. When residents meeting at the Salon Space exchanged often expressed their eagerness to continue aiding the disaster- names, some found that they were close neighbors and stricken areas and their gratitude to the residents of the com- established ties. Others returned to meet new friends they munities, especially those living in the temporary housing. had made there. Some residents who described themselves The Book Wagon activity gave many employees pause to as reluctant to go out in general made it a point of visiting the realize how they could make precious contributions to society Book Wagon when it parked nearby. Others who described through works closely tied with Toppan’s businesses. Toppan themselves as new to the area and in want of friends struck will keep up its efforts to contribute to the affected areas and up acquaintances with the librarians. Sendai residents living the general public with the help of its conscientious and com- nearby also came by, drawn to the temporary housing areas passionate people. because they were generally located in parks and other scenic *The Book Wagons resumed operations in collaboration with Tohoku locales. Most of these visitors were children and their moth- Fukushi University, an Art Salon cooperator, in June 2012.

TOPPAN CSR REPORT 2012 9 Special Report 2 Labor-Management Committee for the Creation of a Working Environment Amenable to Enhanced Job Satisfaction

Work-life balance, mental healthcare, and human resource development are examples of recent criteria for measuring the quality of the relationships between companies and their people. Toppan has striven to nurture employee job satisfaction by mutually cooperating and sincerely engaging in frank exchanges of views between the Labour Union and the Company.

Emphasizing Job Satisfaction Labor and management formed this committee in the shared belief that in today’s business climate of uncertain growth, the As the saying goes, “A company is its people.” If the employees Company should pursue increased productivity by enhancing derive no joy from work, the company will never grow. The job satisfaction and heightening the motivation and pleasure personal development of employees will be stunted and the employees find in work. workplace will lack vibrancy. Since its founding, the committee has engaged in labor- Toppan understands the importance of workplace morale management dialogues focused on issues at the workplace and takes steps to enhance employee job satisfaction. The and measures to solve them. Several features of the commit- Company has long pursued the creation of a friendlier working tee set it apart from the other entities usually entrusted with environment through the establishment and review of working labor-management consultations: systems and the implementation of in-house enlightenment •All members are free to express their true hopes and inten- activities. These measures, however, will only go so far in tions at the meetings, where labor and management meet enhancing employee recognition of the value of the company on an equal footing. and their jobs. Toppan has therefore positioned the enhance- •Members meet in small groups to maintain an atmosphere ment of a work-friendly environment and true employee job more conducive to frank and vigorous discussion. satisfaction—the pride and pleasure of working at Toppan—as •Measures are taken to encourage members to speak more a major management goal. freely. Job satisfaction is an amalgam of diverse factors that tend •Once reaching consensus on initiatives, the committee con- to be seen in different ways by different people. Toppan pro- signs them to different bodies to deliberate concrete actions. motes diverse initiatives to nurture a tangible job satisfaction The committee for the creation of a working environment that all of its people can share. amenable to enhanced job satisfaction is a totally new structure for dialogues between labor and management. It tran- Committee for Enhanced Job Satisfaction scends the boundaries and ideas of earlier labor-management The committee for the creation of a working environment ame- consultations at Toppan and conventional labor-management nable to enhanced job satisfaction is a new structure for labor- consultations in Japan. management consultations established in meetings during the annual spring round of the collective labor bargaining of 2008.

10 TOPPAN CSR REPORT 2012 Actual Results from the Committee’s Work Labor and management have exchanged opinions on vari- house mental healthcare systems. One prominent step was ous topics in meetings of the committee for enhanced job the creation of the Art Salon, a program in which employees satisfaction. A number of tangible actions have emerged from and even union executives can unwind and create art. The their discussions. In the summer of 2010, for example, labor committee examined a basic concept, framework, etc. for and management cosponsored the Toppan Sports Festival at many issues, including the promotion of working hour reduc- the Seibu Dome in Saitama Prefecture to help strengthen the tion and an upgrading of basic working conditions in Group Group’s solidarity and enhance the health of employees and companies. Toppan will rely on the various opportunities the their families. Younger members of the Labour Union and the committee provides for initiating labor-management discus- Company operated an event of their own making. As many as sions on different issues. 4,400 people enjoyed the festival, an event that transcended the boundaries between Group companies and workplaces. Labor and management also worked together to prepare and fund Toppan’s Welfare Guidebook, a single-volume compila- tion of information on the various welfare systems provided by the Company, the Labour Union, the Toppan Group Health Insurance Union, the Toppan Group Fraternal Benefit Society, and local and national governments for employees at different stages of their lives and careers. The Welfare Guidebook has been valued since its distribution to all employees in Japan. Welfare Guidebooks (in Japanese) Toppan Sports Festival Of all the tasks to be performed by labor and management, the top priority goes to those related to safety and health. The committee formulated the Basic Policy on Health and Safety for the entire Group. Another initiative is the Anzen Dojo, a safety training facility outfitted to simulate occupational accidents such as the jamming of body parts in machines. A permanent facility has been established and touring facilities are operated in regional areas. Toppan has also taken steps to enrich in- Art Salon Anzen Dojo, a safety training facility

Communication between Labor and Management Labor and management are partners: Workplace activation for the happiness Strengthening labor-management of employees and sound growth of communication Group companies At Toppan, the Labour Union and the management of the As a unified organization for the Group, Toppan Printing Company have worked together to cope with wide-ranging Labour Union is run by members from 12 Group companies, issues in the belief that labor and management are part- including Toppan Printing Co., Ltd. To mark the 60th anni- ners. This is a fundamental philosophy clearly stated in the versary of its founding, the Labour Union adopted its “One general principles of the collective labor agreement con- to One” slogan in 2006. Over the years the union has per- cluded between the Labour Union and the Company. Labor- formed activities to make the workplaces and companies management problems can be swiftly solved when the two healthy and vibrant mainly through people-to-people links parties meet in lively dialogs to exchange ideas from diverse and communications. The labor-management committee viewpoints. The labor-management committee for the for the creation of a working environment amenable to creation of a working environment amenable to enhanced enhanced job satisfaction provides rich opportunities for job satisfaction was formed as a forum for this mode of labor and management to discuss wide-ranging issues ear- exchange and has already produced many successful nestly, positively, and frankly. As I see it, deeper and more results. Toppan will strive to increase chances for face-to- trusting relationships between labor and management and face communication with union members and employees activated communications at the workplace can facilitate through recreational events cosponsored by labor and the happiness of employees and sound growth of Toppan management and through labor-management consultation Group companies. bodies such as the committee for the creation of a working environment amenable to enhanced job satisfaction.

Shinichi Okubo Managing Director Toshiyuki Tsurimoto Personnel & Labor Relations Division President Toppan Printing Co., Ltd. Toppan Printing Labour Union

TOPPAN CSR REPORT 2012 11 Results in Fiscal 2011 and Future Measures

Seven Core Subjects Action Points and Targets for Fiscal 2011 Main Measures in Fiscal 2011 Results in Fiscal 2011 Self Evaluation Action Points, Targets, and Main Measures for Fiscal 2012 •Deepened the understanding of ISO 26000 throughout Toppan via Company- •Promote an understanding of ISO 26000 and promote CSR activities in line wide basic education •Hold briefings with relevant departments to implement CSR management at Developing CSR management based on ISO 26000 A with the seven core subjects •Convened regular CSR promotion department meetings to check the progress Group companies in Japan Organizational of activities and expedite the next stages •Formulated BCPs in three business fields and information system departments; governance •Formulate BCPs, facilitate BCM, and implement BCP education and training in Formulating business continuity plans (BCPs) across the Group facilitated BCM through education, training, etc. based on the formulated BCPs and establishing structures for business continuity manage- the primary domains of business A •Formulate BCPs throughout the divisions, main Group companies, etc. •Formulated BCPs and implemented introductory training at the head office ment (BCM) •Implement BCP education and training at the head office and Group companies and Group companies •Organize various educational training programs to nurture businesspeople •Organized education through rank-based training, Company-wide basic education •Continue organizing various educational training programs to nurture business- Raising awareness of respect for basic human rights A guided by the concept of respect for people on CSR, training for Conduct Guidelines Promotion Leaders, and so on people guided by the concept of respect for people •Strengthened global recruiting activities and hired 5 non-Japanese persons at •Strengthen global recruiting activities through various approaches, including the Providing an open environment and information for recruitment •Strengthen global recruiting activities A Toppan Printing in Japan (joined in April 2012) hiring of non-Japanese students studying in Japan •Attained a 4.6% ratio of females among managerial and supervisory staff (as of April 1, 2012) Proactively appointing female employees to higher positions •Leverage female talent through positive action A •Leverage female talent through positive action by proactively appointing female employees to higher positions and leveraging female talent Working for equal opportunity in individual career development •Continue using the Challenging Job System (for the self-determination of career paths) •Appointed 133 employees to other divisions through the system (as of April 1, •Continue using the Challenging Job System with the aim of appointing 20% of A Human rights and helping employees pursue their own career paths to appoint employees to the departments and divisions where they would like to work 2012) employee applicants to the departments and divisions where they would like to work •Use the Senior Reemployment System as a tool for leveraging the expertise, •Considered various strategies for developing job positions for veteran •Use the Senior Reemployment System as a tool for leveraging the expertise, Supporting second careers for retired employees A knowledge, and experience of veteran employees employees up to the age of 65 under the continuous employment system knowledge, and experience of veteran employees •Attained a 1.91% ratio of employees with disabilities in the total workforce (as •Diligently facilitate the hiring of persons with disabilities in cooperation with of June 1, 2012) •Diligently facilitate the hiring of persons with disabilities in cooperation with local Promoting employment of persons with disabilities A local public job-placement offices in Japan •Developed job positions at workplaces to prepare for the hiring of employees public job-placement offices in Japan with disabilities •Devise schemes to give employees more opportunities to take on career •Examined a system for career selection development challenges •Rearrange working conditions and personnel systems to enhance the Company’s Operating personnel treatment systems properly •Reallocated human assets to construct business portfolios by accurately A capacity to respond to environmental changes in business; introduce and •Consider and implement measures to sustain employee motivation and follow keeping track of employee performance and behavior examine new systems and schemes up on morale-related issues •Begin imposing working-hour controls to limit overtime work to 60 hours a •Achieved further reductions of average hours of overtime worked per month, •Make maximum use of various working systems, including the multi-shift month Supporting work-life balance 1) attaining an almost 20% decrease compared with the fiscal 2007 level working system •Make maximum use of the multi-shift working system, the monthly/yearly A ➞ Shortening total working hours •Decided to adopt a new employment management system for closer •Facilitate close supervision of working hours by adopting a new employment flextime/irregular working schedules, the compensatory half-day off system, supervision of employees’ working conditions management system and the special shortened working hour system •Continue convening labor-management committees for the creation of a •Convened labor-management committees in July and December for the Supporting work-life balance 2) •Continue convening labor-management committees for the creation of a working working environment amenable to enhanced job satisfaction creation of a working environment amenable to enhanced job satisfaction ➞ Creating a working environment where employees can strike A environment amenable to enhanced job satisfaction •Keep every employee informed of childcare-leave-related systems, such as the •Encouraged eligible employees to take childcare leave by informing them and a balance between working and raising children •Continue informing employees of various childcare-leave-related systems extra childcare leave for mothers and fathers their immediate superiors of the childcare-leave-related systems available •Continued holding routine business councils and convening labor-manage- •Increase opportunities for opinion exchanges between labor and management, •Continue holding routine business councils and convening labor-management ment committees for the creation of a working environment amenable to including various council meetings and tripartite conferences committees for the creation of a working environment amenable to enhanced enhanced job satisfaction •Modify clauses on debt in the Company’s collective labor agreement and Creating a better working environment through partnerships job satisfaction A conclude individual collective labor agreements at manufacturing subsidiaries between labor and management •Convened labor-management committees on wages as a step to coordinate •Hold labor-management councils to coordinate working conditions at working conditions at manufacturing subsidiaries after their consolidation and affiliated companies Labour practices manufacturing subsidiaries after their consolidation within the Group within the Group; negotiated and agreed upon the retirement allowances at •Continue holding and gingering up recreational events jointly organized by labor these subsidiaries and management •Upgrade safety education at Anzen Dojo; operate touring dojo facilities at •Enriched education content on fire- and disaster-preparedness at Anzen Dojo; •Continue operating touring Anzen Dojo facilities at operational sites across Ensuring occupational safety and health operational sites across Japan had almost all employees participate in the touring dojo across Japan A Japan and begin operating the dojo at manufacturing subsidiaries •Continue holding safety meetings at operational sites across Japan •Held safety meetings at 9 operational sites across Japan •Open the Safety and Monotsukuri Library •Develop Group-wide countermeasures against large-scale disasters as initial •Installed satellite-based mobile phones and other emergency communication •Install Group-wide task force functions in Tokyo and the Kansai region in Japan actions under the BCPs hardware at main operational sites across Japan; checked and replenished •Formulate initial actions at each operational site; prepare a management system Reinforcing countermeasures against fires and disasters •Formulate initial actions to be taken in the event of an earthquake disaster stockpiles of supplies B at each division (comprehensive disaster-preparedness drills, installation of •Hold comprehensive disaster-preparedness drills and the like; stock up on •Held large-scale earthquake disaster preparedness drills doubling as trial runs emergency communication hardware, full-scale operation of the safety emergency supplies for use during earthquake disasters for the safety confirmation system confirmation system, stockpiling of supplies for use during earthquake disasters) •Offer healthcare guidance on the preemption of lifestyle-related diseases and •Asked industrial physicians and nurses to form and prescribe health improve- •Reduce the number of employees with health risks associated with metabolic Promoting healthcare and health enhancement prescribe lifestyle improvement programs for employees with health risks ment plans for employees with health risks associated with metabolic B syndrome through preventive measures against lifestyle-related diseases associated with metabolic syndrome, based on the results of medical examinations syndrome and to conduct follow-up monitoring •Continue operating Art Salon and conduct art sessions over a wider geographic •Opened Art Salon at 11 operational sites across Japan (4 more sites than in fiscal area in Japan 2010) and engaged 143 participants (35 more employees than in fiscal 2010) •Give employees opportunities to take part in Art Salon or consult with counselors Arranging measures for mental healthcare A •Provide opportunities for employees to consult with counselors over a wider •Increased the number of operational sites staffed with in-house counselors to over a wider geographic area in Japan geographic area in Japan 13 (7 more sites than in fiscal 2010) Fostering self-reliant employees based on “conduct of high •Enrich various measures to foster human assets, including rank-based and •Upgraded the existing programs and prepared the relevant environment and •Enhance employee skills in communication and networking and introduce A value,” a key concept in human asset development department-based training infrastructure practical programs to address business challenges The environment See page 37 •Organized Group-wide training for 542 Leaders in the first sessions and 508 •Expand the roles of Leaders and reinforce the approach to prevent improper Heightening awareness of laws, regulations, and the Conduct •Expand the roles of the Conduct Guidelines Promotion Leaders Leaders in the second sessions A conduct Guidelines •Update tools to promote the Conduct Guidelines •Issued every employee a revised Conduct Guidelines Casebook •Implement the Conduct Guidelines in overseas Group companies •Organized training on compliance with the Antitrust Laws of Japan for employees in the sales departments (2,802 trainees completed) •Organize training on compliance with the Antitrust Laws of Japan •Continue organizing training on compliance with the Subcontract Law of Japan •Organized training on compliance with the Subcontract Law of Japan for for employees in the production control departments of Toppan and Group Complying with transaction-related laws •Ensure proper subcontract transactions; build proper relationships with partner A employees in the production control departments of Toppan and Group companies and continue interviews to check how subcontract transactions are companies companies (2,064 trainees) and interviewed with these departments to check being handled how subcontract transactions were being handled Fair operating practices •Collected questionnaires from 13 business partners and analyzed operations •Continue assessing the status of compliance in the procurement departments by •Improve compliance in procurement operations by asking 10 main business performed at a cumulative total of 67 Toppan operational sites Improving compliance in procurement operations A asking 10 main business partners to report their satisfaction with Toppan in a partners to report on their relationships with Toppan in a questionnaire survey •Analyzed the results to identify points requiring improvement in the procure- questionnaire survey ment departments and instructed them to improve these points •Reassessed 68 business partners (including main partners and some partners whose •Verify and reassess improvements at business partners who have received CSR activities were seen to be at a lower grade); interviewed business partners whose lower ratings in the questionnaire survey on the current status of their CSR improvements Toppan found still to be inadequate, pointed out problems and other •Review the CSR Procurement Guidelines with an eye to ISO 26000 Promoting CSR initiatives in the supply chain activities (Give guidance to business partners whose improvements Toppan issues to be tackled, and informed them of their obligation to improve these points B sees as inadequate; raise the levels of CSR initiatives throughout the entire •Establish operational rules accommodating global procurement supply chain) •Held 4 briefing sessions on CSR for 283 business partners involved in production in the Information & Networks field •Continue performing regular audits and certification screenings of operational •Held nationwide quality meetings of filling/packing plants in Japan to share with sites inside and outside the Company in the food packaging and filling/packing operational sites across the Group cases where quality improvements were achieved businesses to assess their conformity to the Quality Assurance Guidelines for •Carried out 32 audits at 25 operational sites inside and outside the Company, •Continue product safety management activities in the food packaging and filling/ Food Packaging including food packaging and filling/packing plants packing businesses; audit the medical and drug packaging businesses Ensuring consumer safety through the strict prevention of •Formulate a set of quality assurance guidelines for orders received for and the produc tion A •Execute priority measures, including steps to prevent the admixture of different quality-related accidents •Formulated and put into effect pharmaceutical affairs guidelines that were behind of packaging products related to pharmaceuticals (including packaging for schedule and audited new partner companies in the Information & Networks field products and foreign substances in all types of packaging manufactured medicinal drugs and quasi drugs) and put the guidelines into effect on a trial basis •Revised Green Procurement Standards at each division to meet the require- •Continue managing chemical substances in products based on Green Procure- •Continue managing chemical substances in products based on a set of Green ments under Ver. 3.0 of the Toppan Group’s Standards for the Management of ment Standards at each division Procurement Standards at each division Chemical Components of Raw Materials Consumer issues •Revised calculation denominators (per unit) for in-house CFP calculation tools •Establish and operate promotion structures to disseminate CFP reporting •Organize education for the persons in charge of reporting the carbon footprint and educated persons in charge at the divisions throughout the divisions of products (CFP) at operational sites in the Information & Networks and Living Developing eco-friendly products Environment fields • Acquired Japanese certification for the Company’s printed materials: Tips for A •Set the groundwork for smooth revisions of the CFP calculation method (shifting Eco-business leaflet (in Japanese) and this CSR report (Japanese-language version) certification units from product-by-product units to a comprehensive unit •Acquire Japanese CFP certification for the Company’s printed materials •Formulated application manuals for acquiring Japanese certification and educated persons in charge covering the entire system) •Upgrade and disseminate management measures based on risk levels in •Revised the installation and operational criteria governing the tightly secured •Instruct the tightly secured areas designated for the handling of personal information (48 Establishing an information security management structure operations entrusted to Toppan areas designated for the handling of personal information and shifted to a sites) on the conformity to the new criteria and re-qualify them based on the new criteria towards the complete elimination of information-related A •Revise the policies and rules in line with Group management qualification system for these areas accidents •Facilitate cooperation among Group companies to take countermeasures •Accelerate PDCA with a focus on priority measures at Group companies •Revised the related rules and verified the progress of priority measures at Group companies against IT risks (antivirus measures, related education) •Deployed the Book Wagon mobile libraries on regular rounds of 14 temporary •Carry out medium-term recovery assistance measures for the areas stricken housing areas for disaster victims in Sendai City, Miyagi Prefecture as mobile •Continue carrying out medium-term recovery assistance measures for the areas Community involvement Arranging social contribution programs to help solve social by the Great East Japan Earthquake venues for communication among residents A stricken by the Great East Japan Earthquake (continue the Book Wagon activities) issues and development •Sponsor and organize the fifth series of Toppan Charity Concerts •Sponsored the concerts for two days as scheduled and donated 2.24 million •Sponsor the sixth series of Toppan Charity Concerts yen to the Asia-Pacific Cultural Centre for UNESCO Evaluation criteria: S, Results achieved far surpass the targets; A, Targets achieved; B, Activities fully carried out, but targets unachieved; C, Activities insufficient

