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CSR throughout Our Supply Chain

Our business activities give us a large sphere of influence when it comes to social accountability, so it is crucial for the many companies and individuals along our supply chain to help the Ricoh Group avoid or minimize unintended negative effects. To that end, we make sure not only our employees, but also the employees of our suppliers, always act ethically. We spotlight this concern in our international guidelines on human rights, labor, the environment and more, and are working continuously to raise our initiatives to the next level.

image:Ricoh Group basic policy in procurement activities

Ricoh Group basic policy in procurement activities

The Ricoh Group’s businesses are supported by many suppliers. Recognizing these suppliers as our essential business partners, we build a relationship of trust with them, aiming at mutually beneficial development.

Today’s society faces various issues to address, such as those associated with the environment and human rights. To help solve these issues and achieve a sustainable society, the Ricoh Group promotes business activities so as to achieve SDGs, upholding the slogan of “Driving Sustainability for Our Future.” In order to effectively pursue this goal to meet social expectations, we need to cooperate with the entire supply chain, sharing our group policies and visions with individual suppliers. To this end, we have established the Ricoh Group purchasing regulation to appropriately deal with relevant CSR issues involving legal compliance, fairness and environmental and societal impacts. Using this as a tool, we are working to enhance our efforts on a global scale.

Ricoh Group Purchasing Regulation

[Fairness of Dealing]

To operate the purchase activities in impartial and fair manner which is open to all over the world, based on the economic rationality.

[Environmental Conservation]

To operate, as a member of the global citizen, the purchase activities in such a manner as to contribute to the conservancy and the improvement of the global environment.

[CSR]

To operate the purchase activities bearing in mind CSR and based on the compliance with law and esteem of the social ethics.

[Coexistence & Co-prosperity with Suppliers]

To aim at coexistence and co-prosperity with excellent Suppliers on the basis of mutual responsibility.

Ricoh Group supply chain

On a global basis, the Ricoh Group’s business has a total of approximately 1,700 supplier companies, posting a purchasing amount of 350 billion yen (as of March 2019). We work to achieve group-wide procurement optimization in cooperation with our global suppliers.

image:Number of suppliers by region

image:Regional ratio of purchase amount

Critical suppliers selection process

We specify critical suppliers primarily based on purchasing amount and volume, and the criticality and substitutability of materials/components, following the two steps below. As of March 2019, a global total of approximately 450 companies have been specified as critical suppliers.

【First Step】

When starting a new transaction, we select suppliers in accordance with the basic policy in purchasing activities, and include provisions related to ESG (Environment, Social and Governance) in the basic business agreement.

【Second Step】

From among the suppliers selected as satisfying the first step requirements, those involving large purchasing amounts, components for key products and strategic models, and non-substitutable parts are specified as “critical suppliers.”

image:Critical suppliers selection process

Building relationship with suppliers based on trust

We work to forge relationships of strong trust and long-term cooperation with our suppliers, aiming at mutually beneficial development. As part of related efforts, we focus on sharing awareness of the importance of CSR and deepening the understanding of the issue through interactive communication, taking opportunities afforded by providing the Ricoh Group Code of Conduct Guidebook and holding production trend briefings and other seminars. Additionally, we exchange information with suppliers on CSR procurement through RaVenderNET, a communication network installed for the primary purpose of sharing information on production and environmental impact from raw materials and components.

Ricoh Group Supplier Code of Conduct

In January 2006, the Ricoh Group established the Ricoh Group Supplier Code of Conduct for our suppliers, so that they can understand and support the Ricoh Group’s basic CSR policy and make efforts to aim at a better society and global environment as well as sustainable development of businesses. The code of conduct is available in three languages (Japanese, English and Chinese) and is distributed to all our suppliers, who are required to comply with it. In addition, the Supplier Code of Conduct Guidebook has been created and is provided to suppliers to increase their understanding of the importance of complying with the code of conduct.
To effectively promote CSR activities throughout the entire supply chain, we ask suppliers to develop appropriate activities based on the code of conduct.

