The TOPPAN Group recognizes that a globally expanding business relies on and impacts natural capital^*, and that changes in the natural environment such as climate change and biodiversity^* have a significant effect on the Group. To advance a sustainable society, we established the TOPPAN Group Environmental Policy in fiscal 2024, outlining three key elements: issues to address, commitments, and mechanisms and initiatives to achieve them. Based on this, we are working to drive both corporate value and a sustainable society.

We have promptly responded to international initiatives such as the Task Force on Climate-related Financial Disclosures (TCFD) and Task Force on Nature-related Financial Disclosures (TNFD). Climate change and nature-related issues* require an integrated approach. In the 2025 revision of this report, we have deepened value chain analysis and enhanced the level of integration. When considering risk countermeasures and business opportunities, we do not address sustainability themes independently, but consider trade-ons/trade-offs between initiatives, and implement measures to both mitigate/adapt to climate change and resolve nature-related issues. For this report, we made efforts to disclose information for all items in the TCFD and TNFD recommendations and have specifically considered the following in line with the general requirements.

1) Materiality

We define material issues for specific business activities and Companywide activities toward our long-term vision of “Digital & Sustainable Transformation.” We also consider materiality from the perspective of contributing to the SDGs. To be a responsible corporate citizen, we identify issues to address through overall corporate activities under the theme of “Companywide Materiality” and those focused on through business activities under “Business Materiality,” selecting environmental issues for each and addressing them from the perspectives of business foundation and business operations.

2) Disclosure Scope

We evaluate and disclose information covering the entire value chain (upstream, direct operations, downstream). All 168 global sites and all businesses are covered in direct operations. In the supply chain, we prioritize risk and opportunity assessments for raw materials (wood procurement) with a strong impact on one of our main businesses, Information & Communication. For downstream (plastic collection and disposal), our analysis focused on seven countries that are major manufacturing and sales bases for our plastic packaging materials. To comply with Global Biodiversity Framework (GBF) Target 15, we regularly monitor and assess biodiversity risks, dependencies, and impacts, and disclose information transparently.

3) Integration of Other Sustainability-Related Disclosures

We recognize climate-related issues and nature-related issues mutually affect one another. Disclosures are integrated with TCFD, but stakeholder engagement for biodiversity under “Governance” is described as a nature-related issue, and “Strategy” and “Metrics and Targets” are integrated for climate and nature-related issues, while following the respective recommended approaches.

4) Period Covered

We set targets for climate change and nature-related issues within our annual plans (short-term: within 1 year), medium-term plans (medium-term: 2–3 years), and long-term vision (long-term: 4–30+ years).

5) Engagement with Indigenous Peoples, Local Communities, and Affected Stakeholders

Regarding human rights as a paramount principle guiding business and sustainability initiatives and recognizing the importance of engaging with local residents and Indigenous peoples, we have established a grievance mechanism for complaints and concerns from all stakeholders. Information on external trends and stakeholder feedback on nature-related issues is obtained by participating in organizations and consortia and used to identify and examine issues and drive biodiversity activities. We disclose information to stakeholders through annual integrated reports, sustainability reports, and more.

6) Initiatives for Next Fiscal Year and Beyond

We will further enhance and refine disclosure by reviewing risk scenarios under TCFD and expanding TNFD scope to include upstream elements beyond wood procurement. We also aim to strengthen TNFD disclosure and complete early adopter disclosures, including considering responses based on the TNFD nature transition plan guidance scheduled for fiscal 2025.

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“Natural capital” refers to natural assets such as animals, plants, water, soil, atmosphere, etc., which provide benefits to corporations and society through ecosystem services. “Biodiversity” is a part of natural capital, denoting the diversity of animals and plants. This diversity plays a role in maintaining natural capital soundly and stably by preventing natural disasters such as floods and droughts and enhancing recovery, as well as supporting carbon and water cycles and soil formation, and is deeply connected to water resources and soil. This page expresses “biodiversity” to include the meaning of “natural capital.” In addition, the term “nature-related issues” is used to mean issues concerning natural capital as a whole, focusing on biodiversity, and is used together with “climate-related issues.”