12 TOPPAN CSR REPORT 2012 Seven Core Subjects Action Points and Targets for Fiscal 2011 Main Measures in Fiscal 2011 Results in Fiscal 2011 Self Evaluation Action Points, Targets, and Main Measures for Fiscal 2012 •Deepened the understanding of ISO 26000 throughout Toppan via Company- •Promote an understanding of ISO 26000 and promote CSR activities in line wide basic education •Hold briefings with relevant departments to implement CSR management at Developing CSR management based on ISO 26000 A with the seven core subjects •Convened regular CSR promotion department meetings to check the progress Group companies in Japan Organizational of activities and expedite the next stages •Formulated BCPs in three business fields and information system departments; governance •Formulate BCPs, facilitate BCM, and implement BCP education and training in Formulating business continuity plans (BCPs) across the Group facilitated BCM through education, training, etc. based on the formulated BCPs and establishing structures for business continuity manage- the primary domains of business A •Formulate BCPs throughout the divisions, main Group companies, etc. •Formulated BCPs and implemented introductory training at the head office ment (BCM) •Implement BCP education and training at the head office and Group companies and Group companies •Organize various educational training programs to nurture businesspeople •Organized education through rank-based training, Company-wide basic education •Continue organizing various educational training programs to nurture business- Raising awareness of respect for basic human rights A guided by the concept of respect for people on CSR, training for Conduct Guidelines Promotion Leaders, and so on people guided by the concept of respect for people •Strengthened global recruiting activities and hired 5 non-Japanese persons at •Strengthen global recruiting activities through various approaches, including the Providing an open environment and information for recruitment •Strengthen global recruiting activities A Toppan Printing in Japan (joined in April 2012) hiring of non-Japanese students studying in Japan •Attained a 4.6% ratio of females among managerial and supervisory staff (as of April 1, 2012) Proactively appointing female employees to higher positions •Leverage female talent through positive action A •Leverage female talent through positive action by proactively appointing female employees to higher positions and leveraging female talent Working for equal opportunity in individual career development •Continue using the Challenging Job System (for the self-determination of career paths) •Appointed 133 employees to other divisions through the system (as of April 1, •Continue using the Challenging Job System with the aim of appointing 20% of A Human rights and helping employees pursue their own career paths to appoint employees to the departments and divisions where they would like to work 2012) employee applicants to the departments and divisions where they would like to work •Use the Senior Reemployment System as a tool for leveraging the expertise, •Considered various strategies for developing job positions for veteran •Use the Senior Reemployment System as a tool for leveraging the expertise, Supporting second careers for retired employees A knowledge, and experience of veteran employees employees up to the age of 65 under the continuous employment system knowledge, and experience of veteran employees •Attained a 1.91% ratio of employees with disabilities in the total workforce (as •Diligently facilitate the hiring of persons with disabilities in cooperation with of June 1, 2012) •Diligently facilitate the hiring of persons with disabilities in cooperation with local Promoting employment of persons with disabilities A local public job-placement offices in Japan •Developed job positions at workplaces to prepare for the hiring of employees public job-placement offices in Japan with disabilities •Devise schemes to give employees more opportunities to take on career •Examined a system for career selection development challenges •Rearrange working conditions and personnel systems to enhance the Company’s Operating personnel treatment systems properly •Reallocated human assets to construct business portfolios by accurately A capacity to respond to environmental changes in business; introduce and •Consider and implement measures to sustain employee motivation and follow keeping track of employee performance and behavior examine new systems and schemes up on morale-related issues •Begin imposing working-hour controls to limit overtime work to 60 hours a •Achieved further reductions of average hours of overtime worked per month, •Make maximum use of various working systems, including the multi-shift month Supporting work-life balance 1) attaining an almost 20% decrease compared with the fiscal 2007 level working system •Make maximum use of the multi-shift working system, the monthly/yearly A ➞ Shortening total working hours •Decided to adopt a new employment management system for closer •Facilitate close supervision of working hours by adopting a new employment flextime/irregular working schedules, the compensatory half-day off system, supervision of employees’ working conditions management system and the special shortened working hour system •Continue convening labor-management committees for the creation of a •Convened labor-management committees in July and December for the Supporting work-life balance 2) •Continue convening labor-management committees for the creation of a working working environment amenable to enhanced job satisfaction creation of a working environment amenable to enhanced job satisfaction ➞ Creating a working environment where employees can strike A environment amenable to enhanced job satisfaction •Keep every employee informed of childcare-leave-related systems, such as the •Encouraged eligible employees to take childcare leave by informing them and a balance between working and raising children •Continue informing employees of various childcare-leave-related systems extra childcare leave for mothers and fathers their immediate superiors of the childcare-leave-related systems available •Continued holding routine business councils and convening labor-manage- •Increase opportunities for opinion exchanges between labor and management, •Continue holding routine business councils and convening labor-management ment committees for the creation of a working environment amenable to including various council meetings and tripartite conferences committees for the creation of a working environment amenable to enhanced enhanced job satisfaction •Modify clauses on debt in the Company’s collective labor agreement and Creating a better working environment through partnerships job satisfaction A conclude individual collective labor agreements at manufacturing subsidiaries between labor and management •Convened labor-management committees on wages as a step to coordinate •Hold labor-management councils to coordinate working conditions at working conditions at manufacturing subsidiaries after their consolidation and affiliated companies Labour practices manufacturing subsidiaries after their consolidation within the Group within the Group; negotiated and agreed upon the retirement allowances at •Continue holding and gingering up recreational events jointly organized by labor these subsidiaries and management •Upgrade safety education at Anzen Dojo; operate touring dojo facilities at •Enriched education content on fire- and disaster-preparedness at Anzen Dojo; •Continue operating touring Anzen Dojo facilities at operational sites across Ensuring occupational safety and health operational sites across Japan had almost all employees participate in the touring dojo across Japan A Japan and begin operating the dojo at manufacturing subsidiaries •Continue holding safety meetings at operational sites across Japan •Held safety meetings at 9 operational sites across Japan •Open the Safety and Monotsukuri Library •Develop Group-wide countermeasures against large-scale disasters as initial •Installed satellite-based mobile phones and other emergency communication •Install Group-wide task force functions in Tokyo and the Kansai region in Japan actions under the BCPs hardware at main operational sites across Japan; checked and replenished •Formulate initial actions at each operational site; prepare a management system Reinforcing countermeasures against fires and disasters •Formulate initial actions to be taken in the event of an earthquake disaster stockpiles of supplies B at each division (comprehensive disaster-preparedness drills, installation of •Hold comprehensive disaster-preparedness drills and the like; stock up on •Held large-scale earthquake disaster preparedness drills doubling as trial runs emergency communication hardware, full-scale operation of the safety emergency supplies for use during earthquake disasters for the safety confirmation system confirmation system, stockpiling of supplies for use during earthquake disasters) •Offer healthcare guidance on the preemption of lifestyle-related diseases and •Asked industrial physicians and nurses to form and prescribe health improve- •Reduce the number of employees with health risks associated with metabolic Promoting healthcare and health enhancement prescribe lifestyle improvement programs for employees with health risks ment plans for employees with health risks associated with metabolic B syndrome through preventive measures against lifestyle-related diseases associated with metabolic syndrome, based on the results of medical examinations syndrome and to conduct follow-up monitoring •Continue operating Art Salon and conduct art sessions over a wider geographic •Opened Art Salon at 11 operational sites across Japan (4 more sites than in fiscal area in Japan 2010) and engaged 143 participants (35 more employees than in fiscal 2010) •Give employees opportunities to take part in Art Salon or consult with counselors Arranging measures for mental healthcare A •Provide opportunities for employees to consult with counselors over a wider •Increased the number of operational sites staffed with in-house counselors to over a wider geographic area in Japan geographic area in Japan 13 (7 more sites than in fiscal 2010) Fostering self-reliant employees based on “conduct of high •Enrich various measures to foster human assets, including rank-based and •Upgraded the existing programs and prepared the relevant environment and •Enhance employee skills in communication and networking and introduce A value,” a key concept in human asset development department-based training infrastructure practical programs to address business challenges The environment See page 37 •Organized Group-wide training for 542 Leaders in the first sessions and 508 •Expand the roles of Leaders and reinforce the approach to prevent improper Heightening awareness of laws, regulations, and the Conduct •Expand the roles of the Conduct Guidelines Promotion Leaders Leaders in the second sessions A conduct Guidelines •Update tools to promote the Conduct Guidelines •Issued every employee a revised Conduct Guidelines Casebook •Implement the Conduct Guidelines in overseas Group companies •Organized training on compliance with the Antitrust Laws of Japan for employees in the sales departments (2,802 trainees completed) •Organize training on compliance with the Antitrust Laws of Japan •Continue organizing training on compliance with the Subcontract Law of Japan •Organized training on compliance with the Subcontract Law of Japan for for employees in the production control departments of Toppan and Group Complying with transaction-related laws •Ensure proper subcontract transactions; build proper relationships with partner A employees in the production control departments of Toppan and Group companies and continue interviews to check how subcontract transactions are companies companies (2,064 trainees) and interviewed with these departments to check being handled how subcontract transactions were being handled Fair operating practices •Collected questionnaires from 13 business partners and analyzed operations •Continue assessing the status of compliance in the procurement departments by •Improve compliance in procurement operations by asking 10 main business performed at a cumulative total of 67 Toppan operational sites Improving compliance in procurement operations A asking 10 main business partners to report their satisfaction with Toppan in a partners to report on their relationships with Toppan in a questionnaire survey •Analyzed the results to identify points requiring improvement in the procure- questionnaire survey ment departments and instructed them to improve these points •Reassessed 68 business partners (including main partners and some partners whose •Verify and reassess improvements at business partners who have received CSR activities were seen to be at a lower grade); interviewed business partners whose lower ratings in the questionnaire survey on the current status of their CSR improvements Toppan found still to be inadequate, pointed out problems and other •Review the CSR Procurement Guidelines with an eye to ISO 26000 Promoting CSR initiatives in the supply chain activities (Give guidance to business partners whose improvements Toppan issues to be tackled, and informed them of their obligation to improve these points B sees as inadequate; raise the levels of CSR initiatives throughout the entire •Establish operational rules accommodating global procurement supply chain) •Held 4 briefing sessions on CSR for 283 business partners involved in production in the Information & Networks field •Continue performing regular audits and certification screenings of operational •Held nationwide quality meetings of filling/packing plants in Japan to share with sites inside and outside the Company in the food packaging and filling/packing operational sites across the Group cases where quality improvements were achieved businesses to assess their conformity to the Quality Assurance Guidelines for •Carried out 32 audits at 25 operational sites inside and outside the Company, •Continue product safety management activities in the food packaging and filling/ Food Packaging including food packaging and filling/packing plants packing businesses; audit the medical and drug packaging businesses Ensuring consumer safety through the strict prevention of •Formulate a set of quality assurance guidelines for orders received for and the produc tion A •Execute priority measures, including steps to prevent the admixture of different quality-related accidents •Formulated and put into effect pharmaceutical affairs guidelines that were behind of packaging products related to pharmaceuticals (including packaging for schedule and audited new partner companies in the Information & Networks field products and foreign substances in all types of packaging manufactured medicinal drugs and quasi drugs) and put the guidelines into effect on a trial basis •Revised Green Procurement Standards at each division to meet the require- •Continue managing chemical substances in products based on Green Procure- •Continue managing chemical substances in products based on a set of Green ments under Ver. 3.0 of the Toppan Group’s Standards for the Management of ment Standards at each division Procurement Standards at each division Chemical Components of Raw Materials Consumer issues •Revised calculation denominators (per unit) for in-house CFP calculation tools •Establish and operate promotion structures to disseminate CFP reporting •Organize education for the persons in charge of reporting the carbon footprint and educated persons in charge at the divisions throughout the divisions of products (CFP) at operational sites in the Information & Networks and Living Developing eco-friendly products Environment fields • Acquired Japanese certification for the Company’s printed materials: Tips for A •Set the groundwork for smooth revisions of the CFP calculation method (shifting Eco-business leaflet (in Japanese) and this CSR report (Japanese-language version) certification units from product-by-product units to a comprehensive unit •Acquire Japanese CFP certification for the Company’s printed materials •Formulated application manuals for acquiring Japanese certification and educated persons in charge covering the entire system) •Upgrade and disseminate management measures based on risk levels in •Revised the installation and operational criteria governing the tightly secured •Instruct the tightly secured areas designated for the handling of personal information (48 Establishing an information security management structure operations entrusted to Toppan areas designated for the handling of personal information and shifted to a sites) on the conformity to the new criteria and re-qualify them based on the new criteria towards the complete elimination of information-related A •Revise the policies and rules in line with Group management qualification system for these areas accidents •Facilitate cooperation among Group companies to take countermeasures •Accelerate PDCA with a focus on priority measures at Group companies •Revised the related rules and verified the progress of priority measures at Group companies against IT risks (antivirus measures, related education) •Deployed the Book Wagon mobile libraries on regular rounds of 14 temporary •Carry out medium-term recovery assistance measures for the areas stricken housing areas for disaster victims in Sendai City, Miyagi Prefecture as mobile •Continue carrying out medium-term recovery assistance measures for the areas Community involvement Arranging social contribution programs to help solve social by the Great East Japan Earthquake venues for communication among residents A stricken by the Great East Japan Earthquake (continue the Book Wagon activities) issues and development •Sponsor and organize the fifth series of Toppan Charity Concerts •Sponsored the concerts for two days as scheduled and donated 2.24 million •Sponsor the sixth series of Toppan Charity Concerts yen to the Asia-Pacific Cultural Centre for UNESCO Evaluation criteria: S, Results achieved far surpass the targets; A, Targets achieved; B, Activities fully carried out, but targets unachieved; C, Activities insufficient

TOPPAN CSR REPORT 2012 13 Toppan’s CSR Activities

Toppan’s Ideal “Corporate Structure” Corporate Philosophy, Corporate Creed, and TOPPAN VISION 21 sets forth the basic concept and direc- Conduct Guidelines tionality for the continual growth of the Group in harmony with The Corporate Structure is made up of three elements: society and the global environment. Toppan’s Corporate Philosophy, the Corporate Creed, and The vision consists of a “Corporate Structure” and a set the Conduct Guidelines. These elements specify a complete of “Business Fields.” The Corporate Structure specifies ideals set of values, standards, and guidelines for the operations of and important values and concepts for the Toppan Group. the Toppan Group. The Group believes that endeavors to realize the Corporate Toppan established the Corporate Philosophy, the top-level Structure will support the sustainable development of Toppan concept underpinning all of Toppan’s corporate activities, to and society as a whole. promote Toppan’s continual development as a socially valuable corporation. The Corporate Creed expresses the standards to be kept foremost in mind when performing business operations. Built on the Corporate Philosophy and Corporate Creed, the Conduct Guidelines set out the basic concepts and behavioral norms for Toppan employees both as businesspeople and as members of society.

Toppan’s Ideal “Corporate Structure”

Corporate Philosophy Corporate Creed Conduct Guidelines

Each of us shall To build our customers’ trust though Chapter 1: Basic Principles sincerity, enthusiasm, and creativity in 1. Respecting basic human rights reciprocate our customers’ all our corporate endeavors. 2. Having high ethical standards continued trust, and acting as a responsible member of society create dedicated products by To strive for total innovation from 3. Complying with laws and harnessing our vibrant knowledge a global perspective by conducting company rules and conducting marketing and technological fair business operations and technology, development rich in originality. 4. Avoiding all links with antisocial and contribute to a fulfilling lifestyle as groups 5. Striving to improve quality a mainstay of information and culture. To conduct fair and open business and providing creations operations while acknowledging our that contribute to customer satisfaction social responsibilities and aspiring for 6. Recognizing the importance of Established in June 2000 harmony with our global environment. information related to business and managing it appropriately To create a positive working 7. Proactively undertaking conservation of the global environment by maximizing our environment individual talents and strengths 8. Embracing change and taking as a team. on new challenges 9. Building trust from society through social contribution TOPPAN VISION 21 To enhance our corporate http://www.toppan.co.jp/english/ activities and appropriate corporateinfo/vision/corp_image/rinen.html standing and promote the continual disclosure of information development of the Toppan Group 10. Bringing together individual through the exploration of new strengths to fully exploit the integrated strength of the group possibilities. Established in June 2000; revised in November 2010 See page 29 for Chapter 2: Specific Conduct Established in June 2000 Guidelines.

14 TOPPAN CSR REPORT 2012 CSR Activities Dialogue with Stakeholders Corporate social responsibility (CSR) activities are prominent Toppan has recognized categories of stakeholders who are among Toppan’s many endeavors to realize the ideal Cor- either vital for its business operations or potentially impacted porate Structure the Group envisions. As measures seeking by them: customers (client companies, consumers), business to incorporate social demands into business operations, the partners, communities, shareholders/investors, and employees. CSR activities are vital for Toppan’s growth as a corporation To shape CSR activities satisfactory to all stakeholders, in harmony with society and the global environment. Toppan attaches great importance to stakeholder dialogues In designing concrete activities, Toppan closely refers to the and reflects stakeholder opinions in its activities. ISO 26000 Guidance on Social Responsibility, an international Along with the regular dialogues with its stakeholders in the standard formulated through the consensus of diverse stake- course of daily business, Toppan has been holding meetings holders around the world. Various types of organizations and with representatives from each stakeholder category and with entities have engaged in the standard-making process. This experts and organizations deeply knowledgeable on social standard therefore typifies demands from society at present. issues since fiscal 2004. In fiscal 2011, Toppan took part in ISO 26000 provides guidance on the principles of social the ISO 26000 Working Group organized by Global Compact responsibility—what it means and how it applies to organiza- Network Japan and carried on a dialogue with global NGOs on tions. Any type of organization of any size can use it. Unlike topics to do with the environment, human rights, community other standards on quality or environmental management, this involvement, fair operating practices, and labour practices. guidance standard focuses on stakeholder opinions: no certification is granted by third-party organizations. Toppan will promote CSR activities with this guidance in mind and disclose the results via this CSR report in line with the seven core subjects of social responsibility defined under ISO 26000.

Toppan’s Stakeholders and Seven Core Subjects

Customers (client companies, Employees consumers)

TOPPAN Labour Human rights practices Corporate Structure Community The environment involvement and development Organizational governance

Fair operating Consumer issues practices Shareholders and Business partners investors

Stakeholders Communities

Seven core subjects

Dialogues

TOPPAN CSR REPORT 2012 15 Initiatives at Toppan and Seven Core Subjects under ISO 26000

ISO 26000 Seven Core Subjects Issues For Details Pages Organizational Organizational governance ICorporate Governance P. 17− governance ICSR Initiatives IRisk Management Structure IBusiness Continuity Management

Human rights Issue 1: Due diligence IRespecting Basic Human Rights and P. 20− Issue 2: Human rights risk situations Operating Hotlines Issue 3: Avoidance of complicity ICollective Labor Agreement Issue 4: Resolving grievances IWorking for Equal Opportunity and Eliminating Discrimination Issue 5: Discrimination and vulnerable groups Issue 6: Civil and political rights Issue 7: Economic, social and cultural rights Issue 8: Fundamental principles and rights at work

Labour practices Issue 1: Employment and employment relationships IBasic Concept of Human Assets P. 22− Issue 2: Conditions of work and social protection ILabor-Management Partnership Issue 3: Social dialogue ISupporting Work-Life Balance Issue 4: Health and safety at work IOccupational Safety and Health / Issue 5: Human development and training in the Healthcare and Health Enhancement / workplace Fire- and Disaster-preparedness IMeasures for Mental Healthcare IDeveloping and Fostering Human Assets

The environment Issue 1: Prevention of pollution IToppan’s Environmental Activities P. 36− Issue 2: Sustainable resource use IEnvironmental Targets and Results Issue 3: Climate change mitigation and adaptation IToppan’s Environmental Burden Issue 4: Protection of the environment, biodiversity IEnvironmental Management Activities and restoration of natural habitats IEco-protection Activities IEco-creativity Activities IEnvironmental Communication Activities

Fair operating Issue 1: Anti-corruption IDisseminating the Conduct Guidelines P. 26− practices Issue 2: Responsible political involvement IToppan Group Helpline Issue 3: Fair competition IImplementing the Conduct Guidelines in Issue 4: Promoting social responsibility in the value Overseas Group Companies chain ICompliance Education Issue 5: Respect for property rights IPromoting CSR Procurement

Consumer issues Issue 1: Fair marketing, factual and unbiased IAssuring Product Safety and Quality P. 30− information and fair contractual practices IChallenges in Universal Design Issue 2: Protecting consumers’ health and safety IProtecting Personal Information Issue 3: Sustainable consumption IContributing to Sustainable Consumption Issue 4: Consumer service, support, and complaint and dispute resolution Issue 5: Consumer data protection and privacy Issue 6: Access to essential services Issue 7: Education and awareness

Community Issue 1: Community involvement ICommunity Contribution and Involvement P. 34− involvement and Issue 2: Education and culture ICooperating with International Issue 3: Employment creation and skills development Communities to Address Social Issues development Issue 4: Technology development and access Issue 5: Wealth and income creation Issue 6: Health Issue 7: Social investment

16 TOPPAN CSR REPORT 2012 Organizational Governance 17

(Board of) Corporate Auditors

Assisting ing t Corporate Auditors Ofﬁce Auditing Auditing dismissing Repor d or d an t e d

