Toyo Seikan : FY2022 Report

Contact: Sustainability Department, Toyo Seikan Group Holdings, Ltd.		Toyo Seikan Group
Osaki Forest Bldg., 2-18-1Higashi-Gotanda,Shinagawa-ku, Tokyo 141-8627, Japan		SUSTAINABILITY REPORT 2022
Tel. [phone]	Published in November 2022

Editorial Policy

With the Long-Term Management Vision 2050 "The Future, Wrapped for All," the Toyo Seikan Group will go beyond its traditional field of packaging manufacturing to be a corporate group that creates a new value and changes the world.

This report has three major parts: Environmental, Social, and Governance sections, and each section mainly describes activities we conducted during fiscal 2021, for better understanding of our specific measures and initiatives.

Please visit our website for information not covered by this report, including sustainability-related policies, systems, and data.

https://www.tskg-hd.com/en/csr/

Please refer to the relevant websites for details of activities at group companies described below.

(Reports marked with an asterisk (*) are available only in Japanese.)

Report Profile

Companies covered by the Report:

Domestic and overseas group companies including Toyo Seikan Group Holdings, Ltd.

Period covered:

April 1, 2021 to June 30, 2022

Numerical data:

April 1, 2021 to March 31, 2022

Published in:

November 2022

Referenced guidelines:

GRI Sustainability Reporting Standards

Management Philosophy of Toyo Seikan Group

Management Policy

We will constantly create new and innovative values, aspire to achieve

a sustainable society and contribute to people's happiness.

	We will honor dignity and always strive to be fair and unbiased in every way.
Creed	All of us will fully demonstrate our own strengths and expertise, and contribute to social
	prosperity while we grow and thrive as an individual, a corporation or a group.
Vision	We will aim to become the Group which can provide unique and innovative technologies­
and products that will meet global expectations.

Toyo Seikan Co., Ltd.: Environmental information

Toyo Kohan Co., Ltd.: CSR*

Tokan Kogyo Co., Ltd.: CSR

Nippon Closures Co., Ltd.: Sustainability*

Toyo Glass Co., Ltd.: Environmental Activities*

Mebius Packaging Co., Ltd.: CSR

Toyo Aerosol Industry Co., Ltd.: Environmental Policy*

TOMATEC CO., LTD.: The Measure for Environment

The Future, Wrapped For All

Fundamental Principles of Toyo Seikan

In 1933, our founder Tatsunosuke Takasaki clearly stated our founding philosophy as the fundamental principles in the handbook "The Mission of Toyo Seikan," which was distributed to shareholders, employees, and partners in the industry. Since then, we have fulfilled our duties based on the principles. This is the origin of CSR activities of the Toyo Seikan Group.

1. Our aim is to achieve results that bring happiness to mankind.
2. We shall work not just for profit, which is merely a result of our business activities and not the main purpose.
3. All of us shall have a spirit of service to fulfill our respective duties and demonstrate the spirit as the entire organization, striving for the prosperity of our business partners in the same way as for our own success.

Table of Contents

Editorial Policy/Report Profile .....................................	2
Management Philosophy of Toyo Seikan Group/
Fundamental Principles of Toyo Seikan ....................	3
Top Message:
We will pursue new value creation
with all abilities of the Group, aiming
for continuous growth to be
a "daily living platform." ..........................................	4
Company Profile .........................................................	6
Sustainability Management of Toyo Seikan Group .....	7
Materiality of Toyo Seikan Group................................	8
Sustainability Strategy of Toyo Seikan Group
Developing an Environmental Axis as
a New Value Standard.................................................	10

Environmental
Contributing to Environmental Protection ....................	12
Social
Respect for Human Rights .........................................	22
Responsible Procurement...............................................	23
Respect for Employees ..............................................	24
Contributing to Communities ......................................	31
Governance
Ensuring thorough compliance ...................................	32
Risk Management ......................................................	36
Independent Assurance Report.......................................	38
Toyo Seikan Group Companies ................................	40

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Top Message

Our intention to support society as a "daily living platform"

We will pursue new value creation with all abilities of the Group, aiming for continuous growth to be a "daily living platform."

For over 100 years since its founding in 1917, the Toyo Seikan Group has continuously supplied the world with products that meet the values and needs of consumers, while flexibly responding to changes of the times. We provide products that people see and touch every day, including metal cans, glass and PET bottles, plastic containers for shampoo and detergent, retort pouches for food, paper cups and corrugated cardboard as well as refrigerator door materials and coating materials for built-in kitchens. These products play the same significant role as social infrastructure, which is essential to daily lives. To express our pride and responsibility in providing such products, we have stated in the Long-Term Management Vision what we aim and want to be by using the term a "daily living platform." With this term, we show our strong desire to be able to address various social issues beyond the boundaries of packaging containers and become a platform necessary for a sustainable society.

