Reducing environmental impact |
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The Ricoh Group has targets to reduce the environmental impact (integrated environmental impact) of our major business activities in advanced nations by 20% in fiscal 2010 compared to the levels of fiscal 2000.
The integrated environmental impact in fiscal 2008 leveled off compared with the previous year. The decrease is attributable in some items mainly to the implementation of the Environmental Action Plan, which caused a reduction in environmental impact, while environmental impact at the procurement and manufacturing stages decreased due to the world recession.
According to an evaluation we carried out for the accumulated unit sales of imaging products for the previous five years, the impact at the customer-use stage increased as consumption of electricity and paper increased in line with the increase in the number of units sold. To reflect these results, the Environmental Action Plan starting from fiscal 2008 calls for strategies to encourage greater use at the customer end of energy-saving and duplex-copying functions in addition to the conventional measures, such as those to increase resource recycling and strengthen development of environmental technologies.
Changes in integrated environmental impact (Operations in advanced nations)*
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- The production and printing businesses are not included.
Business results for fiscal 2008 and future goals |
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The Ricoh Groups consolidated net sales in fiscal 2008 decreased by 5.8% from the previous year to ¥2,091.6 billion. In the Imaging and Solutions sector, total sales of printers increased due to a stronger sales structure and the expanded printer business, while sales across the entire sector were largely impacted by the global recession and the strong yen. In the Industrial Products and Other sectors, sales remained on a low note. As a result, total sales decreased from the previous term in the Imaging and Solution sector, Industrial Products sector and other sectors. Accordingly, operating income decreased 58.9% from the previous year to ¥74.5 billion. Going forward, the Group will target net sales of ¥2,300.0 billion and operating income of ¥170.0 billion by the end of fiscal 2010.
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- For more details on the business results, please see the "Investor Relations" page on our website.
Review of environmental accounting |
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Environmental accounting is designed to present the costs incurred for environmental conservation activities during a given period in comparison to the resulting benefits.
Such costs and benefits represent how well the environmental impact reduction activities by the Ricoh Group and across the entire lifecycle of its products performed. We therefore present the environmental conservation effects and environmental impact for the entire product lifecycle, including during our upstream and downstream operations, together with those by the Ricoh Group, so that readers can distinguish and compare the environmental conservation effects and environmental impact of the Group and those generated throughout the product lifecycle.
When we look at the overall trends of the Ricoh Group, the Eco Index, the ratio of the gross profit on sales to the total environmental impact, decreased from fiscal 2007 due to sluggish economic activity both in Japan and overseas as well as the strong yen (see graph (2)).
The Ratio of Eco Profit, an indicator of the cost effectiveness of sustainable environmental management activities, and the Ratio of Eco Effect, an indicator that takes into account social cost reduction values, dropped slightly from fiscal 2007 due to the negative global economic environment (see graph (1)).
Corporate environmental accounting data by item indicates that, while the environmental costs for recycling in both the upstream and downstream processes decreased from fiscal 2007, the costs and investment for R&D for future environmental impact reduction (such as R&D to improve environmental features of the products) increased.
Economic benefits showed a slight drop in fiscal 2008, reflecting a decrease in production due to the world economic slump and lower sales of recycled products. We will continue strengthening our energy-saving, resource conservation and pollution prevention measures not only within the Group's operations but also for the entire lifecycle of our products, while further working to reduce the environmental impact and improve the efficiency of our business operations, so that we may realize complete sustainable environmental management.
Changes in the Ricoh Group's sustainable environmental management indicators
| The Ricoh Group's sustainable environmental management indicators (fiscal 2008) |
Results in fiscal 2008 |
Calculation formula |
| REP: Ratio of Eco Profit |
2.08 |
Total economic benefit (35.82) / Total environmental conservation cost (17.26) |
| REE: Ratio of Eco Effect |
2.25 |
[Total economic benefit (35.82) + Social cost reduction values (0.3 + 2.60)] / Total environmental conservation cost (17.26) |
Eco Index
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2,484.8 |
Gross profit on sales (854.3) / Total environmental impact (34,380.6) × 105 |
| RPS: Ratio of Profit to Social Cost |
160.1 |
Gross profit on sales (854.3) / Total social cost (5.34) |
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* Unit: Billions of yen.
| Sustainable environmental management indicators of the entire product lifecycle (fiscal 2008) |
Results in fiscal 2008 |
Calculation formula |
| REP: Ratio of Eco Profit |
2.08 |
Total economic benefit (35.82) / Total environmental conservation cost (17.26) |
| REE: Ratio of Eco Effect |
1.33 |
[Total economic benefit (35.82) + Social cost reduction values (-15.37 + 2.60)] / Total environmental conservation cost (17.26) |
| Eco Index |
44.1 |
Gross profit on sales (854.3) / Total environmental impact (1,938,032.5) × 105 |
| RPS: Ratio of Profit to Social Cost |
2.8 |
Gross profit on sales (854.3) / Total social cost (300.86) |
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* Unit: Billions of yen.
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- Environmental accounting data: Base units for raw materials production and fuel consumption were revised in fiscal 2008 to reflect the start of the new Environmental Action Plan. Evaluation was made using methods based on newly acknowledged information. The numerical figures in the graphs on the previous page were corrected to reflect these changes.
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