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stigat fe Instructing ethic ws Sa oppan or nve strict la of Promot Coor T appr I ationa l Commit N r organizations e ect r s ﬁc the tment e Di s O Specia Toppan has had KPMG AZSA LLC verify the propriety of the the of propriety the verify LLC AZSA KPMG had has Toppan er t Of er or Corporate Auditors, Board of Corporate Auditors, of Corporate Auditors, Board Corporate Auditors, and Audit Firm th - audi corporate five has Toppan 2012, March of end the of As inde- are two whom of auditors, external three including tors, pendent officers. Along with their own board meetings, the corporate auditors attend meetings of the Board of Directors andManagement Committee and important meetings onrisk opera- for audits out carry systematically They management. tional sites and related companies in close cooperation with the audit firm and internal audit-related departments of the Company. Through these tasks, they audit and advise legality the the ensure to perspective preventive a from Company smooth and departments and directors the of operations the of company with line in management corporate appropriate and board a convene regularly also They regulations. and policies of corporate auditors of related companies to improve the effectiveness of the audits by the corporate auditors across the Group. reliability the enhance to audits through accounts Company’s financial information. of the Company’s and transparency defending agains ect r t Audi y Cent oge e Depar t Di Shareholder of colog rking - E Wo t & Representativ Board of Complianc Managemen dismissing dismissing Meeting or or ing d esiden rv an Pr guiding Obse Selecting ppointing

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fo Pr an gencie depa ationa TP N Independentl Crisis dismissing Responds emer Toppan develops governance aimed at maximizing the corporate value of the entire Group under the Related under the Related Group governance develops of the entire the corporate value aimed at maximizing Toppan Regulations. Company Administration Toppan has strengthened its governance structure through the establishment of a Management Audit Office, Audit Office, of a Management the establishment through its governance structure strengthened has Toppan to Auditors according of Corporate the purview of a Board Center under Department, and Ecology Compliance the Companies Act of Japan. the Companies

or ppointing Auditing Auditing A Toppan has strengthenedhasgovernance its structureToppan through Points The Directors, Board of Directors, and Various Meetings Audit ﬁrm Corporate Governance Structure resentative Director. The goal is to lay weight on managerial in business decision making. efficiency Toppan Toppan has 26 directors, including two outside directors, on its board (as of the end of March 2012). Board meetings are heldmonthly and whenever apressing matter requires action or deliberation. Especially important are deliberated beforehand by the managementManagement Committee, themes Rep & President the by selected directors of up made body a Corporategovernance providesfoundationtheaddressing for subjects. the seven core Compliance Office, Audit Management a of establishment the Board a of purview the under Center Ecology and Department, of Corporate Auditors according to the the maximizing Companies at aimed governance develops Act Toppan of Japan. corporate value of the entire Group under the Related Com- advance- the for prescribed Regulations Administration pany ment of fair management for the Group. Corporate Governance Organizational GovernanceOrganizational - Risk to Be Managed Accidents or complaints related to products (Manufacturing Management Div.) Management (Manufacturing products to related complaints or Accidents antisocial organizations, transactions conducted demands from Unreasonable Div.) between business partners and antisocial organizations (Legal Affairs Material losses or personal accidents suffered by customers or the by customers or the Material losses or personal accidents suffered company due to earthquakes, wind or water damage, lightning, etc. (Personnel & Labor Relations Div.) Operational shutdowns due to large-scale earthquakes or other Div.) unexpected events (Legal Affairs Div.) takeovers (Legal Affairs derivative lawsuits, hostile Shareholder Violations of the Subcontract Law of Japan, illegal transactions with business partners (Manufacturing Management Div.) Div.) Infringements of patents, trademarks, or copyrights (Legal Affairs illegal disposal of industrial laws or standards, Violations of environmental waste (Manufacturing Management Div.) or natural disasters, fires problems, accidents, environmental Product damage to human or physical resources caused by international conflicts Div.) etc. (Corporate Planning or terrorism, Accidents related to main systems (ICT Div.) to main systems (ICT Accidents related or other accidents involving accidents, Occupational accidents, traffic employees (Personnel & Labor Relations Div.) (Finance & Accounting Div.) receivable to notes or accounts Incidents related Div.) (Legal Affairs received with orders Legal problems Leakage of personal information, internal confidential information, etc. Div.) (Legal Affairs Accidents or disasters related to fires or explosions (Manufacturing Management Div.) of solvents, management of to the storage Illegal activities related Management Div.) chemicals, etc. (Manufacturing dangerous internal computer system due to cyber Damage to the company’s information, leakage of illegal access or use of company terrorism, personal information, internal information, etc. (ICT Div.) Acts of violence against the company (threats, kidnapping, robbery) (Personnel & Labor Relations Div.) These directors and divisions devise action plans every year. year. every plans action devise divisions and directors These Remuneration to Directors and Corporate Auditors Remuneration to Directors Mechanism Promotion In fiscal 2011, the total annualremuneration to directors was corpo- to remuneration annual total the and yen million 1,089 rate auditors was 110 million yen. Please refer to the Status Governance,Corporate of for statements financial the in etc. details on the method used to determine remunerations and information. remuneration-related Director the and Director Representative & President the Under collabora in work office head the of divisions CSR, of charge in tion with each other to promote CSR activities. tion with each other to promote departmentpromotionmeetingstoCSR conveneregular They report the progress of activities undertaken at each division, share relevant issues to be tackled, discuss ways to resolve believechallenges,theythesesocietywhatexpectsshare and mechanism,initiativesgeneral.thisUnderCSRToppan in from seeks it responsibilities social the disseminatesteadily to works to meet across the Company and to perpetually upgrade its CSR activities. CSR Initiatives PP. 26, PP. Natural disasters Risk in business management Unlawful activities related to external contracts Infringement of intellectual property problems Environmental Risk in overseas business activities Accidents involving products liability or product Accidents or disasters related to company operations Defamation, slander, or other criminal damages Relationships with antisocial organizations Risk to Be Managed and the Relevant Head Office Divisions in Charge Office Risk to Be Managed and the Relevant Head t or e bor ect ﬁc Division r

lopmen anning tment t Division ve s Division & La y Of Division h Division e Di CSR e Pl De fair of Division Division e & Accounting onnel n depar Relations l Af

rs nc Manufacturing P. 36). P. Secretar Relations Pe Corporat usiness & Researc charge Lega Managemen Fina B Public in promotio or t & Representativ dministration ect r A meeting CSR Di

The Compliance Department in the Legal Affairs Division esiden

Strengthening Audit Functions Strengthening Pr spearheads the Company’s initiatives observance to of ensure laws the and regulations strict and ethical to firmly business establish practices. The department facilitates complete the awareness of the Conduct and laws, applicable with compliance Guidelines,on education employee organizes implements internal audits on information security (➞ The Management Audit Office is and legal from a body Working divisions. business established the from independently audits objective and fair conducts office the viewpoints, rational on the administrative and operational systems and practical status of the Company’s management activities. The office on problems, departments feedback to the relevant provides proposes measures for improvement, and reports the audit results to the President & Representative Director, directors incharge of relevant departments, and corporate auditors. In and audits management 28 out carried office the 2011, fiscal operation audits. It also conducted maintenance and operational evaluations of internal controls over financialreporting for all business divisions and major subsidiaries. 32). The Ecology Center in the Manufacturing Management Divisionsupervises environmental activities, conducts internal audits at operational sites, and monitors (➞ improvements the progress of TOPPAN CSR REPORT 2012 TOPPAN CSR Promotion Structure CSR Promotion

Organizational Governance 18 Organizational Governance 19 - TOPPAN CSR REPORT 2012 TOPPAN Large-scale earthquake simulation drill As a basic precondition for business continuity, Toppan - manage continuity business its accelerate will Group The Business Continuity Management Business Continuity As a preparation for a possible operational shutdown in the aftermath has of been a for large-scale earthquake, Toppan enable to designed (BCPs) plans continuity business mulating of business operations the as resumption rapidly as possible in a post-disaster environment. The Group applied BCPs at its main operational sites in the metropolitanTokyo district in fiscal 2010. From fiscal Toppan2011, has been laying down BCPs the throughout whole including Group, the head office learned lessons on Based companies. Group and departments has Group the EarthquakeJapan Eastdisaster, Great the from also begun surveying the suppliers’ levels current of disaster step for building a stable sup- as a preliminary preparedness ply chain. givesoverriding priority safetyto andtheassurance humanof life as a matter of course. In fiscalToppan 2011, thoroughly against countermeasures for plan basic Group-wide the revised condu- to establish a structure earthquake disasters in order cive to prompt response from the first minutes of a disaster of operations. to the early resumption from BCPs the to form concrete give to activities (BCM) ment activi- BCM the improve consistently will Toppan 2012. fiscal ties by sequentially executing preliminary countermeasures, arranging education and training programs for employees, self-evaluating its actual practices, and implementing various secure to seeks Toppan efforts, these Through measures. other coexist- while continuity business for competence Group-wide ing with communities as a social benefactor. In-house BCM seminar by outside professionals - The foremost aims of the countermeas- The foremost The Rules on Risk Management have been established to exam- and year a once managed be to risks reviews Toppan gency situations quickly and properly. ures ures against disasters at the Group are to ensure the safety of all employees Toppan and their families and to provide aid for af- confirma- safety A general. in people fected commu- multiple of composed system tion mobile and email as such channels nication phone has been in place since 2011 as a con- immediately to employees allow to tool wide-scale a of event the in safety their firm disaster such as an earthquake. All operational sites reserve stockpiles of food and no have who commuters for requisites other Group The homes. their to return to means has also been preparing minimize damages procedures to business operations, to company preserve assets, and as- provide disaster-affected and customers to sistance com- with cooperation in areas and people a as community the in residents and panies socially responsible corporation. In parallel measures, disaster-preparedness these with steps are also being taken to raise - aware ness of among disaster-mitigation individual employees. Through the procedures regular repetition of evacuation drills for all employees and other various drills in employee every fire- disaster-preparedness, and will have the know-how to deal with emer Toppan Toppan has carried out disaster-preparedness measures - through comprehensive out its operational sites under a basic plan against disasters. for countermeasures Countermeasures against Disasters Countermeasures Toppan manages risk comprehensively to avoid risk and mini- and risk avoid to comprehensively risk manages Toppan when events at risk occur. mize the losses incurred minimizationthe andavoidance risk regarding mattersaddress these with accordance In occurs. risk at event an when loss of rules, the Company has set up a risk management structure allot- are management risk for responsibilities the which under tedto specific divisions in the head office based on the types of risk involved. Under this structure, the directors in charge of each relevant division are responsible for taking measures each type of risk. avoid, and correct to prevent, ines countermeasures to be taken in line with the rules. The Meet- Liaison Management Risk regular a holds also Company head the in management risk of charge in persons the for ing office divisions in order to share information on a continuous to risk practically. basis and respond Risk Management Structure Risk Management

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Inside the Company, Toppan concludes a collective labor agreement, works for equal opportunity and equal opportunity and works for labor agreement, concludes a collective Toppan Company, Inside the Based on the concept of respect for people, Toppan is committed to respecting basic human rights inside rights inside basic human to respecting is committed Toppan for people, concept of respect Based on the this purpose. and systems for environment an has prepared the Company and and outside activities. relevant and undertakes other of discrimination, the elimination principl r empl

s business uma R Procur n righ h the ppan s fo oppan this omotin T To Guidelines quire e CS Pr Establishing huma re norm th

- through people for respect of concept the disseminate To employ both which through hotlines dual up set has Toppan No instances of child, forced, or compulsory labor have

Points Respecting Basic Human Rights Respecting Basic Human Toppan Toppan operates business under the foundational of conceptrespect for people. To ensure this principal, the ConductGuidelines call for respecting basic human rights (respecting personal qualities and individuality; prohibiting discrimination and labor; forced and labor child prohibiting harassment; and [➞ laws with complying education on basic human rights and harassment other and in harassment prevent to rank- employees for training based occurring. actions from inappropriate out the entire supply chain, Guide- Toppan Procurement setsCSR the in forthrights human basic an respecting article on business and companies Group requires and Group the of lines partners to comply with this article. inappropriate report promptly can partners business and ees actions. in the Company. ever occurred TOPPAN CSR REPORT 2012 TOPPAN Initiatives for Respecting Basic Human Rights Respecting Basic Human Rights and Respecting Basic Operating Hotlines Human Rights Human

Human Rights 20 Human Rights 21 -

0 — 11 60 24 26 226 105 (27.0%)

5 3 13 51 23 83 22 195 (29.7%) TOPPAN CSR REPORT 2012 TOPPAN

0 9 18 57 20 56 21 163 (30.7%) Fiscal 2010 Fiscal 2011 Fiscal 2012 Male Male Male Female Female Female

Employment of Persons with Disabilities Employment of Persons Recruitment for an Open Environment Providing Sales, Toppan promotes the hiring of persons with disabilities mainly mainly disabilities with persons of hiring the promotes Toppan Metropolitan GovernmentTokyo via PrepressToppan (T.M.G.) disa- with persons employs that subsidiary special a Ltd., Co., accounted disabilities with persons 2012, 1, June of As bilities. at Toppan. workforce for 1.91% of the total Toppan offers various employment opportunities for persons of both genders and persons of many nationalities, and levels of physical Recruitment ages, ability. takes mainly three forms: regular hiring of new graduates from universities and year personnel experienced of hiring mid-career schools; high round; and hiring of persons with - screen disabilities conducts Toppan universities, year from graduates round.new hire To Company The Japan. across areas geographical seven in ings also sets by-job-type screenings in Japan and recruits global personnel. All candidates screened are given the chance to choose in accordance with their own aspirations and voca- tional aptitudes. Before the screenings, Toppan determines the talent requirements based on the results of consciousness surveys employee and a review of the behavioral char acteristics of outstanding achievers in the Company. During the screening, Toppan tries to estimate if the recruits have suitablecompetencies andpotential. TheCompany alsoruns work. about awareness student boost to programs internship A cumulative total of about 2,000 workshops, students practical participated training in sessions, andcourses in fiscal 2011. online training Technical administration, etc. Mid-career recruitment of experienced personnel Regular of recruitment new university graduates and post-graduates Total number of regular recruits recruits number of regular Total female) (percent New graduates from high schools and National Colleges of Technology

Number of Recruits r) ea l) (y Apri 3 6 12 s of 43 17 13 (a 20 ff ff 1 4 11 sta 37 y sta 12 16 20 isor 183 199 196 rv 2010 2011 2012 1.89% 1.97% 1.91% 9 5 10 34 11 14 20 managerial supe male male 0 0 09 Fe Fe 30 11 14 Q Q 20 0 0 0 0 50 15 10 20 Self-determination on the Career Path / Path / Self-determination on the Career Positive Action Second Careers Employees Percentage of total workforce* The percentage is calculated based on June of (as employees the regular of number total 1) as a denominator. The total number presented in was the Disabled Persons Employ- ment Report in accordance with Article 8 theof Law for Employment Promotion, etc.the Disabled of Japan. of * Female Managerial and Supervisory Staff Toppan Toppan has promoted positive action aiming at the creation of new services and businesses. better To respond to - cus tomerand social needs, the Company needs to develop new products and services from feminine perspectives.employs 176 female Toppan managerial and supervisory staff (as of April 2012). Working for Equal Opportunity and for Equal Opportunity Working Eliminating Discrimination has established Toppan the Challenging Job System, a - pro gram to encourage employees to consider experiences, theirofficial qualifications, and the departmentsown and work transferred.Employeesbe to likewould they which divisionsto think carefully about their own medium-to-long-term career development and the skill-enhancement plans problem-solving, necessarya cultivates system The track. to on them move can-do mindset that kicks in when employees reach the new positions to which they aspire. For employees retired in their second careers in company life, knowledge, the and the aspirations career their systemto matched options offers working experience, and skills they have acquired through long years service.of Seventyemployees 80of whoretiredfiscalin 2011 with the Company. and now remain reemployed were Employment of Persons with Disabilities 58 47 68 8.2 144 42.4% 114 (2)

Staff Temporary Temporary

Fiscal 2011 Fiscal 2011 541 647 730 72 7.8

94 (1) 40.7% Workers Part-time Fiscal 2010 Fiscal 2010 8,769 8,633 8,508 45 7.7 72 (0) Sum Total Sum Total Employees 40.8%

Fiscal 2009 Fiscal 2009 40.0 31.5 40.7 32.2 41.3 32.8 Age 3 Average 2 8.5 8.7 9.2 14.4 14.4 14.9 Tenure Business councils are convened as Company-wide and Average The number of male employees who took childcare leave is shown in parentheses. Average paid paid Average leave used (days) Employees taking maternity leave Employees taking leave* childcare Average ratio* Average *2 Average ratio = average paid leave used / average paid leave granted ratio = average paid leave used / average paid *2 Average *3 Annual Paid Leave Used Maternity Leave or Childcare Employees Taking Labor-Management Partnership Labor-Management man- and union labor Toppan’s ideals, shared with partners As agementhavetrusteachother in andrespect foreach other’s positions.Thetwoparties workvariouson issues together on an equal footing and hold events of various sorts, activities for recreational employees. includingIn the summer of 2010, forexample, they cosponsored Sportsthe Toppan Festival at by attended event an Prefecture, Saitama in Dome Seibu the 4,400 participants, compa- including Group employees from niesmetropolitan inthe Tokyo areaand their families. Ateach operational site every labor year, and management organize sports meets of various kinds and invite employees’ families activities. to recreational operational site forums to discuss indi- deliberate wide-rangingto committees special of types Several managerialissues. vidual issues are also convened. Standing committees meet to discuss issues such as working hour reductions, wages, committeesindividualLikewise,health. and safety and welfare, subjects, designated specially discuss to necessary when meet such as the creation of a working environment shop union a adopted amenablehas Toppan to satisfaction. job enhanced system. In principle, all non-managerial employees belong to the labor union as members. 7,672 1,097 7,512 1,121 7,363 1,145 Total Total - - Employees 3.4% 0 ( 0) 80 ( 1) 84 ( 1) 131 (48) 295 (50) 104 114 121 1,853 1,800 1,749 Fiscal 2011 Fiscal 2011 6,397,624 yen Supervisors 3.0% 30 33 39 0 ( 0) 89 ( 0) 60 ( 2) 116 (38) 265 (40) 1,670 1,686 1,687 Class Fiscal 2010 Fiscal 2010 6,680,897 yen Management 1 0 0 27 26 26 3.1% 0 ( 0) 50 ( 4) 110 (40) 278 (44) 118 ( 0) Directors 1 Fiscal 2009 Fiscal 2009 6,442,189 yen Toppan establishesToppan labor-management relationships in which labor and management stand on reinforce to head office Department at the Promotion Safety a Health, Safety & Fire has established Toppan Toppan recognizes how deeply it depends on employees and encourages them to work vigorously and and work vigorously encourages them to on employees and how deeply it depends recognizes Toppan motivation. earnestly with strong other. each and trust and respect equal footing safety management. Male Male Male

Female Female Female

Toppan strives Toppan to improve the abilities and draw out the The number of female employees who leftparentheses. the company is shown in

Points Fiscal 2009 Fiscal 2010 Fiscal 2011 Total Personal reasons Other Requested by the company Retirement Total Turnover rate Turnover TOPPAN CSR REPORT 2012 TOPPAN *1 vated, vigorous, and earnest work of workforce. the Toppan moti the of importance the understands keenly Company The vigorously work to drive the challenges, new on take to vation with a healthy body and mind, and earnest commitmentfollow through on tasks to completion. When employees are to con- is Toppan motivation, strong have and earnest, vigorous, the full. vinced that they show their true abilities to of stages the through employee every of powers organizational Toppan so,hiring,appointment,do training,treatment.and To trust, mutual of spirit a in communication on priority high places envision, employees which in directions the in progress career clearly definedrewards and penalties, and the establishment of an open its reinforced and func- fair environment. Toppan the throughout development resource human control to tions Group in fiscalToppan 2011. will develop the Group further by fostering more talented individuals who canbusinesses and markets. create new Toppan Toppan values its employees as precious company(“human assets”) assets and recognizes how deeply moti itthe supports depends Company the perspective, on this From them. Basic Concept of Human Assets Basic Concept Labor Practices Labor Average Annual Salary Average Reasons for Leaving* Number of Employees (as of March 31) Number of Employees (as of March

