Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment

Environmental Achievements

• Reduced CO2 emissions by 8.6% (compared to fiscal 2000)
• Achieved Zero-Waste-to-Landfill at major global production sites
• Completely eliminated the use of four environmentally-sensitive substances (lead, hexavalent chromium, polyvinyl chloride, and cadmium) in products.
• Reduced CO2 emissions by approximately 29,000 tons in fiscal 2004 through the use of QSU technology.

Social Achievements

• Launched the Environmental Volunteer Leader Development Program
• Supported forest ecosystem conservation projects globally
• Introduced the RICOH Tree Dedication Programme

Governance Achievements

• Established and certified Chemical Substance Management System (CMS) to avoid contamination by environmentally-sensitive substances.

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption due to larger production of consumables and parts
• Increased integrated environmental impact due to stronger sales and rise in customers' paper consumption
• Discrepancy in waste collection data between Ricoh and waste collectors

Mitigation Strategies

• Developing energy-saving production processes
• Introducing more efficient facilities and utilizing natural energy sources
• Improving the data input system in the environmental management information system
• Promoting improvements in the production process to make the most of resources

Supply Chain Management

Responsible Procurement

• Green Procurement Guidelines
• Support for suppliers in creating chemical substance management systems

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• imagio Neo 350RC/450RC series (recycled copiers)
• imagio Neo 752ec/602ec series (high-speed multifunctional copiers with quick recovery from energy-saving mode)
• Aficio CL4000DN (color printer with 30-second recovery time from energy-saving mode)

Awards & Recognition

• Nihon Keizai Shimbun’s Corporate Environmental Management Level Survey (ranked first)
• oekom’s Environmental Ranking (highest rating)
• Minister of Economy, Trade and Industry Prize (Energy Conservation Month)
• TECO’s Environmental Rating (AAA rating)
• Green Contractor Award 2004
• Continued Excellence Award for CSR Report
• Continued Excellence Award for the Site Report

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions during product use (Scope 1, 2 and 3) by an unspecified amount.
• Increased renewable energy ratio at its French plant.
• Improved resource conservation rate by expanding the use of recycled plastics in products and making products smaller and lighter.

Social Achievements

• Launched RICOH Unified Communication System 360 VR Live, a multi-site interactive communication system.
• Developed applications enabling MFP access to the visually impaired.
• Implemented programs to cultivate new businesses in-house (RISP).

Governance Achievements

• Established ESG Committee.
• Established Risk Management Committee.
• Changed the way to evaluate the performance of the CEO (from financial, shareholder and capital market, and nonfinancial perspectives).

Climate Goals & Targets

Environmental Challenges

• Financial irregularities at a sales subsidiary in India (Ricoh India).
• Declining sales in Office Printing, especially overseas.
• Rising pressure to help resolve social issues and materialize Sustainable Development Goals (SDGs).

Mitigation Strategies

• Implemented structural reforms and business process reforms to improve profitability.
• Transferred shares in Ricoh Logistics System Co., Ltd. to SBS Holdings Co., Ltd.
• Strengthened business management, business administration, organizational structure, compliance, and audit to prevent recurrence of financial irregularities.
• Launched RICOH Ignite growth strategy to drive sustainable growth.

Supply Chain Management

Supplier Audits: 100% (key suppliers in China and Thailand)

Responsible Procurement

• CSR procurement
• Rigorous stance on child labor and conflict minerals

Climate-Related Risks & Opportunities

Physical Risks

• Increased costs, lost sales opportunities, and damaged corporate brand resulting from extreme climate events.
• Surge in raw material prices due to extreme weather.
• Supply chain disruptions due to extreme weather.

Transition Risks

• Increased costs, lost sales opportunities, and damaged corporate brand resulting from failure to effectively respond to a rapid transition toward a decarbonized society.

Opportunities

• Expand/create new businesses in the environment and energy sectors.
• Expand sales of services to support customers’ decarbonization efforts.

Reporting Standards

Frameworks Used: GRI Standards, Japanese Ministry of the Environment’s Environmental Reporting Guidelines 2012, United Nations Global Compact Communication on Progress Policy, IIRC International Framework

UN Sustainable Development Goals

• 1
• 3
• 5
• 6
• 7
• 8
• 12
• 13
• 15
• 16
• 17

The Ricoh Group endeavors to resolve social issues through business and contribute to the achievement of the SDGs.

