We aim to establish an environmental accounting system to evaluate sustainable environmental management and support managerial decision making.
Thanks to its environmental accounting system, which was disclosed for the first time in 1999, the Ricoh Group has built up a good reputation. However, it is necessary to further improve this environmental accounting system as a managerial decision-making tool. We will utilize the Segment Environmental Accounting and Business Sector Environmental Accounting as internal accounting tools as well as Corporate Environmental Accounting, to promote sustainable environmental management. We will further upgrade the system so that it can be used in mapping out environmental action plans, selecting measures, and confirming achievements.
Utilization of Environmental Accounting
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Environmental accounting is used to determine measures to promote sustainable environmental management.
Reducing environmental impact using measures that will lead to the creation of benefits is crucial to promoting sustainable environmental management.
The Ricoh Group uses environmental accounting to determine what measures should be taken for what processes and for what operations so that the maximum effect can be obtained.
Therefore, we first identify those processes that have a high environmental impact in business operations, based on the Eco Balance. We examine a number of improvement plans to reduce the identified environmental impact, in consideration of developments in society and laws/regulations and competition.
Then, using segment environmental accounting, we assess the effectiveness of each possible approach and decide what methods should be adopted to gain the best results.
Flow to Utilize Environmental Accounting
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Corporate Environmental Accounting
This is a tool to inform the public of relevant information compiled in accordance with the Environmental Accounting Guidelines of Japan's Ministry of the Environment. The Ricoh Group takes the necessary portion from the Eco Balance data, and calculates the cost and effect (in quantity and monetary value) of its environmental conservation activities based on its own formulas and indicators. The calculated results are disclosed to the public after being verified by a third party organization. We will continue to improve the accuracy of the information to be disclosed and will make a positive effort to make it comparable to already standardized documents, such as financial statements.
Segment Environmental Accounting
This is an internal environmental accounting tool to select an investment activity, or a project, related to environmental conservation from among all processes of operations, and to evaluate environmental effects for a certain period. The effect of investment on environmental conservation will be calculated based on the concept of "Return on Investment"(ROI). The calculation result is used internally for decision making in sustainable environmental management. Ricoh Group companies and divisions, such as its recycling business division, increasingly utilize segment environmental accounting for their operations.
Business Sector Environmental Accounting
The Ricoh Group engages in environmental activities in many business sectors. This is an indicator of how such environmental activities contribute to environmental management conditions in respective business sectors. Because the properties of operations differ by business sector, we have repeatedly discussed which indicator would be appropriate for a given sector.
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