Labor Practices 22 Labor Practices 23 Baby and TOPPAN CSR REPORT 2012 TOPPAN Efforts to Foster the Next Generation to Efforts Toppan hasToppan striven to create a working environment in which employees can achieve better work-life balance. It doesby providing so systems for childcare and nursing care leave, working hours, and for a for higher reduced family allowance for dependents. A rehiring system for employees who resign from the Company to deliver and bring up children has been in place since fiscal 2006. As of April 2012, twentyresigning rehiring. for future employees have registered childcare the for improvements institutional made has Toppan Company the example, for parents, For well. as system, leave March first the to up leave childcare of period the extended has child reaches the 31 age after of the 12 employee’s months, apoint in time beyond the requirements of the applicable law Japan, in face parents difficulties eases change This Japan. in where entry to daycare services is often impossible midway reduced for period eligibility the Meanwhile, year. the through workinghours for employees with childcare responsibilities elemen- of is year third child’s the of end the to up continue to set tary school (again surpassing legal requirements devote in to time Japan), has spouse employee’s the where cases in even to childcare. A staggered working-hour system for expectant mothers and childrearing parents has also been introduced. Toppan will continue enriching measures to foster work-life balance for employees. generation and improve the next Employees can accumulate up to 50 days of annual paid leave (exercisable within two years from the date the days are granted). granted). are days the date the from years two within (exercisable leave paid annual of days 50 to up accumulate can Employees Employees are eligible to use their stock leave for therapeutic treatments for themselves or their dependents, healthcare or work in the aftermath of unexpected disasters. for their families, or recovery nursing care reaches child their after 31 March first the until up consecutively leave childcare fulltime for eligible are fathers and mothers Both leave on Employees basis). cumulative a on far, so leave childcare taken have employees male (thirteen months 12 of age the 30,000 of subsidies and months) 18 of age the reaches child their (until Company the from salaries regular their of 10% receive TheyGroup Fraternal canyen alsoa Benefit workmonth Society. forfrom the shorterToppan hours (maximumreduction of two hours per day) or select a flextimechildcare-related or provides irregular and working costs schedule fromchildcare the certain date subsidizes of Company their The return school. to elementary the of job year until third their the child completes a consultation office. information through Rehiring is guaranteed for an employee who resigns to deliver conditions and raise these a child, meets provided that the employee who has worked employee for resigned A resignation. of date the to up years consecutive three than more for Toppan until May 1 of the year when the child enters elementary school. eligible for rehiring will remain working a in reduction maximum and leave consecutive maximum The care. nursing for leave take to entitled are Employees day are one year and two hours, respectively, for every subsidizes Company The leave. care nursing the during assistance as month per subsidy 30,000-yen a pays Society Benefit family member requiring nursing care. The Toppan Group Fraternal information. nursing care-related costs and provides certain nursing care Employees can take of up the regardless to number 10 of they days children raising. are of These leave days a can year, be taken in half-day allotments when necessary. Employees year. one of maximum a for activities beneficial socially in engage to leave volunteer take can employees principle, In an allowance. on volunteer leave receive An employee can adjust daily working hours upward or year of elementary school). (until his or her child completes the third and by up to two hours for childcare downwardpregnancy by up to one hour to avoid rush-hour commutes during The Company pays every employee with is applied.) (No limit for the number of children children 18th birthday. discontinued on the first April 1 to arrive after the child’s a monthly allowance of 20,000 yen for each child. This Group Fraternal The BenefitToppan Society allowance subsidizes 50% of babysitter expenses (up is to a 5,000-yen limit per day) for up to 90 days a year. The Toppan Group Health Insurance Union offers childbearing a and childrearing. supplementary It also allowance provides one-year in free subscriptions to addition the monthly to childrearing magazine about the health of the body and mind. for employees with questions Mommy and runs a consultation office a lump-sum allowance for

Senior management, managers, and employees jointly At the ongoing business councils and labor-management As a result of these initiatives, the number of employees Efforts to Shorten Working Hours Shorten Working to Efforts Stock Leave Childcare Leave Childcare Rehiring of Employees who Leave the Company to Raise Children Leave Nursing Care Leave for Child Healthcare Leave Volunteer Work-hours Staggered Dependent Family Allowance Partial Subsidization of Babysitter Expenses Other Systems Main Leave Systems / Measures to Support Work-Life Balance and Foster the Next Generation Balance to Support Work-Life Main Leave Systems / Measures Excessive overtime is a longstanding issue for Toppan. Every Every Toppan. for issue longstanding a is overtime Excessive operationalsite has examined and implemented measures to control the numbers of hours worked. fac- other For and industry the printing the of time characteristics however, being, tors still prevent the Company Company-wide a launched fromToppan 2008, October In achievingsolutions. fundamental achiev- of means a as work overtime extended eradicate to effort employee health. ing better work-life balance and maintaining undertake initiatives to improve operating management effectiveness ways the and by work individuals ways the reviewing - opera adjusting by hours overtime equalize to administrates; tions within the departments; and to introduce new working working schedules. systems such as flextime and irregular opinionsexchange labor andmanagement committees,senior work- overtime shorten further to measures on deliberate and complyhoursingtorevisedandwiththe Labor Standards Act and practices overtime actual the analyze also They Japan. of working systems. the use of the newly introduced review who worked long hours was reduced by 95% in fiscal 2011 compared with fiscal 2007, the yearwere introduced. The average before hours of overtime the worked also measures by almost 20%. decreased Supporting Work-Life Balance Supporting Work-Life -

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In parallel, Toppan has opened the opened has Toppan parallel, In Number of occupational accidents requiring requiring accidents occupational of Number employee leave, per million working hours (reflects the frequencyaccidents) of occupationalNumberworkdaysofconsequence alost as of occupational accidents, workingper thousand hours (reflectsoccupational accidents) the severity of

Severity rate* Frequency rate* Frequency Deaths from Deaths from occupational accidents ing facility, in Kawaguchi, Saitama Prefecture. This facility serves serves facility This Prefecture. Saitama Kawaguchi, in facility, ing disaster- and fire- with equipped resource education safety a as preparedness goods and specialized hardware developed to simulate accidents involving fire, explosions, and the jamming of body parts in machines. These goods and simulators have been presented year around and steadily enriched since their Toppan demon- establishment in August 2010. In fiscal 2011, strated a new danger simulator specially designed for regional sites throughout Japan to enhance the safety awareness of individual employees of the Group. Moving forward, Toppan *2 *1 TOPPAN CSR REPORT 2012 TOPPAN Danger simulator at Anzen Dojo Labor and management at have Toppan integrally propelled Safety The health. and safety occupational enhance to activities andHealth Committee eachofoperational siteplayscentral a role in these activities with the goal of completely eliminatingon Policy Basic the formulated Toppan accidents. occupational the of October in later, Months 2010. June in Safety and Health safety that affirmed strictly management and labor year, same the clarified and operations business in priority top take should actions to be carried out by all operational sites towards the the established also Toppan accidents. of elimination complete Health, Safety & Fire Safety Promotion Department, a body at the head office dedicated to supporting safety have and efforts These health sites. operational all at activities promotion the number of occupational accidents. gradually reduced Occupational Safety and Health / Occupational Safety Enhancement / and Health Healthcare and Disaster-preparedness Fire- Occupational Safety and Health

Labor Practices 24 Labor Practices 25 -

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onmen in -learnin training AN Rank n (e oppan envir s training T eation d t of . globalization the TOPP CSR us rs with skill manager e an on on on on oﬁt cr tr e Educatio training training pr wid manager y- ation ledg on Company g the m together ow 21 custome the education education education education division department manager supervisor Kn infor c Compan Earnin business VISION Basic Basic Education New New New New Basic Basic Basi outside The Toppan Business School, meanwhile, offers self-develop- offers meanwhile, School, Business Toppan The To To offer customers and society enhanced values rooted I I I I I I I I I *Operated Various Education Systems Various Concept of Human Asset Development and Fosterage Concept of Human Systematic Human Asset Development Programs Theheadoffice organizes various education programs. Along with rank-based and department-based training, the lead- office foster to out planned courses training selective enriches ers of tomorrow. ment training for employees via optional courses (lectures) and in its pool of ingenious arranges human net- assets, Toppan cross-industry and employees female its for programs working up opening for means as employees its of all for events social communication. channels for new networks and facilitating Developing and Fostering Human Assets Developing and - fos Toppan employees, on depends it deeply how of Mindful ters ambitious, noble, and virtuous human wouldcontributelikecorporationto awhole society astoa as assets. Toppan blessed with excellent humanemploy- helping by this assets. achieving to closer Company the Rank-basedbrings training ees understand and appreciate the roles and responsibilities of each rank. The Company also provides a wide variety of training programs to encourage employees to systematically by each workplace. gain the “abilities and skills” required has concluded advisory agreements with mental healthcare advice and instruction of source ready a secure to specialists viewpoints. professional from - e r s ﬁc s of isor isor rv ment rv s rt l Manage s Division ee head n Leader supe oy s Division fair depa n Supe the t Guidelines t Guidelines or l Af mpl fair of Genera E ga each omotio l Af omotio Le Pr om Conduc Conduc of fr Pr Senior Managers Divisions , Lega tment e Depar n s s omotio s or with revised descrip- revised with Casebook Guidelines Conduct Pr Complianc ect l leader r n Leader tment t Guidelines e Di GM Dissemination Activities by Conduct Guidelines Leaders Promotion Guidelines the Conduct to Promote Tools depar manufacturing ucationa GM omotio The Leaders formulate action plans tailored to the details of business operations and situations, staff compositions, and other individual factors at the workplaces where the Leaders serve. They organize read-throughs of the Conduct Guide- enhance to cases concrete using discussion facilitate and lines among their colleagues. compliance awareness Toppan posts regular Conduct Guideline Notificationstopicsrelative totheguidelines. withThe notifications published in fiscal 2011 offered advice on thorough information security, proper of assurance the conduct, improper of elimination the subcontract transactions, and other edi- working updated completely a Japan tasks.in employee every Toppan issued also the of tion tions of the actual situations that can arise in daily work. The Leaders make good use of the casebook and notifications to disseminate the guidelines at their workplaces. Toppan Group Helpline Group Toppan con- improper or violation legal a discovers employee an When he Group, or she duct in is somewhere the to it Toppan report employ- the When principle. in deliberation, for superior his/her to encour is employee the problem, the settle to fails superior ee’s in t Guidelines ment Pr Ed Conduc rt s ment rt isor Depa - Conduc rv gy of te s Depa t & Representativ ra ny s fair s St n Supe e isor l Af charge s ment esiden rv s rt ativ in Pr Compa ee or usiness omotio heads Genera n Leader supe oy tment the : B depa t Guidelines Pr ect n: or r in mpl Di E depar administr each omotio Division in Pr om Conduc fr educatio Managers Divisions of t Guidelines management ge of ge char Conduc in g char s in rson s c. tion Pe rson , et Pe d plannin n Leader omo tment Toppan organized education on compliance with the Antitrust Laws and Subcontract Law of Japan. Antitrust Laws and Subcontract compliance with the education on organized Toppan CSR procurement. surveys to promote partner dialogues and with business continued Toppan Conduct Guidelines Casebook. Conduct Guidelines edition of the a fully revised issued Toppan t Guidelines

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Points Conduct Guidelines Promotion Leader System Conduct Guidelines Promotion Toppan Toppan operates a Conduct Guidelines Promotion Leader system. In this system, every Group operational site assigns ConductGuidelinesa Promotion Supervisor “Supervisor”)(the and Leaders (the “Leaders”) for disseminating the Guidelines Conductand ensuring full guideline compliance. Supervi- sors and Leaders implement ongoing activities directly con- nected with their daily business operations. Seven hundred and nine Leaders were deployed across the Group in 2011, fiscalincluding 57 females (8% of the Leaders). A cumulative total of 4,503 employees have worked as Leaders since the system was launched in 2004. Toppan will continue with measures to deploy many more Leaders and to resolutely female Leaders. foster and assign more TOPPAN CSR REPORT 2012 TOPPAN Structure to Promote the Conduct Guidelines to Promote Structure ance of total Group-wide compliance. ance of total Group-wide In June of the year 2000, the centennial of Toppan Co., PrintingLtd., Toppan established the Conduct Guidelines, a set Phi- Corporate the on based behavior of standards normal of regulations. and laws with compliance of spirit the and losophy In November 2010, Toppan completely revised the Conduct com- Group all that principles common of set a as Guidelines assur the for observe to required are world the around panies Disseminating the Conduct Guidelines Disseminating Fair Operating Practices Fair Operating

Fair Operating Practices 26 Fair Operating Practices 27 - TOPPAN CSR REPORT 2012 TOPPAN Company carried out an e-learning-based program for As one measure, Toppan regularly holds regularly training sessions for busi- As one Toppan measure, In these sessions, devises Toppan ways to enhance the To attainTo full compliance with laws governing transactions Approach to Intellectual Property Approach pany devotes strict attention to measures to prevent the infringement ofcopyrights, trademarks, andother intellectual property rights ofthird parties while obtaining patents for its own technologies and businessmodels. ness partners of the planning departments, in addition to sessions for basic knowledge of employees. Participants in these sessions acquire laws on intellectual property rights by reviewing actual cases involving in design work and the like. troubles Protection and management of intellectual property is a for crucial Toppan, a issuecompany engaged in planning and development diversein businessthe fields of Information & Networks, Living Environment, Com The Products. Next-generation and Service, Personal Electronics, Briefing on Compliance Education on Compliance with Transaction-related Laws effectiveness of training through activities such discussions using as case methods group describing actual incidents and accidents. Toppan was not involved in any serious accidents or violations of violations or accidents serious any in involved not was Toppan in the course of business in fiscal 2011. laws or regulations Conduct Guidelines Casebook (in Japanese) Toppan Toppan has organized regular education with the Antitrust Laws on and the Subcontract Law of compliance Japan, fundamental laws for proper transactions. In the fiscal 2011, employees in every domestic sales department focused compliance with on the provisions of the Antitrust Laws related to the prohibition of collusion and cartels. As many as 2,802 employees took the course. compliance on sessions 29 held Toppan subcontractors, with with the Subcontract Law for 1,287 employees in the - pro duction control departments of domestic Group companies checkedhow separate Octobereffort,aToppan from2011.In subcontract transactions were being handled in 36 sections Japan. across

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name) eporting r eal & Repr Instructions s r nal oppan Senior T and or Department documents Inter esident Pr investigation employee Superior employee’ consultation sealed Reporting oup the or Gr with Communicator (emails The helpline was used in seven cases in fiscal 2011. The Every Training for Conduct Guidelines Promotion Leaders Guidelines Promotion for Conduct Training Toppan Group Helpline Group Toppan As in the previous years, held Toppan the group training for Conduct Guidelines Promotion Leaders in fiscal 2011.The training was scheduled in two phases. In the first, 542 Lead- ers were trained in 36 sessions across JapanSeptember 2011. fromInthe second, 508 LeadersMay were trained toin 2012. November 2011 to March 32 sessions from Compliance Education The Toppan Group revised Conduct Guidelines for Asia based Easternon the Conduct Group-wide Guidelines and held briefing sessions revisionson in region this inThe Group will provide ongoing compliance 2011. fiscal education in the region and steadily implement guidelines in other overseas. and regions countries Implementing the Conduct Guidelines in Implementing the Conduct Guidelines Companies Overseas Group incidents reported involved power and sexual harassment and and harassment sexual and power involved reported incidents inves- strictly were cases seven All actions. inappropriate other countermeasures necessary and handled, properly and tigated recurrence. to prevent taken were aged to call the Toppan Group Helpline, the Group’s internal Group all by use for open kept is helpline The system. reporting workers. and part-time temporary staff employees, including - The company strives to make timely and appropriate disclosure of information relating to matters such as the details of business ac- safety. and product tivities, quality, The company strives to use raw materials and components with a low impact on the environment. The company strives to devise with processes a low impact on the for manufacturing and processing. environment The company carries out Toppan. substances specified by appropriate management of chemical waste. disposal of industrial The company carries out appropriate The company strives to prevent work-related accidents and create a safe and clean workplace, and also works to ensure the safety of employees in an emergency. The company meets the standards for quality required by Toppan quality. and strives to improve The company or products provides services at a price that is - com petitive in the market. The company meets stipulated delivery dates and supplies items safely and reliably. In fiscal 2011, Toppan reassessed 68 suppliers on the activi- the on suppliers 68 reassessed Toppan 2011, fiscal In The Group also held briefing sessions for 283 business In fiscal 2011 the Group asked 13 business partners to Promoting Compliance in Procurement Departments Compliance in Procurement Promoting (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) The company engages in contributions to society. ties they reported in the questionnaires and visited some of them face to face. these suppliers to interview partners involved in The production. briefings designed were encourage and partners business of awareness the renew to them to fully implement measures on important CSR-related issues such as waste control, occupational safety, and the information. management of personal and confidential The Toppan Group has established the Supplier Hotline, a por a Hotline, Supplier the established has Group Toppan The tal for receiving reports from business partners, on its website. website. its on partners, business from reports receiving for tal The Group regularly conducts Business Partner Monitoring, a questionnaire-type system for surveying business partner satisfaction with Toppan. fill out theToppan questionnaires. analyzed theresults and devised for countermeasures issues that came to light in the surveys. We give full consideration to impacts on the environment. give We the of needs the meet to order in Delivery) Cost, (Quality, QCD pursue We market. supply chain. the entire implement CSR initiatives throughout We and safety 4. The environment quality 5. Improving pricing 6. Appropriate 7. Stable supply 8. Social contributions I I I The company carries out appropriate management of informationconfidential and personal information obtained through its dealings. The company does not infringe intellectual propertypatents, copyrights, and trademarks. rights such as The company does not allow child labor or forced labor. The company does not allow child labor or forced The company complies with legislation related to exports and with the the with and exports to related legislation with complies company The in which it operates. laws of the countries and regions The company complies with laws protecting those who disclose in- who those of rights the protects it and interest, public the in formation internally. report The company complies with laws, regulations, and government notices government and regulations, laws, with complies company The applicable to business activities,environment- and legislation, labor-related such laws, subcontracting laws, as company laws, antitrust legislation. related The company does not have dealings with any antisocial individual or or individual antisocial any with dealings have not does company The group. The company does not carry out inappropriate profit sharing orre- ceipts. The company does not carry out unjustdiscriminationcarryoutcompanynotThedoes treatment the in and employment of employees.

(10) (9) (8) (7) (6) (5) (4) (3) (1) The company respects basic human rights. (1) The company respects (2) We impartially offer opportunities to all suppliers. offer impartially We We comply with all domestic and overseas legislationbusiness dealings based on corporate ethics. and perform fair activities. our procurement the information obtained through strictly control We Toppan compiles the information filled out in the memoran- the in out filled information the compiles Toppan

3. Management and disclosure of information 3. Management and disclosure

2. Public order, compliance with laws, fair business activities 2. Public order, CSR Procurement Standards CSR Procurement 1. Basic human rights

Basic Procurement Policy Basic Procurement I I I Complying with the CSR Procurement Standards Complying with the CSR Procurement The Toppan Group launched its CSR procurement initiative in fiscal 2007. Since then, every of businessmemorandum a submitted has initiative the partnerwith cooperate willing to activi- CSR its of status current the reported and cooperation ties in a questionnaire. dums and questionnaires into a Business Partner Database. This database serves as a valuable information resource for a establish to work they as partners business its and Toppan supply chain trusted by society. TOPPAN CSR REPORT 2012 TOPPAN Toppan Group CSR Procurement Guidelines (revised from the Procurement Guidelines in May 2007) the Procurement from Guidelines (revised Procurement CSR Group Toppan The Toppan GroupThe Toppan implements CSR initiatives in cooperation entire the throughout partners business with collaboration and supply chain. the principles of set a are Guidelines Procurement CSR The con- guidelines These endeavor. this drive to observes Group sisttheofBasic Procurement conceptuala Policy, framework - procure in involved employee every by observed closely be to mentoperations, andthe CSR Procurement Standards, seta be satisfied by every business partner. to of requirements Promoting CSR Procurement Promoting

Fair Operating Practices 28 Fair Operating Practices 29 TOPPAN CSR REPORT 2012 TOPPAN Established in June 2000 Revised in November 2010 Bringing together individual strengths to fully exploit Bringing together individual strengths of the group the integrated strength Striving to improve quality and providing creations satisfaction that contribute to customer Recognizing the importance of information related to business and managing it appropriately Proactively undertaking conservation of the global environment contribution social through society from trust Building of information disclosure activities and appropriate Established: April 1, 2001 Latest revision: August 1, 2011 Established: April 1, 2001 Latest revision: We are deeply aware of the risks to the informationtherisksthetodeeply of aware are assetshandle, we Wesuch as illegal access, loss, damage, falsification/manipulation, and leakage of information, and take necessary and reasonable safety measures against rectifyproblemsdealwithandanytheserisks.thatoccurpromptly We and manner. in an appropriate We establish, operate, maintain, and continuouslysecurity management systems. improve information Making our best efforts for the customertrust and building a relationship of Proactivelyparticipatingactivities company’s thecontributeinto society to and local communities Disclosing information appropriately and enhancing the transparency of business activities 4. 5. Basic Principle 4: Avoiding all links with antisocial groups all links Basic Principle 4: Avoiding antisocial groups of any dealings with 1. Prohibition activities of involvement in antisocial 2. Prohibition of unjust benefits of provision 3. Prohibition Basic Principle 5: 1. quality in every process 2. Striving to improve and services 3. Fully ensuring the safety and security of products others rights of of the infringement of the intellectual property 4. Prohibition Basic Principle 6: customers information regarding 1. Protecting confidential information the company’s 2. Protecting handling of personal information 3. Appropriate management of information and records 4. Striving for the appropriate Basic Principle 7: of business activities burden the environmental 1. Striving to reduce businesses with consideration for the environment 2. Promoting on new challenges Basic Principle 8: Embracing change and taking that embrace change to customers 1. Making proposals needs of customers 2. Advancing technical development that meets the the status quo and striving to improve of problems 3. Having an awareness knowledge, skills and techniques 4. Striving to enhance one’s 5. Securing and using intellectual property Basic Principle 9: 1. of skills and culture 2. Contributing to the development and passing on 3. Basic Principle 10: a lively and vibrant workplace 1. Striving to create a safe and clean workplace 2. Striving to create it Brand and striving to cultivate pride in the Toppan 3. Taking strength companies working together to maximize integrated 4. Group -