Ricoh Group Supplier Code of Conduct(268KB)

Ricoh Group Supplier Code of Conduct(Index)

  1. Providing customer-oriented products
    1) Ensure product safety
    2) Quality assurance system
  2. Free competition and fair trading
    1) Prohibit impediment to free competition
    2) Prohibit abuse of a superior position
  3. Managing corporate secrets
    1) Prevent the leakage of customer and third-party confidential information
    2) Prevent the leakage of personal information
    3) Secure computer networks against threats
  4. Limits on entertainment and gifts
  5. Strict control of exports and imports
  6. Protection and use of intellectual properties
  7. Participation in anti-social actions
  8. Responsible sourcing of minerals
  9. Protection of corporate assets
    1) Detect injustice promptly
    2) Procurement risk management
  10. Respecting the global environment
    1) Control hazardous chemicals in products
    2) Control hazardous chemicals in manufacturing
    3) Environmental management system
    4) Minimize environmental pollution (water, soil, air)
    5) Obtain environmental permits
    6) Promote resource and energy saving by reusing, reducing, and recycling (3R)
    7) Promote green-house gas reduction
    8) Promote waste reduction
    9) Disclose environmental preservation activities
    10) Conservation of biodiversity
  11. Respect for human rights
    1) Prohibit forced labor
    2) Prohibit inhumane treatment and infringements of human rights
    3) Prohibit child labor
    4) Prohibit discrimination
    5) Pay appropriate wages
    6) Regulate working hours
    7) Freedom of association
    8) Apply safety measures for equipment and instruments
    9) Promote safe activities in the workplace
    10) Promote hygiene in the workplace
    11) Apply appropriate measures for occupational injuries and illnesses
    12) Properly manage disasters and accidents
    13) Be careful about physically demanding work
    14) Promote safety and hygiene in all company facilities
    15) Promote health maintenance programs for employees
  12. Practical contributions to society
  13. Harmonizing with society
    1) Provide accurate information on products and services
    2) Disclose appropriate company information

CSR procurement briefing sessions

image:CSR briefing sessionsCSR briefing sessions

We host CSR procurement briefing sessions for major suppliers to explain our procurement policy as well as to ask for greater efforts in practicing CSR activities in a consistent manner throughout the entire supply chain. We also hold CSR seminars for suppliers to boost their understanding of the Ricoh Group’s CSR policy.
In fiscal 2018, we held CSR briefing sessions for approximately 160 suppliers in Japan. We shared with suppliers on such topics as social issues including global environmental issues and significance of SDGs, and relevant initiatives and targets planned by the Ricoh Group, and received comments from many participants, including "It was helpful for advancing our CSR activities" and “I better understand SDGs.” After the briefing session, we implemented the CSR self-assessment and confirmed the situation of ethics, environment, human rights, labor, safety and health, etc. according to social trend and external requests. In feedback, we showed their compliance level of codes, not only items for any improvement, but also items that are superior are presented specifically and we tried interactive communication.

Addressing CSR procurement

While operating the business globally, the Ricoh Group considers the ESG in the supply chain and responds to the challenges of each field, we believe that working together with suppliers to address and solve the various problems of the global environment and society will be the driving force for the development of a healthy company and, ultimately will realize a sustainable society. For that we will promote this initiative from the perspective of long-term corporate value improvement.

Rollout of supply chain CSR

image:Rollout of supply chain CSR

Green procurement

To reduce the environmental impact of its entire supply chain, the Ricoh Group works to enhance environmental protection efforts in cooperation with suppliers. As a measure to facilitate relevant efforts at suppliers to establish the Ricoh Group’s environmental management system (EMS), we have created the EMS Guidelines and Green Procurement Standard, to which we refer for purchasing raw materials and components from suppliers. Similarly, to help suppliers establish a chemical substance management system (CMS), we have developed the CMS Guidelines, and use it as a tool for providing training and operational support.

Supply chain chemical substance management system

image:Supplier CMS TrainingSupplier CMS Training

To help establish a chemical substance management system (CMS) across its entire supply chain, the Ricoh Group commenced a program in fiscal 2005 to train and certify suppliers’ employees as CMS examiners. In addition to internal audits facilitated by their own companies, certified examiners will conduct audits upstream suppliers that deal with important processes involving environmentally sensitive substances and will support them in establishing a CMS.
We have continued to conduct a Supplier CMS Trainings in Japan. The training course provides a classroom learning of CMS in the first half and a role-play of CMS examining in the second half. In fiscal year 2018, 61 employees from 49 companies participated and all of them passed the training tests. We will continue to support the level up as examiners.

