Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Compliance
• Improving Customer Satisfaction
• Respecting and Leveraging Human Assets
• Activities for Society and Culture
• Commitment to the Environment

Environmental Achievements

• Reduced atmospheric emissions of toluene by 38.8% compared to fiscal 2002 (98% achievement rate)
• Reduced final landfill waste disposal by 25.4% compared to fiscal 2002
• Reduced atmospheric emissions of dichloromethane by 23.0% compared to fiscal 2002
• Increased sales from environmental activities by 18.1% to 123.5 billion yen year on year
• Introduced 13 new environmentally-friendly products

Social Achievements

• Bunkyo Ward of Tokyo conferred Toppan its Award for Distinction as a Corporate Citizen
• Collaboration with the Palace Museum in China to preserve cultural artifacts using digital technologies
• GX Film won the 28th Kinoshita Award in the R&D Category
• Held a CSR Communication Fair to emphasize the importance of communication with stakeholders

Governance Achievements

• Established a Compliance Department in April 2003
• Established the Toppan Helpline, an internal reporting system
• Revised Conduct Guidelines in July 2003

Climate Goals & Targets

Environmental Challenges

• Delays in approvals for waste gas processing equipment installation resulted in a slight miss of the toluene emission reduction target.
• Increased energy usage due to opening of new production plants and renovation of existing facilities.
• Shortfall in targeted increase in sales of Environmental Businesses.
• Shortfall in targeted improvement of compliance ratio for Toppan’s Green Procurement Standard.

Mitigation Strategies

• Installation of waste gas processing equipment at four more plants in fiscal 2004.
• Bolstering energy management system to improve energy efficiency.
• Speeding up the development of environmentally-friendly products.
• Pressing ahead with current activities and promoting environmentally-friendly printing services.

Supply Chain Management

Responsible Procurement

• Basic trade contracts with about 12,000 companies
• Revised Procurement Guidelines
• Supplier Analysis

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative)

Certifications: ISO 14001, Privacy Mark, ISMS

Third-party Assurance: AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• GX film
• Electronic paper
• 25GB paper disc
• Environmentally-friendly ink
• Ecofoil
• Cartocan

Awards & Recognition

• Award for Distinction as a Corporate Citizen from Bunkyo Ward
• 28th Kinoshita Award
• Excellence Award at the 7th Environmental Report Awards

Environmental Metrics

ESG Focus Areas

• Compliance
• Global Environment
• Information Risk Management
• Product Safety and Quality
• Social Issues
• Supply Chain
• Community
• Human Assets

Environmental Achievements

• Reduced handling of PRTR designated chemical substances by 12.4% compared to fiscal 2007
• Increased number of certified zero-emission sites to 43 (out of 58 domestic sites)
• Reduced final landfill waste disposal by 14.2% compared to fiscal 2007
• Achieved 93% material recycling rate

Social Achievements

• Launched Clinical Art program for dementia prevention and mental health
• Introduced Conduct Guidelines for subsidiaries in Thailand and Indonesia
• Implemented various measures to reduce overtime work, resulting in a 90% reduction in employees working long hours and a 20% decrease in average overtime hours
• Increased ratio of female managerial and supervisory staff to 3.31%
• Reemployed 83 retired employees (60% of retirees)

Governance Achievements

• Acquired ISO/IEC 27001 certification in three operations and expanded the certification boundaries of two operations
• Established Conduct Guidelines Promotion Leader systems at all Group companies in Japan
• Strengthened auditing and supervisory functions through Management Audit Office and Compliance Department

Climate Goals & Targets

Environmental Challenges

• Decreased production volume in the second half of fiscal 2008 hindering achievement of environmental targets
• Toluene leak at Itabashi Plant
• Excessive overtime work
• Middling quality of CSR reports from Japanese companies in general

