Of the Ricoh Environmental Report 2002

RICOH GROUP

SUSTAINABILITY REPORT 2002 Editorial Policy 1 Production (Zero-Waste-to-Landfill) 39 Scope of This Report 2 Marketing 41 Logistics 45 The Ricoh Group’s Vision 3 After-Sales Service 46 Profile of Organization/Economic Achievements 5 Use 47 The Ricoh Group’s Global Network 7 Recycling 50 Corporate Philosophy/Management Philosophy 9 Ricoh General Principles on the Environment 10 Social Responsibilities 56 Logical Necessity of Environmental Conservation Ricoh’s Code of Conduct 57 (Three P’s Balance™) 11 Customer Communication 58 Vision and Strategy (The Comet Circle™) 13 Environmental Communication 59 The Ricoh Group’s Idea of Sustainable Social Contribution Activities 61 Management 15 Environmental Education and Awareness Environmental Action Plan and Environmental Promotion 67 Management Goals Starting in Fiscal 2002 17 Personnel-Related Measures 69 Ricoh Group Environmental Management Health and Safety 71 Promotion System 19 Environmental Management System (EMS) 20 Environmental Accounting 73 Environmental Management Information System 23 Identifying Environmental Impact (Eco Balance) 25 Business Site Data 79 Identifying Environmental Impact (LCA) 27 The Ricoh Group’s Environmental Conservation Activities (1976–March 2001) 81 Environmental Conservation 28 The Ricoh Group’s Social and Environmental Results of Environmental Action Plans Activities (April 2001–March 2002) 82 as of Fiscal 2001 29 Principles of the Environmental Report and Research and Development 31 Responses from the Ricoh Group Sustainability Procurement 33 Report 2001 Questionnaire 83 Production (Preventing Global Warming) 35 Third Party Review 84 Production (Pollution Prevention) 37

Editorial Policy

This report is aimed to clearly explain the ideals, goals, An English version has been published for global distribution activities, and performance of the Ricoh Group to all readers. In since fiscal 1998. 2001, we established the Principle of the Environmental Report (see page 83), and to help Japanese readers to understand Disclosing financial information Ricoh Group activities from a broader perspective, we renamed To successfully carry out environmental management, our Japanese report “Environmental the Ricoh Group endeavors to improve its management Management Report” (direct translation of Kankyou-Keiei- system by looking at all managerial aspects from an Houkokusho) from the “Social/Environmental Report” (direct environment-conscious point of view. To identify the effects translation of Shakai-Kankyou-Houkokusho) of last year. and economic benefits of environmental conservation, the However, the English title is the same as last year i.e. “Ricoh Group explains its activities and discloses information in Group Sustainability Report.” segment environmental accounting.

Target readers Disclosing information on social responsibilities This report is prepared for all readers, including environ- The Ricoh Group, as a global citizen, runs its business based mental specialists, users of Ricoh products, suppliers, local on the concept that the corporation is responsible for communities, employees, nonprofit organizations (NPO’s), contributing to society. Sustainable Management comprises a students, shareholders, investors, and people in charge of number of activities for assuming social responsibilities environmental issues for their companies. including bringing-up capable persons. This report discloses information on our social responsibility activities for wining Disclosing information worldwide public confidence all over the world. Environmental activities should be covered globally; however, it is also very important to take action closely Interactive communication connected with each country and community in which the In order to promote environmental conservation activities Ricoh Group operates for tackling the environmental issues. throughout society, we willingly disclose information that can This year’s report features activities in five regions where be useful to others engaged in environmental conservation the Ricoh Group is operating its business. This report also because we recognize the importance of encouraging the focuses on green-marketing activities, which are rising whole society to strive to reduce negative environmental spontaneously in Japan, Europe, and the Americas; and impact. To improve the quality of this report and the Group’s highlights green-procurement and Zero-Waste-to-Landfill activities, a questionnaire has been included in this report. We activities in China and Taiwan, where the awareness of would appreciate it if you would give your honest opinion. environmental conservation is increasing.

1 Scope of This Report The Americas

This report describes the sustainable management activ- Manufacturing companies: ities of the Ricoh Group in fiscal year 2001 (April 1, Ricoh Electronics, Inc. (U.S.A.) 2001 to March 31, 2002). The term “Ricoh” refers to Nonmanufacturing companies: Ricoh Corporation (U.S.A.) production and nonproduction sites of Ricoh Co., Ltd. and two sales companies The term “Ricoh Group” refers to Ricoh’s opera- Europe tions all over the world. Manufacturing companies: Ricoh UK Products Ltd. (U.K.) Environmental impact and environmental Ricoh Industrie France S.A. (France) accounting data: fiscal 2001 data Nonmanufacturing companies: Descriptions in articles and chronological Ricoh Europe B.V. (the Netherlands) tables: fiscal 2001 data and five sales companies in the region China and Taiwan Some of the subsequent events* are explained in the Manufacturing companies: notes. Ricoh Asia Industry (Shenzhen) Ltd. (China) * Significant subsequent events shall be described in the report. Subsequent Taiwan Ricoh Co., Ltd. (Taiwan) events refer to events that occur during the period from the day after the reporting period ends to the date the report is completed. Such events may Nonmanufacturing companies: influence the state of companies’ sustainable management from the next Ricoh Hong Kong Ltd. (Hong Kong) fiscal year onward. Disclosed subsequent events are useful as supplemen- tal information to determine the state of companies for future sustainable Asia-Pacific Region management. Nonmanufacturing companies: The environmental impact and environmental account- Ricoh Asia Pacific Pte. Ltd. (Singapore) ing data is taken from the Ricoh Group’s major business sites in five (5) regions—Japan, the Americas, Europe, Expansion of Data Covered China and Taiwan, and the Asia-Pacific region—and, This report covers the environmental impact and environmental accounting data from all Ricoh business sites and as such, may differ from the Ricoh Group data present- affiliates that have established their own environmental ed elsewhere in this report, e.g., in the organization pro- management systems. In fiscal 2001, Ricoh sales companies in Japan, the Americas, Europe, China and Taiwan, and the file and global network. Asia-Pacific region partly established their own environmental management systems, so the coverage of data was Scope of Collection of Environmental Impact and expanded. Environmental Accounting Data Past and Future Reports Japan The Ricoh Group has continued publishing annual environmental reports since 1997, which covered for fiscal 1996. Ricoh production sites: The 2003 Report will be issued in the summer of 2003. Atsugi Plant, Hatano Plant, Numazu Plant, Gotemba Plant, Fukui Plant, Ikeda Plant, Yashiro Plant Special Remarks Relating to Activities during the Reporting Period Ricoh nonproduction sites: The Ricoh Group has produced a medium-term manage- Aoyama Office, Omori Office, Omori Office No. 2, Ginza ment plan that covers fiscal 2002 through fiscal 2004 as Office, Ricoh System Center, Shin-Yokohama Office, Ricoh well as a newly established an environmental action plan. Service Parts Center, Research and Development Center, Software Research Center, Toda Technical Center, Applied How to Obtain Ricoh’s Corporate Information: Electronics Laboratory Environmental conservation: http://www.ricoh.co.jp/ecology/e-/ Ricoh Group major manufacturing subsidiaries: Social contribution (Japanese language only): Tohoku Ricoh Co., Ltd.; Hasama Ricoh, Inc.; Ricoh Unitechno http://www.ricoh.co.jp/kouken/ Co., Ltd.; Ricoh Optical Industries Co., Ltd.; Ricoh Keiki Co., IR (for shareholders and investors): Ltd.; Ricoh Microelectronics Co., Ltd.; Ricoh Elemex http://www.ricoh.co.jp/IR/e/ Corporation Ricoh Group major nonmanufacturing subsidiaries*: Ricoh Logistics System Co., Ltd.; Ricoh Techno Systems Co., Ltd.; Part Component System Co., Ltd.; 51 sales companies, and NBS Ricoh Co., Ltd. * For environmental accounting data only

2 The Ricoh Group’s Vision

As a global citizen, the Ricoh Group aims at pursuing sustainable management and continues its environmental conservation practices.

The rich resources of our planet Earth have given birth to many forms of life and have supported the wide-ranging and ambitious activities of mankind. Nevertheless, recent activities have exceeded this life-sustaining ability of the Earth. This poses a threat not only to our coexistence with other forms of life on this planet but also to the future of the human race itself. The environment is the most crucial issue that the whole mankind must tackle. In order to bequeath a rich, fertile earth to future generations, each of us must reduce the environmental impact caused by our activities. For that to happen globally, governments, companies, citizen groups, and even individuals in all countries and regions must be aware of the environmental impact that is affecting the entire planet and actively seek to reduce it. Mutual consultation and cooperation are also critical to further advance this cause. For the Ricoh Group, as a global citizen, safeguarding this precious planet is one of our corporate missions. Looking at all aspects of management from an environment-conscious point of view, we always endeavor to minimize the environmental impact produced by the Group’s business activities by being closer to the limit that the natural environment permits us. Environmental conservation activities should be neither temporary, regulated by law, nor conducted for personal gain. With a firm resolution to incorporate environmental conservation into its corporate mission, the Ricoh Group is focusing on consistency in its activities. To continue corporate activities, it is necessary to profit from environmental conservation activities and not merely engage in them. The Ricoh Group’s fundamental idea of sustainable management is to continuously engage in environmental conservation activities that are at the same time profitable. To survive in the new century as a respected corporation in the global community, a company needs to excel in environment-conscious management and social responsibility and obtain the support of society. Recognizing the fact that companies should contribute to society as members of that society, the Ricoh Group promotes sustainable management from a global point of view, making efforts to revitalize the economy of local communities and nurturing its personnel. The Ricoh Group further promotes activities that restrict the environmental impact of its business activities so that the environment can recover. More- over, the Group earnestly engages in social contribution activities, such as forest ecosystem conservation, to improve the self-recovery capability of the natural environment.

3 The Ricoh Group will disclose information about its activities globally to discuss environmental issues, which are now cross-border issues, with as many people from as many countries as possible. Our 2002 report details results of our global environmental conservation activities in fiscal 2001. We hope that this report will help as many of you readers as possible to discover the extent of the Ricoh Group’s concepts for environmental conservation and environmental measures. We welcome your honest opinion to further improve our activities in terms of both quality and effectiveness.

Masamitsu Sakurai

President and Chief Operating Officer Ricoh Co., Ltd.

4 Profile of Organization/Economic Achievements

Ricoh Co., Ltd., was established on Major Product Lines of Business Perspective February 6, 1936. The Ricoh Group the Ricoh Group The Ricoh Group delivers products and consists of 376 subsidiaries, and Copiers: systems that are ahead of the needs of 28 affiliates*. The Ricoh Group en- Analog copiers, digital copiers, color the times and focuses on customer satis- gages in such global-scale activities copiers, multifunctional printers (cop- faction. One example is the development as the development, production, iers, facsimiles, and multifunctional of the Ricoh Document Highway marketing, after-sales service, and copiers equipped with the printing func- Platform, a user-friendly platform with recycling of office equipment, tion), digital duplicators, related sup- an open architecture that enables cus- including copiers and printers, infor- plies and maintenance services, others tomers to communicate with each other mation equipment, optical devices, using a variety of application software and other electronic equipment, in Information equipment: and equipment in diverse network envi- five regions around the world Facsimiles; laser printers; PCs, servers, ronments. Based on this platform, the (Japan, the Americas, Europe, network equipment, network software, Ricoh Group has developed the Aficio China and Taiwan, and the Asia- application software, optical-disk prod- series digital multifunctional copier, the Pacific region). The Group has more ucts; related supplies; others Aficio series laser printer, and docu- than 74,000 employees. mentation management software to pro- Optical equipment: mote its document highway scheme. Digital cameras, analog cameras, Further efforts include an earnest pro- 1 Ricoh Aoyama Head Office lenses, others posal to satisfy the globally increasing Ricoh Bldg., Minami-Aoyama 1-15-5, need for green procurement by promot- Minato-ku, Tokyo 107-8544, Japan Others: ing energy saving products and recy- Phone: +81-3-3479-3111 http://www.ricoh.com Semiconductors, printed circuit (PC) cling activities. The Group is planning boards, others to start a business that supports environ- * The definition of an affiliate is pursuant to U.S. mental management2 and draws the Generally Accepted Accounting Principles (U.S. GAAP), which slightly differs from that found in attention of customers by offering sys- Japan GAAP. tems that have been established through environmental conservation activities, i.e., a recycling system. Thus, the Ricoh Ricoh Group Brands Group aims at being a company that has The Ricoh Group markets products under higher customer satisfaction and pro- the Ricoh, Savin, Nashuatec, Rex-Rotary, vides effective solutions for not only Gestetner, and Lanier brand names. documentation but also environmental conservation.

Aficio 1022/1027 Aficio AP 3800C 1. See page 41. Brand logos (imagio* Neo 220/270) (IPSiO* Color 8150) 2. See page 42.

* ‘imagio’ and ‘IPSiO’ are the brand names used in Japan.

5 Fiscal 2001 Performance and The Ricoh Group’s Sales Classified by Business*

External Evaluation Results Others Information Equipment Copiers

In fiscal 2001, the Ricoh Group had the (FY) 1,403,348 largest share of the digital office equip- 1997 189,880 322,425 891,043 1998 191,548 327,543 906,908 1,425,999 ment market in the United States1 for the 1999 194,087 382,779 870,291 1,447,157 second year in a row and the digital and 2000 199,888 423,041 915,333 1,538,262 analog office-use black-and-white copier 2001 186,951 446,894 1,038,495 1,672,340 2 market in Europe for the fifth year in a 0 300,000 600,000 900,000 1,200,000 1,500,000 (millions of yen) row. In Japan, the Group was ranked among the top in an independent customer satisfaction survey for seven years in a The Ricoh Group’s Sales Classified by Region* row3 in the copier division. In the survey, Others Europe The Americas Japan (FY) which was conducted by the U.K. busi- 1997 89,625 252,042 230,342 831,339 1,403,348 ness newspaper the Financial Times, 1998 82,028 283,373 239,623 820,975 1,425,999 Ricoh was voted the seventh best global 1999 84,291 258,515 231,181 873,170 1,447,157 company in terms of sustainable manage- 2000 107,682 247,449 252,698 930,433 1,538,262 2001 116,626 311,312 341,747 902,655 1,672,340 ment. Thus, the Group received an out- 0 300,000 600,000 900,000 1,200,000 1,500,000 (millions of yen) standing evaluation4 from around the world.

1. According to a survey conducted by Dataquest, which The Number of the Ricoh Group’s Employees* collected data for a number of products marketed under (FY) Ricoh, Savin, Gestetner, and Lanier brand names 1997 63,600 (Excluding the segment for up to 10 cpm copier) [Gartner Dataquest, February, 2002. GJ02276] 1998 65,400 2. According to a survey conducted by Infosource S.A., 1999 67,300 which collected data for a number of products marketed 2000 74,300 by Ricoh under the Savin, Gestetner, Nashuatec, Rex-Rotary, and Lanier brand names as well as OEM 2001 74,200 products; looking at performance by country, the Ricoh 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 (employees) Group had the largest share in 17 countries, including the U.K., France, and Italy. 3. According to a survey conducted by J.D. Power Asia Pacific Inc. The Ricoh Group’s Net Income* 4. See page 60. (FY) 1997 30,131 Economic Performance and 1998 30,655 Future Perspective 1999 41,928 2000 53,228 In fiscal 2001, the Ricoh Group recorded 2001 61,614 sales of ¥1,672.3 billion, an 8.7% 0 10,000 20,000 30,000 40,00050,000 60,000 (millions of yen) increase from that in the previous year. This was the eighth fiscal year in a row * Figures are from the Ricoh Group’s securities report and, accordingly, may differ from those of the environmental impact data due to a difference in the scope of data collection. that the Group increased its sales (the seventh largest increase in a row). Net income rose to ¥61.6 billion, up 15.8% Change in Ricoh’s Share Price and Transactions Share price (yen) from the previous year, the 10th fiscal 3,000 year in a row that it showed an increase 2,500 (eighth in a row with the largest net 2,000 income growth). For the next fiscal year, despite such uncertainties as market and 1,500 Trading Volume (10,000 shares) currency exchange fluctuations, the Group 8,000 6,000 is aiming at another increase in revenue, 4,000 2,000 for the ninth fiscal year in a row, and 00㧛4 5 6 7 8 9 10 11 12 01㧛12 34685 79 10111202㧛12 3 income, for the 11th in a row.

* See the IR section of Ricoh’s Web site (http://www.ricoh.co.jp/IR/e) for details.

6 The Ricoh Group’s Global Network

Marketing and general operations Production and R&D

Group Companies in Consolidated Financial Statements: 404 Consolidated Subsidiaries: 331 Non-Consolidated Subsidiaries: 45 Affiliates: 28 As of March 31, 2002

Ricoh Electronics, Inc. Tustin Plant Santa Ana Plant Ricoh Canada Inc. Irvine Plant Savin Corporation Ricoh Corporation The Americas Regional Sales Headquarter Ricoh Innovations, Inc. Ricoh Industrial Ricoh Finance Corporation de Mexico, Lanier Worldwide, Inc. S.A. de C.V. Ricoh Electronics, Inc. Ricoh Corporation Georgia Plant Office Solutions and Systems Development Group Ricoh Latin America, Inc.

Lanier Dominicana, S.A.

NRG Distribution Corporation Lanier Puerto Rico, Inc. Gestetner S.A. Ricoh Mexicana, S.A. de C.V. Gestetner Colombia S.A. Lanier de Guatemala, S.A. Lanier Colombia, S.A. Lanier de EI Salvador, S.A. de C.V. Lanier de Costa Rica, S.A.

Lanier de Panama, S.A.

Gestetner do Brazil S.A.

Gestetner S.A. Ricoh South America Distribution Center S.A. Lanier de Chile, S.A. Ricoh Latin America Distribution Center S.A. * The Ricoh Group is developing localized business activities in five regions worldwide, namely, the Americas, Europe, China and Taiwan, the Asia-Pacific region, and Japan. In this report, the Gestetner Limitada Americas include the United States, Canada, and Latin America; Europe includes Europe, the Middle East, and Africa; China and Taiwan include China, Hong Kong, and Taiwan; the Asia- Ricoh Argentina S.A. Pacific region includes Asia (except Japan, China, Hong Kong and Taiwan) and Oceania; and Japan only covers Japan.

7 NRG Gestetner Ireland Limited GR Advanced Materials Ltd. The Ricoh Group’s Major Japanese Ricoh Wellingborough Products Ltd. Operations NRG International Limited Ricoh’s Ikeda Plant

Ricoh Microelectronics Co., Ltd. Ricoh Optical Ricoh UK Products Ltd. Industries Co., Ltd. Ricoh Keiki Co., Ltd. Ricoh UK Ltd. Hasama Ricoh, Inc. NRG Group PLC Midland Copying Tohoku Ricoh Co., Ltd. Consultants Limited Ricoh Unitechno Co., Ltd. NRG Group UK Ltd. Ricoh’s Atsugi Plant Lanier United Kingdom Limited Ricoh’s Yashiro Plant Ricoh’s Hatano Plant Ricoh European Digital Solution Center Ricoh’s Fukui Plant Ricoh’s Gotemba Plant Ricoh Elemex Corporation Ricoh’s Numazu Plant

NRG Denmark A/S

Ricoh Norge A.S. Lanier Deutschland GmbH & Co. KG NRG Deutschland GmbH Ricoh Deutschland GmbH NRG Svenska AB

Mitsui-Ricoh CIS Ltd. Ricoh Finland Oy Ricoh Polska Sp.zo.o. NRG Belgium S.A. Lanier Belgium N.V. /S.A. Ricoh Europe B.V. Ricoh Industrie France S.A. The European Regional Sales Headquarter Sindo Ricoh Co., Ltd. Ricoh France S.A. Ricoh Nederland B.V. Ricoh Electronic Ricoh Finance Nederland B.V. NRG France S.A. Technology Ltd. (Beijing) Rex-Rotary S.A. Kulk & Kramer Kantoorsystemen B.V. NRG Benelux B.V. Ricoh Co., Ltd. Lanier C.V.

Ricoh Electronic Technology Ltd. (China) Shanghai Ricoh Facsimile Co., Ltd. Ricoh (Thailand) Ricoh International (Shanghai) Co., Ltd. Ltd. Gestetner Ricoh Hong Kong Ltd. (Israel) Limited Taiwan Ricoh Co., Ltd. The China and Taiwan Ricoh Hungary Kft. Regional Sales Headquarter Ricoh Asia Industry Ltd. Ricoh Austria GmbH Ricoh Ricoh Component (H.K.) Ltd. Lanier Bürosysteme GmbH & Co. KG (Philippines), Inc. Gestetner China Ltd. Ricoh Elemex (H.K.) Ltd. Ricoh International Logistics (H.K.) Ltd. Ricoh Italia S.p.A. NRG Italia S.p.A. Ricoh Asia Industry Lanier Italia S.p.A. Ricoh Asia (Shenzhen) Ltd. Pacific Pte. Ltd. Ricoh Dianzhuang (Shenzhen) Lanier (Schweiz) AG The Asia-Pacific Regional Sales Headquarter Electronics Co., Ltd. Ricoh Singapore Pte. Ltd.

Ricoh (Malaysia) NRG Gestetner South Africa (Pty) Ltd. Sdn. Bhd. Ricoh Australia Pty, Ltd. Ricoh India Limited Hanimex Pty, Limited Rabbit Photo Holdings Limited Ricoh España S.A. Gestetner (India) Limited NRG Group Spain S.A. Lanier (Australia) Pty Ltd Lanier España S.A. Ricoh New Zealand Limited Hanimex (NZ) Limited Camera House Limited Viko New Zealand Limited

8 Corporate Philosophy/Management Philosophy

The driving force behind Ricoh’s business development facsimiles were expensive and oriented toward limited is its corporate philosophy, called “The Spirit of Three markets and/or usage. However, thanks to Ricoh’s Loves,” and a management philosophy based on that corporate mission, which includes considering the corporate philosophy. Since its establishment in 1936, customer’s requirement in technological innovation, Ricoh has endeavored to establish new markets by copiers and facsimiles are now popular all over the constantly creating new value in its products and world, effectively expanding this market’s potential. services that meet customer needs. Ricoh’s achieve- Such a corporate attitude still prevails even in this ments in the areas of copiers and facsimiles are good digital information and network era, in which we are examples of this. In the early stages, copiers and working hard for our sustainable management.

Corporate Philosophy Management Philosophy

– The Spirit of Three Loves – Our Purpose Love your neighbor To constantly create new value Love your country for the world at the interface of people Love your work and information

l Corporate Philosophy Our Goal Kiyoshi Ichimura, Ricoh’s founder, explained the Company’s corporate philosophy as follows: To be a good global corporate citizen with My motto in life is “love your neighbor, love your reliability and appeal country, and love your work.” I believe that a person’s worth depends on the depth and breadth of the love that he/she feels. We have an innate love of ourselves, as all animals do, in the name of Our Principles selfpreservation. Everyone at least loves himself/herself. As time passes, however, this To think as an entrepreneur feeling of love grows and expands to include To put ourselves in the other person’s place parents, siblings, spouses, and children and, later, goes on to encompass neighbors, one’s country To find personal value in our work and ethnic group, and, finally, all the people of the world. At this point, such people return the same amount of love or more to all people, plants, and animals. Therefore, I am convinced that our true worth depends on how much love we give and how far that love extends. “The Spirit of Three Loves” is the foundation of Ricoh’s approach to environmental conservation. All global citizens should carry out their mission and l Management Philosophy responsibilities by dealing with environmental Ricoh’s management philosophy was formally introduced conservation issues. However, these issues cannot in 1986 to establish and nurture the corporate culture and be resolved by simply thinking about environmental system so that survival in a time filled with increasing laws and regulations, consumer interests, and the change, information-oriented societies, diverse values achievement of competitors. Ricoh, in developing its and more intense competition can be ensured. business on a global scale, recognizes the impor- Our management philosophy is based on our tance of becoming a leader in environmental corpo-rate philosophy and explicitly states our purpose, conservation. goal, and principles.

9 Ricoh General Principles on the Environment

Basic Policy

Based on our management principles, we recognize environmental conservation as one of the most important missions given to mankind, and we regard environmental conservation as an integral part of all our business activities. We therefore assume the responsibility of environmental conservation and approach this on a Companywide basis.

Action Guideline

1. Not only do we comply with all domestic and overseas environmental regulations, but we also set our own targets to reduce the negative environmental impact of our business in consideration of social expectations. We also endeavor to attain our targets.

2. We strive to promote technological innovations that help reduce negative environment impact while maintaining and improving our environmental conservation systems.

3. In the development, design, and operation of factory facilities, we always consider their impact on the environment, and we strive to prevent pollution, to utilize energy and resources effectively, and to reduce and dispose of waste in a responsible manner.

4. At every stage, from planning, development, design, procurement and production to sales, logistics, use, recycling, and disposal, we offer products and services that have minimum environmental impact and give maximum consideration to safety.

5. Through environmental education, we strive to raise the awareness of all our employees in order to develop a social viewpoint that enables them to conduct environmental activities on their own.

6. In every country and region where we conduct business, we maintain close ties with the local community and contribute to society by publicizing our activities and assisting in environmental conservation activities.

Established February 1992 Revised April 1998

l Ricoh General Principles on the Environment Ricoh introduced its Ricoh General Principles on the Environment, which are based on its management philosophy, in 1992 and revised them in 1998. These principles, which are mentioned in Ricoh’s sustainability reports and on its Web sites, are regarded as a commitment to the Ricoh Group and to society as a whole.

10 Logical Necessity of Environmental Conservation (Three P’s Balance™)

Companies are requested by society 1 Environmental impact was smaller before the Industrial Revolution. to reduce their environmental The environmental impact of mankind’s economic activities impact worldwide and to promote was smaller before the Industrial Revolution and was small welfare of the global society. enough for the natural environment to recover unaided.

2 After the Industrial Revolution, damage to the The environmental impact of the economic activities natural environment increased. in the past was small enough for the natural environment to recover unaided. However, environmental The Industrial Revolution, which began in England, quickly impact has grown rapidly and continuously since the spread throughout the rest of the world and drastically Industrial Revolution, and there is an assumption that increased the damage caused by society to the natural we will need an area the size of three earths by environment. As shown in Figure 2 , people began acting 2050. Companies hold the key to restoring the global as if they were not a part of the natural environment. To environment. The reason why companies should those who forgot that they were a part of the natural envi- address environmental conservation more seriously ronment, the natural environment was like a faraway farm becomes clear if we consider how the three Ps or unlimited junkyard. People began using significant (planet, people, and profit) of environmental, social, amounts of resources, engaging in mass production, and and economic activities have changed as time passed. dumping huge amounts of waste. Back then, industrializa- tion was the symbol of a rich society. Pollution ruined the Three P’s Balance™ Representing the Necessity natural environment of many places around the world, but of Environmental Conservation the problem was handled locally not globally.

3 In recent years, damage to the natural environment has been recognized as a cause of Natural community stress. 1 environment Figure 3 , on the next page, shows the recent situation in Society the natural environment, society, and economy. The dam- Resources Economy ages exceeding the self-recovery capacity of the natural

Production activities environment start to affect society then cause stress (A) on the economy. Deadlock in society in turn causes stress (B) Money Products on the economy. People soon begin noticing unusual occur- Consumption activities rences of natural disasters, such as floods caused by extreme

Waste weather and outbreaks of plague, that endanger the survival of the earth. As global warming and the ozone gap become widely known, people will start to realize that the environmental impact caused by society influences the earth as a whole. Business entities engaged in economic activities 2 cannot gain public support if they do not deal with environ- Society mental issues seriously. Such trends may even influence the

Natural Resources survival of those companies. An increasing demand for environment Economy socially responsible investments and eco-funds shows the Production activities changes in society’s awareness.

Money Products

Damage Consumption activities Industrial waste

General waste

11 4 At present, the establishment of a resource- recirculating society is underway and being

Natural done in phases. 3 environment People are paying more attention to activities that reduce Stress (B) Stress (A) Damage the amount of damage to the natural environment, including

Damage Damage the sorting of waste and recycling, and saving energy. Reduc- increased Resources Economy ing the amount of resources consumed and the amount of Damage exceeding limits Production activities waste discharged is possible if we endeavor to recycle Society resources instead of disposing of them. There is a growing Damage increased Money Products need for manufacturers to promote longer lifecycle of their Consumption activities products, smaller products, energy saving and the recycling Industrial waste of resources to create maximum benefit to society and

General companies with minimum resources. Not only are global waste companies asked to take into account the social responsibilities in the countries and regions where they engage in business activities, they are also asked to support and promote the awareness of environmental conservation activities of companies and regions that are expected to make significant economic development in the future and to achieve their goals with minimum environmental impact. 4 Social contribution to In addition, it is important to improve the self-recovery environmental conservation Damage Natural decreased capability of the natural environment with such efforts as environment Resources improving forest ecosystem conservation and the self- Society Economy recovery capability of the natural environment. To pass on Resource Production activities recovery a better global environment to future generations and ach- Damage decreased Money Products ieve sustainable development, companies and society as a whole are requested to be aware of the fact that they are Consumption activities Industrial global citizens, to change their business activities and life- waste styles, and to establish the ideal resource-recirculating soci- General waste ety.

5 We are aiming for an ideal resource- recirculating society to live harmoniously with the natural environment. Ever since the Industrial Revolution, we have pretended to be independent of our natural surroundings. Nevertheless, we will once again take the natural environment into con- 5 Natural environment sideration and establish a society that coexists with it in the Social contribution to near future. This society will strictly limit its environmental environmental Society conservation Resources impact so that the natural environment can recover by itself. Economy We can learn from our ancestors, but we cannot go back to Resource Production activities recovery their time. To overcome the most serious threat to our exis-

Money Products tence in history, we need to face these new challenges from a global point of view, be totally aware of environmental Consumption activities conservation, and be innovative in our efforts to achieve Minimum disposal © 2002 Ricoh our goals.

12 Vision and Strategy (The Comet Circle™)

Using the Comet Circle Concept to Help the Ricoh Group Build a Society that Recirculates Resources.

The sustainable society of the future needs to produce will be recycled after they are collected as trash. We maximum output with minimum resources and energy. recommend applying any situation to the Comet Circle. It needs to restrict the environmental impact of all Our mother earth is the most important and irre- economic and social activities so that the natural envi- placeable component of the Comet Circle. We, within ronment can recover on its own. The Comet Circle rep- the Comet Circle, cannot prosper alone if we cause con- resents a resource-recirculating society and points out tinuous damage to the earth. activities and partnerships that the Ricoh Group must deal with. The Ricoh Group not only promotes its sustainable management, but also enthusiastically encourages suppliers, customers, and recycling companies to set up their own sustainable management. Moreover, the Group strives to make the resource recirculation of the Comet Circle smaller at all stages (entities represented by spheres) by improving economic efficiency and reducing environmental impact. This would reduce the total amount of environmental impact produced by economic and social activities. The Comet Circle is a graphic representation of environmental conservation. In today’s world, both the product and the manufacturing process of that product determine corporate value and what people purchase. Our philosophy goes beyond environmental conservation concepts and ensures the credibility of our products, none of which are produced under poor conditions or with child labor or by any other reprehensible means. Such profiteering is both unfair and incompatible with the philosophy of Ricoh Group. There are Comet Circle members other than the Ricoh Group, suppliers, customers, and recycling companies. When individuals who direct their efforts toward building a society that recirculates resources more efficiently shop for things that have less environmental impact, separate their garbage for recycling, or take environment conservation and social responsibilities into consideration when making investments, they become a part of the Comet Circle, too. Everybody should be aware of the resources that went into the clothes that they buy and how those things were delivered. They should also think about how those clothes

13 Concept for Realizing a Society that Recirculates Resources: The Comet Circle™

Parts Materials Materials manufac- manufac- Product supplier manufacturer turer turer

Sales Reuse of parts company

Reuse of products User of recycling materials Closed loop Generation of raw materials Long use materials • Chemical recycling Parts Open loop Product recycling Materials materials Oil recovery • Metals recycling Maintenance company, recovery recovery recovery recycling User company smelting center center company company Metals

Thermal Disassembly oil energy Energy recovery Sorting and disassembly collection (Energy, CO2) Collection company center Recycling center Shredder Final company disposal company Shredder dust © 1994 Ricoh Crushing of products Landfill

(1) Determine and Reduce Environmental (4) More Economically Rational Recycling Impact at All Stages A society that recirculates resources must also establish a recy- A society that recirculates resources must minimize the total cling system in which products and money flow in opposite direc- environmental impact it causes by reducing it at all stages, tions in both post-product-use stages and original production and including the transportation stage (the entity represented by a marketing stages. The Ricoh Group, making use of an upgraded sphere in the Comet Circle diagram). For this reason, the Ricoh design, is promoting a more economically rational recycling sys- Group, suppliers, customers, and recycling companies must tem in partnership with recycling companies. In Japan, the Green first determine the degree of environmental impact at all stages, Procurement Law came into effect in April 2001, and Canada including the transportation stage, by using an environmental established an Environmental Choice Program (ECP) Mark sys- management information system1 and then reducing it by using tem*. Therefore, it is important to establish a social system that the latest environmental conservation technologies2 and pro- helps people to be aware of environment-friendly business activi- moting recycling and collection systems all over the world3. ties and buy products with less environmental impact.

1. See page 23. *See page 41. 2. See page 31. 3. See page 50. (5) Partnerships at Every Stage (2) Priority on Inner Loop Recycling The Ricoh Group, as a manufacturer, is limited in what it can do to reduce the environmental impact caused at each stage of pro- Resources have the highest economic value when they are duction. The Group can effectively reduce environmental impact manufactured into products and used by customers. The Ricoh and recycling cost only by decreasing its usage of chemical sub- Group puts priority on reducing, reusing, and recycling prod- stances with the cooperation of materials and parts manufacturers, ucts on the inner loops of the Comet Circle, aiming at minimiz- urging customers to use products that have less environmental ing the resources, cost, and energy needed to return used impact or use products in ways that produce less environmental products to their highest economic value. impact, and improving efficiency in the transportation of products to be marketed as well as used products. Thus, environmental (3) Promoting a Multitiered Recycling System impact can be reduced effectively in an economically rational way Repeated recycling to the furthest extent possible (i.e., multi- by forming a partnership at every stage. tiered recycling) reduces the consumption of new resources and The Ricoh Group helps reduce the environmental impact the generation of waste. The Ricoh Group is developing activi- caused by society as a whole by sharing the information and ties to achieve this goal, such as recycling its products as well know-how it obtains through its activities in the community. We as waste from other companies or industries, e.g., making toner consider that partnerships are to share the information and we regard cartridges from used polyethylene terephthalate (PET) bottles. any stakeholders, who receive the information as our partners.

14 The Ricoh Group’s Idea of Sustainable Management

To continue its efforts in environmental conservation, the Ricoh Group shows the results of its environmental conservation activities while deriving a benefit from such activities. This is the Group’s idea of sustainable management.