Targets and achievements of the CMS Training

FY Number of companies Number of participants Rate of passing test (target / achievement)
2014 81 107 100%/100%
2015 89 117 100%/100%
2016 90 116 100%/100%
2017 76 91 100%/100%
2018 49 61 100%/100%
The achievements of the CMS Training

image:The achievements of the CMS Training

Supporting suppliers’ decarbonization efforts

In pursuit of a zero-carbon society, the Ricoh Group is expanding its CO2 emissions reduction activities that allow suppliers to join in with the Group’s efforts. One such activity involves supporting suppliers in switching to clean electricity.
We have shared the global warming countermeasures and information of trend on the environment that became a common global issue after the Paris Agreement, with the management of suppliers in order to aim to raise awareness about CO2. Besides, based on practical cases and know-how in the Ricoh Group, we have supported suppliers on CO2 emissions reduction activities. In the future, together with our suppliers, we will continue to practice environmental management that realizes environmental conservation activities and creation of profits.

image:Taizo Miyazawa, Representative Director
Case report: Supporting suppliers in switching to “new power” to reduce CO2 emissions

Miyazawa Machinery Industrial Co., Ltd. (Head office/plant in Omori-honcho, Ota-ku; plant in Jonanjima, Ota-ku; Website: http://www.m-mic.co.jp/)

Interview with Taizo Miyazawa, Representative Director

How did your company begin working to reduce CO2?

We have been promoting energy conservation over several years in our major business sites at the head office and at plants. We installed LED lighting, energy saving air conditioners and other systems. In the summer of 2018, we received a request from Ricoh to switch to “new power,” which is provided by a power producer and supplier (PPS). Ricoh explained in earnest about the objective of promoting the initiative and its effect on society, which made us consider accepting their request. However, the switch was difficult to do immediately at the time, given the need to fulfill our ongoing contract for multi-year services. We decided to bring forward the issue for reconsideration when that contract expires.

What made your company adopt the CO2-free option?

Ricoh offered to provide their accumulated know-how and operational support for switching to new power. We began to consider the possibility of the switch as an approach to cutting costs and CO2 emissions at once. The company invited us to CSR briefing sessions and SDGs seminars, where we were impressed by their eagerness for environmental initiatives. As a parts supplier, we thought we should support Ricoh in pursuing the initiatives, and decided to introduce new power. Our decision was driven particularly by a plan that could allow us to select a CO2-free option and lower costs compared with the service by the previous power company. We became the first supplier to respond to Ricoh’s request, which also boosted our motivation.

What are your future plans?

Following the power company change, we plan to reduce power usage in order to further facilitate CO2 emissions reduction. The Ricoh Group will also help us for this purpose, such as by sending specialists to provide know-how for power usage data analysis. Working with Ricoh, we will make continued efforts to reduce CO2 emissions and contribute to achieving SDGs to create a sustainable society.

Suppliers implementing CO2 reduction activities

Reduction amount of CO2 emissions 986 tons

company website
IKEDA-KOKI inc. http://www.ikeda-koki.co.jp/company/company.html
KISHIRO HIKARI KAGAKU CO.,LTD. http://www.kishiro.co.jp/
KOUKIKASEI Co.,Ltd. https://kouki-kasei.jimdo.com/
SHIZUKOH SANGYOH CO.,LTD. http://www.shizukoh.com/
SEKI-SEISAKUJYO Co.,Ltd. https://www.seki-seisakujyo.com/
DAIICHI KOHKI CO.,LTD. http://www.d1k.co.jp/
TOKYO PLASTICS INC. http://www.tokyo-plastics.co.jp/
NISSHIN Co.,Ltd. http://www.nisshin-corp.com/index.php#
HANEDA UNITEC CO., Ltd. http://www.haneda-unitec.jp/
MIYAZAWA MACHINARY INDUSTRIAL co., ltd http://www.m-mic.co.jp/

Support to suppliers’ process improvement

We promote cost reduction programs jointly with suppliers to build long-term relationships of trust based on mutually beneficial cooperation. The programs aim to improve profits (financial statements) at our partners, and involve a range of processes, starting from consensus formation at the top management level among relevant companies, followed by sharing and analyzing information, checking facts and inspecting factories to select issues, executing improvement plans and verifying results.

Identifying risks associated with suppliers

We assess risks associated with each supplier in consideration of its location of operation and the possibility of involving environmentally hazardous substances. Based on the assessment, we identify high-risk suppliers and carry out measures to reduce the risk through periodically monitoring the financial situation, introducing the CSR Self-Assessment program and providing for third-party audits.
In fiscal 2018, we conducted two unannounced audits of suppliers with coating processes that may contain or contaminate prohibited substances. Thorough the inspection of their production sites, we confirmed that all products were lead-free electroless nickel-coated, and determined that there was no possibility of inclusion of prohibited substances.

