For the Ricoh Group, an ideal sustainable society is one in which the Three Ps Balance—balance between Prosperity, People and Planet is maintained. In order to create such a society, we will work to solve social issues through business based on the material issues identified by reflecting Ricoh’s Mission Statement, Mid-Term Management Plan (MPT) and expectations of our stakeholders, which are reviewed and set in conjunction with the formulation of our Mid-Term Management Strategy every three years.
STEP 1: Identifying Issues
In considering our mid-term management strategy, we evaluate the impact of changes in environmental and social trends, such as climate change and human rights, on our business activities, as well as the impact of our business activities on the environment and society, in terms of risks and business opportunities, and we identify issues that need to be addressed.
STEP 2: Prioritizing Issues
Prioritize the identified issues based on international guidelines such as the SDG Compass, GRI standards, and the concept of double materiality, as well as management philosophy, management and business strategies, opinions from external stakeholders, and priority management risks in line with the risk management system. The drafts of materiality and ESG targets are then prepared.
Step 3: Management Decision
Materiality and ESG targets are approved by the Board of Directors together with the financial targets of the mid-term management strategy, and then they are disclosed.
STEP 4: Performance Disclosure
Annual performance against ESG targets is disclosed annually by the ESG Committee, after confirmation with management.
Stakeholder opinions referenced
Ricoh has incorporated ESG indicators into executive compensation since fiscal 2020 in order to clarify management responsibilities for ESG initiatives and achievement of targets. For board of directors’ remuneration, we have set the annual DJSI* Rating as an ESG indicator for bonus calculation formulas. For the executive officers’ compensation, the degree of achievement of ESG targets set in connection with materiality as well as the degree of achievement of business performance targets and priority measures, is incorporated into the evaluation indicators. Based on this evaluation result, the annual remuneration is determined.
The Ricoh Group's policy is to “Align ESG with business growth.” We position ESG initiatives as future financial targets because we look for them to bear financial fruit three to five years hence. We would like to introduce our activities
For further information of global activities, please see the “Global SDGs Communication book”.