Importance of Sustainable Management environment can recover by itself, and 3) reduction in In its past environmental conservation approaches, the the amount of greenhouse gases. The Ricoh Group first Ricoh Group first went through a Passive Stage, in identifies the environmental impact in the Group’s busi- which it dealt with regulations and responded to cus- ness activities as a whole using Eco Balance*. The tomer needs, then a Proactive Stage, in which it reduced Group then carries out the most effective method of its environmental impact by voluntarily setting higher improving the quality of its products and business sites goals in environmental conservation as a global citizen. in major environmental conservation areas, such as Now, the Group is preparing to enter the Responsible resource conservation and recycling, energy conserva- Stage, in which it strives to place environmental and tion, and pollution prevention. economic aspects side by side in its work and pay equal *See page 25. attention to environmental conservation and deriving benefit. The Ricoh Group regards environmental con- Mechanism of the Ricoh Group’s servation activities as a lifelong approach. To this end, Environmental Management the Group focuses on continuing its activities while If a company wishes to continuously reduce its envi- striving to limit the environmental impact of its eco- ronmental impact, it needs to benefit from its environ- nomic activities as a whole so that the natural environmental conservation activities as a whole. The Ricoh ment can recover by itself. To survive in the business Group, based on the idea of understanding the environ- world and continuously engage in environmental con- mental impact of its business activities as a whole, servation activities, it is essential for companies to make established its own unique mechanism, shown on the a profit through their business activities. The Ricoh opposite page, to identify the environmental impact at Group strives to be environment-conscious and improve each process. By doing so, the Group can both reduce all of its business activities*, while establishing an environmental impact and make a profit. With this action plan for fiscal 2002 through fiscal 2004. The mechanism, the Ricoh Group strives to realize sustain- Ricoh Group is mainly aiming at establishing the able management and improve such relevant tools as world’s finest environmental management system by the environmental management information system1 showing the results of its environmental conservation and environmental accounting2, which work as criteria activities while deriving benefit and by improving the when evaluating the progress and achievements in sus- quality of Ricoh products and business processes tainable management. With the aim of improving its through innovative environmental conservation activities as a whole, the Ricoh Group is developing technologies. environmental conservation technologies3, including

*See page 20. energy-saving technologies, recyclable designs, and paperless approaches. In addition, the Group is making Understanding the Group’s Environmental an earnest attempt to improve employee awareness4 of Impact environmental conservation by offering environmental In limiting the environmental impact of all economic education programs, nurturing environmental volunteer activities so that the natural environment can recover on leaders, and promoting zero-waste-to-landfill activities. its own, we need to recognize three significant condi- 1. See page 23. 2. See pages 17, 36, 40, 48, 50, and 73. tions: 1) the use of resources within the scope that the 3. See pages 31 and 47. natural environment can recover by itself, 2) reduction 4. See pages 39, 63, and 67. in waste disposal within the scope that the natural

15 Environmental Management Identifying the Ricoh Group’s Resource Conservation and Recycling (Business Sites) System (EMS) Environmental Impact p. 20 p. 39 and Areas Covered At our plants, we are striving to achieve “complete production,” i.e., getting maximum results using minimum resources with Zero-Waste-to-Landfill. Environmental Management Information System Resource Conservation and p. 23 Recycling (Products) p. 50 Resource Energy To conserve resources, we are developing products based Environmental Communication Conservation Conservation on recyclable designs, constructing a recycling network, p. 59 and Recycling and manufacturing products using recycled parts and materials. Energy Conservation Social Contribution Activities Pollution (Business Sites) p. 61 Prevention p. 35 We are striving to slow down the rate of global warming through efficient power consumption and the introduction Environmental Education and of new energy systems. Awareness Promotion p. 67 Energy Conservation (Products) p. 47 To prevent global warming, we are developing and offering various energy-saving products. Personnel-Related Measures p. 69 Pollution Prevention (Business Sites) p. 37 Health and Safety In the area of manufacturing, the Ricoh Group is striving p. 71 to reduce emissions, waste, and the use of environmentally sensitive substances. Pollution Prevention Environmental Accounting (Business Sites) p. 73 pp. 32 & 49 We are promoting the strict control of chemicals used in our products to reduce and eventually eliminate the use of environmentally sensitive substances. The Ricoh Group’s Environmental Management Methods

Calculate the environmental impact of each process of a business activity. Identify the results of a business activity Identify the environmental impact (See page 23.) using corporate environmental accounting, of a business as a whole using disclose the relevant information, the Eco Balance system. and use the results as an index for (See page 25.) setting new goals. (See page 75.)

Develop an environmental action Simulate the plan using segment plan based on the identified environmental accounting to environmental impact. carry out the action plan in (See page 18.) a profitable way. (See page 17.)

Summary of the Fiscal 2001 Performance mental impact of society as a whole2. After achieving In fiscal 2000, Ricoh marketed the Aficio 1035/1045 Zero-Waste-to-Landfill3, i.e., reducing environmental (imagio Neo 350/450) series, the digital multifunctional impact and improving management quality, at plants in copier line based on Ricoh’s proprietary energy-saving Japan, Europe, and the Americas, the Ricoh Group did technologies and recyclable designs. In fiscal 2001, the same at plants in China and Taiwan. In addition, the Ricoh implemented those technologies in the Aficio Ricoh Group extensively engages in a forest ecosystem 1022/10271 (imagio Neo 220/270) series, medium-to- conservation project4 to improve the self-recovery capa- low end markets. Driven by the growing awareness of bility of the natural environment and activities led by environmental conservation in the Japanese, U.S., and environmental volunteer leaders5. European markets, many customers bought those 1. See pages 32 and 47. 3. See page 40. 5. See page 63. machines, which contributed to reducing the environ- 2. See page 48. 4. See page 61.

16 Environmental Action Plan and Environmental Management Goals Starting in Fiscal 2002

Based on a new after-sales service, use, and recycling and using new types of energy. The costs environmental action plan, and plans to achieve this goal by using to launch new businesses will be covered the method with the highest economic by the savings gained from the improved the Ricoh Group strives to efficiency. As for global warming, an efficiency of existing businesses. Also, effectively reduce its issue that attracts the world’s atten- greenhouse gases other than CO2 will be environmental impact and tion, the Group set three major goals reduced 10% by fiscal 2010, compared benefit from environmental as follows. with fiscal 1995. With this in mind, the conservation activities. 1. Dealing with regulations Group will ensure that emissions increase 2. Voluntarily taking measures to reach higher goals in conserving the global environment by no more than 1% by fiscal 2004, com- 3. Realizing environmental conservation and creating pared with fiscal 2000. The Ricoh Group has drawn up a economic benefits at the same time medium-term environmental action Reduce CO2 emissions by energy-saving 3 plan for activities starting from fiscal (1) Prevent Global Warming products 2002 through fiscal 2004. This action To reach the goal of the Kyoto Protocol, The Ricoh Group is making sincere efforts plan was prepared with priority given the Ricoh Group is making sincere efforts to reduce the amount of power products to dealing with processes that suffer to reduce total CO2 emissions at its busi- consume while in operation or on standby. from more serious environmental ness sites and CO2 emitted by customers. If everyone all over the world uses the impact first by identifying the environ- Reduce greenhouse gases generated at Ricoh Group’s products, CO2 emissions mental impact of each process of the Ricoh business sites1 would drop approximately 45 thousand Group’s business activities in fiscal Total CO2 emissions generated at produc- tons (reduced 56% of fiscal 2000 figures) 2000 and fiscal 2001. The Group is tion sites and nonproduction sites will be in fiscal 2004. setting goals to achieve the Passive reduced 13% and those in terms of the 1. See page 35. 2. See table on next page for goals of Ricoh Group companies 1 2 Stage , Proactive Stage , and Respon- CO2 emissions per sales unit 62% by fiscal other than Ricoh. sible Stage3, corresponding to the 2010 (Ricoh only2, compared with fiscal 3. See page 47. items of the action plan. Based on this 1990). Accordingly, the Ricoh Group is (2) Making the Recycling Business plan, the Ricoh Group aims at reduc- planning to reduce 20% CO2 emissions per Profitable sales unit in fiscal 2004 from that in fiscal ing the environmental impact of all The Ricoh Group sets goals for marketing 2000. Specific measures include improv- processes, such as procurement, recycled copiers in its Green Solution1, ing processes; introducing highly efficient production, transportation, marketing, which is the Group’s marketing strategy facilities, including cogeneration systems; scheme, and improves the efficiency of

Estimated Costs and Effects of Reduction in CO2 Emissions at Business Sites collection, recycling, and recovery. Thus, (Segment Environmental Accounting) (Unit: millions of yen) the Ricoh Group aims at making its Costs Effects EI value 2 Item Amount Economic benefits Effect on environmental conservation (t/100 recycling business profitable by the end million yen) Item Amount Item Amount reduced (t) of fiscal 2004. Energy-saving Reduction in investments 1,608.8 Reduction in 1. See page 42. heat and 1,640.8 39,019.4 2,425.3 (105 cases) CO2 emissions light expenses 2. See page 50. * Costs are calculated from the investment plan. Effects are calculated using the depreciation period for equipment. (3) Reducing the Use of Chemical Estimated Costs and Effects of Reduction in CO2 Emissions from Energy-Saving Products (Segment Environmental Accounting) (Unit: millions of yen) Substances* Costs Effects EI value The Ricoh Group starts marketing new Item Main costs Amount Economic benefits Effect on (t/100 environmental million yen) products abolishing the use of lead, hexa- Corporate effect Customer effect Development of 600 conservation energy-saving units valent chromium, cadmium, and polyvinyl Research and Effect on Reduced Reduced electricity development 2 15,227 Molds, jigs, 308 gross margin CO emissions expenses 138,265 t chloride, in fiscal 2004 and thereafter. and parts 18,160 8,908 * Costs are estimated from past development costs. Effects are estimated from the number of products scheduled to be *See page 32. marketed between fiscal 2002 and fiscal 2004. Figures for reduction in heat and light expenses and CO2 emissions are estimated from the amount reduced over three years, from fiscal 2002 to fiscal 2004, on the assumption that the machine is used eight hours a day, twenty days a month. Estimated Costs and Effects of Reduction in Chemical Substances at Business Sites (Segment Environmental Accounting) (Unit: millions of yen) Effects EI value Costs Economic benefits Effect on environmental conservation (t/100 million yen) Item Amount Item Amount Item Amout (t) Development expenses 294 Avoidance of risk in soil and groundwater 900 Investments 40 contamination Dichloromethane 120.3 used → 0 11.8 Personnel expenses 684 Reduced production 5.19 Other costs 1.5 loss 1,019.5 905.19

17 The Ricoh Group Environmental Action Plan (fiscal 2002—fiscal 2004) Environmental Goals Management Goals* (Scheduled for fiscal 2004) 1) Promote the use of energy-saving technologies in products (See page 47.) Responsible • Achieving energy-saving standards stage 1. Improving 2) Promote pollution prevention measures with regard to products (See pages 32 and 49.) environment- • Completely eliminate the use of environmentally sensitive substances (i.e., lead, hexavalent chromium, polyvinyl chloride, and cadmium) in products friendly functions • Reduce noise levels at least 2 dB (weighted average value for the number of units sold out of the Responsible stage and promoting number of units marketed in fiscal 2000) • Observe Ricoh standards that cover environmentally sensitive substances emitted by products, including technological styrene, formaldehyde, ozone, and dust development 3) Develope technologies that contribute to reducing the environmental impact in paper production (See page 32.) Responsible • Develop practical application technologies for alternative paper or rewritable paper stage Responsible 2. Reaching the 1) Improve the amount of reusable parts used by at least 20 times (compared to fiscal 2000 in Japan). (See page 50.) stage resource 2) Improve collection of the number of used products and toner cartridges at least 10% (the Ricoh Group as Responsible a whole, compared to fiscal 2000 figures) (See page 50.) conservation rate stage 3) Increase the number of resource-recirculating-type products marketed by a factor of 20 or more (Japan, Responsible by improving the compared to fiscal 2000 figures) (See page 50.) stage productivity of 4) Improve the resource recovery rate of used products and toner cartridges (See page 50.) products and • The resource recovery rate of both products and toner cartridges rises to 98%. (Japan) • The resource recovery rate of both products and toner cartridges increases to 85%. (Europe) materials as well • The resource recovery rate of products rises to 95% and that of toner cartridges rises to 100%. as profitability in (The Americas) Responsible stage the recycling • The resource recovery rate of products increases to 85% and that of toner cartridges rises to 90%. (China and Taiwan) business • The resource recovery rate of products increases to more than 85% and that of toner cartridges rises to 85%. (The Asia-Pacific region)

1) Reduce the amount of energy used (See page 35.) • Reduce CO2 emissions at plants and offices 62% by fiscal 2010 in terms of CO2 emissions per sales unit and 13% in terms of total amount emitted (Ricoh in Japan, compared to fiscal 1990 figures) • Reduce CO2 emissions 20% per sales unit (all Ricoh business sites in Japan, compared to fiscal 2000 figures) Responsible • Reduce CO2 emissions 2% (the Ricoh Group in Japan, compared to fiscal 2000 figures) stage • Reduce the amount of energy used 20% per sales unit (Ricoh Group manufacturing subsidiaries outside Japan, compared to fiscal 2000 figures)

2) Promote pollution prevention (See page 37.) • Reduce environmentally sensitive substances (Ricoh Group’s target substances for reduction) 8% of those used and 50% of those emitted. (Ricoh and Ricoh Group manufacturing subsidiaries in Japan and Ricoh Group manufacturing subsidiaries other than those in Japan, compared to fiscal 2000 figures) 3. Environmental • Completely eliminate the use of dichloromethane (Ricoh and Ricoh Group manufacturing subsidiaries in Japan and Ricoh Group manufacturing subsidiaries other than those in Japan) conservation • Restrict the increase of greenhouse gas (other than CO2) emissions to a maximum of 1% (Ricoh and Proactive activities at plants Ricoh Group manufacturing subsidiaries in Japan and Ricoh Group manufacturing subsidiaries outside stage Japan, compared to fiscal 2000 figures) and offices • Reduce the emissions of ozone-depleting substances 60% (Ricoh and Ricoh Group manufacturing subsidiaries in Japan and Ricoh Group manufacturing subsidiaries outside Japan, compared to fiscal 2000 figures)

3) Promote resource conservation and recycling (See page 39.) • Reduce generated waste at least 13% (Ricoh and Ricoh Group manufacturing subsidiaries in Japan and Ricoh Group manufacturing subsidiaries outside Japan, compared to fiscal 2000 figures) • Improve the waste recycling rate to 90% (Ricoh Group nonmanufacturing subsidiaries in Japan) Responsible • Reduce water consumption at least 10% (Ricoh and Ricoh Group manufacturing subsidiaries in Japan, stage and Ricoh Group manufacturing subsidiaries other than those in Japan, compared to fiscal 2000 figures) • Reduce paper purchase at least 10% (Ricoh manufacturing subsidiaries and Ricoh Group manufacturing and nonmanufacturing subsidiaries in Japan and Ricoh Group manufacturing subsidiaries outside Japan, compared to fiscal 2000 figures)

1) Promote green marketing (See page 41.) Proactive • Improve the recycled pulp use rate for paper products to 60% (Japan) stage 2) Promote green procurement (See page 33.) 4. Promoting green • Identify environmental impact at suppliers to set goals for reducing impact (Ricoh Group purchasing divisions) Responsible partnerships • Completely eliminate designated environmentally sensitive substances used in the supplier’s stage manufacturing process (Ricoh Group purchasing divisions) 3) Promote green purchasing (See page 34.) Proactive • Improve the green purchasing rate (for office supplies, etc.) to 100% (the Ricoh Group in Japan) stage Responsible 5. Improving the 1) Establish a new environmental accounting system (See page 73.) stage environmental Responsible 2) Expand areas and locations to collect environmental impact information (See page 23.) management system stage 6. Promoting Proactive environment- 1) Promote forest conservation activities to preserve the ecosystem (the Ricoh Group) (See page 61.) conscious social stage contribution activities

*See page 17 for the definitions of responsible stage and proactive stage.

18 Ricoh Group Environmental Management Promotion System

Enhanced the environmental 2002. Aiming at promoting the environ- their environmental action plans. The activity promotion system mental efforts of Group companies Group lets all Group employees share and more efficient environmental man- know-how through occasional regional for global sustainable agement, the Group integrated the and committee meetings and corpo- management management systems of business rate benchmarking. activities and environmental activities. The Ricoh Group, as a global business To realize sustainable management entity, started an environmental man- worldwide, the Group conducts management promotion system in April agement reviews of achievements in

Organization Chart for the Ricoh Group’s Environmental Management System

• Group Management Committee Makes the final decision on environmental activities Corporate Planning Division

• Ricoh Executive Meeting Personnel Division Provides environmental information to the operating officers of relevant Research and Development Group divisions and discusses issues

• Environmental Council for Imaging Technology Division President Reports on environmental activities to Imaging System Business Group president and discusses issues Recycle Business Division • General Environment Meeting Thermal Media Company Reports on environmental activities to directors in charge and discusses issues Personal Multimedia Products Company

President Electronic Devices Company

Affiliates

Corporate Environment Marketing Group Division Domestic sales and service companies

Production Business Group

Ricoh production sites

Manufacturing subsidiaries in Japan

Manufacturing subsidiaries in the Americas

Manufacturing subsidiaries in Europe

Manufacturing subsidiaries in China and Taiwan

International Marketing Group Sales companies* in the Americas • Overseas Regions Environment Meetings Sales companies* in Europe Shares information and addresses and examines issues among the Sales companies* in China and Taiwan persons in charge of environmental promotion activities Sales companies* in the Asia-Pacific region of regional sales headquarters

• Group Meetings for Environmental Managers Shares information and addresses and examines issues among the persons in charge of environmental promotion activities of divisions • Business Site Environment Committee Shares information and addresses and examines issues concerning environmental conservation activities at business sites • Product Environment Committee Shares information and addresses and examines issues concerning product design and development

* The United States, Canada, and Latin America are covered by sales companies in the Americas; Europe, the Middle East, and Africa covered by sales companies in Europe; China and Taiwan and Hong Kong covered by sales companies in China and Taiwan; and Asia (excluding Japan, China covered, and Taiwan) and Oceania covered by sales companies in the Asia-Pacific region.

19 Environmental Management System (EMS)

Enhance the Plan-Do-Check- Action (PDCA) cycle by The Ricoh Group’s SMO integrating the item “environment” into the (1) Financial perspective How to treat shareholders to ensure financial Strategic Management by success Objectives (SMO)

(2) Customer perspective (3) Internal business process How to treat customers How to draw up business The Ricoh Group’s EMS is an impor- to ensure strategic plans that will satisfy share- tant tool in realizing sustainable man- integrity Mid-term holders and customers strategy agement. By integrating the item “environment” into SMO for the Group as a whole, the Ricoh Group can evaluate the activities of all Group busi- (4) Learning and growth (5) Environmental conservation perspective How to maintain the abil- How to carry out envi- ness sites and divisions. Furthermore, ity to adapt to changes ronmental conservation and improvements to as a social responsi- the Group uses the PDCA cycle for pursue strategies bility the Group as a whole as well as each business site and division to continuously improve its sustainable management.

* The SMO system with the additional environmental item thermore, Ricoh introduced SMO in 1999 developing it to make the PDCA cycle is applied to areas that are not shown in the figure, the to clarify evaluation standards for environ- work more efficiently throughout the Environmental Management System (see page 19). mental conservation activities that are entire Ricoh Group. For this purpose, Groupwide EMS used in divisional performance evalua- Ricoh developed SMO throughout the Ricoh regards environmental conservation tions. This system is based on the entire Group in several phases and made activities as its duty as a global and cor- Balanced Scorecard system, a perform- sure through management reviews2 that porate citizen. However, such activities ance management system developed in the the environmental action plans are must be beneficial for the Company to 1990s in the United States and character- achieved throughout the Group. continue them. Ricoh therefore uses an ized by the use of four perspectives. Ricoh 1. See pages 17, 36, 40, 48, 50, and 73. 1 2. The review conducted by the management to ensure appro- environmental accounting system to iden- has added a specific environmental con- priateness and efficiency of the environmental management tify environmental cost-effectiveness. Fur- servation perspective to the system and is system

EMS of the Ricoh Group PLAN General principles on the environment Environmental action plans

P ACTION A Review of the P Company’s D EMS at business EMS C P sites/divisions SMO D Divisional evalua- C tion under the Strategic D Management by C Objectives CHECK Achievements under environmental action plans Eco-Balance Environmental accounting DO Company regulations, environment EMS of the Group as a whole training and promotion of awareness, and development of environmental technologies

20 ISO 14001 Certified Divisions and Business Sites of the Ricoh Group (April 2001—March 2002) See The Ricoh Group Sustainability Report 2001 for status as of March 2001 and earlier. (http://www.ricoh.co.jp/ecology/e-/report/index2001.html)

Assessing/ Date of Name of Business Site Location Registering Certiﬁcation RICOH DEUTSCHLAND GMBH Germany TUV Dec. 7, 2001 Organization Ricoh Co., Ltd. (Japanese Sales RICOH CORPORATION (SAN JOSE) BSI April 18, 2001 U.S.A. Division and its sales companies) Japan JQA Dec. 14, 2001

NRG Italia S.p.A. Italy DNV May 23, 2001 RICOH HUNGARY KFT Hungary BVQI Dec. 14, 2001

Ricoh Electronic Technology China SCEMS May 23, 2001 NRG FRANCE SA France AFAQ Dec. 18, 2001 (China) Co., Ltd.

Gestetner Denmark a/s Denmark DS CERTIFICATION June 11, 2001 GESTETNER (ISRAEL) LTD. Israel IQC Dec. 31, 2001

N.R.G. COMUNICACIONES, S.A. Spain AENOR June 11, 2001 RICOH ITALIA SPA Italy RINA Jan. 25, 2002

Ricoh New Zealand Limited New Zealand TeLaRC June 14, 2001 Ricoh Australia Pty Ltd Australia QAS Feb. 8, 2002

NRG Deutschland GmbH Germany TUV July 20, 2001 Ricoh Canada Inc. Canada S G S Feb. 12, 2002

Gestetner Svenska AB Sweden DNV Aug. 23, 2001 Ricoh (UK) LimitedU.K. BSI Mar. 4, 2002

Ricoh Hong Kong Limited Hong Kong SGS Sept. 11, 2001 RICOH FRANCE SA France BVQI Mar. 7, 2002

RICOH BELGIUM Belgium BVQI Sept. 20, 2001 NRG Ireland LimitedIreland BSI Mar. 15, 2002

The Ricoh Nederland B.V. BVQI Sept. 25, 2001 Netherlands Ricoh Norge AS Norway Nemko Mar. 25, 2002

NRG Group UK Limited U.K. BSI Nov. 15, 2001 RICOH ESPANA, S.A.Spain BVQI Mar. 27, 2002

The Ricoh Europe B.V. Netherlands B V QI Nov. 20, 2001 Ricoh Europe BV, Sucursal em Portugal Portugal P J R Mar. 28, 2002

Ricoh Leasing Company Japan J Q A Nov. 30, 2001 Ricoh POLSKA Sp. zo. o.Poland BVQI Mar. 29, 2002

RICOH Austria Ges.m.b.H. Austria B V QI Dec. 7, 2001 RICOH (SINGAPORE) PTE LTDSingapore BSI April 18, 2002*

* Assessment was completed by the end of March 2002 and an informal certification was received, but the certification issuance date was April 2002.

EMS’s for Business Sites and Development of EMS-Oriented Environmental Audits Divisions Activities The Ricoh Group’s internal environmental The Ricoh Group, as a global company The Ricoh Group is developing EMS- audits are carried out by internal auditors successively adopted SMO and set up oriented activities, taking division- at each business site, and the results are EMS at its business sites and divisions specific environmental aspects into given to the top management of the sites pursuant to ISO 14001, the internationally account, as illustrated on the next page. audited to make the PDCA cycle work recognized certification. Furthermore, the For example, nonproduction sites engage more efficiently. Group began having its business sites ISO in activities that result in establishing 14001 certified in order to establish a EMS, such as designing products with less Risk Management Groupwide environmental management environmental impact1 and recommending The Ricoh Group acquired ISO 14001 system with lower costs. Starting with them to customers2, as well as practicing certification at its major production sites Ricoh’s Gotemba Plant*, which was certi- energy conservation and conducting zero around the world and has established a fied on December 25, 1995, 35 of the waste campaigns at offices. risk management system based on this. All Ricoh Group’s 40 bases have been certi- 1. See page 31. accidents are handled in a socially respon- fied to date, and 789 out of 794 business 2. See pages 32, 41, and 47. sible manner and reported to the top man- sites in regions covered by the Group were agement, following decisions made at certified by the end of fiscal 2001. The environmental meetings around the world. Group is planning the same for the Furthermore, appropriate countermeasures remaining five bases and five sites by are taken, such as prompt information dis- November 2002. closure to affected communities.

* The first business site to receive certification from a Japanese organization.

21 Divisional Activities for Environmental Management Preventing Pollution during a Fire

Collection routes with less environmental Ricoh Industrie France constructed a basin impact Improved collection quality to collect water used in extinguishing fires Improved resource recovery rate and recycling technologies in such areas as and chemical substances, including toner, Research and precision disassembly and sorting development Feedback on recyclable designs that may have mixed with the water to Collection Development of environment-friendly prevent them from leaking out of the plant technologies, including energy and recycling conservation technologies, recycling and into the environment if the plant technologies, measurement technologies, and simulation technologies catches fire. The collected water is then pumped to a water treatment plant. Product design

Recyclable designs, energy conservation designs, low-noise emission designs, and Maintenance pollution prevention designs Improved productivity in duplex copying Maintenance schemes with less environmental impact using such devices as remote diagnostic systems Improved environment at customers’ offices and workplaces Manufacturing

Water pool for fire fighting at Ricoh Industrie France Green procurement of Marketing materials Promotion to achieve a 100% resource recovery rate Reduction in material loss in production process Recommendations for duplex copying Training to Prevent Pollution Pollution prevention and recycled paper Logistics Energy conservation activities Proposals for marketing energy-saving or and Deal with Emergencies recyclable equipment Proposals for system solutions to reduce Ricoh Group plants pay careful attention Transportation methods and routes the environmental impact caused by that have less environmental impact customers Introduction of natural-gas vehicles to safety, especially when handling hazardous material, by engaging in 5S activities. Examples of Risk Management from Control of Environmentally 5S stands for five Japanese words that Sensitive Substances around the World begin with the letter s: seiri (organizing Plants that use environmentally sensitive Ricoh Group business sites are addressing or arranging things), seiton (putting things substances store them in containers over a the problems of environmentally sensitive in order), seiketsu (cleanliness), seiso basin to prevent them from leaking into substances by reducing their usage, instal- (cleaning), and shitsuke (discipline). Each the soil. ling contamination- and disaster-preventing plant prepares for emergencies by con- equipment, and training personnel. ducting annual training programs for pollution and disaster prevention. Safety Monitoring System The safety control system established at the Yashiro Plant uses sensors and other devices throughout the facility to confirm its safety. In an emergency, appropriate instructions are immediately given from The chemical storehouse of Ricoh Industrie France the control room, accompanied by alarms and warnings on monitors. Abolishment of Solvent-Based Paint Disaster drill at Ricoh Asia Industry Ltd. (RAI) in China Ricoh Industrie France S.A. has developed an organic water-based paint to replace its solvent-based paint. The use of the water- based paint lowered the emissions of volatile organic compounds into the air by 83%. As a result, annual cost dropped approximately 27,000, or ¥2.8 million.

The safety control room at Ricoh’s Yashiro Plant

22 Environmental Management Information System

The environmental management information Environmental Management Information System system calculates and analyzes environmental Environmental Impact Information System impact and relevant costs Information on materials and chemical and supports the decision- substances in raw materials and parts is collected from a network of suppliers. This information, together with that on making process to promote laws and regulations, encourages green procurement. environmental management. Procurement

To make appropriate decisions in environmental management, it is necessary to have relevant data. To this end, the In conjunction with the procurement management system, chemical substance manage- Ricoh Group established the environment system, and CAD system, materials mental management system, which that are considered appropriate are chosen Design at the designing stage with cost and environ- comprises the Group’s environmental mental aspects taken into consideration. impact information system and environmental accounting system. Under the environmental management information system, the Group identifies the impact, Data on all business sites, including produc- costs, and effects of environmental tion sites and nonproduction sites, are collected from the Ricoh Group network in improvement activities. The Ricoh Group terms of the amount of electric power used, will develop the system in fiscal 2002 the amount of chemical substances used, the volume of CO2 emitted, and how much and operate it worldwide. waste is being discharged. This effectively

Manufacturing reduces environmental impact. Environmental Impact Information System The environmental impact information sys- A system to collect information on environ- tem identifies the total impact each process mental impact resulting from logistics, partic- ularly that concerning bases and processes of a business activity has on the environment involved in logistics as well as sales bases, as well as the activity, allowing the process was developed. Data collection has com- menced to establish EMS at those logistics that causes the largest environmental impact and sales bases. to be dealt with first. The system is based on Logistics and Marketing the concept of the Comet Circle1 to identify and reduce the environmental impact at all stages. It enables the identification of the appropriate data using life cycle assessment Environmental impact information on each product, including the amount of electricity, (LCA) when disclosing information to soci- paper, and other supplies the product con- Use sumes, is identified. This information is used ety. The Ricoh Group uses the environmen- in the development of future products. tal impact information obtained through this system to identify the Eco Balance2 of its business activities as a whole, draw up an environmental action plan3 based on the information, and carry out progress manage- Environmental impact at the maintenance ment. stage is identified and analyzed with the help of a database on product maintenance 1. See page 13. 2. See page 25. 3. See page 18. history and on gasoline and electricity consumption at maintenance bases. Environmental Accounting System Maintenance The environmental accounting system collects and processes data on environmental conservation effects obtained from the environmental impact information system and In product designing, an infrastructure to environmental cost data obtained from the implement recycling plans for the reuse and recycling of collected products and a system accounting system to identify corporate to identify the details of recycling are being environmental accounting* in a timely fash- run. ion. The Ricoh Group uses this in its sustainable management and discloses it to society. Collection and Recycling *See page 75.

23 Environmental Accounting System

Accounting system

Environmental expenses

Information Information collected collected

Integrated database Environmental capital investment A data collection system for proportional division of the figures is established. • Number of units produced (classified by process) • Product weight • Monetary value • Divisions and facilities involved in production Data of chemical substances and wastes discharged and energy consumed by major business activities Product composition data

Environmental accounting guidance database

Divisional environmental impact Environmental impact data of data products

Recycling information data Environmental accounting compilation database

Information analysis Information processed

Identifying Eco Balance

Drawing up and managing the Environmental Action Plan

Corporate environmental accounting

24 Identifying Environmental Impact (Eco Balance)

Identifying the environmental impact of business activities as a whole and translating

it into numerical figures (1) Eco Balance of Overall Procurement of Business Activities to be used in planning an Materials and Parts Manufacturing Resources and energy Resources and energy environmental action plan

The figure on the right shows the Eco Production of raw Balance1 of the Ricoh Group’s busi- materials ness activities as a whole by calculat- Raw materials ing the environmental impact and monetary value of each process based Manufacturing Manufacturing Manufacturing on data collected from the environ- of materials of parts of products mental management information sys-

tem described on the previous page. Products Materials All kinds of business activity-related Parts environmental impact, including global warming, ozone layer destruction, and ecosystem damages, are identified and translated into numerical figures using the integrated analysis method. Ricoh began identifying the environmental impact of its business activities in fiscal 1999 under this method. It was discovered that upstream activi- Landﬁll Exhaust Wastewater Exhaust Wastewater ties (manufacturing of materials and waste gas • BOD gas • BOD • COD... • COD... • CO2 • CO2 parts), chemical substances contained • NOX • NOX • SOX... • SOX... in products, and paper consumed by customers had significantly high environmental impact. To develop more- (2) Figures from an Chemical substances Production sites Nonproduction (%) Upstream Integrated Analysis contained in products Japan Other regions sites effective environmental conservation 100 of Business Activities activities, the Ricoh Group will reduce (Rate/Amount) 10 (Reviewed by BVQI [1]) its environmental impact, especially in 1 the three processes listed above, and 0.1 is planning to carry out drastic mea- 0.01 sures in processes other than the three listed above. A new environmen- 0.001 (%) 25.13 8.52 8.38 7.39 0.85 tal action plan2 to be put into effect from fiscal 2002 is to be drawn up (millions of yen) 50,520 17,119 16,841 14,851 1,715 based on data obtained from the integrated analysis method. Promotion of green procure- Reduction in the amount of 1. Eco Balance is a system that involves the listing of (3) Major Activities ment and green purchasing energy used at business sites environmental impact input/output data to identify, (Environmental Promotion of the prevention of Reduction of pollution at quantitatively measure, and report the environmental Action Plan from products from being polluted business sites impact of companies. Fiscal 2002) Increased quantity of reused Promotion of resource conser- 2. See page 18. (See page 18.) parts in products vation and recycling at business sites

25 Logistics and Marketing Use and Maintenance Collection and Recycling Resources Resources and energy Resources and energy and energy

Smelting

Smelted metals

Oil

Use Disassembly Cracked oil Marketing Collection Crushing (Customers) and sorting and sorting Recycled chemical materials

Solid-fuel Products Products processing

Recovered Solid fuel After-sales Reducers in shaft service products Recovered furnaces, etc. parts Thermal energy Recovery Recovered recovery of materials products

Recovery of parts

Recovery of materials

Exhaust Emissions Exhaust Wastewater gas • Ozone gas • BOD • Dust • COD... • CO2 • CO2 • NOX • Noise... • NOX • SOX... • SOX...

Transpor- Electric Mainte- Manufacturing of (%) tation Marketing power Paper nance maintenance parts Disposal and recycling 100

0.1

0.01

0.001 (%) 0.43 0.76 10.76 36.95 0.32 0.47 0.04

872 1,522 21,624 74,294 639 950 72

Promotion of green Promotion of the development of Improvement in the collection rate for used products and toner cartridges marketing energy-saving products Improvement in the resource recovery rate for used products and toner cartridges Increased number Development of technologies useful of resource- in reducing the environmental recirculating impact of paper products

26 Identifying Environmental Impact (LCA)

Conducting LCA1 research to LCA Research LCA Comparison between a New Machine and Reconditioned Machine (CO2 Emissions) Ricoh established an LCA research team identify a product’s (Reviewed by BVQI [2]) in 1994 to conduct practical research on (kg-c) environmental impact and 60 LCA and has released a variety of case disclosing the relevant 50 55 About study reports. With more case studies 50% 40 reduc- information to customers being conducted, such issues as the impor- tion 30 tance of explaining the usage of LCA and 28 To manufacture products with less difficulties of collecting data and setting 20 environmental impact, it is important to research conditions are being clarified. 10 identify the environmental impact that 0 Making use of the knowledge obtained by imagio MF 6550 imagio MF 6550 RC products cause throughout their life the LCA research team, manufacturing (new machine) (reconditioned machine) cycles. It is also important to disclose subsidiaries are conducting their own * A comparison of annual environmental impact LCA information2 to help more custom- LCA. Ricoh participates in government was made. * Figures for CO2 emissions while being in opera- ers use products with less environ- committees and other gatherings to help tion at customer’s site was not included in the mental impact. Ricoh uses the LCA calculation of the data. improve the LCA method and conduct * The imagio MF 6550 RC is only available in method to identify the environmental research with scholars and company repre- Japan for rent. impact of its products and verifies sentatives. Ricoh disclosed LCA informa- environmental improvement measures tion about printers and copiers in fiscal by modifying the design and manufac- 2000 and about facsimiles in fiscal 2001. turing processes. LCA is therefore Furthermore, for the purpose of endorsing useful in promoting sustainable man- the environment-friendly functions of agement. recovered machines, Ricoh made an LCA 1. LCA is a means of quantitatively determining the level comparison* between a new machine, the of environmental impact generated throughout a product’s life cycle, from resource procurement through imagio MF 6550, and a reconditioned manufacturing, transportation, use, maintenance, recovery, recycling, to disposal. Even a partial level of machine, the imagio MF 6550 RC. impact can be used. * See the figure on the right. 2. See page 59.

LCA Information on the imagio MF7070 (Aficio 700) (Type III Environmental Impact Disclosure)*

Environmental Impact Item Preliminary Process Manufacturing Transportation Use and Maintenance Recycling and Disposal Electric power (kWh) 37.9 0 3,494 13.7 7,730 (MJ) Fossil fuel (MJ) 167 381 2,569 — Tap water ( ) — 3.65 0 0 0 Industrial water ( ) — 0 0 0 0 Water usage Underground water ( ) — 0 0 2,219 0 Copy paper 12,200 Metal 116 Toner 86.7 Input Plastic and Photosensitive materials 3.63 0 Principal resource (kg) — rubber 38.8 0 Developer 10.0 Glass 2.2 Maintenance Others 45.1 parts 27.9 Others 27.4

Resource input PRTR substances (g) — 58.4 0 1,374 0 Volatile organic substances (g) — 0 0 73.6 0

Environmental Impact Item Preliminary Process Manufacturing Transportation Use and Maintenance Recycling and Disposal

CO2 (kg-C) Power consumption/others 250 6.03/3.20 0/7.0 291/45.4 1.11/0 SOX (g) Power consumption/others 3,460 10.2/13.3 0/31.5 412/3.63 1.23/0 NOX (g) Power consumption/others 711 12.9/8.35 0/79.2 568/20.6 1.78/0

into air PRTR substances (g) 0 Emission — 0 0 1,374 Volatile organic substances (g) — 0 0 73.6 0 Amount emitted ( ) — 3.65 0 2,219 0 Output BOD (g) 6,560 0.255 or less 0 0.31 0 COD (g) 7,570 0.236 or less 0 — 0 Emission into water PRTR substances (g) — 0.00439 0 0 0 Recycled (kg) — 0.697 14.9 11.2 177.4 Incineration (kg) — 0.0294 0.845 0.864 Waste 8.60 Landﬁll (kg) — 0.0008 0 37.9

* Obtained JEMAI program Ver. 2 certification from *http://www.ricoh.co.jp/ecology/e-/label/type3/index.html the Japan Environmental Management Association for Industry.