Having high ethical standards and acting as acting as and Having high ethical standards member of society a responsible Complying with laws and company rules and conducting fair business operations Prohibition of prejudicial treatment of persons that have reported problems problems reported have that persons of treatment prejudicial of Prohibition procedure via the appropriate We manage information necessary for our business appropriately in observ in appropriately business our for necessary information manage We ance of our in-house rules, the law, and the principles of social order. ance of our in-house rules, the law, We collect information methods. for appropriate We safely manage purposesthe information entrusted to us by customers in order using appropriate customers’ trust. our to reciprocate Recognizing the diverse values ofqualities and individuality individuals and respecting personal - Respecting rela business partners’ standpoints and building appropriate tionships with customers 1. 2. 3. Toppan Group Basic Policy on Information Security Basic Policy on Information Group Toppan Group- out carries Group Toppan the at us of each industry, communication information the in operating companies of group a As wide information security management in the recognition that the management of information necessary for business significant managerial challenge foris us as aa means toreciprocate our customers’ trust and promote the ongoing growth of the Group. Toppan 19. Fulfilling duties with integrity and appropriately 20. Reporting promptly 2. Prohibition of discrimination of any kind of discrimination of 2. Prohibition harassment of sexual and power 3. Prohibition Basic Principle 2: entertainment practices of bribery and inappropriate 6. Prohibition of illegal political contributions or donations 7. Prohibition of insider trading 8. Prohibition of illicit import and export transactions 9. Prohibition labor of child labor and forced 10. Prohibition 11. Compliance with international rules and local laws in overseas business Compliance with company rules in the workplace 12. Maintaining discipline and order permission of other work without the company’s 13. Prohibition 14. with the company of conduct that causes a conflict of interests Prohibition for personal gain or rebate or provision of receipt 15. Prohibition 16. management of assets entrusted to the company by customers Appropriate management and use of company assets 17. Appropriate 18. Chapter 2 defines the specific conduct practices that we should undertake based on the Basic Principles provided in Chapter 1. based on the Basic Principles conduct practices that we should undertake Chapter 2 defines the specific basic human rights Basic Principle 1: Respecting 1. In the conduct of business Group 1. Acting with pride as a member of the Toppan of illegal conduct and rule violations of tacit approval 2. Prohibition and customs cultures 3. Respect for foreign In our private lives to other people of conduct that causes distress 4. Prohibition of drink-driving 5. Prohibition of the possession and use of illegal drugs 6. Prohibition of gambling 7. Prohibition Basic Principle 3: Legal compliance of collusion and cartels 1. Prohibition 2. conduct in dealings with business partner companies of improper Prohibition conduct against competitors of improper 3. Prohibition of false transactions 4. Prohibition 5. Conduct Guidelines 14). of the Conduct Guidelines (described on page after Chapter 1 presented the specific conduct guidelines are Here Conduct Guidelines Chapter 2: Specific Conduct Guidelines and Information Management Policy Management and Information Guidelines Conduct

Operational site audit session for internal auditors Training

Certified Approval System for Manufacturing in in Products Management of Chemical Substances Food Packaging Toppan Toppan intensively promotes product safety management in all manufacturing processes, from material procurementproductshipment,controlling by variouschemical substances to whoseuseprohibitedis restricted.or While adhering greento procurement standards prescribed by client companies, the Stand- Procurement Green of set a established has Company every by manufactured products of features the to attuned ards division in the business fields of Electronics, Living- Environ chemicalmanages Networks.Toppan Information& and ment, the whole supply chain. throughout substances in products Food packaging requires exacting quality assurance for safety safety for assurance quality exacting requires packaging Food sys- approval certified a adopted has Toppan sanitation. and partner and Toppan of sites operational the that ensure to tem companies can manufacture containers and packages only after receiving the required ratings in for Guidelines theAssurance Quality the audits.on based conducted are The audits Food Packaging using a Company the outside and checklist.inside sites operational 25 at audits Toppan carried out 32 in fiscal 2011. Management of equipment and inspection devices Management of safety and sanitation Steps to prevent the admixture of products different Steps to prevent the admixture of substances foreign Steps to prevent the outflow of defective products contamination Steps to prevent Traceability Security Education and training Maintenance of systems and frameworks 9 operational sites at divisions and manufacturing subsidiaries 5 operational sites at manufacturing subsidiaries 11 operational sites at production business partners •Agreement with customers •Quality assurance system • • • • • • • • • • • • • Audit Points Operational Sites Audited Food containers Filling/packing business Audits for the Food Container and Filling/Packing Businesses

Toppan has made steady progress in its universal design (UD) initiatives. in its universal made steady progress has Toppan of personal information. involving the handling of operations the management reinforced has Toppan Toppan has been decisively fostering human assets responsible for product safety management. for product human assets responsible been decisively fostering has Toppan

user safety and health. Conduct Guidelines and Conduct Guidelines and management throughout We promote product safety responsibility as a protector of of as a protector responsibility based on the Basic Principles of based on the Basic Principles of the principles of corporate social the Group by securing safety and by securing safety and the Group

improving the quality of our products To support product To safety management, strives Toppan to

Points Product Safety Product improve product quality on an ongoing basis. Every operational Every basis. ongoing an on quality product improve - man quality its for certification 9001 ISO the acquired has site hundred Three it. update to works and (QMS) system agement ses- training Toppan’s in part took employees twenty-five and sions for internal auditors at operational sites in fiscal 2011. Toppan has Toppan established its Basic Stance on Product Safety - Manage Safety Product on Guidelines Basic and Management ment to secure the safety of the manufac- products Toppan measures: following the for guidelines provides latter The tures. namely, the establishment of a or use structureimproper of risk the evaluating to and identifying by securesafety product other mishaps product-related and complying with laws and regulations relevant to products manufactured by each divi- informationsion;actualmeasurescollection provisionand and in the case of product-related accidents or problems; and procedures. recall product TOPPAN CSR REPORT 2012 TOPPAN Quality assurance for products at Toppan is a concern for every every for concern a is Toppan at products for assurance Quality for responsible directly departments the only not department, plan- R&D, marketing, in involved departments The production. ning, design, sales, and delivery all contribute to quality. This a as production in assurance quality describes Toppan why is improve to strives and Assurance”) Quality (“Total activity total safety. quality and manage product product Assuring Product Safety and Quality Safety Assuring Product Consumer Issues Consumer Basic Stance on Product Safety Management

Consumer Issues 30 Consumer Issues 31 TOPPAN CSR REPORT 2012 TOPPAN CHARMY Crysta Powder ©Lion Corporation Departments in the Information & Networks field, on the Examples of Universal Design Examples of Universal One of Toppan’s packaging departments Toppan’s projectjoinedofOnetoa in redesign the package for CHARMY Crysta Powder, a dish- washer detergent manufactured by Lion Corporation. A new CHARMYpackage developed based onusability verifications ina simulated kitchen won the Technical Packaging Award in the 35th Kinoshita Prize sponsored by the Japan Packagingserv- consulting a started also have departments The Institute. ice on next-generation UD. Besides giving advice on existing service the running consultants the methods, development UD help client companies develop surveys designs of the through appeal analyticalpoints of products effects and through verify eye-tracking design research and other advanced techniques. other hand, have adopted a UD commitment to developing easier-to-understand, user-friendly designs in order to help smoothly customers their with communicate companies client and accurately. The departments have also commitmentadopted toa offeringUD the employees of client easier-to-understand,companies easier-to-use designs streamlined business operations. As information increasingly that lead to migrates from paper to display ever-more screens in today’s facilitatesdisplay onscreensas UD paperlessToppan society, on paper. well as in pamphlets and application forms Established in April 2010

Established in 2001 Revised in April 2010

Designproducts and services that are more responsive to people with different physical abilities and perceptions. and aural, visual, including communication, for channels multiple using communication Facilitate tactile channels. Make products that are easier to move, easier to approach, and require less strength (remove the physical burdens). and envi- materially, structurally, functionally, safe that to Design are use products procedurally, ronmentally. Engage in design that appeals to the senses with consideration for comfort, enjoyment, beauty. and In keeping with the Toppan Declaration on UniversalDeclarationDesignon Toppan thekeepingwith In 2. understand. easier to use by making them easier to 3. Make products 4. 5. by society. price and in the amounts required at a reasonable products 6. Provide 7. 1. the provision of dedicated products and services realized through and services realized of dedicated products the provision compassionate consideration of users. all walks of life dialogues with people from By engaging in repeated The starting point of our Universal Design is and consistently incorporating the ideas of each person, that are dedicated products we will create and human-friendly. and environment- comfortable, easier-to-use, As a corporation extensively involved in human life, of diversity a society with a high appreciation we will help realize to Universal Design. approaches through Toppan DeclarationToppan on Universal Design and on Universal Design Seven Principles Toppan’s Toppan’s Seven Principles on Universal Design Toppan’s Toppan Declaration on Universal Design Toppan UD plays an increasingly important role worldwide, especially especially worldwide, role important increasingly an plays UD declin- as such trends by reshaped are societies as Japan, in ing birthrates, the ageing of the population, sensory and and comfort on enhanced emphasis stronger a and ethics social values among consumers. Principles and on Toppan’s Universal Design, the Company sensory to weight greater assign that initiatives UD promotes values and customization while emphasizing functions such as understandability and usability. Universal design (UD) is one of- pro and designs that company a theToppan, for responsibilities prime corporate social duces packaging and communication tools consumers see and use every Toppan day. strives to help realize the fulfilling producingCorporatePhilosophy by thelifestyles enunciated in attractive, easier-to-use products and services suitable for of life. users in various scenes Challenges in Universal Design Challenges in Universal

Information Security Management Management Security Information •Toppan Forms (Sanyo) Co., Ltd. •Toppan Forms (Hokkaido) Co., Ltd. •Toppan •TOSCO CORPORATION Printing Co., Ltd. •Tosho Shoseki Co., Ltd. •Tokyo Logistics Co., Ltd. •Tokyo •Livretech Co., Ltd. •EduFront Learning Co., Ltd. Research •Froebel-Kan Co., Ltd. Survey of tightly secured areas designated for the handling areas Survey of tightly secured May to August 2011 of personal information: from Audits on partner companies registered as assignees April 2011 to February 2012 delivery: from for secure Audits on the handling of personal information: from April 2011 to February 2012 System asset audits: from September to November 2011 Survey of the actual conditions of information security management: August 2011 Regular training for information security: from June to December 2011 Issuance of the Information Security Management edition) booklet: October 2011 Guidebook (2011 revised Meetings of Information Security Managers: 2012 May 2011, March surveys Various I I I I I Education I I Activities in Fiscal 2011 The Company also arranged 301 face-to-face lectures for for lectures face-to-face 301 arranged also Company The the issuing to addition In Introducing an Assignee Registration System for for an Assignee Registration System Introducing Delivery Secure Establishing the Toppan Group Basic Policy on Information Security Basic Group Establishing the Toppan Making Activities Ongoing Toppan conducted quality-oriented audits on personal informa- personal on audits quality-oriented conducted Toppan operations in fiscal 2011. tion handling for 28 relevant all employees across Japan to heighten their awareness on the handling of personal information. Guidebook (2011 edition), revised an educational booklet for day- actual surveyed Toppan workplace, the at read-throughs to-day practices for the handling of personal informationconfirm howto strictly therelevant rules were being followed. and 2011 fiscal in responses 21,869 collected Company The analyzed the data to clarify department trends. The survey for the internal used were audits. results After the review, Toppan introduced a qualification system for for system qualification a introduced Toppan review, the After areas. tightly secured I reviewed Toppan its security criteria for the consignment of secure delivery of personal information, cash vouchers, and other important information or tangible assets. A total of as assignees. registered currently partner companies are 16 I Toppan revised its Information Management Policy into Group-wide policy a to strengthen coordination on information be to rules standardize will Toppan Group. the across security Group. the entire throughout shared •Toppan Travel Service Corp. Travel •Toppan Forms Co., Ltd. •Toppan Co., Ltd. Forms Central Products •Toppan Forms Operation Co., Ltd. •Toppan Forms Kansai Co., Ltd. •Toppan Forms Services Co., Ltd. •Toppan Co., Ltd. Forms Tokai •Toppan Forms Nishinihon Co., Ltd. •Toppan Co., Ltd. Forms Process •Toppan Entry and exit gates at tightly secured areas des- areas secured tightly at gates exit and Entry ignated for the handling of personal information

Introducing a Group-wide Personal Information Management System Improving the Operation of Tightly Secured Areas Information Designated for the Handling of Personal •Toppan Printing Co., Ltd. •Toppan Co., Ltd. Communication Products •Toppan Graphic Communications Co., Ltd. •Toppan Joho Kako Co., Ltd. •Toppan System Solutions Co., Ltd. •Toppan Editorial Communications Co., Ltd. •Toppan Logistics Co., Ltd. •Toppan Co., Ltd. Prosprint •Toppan •Bitway Co., Ltd. Toppan Group Companies with PrivacyMark Accreditation (as of June 10, 2012) Companies with PrivacyMark Accreditation Group Toppan Reinforcing the Management of Operations Involving the Handling of Personal Information Toppan implemented the following measures for more stringent more for measures following the implemented Toppan over personal information handing in fiscal 2011. control I Toppan has structured Toppan newa system tocontrol all operations involving the handling of personal information with a central- depart- no system, this In Japan. across code numbering ized ment is allowed to conduct any operation the usingto issued only are Orders information control. its of scope the outside registered partner companies to which the operations have been consigned. I Toppan reviewed the management rules2007forthe governance oftightly secured areas. These it rules established diversi- the and risks IT rising in with cope to adjustment required Company. the to entrusted information personal of types fying TOPPAN CSR REPORT 2012 TOPPAN Information Security Management Guidebook (2011 revised edition; in Japanese) Toppan Toppan handles a great deal of personal information in the course of arranging and sending direct conductingaffairssecretariatcampaign and cards,processing mail, issuing and entrusted information personal All operations. web-related and the ensure to care utmost the with treated is Company the to enhanced the and customers Toppan’s of security and safety services. quality of Toppan Protecting Personal Information Protecting

Consumer Issues 32 Consumer Issues 33

2 2 1% 82% ement ecycling r ocur pr Disposal, Raw-material TOPPAN CSR REPORT 2012 TOPPAN 0% 10% emissions. Toppan is seeking 2 maintenance/ oduction management Distribution Use, Pr 7% Ratio by Life Cycle Stage 2 2 2 2 2 emissions associated with the manufacturing of printed 2 in total Toppan was a participant in the CFP Pilot Program operated operated Program Pilot CFP the in participant a was Toppan Meanwhile, data on manufacturing processes collected 2 0 kg-CO Reporting the Carbon Footprints of Products Reporting the Carbon 171 kg-CO 849 kg-CO emissions associated with or products services. It is a single CFP of framework the Within understand. can anyone number reporting, it is anticipated that individual consumers will vol- eco-friendly products. untarily choose more bythe Ministry andof Economy,IndustryTrade of Japan until the project was discontinued in fiscal 2011. The Company collaborated with the ministry in printed the commercial and publication formulationfor (PCRs) Rules Category of Product materials (intermediate goods), for containers and packag- business. and advertisement for materials printed for and ing, Toppan has applied for CFP certificationand for the for Japanese version of this CSR report (760 itsg-CO pamphlets emittedper copy) since fiscal Toppan 2011. will participate in the CFP Communication Program, a Japanese CFP scheme Associa- Management Environmental Japan the by undertaken tion for Industry (JEMAI). for CFP calculations will help Toppan sav- for activities effective visualize more implement and consumption its energy ing energy and reducing CO products. The carbon footprint of products (CFP) is a measure of CO productivity enhancements to reduce the amounts of wasted wasted of amounts the reduce to enhancements productivity paper as in paper particular, accounts for a large part of the CO 9,240 kg-CO 1,146 kg-CO per copy) 2

2 (760 g-CO disposal. Emitted 11,406 kg-CO Emissions Associated with the 2 absorbed by 2 This calculation covers the printed version in catalogue,digitaland PDF, The Japaneseonly. English-language versions are excluded from the calculation. Distribution etc. Transport, Use, maintenance/management Reading, etc. Disposal, recycling Transport, treatment, etc. Raw-material procurement Paper, ink, CTP plates, etc. Production printing, Prepress, binding, etc. Manufacturing of the Japanese Version Version Japanese the of Manufacturing of the CSR Report (15,000 copies) CO * l wa r rene

l. te

)-certified paper as a raw material. material. raw a as paper )-certified d ﬁlm ﬁlm

® d om Af wa r is te fr ed to to e ne il il d rt ed th nver r rt r re nve m fo m fo d pape te e of nve co abolishe af iﬁe pape fac rt e co co to r abolishe k ﬁlm l used aluminu aluminu r sur ridg ke C-ce nnel rt ic S om om wa nne also fr ca St fr Shrin Membrane Fu I plastic *F rene Toppan will endeavor to develop more eco-friendly products products eco-friendly more develop to endeavor will Toppan In the field of flexible packaging materials, Toppan has In the field of cylindrical paper containers, Toppan has been Toppan has cylindrical of containers,paper field the In emitted during incineration of the film at the time of emitted during incineration of the film at the in the future. In March 2012, NESCAFÉ Eco & System Pack was redesigned redesigned was Pack System & Eco NESCAFÉ 2012, March In into a more environmentally friendly aluminum-free container ever before. composed of significantly less plastic than developed the world’s first packaging film made of biomass polyethylene. The plant-derived material for this filmreduces fossil consumption resource compared with petroleum films. When this film is used for packaging, the CO Standing pouch for refillspolyethylene made of biomass NESCAFÉ Eco & System Pack: Key points of new structure Before Toppan producesToppan a host of environmentally friendly products to a sustainable society. designed to contribute collaborating with Nestlé Japan Ltd. on the development of NESCAFÉ Eco & System Pack, a container paper-based for instantcoffee. Thiseco-friendly container madeiswith Forest (FSC Council Stewardship Contributing to Sustainable Consumption Contributing to the raw material during its cultivation as a plant offsets the CO the offsets plant a as cultivation its during material raw the - - Classforelementary school students invited to the site (Nagoya, Aichi) Improving Industrial Safety and Health Improving Community Cleanup and Beautification All operational sites in Japan have endeavored to improve industrial safety and health in exam- their for Prefecture, Fukuoka own City, communities. Fukuoka in site The operational StandardsLaboractivities a engagedinsponsoredbyhas ple, Association in Fukuoka Prefecture. In joint work with a local Labor Standards Inspection Office, the site haseducational carriedactivities andgonesafetyon andhealth out patrols in companies including region, the across companies around and outside the region Group. same the Thein companies Toppan Groupbetween hasrelationships helpedcooperative deepen industrial safety and health in the communities. and improve beau- and clean to activities organized has Group Toppan The tify the environment around its operational sites as one of its most basic community contributions. appre The of letter operationalofficial an received site Prefecture in Hyogo City, Itami ciation from the Mayor of Itami City for continuously dispatch- continuously for City Itami of Mayor the from ciation employeesing carryintensivetoout community beautification activities such as the cleaning water of of clearing the and residents, commuting neighboring with cleanups routes, river ways adjacent to the site. the affected areas at their worksite cafeterias, and supported supported and cafeterias, worksite their at areas affected the proceeds sales the of portions donating by efforts relief disaster vending machines. paid into specially installed Evacuation drill for neighboring residents Evacuation drill for neighboring residents (Numazu, Shizuoka) Letter of appreciation for environmental beauti- environmental for appreciation of Letter fication achievements (Itami, Hyogo) PP. 6–9). PP. The Group has striven to improve industrial safety and health and to build up cooperative structures at a time of at a time of up cooperative structures and health and to build industrial safety to improve has striven The Group located. sites are its operational the communities where disaster in the world. rates across to help raise literacy on with activities has carried The Group The Toppan Group has supported the areas distressed by the Great East Japan Earthquake and Thailand Flood. East Japan Earthquake the Great by distressed has supported the areas Group The Toppan

The operational site in Sendai City worked with the Ishino- the with worked City Sendai in site operational The Other operational sites distant from the disaster-stricken Every operational site has been involved in neighborhood

Points Assisting the Areas Distressed by the Great East Japan Earthquake In fiscal 2011, all Toppan Group companies in ren- Japan dered ongoing assistance to the people livingdistressed in by the the areas Great East the of all from Japanvolunteers example, for Prefecture, Miyagi Earthquake.City, In Sendai Group companies helped operate the Book mobile Wagons, libraries deployed on regular rounds of for disaster victims (➞ areas temporary housing the in mainly debris and dirt remove to Center Volunteer maki disaster-ravaged coastal districts of Ishinomaki City. On a cumulativebasis, 193 employees took part in activities on 16 separateoccasions NovemberMayfromtowill 2011. Toppan organize similar activities in fiscal 2012. areas held charity events, served produce shipped in from TOPPAN CSR REPORT 2012 TOPPAN Book donation (Toyama) Charity event (Koishikawa, Tokyo) Toppan’s domestic and overseas operational sites have helped helped have sites operational overseas and domestic Toppan’s contributed have and issues local solve communities own their as community members. to sustainable local development associations and other community sites The communities. the organizations in members of opinions the that together bring dialogue through issues and demands community out sound these issues. in addressing and organize activities effective Community Contribution and Involvement Community Contribution Community Involvement and Development and Involvement Community

Community Involvement and Development 34 Community Involvement and Development 35 - Toppan Toppan TOPPAN CSR REPORT 2012 TOPPAN Literacy education in Cambodia ©ACCU As in the previous years, sponsored Toppan the Initiatives at Overseas Operational Sites Initiatives at Overseas neighboringresidents evacuate to building roofs at the site in a special disaster drill. The operational sites in Asia, Europe, and the United States have also striven to support their communities. Toppan sites char through communities their to contributed have China in creation, job works, beautification environmental activities, ity and local material site procurement. The in Toppan Thailand widespread the by affected employees and residents assisted flooding of 2011. A site in the US has been volunteer involvedand donation both in through games local Olympics Special activities. Cooperating with International Social Issues Communities to Address worldwide in participated has Toppan 2008, fiscal from Starting activities to enhance literacy (the abilities to read, write, and calculate with adequate proficiency to function well in daily a enjoying and poverty escaping for essential skill living a life), culturally enriched existence. more healthier, Charity Concert series in fiscal 2011 and donated about two million yen in concert proceeds to the CentreAsia-Pacificfor UNESCO (ACCU). The funds donated Culturalthis year will be used for literacy education and classes on maternal and in Cambodia. child health for mothers raising young children - - Provision of supplies for flood Packaging Co., Ltd. in Thailand) Toppan victims (Siam Toppan Charity Concert Charity Concert Toppan (The JADE, a vocal quartet) The operational site in Nagoya City, Aichi Prefecture planned planned Prefecture Aichi City, Nagoya in site operational The Building up Cooperative Structures at a Time of Disaster Building up Cooperative Structures Fostering the Coming Generations and Contributing to Education Seashore cleanup (Toppan Leefung in Kong) Hong Toppan Charity Concert Charity Concert Toppan (Maki Mori, a soprano) Group companies in Japan have responded to requests from from requests to responded have Japan in companies Group surrounding communities by advancing their efforts to build up mutual cooperative structures for evacuation in disaster conditions and to open up their facilities for community use. Respondingrequestlocalaaorganizationfromto residenton evacuation in the event of a large-scale tsunami emergency, had Shizuoka Prefecture the operational site in Numazu City, Operational sites in Japan have held plant tours, organized experience work arranged schools, with cooperation in classes many of activities in part taken and internshipand programs, people young other and students, children, the foster to sorts society. who one day will be sustaining and gave integrated learning classes in collaboration with a local elementary school and NPO. The site appliedknow-how in Toppan the classes. In one class on the environment, from products friendly environmentally about learned students commu on instructed were students class, another In Toppan. nicationandcomposed graduation songsthanksgivingwith a Prefecture Toyama City, Toyama in site operational The theme. has been picture books, donating illustrated children’s refer encebooks, localandthelikealibraryto andnursery schools via a local administrative institution since 2003.

