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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.

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 2020 for Ricoh Group ESG target (811KB)

Seven Material Issues and SDGs

image: Seven Material Issues and SDGs

Ricoh’s Approach to Seven Material Issues and ESG Targets

image: Ricoh’s Approach to Seven Material Issues and ESG Targets (Resolving social issues through business)

image: Ricoh’s Approach to Seven Material Issues and ESG Targets (Robust management infrastructure)

Materiality Analysis

In 2014, the Ricoh Group set materiality for the first time based on the trends in the international community, expectations from stakeholders, and its importance for management. With the launch of our 19th MTP in April 2017, based on the Sustainable Development Goals that were agreed by the international community, Ricoh's Mission Statement, and the MTP as well as expectations of our stakeholders, and after thorough discussion among management, we revised the material issues that we focus on through business. We reviewed material issues again in April 2020 from the perspective of consistency with the strategies of the MTP, and we will review regularly from now on. In the 20th MTP, starting from April 2020, we set targets for each materiality (ESG targets) and disclosed the results.

Process of Materiality Analysis

image: Process of Materiality Analysis

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.

Global SDGs Communication book 2020 cover

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