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 Strategy and expectations of our stakeholders, which are reviewed and set in conjunction with the formulation of our Mid-Term Management Strategy.

Six Material Issues

<The Mid-Term Management Strategy ’26（Fiscal 2026-2030）> Materiality and ESG targets

The Ricoh Group has established KPIs as ESG targets to manage and evaluate the progress of initiatives related to its materialities. These ESG targets are aligned with the business strategy and the Mid-Term Management Strategy, and their progress is monitored together with business plans.

Materiality		Social issues	Global ESG targets
Materiality		Social issues	Indicators	Fiscal 2026	Fiscal 2030
Prosperity (Sustainable economy)	Creativity from Work	Boosting productivity/Unleashing creativity/ Digital inclusion	①Customer survey scores^*1	Japan:33% North America:35% Latin America:56% Europe:32% APAC^*2:36%	Japan:40% North America:38% Latin America:63% Europe:40% APAC^*2:45%
	Creativity from Work	Accelerating innovation	②Co-creation projects, as % of total projects^*3	43%	Not disclosed. Only the current fiscal year’s targets are disclosed.
	Safe and secure digital society	Information security and customer privacy	➂Security management maturity^*4(Progress toward fiscal 2030 target)	80%
	Safe and secure digital society	Ethical technology development and utilization	④YoY growth in technology assessment^*5 personnel	30%
	Fair corporate activities	Respect for human rights	⑤% of Ricoh group companies assessed as low risk^*6	50%
		Respect for human rights	⑥Number of high-risk suppliers^*7	0
		Ensuring business ethics and compliance	⑦Compliance maturity^*8	Average 3.0pt
People (Sustainable society)	Inclusive workforce	Employee engagement and inclusion	⑧Engagement score^*9	3.96	4.14
		Employee engagement and inclusion	⑨% of women in managerial positions	Global 18.3% Japan 9.7%	Not disclosed. Only the current fiscal year’s targets are disclosed.
		Employee skill development	⑩Total number of digital skills at Level 2 or higher^*10	13,200 (cumulative)
	Coexistence with communities	Building relationships with local communities	⑪Employee participation rate in social contribution activities (cumulative basis)	87%
Planet (Sustainable environment)	Zero-carbon society and circular economy	Climate change mitigation and adaptation	⑫GHG^*11 Scope 1, 2 reduction rate（vs. 2015）	65%	75%
			⑬GHG^*11 Scope 3 reduction rate (vs. 2015)	36%	40%
			⑭Renewable energy, as % of total electricity use	57%	85%
		Resource depletion/Resource circulation	⑮Virgin material usage ratio of products	76% or less	60% or less

*1

Percentage of customers who evaluate the company as a “partner that supports problem-solving” through the value it provides, based on surveys aligned with regional strategies.
*2

APAC: Asia Pacific
*3

Ratio of projects involving co-creation with external organizations within the total number of R&D projects
*4

Maturity assessment based on guidelines developed with reference to international standards and frameworks related to cybersecurity
*5

Activities to anticipate and assess the social and ethical impacts of technologies from the planning and development stages, and to reflect risk mitigation measures in products and services
*6

Percentage of group companies that have addressed all key items identified in the Ricoh Group human rights risk assessment
*7

Number of suppliers with multiple non-compliant items against the requirements of the Ricoh Group Supplier and Partner Code of Conduct, which is based on the Code of Conduct of RBA (A global industry coalition aimed at fulfilling corporate social responsibility in global supply chains)
*8

A staged assessment of the extent to which employees’ awareness and systems (compliance framework) for complying with laws, internal regulations, and codes of conduct are embedded and functioning
*9

Uses Gallup’s Q12 mean score (evaluation scores for 12 factors to predict high organizational performance)
*10

Recommended digital certifications and skills defined by Ricoh for each talent category based on the IPA’s DX Skill Standard
*11

GHG: Greenhouse Gas

<The 21st Mid-Term Management Strategy（Fiscal 2023-2025）> Materiality, ESG targets, and performance

Under the 21st Mid-Term Management Strategy, we established 16 ESG targets from the perspectives of “transformation into a digital services company” and “addressing societal and customer expectations,” and achieved the targets for 13 of the indicators. For the following indicators that did not achieve their targets—① Customer survey scores, ⑮ Engagement score, and ⑯ % of women in managerial positions—we will continue to set targets under the Mid-Term Management Strategy ’26 and promote initiatives to address these challenges.