CSR Self-Assessment System

We have introduced a CSR Self-Assessment System based on the RBA Code of Conduct that helps suppliers monitor their compliance with the Ricoh Group Supplier Code of Conduct. The system has been rolled out in Japan, China and Thailand. Company activities are assessed in labor, safety and health, the environment, ethics, and management system to identify issues to address. The results are fed back to the suppliers, who receive requests for improvement if applicable, together with advice and support on ways to meet society's needs and expectations. If a supplier's improvement activities are not sufficient, we would discuss the future business relationship with the supplier.
With the CSR Self-Assessment System, the Ricoh Group provides our suppliers with support in implementing a "plan, do, check, act" (PDCA) cycle by themselves to meet society’s needs and expectations.

CSR Self-Assessment Targets and Achievements

In fiscal 2018, we launched a new CSR Self-Assessment program based on the RBA Code of Conduct for suppliers in China and Thailand. From the analyzed responses (rate: 100%), we identified a number of issues. To address them, Ricoh provided related companies with advice for improvement measures and periodically monitors implementation progress in order to support their continued efforts.

FY 2017 2018 2019 (target)
Country Japan China & Thailand China & Thailand
Scope Important suppliers of magnetoencephalograph Important suppliers Important suppliers
Number of suppliers 7 12
・Started implementing a new CSR Self-Assessment based on RBA* Code of Conduct
・Implemented site audits in Thailand and China
・Implemented third-party audits in China
18
・Continually implement a new CSR Self-Assessment based on RBA* Code of Conduct
・Continually implement site audits (including third-party audits) in Thailand and China
Response rates from suppliers
(target/achievement)
100% / 100% 100% / 100% - / 100%

*RBA:Responsible Business Alliance, organizations promoting CSR in supply chain

Major targets and achievements regarding social responsibility

*Indicator 2: Response rate for CSR self-assessments by suppliers (%)

Implementation of CSR Audits

In fiscal 2018, we conducted internal audits of suppliers in Thailand and third-party audits of suppliers in China, both based on the RBA Code of Conduct, and identified issues to be addressed. We provided feedback about the audit results for each supplier and requested for corrective actions for areas needing improvements. We will continue to conduct the audit of suppliers in fiscal 2019.

Supplier Awards

Every year, we select suppliers that have demonstrated excellent performance related to product quality, delivery time, environmental protection, CSR activities etc. and made significant contributions to the Ricoh Group’s business development. We set Ricoh Group’s criteria and select suppliers with the result of the latest one year. Manager of Global Procurement Division awards the selected suppliers directly and has built up strong relationships with the suppliers and aimed to goal for achievement of SDGs.

Addressing human rights issues

Risks associated with human rights are an emerging supply chain management issue. To deal with this concern, the Ricoh Group asks its suppliers to comply with the Supplier Code of Conduct, which includes prohibitions of human rights abuses, such as child labor and forced labor, while monitoring their compliance through the periodical CSR Self-Assessment program and requesting improvement efforts as necessary.
In response to the UK’s Modern Slavery Act, which came into force in October 2015, we have posted a relevant statement on the website of Ricoh Europe Holdings PLC, our sales arm in Europe. We also address conflict minerals issues* that are receiving growing public attention, carrying out continued activities, including information disclosure.

Efforts to address child labor issues

Child labor is one of the priority issues of the Ricoh Group's TRM (total risk management) efforts, and relevant departments have been engaged in various projects to address child labor issues. The Ricoh Group has already surveyed the compliance with laws that prohibit child labor by manufacturing sites in Japan and abroad. In fiscal 2018, the survey results confirmed that there have been no violations. The self-assessment results from supplier companies also confirmed that there have been no reports of child labor violations. We will continue to monitor child labor.

Addressing the conflict minerals issues

With regard to the responsible supply chain management of minerals from conflict-affected areas and high-risk areas, in order that companies respect human rights and avoid contributing to conflict through their mineral sourcing practices, it is expected to cultivate transparent mineral supply chains and companies’ sustainable growth by the righteous decision-making on the mineral resource procurement with a view to enabling countries to benefit from their natural mineral resources and preventing the extraction and trade of minerals from becoming a source of conflict, human rights abuses, and insecurity.

Basic approach

The Ricoh Group views the issues that the minerals mining or trading in conflict-affected and high-risk areas finances armed groups and fosters conflicts, or closely related to human rights abuses, labor issues or environmental destruction, etc. as an important CSR issue, and continues to secure transparency in the supply chain together with its business partners, also ensures responsible mineral sourcing practices.

The Ricoh Group Supplier Code of Conduct has been revised in 2014 for asking suppliers to understand and cooperate with the new provision titled "Responsible sourcing of minerals".