Mitigation Strategies

• Launched Pro-Green Activities to improve environmental management
• Decommissioned and emptied the leaking underground tank at Itabashi Plant; implemented measures to prevent solvent diffusion and recurrence
• Implemented company-wide efforts to eradicate extended overtime work; reviewed individual work methods and management practices; introduced new working systems
• Ongoing efforts to improve CSR initiatives and information disclosure based on stakeholder feedback

Supply Chain Management

Supplier Audits: 902 companies participated in briefing on CSR initiatives; onsite checks and interviews with business partners; Supplier Hotline established

Responsible Procurement

• CSR Procurement Guidelines; Basic Procurement Policy; CSR Procurement Standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 Guidelines

Certifications: ISO 14001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• Cartocan; ultra-thin DM; Toppan Material Wood; recycled vegetable-oil ink; paper composite containers

Awards & Recognition

• Ecology Award for paper composite container; awards for energy-saving measures at Toyama Plant and Kannabe Toppan Co., Ltd.

Environmental Metrics

ESG Focus Areas

• Organizational governance
• Human rights
• Labor practices
• The environment
• Fair operating practices
• Consumer issues
• Community involvement and development

Environmental Achievements

• Reduced final landfill waste disposal by 97% compared to the fiscal 2000 level
• Reduced VOC emissions into the atmosphere by 81% compared to the fiscal 2000 level
• Reduced CO2 emissions per unit of sales by 1% compared to the fiscal 2009 level (though overall emissions increased compared to 2000)

Social Achievements

• Launched various initiatives to support work-life balance, substantially decreasing average overtime hours
• Increased the rate of employees examined in regular health checkups to 100%
• Expanded opportunities to communicate with communities and made contributions responsive to community needs
• Supported educational programs for elementary school students

Governance Achievements

• Extensively revised the Conduct Guidelines in November 2010
• Held compliance education sessions for employees
• Strengthened audit functions through the Management Audit Office, Compliance Department, and Ecology Center

Climate Goals & Targets

Environmental Challenges

• CO2 emissions per unit of sales increased by 11% compared to the fiscal 2000 level
• Missed targets for material recycling of waste and the number of certified zero-emission sites
• Excessive overtime work
• Incidents related to odor and noise complaints from surrounding communities

Mitigation Strategies

• Formulated new medium-and-long-term environmental targets for fiscal 2020, shifting the CO2 emission target from a per-unit-of-sales basis to a total-emission basis
• Implemented various measures to control working hours, including reviewing work methods and introducing new working systems
• Installed VOC effluent-gas treatment equipment, implemented measures to mitigate noise and odor issues

Supply Chain Management

Supplier Audits: 34 audits at operational sites inside and outside the Company in 2010; questionnaires from 192 major business partners

Responsible Procurement

• CSR Procurement Guidelines, including Basic Procurement Policy and CSR Procurement Standards

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and renewable energy generation

Reporting Standards

Frameworks Used: GRI G3 Guidelines (Application Level B+)

Certifications: ISO 14001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• Toppan Material Wood, electronic paper, Cartocan

Awards & Recognition

• Printing Culture Promotion Award (Printing Museum)
• Outstanding Energy-Efficient Factory Award 2010 (Higashinihon Division)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by unspecified amount through energy-saving measures.
• Reduced waste by unspecified amount through waste reduction and recycling initiatives.
• 52 plants certified as zero-emission sites (TZERO-11) by September 2011.

Social Achievements

• Increased funds spent on training per employee from 41,789 yen in 2009 to 66,787 yen in 2011.
• Improved recruit retention rate from 49.9% in 2009 to 55.2% in 2011.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green Procurement Standards for Paper and Ink

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO 26000

Certifications: ISO 14001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• 105 environmentally friendly products as of March 2012

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor Practices
• Environment
• Fair Operating Practices
• Consumer Issues
• Community Involvement and Development
• Organizational Governance

Environmental Achievements

• Reduced carbon dioxide (CO2) emissions by 4% compared to the fiscal 2010 level.
• Reduced final landfill waste disposal by 2% compared to the fiscal 2010 level.
• Reduced volatile organic compound (VOC) emissions into the atmosphere by 7% compared to the fiscal 2010 level.

