CSR REPORT 20 REPORT CSR

CSR REPORT 2014 1 4 Report on Corporate Social Responsibility Activities

http://www.toppan.co.jp/english/ © TOPPAN 2014.10 K I Printed in Japan IEditorial Policy IReliability Toppan prepares this corporate social responsibility (CSR) report in the hopes of KPMG AZSA Sustainability Co., Ltd. provides independent assurance for this report. encouraging dialogues with a wide range of people, especially those who have an As a testament to the reliability of the sustainability information presented in the interest or stake in Toppan’s CSR activities. Toppan reports its activities in line with report, Toppan is authorized to attach the following mark. Any report bearing this the seven core subjects set under the International Organization for Standardiza- mark meets the Sustainability Reporting Assurance and Registration Criteria estab- tion (ISO) 26000, an international standard on social responsibility formulated by lished by The Japanese Association of Assurance Organizations for Sustainability multiple global stakeholders. Information (http://www.j-sus.org/).

IPeriod Covered This report mainly covers activities in fiscal 2013 (from April 2013 to March 2014), though information on prior and later years is also included in parts.

IScope and Boundary of this Report IEye-friendliness and Readability In principle, this report covers the CSR activities of Toppan Printing Co., Ltd. (“the This report considers eye-friendliness and readability in accordance with Toppan’s Company”) and Group entities consolidated for accounting purposes. Most of the in-house guidelines. It also incorporates universal-design displays for as many dif- information on personnel applies to personnel within Toppan Printing Co., Ltd., ferent types of people as possible, regardless of individual differences in color per- the parent company. The scope of the environmental performance data on pages ception. The universal design in this report has been reviewed and certified by the 34-41 includes Toppan Printing Co., Ltd. and 18 domestic manufacturing subsid- Color Universal Design Organization (CUDO), a nonprofit organization, on entrust- iaries subject to the Company’s environmental targets. These subsidiaries share ment by Toppan. important roles in the Company’s environmental conservation efforts. The envi- ronmental performance data of NEC Toppan Circuit Solutions, Inc. has been IURLs for Relevant Information ­excluded since October 2013, when all shares of that company were sold. The •CSR information: http://www.toppan.co.jp/english/csr/ environmental performance data of the Toppan Group, including the overseas (If erroneous entries or misprints are found after CSR reports are issued, the related subsidiaries, are reported in CSR Report 2014: Detailed Data. information will be shown here.) •IR information: http://www.toppan.co.jp/english/ir/ ICSR Report 2014: Detailed Data •Corporate governance reports: http://www.tse.or.jp/listing/corpgov/ (in Japanese) A PDF file with detailed and reference data not shown in this report is download- •Financial statements: http://disclosure.edinet-fsa.go.jp/ (in Japanese) able from Toppan’s CSR website: http://www.toppan.co.jp/english/csr/. Publication Dates (English version) ISelecting the Information Presented in this Report Previous report: October 2013 In choosing the information for this report, Toppan assesses the “materiality” of Current report: October 2014 the information for society and the Company itself. Toppan considers the following Next report: October 2015 (planned) points in particular: Opinions gleaned from dialogues; information from NPOs, NGOs, CSR-related organizations, and news agencies; responses to its CSR Contact Information report questionnaires; and questionnaire topics from third-party organizations. CSR Promotion Department, Public Relations Division IGuidelines and Standards Considered Toppan Printing Co., Ltd. (Tokyo, Japan) •The United Nations Global Compact Email: [email protected] •ISO 26000 •Global Reporting Initiative (GRI) Sustainability Reporting Guidelines 2006 •Environmental Reporting Guidelines (fiscal year 2012 version) from the Ministry of the Environment of Japan

The United Nations Global Compact is a voluntary policy initiative for businesses and organizations to enlist their participation in the establishment of a globally recognized practical framework under which every business and organization commits to the vision of sustainable development by implementing responsible, creative leadership initiatives and acting as responsible members of society. Toppan participates in the United Nations Global Compact, supports the 10 principles of the Global Compact in the four areas of human rights, labour, environment, and anti-corruption, and implements these principles in its own corporate activities.

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

Group Business Outline 2 Executive Message 4 Toppan’s CSR Activities 6 Special Report 1: Supporting Employees with Children 8 Special Report 2: CSR Procurement: Working with Suppliers to Comply with Global CSR Standards 10 CSR Activity Digest 2013 12

Initiatives at Toppan and the Seven Core Subjects under ISO 26000 14 Organizational Governance 15 Human Rights 18 Labor Practices 20 Fair Operating Practices 24 Consumer Issues 28 Community Involvement and Development 32 The Environment Toppan’s Environmental Activities 34 Environmental Management Activities 35 Toppan’s Environmental Burden and Environmental Impact 36 Eco-protection Activities 37 Eco-creativity Activities / Environmental Communication Activities 41

Independent Assurance 42 Independent Assurance Report 43 Group Business Structure 44

TOPPAN CSR REPORT 2014 1 Group Business Outline

Corporate Profile Group Profile

Corporate name Number of employees The Toppan Group comprises Toppan Printing Co., Ltd. (“the Company”) Toppan Printing Co., Ltd. (nonconsolidated) and 180 related companies (154 subsidiaries and 26 affiliates) engaged in Head office 8,604 (as of the end of March 2014) manifold businesses in three fields: Information & Communication, Living 1, Kanda Izumi-cho, Chiyoda-ku, Number of employees Environment, and Material Solutions. Tokyo 101-0024, Japan (consolidated) The positioning of the Company and related companies in these fields Phone +81-3-3835-5111 48,751 (as of the end of March 2014) is outlined on page 44. Established Capital (nonconsolidated) January 17, 1900 104.9 billion yen President & Representative Director Shingo Kaneko

Business Fields

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

Secure Business Marketing Content Business

Living Environment Material Solutions Providing a wide range of products and services to create living environ- Using printing technologies to develop products related to displays, semi- ments that offer comfort and peace of mind. conductors, functional products, energy, and more.

Display Related Semiconductor Related

Packaging Functional Product and Energy Interior Décor Materials Related

2 TOPPAN CSR REPORT 2014 Net Sales Operating Income or Loss Net Income or Loss (billion yen) QConsolidated QNonconsolidated (billion yen) QConsolidated QNonconsolidated (billion yen) QConsolidated QNonconsolidated

2,000 60 32

45 45.0 24 1,500 1,506.7 1,556.4 1,510.4 1,502.3 1,532.0 38.2 20.6 35.7 18.5 19.2 31.5 32.0 30 16 15.1 1,000 11.7 12.4 12.1 885.9 895.5 849.2 819.9 815.7 15 15.3 8 6.6 7.7 500 4.4 3.0 0 0 0.5

0 –15 –7.1 –8 –3.2 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 (fiscal year) (fiscal year) (fiscal year)

Number of Employees Number of Employees by Business Field (consolidated) QConsolidated QNonconsolidated Material Solutions Company-wide 50,000 48,878 48,751 47,650 48,197 47,872 8,576 positions 1,035 40,000

30,000

20,000

10,000 8,769 8,633 8,508 8,587 8,604 Information & 0 Living Environment Communication 2009 2010 2011 2012 2013 9,156 29,984 (fiscal year)

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

Material Solutions 100 2,000 3.0 352.1 (23%) 1,712.3 1,665.6 1,694.3 1,633.0 80 76.8 1,586.8 72.1 1,500 2.0 68.0 65.0 66.8 60 1.2 1.2 1,000 1.0 0.7 0.7 40 0.2 500 0 20 Information & Living Environment Communication 0 0 −1.0 272.5 (18%) 907.3 (59%) 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 (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 56.1 (4%) 913.1 874.0 864.0 866.2 888.4 193.7 (12%) 28 800 6.0 24.4 23.4 21.4 21 20.6 19.8 600 4.0 2.5 2.7 14 400 1.6 1.6 2.0 0.4 7 200 0

0 0 –2.0 Japan 1,282.1 (84%) 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 (fiscal year) (fiscal year)

Note: The number of employees is the number of employees working at the Group. The number of non-regular employees for fiscal 2013 stood at 7,627 on a consolidated basis (the average number of employees throughout the fiscal year, including part-time workers but excluding temporary staff).

TOPPAN CSR REPORT 2014 3 Executive Message Contributing to Fulfilling Lifestyles

Movements were mixed in the global economy for fiscal nesses. The second is to create new businesses and new 2013. In the U.S., steady personal consumption kept the markets by developing business models that meet the economy on a recovery track. In Europe, however, linger- ever-changing demands of our time using the printing ing uncertainty over the Southern Europe debt crisis thwarted ­technologies we have cultivated since our founding. The hopes for a complete recovery from long-term stagnation. third is to accelerate global business expansion targeting Growth also slowed in China and Southeast Asia. ­sustainable operations by taking advantage of business Japan’s economy moved into a gradual recovery trend. alliances and M&As and by restructuring our sales and The government’s economic policies helped correct the production structures mainly in Asia and other growing drastically elevated yen, while consumer spending and markets. corporate earnings both recovered. Over the longer term, Our business slogan for 2014 is “Full speed ahead— however, pressures such as sharply rising prices for raw Let’s accelerate growth with printing technologies.” We materials and fuel cloud the outlook for the Japanese continue taking on new challenges based on this slogan. economy. By steering growth in the directions mapped out for the In light of this, we have been striving to improve our three management challenges, we are shifting into higher business performance by addressing three management gear to gain momentum for a significant leap forward. challenges. The first challenge is to advance our Group- wide structural reform. Improvements in management ­efficiency will enable us to establish a stronger, sounder To Create Business Opportunities for business structure that will keep us profitable in today’s Faster Growth drastically changing markets and shift our management focus to enhanced value for our corporation and busi- Paradigm shifts in our business environment will bring opportunities for us to grow faster. We define these changes as “three revolutions:” 1) the energy revolution, the change- over from fossil resources to renewable energy; 2) the packaging revolution, the replacement of glass bottles­ and metal cans with new types of packaging across the globe; and 3) the information revolution, the switch from paper- based media to digital media such as the Internet and smartphones. I believe we can exploit the huge opportunities these three revolutions bring by engaging highly diverse human resources and building an environment in which they can fully demonstrate their abilities and skills. At Toppan we do business with companies in every sort of industry. By engaging human resources with greater diversity, we can propose total solutions for the many ­different challenges our client companies face and devise custom-fit solutions to the unique problems individual com- panies come up against. In fiscal 2013 Toppan became one of the “Diversity ­Management Selection 100,” a group of companies selected and awarded by the Ministry of Economy, Trade and Industry of Japan in recognition of their use of diverse human resources to innovate. We will continue pursuing diversity management in the years to come.

4 TOPPAN CSR REPORT 2014 To Be a Company that Grows Steadily childcare leave and improved the system of reduced work- with Society ing hours for employees with childcare responsibilities. A childrearing support program was launched in fiscal 2012 TOPPAN VISION 21 is positioned as the foundation for all to help working parents cope with the stresses of parent- of our corporate activities. This vision consists of a Corpo- ing and to relieve the anxieties of employees on childcare rate Structure (the Corporate Philosophy, the Corporate leave who are worried about their return to the workplace. Creed, and a set of Conduct Guidelines defining the values In fiscal 2013 we invited a lecturer to hold a seminar in and standards we should respect) and business fields this program. A large number of both female and male based on the Corporate Structure. employees engaged in parenting attended. This indicates In striving to make TOPPAN VISION 21 a reality, I am a growing interest in work-family balance among our convinced that we must accomplish the three management employees. challenges and fulfill our social responsibility as a corpora- We have also been facilitating CSR procurement in tion in order to help solve social issues and drive our growth cooperation with business partners in an effort to fulfill our in step with all of society. corporate social responsibilities not only within the Group, The United Nations Global Compact is an invaluable but throughout the entire supply chain. We revised and guideline for us as we undertake our journey towards this renewed the Toppan Group CSR Procurement Guidelines end. Toppan has been participating in the United Nations in January 2014 to work on newly defined issues that our Global Compact and supporting the 10 principles of the customers and international social standards require com- Global Compact on human rights, labour, environment, panies to address. The Basic Procurement Policy was and anti-corruption since September 2006. I will continue revised and the CSR Procurement Standards were reor- espousing the United Nations Global Compact and shap- ganized into two categories aligned with the latest global ing our corporate social responsibility (CSR) activities standards: the Basic Procurement Standards and the accordingly. ­Procurement Standards Concerning Human Rights, Labor, The International Organization for Standardization (ISO) the Environment, and Anti-Corruption. Every business part- 26000 Guidance on Social Responsibility (international ner is asked to comply with the revised guidelines. We, in standard for organizations) was issued in 2010 to provide turn, will collaborate more closely with business partners guidelines with which every type of organization should throughout the entire supply chain to better fulfill our cor- comply in order to operate in socially responsible ways. porate social responsibilities. The standard condenses various social issues to be addressed. Convinced that any help towards solving these issues will bring us closer to implementing the United With Our Stakeholders Nations Global Compact, we incorporated ISO 26000 into our CSR management practices in fiscal 2011 and have At Toppan we would like to continue disclosing information been pushing forward with CSR activities by piecing through this CSR report, one of our most valuable tools for together a clear picture of the social issues we should help communicating with our stakeholders. I am eager to hear solve and the social responsibilities we should fulfill. your candid opinions about this report. We will keep up our work towards the creation of fulfill- ing lifestyles in a sustainable society. We rely on your ongo- Towards a Sustainable Society ing support and guidance. July 2014 We support employees with families to help them strike a balance between work and parenting. This support exem- Shingo Kaneko President & Representative Director plifies our efforts to create an environment in which human Toppan Printing Co., Ltd. resources of great variety can exploit their abilities to the greatest possible extent. We have extended the period of

TOPPAN CSR REPORT 2014 5 Toppan’s CSR Activities

Toppan’s Ideal “Corporate Structure” Corporate Philosophy, Corporate Creed, and TOPPAN VISION 21 sets forth the basic concept and direction- Conduct Guidelines ality for the continual growth of the Toppan Group in harmony The Corporate Structure is made up of three elements: Toppan’s with society and the global environment. Corporate Philosophy, the Corporate Creed, and the Conduct The vision consists of a “Corporate Structure” and a set Guidelines. These elements specify a complete set of values, of “Business Fields.” The Corporate Structure specifies ideals standards, and guidelines for the operations of the Toppan and important values and concepts for the Group. Group. Toppan believes that endeavors to realize the Corporate Toppan established the Corporate Philosophy, the top Structure will support the sustainable development of the concept underpinning all of Toppan’s corporate activities, to Group and society as a whole. promote continual development as a socially valuable corpo- ration. 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/corporateinfo/ activities and appropriate 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 27 for Chapter 2: Specific Conduct Established in June 2000 Guidelines.

6 TOPPAN CSR REPORT 2014 CSR Activities Dialogues 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 Corporate either vital for its business operations or potentially impacted Structure the Group envisions. As measures seeking to incor- by them: customers (client companies, consumers), busi- porate social demands into business operations, CSR activities ness partners, communities, shareholders/investors, and are vital for Toppan’s growth as a corporation in harmony with employees. society and the global environment. To shape CSR activities satisfactory to all stakeholders, The United Nations Global Compact is an invaluable guide- Toppan attaches great importance to stakeholder dialogues line for the Group as it undertakes CSR activities. In designing and reflects stakeholder opinions in its activities. concrete activities, Toppan also closely refers to the ISO 26000 Along with the regular dialogues with its stakeholders in the Guidance on Social Responsibility, an international standard course of daily business, Toppan has been holding meetings formulated through the consensus of diverse stakeholders with representatives from each stakeholder category and with around the world. This standard typifies demands from society experts and organizations deeply knowledgeable on social at present. issues since fiscal 2004. In fiscal 2011, Toppan began taking ISO 26000 provides guidance on the principles of social part in the ISO 26000 Working Group organized by Global responsibility—what it means and how it applies to organi- Compact Network Japan. In fiscal 2013, Toppan entered zations. Any type of organization of any size can use it. This dialogues with experts and NGOs on topics related to the standard encourages organizations to address its seven core supply chain, consumer issues, human rights, and community subjects—organizational governance, human rights, labour involvement. practices, the environment, fair operating practices, consumer issues, and community involvement and development—and emphasizes stakeholder engagement through dialogue. 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.

Toppan’s Stakeholders and the Seven Core Subjects under ISO 26000

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

Communities Stakeholders

Seven core subjects

Dialogues

TOPPAN CSR REPORT 2014 7 Special Report Supporting Employees with Children

Toppan continues taking a proactive approach to address growing social demands for the creation of structures in which more diverse people, especially women, young people, and the elderly, can play active roles. In fiscal 2013 the Company launched a new “Hagukumi (nurturing) Program” to further facilitate support activities for employee parents to help them fully apply their abilities and skills.

Incentives to Support Balance between Numbers of Employees Taking Childcare Leave and Working for Shorter Hours Working and Parenting Employees taking childcare leave Employees working for shorter hours The participation of more diverse people in economic activities 200 is one of the most important challenges under Japan’s recent 167 160 growth strategy. Japan understands the need to create an 149 129 environment in which working parents can engage in both 120 94 94 124 work and childcare without undue stress—especially working 114 114 80 75 mothers. More and more parent employees at Toppan have 63 93 74 72 been signing up for childcare leave or working for reduced 40 hours in recent years. 48 0 2007 2008 2009 2010 2011 2012 2013 (fiscal year)

Toppan’s Continuous Efforts In fiscal 2012, a total of 14 parents and children joined the Toppan continues making various efforts to create an environ- Hagukumi (nurturing) Art Salon, a therapeutic activity organized ment in which a greater diversity of people can apply their by Toppan in Tokyo for parent employees on childcare leave. abilities to maximum potential. For better balance between Children and parents from each family collaborated in teams work and parenting, the Company introduces employee sup- to create artworks in four separate sessions. This salon is port systems that surpass legal requirements in Japan. structured as a program to strengthen bonds between parents For parents, for example, Toppan has extended the period and children, relieve the stresses of parenting, and stimulate of childcare leave up to the end of the first March after the interaction among different parents on leave. The participants employee’s child reaches the age of 12 months. This eases also receive a Hagukumi Newsletter with information and difficulties parents face in Japan, where entry to daycare ser- advice to help them smoothly return to the workplace. The vices is often impossible midway through the year. The eligi- newsletter updates parents on current developments within bility period for reduced working hours for employees with the Company, information on various support systems useful childcare responsibilities is set to continue up to the end of for parents on childcare leave, and messages of encourage- the child’s third year of elementary school (➞P. 21). ment from colleagues.

8 TOPPAN CSR REPORT 2014 New and Improved Hagukumi Program Hagukumi Seminar In fiscal 2013, Toppan upgraded the Hagukumi (nurturing) The Hagukumi Seminar was designed as an activity to make Program and conducted the three activities described below. colleagues throughout the workplace more aware of the impor- This program aims to cope with the stresses employees on tance of work-family balance for working parents. The 131 childcare leave so often feel about returning to the workplace seminar participants in fiscal 2013 included not only working and to relieve the uncertainties of working parents about their parents, but also managers, and coworkers who hope to future careers. The program also provides opportunities for ­balance work and parenting in the future. working parents to share useful skills for attaining work-family The seminar consisted of sundry activities such as a lecture balance and for Company coworkers to enhance understand- by an invited lecturer, a panel discussion of participants who ing about the importance of this balance. had experienced life as working parents, and small group ­discussions to think about how employees can improve bal- ance between work and parenting as individuals. Participants Hagukumi Art Salon ITo strengthen bonds between parents rated the event favorably and clearly learned more about the

Hagukumi (nurturing) Program and children issues involved in work-family balance. Participants com- ITo stimulate interaction among employ- mented that it eased their worries about taking maternity and ees currently on childcare leave ITo cope with anxieties about returning to childcare leave and returning to work after the leave; made work them realize how important it is to think about working styles from personal, subjective viewpoints; and helped them to Hagukumi Seminar understand that instead of fretting over the pressures subor- To learn and enhance understanding about good balance between work and parenting dinates with children face, steps should be taken to sound out throughout the workplace their working aspirations and help them move in the right direc- tions in their careers. Hagukumi Circle To build a network of working parent employees for discussing concerns about work and parenting and sharing tips on work-family balance

Hagukumi Art Salon In fiscal 2013, the Company increased the Art Salon venues to three—Tokyo, Osaka, and Fukuoka—and signed up a total of 28 parents and children for art sessions. Feedback from par- ticipants was consistently positive: (e.g.) “It was interesting to see my kid so deeply focused”; “Talking with other employees on childcare leave helped me prepare mentally for my upcom- ing return to work”; “I received a warm message from my boss.” Panel discussion

Hagukumi Circle As a pilot activity to develop the Hagukumi Circle, several small groups of working parent employees were asked to gather at lunch to form a network for discussing their everyday concerns and sharing tips on maintaining a balance between work and parenting. The Company used feedback gleaned from the participants of this preliminary circle activity last year to develop a better way to operate the Hagukumi Circle when it starts up on a full scale in fiscal 2014. Hagukumi Art Salon

Towards the Future In fiscal 2014, Toppan will continue holding the Hagukumi Art Salon and Hagukumi Seminar and will officially start up the Hagukumi Circle. These activities will ease mental burdens for working parents and further the sharing of knowhow on work-family balance. The Company will also spread enhanced awareness on the importance of work-family balance through- out all of its workplaces. Toppan is determined to create an environment in which diverse human resources can fully apply

Hagukumi Newsletters (in Japanese) their abilities and skills in their careers.