27 Environmental Conservation

The natural environment was created over a The mascot for a skin cancer prevention campaign. The slogan is “Slip (slip on a shirt), Slop (slop on some sunscreen), and Slap (slap on a long span of time as a result of plants, ani- hat).” Skin cancer is caused by sunlight directly shining on the earth through a depleted area in mals, and other living things coexisting. the ozone layer above the South Pole. (The right to use this picture is permitted by The For instance, we are able to live on the Cancer Council Charity in New South Wales, Australia.) earth because submerged aquatic vegeta-

tion carries out photosynthesis and dis-

charges oxygen (O2), which becomes ozone

(O3) in the upper atmosphere, creating a layer covering the whole earth. Before that, living things could not go on dry land because the UV rays from the sun were. It is said that it takes 100 years for the earth’s surface to gain one centimeter of soil. Soil covers mountains, stores rainwater, and releases the stored water gradually. Moun- tains need forests to keep the soil in place, especially after it rains, for instance. The earth, the only planet where living things exist, is constantly developing and main-

taining its natural ecosystem. Mankind has long pretended that it had forgotten it was a part of nature. To preserve a better natural environment for future generations, we must develop and recover the natural environment, change our lifestyles and social mechanisms, and restrict environmental impact to a point where the natural environment can recover by itself.

28 Results of The Ricoh Group established environmental action plans for the fiscal years 1999–2001 and Environmental took various approaches to achieve its goals of promoting innovative environmental conservation activities and successfully carrying out sustainable management on a global scale. The Action Plans results of these efforts are shown below. The environmental action plans that were prepared for as of Fiscal 2001 fiscal 2002 through fiscal 2004 are described on page 18.

Goals (FY 1999–2001)

Environmental It is essential for all Ricoh Japanese business sites as well as production sites to acquire ISO14001 certification by Management System (EMS) September 2000 and for the Ricoh Group as a whole to do so by the end of fiscal 2001 pursuant to standards that take See pages 20–22. environmental impact and a company’s business scope into consideration.

Complete an environmental impact information system for copiers, facsimiles, and laser printers by the end of fiscal 2000 (by the end of fiscal 2001 for other product lines) Environmental Management Information System See pages 23, 24. Complete an environmental management information system by the end of fiscal 2000

Establish a collection and recycling system for products and supplies (especially toner cartridges), in Japan, Europe, Resource Conservation the Americas, China and Taiwan, and the Asia-Pacific region by the end of fiscal 2001 and Recycling (Products) See pages 50–55.

Increase the resource recovery rate for copiers, facsimiles, and laser printers, including toner cartridges, to 90% or more by the end of fiscal 2001

Ricoh is to reduce final waste 90%, compared with that in fiscal 1992, by the end of fiscal 2001.

Achieve a 100% resource recovery rate (Zero-Waste-to-Landfill) at all production sites in Japan by the end of fiscal 2000 Resource Conservation and Recycling Achieve a 70% resource recovery rate at all nonproduction sites in Japan by the end of fiscal 2001 (Business Sites) See pages 39, 40. Achieve a 100% resource recovery rate (Zero-Waste-to-Landfill) at all production sites outside Japan by the end of fiscal 2001

Reduce generated waste at least 4% at all production sites in Japan in fiscal 2001, compared with that in fiscal 2000 (this item added in fiscal 2001)

Reduce energy consumption per product marketed in Japan 30%, compared with that in fiscal 1996, by the end of fiscal 2001 Energy Conservation (Products) Increase the speed of duplex copying and the number of types of recyclable paper that can be used in copiers to promote See pages 47–49. the efficient use of paper and thus reduce CO2 emissions during paper manufacturing Achieve 95% duplex copying productivity (duplex copying speed/simplex copying speed) in products that have a duplex copying function and were marketed in fiscal 2001 Enable all imaging technology products marketed in fiscal 2001 to use 100% recycled paper and paper weighing 64 g/m2

Energy Conservation Ricoh is to reduce CO2 emissions at least 15% by the end of fiscal 2001 on a per sale basis, compared with those in (Business Sites) fiscal 1990. (Production sites other than Ricoh’s are to set numeric goals of 15% or more each compared with that of See pages 35, 36. fiscal 1990.)

Reduce the volume of specified chemical substances, such as lead and polyvinyl chloride (PVC), hexavalent chromium Pollution Prevention at least 50% on a per product basis in all products introduced in fiscal 2001, compared with products introduced in 1997 (Products) See pages 32 and 49. Reduce the level of noise at least 2 dB and emissions of ozone and other by-products at least 20% for all copiers, facsimiles, and laser printers introduced in fiscal 2001, compared with products introduced in 1997

All production sites, research centers, and manufacturing subsidiaries of the Ricoh Group are to reduce the use of ‘Ricoh Group’s target substances for reduction’ at least 20% and emissions at least 50% and completely eliminate landfill waste Pollution Prevention by the end of fiscal 2001, compared with those in fiscal 1997. (Business Sites) See pages 37, 38. The Ricoh Group is to completely eliminate the use of trichloroethylene, tetrachloroethylene, chloroform, and dichloromethane (except in the manufacturing of existing photosensitive materials) by the end of fiscal 2001 and to completely eliminate the use of dichloromethane in the manufacturing of existing photosensitive materials by the end of fiscal 2007.

29 Results (FY 2001 Performance) (Reviewed by BVQI [3])

35 out of 40 bases and 789 out of 794 sites, both in Japan and outside Japan, acquired ISO 14001 certification. The remaining five bases and five sites will be certified by November 2002.

A system was established to identify and analyze the environmental impact of all production sites in Japan and the impact of major business activities concerning copiers, facsimiles, and printers in Japan. The system was implemented in fiscal 2001 and included Ricoh Asia Industry Ltd. (RAI) and Taiwan Ricoh Co., Ltd. In fiscal 2002, the Ricoh Group will merge its environmental impact information system and environmental accounting information system into an environmental management information system.

The establishment of a cost accumulation system was completed in fiscal 1999. The cost accumulation system has been in operation at Ricoh from the second half of fiscal 1999. All systems designated for completion (i.e., databases on environmental laws and their revisions, product recycling/energy conservation measures, external queries, World Wide Web inquiries, and the kinds of waste generated at business sites as well as information from environmental label forums, environmental forums for sales companies and divisions, and the CO2 Forum) were established by fiscal 2000.

Product Collection and Resource Recovery System Nationwide networks of collection and recycling centers for used products are completed in Japan. In Europe, the Americas, China and Taiwan, and the Asia-Pacific region, collection and resource recovery systems are almost completed. Toner Cartridge Collection and Resource Recovery System In Japan, collection networks are almost completed. In Europe, the Americas, China and Taiwan, and the Asia-Pacific region, collection systems are almost completed, and resource recovery systems have, with the exception of some countries, already started.

All of Japan, Europe, the Americas, China and Taiwan, and the Asia-Pacific region achieved the goal of at least 90% resourse recovery rate.

Final waste was reduced by 99.6%, surpassing the goal in fiscal 2001.

Surpassed the Zero-Waste-to-Landfill goal by the end of fiscal 2000 and maintained that level in fiscal 2001

Achieved a 98.1% resource recovery rate at nonproduction sites in fiscal 2001, surpassing the goal in fiscal 2001; five business sites (Ricoh Aoyama Office, Ginza Office, Shinagawa System Center, Toda Technical Center, and Shin-Yokohama Office) achieved Zero-Waste-to-Landfill.

All production sites outside Japan (Ricoh Industrie France S.A., Ricoh Electronics Inc., Ricoh UK Products Ltd., Ricoh Asia Industry (Shenzhen) Ltd., and Taiwan Ricoh Co., Ltd.) achieved Zero-Waste-to-Landfill by the end of fiscal 2001.

Reduced generated waste by 9%, surpassing the goal in fiscal 2001

Energy consumption of black-and-white copiers and multifunctional copiers was reduced by 53.2%, surpassing the goal in fiscal 2001. Energy consumption of color copiers and multifunctional copiers was reduced by 48.34%, surpassing the goal in fiscal 2001.

Energy consumption of facsimiles was reduced by 89.55%, surpassing the goal in fiscal 2001.

Energy consumption of black-and-white and color printers was reduced by 47.37%, surpassing the goal in fiscal 2001.

Achieved a duplex copying productivity of 97%–100% in black-and-white copiers and multifunctional copiers as well as black-and-white laser printers marketed in fiscal 2001 Enabled the use of paper with a thickness of up to 64 g/m2 in products marketed in fiscal 2001

Enabled the use of 100% recycled paper in products marketed in fiscal 2001

Ricoh reduced CO2 emissions by 24.1%, surpassing the goal in fiscal 2001. Seven manufacturing subsidiaries in Japan reduced CO2 emissions by 20.9%–57.4%, surpassing the goal in fiscal 2001. Among five manufacturing subsidiaries outside Japan, four achieved a 23.1%–32.2% reduction in CO2 emissions, reaching the goal. One had an 8.5% increase and, therefore, did not achieve the goal. (The average total reduction in CO2 emissions by all manufacturing subsidiaries outside Japan was 31.6%.)

For products marketed in fiscal 2001, the volume of lead, polyvinyl chloride (PVC), and hexavalent chromium was reduced by 47%, 47%, and 58%, respectively. The Ricoh Group continues its efforts in reduction and strives to completely eliminate specified chemical substances for products to be marketed from fiscal 2004 onward.

The level of noise emitted during operation and while on standby was reduced by 3.3 dB and 2.7dB, respectively, surpassing the goal for products marketed in fiscal 2001. Also, the goal of reducing ozone by 70% and dust by 29%, respectively, was surpassed.* * Calculations are based on the weighted number of copiers, facsimiles, and printers sold and use a copying productivity of 50 sheets per minute for all machines.

Reduced the use of ‘Ricoh Group’s target substances for reduction’ 46.6% and emissions 58.2%, surpassing the goal in fiscal 2001

Completely eliminated the use of trichloroethylene, tetrachloroethylene, and chloroform worldwide. Also, completely eliminated the use of dichloromethane (except in the manufacturing of existing photosensitive materials). Continuous efforts are made to completely eliminate the use of dichloromethane in the manufacturing of existing photosensitive materials by the end of fiscal 2004, which is earlier than the original deadline.

30 Environmental Conservation Research and Development

To facilitate sustainable Product Development, management, Ricoh strives Manufacturing, and Recycling Provisions for Recyclable Designs 1. Provision for the entire product line to promote environmental A decrease in the number of parts will help reduce costs, mechanical failure, 2. Provision for reuse technology. As a part of these 3. Provision for recycling and environmental impact and improve efforts, the Company estab- 4. Provisions for the recycling of chemicals customer satisfaction. It will also help in lished a new laboratory—the and the recovery of energy the more-efficient reuse and recycling of Environmental Technology 5. Provision for supplies (e.g., toner used products. The Ricoh Group manu- R&D Center. cartridges) factures products based on the 3R 6. Provision for packaging concept of reduce, reuse, and recycle, In order to have effective sustainable taking the following into consideration: management and reduce society’s environmental technology, capital Recyclable Design Policy impact on the environment as a whole, investment, marketing, after-sales Level 1 (1993) we must develop outstanding environ- service, and recycling. • The use of insert molding prohibited mental conservation technologies, apply • The number of parts and screws to be removed when them to our products, and supply them changing main components set Product Platform and Module to our customers. With this in mind, • The use of E-rings prohibited Ricoh has developed its own unique Design • The adhesion of resin materials to different materials Ricoh is creating a product platform and prohibited energy saving technology, applied it to • The amount of packaging reduced module design under the new corporate the Aficio 1035/1045 (imagio Neo • The use of heat calking prohibited 350/450) series*, and marketed in fiscal structure to develop and market products • The use of toxic chemical substances prohibited 2000. In fiscal 2001, Ricoh promoted its with less environmental impact in a more • Grading for outer packaging set (New) • Indicating material grades on labels made mandatory (New) product platform and module design and efficient and timely manner. The purpose refined its recyclable designs in an effort of this design scheme is to aid decision Level 2 (1994) • Grades reorganized pursuant to the completion of the making on the product platform (struc- to improve profitability in the recycling Comet Circle concept business. Also, the Company engaged ture), modules mounted on and sharing the • Provisions for reusable designs extended in developing products that encourage platform, and modules used throughout the • The use of resin that contains chlorine prohibited customers to reduce paper consumption. product line and across generations. This (dioxin prevention) • The reduction in the number of parts and screws to be In April 2002, Ricoh established the plan is best suited for “the era of the envi- removed when changing main components Environmental Technology R&D Center ronment” because it allows products to Level 3 (1996) to enhance its environmental technology keep up with the changes of the times by • New provisions for recycling supplies added skills. At the center, relevant data and simply having the necessary modules • New provisions for harness layouts added information from past activities, including updated. • New provisions for the restricted use of nitrous resin those concerning energy saving and added • The use of nylon clamps restricted resource conservation, are compiled for Recyclable Design • Articles revised, taking economic benefits into use in developing more profitable envi- More-efficient reuse and recycling can be consideration ronmental technologies. realized by improving the disassembly and Level 4 (1999) *See pages 47–48. sorting of products collected after use and • Appropriate design items for process cartridges added • New provisions for recyclable printed circuit board choosing materials that contain less envi- designs added The Ricoh Group’s Concept ronmentally sesitive substances and are • The number of screw types reduced of Product Development, easily recyclable. In 1993, Ricoh an- • The use of nonhalogenous, fire-retardant resin Manufacturing, and Recycling nounced its policy on recyclable designs introduced • Overall set values for acceptable change in speed Reduce for significantly reducing the time and cost Environmental impact is reduced if when machine is jarred revised it takes for recycling (e.g., fewer screws products are made smaller, lighter, Level 5 (2001) and longer lasting. used in the machine and standardizing • New provisions for the reuse of general parts added Reuse plastic materials). Ricoh also expanded its • The use of electronic counters prohibited, and the The reuse of products is possible long policy on recyclable designs and product mounting of nonelectronic counters made mandatory after the product’s life has ended thanks • Regulation on environmentally sensitive substances to the use of modular designs and more- assessment system to cover its entire line (e.g., batteries, hexavalent chromium, and lead) advanced recyclable designs. of copiers, facsimiles, laser printers, and tightened Recycle multifunctional copiers. • Polyethylene terephthalate added to materials used in Promoting the recycling of parts and making toner bottles materials as much as possible within • New provisions for logos added to the Container the Group. Packaging Recycle Law

31 Research and Production Marketing LogisticsAfter-Sales Use Recycling Environmental Development Procurement Service Conservation Social Responsibilities

Recycling of Plastic Parts Reducing Environmentally Lead-Free Solder In 1994, Ricoh began indicating the exact Sensitive Substances More than 400 types of copiers1 are listed type and grade of materials used in each part To reduce the amount of environmen- in the copier division of the GPN database. according to the Company’s recyclable design tally sensitive substances in products, Fourteen products, 13 of which are from policy in order to improve recycling quality. the Ricoh Group worked together with Ricoh, are rated A2 under the “lead con- Plastic parts removed from collected products suppliers in adopting lead-free solder, tained in solder” item. are sorted, graded, and crushed. They are then reducing the use of PVC-coated wires, 1. As of March 29, 2002 2. There are four rating categories for solder used in joining mixed with virgin plastic to be reused in Ricoh and reducing the use of hexavalent printed circuit boards to other parts of the copiers, namely, product parts. Ricoh’s recovered plastic parts chromium in steel plates. Environmen- AA (100% lead-free solder), A (lead content reduced at least 50%), B (lead content reduced at least 10%), and C (lead contain a relatively high rate of collected plas- tally sensitive substances do not affect content reduced less than 10%). There are no products tic—up to 30%. The average amount of recov- the environment when customers use marketed in Japan that are rated AA. ered plastic in any given part is 20%–25%. them properly, but they may harm Reducing the Use of PVC-Coated In fiscal 2001, an Eco Mark for printers was when they are mined or improperly dis- Wires established. Eighteen types of IPSiO laser print- posed of. This is an important issue in There are five copiers listed1 in the GPN ers, including those already on the market, recyclable designs as well because such database that are rated II2 for the PVC were awarded the Eco Mark mainly because substances may limit the recovery and used to cover their wires; all five are manu- of the recovered plastic parts used in them*. recycling of used products. Reducing factured by Ricoh. Of the five copiers, the * See pages 41–42. the use of these substances will ulti- imagio Neo 600 and 750 were the first to mately lessen recycling costs as well as Efficient Paper Use be given a II rating for using nonhaloge- the environmental impact a product has The Eco Balance evaluation1 revealed nous wiring cords. There are 21 products during its life cycle. Ricoh has taken on that the largest environmental impact that are rated III, 8 of which are from Ricoh. these challenges as part of its environ- during the entire product life cycle 1. There are four rating categories for PVC-coated wires used in mental management activities. The copiers, namely, I (100% PVC-free coating), II (coating that assessment (LCA) was caused by the uses at least 50% substitute materials), III (coating that uses at Aficio 1027 (imagio Neo 220/270), least 10% substitute materials), IV (coating that uses less than copy paper while the machine is running marketed in June 2001, reduced the use 10% substitute materials). There are no products marketed in at customers sites. In addition to develop- Japan that are rated I. of lead in printed circuit boards, PVC- 2. As of March 29, 2002 ing new products and technologies, coated wires, and chromium-contained Ricoh provides products2 that encourage Reducing the Use of Hexavalent galvanized steel plates. Those products efficient paper use. Chromium in Steel Plates are highly evaluated in the Green 1. See page 25. The Ricoh Group is making further efforts Purchasing Network (GPN)* database 2. See page 49. to reduce the use of hexavalent chromium in Japan. in steel plates. The Aficio 1013/RICOH Rewritable Printers and Paper * GPN provides information on eco-friendly products to According to a survey, 70% of the paper promote green-purchasing approaches. FAX 3310L series, which are marketed in http://www.gpndb.jp/ used in offices will never be used again, (Japanese language only) Europe and the United States, use only which means only 30% is stored after hexavalent-chromium-free steel plates*. being printed on. Ricoh, making the most * Refers only to parts designed by the Ricoh Group and does not include those purchased from subcontractors of its exceptional thermal paper technology, developed a rewritable printer and Reducing Environmentally Harmful Substances Contained in Office Equipment (As of March 29, 2002) paper that can be reused more than 200 GPN database rating Hexavalent-chromium- times. The rewritable paper is very similar Lead contained PVC used to free steel plates in texture to ordinary paper and can be in solder cover wires written on using an exclusively developed imagio Neo 220/270 (Aficio 1027) AIII 90% min. red-colored pen. imagio Neo 600/750 AII 85% min.

IPSiO NX730N/630N/630 C IV 90% min. (Aficio AP2610/2610N)

Aficio 1013/RICOH FAX 3310L series* – – 100%

*The Aficio 1013 and RICOH FAX 3310L series are not listed in the GPN database because they are not marketed in Japan.

Reducing Environmentally Harmful Substances Contained in Personal Equipment RDC-i500 (digital camera) • Reduces PVC 80% against that of fiscal 1998 as well as partially lead-free contained in solder • Reduces hexavalent chromium approximately 70% and PVC almost 50% compared MP-9200A (disk drive) to fiscal 1999 values. A rewritable printer and paper • The first Ricoh disk drive to use hexavalent-chromium-free steel plates

32 Environmental Conservation Procurement

Support by Ricoh to stands that supporting suppliers review their businesses so that they strengthen management is a due responsibility that corpora- may become more environment con- tions should carry out. The Ricoh scious. Such a review will be effective quality of the supplier is Group manufacturing in Japan, the in reducing environmental impact and essential for the promotion of Americas, Europe, and China and costs, improve the workplace, and green procurement activities. Taiwan supports its suppliers in encourage suppliers to better them- improving their business operations selves and their sustainable manage- Establishing a partnership with suppli- and product quality. To develop its ment. ers, who are upstream in the manufac- green procurement activities globally, turing process of copiers and printers, the Ricoh Group encourages its sup- is indispensable in realizing sustainable pliers to establish an environmental management. The Ricoh Group under- management system (EMS) and

Green Partnership—The Ricoh Group Regards All Suppliers, Customers, and Recycling Companies as Green Partners in Reducing Environmental Impact and Costs.

• Materials • Metals and resin sorted and • Parts Design, manufacturing, processed inside company • Resource recovery • Ofﬁce furniture and stationery and marketing information Materials manufacturer Recycling companies Green procurement Consigned recycling Green purchasing Ricoh Materials recovery Parts manufacturer companies Recyclable design Support for procurement Procurement of products to be reused and Energy conservation design Ofﬁce furniture and and suppliers reporting of appropriate processing activities Smelters stationery manufacturer Chemical substance control • Support for chemical substance control Product assessment • Recovered metals and • Support for the establishment of an resin environmental management system • Resource recovery • Support for more-resource-conserving

information g

plants n

e t

• Cooperation and support for joint r

k r

development of product designs c

lle

m o

• Equipment C • Used equipment • Supplies • Used supplies • Information disclosure • Concrete measures toward environmental labeling Public green procurement by • Environmental technology national and municipal governments development Corporate green purchasing

Greene purchasing by general consumers (individual choice)

Definition of Ricoh Group Green Results of Green Procurement Activities in Japan (Status of Environmental Management Certification of Suppliers) Purchasing • Green procurement ISO 14001 certification acquired (green purchasing of materials and parts) Preparing to acquire ISO 14001 certification • Green purchasing Certification under Ricoh guidelines acquired (green purchasing of office furniture and Preparing to acquire certification under Ricoh guidelines stationery) • Green marketing September 60 72 95 227 (green purchasing by customers) 1998 3 September Results of Global Green Procurement Activities 79 64 81 227 1999 (Status of Environmental Management Certification of Suppliers) As of March 2002 March 2000 113 62 13 71 259 ISO 14001 certification acquired Certification under Ricoh guidelines acquired Preparing to acquire ISO 14001 certification or certification March under Ricoh guidelines 2001 184 34 47 50 315 The 50 281133 Americas March 309 78 387 2002 Europe 51 1116 168

0 50 100 150 200 250 300 350 400 China and 69 2 121 192 (companies) Taiwan 0 50 100 150 200 (companies)

33 Research and Production Marketing LogisticsAfter-Sales Use Recycling Environmental Development Procurement Service Conservation Social Responsibilities

Japan China and Taiwan

Green Procurement Meeting Starting Green Procurement proposed the development of pallets made In 2001, all Ricoh Group suppliers in In August 2001, the Ricoh Group gave a of recycled plywood. Subsequently, Wah Japan established an EMS based on ISO briefing session on green procurement in Yip received orders for recycled plywood 14001 and Ricoh Group’s guidelines. In China. The Group asked the suppliers of pallets from other companies, and at pres- January 2002, the 1st Ricoh Green Ricoh Asia Industry (Shenzhen) Ltd. ent, the total amount of pallets being pro- Procurement Meeting was held. At the (RAI) and Shanghai Ricoh Facsimile Co., duced that are made of recycled plywood meeting, further cooperation was reques- Ltd., (SRF) to establish their own EMS by or other materials has reached 10,000 units ted for reducing environmental impact the end of fiscal 2003 and said that they per month, accounting for 60% of total throughout all the processes, from devel- would support them. Proite Yanzhou production. The biggest factor that opment and design to recycling. Approxi- Industry Co., Ltd. and Rubbertek improved Wah Yip’s quality was its quick mately 300 top management and business Industrial (Wujiang) Co., Ltd., who were and positive participation in environmental representatives from 260 leading suppliers in charge of procurement for SRF sup- conservation activities. participated in the meeting, three of whom pliers, said that they consider environmen- Also in Shenzhen, demands for ISO reported on the environmental technolo- tal conservation as inevitable and that it 14001 certification are growing among the gies with which they reduced environmen- was an extremely valuable opportunity for industries. In March 2002, Wah Yip was tal impact. them to receive support from the Ricoh in strict adherence to the Ricoh Group’s Group in establishing an EMS. guidelines for green procurement and was awarded ISO 14001 certification.

The 1st Green Procurement Meeting in a hall at the Omori Office, Tokyo A briefing session on green procurement at RAI

The green procurement staff from Wah Yip and RAI Green Procurement of Office Consumables and Supplies Ricoh drafted a “green procurement list” Taiwan Ricoh for office automation (OA) equipment, Taiwan Ricoh Co., Ltd., announced that it office supplies, stationery, sales promotion will take part in green procurement activi- giveaways, and gifts. The Company pro- ties and support suppliers upon request. motes efficient green procurement activi- Also in Taiwan, a higher awareness of ties with the use of a computerized environmental conservation is growing ordering system. This system is utilized at A briefing session on green procurement at SRF among the industries. In March 2002, 21 eight of Ricoh’s nonproduction sites and out of 76 leading suppliers were awarded seven of its production sites. About 80% RAI and Wah Yip ISO 14001 certification. of the office consumables purchased are Wah Yip Pallet Mfg. Ltd., located in Dong procured in this fashion. Ricoh Unitechno Guan, Guangdong Province, has about 250 Co., Ltd., established a Green Supplies employees who manufacture wooden section that is connected online to suppli- pallets, which are indispensable in trans- ers. Ricoh Unitechno’s inventory is auto- porting and storing Ricoh products. The matically checked and restocked when partnership between RAI and Wah Yip needed, thereby eliminating the need to fill had begun before the start of the green out order forms that waste paper. procurement scheme. In April 2000, responding to RAI’s request to reduce environmental impact and costs Wah Yip

34 Environmental Conservation Production (Preventing Global Warming)

Endorsing the Kyoto Scenario of Ricoh’s Reduction in CO2 Emissions up to FY 2010 (Reviewed by BVQI [4]) Protocol, Ricoh promotes a (%) 120 113.5 reduction in total greenhouse 110.5 Improvement in production 105.0 processes, modiﬁcation of air- 102.0 111.5 Improvements conditioning and lighting systems, gas emissions. 100.0 and improvement in employee awareness 100 100.2 15% Introduction of more cost-efﬁcient Cogeneration systems, etc. reduction equipment 89.8 In July 2001, Ricoh joined e-mission Improvement in alternative-energy Wind and solar power, 79.9 biomass, etc. 55, a signature-collecting campaign 80 FY 2001 goal generation that was conducted by companies 75.9 supporting the Kyoto Protocol. Ricoh 60 was the first leading manufacturer in conservation Energy activities 62% Japan to sign and make a commitment reduction 40 for the environment. Ricoh is commit- FY 2010 goal ted to reduce CO2 emissions 13% from the 1990 level by 2010. In fiscal 20 2001, Ricoh achieved a 13.8% reduction in total CO2 emissions from the 0 1990 level, while Japan itself reduced 12.6%. For the purpose of restricting (FY) 1990 2000 2010 total CO2 emissions despite increased Ricoh is aiming at a 13% reduction in total CO2 emis- coefficient set in the environmental assessment pro- production, Ricoh makes further, con- sions from its production and nonproduction sites from gram issued in 1996 by the Environment Agency is tinuous efforts to tackle the prevention the 1990 level by 2010. Converted into CO2 emissions used. per sales unit and taking business expansion into con- of global warming by reducing total sideration, this reduction is calculated to be 62%. (This is a revision of the target value set in fiscal 1998, i.e., 2 CO emissions per sales unit as a tar- 56%.) The fiscal 2001 goal was a 15% reduction, but get in fiscal 2010 62% from the 1990 Ricoh achieved a 24.1% reduction in that term. In calculating CO2 emissions per sales unit, a CO2 emission level. Other efforts to be made include a 10% reduction of greenhouse gases Changes in Ricoh’s Energy Consumption (Reviewed by BVQI [5]) other than CO2 by fiscal 2010 from the Fiscal 1997 Fiscal 1998 Fiscal 1999 Fiscal 2000 Fiscal 2001 1995 level. * The Ricoh Group uses greenhouse gases other than Kerosene (k ) 11,224 11,056 10,054 7,811 6,624 CO2 (i.e., methane, carbon monoxide, HFC, PFC, and SF6) at its production sites. By fiscal 2004, more prod- Heavy oil A (k ) 4,948 3,763 205 171 183 ucts that use these gases are expected to be manufactured, but total emissions will be limited to within a 1% Town gas (1,000 m3) 4,027 4,318 8,474 11,958 11,809 increase from fiscal year 2000 level. Electric power purchased 257,821 247,224 240,883 228,935 222,169 (1,000 kWh)

Energy Consumption in the Americas, Energy Consumption in Japan Europe, and China and Taiwan

Ricoh’s Energy Consumption (CO2 conversion1) Energy Consumption at Production Sites2 in Energy Consumption at Production Sites (Reviewed by BVQI [6]) Japan Other than Ricoh’s (CO2 conversion1) (CO2 conversion* and calories) (Reviewed by BVQI [7]) (Reviewed by BVQI [8])

Calories (TJ) (10,000 tons) (10,000 tons) 800 15 4.0 774 784 13.8% reduction 750 8.1% reduction 748 12 14.55 14.24 700 3.45 3.47

13.52 3.0 3.38 3.37 13.10 3.31 12.85 3.19 CO2 conversion (10,000 tons) 12.27 9 8 2.0 7.75 6 6 7.74 7.03 4 1.0 3 2

0 0 0 (FY) 1990 1997 1998 1999 2000 2001 (FY) 19901997 1998 1999 2000 2001 (FY) 1999 2000 2001

1. Calculated using a CO2 emissions coefficient taken from an examination on greenhouse gas emission calculations issued * Calculations were made based on the CO2 conversion by the Ministry of the Environment coefficients of the countries in each region. 2. From fiscal 2000 and thereafter, more data have been collected from Ricoh Unitechno Co., Ltd., and Ricoh Elemex Co., Ltd. There is no production site in the Asia-Pacific region. The figures are different from those listed in the Ricoh Group Sustainability Report 2001.

35 Research and Production Marketing LogisticsAfter-Sales Use Recycling Environmental Development Procurement Service Conservation Social Responsibilities

Japan The Americas

Installation of Energy-Saving which is better for environmental conser- Reducing Electricity Consumption Equipment vation and cost reduction. From its results, by Half To update the air-conditioning systems Ricoh Microelectronics decided to intro- When the cost of electricity rose from at its manufacturing plants, Ricoh duce the ice thermal storage/chilled water 7 cents/kWh to 12 cents/kWh in California, Microelectronics Co., Ltd., conducted seg- system because, although the initial cost of Ricoh Electronics, Inc., (REI) in the ment environmental accounting to com- the system was ¥34.45 million more than United States began to systematically pare an ice thermal storage/chilled water that of the absorption-type system, it promote energy conservation activities by system with an absorption-type chilled/hot would reduce running cost by 30% and identifying which locations used the most electricity. It accomplished this by exam- water generation system and determine CO2 emissions by 60%. ining the electricity bills of all relevant facilities. REI identified 78 problems that were Estimated Costs Efficiency of an Ice Thermal Storage/Chilled Water System in Environmental Conservation (Segment Environmental Accounting) associated with electricity consumption. Sixty of them were solved by installing Effects EI value Costs Effect on environ- (t/100 Economic benefits mental conservation smaller air compressors and relocating air million yen) Item Main costs Amount Item Amount reduced Item Amount reduced conditioner switches so that the air condi- 34.45 Heat and 146 tioners can be turned on or off as frequent- Business (millions of yen) CO2 Investment (Difference from light (millions 15,015 (t) 8,884.6* area costs emission ly as needed. As a result, REI successfully the conventional expenses of yen) method) reduced its electricity consumption by Effects are calculated using the statutory depreciation period for equipment. half, cutting its electricity bills by $26,195 * Calculated from total investment (¥169 million) in three months.

China and Taiwan

Zero-Electric-Power-Consumption Cell Production Hybrid Production Line Production Line Smaller production lots are more suitable Taiwan Ricoh Co., Ltd., integrated its au- Ricoh Asia Industry Ltd. (RAI) in China for cell production, which is assembled by tomated main production line and manual accepts ideas from employees from time a single person from start to finish. subline into a hybrid production line. This to time on how to reduce energy consump- One idea from an employee led to “a improved the line’s production efficiency, tion. Some of the improvements that revolving table production system” at ease of operation, and energy consumption resulted from this include the introduction Ricoh Component (H.K.) Ltd., in China. and reduced the amount of workspace of a manually-moving production line, Each product is fully assembled with one needed. which improves work efficiency and aims complete turn of the table. The number of at eliminating electricity consumption. products manufactured is automatically calculated by a counter set under the table. This is also a Zero-Electric-Power- Consumption system.

Hybrid production line (Taiwan Ricoh)

Manually operated production line for printers (RAI)

Revolving table production system (Ricoh Component (H.K.) Ltd.)

36 Environmental Conservation Production (Pollution Prevention)

A global approach to reduced, or controlled. In line with its 2004. The Group is striving to estab- identifying and reducing the self-regulation policies, which are lish a system that will provide answers use and emissions of more severe than those set by most to inquiries from customers, original countries, the Ricoh Group endeav- equipment manufacturers (OEMs), chemical substances is being ors to control as well as reduce the and civil organizations regarding their taken. amount of chemicals used and emit- usage of chemical substances. ted. By fiscal 2004, the entire Ricoh * Under the PRTR system, the release of potentially The Ricoh Group established the harmful environmental pollutants into the air, water, Group is to reduce such ozone de- and soil; product contents; and the transfer of waste are Ricoh Environmental and Chemical assessed by business, among other criteria. The results pleting substances 60% compared to are totaled and released by an independent organization. Safety Information System (RECSIS), fiscal 2000 levels. The Group suc- Member countries of the Organization for Economic Cooperation and Development (OECD), such as the which categorizes substances that fall ceeded in eliminating the use of chloric United States, Canada, the U.K., the Netherlands, and under Japan’s Pollutant Release and Japan, have adopted this system. The PRTR Law in organic solvents except dichlorometh- Japan was based on this system. Transfer Register (PRTR*) Law as well In fiscal 1997, Ricoh participated in the PRTR sys- ane, which is used in manufacturing tem that Keidanren (the Federation of Economic as substances that are regulated in Organizations) independently started prior to its legisla- photosensitive materials, by the end of tion by giving a summary of the PRTR data of all Ricoh other parts of the world according to fiscal 2001. The Group is to eliminate business sites. We started to supply the PRTR data of all Ricoh Group companies in fiscal 1998 and began whether they are to be prohibited, the use of dichloromethane by fiscal reducing the consumption and emission of PRTR substances in 1999.