Social Achievements

• Launched Book Wagon mobile libraries, providing mental support and community building in disaster-stricken areas. About 5,000 residents used the service.
• Established the Reconstruction Support Development Center to provide medium-and-long-term support for disaster-stricken areas.
• Established a labor-management committee for enhanced job satisfaction, resulting in initiatives like the Toppan Sports Festival and the Welfare Guidebook.

Governance Achievements

• Strengthened governance structure through the establishment of a Management Audit Office, Compliance Department, and Ecology Center.
• Fully revised the Conduct Guidelines, establishing common principles for all Group companies.
• Implemented a Conduct Guidelines Promotion Leader system to disseminate guidelines and ensure compliance.

Climate Goals & Targets

Environmental Challenges

• Power shortages and supply chain disruptions due to the Great East Japan Earthquake.
• Floods in Thailand causing widespread damage.
• Sharp rise in the yen.
• Excessive overtime work.

Mitigation Strategies

• Expedited recovery at disaster-stricken plants.
• Strove to save electricity and supported reconstruction efforts.
• Restructured business continuity plans (BCPs).
• Company-wide effort to eradicate extended overtime work, resulting in a 95% reduction in employees working long hours compared to 2007.

Supply Chain Management

Supplier Audits: 68 suppliers reassessed in 2011; 283 business partners participated in briefing sessions.

Responsible Procurement

• CSR Procurement Guidelines
• Supplier Hotline

Climate-Related Risks & Opportunities

Physical Risks

• Power shortages due to the Great East Japan Earthquake

Opportunities

• Heightened expectations for renewable energy in Japan.

Reporting Standards

Frameworks Used: GRI G3 Guidelines (Application Level B+)

Certifications: ISO 14001 (multiple sites), ISO 9001 (multiple sites)

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• NESCAFÉ Eco & System Pack
• Packaging film made of biomass polyethylene
• GL Film

Awards & Recognition

• Technical Packaging Award in the 35th Kinoshita Prize
• Grand prize in the Itabashi Green Curtain Contest
• Award for distinguished environmental contributions from an environmental conservation association in Kaetsu, Niigata

Environmental Metrics

ESG Focus Areas

• Organizational governance
• Human rights
• Labor practices
• The environment
• Fair operating practices
• Consumer issues
• Community involvement and development

Environmental Achievements

• Reduced CO2 emissions by 82 kilotons compared to fiscal 2008 level
• Reduced final landfill waste disposal by 1,378 tons compared to fiscal 2008 level
• Reduced VOC emissions into the atmosphere by 5,128 tons compared to fiscal 2008 level
• 25% reduction in environmental impact compared to fiscal 2006 level

Social Achievements

• Increased the percentage of employees with disabilities to 2.13%
• Appointed 227 employee applicants (17.7% of all applicants) to their desired departments
• Reduced average overtime hours per month
• Removed the limit on the number of half-days employees can take as leave

Governance Achievements

• Implemented business continuity management (BCM) at all divisions and main Group companies
• Acquired Business Continuity Specialist certifications
• Strengthened audit functions through Management Audit Office, Compliance Department, and Ecology Center
• Disseminated Conduct Guidelines throughout the Group

Climate Goals & Targets

Environmental Challenges

• Excessive overtime hours in the printing industry
• Ensuring compliance with laws and regulations across the Group
• Maintaining product safety and quality
• Reducing environmental burden and preventing pollution

Mitigation Strategies

• Introduced new working systems, such as flextime and irregular working schedules
• Implemented company-wide education programs on compliance
• Established a Basic Stance on Product Safety Management and Basic Guidelines on Product Safety Management
• Operated established environmental management systems (EMSs) based on the Group’s environmental management rules

Supply Chain Management

Supplier Audits: 61 sites of 58 business partners surveyed to verify the legality of lumber used for paper production