Sustainable Products & Innovation

• RICOH IM C series of advanced MFPs
• RICOH Pro C9210/9200 color cutsheet printers
• RICOH Pro VC70000 high-speed continuous feed inkjet printing system
• RICOH Ri 100 direct-to-garment printer
• Rewritable laser system
• High-speed laser printing system

Awards & Recognition

• 2017 Environment Minister’s Award for Global Warming Prevention Activity
• 2018 WorldStar Award
• Buyers Lab 2019 PRO Awards
• Good Design Best 100 award
• Patent Office Commissioner Prize in the Kanto Regional Invention Awards
• Director-General for Technology Policy Coordination and Industrial and Product Safety prize in 2018 Product Safety Awards
• New Energy Foundation Chairman’s Award
• Silver and Special Jury prizes in 70th National Calendar Contest
• Grand Award in nano tech Awards 2019
• Environmental Report Excellence Award
• Certified Health & Productivity Management Outstanding Organizations Recognition Program (White 500)
• Nearly ZEB certification
• TIPA Photo & Imaging Awards
• Contribution Award in 51st Ichimura Technology Awards
• Special Encouragement Award in Nikkei DUAL’s Childraising-Friendly Companies Grand Prix 2019
• EDP Award 2019

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Social Responsibility
• Environmental Management
• Talent Attraction & Retention
• Corporate Citizenship & Social Contribution

Environmental Achievements

• Included in CDP’s 2022 Climate Change A List for the third consecutive year.
• Received the Environmental Value Award in the 4th Nikkei SDGs Management Grand Prix.
• Aims to reduce Group company and supply chain greenhouse gas emissions by 63% and 40%, respectively, from 2015 levels by 2030. These goals meet Science Based Targets Initiative criteria.

Social Achievements

• Received the highest score among 36 companies in the Computers & Peripherals and Office Electronics industry in seven areas (Materiality and Business Ethics, Environmental Reporting, Environmental Policy & Management Systems, Social Reporting, Talent Attraction & Retention, and Corporate Citizenship & Social Contribution) in the Dow Jones Sustainability World Index.
• Attained a perfect five-star rating for the third straight year in the Nikkei Smart Work Management Survey.

Governance Achievements

• Included in Dow Jones Sustainability World Index for the third consecutive year.
• Fully TCFD aligned.
• High marks for its endeavors and disclosure relating to climate change issues due to CEO engagement.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Awards & Recognition

• Dow Jones Sustainability World Index
• CDP’s Climate Change A List
• Environmental Value Award (Nikkei SDGs Management Grand Prix)
• Nikkei SDGs Management Grand Prix (Grand Prix in 2020)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Social Impact
• Circular Economy

Environmental Achievements

• Greenhouse gas Scope 1 and 2 reduction rate: 45.5% (compared with 2015)
• Greenhouse gas Scope 3 reduction rate: 31.4% (compared with 2015)
• Renewable energy usage ratio: 30.2%
• Avoided emissions: 1.4 million metric tons
• Virgin materials usage ratio: 84.9%

Social Achievements

• Number of people to whom we have contributed by improving social infrastructure: 10.01 million
• Employee engagement score: 3.91 globally
• Female-held managerial position ratio: 20% globally (10% in Japan)

Governance Achievements

• Suppliers signing Ricoh Group Supplier Code of Conduct: 98% (100% completed for key suppliers)
• Compliance with NIST SP 800-171: 80% or more coverage of Ricoh’s core business environment
• Percentage of low-compliance risk Group companies: 80% or more

Climate Goals & Targets

Environmental Challenges

• Changing work practices and lifestyles
• Accelerating digitalization
• Growing need for information security
• Transitioning to a carbon-neutral economy
• Shifting to a circular economy
• Human rights issues and supply chain management demands
• Increasing ESG investments
• Rising geopolitical risks

Mitigation Strategies

• Building a resilient development and production structure
• Combining proprietary edge devices with applications and services for different industries
• Working closely with customers to offer digital services that resolve their issues
• Developing and acquiring professionals who can use digital technology and data to create and accelerate our digital services
• Building an ecosystem centered around RICOH Smart Integration platform

Supply Chain Management

Supplier Audits: 98% (100% completed for key suppliers)