Resolving social issues through business

Materiality (Material issues)	Focus domains	ESG targets in the 21st Mid-Term Management Strategy （End of Fiscal 2025）		Results
Materiality (Material issues)	Focus domains			Fiscal 2023	Fiscal 2024	Fiscal 2025
Creativity from Work	Office services Smart Vision, and others	① Customer survey scores^*1	29%			Achieved in four out of five regions.
Creativity from Work	Office services Smart Vision, and others	① Customer survey scores^*1	29%	Japan: 26.3% North America: 39.3% Latin America: 64.8%^*2 Europe: 24.5% APAC: 17.4%	Japan: 26.8% North America: 38.6% Latin America: 45.5%^*2 Europe: 28.2% APAC: 30.8%	Japan: 32.4% North America: 39.6% Latin America: 49.5%^*2 Europe: 28.9% APAC: 40.0%
Community and social development	GEMBA（Maintenance and services for stores, warehouses, and other non-office sites） Municipal solutions Educational solutions, and others	② Number of people to whom we have contributed by improving social infrastructure	23.5 million people	17.94 million people	22.35 million people	43.29 million people
Zero-carbon society	Eco-friendly MFPs Commercial printing Silicone-top linerless labels On-demand Direct Printing (ODP) Thermal media, and others	③ GHG Scope 1, 2 reduction rate (vs. 2015)	50%	47.4%	59.1%	(To be disclosed in June 2026)
		④ GHG Scope 3 reduction rate (vs. 2015)	35%	38.1%	46.8%
		⑤ Renewable energy usage ratio	40%	31.0%	43.2%
		⑥ Avoided emissions	1,400 thousand tons	1,059 thousand tons	1,448 thousand tons
Circular economy		⑦ Virgin material usage rate	80% or less	78.9%	78.3%

*1

The percentage of customers who evaluated us as a digital services company
*2

A survey targeting solution customers in Latin America

Robust management infrastructure

Materiality (Material issues)	ESG targets in the 21st Mid-Term Management Strategy （End of Fiscal 2025）		Results
Materiality (Material issues)			Fiscal 2023	Fiscal 2024	Fiscal 2025
Responsible business processes	⑧ CHRB score^*4	ICT sector leader	Self-assessment completed. 55% progress toward target	Self-assessment re-performed. 90% progress toward target	One of the ICT sector leaders
	⑨ Compliance with NIST SP800 -171 coverage of Ricoh’ s core business environment	80% or more	Continued identification and assessment of information to be protected	Identification of information to be protected and formulation of a plan completed. Countermeasures partially completed.	90.7%
	⑩ Low-compliance risk group companies	80% or more	Completed a pulse survey for high-risk organizations	Improvement measures developed in the high-risk organization. Implementation partially completed.	96.3%
Open innovation	⑪ Contracted Joint R&D ratio	25%	23.0%	22.7%	26.4%
Open innovation	⑫ Digital service patent application ratio^*5	60%	54.7%	64.6%	67.8%
Diverse and inclusive workforce	⑬ Ricoh Digital Skills Level 2 or above rated employees (Japan)	4,000 people	2,855 people	4,658 people	6,811 people
	⑭ Process DX Silver Stage-certified employee ratio^*6	40%	21.1%	34.2%	54.0%
	⑮ Engagement score ^*9	Global: 3.91 Japan: 3.69 North America: 4.18 Latin America: 4.14 Europe: 4.01 APAC：4.15	Global: 3.79 Japan: 3.57 North America: 4.00 Latin America: 3.90 Europe: 3.92 APAC：4.03	Global: 3.84 Japan: 3.61 North America: 4.00 Latin America: 3.95 Europe: 3.90 APAC：4.20	Global: 3.89 Japan: 3.67 North America: 4.02 Latin America: 3.98 Europe: 3.98 APAC: 4.28
	⑯ % of women in managerial positions	Global:20% Japan:10%	Global:16.5% Japan:7.7%	Global:17.2% Japan:8.4%	Global:17.9% Japan:9.4%

*4

CHRB (Corporate Human Rights Benchmark) Score: An international human rights initiative established by institutional investors and NGOs. It evaluates global companies from five sectors: food and agricultural products, apparel, extractives, ICT manufacturing, and automotive manufacturing.
*5

Ratio of patent applications related to digital services business to total patent applications
*6

Training rate of personnel with process improvement experience based on a Process DX model (The denominator is the total number of personnel in the training target organization of each business unit.)

