Production: Energy Conservation / Prevention of Global Warming -Concept, Targets and Results-

The Ricoh Group has set goals that it wants to achieve by the end of fiscal 2010, aiming to lead effective efforts to prevent global warming. Since a reduction in total CO₂ emissions is important in preventing global warming, the Ricoh Group companies in Japan have set a higher goal of reducing total emissions by 12% over the fiscal 1990 figure by the end offiscal 2010, compared with the goal for Japan of a 6% reduction as set out in the Kyoto Protocol. Our Group companies are striving to reduce global warming under this goal, which has been set in anticipation of an expansion in the scale of business. In addition, the Group is developing Clean Development Mechanism (CDM) projects as a scheme to prepare, as far as possible, for a rapid expansion of business through M&A and increased CO₂ emissions due to the worsening of power generation conditions. Efforts will also be made to reduce greenhouse effect gases other than CO₂ by 10% over the fiscal 1995 level by the end of fiscal 2010. In March 2009, the Group also set midto long-term goals of reducing total lifecycle CO₂ emissions by 87.5% by 2050 and 30% by 2020 from the fiscal 2000 level.

• *Note: Results for Ricoh Printing Systems, Ltd. and Yamanashi Electronics Co., Ltd. are included in (C).

Reduce CO₂ emissions by 12% (Ricoh and manufacturing subsidiaries in Japan, compared to fiscal 1990 figures) by fiscal 2010.

Reduce CO₂ emissions by 10% (manufacturing subsidiaries outside of Japan, compared to fiscal 1998 figures) by fiscal 2010.

Reduce greenhouse gas emissions (except CO₂) in the semiconductor business division by 10% (compared to fiscal 1995 figures) by fiscal 2010.

• *Equivalent to a 34% reduction compared to the fiscal 1990 level (CO₂ emissions in Japan)

Total CO₂ emissions at production sites in Japan decreased by 9.6% from the fiscal 1990 level. This figure includes the results for Ricoh Printing Systems, Ltd. and Yamanashi Electronics Co., Ltd., which both were incorporated in the Ricoh Group after the 1990 base year (see A + C , fiscal 2010 results, in Scenario for reduction of total CO₂ emissions for Ricoh Group [Production] in Japan up to fiscal 2010). When excluding the results for the two companies and other new businesses that were added later than 1990, the reduction rate is 14.1%, exceeding the fiscal 2010 target of a 12% reduction from the fiscal 1990 level (see A in the Scenario). However, we failed to achieve the target for the same year of reducing the total amount of CO₂ emitted by the entire Ricoh Group to 155,875 tons, includingemissions related to the bases and businesses added after 1990. To offset the difference (4,279 tons), the Group paid the equivalent Certified Emission Reductions (CER) credits— transferring them to the Japanese government's account—from the total credits the Group has earned through CDM projects. Outside Japan, CO₂ emissions increased 20.3% over the fiscal 1998 level (see Graph 3). Given business growth since fiscal 1990, the above figures suggest that efforts to reduce CO₂ emissions, particularly those to improve production processes, have brought steady results. As for greenhouse gases other than CO₂, the semiconductor business division achieved a 45.3% reduction, and the entire Ricoh Group, a 40.1% reduction, over fiscal 1995 levels (see Graph 4).

Ricoh will continue working toreduce CO₂ emissions at production sites with a focus on innovating production processes to reduce energy consumption in manufacturing in fiscal 2011 and thereafter.
Reduction efforts will be focused on CO₂ emissions that are expected to increase due mainly to the supply sector and the parts business in China, which have shown marked growth. Regarding the introduction of high-efficiency equipment and new energy sources, we will take a cost-effective approach by seeking alternatives with high cost-benefit performance and by studying the most effective usage of such systems.

Energy consumption (CO₂ conversion and calories)

Breakdown of major energy consumption

Energy consumption (CO₂ conversion and calories)

Greenhouse gas emissions other than CO₂^* (CO₂ conversion)

• *NF₃ and substances that have a global warming effect and designated in the Kyoto Protocol

*

For CO₂ emissions coefficients and global warming coefficients used in the graphs above, the relevant authorities are shown below:

(1)

: Electric power purchased in fiscal 2010: CO₂ emission coefficients specified for each utility released by the Japanese government on December 27, 2010 (calculated including the Kyoto carbon credits transferred to the government by the utility), based on Order on Calculation and Reporting of Greenhouse Gas Emissions, which was issued in relation to Act on Promotion of Global Warming Countermeasures;
Electric power purchased in fiscal 2009 or earlier: Guidelines for accounting and reporting of greenhouse gas emissions from industrial commercial sectors (draft) by the Japanese Ministry of the Environment;
Fuels: Greenhouse gas emissions accounting and reporting manual (ver. 3.1) by the Ministry of the Environment and Ministry of Economy, Trade and Industry.

(3)

: Electric power purchased: Official data released by respective governments; Fuels: GHG Protocol

(4)

: Global warming coefficients: Order for Enforcement of the Japanese Act on Promotion of Global Warming Countermeasures

Innovation in Manufacturing Processes
Introduction of High-Efficiency Equipment
Introduction of Natural Energy
CDM projects and use of carbon credits