Materiality for the Ricoh Group
Ricoh Group’s Management Strategies and Identification of Material Issues
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.
We have identified seven material issues in two areas, “Resolving social issues through business,” and “Robust management infrastructure,” and set 17 ESG targets in linkage with the material issues.
Activities, topics and actual result of 2021 for Ricoh Group ESG target (360KB)
Seven Material Issues and SDGs
Ricoh’s Approach to Seven Material Issues and ESG Targets
Materiality Analysis
Materiality-specific process
STEP 1: Identifying Issues
In alignment with the medium-term management plan, we evaluated the impact of each business on society throughout the value chain, identified social issues to be solved through our business, and examined the business model for 2030.
STEP 2: Prioritizing Issues
We selected SDGs that should be focused on by the entire Ricoh Group, taking into account stakeholder opinions regarding social issues and business models identified by each business. The Corporate Planning and ESG Divisions worked together to create a preliminary draft of materiality by linking the selected SDGs to management philosophy, business strategies, and environmental management initiatives, which was then drafted reflecting the advice of external experts.
Step 3: Management Decision
Based on the above draft, the Management Committee has decided on four materialities that contribute to solving the issue through business activities, and three materialities related to "Robust management infrastructure" that supports these four materialities.
STEP 4: Target Setting and Performance Disclosure
We have established 17 ESG targets, which are quantitative indicators for seven materialities, and we also disclose our annual results.
Stakeholder opinions referenced
- Individual meetings with investors and analysts and feedback at IR events
- Customer's request for ESG in business negotiations
- Requirements of the ESG assessment bodies
- Opinions from internal stakeholders
- Dialogue with external organizations such as JCLP and JCI
Reference Guidelines
- SDGs Compass
- GRI standard
- Ministry of the Environment's Environmental Reporting Guidelines
- TCFD
- Ten Principles of the United Nations Global Compact
- ISO26000
Linkage between executive compensation and ESG indicators
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.
* Dow Jones Sustainability Index (DJSI): A share index jointly developed by Dow Jones in the US and S&P Global, a company specializing in research on sustainable investment, the Dow Jones Sustainability Index measures the sustainability of major companies around the world from the three perspectives of economy, environment and society.
Approach to Materiality (Material issues)
Global SDGs Communication Book
For further information of global activities, please see the “Global SDGs Communication book”.
Contents
- Global business cases which contribute on SDGs
- Awards and industry recognitions
- Commitment to international initiatives and organizations