Reducing Greenhouse Gas Emissions

We have been reducing total emissions of carbon dioxide (CO₂) and other greenhouse gases (GHGs) to help decarbonize society. To reduce Scope 1 GHG emissions (direct emissions from industrial processes or fuels consumed at the Group), we are systematically replacing utility facilities operated for extended periods with high-efficiency alternatives. Systems are also installed to abate high-global-warming-potential (GWP) gases emitted from semiconductor production processes, and high-GWP gases are switched to lower-GWP alternatives.

To reduce Scope 2 GHG emissions (indirect emissions associated with the consumption of electricity, heating, or cooling purchased or acquired by the Group), we are scaling down power consumption through energy-efficiency measures and the adoption of renewables such as solar panels. Electricity contracts with lower CO₂ emission factors are also being considered.

We are introducing an internal carbon pricing (ICP) system that will be applied to capital investments from fiscal 2023 onwards. This will allow us to scale up the installation of energy efficient, renewable-energy-driven facilities.

Toppan Logistics Co., Ltd., the logistics specialist for the Group, is working with Group company shippers to optimize transportation conditions and further enhance transportation efficiency. These companies are pooling their efforts to reduce the energy consumption per unit of transport volume by company vehicles and the total volume of CO₂ emissions from transport.

As a member of the Japan Federation of Printing Industries (JFPI), Toppan Inc. has driven industry-wide efforts to spawn decarbonization measures, chiefly through its involvement in JFPI activities to address climate change and promote low carbonization. The JFPI’s Working Group for Voluntary Action Plans on the Environment (under the Environmental Management Task Force of the Global Environment Committee) has made particularly strong industry-wide decarbonization contributions by implementing VOC-emission reduction measures and various other activities targeting the realization of a low-carbon, circular economy.

Japan established a green transformation forum called GX-league (https://gx-league.go.jp/en/) for cooperation between a group of companies and the government, universities, and academic institutions in order to meet greenhouse gas reduction targets and increase industrial competitiveness by using Japan’s goal of carbon neutrality by 2050 as an opportunity for economic growth.
We participate in this forum (list of members indicated on the GX-league website, https://gx-league.go.jp/member) and, through our Working Group, advocate for social structural change and rulemaking toward carbon neutrality.

Energy Management Programs

As part of efforts to contribute to a decarbonized society, the TOPPAN Group implements energy management by monitoring energy efficiency within the ISO 14001 framework, setting targets, and managing the progress of improvements. Specifically, we monitor and measure energy consumption and implement energy conservation measures. We also assess impact on the environment, set specific targets for energy efficiency improvement, and periodically assess and manage progress towards them.
Through these activities, the organization drives increases in energy efficiency in accordance with the requirements of ISO 14001 and contributes to a decarbonized society. Utilizing the ISO 14001 framework enables continuous improvements and effective energy management.

Energy audits to identify opportunities for improving energy performance

An energy audit is an important technique for evaluating an organization's energy consumption and identifying specific measures for efficiency and reduction. Based on the requirements of the Act on the Rational Use of Energy, the energy audit is conducted by reviewing the energy consumption of each facility and its ratio to the total consumption once a year based on the energy summary table of each facility. This enables us to identify opportunities for improvement by reflecting the impact of increases and decreases in equipment. In addition, monthly data on consumption of electricity, city gas, and other forms of energy are entered into a company-wide management system, and reports are made to quickly identify any significant increases or decreases. If necessary, extraordinary energy audits are conducted.

Quantified targets to address energy savings

In order to achieve the TOPPAN Group Medium-and-Long-Term Environmental Targets for Fiscal 2030, we have established Scope 1 and 2 targets for single fiscal years with the approval of the Board of Directors. The Ecology Center of the Head Office sets an annual target of 0.8% reduction in energy consumption through energy conservation. The Ecology Center breaks this down into targets for individual business sites, which set energy reduction targets to achieve the targets set by the Ecology Center.

Actions to reduce the amount of energy use

In order to reduce energy consumption, we monitor and visualize real-time electricity consumption, making it easier for employees and related parties to understand the status of energy consumption. This allows us to identify wasteful energy use and achieve efficient energy management. Furthermore, it is possible to analyze data on energy consumption, identify wasteful energy use, and implement measures for improvement. In addition, the Ecology Center at the Head Office keeps a list of obsolete equipment with reduced energy efficiency and gives instructions to systematically switch to high-efficiency equipment.

Evaluation of progress in reducing energy consumption

Progress in reducing energy consumption is monitored by the Ecology Center of the Head Office, which receives monthly energy performance reports from each business site via the management system, and checks the monthly figures and the degree of achievement against targets. Information on the progress of monthly energy consumption reduction is compiled and assessed based on this. Regular performance reports are made to senior management, who provide oversight and feedback on progress towards targets.

Use of clean or green energy

In the TOPPAN Group Medium-and-Long-Term Environmental Targets for Fiscal 2030, we set a target of a 6.5% renewable energy ratio. To achieve this goal, we are promoting procurement of renewable energy power and low-carbon power.

Investments in innovation or R&D to decrease energy consumption

We have introduced the Internal Carbon Pricing (ICP) system in order to promote investment in facilities that are highly effective in reducing energy consumption through technological innovation.

＜ICP System Overview＞

Internal carbon price	130 US dollars/t-CO2（at the time of introduction）
Scope and method	We will apply an internal carbon price to CO2 emission increases or decreases brought about by capital investments and will preferentially invest in measures with higher CO2-reduction effects.

Energy efficiency training provided to employees to raise awareness of energy consumption reduction

Education aimed at raising employees' awareness of the need to reduce energy consumption is included in education aimed at improving environmental literacy, based on company-wide environmental trends in society and the priority items for environmental activities in each fiscal year. Training programs include rank-based training, elective training, internal auditor training, and e-learning for all employees. Group training and e-learning are provided as part of rank-based training.

Greenhouse Gas Emissions

Based on the fiscal 2022 results, we calculated Groupwide Scope 3 greenhouse gas (GHG) emissions (indirect emissions not included in Scope 2, associated with business operations throughout the entire value chain of the Group) to identify the categories of corporate activity that emitted more GHGs and to establish priority targets in our GHG-emission reduction strategy. This calculation showed that several categories related to raw material consumption collectively accounted for the largest share of our GHG emissions, primarily: category 1 (manufacturing of products purchased by the Group), categories 4 and 9 (transportation and distribution of products purchased and sold by the Group), and category 12 (end-of-life treatment of products sold by the Group).

Values, Results, and Evaluation of Environmental Targets for Fiscal 2022