TOPPAN CSR REPORT 2014 9 Special Report CSR Procurement: Working with Suppliers to Comply with Global CSR Standards

When applying CSR procurement at a company, every party throughout the supply chain needs to implement CSR initiatives. The Toppan Group issued a revised set of CSR procurement guidelines in fiscal 2013 incorporating the requirements stipulated under the United Nations Global Compact and the ISO 26000 international standard for organizations on social responsibility. Coinciding with this, Toppan continues engaging business partners in related CSR procurement briefings and dialogues and sending them questionnaires to assess the status of their CSR practices.

Toppan’s Ongoing Efforts in CSR Issuing New Guidelines Pursuant to Procurement Global Standards As a corporate initiative, CSR procurement extends to labor The Toppan Group revised its CSR procurement guidelines and environmental management and other elements of and issued a second version in January 2014. ­corporate social responsibility at partner companies. In the The Toppan Group CSR Procurement Guidelines consist of 1990s, overseas companies faced a new wave of social and the Basic Procurement Policy, a conceptual framework to be legislative demands requiring them to extend their CSR activ- closely observed by every Toppan employee involved in pro- ities throughout the entire supply chain. The same demands curement operations, and the CSR Procurement Standards, a soon spread to Japan. set of requirements to be satisfied by every business partner. In May 2007, Toppan issued the first version of the Toppan Two major revisions are adopted in the new guidelines. The Group CSR Procurement Guidelines to improve mutual first revision is the addition of an article related to the fosterage ­corporate values in cooperation with collaborating business of mutual cooperation and relationships of trust with business partners. In the years since, every business partner willing to partners in the Basic Procurement Policy to be observed by cooperate with the Group’s CSR procurement initiatives has Toppan employees. So far the Group has provided compliance submitted a memorandum of cooperation and reported its education for employees involved in procurement operations CSR activities in questionnaires. Toppan has checked the and has established and operated the Supplier Hotline, a por- ­current status of business partner practices with these ques- tal for receiving reports from business partners on rule viola- tionnaires and visited partners to conduct onsite inspections tions or improper conduct by Toppan. With this new article in and face-to-face interviews whenever necessary. place, the Group expects version 2 of the guidelines to renew employee awareness on the need for building mutual cooper- ation and relationships of trust. We want companies to implement The second revision is a composition change of the CSR CSR initiatives throughout the Procurement Standards to improve their clarity. Specifically, entire supply chain the standards were reorganized into two categories: the Basic

requirements requirements requirements & dialogue & dialogue & dialogue

Consumers Client companies Toppan Business partners All of the parties above perform CSR practices through a process of “requirements & dialogue”

10 TOPPAN CSR REPORT 2014 Major Revisions to the CSR Procurement Guidelines

Toppan Group CSR Procurement Guidelines Toppan Group CSR Procurement Guidelines Version 1 Version 2

Basic Procurement Policy Basic Procurement Policy

“We work to foster mutual cooperation and build relationships of trust with business partners” (added) CSR Procurement CSR Procurement Standards Standards 1. Basic Procurement 9) Protection of people 1. Basic human rights Standards reporting improper conduct 2. Public order, 1) Maintenance and 10) Disclosure of information improvement of quality compliance with laws, United Nations fair business activities 2) Appropriate pricing 2. Procurement 3. Management and 3) Stable supply Standards Concerning Global Compact disclosure of information 4) Product safety Human Rights, Labor, 4. The environment and 5) Management of information the Environment, and ISO 26000 safety 6) Compliance with laws and Anti-Corruption 5. Improving quality social norms 1) Human Rights Other conduct 6. Appropriate pricing 7) Fair business activities 2) Labor guidelines 7. Stable supply 8) Protection of and respect for 3) The Environment established by 8. Social contributions intellectual property rights 4) Anti-Corruption suppliers

Procurement Standards and the Procurement Standards Con- Future Approach cerning Human Rights, Labor, the Environment, and Anti-Cor- The Toppan Group will continue holding briefing sessions for ruption. The former stipulates underlying conditions generally business partners and sending out questionnaires in fiscal 2014 required in all business transactions, such as: product safety; to enhance mutual understanding and review the current CSR management of information; and compliance with laws and practices of business partners. social norms. The latter focuses on the major four issues glob- When questionnaire results come in, the Group also plans ally emphasized in CSR initiatives. Toppan has been partici- to hold individual dialogues with business partners to facilitate pating in the United Nations Global Compact and supporting the establishment of a reliable supply chain for society at large. the 10 principles of the Global Compact on human rights, labour, environment, and anti-corruption since September 2006. Toppan incorporated the concept of the ISO 26000 international standard for organizations on social responsibil- ity in its CSR management practices in fiscal 2011 and has been pushing forward with CSR activities by piecing together a clear picture of the social issues the Group should help solve and the social responsibilities it should fulfill. The two revisions to the guidelines are further attempts by the Group to closely tie its responses to global demands in CSR procurement to the globalization of Toppan’s business activities overall. Toppan Briefing session for business partners Printing Co., Ltd. was the first company in Japan’s printing industry to establish guidelines clearly stipulating good prac- tices in the realms of human rights, labor, environment, and anti-corruption (➞PP. 18, 26).

More Efforts in Fiscal 2013 In addition to the issuance of the Toppan Group CSR Procure- ment Guidelines Version 2, Toppan held briefing sessions for business partners in operational sites across Japan from Jan- uary to March in 2014. Over the course of about an hour, the typical length of a session, participants shared views on Toppan Group CSR Procurement Guidelines (Toppan website) demands from international communities for CSR initiatives http://www.toppan.co.jp/english/csr/policy.html throughout the entire supply chain, major CSR issues of special focus, and details on version 2 of the guidelines. Questions and inquiries from business partners were also encouraged. About 1,200 partner companies took part in the sessions, in total. After each session, Toppan conducts questionnaires to review the activities business partners are undertaking in the realms of human rights, labor, environment, and anti-corruption.

TOPPAN CSR REPORT 2014 11 CSR Activity Digest 2013 Results in Fiscal 2013 and Future Measures in Line with the Seven Core Subjects under ISO 26000