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Domestic (within the scope of the environmental targets):companies ( 21 Overseas: 28 companies ( Domestic (outside the scope of the environmental targets): 20 20 targets): environmental the of scope the (outside Domestic companies ( *1 *2 , , , Toppan Forms Co., Ltd., Toppan TDK Label Co., Ltd., Tamapoly Tamapoly Ltd., Co., Label TDK Toppan Ltd., Co., Forms Toppan , “Major Environmental Burdens by Business Field in Japan (INPUT/ Japan in Field Business by Burdens Environmental “Major OUTPUT data):” 21 companies ( “Ratios of Domestic and Overseas companies ( Environmental Burdens:” 69 companies 21 Efficiency:” Environmental and Impact “Environmental ( Co., Ltd., Tokyo Shoseki Co., Ltd., Tosho Printing Co., Ltd., Toppan Toppan Ltd.,Co.,Printing Tosho Ltd.,Co., Shoseki Tokyo Ltd.,Co., Ltd.) Co., Cosmo, Inc., and Froebel-Kan “Types ofEnvironmental “Types Impact byBusiness Field:” 21companies ( All the charts: 21 companies ( “Improving Transport Efficiency in Logistics” on P. 42: Toppan Logis- Toppan 42: P. on Logistics” in Efficiency Transport “Improving tics Co., Ltd. only Total sales of the environment-related businesses: 8 companies ( Environmental targets: 21 companies ( targets: 21 companies Environmental page 37 for the environmental targets). page 37 for the environmental

Toppan Printing Co., Ltd. (“the Company”) Toppan’s Toppan’s environmental activities are divided into four P. 38 P. P. 39 P. Data on overseas subsidiaries is posted on the Toppan website. Data on overseas subsidiaries is posted on the Toppan

42–44 PP. 47 P. comingdecade and concrete targets are set for each current fiscal year based on individual environmental objectives. This clarify to Toppan enables setting goal to approach methodical achieve- assessing for criteria the and taken be to activities the ments (➞ areas—environmental management, Eco-protection, intensify the Eco- communication. To and environmental creativity, bylaws: five of set a enacted Toppan Activities, Eco-protection the Bylaw on Global Warming Mitigation, the Bylaw Chemi- on on Bylaw the the Society, Recycling-oriented a of Building cal Substance Management, the Bylaw on Pollution Control, and the Bylaw on Biodiversity. Toppan has conservethe taken global environment ineach stepsoffour activity areas to based on the five bylaws. Scope 37 P. Scope of Environmental Performance Data Scope of Environmental

Revised in April 2009 Established in April 1992

, waste, chemical substances, 2 stakeholders corporate operations and technical services Eco-creativity Activities Eco-protection Activities on the Global Environment Environmental management activities The Toppan Group Declaration Declaration Group Toppan The Toppan operates environmental activities in four areas: environmental management, Eco-protection, Eco-protection, management, environmental in four areas: activities environmental operates Toppan Toppan proactively promotes environmental initiatives based on The Toppan Group Declaration on on Declaration Group on The Toppan initiatives based environmental promotes proactively Toppan Environment. the Global communication. and environmental Eco-creativity, Environmental communication activities and other environmental burdens associated with Activities to proactively promote the development,

Activities for sharing environmental awareness with Activities to minimize CO assessment, and sales of environmentally friendly products Activities for systematically managing environmental initiatives Activities for systematically managing environmental

As responsible members of international society, As responsible members of international society, we who work within the Toppan Group we who work within the Toppan Group strive to realize a sustainable society through forward looking corporate activities with consideration for the conservation of the global environment. We observe all laws, regulations and in-company rules relating to the the to relating rules in-company and regulations laws, all observe We environment. For the future of the Earth, we strive for the effective utilization of lim- burden. environmental of types all of reduction the and resources ited Withforesight, wepromote thedevelopment andwidespread useof contrib- and environment, the for consideration show that products ute to the environmental activities of customers. wide a with environment the to related communication in engage We range of peoples both inside and outside the company, for mutual understanding. and strive Wealso take proactivea approach toenvironmental conservation in corporate activities in international society.

Points 2. 3. 4. 5. Basic Principles 1. TOPPAN CSR REPORT 2012 TOPPAN tive approach to the conservation of the global environment. Toppan specifies environmental objectives for therealization of the goals of the Declaration on the Global Environment. Medium-and-long-term environmental targets are set for the Toppan established Toppan the Ecology Center in 1991 and - prom ulgated Declaration Toppan’s on the Global Environment, a basic philosophy for environmental conservation activities, in 1992. has Toppan promoted environmental initiatives based on the declaration ever since. In April 2009, the Company revised Declaration Toppan’s on the Global Environment into The Toppan Group Declaration on the Global Environment, a new basic philosophy for environmental desire activities Toppan’s for reflects declaration the revised The Group. entire to help realize a sustainable society by taking a more asser Overview of Environmental Activities Overview of Environmental Toppan’s Environmental Activities Environmental Toppan’s

The Environment 36 The Environment 37 — —

For P. 44 P. P. 45 P. P. 48 P. P. 44 P. 43 P. P. 47 P. P. 46 P. P. 43 P. P. 42 P. Details 105); 105);

— 100% 100% 100% 2 sites 92.4% 70) Targets Targets increase 475 tons million yen 0.72 tons/ million yen

8,643 tons 5,250 tons 0.653 tons/ (Values) for for (Values) Continuous Continuous Fiscal 2012 739 kilotons standard values standard Trial assessment assessment Trial 240 billion yen Environmental using the in-house using the in-house

2,198 tons: –5,128 tons)

S S A A A A A A S B B B B C — TOPPAN CSR REPORT 2012 TOPPAN Evaluation

achievement rate [%]

— — — — — — — — Rates 98.7% 99.5% 122.0% 111.2% 101.0% 104.8% 106.1% Reduce VOC emissions into the Reduce VOC emissions into the atmosphere by 70% compared to the fiscal 2008 level (7,326 tons ➞ Achievement I Conservation of the atmospheric Conservation of the atmospheric environment 3. ment ment 100 [%]; for environmental targets

— 99% 63% 93% 1 site 5 sites 91.5% guidelines Results in-house in-house

633 tons million yen 7,203 tons 4,885 tons 0.659 tons/ Fiscal 2011 695 kilotons Checked the Checked the Considered at 241.1 billion yen paper procure standard values standard Established a set of Established a set of

105); A, Targets achieved (100 Toppan Toppan will continue pressing ahead with its initiatives to

— 95% 1 site 100% 100% Establishing Environmental Targets for Targets Establishing Environmental Fiscal 2012 fiscal for targetsenvironmental of set a establishedhas Toppan 2012 based on the achievement rates for the environmental relevant factors. and other targets for fiscal 2011 targets. environmental attain the medium-and-long-term 92.7% 100); C, Activities insufficient (achievement rate [%] increase increase in-house in-house 639 tons million yen 9,236 tons 5,500 tons 0.656 tons/ Continuous Continuous Continuous Continuous 740 kilotons Checks on the Checks on the Target Values Target 230 billion yen standard values standard 2 206 tons: –1,378 tons) * ) emissions by 4% compared to the fiscal 2010 level. to the fiscal by 4% compared ) emissions 2 Reduce final landfill waste disposal by to the fiscal 2008 level 87% compared (1,584 tons ➞ I achievement rate [%] Action for building a recycling- oriented society 2. emissions emissions per unit of 2 2 100 [%] Management Indicators Usage rate of certified paper paper and recycled Operational sites for biodiversity conservation Operational sites for land-use assessment Rate of course completion in e-learning-based programs Establishment of in-house standards Rate of establishment of new standards in-house control Material recycling rate Material recycling Handling amount of chemical substances designated under the PRTR law VOC emissions into the VOC emissions into the atmosphere CO Final landfill waste disposal Waste generation per unit of value production CO sales Total sales of environmentally sales of environmentally Total (Cartocan, etc.) friendly products Issuance rate for Site Eco Reports I I I I I I I I I I I I I I I

669 kilotons: –82 kilotons) 1 emissions by 11% compared 2 emissions Toppan reduced final landfill waste disposal by 2% compared to the fiscal 2010 level. to the by 2% compared landfill waste disposal final reduced Toppan by the atmosphere (VOC) emissions into organic compound volatile reduced Toppan Toppan reduced carbon dioxide (CO carbon reduced Toppan 7% compared to the fiscal 2010 level. to the 7% compared 2

Environmental Targets Environmental to the fiscal 2008 level (751 kilotons ➞ Reduce CO I Promote conservation during paper at operational sites and procurement Establish and observe new in-house standards control Control waste generation waste Control Reduce the handling amount of chemical substances designated under the PRTR law Maintain adequate communication Develop and expand the sales of friendly products environmentally Reduce VOC emissions into the Reduce VOC emissions into the atmosphere Reduce CO Reduce final landfill waste disposal Reduce waste generation per unit of value* production Enrichment of environmental education Environmental conservation at sites overseas production Facilitation of environmental Facilitation of environmental communication Environmental contribution through products Conservation of the atmospheric environment Action for building a recycling- oriented society I I I I I I I I I I This item was included in environmental target #4 “waste reduction” for fiscal 2011. targets. #2 “action for building a recycling-oriented society” for conformance with the ordering of the fiscal 2012 This year it is included in environmental target Toppan independently determines which operational sites are required to issue Site Eco Reports. 1. Mitigation of global warming Points 6. Initiatives to conserve biodiversity 10. 11. 9. Prevention of environmental risk of environmental 9. Prevention 4. Waste reduction 4. Waste 5. Chemical substance management 8. 7. 3. 1. Mitigation of global warming 2. *2 Achievement rates: For environmental targets #1, 2, 3, 5: 200 – (values actually achieved / target values) × Achievement rates: For environmental targets #1, 2, 3, 5: 200 – (values actually achieved / target values) #4, 7: (values actually achieved / target values) × *1 Results and Evaluation of Environmental Targets for Fiscal 2011 and Environmental Targets for Fiscal 2012 Targets Environmental for Fiscal 2011 and Targets Results and Evaluation of Environmental Medium-and-long-term Environmental Targets for Fiscal 2020 Targets Medium-and-long-term Environmental - Envi Global the on Declaration Group Toppan The on Based ronment, Toppan sets medium-and-long-term - environmen tal targets and concrete targets for each current fiscal year. for set targets environmental 14 of out nine achieved Toppan fiscal 2011. Evaluating Achievement of the Evaluating Achievement Fiscal 2011 for Targets Environmental Environmental Targets and Results and Targets Environmental B, Activities fully carried out, but targets unachieved (70 Evaluation criteria: S, Results achieved far surpass the targets (achievement rate [%] )

) e ns ns t: to

t: to orks orks es es t t Releas Handling (Uni tw tw (Uni 3 TR n sit 0 n sit TR ) ) 20 ) 34 ) PR PR l n & Ne n & Ne 7, s s 3% ) 4% l ta tal 5% 9. 2% 7. tal oductio oductio ta nic nic 4% %) 8. 3. To Environmen Environmen %) To %) To 6. .9 To 7 (3 tro tro 6 (4 .2 .1 5 (1 (1 7 (7 (4 41 82 ec ec El El Living 1 (0 Informatio 55 Informatio 95 Living 17 3, 26 Non-pr 5 (0 2, Non-pr s ) n ) e 3 3 Electronic m m 000 000 1, 1, t: t: t Discharg orks orks es es t t (Uni r Consumptio tw tw (Uni n sit n sit te ﬂuen ) ) 75 ) ) Ef 5% ,583 0% Wa n & Ne n & Ne s s ) %) ) 8% 0% 7. 0. 3,9 tal %) .2 2. 1. 12 tal 1 oductio oductio nic nic 1% (7 l (8 l Environmen Environmen To ta To ta 2 (7 tro tro 7 (1 5 (1 62 33 5 (5.4 8 (3. ,1 ,7 6 (3.0% To To ec ec 37 00 79 Informatio 1, Living 41 El El Informatio 68 Living 38 1, Non-pr 10 10 Non-pr 1, vironment En ) n 2 GJ) CO Living t- 000 t: 1, t: (Uni orks orks es es

t t tw tw sit (Uni Consumptio ) ) ) n n sit 983 ) ) ) Emissions 96 ) 8% 2% 1% 2 4, 6. 4. 8% n & Ne n & Ne s s ,8 4% .6% CO 6. 3 %) 69 Energy oductio oductio nic nic 3 (3 2 (3 15 9 (25. (3.9% l .2 Environmen Environmen orks (25. l 8 (3 7 (3 49 ta tro tro tal 69 66 29 ta tw 7 (4 5, 7, ,1 4, To 33 84 044 ec ec To To 66 Informatio 4, Living 27 Living Non-pr Informatio 17 El El Non-pr 5, 25 23 5, & Ne ation ) m ) ns e ns Infor t: to t t: to (Uni

npu (Uni orks orks es es 9 t t I 0 tw tw in the Electronics field account for the greater portion of water consumption and effluent discharge. and effluent of water consumption portion greater account for the field in the Electronics Paper accounts for the greater portion of material input and total waste discharge at Toppan, while activities while activities at Toppan, total waste discharge material input and portion of for the greater Paper accounts As one step in reducing environmental burden, Toppan assesses the environmental impact of its overall of its overall impact the environmental assesses Toppan burden, environmental in reducing As one step business activities. e Discharg ) 71 )

) ) n sit n sit rial 65 ) st 5, ) 8% te 1% 9% 7, .6% 7% 0. 7 7. n & Ne n & Ne s s %) Wa 44 .6% 0. Ma 26 .3 l oductio oductio 9 (59. nic nic 1, 0 (5 T (1 6 (3 (2 2 (3 tal “Waste” in this report includes industrial waste of no value and materials of value sold or transferred as resourcesbusiness activities). (both generated in association with energy consumption is the quantity of electricity and fuels consumed. Total l Environmen Environmen ta 30 Energy consumption associated with fuel consumption is calculated using the conversion factor specified in the year 2000 amendment of the Act on the the on Act the of amendment 2000 year the in specified factor conversion the using calculated is consumption fuel with associated consumption Energy Rational Use of Energy of Japan. The primary energy input associated with electricity consumption is calculated uniformly as 0.00983 GJ/kWh. Some values. estimated values based on production calculated from of the material inputs are 6 (1 12 06 I I tro tro 14 52 64 ta To

%) To 5, 3, ,6 4, 1, PU ,2 45 ec ec To

Points 3, Informatio 86 Living El El Non-pr Living 13 Informatio 54 0 (0 28 37 10 Non-pr OUTPUT IN TOPPAN CSR REPORT 2012 TOPPAN Note: Major Environmental Burdens by Business Field in Japan (INPUT/OUTPUT data) by Business Burdens Major Environmental Toppan’s Environmental Burden Environmental Toppan’s

The Environment 38 The Environment 39 n s g l r in tronic the rm O Globa ec Resource wa El consumptio t l n g l s r in the TOPPAN CSR REPORT 2012 TOPPAN idant rm Environmen O ox

Globa Resource wa consumptio Photochemica Living orks tw n g l r in n & Ne the rm O Globa Resource wa consumptio Informatio % % % % is a method for producing an environmental impact 0% 0% 1 20 40 80 60 10 Toppan regularly discloses Toppan the environmental impact and Environmental impact Life-cycle Impact assessment Method based assess- impact on environmental damage-oriented the of version Endpoint A (LIME): modeling - environmen the on based Japan in application for adjusted method ment tal background domestically. Damages derived from impact hu- (e.g., categories protected be to environment the of part each for quantified are - environ the quantified, are damages the Once biodiversity). health, man index. integrated into a single mental impacts of multiple factors are The value in fiscal 2006 = 100 sites. non-production (baseline); Recalculated by excluding In Living Environment, the chart shows a significant impact from photo- chemical oxidants, pollutants formed by reactions between sunlight and environmental how demonstrates This atmosphere. the into released VOCs solvent of control appropriate the through reduced effectively be can impact equipment. treatment In Electronics, the chart shows a high impact of energy consumption globalon warming. This underlines the importance of energy saving in clean and other facilities with high energy-loads. rooms Types of Environmental Impact by Business Field Environmental of Types *1 *2 impact *3 Net sales / environmental * * of Toppan’s overseas environmental burden is expected to rise rise to expected is burden environmental overseas Toppan’s of Companytheasaccelerates globalwillitsoperations. Toppan strictly as overseas burdens environmental controlling continue as it does in Japan. Impact Environmental LIME for Assessing LIME* index. Multiple factors with impacts on the environment, includ- environment, the on impacts with factors Multiple index. ingresources (such as paper) and energy (such as electricity) from output VOCs and waste and activities business into input scientific manufacturing,statistical weightedonand based are findings and integrated into a single index ofimpact. environmental environmental of unit per sales (net efficiency environmental the impact) of its business activities in order to better - compre hend and reduce the integrated environmental environmental its impact lowered Company the of 2011 fiscal itsIn activities. reduc- This level. 2006 fiscal the to compared 22% by impact tion was attained by a reduction of VOC emissions the in equipment treatment solvent of control appropriate throughthe Living Environment field andreduced energy consumption in and Information & Networks. the fields of Electronics ) 3 s) ic % ar e of 0 0 5 5 0 0 58 ncy* ye 22 27 24 19 17 l target ficie Domest e scop ﬁscal 2 ( ef a 6 .0 11 n th 21 78 20 nmenta ithi ro T dat (w vi ironmental PU emissions e en 2 nv th 7 10 CO OUT 2.2 21 8 20 onmental targets) Overseas 30% Domestic (outside the scope of the envir 12% 1 .8 09 20 87 20 s) ic % e of 65 l target Domest e scop 3 .4 08 21 n th 90 a 20 nmenta ithi tE ro (w vi T dat Energy e en l impac 0 9 th ta 06 INPU 18 10 20 onmental targets) 0 0 20 40 80 60 The environmental burden associated with domestic activi- domestic with associated burden environmental The 10 Environmen Q Overseas 21% Domestic (outside the scope of the envir 14% Environmental Impact and Environmental Efficiency* Impact and Environmental Environmental Ratios of Domestic and Overseas Environmental Burdens Ratios of Domestic and Overseas Environmental Everyoperational aggregates siteToppan itsenvironmentalat burden via data on INPUT (materials and energy used) and - produc of result a as discharged (materials OUTPUT on data tion), then assesses its impacts from various environmentalstandpoints. Toppan establishes environmental targets and priorities in activities based on the results of these assessments and verifies theresults of the environmental activities. domestic (on data burden environmental its classifies Toppan Group entities within the scope of the Company’s - environ mental targets) into the three business fields of Information & Networks, Living Environment, and Electronics. The assessments of environmental burden by business and fieldNetworks & Information arein Activities shownpage. opposite the on Living Environment account for 97% of material input at the Company. Paper accounts for 82% of the total material input Electronics, in Activities discharge. waste total the of 74% and meanwhile, account for 77% of the total water consumption and81% ofthe total effluent discharge, making up significant portions of the totals. ties is more significant than thatactivities, associated as shown within the chart overseas below. Henceforth, the ratio Environmental Burden and Environmental and Environmental Burden Environmental Impact n s s