Responsible Procurement

• Ricoh Group Supplier Code of Conduct

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Creativity from Work
• Community and Social Development
• Zero-carbon Society
• Circular Economy
• Responsible Business Process
• Open Innovation
• Diverse and Inclusive Workforce

Environmental Achievements

• GHG scope 1, 2 reduction rate (vs. 2015): 50.6%
• GHG scope 3 reduction rate (vs. 2015): 38.5%
• Renewable energy utilization rate: 33.6%
• Avoided emissions: 1,059 thousand tons
• Virgin material consumption ratio: 78.9%

Social Achievements

• Number of people contributed to by improving social infrastructure: 17.94 million people
• Ricoh Digital Skills level 2 or above rated employees (Japan): 2,855 people
• Process DX Silver Stage certified employee ratio: 21%
• Female-held managerial position ratio: 16.5% (Japan: 7.7%)

Governance Achievements

• Established the ESG Committee for continuous discussion of ESG issues at a management level.
• ESG indicators incorporated into the remuneration of Directors and Executive Officers.
• 20% of the calculation formula for the executive stock compensation program linked to achieved ESG targets.

Climate Goals & Targets

Environmental Challenges

• Transition of profit structure as a digital services company
• Acceleration of digital strategy
• Establishment of R&D processes as a digital services company
• Information security
• Securing, developing, and managing human resources
• Responding to ESG and SDGs
• Geopolitical risks
• Long-term delay and suspension in supply of products
• Large-scale disasters / incidents or accidents
• Human resource-related compliance
• Risks related to Group governance
• Changes in the environment of the office printing market
• Securing resources for the growth of digital services
• Growth risks in the commercial printing business
• Slowing growth and declining profitability in the thermal market
• Impairment of goodwill and fixed assets
• Deferred tax assets
• Protection of intellectual property rights
• Product quality/product liability
• Government regulations (import/export management)
• Government regulations (antitrust /competition law)
• Government regulations (environment)
• Exchange rate fluctuations
• Defined benefit plan obligations

Mitigation Strategies

• Launched Corporate Value Improvement Project to transform profit structure.
• Strengthening human resources portfolio management to promote reskilling programs.
• Concentrate on R&D investments in focus areas and move toward market-in/open innovation-based R&D process.
• Continuously monitor the information security regulatory environment and promote appropriate countermeasures.
• Strengthening measures for human resources development.
• Strengthening measures for human rights, decarbonization, resource recycling, and biodiversity.
• Strengthening prevention and response processes, enhancing information collection, and selecting multiple suppliers.
• Securing inventory for contingencies, selecting multiple suppliers, setting alert levels, and conducting BCP drills.
• Implementing disaster response systems, conducting drills, and preparing recovery action plans.
• Implementing compliance training, raising awareness, and providing labor management training.
• Redesigning governance structures and leveraging technology for data-driven response actions.
• Improving profitability through customer base maintenance, SCM efficiency, and operational excellence.
• Advancing reforms in human resource systems and implementing reskilling programs.
• Advancing the development of untapped distributors and strengthening resource allocation.
• Strengthening market trend monitoring, refining demand forecasts, and enhancing daily management systems.
• Following prescribed procedures based on investment amount and content.
• Monitoring performance progress based on business plans.
• Conducting thorough prior-art searches and investigating third-party intellectual property rights.
• Improving the accuracy of analyzing the mechanisms that cause breakdowns and accidents.
• Strengthening governance through a group import/export committee structure.
• Strengthening adherence to antitrust and competition laws and conducting educational activities.
• Establishing an Environmental Management System and implementing environmental due diligence.
• Conducting hedge transactions and minimizing foreign exchange risk.
• Regularly reviewing and implementing revised plans.

Supply Chain Management

Responsible Procurement

• Regulation of Ricoh Group products made of wood
• Paper Procurement Policy
• RBA-based ESG risk assessments

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (supply chain disruptions)

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD, SBTi

Certifications: ISO 14068-1:2023, GOTS

Sustainable Products & Innovation

• Eco-friendly MFPs
• Label-free printing
• PLAiR (new plant-derived material)
• MFPs with recycled plastics

Awards & Recognition

• Best Award at the “2023 Nikkei Excellent Products and Services Awards”, Special Award at the Cyber Index Awards 2023