Mankind is now changing direction significantly to achieve a sustainable society with low environmental impact. The key to forging a new path is to develop environmental technologies that will bring about a dynamic revolution comparable to the Industrial Revolution. When society undergoes dramatic changes, market needs change significantly too. In an extreme instance, the market might begin to demand products with nearly zero environmental impact that can work without consuming any resources or energy.
In this age of the "environmental industrial revolution," the Ricoh Group recognizes that it will face tremendous risks if it cannot respond properly to changes in market needs; for large changes in particular, it is too late to respond to them after they become clear. It is vital that we put ourselves on the alert by predicting future social change. Companies can strengthen their competitiveness and access more chances in the market by identifying and preparing for any possible future environmental risks. Accordingly, the Ricoh Group predicts market needs for a sustainable society with minimal environmental impact and sets environmental goals for 2030 and 2050 in the areas of global warming prevention and resource conservation and promote sustainable environmental management.
A considerable change came about in non-financial information disclosure. At the G20 summit in July 2017, Financial Stability Board (FSB) Task Force on Climate-related Financial Disclosures (TCFD) published Recommendations Report as a framework to recommend companies to disclose mid and long-term climate change-related risks and opportunities and their financial impacts in mainstream financial reports.
The Ricoh Group has set 2030/2050 mid and long-term environmental goals. We incorporate process to identify and assess climate change-related risks in the development and review process of our mid-term business plan every three years and business plan annually. In terms of identification and assessment of transition risks, risks related to transition to a low-carbon society and physical risks related to climate change, our sustainability management division works with related business units to grasp the current situation and forecast the future trend, which is based on the analysis of risk information as follows;
Transition risks: 1) International agreements on climate change, Trend of national or regional carbon pricing policy, laws and regulations on product energy efficiency, 2) Changes of customer and market needs and demand on products and services, competitors trend, 3) Expectations and requirements of stakeholder including NPO/NGO/Governments
Physical risks: Risks of disruption in supply chain and its frequency and damage level, caused by natural disasters and extreme weather, such as typhoon, intense rainfall, flood
Then, we develop risk mapping of these items and prioritize them to identify enterprise-level risks and opportunities.
The Ricoh Group has identified the following major environmental risks and opportunities in its business operations:
By preparing for these risks and preventing them from materializing (in the form of noncompliance, accidents, and other problems), we will keep the trust of society and our customers, which will in turn help us grow our business.