Responsible Procurement

• CSR Procurement Guidelines
• Monitoring paper suppliers to ensure legal lumber sourcing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: United Nations Global Compact, 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

Certifications: ISO 14001, ISO 9001, FSC® Chain of Custody (COC), PEFC

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• Eco Flat Cup
• Mechanically recycled PET packaging material
• Cartocan

Awards & Recognition

• Accessible Design Package Award
• Japan Packaging Competition chairman’s award
• LCA Society of Japan Chairman’s Award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions to 632 kilotons (target: 688 kilotons)
• Reduced CO2 emissions per unit of sales to 0.72 tons/million yen (target: 0.75 tons/million yen)
• Reduced final landfill waste disposal to 483 tons (target: 455 tons)
• Reduced VOC emissions into the atmosphere to 4,238 tons (target: 4,762 tons)
• Achieved 100% target for operational sites for land-use assessment
• Increased total sales of environmentally friendly products to 244.6 billion yen (target: 218.9 billion yen)

Social Achievements

• Increased funds spent on training per employee to 82,318 yen
• Achieved 91% retention rate for recruits

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green Procurement Standards for Paper and Ink

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO 26000

Certifications: ISO 14001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• List of 94 Environmentally Friendly Products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor Practices
• Environment
• Fair Operating Practices
• Consumer Issues
• Community Involvement and Development
• Organizational Governance

Environmental Achievements

• Reduced CO2 emissions by 82 kilotons compared to fiscal 2008
• Reduced final landfill waste disposal by 1,378 tons compared to fiscal 2008
• Reduced VOC emissions into the atmosphere by 5,128 tons compared to fiscal 2008

Social Achievements

• Launched Hagukumi (nurturing) Program to support employees with children, including seminars and art salons
• Extended childcare leave and reduced working hours for employees with childcare responsibilities
• Became one of the “Diversity Management Selection 100” companies

Governance Achievements

• Revised Toppan Group CSR Procurement Guidelines
• Strengthened audit functions through Management Audit Office, Compliance Department, and Ecology Center
• Implemented business continuity management (BCM) at main operational sites

Climate Goals & Targets

Environmental Challenges

• Excessive overtime hours in the printing industry
• Ensuring CSR initiatives throughout the supply chain
• Managing risks related to product safety, information security, and environmental compliance

Mitigation Strategies

• Company-wide measures to reduce overtime, including new working systems
• Revised CSR Procurement Guidelines and briefing sessions for business partners
• Established risk management structure, internal reporting system (Toppan Group Helpline), and quality assurance systems

Supply Chain Management

Supplier Audits: 50 sites of 45 business partners surveyed for legality of lumber

Responsible Procurement

• Toppan Group CSR Procurement Guidelines
• Standards for the Management of Chemical Components of Raw Materials
• Paper Procurement Guidelines for the Sustainable Use of Forest Resources

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: United Nations Global Compact, 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

Certifications: ISO 14001, ISO 9001, Business Continuity Advancement Organization (BCAO) Business Continuity Specialist Grade I and II certifications, ISMS certifications

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• Mechanically recycled PET film for laminated packaging materials
• Biomass polyethylene (PE) film for packaging
• Toppan ecollable Calendar with Carbon Offset certification

Awards & Recognition

• 37th Kinoshita Prize
• Chief’s award from the Bureau of Manufacturing Industries
• Kanto Efficient Electricity Use Awards
• Award for Excellence from Chiyoda City
• Promoting Blood Donations Award from the Emperor Showa Memorial Fund for Blood Programme

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions to 593 kilotons (target: 620 kilotons)
• Reduced final landfill waste disposal to 373 tons (target: 375 tons)
• Reduced VOC emissions into the atmosphere to 3,935 tons (target: 4,527 tons)
• Increased recycling rates across various waste types (paper, plastic, oil, etc.)
• 59 sites approved as zero-emission sites (TZERO-14)