Seven Core Subjects Action Points and Targets for Fiscal 2013 Main Measures in Fiscal 2013 Results in Fiscal 2013 Self Evaluation Action Points, Targets, and Main Measures for Fiscal 2014 •Implement e-learning-based, Company-wide basic education on CSR •Deepened the understanding of ISO 26000 via e-learning-based, Company- •Implement e-learning-based, Company-wide basic education on CSR manage- Developing CSR management based on ISO 26000 A management at more Group companies wide basic education for Toppan and Group company employees ment at more Group companies Organizational •Implement BCM at the regional sites, Group companies, and other Group •Formulated BCPs at all of the main sites in Japan •Review and prepare various BCM procedures and other BCM materials; Formulating business continuity plans (BCPs) across the Group entities that have yet to formulate BCPs (by formulating a basic plan and implement preliminary business continuity measures; organize BCM simulations •Organized BCM simulations and various other drills at the main sites in Japan governance and facilitating business continuity management (BCM) on an action procedure manual, organizing drills, and conducting related activities) A and various other drills ongoing basis •Organize BCM- and BCP-related education and develop human assets to •Acquired the Business Continuity Advancement Organization (BCAO) Business •Organize BCM- and BCP-related education and develop human assets to engage in BCM and BCPs Continuity Specialist Grade I and II certifications engage in BCM and BCPs •Organized education on respect for basic human rights through basic Company-wide Heightening awareness of the importance of respecting basic •Continue organizing various training sessions to nurture businesspeople •Continue organizing various training sessions to nurture businesspeople guided training and rank-based training; disseminated the principle of respect for basic A human rights guided by the concept of respect for people by the concept of respect for people human rights through the activities of the Conduct Guidelines Promotion Leaders •Made provisional offer of employment to 3 Americans at the Boston Career •Promote the hiring of human assets who possess latent talents and motivations •Facilitate the hiring of human assets endowed with latent talents and Providing an open environment and information for recruitment Forum held in the U.S. for bilingual job-seekers (e.g., Japanese students A advantageous for careers in a global business environment (including international motivations advantageous for careers in a global business environment learning overseas and international students learning in Japan) students learning in Japan) •Appoint more female employees to higher positions and leverage female •Take positive actions to appoint more female employees to higher positions, •Attained a 5.7% ratio of females among managerial and supervisory staff Proactively appointing female employees to higher positions talent; create working environments where employees can strike a balance A leverage female talent, and create working environments where employees can (as of April 1, 2014) between working and raising children strike a balance between working and raising children Human rights •Use the system for career self-determination (Challenging Job System) as a tool to deploy Working for equal opportunity in individual career development human assets based on individual capabilities and motivation and to appoint at least 20% •Appointed 244 employee applicants (18.9% of all applicants) to the depart- •Make proactive use of the Challenging Job System to appoint at least 20% of A and helping employees pursue their own career paths of employee applicants to the departments or divisions where they would like to work ments or divisions where they wished to work (as of April 2014) employee applicants to the departments or divisions where they would like to work •Arrange rotations and training to provide employees opportunities to develop their capabilities •Use the newly introduced Senior Reemployment System as a tool for •Introduced a new Senior Reemployment System on April 1, 2013 in line with the •Promote systems to support second careers for retired employees and to offer Supporting second careers for retired employees A leveraging the knowledge, experience, and expertise of veteran employees amendment to the Law concerning Stabilization of Employment of Older Persons in Japan working options well suited to the motivation of more experienced employees •Attained a 2.09% ratio of employees with disabilities in the total workforce (as •Develop new job positions for employees with disabilities; strengthen support of June 1, 2014) •Diligently facilitate the hiring of persons with disabilities by sharing information Promoting the employment of persons with disabilities A systems to hire more persons with disabilities •Appointed employees with disabilities to sections that had not previously hired with local public job-placement offices across Japan employees with disabilities and developed new job positions for them •Rearrange working conditions and personnel treatment systems to enhance •Hold career seminars; devise schemes to contribute to individual career the Company’s capacity to respond to environmental changes in business; •Reviewed personnel treatment systems for managerial staff at Group development Properly operating personnel treatment systems A introduce new systems and schemes and consider support plans for individual companies •Consider and implement measures to maintain employee motivation and provide career development follow-up •Convened special labor-management committees to discuss new ways of working •Create new ways of working based on job specifications, work styles, and the •Facilitate appropriate supervision of working hours using the employment in sales and planning departments and updated personnel treatment systems like by adopting a new personnel treatment system in sales and planning management system Supporting work-life balance 1) based on evolving working styles; adopted a new working system in July 2013 departments A •Implement measures based on labor-management discussions on ways to ➞ Shortening total working hours •Discussed ways to encourage employees to take leave during opinion •Hold opinion-exchange discussions on ways to encourage employees to take encourage employees to take leave, including the creation of more accommo- exchanges at labor-management committees for the creation of a working leave, including the creation of more accommodating workplace environments dating workplace environments environment amenable to enhanced job satisfaction •Continue holding the Hagukumi Seminar and Hagukumi Art Salon; organize Supporting work-life balance 2) •Introduced a teleworking system in February 2014 •Consider the introduction of a teleworking system for employees who want to these activities in more areas in Japan ➞ Creating a working environment where employees can •Held the Hagukumi (nurturing) Seminar in December 2013 and Hagukumi Art A come to the office but are prevented from doing so by childcare obligations •Operate the Hagukumi Circle, a network of employees balancing work and strike a balance between working and raising children Salon in February and March 2014 childcare •Increase opportunities for opinion exchanges between labor and management, •Arranged regular opportunities for opinion exchanges between labor and •Increase opportunities for opinion exchanges between labor and management, including division tripartite conferences, business councils at individual management, including division tripartite conferences and labor-management including division tripartite conferences, business councils at individual divisions, Creating a better working environment through partnerships divisions, and labor-management committees for the creation of a working committees for the creation of a working environment amenable to enhanced and labor-management committees for the creation of a working environment A between labor and management environment amenable to enhanced job satisfaction job satisfaction amenable to enhanced job satisfaction •Continue holding and gingering up recreational events jointly organized by •Held division-based recreational events jointly organized by labor and •Continue holding and gingering up recreational events jointly organized by labor labor and management management and management (including one Company-wide event to be held in October 2014) •Promote safety activities across operational sites based on the analyses of •Reduced the number of occupational accidents by 20% Labour practices •Introduce risk assessment on a full scale in a bid to make machines and workplace safety awareness surveys •Improved the Anzen Dojo safety training facility at the Kawaguchi Plant in Ensuring occupational health and safety and reinforcing equipment intrinsically safer •Enrich rank- and job-based safety education with a textbook for foremen Saitama Prefecture; established a dojo at Fukuoka Plant in Fukuoka Prefecture B countermeasures against fires •Switch to less hazardous cleansing agents at the workplaces that use organic •Complete the switch from cleansing agents previously used at offset printing •Selected new cleansing agents for offset printers to prepare for gradual solvents for offset printing and like processes workplaces to new agents not restricted under the Ordinance on Prevention of adoption during fiscal 2014 Organic Solvent Poisoning (“Organic Solvent Ordinance”) in Japan •Install Company-wide task force functions in the Kansai area in Japan •Organized drills for the establishment of disaster task forces at the main sites in Japan •Organize startup drills for alternate functions of the Company-wide task force in •Share information about stockpiled emergency supplies and management the Kansai area in Japan Reinforcing countermeasures against disasters •Organized a comprehensive disaster-preparedness drill in Akihabara on March A ledgers for supplies at the main sites in Japan 11, 2014 (evacuation drill, distribution of stockpiled supplies, communication •Continue organizing initial action drills in Akihabara; hold assembling drills for the •Continue organizing initial action drills; perform checks drill using the safety confirmation system, walk-home drill) task force crew •Attained a regular medical check-up ratio of 57.3% for the dependents of •Improve the medical check-up ratio by intensively encouraging insured members •Offer systematic healthcare guidance for employees with health risks employees (a 3 point improvement from the ratio in the previous year) of employee families to come in for regular medical check-ups Promoting healthcare and health enhancement associated with lifestyle-related diseases (healthcare guidance on the A preemption of lifestyle-related diseases, lifestyle improvement programs) •Held various meetings to encourage more people to come in for health •Cooperate with the Toppan Group Health Insurance Union to formulate and check-ups for lifestyle-related diseases implement a Data Health Plan •Operated Art Salon at 17 regional sites across Japan (1 more site than in fiscal 2012) •Continue operating Art Salon •Continue conducting mental health training and providing employees with Arranging measures for mental healthcare A opportunities to consult with counselors •Distributed a new handbook for managerial and supervisory staff to provide •Arrange mental health check-ups jointly with the regularly scheduled medical guidance on handling mental healthcare for their subordinates check-ups •Educated 141 managerial staff via programs aimed to strengthen fundamental •Upgrade support programs via various channels such as the Toppan Business •Upgrade practical programs to address business challenges and programs to capabilities; added 7 courses to the training programs organized by divisions School; expand learning opportunities and enrich learning content Developing and fostering human assets nurture leaders; strengthen the fosterage of human assets with the skills and outside the Tokyo metropolitan district A •Dispatch employees outside the Company to strengthen the fosterage of human motivations necessary to work in a global business environment •Sent 4 employees to an overseas business school; put 101 employees through assets with the skills and motivations necessary to work in a global business the selective training on globalization environment The environment See page 35 •Held 77 training sessions for 1,205 Leaders from Toppan and Group companies •Reinforce measures to prevent improper conduct by upgrading training •Reinforce measures to prevent improper conduct by enhancing the activities of Heightening awareness of laws, regulations, and the Conduct programs for the Conduct Guidelines Promotion Leaders and undertaking other the Conduct Guidelines Promotion Leaders •Examined the content of a Chinese version of the Conduct Guidelines B Guidelines Casebook, a Q&A style booklet describing practices related to the Conduct relevant activities •Implement the Conduct Guidelines in overseas Group companies Guidelines •Implement the Conduct Guidelines in overseas Group companies •Held training sessions for 1,571 employees mainly in production control •Continue organizing training on compliance with the Subcontract Law of Japan •Ensure proper subcontract transactions and build proper relationships with Complying with transaction-related laws and regulations departments at Toppan divisions and Group companies and interviewed A for Toppan and Group company employees and continue interviews to check business partners Fair operating practices employees at 17 sites across Japan how subcontract transactions are being handled •Revised the Toppan Group CSR Procurement Guidelines and issued a second •Establish new CSR Procurement Guidelines with CSR procurement criteria version in January 2014 •Apply the Toppan Group CSR Procurement Guidelines to business partners Promoting CSR initiatives in the supply chain based on internationally accepted auditing standards and notify business A •Held briefing sessions for about 1,200 business partners working with working with Toppan Group companies partners about the new guidelines Toppan’s procurement and production control departments; sent out questionnaires to review the CSR activities business partners are promoting •Established a set of guidelines for risk analysis on BPO operations and sent •Prepare a manual for applying failure mode and effective analysis (FMEA, a step-by-step •Help operational sites visualize and quantify risks in their business process the guidelines to divisions across Japan approach for analyzing possible points of malfunction or failure) to product design and outsourcing (BPO) operations •Conducted audits for 5 primary food filling/packing plants based on the revised manufacturing processes; provide guidance on FMEA in general; establish standards for Ensuring consumer safety through the strict prevention of •Upgrade the quality assurance system for businesses related to packaging for auditing criteria; improved control and maintenance levels for facilities and applying risk assessment procedures and help operational sites use the standards A quality-related accidents food, medical, and pharmaceutical products operational conditions •Renew the Quality Assurance Guidelines for Food Packaging; establish a set of •Continue disseminating information on Ver. 3.1 of the Toppan Group’s •Revised the Toppan Group’s Standards for the Management of Chemical guidelines for food defense and carry out audits based on the established guidelines Standards for the Management of Chemical Components of Raw Materials ­Components of Raw Materials from Ver. 3.1 to Ver. 3.2; revised the Green •Establish auditing standards for primary food filling/packing sites; help the sites Procurement Standards at each division to satisfy the Ver. 3.2 standards use the standards during their internal audits •Gained CFP registration for 5 products, including an in-house newsletter and eco calendar Consumer issues •Operate the internal carbon footprint of products (CFP) system (monthly progress meetings, management reviews, regular audits) •Underwent a regular CFP audit in November 2013; added 1 new site to the •Apply for CFP registration for 6 products during the course of the year Disclosing environmental information scope of the Company’s CFP system certification A •Foster human assets to engage in CFP operations such as CFP quantification •Organize CFP education for employees in sales departments and verification •Registered 3 employees for engagement in CFP quantification for the Company’s system certification; trained 3 employees for engagement in CFP verification •Comply with the various modifications to the laws, regulations, and standards •Instruct 62 tightly secured areas designated for the handling of personal •Completed qualification reviews under the revised criteria for 28 tightly secured related to personal information Establishing an information security management structure information on conformance with the revised criteria areas scheduled for review in fiscal 2013 towards the complete elimination of information-related A •Organize education for all employees on the proper handling of personal •Organize education for all employees on the proper handling of personal •Held 442 training sessions on cyber security for all employees across Japan accidents information and confidential information and carry out internal audits for all information and carry out internal audits for all departments across Japan •Surveyed the actual day-to-day security practices of 21,237 employees across Japan departments across Japan •Sponsored the concerts for two days as scheduled and donated nearly •Sponsor the 8th series of Toppan Charity Concerts Arranging social contribution programs to help solve social •Sponsor the 7th series of Toppan Charity Concerts 2 million yen to the Asia-Pacific Cultural Centre for UNESCO Community involvement B •Consider new social contribution programs to support literacy and other issues •Consider social contribution programs in which Toppan employees take part •Listed up action themes but had yet to formulate a concrete program in which and development educational initiatives Toppan employees could take part 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 2014 Seven Core Subjects Action Points and Targets for Fiscal 2013 Main Measures in Fiscal 2013 Results in Fiscal 2013 Self Evaluation Action Points, Targets, and Main Measures for Fiscal 2014 •Implement e-learning-based, Company-wide basic education on CSR •Deepened the understanding of ISO 26000 via e-learning-based, Company- •Implement e-learning-based, Company-wide basic education on CSR manage- Developing CSR management based on ISO 26000 A management at more Group companies wide basic education for Toppan and Group company employees ment at more Group companies Organizational •Implement BCM at the regional sites, Group companies, and other Group •Formulated BCPs at all of the main sites in Japan •Review and prepare various BCM procedures and other BCM materials; Formulating business continuity plans (BCPs) across the Group entities that have yet to formulate BCPs (by formulating a basic plan and implement preliminary business continuity measures; organize BCM simulations •Organized BCM simulations and various other drills at the main sites in Japan governance and facilitating business continuity management (BCM) on an action procedure manual, organizing drills, and conducting related activities) A and various other drills ongoing basis •Organize BCM- and BCP-related education and develop human assets to •Acquired the Business Continuity Advancement Organization (BCAO) Business •Organize BCM- and BCP-related education and develop human assets to engage in BCM and BCPs Continuity Specialist Grade I and II certifications engage in BCM and BCPs •Organized education on respect for basic human rights through basic Company-wide Heightening awareness of the importance of respecting basic •Continue organizing various training sessions to nurture businesspeople •Continue organizing various training sessions to nurture businesspeople guided training and rank-based training; disseminated the principle of respect for basic A human rights guided by the concept of respect for people by the concept of respect for people human rights through the activities of the Conduct Guidelines Promotion Leaders •Made provisional offer of employment to 3 Americans at the Boston Career •Promote the hiring of human assets who possess latent talents and motivations •Facilitate the hiring of human assets endowed with latent talents and Providing an open environment and information for recruitment Forum held in the U.S. for bilingual job-seekers (e.g., Japanese students A advantageous for careers in a global business environment (including international motivations advantageous for careers in a global business environment learning overseas and international students learning in Japan) students learning in Japan) •Appoint more female employees to higher positions and leverage female •Take positive actions to appoint more female employees to higher positions, •Attained a 5.7% ratio of females among managerial and supervisory staff Proactively appointing female employees to higher positions talent; create working environments where employees can strike a balance A leverage female talent, and create working environments where employees can (as of April 1, 2014) between working and raising children strike a balance between working and raising children Human rights •Use the system for career self-determination (Challenging Job System) as a tool to deploy Working for equal opportunity in individual career development human assets based on individual capabilities and motivation and to appoint at least 20% •Appointed 244 employee applicants (18.9% of all applicants) to the depart- •Make proactive use of the Challenging Job System to appoint at least 20% of A and helping employees pursue their own career paths of employee applicants to the departments or divisions where they would like to work ments or divisions where they wished to work (as of April 2014) employee applicants to the departments or divisions where they would like to work •Arrange rotations and training to provide employees opportunities to develop their capabilities •Use the newly introduced Senior Reemployment System as a tool for •Introduced a new Senior Reemployment System on April 1, 2013 in line with the •Promote systems to support second careers for retired employees and to offer Supporting second careers for retired employees A leveraging the knowledge, experience, and expertise of veteran employees amendment to the Law concerning Stabilization of Employment of Older Persons in Japan working options well suited to the motivation of more experienced employees •Attained a 2.09% ratio of employees with disabilities in the total workforce (as •Develop new job positions for employees with disabilities; strengthen support of June 1, 2014) •Diligently facilitate the hiring of persons with disabilities by sharing information Promoting the employment of persons with disabilities A systems to hire more persons with disabilities •Appointed employees with disabilities to sections that had not previously hired with local public job-placement offices across Japan employees with disabilities and developed new job positions for them •Rearrange working conditions and personnel treatment systems to enhance •Hold career seminars; devise schemes to contribute to individual career the Company’s capacity to respond to environmental changes in business; •Reviewed personnel treatment systems for managerial staff at Group development Properly operating personnel treatment systems A introduce new systems and schemes and consider support plans for individual companies •Consider and implement measures to maintain employee motivation and provide career development follow-up •Convened special labor-management committees to discuss new ways of working •Create new ways of working based on job specifications, work styles, and the •Facilitate appropriate supervision of working hours using the employment in sales and planning departments and updated personnel treatment systems like by adopting a new personnel treatment system in sales and planning management system Supporting work-life balance 1) based on evolving working styles; adopted a new working system in July 2013 departments A •Implement measures based on labor-management discussions on ways to ➞ Shortening total working hours •Discussed ways to encourage employees to take leave during opinion •Hold opinion-exchange discussions on ways to encourage employees to take encourage employees to take leave, including the creation of more accommo- exchanges at labor-management committees for the creation of a working leave, including the creation of more accommodating workplace environments dating workplace environments environment amenable to enhanced job satisfaction •Continue holding the Hagukumi Seminar and Hagukumi Art Salon; organize Supporting work-life balance 2) •Introduced a teleworking system in February 2014 •Consider the introduction of a teleworking system for employees who want to these activities in more areas in Japan ➞ Creating a working environment where employees can •Held the Hagukumi (nurturing) Seminar in December 2013 and Hagukumi Art A come to the office but are prevented from doing so by childcare obligations •Operate the Hagukumi Circle, a network of employees balancing work and strike a balance between working and raising children Salon in February and March 2014 childcare •Increase opportunities for opinion exchanges between labor and management, •Arranged regular opportunities for opinion exchanges between labor and •Increase opportunities for opinion exchanges between labor and management, including division tripartite conferences, business councils at individual management, including division tripartite conferences and labor-management including division tripartite conferences, business councils at individual divisions, Creating a better working environment through partnerships divisions, and labor-management committees for the creation of a working committees for the creation of a working environment amenable to enhanced and labor-management committees for the creation of a working environment A between labor and management environment amenable to enhanced job satisfaction job satisfaction amenable to enhanced job satisfaction •Continue holding and gingering up recreational events jointly organized by •Held division-based recreational events jointly organized by labor and •Continue holding and gingering up recreational events jointly organized by labor labor and management management and management (including one Company-wide event to be held in October 2014) •Promote safety activities across operational sites based on the analyses of •Reduced the number of occupational accidents by 20% Labour practices •Introduce risk assessment on a full scale in a bid to make machines and workplace safety awareness surveys •Improved the Anzen Dojo safety training facility at the Kawaguchi Plant in Ensuring occupational health and safety and reinforcing equipment intrinsically safer •Enrich rank- and job-based safety education with a textbook for foremen Saitama Prefecture; established a dojo at Fukuoka Plant in Fukuoka Prefecture B countermeasures against fires •Switch to less hazardous cleansing agents at the workplaces that use organic •Complete the switch from cleansing agents previously used at offset printing •Selected new cleansing agents for offset printers to prepare for gradual solvents for offset printing and like processes workplaces to new agents not restricted under the Ordinance on Prevention of adoption during fiscal 2014 Organic Solvent Poisoning (“Organic Solvent Ordinance”) in Japan •Install Company-wide task force functions in the Kansai area in Japan •Organized drills for the establishment of disaster task forces at the main sites in Japan •Organize startup drills for alternate functions of the Company-wide task force in •Share information about stockpiled emergency supplies and management the Kansai area in Japan Reinforcing countermeasures against disasters •Organized a comprehensive disaster-preparedness drill in Akihabara on March A ledgers for supplies at the main sites in Japan 11, 2014 (evacuation drill, distribution of stockpiled supplies, communication •Continue organizing initial action drills in Akihabara; hold assembling drills for the •Continue organizing initial action drills; perform checks drill using the safety confirmation system, walk-home drill) task force crew •Attained a regular medical check-up ratio of 57.3% for the dependents of •Improve the medical check-up ratio by intensively encouraging insured members •Offer systematic healthcare guidance for employees with health risks employees (a 3 point improvement from the ratio in the previous year) of employee families to come in for regular medical check-ups Promoting healthcare and health enhancement associated with lifestyle-related diseases (healthcare guidance on the A preemption of lifestyle-related diseases, lifestyle improvement programs) •Held various meetings to encourage more people to come in for health •Cooperate with the Toppan Group Health Insurance Union to formulate and check-ups for lifestyle-related diseases implement a Data Health Plan •Operated Art Salon at 17 regional sites across Japan (1 more site than in fiscal 2012) •Continue operating Art Salon •Continue conducting mental health training and providing employees with Arranging measures for mental healthcare A opportunities to consult with counselors •Distributed a new handbook for managerial and supervisory staff to provide •Arrange mental health check-ups jointly with the regularly scheduled medical guidance on handling mental healthcare for their subordinates check-ups •Educated 141 managerial staff via programs aimed to strengthen fundamental •Upgrade support programs via various channels such as the Toppan Business •Upgrade practical programs to address business challenges and programs to capabilities; added 7 courses to the training programs organized by divisions School; expand learning opportunities and enrich learning content Developing and fostering human assets nurture leaders; strengthen the fosterage of human assets with the skills and outside the Tokyo metropolitan district A •Dispatch employees outside the Company to strengthen the fosterage of human motivations necessary to work in a global business environment •Sent 4 employees to an overseas business school; put 101 employees through assets with the skills and motivations necessary to work in a global business the selective training on globalization environment The environment See page 35 •Held 77 training sessions for 1,205 Leaders from Toppan and Group companies •Reinforce measures to prevent improper conduct by upgrading training •Reinforce measures to prevent improper conduct by enhancing the activities of Heightening awareness of laws, regulations, and the Conduct programs for the Conduct Guidelines Promotion Leaders and undertaking other the Conduct Guidelines Promotion Leaders •Examined the content of a Chinese version of the Conduct Guidelines B Guidelines Casebook, a Q&A style booklet describing practices related to the Conduct relevant activities •Implement the Conduct Guidelines in overseas Group companies Guidelines •Implement the Conduct Guidelines in overseas Group companies •Held training sessions for 1,571 employees mainly in production control •Continue organizing training on compliance with the Subcontract Law of Japan •Ensure proper subcontract transactions and build proper relationships with Complying with transaction-related laws and regulations departments at Toppan divisions and Group companies and interviewed A for Toppan and Group company employees and continue interviews to check business partners Fair operating practices employees at 17 sites across Japan how subcontract transactions are being handled •Revised the Toppan Group CSR Procurement Guidelines and issued a second •Establish new CSR Procurement Guidelines with CSR procurement criteria version in January 2014 •Apply the Toppan Group CSR Procurement Guidelines to business partners Promoting CSR initiatives in the supply chain based on internationally accepted auditing standards and notify business A •Held briefing sessions for about 1,200 business partners working with working with Toppan Group companies partners about the new guidelines Toppan’s procurement and production control departments; sent out questionnaires to review the CSR activities business partners are promoting •Established a set of guidelines for risk analysis on BPO operations and sent •Prepare a manual for applying failure mode and effective analysis (FMEA, a step-by-step •Help operational sites visualize and quantify risks in their business process the guidelines to divisions across Japan approach for analyzing possible points of malfunction or failure) to product design and outsourcing (BPO) operations •Conducted audits for 5 primary food filling/packing plants based on the revised manufacturing processes; provide guidance on FMEA in general; establish standards for Ensuring consumer safety through the strict prevention of •Upgrade the quality assurance system for businesses related to packaging for auditing criteria; improved control and maintenance levels for facilities and applying risk assessment procedures and help operational sites use the standards A quality-related accidents food, medical, and pharmaceutical products operational conditions •Renew the Quality Assurance Guidelines for Food Packaging; establish a set of •Continue disseminating information on Ver. 3.1 of the Toppan Group’s •Revised the Toppan Group’s Standards for the Management of Chemical guidelines for food defense and carry out audits based on the established guidelines Standards for the Management of Chemical Components of Raw Materials ­Components of Raw Materials from Ver. 3.1 to Ver. 3.2; revised the Green •Establish auditing standards for primary food filling/packing sites; help the sites Procurement Standards at each division to satisfy the Ver. 3.2 standards use the standards during their internal audits •Gained CFP registration for 5 products, including an in-house newsletter and eco calendar Consumer issues •Operate the internal carbon footprint of products (CFP) system (monthly progress meetings, management reviews, regular audits) •Underwent a regular CFP audit in November 2013; added 1 new site to the •Apply for CFP registration for 6 products during the course of the year Disclosing environmental information scope of the Company’s CFP system certification A •Foster human assets to engage in CFP operations such as CFP quantification •Organize CFP education for employees in sales departments and verification •Registered 3 employees for engagement in CFP quantification for the Company’s system certification; trained 3 employees for engagement in CFP verification •Comply with the various modifications to the laws, regulations, and standards •Instruct 62 tightly secured areas designated for the handling of personal •Completed qualification reviews under the revised criteria for 28 tightly secured related to personal information Establishing an information security management structure information on conformance with the revised criteria areas scheduled for review in fiscal 2013 towards the complete elimination of information-related A •Organize education for all employees on the proper handling of personal •Organize education for all employees on the proper handling of personal •Held 442 training sessions on cyber security for all employees across Japan accidents information and confidential information and carry out internal audits for all information and carry out internal audits for all departments across Japan •Surveyed the actual day-to-day security practices of 21,237 employees across Japan departments across Japan •Sponsored the concerts for two days as scheduled and donated nearly •Sponsor the 8th series of Toppan Charity Concerts Arranging social contribution programs to help solve social •Sponsor the 7th series of Toppan Charity Concerts 2 million yen to the Asia-Pacific Cultural Centre for UNESCO Community involvement B •Consider new social contribution programs to support literacy and other issues •Consider social contribution programs in which Toppan employees take part •Listed up action themes but had yet to formulate a concrete program in which and development educational initiatives Toppan employees could take part 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 2014 13 Initiatives at Toppan and the Seven Core Subjects under ISO 26000

Seven Core Subjects Issues For Details Pages Organizational Organizational governance ICorporate Governance P. 15− governance ICSR Initiatives IRisk Management Structure IBusiness Continuity Management

Human rights Issue 1: Due diligence IRespecting Basic Human Rights P. 18− Issue 2: Human rights risk situations ICollective Labor Agreement Issue 3: Avoidance of complicity IWorking for Equal Opportunity and Eliminating Discrimination Issue 4: Resolving grievances 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 Approach Regarding Human Assets P. 20− 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 Health and Safety Issue 5: Human development and training in the IMeasures for Mental Healthcare workplace IDeveloping and Fostering Human Assets

The environment Issue 1: Prevention of pollution IToppan’s Environmental Activities P. 34− Issue 2: Sustainable resource use IEnvironmental Management Activities Issue 3: Climate change mitigation and adaptation IToppan’s Environmental Burden and Environmental Impact Issue 4: Protection of the environment, biodiversity 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. 24− Issue 2: Responsible political involvement IToppan Group Helpline practices Issue 3: Fair competition ICompliance Education Issue 4: Promoting social responsibility in the value IPromoting CSR Procurement chain Issue 5: Respect for property rights

Consumer issues Issue 1: Fair marketing, factual and unbiased IAssuring Product Safety and Quality P. 28− information and fair contractual practices IUniversal Design Initiatives 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 Involvement and Development P. 32− Issue 2: Education and culture ICooperating with International involvement and Communities to Address Social Issues development Issue 3: Employment creation and skills development Issue 4: Technology development and access Issue 5: Wealth and income creation Issue 6: Health Issue 7: Social investment

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ance te Ec ta b l ty t dina rv al opria stigat Instructing fe gulation ppr oppan nve Sa Commit or re Promo obse ethic T Coor a I l ationa agains N r organizations e ect r s fic the tment Specia Of e Di s O Toppan has had KPMG AZSA LLC verify the propriety of of AZSA LLC verify the propriety has had KPMG Toppan er t er or Corporate Auditors, Board of Corporate Auditors, of Corporate Auditors, Board Corporate Auditors, and Audit Firm th As of the end of March 2014, Toppan has five corporate audi- has five corporate Toppan 2014, of March of the end As inde- external auditors, of whom two are tors, including three the meetings, Along with their own board pendent officers. of Directors meetings of the Board corporate auditors attend and important meetings on risk and Management Committee carry out audits for opera- management. They systematically companies in close cooperation with tional sites and Group the of departments internal and firm audit the audit-related these tasks, they audit and advise the Through Company. the legality perspective to ensure a preventive Company from and smooth and departments of the operations of the directors corporate management in line with company and appropriate convene a board They also regularly policies and regulations. the companies to improve related of corporate auditors from across auditors corporate by audits the of effectiveness the Group. - audits to enhance the reli through accounts the Company’s information. financial Company’s the of transparency and ability defending Cent Audi ect Depar r t y oge e t Di Shareholder of colog rking E Wo t & Representativ Board of Managemen Complianc dismissing dismissing Meeting or or ing esiden d rv an Pr guiding Obse

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ppointing r A s te, s d e unde alua te ment an s ts isor ising rt ev rv rv ws s k, ation t Guidelines m r la emen charge Guiding depa Commit l Conference Supe t fo manager ov divisions s in y chec n Supe ty n of gulation infor companie or re impr

ationa s l Conduc hief ect ke to r usiness C securi omotio sponsible Group M N B Di re e directio Managemen Pr

d ma gencie ationa TP th N an Independentl Crisis Responds emer dismissing Toppan implements governance aimed at maximizing the corporate value of the entire Group under the Related Related under the Group governance implements value of the entire the corporate 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 Act of Japan. the Companies

or Auditing Auditing ppointing A Toppan has strengthened its governance structure through its governance through has strengthened structure Toppan Points The Directors, Board of Directors, and and of Directors, Board The Directors, Meetings Various Audit firm Corporate Governance Structure Toppan has 26 directors, including two outside directors, on on including two outside directors, has 26 directors, Toppan meetings are 2014). Board (as of the end of March its board action matter requires held monthly and whenever a pressing themes are or deliberation. Especially important management Management Committee, a by the deliberated beforehand - & Rep selected by the President body made up of directors The goal is to lay weight on managerial Director. resentative in business decision making. efficiency Corporate governance provides the foundation for addressing addressing for foundation the governanceCorporate provides subjects. the seven core Compliance Management Audit Office, the establishment of a Center under the purview of a Board Department, and Ecology to the Companies Act of according of Corporate Auditors implements governance aimed at maximizing Japan. Toppan Related the under Group entire the of value corporate the the for prescribed Regulations Administration Company Group. advancement of fair management for the Corporate Governance Organizational GovernanceOrganizational -