1 Survey Results of PRTR Substances in the Ricoh Group in Fiscal 2001 (Reviewed by BVQI [9]) (tons/year) Substance Environmental Amount Amount Amount Amount Amount Amount Amount Substance*impact Amount discharged into transported transported No. coefficient3 emitted into air public water supply into sewers out of plants consumed treated4 recycled 1 Zinc chloride2 10 36.9 — — — — 35.0 — 1.9 25 Antimony trioxide2 100 11.1 — — — 0.2 10.4 — 0.5 29 4, 4-isopropylidenediphenol 1 9.6 — — — — 9.0 — 0.6 43 Ethylene glycol 1 322.4 2.4 0.0 — — 289.5 1.9 28.6 45 Ethylene glycol monomethyl ether 1 3.9 0.0 — — — 1.3 — 2.2 63 Xylene 10 13.2 11.8 — — 0.1 0.0 0.1 1.2 65 Glyoxal 10 13.6 0.0 0.0 — — 10.3 — 3.3 101 2-ethoxyethyl acetate 100 1.6 0.3 — — 0.8 0.0 — 0.5 134 1,3-dichloro-2-propanol 100 8.7 8.6 0.1 — — — — — 145 Dichloromethane 100 104.3 76.5 — — — 6.8 — 21.1 172 N, N-dimethylformamide 100 28.9 2.2 — — — — — 26.7 181 Thiourea 1 32.1 — — — — 31.1 — 1.0 200 Tetrachloroethylene 100 4.5 0.1 — — — — — 4.4 227 Toluene 10 1,225.4 272.1 — — 1.8 93.1 344.4 514.0 230 Lead 100 11.6 — — — 0.0 7.2 — 4.5 232 Nickel sulfate2 100 5.0 — — — — 2.9 — 2.1 243 Barium sulfate2 1 2.7 — — — 0.1 2.5 — 0.1

* Substances listed are those amounting to at least 1 ton per year. “–” indicates no entry. Changes in the Amount of Ricoh Group’s Target Substances 1. Pursuant to the PRTR Law for Reduction* Used and Discharged (Reviewed by BVQI [10]) 2. The amount of metallic compounds is converted into metal. Amount used Amount discharged 3. The environmental impact coefficient is set by Ricoh, taking toxicity, carcinogenicity, and the 2001 target (set in 1998) possibility of ozone depletion into consideration. (tons/year) 4. Amount treated into non-PRTR substances, i.e. thermal decomposition, catalic decomposition, 60,000 etc. 50,000 44,189 40,000 The amount of Ricoh Group’s target substances for reduction used and discharged is calculated 55,237 49,929

using the following formula. 30,000 47,668

Amount used = Σ {(amount - amount consumed) × environmental impact coefficient} 41,907 20,000 14,974 Amount discharged = Σ {(amount emitted into air + amount discharged into public water supply + 29,494 29,949 30,638

amount discharged into soil) × environmental impact coefficient} 10,000 26,136 21,894 0 12,524 (FY) 1997 1998 1999 2000 2001 * Ricoh Group’s target substances for reduction are defined as the PRTR substances designated by four Electric/Electronic Industrial Associations in Japan between fiscal 1998 and fiscal 2000. Coverage chemical substances by Ricoh may differ slightly from those provided by the PRTR Law.

Changes in the Amount of Substances Discharged Following the Ricoh Group’s Implementation of Pollution Prevention Measures (Reviewed by BVQI [11]) Air (NOx) Air (SOx) Water (BOD)

(tons/year) (tons/year) 100 60 50 80 85 55 40 47 60 41 66 62 30 38 37 40 57 51 20 20 33 30 10 23 19 19 0 0 (FY) 1997 1998 1999 2000 2001(FY) 1997 1998 1999 2000 2001 (FY) 1997 1998 1999 2000 2001

37 Research and Production Marketing LogisticsAfter-Sales Use Recycling Environmental Development Procurement Service Conservation Social Responsibilities

Ricoh Environmental and Chemical

Safety Information System Environmental and Chemical Safety Information System for Business Sites (RECSIS) Laws and regulations There are many substances that, while use- for chemical substances ful in a product’s manufacturing process, have undesirable effects on the environment. The use of these substances needs to Environmental be controlled so that they can be properly PRTR substance database impact database disposed of, collected, or phased out. The Basic information about Ricoh Group established RECSIS as a part chemical substances Efforts to reduce of its environmental impact information chemical substances at business sites system to manage manufacturing processes and monitor data on chemical substances PRTR report Database of the environmental references used, discharged, and disposed of at busi- MSDS* database safeness of chemical substances ness sites. RECISIS contains data on more Chemical management system than 2,000 types of listed chemical sub- Respond to inquiries from other stances, environmental hazards, and emer- organizations gency procedures. RECSIS facilitates the preparation of documents required for application pursuant to the PRTR Law, * Material safety data sheet which started in 2001.

Response to Chloric Organic Solvent Pollution in Soil and Underground Water* (Reviewed by BVQI [12]) * No pollution was discovered near the vicinity of the business sites listed below.

History of the use of relevant substances Current status Soil Contamination Surveys and Gotemba Plant — —

Improvements Fukui Plant — —

All Japanese production and research and Yashiro Plant — — development sites of the Ricoh Group con- Ikeda Plant No pollution ducted surveys to detect the presence of Atsugi Plant No pollution chloric organic solvents in soil and under- Research and Development Center No pollution ground water and reported their findings to General Electronics R&D Center No pollution relevant local governments. The sites that Hatano Plant Cleaning completed needed improvement conducted more de- Numazu Plant, South Plant Cleaning completed tailed surveys and cleanup activities. As a Numazu Plant, North Plant Cleaning completed result, there were no problems in the sur- Omori Office Cleaning underway rounding areas of any site. Heavy metal Ricoh Unitechno — — pollution surveys started in fiscal 2001. Ricoh Microelectronics No pollution Ricoh Optical Industries Cleaning completed

Hasama Ricoh Cleaning completed

Tohoku Ricoh Cleaning underway

Ricoh Elemex, Okazaki Plant Cleaning underway

Ricoh Elemex, Ena Plant Cleaning underway

Ricoh Keiki Cleaning underway

= Used — = Not used

No pollution: No pollution exceeding environmental standards was detected inside or outside the business site. Cleaning completed: Pollution exceeding environmental standards was detected, and the site was cleaned. Cleaning underway: Pollution exceeding environmental standards was detected, and the site is being cleaned. However, the areas surrounding the business site were not affected.

38 Environmental Conservation Production (Zero-Waste-to-Landfill)

The Ricoh Group achieved the goal of Zero-Waste-to- Resource Recovery Rate/Total Amount of Volume of Industrial Water Used by Waste Discharged/Amount of Waste Finally the Ricoh Group Landfill at all production sites Disposed by the Ricoh Group (Reviewed by BVQI [14]) (Reviewed by BVQI [13]) Japan Outside Japan all around the world. Total amount discharged Total amount discharged in Japan outside Japan Total final disposal Total final disposal (10,000 tons) amount in Japan amount outside Japan 500 Resource recovery (%) The Ricoh Group promotes Zero- rate in Japan 94.7 99.6 89.6 100 85.5 412 99.5 Waste-to-Landfill activities as a part of 400 80 373 61.1 76.6 82.2 339 its environmental management system Resource recovery rate 60 335 330 (t) outside Japan 300 by efficiently using resources, improv- 20,000

ing the efficiency of production lines, 21,565 15,000 200 19,247 18,983 18,584 17,745 reducing waste disposal costs, and 17,934 17,445 improving corporate quality by promot- 10,000 16,381 100

5,000 4,146

ing employee awareness of environ- 2,913 2,790 1,939 8,399

1,006 47 62 97 39 41 40 mental conservation. Ricoh UK 0 0 Products Ltd. in the U.K. achieved (FY) 1997 1998 1999 2000 2001 (FY) 1997 1998 1999 2000 2001 Resource recovery rate: Amount of resources recovered/amount of resources discharged Zero-Waste-to-Landfill in September Amount of waste discharged: Amount of waste discharged from business sites (including residue after onsite processing) 2001, and Ricoh Asia Industry Ltd. Amount of waste finally disposed: Amount of waste used in landfills and incinerated out of the total amount of waste discharged (RAI) in China and Taiwan Ricoh Co., Ltd.1, achieved it in March 2002. With this, the Ricoh Group has achieved Zero-Waste-to-Landfill at all production Zero-Waste-to-Landfill age), from private sewage systems (level sites2 in Japan, the Americas, Europe, by the Ricoh Group 3). We regard cases in which waste is not and China and Taiwan. In Ricoh in The Ricoh Group classifies zero waste utilized as an energy resource and simply Japan, after the Aoyama Office in (100% resource recovery rate and no incinerated as just a disposal of waste. The Tokyo achieved Zero-Waste-to-Landfill waste used as landfill) into three levels. Ricoh Group aims at achieving perfect re- in fiscal 2000, Ricoh Shinagawa System Although zero waste is roughly defined as source recycling by reducing, reusing, and Center, Ginza Office, Toda Technical no industrial waste being generated (level recycling resources as well as the thermal Center, and the Shin-Yokohama 1), the Ricoh Group aims at also eliminat- recovery of waste. Office did the same in fiscal 2001, as ing general waste (level 2) and household did 46 sites of Ricoh Group service solid waste, such as sludge (e.g., raw sew- companies3 and two sites of sales 4 companies . In fiscal 2002, the Ricoh Definition of Zero-Waste-to- Group will continue its efforts to Landfill Levels by the Ricoh Group Level 3 Zero-Waste-to-Landfill No landfill of industrial waste + general waste + reduce the environmental impact of household solid waste (sludge, such as raw What Ricoh considers sewage, from private sewage systems) society as a whole and will further pro- Zero-Waste-to-Landfill mote sustainable management by Level 2 No landfill of industrial waste + applying its Zero-Waste-to-Landfill general waste (including waste generated by restaurants) know-how. What the general public considers Zero-Waste-to-Landfill Level 1 1. There is no infrastructure in Taiwan for the recovery of coating sludge, which is excluded from the Zero- No landfill of industrial waste Waste- to-Landfill efforts. (Coating sludge is subject to isolated landfill by disposal companies officially designated.) 2. Ricoh’s production sites in Japan and manufacturing subsidiaries in Japan, the Americas, Europe, and China and Taiwan in which Ricoh owns more than 50% voting rights are included. There are no manufacturing subsidiaries in the Asia-Pacific region.

Staff assigned to the Zero-Waste-to-Landfill campaign at Staff assigned to the Zero-Waste-to-Landfill campaign at REI, Georgia Plant, in the United States and the campaign Ricoh Industrial de Mexico (RIM) in Mexico; RIM achieved mascot, Zero Hero; REI achieved Zero-Waste-to-Landfill in Zero-Waste-to-Landfill in March 2001. March 2001.

39 Research and Production Marketing LogisticsAfter-Sales Use Recycling Environmental Development Procurement Service Conservation Social Responsibilities

Japan China and Taiwan

100% Resource Recovery of Used Environmental Accounting of Zero-Waste-to-Landfill at RAI Products the Semiconductor-Manufacturing Ricoh Asia Industry Ltd. (RAI) strives Ricoh Elemex Corporation, which manu- Yashiro Plant to achieve Zero-Waste-to-Landfill as one factures office equipment, clocks, watches, In fiscal 2001, the Yashiro Plant intro- means of promoting employee awareness and water and gas meters manufacturer, duced an inverter control system and a of environmental conservation and im- worked detailed disassembly and sorting system that recycles the hydrofluoric acid proving labor productivity. It contributed of used water meters and achieved a 100% used in the etching process of semiconduc- to boosting the spirit of the employees and resource recovery rate. Ricoh Elemex is tors. The segment environmental account- created a better atmosphere at the work- making continuous efforts to achieve ing shown below reveals that these place. RAI opened an in-house recycling systems significantly contributed to more-advanced resource recovery while shop for copier and printer toner bottles working on recyclable designs for gas environmental conservation and cost and installed wastewater purification meters. reduction. equipment to reduce biochemical oxygen

Estimated Costs and Effects of Semiconductor Manufacturing at the Yashiro Plant demand (BOD)*. When RAI discovered in Environmental Conservation (Segment Environmental Accounting) (Unit: millions of yen) that water pollution was being caused Effects* EI value Costs Method of conserving Economic benefit Effect on environmental conservation (t/100 largely in part by leftovers from the cafe- energy or resources Reduced heat Reduced Reduced million yen) Investment Maintenance and light Subsidies teria, it reviewed its menu. expenses CO2 emissions(t) discharged waste(t) Inverter control system 131.5 1.5 177.5 5,762 — * BOD is the quantity of oxygen used by microorganisms in Hydrofluoric acid recycling 120.0 33.5 97.8 6,324 1,500 3,807.8 the biodegradation of organic matter and is used to measure 100.0 Filtration device 26.5 5.6 4.6 148 — (CO2) the amount of pollution in rivers and lakes. Free-cooling system 25.8 0.6 27.1 904 — Total 303.8 41.2 307.0 100.0 13,137 1,500 * Effects are calculated using the statutory depreciation period for equipment.

Europe

Ricoh UK Products center, through which the company strives To promote employee awareness of envi- to eliminate the production of waste by ronmental conservation, Ricoh UK disassembling products in order to reuse Products, Ltd., added “environmental their parts. Other efforts include leading in conservation” to the list of items in the community activities by teaching compa- Staff assigned to the zero-waste-to-landfill campaign at RAI individual and divisional performance nies and schools in the neighborhood evaluation and opened an on-site recycling about waste management and how to Zero-Waste-to-Landfill establish a recycling system. at Taiwan Ricoh In January 2001, Taiwan Ricoh Co., Ltd., Environmental Accounting of started a waste reduction campaign and the Cleaning Process began detailed sorting simultaneously. In fiscal 2000, Ricoh Industrie France S.A. Employees determined the recycling switched from water to air pressure to routes by themselves to increase the

Staff assigned to the clean its thermal paper production line. number of types of sorting from 17 to 35. zero-waste-to-landfill Along with water recycling by steam col- campaign at Ricoh Thus, Taiwan Ricoh achieved advanced UK Products lection, change in process reduced the recycling. company’s annual water consumption 43.4%, down from 25,353 m3 per year. Ricoh Industrie France saved on the cost Staff assigned to community environmental conservation activities of wastewater disposal using this system.

Environmental Conservation Costs and Effects of the Cleaning Process in Ricoh Industrie France (Segment Environmental Accounting) (Unit: millions of yen) Effects* EI value Costs (m3/100 Economic benefit Effect on environmental conservation million yen t/100 Item Main cost Amount Reduction Amount Reduction Amount million yen) 62,072 Investment 34.8 Industrial water 1.6Industrial water 21,601 (m3) (Industrial Business water) area cost Waste disposal Waste disposal 0.0 98.2 6,085 (t) 17,486 Maintenance (Waste) expense amount Staff assigned to the zero-waste-to-landfill campaign * Effects are calculated for three years, starting from fiscal 1999. at Taiwan Ricoh

40 Environmental Conservation Marketing

Enhancing green marketing The Ricoh Group actively engages Type II Environmental Labels and contributing to reducing in developing and manufacturing prod- Type II environmental labels are given to environmental impact that ucts with less environmental impact. It products that satisfy standards indepen- works continuously to reduce the envi- affects the whole world dently set by each company. The Ricoh ronmental impact imposed on the cus- Group set its own standards for recyclable tomer and the world in general. designs, the reuse rate of parts, and envi- The movement toward green procure- Furthermore, the Group takes the lead ronmental safety. The Group established ment is rising in Scandinavia and EU in disclosing the environmental infor- countries as well as in Japan and mation of products by participating in the Recycle Label and has given it to the North America. The idea that gives a establishing standards for environmen- Spirio 5000RM, Spirio 7210RM series, priority to purchase products with less tal labels in many countries. Spirio 8210RM, and Spirio 105BB, which environmental impact from companies it currently markets, as well as the imagio practicing environmental conservation Type I Environmental Labels MF 6550RC*, which has been on the activities has emerged and led to the Type I environmental labels have been es- creation of laws in each country. In market since June 2002. tablished in countries and regions pursuant Japan, the Law Concerning the * Only available for rent. to ISO 14024 standards. They make it easy Promotion of the Procurement of for the customer to see that the product has Eco-Friendly Goods and Services by less environmental impact. Such labels Criteria for the Ricoh Recycle the State and Other Entities (Law on include the Eco Mark (Japan), Blue Angel Label (Summary) Promoting Green Purchasing) came New Machines Mark (Germany), Nordic Swan Mark into effect in April 2001. Canada es- 1. The product satisfies (Scandinavia), and the Environmental Ricoh’s recyclable tablished a tender system called the Choice Program (ECP)(Canada). Ricoh design standards. Environmental Choice Program, in 2. Reused* parts account obtained these international Type I envi- which winners are given up to a 10% for 40% or more of the ronmental labels to efficiently promote product’s mass (mass ratio). premium if they enthusiastically take global green marketing. Further efforts 3. Toner cartridges used in the product an environmental approach in procure- are recyclable, and a system for recy- are being made to establish standards that ment for government organizations. cling them has been established. enable a significant reduction in environ- 4. A system for collecting and processing This system is also used by private mental impact by extending Eco Mark used products as well as collecting sectors. used cartridges and containers has applications to include printers. been established. 5. At least 90% of the product’s mass (mass ratio) can be recovered and recycled in Ricoh’s recycling system. 6. Consideration is given to environmental International Environmental Labels Environmental Choice Program safety, as stipulated in Ricoh’s for Which the Ricoh Group Qualifies (ECP) Mark*/Canada standards. ECP is a national program established in Eco Mark*/Japan * Reuse means to use something for the same Canada in 1995 and operated by a private purpose in its original form. The Eco Mark is a labeling system that the company called Terra Choice Reuse rate (%) = Maximum mass of parts Japan Environment Association uses. Its Environmental Services Inc. reused/mass of products in which reused parts applications were extended to include print- The program gives a 3% are used ers in 2001. Ricoh was awarded this mark premium to the Canadian government on its purchases. Recycled Machines for its copiers and printers. Eighteen models 1. Reused parts account for 80% or more in the IPSiO series of printers were awarded this mark pursuant of the product’s mass (mass ratio). to the extended Nordic Swan Mark*/Scandinavia applications. The Nordic Swan Mark is an eco-label system that has been used by Type III Environmental Impact five Scandinavian countries—Norway, Sweden, Disclosure Finland, Iceland, and Denmark—since 1989. Type III Environmental Impact Disclosure An example of the Eco Mark on an imagio In 1997, seven different aims at disclosing quantitative information Neo 220/270 series model models of Ricoh copiers on the environmental impact of products (certification no. 01117005) were awarded this mark. so that customers are able to choose prod- Blue Angel Mark* (BAM)/Germany International Energy Star Mark/ ucts with less environmental impact. The Japan, the United States, Europe, BAM certification standards are specified in etc. Ricoh Group was the first to disclose detail by the German Federal Environment Agency throughout the production process, Only products with power consumption product LCA* information pursuant to from manufacturing to the below a certain level while in standby mode Type III Environmental Impact Disclosure. disposal of applicable can be sold with the products. As of fiscal 2002, International Energy Star For a more timely disclosure, the Group Ricoh’s facsimiles, copiers, Mark. All of Ricoh makes efforts to obtain certification for the and printers are all BAM Group’s applicable prod- certified. ucts have been awarded information collection and disclosure sys- this mark. tem itself. * Type I Environmental Labels * See page 27.

41 Research and Production Marketing LogisticsAfter-Sales Use Recycling Environmental Development Procurement Service Conservation Social Responsibilities

Japan

ISO 14001 Certification Awarded to Using Offices as Showrooms Eco Mark on Printers Sites of Japanese Sales Companies Ricoh’s sales companies, including Mie In October 2001, new Eco Mark standards In December 2001, 410 sites of 49 Ricoh Ricoh Co., Ltd.; Aichi Ricoh Co., Ltd.; were set for printers. The new standards Group companies were awarded ISO and Kanagawa Ricoh Co., Ltd., estab- are more suitable for environmental 14001 certification at the same time. lished a new “live office” system to impact reduction than previous ones, A highly environment-conscious sales enhance Ricoh’s green marketing scheme. which aimed only at reducing waste, representative group comprising approxi- The system promotes the computerization because they take into consideration the mately 18,000 employees was established. of offices, where customers are invited to product’s entire life cycle, from resource The Ricoh group strives to reduce the en- see an example of a paperless office in procurement to recycling. Ricoh was vironmental impact of society as a whole actual operation as well as experience awarded the Eco Mark for 18 models in by providing customers with products and simulated cost reductions that result from the IPSiO series, including those already services that have less environmental computerization. Aichi Ricoh launched a on market. impact and knowledge of environmental new service that places “green boxes” in conservation activities. the customer’s office for the collection of To prepare for certification, the Ricoh used paper to be recycled. Group centralized all relevant information throughout the country by establishing a database that included approximately 300,000 pages of screening documents. Computerized screening for registration, which took only four days to complete, was first conducted in Japan. The IPSiO Color 8150 was one of 18 models awarded the Eco Mark. Internal Information System Management and Operation Chart Green Solution

Environmental Sustainable management is a current issue Conservation Promotion that is attracting the attention of most Office A “live office” in Mie Ricoh companies and organizations. In January

Person in 2002, Ricoh started developing a green charge of the EMS database environmental solution system consisting of products and for marketing management system services that are useful in reducing the environmental impact of customers. Ricoh

Person in Person in Person in helps customers solve various manage- charge of the charge of the charge of the promotion of promotion of promotion of ment issues by providing know-how and environmental environmental environmental conservation conservation conservation systems that the company acquired through its environmental conservation Aichi Ricoh environmental conservation staff activities. Such help includes knowledge Employees Employees Employees and a “green box” on marketing products that promote energy and resource conservation, obtain- ing ISO 14001 certification, promoting Zero-Waste-to-Landfill Campaign zero waste to landfill at plants, and a at Sales Companies recycling system for used products. Fukui Ricoh Co., Ltd., achieved Zero- Waste-to-Landfill in fiscal 2000, and Iwate Ricoh Co., Ltd., followed suit in March 2002. Under the slogan “Waste when mixed but resource when sorted,” Iwate Ricoh conducted a campaign that focused on detailed waste sorting as well as office computerization with a less- paper system. The company thus achieved level 2 Zero-Waste-to-Landfill*.

* See page 39.

42 story appeared in the green purchasing panies (Ricoh Europe B.V., Ricoh Austria The Americas guidebook for copiers as a good example GmbH, Ricoh Europe B.V. (Belgium of green purchasing in the United States. Branch), Ricoh Deutschland GmbH, Ricoh Awareness Promotion and Green NASA cooperated with the EPA in pro- Hungary Kft., Ricoh Italia S.p.A., Ricoh Marketing moting green purchasing and became a Nederland B.V., Ricoh UK Ltd., and five To make environmental conservation model government organization. companies mentioned above) were award- activities more effective, not only must ed ISO 14001 certification. There are only employee awareness be encouraged but a few sales companies qualified for ISO customer participation in the activities Canada 14001 in Europe, even though it is known must be allowed. Ricoh Corporation, the The Toronto District School Board as a highly environment-conscious soci- regional sales headquarter for the Ameri- and Ricoh Canada ety. Therefore, this effort will result in the cas, is developing green marketing activi- Ricoh Canada Inc. concluded a big sales development of more-effective green ties to promote employee and customer contract for 1,400 machines with the marketing. awareness of environmental conservation Toronto District School Board (TDSB), programs and eco-friendly products in which is the third largest board of educa- Establishment of an Environmental order to conduct the activities more effec- tion in North America. The company suc- Database tively. The company developed the Envi- cessfully convinced the board of the Ricoh Europe B.V., the regional sales ronmental Edge Kit, an environmental environmental performance of the new headquarter for Europe, the Middle East, awareness promotion tool to promote Aficio series of printers (sold as the and Africa, established an environmental green marketing that can be used in show- imagio Neo series in Japan), which are database for the entire Ricoh Group to rooms and presentations to customers. user-friendly and have significant energy- answer customers’ inquiries. During the saving capabilities. Ricoh Canada went on period from June through August 2001, to convince the Toronto District School the database was accessed more than Board of the Ricoh Group’s achievements 1,500 times. The increased number of cus- in environmental conservation activities. tomer inquiries about environmental issues The most important achievement that proved growing interest in environmental Ricoh Canada accomplished was in pre- conservation in Europe. At present, the establishment of a database is a basic Screen shot of paring the board to present a good model the Environment of green purchasing to board staff, stu- requisite for government authorities and Edge Kit dents and their parents, and to the com- larger companies in some European coun- munity in general and to show the board of tries to demonstrate their environmental education’s sense of social responsibility. conservation efforts in their tenders and An environmental booth in the show- marketing tools. room at Ricoh Corporation Sweden The United States Volvo, Statskontoret (STAKO), NASA and Lanier Worldwide and Carl Lamm Lanier Worldwide, Inc., is a sales com- In Sweden, the world leader in environ- pany that joined the Ricoh Group in 2001. mental conservation activities, sales com- When Lanier submitted a tender to the panies, customers, and government National Aeronautics and Space Members of the Toronto District School Board and Ricoh Canada staff organizations work together to set chal- Administration (NASA), it was asked to lenging goals for environmental conserva- explain its corporate responsibility, to Europe tion. As an example, sales companies and which Lanier described the Ricoh Group’s manufacturers are required to be ISO innovative technological developments; ISO 14001 Certification Awarded to 14001 certified before submitting tenders. positive support of international energy All 13 Ricoh Sales Companies Carl Lamm AB is a Ricoh distributor organizations, including the International In March 2002, Ricoh France S.A., Ricoh operating in 43 cities in Sweden. The com- Energy Agency (IEA) and Environmental Norge A.S., Ricoh Europe B.V. (Portugal pany markets environment-conscious Protection Agency (EPA); and eminent Branch), Ricoh Espana S.A., and Ricoh products and promotes customer aware- social reputation in promoting awareness. Polska Sp.zo.o. qualified for the final ness of environmental conservation by Lanier Worldwide eventually got a supe- screening for ISO 14001 certification. marketing products with less environmen- rior position for their tender, and the whole Accordingly, all 13 of Ricoh’s sales com- tal impact and encouraging customers to

43 Research and Production Marketing LogisticsAfter-Sales Use Recycling Environmental Development Procurement Service Conservation Social Responsibilities

Christmas gifts. More customers now send back used toner cartridges for recy- The Netherlands answer “yes” when asked if they consider cling. Volvo, a manufacturer of trucks and Marketing of Reconditioned environment-friendliness when purchasing construction equipment and one of Carl Machines by NRG Benelux OA equipment. Lamm’s customers, and STAKO, a govern- NRG Benelux B.V., a sales company, ment procurement organization, both prepare collects machines and toner cartridges and their own independent guidelines for green markets the reconditioned machines*. The purchasing that require them to comply with divisions in charge of after-sales service, their guidelines in submitting tenders. Carl production, and marketing efficiently Lamm and the Ricoh Group successfully work together to market reconditioned market a variety of products by satisfying machines in response to market needs. their guidelines, which brought remarkable Sales of both new and reconditioned sales performances. machines are expanding. Press conference held at a greenhouse * See page 53. in a zoo in Budapest

China and Taiwan Members of Volvo, Carl Lamm, and Ricoh Europe Hong Kong staff Energy Label Scheme In Hong Kong, an energy label scheme for analog and digital copiers was established. A reconditioned machine for a copy service Ricoh Hong Kong Ltd. helped establish area of a supermarket the scheme, which provides information on energy consumption so that customers Hungary can choose more energy efficient products. An environmental conservation meeting Sales Promotion Activities held by STAKO Other schemes for printers are to be by Ricoh Hungary established in the future. Germany In Hungary, in Eastern Europe, people are Continental and NRG Deutschland becoming increasingly aware of environ- NRG Deutschland GmbH is a sales mental conservation. In June 2001, Ricoh company in Germany. When NRG Hungary Kft. decided to develop its busi- Asia-Pacific Region Deutschland successfully concluded an ness activities under the slogan “A Friend agreement with the Ministry of Justice of of the Environment.” Ricoh Hungary New Zealand Germany for the sale of more than 200 invited reporters to a greenhouse in a zoo Ricoh New Zealand copiers, it became big news because there in Budapest for a press conference. In its By promoting environmental conservation were only a few sales companies that were environmental conservation campaign in activities, Ricoh New Zealand Ltd. won a ISO 14001 certified in Germany. When autumn, the company publicized Ricoh’s bid to sell 23 units to governmental divi- Continental AG, the fourth worldwide- commitment to the environment by post- sions in charge of environmental issues. largest tire manufacturer decided to install ing 400 signboards and placing advertise- This attracted inquiries from other divi- our products, ISO 14001 certification was ments in newspapers and economic or sions. In New Zealand, environmental again one of key factors for their decision. business magazines as well as on Web issues are becoming important social sites. Ricoh Hungary supports approxi- issues, and Ricoh New Zealand is continu- mately 15 dealers and 30 sales companies ing its efforts to closely unite business and encourages them to give the same activities with environmental conservation. level of customer service that Ricoh Hungary does. Ricoh Hungary underlined the Group’s commitment to environmental conservation by preparing collection boxes for used copy paper, giving customers zoo admission tickets, and handing out statio- Members of Continental, NRG Deutschland, and Ricoh Europe staff nery made from eco-friendly materials as

44 Environmental Conservation Logistics

Improvements in the supply

chain management (SCM) The Supply Chain Management (SCM) System, Combining “Arterial Logistics” and “Venous Logistics” system, including “venous Direct shipment from plant to customer logistics,” are being carried (In the past, products were stored off-site at sales companies out all over the world. or other places and shipped to the customer.) Arterial logistics To reduce the environmental impact in Plants Customers transportation, the Ricoh Group, led by Venous logistics Ricoh Logistics System Co., Ltd., is striving to improve its worldwide trans- Lead time reduced through • Environmental impact reduced through the use • Lead time for delivery reduced internal kitting (using reusable of reusable racks and resource-recirculating without on-site kitting portation system. In Japan, with deliv- racks) and transportation effi- eco-packaging • Packaging material wastes ciency improved through direct • The quality of collected products improved reduced through the use of ery seen as the core of “arterial shipping through direct collection reusable racks and resource- recirculating eco-packaging logistics,” a direct shipment system, from plant to customer, was established. Looking at “venous logistics” as a part of the SCM system, the recy- Reusable Racks cling information system1 was merged For the bulk delivery of printers and other Europe with the marketing order entry system equipment that comes with optional attach- to improve the profitability of the recy- ments, Ricoh developed adjustable pipe- France cling business by integrating the arte- framed reusable racks. Ricoh had its plants Improvements in Transportation rial and “venous logistics” into one arrange for optional equipment and pre- Routes to Production Sites unified system. If used products are pare an easier production plan based on Ricoh Industrie France S.A. did a modal left outside and get wet, they will not the order receipt information of sales com- shift in the logistics from one based on be able to be recovered. Used prod- panies. This resulted in a significant reduc- land transportation to one based on ship- ucts are therefore collected directly tion in lead-time and environmental impact ping on the river. In the past, assembly from the customer to improve their during delivery. In the first half of fiscal parts were transported from Japan to chances of being reused. One of the 2001, 2,943 machines were shipped in reus- Rotterdam in the Netherlands by sea and activities that were carried out in 2001 able racks, reducing packaging costs by at then to Ricoh Industrie France by truck. was turning collection centers into least ¥8 million. The use of trucks was replaced by vessels Green Centers2. going up the Rhine River. As a result, the 1. See page 51. company successfully reduced CO2 emis- 2. See page 52. sions to 40% of past levels.

Japan China and Taiwan

Resource-Recirculating Eco-Packaging China Improvements in Loadage and In 2000, Ricoh developed a reusable eco- Reusable pipe-framed racks packaging made of recycled plastic. Reus- Transportation Routes ing eco-packaging was found to be profit- Ricoh Express (S.Z) Warehouse Ltd., a able in terms of environmental impact and logistics company in China, reduced the cost. number of trucks by approximately 50% by improving transportation routes and establishing a more efficient loading plan. Some improvements, such as reducing truck transportation, were made to reduce costs and environmental impact.

Eco-packaging (left) developed in 1994 and resource- recirculating eco-packaging developed in 2000

45 Research and Environmental Conservation Production Marketing Logistics After-Sales Use Recycling Environmental Development Procurement Service Conservation Social After-Sales Service Responsibilities

Promoting Zero-Waste-to- Landfill and looking at the customer’s office as a responsibility

Ricoh Technosystems Co., Ltd., a Japanese service company in the Ricoh Group, promotes Zero-Waste- Waste-sorting area Environmental conservation activities help keep company vehicles clean and orderly. to-Landfill as a key activity in improv- Energy Conservation Activities ing environmental conservation and Ricoh Technosystems focused on saving customer satisfaction. Zero waste was Europe fuel used in company vehicles and elec- achieved by 46 of the company’s sites tricity at offices. To reduce fuel consump- by the end of fiscal 2001, and all 233 Ricoh France tion, the company made its employees sites are to achieve the same by Ricoh France S.A., a sales and after-sales aware of the need to turn the vehicle’s December 2002. One of the most service company in France, promotes engine off while at a complete stop and is important areas of service companies duplex copying and detailed wastepaper planning to replace gasoline vehicles with is equipment maintenance. For this sorting to reduce paper consumption. The electric vehicles. The company designated reason, Ricoh Technosystems con- company created “Duplex Copying Saves places where the lights can remain on for siders the customer’s office as a part the Earth” posters to promote employee the morning, afternoon, and/or evening. of its responsibility and brings back all awareness of environment-consciousness. The layout of the office was also changed, replaced parts to be recycled. The A PDA system determines the most effi- placing the clerical staff’s desks together company also instructs their service cient route for service and sales vehicles because service engineers seldom sit at engineers to leave the customer’s to take in order to reduce environmental their desks during the day. office cleaner than when they found it. impact. The employees are developing a variety of activities in regions other than Japan. Reducing Paper Consumption Asia-Pacific Region To reduce paper consumption, personal computers and projectors are being used Ricoh New Zealand to replace paper used internally or for pres- Ricoh New Zealand Limited, a sales and entations, and duplex copying is being after-sales service company in New strongly urged. The Chiba Branch reduced Zealand, uses a PDA system to operate its paper consumption 10% in fiscal 2001 service vehicles more efficiently and from the previous year. reduce environmental impact.

The staff of the Chiba Branch, Ricoh Technosystems Promoting Employee Awareness of Environmental Conservation and Japan Spreading Know-How Standards were set for sorting waste mate- Zero-Waste-to-Landfill Activities rials and keeping the workplace and com- In the past, service engineers would bring pany vehicles clean and orderly. Photos of PDA system for used and replaced parts back with them to service vehicle how offices and vehicles should look were operation their sites for disposal. Ricoh, however, taken by digital camera and compiled into established a recycling scheme to collect an exclusive database that all employees used parts and achieved zero waste for can use for reference. The company estab- those parts. Ricoh promoted employee lished other databases on recycling and awareness of the need to reduce the ISO to encourage employees to share amount of waste being discharged and to success stories or opinions. thoroughly sort waste while looking for new recycling routes. Ricoh bought recycling equipment to dispose of household solid waste, including used tea leaves.

46 Environmental Conservation Use

Activities reducing

environmental impact with Changes in Energy Consumption of Black- Changes in Energy Consumption of Color and-White Copiers and Multifunctional Copiers Copiers and Multifunctional Copiers electric power and paper Black-and-white plain-paper copiers, excluding those that accommodate (Reviewed by BVQI [15]) (Reviewed by BVQI [16]) wide-format paper efficient machines Performance Performance 2001 target (set in 1998) 2001 target (set in 1998) [(Wh/h)/cpm] [(Wh/h)/cpm] Office automation (OA) equipment, 6.0 15.0 including copiers, printers, and facsi- 5.0 12.0 14.75 3.61 14.44 4.0 5.15 4.89 12.86 4.79 4.72 miles, require electric power, emitting 4.61 9.0 10.33 11.74 3.0 9.81 CO2 in the process of generation, 6.0

2.0 7.62

which causes a major environmental 2.41 1.0 3.0 impact. In order to prevent global 0.0 0.0 warming, Ricoh strives to improve not (FY) 1996 1997 1998 1999 2000 2001 (FY) 1996 1997 1998 1999 2000 2001 only the energy conservation capabili- *In fiscal 2001, the Aficio 1035/1045 and 1022/1027 series (imagio Neo 350/450 and 220/270 series, ties of its products, but also their respectively), which incorporates quick start-up (QSU) technology (see page 48), significantly usability so that more people will use contributed to the achievement of our goal. them, thereby effectively reducing the Energy conservation values for copiers are calculated as follows: total environmental impact of the CO2 Σ [1/ × the number of units marketed]/ emission caused by electric power Σ the number of units marketed generation. Ricoh uses advanced 1. Energy consumption efficiency was measured in accordance with the Ministry of Economy, Trade and Industry’s Law in Japan Concerning the Rational Use of Energy. energy-saving technologies in its core 2. Copying speed = copies per minute (cpm) products to achieve this. Another Data for multifunctional black-and-white copiers, color copiers and multifunctional important issue is the efficient use of copiers are pursuant to the measurement standard for energy consumption efﬁciency of the Law Concerning the Rational Use of Energy. paper. Ricoh is proposing a variety of systems that would reduce paper con- Changes in Energy Consumption of Facsimiles Changes in Energy Consumption of sumption by improving the quality of (including multifunctional copiers) Black-and-White and Color Printers duplex copying and using computer Performance (Reviewed by BVQI [17])Performance (Reviewed by BVQI [18]) 2001 target (set in 1998) 2001 target (set in 1998) technology applications. [(W)/ppm] [(W)/ppm] 3.5 1.6 1.4 3.0 3.35 2.35 1.2 1.52 1.06 2.5 2.93 Energy Conservation 1.0 1.11 2.0 2.47 It is important for office equipment, 0.8

1.5 2.00 0.6 0.81 including copiers, to use less energy 0.80 1.0 0.4 while in standby mode. Copiers and 0.5 0.35 0.2 0.68 printers are generally left on during 0.0 0.0 (FY) 1996 1997 1998 1999 2000 2001 (FY) 1996 1999 2000 2001 office hours while facsimiles are left on 24 hours a day. Ricoh succeeded in Energy conservation values for facsimiles are calculated as follows: Σ [/ × the number of significantly reducing the amount of units marketed]/Σ the number of units marketed electricity consumed by its digital 1. Energy Star energy consumption in standby mode = energy consumption in standby mode pursuant to the standards of the International Energy Star Program. multifunctional copiers, namely, the 2. Printing speed = print per minute (ppm)

Aficio 1035/1045 and 1022/1027 series * Data for the four charts above are calculated based on the number of units marketed in Japan. (imagio Neo 350/450 and 220/270 series, respectively). The series is even more user-friendly with its quick recovery from energy-saving mode.