Social Achievements

• Increased funds spent on training per employee from 64,482 yen in 2012 to 77,654 yen in 2014
• Improved recruit retention rates (60.8% in 2014)
• Implemented various leave systems to support work-life balance (childcare leave, nursing care leave, etc.)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green Procurement Standards for Paper and Ink

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO 26000

Certifications: ISO 14001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• List of 94 environmentally friendly products (e.g., Ecothrough card, Smart Deli Bag, Eco Pack)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions (details in Metrics section)
• Reduced final landfill waste disposal (details in Metrics section)
• Reduced VOC emissions into the atmosphere (details in Metrics section)
• Increased number of zero-emission sites (61 sites approved in July 2016)

Social Achievements

• 91% retention rate for recruits (fiscal 2014 hires)
• Various family benefits and work-life balance measures implemented (details in report)
• Extensive employee training programs (details in report)

Governance Achievements

• Appointment of Independent Directors in accordance with Corporate Governance Code and Tokyo Stock Exchange regulations
• Detailed information on Board of Directors composition and tenure provided

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions throughout the entire supply chain (Scope 3)
• Further reducing waste and improving recycling rates

Mitigation Strategies

• Implementation of various energy-saving measures (details in report)
• Promotion of waste reduction and recycling initiatives (details in report)
• Green procurement policies for paper and ink (details in report)

Supply Chain Management

Responsible Procurement

• Green procurement standards for paper and ink (details in report)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 26000

Certifications: ISO 14001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• List of 87 environmentally friendly products provided (details in report)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 102.4% compared to the target value for fiscal 2017 (537 kilotons vs 550 kilotons target)
• Reduced final landfill waste disposal by 118% compared to the target value for fiscal 2017 (82 tons vs 100 tons target)
• Reduced VOC emissions into the atmosphere by 108.6% compared to the target value for fiscal 2017 (2,924 tons vs 3,200 tons target)
• Achieved 72% basic sale and purchase agreements with CSR procurement provisions with business partners supplying goods and services worth more than 10 million yen a year.

Social Achievements

• Increased the number of female managerial and supervisory staff to 360 (8.9% ratio of women among managerial and supervisory staff)
• Zero deaths from occupational accidents
• Launched the Hagukumi (nurturing) Program to support the wellbeing of employee parents
• Organized various community initiatives, including the Toppan Charity Concert series

Governance Achievements

• Revised the executive officer system to clarify the segregation of duties in corporate management and business execution
• Established an Advisory Committee for Nomination and Remuneration for directors
• No serious incidents or violations of laws or regulations in the course of business in fiscal 2017

Climate Goals & Targets

Environmental Challenges

• Risks related to the transition to a low-carbon economy or replacement of existing products by low-carbon alternatives
• Changes in customer behavior or increases in material costs
• Widespread public disapproval of the industry or changes in the attitudes of customers or society
• Escalation of typhoons, hurricanes, floods, or other natural disasters caused by extreme weather
• Shifts in global climate patterns such as rising sea levels or increasing average temperatures
• Cyber attacks

Mitigation Strategies

• Implemented a risk management structure
• Established a set of anti-bribery rules and guidelines
• Set up TOPPAN-CERT to address cyber attacks
• Organized regular training on information security
• Revised the Group’s personal information protection bylaws based on the amended Act on the Protection of Personal Information

Supply Chain Management

Supplier Audits: 2,100 business partners briefed on Toppan Group CSR Procurement Guidelines

Responsible Procurement

• Toppan Group CSR Procurement Guidelines
• Toppan Group Standards for the Management of Chemical Components of Raw Materials
• Toppan Group Paper Procurement Guidelines for the Sustainable Use of Forest Resources

Climate-Related Risks & Opportunities

Physical Risks

• Escalation of typhoons, hurricanes, floods, or other natural disasters caused by extreme weather
• Shifts in global climate patterns such as rising sea levels or increasing average temperatures

Transition Risks

• Risks related to the transition to a low-carbon economy or replacement of existing products by low-carbon alternatives
• Changes in customer behavior or increases in material costs

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 22301, ISO/IEC 27001, PrivacyMark