Policy against Conflict Minerals

Citation from “Ricoh Group Supplier Code of Conduct”

Responsible sourcing of minerals

Suppliers are requested not to procure or use the raw materials, components, products, etc. which include tin, tantalum, tungsten, their ores or mineral derivatives, or gold that are produced illegally in conflict-affected and high-risk areas, in order to avoid complicity of human rights abuses or environmental destruction, etc. in those areas. Suppliers are requested to implement appropriate measures for the responsible sourcing of minerals.

Ricoh Group Supplier Code of Conduct(268KB)

In-house operation and participation in industry organizations

From 2012 the Ricoh Group started to study in-house system approaching conflict minerals issues, and established a cross functional task force in charge of dealing with conflict minerals issues, which consists of representatives from relevant departments within the Ricoh Group companies, and began considering what actions to be taken for the issues. We are continuing these activities, led by the Global Procurement Division and Sustainability Management Division.

In addition, Ricoh, as a member company of the "Responsible Minerals Trade Working Group", launched in May 2012 by JEITA*1, is participating in a Working Group for the entire global supply chain, and studying activities unified in the electronics industry. In 2013, the Ricoh Group participated in the Japan Conflict-Free Sourcing Working Group (CFS-WG) established by automakers and member companies of the "Responsible Minerals Trade Working Group", and has asked the conflict minerals smelters related organizations in Japan to make inquiries about smelters and promote to be the Responsible Minerals Assurance Process (RMAP) conformant continuously.

Conflict mineral survey

The Ricoh Group addresses this conflict minerals issues referring to the “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas". From 2013, we have been conducting a yearly conflict minerals survey targeting suppliers of raw materials and components to be used for the Ricoh Group’s products. In order to ensure that the survey is efficient, an appropriate management system has been built based on the in-house database, and relevant information has been prepared for risk analysis.

Survey conducted in fiscal 2018 and future efforts

The Ricoh Group identified as many parts and materials as possible which were used in the products manufactured at own factories in 2018 or used in case manufacturing was contracted to the third party in the same year, and requested the first-tier suppliers worldwide from which the Ricoh Group procured them to cooperate with the common survey, and received the responses from over 75% of suppliers.

As a result, analyzing the response information from the first-tier suppliers, it was confirmed that there was a possibility that a certain number of products contain the parts or materials which originated in the Democratic Republic of the Congo or an adjoining country, accordingly the Ricoh Group conducted due diligence on the relevant first-tier suppliers. We discuss our future business with the suppliers who have no response to this survey and are judged to require improvement based on the results of the CSR Self-Assessment. The comparison between the smelters and refiners which are certified by the RMAP as RMI*2 published and the smelters and refiners identified through the survey was completed.

In the survey of 2018, the Ricoh Group identified 254 smelter companies have acquired the certification of RMAP conformant.

  Gold Tantalum Tin Tungsten
Number of smelters & refiners 152 46 89 47
Number of RMAP conformant smelters & refiners 102 40 72 40

In fiscal 2018, we also received inquiries from customers about conflict mineral investigation and responded appropriately to all of them.

The Ricoh Group have collected a lot of names of smelters, but some of them could not be identified whether they are really smelters or not in light of publicly accessible Web information. In these circumstances, the Ricoh Group is working to confirm type of the firms in cooperation with other electronic information equipment manufacturers and automobile manufacturers.

In addition, we changed the format for the CSR-Self Assessment which includes the question to promote the responsible sourcing of minerals by our suppliers. The results obtained from such Assessment will lead to our follow-up actions for suppliers.

Continue to cooperate with industry organizations, such as JEITA, contribute to RMI through JEITA, and do activities of the CFS-WG.

*1 JEITA: Japan Electronics and Information Technology Industries Association http://www.jeita.or.jp/

*2 RMI: Responsible Minerals Initiative; former Conflict-Free Sourcing Initiative (CFSI) http://www.responsiblemineralsinitiative.org/

Supply chain BCM (business continuity management)

The Ricoh Group’s extensive supply chain faces a broad range of external risk factors, from natural disasters to changes in the international situation. Our customers are particularly aware of this in the wake of the Great East Japan Earthquake. They are demanding, as part of their business requirements, strong risk management capabilities to ensure that their business operations would not be affected even in the event of an emergency.
The Ricoh Group's policy is to ensure that customers never have to suspend their work, and we have made our support of social infrastructure operations a high priority. We, therefore, require our suppliers to strengthen their BCM by maintaining redundant production bases and parts procurement channels, and to increase their stocks of materials and components in case of widespread disasters such as those caused by earthquakes, tsunami, floods, fire, accidents or new strains of influenza.