Risk to Be Managed Accidents or complaints related to products (Manufacturing (Manufacturing to products Accidents or complaints related Management Div.) to main systems (ICT Management Div.) Accidents related accidents, or other accidents involving Occupational accidents, traffic employees (Personnel & Labor Relations Div.) (Finance & to notes or accounts receivable Incidents related Accounting Div.) Div.) Affairs (Legal received with orders Legal problems Leakage of personal information, internal confidential information, etc. Div.) (Legal Affairs or explosions (Manufacturing to fires Accidents or disasters related Management Div.) of to the storage of solvents, management Illegal activities related chemicals, etc. (Manufacturing Management Div.) dangerous internal computer system due to cyber Damage to the company’s illegal access or use of company information, leakage of terrorism, personal information, internal information, etc. (ICT Management Div.) kidnapping, robbery) Acts of violence against the company (threats, (Personnel & Labor Relations Div.) antisocial organizations, transactions demands from Unreasonable conducted between business partners and antisocial organizations Div.) (Legal Affairs 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.) derivative lawsuits, hostile takeovers (Legal Affairs Shareholder Violations illegal transactions with of the Subcontract Law of Japan, business partners (Manufacturing Management Div.) Div.) Infringements of patents, trademarks, or copyrights (Legal Affairs illegal disposal of laws or standards, Violations of environmental industrial waste (Manufacturing Management Div.) or natural disasters, fires problems, accidents, environmental Product caused by international damage to human or physical resources etc. (Corporate Planning Div.) conflicts or terrorism, Each division confirms the materiality of its action points in action points in Each division confirms the materiality of its Remuneration to Directors and Corporate Auditors Remuneration to Directors Promotion Mechanism In fiscal 2013, the total annual remuneration to directors was was remuneration to directors annual In fiscal 2013, the total to corpo- the total annual remuneration 1,127 million yen and to the section million yen. Please refer rate auditors was 108 (in Jap- on corporate governance, the securities report etc. in the method used to determine remuner anese) for details on - and the Direc Director & Representative Under the President work in head office tor in charge of CSR, the divisions of the CSR activities. collaboration with each other to promote set under ISO 26000. The subjects line with the seven core based measures divisions devise action plans and carry out addressing issues they are the information about shared on divisions making. The head office they are and the progress companies information with Group and share also coordinate initiatives. CSR to advance Group-wide ations and remuneration-related information. ations and remuneration-related CSR Initiatives PP. 24, 24, PP. Accidents involving products or or Accidents involving products liability product to Accidents or disasters related company operations Defamation, slander, or other or other Defamation, slander, criminal damages Relationships with antisocial organizations Natural disasters Risk in business management to Unlawful activities related external contracts Infringement of intellectual property problems Environmental Risk in overseas business activities Risk to Be Managed and the Relevant Head Office Divisions in Charge Office Risk to Be Managed and the Relevant Head t s or e bor fic ect Division

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

rs nc Manufacturing P. 34). P. Secretar Relations Pe Corporat usiness & Researc charge Lega Managemen Fina B Public in promotio or t & Representativ dministration ect r A CSR Di

esiden The Compliance Department in the Legal Affairs Division Division Affairs Legal the in Department Compliance The

Strengthening Audit Functions Strengthening Pr spearheads the Company’s initiatives to ensure the strict the strict initiatives to ensure spearheads the Company’s and to firmly establish observance of laws and regulations facilitates the ethical business practices. The department of the Conduct Guidelines, organizes complete awareness laws, and employee education on compliance with applicable implements internal audits on information security (➞ - inde established body a is Office Audit Management The legal and from the business divisions. Working pendently from fair and objective audits conducts office rational viewpoints, the practical systems and operational and administrative the on office The activities. management Company’s the of status on problems, departments feedback to the relevant provides audit the and reports for improvement, measures proposes in directors Director, & Representative the President to results departments, and corporate auditors. The charge of relevant out 26 management and operation audits in carried office and operational fiscal 2013. It also conducted maintenance for all reporting over financial evaluations of internal controls business divisions and main subsidiaries. 30). The Ecology Center in the Manufacturing Management Management 30). The Ecology Center in the Manufacturing internal conducts activities, environmental supervises Division of the progress audits at operational sites, and monitors (➞ improvements TOPPAN CSR REPORT 2014 TOPPAN CSR Promotion Structure CSR Promotion

Organizational Governance 16 Organizational Governance 17 - - TOPPAN CSR REPORT 2014 TOPPAN Simulation drill (Sagamihara Plant) operation drill (Kumamoto Plant) force Task A new data center with superior earthquake resistance was was resistance A new data center with superior earthquake seeks to coexist with communities as Group The Toppan Business Continuity Management Business Continuity after large-scale for operational shutdowns a preparation As manage- institutes business continuity earthquakes, Toppan for Countermeas- Basic Plan under the ment (BCM) activities activities aim to maintain the against Disasters. These ures to customers by and services of products steady provision whenever as possible as rapidly operations business restoring - has intro Group occurs. The Toppan an emergency shutdown sites in the duced its BCM activities at the main operational district and implements them throughout metropolitan Tokyo compa- sites and Group including regional the whole Group, large-scale earthquakes for the contingency of nies, to prepare Japan. throughout infra IT Group-wide the safeguard to 2013 fiscal in completed its oper various BCM drills across repeated Toppan structure. for business competence Group-wide enhance to sites ational to give invited outside professionals also Toppan continuity. for new sessions and held training seminars (133 participants) employee awareness employees (272 participants) to improve of BCM. these ongoing BCM activities. a social benefactor through Comprehensive disaster-preparedness drill (Akihabara) disaster-preparedness Comprehensive Seminar by an outside professional - - - Every site operates its own system to Every site operates its own system to coun- preparing has also been Toppan anniversa- 11, 2014 (the third On March of disaster-prepar repetition The regular The Rules on Risk Management have been established to have been established to The Rules on Risk Management once a year and exam- risks to be managed reviews Toppan To ensure the safety of all Toppan employ- the safety of all Toppan ensure To aid for ees and their families and provide has people in general, the Group affected disaster-prepar comprehensive out carried - its operation throughout edness measures al sites under the Basic Plan for Counter against Disasters. measures confirm employee safety in the promptly organizes event of a wide-scale disaster, reserves stock- safety-confirmation drills, and of food and water for commuters who piles to their homes. have no means to return against disasters to minimize termeasures to carry on providing damage to the Group, and services for customers, and products people and to assist disaster-affected in cooperation with local communities areas corporation. as a socially responsible East Japan Earthquake), ry of the Great dis­ organized a comprehensive Toppan drill simulating the con- aster-preparedness tingency of a large-scale earthquake in is based. the head office ­Akihabara, where the actions to be reconfirmed The Group the from taken during an actual emergency, initial damage assessment and safety con- and walk-home, evacuation, the to firmation distribution of stockpiled supplies. edness drills will keep every employee on edness drills will keep every employee on to apply the know-how alert and prepared dealing with emergency situ- for necessary ations quickly and properly. Countermeasures against Disasters Countermeasures Toppan manages risk comprehensively to avoid risk and mini­ manages risk comprehensively Toppan occurring when an event at risk of mize the losses incurred actually occurs. the minimization risk avoidance and matters regarding address - damaging event occurs. In accord of loss when a potentially the Company has set up a risk man- ance with these rules, for risk under which the responsibilities agement structure allotted to specific divisions in the head office management are the this structure, based on the types of risk involved. Under responsible division are in charge of each relevant directors each type avoid, and correct to prevent, for taking measures of risk. to be taken in line with the rules. The ines countermeasures Meet- Management Liaison Risk holds a regular also Company of risk management in the head charge for the persons in ing information on a continuous to share in order divisions office to risk practically. basis and respond Risk Management Structure Risk Management Human Rights

Based on the concept of respect for people, Toppan is committed to respecting basic human rights inside and Points outside the Company. Toppan participates in global policy initiatives such as the United Nations Global Compact and engages in dialogues on human rights. In fiscal 2013, Toppan became one of the “Diversity Management Selection 100,” a group of companies selected by the Ministry of Economy, Trade and Industry of Japan. Respecting Basic Human Rights Collective Labor Agreement Toppan operates business under the foundational concept of The Toppan Printing Labour Union and the Company’s man- respect for people. The Conduct Guidelines, which set out agement have concluded a collective labor agreement in order behavioral norms for Toppan personnel, call for respecting to stabilize labor-management relations, maintain and improve basic human rights (respecting personal qualities and individ- working conditions, and secure the corporate concord. The uality; prohibiting discrimination and harassment; prohibiting agreement sets forth a fundamental policy between labor child labor and forced labor; and so on [➞P. 27]). Based on and management, the rules governing union activities and The Toppan Group Declaration on the Global Environment and labor-management negotiations, and employment conditions the Basic Policy on Biodiversity, Toppan promotes environ- such as wages and working hours. mental conservation initiatives to avoid negative impacts on As a fundamental policy between labor and management, the lives of people living near its operational sites (➞P. 34). Article 1 of the collective labor agreement, the General Prin- The Group has been carrying out education on human rights ciples, stipulates that the Company and union shall contribute in rank-based training for employees to prevent issues from to society through business operations and collectively work arising. To disseminate initiatives for respecting human rights for the benefit of the Company and long-term stability of the throughout the entire supply chain, Toppan sets forth an article employees’ livelihood. Labor and management both uphold on respecting basic human rights in the Toppan Group CSR these as common goals. In addition to clearly stating that the Procurement Guidelines and asks business partners to com- union has all the rights established by law, Article 2 of the ply with this article (➞PP. 10, 26). agreement specifies that the Company shall respect the union’s Toppan has also set up dual hotlines through which employ- rights to organize and collectively bargain and act. ees and business partners can promptly report inappropriate The Toppan Printing Labour Union is run by members from actions. nine Toppan Group companies. The union and the Company

Human Rights concluded a revised labor agreement in fiscal 2012 to impose a uniform set of liability-related clauses (rules governing union activities and labor-management negotiations) on all nine Group companies.

Initiatives for Respecting Basic Human Rights

Participating in the United Nations Global Compact Toppan participates in the global policy initiative and respects basic human rights in a proactive manner.

Respect for people A universal concept highly valued by Toppan

Establishing and disseminating Working for equal opportunity Organizing training the Conduct Guidelines and eliminating discrimination and education ( PP. 24, 27) Toppan specifies respect for basic human rights in the Conduct Toppan respects personal Toppan organizes training sessions Guidelines—its listing of behavioral qualities and individuality, and hires for new employees to educate them norms for employees—and disseminates and treats employees without about respect for basic human rights this principle across the Group. discrimination of any kind. in easy-to-understand lessons.

Promoting CSR procurement Operating hotlines Contributing to society ( PP. 10, 26) ( PP. 25, 26) ( P. 32)

Toppan cites respect for basic Toppan supports people’s livelihood human rights as a guiding principle in Toppan operates dual hotlines through educational cooperation in h both employees and its CSR procurement guidelines and through whic developing countries and the business partners can report asks business partners to comply donation and supply of money and inappropriate actions. with the guidelines. goods throughout the world.

In fiscal 2013, Toppan participated in a working group on due diligence for human rights organized by the Global Compact Network Japan. The Company gathered information and held opinion exchanges with other members on respect for basic human rights.

18 TOPPAN CSR REPORT 2014 Working for Equal Opportunity and options well suited to their knowledge, experience, skills, and Eliminating Discrimination motivation. Seventy-six of 88 employees who retired in fiscal Toppan pursues diversity management to innovate and create 2013 were reemployed and now remain with the Company. value by engaging diverse human assets and nurturing their competence to its full potential. In fiscal 2013, Toppan Printing Employment of Persons with Disabilities Co., Ltd. became one of the “Diversity Management Selection Toppan promotes the hiring of persons with disabilities in 100,” a group of companies selected by the Ministry of Econ- ­collaboration with a special subsidiary, Tokyo Metropolitan omy, Trade and Industry of Japan. Government (T.M.G.) Prepress Toppan Co., Ltd. The Company offered a greater range of positions for intellectually disabled Positive Action employees in fiscal 2013, including positions in document Toppan promotes positive action to bring out the full potential digitalization. of individual employees, regardless of gender, and assign them to more diverse positions. The Company continues to create Providing an Open Environment for Recruitment positive working environments and appoint female employees Toppan hires persons of both genders and of many national- to managerial positions based on their skills and motivation. ities, ages, and levels of physical and mental ability through three recruitment channels: the regular hiring of new gradu- In-house Staff Recruitment / Self-determination on ates from universities and high schools, mid-career hiring of the Career Path / Second Careers experienced personnel, and hiring of persons with disabilities. Toppan has established the Challenging Job System, a self-­ The Company offers employment opportunities for recruits to directed program to encourage employees to report their choose in accordance with their own aspirations and voca- work experience, official qualifications, medium-to-long-term tional aptitudes through job-specific screenings in Japan and career development plans, and the departments and divisions the recruitment of global personnel all over the world. Toppan Human Rights to which they would like to be transferred. The combined takes part in forums around the world to make contact with effects of the Challenging Job System and an in-house staff more human assets suited to careers in a global business recruitment system nourish a problem-solving, can-do mind- environment. Toppan also ran internship programs for 111 set, which facilitates the placement of the right person in the students in a series of six-day practical training sessions in right position across the Company. For retired employees in fiscal 2013. their second careers in company life, Toppan offers working

Female Managerial and Supervisory Staff Number of Recruits Q Female supervisory staff Fiscal 2012 Fiscal 2013 Fiscal 2014 Q Female managerial staff (as of April) 250 Regular Sales, Male 60 80 69 233 recruitment of administration, etc. Female 24 39 42 200 197 new university 176 graduates and Male 105 70 94 161 Technical 150 post-graduates Female 26 30 33 181 150 Regular recruitment of new Male 0 4 1 100 133 124 ­graduates from high schools and colleges of technology Female 11 14 11 50 Total number of regular recruits 226 237 250 47 52 (percent female) (27.0%) (35.0%) (34.4%) 0 37 43 Male 16 18 — 2011 2012 2013 2014 (year) Mid-career recruitment of experi- enced personnel Female 8 11 — Employment of Persons with Disabilities 2012 2013 2014 Toppan Becomes One of the Diversity Management Selection 100 Employees 197 221 247 Toppan recently became one of the “Diversity Management Selection 100,” a group of companies Percentage selected by the Ministry of Economy, Trade and Industry of Japan. The ministry aims to broaden of total 1.91% 2.13% 2.09% the foundations of human resource diversity by selecting and workforce* recognizing the companies of the Diversity Management *The percentage is calculated based on the ­Selection 100 for their track records in innovation through the total number of regular employees (as of June engagement of diverse human resources. Toppan’s efforts to 1) as a denominator. The total number was promote diversity have been extensive, and the ministry gave ­presented in the Disabled Persons Employ- high marks to the Company’s initiatives to harness the unique ment Report in accordance with Article 8 of capabilities and perspectives of women employees, especially the Law for Employment Promotion, etc. of in the areas of product and service development. the Disabled of Japan.

TOPPAN CSR REPORT 2014 19 76 68 75 71 8.0 124 (4) 41.7% Staff Temporary Temporary Fiscal 2013 Fiscal 2013 730 708 705 68 8.1 114 (3) 41.9% Workers Part-time Part-time Fiscal 2012 Fiscal 2012 8,508 8,587 8,604 58 8.2 Sum Total Sum Total 114 (2) Employees 42.4%

41.3 41.8 32.8 42.2 33.3 33.6 Fiscal 2011 Fiscal 2011 Age 4 Average Average 3 9.2 9.6 9.9 14.9 15.0 15.3 Tenure Business councils are convened as Company-wide and convened as Company-wide and Business councils are working hour In the committee convened to deliberate Average Average The number of male employees who took childcare leave is shown in leave is shown in The number of male employees who took childcare parentheses. Average paid paid Average leave used (days) ratio* Average Employees taking Employees taking maternity leave Employees taking leave* childcare *3 Average ratio = average paid leave used / average paid leave granted *3 Average *4 Annual Paid Leave Used Leave Maternity or Childcare Employees Taking Labor-Management Partnership Labor-Management union and labor ideals, Toppan’s As partners with shared for each in each other and respect management have trust they have been working on various positions. Together other’s and holding a host of recreational issues on an equal footing include examples Recent employees. for activities and other sports festivals held for large Company-wide and site-specific and their families to encourage them numbers of employees to enjoy closer people-to-people interactions. managerial operational site forums to discuss wide-ranging also convened to delib- issues. Several special committees are Standing committees meet to erate pertinent issues of the day. hour reductions, discuss longstanding issues such as working labor-management Individual wages, and health and safety. specially desig- committees meet when necessary to discuss environment working a of the creation as such nated subjects amenable to enhanced job satisfaction. in fiscal 2013, labor and management discussed reductions employees who ways to establish a teleworking system for doing so from prevented but are want to come to the office sys- teleworking new A work. of outside obligations their by has adopted a 2014. Toppan in February tem was introduced employees union shop system. In principle, all non-managerial belong to the labor union as members. 7,363 7,417 1,145 7,395 1,170 1,209 Total Total - 2 Employees 1) 0) 3) 4.1% 0 ( 88 ( 90 ( 121 133 148 366 (56) 188 (52)* 1,749 1,790 1,779 Fiscal 2013 Fiscal 2013 6,711,582 yen Supervisors 2) 0) 4) 3.7% 39 41 47 0 ( 69 ( 83 ( 332 (59) 180 (53) 1,687 1,769 1,822 Class Fiscal 2012 Fiscal 2012 6,414,340 yen Management Management 0 0 0 1) 0) 1) 26 25 26 3.4% 0 ( 80 ( 84 ( 295 (50) 131 (48) Directors 1 Fiscal 2011 Fiscal 2011 6,397,624 yen Toppan’s labor union and management engage in dialogues at business councils and various committees. and various committees. at business councils engage in dialogues union and management labor Toppan’s the mental maintain safety, health and occupational work-life balance, promote seek to support Their initiatives and develop and foster human assets. health of employees, Toppan recognizes how deeply it depends on its people and encourages employees to work vigorously and and to work vigorously employees on its people and encourages how deeply it depends recognizes Toppan motivation. earnestly with strong Male Male Male



Female Female Female

Toppan strives to improve the abilities of every employee the abilities of every employee strives to improve Toppan The number of female employees who left the company is shown in The number of female employees who left the company is shown in parentheses. support Toppan’s males and two females took advantage of Twenty-fix system for employees pursuing second careers.

Points Fiscal 2011 Fiscal 2012 Fiscal 2013 Retirement the company Requested by Requested by Other Total Turnover rate Turnover Total Personal reasons TOPPAN CSR REPORT 2014 TOPPAN *2 *1 vated, vigorous, and earnest work of the Toppan workforce. workforce. and earnest work of the Toppan vated, vigorous, understands the importance of the moti- The Company keenly work vigorously challenges, the drive to take on new vation to and mind, and an earnestwith a healthy body commitment on tasks to completion. When employees to follow through is motivation, Toppan earnest, and have strong vigorous, are to the full. convinced that they show their true abilities - appointment, training, and treat the stages of hiring, through the strengthen to together abilities these bring to ment and priority high places Toppan so, do To a whole. as organization progress career on communication in a spirit of mutual trust, in which employees envision, clearly defined in the directions open and an establishment of the and penalties, and rewards will Toppan these efforts, Through fair working environment. and the organizations they form invigorate human resources new engines and foster talented individuals who can create for the Company as a whole. of further growth Toppan values its employees as precious company assets, as company assets, as as precious values its employees Toppan how deeply it depends on recognizes “human assets,” and moti the supports Company the perspective, this From them. Basic Approach Regarding Human Assets Regarding Basic Approach Labor Practices Labor Average Annual Salary Average Reasons for Leaving* Number of Personnel (as of March 31) Number of Personnel (as of March