r e enes he d ar rmin educatio s

ation s d ot gencie te or ze s an

e aw an s, d de emer n le l fact d oper

an ro , organi es d target d to an implementation s, s an d authoritie Do anning ence nmenta Pl s an d encourag quirements , an spon Pl ro ocedur source es vi l re , an ti d re quirements pr ompet e re n en e a detailed e communicatio document re h object lega e c l operations e an ai at nt aining fy rt nc ro rmin va mplementation I te d tr epar imulat sponsibili le rmul an re fo plan re applicable Cont Pr Manage St Enha De Asce Establis Identi I I I I I I I I I e a th t vi t Everyoperational sitesendsEcologythe Center reports on In the internal audits by the Ecology Center, internally certi- internally Center, Ecology the by audits internal the In progress of the activities every month to ensure that any newly newly any that ensure to month every activities the of progress as quickly as possible. resolved are arising problems Resultson environmentalmajorperformance periodically. data energy are sent for monthly, example, while those on waste system effective an prepares Toppan half-year. every sent are and targets environmental its of achievement the evaluating for the targets whenever necessary. reviewing Environmental Audit System Environmental environmental Toppan’s audit follows a three-stage - screen ing process: a management system audit another and by Center, Ecology anthe by audit internalISO an 14001registrar, internal at the individual site. audit fied auditors environmental and assistant auditors appointed to oversee the environmental inspect management and evaluate the status system of the EMS, compliance with (EMS) standards, in-house and regulations, laws, environment-related daily and atmosphere, the and water on impact environmental audited. site operational every at waste and energy of control Oncesitea isaudited, itprepares Plana forthe Improvement Specifiedof Issues pointed duringout auditthe (Improvement the where sites At deficiencies. the correct to works and Plan) emen ov s impr vironmental managemen cycle En CA PD Continuou I

at d rnal y

te g an p in ke olog l audits s t, r to ting d ta e Ec measures s view alua ve th k ask fo nmenta y an ti m audi t re t (t r ev d measurin ro te statu en t by vi ys Ss fo Ac an (s s en Chec ng l audi s) Toppan conducted internal environmental audits at 62 domestic sites and eight overseas sites. domestic sites and eight audits at 62 internal conducted environmental Toppan Toppan operates an established environmental management system at every operational site and site and at every operational management system environmental an established operates Toppan upgrading these systems. continues ) rd d prev

ri e EM te rnal co to an th te l si re t audits nonconformit ve Managemen compliance ing , in ti nstructions nmenta Moni er ov ec ro e i vi

The Eco-protection Promotion Committees check the en Cent individua corr impr management Conduc Conﬁrm Manage Assess Issu

Points Features Environmental of Toppan’s Management Systems I I I I I TOPPAN CSR REPORT 2012 TOPPAN Overview of Environmental Management Overview of Environmental Toppan’s Toppan’s EMSs are uniquely managed. The PDCA cycleput into practice at every is operational site, irrespective of the ISO14001 certification. Sixty-three domestic sites have been pressing ahead with their environmental activities to achieve Activity Plan. the targets set under the Eco-protection Toppan’s environmentalToppan’s management relies on the operation of established environmental management systems (EMSs)based on the environmental Company’s management rules. - practic by systems these upgrading continues Company The - effec the ensure To cycle. (PDCA) plan-do-check-act the ing ongo- conducts management top cycle, PDCA the of tiveness Center Ecology The reviews. management environmental ing time Each data. performance environmental collects regularly it does, the Director in charge of the Center evaluates and verifies the data andreports bod- management other the and Directors of evaluationBoard the to results and verification implemented and proposed are EMSs the to Improvements ies. Company. the entire throughout Structure to Promote Environmental Environmental to Promote Structure Management Activities Environmental Management Activities Management Environmental

The Environment 40 The Environment 41 TOPPAN CSR REPORT 2012 TOPPAN - pre laws,” environment-related to “Introduction personnel sented by Toppan 22 192 114 154 22,691 Trainees - pro e-learning-based arranged Company the 2011 fiscal In Personnel from the Ecology Center lecture trainees in Meanwhile,correspondencethe learning Challenge School Toppan uses these education activities as opportunities Number of Number of Environmental Education Environmental Toppan provides environmental education prehensive through e-learning-based com programs for all employees. of employees for sessions training specialized organizes also It every rank, including new employees and newly appointed managers. grams covering in-house environmental rules, including The the Global Environment. Declaration on Group Toppan sessions of the optional courses Schoolheld eachLecture year. topics at include an introduction the Toppan and Business14001, ISO to introduction an laws, environment-related to methods to enhance the skills of internal ISO 14001 auditors in a seminar form. presented to the environment. 19 courses related offers to enhance the environmental knowledge and awareness of qual- the improve and maintain continuously to and employees activities. environmental ity of the Company’s Internal audit inspection environmental Education or Training Onsite interviews and inspections are also carried out for underwent Asia Southeast in sites two and China in sites Six Results of Fiscal 2011 InternalResults of Fiscal 2011 Audits New employee training: General environmental education (introductory level) education (introductory New employee training: General environmental E-learning: Basic education on the environment Business School Toppan to the environment Challenge School: 19 courses related Internal auditor training program environmental Internal audit interview environmental Education Fiscal 2011 Results of Environmental overseas production sites every other year, in principle. in sites every other year, overseas production identified audits The 2011. fiscal in audits environmental local 99 issues in need of improvement. The overseas production sites have followed the example set by bytaking necessary theprocedures toachieve better domesticoperational sites Plans. conditions under the Improvement The internal environmental auditors identified 623need issuesof improvement in at 62 domestic sites in fiscal 2011.To correct the deficienciespointed out, each operational site follows an Improvement Plan with a detailed list of - improve ment measures and of progress the target confirmed has Toppan issues, specified these dates for completion. Among improvementmeasures on 56 issues at four operational sites The Audit. Internalthe of Reviews the Environmental through - remain the against countermeasures of effects and progress ing567specified reviewed issuesbe to are during the internal audits for fiscal 2012. environmental Ecology Center deems it to be necessary, the auditors conduct auditors the necessary, be to it deems Center Ecology an additional Review of the Internal Environmental improvements. the required towards assess the progress Audit to when energy 2 Toppan Toppan efficient efficient /MWh. 2 emissions associated with electricity consumption, how- 2 emissions are calculated by the method specified in the emissions in fiscal 2011 amounted to 697,124 t-CO 2 2 emissions were 35,221 tons, or 5.4% higher than 2 CO CO Guidelines for Calculating Greenhouse Gas Emissions from Busi- nesses(2003) from the Ministry of the Environment (MOE) of Japan. The CO calculated using the effective Calcu- the Concerning Ordinance Ministerial the emission in specified method factor from another MOE lation of Greenhouse Gas Emissions from 2010). 31, Specified Dischargers (the latest amendment on March Business Activities of

ever, are calculated uniformly as 0.378 t-CO are ever,

Energy consumption associated with fuel consumption is calculated calculated is consumption fuel with associated consumption Energy using the conversion factor specified in theprimary The Japan. ofyear Energy of Use Rational the 2000on Act the of amendment inputassociated with electricity consumption is calculated uniformly as 0.00983 GJ/kWh. emissions in a coordinated effort with its shippers, its with effort coordinated a in emissions 2 Energy consumption per unit of transport volume in fiscal Toppan Toppan Logistics will further improve transportation - effi To reduce loss and waste, Toppan will take extensivetakewill stepswaste,reduceandlossToppan To Improving Transport Efficiency in Logistics Efficiency Transport Improving Toppan Toppan Logistics Co., Ltd., the logistics specialist for Toppan Group, is the reducing the energy consumption per unit of transport volume by company vehicles and the volume of CO Note: Group companies. Group kL/millionlesston-kilometers,64.9 0.2%was was 2011 which than the fiscal 2010 level and short of the 1% target for the CO year. the fiscal 2010 level. ciency by optimizing transportation conditions in fiscal 2012 to accomplish the targets for the year. in an effort to streamline equipment operations in fiscal 2012 by further upgrading energy control systems. The Companymake efforts to replace will existing air also conditioners, refrigerating machines, boilers, and other machines with high-efficiency energy other and lights LED more install to alternatives, devices, and to use more renewable energies such as solar power. ) ) n) n) ar ar ye ye 20 80 60 40 00 0 5 ye ye 1. 0. 0. 0. 0 0. 20 15 10 illion illion ﬁscal ﬁscal ( ( /m 6 0 2 J/m 11 11 75 .2 O ,89 (G 695 0. 17 20 20 15 -C

(t on s ti s s sale of sale nit of consump emission 3 emission control from 2 2 10 10 74 2 r u 589 and other greenhouse nit .0 , O 2 72 0. 17 20 20 pe 16 r u pe Energy emissions in fiscal 2011 were 2 P. 48]). On the manufacturing front, front, manufacturing the On 48]). P. 8 90 5 on 09 09 74 .9 ti sC 71 0. 6,3 16 20 20 1 emission consump 2 Toppan undertakes initiatives aimed at mitigating global warming, building a recycling-oriented society, preventing preventing society, recycling-oriented warming, building a at mitigating global initiatives aimed undertakes Toppan and conserving biodiversity. chemical substances, pollution, controlling Toppan definesToppan its Eco-protection Activities as activities to minimize the environmental burden associatedoperations. corporate with

CO Q 0 Energy 82 1 08 08 71 .3 ,1 ) Q 75 0. 2 16 20 20 17 CO t- GJ)

Emissions 0 0 0 0 0 0 0 2 Through Through these efforts, CO Toppan engaged in diverse activities to cope with the power power the with cope to activities diverse in engaged Toppan 20 50 30 60 90 000 000 000 000

, , , 000 000 Points Developing Energy-saving Activities Developing Energy-saving 7, 1, 1, , , 21 14 28 (1 (1 a per-unit-of-sales basis to a total-emission basis in order to better control the emissions of CO the Company shifted production to other areas in Japan and in Japan to and the other Company areas shifted production adjusted working hours as a means of controlling power demand. the peak gases. Under the renewed target, the Company has reshaped reshaped has Company the target, renewed the Under gases. fiscal 2011. from its energy-saving initiatives shortageinEast Japan inthesummer of2011 after theGreat East Japan Earthquake. LED lights, heat-shield and heat-shield window films coatings, were introduced, along witha for place in been have that practices energy-saving of number years (such as the turning out of unnecessary lights, reviews of preset temperatures for air-conditioners, and the installa- [➞ curtains” “green of tion Toppan has Toppan shifted its target on CO TOPPAN CSR REPORT 2012 TOPPAN CO Energy Consumption Mitigating Global Warming and Saving Warming Mitigating Global Energy Eco-protection Activities Eco-protection reduced reduced to 695 kilotons, below the target of 740 kilotons for the year. Toppan will reinforce its energy-saving activities to reliably accomplish its medium-and-long-term environmental target in the years to come.

The Environment 42 The Environment 43

1 2 — — fuel Feed RPF* materials materials materials Roadbed Roadbed Neutralizer Neutralizer Chip, paper Recycled oil, Metal materials Glass materials Recycled paper Plastic materials, Primary Reusage Rate 97.9% 99.8% 99.9% 80.0% 76.6% 99.9% 99.1% 99.2% 99.5% 97.9% 94.9% 82.2% 99.4% Recycling Recycling TOPPAN CSR REPORT 2012 TOPPAN 2.1% 2.1% 1.0% 0.7% 0.3% 4.5% 2.7% 2.7% 0.2% 0.1% 73.5% 10.1% Ratio 100.0% 781 482 204 5,571 5,566 2,794 1,832 7,274 7,113 27,032 11,941 197,060 267,650 (tons) Waste Discharged Moving forward, the Company will intensify the control of Waste Type of Type Material recycling: Defined byToppan as “the methods other than thermal recycling) to recycling materials” (refers reuse of waste as raw RefusePaper Plastic& Fuel (RPF): Solid fuel primarily made from refuse paper and plastic waste Other Waste alkali Waste metal Wood Wood waste Cinder Glass chip Waste paper Waste plastic Waste acid Waste oil Waste Sludge waste Food Total for waste plastics by separating refuse and processing com- processing and refuse separating by plastics waste for the posite to plastic reduce into pellets and has endeavored discharge of waste acids and alkalis by chemical treatments. applying internal sites. non-production other and offices from discharged waste Effective from fiscal 2012, the ToppanUnder sites.” “zero-emission approving for criteria detailed has established more zero-emission a as qualified site operational an criterion, former higher setting By over. or 98% of rate recycling a had it if site targetsfor fiscal 2012 onwards, the Company will strengthen and recycling. to waste discharge reduction related its efforts Fiscal 2011 Results of Waste Discharge and Recycling Discharge Fiscal 2011 Results of Waste Toppan has worked to increase the Toppan material recycling rate* *1 *2 ) ) ) ) e) ar ar ar ns 0 5 ye ye ye to 25 20 15 10 000 fiscal fiscal fiscal ( 1, ( ( 6 e discharg 99 .4.4 0. .5 11 11 11 st 6565 6 6 91 9999 7. 7. 0.0. 20 20 20 l wa 26 26 e) ta / to e disposal st e discharg wa st 6 cycling 55 .3.3 0. .5 10 10 10 6666 88 re 91 9999 l wa 7.7. 0.0. 20 20 20 landfill ta 2727 erial at / to Final (m Q ing l te yc ra e( ec 9 9 9 (r .4 .0.0 0. 09 09 09 70 70 55 te 9999 92 1.1. 0. 0. 20 20 20 cycling ra 2828 re e discharg ing l st yc erial t ec l wa Ma ta To 6 n) 99 88 .0 1. Q 08 08 08 7171 8 8 ye 93 98.98. 0.0. 3. 3. 20 20 ) 20 31 31 ns illion to m 0 0 2 4 6 0 0 8 0 0 0 0 0 70 92 94 98 96 1. 0. 0. 0. 0. 21 14 10 28 35 )R 000 Reducing and Recycling Waste Reducing and Recycling , ons/ (% (1 (t Waste Discharge Per Unit of Production Value Discharge Per Unit of Production Waste Total Waste Discharge and Final Landfill Waste Disposal Discharge and Final Landfill Waste Total Recycling Rate and Material Recycling Rate Waste Waste paper derived from operational sites primarily in the makes fields Environment Living and Networks & Information up the largest portion (74%) of the total waste discharged at sites. This Toppan is followed by waste plastics from plants in the Living Environment field and wastesuch acidsas waste andetchant alkalisfrom plants in the Electronics field. In a drive to use limited resources more effectively, Toppan has Toppan effectively, morelimitedresources use to drive a In striven to reduce the discharge of waste and other types of environmental burden, press ahead with recycling, and con- waste treatment. duct appropriate Building a Recycling-oriented Society Building a Recycling-oriented ) - ar e l ye ta leas To re 2 3 0 11 fiscal ( 00 20 34 7, 2, 20 l pollution stipu pollution nsfer ta To tra 4 l ta To handling 1 9 9 10 11 39 3, 8,68 20 0 0 0 s) 50 50 000 000 7, 2, 5, 0, on 1 (t Chemical Substances Designated Law* under the PRTR ) x ar SO ye 7 11 fiscal ( 27 x 12 20 NO 3 Wastewater Wastewater recycling systems have been introduced preventive taking been has Toppan pollution, soil Regarding Preventing Water and Soil Pollution and Water Preventing 7 10 lated by the revised Water Pollution Control Law of Japan. Pollution Control Water lated by the revised To prevent water To has pollution, installed Toppan wastewater con- water specific with cope to designed facilities treatment conditions at individual plants. sumption and pollutant at Electronics plants that discharge amounts. effluents By recovering in and reusing significant wastewater via these systems, the plants have been reducing the levels of water discharge. consumption and effluent facilitystructuresforregulatoryregime the onbasedmeasures groundwater of prevention the for methods and Controlling Chemical Substances Controlling In fiscal 2011, Toppan continued reinforcing control the of Release Pollutant the under designated substances chemical and Transfer Register (PRTR) law the amounts of of Japan these substances and handled. Total handling, reducing release, and transfer were all decreased from the fiscal 2010 levels through the use of alternative substances, refinements of usage methods, and the con- implementationthe reinforce consistently to ofstrive will other Toppan measures. control of chemical substances. trol 30 11 20 2 09 Emissions* 31 - 2 12 20 2 08 32 14 20 0 0 0 0 50 s) 15 10 20 on (t NOx and SOx* ) e ar ye luen To 5 7 11 fiscal 88 ( 31 4, 20 Cs 1 VO 6 27 10 37 5, 20 0 2 09 14 41 8, 20 1 6 32 2 08 7, 36 20

0 0 0 For ozone-layer protection, all equipment that uses speci- uses that equipment all protection, ozone-layer For s) 50 Emissions into the atmosphere are calculated in conformance with the standards established by the Japan Federation of Printing Industries (JFPI) and the the and (JFPI) Industries Printing of Federation Japan the by established standards the with conformance in calculated are atmosphere the into Emissions Japan Industries The Electronics and Association data Information (JEITA). for Technology fiscal 2010 have been adjusted based onrevised methods for calculation. Facilitiessubject to the calculation of NOx and SOx emissions are limited to those responsible for smoke and soot specified adjusted. therefore Law of Japan. The data for fiscal 2010 and earlier are under the Air Pollution Control 50 000 000

Preventing Atmospheric Pollution and Protecting the the Atmospheric Pollution and Protecting Preventing Ozone Layer 7, 2, 5, 0, on 1 (t fied chlorofluorocarbons at Toppan plants is controlled in con- in controlled is plants Toppan at chlorofluorocarbons fied formance with the applicable laws and regulations. To prevent atmospheric pollution, Toppan controls boilers and and boilers controls Toppan pollution, atmospheric prevent To otherequipment responsibleswitching smokesootbyforand managingfuelsandoperations underappropriate combustion conditions. In fiscal 2011 the Company continued enhancing the controlling precisely by treatment effluent-gas in efficiency treatment equipment and replacing existing equipment with high-efficiency alternatives at facilities subject to- therequire Japan. of Law Control Pollution Air the under stipulated ments atmospheretolueneinemissions theandinto VOC result, a As fiscal 2011 were bothreduced compared with the fiscal 2010 atmospheric controlling thoroughly on keep will Toppan levels. pollutants in the coming years. TOPPAN CSR REPORT 2012 TOPPAN *2 NOx: Nitrogen oxides; SOx: Sulfur oxides *2 NOx: Nitrogen *3 in the counting unit. excluded because of a difference *4 Dioxins are *1 VOC and Toluene Emissions into the VOC and Toluene Atmosphere* ing its environmental burden. The Eco-protection Promotion Committee at each site setsBy require. standards in-house regulatory the than stringent control more levels standards at reduce to work sites Toppan standards, these with complying pollution at the sites. and prevent burden environmental Every Toppan site ascertains actual conditions by measur Preventing Pollution Preventing

The Environment 44 The Environment 45 - TOPPAN CSR REPORT 2012 TOPPAN Replacement of effluent-gas treatment equipment Emergency-preparedness drill to cope with a hypothetical leakage scenario Toppan has therefore prepared oil absorbents, sandbags, oil absorbents, sandbags, prepared has therefore Toppan Communication with Surrounding Communities Surrounding Communication with Emergency Responses Communities around Toppan’s plants filedand inquiries at 13 nine domestic sites complaints in fiscal 2011, indicat- ing that many stakeholders were inconvenienced. Many of the complaints and inquiries concerned noise. reviewed Toppan the control has of facilities and equipment responsible for noise and either installed isolators or assessedinstall plansthem. Further, the to Company has stepped up routine inspections and other measures to prevent the recurrence of noise-related problems. Toppan will continue engaging in environmental management through dedicated communica- communities. in surrounding tions with residents trucks conveyTank chemical solvents into the plant premises every day and transfer the solvents to storage tanks. Leak- of soil and pose the risk the operations accidents during age water pollution. sol- of outflow the prevent to safeguards necessary other and produc during accident or emergency an of event the in vents been also have drills Emergency-preparedness operations. tion prevent Companyformulatesto proceduresThe regularly. held environmentalpollutionemergencies.duringeffectivenessThe of the procedures is verified during the drills and defective reviewed. points are Current Progress* Current - Remediation work completed Continuously monitored Groundwater pumped and pumped and Groundwater purified; continuously monitored Remediation work ongoing Remediation work ongoing Detail Soil pollution by fluorine and its compounds Groundwater pollution by VOCs pollution by VOCs Groundwater (Voluntary investigation of well water on the plant premises) Groundwater pollution by hexavalent pollution by hexavalent Groundwater and toluene chromium Soil pollution by hexavalent and lead chromium Soil pollution by hexavalent and lead chromium