Aficio1022/1027 series (imagio Neo 220/270 series)

47 Research and Production Marketing Logistics After-Sales Use Recycling Environmental Development Procurement Service Conservation Social Responsibilities

Energy-Saving, User-Friendly (A) Conventional Energy QSU Technology Used in the Aficio General Comparison of Energy Consumption of Copiers Star copier (imagio Neo) (B) QSU copier Warm-up Electric power saved when QSU technology is Ricoh’s unique tech- 1. Time it takes (A) to enter compared with conventional Watts standby mode machines nology that enables machines to save 1,000 t1 ≤ 60 minutes (A) and (B) (Pursuant to Energy Star (B) (A) energy and start up quickly when needed. Copying standards) Copying Copying ≤ The technology was first used in the [20 < CPM 44] 2. Time it takes (B) to enter Aficio 1035/1045 (imagio Neo 350/450) standby mode 10 seconds ≤ t2 ≤ 60 seconds series digital multifunctional copier, which was marketed in fiscal 2000. The Aficio 1 1022/1027 (imagio Neo 220/270) series, 100 t 1 marketed in fiscal 2001 with the energy t 22 consumption efficiency of 29 Wh, improved an approximately 40% energy consumption efficiency compared to the (A) Standby mode Aficio 220/270 (imagio MF2230/2730). The Aficio 1022/1027 (imagio Neo (B) Standby mode 220/270) needs only 10 seconds to begin 7 operating from energy-saving (standby) Machine turned on (A) (B) Machine turned on (A)(B) Restart mode. Time The Aficio 1035/1045 and 1022/1027 (imagio Neo An energy-saving fusing unit realizes low energy 350/450 and 220/270, respectively) require only 7 W consumption while in operation as well. Received the Energy-Saving Award while in standby mode and only 10 seconds to begin for Two Consecutive Years operating from that mode. At the 12th Energy-Saving Award in fiscal 2001, the imagio Neo 220/270 (Aficio Annual Reduction in CO2 1022/1027) series digital multifunctional discovered through segment environmen- Emissions of Approximately copier was awarded the Energy Conserva- tal accounting that Ricoh’s development 16,000 Tons Worldwide tion Chairman’s Prize in Japan. This was of energy-saving products roughly In fiscal 2001, Ricoh estimated to reduce the second year in a row that Ricoh won an corresponds to a cost reduction of ¥1,048 CO2 emissions of products marketed by award. The previous year, the Company re- million. the Ricoh Group worldwide approximately ceived the Minister of International Trade 16,161 tons by incorporating QSU tech- and Industry Prize for the imagio Neo 350 nology into its digital multifunctional cop- Environmental Conservation Costs and Effects (Aficio 1035) series. Major factors that con- in the Development of Products Incorporating iers, namely, the Aficio 1035/1045 and QSU Technology (FY 2001) tributed to winning this year’s award include (Reviewed by BVQI [19]) 1022/1027 series (imagio Neo 350/450 㧔t㧕 1) the extensive use of QSU technology in 60,000 and 220/270 series, respectively). The Reduction in CO2 popular products to reduce the environ- 50,000 emissions thanks figure on the right shows a comparison of to machines mental impact of society as a whole, 2) re- 40,000 16,161 incorporating QSU annual CO2 emissions on the assumption 53,996 technology ducing resource consumption by using 30,000 that QSU technology not incorporated. recycled parts, and 3) significantly reducing 20,000 37,835 The reduction is equal to ¥1,041 million chemical substances that influence the 10,000 in electricity bills for customers. It was 0 environment*. Without QSU With QSU technology technology * See page 32. Environmental Conservation Costs and Effects in Developing QSU Products (Segment Environmental Accounting)

Effects EI value Costs Economic benefit Effect on (t/100 environmental million yen) ItemMain cost Amount Corporate effect Customer effect conservation Development of 400 Reduced energy- Effect on gross Reduced CO2 Research and saving units (millions of yen) benefit electricity expenses* emissions* 2,671.2 development Molds, jigs, 205 1,048 1,041 (millions of yen) 16,161 (t) and parts (millions of yen) (millions of yen)

*Annual “Reduced electricity expenses” and annual “Reduced CO2 emissions” are calculated on the assumption that the machine is used eight hours a day, twenty days a month. The12th Energy-Saving Award’s Energy Contribution amount to gross margin = gross margin amount × contribution rates to gross margin by environmental Conservation Chairman’s Prize efficiency (See page 78.)

48 Efficient Paper Use Computerized Document Management System Storage, The manufacturing of paper consumes retrieval, and utilization a lot of energy and generates a signifi- of documents Distribution, cant amount of CO2. To do its part in storage, and preventing global warming, Ricoh Aficio retrieval of (imagio Neo) documents implemented the more efficient use of paper to its energy conservation goals. Moreover, Ricoh engages in developing Digitization of Output of Internet rewritable paper*, which can be erased paper documents electronic data and rewritten on repeatedly.

* See page 32. Scanned data Printout Faxed data Data faxed Improved Duplex Copying To encourage more customers to make use of duplex copying, Ricoh has developed a Reduction in Paper Consumption Reduction in Noise and Emission high-speed “switchback” system that by Computerization of Chemical Substances speeds up processing by shortening the Ricoh provides customers with an ideal In order to make office equipment, interval in which paper is fed into the cop- printing environment with its high-value- including copiers, more acceptable, it is ier. A paper-feeder simulator that elimi- added products, including multifunctional important to reduce the noise it emits. nates nonfeasible feeding route designs printers (printers that can also be used as The emission of ozone and dust, even if had also been developed. The Aficio 850 copiers and facsimiles), and an efficient very small in amount, is also to be elim- (imagio MF 8570) digital copier, which computerized document management inated. was marketed in 1999, incorporates a system. Such a system includes scanning Ricoh is making great efforts to “nonstuck interleaf” duplex design to documents and incorporating their data improve its product design so that the achieve nearly 100% duplex productivity* into a database and enabling users to noise, ozone, and dust emitted are while in continuous operation. Many of browse and search such data on personal reduced. our other products have also achieved computers connected to the network as 100% duplex productivity. well as having a less-paper fax function * Duplex copying productivity (%) = (Time spent on simplex → duplex copying)/(Time spent on simplex → simplex copy- that displays information on a computer ing) × 100. Time is measured from the moment the desired number of copies is entered and the “Copy” button is pressed screen. Ricoh makes the management of to the moment the copier is ready for the next batch of documents more efficient and reduces copying. paper consumption.

Marketing Recycled Paper Changes in the Level of Noise Emitted Changes in the Level of Chemical by Machines in Operation Substances Emitted by Machines Ricoh conducts LCA studies on new and (Reviewed by BVQI [20]) in Operation (Reviewed by BVQI [21]) recycled paper to identify their environ- Noise emitted during operation 2001 target (set in 1998) Dust 2001 target (set in 1998) Noise emitted while in standby mode 2001 target (set in 1998) Ozone 2001 target (set in 1998) mental impact. Ricoh also markets recy- 75 0.08 0.072 cled paper to reduce the amount of energy 70.5 70.7 70 0.07

68.5 ] consumed in manufacturing paper. 68.8 3 0.065 0.060 68.2 0.06 0.065 65 67.2 0.052 0.05 60 0.04 0.046 Japanese Sales of Recycled Paper 55 0.032 0.036 Noise [db (A)] 0.03 (%) Concentration [mg/m Concentration 0.029 50 50 48.4 0.02 46.0 45.7 45.9 46.4 0.013 0.019 40 45 45.7 0.01

40.3 0.011 30

35.8 40 0 34.6 33.3 31.7 (FY) 1997 1998 1999 2000 2001 (FY) 1997 1998 1999 2000 2001 29.8 28.1 20 28.5

10 * Calculations are based on the weighted number of copiers, facsimiles, and printers sold and converted into a copying productivity of 50 sheets per minute for all machines. 0 * The figures above have been calculated using a formula set by the Japan Business Machine Makers First Second First Second First Second First Second Association’s Standard (JBMS) in 1999. half half half half half half half half (FY) 1998 1999 2000 2001

49 Research and Production Marketing LogisticsAfter-Sales Use Recycling Environmental Environmental Conservation Development Procurement Service Conservation Social Recycling Responsibilities

The Ricoh Group aims at securing profitability in the Recycled-Product Manufacturing global recycling business.

The Ricoh Group aims at securing Manufac- turing profitability in the recycling business in plant Japan by the end of fiscal 2004. The Group plans to do the same in the Reuse Sales companies Recovery Recycled- Customers Service center material Americas, Europe, China and Taiwan, companies user Collection of and the Asia-Pacific region. Efforts used products

made in Japan include improving the Resource- Collection recovery efficiency of collection, recovery, and center company

recycling by making use of a recycling Recycling center information sharing system and nationwide recycling system. Increased profitability will be achieved by significantly reducing the cost of collection and disposal through an advanced “venous logistics” system and increasing the Number of Copiers Collected (Worldwide) Resource Recovery Rate of Copiers (Reviewed by BVQI [22]) (Reviewed by BVQI [23])

sales of recycled machines. For Japan The Americas Europe regions other than Japan, it was de- (number of units) (%) 100 cided that used products will be col- 120,000 99 97 96 96 100,000 95 94 91 lected, recovered, and sold within the 80 89

80,000 77 105,085

same region. Efforts are being focused 104,834 60 91,136 on improving collection rates and the 60,000 89,903

40 50 expansion of recycling sites. Thus, the 48 40,000 Group’s recycling activities are evolv- 20,000 20 32 ing into a recycling business. The recycling business conducted by sales 0 0 (FY) 2000 2000 2001 2001 (FY) 2000 2000 2001 2001 companies in Europe has already First half Second halfFirst half Second half First half Second half First half Second half turned profitable. Amount of Toner Cartridges Collected Resource Recovery Rate of Toner Cartridges (Worldwide) (Reviewed by BVQI [24]) (Reviewed by BVQI [25])

Japan The Americas Europe (t) (%) 1,000 100 98 100 100 100 100 100 100 100 800 80 84 851 77 72 600 60 59

400 517 40 406 200 20 295

0 0 (FY) 2000 2000 2001 2001 (FY) 2000 2000 2001 2001 First half Second halfFirst half Second half First half Second half First half Second half

Environmental Conservation Costs and Effects in the Recycling Business in 2001* (Segment Environmental Accounting) (Unit: millions of yen) Effects Costs Economic effects Effects on environmental conservation Item of cost Amount Item Amount Resources recovered 26,920 t Final disposal 350 t Product recycle cost 572 Sales amount 937 A 4,537-t increase A 497-t decrease from the previous year from the previous year Collection/resource 2,802 recovery cost Resource recovery rate Social effect 2,150 Total cost 3,374 96.3% (FY 2000) → 98.7% (FY 2001) * Data is for Japan only. The figure for “Social effect” is the amount that customers saved on the cost of waste disposal.

50 Recycling of Toner Cartridges impact and costs. Recovery and recycling Japan The full-scale collection of all office sup- centers can share information on the plies, such as toner cartridges, started in amount and rate of used products collect- In fiscal 2001, Ricoh developed and 1998. Ricoh’s new nationwide recovery ed. Accurate information can be obtained began mass-producing the imagio and recycling network was established simply by entering the model code of the MF6550 RC reconditioned digital cop- in fiscal 2001. Collected toner cartridges product to be collected from customers. At ier. In fiscal 2002, Ricoh is working to are recovered and shipped according to present, the system mainly applies to cop- improve its collection rate and collec- Ricoh’s quality standards. Cartridges that iers but is to be extended to include other tion quality to provide customers with do not satisfy these standards are disas- products, such as toner cartridges. In 2003, as many recycled machines and toner sembled, sorted, cleaned, inspected, and other regions in addition to Japan will cartridges as possible. supplied to production lines as parts while adopt this system to improve efficiency in others are recycled into raw materials. the global recycling business. Reconditioned Digital Copiers The imagio MF6550 RC is a reconditioned digital copier that contains more than 87% Nationwide Recycling System (mass ratio) reused parts1, the highest in A well-run nationwide recycling system is the industry. Ricoh was able to develop needed to efficiently collect and recycle the imagio MF6550 RC in a short period Recovered toner cartridge Ricoh products, which are used all over of time because it was a leader in digital the country. Ricoh started collaborating copier sales and had accumulated exten- Recycling Information Sharing with green centers (collection centers), sive know-how and skills in the recycling System recovery and recycling centers, and plastic of analog copiers. In the recycling business, used products parts manufacturers to establish a nation- The environmental impact over its are regarded as raw materials. It is there- wide network that would facilitate a more entire life cycle is approximately 50%2 fore very important to improve collection economically efficient recovery and recy- less than its predecessor, which is made of rate as well as quality of collection. The cling of used machines, toner cartridges, all new parts, in terms of the amount of recycling information sharing system was and parts collected from all over Japan. resources and energy consumed in manu- established as a part of the environmental facturing, for example. management information system to efficiently carry out collection, recovery, and recycling as well as to help users understand information on environmental

Recycling Information Sharing System Manufacturing Plants

• Reused parts • Parts used history • Information on products delivered to or Integrated from the center Sales as well as Recovery Companies Management Database inventory Centers Constituent databases • Content information (including • Information on information on environmentally The imagio MF6550 RC reconditioned digital copier machines sensitive substances) collected, etc. • Information on products • Weight information delivered to the center 1. Parts that can be used again from collected machines and that • Information on which parts are (number of units and weight) • Information on products reused • Processing information have undergone the necessary processing for reuse delivered to or from the (number of units and weight) 2. The annual environmental impact of both the previous model center as well as inventory • Descriptions of resource recovery (using bar code tracking) • Information on parts sampled and reconditioned machine was used for comparison. The Internet data was calculated after the environmental impact of machine use was subtracted. See page 27. Collection Recycling http://www.ricoh.co.jp/imagio/mf/6550RC/index.html Centers Centers (Japanese language only)

Information Status control per unit collected (monitoring) Disclosed Final disposal report (including information on the disposal of environmentally sensitive substances) Information on inventory of sampled parts On environmental management indicator (monthly reports) Amount collected/amount disposed of/amount reused/ resource recovery rate/resource recovery description

51 Research and Production Marketing LogisticsAfter-sales Use Recycling Environmental Development Procurement Service Conservation Social Responsibilities

Recycling Centers Major Green Centers (Collection Centers) in Japan Used products and toner cartridges for- warded to recycling centers are disassembled, and the parts and units that can be Hokkaido Green Center reused or recycled are sorted out. Those

Hokuriku Green Center that can be reused are sent to recovery

Kansai Green Center centers to be used in manufacturing new Chugoku Green Center Tohoku Green Center products or recycled products. Aiming at Kyushu Green Center Northern Kanto Green Center reducing the final disposal amount, three Kanto Green Center recycling centers achieved a 100% Tokai Green Center resource recovery rate in fiscal 2001.

Shikoku Green Center The Americas

Recovery Centers in Japan and Products Handled Manufacturing plants of Ricoh

Ricoh Optical Industries: Electronics, Inc., (REI) in California Optical equipment Ricoh Unitechno: Cartridges, medium-sized and large equipment Tohoku Ricoh: and Georgia are used as recovery Medium-sized and large equipment Hatano Plant: Substrates for electrical components centers for toner cartridges and other Ricoh Elemex: Peripheral equipment Atsugi Plant: products. The collecting of toner car- Toner cartridges Ricoh Keiki: Electrical components tridges for recovery began in 1995. REI conducted a joint research into recovery methods and quality assur- Hokkaido Recycling Center ance with Ricoh Corporation to pro- Tohoku Recycling Center mote more eco-friendly recycling Northern Kanto Recycling Center Recycling Centers in Japan activities focusing on the reuse of parts. Furthermore, a promotional Joetsu-Hokuriku Recycling Center

Northern Kansai Recycling Center video for toner cartridge recycling was prepared to improve employee as well Kyushu Recycling Center as customer awareness of environ- Southern Kanto Recycling Center mental conservation and the collection Chubu Recycling Center rate. Southern Kansai Recycling Center Kyushu Recycling Center

Green Centers (Collection centers) Recovery Centers In fiscal 2001, Ricoh reorganized its col- At recovery centers, used machines and lection centers into 10 regional green cen- toner cartridges are disassembled, cleaned, ters and 80 green centers to improve the reassembled (with some parts being collection rate and collection quality of its replaced), and inspected before being ship- Toner cartridge recovery line at REI products. Based on the customer collection ped as recovered products. In addition, order information, personnel were dis- centers sort reusable parts. Ricoh Group patched from the nearest green center to companies and plants that have manufac- pick up the product and/or toner cartridges turing lines for the targeted products work from the customer’s office. The products as recovery centers. and toner cartridges collected at green centers are sent to recovery centers and recycling centers according to selection standards.

52 Recovery and Recycling Centers* around the World West U.S. Recovery Center

Canada Recovery Center (Ricoh Canada) France Recovery Center

U.K. Recovery Center East U.S. Recovery Center

Belgium Recycling Center

Portugal Recycling Center

Spain Recycling Center

U.K. Recycling Center

France Recycling Center East U.S. and East Canada Recycling Center

The Netherlands Recycling Center South U.S. Recycling Center

Germany Recycling Center Midwest U.S. Recycling Center

Austria Recycling Center West U.S. Recycling Center

Italy Recycling Center The Philippines Recycling Center

Hungary Recycling Center Hong Kong Recycling Center

Poland Recycling Center Australia Recycling Center

Norway Recycling Center New Zealand Recycling Center

Singapore Recycling Center

Thailand Recycling Center

Malaysia Recycling Center * Ricoh Group recycling centers are working with reliable business partners for further development.

The United States Europe The Netherlands Savin NRG Benelux

Savin Corporation, a sales company, car- In Europe, government-authorized col- In 1987, NRG Benelux B.V., a sales com- ried out a promotional campaign aimed at lectors and manufacturers collect used pany, began the collection of machines increasing the collection rate of toner car- toner cartridges in each community. and toner cartridges, and marketing of tridges in cooperation with the aftermarket Manufacturers are striving to improve reconditioned machines. Working in close divisions of dealers. In the campaign, deal- their present collection rate to achieve cooperation with its sales department, ers compete against each other in collect- better resource recovery and appropriate NRG Benelux continued to expand its ing the most toner cartridges. Promotional disposal. Ricoh UK Products Ltd. and operation, selling several thousand recon- tools, such as mouse pads describing the Ricoh Industrie France S.A., originally ditioned products in fiscal 2001. In addi- manufacturing plants but now used as toner cartridges to be collected and mugs tion to their low level of environmental recovery plants as well, are engaged in bearing the Ricoh Group’s eco mark, were impact, the products’ attractive prices have the recovery of products and toner car- distributed while messages calling for the contributed to the favorable results. tridges. Getting a jump on the EU Direc- customer’s cooperation in collection were tive on Waste Electrical and Electronic included in packages of toner cartridges or Equipment (WEEE), which will be effec- on invoices for those cartridges. When tive in 2006, the two companies are receiving orders from customers, the com- already promoting high-level recovery pany encouraged and recycling. them to join its recycling activi- Product reconditioning line and ties. recovered machines reconditioned

The Savin environmental Toner cartridge conservation staff and remanufacturing line in promotional items used Ricoh Industrie France in the company’s toner cartridge collection campaign Product reconditioning line at Ricoh UK Products

53 Research and Production Marketing LogisticsAfter-Sales Use Recycling Environmental Development Procurement Service Conservation Social Responsibilities

The Netherlands efficiently improve resource recycling and present, only consumables, such as toner MIREC, NRG Benelux, and Ricoh Nederland reduce waste. Recently, more and more cartridges, are covered by the system, but digital copiers are being recovered. machines will be included in the future. MIREC is a recycling center in the In fiscal 2001, approximately 35,000 Ricoh and NRG FRANCE toner cartridges Netherlands that is in partnership with France NRG Benelux B.V. and Ricoh Nederland Ricoh France were collected under the CONIBI system. B.V. With the motto “one industry’s waste Product recovery at Ricoh UK Products as another industry’s resource,” MIREC is Ricoh France S.A., a sales company, and Ricoh Industrie France and energy conducting business in Europe. The com- contributes to the Ricoh pan-European recovery at CONIBI resulted in the pany not only collects, disassembles, recy- collection system and places “eco-boxes” achievement of Zero-Waste-to-Landfill. cles, and resells used products, but it also in the customer’s office to improve the collection rate of used toner cartridges and gives advice to its clients on ideal recycla- The United Kingdom collects them via CONIBI. The collected ble designs. MIREC’s system of analyzing Ricoh UK the amount of environmentally sensitive products and photo-conductor units are substances in collected products facilitates sent to Ricoh UK Products Ltd. and Ricoh As of March 2001, Ricoh UK Ltd. is the efficient resale and proper treatment. Industrie first accredited sales company in the U.K. France S.A. that is ISO 14001 certified. The company respectively for collects its used toner cartridges and recy- recycling. As cling parts, and residuals are treated for machines, appropriately by energy recovery. Further- Ricoh France more, Ricoh UK places stickers on its plans to recover products with the words “This copier uses them by itself recyclable toner cartridges” to promote the as well. environmental awareness of customers.

The Ricoh France environmental Disassembly and sorting line of collected products conservation staff and an eco-box

France China and Taiwan Germany CONIBI NRG Deutschland Ricoh Asia Industry Ltd. (RAI), a man- CONIBI is a consortium established ufacturing plant in Shenzhen, China, NRG Deutschland GmbH, a sales com- jointly by Ricoh and 10 other office- recovers toner cartridges at a bonded pany, contributes to the Ricoh pan- equipment manufacturers in January 2000 warehouse that belongs to Ricoh European collection system and places to efficiently collect used toner cartridges Express (S.Z) Warehouse Ltd. In “green boxes” in the customer’s office for and toner bottles. Because customers use order to make the recycling operation the collection of used toner cartridges. different brands of copiers or printers, the economically efficient, the collection Some of the collected cartridges are recy- CONIBI collection system facilitates cus- rate needs to be improved. cled at its head office in Hanover, and those tomer collection of different brands of that can be reconditioned are sent to Ricoh products in a convenient and professional UK Products Ltd. and Ricoh Industrie manner. Collected products are sent back Hong Kong Ricoh Hong Kong France S.A. NRG Deutschland recondi- to their respective manufacturer under the tions used copiers and other products by CONIBI system, which is attracting Ricoh Hong Kong Ltd., a regional sales itself because it believes that doing so will attention in Europe for its uniqueness. At headquarter in the China and Taiwan region, is calling for customer’s cooperation in the collection of used toner cartridges by sticking a label on the recycling of toner cartridges on product packages. Customers can return used toner cartridges

The NRG Deutschland staff and “green box” The CONIBI staff and a collection box

54 to Ricoh Hong Kong by attaching the label are recycled into building materials by Asia-Pacific Region to the outside of their packages. AOSL. Toner cartridges are collected and recycled into materials by “Close the In New Zealand, customers cooperate Loop.” in collecting toner cartridges, and as a result the collection rate gradually New Zealand improved. A similar project started in Ricoh New Zealand Australia in July 2001. The recycling of toner cartridges and other products as Ricoh New Zealand Limited began col- well as the recycling of parts will take lecting toner cartridges in April 2001. priority. A brochure that promotes the Stickers giving the location of collection collection of toner cartridges points are enclosed with new products, and and a return label Australia customers attach the stickers to the outside Ricoh Australia of their packages and return the used products by mail. To improve its collection Hong Kong Ricoh Australia Pty, Ltd., began product rate, Ricoh New Zealand is carrying out a Ricoh Office Solutions collection and material recycling in Sep- campaign that offers customers who send tember 2001. Sims Pacific Metals Limited, back used toner cartridges a chance to win Ricoh Office Solutions, a sales company, which is one of Ricoh’s partner companies, a new cartridge. Collected toner cartridges rents recycled machines. The company recycles the products into raw materials. are recycled by Plascrete International Ltd. also recycles printed circuit boards. One of our partner companies, Close the into raw materials to produce bricks, etc. Loop Limited, collects toner cartridges In Victoria Park, a famous tourist attrac- and recycles them into raw materials from tion in New Zealand, there is a walkway which they made of these bricks with Ricoh’s logo produce written on it. rulers, furniture, benches, etc.

The Ricoh Australia environmen- Copier recycling line tal conservation staff and toner cartridge collection box

China Australia

RAI Lanier Australia A walkaway made out of recycled bricks

A slip enclosed with new Among the toner cartridges collected by Lanier Australia Pty. Ltd., a sales com- products announcing a Ricoh Office Solutions, Ricoh Asia pany, makes arrangement for collecting campaign that offers the user a chance to win a Industry Ltd. (RAI) recovers only those it used products. Collected products in good new toner cartridge manufactures itself. RAI currently condition are recycled by the company and recycles an average of approximately rented out. The remaining collected prod- 1,000 units per month. ucts are recycled into raw materials after removing all reusable parts. Plastic panels

Toner cartridge recycling line at RAI Recycled products at Lanier Australia

55 Social Responsibilities

It was formerly believed that brands conveyed the A private school established by the Bangladeshi corporate image to the customers. As globaliza- NPO, Poush, for which Ricoh started the support in 1999. The school charges no educational tion progresses, more people begin to think of expenses on students, but there are many children who cannot go to school because they how the products under those brand names are have to work to help their parents manufactured and in which countries and regions or how they are collected or recycled after use. The Ricoh Group has the management philosophy, for global business expansion, to constantly create new value for the world at the interface of people and information. Furthermore, sustainable management and its practice are not just part of our corporate mission as a global citizen, but it is also a wide-ranging concept that goes together with social responsibility. As a part of our sustainable management efforts, Ricoh Group is involved in many issues including the prevention of global warming, reducing the emission of ozone-depleting substances, conserving the ecosystem, and helping to bring up healthy young people. To survive in the new century as a respected member of the global community, the Ricoh Group devotes to carrying out activities based on its corporate missions, showing respect to the culture and customs of countries all over the world. Furthermore, enthusiastic efforts are being made to promote the Group’s social significance to all stakeholders, namely, its business partners (including customers, suppliers, shareholders, investors, and people in the community people), NPOs, and governmental organizations in regions where the Group is doing business.

56 Mutual Social Responsibilities Social Employees Environmental Understanding Contribution Conservation Social Customer Communication Responsibilities

The Ricoh Group is developing businesses all over the ment to social responsibilities. Ricoh Group companies world under the slogan “a company should contribute to establish and put into practice their own codes of the society as a part of society.” Ricoh’s Code of conduct pursuant to this one. Conduct, given below, reveals the Company’s commit-

Ricoh’s Code of Conduct

1. Ricoh’s Basic Attitude (See pages 58–66.) 3. Guidelines for Fair Corporate Activities (1) Conduct sound business activities. (1) Compliance with the Antimonopoly Law 1) Aim toward stable growth and development. 1) Such meeting or agreement should not be held or made 2) Comply with social ethics and normal business that restricts each other’s free business activities. practices. 2) Trading advantage should not be used. (2) Promote mutual understanding with society. 3) Misleading indication should not be made and excessive 1) Respect different cultures and practices. premiums or prizes should not be offered. 2) Sincerely promote public relations. (2) Compliance with Export-Related Laws (3) Support activities that contribute to society. 1) Prior verification 1) Engage in activities that contribute to local 2) Careful judgment communities. 3) Verification based on document 2) Create a corporate culture in which activities that (3) Entertainment and gifts contribute to society are encouraged. 1) Compliance with generally accepted business practices. (4) Respect the global environment. 2) Entertainment or gift should not be offered to officials of 1) Address environmental issues in a positive manner. public organizations (including former officials). 2) Manufacture products that are environment friendly. (4) Transactions with public organizations and political 3) Keep the prevention of pollution and the conservation contributions of energy in mind. 1) Transactions in strict compliance with related laws. 4) Product recycling 2) Illegal political contributions should not be offered. 5) Strive to maintain and improve the environment. 4. Guidelines for Protecting Corporate Information 2. Employee Responsibility (See pages 67–72.) (1) Trade secrets* (1) Ricoh’s expectations of employees 1) Conformance to control regulations 1) Employees will comply with laws and regulations. 2) Authorized disclosure 2) Employees will be civil. 3) Corporate information should not be used for a private 3) Employees will act like responsible representatives of purpose. Ricoh. 4) Corporate information should not be obtained by illegal 4) Employees will improve customer satisfaction. means. 5) Employees will show initiative and creativity. * The term “trade secrets” refers to corporate information with asset value that has 6) Employees will consider the other person’s point of been created or obtained through normal business activities. view. (2) Insider information* 7) Employees will align individual satisfaction with 1) Insider information should not be disclosed to any third company growth. party. (2) Respect basic human rights. 2) Insider information should not be used for private 1) Abolish discrimination. purposes. 2) Protect individual privacy. * The term “insider information” refers to important internal information concerning unannounced increases or decreases of capital, new products, business (3) Provide a work environment in which individual tie-up, etc. capabilities can be demonstrated. (3) Intellectual property* 1) Provide opportunities for self-fulfillment. 1) Prompt report to the company. 2) Respect the particular skills of others. 2) Respecting intellectual property of third parties. 3) Give objective and fair performance evaluation. 3) Comforming to disclosuring procedures. 4) Create a comfortable work environment. * The term “intellectual property” refers to patents, utility model rights, designs, trademarks, copyrights, rights of layout-designs of integrated circuits, trade secrets, etc. Established April 1, 1993 Revised December 1, 1995 Only the summaries of articles have been listed.

57 Mutual Social Responsibilities Social Employees Environmental Understanding Contribution Conservation Social Customer Communication Responsibilities

Reviewing our daily business Answering Customers’ Requests on an advanced practices from the customers’ In 1981, Ricoh established a “Quality computer technol- point of view to improve Assurance Center” (now “Customer ogy integration management quality Service Center”) and began efforts to (CTI) system. improve CS long before CS began attract- One of Ricoh’s management philoso- ing people’s attention. Ricoh believes that phies is to put itself in the other person’s complaints are gifts from our customers Network Call Center place1. The Ricoh top management and those complaints may lead to ideas for new products. Customers who file com- strongly emphasizes its commitment The Americas towards changing anything, save Ricoh’s plaints at the customer service center are management philosophy, that hinders often loyal users of our products. Ricoh The United States the improvement of CS (customer satis- has a database of customers’ opinions that Improvement in CS and faction). To improve management top management and those related to prod- Accessibility quality, the Company must listen to uct planning divisions can refer to. Any The Ricoh Group engages in business customers’ opinions, improve daily busi- opinion can be retrieved the day after it is activities in the United States as well as ness activities, objectively check its made. The directors themselves handle the Japan under the belief that CS and social activities and goals for improving CS, more serious complaints by investigating contribution (in the form of environmental and evaluate its competitive edge. the source of the problem, determining Ricoh ranked first in the Japanese conservation) should work in tandem. management issues, and finding solutions. copier division of a customer satisfaction Ricoh Corporation organizes customer survey conducted by an independent complaints in a particular format and Target of Service Quality at the Customer Service reports them to the president at meetings organization for seven years in a row. Center (Target Based on Actual Results) The Ricoh Group’s efforts in this area in an attempt to find ways to improve. To Telephone How often calls make it through 85% or more to the center (no busy signal) connection rate facilitate communication with customers include continuously aiming for the Immediate How often problems are solved 90% or more Japan Quality Award2 by identifying and solution rate on the first call with hearing problems who may find it How long the caller is kept Under Waiting time analyzing its position in society, review- waiting on the phone 20 seconds difficult using the services that the service E-mail Number of days to answer Within ing its business activities, and reorganiz- response time e-mail two days center provides, the company provided Customer Questionnaire on CS* 90 points ing its organizational structure based on satisfaction (CS) or more teletypewriters, which enables communi- analysis results. The Group will continue * Questionnaires are sent twice a year via fax and e-mail to cation between those customers and us approximately 270 customers. to review its daily business practices using character entries over telephone from the customers’ point of view to fur- lines, to the center and other relevant ther improve itself and provide innova- facilities in June 2001. Thus, the Ricoh tive solutions. Group strives to improve the accessibility 1. See page 9. 2. The Ricoh Group received the Japan Quality Award in to customer services. 1999. The award was established in 1995 and was modeled after the Malcolm Baldrige National Quality Award in the United States. China and Taiwan

Japan Hong Kong Ricoh Hong Kong’s Customer Ricoh’s customer service center Local Quality Awards Relations Management (CRM) Niigata Ricoh Co., Ltd., and Mie Ricoh Ricoh Hong Kong manages customer Customer Support in Co., Ltd., which are Ricoh Group sales information and product use/sales records an IT-Oriented Era companies, were each awarded a local on its IT system and utilizes it in making As a result of progress made in informa- quality award by the governor of their appropriate proposals to customers. Also, tion technology (IT), office networks are respective prefectures in recognition of the company makes efforts to improve getting more and more complicated in their distinguished management qualities. customer satisfaction by organizing cus- a multivendor environment in which Both companies endeavor to enhance their tomer support units specialized in handling machines of diverse brands coexist. corporate qualities, exhibit leadership complaints and by giving complaint- For the purpose of troubleshooting a cus- qualities in the community, and improve handling systems operation training to all tomer’s network system, Ricoh established their presence, all for the sake of their company employees. customers. the Network Call Center, which provides high-level customer support services based

58 Social Responsibilities Environmental Communication

Making earnest efforts to Ltd., followed by Ricoh Industrie France environmental Web site had 1,070,985 disclose information on the S.A. and Ricoh’s Atsugi Plant in fiscal visitors, approximately 400 thousand more Ricoh Group’s goals 2001. To encourage as many business sites than the previous year. Ricoh promotes as possible to issue their own reports, interactive communication by meeting the The Ricoh Group considers all guidelines were set up in both Japanese high school and university students with stakeholders, including customers, and English on creating reports on each whom it corre- the local community, employees, business site and added to the Ricoh sponds by administrations, and client companies, Group’s database. e-mail. as green partners. The Group strives * Only the Japanese version is available. See page 83 for to contribute to reducing the environ- questionnaire results. mental impact of society as a whole Ricoh Home page by disclosing its goals and know-how Number of Copies Issued Language Date of No. of No. of obtained through group activities to Issue Copies Pages stakeholders. The Ricoh Group, there- Ricoh Group Japanese Jan. 1999 26,200 1. http://www.ricoh.co.jp/ecology/ecotoday/index_h_eng.html 2. http://www.eco.goo.ne.jp/ fore, endeavors to disclose information Environmental 30 Report 1998 English Jan. 1999 500 (Japanese language only) that is useful to its green partners as 3. http://www.ecology.or.jp/ecoweb/topics.html (Japanese language only) well as to provide interactive communi- Ricoh Group Japanese Sept. 1999 51,300 cation. In addition, the Ricoh Group Environmental 32 Report 1999 English Sept. 1999 8,375 makes use of the opinions of its green Disclosing the Environmental partners to improve environmental Ricoh Group Japanese Sept. 2000 45,950 Impact Information of Products Environmental 60 The Ricoh Group discloses the environ- activities of the Ricoh Group as a whole. Report 2000 English Dec. 2000 6,800 mental impact information of its products Stakeholders and Information Disclosure Measures 20,390 Ricoh Group Japanese Sept. 2001 (As of June 30, 2002) through Type I and II Environmental Sustainability 74 Report 2001 English Dec. 2001 7,000 Labels and Type III Environmental Impact Items to be Disclosed 1 = Disclosure . As the global trend toward Environmental Reports Sites Web Environmental Labels Environmental Advertisements Environmental Lectures Exhibitions

Customers green procurement grows, the environ-

Communities mental impact information of products is

Clients indispensable for customers wishing to Shareholders and investors choose products that have less environ- Environmental specialists mental impact. Therefore, it becomes Persons in charge of environmental issues in companies increasingly necessary for the Ricoh Administrations Group to give precise and timely product NPOs Environmental reports of Ricoh information at the time of marketing. In Students business sites and fiscal 1999, the Ricoh Group first carried Ricoh Group affiliates Employees out Type III Environmental Impact Disclosure2 in Japan on its imagio Sustainability Reports Environmental Web Site MF 6550 digital copier based on an inde- The Ricoh Group’s environmental report Ricoh’s environmental Web site includes pendent certification (BVQI, Sweden). has been issued annually since its first information on a variety of topics, such as RIFAX ML 4500, a facsimile, also publication in April 1998, which disclosed the Ricoh Group’s activity updates as well acquired the BVQI certification in fiscal fiscal 1996 data. An English version of the as links to ECO TODAY1, an environmen- 2001. The Ricoh Group is planning to dis- Japanese-language report has been pub- tal education tool aimed at elementary and close its environmental impact information lished since the fiscal 1998 edition, which junior high school students. ECO TODAY under the Type III ECO-Label of the was released in January 1999, to disclose was created jointly by Ricoh and students Japan Environmental Management Asso- information to our diverse green partners from Yokohama Digital Art School. ECO ciation for Industry (JEMAI). To facilitate as well as to promote interactive commu- TODAY presents familiar examples of the timely disclosure of product informa- nication through a facsimile questionnaire global environmental issues and intro- tion the Ricoh Group is planning to system*. As far as English version is con- duces countermeasures adopted by Ricoh. announce a new set of standards, in which cerned, the title has been improved to In fiscal 2001, Ricoh received an excellent the calculation of data would be certified “Sustainability Report” since 2001. award from “Environment goo2,” an instead of individual machines.

