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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, which are reviewed and set in conjunction with the formulation of our Mid-Term Management Strategy every three years.
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 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
- 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
- EU Guidelines on non-financial Reporting directive
- 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