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• Ecothrough card
• Eco Pack
• Ecowall
• TOPPAN ECO SHEET
• GL BARRIER Stand-up pouch
• Cartocan
• Many other environmentally friendly products

Awards & Recognition

• Minister of State for Gender Equality Award at the Kids Design Award 2016 (for Hagukumi Program)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions to 527 kilotons (target: 535 kilotons)
• Reduced final landfill waste disposal to 79 tons (target: 80 tons)
• Reduced VOC emissions to 2,719 tons (target: 3,100 tons)

Social Achievements

• Launched the Hagukumi (nurturing) Program, receiving the Minister of State for Gender Equality Award at the Kids Design Award 2016
• Increased the ratio of women among managerial and supervisory staff to 10.0%
• Organized an open Group employee seminar focused on LGBT inclusion in the workplace

Governance Achievements

• Adopted an executive officer system to clarify authority and responsibilities
• Established an Advisory Committee for Nomination and Remuneration for directors
• Implemented a Toppan Group Helpline for reporting legal violations or improper acts

Climate Goals & Targets

Environmental Challenges

• Risks involved in Group control
• Risks involved in overseas business activities
• Quality-related incidents
• Soil or groundwater pollution
• Problems related to labor affairs (including long working hours)
• Damage to human or physical assets caused by natural disasters
• Information security risks

Mitigation Strategies

• Implemented a risk management structure with responsibilities allotted to specific head office divisions
• Conducted annual risk surveys and formulated countermeasures
• Acquired ISO 22301 certification for business continuity management
• Strengthened safety promotion systems with safety masters and personnel deployed to Group sites
• Implemented a web-based stress check system and e-learning-based self-care program
• Established a specialized team (TOPPAN-CERT) to address cyber attacks

Supply Chain Management

Supplier Audits: Briefed 2,104 business partners on Toppan Group CSR Procurement Guidelines; concluded agreements with 76% of business partners supplying goods and services worth more than 10 million yen a year

Responsible Procurement

• Toppan Group CSR Procurement Guidelines
• Standards for the Management of Chemical Components of Raw Materials
• Paper Procurement Guidelines for the Sustainable Use of Forest Resources

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, ISO 26000

Certifications: ISO 14001, ISO 22301

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• Environmentally friendly products (87 products as of March 2019)

Awards & Recognition

• Minister of State for Gender Equality Award at the Kids Design Award 2016 (Hagukumi Program)
• Health and Productivity Management “White 500” (large enterprise category) for three years running (2017-2019)
• Listed in the 2018 Health & Productivity Stock Selection

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 29.6% compared to the fiscal 2008 level
• Reduced final landfill waste disposal by 96.4% compared to the fiscal 2008 level
• Reduced VOC emissions into the atmosphere by 65.9% compared to the fiscal 2008 level

Social Achievements

• Launched the Hagukumi (nurturing) Program to support the mental wellbeing of employees with childcare responsibilities
• Established the Diversity & Inclusion Promotion Office to promote diversity and inclusion in the workplace
• Implemented various measures to support work-life balance, including childcare leave, nursing care leave, and reduced working hours

Governance Achievements

• Revised the Basic Policy on Corporate Governance to reflect changes in the internal reporting system and to align its governance structure with efforts made in promoting diversity in the workplace and addressing issues under the SDGs
• Established a Risk Management Working Group to identify and assess climate-related risks
• Acquired ISO 22301 certification for various security-related businesses

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on business activities (transition and physical risks)
• Supply chain disruptions due to large-scale disasters
• COVID-19 pandemic impact on business operations

Mitigation Strategies

• Implemented GHG emission reduction targets approved by the Science Based Targets initiative
• Developed business continuity plans (BCP) and business continuity management (BCM) activities
• Took measures to prevent the spread of COVID-19, including remote working and online training

Supply Chain Management

Supplier Audits: 81% of business partners that sell the Group goods and services worth more than 10 million yen a year have concluded basic sale and purchase agreements stipulating the observance of the Toppan Group CSR Procurement Guidelines (2019)