Ricoh business sites and affiliates issue environment-oriented portal site, for its 1. See page 41. similar reports. Ricoh’s Fukui Plant, Ricoh 2. Disclosure of the environmental impact information of a ECO TODAY Web site and received the product throughout its life cycle Unitechno Co., Ltd., and Tohoku Ricoh Co., “Eco Web Prize3.” In fiscal 2001, Ricoh’s http://www.ricoh.co.jp/ecology/e-/label/type3/index.html

59 Mutual Social Employees Environmental Understanding Contribution Conservation Social Responsibilities

Environmental Advertisements Environmental Lectures Social Evaluation Ricoh makes advertisements that help The top management of the Ricoh Group In the World’s Most Respected reduce the environmental impact of soci- eagerly gives lectures on their own voli- Companies survey, an annual survey con- ety as a whole. Examples include ads that tion to explain the importance of environ- ducted by the Financial Times, a U.K. explain the environment-friendly function mental conservation and give an idea of an business newspaper, Ricoh was chosen of a product to municipal authorities and environmental management system. In fis- by global CEOs as the world’s seventh companies, which promotes green procure- cal 2001, the Ricoh Group made strong most respected company in the “most ment activities, and ads that introduce case efforts toward social contributions to environment-conscious” category. The studies that should be regarded as useful to improve communication with green part- Company received the highest “eco- people who promote environmental con- ners by participating in company lectures, rating,” AAA, in the photograph and servation activities from diverse stand- academic societies, and symposiums. office equipment categories from Innovest points. In fiscal 2000, Ricoh started Strategic Value Advisors, a U.S. invest- Major Environmental Lectures (Ricoh) creating and placing magazine advertisement research company, and ranked first ments that describe the importance of bio- FY Number of lectures among 11 nominees. Ricoh also ranked diversity protection and gave examples of 1999 43 first among 16 nominees in a rating survey a forest ecosystem conservation project1 2000 66 conducted by Ökom GmbH, Germany, in that it conducts in partnership with NPOs. 2001 50 environmental, social, and cultural In fiscal 2001, Ricoh Hungary Kft.2 started * Number of lectures performed by Corporate Environment aspects. In Japan, the Company ranked Division creating and placing advertisements that Activities have also been conducted by internal divisions. second in the 5th Corporate Environmental heighten people’s awareness of environ- Management Level Survey organized by mental conservation. Exhibitions Nihon Keizai Shimbun. Ricoh also 1. See page 61. Ricoh actively takes part in environmental received the 7th Information Disclosure 2. See page 44. activities at such exhibitions as Eco- Award for Listed Companies by Tokyo Products, which is held in Japan, and Stock Exchange Inc. for its remarkable CeBIT, which is held in Europe, to bring performance in disclosing information to attention to the environmental perform- investors. Furthermore, in fiscal 2000 ance of its products. At Eco-Products Ricoh received grand prize in the Corpo- 2001, Ricoh attracted visitors with such rate Contribution to Society Survey held exhibitions as the Aficio (imagio Neo) se- by the Asahi Shimbun Cultural Foundation. ries1, and rewritable printers and paper2.

1. See pages 32, 47, and 48. 2. See page 32.

Above: An advertisement explaining an environment-friendly function of a product Below: An advertisement giving examples of environmental conservation

Eco-Products 2000

The Financial Times (December 17, 2001)

CeBIT (Germany)

Top: An advertisement stating the importance of biodiversity protection Bottom: Ricoh Hungary’s advertisement for environmental awareness promotion 60 Social Responsibilities Social Contribution Activities

Contributing to making Demonstrating Leadership Forest Ecosystem Conservation societies better the world to Prevent Global Warming Project over In July 2001, Ricoh was the first leading The Importance of Forest Japanese company to join “e-mission 55,” Conservation and Restoration a petition to encourage countries to adopt We are now in an era of large-scale wild- To create a society that is at ease with the Kyoto Protocol. Ricoh opened the door life extinction. Among the approximately itself and live without harming the for other Japanese companies to support 4,000 species of mammals, 1,069 are ap- natural environment, it is essential for the protocol. The European Business proaching extinction. A good example is all global citizens, including national the panda, of which there are only about Council and U.S. Business Council recog- governments, companies, citizen 1,200 in the world. Such increase in the nized this achievement and awarded Ricoh number of endangered species must, at groups, and other individuals, to offer the “Climate is Business” award. Besides ideas and cooperate with each other. least in part, be attributable by a decrease Ricoh, Jan Pronk, COP6 president (who in the size of their habitat. A good portion For this to happen, private citizens, concluded the Bonn Agreement at COP6) of the world’s wildlife lives and contrib- governments, companies, NPOs, and and Minister of Housing, Spatial Planning utes to the ecosystems of a variety of other groups need to establish closer and the Environment of the Netherlands, habitats around the globe, including for- relationships with one another. One of received the same award. ests, savannas, lakes and ponds, coral the most important requisites for busi- reefs, and oceans. The destruction of an ness enterprises is demonstrating ecosystem would inevitably lead to the de- leadership in their communities while struction of the water system, air, climate, improving communication through soil, and other parts of the natural environ- proper information disclosure, building ment that humans depend on to live. We, as humans, are necessary to conserve all up relationships based on mutual trust the ecosystems on earth. To this end, and good partnerships, and creating a The “Climate is Business Ricoh is developing social contribution society that is at ease with itself. The award” ceremony and the activities that focus on forest eco- Ricoh Group, based on the Spirit of trophy systems, which are especially blessed Three Loves* (love your neighbor, love with a large variety of wildlife. your country, and love your work), endeavors to enthusiastically commu- Activities Funded by the Ricoh Group’s “Social Contribution Reserve”* Project NPO nicate with local governments and citi- Country Name Purpose Name Description Web site zens the world over. Conservation and Conservation of restoration of forests forests where the Using funds and human resources for *See page 9. Philippines Conservation the conservation of biodiversity http://www.conservation.org in environmental hot Philippine Eagle International spots can live (1,200 members in 32 countries)

Establishment of The world’s largest nature protection http://www.wwf.or.jp/ Restoration of forests in forests where NPO makes diverse efforts to conserve (World Wide Fund for Malaysia the Ecoregion 200 area orangutans can WWF biodiversity, from ecosystem conserva- Nature Japan) International migrate tion to the prevention of global warming. (Japanese language only)

Establishment of Restoration of forests in China forests where pandas WWF Same as above Same as above Participation in the UN Global the Ecoregion 200 area can live

Compact Conservation of Conducting activities to protect wild Restoration of satoyama forests where loaches birds and to conserve their habitats http://www.wbsj.org/ (community forests) in Wild Bird Society of Japan and salamanders Japan based on the idea that mankind must (Japanese language only) On April 8, 2002, Ricoh agreed on and Tama hills, Tokyo can live share the earth with wild birds Conducting research and study of the forest announced its participation in the Global Conservation of the Afan Establishment of ecosystem as well as environmental conser- Japan C.W. Nicol vation activities on the idea of establishing a http://www.afannomori.com/ forest in Kurohime, forests where Afan Forest (Japanese language only) Compact, a United Nations initiative con- Nagano dormice can live forest where the mankind can live without harming the natural environment sisting of nine principles covering topics The flag species of the area are listed under “purpose.” The above projects strive to conserve the forest ecosystem in the areas as well as the flag species. in human rights, labor, and the environ- * See page 62. ment. In 1999, UN Secretary-General Kofi Activities Funded by the Ricoh Group’s Expenses A. Annan advocated the Global Compact* NPO Country Project to world business leaders. At present, there Name Description Web site Conservation and Research of birds in Sri Lanka and domestic and inter- Field Ornithology Group of national environmental conservation activities through the are approximately 500 business enterprises Sri Lanka restoration of forests in Sri Lanka — world heritage areas protection of wild birds Conducting activities to promote the ratification of the taking part in this initiative. Ricoh is the Conservation of virgin Brunei Ramsar Center Japan Ramsar Convention (on Wetlands) in Asia and the http://www.museum-japan.com/rcj/ second Japanese company to announce its mangrove forests appropriate utilization of wetlands Survey of the canopy International NPO conducting forest conservation activities participation in the initiative, which contrib- Madagascar in forests Pro Natura in Asia and Africa — utes to the Ricoh Group’s global efforts. Restoration of satoyama Providing environmental education, especially to children, Bangladesh (community forests) Bangladesh Poush and promoting afforestation activities in Bangladesh — * http://www.unglobalcompact.org Promoting the independence of local communicates and Restoration of riverhead Malaysia OISCA environmental conservation through rural development and http://www.oisca.org forests greenery activities in the Asia-Pacific region Restoration of the corri- Ghana dors of the cacao trees Conservation International Using funds and human resources for the conservation of http://www.conservation.org growing in the shades biodiversity (1,200 members in 32 countries)

61 Mutual Social Employees Environmental Understanding Contribution Conservation Social Responsibilities

Promotion of Activities through Partnerships Japan Forest conservation activities are almost Continuous Promotion of Social impossible to carry out without the under- they work. In fiscal 2001, the workshop Contribution standing and cooperation of local com- was held twice, once in Tokyo and once in Ricoh established a system in which a so- munities. Therefore, it is important to help Aomori, and attended by 135 children. cial contribution reserve is created to con- those communities become more environ- * In 1968, Kiyoshi Ichimura, the founder of Ricoh, established tinue social contribution activities. With the New Technology Development Foundation (Ichimura mentally aware because once they are, the approval of shareholders at their gen- Foundation) to commend and support technological development and research that contributes to society. The foundation they will gladly help out as much as they eral meeting, the Company reserves an finances new technology development, plant research, and the can. In poorer regions, it is also important amount equal to 1% (maximum ¥200 mil- promotion of the creativity of children. to offer jobs to the local community in the lion) of its annual profit after dividends to Partnerships with Schools areas of forest restoration, afforestation, fund its social contribution activities. In fiscal 2001, the reserve was used for forest management, and resource recircu- Ricoh’s Fukui and Gotemba Plants and social contribution and forest ecosystem lation. With this in mind, Ricoh continued Ricoh Elemex Corporation periodically conservation as well as to establish and invite children and students in the neigh- its efforts to conserve forest ecosystems by manage the Ichimura School of Nature. initiating eight projects in fiscal 1999 and borhood to promote their awareness of fiscal 2000, by starting three additional Sound Education of the Youth environmental conservation. projects in fiscal 2000, by forming part- The Ichimura School of Nature, an NPO, nerships with environmental NPOs, and by is where children from the 4th grade (10 taking into careful consideration local years old) of elementary school to the 2nd grade (14 years old) of junior high school communities where the projects are con- spend every two weekends a month plus ducted. Through these activities, local summer vacation together to grow crops. communities became more environmental- The school’s basic aim is to help children ly aware, which greatly promotes social learn how to earn a living from mother contribution. Local communities became earth through experience and community At the Okazaki Plant, Ricoh Elemex more aware of the importance of the natu- living. The Company started a project ral environment when they observe how commemorating the 100th anniversary of determined Japanese companies are about the birth of Kiyoshi Ichimura, the founder of the Ricoh San-ai Group, and opened the conserving it. In Japan, Ricoh stresses Ichimura Kanto School of Nature on the importance of forest ecosystem conser- March 30, 2002. In the 2003 spring, the vation through advertisements in maga- Company plans to open a school in Saga zines*. In April 2002, Ricoh conducted an Prefecture, where Ichimura was born. eco-tour to plant trees on Huangtu Plateau At the Ena Plant, Ricoh Elemex in China. * See page 60. FreeWill Social Contribution Club For the purpose of promoting voluntary social contribution activities by employees, Ricoh established a social contribution club in January 1999 called FreeWill. Employees voluntarily donate a fraction of their salaries for social contribution activi- Entrance ceremony at the Ichimura Kanto School of Nature ties. Ricoh supports those activities under Conservation of virgin mangrove forests Ricoh Kids Workshop a gift-matching program, in which the (Brunei) Company matches the amount of contribu- Ricoh completely supports the Ricoh Kids tions made by employees. The club has Workshop organized by the New Technol- supported more than 60 organizations, in- ogy Development Foundation (Ichimura cluding the Japan Marrow Donor Program Foundation)*. At the workshop, children (JMDP) and the Association for Aid and from the 4th grade of elementary school to Relief, Japan. As of the end of February the 3rd grade of junior high school enjoy 2002, there are more than 2,000 members. getting hands-on experience disassembling An eco-tour to plant trees on Huangtu Plateau in China laser printers and facsimiles to see how

62 Nurturing Volunteer Leaders 2001, the seminar was held three times, Japan The Ricoh Group believes that in addition and a new intermediate course was of- to conducting environmental conservation fered. Members of the Wild Life Bird Partnerships with NPOs activities as a group, it is important for Society of Japan, an environmental NPO, Ricoh makes contributions to various employees to volunteer for both company- were invited to give lectures at the semi- organizations, such as the Nature run and outside environmental conserva- nar. From them, participants learned how Conservation Society of Japan1, the Wild tion and social contribution activities. to preserve satoyama (community forests), Bird Society of Japan, WWF Japan, the In June 1999, the Ricoh Group launched a which has a good system to follow when 2 Green Earth Network , and the Ecosystem leadership-training program for Ricoh em- creating a resource-recirculating society, 3 Conservation Society—Japan . The Com- ployees to promote environmental conser- and how to participate in environmental pany also invited WWF Japan to hold its vation activities. In fiscal 2001, the program conservation activities, beginning with Global Warming Prevention Business was expanded to include the Ricoh Group’s bird watching. Participants also made Workshop on its premises. employees and retirees. By the end of fis- “eco soap” from used edible oil and took 1. http://www.nacsj.or.jp/introduction-e/1-profile.html cal 2001, as many as 142 employees and part in bamboo grass cropping as a way of 2. http://member.nifty.ne.jp/gentree/ preserving satoyama. (Japanese language only) directors of Ricoh and the Ricoh Group 3. http://www.ecosys.or.jp/eco-japan/public/english/index.htm became environmental volunteer leaders. The leadership-training program consists Ricoh Company Meetings for Partnerships with Enterprises and of training sessions called “Ricoh Nature Environmental Volunteer Leaders Administrations Seminars” and meetings called “Ricoh The aim of Ricoh Company Meetings for The Ricoh Group achieved Zero-Waste-to- Company Meetings for Environmental Environmental Volunteer Leaders is to up- Landfill at all production sites around the Volunteer Leaders.” Following the train- date environmental volunteer leaders on world. The Group welcomes people from ing at nature seminars, each leader devel- each other’s activities. The leaders report enterprises and administrations to visit the ops environmental volunteer activities in on the environmental volunteer activities Group’s business sites and readily shares close cooperation with relevant divisions that they organized, exchange information its know-how. or with the local community. Ricoh pro- with each other, and learn how to improve

Number of People to Visit Major Plants vides support in promoting these activities. the quality of their activities. Four Ricoh Company Meetings for Environmental Ricoh Fukui Plant Ricoh Nature Seminars Volunteer Leaders were held in fiscal FY 2001 First half 1,224 Ricoh nature seminars aim at turning em- 2001. The leaders were divided and attend-

FY 2001 Second half 982 ployees into environmental volunteer lead- ed separate meetings because their number was too large for a single meeting. 0 500 1,000 1,500 2,000 2,500 ers by teaching them how to enjoy the (people) natural environment and implement envi- Ricoh Numazu Plant ronmental conservation activities. Each Activities of Environmental Volunteer Leaders FY 2001 First half 2,078 seminar lasts for two days and is attended In fiscal 2001, there were 28 activities and FY 2001 Second half 1,411 by approximately 15 participants. In fiscal a total of 787 participants. Environmental 0 500 1,000 1,500 2,000 2,500 (people) volunteer leaders conduct different activities with the company divisions and com- Ricoh Gotemba Plant munities to which they belong as well as FY 2001 First half 1,326 with their friends and families. Recently, FY 2001 Second half 1,020 leaders often form groups for ongoing 0 500 1,000 1,500 2,000 2,500 activities. One group was formed by five (people) volunteer leaders in November 2000 to Ricoh Unitechno protect the thickets of Hadano. Yadoriki The intermediary course at a Ricoh nature seminar FY 2001 First half 636 (first session) Shinbokukai, a community organization,

FY 2001 Second half 1,371 has been helping with the afforestation of

0 500 1,000 1,500 2,000 2,500 the Kanagawa riverhead since January (people) 2001. In November 2001, several volunteer leaders from the Ricoh Central Research Center began periodically monitoring historic buildings located at Seseragi Park next to the center in an attempt to preserve them. The elementary course at a Ricoh nature seminar (ninth session)

63 Mutual Social Employees Environmental Understanding Contribution Conservation Social Responsibilities

Thicket conservation at Lake Shinsei, Cleaning up Oiso Beach Cleaning around historic buildings Hadano Volunteer leaders cleaned up Oiso Beach in at Seseragi Park About once a month, volunteer leaders Kanagawa Prefecture. The beach looked clean Volunteer leaders assess historic buildings engage in such activities as taking care of at first, but upon closer inspection it was found and peripheral areas for damages every two thickets that shelter many wildlife species, go- to be littered with garbage. months and carry out repairs, if needed. ing on nature walks, and growing mushrooms.

Yadoriki Shinbokukai Distributing garbage bags and cleaning up Cleaning around the Atsugi Plant (a community organization) after the Tamagawa Fireworks Festival Twenty-nine volunteers working at the Atsugi Yadoriki Shinbokukai works with Kanagawa Volunteer leaders distributed garbage bags Plant cleaned up the park, roads, and river- Prefecture on riverhead forest conservation. and asked spectators to sort and dispose of beds around the plant. The organization’s monthly activities include their garbage appropriately. forest conservation, afforestation, and nature walks.

Planting palm trees in the Hakata Bay Area River and Wind Festival—Cleaning up Protecting the Ohsone Wetland Biotope Volunteer leaders planted 500 palm saplings the Tsurumi River Volunteers from Ricoh Unitechno joined a and learned about the inhabitants and the Volunteer leaders participated in the River and group to protect of the Ohsone wetland bio- status of pollution in the area. Wind Festival organized by the Green, River, tope. They examined and stocked the water and Wind Group, a local environmental NPO. with fish and cleaned the area. At the festival, children were taught how to make bamboo wind chimes.

Festa Costa del Gomi (Seaside Festival of Activities at a Kamakura beach “Hometown Forest” at the Gotemba Plant Garbage) in Senbonhama Volunteer leaders clean up beaches and build Volunteer leaders constructed a hometown Volunteer leaders participated in cleaning up a sand sculptures. The number of participants forest, complete with a pond and brook, on the stretch of beach in Numazu City. The partici- increases every year. plant’s site. At the opening ceremony, the pants from Ricoh filled up several 40-liter volunteers and the local children stocked the garbage bags with trash. brook with killifish and other fish.

64 The Americas

Improving Accessibility Because Ricoh’s exhibition was scheduled The United States: to be held in the center from September Ricoh Corporation 12, the copiers, printers, and facsimiles In the United States, section 508 of the that were to be used in the exhibition were Rehabilitation Act took effect in June donated to the FBI, the New York City 2001. This federal law requires IT prod- Police, the American Red Cross, the ucts and services to be accessible to peo- Mayor’s Office, and others. The machines ple with disabilities. Accordingly, Ricoh were used to make color copies of photo- An REI representative receives an EPA Corporation commissioned an independent graphs of missing persons, copies of DNA participation certificate organization to evaluate the accessibility identification, and a large number of Amer- of its Aficio 1045 (imagio Neo 450) digi- ican flags for distribution. The Office of Volunteer Activities (Cleaning) tal multifunctional copier and 5000L fac- Emergency Management (OEM), which The United States: REI simile in order to improve it. Furthermore, was located in the World Trade Center In March 2002, REI received the Local Ricoh Corporation invited government of- building, opened a temporary office at the Community Contribution Award from the ficials and held the Accessibility Forum in Hudson River pier and made use of Points of Light Foundation (POLF) for its August 2001 to present the Ricoh Group’s Ricoh’s products. In addition, Ricoh dedicated volunteer activities. More than ideas and activities related to accessibility. Corporation, Ricoh Business Systems, and 100 employees at REI’s California plant Savin offered to help transport and set up cleaned up a nearby canal and collected Activities that Support the equipment they donated and provided 800 pounds of garbage and 700 pounds of Restoration Efforts in New York instructions to hospitals, offices, and first- recyclable waste. At its Georgia plant, 22 Ricoh Corporation, Ricoh Business aid stations on their use upon request. employees cleaned up a park in the neigh- Systems, and Savin Savin Corporation took special action in borhood and collected 4,000 pounds of Ricoh Corporation and Savin Corporation providing Ricoh products to the Pentagon garbage and recyclable waste. have offices in a suburb of New York, and in Washington, offering 250–300 units in Ricoh Business Systems Inc. has one in total. Manhattan. As the restoration work progressed, an Immediately after the September 11 American flag was draped across the 5th Avenue building where Ricoh Business Former President terrorist attack, the companies looked after George Bush, the safety of their employees and an- Systems’ office is located as a sign of re- founder of POLF, and REI represen- nounced emergency guidelines to follow, spect to all those who suffered as a result tatives such as encouraging employees with miss- of the attack. ing family members to place their family before their work and to use offices as Activities with Government shelters for staff who were obliged to stay Administration in Manhattan, if necessary. The Jacob The United States: Javit’s Center, located near ground zero, REI (Ricoh Electronics, Inc.) was designated as an emergency center by The Reprographic Supply Group the Ther- Employees mal Media Group of REI were chosen to cleaning up a the Federal Bureau of Investigation (FBI) canal near the and the Federal Emergency Management participate in the National Environmental California plant Agency (FEMA) right after the attack. Performance Track organized by the U.S. Environmental Protection Agency (EPA). The groups were chosen because they Employees involved in cleaning up a park near the Georgia plant 1) strove to carry out their environmental responsibilities systematically, 2) took new measures to prevent and alleviate pollution, and 3) demonstrated leadership in environmental conservation in local communities as a good corporate citizen.

A building on 5th Avenue in New York City

65 Mutual Social Employees Environmental Understanding Contribution Conservation Social Responsibilities

Volunteer Activities Contributions to the Global that was destroyed in a fire. The company (Afforestation) Environment also began participating in afforestation Mexico: Ricoh Industrial de Mexico The United Kingdom: Gestetner activities in which 10,000 trees are sched- (RIM) Ricoh Advanced Materials (GRAM) uled to be planted in three years. In July 2001, 86 employees of RIM par- Gestetner Ricoh Advanced Materials Ltd. ticipated in a reforestation project for (GRAM) is a Scottish company that manu- Nevado de Toluca. After a Toluca munici- factures ink for the Priport printer. In pal clerk explained the importance of December 2001, they received the East greenery and methods of planting trees, District Prize of the VIBES Award, a re- the RIM employees planted 1,400 trees. gional environmental award. GRAM won the award because the company’s highly advanced wastewater treatment was highly Ricoh Hong Kong employees at afforestation evaluated. activities

Supporting Schools and Volunteer Activities (Cleaning) Creating Jobs Taiwan Ricoh Ricoh Hungary On June 1, 2001, employees of Taiwan

RIM employees planting trees in Ricoh Hungary Kft. supports a neighbor- Ricoh Co. Ltd. collected trash scattered a reforestation project hood technical school by donating funds, along the road within 3 km of its plant to donation of products as education materi- commemorate the anniversary of the com- Europe al, and providing technical support. The pany’s foundation. Sixty-nine employees company hires some of the school grad- collected 161 kg of trash while singing a Environmental Social uates. Half of the 16 employees in the garbage-collecting song. Contribution Award after-sales service department are grad- The Netherlands: NRG Benelux uates of the school. Being ranked first among 152 Dutch companies by Dutch evaluation company China and Taiwan KPMG, NRG Benelux B.V., a Ricoh Group sales company, received the Charity Walk Environmental Social Contribution Ricoh Hong Kong Taiwan Ricoh employees cleaning up the Award. Members of the Social Club and other area around its plant employees participated in the Walk for Community Interaction Millions charity. To further social contri- Asia-Pacific Region The United Kingdom: Ricoh UK butions on its own part, they ordered caps Ricoh UK Ltd. donates used Christmas and windbreakers with the Ricoh logo for Supporting an Organization that cards and CD-ROMs to a nearby kinder- the event from a company that hires the Assists the Mentally Challenged garten. The Christmas cards are given to physically challenged. Approximately 200 Ricoh Australia the children to practice using scissors to employees wore the cap and windbreaker In March 2002, Ricoh Australia Pty, Ltd. clip the pictures out, and the CD-ROMs in the charity walk. held a charity golf tournament and donated are used as decorations for parties, etc. the profit to the Sunnyfield Association, an NPO that assists the mentally challenged. The donation was used to establish a vocational training center for the mentally challenged. To date, Ricoh Australia has donated a total of A$500,000 to the association. Ricoh Hong Kong employees participating in Donated Christmas cards CD-ROMs to be used as the Walk for Millions decoration for parties Participating in Afforestation Activities and Giving Donations Ricoh Hong Kong Ricoh Hong Kong donated HK$300,000 to

restore a forest in Sai Kung, Hong Kong, Groundbreaking ceremony for a vocational training center for the mentally challenged 66 Social Responsibilities Environmental Education and Awareness Promotion

Promoting employee are the ones who actually conduct the update with the latest environmental infor- activities. The success or failure of any mation. Sharing the latest information and awareness of environmental activity depends upon the extent to know-how about environmental conserva- issues through environmental which employees understand its impor- tion activities works very effectively in the education and awareness tance. The Ricoh Group is promoting Ricoh Group. The Ricoh Group periodi- promotion activities employee awareness of environmental cally publishes the environmental infor- issues as well as their behavior in a mation journal Eco Today, which contains variety of ways, such as providing regional activities and external opinions of In successfully implementing sustain- environmental education, sharing rele- people, including those from environmen- able management, the aggressive vant know-how through IT networks, tal NPOs. Thus, the promotion of environmental conserva- and supporting the volunteer activities Ricoh Group promotes tion activities by each division is of employees through such means as employee environ- needed, as are statements from top nurturing environmental volunteer lead- mental management on the need for persever- ers and commending their actions. awareness ance in carrying out such activities. from a broad Urging individual employees to become Sharing Know-How perspective. more aware of environmental issues is equally important. Environmental con- Ricoh established a database in Japanese servation activities may appear to be a and English that anybody in Ricoh Group Ricoh Group’s environmental corporate responsibility, but employees companies all over the world can search or information journal Eco Today

Environmental Education System Ricoh Environmental Education System

Companywide Specialized Divisional Environmental requisite training education education awareness promotion

Rank-specific Specialists Divisions/ training business sites All employees

Introductory Internal Specialized Self-development Qualification Individual Sharing Training training examination training course system EMS programs information programs Events

• Training for managers • Basic License • Chemical substances • Correspondence • Pollution prevention • Environmental Divisional programs • Information journal, • Nurturing • Environment Assessment (BLA) administrators pocketbook education Examples: • Training for deputy safety/compliance with course Eco Today environmental conference managers related laws and • Work environment • CBT basic • Training for the volunteer leaders regulations • Environmental Web • Presentations measurement environmental personnel in charge of site • Family seminars • Training for section (introductory) specialists education environmental issues • Commemorative chiefs • Chemical substances seminars in the • Environmental • Internal auditor • Branch manager Environment Month • Introductory training safety/compliance with measurement training training for new employees related laws and specialists regulations (advanced) • Follow-up training for • Hazardous materials internal auditors • Environment-related laws and handling specialists regulations • Environmental management system standards •LCA • Environmental impact assessment at business sites • Technologies for environmental conservation at business sites • Technologies for the environmental impact assessment of products • Recyclable designs

Five-Region Environment Meetings promoting employee awareness of envi- Environment-Related Seminars and In December 2001, a five-region environ- ronmental issues is highly effective. Number of Participants FY FY FY FY * See pages 39, 42, and 46. Name of Seminar ment meeting was held at Ricoh’s Omori 1998 1999 2000 2001 Office attended by each region’s represen- Recyclable Designs tatives. Some of the sessions at the meet- 18 21 32 13 Japan Technologies for the ing were held according to themes, such as Environmental Impact 22 22 26 27 green marketing and recycling. The par- Assessment of Products Environmental Education Environment-Related ticipants shared information to promote Laws and Regulations 52 81 66 59 The Ricoh Group established an education global environmental management. Environmental Management System 69 8 30 35 system for Group companies in Japan to Standards help employees become more environ- LCA 20 46 — 18 Zero-Waste-to-Landfill Activities mentally aware professionals. Under this Chemical Substance Safety/ The Ricoh Group achieved Zero-Waste-to- system, a variety of seminars and training Compliance with Related Laws 19 29 25 30 and Regulations (Introductory) Landfill* at production sites worldwide as sessions are held, including those for new Chemical Substance Safety/ Compliance with Related Laws 18 26 16 29 well as at its Japanese nonproduction sites employees, designers, and internal auditors and Regulations (Advanced) and marketing and after-sales service sites. Technologies for under Ricoh’s environmental management Environmental Conser- 16 — 10 3 Such achievements can be obtained only system. Furthermore, employees are en- vation at Business Sites Environmental Impact if all employees are closely united and are Assessment 36 — 13 8 couraged to obtain official qualifications at Business Sites striving for the same goal, such as setting as pollution control managers and other Total Number 270 233 218 222 up detailed waste sorting. Therefore, positions. of Participants

67 Mutual Social Employees Environmental Understanding Contribution Conservation Social Responsibilities

The Ricoh Group Environmental Association to give speeches to promote products. Because tens of thousands of Conference the awareness of social contribution. recovered machines were marketed In December 2001, the people in charge of * See page 62. throughout Europe in fiscal 2001, the meet- environmental issues from five regions ing has been handled by personnel in gathered for the Eighth Ricoh Group Envi- Commending Environmental charge of environmental issues as well as ronmental Conference. Ricoh president Activities marketing directors in charge of develop- Masamitsu Sakurai gave a speech on Ricoh commends employees for their out- ing environment-oriented businesses. the promotion of sustainable management, standing performances in environmental and a representative from Sony Corporation, conservation activities by awarding “the The United Kingdom a company that is world renown for its ad- Minori Prize” in recognition of various ac- Ricoh UK Ltd. vances in environmental conservation, tivities. Along with this, Ricoh is planning Ricoh UK distributes its in-house news- gave a speech as well. In November to establish a unique system to commend letter CHEW to promote employee aware- 2001, Ricoh Ricoh Group companies for their outstand- ness of environmental conservation, health Unitechno held ing environmental conservation activities. and safety. As part of its energy conserva- its Second tion practices, the company set up an intra- Environmental The Americas net which enables all employees to know Conference, in- The United States the amount of electric power consumed in viting residents The Americas Meeting on their division. In November 2001, the staff and people from the Environment in charge of environmental conservation, the local The Eighth Ricoh Group safety and health gave awareness- Environmental Conference Ricoh Corporation (New Jersey) holds government. promotion presentations to all employees. regular meetings on the environment for those in charge of environmental issues at Nurturing Environmental France Ricoh, Savin, and Lanier. The meetings Volunteer Leaders Ricoh France S.A. take place in the form of teleconferences An employee awareness survey revealed To promote environmental conservation to produce time efficiency and to eliminate that many employees were interested in activities both within and outside the com- the environmental impact of traveling to a environmental volunteer activities but pany, Ricoh France has prepared a bro- particular meeting site. At the March 2002 had never participated in them. To sup- chure distributed to all 1,500 employees. meeting, presentations were given, includ- port these employees, Ricoh started a By the end of March 2001, 60% of all em- ing one by leadership-training program* in 1999. ployees had taken environmental conser- Savin on its Environmental volunteer activities are in- vation training. efforts to dispensable tools in promoting employee promote toner awareness of environmental conservation. Hungary cartridge Employees can truly understand the im- Ricoh Hungary Kft. collection. portance of environmental conservation Ricoh Hungary conducted its own educa- more by actually taking part in volunteer The Americas meeting on the tional program for all 65 employees by environment (March 2002) activities and sharing what they have using a handbook issued by the Inter- learned than by simply reading about Europe national Environment Association Hungary it in books. Office to cover such general issues as * See page 63. European Meeting on environmental conservation and office the Environment equipment with less environmental im- Promoting Awareness through In February 2002, the European Environ- pact. The company is planning to hold a Lectures ment Meeting was held at Ricoh Industrie regular meeting for its customers as well Ricoh started a month-long campaign to France with 55 participants from 28 com- as its employees. promote employee awareness of environ- panies in 13 countries. The main agenda mental conservation in fiscal 2001. As part included efforts by companies for subse- Asia-Pacific Region of this campaign, Ricoh gave lectures quent developments following ISO 14001 throughout the month. In fiscal 2002, any acquisition, seminars on the EU Directive New Zealand participant from local communities is wel- on Waste Electrical and Electronic Equip- Ricoh New Zealand Ltd. come to share the information they have. ment (WEEE) (European regulations for To improve customer satisfaction, Ricoh FreeWill*, a social contribution club, recycling scheduled to be enforced in New Zealand introduced a coaching sys- asked supporting organizations Medicines 2006), and the promotion of the collection tem that promotes employee awareness of Sans Frontiers and the Hearing Dog Training and recycling of toner cartridges and other customer satisfaction.