To realize our intention, the Long-Term Management Vision has two main themes: "responding to diversity" and "creating a sustainable society." As lifestyles are increasingly diversifying, we can even say that today there are as many needs as there are people. In such a world, we cannot survive by relying on mass production that focuses on efficiency. Meanwhile, pursuing what

is most beneficial and valuable for each individual has great importance in terms of solving social issues. For example, while beverage cans are still in great demand, they may not be friendly to users who do not have the strength to open a pull-tab can or those who are holding a little child with one hand. From this point of view, we should consider whether our products and services actually address ongoing social issues and meet individual needs. I believe that finding a new value with this attitude helps us become a daily living platform.

With increasing demand for corporate responsibility for the environment, business operations must be conducted with due consideration to the environment. We aim to provide products, systems, and services that further reduce environmental impact and build an environmentally friendly value chain. Packaging containers become garbage after the contents are consumed. We therefore recognize that our duty is to design a social infrastructure system that incorporates the production, collection and recycling processes and to build such systems in the society for a prosperous and healthy future. Taking advantage of our abilities to process every kind of materials and our unique technologies developed through packaging manufacturing, we will continuously contribute to a sustainable society.

Building a working environment that allows diverse talent to grow and thrive

President and Representative Director

Toyo Seikan Group Holdings, Ltd.

Raising awareness of the Long-Term Management Vision across group members to maintain their motivation for progress

In order to realize our Long-Term Management Vision, we need to develop human resources that support the Group's future growth. It is human resources that drive business growth-based on this perspective, we are promoting female empowerment and mid-career recruitment and introducing an open internal recruitment system for new business opportunities. With these measures in place, we aim to create a vibrant corporate culture in which individuals can demonstrate their different abilities and respect each other's personalities.

In 2021, we also launched a group-wide recruitment system for new graduates as a new initiative of human resource development.

Traditionally, the Group's workers have built their career in a group company they belong to. However, career needs have increasingly diversified as the times change, and we are required to meet the needs through a concerted action of the entire group rather than separate efforts of individual companies for our survival. We therefore decided to introduce the new recruitment system to enable employees to build a career in a common, group-wide framework. The new system is expected to facilitate the mobility of talent across the group, causing different values to meet together and creating unexpected, surprising results.

Toward year 2050, a distant horizon, one of our major issues is how we raise awareness among all group members of the Long-Term Management Vision 2050 "The Future, Wrapped for All" (the "Long-Term Management Vision"), the Mid- to Long-Term Management Goals 2030, and the Mid-Term Management Plan 2025 to foster a sense of unity, revitalize our workplaces, and maintain momentum in our efforts.

In the process to formulate the Long-Term Management Vision, we did not just provide a draft prepared by management but rather had a lot of discussions with employees in their 20s to 40s, next-generation leaders, to incorporate their perspectives into the new vision. As a result, we have received unprecedented positive responses. However, establishing the Long-Term Management

Vision as well as the Mid- to Long-Term Management Goals 2030 and Mid-Term Management Plan 2025, which are linked to the long-term vision, is just the beginning of a long journey for us. On the way, we may face unexpected changes in business environment, or may sometimes struggle with difficulties. When facing such challenges, we will need measures to keep motivation, without paying too much attention to short-term profits and losing a clear view on mid- to long-term goals, or losing the direction of our efforts, so that each of us can see the issues as our own and move forward. To this end, management will continue to focus on sending messages to employees through various media and engaging in dialogue with them in every workplace.

Continue to take on the challenge of creating a new value to realize a sustainable society

With the Long-Term Management Vision, we will go beyond our	and impress them. Taking advantage of original technologies we
traditional field of packaging manufacturing to create a new value	have developed over the years, we will continue to support people's
that changes the world. Our goal is to offer a very unique value with	well-being, security, safety, and good health, thereby achieving
products and services that are exactly what people have wanted	sustainable development of ourselves and the society.

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Company Profile (as of March 31, 2022)

Toyo Seikan Group Holdings, Ltd.

Founded:	June 25, 1917
Representative:	Ichio Otsuka,
	President and Representative Director
Capital:	11,094 million yen
Head Office:	Osaki Forest Bldg., 2-18-1Higashi-Gotanda,
	Shinagawa-ku, Tokyo 141-8627, Japan
Number of	470 (19,758 on a consolidated basis)
Employees:

Net sales by business segment

Functional materials related business		Real estate related business 1.0%
				Other businesses 2.7%
5.9%
Steel Plate Related Business
9.1%
											Packaging
Engineering, Filling								Business
and Logistics Businesses	60.9%

20.3%

Sustainability Management of Toyo Seikan Group

Toyo Seikan Group CSR Policy

The Toyo Seikan Group defines CSR as "continuous contribution to the happiness and prosperity of mankind through fair and honest business activities." All employees of the Group understand its CSR commitment and work for all stakeholders.