Responsible Procurement

• Toppan Group CSR Procurement Guidelines
• Basic Policy on Biodiversity
• Standards for the Management of Chemical Components of Raw Materials
• Paper Procurement Guidelines for the Sustainable Use of Forest Resources

Climate-Related Risks & Opportunities

Physical Risks

• Damage to operational sites caused by large-scale disasters
• Procurement problems caused by supply chain disruption
• Insufficient air conditioning capacity and increase in energy costs due to rise in ambient temperature

Transition Risks

• Cost increases due to tightening of energy-saving legislation and other regulations
• Cost increases due to carbon taxation and cap and trade programs
• Decrease in demand for paper media and petroleum-based plastic products

Opportunities

• Selling of emission credits generated
• Cost decreases due to low-energy production
• Expansion of digital business for information media
• Expansion of business for plastic-free and easy to recycle materials

Reporting Standards

Frameworks Used: GRI, ISO 26000, TCFD

Certifications: ISO 14001, ISO 22301, PrivacyMark

Third-party Assurance: KPMG AZSA LLC

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 16 (Peace, Justice and Strong Institutions)

Toppan's initiatives contribute to these goals through various environmental, social, and governance activities.

Sustainable Products & Innovation

• GL BARRIER transparent barrier films
• Cartocan paper-based beverage containers
• 101 ECO SHEET series
• Various environment-friendly packaging products

Awards & Recognition

• Minister of State for Gender Equality Award at the Kids Design Award 2016
• 47th Suntory Music Award in 2016 for Toppan Hall

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital and Diversity
• Human Rights
• Supply Chains

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 32.7% (renewable energy ratio of 2.5%) compared to the fiscal 2017 level.
• Reduced Scope 3 GHG emissions by 17.3% compared to the fiscal 2017 level.
• Reduced final landfill waste disposal by 43.4% compared to the fiscal 2017 level.
• Increased renewable energy share to 2.5% of total energy use.

Social Achievements

• Launched employee well-being programs, including mental health support and flexible work arrangements.
• Improved employee engagement score by 0.3 points compared to fiscal 2021.
• Increased percentage of women in management to 12.3%.
• Increased percentage of eligible male employees taking childcare leave to 88.6%.

Governance Achievements

• Enhanced board diversity by raising the proportion of independent external directors to one-third.
• Established an internal carbon pricing system.
• Established a comprehensive risk management framework incorporating sustainability perspectives.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events and geopolitical risks.
• Securing human resources to support growth.
• Insufficient occupational safety and health management.
• Insufficient communication with external stakeholders.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Strengthened efforts focused on human assets for digital transformation.
• Implemented extensive safety training programs and risk assessments.
• Improved internal and external communication channels.

Supply Chain Management

Supplier Audits: 1952 SAQs received from business partners in 2023 (67% response rate). Onsite assessments conducted at 4 sites.

Responsible Procurement

• TOPPAN Group Sustainable Procurement Guidelines
• Standards for the Management of Chemical Components of Raw Materials
• Paper Procurement Guidelines for the Sustainable Use of Forest Resources

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flooding

Transition Risks

• Carbon tax, increased energy costs, changes in customer attitudes

Opportunities

• Growth in sales of environmentally friendly products and services, development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, TNFD, UNGC

Certifications: ISO 14001

Third-party Assurance: Independent assurance provider

UN Sustainable Development Goals

• Not disclosed

The report aligns with the SDGs through TOPPAN Business Action for SDGs and the TOPPAN SDGs STATEMENT.

Sustainable Products & Innovation

• Mono-material barrier packaging
• Recyclable packaging products
• Fuel cell components (CCMs and MEAs)

Awards & Recognition

• Minister of State for Gender Equality Award
• Grand Mécénat Award
• Chemical Daily Award and Risk Sensitivity Study Group Award
• Gold ranking in the PRIDE Index (three consecutive years)