

Importance of actions that are based on a long-term vision
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To conserve the global environment and achieve a sustainable society, it is necessary to limit environmental impact
created by human activities to a level that is within the Earth's self-recovery capabilities. To meet this requirement, we must
first envision the ideal society and global environment; then we must create a long-term vision to realize our ideals and aggressively promote environmental conservation activities.
Global environmental conservation is a challenge for which there is no second chance, and it is highly probable that we will never be able to build our vision if we act on short-term
goals. With this perception in mind, in developing the Environmental Action Plan that was implemented in fiscal 2005,
we gathered and analyzed a variety of information to allow us to envision human society in 2050 and assessed its impact on our businesses.
We concluded that it was necessary to set up specific action plans under the Extra-Long-Term Environmental Vision, a perception that advanced nations need to reduce their environmental impact to one-eighth of the fiscal 2000 levels by 2050.

Two Scenarios for Reducing Global Environmental Impact


Social changes towards 2050 and how the Ricoh Group intends to cope with the changes
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What will our society be like in 2050? The world's population will have reached nine billion. Mineral resources may have run out. Restrictions may be imposed on the use of land.
On the other hand, energy sources may have shifted from oil to alternative energies in the hope of preventing global warming.
These might lead to substantial changes in social and business models. To prepare for a new era in which we may
no longer be able to use the abundant virgin materials and fossil fuels that we have used to date, the Ricoh Group is trying
to develop environmental technologies that require fewer resources and new product materials that are alternatives to oil.
Based on the perception of future social changes and the prospect of the impact such changes are likely to have
on our businesses, we have set up an Environmental Action Plan depicting measures we should take today to prepare for the future.
We believe that a quick response to a drastically changing society will strengthen our business competitiveness.

Integrated Environmental Impact Reduction Goals


Setting targets using the back-casting method to attain final goals
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The Ricoh Group uses the back-casting method to set targets.
In this approach, we first set final goals and then determine target values as milestones on the journey to those goals.
Setting the Three Ps Balance as its final goals, the Ricoh Group created the Extra-Long-Term Environmental Vision.
Based on this vision, we determined the Year 2010 Long-Term Environmental Goals, which aim to reduce environmental impact by 20% by fiscal 2010. Under the Environmental Action Plan, which started in fiscal 2005 according to the
Year 2010 Long-Term Environmental Goals, we strive to achieve the target of reducing environmental impact by 15% by fiscal 2007 on the estimation that our business will expand by 8% or more a year. We adopted "integrated environmental impact" as an index for target values and aim to reduce it in terms of absolute values. Integrated environmental impact is obtained by integrating all environmental impact caused by CO2 emissions, resource use, use of chemical substances, etc.

How to Set Environmental Goals


Consideration in Preparing an Environmental Action Plan


Reducing the environmental impact of all business activities in terms of absolute values
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If reduction of CO2 and resource conservation is promoted separately,
environmental impact reduction goals might be achieved in a defined area, but the environmental impact might increase more than the amount reduced in other areas or processes.
To ensure that environmental impact is reduced, we have to first identify the environmental impact of all business activities and then determine, from a comprehensive viewpoint, the kind of initiatives that should be taken at each stage of business.
Also, goals set based on units and factors alone, which are efficiency-based relative indices, might not be effective for environmental conservation in practical terms. Therefore,
it is important to set goals using "absolute values" for environmental impact as well. Thinking this way,
the Ricoh Group aims to reduce the integrated environmental impact of its entire business activities by absolute values.

Reduction Areas of Environmental Impact (Eco Balance)


Achieving goals on the sustainable environmental
management level and contributing to reducing
the environmental impact of society as a whole
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To continue its efforts to reduce environmental impact from a longterm perspective on the basis that environmental impact should be
reduced to a level that the Earth's self-recovery capability can deal with,
the Ricoh Group needs to continue business and grow as a company by promoting sustainable environmental management that generates
economic value through environmental activities. There are three stages in the Ricoh Group's environmental conservation efforts.
After the Passive Stage and the Proactive Stage, we are now working towards the Responsible Stage. In the Passive Stage, we coped with social pressures
by dealing with laws and regulations and competing with other companies.
In the Proactive Stage, however, we began to take voluntary actions to reduce the environmental impact of our business activities and products with a sense of mission as a global citizen. Currently, the Ricoh Group is pursuing economic value while aggressively reducing
the environmental impact of its business activities through activities conducted by all employees and the development of environmental
technologies to realize sustainable environmental management.
Further, in developing environmental technologies, we will not remain within the range of our current business sectors but aim at contributing to reducing the environmental impact of society as a whole.

Three Steps in Environmental Conservation Activities (From Passive Stage to Proactive Stage and Responsible Stage)


* Activities to improve quality, control costs, and manage delivery times.
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Ricoh Group's Extra-Long-Term Environmental Vision will serve as a reference to assess its consistency on sustainable environmental management.

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For global sustainability, it is essential to achieve one's commitments based on a global vision.

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To be a global business leader, it is necessary to take into consideration more advanced strategies through long-term plans.

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