Implementation and Disclosure Enhance Corporate Value —Ambitious climate action puts Ricoh ahead globally—

* This content is excerpted from an advertisement that appeared in the Nihon Keizai Shimbun on December 23, 2022. All rights reserved. 

* Solar panels on the rooftop of Ricoh Elemex Ena Plant 

As the need for an effective response to climate change has risen to the top of the global agenda, the role of the private sector has become the focus of increasing expectations. Having set ambitious targets, Ricoh is vigorously advancing toward a zero-carbon society by positioning the implementation of measures and disclosure of results as two indispensable engines powering corporate value enhancement. 

Climate action has not been commensurate with the urgency and scale of this global issue, so there is a pressing need to strengthen countermeasures. Stakeholders’ expectations of companies have consequently shifted from simply setting high quantitative targets to taking decisive action now and achieving concrete results. 

The Ricoh Group is a pioneer in climate change initiatives. In 2017 Ricoh became the first company based in Japan to join RE100, a global corporate initiative bringing together companies committed to satisfying 100% of their electricity needs with renewables. Furthermore, Ricoh’s declaration of its intention to achieve carbon neutrality by 2050 predated the Japanese government’s declaration. Working with the Science Based Targets initiative (SBTi), Ricoh set science-based targets for reducing greenhouse gas emissions to limit global warming to 1.5℃ rather than limiting warming to well below 2℃ above pre-industrial levels and, since fiscal 2018, has been achieving reductions at a pace exceeding the targets. 

Ricoh has set challenging targets and is implementing measures in ways that make the results crystal clear. The company has incorporated sustainability into its management strategies and systems. Since fiscal 2020, following discussions involving the executive team, it has set quantitative ESG (environmental, social, and governance) targets as commitments linked to executive compensation. Ricoh has achieved gratifying results, such as a 100% renewable energy ratio for electricity used in manufacturing A3 Multifunction Printers, its mainstay product. 

Encouraging the involvement of other parties inside and outside Japan, emphasizing global communication 

Forging ahead as a climate action pioneer, Ricoh is seizing the initiative by embracing global trends and promoting activities that not only illuminate a path to the future but also involve other parties in the process. One of Ricoh’s distinguishing characteristics is that its executive team actively engages in external outreach and information dissemination. President and CEO Yoshinori Yamashita is exercising leadership as co-chair of the Japan Climate Leaders’ Partnership (JCLP). In April 2022, he participated in JCLP’s dialogue with Japanese Prime Minister Fumio Kishida at the Prime Minister’s Office, handing him JCLP’s proposal on the need to strengthen decarbonization policies. President and CEO Yamashita is also emphasizing global communication. For example, he was a keynote speaker at a Reuters event in London in October 2022. He shared Ricoh’s initiatives empowering employees to be ESG advocates by engaging and inspiring them to fulfill critical roles in addressing the ESG agenda, not least climate change, and driving change forward. 

Ricoh is also emphasizing dialogue and engagement with stakeholders. Its proactive disclosure of information at ESG briefings has earned plaudits from investors and analysts. Indeed, Ricoh’s activities extend to the holding of ESG briefings for suppliers and assisting them in setting reduction targets. The company also welcomes and responds to the many requests for consultation it receives from customers. Ricoh believes that sharing the knowledge it has gained through implementation with a wide range of stakeholders will help revitalize environmental initiatives throughout society and thus promote more effective climate action. 

Highly regarded by external organizations 

Accelerating decarbonization efforts 

Information disclosure and implementation are of equal importance since they mutually reinforce each other, amplifying the overall impact and thus maximizing Ricoh’s contribution to the emergence of a sustainable society. Ricoh positions the implementation of action and disclosure of the results as two indispensable engines powering the enhancement of corporate value. In addition to the disclosure in its Integrated Report, Ricoh began disclosing information following the framework of the Task Force on Climate-related Financial Disclosure (TCFD) in 2019 and has been deepening such content every year through the publication of the Ricoh Group TCFD Report since 2021. Ricoh’s fourth disclosure based on the TCFD framework in 2022 included a message from the CEO, a concrete roadmap for decarbonization, information on GHG Scope 3, and directors' involvement. In addition to the Integrated Report and the TCFD Report, the company further strengthened information disclosure in fiscal 2022. Ricoh published the Ricoh Group Circular Economy Report, focusing on resource recycling, and the Ricoh Group ESG Data Book. Information disclosure in the environmental field, which is of particular interest to stakeholders, is being systematically enhanced. 

Several external organizations have highly evaluated Ricoh’s initiatives in fiscal 2022. Ricoh was included in the World Index of the Dow Jones Sustainability Indices (DJSI) for the third consecutive year, representing the top 10% of approximately 3,500 companies worldwide in the S&P Global BMI based on economic, environmental, and social criteria. Ricoh maintained the highest five-star rating in the Nikkei SDGs Management Survey, won the Environmental Value Award at the 4th Nikkei SDGs Management Grand Prix, and has been on the Climate Change A List of CDP, an environmental NGO (non-governmental organization) based in the UK. 

While society’s demands and stakeholder expectations continue to evolve, Ricoh is able to make improvements in line with global trends because it positions external assessments as tools for corporate health checks and continually monitors the quality of its ESG initiatives. By communicating the results of these assessments to the world, Ricoh can gain the trust of investors, customers, and business partners. Through repeated iterations of this cycle, Ricoh is accelerating its decarbonization initiatives while strengthening their linkage to the enhancement of corporate value. 

Please refer to the Integrated Report, TCFD Report, Circular Economy Report, and ESG Data Book for details.