Labor Practices 20 Labor Practices 21 TOPPAN CSR REPORT 2014 TOPPAN Toppan has also made institutional improvements for its for its institutional improvements has also made Toppan Efforts to Foster the Next Generation to Foster the Next Efforts Toppan has striven to create a working environment in which in which a working environment has striven to create Toppan better work-life balance. It does so employees can achieve leave, nursing care and systems for childcare by providing family allowances for depend- working hours, higher reduced rehiring forms. Under the other of ents, and employee benefits the Company to deliver from who resign system for employees registered have employees 24 resigning children, and bring up as of April 2014. rehiring for future Company the example, for parents, For system. leave childcare March first the to up leave childcare of period extended the has months, of 12 age the reaches child after the employee’s 31 of the applicable law a point in time beyond the requirements face in Japan, parents in Japan. This change eases difficulties services is often impossible midway entry to daycare where the eligibility period for reduced Meanwhile, the year. through is responsibilities working hours for employees with childcare ele- of year third child’s the of end the to up continue to set Japan), in legal requirements surpassing (again school mentary spouse has time to the employee’s even in households where leave was In April 2014, child healthcare devote to childcare. of end the to up leave take to employees enable to extended year of elementary school. Among the 10 days third the child’s as paid leave. five days can be taken of leave a year, - Employees can accumulate up to 50 days of annual paid leave (exercisable within two years from the date the days are the days are date the two years from within (exercisable up to 50 days of annual paid leave Employees can accumulate for themselves or their dependents, healthcare eligible to use their stock leave for medical treatment granted). Employees are in the aftermath of unexpected disasters, and so on. for their families, recovery-work or nursing care reaches 31 after their child leave consecutively up until the first March eligible for fulltime childcare Both mothers and fathers are on a cumulative basis). Employees on leave leave so far, the age of 12 months (twenty male employees have taken childcare 30,000 of subsidies and months) 18 of age the reaches child their (until Company the from salaries regular their of 10% receive reduction of hours (maximum They can also work for shorter Fraternal Benefit Society. Group the Toppan yen a month from return to the job until their child the date of their working schedule from two hours per day) or select a flextime or irregular childcare-related costs and provides year of elementary school. The Company subsidizes certain childcare completes the third a consultation office. information through that the employee has worked for to deliver and raise a child, provided Rehiring is guaranteed for an employee who resigns employee who meets this condition A resigned consecutive years up to the date of resignation. than three for more Toppan until May 1 of the year when the child enters elementary school. eligible for rehiring will remain in a working maximum reduction The maximum consecutive leave and entitled to take leave for nursing care. Employees are Fraternal Group Toppan The care. nursing requiring member family every for respectively, hours, two and year one are day certain nursing Benefit Society pays a 30,000-yen subsidy per month as assistance during the leave. The Company subsidizes information. nursing care-related costs and provides care raising. (Five days can be they are of the number of children regardless Employees can take up to 10 days of leave a year, taken as paid leave, either as full days or half-day allotments, as necessary.) Employees year. one of maximum a for activities beneficial socially in engage to volunteer leave take can employees principle, In an allowance. on volunteer leave receive by up to one hour to avoid rush-hour commutes during or downward An employee can adjust daily working hours upward year of elementary school). (until his or her child completes the third and by up to two hours for childcare pregnancy the Company pays a monthly allowance of 20,000 yen for each child. This allowance is discontinued For employees with children, is applied.) (No limit for the number of children 18th birthday. on the first April 1 to arrive after the child’s Group The Fraternal Toppan Benefit Society subsidizes 50% of babysitter expenses (up to 5,000 yen per day) for up to 90 days a year. a supplementary allowance in addition to a lump-sum allowance for Health Insurance Union offers Group The Toppan magazine Baby and one-year subscriptions to the monthly childrearing free It also provides childbearing and childrearing. for employees with questions about the health of the body and mind. Mommy and runs a consultation office

Senior management, managers, and employees jointly jointly Senior management, managers, and employees At the ongoing business councils and labor-management convened committees were Special labor-management Efforts to Shorten Working Hours to Shorten Working 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 to Support Work-Life Main Leave Systems / Measures The special demands of the printing industry have made it a of the printing industry have made it a The special demands over excessive the reduce to Toppan for challenge significant Supporting Work-Life Balance Supporting Work-Life time hours worked by employees. Toppan has been instituting has been instituting employees. Toppan time hours worked by work overtime extended to eradicate measures Company-wide better work-life balance and main- as a means of achieving taining employee health. operating effectiveness undertake various initiatives to improve manage- ways work and the the ways individuals by reviewing hours by adjusting ment administrates; to equalize overtime working new introduce to and departments; within operations working schedules. systems such as flextime and irregular opinions and committees, labor and management exchange to further shorten overtime working-hours deliberate measures Act of Japan. Labor Standards and comply with the revised the review and practices overtime actual the analyze also They working systems. The Company use of the newly introduced its work-attendance management system in fiscal renewed working hours in 2012 and enabled departments to manage timely and detailed fashion. a more working in sales and in fiscal 2013 to discuss new ways of based systems ­planning departments and updated personnel adopted Company the result, a As styles. working evolving on departments in a new working system in sales and planning July 2013.

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In fiscal 2013, Toppan continued enriching the educational continued enriching the educational Toppan In fiscal 2013, Number of occupational accidents requiring Number of occupational accidents requiring employee leave, per million cumulative ­ of the frequency working hours (reflects ­occupational accidents) Number of workdays lost as a consequence of occupational accidents, per thousand the cumulative actual working hours (reflects severity of occupational accidents)

Frequency rate* Frequency Deaths from Deaths from occupational accidents Severity rate* *2 *1 TOPPAN CSR REPORT 2014 TOPPAN Back in 2010, Toppan formulated a Basic Policy on Health and formulated a Basic Policy on Health and Back in 2010, Toppan first” theme and clarified the actions Safety based on a “safety the complete operational site towards to be taken at each accidents. The Company has elimination of occupational - safety training mainly on legal and reg organized rank-based has undertaken various initiatives such ulatory compliance and activities led by safety and risk assessment promotion as safety the number of occu- these efforts, leaders. Through promotion The safety pational accidents has been gradually reduced. lead- and safety promotion team at the head office promotion to continue organ- ers at operational sites will work together intrinsic safety of izing safety education and upgrading the machines and equipment. - content of the Anzen Dojo, a safety training facility in Kawa The Company also established an guchi, Saitama Prefecture. to trainees outside website to open the dojo Anzen Dojo similar to the dojo in Kawaguchi Danger simulators ­Toppan. at new safety training facilities in Fukuoka will be introduced - occupational safety aware to improve and Osaka Prefectures - pro also will Company The employees. Toppan among ness safety awareness mote safety activities based on workplace surveys. Occupational Health and Safety Occupational Health Occupational Health and Safety

Labor Practices 22 Labor Practices 23 - -

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onment in -learnin training AN Rank n (e envir oppan s training eation d T t of . TOPP globalization the CSR cr us rs skill manager Educatio with e an on on on on ofit tr training training pr wide manager y- ation ledg on g the Company m ow together 21 custome education education education education the division department manager supervisor Kn infor c Compan Earnin business VISION Basic Basic Basic Education New New New New Basic Basi Meanwhile, the Toppan Business School (group training) training) Business School (group Meanwhile, the Toppan outside I I Operated I I I I I I I Various Education Systems Various The Concept of Human Asset Development and Asset Development and The Concept of Human Fosterage wide development period. To help new employees acquire help new employees acquire wide development period. To training and organizes Company-wide necessary skills, Toppan the immediate supe- on-the-job training (OJT) with help from riors of new employees. learning courses) (correspondence School Challenge the and training for employees. A cumulative self-development offer 2013. fiscal in trained in these schools people 9,359 total of to basic, Company-wide access Employees also have ready Systematic Human Asset Development Programs Along with rank-based and department-based training, the training, the Along with rank-based and department-based organizes selective training courses planned out head office For new employees, Toppan to foster leaders of tomorrow. recruitment as a Company- years after the first three regards Mindful of how deeply it depends on employees, Toppan fos- it depends on employees, Toppan Mindful of how deeply would Toppan ambition and integrity. ters human assets with society as a corporation blessed with like to contribute to communication skills and height- human assets with excellent up set has The Company sensibilities. and ened awareness Univer the Toppan human asset development platform called Developing and Fostering Human Assets Developing and sity. This in-house virtual university supports life-long learning, This in-house sity. to enhancement while striving and career skill improvement, foster top leaders. 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 Pr Complianc ect l leader r n Leader tment t Guidelines e Di At the Meeting of Conduct Guidelines Promotion Supervi- Promotion Guidelines Conduct of Meeting the At GM Dissemination Activities by the Conduct Guidelines by the Conduct Guidelines Dissemination Activities Leaders Promotion the Conduct Guidelines to Promote Tools depar manufacturing ucationa GM omotio The Leaders formulate action plans tailored to the details of to the details of action plans tailored The Leaders formulate compositions, and and conditions, staff business operations they serve. at the workplaces where other individual factors facil- Conduct Guideline read-throughs, The Leaders organize cases, and implement other concrete itate discussion using among their compliance awareness activities to enhance ­colleagues. operational sites Supervisors from sors held each October, share and discuss and activities their report Japan throughout outstanding cases and measures. a Conduct Guidelines Case- gives every employee Toppan book, actual situations that a Q&A style casebook describing for casebook the uses Company The work. arise in daily can it to disseminate rank-based education and the Leaders use also posts regular the guidelines at their workplaces. Toppan relevant to the Conduct Guideline Notifications on topics and to heighten employee awareness guidelines in order issues. The notifications call attention to compliance-related leak- information as such topics covered 2013 fiscal in posted related problems age, unlawful conduct, and accidents and and services. to products 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 n Leader Genera 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  use as obtain the lumber they suppliers legally that paper supply chain to ensure been monitoring the has Toppan production. a raw material for paper Toppan organized training on compliance with the Subcontract Law, the Act Concerning Special Measures for for Concerning the Act Special Measures Law, with the Subcontract training on compliance organized Toppan in Japan. in force and regulations laws other transaction-related and Consumption Tax, Pass-on of Toppan educated employees and audited operations as measures to prevent improper export and import transactions. export and import improper to prevent measures audited operations as employees and educated Toppan t Guidelines 

an s pr depar omotio managers Sale sales Pr Conduc in

Points Conduct Guidelines Promotion Leader System Conduct Guidelines Promotion Toppan operates a Conduct Guidelines Promotion Leader Leader Guidelines Promotion operates a Conduct Toppan site assigns a Conduct system. In this system, every Group Supervisor (the “Supervisor”) and Lead- Guidelines Promotion Guidelines ers (the “Leaders”) for disseminating the Conduct and Lead- and ensuring full guideline compliance. Supervisors connected with their ers implement ongoing activities directly Leaders and fifty-six daily business operations. Seven hundred in fiscal 2013, including 65 the Group across deployed were women (8.6% of the Leaders). A cumulative total of 6,051 was system the since Leaders as worked have employees to measures with continue will Toppan 2004. in launched assign and foster resolutely to and Leaders more many deploy Leaders. female more TOPPAN CSR REPORT 2014 TOPPAN Structure to Promote the Conduct Guidelines to Promote Structure In June of the year 2000, the centennial of Toppan Printing Printing the centennial of Toppan In June of the year 2000, the Conduct Guidelines, a set established Co., Ltd., Toppan based on the Corporate Phi- of behavior of normal standards of legal compliance. In November 2010, losophy and the spirit as a set the Conduct Guidelines completely revised Toppan the around companies that all Group of common principles Group- total of assurance the for observe to required are world wide compliance. Disseminating the Conduct Guidelines Disseminating Fair Operating Practices Fair Operating

Fair Operating Practices 24 Fair Operating Practices 25 TOPPAN CSR REPORT 2014 TOPPAN - Along with special training for employees, planning departments reg Toppan devises ways to enhance the effectiveness of train- devises ways to enhance the effectiveness Toppan Approach to Intellectual Property Approach is a crucial issue and management of intellectual property Protection & fields of Information a company operating in the three for Toppan, and Material Solutions. The Communication, Living Environment, the infringe- to prevent ­Company devotes strict attention to measures rights ment of copyrights, trademarks, and other intellectual property parties while obtaining patents for its own technologies and of third business models. ularly hold training sessions for business partners. Participants in these rights basic knowledge of laws on intellectual property sessions acquire in design work and the like. actual cases involving problems by reviewing Briefing on Compliance Education on Compliance with Transaction-related with Transaction-related Education on Compliance Laws and Regulations Toppan was not involved in any serious accidents or violations violations or accidents any serious in not involved was Toppan in the course of business in fiscal 2013. of laws or regulations Leaders (Kumamoto Plant) for Conduct Guidelines Promotion Training Toppan regularly organizes transaction-related training and training and organizes transaction-related regularly Toppan being han- are checks and audits how business transactions improper key to preventing are dled in Japan. Both measures compliance with export and import transactions and ensuring the Subcontract Law and the Act Concerning Special Meas- In fiscal 2013, a total Pass-on of Consumption Tax. for ures sessions focused on of 325 employees participated in group Trade Foreign and Exchange Foreign the under controls export trained on compliance with the Act; 1,571 employees were Subcontract Law and the Act Concerning Special Measures as 6,120 employ- and as many for Pass-on of Consumption Tax; via the e-learning system. ees took a course on export controls - discus activities such as group ing at the sessions through describing actual incidents and sions using case methods accidents. -

on and es follow-up oblem esolved ess ector pr for ogr unr

esults, r communication Reporting pr Reporting Dir the Ltd. Auditor emains r When Co., countermeasur

esponsible esentative r sent and Corporate Receiver Printing

s name) eporting r & Repr Instructions nal oppan Senior T and or Department documents Inter esident employee’ Pr investigation an employee Superior consultation sealed Reporting with oup or Gr Communicator Any (emails The helpline was used in two cases in fiscal 2013. One of of One 2013. fiscal in cases two in used was helpline The Training for Conduct Guidelines Promotion Leaders for Conduct Guidelines Promotion Training As in previous years, Toppan held group training for Conduct for Conduct training group held Toppan years, previous in As in fiscal 2013. The training was Leaders Guidelines Promotion trained were 664 Leaders first, the In phases. two in scheduled May to August 2013. In the Japan from in 41 sessions across Novem- trained in 36 sessions from second, 541 Leaders were 2014. ber 2013 to March Compliance Education When an employee discovers a legal violation or improper discovers a legal violation or improper When an employee to he or she is Group, Toppan in the conduct somewhere deliberation, in principle. If the it to his/her superior for report employee the problem, the superior fails to resolve employee’s Group’s Helpline, the Group the Toppan is encouraged to call The helpline is kept open for use system. internal reporting and part- staff temporary employees, including by all Group time workers. procedures involved the use of improper the incidents reported strictly accident. Both cases were to cope with a quality-related handled, and necessary counter investigated and properly Toppan Group Helpline Group Toppan measures were taken to prevent recurrence. taken to prevent were measures Toppan Group Helpline Group Toppan Toppan surveyed 50 sites of 45 business partners around around surveyed 50 sites of 45 business partners Toppan the Supplier Hotline, a portal has also established The Group Consideration for job security and fulfillment of the obligations of an Consideration for job security and fulfillment of the obligations of an employer Verifying the Legality of Lumber as Paper Material the Legality of Lumber as Paper Verifying Departments Compliance in Procurement Promoting 3) The Environment and laws environment-related local with comply should partners Business and water, pollution of the atmosphere, and work to prevent regulations and the use assess and measure continuously should also soil. They environment. the on impacts and work to reduce resources of discharge 4) Anti-Corruption bribery, as such conduct and prevent prohibit should partners Business extortion, and of profits, or receipt provision corruption, inappropriate misappropriation. 2) Labor labor of forced (1) Prohibition of child labor (2) Prohibition (3) Non-discrimination of harassment (4) Prohibition (5) Respect for workers’ rights (6) Ensuring occupational health and safety wages (7) The payment of appropriate working hours (8) Management of appropriate (9) Toppan promotes the sustainable use of forest resources by by resources the sustainable use of forest promotes Toppan that (business partners) to ensure monitoring paper suppliers is legally obtained. paper production the lumber they use for procured and confirmed that all of the the world in fiscal 2013 from results the provided Toppan legally. lumber was obtained to an initiative program, the CDP Forest these inspections to collect information on corporate practices concerning sus- the CDP, by conducted products timber and of forests use tainable which companies can disclose their an organization through information to global investors. environmental procurement its whether checks regularly Group Toppan The with the Basic in accordance departments operate properly - Policy in their transactions with business part Procurement partners to fill out ques- asked 15 business ners. The Group to improve in fiscal 2013 and used the results tionnaires operations. ­compliance in procurement business partners, on its website. from reports for receiving We pursue QCD (Quality, Cost, Delivery) in order to meet the needs of the meet the needs of the to Cost, Delivery) in order pursue QCD (Quality, We market. of trust with work to foster mutual cooperation and build relationships We business partners. supply chain. the entire CSR initiatives throughout promote We

I I I

PP. 10, 18). PP.

Basic Procurement Standards Basic Procurement of quality 1) Maintenance and improvement pricing 2) Appropriate 3) Stable supply safety 4) Product 5) Management of information 6) Compliance with laws and social norms 7) Fair business activities rights for intellectual property of and respect 8) Protection conduct improper of people reporting 9) Protection of information 10) Disclosure Concerning Human Rights, Labor, Standards Procurement and Anti-Corruption the Environment, 1) Human Rights the human rights of all people related Business partners should respect that their activities to their business activities. They should also ensure or indirectly. do not infringe human rights directly We fairly and impartially offer opportunities to all business partners and to all business partners and opportunities fairly and impartially offer We potential business partners. and conduct and regulations comply with domestic and overseas laws We fair business transactions based on corporate ethics. activities. procurement through the information obtained strictly control We We work to conserve the environment and reduce impact on the environment. impact on the and reduce the environment work to conserve We Turning to the environment, the Toppan Group promotes promotes Group the Toppan to the environment, Turning

CSR Procurement Standards CSR Procurement 1. 2. 

Basic Procurement Policy Basic Procurement I I I I TOPPAN CSR REPORT 2014 TOPPAN Toppan Group CSR Procurement Guidelines CSR Procurement Group Toppan CSR procurement in line with the Standards for the Manage- in line with the Standards CSR procurement the and Materials Raw of Components Chemical of ment Guidelines for the Sustainable Use of Paper Procurement ­Forest Resources.

The Toppan Group implements CSR initiatives in cooperation implements CSR initiatives in cooperation Group The Toppan entire the throughout partners business with collaboration and Guidelines CSR Procurement Group supply chain. The Toppan observes to drive this Group a set of principles the are guidelines consist of the Basic Procurement These endeavor. every by observed closely be to framework conceptual a Policy, operations, and employee involved in procurement Toppan to be a set of requirements Standards, the CSR Procurement In January 2014 the Group satisfied by every business partner. them into guidelines stipulating human rights, labor, revised and anti-corruption, the four issues globally the environment, also held briefing ses- emphasized in CSR initiatives. Toppan to questionnaires sions for business partners and conducted social corporate to address the status of their measures review (➞ responsibility Promoting CSR Procurement Promoting

Fair Operating Practices 26 Fair Operating Practices 27 TOPPAN CSR REPORT 2014 TOPPAN Bringing together individual strengths to fully to fully Bringing together individual strengths of the group exploit the integrated strength Established in June 2000 Revised in November 2010 Striving to improve quality and providing creations creations and providing quality Striving to improve satisfaction that contribute to customer Recognizing the importance of information related to business and managing it appropriately undertaking conservation of the global Proactively environment social contribution society through Building trust from of information disclosure activities and appropriate Established on April 1, 2001 Revised on August 1, 2011 We are deeply aware of the risks to the information assets we handle, such of the risks to the information assets we handle, such deeply aware are We as illegal access, loss, damage, falsification/manipulation, and leakage of against safety measures information, and take necessary and reasonable and that occur promptly any problems deal with and rectify these risks. We manner. in an appropriate information establish, operate, maintain, and continuously improve We security management systems. Proactively participating in the company’s activities to contribute to society society contribute to activities to the company’s in participating Proactively and local communities of and enhancing the transparency Disclosing information appropriately business activities 4. 5. Basic Principle 4: Avoiding all links with antisocial groups Basic Principle 4: Avoiding with antisocial groups of any dealings 1. Prohibition in antisocial activities of involvement 2. Prohibition of unjust benefits of provision 3. Prohibition Basic Principle 5:  of trust for the customer and building a relationship 1. Making our best efforts quality in every process 2. Striving to improve and services 3. Fully ensuring the safety and security of products rights of others 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 to improve and striving 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 and striving to cultivate it Brand pride in the Toppan 3. Taking companies working together to maximize integrated strength 4. Group - Having high ethical standards and acting as and acting as Having high ethical standards of society member 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 of prejudicial Prohibition procedure via the appropriate We collect information for appropriate purposes using appropriate purposes using appropriate collect information for appropriate We methods. We safely manage the information entrusted to us by customers in order safely manage the information entrusted to us by customers in order We our customers’ trust. to reciprocate We manage information necessary for our business appropriately in obser manage information necessary for our business appropriately We and the principles of social order. vance of our in-house rules, the law, Recognizing the diverse values of individuals and respecting personal personal of individuals and respecting Recognizing the diverse values qualities and individuality - rela appropriate Respecting business partners’ standpoints and building tionships with customers 3. 1. 2. Toppan Group Basic Policy on Information Security Group Toppan As a group of companies operating in the information communication industry, each of us at the Toppan Group carries out Group-wide information security information security carries out Group-wide Group each of us at the Toppan of companies operating in the information communication industry, As a group recip- to that the management of information necessary for business is a significant managerial challenge for us as a means management in the recognition Group. of the Toppan the ongoing growth our customers’ trust and promote rocate 19. Fulfilling duties with integrity and appropriately 20. Reporting promptly 2. Prohibition of discrimination of any kind of discrimination 2. Prohibition power harassment of sexual and 3. Prohibition Basic Principle 2:  practices entertainment 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 with the company of conduct that causes a conflict of interests 14. Prohibition gain or rebate for personal 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. Basic Principle 1: Respecting basic human rights Basic Principle 1: Respecting 1.  In the conduct of business Group 1. Acting with pride as a member of the Toppan and rule violations of illegal conduct of tacit approval 2. Prohibition and customs cultures 3. Respect for foreign In our private lives other people to 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 companies partner business with dealings in conduct improper of 2. Prohibition conduct against competitors of improper 3. Prohibition of false transactions 4. Prohibition 5. Conduct Guidelines (described on page 6). after Chapter 1 of the Conduct Guidelines presented the specific conduct guidelines are Here Conduct Guidelines Chapter 2: Specific Conduct Guidelines and Information Management Policy Management and Information Guidelines Conduct Chapter 2 defines the specific conduct practices that we should undertake based on the Basic Principles provided in Chapter 1. provided in Chapter based on the Basic Principles conduct practices that we should undertake Chapter 2 defines the specific Audit for a food filling/packing site session for internal auditors Training Certified Approval System for Manufacturing in Food for Manufacturing in Food System Certified Approval Packaging in Products Management of Chemical Substances Food packaging requires exacting quality assurance for safety assurance for safety exacting quality Food packaging requires sys- approval has adopted a certified and sanitation. Toppan part- and Toppan of sites operational the that ensure to tem containers and packages manufacture ner companies can The audits ratings in audits. the required only after receiving Guidelines Assurance Quality the on based conducted are carried out 17 for Food Packaging using a checklist. Toppan the Company audits at 17 operational sites inside and outside in fiscal 2013. safety management in product intensively promotes Toppan raw material procurement from all manufacturing processes, sub- chemical various controlling shipment, by product to While adhering or restricted. stances whose use is prohibited by client compa- prescribed standards procurement to green Procurement Green set of a established has Group the nies, manufactured of products attuned to the features Standards Solutions, Living at plants in the business fields of Material man- & Communication. Toppan and Information Environment, the entire throughout ages chemical substances in products supply chain. Management of equipment and Management of equipment and inspection devices Management of safety and sanitation of the admixture Steps to prevent products different of the admixture Steps to prevent substances foreign the outflow of Steps to prevent defective products contamination Steps to prevent Traceability Security Education and training Maintenance of systems and frameworks 5 operational sites at manufacturing subsidiaries 12 operational sites at production business partners •Agreement with customers •Quality assurance system • • • • • • • • • • • • Audit Points Operational Sites Audited Food filling/packing businesses Audits for the Food Filling/ Packing Businesses