68 Social Responsibilities Personnel-Related Measures

Changes in Total DPI Evaluation Scores over the Past Establishing a system to issues and the necessity of change. It is Three Years from Subordinates and Business Associates

nurture employees’ sense of essential for top and other managers to General Manager General Manager challenge and provide society embody the corporate vision and promote 3.6 3.59 3.59 with new values change. Such a new managerial environ- 3.55 3.54 ment needs a new kind of manager or 3.5 3.50 leader, one who not only solves or isolates 3.47 In accordance with the Ricoh Group’s 3.45 problems but also initiates change accord- 3.44 3.45 14th mid-term management plan, 3.4 3.40 ing to a clearly defined vision. This plan 3.38 which started in fiscal 2002, Ricoh 3.35 also requires groups of people who share gives top priority to becoming the win- 3.3 their own vision with their new leaders to (FY) 1999 2000 2001 ners in the 21st century by being the plan and make creative changes to achieve World No. 1 Product Engineering Systems that Encourage Employees goals. In 1998, Ricoh defined leadership Company. To this end, Ricoh strives to to Tackle Challenges in Jobs behavior and established the Development fulfill the Group’s vision of being a vi- They Want to Do Program for Innovative Leaders (DPI) to Establishing a system that encourages brant company in which employees reform groups led by innovative leaders. employees to tackle challenges in jobs work earnestly, are self-motivated, and The program is implemented at Ricoh and they want to do is indispensable in have such enthusiasm that the com- Ricoh Group companies in Japan. Under employee motivation. In the past, most pany is able to generate the largest this program, leaders are evaluated by personnel transfers were done according profit ever. In such a vibrant company, their subordinates and business associates to the needs of the Company. Now, Ricoh employees are able to 1) share the in such areas as attitude toward and deal- implements a system in which personnel same clearly defined vision, 2) set ing of issues, treatment of subordinates, transfers are determined according to the challenging goals, 3) obtain satisfac- and basic attitude. The results of the eval- aptitude and desire of the employee and tory results and be fairly evaluated and uation are then given to the leaders. Other through discussions with supervising man- treated, and 4) be proud of being a efforts to bring about change using a agers. The Objective-oriented Interview part of the Ricoh Group. The Ricoh clearly defined vision include holding and Evaluation System and Professional Group is creating a corporate culture seminars to enhance leadership behavior Development Program (PDP) are two that facilitates self-motivation and a toward change and establishing a database examples. Those chosen will be able to creative business structure for all of the best ways of cultivating such behav- display their self-motivation and creativ- employees and continues to provide ior, which all Ricoh Group employees in ity. Ricoh also establishes an in-house quality and benefits to customers and Japan can access. staff recruitment system in which employ- society as a whole by establishing a ees volunteer to tackle challenges in jobs system that satisfies all the above that they want to do. items. In an increasingly global soci- Areas of Leadership in which ety, Ricoh would like to improve its Ricoh Expects Innovative Leaders Number of the Employees Transferred according to the existing systems and establish new to Improve In-House Staff Recruitment System ones so that eager and able employ- • Vision (Showing the right direction) (people) • Change (Striving for improvement) 100 ees will always have the chance to 97 • Pursuit of goals (Motivating the whole 80 work in a responsible position regard- group to achieve goals) 60 less of gender, age, nationality, race, • Empowerment (Giving motivation) or religion. • Development of human resources 40 (Helping employees develop their abilities) 20 27 • Basic attitude (Leading by example) Promoting Change by Having a 10 0 Clearly Defined Vision (FY) 1999 2000 2001 To successfully respond to changing cus- Re-Employment of Retirees tomer needs, the management structure, In an aging society with fewer children, it administration, system, and leadership is important for the Company to make use behavior all need to be flexible enough to of the vast expertise and advanced skills change accordingly at a moment’s notice. that retirees possess to maintain and im- To achieve this, all employees need to prove its competitiveness and vitality. have the same clearly defined short-term Therefore, Ricoh started a system in which vision. Only then, can they be aware of retirees are registered upon request at

69 Mutual Social Employees Environmental Understanding Contribution Conservation Social Responsibilities

Ricoh Human Creates Co., Ltd., a Ricoh Protecting the Personal Information Employing the Physically affiliate, and dispatched to new work- of Employees and Customers Challenged places where they can make use of their Ricoh sets guidelines in Japan on protect- As of June 2001, Ricoh’s employment rate expertise in a variety of areas. Ricoh is ing the personal information of employees of the physically challenged is 1.87%, contemplating the possibility of dispatch- and company secrets in Ricoh’s Code of exceeding the employment rate required ing retirees to non-Ricoh Group compa- Conduct*. Ricoh Human Creates Co., by Japanese law. To reduce the inconve- nies in the future. Ltd., the main businesses of which are per- niences faced by the physically challenged, sonnel training and temporary staffing, es- the Company equips its plants, offices, and Results of the Reemployment System tablished a system to protect the personal other facilities with ramps and other amen- (people) information of temporary staff as well as ities; promotes employee awareness of is- 60 sues surrounding the physically challenged; 58 client information and to obtain certifica- and holds sign language training seminars. 40 47 tion from Japan Information Processing Employees voluntarily participate in clubs 40 Development Corporation (JIPDEC) in to learn sign language. Ricoh Espoir Ltd. 20 April 2001. Ricoh Human Creates started was established to promote the employment 0 a consulting business using know-how (FY) 1999 2000 2001 of people who are severely physically or obtained from JIPDEC mentally challenged. The facilities of the certification to help company were constructed with employee Ricoh Group companies needs in mind in order to provide a work Surveying Employee Attitude engage in developing environment in which each employee can Ricoh started its Opinion Survey in 1997 an information system work comfortably. In 1996, Ricoh Espoir to find out what employees are enthusias- and obtain the said received a prize in excellence from the tic about and satisfied with, to analyze certification. Japan Association for the Employment of JIPDEC Mark for protecting relevant factors, to clarify issues, and to *See page 57. personal information Persons with Disabilities. change the quality of management and organizational climates. Employees are Making Efforts to Provide Equal Supporting Volunteer Activities given a questionnaire that asks them about Employment Opportunities for At Ricoh, employees can take time off to their jobs and their work, efforts toward Men and Women volunteer for activities, take care of family achieving customer satisfaction (CS), Out of the 265 managers at Ricoh Co., members, or recover from non-work- bosses, the workplace, the development of Ltd. Japan, only two are women, and out related injuries or diseases. Moreover, abilities, and the Company’s management of 32 directors and operating officers, only employees can take time off from the of personnel. Ricoh Corporation in the one is a woman (not including outside Company for a certain period of time to United States introduced the Employee directors). In efforts to provide equal volunteer for activities under a leave of Satisfaction Management (ESM) system, employment opportunities for men and absence system for volunteer activities. At which gives subordinates a chance to women, Ricoh identified and analyzed the Ricoh Hong Kong Ltd. and Ricoh Office evaluate their managers, in an effort to current employment situation through the Solutions, which are both located in Hong improve employee satisfaction toward the use of surveys and interviews. Aiming to Kong, employees can take five days off a company. In the United States, “fairness” create a workplace free from sexual har- year for volunteering activities and are is highly valued. If a company wishes to assment, the Company promotes employee awarded for their efforts. In fiscal 2001, be socially reliable, it needs to ensure that awareness of the problem, established the five employees requested leave to join the there is no discrimination in its hiring, pro- Secretariat of the Human Rights Promo- Hong Kong Red Cross, the Boy Scouts, motion, and payment practices in terms of tion Committee within the Company, and and the Hong Kong Rescue Squad. The race, religion, or gender. set up a consulting service outside the five employees were awarded for their efforts. Company.

Ricoh Office Solutions employees who participated in volunteer activities under the leave of absence system

70 Social Responsibilities Health and Safety

Promoting activities to hazards and diseases. For almost a year, Company to quickly spread relevant infor- protect employees’ health since August 2000, a companywide pro- mation to employees and to promote the and safety as part of gram carried out by the people in charge sharing of know-how throughout the corporate social of health and safety affairs at nine busi- Company. The Gotemba Plant, taking responsibility (CSR) ness sites in Japan has been acquiring the advantage of its OHSAS 18001 certifica- know-how to establish this system. In the tion, established the Gotemba OHSMS* future, this effort is to be expanded to the navigation system to promote the sharing Enterprise evaluation standards now Company’s Japanese production sites, of know-how with other business sites. include not only economic aspects, including the Numazu Plant, as well as The in-house network is also used for the such as business performance, but other Ricoh Group companies. issuance of health management news to also environmental and social aspects. promote employee awareness of health Looking at employees’ health and and safety. In fiscal 2002, the information safety more carefully, the Ricoh Group was open to the employees of affiliates as positions occupational health and well. safety activities as an important part of * OHSMS: Occupational Health and Safety Management System CSR. Ricoh, in line with its management philosophy of thinking like an Mental Health Care entrepreneur and finding personal Ricoh considers mental health care a cur- value in its work, promotes people- The health and safety promotion staff at Ricoh’s Gotemba Plant rent issue to be included in its health and oriented management. Moreover, this Making Use of an In-House safety measures and is doing its best to philosophy is always applied to occu- Network protect each employee’s privacy. Compa- pational health and safety activities. Ricoh characteristically took advantage nywide support is given to employees Recently, Ricoh, in promoting the of the digital network technology it has under this system, which is based on the establishment of an occupational become so good at creating in its business Employee Assistance Program (EAP). health and safety management sys- to establish a database and network to dis- Focusing on education in mental health tem, made continuous efforts to seminate information on health and safety. care promotion activities, the Company is ensure a higher level of health and The database and network allows the planning to promote educational programs safety and create a comfortable and for industrial mental health care staff and vibrant work environment. other relevant personnel in managerial positions in stages. In fiscal 2001, a trial Japan introductory training program using the latest materials developed by experts was introduced to employees in managerial OHSAS 18001 Certification Gotemba Plant’s OHSMS positions. The short program is designed Awarded navigation system to let each employee notice his/her own On March 20, 2002, Ricoh’s Gotemba mental health condition. Plant obtained OHSAS 18001, an inter- Health Management News national occupational health and safety management certification. The plant was the first in the Ricoh Group to get this Ricoh’s Mental Health Care System certificate. The occupational health and • Identify stress safety management system is a new • Take measures against stress Safety and Health Group • Voluntarily seek advice on stress management scheme to reduce, eliminate, or prevent • Gain basic knowledge on mental health hazards at the workplace. The system aims • Supports mental health care, provides relevant Employees information, and improves the environment (Self-care) at the continual reduction of occupational • Improve the work environment • Give suggestions to employees Industrial health staff Managers (Care provided by industrial health staff External organizations (Line-care) at business sites) • Utilizing external resources • Open seminars • Support workplaces • Understand actual workplace condition • Improve the work environment Employees in charge of • Give consultation and reference personnel at divisions • Give advice on medical treatment, on returning to work, and on adapting to the workplace • Build and maintain networks to utilize both The certificate of DNV Awareness in-house and external resources (DET NORSKE VERITAS AS) promotion (based in Oslo, Norway)

71 Mutual Social Employees Environmental Understanding Contribution Conservation Social Responsibilities

Health Checkups and Complete Safety Management Activities Work Environment Measurement Medical Examinations To reduce occupational hazards, Ricoh is The Ricoh Group continues to measure its Ricoh offers health checkups and summa- promoting on-site voluntary safety activi- work environment to prevent work-related ry medical examinations to employees ties for employees, especially at its health problems. The Ricoh Group en- under the age of 40 (summary medical production sites. Such activities include deavors to improve the work environment examinations to employees between the examining accident prevention measures* by measuring not only those substances ages of 35 and 40) for the prevention and based on the near-accident experiences of that are required to be measured by law early diagnosis of diseases. Ricoh requires employees, providing introductory training but also those substances that are not a complete medical examination for em- on safety to new employees, promoting required to be measured by law but may ployees 40 years old or older. Further- employee awareness of safety, and having be hazardous to employees’ health. more, for employees whose checkups or industrial doctors visit the workplace. examinations have revealed health prob- Moreover, should an accident occur, a Work Environment Measurement lems, the Company established a follow- careful examination will be made to estab- (Ricoh and its affiliates in Japan) up system for re-examinations, detailed lish measures to prevent reoccurrence. The (Number of workplaces) 150 149 examinations, continued observation, and site where the accident occurred will then 142 132 131 130 126 128 medical treatment. Thus, the Company’s be notified of the newly established mea- 120 122 121 124 efforts toward the prevention, early diag- sures to prevent reoccurrence in the future. 90 nosis, and treatment of diseases are ongo- * Measures to prevent accidents from happening by looking at oc- currences that came close to becoming an accident but that only ing. Ricoh’s health management system frightened or surprised the employee(s) involved 60 also covers the family members of employees, with complete medical examina- Number of Occupational Hazards at Ricoh 30 9 6 7 2 4 5 (cases) 4 1 1 0 tions offered to employees’ spouses. 0 25 2 0 1 3 4 2 0 000 24 First half Second half First half Second half First half Second half First half Second half First half Second half 20 22 20 20 (FY) 1997 1998 1999 2000 2001 Health Checkup Rate 15 16 1st control area (%) In most of the workplaces (95%), the concentration of 100 10 toxic substances in the atmosphere does not exceed 95 96 97 96 97 the controlled density. 80 5 2nd control area The average concentration of toxic substances in the 60 0 atmosphere of the workplaces does not exceed the (FY) 1997 1998 1999 2000 2001 controlled density. 40 3rd control area Records of Outstanding Accident-Free Operations The average concentration of toxic substances in the 20 atmosphere of the workplaces exceeds the controlled • Level 5 accident-free operations (23.8 million hours) density. Atsugi Plant (May 1999) 0 (FY) 1997 1998 1999 2000 2001 • Level 4 accident-free operations (15.9 million hours) Atsugi Plant (April 1996)

• Level 4 accident-free operations (15.9 million hours) Omori Office (August 1991) Complete Medical Examination Rate • Level 1 accident-free operations (4.6 million hours) Numazu Plant (March 2001, this level is continually (%) being surpassed) 100 99 98 97 97 96 80

0 (FY) 1997 1998 1999 2000 2001

Certificate commending the Numazu Plant for its accident-free operations

72 Environmental Accounting

Aiming to establish an Environmental Management Corporate Environmental environmental accounting Indicators Accounting system to support managerial Environmental management indicators are Corporate environmental accounting decision making and evaluate needed to appropriately evaluate the level works as a management tool to evaluate sustainable management of sustainable management and facilitate the sustainable management of the busi- further improvement. To this end, the indi- ness activities of a company as a whole. cators should be set based on the three fac- Once environmental accounting data is The Ricoh Group regards its environmental disclosed, it is necessary to have a frame- accounting system as an important tool to tors shown below. evaluate and improve its sustainable work that will hold the company ac- 1)1 Economic Benefits of Environmental countable to society and allow it to be management, which involves activities Conservation Activities This factor shows how economically rational compared with other companies. Fol- that help conserve the environment and, environmental conservation activities are. lowing the environmental accounting at the same time, are profitable. The Ricoh Economic benefits Group’s environmental accounting system Environmental conservation costs guidelines set forth by the Ministry of comprises corporate environmental the Environment in Japan for general If the quotient is one or greater (i.e., the economic benefits are equal to or greater than the environ- frameworks, the Ricoh Group estab- accounting, which evaluates business mental costs), then sustainable management is activities as a whole, and segment environ- considered valid. lished its own system through repeated Economic benefits + social cost reduction trial and error in calculating economic mental accounting, which examines the Environmental conservation costs managerial status of projects and divisions. benefits, integrating environmental im- If the quotient is one or greater (i.e., the sum of eco- Since its environmental accounting system nomic benefits and social cost reduction is equal to pact, and creating indicators. The Ricoh or greater than the environmental conservation was disclosed for the first time in 1999, the costs), then environmental management is Group continues its efforts to establish a considered valid. Ricoh Group has enthusiastically updated decision making support tool that is as Environmental impact reduction the system and, as a result, has garnered Environmental conservation costs good as a business accounting system. a good enough reputation to, for example, This equation is used to evaluate improvements in the efficiency of investments and other projects. be used as a benchmark by other compa- Environmental Conservation Costs nies. Nevertheless, there are still many 2) Environmental Efficiency of Business Environmental conservation costs are problems to be solved using this as a man- Activities This factor shows whether the environmental impact those costs associated with environmental agerial decision-making tool. The Ricoh of business activities is acceptable and whether those activities respond to social requests. conservation, namely, capital investment, Group is making special efforts to enhance depreciation, personnel expenses, and its internal management functions, exam- Sales Total environmental impact overhead expenses. Cost items are coded ine a new framework system, and develop (physical or monetary amount) by category in accordance with the indicators that more appropriately evaluate This equation is used to evaluate whether environmental impact corresponds to business size. Ministry of the Environment’s Guideline for sustainable management. Value-added business activities Total environmental impact Introducing an Environmental Accounting (physical or monetary amount) Establishing an Environmental System (2002 Version). Accounting divi- This equation is used to evaluate whether profit Accounting System corresponds to environmental impact. sions add up the data using an accounting system. Costs related to multiple catego- The Ricoh Group is making continuous 3) Environmental Management ries are divided proportionally among efforts to establish a sustainable man- This factor is used to determine whether the environmental management process is appropriate. those related categories to be summed up. agement that will help it to survive the In-house audits, site reports, environmental technol- current prolonged business competition. ogy development process, environmental labels, green purchasing, and other aspects are included. Economic Benefits The Ricoh Group first reorganized and In order to compare environmental conser- defined its idea of sustainable management and then examined indicators vation costs and come up with compre- used to evaluate and analyze the level of Environmental accounting needs to hensive results, economic benefits are sustainable management. At present, a work as a tool to measure the economic calculated in some aspects, not only in new environmental accounting (environ- efficiency of environmental conservation terms of substantial effects but also expec- mental management accounting) frame- activities and the environmental efficiency ted and incidental effects. To improve the work is under consideration to be used as of business activities mentioned above. accuracy of determining expected effects, a tool to measure and manage environ- Corporate environmental accounting the “contribution to value-added research mental management indicators by prod- works as a tool to measure the economic and development” item in this report was uct unit and function (division). All efficiency of environmental conservation calculated based on actual sales results, information obtained is consolidated activities and environmental efficiency of and any profit gained is considered to under this environmental management business activities of the company as a be the result of environment-friendly information system. whole. functions.

73 Development of Indicators Economic Benefits The Ricoh Group set indicators to eval- Economic benefits are calculated as corporate effects (effects within the Ricoh Group) and social uate, analyze, and disclose the environ- effects (effects outside the Ricoh Group). mental conservation efficiency of business Substantial effect: Actual gains from cost and energy reduction as well as sales of recycled products activities individually and as a whole. Expected effect: Amount to which environmental measures contributed Such indicators as the eco-efficiency (EE) Incidental effect: Pollution- and lawsuit-related costs avoided value and eco-ratio were once used mainly Social effect: Reduction in electricity expenses due to the use of energy-saving products or reduction in waste disposal cost (Japan only) to compare the cost effectiveness of investments and projects. Those indicators Formula of Expected Effects are therefore excluded from corporate Contribution to (Production output - raw material costs) × business area costs/ value-added production: manufacturing costs environmental accounting and used only Effects of media coverage: Area of newspaper advertisement/newspaper page area × in segment environmental accounting in advertisement cost per page Effects of environmental Number of people attending internal environmental this report. The EE value and eco- education: education seminars × seminar fee for outside participants efficiency index (EEI), which are indica- Contribution to value-added Gross profit × contribution rate to gross margin using the green point research and development: (See page 78) tors used to determine any improvements Publicity from environmental Number of visitors to environmental Web site × unit price of the in environmental impact, are now called advertisements: environmental report the eco-improvement (EI) value and eco- Formula of Incidental Effects improvement index (EII), respectively, Amount of incidental effect: Standard amount × occurrence coefficient × impact coefficient taking into consideration the original Items to be calculated: Areas of improvement to prevent pollution Standard amount: Amount set for lawsuits, suspension of operations, and restoration meaning of the terms. The definition of EEI was changed from “an index that rep- resents improvements in environmental conservation activities” to “an index that Environmental Conservation proval. At present, the conversion of en- compares the total environmental impact Effects vironmental impact into monetary value is amount with sales.” In addition to the indi- For any given year, the environmental just one option, and it needs to be exam- cators mentioned above, new ones were impact reduction amount can be used in ined further in the future. created for this report. calculating environmental conservation * EPS: Environmental priority strategies in product design effects. There are six environmental impact items: CO2, NOx, SOx, biochemical oxygen demand (BOD), final waste disposal amount, and Pollutant Release and Transfer Register (PRTR) substances. Indicators

• Eco-improvement value (EI Value) = Environmental impact reduction amount/environmental conservation costs Calculation of Social Cost (ton/hundred million yen) To determine how much environmental impact per ¥100 million in environmental conservation costs is reduced for In the past, environmental conservation ef- each environmental impact item fects were calculated in terms of physical • Eco-ratio = Gross profit/environmental impact amount (ton/hundred million yen) amount. For a clearer comparison with en- To determine the amount of value-added from business activities obtained per one-ton equivalent of environmental impact discharged vironmental conservation costs, environmental impact is now calculated in terms • Eco-improvement index (EII) = Total environmental impact reduction amount (1)/Total environmental conservation cost amount (thousands of yen) of monetary value. The monetary value of • Improvement ratio of social cost (IRS) = Total social cost reduction amount (2)/Total environmental conservation cost amount (thousands of yen) environmental impact is termed “social To determine whether the reduction in ((1) environmental impact/(2) social cost) is efficient costs” (costs of external diseconomies). • Eco-index = Gross profit (thousands of yen)/total environmental impact amount (1) The conversion coefficient used is based • Ratio of profit to social cost (RPS) = Gross profit/total social cost (2) To determine whether any profit is made when a company conducts business activities at the appropriate level on EPS* Indicator Ver. 2000, which is an ((1) environmental impact/(2) social cost) impact assessment method in monetary • Eco-efficiency index (EEI) = Sales (thousands of yen)/total environmental impact amount (1) • Ratio of sales to social cost (RSS) = Sales/total social cost (2) value. The reference figure used is To determine whether a business activity at the appropriate level ((1) environmental impact/(2) social cost) is 108/t-CO2 (¥11,945/t-CO2). This figure is suitable for its scale almost equal to the Ricoh Group’s refer- • Ratio of eco effect (REE) = Environmental effect (total economic benefit + total social cost reduction amount)/total environmental conservation cost ence amount (¥16,000/t-CO2), which is • Ratio of eco profit (REP) = Total economic benefit/total environmental conservation cost calculated from investments to reduce To determine whether an environmental conservation activity is conducted in an economically rational way CO2. This system received internal ap-

74 Fiscal 2001 Ricoh Group Corporate Environmental Accounting (Reviewed by BVQI [26])

Cost unit: ¥100 million (Exchange rate: $1 = ¥125.1 1 = ¥110.6) Costs Economic Benefits Item Environmental Environmental Monetary Investments Costs Main Costs Effects Category Item

11.8 a Energy savings and improved waste processing efficiency Pollution prevention cost ¥484 million Business area Global environmental costs 5.2 24.1 conservation cost ¥374 million 44.4 b Contribution to value-added production Resource circulation cost ¥1,557 million Avoidance of risk in restoring environments and avoidance 21.7 c of lawsuits

Upstream/ 33.4 a Sales of recycled products, etc. Cost of collecting, disassembling, and Downstream 0.0 48.7 costs recycling used products [21.5] S Reduction in society’s waste disposal cost Cost generated by the division in charge of Managerial Effects of media coverage and environmental 0.5 30.8 environmental conservation; cost to establish and 1.8 b activity costs maintain an environmental management system education Contribution to gross margin through research and Research and 38.1 b development development 0.0 18.8 Research and development costs for costs environmental impact reduction [8.4] Reduction in user’s electricity expenses thanks to an S improved energy saving function and product performance

Social activity Costs of preparing environmental costs 0.0 4.5 reports and advertisements 4.4 b Publicity from environmental advertisements, etc.

Environmental Costs of restoring soil and damage costs 0.0 1.3 environment-related reconciliation None Other costs 0.1 0.9 Other costs for environmental conservation

Total 5.8 129.1 155.6 Sum of a, b, and c. a: Substantial effect b: Expected effect 㨇29.9㨉 Total S’s c: Incidental effect Total capital 252.8 investment S: Social effect

Fiscal 2001 Environmental determined that the investments worked which were believed to have contributed Accounting System well. As for the resource depletion issue, to actual corporate P/L. The estimation Environmental conservation costs gen- the final waste disposal amount was was calculated as 0.64, falling short of erally increased despite a decrease in reduced more than 70% against the the original sustainable management environmental investments because the previous year, thanks to the global pro- goal of 1.0 or higher. By developing scope of environmental costs was extend- motion of Zero-Waste-to-Landfill activi- measures to achieve this goal, the Ricoh ed. It is generally believed that prod- ties. Furthermore, PRTR substances Group aims at further realizing sustain- uct recycling costs and research and were reduced almost 50%. In fiscal able management. development costs, in particular, 2001, the Ricoh Group successfully and increased because product environ- significantly reduced its overall environmental impact was mainly reduced. mental impact. The Group’s corporate Changes in the Eco-Index (Ricoh only) Economic benefits doubled from the added value is also growing, along with 1,500 1,200 a significant improvement in the eco- 759.2 1,339.7 previous year due to an increase in sales 900 530.0 of recycled products in overseas market. index. The ratio of eco profit (REP) 600 336.2 376.7 300 Social (customer) economic benefits also exceeded 1.0 for all economic benefits, 0 (FY) 1997 1998 1999 2000 2001 increased as a result of eco-friendly and the ratio revealed that the economic Changes in the Eco-Index (the Ricoh Group) products well accepted by the market. benefits obtained corresponded to environmental conservation costs. The 1,500 As for environmental conservation 1,200 900 1,204.1 effects, the Ricoh Group reduced CO2 estimated environmental income rate 538.8 600 153.8 232.8 emissions 4.9%, more than five times was calculated using the substantial 300 effect and contribution to gross margin, 0 that in the previous year, and it was (FY) 1998 1999 2000 2001

75 Collected data Source: 79 Ricoh Group companies. (See page 2.) Collection period: From April 1, 2001, to March 31, 2002 (for costs and total environmental impact) * Environmental impact reduction shows the difference of the fiscal 2001 performance from the fiscal 2000 performance.

Effect on Environmental Conservation Environmental Impact Converted Value of Social Conversion Reduction Converted Quantity Social Cost Reduction Costs Coefficient Environmental Impact Reduction (t) Rate of Reduction Reduction Values Total (t)

Environmental impact reduction at business sites

CO2 14,850.5 5.0% 14,851 1.77 CO2 281,186 281,186 33.59 1.0

NOx 8.6 4.4% 169 0.02 NOx 186 3,672 0.44 19.7

SOx 0.7 2.9% 21 0.00 SOx 24 712 0.09 30.3

BOD -8.1 -17.1% -0 - 0.00 BOD 56 1 0.00 0.02

Final waste 72.5% 448,240 53.54 Final waste 170,435 20.36 104.0 disposal amount 4,310.0 disposal amount 1,639

(Ricoh standards 93,707 11.19 PRTR substance 125,236 14.96 PRTR substance emissions emissions per substance) Environmental impact reduction through products

CO2 ...... 13,043.8 (t) NOx ...... 10.7 (t) SOx ...... 8.5 (t) Final waste disposal amount ...26,920.0 (t) Calculation for companies in Japan only

1.21 556,988 66.52 581,242 69.44 Ratio of eco profit 0.0431 0.515 1,204.1 100.8 1.95 Eco- Improvement Eco-index Ratio of profit Ratio of improvement ratio of social to social cost eco effect index cost

Penalties and Fines Segment Environmental At the end of fiscal 2001, Ricoh Asia Accounting Industry Ltd. (RAI) in China constructed Corporate environmental accounting * Estimated costs and effects of CO2 reduction at business sites (page 17) a wastewater disposal facility, which targets corporate environmental activi- Estimated costs and effects of CO2 reduction with energy- ties as a whole but can be used in deci- saving products (page 17) enables the company to dispose of waste- Estimated costs and effects of chemical substance water itself. Prior to the building of the sion making only in limited cases. reduction at business sites (page 17) Estimated costs and effects of an ice thermal storage/ facility, RAI paid for the disposal of its However, segment environmental chilled water system as a part of environmental accounting, in which corporate environ- conservation (page 36) wastewater even though such disposal did Estimated costs and effects of a semiconductor plant not entail any penalties. mental activities are conducted by pro- (Yashiro Plant) as a part of environmental conservation ject, can be used in decision making in (page 40) Penalties and Fines for Noncompliance with Environmental conservation costs and effects of a cleaning Environmental Laws and Regulations (Ricoh Group) many cases. Segment environmental process (Ricoh Industrie France) (page 40) Environmental conservation costs and effects in the QSU FY 1999 FY 2000 FY 2001 accounting is especially useful in pre- product development (page 48) Environmental conservation costs and effects in product Number of cases 000 dicting the effects of environmental recycling in fiscal 2001 (page 50) Amount 000 activities. The Ricoh Group announced its adoption of segment environmental accounting in 1999 and put it into practice by taking various measures. In fiscal 2001, the Group continues its efforts to promote sustainable management by conducting segment environmental accounting at various opportunities*.

76 The Ricoh Group’s Corporate Environmental Accounting in Fiscal 2001 Collected data Source: 79 Ricoh Group companies. (See page 2.) (Eco-Balance Environmental Accounting) Collection period: From April 1, 2001, to March 31, 2002 Manufacturing Process Use Procurement Trans- of Materials Production Site Marketing Manage- portation Electric Paper and Parts Regions other ment Power Japan than Japan Energy consumption Electric power, heavy oil, etc. [TJ] 4,006 3,391 1,384 567 418 796 12,472 28,037

Crude oil [thousands of tons] 21 Iron ore [thousands of tons] 53 [thousands of tons] Resource Manganese ore 2 consumption Nickel ore [thousands of tons] 2 Chromium ore [thousands of tons] 1 Coal [thousands of tons] 30 Other [thousands of tons] Input 11 4,187 Water consumption Tap water/well water/industrial water [thousands of tons] 3,098 3,290 192 Arsenic (As) and its compounds [t] 0.23 Cadmium (Cd) and its compounds [t] 0.04 Lead (Pb) and its compounds [t] 45.04 Trivalent/hexavalent chromium and their compounds [t] 0.31 Chemical Polyaromatic hydrocarbons [t] 0.37 substances Toluene [t] 271.57 0.46 Dichloromethane [t] 51.06 25.40 HFC-134A [t] Sulfur hexafluoride [t] 0.23 Other [t] 133.60 33.30 46.90 NOx [t] 34 15 4 58 46 390 6,007 Output SOx [t] 18 25 18 310 21,681 Environmental CO2 [thousands of tons] 228 147 170 23 25 44 471 3,460 impact emission CH4 [t] 3,039 356 391 35 131 817 BOD [t] 14 44 COD [t] 22 84 11,029 Fossil fuel 4.84E+07 4.10E+07 1.59E+07 7.10E+06 4.64E+06 8.79E+06 1.40E+08 2.11E+08 Resources Mineral resources 3.75E+08 ̆ ̆ ̆ ̆ ̆ ̆ ̆ Total 4.24E+08 4.10E+07 1.59E+07 7.10E+06 4.64E+06 8.79E+06 1.40E+08 2.11E+08 Influence on human health 1.88E+08 1.83E+07 1.97E+07 2.64E+06 3.25E+06 4.98E+06 5.55E+07 4.62E+08 Influence on the ecosystem -3.27E+05 9.28E+07 9.84E+07 5.73E+06 -3.86E+04 -6.83E+04 -7.20E+05 -5.46E+06

environment Influence on biodiversity

Influence on the 4.20E+05 2.28E+05 2.50E+05 3.34E+04 3.83E+04 6.10E+04 6.73E+05 4.15E+06 Total ELU (Environmental Load Unit) 6.12E+08 1.52E+08 1.34E+08 1.55E+07 7.89E+06 1.38E+07 1.96E+08 6.72E+08 Social cost [millions of yen] 67,639 16,841 14,851 1,715 872 1,522 21,624 74,294

amount Percentage 33.65% 8.38% 7.39% 0.85% 0.43% 0.76% 10.76% 36.95% Environmental Converted accounting Resource and energy cost [millions of yen] 394,642 4,142 1,307 969 197 782 — — Environmental conservation cost [millions of yen] 782 3,586 734 817 140 1,157 932 Costs Economic benefits [millions of yen] — 614 1,089 12 44 1,989 — — Effect on environmental conservation [millions of yen] — 1,055 3,861 1,054 644 — 489 — Effects (to reduce social costs) Environmental effect rate ((Economic benefits + — 0.47 6.74 1.31 4.93 1.72 0.52 — social costs reduced)/environmental conservation costs)

Environmental profit rate (Economic benefits/ — 0.17 1.48 0.02 0.32 1.72 — — environmental conservation costs) Indicators Sales per social costs (Sales/social costs) 12.91

* Upstream and downstream environmental impact is calculated based on the data of a specific product. (Blanks mean almost zero or n/a.) * The figures for influences on environment or converted amount are calculated based on the EPS Indicator Ver. 2000.

New Framework for Internal to internally measure and evaluate the in each process of the Comet Circle1 Environmental Accounting profit obtained from business activities and measures and evaluates the man- In the past, environmental accounting and the environmental impact appro- agerial resources appropriately alloca- systems were used as a tool to evaluate priate for a company’s business size. It ted to the environmental influences. The and disclose environmental impact is also necessary to measure and iden- Group also measures and evaluates reduction effects to environmental tify the environmental impact generated environmental conservation costs paid conservation costs. For the purpose in all relevant processes (environmental by product line and process, whether of supporting decision-making pro- impact potential). The Ricoh Group the costs work toward advancing social cesses in sustainable management, identifies the environmental impact effects and corporate profits, and it is, however, necessary for this tool potential and environmental influences whether the environmental impact of

77 Economic Benefits business sites, products are given green from the Development of points that correspond to the levels they contribute to environmental impact Eco-Friendly Products Maintenance reduction. Contribution rates respond- Disposal It used to be difficult for the research Manufacturing and Total ing to those green points were calcula- Maintenance Maintenance and development of eco-friendly prod- Works Recycling ted by product type. The amount of Parts ucts to estimate costs and effects. The contribution to gross margin due to a 287 443 46 51,847 Ricoh Group calculated the contribu- product’s eco-friendly functions is cal- 21 tion rates of eco-friendly copiers to culated from annual performance as 53 profit based on a customer satisfaction 2 contribution rates by product type. The survey of customers who buy major 2 total calculated amount is regarded as products in Japan. Special attention 1 an annual economic benefit for research 30 was paid to questions asking customers and development. 4,198 the reason for their purchases. Among 18 6,598 0.23 Responses to a Customer Satisfaction Survey (Number of samples=138, multiple answers) 0.04 Item Number of responses Response rate 45.04 1. Functions and performance of copiers are good. 75 54% 0.32 0.01 2. Time it takes for the machine to warm up is short. 36 26% 0.37 3. Time it takes for the machine to turn on from standby is short. 24 17% 272.03 4. Machine is small. 18 13% 76.46 5. Machine looks user-friendly. 42 30% 4.46 4.46 6. Machine has the functions I want. 8 6% 0.23 7. Machine adopts a low-noise design. 4 3% 0.02 213.82 8. Machine adopts an energy-saving design. 21 15% 17 3 1 6,575 9. Machine is eco-friendly (e.g., the machine is equipped with recyclable toner cartridges, adopts a recyclable design, and reduces environmentally harmful substances). 8 6% 7 7 22,066 10. Design (color or style) is good. 2 1% 16 29 1 4,614 11. Price is reasonable. 32 23% 12. A sales representative recommended the machine. 60 43% 72 4,841 13. Well established maintenance system. 34 25% 1 59 14. Patronizing your products for long time 64 46% 1 11,136 15. Other 14 10% 3.17E+06 4.81E+06 5.12E+05 4.85E+08 * The rate of environment-friendly functions contributing to gross margin = 6.56% (the percentage of the total number of — — — 3.75E+08 responses in items 8 and 9 to the total number of responses) 3.17E+06 4.81E+06 5.12E+05 8.60E+08 2.59E+06 3.25E+06 1.38E+05 7.60E+08 -2.34E+04 4.89E+05 -1.89E+03 1.91E+08 The table on the right shows the results Green Points of Products and Their Contribution 3.21E+04 4.06E+04 1.71E+03 5.93E+06 of a survey of our customers in Japan. Rates to Gross Margin (Specified products only) 5.78E+06 8.59E+06 6.50E+05 1.82E+09 Product Type Green Point Contribution Rate 639 950 72 201,019 Another examination conducted was for imagio Neo 350 25 6.56% 0.32% 0.47% 0.04% 100.00% contribution rates from the viewpoint of Spirio 5000 RM 24 6.30% 761 96 402,896 customers’ willingness to pay (WTP). The 139 4,627 12,914 Spirio 7010F 18 4.72% 17 755 4,520 table below shows the results of a conjoint Spirio 7210F RM 26 6.82% 43 6,688 13,834 analysis, which is a marketing evaluation FT 4500FK 16 4.20% 0.43 1.61 1.42 method. The WTP for 1 kg of CO2 is imagio MF4570 19 4.99% ¥1,247.5. 25 6.56% 0.12 0.16 0.35 imagio Neo 450 imagio MF5570 19 4.99% imagio MF7070 21 5.51% imagio MF8570 18 4.72% imagio MF105 Pro 18 4.72%

business activities as a whole suits the Customer’s WTP Evaluation Results from a Conjoint Analysis company’s business size. Thus, the Item Evaluation Weight of Efficiency Index Evaluation Weight of Product Price Unit Group is establishing a framework for Speed (sheets/minute) 0.0013844 (effect/sheet) 2,567.7 (yen/sheet) Time to start from standby mode (seconds) 0.0023333 (effect/second) 4,327.7 (yen/second) environmental management account- Electricity bill (thousands of yen/year) 0.0746933 (effect/thousand yen) 138.5 (yen/yen) ing2. Efficient sustainable management Sound while on standby (dB) 0.0027242 (effect/dB) 5,052.8 (yen/dB) Greenhouse gas (kg-CO2) 0.0006726 (effect/kg) 1,247.5 (yen/kg) is promoted by identifying the divisions Price (ten thousands of yen) 0.0053915 (effect/ten thousand yen) 1.0 (yen/yen) responsible for each product and pro- From the results obtained in the table The appropriateness of the contribution cess as well as measuring and evaluating above, it was found that the contribution rate according to the survey is considered the effects in those areas. rate for product types given in the cus- verified in terms of WTP. 1. See page 13. 2. See table above. tomer satisfaction survey was 7.89%.