Materiality Analysis

Materiality-specific process

Step 1:Identification of Issues

Extract a list of sustainability-related issues by referring to disclosure standards (ESRS^*1, SASB Standards^*2, SSBJ Standards ^*3), WEF Global Risks^*4, and the SDGs
Classify, organize, and consolidate the issues, taking into account focused managerial risks, current materiality, and business strategies
Identify 19 key social issues that require close attention

Step 2:Prioritization of Issues

Establish evaluation criteria for risks, opportunities, and impacts, using the evaluation process of focused managerial risks and ESRS as references
In collaboration with relevant departments, identify risks, opportunities, and impacts related to the 19 key social issues, and evaluate them based on the established criteria
Based on the evaluation results, identify high-priority issues and define them as materiality

Step 3:Management Review and Stakeholder Engagement

Deliberate on the identified materiality and areas for setting ESG targets at the ESG Committee
Exchange opinions with shareholders, investors, experts, and ESG representatives from Ricoh Group sites

Step 4:Alignment with Departmental Mid-Term Strategies and Setting ESG Targets

Based on risks, opportunities, and impacts related to high-priority social issues, each organization considers initiatives in its mid-term strategy and ESG targets as KPIs
Ultimately establish 6 materialities, 11 social issues, and 15 ESG targets

Step 5:Management Decision-Making

Deliberate and determine materiality and ESG targets at the ESG Committee, obtain approval from the Board of Directors along with financial targets of the mid-term management strategy, and disclose them

*1

ESRS: European reporting standards that define corporate sustainability disclosure requirements under the EU’s CSRD (Corporate Sustainability Reporting Directive)
*2

SASB Standards: Industry-specific standards aimed at disclosing sustainability information that affects corporate value. The Ricoh Group refers to the Hardware industry
*3

SSBJ Standards: A sustainability disclosure framework in Japan established by the Sustainability Standards Board of Japan (SSBJ)
*4

WEF Global Risks: A report published by the World Economic Forum (WEF) that outlines major global risks

Relationship between executive compensation and ESG indicators

To clarify management's responsibility for ESG initiatives and achieving targets, we have incorporated ESG indicators into executive compensation since the fiscal year 2020.

Under the 21st Mid-Term Management Strategy, we linked ESG indicators with the compensation of internal directors and executive officers, with the aim of reflecting ESG initiatives in management. Specifically, we incorporated the “DJ BIC Indices Annual Rating” into performance-linked bonuses (short-term) and embedded ESG targets into performance-linked stock-based compensation (Long-term). Starting from The Mid-Term Management Strategy ’26, in order to further strengthen alignment with mid- to long-term corporate value enhancement, we will narrow the ESG targets linked to compensation down to three areas that are particularly closely related to the management strategy, and we will incorporate them into performance-linked stock-based compensation (Long-term).

^* DJ BIC (Dow Jones Best-in-Class) Indices: Renamed from the former “Dow Jones Sustainability Indices (DJSI),” these are a global ESG index that selects companies with top sustainability performance based on assessments of S&P Global.

ESG targets incorporated into performance-linked stock-based compensation (Long-term)
Category	ESG targets
Prosperity	Customer survey scores
People	Engagement score
Planet	GHG Scope 1and 2 reduction rate

Approach to Materiality (Material issues)

The Ricoh Group’s policy is to “align ESG with business growth.” By leveraging our strengths, we will further drive business growth through our initiatives. We are pleased to introduce the Ricoh Group’s efforts to help resolve social issues through our business activities.

Resolving Social Issues through Business