Toppan works to continue acquiring information security management system (ISMS) certifications in order to to in order (ISMS) certifications management system information security to continue acquiring works Toppan information. personal further secure certification. Carbon Offset to acquire first calendar Japan’s calendar became A Toppan-made Toppan received two awards for its universal design (UD) initiatives in fiscal 2013. (UD) initiatives in fiscal for its universal design awards two received Toppan

user safety and health. Conduct Guidelines and Conduct Guidelines and management throughout management throughout We promote product safety safety product promote We 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 principles of corporate social the Group by securing safety and by securing safety and the Group

improving the quality of our products the quality of our products improving Every Toppan site continues improving its quality manage- quality its improving continues site Every Toppan

Points Product Safety Product ment system (ISO 9001) to bolster product safety manage- ment system (ISO 9001) to bolster product and eighty-six employees took part in ment. One hundred training sessions for internal sites in auditors at operational fiscal 2013. Toppan has established a Basic Stance on Product Safety Safety a Basic Stance on Product has established Toppan Man- Safety Product on Guidelines Basic and Management it the safety management of the products agement to secure following the for guidelines provides latter The manufactures. product secure to structure a of establishment the measures: use improper of risk the evaluating and identifying by safety mishaps and complying with laws or other product-related by each manufactured to products relevant and regulations and actual meas- division; information collection and provision and accidents or problems; case of product-related in the ures procedures. recall product TOPPAN CSR REPORT 2014 TOPPAN Quality assurance for products at Toppan is a concern for every at Toppan products Quality assurance for for responsible the departments directly department, not only involved in marketing, R&D, plan- The departments production. This delivery all contribute to quality. ning, design, sales, and as a in production describes quality assurance is why Toppan assurance”) and strives to improve total activity (“total quality safety. product quality and manage product Assuring Product Safety and Quality Assuring Product Consumer Issues Consumer Basic Stance on Product Safety Basic Stance on Product Management

Consumer Issues 28 Consumer Issues 29 TOPPAN CSR REPORT 2014 TOPPAN The wider spout opens automatically when torn pouring. at the top, for easier refill Unilever Japan LUX In fiscal 2013, Toppan won the 37th Kinoshita Prize spon- Prize Kinoshita 37th the won Toppan 2013, fiscal In Toppan assigns In the field of Information & Communication, to push up the wipes and make them easier to pull out when and make them easier to pull out when to push up the wipes they start to run short. of an Institute in recognition by the Japan Packaging sored in R&D for packaging. The prizewin- outstanding achievement stand-up pouch devel- a Jozu,” was “Sosogi ning packaging technology to make bag-making oped using a proprietary Sosogi Jozu Unilever Japan KK has adopted easier. refilling Its “LUX” brand earned products. bags for its hair care for refill Industries Manufacturing of Bureau the from award chief’s the and Industry of Japan Trade under the Ministry of Economy, by the Japan at the Japan Packaging Competition sponsored spout of Sosogi Federation of Printing Industries. The wide Jozu opens automatically when torn at the top, for easier refill pouring. enhanced user-friendliness, high value to diversity awareness, to UD proposals offer Departments in this field and continuity. and commu- client companies to help them design manuals and superior in quality, easier-to-use, nication tools that are total solutions are people. Their proposals accessible to more anal- from process whole covering the usage for continuous and the development and imple- yses of existing problems to specialist support mentation of in-house training programs of tools and manuals. for the editing, design, and production - The pushup button at the bottom pushes up The pushup button at the bottom pushes up the wipes and makes them easier to pull out when they start to run short. Unicharm moony baby wipes Established in 2001 Revised in April 2010 Design products and services that are are that services and products Design to people with different responsive more physical abilities and perceptions. Facilitate communication using multiple channels for communication, including visual, aural, and tactile channels. easier to use by making Make products them easier to understand. to move, easier that are products Make less and require easier to approach, the physical burdens). (remove strength - safe to use pro that are Design products mate- structurally, functionally, cedurally, and environmentally. rially, price at a reasonable products Provide by society. and in the amounts required Engage in design that appeals to the senses with consideration for comfort, enjoyment, and beauty. In fiscal 2013, Toppan redesigned the container for “moony the container for “moony redesigned Toppan In fiscal 2013, Toppan strives to help realize the fulfilling lifestyles enun- the fulfilling lifestyles strives to help realize Toppan 2. 3. 4. 5. 6. 7. 1. Examples of Universal Design Toppan’s Seven Principles on Toppan’s Universal Design http://www.toppan.co.jp/ud/ (in Japanese) http://www.toppan.co.jp/ud/ Toppan has been applying field, In the Living Environment and development abilities to devise UD its unique research brand values of client that enhance the inherent proposals products. Corporation, the baby wipes” in collaboration with Unicharm This new container has multiple of the product. manufacturer with one hand. finger grips to allow users to hold the container at the bottom The container also has a special pushup button Universal design (UD) is one of the prime corporate social is one of the prime corporate social Universal design (UD) - and pro a company that designs for Toppan, responsibilities communication tools consumers see and duces packaging and use every day. people with Philosophy by providing ciated in the Corporate with keeping In services. and products easier-to-use attractive, Seven on Universal Design and Toppan’s Declaration the Toppan UD promotes Principles on Universal Design, the Company weight to sensory values and initiatives that assign greater such as under customization while emphasizing functions Universal Design Initiatives Universal Design standability and usability. An easy-to-understand introduction to informa- tion security (in Japanese; published by PHP Toppan Institute, Inc. with editorial support from Printing Co., Ltd.) s) areas) area (3 series has long been used as a Close Calls on the Job series has long been used as a u (4 This book presents examples of misunderstandings and and misunderstandings of examples This book presents

areas) Tightly Controlled High-security Service High-security Tightly Controlled for Use Publishing In-house Educational Tools ­Outside the Company areas) hok The Gift Card ASP Service is a real-time balance management management balance real-time a is Service ASP Card Gift The by Fujitsu FIP Corporation and Toppan service jointly operated 2013 transactions. In August gift card for the settlement of the first payment service in Japan to this service became highest rating for information a rating of AAAis, the acquire security. The workplaces across key in-house educational tool at Toppan’s this professionals, of supervision the under Edited Japan. in December 2013 series was published by PHP Institute, Inc. The book as a handbook exclusively for corporate customers. - pre as such themes topical covers series of the compilation social media. cautions for the use of smartphones and misled into are mistakes in actual situations when workers to ask” or “I can just wing it!” Materials too late thinking “It’s - in the form of questions and answers accom presented are book sells outside panied by options and explanations. The in use as an in-house educational tool and remains Toppan companies in Japan. Group Toppan across (2 (32 Hokkaido To Chubu Kanto

areas) areas) & Shikoku (2 (14

More of these areas are working to acquire information information working to acquire are these areas of More Information and Communication Division (IT Solutions, IT Solution Department, Toppan Idea Center; Service Integration Department, IT Service Division, Idea Center; Service Integration Department, IT Service Division, Information and Communication Division (IT Solutions, IT Solution Department, Toppan Printing Co., Ltd. System Solutions Co., Ltd.), Toppan Toppan Joho Kako Co., Ltd. Co., Ltd.; Toppan Communication Products Printing Co., Ltd.; Toppan Information and Communication Division, Toppan System Solutions Co., Ltd. Toppan Oji Security Room, Data Center, Printing Co., Ltd. Toppan Committee, Information Security Management, Nishinihon Division, and ISMS Promotion Kyushu, Chugoku and Shikoku Team Printing Co., Ltd. Higashinihon Division, Toppan area)

I I I I I Toppan Group Companies with ISO/IEC 27001:2005 Certification (as of March 31, 2014) Companies with ISO/IEC 27001:2005 Certification (as of March Group at Toppan Areas Tightly Secured Strictly Managing the Handling of Personal Handling of Personal Strictly Managing the Information Chugoku Kansai Kyushu (1 security management system (ISMS) certifications in addition in addition security management system (ISMS) certifications areas tightly secured Toppan’s to PrivacyMark accreditation. in certification ISMS the acquired Division Higashinihon the at fiscal 2013. Personal information entrusted to Toppan by customers is by customers is Personal information entrusted to Toppan that have passed areas never handled outside tightly secured reviews based on stringent security criteria. qualification March of as Japan across areas qualified 58 operates ­Toppan 31, 2014. TOPPAN CSR REPORT 2014 TOPPAN the Handling of Personal Information (as of March 31, 2014) the Handling of Personal Information (as of March Number of Domestic Sites with Tightly Secured Areas Designated for Designated for Areas Number of Domestic Sites with Tightly Secured Toppan treats all personal information entrusted to the Com- all personal information entrusted to the treats Toppan and the interests to protect in order pany safely and securely trust of customers, and the reciprocate rights of individuals, to communication of more-personalized to cope with the growth services. Protecting Personal Information Protecting

Consumer Issues 30 Consumer Issues 31 - TOPPAN CSR REPORT 2014 TOPPAN -equivalent greenhouse gas (GHG) emissions associated emissions associated gas (GHG) -equivalent greenhouse 2 In fiscal 2013, Toppan participated in the Pilot Project for for participated in the Pilot Project Toppan In fiscal 2013, service disclosure and registration CFP the offer will Toppan Carbon Offsetting Based on the Carbon Footprint of the Carbon Footprint of Based on Carbon Offsetting Products  with a product or service throughout its entire life cycle, from life cycle, from its entire or service throughout with a product The CFP to disposal and recycling. raw-material procurement anyone can understand. In as a single number is expressed in the CFP system certification Toppan acquired fiscal 2012 printed materials (inter two fields: publication and commercial advertisement and mediate goods) and printed materials for business. Making Use of the Carbon Products the “Carbon Offset of 2013 operated by the Ministry of ­Footprint” Program aims to Japan. This project and Industry of Trade ­Economy, enterprises establish a framework under which participating or services with GHG emissions of their products the offset label and offsets”) (“carbon CFPs their to equivalent credits calculated mark. Toppan with the Carbon Offset their products amount, that offset ecollable Calendar, the Toppan the CFP of Toppan ecol- certification. The the Carbon Offset and acquired this in Japan to acquire lable Calendar was the first calendar certification. - prod more to client companies as a means of disseminating ucts with CFP labels. The carbon footprint of products (CFP) is a method to disclose to disclose (CFP) is a method products The carbon footprint of CO Toppan ecollable Calendar Toppan emissions in the the in emissions 2 A new material composed of this mechanically recycled recycled mechanically this of composed material new A In the field of flexible packaging materials, Toppan worked Toppan worked packaging materials, In the field of flexible film production stages up to final manufacturing can be stages up to final manufacturing can film production by reduced about 24% with compared - conventional petrole um-based PET films. by developed film (PE) polyethylene biomass a and film PET packaging detergent powder for adopted was 2011 in Toppan partially composed in September 2013. The biomass PE film is and has a biomass sugarcane of a raw material derived from material made ratio of up to 50% (by weight). The packaging existing of properties physical the retains films two these from tensile resistance, packaging materials in terms of shock and so on. laminating strength, strength, Powder detergent packaging made from Powder detergent packaging made from biomass and film PET recycled ­mechanically polyethylene (PE) film Toppan produces a host of environmentally friendly products friendly products a host of environmentally produces Toppan to a sustainable society. designed to contribute a mechanically Co., Ltd. to develop together with Toyobo packaging materials in 2012. PET film for laminated ­recycled resin than almost any recycled of more This film is composed CO 80%. made: ever film PET recycled other Contributing to Sustainable Consumption Contributing to

Class for elementary school students invited Class for elementary school students invited to the site (in Aichi) Plant tour for elementary school students Plant tour for elementary school students (in Saitama)

An operational site in Asaka City, Saitama Prefecture held held Saitama Prefecture Asaka City, An operational site in signed by an operational site in Under an agreement Fostering Future Generations and Contributing to to Generations and Contributing Fostering Future Education  Emergencies Forming Cooperative Relationships in Many operational sites at the Toppan Group organize programs organize programs Group at the Toppan Many operational sites people who one day will be and young to foster the children communities. Japanese sites arrange sustaining society and internships, other and programs, experience work tours, plant similar activities. local elementary a plant tour as a general study activity for The tour formed school students to enrich their education. to think children part of a special class designed to get the and how they can about issues of the global environment conversation. contribute to environmental to steps joint taking been have communities local and Toppan minimize damage caused by large-scale disasters. - with neigh Osaka City (Osaka Prefecture) ­Fukushima Ward, as of its premises boring communities, the site will open part shelter for local a tsunami evacuation building, a temporary tsunami strikes a involving disaster a large-scale if residents, The site also organized disaster drills area. the surrounding with 149 participants in fiscal 2013. - Roundtable conference with community with community Roundtable conference members (in Niigata) Plant tour for neighboring communities Plant tour for neighboring communities (in Saitama) - - - - - series to help enhance literacy in developing countries. enhance literacy Charity Concert series to help the 7th Toppan sponsored Toppan Toppan Group domestic and overseas sites have been engaging in diverse community contribution activities contribution activities in diverse community have been engaging and overseas sites domestic Group Toppan communities. with neighboring based on dialogue

In fiscal 2013, an operational site in Sakado City, Saitama Saitama City, In fiscal 2013, an operational site in Sakado

Points Dialogues with Communities tion drives across its operational sites in Japan for its operational sites in Japan for across drives tion lauded highly was activity This 1967. since 45 years, for the stable supply of blood as a cooperative effort was award 2013 The transfusion. blood for products Prince of Japan, the Honorary by the Crown presented Society. of the Japanese Red Cross Vice-President ing achievements of individuals and groups in dis ing achievements of individuals and groups seminating the blood donation philosophy and in blood donation. developing activities to promote has undertaken Company-wide blood dona Toppan nese Red Cross Society) held on July 5, 2013. The Society) held on July 5, 2013. The nese Red Cross Showa Memorial Fund for Blood Pro Emperor gramme was founded by the Japanese Red Cross the Emperor from Society with money donated ­Showa. Each year the fund bestows the “Promoting to commend the outstand Blood Donations Award” Awards for Blood Donation Drives Awards the “Promoting receiving of had the honor Toppan Showa the Emperor from Blood Donations Award” at the “49th Memorial Fund for Blood Programme of for the Promotion Ceremony National Awards by the Ministry of Blood Donation” (sponsored of Japan and the Japa Health, Labour and Welfare Toppan sites participate in the activities of local resident asso- sites participate in the activities of local resident Toppan The sites have ciations and other community organizations. activ- contribution community and activities business shaped - their com to the opinions sounded out from ities by referring also held at the sites are munities. Meetings and conferences operations and envi- to inform neighborhoods of production community initiatives, to answer questions from ronmental members, and to elicit opinions. neighboring com- invited some 370 visitors from Prefecture with jointly organized tour plant a for premises its into munities - an enriching expe associations. Participants shared resident personnel by touring the plant, seeing the rience with Toppan on reports receiving manufactured, facilities and products - and taking part in a bookmaking work efforts, environmental shop program. TOPPAN CSR REPORT 2014 TOPPAN tainable local development as a community member. Its Its as a community member. tainable local development sites have engaged in contribution domestic and overseas dialogues with neighboring constant activities forged through manifold is sustained through communities. Their dialogue in organizations that bring activities, including involvement together the opinions of community members. The Toppan Group has supported the communities in which which in communities the has supported Group Toppan The sus to contributing and issues local addressing by operates it Community Contribution and Involvement Community Contribution Community Involvement and Development and Involvement Community

Community Involvement and Development 32 Community Involvement and Development 33 - TOPPAN CSR REPORT 2014 TOPPAN A mother and her child learning in the together literacy class ©ACCU Literacy class in Cambodia ©ACCU

The first two of the eight Millennium Development Goals Goals The first two of the eight Millennium Development Concert series Charity the 7th Toppan sponsored Toppan Cooperating with InternationalCooperating with Issues Social Address Communities to Nations United the in participation its announced Toppan 2006 and pledged support for Global Compact in September anew that cooperative solutions to its principles. Convinced activities, vital for its community contribution global issues are Concert Charity series in the Toppan the Company launched 2007. This series aims to support global fiscal the next year, Liter countries. developing in rates literacy raise to initiatives write, and calculate with proficiency acy is the ability to read, daily life. to function well in sufficient poverty and hunger and (MDGs) seek to eradicate extreme a MDGs, the realize primary education. To achieve universal Toppan set of common goals of the international community, - literacy as an essential skill enabling people in devel regards The annual concert oping countries to stand on their own feet. literacy. series is a fundraising mechanism to support to the Asia-Pacific in fiscal 2013 and donated 1,939,000 yen now being for UNESCO (ACCU). The funds are Cultural Centre maternalon classes and used for literacy education child and in Cambodia. health for mothers raising young children - Visit to a welfare facility for the elderly facility for the elderly Visit to a welfare (in Thailand) Toppan kite at the Giant Kite Festival kite at the Giant Kite Festival Toppan (in Shiga) At a site in Thailand, 35 employees visited a welfare facility facility a welfare At a site in Thailand, 35 employees visited An operational site in Taito City, Tokyo works to strengthen strengthen to works Tokyo City, Taito in operational site An Initiatives at Overseas Sites Tie-up Activities with Local Cultural Events Tie-up Activities with Local portable shrine exhibition (in Tokyo) Work experience program (in Chiba) experience program Work Community contribution activities are also conducted at over Community contribution activities are seas sites. with love.” During for the elderly on a mission “to fill hearts songs, played games, and lunched with the visit they sang the welfare to necessities daily also donated The site residents. facility. Toppan has proactively engaged in activities to pass on local on local engaged in activities to pass has proactively Toppan communities the generations in to coming traditional culture sites. neighboring its operational to pass down the community and interaction with the Taito are shrines portable year Each traditions. and culture local them parade residents local before lobby site’s the in displayed in a seasonal festival. An operational site the streets through meanwhile, takes part Shiga Prefecture, in Higashi-Omi City, Festival. The in the traditional Higashi-Omi Giant Kite (Odako) designs andsite encourages employees to submit kite then kites Giant designs. winning select to votes workplace holds flown during the festival. the winning designs are fashioned from