All stakeholders

We will respect basic human rights and diversity of people, and communicate and act sincerely.

We will provide safe and reliable		We will create a safe,
products, systems and services to Customers	Employees
clean and vibrant workplace.
ensure customer satisfaction.

Business Segments

Packaging Business	Engineering, Filling and	Steel Plate Related
Logistics Businesses	Business

We will always conduct fair	Business			Local	We will promote participation
	Toyo Seikan Group	in community activities
and transparent business
partners		communities to coexist in harmony
activities with good ethics.
				with local communities.
We will strive to enhance corporate	Shareholders	Global	We will strive to preserve and
value, and manage and disclose	and
environment improve the global environment.
information appropriately.	investors

We supply packaging containers that are essential for our daily life, including food

Aiming to expand our value chain beyond packaging and reduce environmental im-

We supply various types of steel plates for cans and other products that are used

Sustainability Promotion Framework of Toyo Seikan Group

and beverage cans, plastic bottles and pouches, caps, paper containers, and glass bottles.

pact, we are engaged in manufacturing of can and can end making machinery and beverage filling equipment; contract filling of beverages, aerosol products and general liquid-filled products; and trucking and warehousing services.

in every aspect of our daily life, including electrical and electronic components, automotive and industrial machinery parts, consumer electronics, and construction materials.

In April 2022, we established the Sustainability Department, which has responsibility for internal and external communication and public relations in addition to environmental and CSR issues. As a key organization for implementing corporate strategies, the new department will drive group-wide sustainability initiatives to ensure the continuity and development of society and our business.

We also established the Group Sustainability Committee for sustainability management in operations across the Group.

The committee, chaired by the president of Toyo Seikan Group Holdings and attended by presidents of major group companies, meets once a year in principle. The issues discussed by the committee are reported to the Executive Management Committee and the Management Strategy Committee, as appropriate, to be reflected in our corporate strategies. The committee's activities are also immediately reported to the Board of Directors to be supervised by the board.

Functional materials	Real estate related	Other businesses
related business	business

We provide materials with various func-	We are engaged in leasing of office build-	We also conduct manufacturing of auto-
tional properties, such as magnetic disk	ings and commercial properties.	motive press dies, machinery and appli-
aluminum substrates, optical functional		ances, hard alloys and agricultural-use
films, glazes, pigments, gel coats and mi-		materials; sales of petroleum products;
cronutrient fertilizers.		and non-life insurance agency business.

Toyo Seikan Group Audit and Supervisory Board	Board of	Directors	Governance Committee
Holdings, Ltd.	President

Management Strategy Meeting

Executive Management Meeting

Group Sustainability Committee

Group Risk and Compliance Committee

Toyo Seikan	Toyo Kohan	Tokan Kogyo	Nippon	Toyo Glass	Mebius	Toyo Aerosol	TOMATEC
Closures	Packaging	Industry

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Materiality of Toyo Seikan Group

We identify top priority issues as the Materiality of Toyo Seikan Group in order to contribute to the creation of a sustainable society. In 2021, we formulated the Long-Term Management Vision 2050 "The Future, Wrapped for All" and the Mid-Term Management Plan 2025, setting up mid- to long-term strategies and goals for the Group. In light of these strategies and goals, we have reviewed and refreshed the materiality with the six key issues as described in the chart. Going forward, we will work on setting key performance indicators (KPIs) and key goal indicators (KGIs) that are relevant to our materiality.

Materiality Identification Process

STEP 1	• The Toyo Seikan Group drafted a long list of issues requiring attention based on the guidelines of the
Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) as well as the Mid-
	Term Management Plan 2025 and industry issues.

We are now working to determine KPIs and KGIs, which will be posted on our website as they become available.

https://www.tskg-hd.com/en/csr/materiality/

Materiality of Toyo Seikan Group

Materiality	Major initiatives	Risks and Opportunities
Developing and offering products and	Exploring business opportunities to achieve	Risks
services that support various lifestyles	safety, security and fulfillment in daily lives	• Weaker sales due to misalignment with consumer
Aiming to achieve one of the pillars of	• Food industrialization (e.g. cell-cultured meat)	needs
the Long-Term Management Vision	• Develop and offer products and services that	• Lower production efficiency as a result of dealing with
2050: "Responding to diversity," we will	support health maintenance and enhancement	a wide variety of needs
provide products and services that focus	• Respond to food personalization	Opportunities
on diversified lifestyles and needs of
• Develop and offer products and services that	• Creating innovations in technical development and
consumers and thereby contribute to social
issues.	contribute to "zero food loss"	production by satisfying diverse needs of consumers
		• Stronger sales with a product lineup that meets
		changing environments and values, such as food
		personalization and food industrialization
Developing and offering products and	Building a platform for the entire value chain	Risks

