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 every three years.
[Materiality] | [Strategic Intent] | |
---|---|---|
Resolving social issues through business | Creativity from Work | To provide digital services that transform the way customers work, and help them improve productivity improvement and value creative |
Community and Social Development | To contribute to the maintenance, development, and efficiency of community and social systems. We leverage our technical expertise and customer connections to expand the areas where we provide value. | |
Zero-Carbon Society | To decarbonize the entire value chain and create business opportunities by contributing to carbon neutrality | |
Circular Economy | To create business opportunities by building a circular economy business mode for ourselves and our customers |
[Materiality] | [Strategic Intent] | |
---|---|---|
Robust management infrastructure | Responsible Business Process | To earn stakeholder trust by taking a holistic view of our supply chain and minimizing ESG risks in our business processes |
Open Innovation | To shift from a self-sufficient approach to a new value creation process that creates business to quickly resolve social issues | |
Diverse and Inclusive Workforce | To foster a corporate culture where diverse employees can demonsrate their potential and transform themselves and the company into one that is resilient to change |
Resolving social issues through Business
Materiality (Material issues) |
2030 targets | Focus Domains | 21st MTS ESG Targets (End of FY2025) |
FY2023 achievements | Progress and challenges towards achieving targets by 2025 | |
---|---|---|---|---|---|---|
Creativity from Work |
Contribute to “Creativity from Work” of all customers to whom we deliver value |
|
(i) Evaluation by customers*1 | 29% |
|
Sharing and horizontal deployment of best practices between regions |
Community and Social Development |
Contribute to the enhancement of social infrastructure for 30 million people |
|
(ii) Number of people to whom we have contributed by improving social infrastructure | 20 million people | 17.94 million people | Progressing as planned |
Zero-carbon Society |
Reduce GHG emissions by 63% for scope 1 and 2, and 40% for scope 3 Switch to 50% renewable electricity |
|
(iii) GHG scope 1, 2 reduction rate (vs. 2015) | 50% | 50.6% | |
(iv) GHG scope 3 reduction rate (vs. 2015) | 35% | 38.5% | ||||
(v) Renewable energy utilization rate | 40% | 33.6% | ||||
(vi) Reduction contribution amount | 1,400 thousand tons | 1,059 thousand tons | ||||
Circular Economy |
Ensure efficient use of resources throughout the entire value chain and achieve 60% or less of virgin material usage rate | (vii) Virgin material usage rate | 80% or less | 78.9% |
*1 The percentage of customers who evaluated us as a digital services company
*2 A survey targeting solution customers in LA
*3 GEMBA: Maintenance and services business targeting other than offices (e.g., stores and warehouses)
Robust management infrastructure
Materiality (Material issues) |
21st MTS ESG Targets(End of FY2025) | FY2023 achievements |
Progress and challenges towards achieving targets by 2025 | |
---|---|---|---|---|
Responsible Business Process |
(viii) CHRB score*4 | Top of the ICT sector | Self-assessment completed | Implementation of definite improvement activities for the identified priority issues |
(ix) Coverage rate of company’s core business environment complying with NIST SP800-171 | 80% or more | Identification and assessment of information to be protected underway | Early identification and assessment of information to be protected | |
(x) Ratio of Group companies with low compliance risk | 80% or more | Pulse survey completed for high-risk organizations | Progressing as planned | |
Open Innovation |
(xi) Weight of joint R&D contracts | 25% | 23% | |
(xii) Ratio of digital services patent applications*5 | 60% | 54.7% | ||
Diverse and Inclusive Workforce |
(xiii) Number of people with Ricoh Digital Skill level 2 or above (Japan) | 4,000人 | 2,855 people | |
(xiv) Training rate of Process DX Silver Stage certified personnel*6 | 40% | 21% | ||
(xv) Engagement score *7 |
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(xvi) Female manager ratio | 20% (Japan: 10%) | 16.5% (Japan: 7.7%) |
*4 CHRB (Corporate Human Rights Benchmark) Score: An international human rights initiative
established by institutional investors and NGOs. It evaluates approximately 250 global
companies from five sectors (agriculture, apparel, mining, ICT, and automotive)
*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 (Denominator is the total number of personnel in the training target organization of each business unit.)
*7 Uses Gallup’s Q12 mean score
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
The materiality and ESG goals are deliberated and decided upon by the ESG Committee, which consists of the CEO as the Chairman, all Internal Directors, and Executive Officers. These decisions are made in conjunction with the financial goals of the mid-term management strategy and are approved by the Board of Directors before disclosure.
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 shareholders/investors/analysts
Feedback from large IR meetings
ESG requests from customers during negotiations
Request in ESG evaluation systems
Opinions from internal stakeholders
Dialogues with external organizations such as JCLP and JCI
Reference Guidelines
SDGs Compass
GRI standard
European Guidelines on non-financial Reporting directive
Ministry of the Environment's Environmental Reporting Guidelines
TCFD
Ten Principles of the United Nations Global Compact
ISO26000
To clarify management's responsibility for ESG initiatives and achieving targets, we have incorporated ESG indicators into executive compensation since the fiscal year 2020.
By incorporating the "DJSI* Annual Ratings," which are used as a tool to monitor ESG initiatives, into the performance-based bonus calculation formula for directors and executive officers, we provide incentives for ESG initiatives. Furthermore, executive officers' compensation is also linked to ESG goals within their areas of responsibility, enhancing commitment to achieving ESG targets in each business unit and group headquarters.
* The Dow Jones Sustainability Index (DJSI) is a share index jointly developed by Dow Jones in the US and S&P Global, a company specializing in research on sustainable investment, to measure the sustainability of major companies around the world from the three perspectives of economy, environment, and society.
Starting from the fiscal year 2023, in addition to bonuses, we have introduced performance-based stock compensation with ESG targets for directors. The number of ESG targets achieved by the company is linked to the payment rate. Furthermore, this system will also be introduced for executive officers from the fiscal year 2024.
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 identify four material issues for “Resolving social issues through Business”, and we regard them as particularly significant business opportunities. By leveraging our strengths in these areas, we aim to drive further business growth. We would like to introduce our activities.