8 7, 413 220 6,

4,186 kilotons kilotons kilotons 5, 3, 2, 2013

Fiscal Revised in April 2009

1 9 4 12 *Categories Other Established in April 1992 Category Category Category Category categories* 2012

Fiscal 3 1 2 232 445 4,396 kilotons kilotons kilotons Scope Scope Scope Scope 1-3 Greenhouse Gas Emissions Scope 1-3 Greenhouse on the Global Environment The Toppan Group Declaration Group The Toppan -

of oods s s

g

old oduct and s atment n and e pr of We observe all laws, regulations and in-company rules relating to the to the and in-company rules relating regulations observe all laws, We environment. utilization of limited of the Earth, we strive for the effective For the future burden. of all types of environmental and the reduction resources use of development and widespread the With we promote foresight, and contrib- that show consideration for the environment, products activities of customers. ute to the environmental with a wide to the environment engage in communication related We and strive for range of peoples both inside and outside the company, mutual understanding. in conservation environmental to approach proactive a take also We corporate activities in international society. tr oducts and good As responsible members of international society, As responsible Group we who work within the Toppan society a sustainable strive to realize looking corporate activities with consideration forward through global environment. for the conservation of the Basic Principles 1. 2. 3. 4. 5. oducts pr sold oods of of g ducts nsportatio o goods a sold pr pr distribution and End-of-life Tr Use I I Users and I -

ommuting ravel c t

activities, cesses

o and pr business Sales Employee entities I I company company entities by heating d by industrial of of eporting eporting

om r r supplied itself the the 2 1 supplie eporting missions fr r Fuel combustion E outside electricity outside cooling Consumption Consumption I I I Scope I Scope The company

raw n and The Group has calculated its entire value chain greenhouse gas emissions (scope 3 emissions) and identified identified 3 emissions) and gas emissions (scope greenhouse value chain its entire has calculated The Group of emission. sources larger represent which activity categories The Toppan Group has established a set of medium-and-long-term environmental targets for fiscal 2020 and fiscal 2020 and targets for environmental of medium-and-long-term has established a set Group The Toppan and Eco-creativity, Management, Eco-protection, Environmental activities in four areas: ahead with presses Communication. Environmental of

etc. etc. 3 nsportatio oduction of raw a materials, distribution materials, etc. Tr Pr Extraction of raw materials

I Suppliers, I I The Toppan Group has calculated its scope 3 emissions in fiscal 2012 and 2013 to identify the and 2013 to identify the has calculated its scope 3 emissions in fiscal 2012 Group The Toppan The Group will continue monitoring and evaluating GHG emissions across its value chain and its value chain and will continue monitoring and evaluating GHG emissions across The Group Scope Toppan’s environmental activities are divided into four areas— divided activities are environmental Toppan’s

Points More and more businesses around the world nowadays are quantifying and managing their value value their managing and quantifying are nowadays world the around businesses more and More raw material gas (GHG) emissions associated with every stage of operation from chain greenhouse emissions (scope 3), in addition to direct to the distribution and disposal of products procurement electricity consumption (scope 2). emissions associated with purchased (scope 1) and indirect of GHG emissions and to establish sources larger categories of corporate activity that represent material consump- raw shows that calculation This strategy. reduction targets in its emission priority categories 4 and 9 (transpor has purchased), Toppan tion in category 1 (manufacturing of products tation and distribution of these products), category 12 (end-of-life treatment of products Toppan has has Toppan of products category 12 (end-of-life treatment tation and distribution of these products), emissions. GHG of Toppan’s sold), and other categories collectively accounts for the largest share of process the life cycle and production throughout incurred burden environmental work to reduce every product. Four Environmental Activity Areas Activity Four Environmental Calculating Scope 3 Emissions Environmental Management, Eco-protection, Eco-creativity, Eco-creativity, Eco-protection, Management, Environmental set a enacted Group The Communication. and Environmental per Activities Eco-protection the strengthen bylaws to five of The Toppan Group promotes environmental initiatives based initiatives based environmental promotes Group The Toppan Declaration on the Global Environment, Group on The Toppan activities conservation the environmental a basic philosophy for of the Group. formed to minimize environmental burden associated with the associated with the burden formed to minimize environmental corporate operations: the Bylaw on Global Warming Group’s on the Building of a Recycling-oriented Mitigation, the Bylaw Management, the the Bylaw on Chemical Substance Society, The on Biodiversity. the Bylaw and Control, on Pollution Bylaw has taken steps to conserve the global envi- Group Toppan based on the five bylaws. in each of the areas ronment TOPPAN CSR REPORT 2014 TOPPAN Toppan’s Environmental Activities Environmental Toppan’s The Environment

The Environment 34 The Environment 35

— — 105); 105);

375 tons 0.70 tons/ million yen 4,527 tons Fiscal 2014 620 kilotons Environmental Environmental for for Values Target

70)

A S S A S B

Evaluation TOPPAN CSR REPORT 2014 TOPPAN

achievement rate [%]

2,198 tons: –5,128 tons) Rates Reduce VOC emissions into the Reduce VOC emissions into the to by 70% compared atmosphere the fiscal 2008 level (7,326 tons 93.8% 100.5% 111.0% 108.1% 103.9% 105.5% Conservation of the atmospheric Conservation of the atmospheric environment I Achievement

3. 

Fiscal 2013 Results 483 tons 0.72 tons/ million yen million yen million yen 4,238 tons 0.731 tons/ 632 kilotons 0.0121 tons/

105); A, Targets achieved (100 105); A, Targets Toppan arranged Group-wide e-learning programs in fiscal in fiscal e-learning programs Group-wide arranged Toppan Target Target Values 455 tons Improving Environmental Literacy Environmental Improving

0.75 tons/ million yen million yen million yen 4,762 tons 0.735 tons/ 688 kilotons agement system audits for 48 systems and carried out internalagement system audits sites in fiscal 2013. audits at 69 operational environmental the deficiencies taken to correct were Necessary procedures audits. pointed out during the to improve implements various measures Group The Toppan on social of its employees based literacy the environmental priority topics for year-by- to the environment, related trends activities, and other environment-related year environmental issues. rank-based 2013, along with sessions for optional training, focused training, and internal auditor training. The Group e-learningclosely on rank-based education by organizing - pro employees and training sessions for grams for managerial staff Briefing in manufacturing and technology departments. also held at 23 were ­sessions on chemical substance control measures. of control the reliability sites to improve 0.0128 tons/ 100); C, Activities insufficient (achievement rate [%] 100); C, Activities insufficient

-

100 [%] compared to the fiscal to the fiscal 87% compared 206 tons: –1,378 tons) Indicators emissions per emissions per emissions 2 2 Management Management Reduce final landfill waste disposal Reduce final landfill waste disposal by 2008 level (1,584 tons achievement rate [%] Action for building a Action for building a society recycling-oriented I CO Waste generation per per generation Waste unit of production value VOC emissions into the atmosphere VOC emissions into per the atmosphere unit of production value Final landfill waste Final landfill waste disposal CO unit of sales

I I I I I I 2. 

emissions 2 Reduce CO Reduce waste generation Reduce waste generation value per unit of production Reduce VOC emissions into the atmosphere Reduce final landfill waste Reduce final landfill waste disposal I I I I

emissions by 11% 2 Environmental Targets Environmental

669 kilotons: –82 kilotons) Reduce CO (751 kilotons compared to the fiscal 2008 level compared I Sixty-nine Group domestic sites undertake environmental undertake environmental domestic sites Sixty-nine Group The environmental audit follows a three-stage screening screening audit follows a three-stage The environmental Mitigation of Mitigation of global warming Conservation of Conservation of the atmospheric environment Action for Action for building a recycling- oriented society 1. Mitigation of global warming Operating Environmental Management Systems Management Operating Environmental 1.  3.  2.  Achievement rates: 200 – (values actually achieved / target values) × Values, Results, and Evaluation of Environmental Targets for Fiscal 2013 and Environmental Target Values for Fiscal 2014 Values Target for Fiscal 2013 and Environmental Targets Results, and Evaluation of Environmental Values, Medium-and-long-term Environmental Targets for Fiscal 2020 Targets Medium-and-long-term Environmental - man operates established environmental Group The Toppan man- based on its environmental agement systems (EMSs) agement rules. the Eco-protection under set targets the achieve to activities per Center collects environmental Activity Plan. The Ecology Environmental Management Activities Management Environmental formance data as the organization responsible for supervising for supervising formance data as the organization responsible The center then evaluates activities. environmental the Group’s of results to the Board reports the and verifies the data and - improve of Points bodies. other management and Directors manage- environmental continuous upgrading of the ment for the entire and implemented throughout proposed ment are Group. - a management system audit by an ISO 14001 reg process: and another an internal audit by the Ecology Center, istrar, underwent man- internal Toppan audit at the individual site. B, Activities fully carried out, but targets unachieved (70 Evaluation criteria: S, Results achieved far surpass the targets (achievement rate [%] - ) ) s g e l r ns in ns erial t the rm t: to O t: to Globa Ma Resource s s Solution wa consumption t t Releas te te Handling (Uni (Uni s s

TR n si n si TR ) ) ion ion 243 ) ) l n & n & ) 1% 5,269 4% l tal PR 9. ta 4% t 4. Solution Solution l tal PR 1% oductio oductio %) 6. g 0. Environmen Environmen To ota l %) %) To

s r To T 0 (3 1 (4 in erial erial .2 .0 t t 5 (1 (8.8 (20.8% 1 (7 34 06 the idant rm O Living 2, 22 Ma Ma Living Informatio Communicat 86 Informatio Communicat 51 Living 2, 17 Non-pr 0 (0 2 (0 Non-pr ox Globa Resource wa consumption Photochemica Environmen e ) ) 3 3 n g 0 m 0 m l n & r in 00 00 the 1, rm 1, O Globa t: t: s s Resource t Discharg wa consumption t t te te ommunicatio Informatio r Consumption s s C (Uni (Uni n si n si te fluen ) ) ) ion ion ) ) % % % % 2% n & n & 4% 4% 0% 0% 20 40 80 60 0. tal Ef %) 6,340 %) %) Solution Solution 7,627 5. 0% In the Living Environment field, the chart shows a significant impact field, the chart shows a significant impact In the Living Environment between oxidants, pollutants formed by reactions photochemical from Material the In atmosphere. the into released VOCs and sunlight warm global high comparatively the shows chart the field, Solutions and other facil- energy consumption in clean rooms from ing effects includes these indi- Group ities with high energy-loads. The Toppan and targets environmental medium-and-long-term its among cators impact of these types. environmental has taken steps to reduce 10 tal Wa oductio oductio l .8 2. Environmen Environmen To ta tal To 9 (6 2 (20. 5 (23.0% 6 (6 erial erial t t To Environmental impact To 5 (5.6 7 (4 7 (8.6 5 (1 58 29 75 14 Types of Environmental Impact by Business Field Impact by of Environmental Types Note: Informatio Communicat 54 4, 4, Ma Ma Informatio Communicat 91 Living Living 36 Non-pr 1, Non-pr 35 1, ) n 2 GJ) CO t- s t: 1,000 (Uni es es

t t s s (Unit: Consumptio ) ) ) n sit n sit n n ) ) ) Emission 8% 4% 2 .6% %) 6. 3 n & n & 2% 4% ) .2 CO 0. 9. Solution Solution 632,404 oductio oductio (4 6 (3 1 (25. 14,417 4 (3 l .6%

Environmen Environmen 6 (3 5 (3 54 ta 45 65 9 (25.9% tal Energy 74 erial erial t t otal 7 (4 2, 0, 2, To 38 64 72 ommunicatio ommunicatio T To 16 Living 26,5 Ma Ma 5, 23 Non-pr Informatio C 21 Living 65 Informatio C 3, 4, Non-pr ) e ns tons) t: to t (Unit: (Uni es es t t Inpu s s e Discharg ) ) n sit n sit ) n n rial ) ) st te 1% 1% %) 7% 9% 0. n & n & 1. %) .8 6. 1. Ma “Waste” in this report includes industrial waste of no value and waste materials of value sold or transferred as resources (both generated in associ- as resources includes industrial waste of no value and waste materials of value sold or transferred in this report “Waste” ation with business activities). energy consumption is the quantity of electricity and fuels consumed. Total up or down. rounded as decimals are values may not exactly match the sum totals of individual values, Total nt of the Act on in the year 2000 amendment of the Act on Energy consumption associated with fuel consumption is calculated using the conversion factor specified is calculated uniformly as 0.00983 GJ/kWh. the Rational Use of Energy of Japan. The primary energy input associated with electricity consumption values. estimated values based on production calculated from Some of the material inputs are 255,891 .3 Solution Solution l oductio oductio (2 (1 1,356,270 (3 T 6 (56.0% tal Wa 4 (4 1 (5 I I I I

Environmen Environmen (1 ta 40 43 19

16 19 76 To erial erial %) t t To otal - holistic view of the environ a This assessment provides ,3 ,4 7, 0, 8, PU 338 T ommunicatio ommunicatio

3,9 Living 3, 9 Non-pr 12 76 Living 0 (0 Informatio C Ma 30 Ma 38 C Non-pr Informatio 55 Life-cycle Impact assessment Method based on Endpoint modeling (LIME): (LIME): modeling Endpoint on based Method assessment Impact Life-cycle impact assessment A version of the damage-oriented environmental on the environmental ­method adjusted for application in Japan based impact categories is quan- derived from Damage domestically. background (e.g., human health, to be protected tified for each part of the environment impacts of biodiversity). Once the damage is quantified, the environmental integrated into a single index. multiple factors are OUTPUT IN TOPPAN CSR REPORT 2014 TOPPAN Notes: Major Types of Environmental Burden by Business Field in Japan (INPUT/OUTPUT data) Burden of Environmental Major Types * The Toppan Group applies the LIME* life-cycle assessment LIME* life-cycle assessment applies the Group The Toppan - environ on data OUTPUT INPUT and consolidate to method single a into activities business with associated burden mental impact. index of environmental and serves activities at the Group mental impact of all business envi- as a benchmark for establishing medium-and-long-term - of environ targets and checking the effectiveness ronmental - its environ has managed to reduce Toppan mental measures. a attained the Group In fiscal 2013, mental impact every year. to the fiscal 2006 level. compared 30% reduction Toppan’s Environmental Burden and Burden Environmental Toppan’s Impact Environmental

The Environment 36 The Environment 37

2 TOPPAN CSR REPORT 2014 TOPPAN All fluorescent lights at the head office replaced replaced office head the at lights fluorescent All with LED lights - Tech Toppan Solar panels (Experiment Center, Institute) nical Research emissions from transport. emissions from 2 Toppan Logistics will work to accomplish the targets for work to accomplish the targets for Logistics will Toppan Energy consumption per unit of transport volume in fiscal volume in fiscal Energy consumption per unit of transport Improving Transport Efficiency in Logistics Efficiency Transport Improving ­emissions were 34,886 tons, or 28.4% lower than the fiscal 2012 level. and further fiscal 2014 by optimizing transportation conditions transportation efficiency. improving Toppan Logistics Co., Ltd., the logistics specialist for the the for specialist logistics the Ltd., Co., Logistics Toppan Group Toppan is working with shippers from Group, ­Toppan the energy consumption per unit of companies to reduce company vehicles and the total volume ­transport volume by of CO kilotons for the year. The Itabashi Plant of Toppan Printing Printing The Itabashi Plant of Toppan kilotons for the year. Communication Toppan of Plant Kawaguchi the and Ltd. Co., Efficient “Kanto at the awards Co., Ltd. both received ­Products of the Branch by the Kanto sponsored Electricity Use Awards” a special award the former received Japan Electric Association: Trade of Economy, Bureau by the chief of the Kanto conferred for outstanding the top award received and Industry; the latter performance. the than higher 1.3% ton-kilometers, kL/million 58.2 was 2013 per in fiscal 2012. The energy consumption volume recorded to fiscal 2009 from unit of transport volume for the five years fiscal 2013 was reduced by an average of surpassing per year, 3.1% the targeted average reduction of 1%. CO

2 ) n) ar ye ye 20 80 60 40 00

0. 0. 0. 1. 0. 0 when when 2 illion fiscal ( /m 2 2 13 7272 O 63 0.0. 20 -C (t s s sale of nit 9 emission 12 7676 2 r u 67 0.0. emissions in fiscal 2013 emissions in fiscal 2013 20 O 2 pe /MWh. 2 11 sC 7575 695 0.0. 20 ) to help mitigate global warming. ) to help mitigate global 2 emission 2 CO Q emissions in fiscal 2013 amounted to 806,900 t-CO 2 1 08 7171 ) 2 75 0.0. emissions are calculated by the method specified in the Guide- calculated by the method emissions are 20 2 CO CO calculated using the effective emission factor from another MOE another MOE emission factor from calculated using the effective Concerning- the Calcu method specified in the Ministerial Ordinance Business Activities of Spec- Gas Emissions from lation of Greenhouse 31, 2010). ified Dischargers (the latest amendment on March lines for Calculating Greenhouse Gas Emissions from Businesses Businesses from Emissions Gas Greenhouse Calculating for lines (MOE) of Japan. The CO the Ministry of the Environment (2003) from emissions associated with electricity consumption, however, are cal- are emissions associated with electricity consumption, however, culated uniformly as 0.378 t-CO CO t- Emissions 0 0 0 0 0 0 2 The Group is switching from mercury-vapor lamps and and lamps mercury-vapor from is switching Group The CO of these efforts, As a result - in diverse activities through continued engaging The Group also installed heat-radiation-prevention Group The Toppan 20 50 30 60 90 000 , Mitigating Global Warming and Saving Energy Mitigating Global Warming 1, 1, (1 Note: CO The Toppan Group has been reducing the total emissions of the total emissions of has been reducing Group The Toppan carbon dioxide (CO Eco-protection Activities Eco-protection were reduced to 632 kilotons, below the targeted limit of 688 to 632 kilotons, below the targeted limit of 688 reduced were plate roofs and other buildings, and replaced older utility facil- utility older replaced and buildings, other and roofs plate years ago) with high-efficiency than 15 ities (installed more alternatives. operational gradually across lights to LED lights ­fluorescent LED lights at the replaced by lights were sites. All fluorescent Group installed in fiscal 2013. In September the head office of electricity at the solar panels capable of generating 88 kW Experiment Center. Institute’s Research Technical Toppan short- to cope with the power-supply out Japan in fiscal 2013 The 2011. of Earthquake Japan East Great the after ages a year system introduced nationwide demand-monitoring peak power earlier continued operating as a tool for controlling The electricity consumption demand in summer and winter. enables the Group data compiled for each site via this system power contracts and encourage energy-saving to review a site-by-site basis. on efforts on folded- materials for piping, painted heat-shield coatings ) - - e ar ye luen To 88 1 13 fiscal 2323 ( 22 4,4, 20 Cs VO 0 1 12 28 4,53 20 7 11 888 31 4, 20 6 2 08 32 36 7, 20 0 0 0 To prevent atmospheric pollution, the Group controls boil- controls atmospheric pollution, the Group prevent To installed waste- has water pollution, the Group prevent To s) 50 50 000 000 Preventing Pollution Preventing 7, 2, 5, 0, on Emissions into the atmosphere are calculated in conformance with the calculated in conformance with the are Emissions into the atmosphere established by the Japan Federation of Printing Industries (JFPI) standards Industries Associ- and Information Technology and the Japan Electronics ation (JEITA). 1 (t efforts, Toppan Printing Co., Ltd. received the Award for Excel- for Award the received Ltd. Co., Printing Toppan efforts, for at the “FY 2014 Awards Chiyoda City in Tokyo lence from Administrators for Large-scale Commer Outstanding Waste cial Buildings.” The Eco-protection Promotion Committee at each Group site site at each Group Committee Promotion The Eco-protection reg the than stringently more standards control in-house sets ulatory standards require. By complying with these standards, By complying with these standards, require. ulatory standards and burden environmental works to reduce Group the Toppan pollution. prevent for air pollutants by ers and other plant facilities responsible combustion condi- managing operations under appropriate continued enhancing efficiency tions. In fiscal 2013 the Group the plant controlling by precisely treatment in effluent-gas stipulated under the Air facilities subject to the requirements Act of Japan. VOC and toluene emissions Pollution Control reduced com- both 2013 were in fiscal into the atmosphere the fiscal 2012 levels. with pared facilities designed to cope with specific water water treatment sites. individual at conditions pollutant and consumption at Material systems have been installed recycling Wastewater in significant amounts. Solutions plants that discharge effluents wastewater via these systems, the and reusing By recovering the levels of water con- plants have been working to reduce discharge. sumption and effluent VOC and Toluene Emissions into the Atmosphere* VOC and Toluene * ) ) ) ar e) ns ar 5 5 0 5 0 0. 1. 2. 1. 2. 0 ye to ye 000 fiscal ( 1, fiscal ( e discharg 0.50.5 13 treatment treatment 13 st 92.592.5 99.599.5 20 20 255.9255.9 l wa e) ta e disposal / to st wa e discharg st cycling 0.40.4 12 12 re 20 92.792.7 99.699.6 l wa 20 landfill 265.1265.1 ta erial Final at / to Q (m ing l te yc ra e( ec 0.60.6 11 (r 11 te 20 91.591.5 99.499.4 20 cycling 267.6267.6 ra re ing e discharg l st yc erial t ec l wa Ma ta To 1.61.6 08 08 Q 93.093.0 98.898.8 20 ) 20 313.8313.8 ns to