78 Business Site Data

Production (Zero-Waste-to-Landfill) (See pages 39 and 40.)

(Reviewed by BVQI [27]) Total waste discharge Final waste disposal Water consumption Waste recovery rate (%) Ricoh Production Sites amount (t) amount (t) (10,000 tons)

Atsugi Plant–Office equipment and other products 1005 Shimo-Ogino, Atsugi, Kanagawa 243-0298, Japan 100 845 0 12.1

Hatano Plant–Printed circuit boards and electronic components 423 Hirasawa, Hadano, Kanagawa 257-8586, Japan 100 220 0 1.9

Numazu Plant–Supplies 3 0 185.4 16-1 Honda-machi, Numazu, Shizuoka 410-8505, Japan 100 ,103

Gotemba Plant–Copiers, fax machines, and data processing systems 1-10 Komakado, Gotemba, Shizuoka 412-0038, Japan 100 1,125 0 8.5

Fukui Plant–Supplies 100 1,596 0 20.2 64-1 Ohmi, Sakai-cho, Sakai-gun, Fukui 919-0547, Japan

Ikeda Plant–Electronic devices 100 170 0 25.5 13-1 Himemuro-cho, Ikeda, Osaka 563-8501, Japan

Yashiro Plant–Electronic devices 100 570 0 12.3 30-1 Saho, Yashiro-cho, Kato-gun, Hyogo 673-1447, Japan

The Ricoh Group’s Manufacturing Subsidiaries in Japan

Tohoku Ricoh Co., Ltd.–Office equipment and parts for copiers 3-1 Shinmeido, Nakanomyo, Shibata-machi, Shibata-gun, Miyagi 989-1695, Japan 100 2,124 0 22.5

Hasama Ricoh, Inc.–Parts for copiers, and data processing equipment 86 Aza-Kitasanden, Sanuma, Hasama-cho, Tome-gun, Miyagi 987-0511, Japan 100 1,706 0 1.6

Ricoh Unitechno Co., Ltd.–Fax machines, copiers, and microfilm equipment 713 Tsurugasone, Yashio, Saitama 340-0802, Japan 100 661 0 1.3

Ricoh Optical Industries Co., Ltd.–Photographic equipment 100 650 0 4.4 10-109 Ohata, Hanamaki, Iwate 025-0303, Japan

Ricoh Keiki Co., Ltd.–Parts for copiers and data processing equipment 100 161 0 0.4 3144-1 Aza-Ipponguri, Shimoizumi, Kuboizumi-machi, Saga, 849-0903, Japan

Ricoh Microelectronics Co., Ltd.–Printed circuit boards 10-3 Kitamura, Tottori, 680-0911, Japan 100 566 0 2.5

Ricoh Elemex Corporation–Office equipment, clocks, watches, and educational equipment 2-2-13, Nishiki, Naka-ku, Nagoya, Aichi 460-0003, Japan Ena Plant 100 891 0 11.2 1218-2 Nakano, Nagashima-cho, Ena, Gifu 509-7205, Japan Okazaki Plant 3-69 Ida-cho, Okazaki, Aichi 444-8586, Japan

The Ricoh Group’s Manufacturing Subsidiaries outside Japan

Ricoh Electronics, Inc. (REI)–Office equipment and supplies One Ricoh Square, 1100 Valencia Avenue, Tustin, CA 92680, U.S.A. 100 6,419 0 19.5

Ricoh UK Products Ltd. (RPL)–Copiers and supplies Priorslee, Telford, Shropshire TF2 9NS, U.K. 100 1,044 0 3.1

Ricoh Industrie France S.A. (RIF)–Copiers, fax machines, and supplies 144, Route de Rouffach 68920, Wettolsheim, France 100 8,603 0 5.1

Ricoh Asia Industry S.Z. Ltd. (RAI)–Copiers 95 1,641 82 14.4 Color TV Industrial Zone, Futian District, Shenzhen, P.R. China

Taiwan Ricoh Co., Ltd.–Photographic equipment 93 227 15 4.9 34 Lane 200, Jwu Her Road, Fuh Shing Li, Chang Hwa, Taiwan

1. ‘Ricoh Group’s target substances for reduction’ are PRTR substances designated by four Notes: 1. It is not possible to simply compare figures to one another because the Electric & Electronic Industries Associations in Japan between fiscal 1998 and fiscal 2000. business sites (including plants and Group companies) above have The figures are indicators multiplied by the environmental impact coefficient. different operations, production systems, scale, and locations. (See page 37 for the formula used to calculate the amount used or discharged.) 2. This is the first time that business site data has been published in a 2. Includes the results of a subcontracted development center as well as a recycling and report. The data shows fiscal 2001 performance and is the accumulated recovery center results of the Ricoh Group’s environmental conservation activities conducted not just in fiscal 2001.

79 Production (Preventing Global Warming) (See pages 35 and 36.) Production (Pollution Prevention) (See pages 37 and 38.)

Energy consumption Emissions into air Emissions into air Water discharge ‘Ricoh Group’s target ‘Ricoh Group’s target (NOx) (t) (SOx) (t) (BOD) (t) substances for substances for (t-CO2) (TJ) reduction’ used1 reduction’ discharged1

13,673 153.7 1.683 0.039 0.513 45.7 4.5

1,597 16.6 0.039 0.001 0.634 732.6 108.3

29,057 513.5 13.985 0.000 5.409 12,512.8 5,692.0

3,142 36.4 0.627 0.011 0.059 0.0 0.0

18,428 224.8 5.306 0.122 0.929 6,905.5 839.2

9,963 115.8 1.404 0.000 0.185 161.3 56.0

25,732 282.5 3.262 0.053 0.331 335.9 201.3

10,764 126.8 3.439 2.144 5.527 3,039.0 2,029.2

2,117 24.2 0.459 0.300 0.078 84.2 71.5

1,1612213.6 0.111 0.000 0.008 42.7 42.7

6,720 76.6 1.498 7.028 0.312 114.6 35.9

719 7.5 0.000 0.000 0.000 146.8 0.8

3,895 46.0 1.211 8.080 0.156 186.5 0.1

6,131 67.5 0.529 0.131 0.089 297.2 136.3

37,413 308.8 5.526 0.000 2.042 425.7 3.6

17,135 105.1 1.843 0.000 0.000 3,164.2 2,542.9

7,000 256.2 6.175 0.028 2.440 1,261.3 749.1

5,475 58.9 0.405 0.447 36.426 10.2 10.2

3,239 19.0 0.042 0.000 0.104 15.5 0.0

Example: Numazu Plant Ricoh Group-regulated substances discharged: 5,692.0 Compared with fiscal 2000 (8,697.1): Reduced 34.6% Compared with fiscal 1997 (14,056.6): Reduced 59.5% The Ricoh Group will continue to disclose business site data for year-to-year comparisons.

80 The Ricoh Group’s Environmental Conservation Activities (1976–March 2001)

The Ricoh Group’s ActivitiesSociety’s Recognition of Worldwide Trends the Ricoh Group’s Activities 1976 Establishes Environmental Promotion Section 1971 Environment Agency set up Ramsar Convention adopted 1990 December Sets up Environment Administration Office 1977 United Nations Conference on Desertification held 1992 February Establishes Ricoh General Principles on the UNEP conference held Environment 1987 Montreal Protocol adopted March FT5570 copier awarded the BAM (initial 1990 London meeting (set phaseout version) of CFCs and HCFCs) 1991 Recovered Resource Use 1993 March Achieves total elimination of ozone-depleting 1993 May Ricoh UK Products’ copier photosensitive Promotion Law enacted substances (specific kinds of chlorofluorocarbons drum recycling technology receives the 1992 UN Conference on (CFCs), specific kinds of halon, carbon Queen’s Award in the U.K. Environment and Development tetrachloride, etc.) September Ricoh UK Products’ power consumption (Earth Summit) held May Announces the recycled product design basic reduction activities receives the Business 1993 Energy Saving Law revised policy and implements recyclable design level 1 Energy Award’s Grand Prize. 1995 The First Conference of Parties May Launches material labeling on plastic parts to the United Nations December The Ricoh Group achieves total elimination of Framework Convention on ozone-depleting substances (specific kinds of Climate Change (COP1) held CFCs, specific kinds of halon, carbon Law for Promotion of Sorted tetrachloride, etc.). Collection and Recycling of 1994 August The Comet Circle concept is completed. 1994 May Ricoh UK Products’ copier photoconductor Containers and Packaging November Implements labeling of materials and grade on drum recycling technology receives the enforced plastic parts European Better Environment Awards for International Energy Star 1995 February Holds First Ricoh Company Environment Industry. Program started Conference 1996 ISO Environmental Auditing October Announces International Energy Star certified Standards of Environmental products Management System December Ricoh Gotemba Plant acquires ISO 14001 established certification (the first certification given by a International Energy Star Japanese certification organization). Award launched by EPA 1996 July Ricoh UK Products acquires BS 7750/ISO 14001 certification. 1997 March Sets 79 types of management chemical 1997 March Ricoh Corporation (United States) wins 1997 COP3 (Kyoto Conference) held substances Energy Star Copier Prize. Kyoto Protocol adopted 1998 April Ricoh establishes the Recycling Division. 1998 November Ricoh ranked top of the electric and May Issues Ricoh Group Green Procurement electronics industry by German environmental 1998 Eco Partnership Tokyo Guidelines survey specialist company Ökom GmbH. Conference held October Ricoh Fukui Plant achieves a 100% resource December Ricoh ranked number one in the Second Law concerning the Promotion recovery rate (Zero-Waste-to-Landfill). Corporate Environmental Management Level of Measures to cope with 1999 January Issues the Ricoh Group Environmental Report Survey by the Nihon Keizai Shimbun Global Warming established 1998 newspaper. 1999 Revised Energy Saving Law June Ricoh introduces its environmental volunteer 1999 November Ricoh wins the IEA’s Demand-Side enforced leader training program. Management Award of Excellence in the PRTR Law established September Ricoh announces results of its first environmental recently created Copier of the Future Division accounting. for its energy-saving technology. 2000 Law Concerning the Promotion December Ricoh enters one of its machines in Eco-Products of the Procurement of Eco- 1999, Japan’s first comprehensive exhibition for Friendly Goods and Services environment-friendly products. by the State and Other Entities 2000 January Ricoh acquires Eco-Mark certification for 28 2000 March Ricoh Corporation receives three awards from promulgated copier models. the Energy Star Program: 1) 2000 Energy Star Basic Law for Establishing a February Ricoh’s digital multifunctional copier, the imagio Excellence in Consumer Education Award, 2) Recycling-Based Society MF6550, acquires Type III Environmental Labeling Partners of the Year Award, and 3) established Impact Disclosure from BVQI (Sweden). Office Equipment Partner of the Year Award Waste Management and Public May Ricoh starts projects to restore virgin forests in (for the fifth consecutive year, the Energy Star Cleansing Law revised Asia. Award). Law for the Promotion of September Aoyama Office first achieves a 100% resource May Ricoh ranks first among 39 nominees in a Utilization of Recyclable recovery rate (Zero-Waste-to-Landfill) as a rating survey conducted by Ökom on the Resources established nonproduction site. IT/electronics industry. Law Concerning the Promotion 2001 January Ricoh Logistics System launches a recyclable June Ricoh Corporation is the first Japanese of the Procurement of Eco- eco-packaging system. company to receive the Environmental Friendly Goods and Services January Yoriko Kawaguchi, Minister of the Environment, Stewardship Award from the Council on by the State and Other Entities visits Numazu Plant. Economic Priorities (CEP). established March Ricoh President Masamitsu Sakurai attends the December Ricoh ranks first for the third year in a row in 2001 Ministry of the Environment first meeting of the Conference on the Creation of the 4th Corporate Environmental (Japan) established Wa no Kuni. Management Level Survey organized by the The first Conference on the Nihon Keizai Shimbun. Creation of Wa no Kuni held Law Concerning the Promotion of the Procurement of Eco- Friendly Goods and Services by the State and Other Entities enforced in full scale COP7 held

See the Ricoh Group Sustainability Report 2001 for details. (http://www.ricoh.co.jp/ecology/e-/report/index 2001.html)

81 The Ricoh Group’s Social and Environmental Activities (April 2001–March 2002)

The Ricoh Group’s Activities Society’s Recognition of the Ricoh Group’s Activities Environmental Social 2001 April Ricoh’s Corporate Environment Office reorganizes into Corporate Environment 2001 May Ricoh Group Environmental Report 2000 receives the Green Division Reporting Awards 2001. April Ricoh holds a business workshop on the prevention of global warming, which is May Fukui Plant’s fiscal 2000 environmental report wins the Prize for held by WWF Japan. Site Reports at the Green Reporting Awards 2001. April Ricoh Human Creates obtains Privacy Mark. May Numazu Plant is officially commended by the governor of April Ricoh Corporation (San Jose) acquires ISO 14001 certification. Shizuoka Prefecture for the plant’s contributions to April Seventh Ricoh Nature Seminar is held. environmental conservation prize. April Fourth American Environment Meeting is held. June Hatano Plant receives the Director-General of Kanagawa Labor May Ricoh Hong Kong plants trees in a park located in Saikung, Hong Kong, as part Bureau Award. of its greening activities. July Ricoh is ranked number 1 in a customer satisfaction survey May The Ricoh Nature Seminar’s intermediary course is held for the first time. conducted by J.D. Power on PPCs and facsimiles. May NRG Italia and Ricoh Electronic Technology (China) acquire ISO 14001 July Numazu Plant receives the Prime Minister Prize in recognition certification. of its outstanding efforts toward the safety of its workers. June RIF (France) issues Environment, an environmental report. July Ricoh receives the highest rating, “AAA,” in the photograph and June Gestetner Denmark, NRG Comunicaciones (NRG Spain), and Ricoh New office equipment category of an “eco-rating” conducted by Zealand acquire ISO 14001 certification. Innovest Strategic Value Advisors in the United States and is June The imagio Neo 220/270 series is marketed. ranked number 1 in the world. July European Environment Meeting is held. September Ricoh receives the Minister of Health, Labour and Welfare July Eighth Ricoh Nature Seminar is held. Award for its efforts toward employing the physically challenged. July Ricoh participates in e-mission55. September The Aficio AP 3800C obtains five stars, the best rating from July NRG Deutschland acquires ISO 14001 certification. Business Equipment Research and Test Laboratories (BERTL), August Ricoh’s social contribution club FreeWill holds its second seminar. an English evaluation organization. August Gestetner Svenska acquires ISO 14001 certification. October Tohoku Ricoh and Research and Development Center receive August “Our earth, our tomorrow” is decided as the Eco Slogan for four regions except the Recycling Promotion Council Chairman’s Award. Japan. November Ricoh Unitechno’s Environmental Report 2001 receives the September Ricoh Hong Kong, Ricoh Belgium, Ricoh Nederland, and Ricoh Logistics Global Environmental Forum President’s Prize at the fifth System acquire ISO 14001 certification. Environmental Report Awards. September Ricoh Group Sustainability Report 2001 is published. November Ricoh is the first Japanese company to receive “the Climate is September Ricoh UK Products achieves a 100% resource recovery rate (zero waste to Business” Award. landfill). December Ricoh ranks second in the 5th Corporate Environmental October Gotemba Plant completes a biotope and opens a nature school. Management Level Survey organized by Nihon Keizai Shimbun. November The Ichimura Idea Prize Awards Ceremony is held for the 32nd time. December Ricoh ranks fifth in the Stock Market Survey of Opinions about November The Ricoh Minori Prize Awards Ceremony for fiscal 2001 is held. Major Institutional Investors conducted by the Nikkei Financial November NRG Group UK, Ricoh Europe B.V. (the Netherlands), and Ricoh Leasing Daily. Company acquire ISO 14001 certification. December Ricoh’s environmental conservation Web site, ECO TODAY, wins November Ricoh Unitechno holds second company environment conference. excellence award from ECO goo for the second consecutive year. November Ninth Ricoh Nature Seminar is held. December In a survey conducted by the U.K.’s Financial Times, Ricoh is December The imagio Neo 750/600 series is marketed. chosen by member CEOs as the seventh world best company in December The imagio MF6550RC, an environment-friendly digital multifunctional copier, is terms of environmental conservation. marketed. 2002 January Ricoh receives the Energy Conservation Center, Japan, (ECCJ) December Ricoh Gotemba Plant is the first domestic business site of the Group to renew Chairman’s Prize at the Energy-Saving Awards for its imagio ISO 14001 certification for the second time. Neo 220/270 series. December Ricoh obtains the Eco Mark for its laser printer IPSiO series. January Ricoh receives the 7th Information Disclosure Award for Listed December Eighth Ricoh Company Environmental Competition is held. Companies from the Tokyo Stock Exchange. December Third Five Regional Environment Meeting is held. February Fukui Plant is officially commended by the director of the December Ricoh Logistics System acquires permission for a nationwide collection and Chubu Bureau of International Trade and Industry for its transportation of industrial waste. superiority in energy management. December Ricoh’s Japanese sales companies collectively acquire ISO 14001 certification. February Ricoh President Masamitsu Sakurai receives the Mainichi December Ricoh Shinagawa System Center, Ginza Office and Toda Technical Center Economic Management Award. achieve a 100% resource recovery rate (Zero-Waste-to-Landfill). March Gotemba Plant is first in the Ricoh Group to obtain certification December Ricoh Kids Workshop is held in Hirosaki, Aomori. for its occupational health and safety management system. December Ricoh Austria, Ricoh Deutschland, Ricoh Hungary, NRG France, and Gestetner March Mie Ricoh receives the Mie Prefecture Quality Award’s (Israel) acquire ISO 14001 certification. Governor’s Award. 2002 January Ricoh System Kaihatsu obtains the Privacy Mark. March Ricoh receives the Eco Web Prize from Ecology Symphony. January Ricoh Shin-Yokohama Office achieves a 100% resource recovery rate (Zero- Waste-to-Landfill) Subsequent Events January The first Ricoh Green Procurement Meeting is held. 2002 April Ricoh announces its participation in the United Nations Global January Ricoh Technosystems, Chiba Branch achieves a 100% resource recovery rate Compact. (Zero-Waste-to-Landfill). April Chiba Ricoh receives the excellence award of the Chiba January Ricoh Italia acquires ISO 14001 certification. Prefecture Quality Award. February Ricoh Australia and Ricoh Canada acquire ISO 14001 certification. May Ricoh Group Sustainability Report 2001 receives second Prize February European Environment Meeting is held. and the Consistent Performance Prize at the Fifth Green Report- March Ricoh’s social contribution club FreeWill holds its third seminar. ing Awards 2002. March Ricoh Kids Workshop is held. May Fukui Plant’s fiscal 2001 environmental report wins the Prize for March Ricoh (UK), Ricoh France, NRG Ireland, Ricoh Norge, Ricoh Espana, Ricoh Site Reports at the Green Reporting Awards 2002. Europe, Sucursal em Portugal, and Ricoh Polska acquire ISO 14001 certification. May Ibaraki Ricoh receives the Ibaraki Prefecture Quality Award. March A press release on the Ricoh Group’s environmental action plan June Ricoh ranked number 1 in the world in environmental, social, (FY 2002–2004) is issued. and cultural aspects in a corporate responsibility rating conduc- March The Ichimura School of Nature is opened in the Kanto area. ted by Ökom GmbH, Germany. March Ricoh Asia Industry (RAI), Taiwan Ricoh, Iwate Ricoh, Ricoh Technosystems June Ricoh Office Solutions (Hong Kong) receives the best award of (Tokyo Branch, Kanagawa Branch, Kyushu Branch, Chugoku Branch) achieve a the Hong Kong Quality Award. 100% resource recovery rate (Zero-Waste-to-Landfill). June Ricoh Logistics receives the environmental conservation award of the 3rd Logistics Environment Award.

82 Principles of the Environmental Report and Responses from the Ricoh Group Sustainability Report 2001 Questionnaire

Principles of the Environmental Responses from the Ricoh Group Some of the opinions from the Ricoh Report Sustainability Report 2001 Group Sustainability Report 2001 readers In fiscal 2001, Ricoh established princi- Questionnaire and improvements in the 2002 report ples for environmental reports, which Beginning with the 1998 issue, the Ricoh Since I visited Numazu Plant last autumn, I am comprise of the requisites for providing Group has included questionnaires (only fairly impressed by your attitude for environ- the information useful for the stakeholders in Japan) in its environmental report to mental conservation activities. I introduced when they make their decisions for envi- collect comment and opinion from the your activities at the seminar which I act as a ronmental management. The environmen- readers on improving its environmental lecturer. tal report is based on the corporate conservation activities as well as informa- I wish the summary was in this report and details were posted on the website.

ً accounting principles as no official princi- tion disclosure. 20,390 copies of the report ples or terminology is developed for the 2001 were distributed and 94 readers re- Past data of the Environmental Conservation Activities and ISO 14001 Certified Divisions environmental report. turned the questionnaire as of the end of and Business Sites of the Ricoh Group as well June, 2002. as the details of Type III Environmental Impact Disclosure are stored in the website. We con- Principles of the Environmental Report Questionnaire Results tinue to disclose the information, making the best use of advantage of the printed and 1. The environmental report must contain true Internet media. statements about companies’ state of envi- 1. How would you rank the Ricoh Group’s ronmental management 1. environmental conservation activities 2. The environmental report must fairly repre- described in the report? I felt that fewer people actually participate in sent the results of all the environmental the environmental volunteer activities, even management activities 2. Very good Good though more are interested in them. I hope 3. The environmental report must clearly rep- Average No reply resent the facts necessary for stakeholders 1 more will participate in the activities in fiscal not to misjudge the environmental impact of (FY) 1999 65 34 2002. ً companies 3 and 4. In fiscal 2002, we further developed the activi- 2000 75 22 4. The environmental report must continuously 3 ties. (See “Social Contribution Activities,” start- reflect the principles and procedures of ba- 2001 73 23 ing from page 61.) sic data processing and representation 0 20406080100 (%) methods every fiscal year and may not 3 1 change those principles, procedures, and Environmental activities were explained in representation methods without good rea- terms of LCA. Why don’t you take the approa- 2. Which section(s) of the report were you son 5. most interested in? ches in terms of product development and Notes: 1. “Companies” refer to the Ricoh Group as a whole, Group com- design?

ً panies, and/or their business sites, depending on the coverage The Group established a new section called and level of the report. No. 1 Production (Zero-Waste-to-Landfill) 2. The avoidance of disclosing negative information shall not be “Research and Development” (page 31) to regarded as a fair representation of all information. No. 1 Environmental Accounting 3. The state of companies’ environmental risk management shall No. 3 Social Contribution Activities explain the product design. be included in the information stakeholders use in decision making. No. 4 Recycling 4. Significant subsequent events shall be described in the report. Subsequent events refer to events that occur during the period No. 4 Environmental Volunteer Leaders I want to read the details about cost- from the day after the reporting period ends to the date the re- No. 6 Working with Administrations and effectiveness, investment effects, and port is completed. Such events may influence the state of companies’ environmental management from the next fiscal year Local Communities environmental accounting. ً -onward. Examples of significant subsequent events are as fol The Group took new approaches including lows: a) Critical damage caused by environmental pollutants and estimates of costs and effect according to the similar causes b) The announcement and implementation of large segment environmental accounting (pages 17, environment-related investment projects 3. In what position did you read this report? c) The assignment and transfer of significant environment- 36, 40, 48, and 50), development of indicators oriented business transactions Person in charge of Student Product user d) Significant, controversial environment-related cases that environmental issues (page 74), and Eco-Balance environmental in a company arose or were solved accounting (pages 77–80). e) The announcement of significant development in Environmental specialist NPO Others No reply environment-oriented technologies member Subsequent events disclosed as notes are useful as supple- mental information to determine the state of companies for It was hard to understand whether recycling ac- future environmental management. 27 13 12 10 627 5 tivities cover only Japanese business sites or 5. Ongoing applications may be cancelled only if there is good reason and it has been determined that the environmental 0 20406080100 all the business sites both Japan and overseas.

ً (%) report would be more rational if it followed procedure or if there were changes in representation. “Good reason” includes signif- Many examples of the countries other than

icant changes in company management policies, business reorganization, drastic technological innovation, and amend- Japan were added in more sections including ments in and the abolition of relevant laws, regulations, and “Recycling.” We would like you to know about standards. the Ricoh Group’s global activities in environmental management.

83 Third Party Review

The Ricoh Group receives a third party review, Scope of This Report The Americas for the purpose of disclosing more reliable informationThis to a reportvariety describesof stakeholders the sustainable and management activ- Manufacturing companies: Ricoh Electronics, Inc. (U.S.A.) facilitatingities the progress of the Ricoh and improvements Group in fiscal in year 2001 (April 1, environmental2001 management. to March 31, For 2002). the review, The theterm “Ricoh” refers to Nonmanufacturing companies: Ricoh Corporation (U.S.A.) Ricoh Groupproduction paid attention and tononproduction 1) not only re- sites of Ricoh Co., Ltd. and two sales companies ceiving the reviewThe onterm the “Ricoh information Group” described refers to Ricoh’s opera- Europe in this report,tions but all also over connecting the world. the review results to continuous improvement in the Ricoh Manufacturing companies: Group’s environmental management system by Ricoh UK Products Ltd. (U.K.) Environmental impact and environmental giving useful feedback such as review reports Ricoh Industrie France S.A. (France) accounting data: fiscal 2001 data and opinions, and 2) giving global review on Nonmanufacturing companies: DescriptionsThe in Ricoharticles Group and willchronological disclose information about its activities globally to discuss envi- environmental issues, which should be regarded Ricoh Europe B.V. (the Netherlands) and five sales companies in the region as global issues.tables: The fiscal Ricohronmental Group2001 requestedissues,data which are now cross-border issues, with as many people from as many BVQI, the organizationcountries conducting as the possible. review, Our 2002 report details results China of our and global Taiwan environmental conserva- to review appropriateness,Some of the subsequent reliability, traceabil-events* are explained in the tion activities in fiscal 2001. We hope that this reportManufacturing will help as companies: many of you readers as ity of the numericalnotes. values, figures, and tables possible to discover the extent of the Ricoh Group’sRicoh concepts Asia Industry for environmental (Shenzhen) Ltd. (China) conserva- on the report.* Significant The Group subsequent also reviews events shall the be described in the report. Subsequent Taiwan Ricoh Co., Ltd. (Taiwan) descriptions eventsand statements refertion to events andof thatthe environmental occurreport during by the period measures. from the day Weafter thewelcome your honest opinion to further improve our reporting period ends to the date the report is completed. Such events may Nonmanufacturing companies: itself in the responsibilityinfluence theactivities state of of its companies’ Corporate in terms sustainable of both management quality from and the next effectiveness. Ricoh Hong Kong Ltd. (Hong Kong) fiscal year onward. Disclosed subsequent events are useful as supplemen- Environment Division. The Ricoh Group dis- tal information to determine the state of companies for future sustainable Asia-Pacific Region closes the informationmanagement. about the BVQI’s review report and its opinions as mentioned below, and Nonmanufacturing companies: The environmental impact and environmental account- Ricoh Asia Pacific Pte. Ltd. (Singapore) makes continuous efforts to better in the next year the issuesing datapointed is takenout by fromBVQI. the Ricoh Group’s major business sites in five (5) regions—Japan, the Americas, Europe, Expansion of Data Covered China and Taiwan, and the Asia-Pacific region—and, This report covers the environmental impact and environmental accounting data from all Ricoh business sites and as such, may differ from the Ricoh Group data present- affiliates that have established their own environmental ed elsewhere in this report, e.g., in the organization pro- management systems. In fiscal 2001, Ricoh sales companies in Japan, the Americas, Europe, China and Taiwan, and the file and global network. Asia-Pacific region partly established their own environ- BVQI’s Reference View mental management systems, so the coverage of data was expanded. (whole statement) Scope of Collection of Environmental Impact and Environmental Accounting Data BVQI visited Ricoh Co., Ltd.’s head office, Tohoku accurately and functionally in considering Past and follow- Future Reports3. Application of Life Cycle Assessment Ricoh Co., Ltd., Japan Ricoh Asia Industry (Shenzhen, ing points. The Ricoh Group has continuedThe LCA publishingmethod was annual positively environ- applied in the mental reports since 1997, which covered for fiscal 1996. China), Ricoh Europe B.V. (Netherlands), Ricoh evaluation of environmental products and recycla- Ricoh production sites: The 2003 Report will be issued in the summer of 2003. Norge A.S. (Norway). BVQI has reported many Expansion of usage of environmental impact ble products, and its effectiveness was measured Atsugi Plant, Hatano Plant, Numazu Plant, Gotemba Plant, findings andFukui opinions Plant, regarding Ikeda Plant, environmental Yashiro Plant information system Special Remarks Relatingquantitatively. to Activities This is the during most advanced, the highly Reporting Period activity at the HO and site level through the data Education and training on data collection and Ricoh nonproduction sites: The Ricoh Group has producedappreciated a medium-term system. However manage- the aggregation verification Aoyamaprocess. Office,BVQI has Omori concluded Office, the Omori Office No.input, 2, Ginzaespecially on terminology,ment definition plan that and covers fiscalscope 2002 of the through energy fiscal consumption 2004 as in recyclable following: Office, Ricoh System Center, Shin-Yokohama methodologyOffice, Ricoh at overseas siteswell as a newly establishedproducts, an environmental needs further action improvement. plan. Service Parts Center, Research and Development Center, Utilization of internal audit to ensure data Software Research Center, Toda Technical Center, Applied How to Obtain Ricoh’s Corporate Information: 1. InformationElectronics Collection Laboratory and Reporting accuracy Environmental conservation:4. Progress of Third Party Verification Audit http://www.ricoh.co.jp/ecology/e-/ System Ricoh Group major manufacturing subsidiaries:Verification of calculation formula when using Thanks to firm cooperation by Ricoh, the data Social contribution (Japanese language only): Most of theTohoku data was Ricoh collected Co., throughLtd.; Hasama the Envi- Ricoh, Inc.; Ricohspread Unitechno sheet needed to conduct verification was presented http://www.ricoh.co.jp/kouken/ Co., Ltd.; Ricoh Optical Industries Co., Ltd.; Ricoh Keiki Co., ronmental Impact Information System. However, IR (for shareholders andswiftly investors): by the domestic and overseas and BVQI Ltd.; Ricoh Microelectronics Co., Ltd.; RicohMasamitsu Elemex Sakurai http://www.ricoh.co.jp/IR/e/ some of theCorporation data was collected outside of this 2. Environmental Accounting completed its verification audit in a timely system due to the variety of data and the limita- When compared with the method used in 2000, manners. Ricoh Group major nonmanufacturingPresident subsidiaries*: and Chief Operating Officer tion of the systemRicoh Logisticsin overseas System offices. Co., BVQI Ltd.; ob- Ricoh Technothe calculation Systems Co., basis became clearer and the Ricoh Co., Ltd. served minorLtd.; miscalculations Part Component in aggregation System Co., and Ltd.; aggregation became more accurate. However, * Note by Ricoh 51 sales companies, and NBS Ricoh Co., Ltd. Numerical values, figures, and tables subject to BVQI’s review can simple mistakes which did not affect the gist of the minor variations were observed in the interpreta- * For environmental accounting data only be identified with serial descriptions, (Reviewed by BVQI [1]) report. BVQI requested re-investigation and re- tion of the calculation basis at overseas sites. through (Reviewed by BVQI [27]), on the right side of the figures and tables in the report. aggregation. It was carried out promptly. How- BVQI hopes further understanding of Ricoh’s ac- Among those data of fiscal 2000 or earlier, items [5], [7], [8], ever, the data collection system needs improve- counting guidelines and the enforcement of con- [11], [13] and [14] were corrected according to Opinion 1 of the Ricoh Group Sustainability Report Verification Report. ment in order to gather and aggregate data sistency throughout the network.

8442 RICOH GROUP SUSTAINABILITY REPORT 2002

Please send all comments and inquires regarding this report to:

G The Americas Ricoh Corporation Corporate Quality Assurance Environmental Management Division 19 Chapin Road Building C Pine Brook, NJ 07058, U.S.A. Phone: +1-973-808-7645 Facsimile: +1-973-882-3959 E-mail: [email protected] http://www.ricoh-usa.com

G Europe, Africa, and the Middle East Ricoh Europe B.V. Environmental Management Office Groenelaan 3, 1186 AA, Amstelveen, The Netherlands Phone: +31-20-5474111 Facsimile: +31-20-5474154 E-mail: [email protected] http://www.ricoh-europe.com

G Asia and Oceania Ricoh Asia Pacific Pte. Ltd. #15-01/02 The Heeren, 260 Orchard Road, Singapore 238855 Phone :+65-830-5888 Facsimile: +65-830-5830 E-mail: [email protected] http://www.ricoh.com.sg/

G China, Hong Kong, and Taiwan Ricoh Hong Kong Ltd. 21 fl., Tai Yau Building, 181 Johnston Road, Wan Chai, Hong Kong, S.A.R., China Phone: +852-2862-2888 Facsimile: +852-2866-1120 E-mail: [email protected] http://www.ricoh.com.hk/

G Japan Ricoh Co., Ltd. Corporate Environment Division 1-15-5 Minami Aoyama, Minato-ku, Tokyo 107-8544, Japan Phone: +81-3-5411-4404 Facsimile: +81-3-5411-4410 E-mail: [email protected] http://www.ricoh.co.jp/ecology/e-/

G Ricoh Group Sustainability Report has been independently verified by At least 30% of the fibre used in Bureau Veritas Quality International (BVQI) to ensure the reliability of the data the maunfacturing process of this 30% product comes from well-managed gathering used in preparing the report. Minimum forest independently certified according to the rules of the Forest SA-coc-1210 Stewardship Council. FSC TRADEMARK C This report is printed on paper certified by the Forest Stewardship Council (FSC), which is an international labeling scheme providing a credible guarantee as a product of an environmentally well-managed forest, and with vegetable ink for waterless printing (non-VOC ink) not containing volatile organic compounds. Published September 2002. CM-0228