Identification

of Issues

STEP 2

Prioritization

STEP 3

Identification of Materiality

• A list of 19 topics was drafted by consolidating and integrating similar issues.
• The importance of each issue to the Toyo Seikan Group was carefully examined, taking into consideration consistency with our management philosophy and the Group's Code of Conduct and Guidelines of Behavior, as well as evaluations of each issue at workshops held with officers from operating companies.
• The importance of each issue to stakeholders was carefully examined, based on a range of information including the key issues present in the packaging industry, key ESG topics institutional investors pursue with companies, and more.
• Candidates for materiality for the Toyo Seikan Group were identified.
• Outside experts reviewed and validated the identification process and materiality candidates generated.
• Materiality for the Toyo Seikan Group is identified through resolution processes at the Board of Directors.

services that are environmentally sound	to reduce environmental impact	Loss of trust from stakeholders and competitiveness
Aiming to achieve one of the pillars of the	• Develop and provide automotive battery	against rivals due to delays in developing and offering
Long-Term Management Vision 2050:	components	environmentally sound products and services
"Creating a sustainable society," we will	• Offer in-house can making systems to fillers	Opportunities
provide products and services that support
and brand owners	• Contributing to environmental protection and
environmental protection and thereby
contribute to social issues.	• Adopt a next-generation beverage can making	expanding social roles as a life infrastructure supplier
	system that is environmentally friendly	• Acquiring new customers and differentiating
	• Offer Re-CUP WASHER	from competitors by developing and offering
		environmentally sound products and services in a
		timely manner
Contributing to environmental	• Reducing GHG emissions	Risks
protection	• Reducing water consumption	Less competitive advantage due to delays in addressing
We will implement various initiatives to	• Resource recycling initiatives	environmental issues, such as GHG emissions reduction
reduce environmental impact for the	and resource recycling
• More energy conservation and more use of
realization of a zero-carbon,zero-waste	Opportunities
renewable energy
society that coexists with nature, which is
• Obtaining new purchase orders and continued
the goal we set in our Environmental Vision	• Respect for biodiversity
and Eco Action Plan 2030.	• Respect for the environment in the supply	orders from existing customers as a result of our
	environmental initiatives, including GHG emissions
	chain
	reduction
		• Achieving cost reduction through efficient use of water,
		energy and other resources
Respect for human rights	• Conducting human rights due diligence	Risks
We will ensure that there are no	• Respect for human rights in the supply chain	Lower reputation and sales resulting from disputes and
discrimination, forced labor, harassment or		protests on human rights issues
abuse or any other human rights violations		Opportunities
in the Group as well as in the entire supply
	Ensuring stable procurement by respecting human rights
chain and will prevent such violations.
		across the supply chain

Materiality Matrix

Very important

stakeholders to Importance

Importance to the Group

Materiality of

Toyo Seikan Group

• Developing and offering and offering products and services that support various lifestyles
• Developing and offering products and services that are environmentally sound
• Contributing to environmental protection
• Respect for human rights
• Respect for employees
• Ensuring thorough compliance

Very important

Respect for employees	• Ensuring occupational health and safety	Risks
We will build a rewarding work environment	• Building a rewarding work environment	• Imbalanced skills and characteristics of human
that cares about the health and safety	• Promoting diversity, equity and inclusion	resources that lead to uniform thinking and loss of new
of employees and their diversity and	business opportunities
• Securing and developing competitive human
will secure and develop talent who will	• Loss of talent and lower retention rates due to a slow
continuously take on challenges for new	resources
response to the demand for flexible work
value creation, thereby aiming to maintain
	Opportunities
and boost our competitiveness.
		• Fostering a corporate culture that creates new
		perspectives and innovations through the co-creation
		of diverse values as well as securing excellent talent
		• Increasing the sense of fulfillment of employees by
		building a workplace where they can respect each
		other's personality and grow together
Ensuring thorough compliance	• Educational programs for compliance with	Risks
We will ensure compliance with laws and	laws and regulations	Underperformance of operations, loss of social trust,
regulations, corporate ethics, and norms	• Implementing the Code of Conduct and the	and damage to corporate value due to noncompliance
and take preventive measures against	Guidelines of Behavior	activities
corruption and anti-competitive behavior.	• Preventive measures against corruption and	Opportunities
	anti-competitive behavior	• Earning social trust and increasing corporate value
		through sound and stable business operations
		• Receiving a better evaluation from mid- to long-
		term investors and acquiring stable shareholders by
		maintaining highly transparent management

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