0 0 0 0 0 0 0 70 85 95 80 90 Waste paper derived from operational sites primarily in the in the operational sites primarily from paper derived Waste waste other and conditions, separation volume, waste The 21 14 28 35 10

)R 000 Building a Recycling-oriented Society Building a Recycling-oriented , (% (1 In a drive to use limited resources more effectively, the Toppan the Toppan effectively, more resources In a drive to use limited of waste, increase the discharge works to reduce Group waste ­ appropriate rate, and apply the recycling methods. fields and Living Environment Information & Communication makes up the largest portion (75.4%) of the total waste dis- from sites. This is followed by waste plastics charged at Group field and waste acids such as plants in the Living Environment plants in the Material Solutions field. The waste etchant from rate by the material recycling striven to increase has Group by separating paper, waste paper into recycled processing into pellets, composite plastic waste plastics and processing acids, methods. Waste and by implementing other recycling internally chemical with have been processed meanwhile, particulates A change in the method for treating treatment. in in a 100 ton increase incinerators resulted discharged from with 2013, compared the final landfill waste disposal in fiscal disposal, the Group the landfill reduce To the year before. agent these particulates as a humidity control began reusing for solid fuels in February 2014. of reported at periodic meetings were for each office profiles and Disaster-preparedness the Health and Safety & Fire- The fiscal 2013. throughout Committees held at offices order in workplaces to feedback as provided is data reported these among employees. Through to heighten awareness TOPPAN CSR REPORT 2014 TOPPAN Recycling Rate and Material Recycling Rate Total Waste Discharge and Final Landfill Waste Disposal Discharge and Final Landfill Waste Total

The Environment 38 The Environment 39 - - 2 Current Progress* Current TOPPAN CSR REPORT 2014 TOPPAN Continuously monitored after after Continuously monitored remediation Monitoring completed: Standard Monitoring completed: Standard values continuously met Continuously monitored Continuously monitored Detail generating noise are more strictly maintained and strictly maintained and more generating noise are Soil pollution by fluorine and Soil pollution by fluorine and fluorine compounds Groundwater pollution by VOCs pollution by VOCs Groundwater (voluntary investigation of well water on the plant premises) Soil pollution by fluorine and its Soil pollution by fluorine and its compounds Groundwater pollution by pollution by Groundwater and hexavalent chromium toluene In fiscal 2013, the Toppan Group introduced new control new control introduced Group Toppan In fiscal 2013, the plants filed four complaints Toppan Communities around one production site exceeded the regulatory standards set set standards the regulatory exceeded site production one - imme took Group Toppan The Act. Regulation Noise the under to steps including case, every for measures corrective diate methods for facility control. the revise inspect facilities and has the Group measures, corrective Since implementing these taken necessary actions to and procedures control reviewed action against As a preventive recurrences. prevent reliably drills to cope regular holds pollution, the Group environmental during production with potential emergencies and accidents reviewed are procedures operations. Emergency-preparedness of the drills call for them. whenever the results or detect malfunctioning equipment to promptly standards cor and take required processes abnormalities in production man- trend has been advancing The Group measures. rective using an in-house agement based on the new standards that none of the regulatory database to ensure ­environmental exceeded. limits are of them involved and inquiries at four sites in fiscal 2013. Three to noise. The related inconveniences to community residents operation rules and either installed reviewed has Group to install them. ­sound-insulation facilities or assessed plans The facilities ­ The Toppan problems. noise-related inspected to prevent continue enhancing the quality of its environmental will Group in sur earnest dialogue with residents management through communities. rounding

Operational Site Toppan Technical Research Research Technical Toppan Institute (Kita-Katsushika District, Saitama) Asaka Plant Asaka Plant (Niiza City, Saitama) (Niiza City, Niigata Plant Niigata Plant (Shibata City, Niigata) (Shibata City, Itabashi Plant Itabashi Plant Tokyo) (Itabashi City, *2 As of March 2014 *2 As of March Purification of Soil and Groundwater Pollution Purification of Soil and Groundwater ) ar e l ye ta leas 9 9 1 To re 3 13 fiscal ( 26 26 ,89 24 1 5, 5, 20 l nsfer ta 1 To tra 00 0 12 111 72 72 30 2, 6, 6, 20 l ta handling To 0 8 6 11 22 ,01 34 7, 2 20 0 0 0 Group production sites have also been appropriately been appropriately also have sites production Group - ground has also been striving to prevent Group The Toppan s) 50 Dioxins are excluded because of a difference difference a of because excluded are Dioxins in the counting unit. 50 000 000 Approach to Environmental Compliance to Environmental Approach Controlling Chemical Substances Controlling 7, 2, 5, 0, on 1 (t *1 Chemical Substances Designated Law* under the PRTR In fiscal 2013 in Japan, one production site recorded VOC VOC recorded site In fiscal 2013 in Japan, one production set under standards emission levels exceeding the regulatory sites, meanwhile, Act. Four production the Air Pollution Control extracta- n-hexane or BOD, pH, of levels excessive recorded set for standards to the regulatory ble substances relative noise, Regarding water contaminants under the Sewerage Act. managing chemical substances based on established control on established control substances based managing chemical procedures. The Toppan Group has striven to reduce the consumption of of consumption the reduce to striven has Group Toppan The of these sub- chemical substances to mitigate the impacts For chemical substances desig- stances on the environment. (PRTR) Register Transfer and Release Pollutant the under nated consumption their reducing continues Group the Japan, of law by setting priorities in terms safer substitutes and introducing These measures of both the type and range of application. 21.6% of reduction year-on-year a achieve Group the helped designated in the handling amount of chemical substances surpassing the target for fiscal 2013. under the PRTR law, - facilities subject to the require water pollution by checking Law Pollution Control Water the revised ments stipulated by the on based measures preventive other taking and Japan of regime. regulatory

® Planting trees at Umi-no-Mori (Sea Forest) in in at Umi-no-Mori (Sea Forest) Planting trees Tokyo Incineration plant tour Biodiversity Conservation outside Operational Sites Biodiversity Conservation established by the Japan Business Initiative for Biodiversity (JBIB) established by the Japan Business Initiative for Biodiversity Based on a set of Guidelines for Sustainable Business Site Management Based on a set of Guidelines for Sustainable Business I Asaka the and Society Conservation Ecosystem Saitama The to in a project forces pooled their Plant in Saitama Prefecture living in Yanase and observe creatures make a mini-aquarium aquatic of the plant. Participants collected River upstream learned and mini-aquarium the to inhabit organisms to how how the organisms living in a water distinguish species and Toppan of water quality. a measure habitat can serve as incin- waste a and toured employees, meanwhile, planted trees The Umi-no-Mori sea eration plant at Umi-no-Mori in Tokyo. where zone a recycling-oriented of example a living is forest a beau- transforming a waste island into planting activities are spon- festival planting a in part The employees took forest. tiful Government saplings of plant to Metropolitan Tokyo by sored bear blossoms and local species that tolerate salty wind and to participants The plant tour spurred fruits attractive to birds. of urban waste. problems the rethink * Making a mini-aquarium at Yanase River Making a mini-aquarium at Yanase Creature watching at Yanase River watching at Yanase Creature

Improving Land-use Practices at Operational Sites Improving Biodiversity Conservation at Operational Sites Biodiversity Conservation Promoting the Conservation of Biodiversity the Conservation Promoting I 13 operational sites Since fiscal 2010, a cumulative total of to monitor have applied the land-use assessment method* to and to assess the degree organisms within their premises biodiversity. which their land-use methods contribute to I biodi- has promoted Prefecture The Fukaya Plant in Saitama with in collaboration within its premises versity conservation 2013 fiscal In 2012. fiscal since “SHU” NPO Environmental the together in the summer to enlarge the NPO and plant worked wildlife-support phase of a in the 3rd areas conserved forest “Paradise for Wild spotted acorn Participants project, Birds.” of the program, tangible effects seedlings and budding orchids, developed in fiscal 2012. They collaborated areas in forest up the birdhouses again in the winter in the 4th phase to clean of 80% about in nested had Tits Great 2012. fiscal in installed bird view to opportunity wonderful a creating birdhouses, the nests in their natural state. TOPPAN CSR REPORT 2014 TOPPAN Making signs for Paradise for Wild Birds with employees and for wild birds, Birdhouses their families joining in

The Environment 40 The Environment 41 TOPPAN CSR REPORT 2014 TOPPAN Small Categories In the “ecollable” booth, the Company set up a display on up a display on In the “ecollable” booth, the Company set Presenting at Eco-Products 2013 at Eco-Products Presenting At the Eco-Products 2013 fair in December 2013, Toppan in December 2013, Toppan 2013 fair At the Eco-Products own its on based solutions environmental new proposed By a sustainable society. towards ­“ecollable” concept oriented Company the “able,” and “collaboration,” “ecology,” combing unachievable by any one actor intends to show that eco-tasks of govern the collaborative actions - can be achieved through other and consumers, organizations, companies, ments, for the devel- stakeholders. These entities may work together technologies and the creation opment of new environmental chal- environmental schemes to resolve new society-wide of solutions such as environmental presented lenges. Toppan the eco-friendly packaging materials for lithium-ion batteries, These products Cartocan, and smart community initiatives. has realized and initiatives exemplify the endeavors Toppan companies, organizations, collaboration with client through governments, and and other entities in development, sales, operation. and resins using recycled processes packaging production companies and from that visitors could touch. Staff films rolled publicly discussed governments collaborating with Toppan new society-wide eco-schemes. viable strategies for creating Environmental Communication Activities Communication Environmental - Carbon footprint of products (CFP), life-cycle assessment (LCA), water footprint (WF) Carbon footprint of products Thinning Mark, etc. Examples: Eco Mark, Forest Reduced use of hazardous substances and volatile solvents (excluding banned substances) substances and volatile solvents (excluding banned Reduced use of hazardous Use of waste paper plastics Use of recycled Reduced consumption of energy and water Reduced use of materials in production paper use of tree-free paper, operations, use of forest-certified forest-thinning Use of lumber from materials and mineral resources Alternatives to petroleum-based use of biomass resources Effective design and production changes in product Reduced energy consumption through in equipment) changes through (excluding reduction processes electricity Use of green Same as left processes design and production changes in product Reduced water consumption through changes in equipment) through (excluding reduction of waste inside plants) (excluding reuse reduction Waste loading ratio design for improved Product friendly transportation environmentally Selection of more products from Reduction of chemical substances potentially released in durability and enhancement of functions improvement life through product Prolonged Reduced consumption of energy and water during use in reusability Improvement Easy separation and disassembly for reuse in recyclability Improvement Easy separation and disassembly for recycling waste paper collection routes) (excluding routes existing recycling Recyclability through disposal gas during Reduced emissions of hazardous (biodegradability, to nature materials that can be degraded and returned Use of recyclable etc.) photodegradability, Toppan Standards for Environmentally Friendly Products for Environmentally Standards Toppan Large Categories Visualization of environmental burden Visualization of environmental Labeling with environmental logos Labeling with environmental Reduced use of hazardous substances Reduced use of hazardous Use of recycled materials Use of recycled Use of materials with lower burden environmental efforts Resource-saving Use of sustainable resources Reduced energy consumption in production energy Use of recyclable Implementation of carbon offset Reduced water consumption in production Reduced generation of waste in production in transport efficiency Improvement Optimization of transportation of chemical Reduced release substances during use life Extension of product burden Reduced environmental during use Reuse Recycling friendly disposal Environmentally Use of biodegradable materials The total sales of environment-related businesses—includ environment-related of sales total The Toppan will approve and register “exceptional environmentally environmentally “exceptional and register will approve Toppan Life Cycle Stage Environment-related Businesses at Group Companies Businesses at Group Environment-related Developing and Approving Environmentally Friendly Friendly Environmentally Developing and Approving Products Proof of environmental of environmental Proof friendliness Production Distribution Use Disposal & recycling Raw material Raw material procurement Toppan Standards for Environmentally Friendly Products for Environmentally Standards Toppan Like Toppan itself, the companies of the Toppan Group Group the companies of the Toppan itself, Like Toppan line in products eco-friendly market and produce, develop, consideration of formulate themselves in they with standards social demands. friendly products sales of environmentally ing, most notably, at Group—stood satisfying the in-house criteria of the Toppan 244.6 billion yen in fiscal 2013. In fiscal 2013 Toppan replaced Toppan’s 14 Environmental 14 Environmental Toppan’s replaced Toppan In fiscal 2013 products eco-friendly for approving Points (in-house criteria for Standards by establishing Toppan set under ISO 14021) new set of criteria cov- a Friendly Products, Environmentally 94 products life cycle. A total of product ering five stages of the of as friendly products” “environmentally as registered were 2014. the end of March as eco-friendly by third- recognized that are friendly products” assessment cycle life undergone have that or organizations party the life cycle. across burden for quantification of environmental Eco-creativity Activities Eco-creativity Independent Assurance

As seen in the Global Reporting Initiative (GRI) Guidelines The environmental performance data disclosed in this CSR revised in May 2013, companies nowadays are required to report had to be rearranged for better alignment with organi- assess the impacts throughout their value chains along with zational restructuring. Overall, the data aggregation seems to the environmental and social impacts associated with the direct have been completed without any major disruptions. For data business operations of their own groups. Companies are also on social performance, we believe that it will be an essential required to take appropriate measures to address their impacts challenge for the Company to expand the boundaries of report- in proportion to the influences they confer and to disclose ing from Toppan Printing Co., Ltd. alone to more companies their policies, actions, performance, and other relevant facts. within the Group. When reviewing material issues for the entire Toppan has revised the Toppan Group CSR Procurement Group in the future, we recommend that the Toppan Group Guidelines and newly disclosed greenhouse gas emissions identify the spheres in which impacts occur for each material across its entire value chain (scope 3 emissions). This seems issue and redefine the organizations to be covered in reporting. to be a key step for meeting the social requirements described above. In coming reports we expect the Company to disclose more detailed information on its efforts to address the impacts Shinichiro Akasaka throughout its value chain and the results it achieves. 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 female managerial and supervisory staff Number of employees with disabilities; percentage of employees with disabilities 19 Human Rights Number of retired employees; number of reemployed employees Number of Recruits Number of Employees Reasons for Leaving 20 Average Annual Salary Annual Paid Leave Used Employees Taking Maternity or Childcare Leave 21 Number of employees who have resigned from the Company and registered to join the rehiring system for Labor Practices employees who resign from the Company for the delivery and upbringing of children 22 Occupational Health and Safety Number of employees who participated in the Toppan Business School Number of employees who participated in basic, Company-wide education (via e-learning programs) 23 Number of employees who were deployed overseas under the trainee system to acquire practical training in overseas business Number of employees who participated in selective training on globalization 24 Number of Conduct Guidelines Promotion Leaders; ratio of female Leaders Number of employees who participated in training sessions for Conduct Guidelines Promotion Leaders Number of employees who participated in training sessions on compliance with the Subcontract Law and the 25 Fair Operating Practices Act Concerning Special Measures for Pass-on of Consumption Tax in Japan Number of employees who participated in training (in group sessions or via the e-learning system) on export controls under the Foreign Exchange and Foreign Trade Act in Japan 26 Number of business partners surveyed to verify the legality of lumber used for paper production Number of employees who participated in training sessions for internal auditors 28 Consumer Issues Results of audits conducted based on the Quality Assurance Guidelines for Food Packaging using the quality audit checklist 34 Toppan’s Environmental Activities Greenhouse gas emissions in fiscal 2012 and 2013 Environmental Management 35 Environmental target values and results for fiscal 2013 Activities Toppan’s Environmental Burden and 36 Major Types of Environmental Burden by Business Field in Japan (INPUT/OUTPUT data) Environmental Impact

37 CO2 Emissions Total Waste Discharge and Final Landfill Waste Disposal 38 Recycling Rate and Material Recycling Rate VOC and Toluene Emissions into the Atmosphere Eco-protection Activities Number of production sites that recorded noise or chemical-substance levels exceeding applicable regulatory standards 39 Number of complaints and inquiries from communities around Toppan sites Chemical Substances Designated under the PRTR Law Purification of Soil and Groundwater Pollution Number of approved and registered environmentally friendly products; total sales of environment-related 41 Eco-creativity Activities businesses Some data in the CSR Report 2014: Detailed Data posted on the Toppan website are also assured by the assurance provider.

42 TOPPAN CSR REPORT 2014 Independent Assurance Report

TOPPAN CSR REPORT 2014 43 Group Business Structure

Customers

Toppan Group Structure

Manufacturing Companies Manufacturing and Sales Sales Companies Infor Companies Toppan Communication Products Froebel-Kan Co., Ltd.

m Co., Ltd. Toppan Forms Co., Ltd. Total Media Development Institute ation Toppan Graphic Communications Tosho Printing Co., Ltd. Co., Ltd. Co., Ltd. 2 other companies

& Communication Toppan Travel Service Corp. 8 other companies Toppan Printing Co. (America), Tokyo Shoseki Co., Ltd. Toppan Forms Central Products Inc. 24 other companies Co., Ltd. Toppan Printing Co., (H.K.) Ltd. 11 other companies Toppan M&I Co., Ltd. 13 other companies ∗ 8 other companies T.F. Co., Ltd. ∗Zhejiang Matsuoka Printing 9 other companies To Toppan Leefung Pte. Ltd. Co., Ltd.

ppan 24 other companies ∗Data Products Toppan Forms 1 other company 59 Ltd.

% 7 other companies Pr inting Co Manufacturing Companies Manufacturing and Sales

Companies .,

Toppan Packaging Products Ltd. Co., Ltd. Toppan TDK Label Co., Ltd. Living

Toppan Plastic Co., Ltd. Toppan Containers Co., Ltd. (Manufacturing

En Toppan Packs Co., Ltd. Toppan Prosprint Co., Ltd. 5 other companies 1 other company vironment Toppan Yau Yue Paper Products ∗Toyo Ink SC Holdings Co., Ltd. Ltd. 1 other company 2 other companies P.T. Indonesia Toppan Printing

18 10 other companies an % d sales compa

Manufacturing Companies Manufacturing and Sales Sales Companies

Companies ny Toppan Material Products Toppan Cosmo, Inc. Ma Co., Ltd. Tamapoly Co., Ltd. )

te Toppan Electronics (Taiwan)

rial Toppan Decor Products Inc. Toppan CFI (Taiwan) Co., Ltd. Co., Ltd. 5 other companies 1 other company

Solutions Toppan Photomasks, Inc. Toppan Interamerica Inc. 10 other companies ∗Advanced Mask Technology 23 Center GmbH & Co. KG

% 4 other companies

Products Materials Service

Notes: INo symbol: subsidiaries—154 companies *: affiliates—26 companies (as of the end of March 2014) IThe composition ratios given under each business field are percentages of overall net sales contributed. (“Net Sales by Business Field” are shown on page 3.) 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 13 countries and one region.

44 TOPPAN CSR REPORT 2014 CSR REPORT 20 REPORT CSR

CSR REPORT 2014 1 4 Report on Corporate Social Responsibility Activities

http://www.toppan.co.jp/english/ © TOPPAN 2014.10 K I Printed in Japan