Operational Site Regarding Regarding the pollution of soil and groundwater - environ Compliance with Regulatory Standards in Fiscal 2011 in Fiscal Standards Compliance with Regulatory (Shibata City, Niigata) (Shibata City, Niigata Plant Asaka Plant Saitama) (Niiza City, Itabashi Plant Itabashi Plant Tokyo) (Itabashi Ward, Itabashi Plant Minami I bldg. Tokyo) (Itabashi Ward, Ebie Plant Osaka) (Osaka City, Purification of Soil and Groundwater Pollution Purification of Soil and Groundwater In Japan, one production site recorded VOC emission levels exceedingregulatorythe standards undersetPollutionAirthe the exceeding levels odor recorded sites two and Law Control limits set under the Offensive Odor Control Law. Four - pro duction sites, meanwhile, excessive recorded levels of BOD, concentration hydrogen-ion and material, extractable n-hexane regulatorytherelativewaterstandardscontaminantsto for set under the Water Pollution Control Law and Sewerage Law. Regarding noise, nine production sites exceeded regulatory standards set under the Noise Regulation devising Law. countermeasures, (Toppan including is investigations into - responsi the Toppan’s is noise the whether determine to sources imme took Company The others.) of responsibility the or bility Approach to Environmental Compliance to Environmental Approach diate corrective measures for every case, including steps to revise the control methods for equipment. Since implementing these corrective measures, Toppan has reviewed control procedures and taken necessary actions to reliably preventrecurrences. fiscal In2011, each plant in-house set standards none that ensure to effort an in standards existing reviewed or would be exceeded. standards of the regulatory the in shown countermeasures the taken has Toppan ments, table below. *As of June 2012

® Satoyama*,” and Big Autumn Harvest Festival in Miwa Satoyama Expedition to Explore Living Creatures in Tokyo’s Tokyo’s in Creatures Living Explore to Expedition Umi-no-mori (Sea Forest) Promoting the Conservation of Forests in Japan the Conservation of Forests Promoting Joining in Hands-on Education on Forestry established by Japan Business Initiative for Biodiversity (JBIB) established by Japan Business Initiative for Biodiversity Satoyama: A richly biodiverse habitat within a landscape carefully man- reservoirs, paddies, rice forestry, as such uses mixed for humans by aged grasslands, and so on. Based on a set of Guidelines for Sustainable Business Site Management Site Business Sustainable for Guidelines of set a on Based Among the various forest engages in domestically, the conservation employees of the Sakai Plant activitiesin Toppan Osaka continue participating in the “Volunteer spon- activity Tree-plantingtree-planting a Forests,” Symbiotic for Program OSAKA. organization GREEN BAY by the nonprofit sored Employees and their families took part in the Umi-no-moriForest),”“Expedition (Sea Tokyo’s LivingExploreinCreatures to the “Big Autumn Harvest Festival in Miwa other events sponsored by an - pro educational hands-on more on carry will environmental Toppan “SHU.” NPO called grams to provide opportunities for environments communionand will duplicate these programs withmoreatsites forest Japan. across * versity, the Technical Research Institute and four other opera- other four and Institute Research Technical the versity, monitor to method* assessment land-use a applied sites tional organisms within their premises and to assess the degree to which their land-use methods contributed to biodiversity. will Toppan examine how to implement conservation plans, including planting designs that the and sites operational surrounding systems ecological the coexist harmoniously with spaces within the site premises. installation of biotope * Blue dragonfly snails Black freshwater

Silver-washed fritillary Silver-washed operational sites Toppan’s found in Creatures Green Green space at an operational site (Technical Institute) Research lady beetle Cream-spotted - - Logo for forest-thinning products A logo designated by Coop of Federation National the For for Associations erative Cartocan est Owners under the guidance of the Forest Agency and Ministry of Agriculture,

Improving Land-use Practices at Operational Sites Improving Forest-thinning Operations Forest-thinning Actively Utilizing Lumber Harvested from Actively Utilizing Lumber Harvested from Establishing a Set of Paper Procurement Guidelines Paper Procurement Establishing a Set of Forestry and Fisheries of Japan. The logo is dis is logo The Japan. of Fisheries and Forestry playedonproducts developed with the sundry - prolif wider and awareness spreading of aims eration of forest-thinning operations, - promot ing the use of lumber harvested from forest- thinning operations, and consumers offering a wider range of eco-options. In an effort to facilitate land-use practices supportive of biodi- of supportive practices land-use facilitate to effort an In Toppan encourages Toppan the conservation of forests in Japan by opera- forest-thinning from harvested lumber utilizing actively by trees between spaces keep to process a is Thinning tions. the of benefits ecological The trees. grown poorly out clearing conserve and forests sound nurture to help operation thinning beverage con- paper-based Cartocan, Toppan’s biodiversity. domestic 30% than more using pulp from produced is tainer, opera- forest-tinning from harvested lumber including lumber, - prod forest-thinning the display to authorized is Toppan tions. uct logo on its Cartocan. - Guide Procurement Paper the established Group Toppan The September in Resources Forest of Use Sustainable the for lines 2011. These guidelines stipulate that the Group must verify pulp, and other materials for paper the legality of the lumber, itprocures and take steps to increase the use of paper types supportive by more produced of processes the sustainability of forest resources, such as recycled paper, forest-certified opera- forest-thinning from pulp with made paper and paper, tions. Under these guidelines, sales Toppan departments will a with produced paper customers their offer and recommend of biodiversity conservation. higher awareness TOPPAN CSR REPORT 2012 TOPPAN Promoting the Conservation of Biodiversity the Conservation Promoting

The Environment 46 The Environment 47 - - )

, etc. n l gas, oil, e SOx ra de ) st ru (LCAs) for tmospheric 2 (c (NOx, Resource consumption Wa etc. natu A pollutio ) g l in ilm , etc. F 2 rm under the guidance of of guidance the under O Globa 1 GL wa (C TOPPAN CSR REPORT 2012 TOPPAN ) il ) n g l , etc. e m fo in st , etc. 2 rm , SOx O Wa Globa wa pollutio tmospheric (C Aluminu A (NOx

l gas, oil, ra de ) ru Resource consumption (c natu etc. 0 0 20 40 80 60 In fiscal 2011 Toppan carried out a comparative assessment comparative a out carried Toppan 2011 fiscal In Toppan will apply LCAs to its environmentally friendly 10 P. 39) and P. performing life cycle assessments* Life cycle assessment (LCA): An assessment method for quantifying resourcesinputandthe environmental burdenoutput all stagesat the of manufactur to through procurement material raw from cycle, life product ing, distribution, use, disposal, and recycling assess The (baseline). 100 = foil aluminum of impact environmental The manufacture. film to collection material from stages cycle life covers ment ➞ LCA of GL Film* Environmental impact (per unit area) *1 LIME: See page 39 for details. *2 Life Cycle Assessment of Products Life Cycle Assessment From fiscal 2008, Toppan has been makingLIME* on based assessments impact environmental *3 Toppan products. Toppan between GL Film and aluminum foil and reported the results Japan. Assessment, Cycle Life of Institute the of meeting a at GLFilm isanenvironmentally friendly alumina deposition PET filmmanufactured byToppan. The film holds an advantage overordinary aluminum foil byvirtue ofits lower consumption ofaluminum, ametal resource. The comparative assessment proved that GL Film has a 61% lower environmental impact than aluminum foil over the stages from material collection to film manufacture. designs for developing and modifying products. sity. sity. LIME quantitatively assesses the environmental impact associated with activities for producing individual products. comprehensively for model a formulate to aims Company The assessing the environmental impact of production activities( Mr. Norihiro Itsubo, Associate Professor of Tokyo City Univer City Tokyo of Professor Associate Itsubo, Norihiro Mr. Friendly Products Easy separation and disassembly

Reduced energy Reduced energy consumption in production Reduced release of chemical substances Points for Environmentally Points for Environmentally 14. Biodegradability 1. Use of safe materials materials 2. Use of recycled 3. Resource-saving 4. energy 5. Use of recovered 6. Reduced solid waste 7. Energy-saving 8. life 9. Long product 10. Reusability 11. Recyclability 12. Suitability for disposal 13. Toppan’s 14 Environmental Environmental 14 Toppan’s Labeling Type II Labeling Type Toppan has assessed the environmental impact of products based on LIME. based on impact of products assessed the environmental has Toppan Toppan has registered a total of 105 environmentally friendly products. friendly of 105 environmentally a total registered has Toppan

ISO 14021 Environmental Degradability Recycling rate reduction Resource energy Recovered Reduced solid waste Energy-saving Long-life products Reusable/refillable Recyclable Easy detachment design Stage Points Life Cycle Life Cycle Use After use Production Production and distribution Toppan’s 14 EnvironmentalToppan’s Points and Environmental Considerations Environmental The companies of the Toppan Group, like Toppan itself, have have itself, Toppan like Group, Toppan the of companies The the conserving to geared activities corporate with ahead forged and produces, develops, company Each environment. global marketseco-friendlyEco-productown itswithline products in formulated Standards in consideration of services, products, friendly environmentally of sales total The demands. social and productssatisfying the criteria ofindividual Group companies anditself Toppan in environment-related businesses stood at 241.1 billion yen in fiscal 2011. Environment-related Businesses at Group Businesses at Group Environment-related Companies Toppan Toppan develops eco-friendly products in accordance 14 Environmental Points based on ISO Toppan’s with14021 and eachdivision’s own set of criteria. Newly developed products meeting the criteria are certified andregistered as- “environ mentally friendly products.” productsTwo were registered in March of end the of as 105 fiscal to 2011, bringing total up the 2012. Toppan will press on with environmental conservation environmentally of sales and development the through activities friendly products. Developing and Certifying Environmentally Certifying Environmentally Developing and Friendly Products Eco-creativity Activities Eco-creativity Award for individuals from an conservation association in Kaetsu, Niigata environmental One of the employees at the Niigata Plant of Toppan Elec- Toppan of Plant Niigata the at employees the of One Toppan will help realize a sustainable society by - press Major Environment-related Awards Major Environment-related The Itabashi Plant won the grand prize in the group category category group the in prize grand the won Plant Itabashi The at the Itabashi Green Curtain Contest held by Itabashi City, The plant was awarded Tokyo. for building an approximately composed curtain” “green 3-to-4-meter-high 70-meter-wide, of bitter melon plants. This 2011 was twice grand the size of the green curtain the plant curtain built in fiscal for fiscal2010. tronics Products Co., Ltd. was selected by an environmental conservation association in Kaetsu, a region in the north of Niigata Prefecture, as the fiscal 2011recipient of the asso- award for ciation’s individuals who have made distinguished environmental contributions. The association dedicated his of recognition in winner award an as employee selected this of release the reduce to initiatives conservation environmental upgrade law, PRTR the under designated substances chemical risk control, and foster communication with residents from communities. surrounding ing ahead with its and energy various saving other measures conservation activities in the years ahead. environmental Itabashi Green Curtain Contest (Itabashi Plant, Tokyo) Eco-Products 2011 Eco-Products Toppan presented its eco-friendly products at Eco-Products 2011. at Eco-Products eco-friendly products its presented Toppan to facilitate communication with stakeholders. communication with to facilitate in Japan issue Site Eco Reports sites Toppan

In a briefing held on August 26, 2011, the plant presented presented plant the 2011, 26, August on held briefing a In

Points Presenting at Various Exhibitions at Various Presenting Meeting Residents to Report Environmental Activities Meeting Residents to Report Environmental Issuing Site Eco Reports Toppan Toppan exhibited and presented existing and newly developed eco-friendly products at the Eco-Products 2011 event Big Sight. at Tokyo products manufactured at the including works to install environment- efforts, environmental plant and examples of oriented equipment. its The Kawaguchi Plant in Saitama Prefecture invites residents fromsurrounding communities every year to brief them on its and take them on plant tours. efforts environmental Toppan’s ISO 14001-certifiedISO issuing been have Japan in sites Toppan’s Site Eco Reports to disclose environmental burden data and As 2000. fiscal sinceactivitiesenvironmental their of details the periodiccommunicationsmunicipalities localtowardsdirected residentsandsurroundingin communities, 33reports from26 issued in fiscal 2011. sites were TOPPAN CSR REPORT 2012 TOPPAN Communication outside the Company Communication Environmental Communication Activities Communication Environmental Meeting to report environmental activities environmental Meeting to report (Kawaguchi Plant, Saitama) Site Eco Reports (in Japanese)

The Environment 48 Independent Assurance

Toppan began aggregating some of its environmental perform- There are still limits, however, in the disclosure of personnel- ance indicators using a new information system introduced related indicators, which generally cover only Toppan Printing in fiscal 2011. There were no major problems, even though Co., Ltd. We must call attention to this restriction on disclo- 2011 was the first year the system was used. We believe that sure as a continuous challenge for the Company to address. this new system has enabled Toppan to compile data more Given that the Company’s employees account for less than effectively. Henceforth, system implementation will make it 20% of Group employees on a consolidated basis, we believe easier for the Company to analyze rising and falling perform- that Toppan needs to expand the scope and boundary of ance values based on comparisons with earlier data. Toppan data disclosure—incrementally if necessary—through discus- plans to incorporate other major environmental performance sion with Group companies and relevant departments at the indicators into the system step by step. We expect the com- Company in the years ahead. ing incorporation will streamline data aggregation and further Shinichiro Akasaka improve accuracy. KPMG AZSA Sustainability Co., Ltd.

Indicators in this Report Assured by an Independent Assurance Provider Pages Indicators Assured by an Independent Assurance Provider Number of Recruits; Female Managerial and Supervisory Staff; Employment of Persons with Disabilities; 21 Human Rights number of retired employees; number of reemployed employees Number of Employees; Reasons for Leaving; Average Annual Salary; Annual Paid Leave Used; Employees 22 Taking Maternity or Childcare Leave Rates of decrease in the average hours of overtime worked (in fiscal 2007, fiscal 2011); number of employees 23 who have resigned from the Company and registered to join the rehiring system for employees who resign Labor Practices from the Company for the delivery and upbringing of children 24 Occupational Safety and Health Number of employees who participated in the Toppan Business School; number of employees who 25 participated in basic, Company-wide education (via e-learning programs); number of employees who participated in selective training on globalization 26 Number of Conduct Guidelines Promotion Leaders; ratio of female Leaders Number of employees who participated in training sessions for Conduct Guidelines Promotion Leaders; 27 number of employees who participated in the e-learning-based education program on compliance with the Fair Operating Practices Antitrust Laws of Japan Number of companies reassessed by Toppan in relation to the Group’s CSR procurement initiatives; number 28 of companies that participated in briefing sessions on the Group’s CSR procurement initiatives Number of employees who participated in training sessions for internal auditors; results of the audits 30 Consumer Issues conducted using the quality audit checklist Results of the progress towards the environmental targets for fiscal 2011 37 Environmental Targets and Results *Only the numerical results are assured. 38 Major Environmental Burdens by Business Field in Japan (INPUT/OUTPUT data) Toppan’s Environmental Burden 39 Ratios of Domestic and Overseas Environmental Burdens Environmental Management 41 Number of internal environmental audits conducted; Fiscal 2011 Results of Environmental Education Activities Energy Consumption; CO Emissions; energy consumption per unit of transport volume and CO emissions 42 2 2 in logistics Recycling Rate and Material Recycling Rate; Total Waste Discharge and Final Landfill Waste Disposal; Waste 43 Discharge Per Unit of Production Value; Fiscal 2011 Results of Waste Discharge and Recycling Eco-protection Activities VOC and Toluene Emissions into the Atmosphere; NOx and SOx Emissions; Chemical Substances 44 Designated under the PRTR Law Compliance with Regulatory Standards in Fiscal 2011; number of complaints and inquiries from communities 45 around Toppan’s plants; Purification of Soil and Groundwater Pollution Number of newly registered environmentally friendly products; total sales of environmentally friendly products 47 Eco-creativity Activities at Group companies and Toppan itself Some data in the “CSR Report 2012: Detailed Data” posted on the Toppan website are also assured by the assurance provider.

Level of Conformance with the GRI Sustainability Reporting Guidelines 2006

This report is at an application level B+ as Report Application Level CBC+ BA+ A + defined by the GRI Sustainability Reporting Report on: Report on all criteria Same as requirement Guidelines 2006 (G3 Guidelines). 1.1 listed for Level C plus: for Level B G3 Proﬁle 2.1-2.10 1.2 Disclosures 3.1-3.8, 3.10-3.12 3.9, 3.13 *Please access http://www.toppan.co.jp/ OUTPUT 4.1-4.4, 4.14-4.15 4.5-4.13, 4.16-4.17 ed ed ed english/csr/ for the GRI content index. s Not Required Management Management re G3 Management Approach Disclosures Approach disclosed Approach for each Indicator for each Indicator Disclosures Category Category nally Assur nally Assur nally Assur OUTPUT Exter Exter Exter

rd Disclosu Report on a minimum Report on a minimum of Report on each core of 10 Performance 20 Performance G3 and Sector Indicators, including at Indicators, at least one Supplement* Report Report G3 Performance least one from each of: from each of: economic, Report indicator with due Standa Indicators & Sector social, economic, and environment, human regard to the Supplement environment. rights, labor, society, materiality principle

Performance Indicators OUTPUT product responsibility. by either: a) reporting on the indicator or b) explaining the reason for its omission. *Sector supplement in ﬁnal version

TOPPAN CSR REPORT 2012 49 Independent Assurance Report

50 TOPPAN CSR REPORT 2012 Group Business Structure

Customers

Toppan Group Structure

Manufacturing Companies Manufacturing and Sales Companies Sales Companies Toppan Communication Products Froebel-Kan Co., Ltd. Infor Co., Ltd. Toppan Forms Co., Ltd. Total Media Development Institute

m Toppan Graphic Communications Tosho Printing Co., Ltd. Co., Ltd.

& Ne ation Co., Ltd. 3 other companies Toppan Travel Service Corp. 8 other companies Toppan Printing Co. (America), Toppan System Solutions Co., Ltd. Toppan Forms Tokai Co., Ltd. Inc. (USA) Tokyo Shoseki Co., Ltd. 10 other companies Toppan Printing Co., (H.K.) Ltd. 26 other companies

tw (PRC) T.F. Company, Ltd. (PRC) ∗Toppan M&I Co., Ltd. orks 8 other companies Toppan Printing Co., (Shenzhen) To 8 other companies Ltd. (PRC) ppan

58 Data Products Toppan Forms ∗ 13 other companies Toppan Leefung Pte. Ltd. Ltd. (Thailand) (Singapore) % 9 other companies ∗Toppan Leefung Printing (Shanghai) 28 other companies Co., Ltd. (PRC) 1 other company Pr inting Co

Manufacturing Companies Manufacturing and (Manufacturing Ltd. ., Sales Company Sales Companies Toppan Packaging Products Toppan Cosmo, Inc. Co., Ltd. Toppan TDK Label Co., Ltd. Living Toppan Functional Products Toppan Containers Co., Ltd. Co., Ltd. Tamapoly Co., Ltd. En Toppan Plastic Co., Ltd. Toppan Prosprint Co., Ltd.

vironment Toppan Packs Co., Ltd. 2 other companies 8 other companies ∗Toyo Ink SC Holdings Co., Ltd. Toppan Yau Yue Paper Products 3 other companies Ltd. (PRC)

P.T. Toppan Printing Indonesia an 25 2 other companies (Indonesia) d sales % Toppan Interamerica Inc. (USA) 7 other companies compa

Manufacturing Companies Manufacturing and ny Sales Companies

Sales Companies ) Toppan Electronics Products Toppan Electronics (Taiwan) Co., Ltd. Co., Ltd. NEC Toppan Circuit Solutions, Inc. 3 other companies

Electronic Toppan TOMOEGAWA Optical Toppan CFI (Taiwan) Co., Ltd. Products Co., Ltd. Toppan Photomasks, Inc. (USA) 5 other companies 9 other companies ∗Panasonic Industrial Devices ∗Advanced Mask Technology s 17 Optical Films Co., Ltd. Center GmbH & Co. KG 1 other company (Germany) % 1 other company

Products Materials Service

Notes: INo symbol: subsidiary—165 companies *: affiliates—29 companies (as of the end of March 2012) IToppan Group’s business activities are usually divided into five fields. Here, however, they are divided into three fields based on the current sizes of the businesses and other factors. IThe composition ratios given under each business field are percentages of overall net sales contributed. (“Net Sales by Business Field” are shown on page 5.) IToppan Forms Co., Ltd., Tosho Printing Co., Ltd., and Toyo Ink SC Holdings Co., Ltd. are listed on the first section of the Tokyo Stock Exchange. IToppan operational sites span 15 countries and regions, including Japan.

TOPPAN CSR REPORT 2012 51 CSR REPOR

T 2012 CSR REPORT 2012 Report on Corporate Social Responsibility Activities

As a member of GPN, we incorporate Green Purchasing in our printing services.

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