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Environmental Management & Communication with Stakeholders At Ricoh Group

United Nations, Economic and Social Council Economic Commission For Europe Committee On Environmental Policy Working Group on Environmental Monitoring and Assessment (Fifth Session, 2-3 June, 2005). Environmental Management & Communication with Stakeholders At Ricoh Group. 2 June, 2005

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Environmental Management & Communication with Stakeholders At Ricoh Group

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  1. United Nations, Economic and Social Council Economic Commission For Europe Committee On Environmental Policy Working Group on Environmental Monitoring and Assessment (Fifth Session, 2-3 June, 2005) Environmental Management & Communication with Stakeholders At Ricoh Group 2 June, 2005 Kenji Tanaka General Manager Environmental Sustainability Development Office Corporate Environment Division Ricoh Company, Ltd. 5.30. final version

  2. Ricoh Group General Information Main Products • Solutions Provider including manufacturing & marketing office equipment , founded in 1936. • 2. Leading the sales of Digital Multi-functional Office Copier Sales in Europe, US, Asia/Pacific, and Japan • 3. Consolidated in FY2004 as of 31 March, 2005 • - Net Sales: \ 1,814,108 Million • (US$ 17.3 Billion) • - Net Income: \ 83,143 Million • (US$ 792 Million) • - Number of Employees: 75,000 • - Number of group companies in consolidated financial statements : 381 ・Multifunction Equipments in both Black & White (B/W) and Full Color (F/C) Copier-based networkable digital systems that copy, print, fax & scan ・Laser printer in both B/W and F/C US$=Japanese Yen 105

  3. Ricoh Group Brands Ricoh Group markets products under 6 group brands shown to our customers worldwide. RICOHGROUP

  4. Ricoh Global Network: 381 companies Ricoh Hong Kong Ltd. Ricoh Asia Industry Ltd. Ricoh Component(H.K.)Ltd. Gestetner China Ltd. Ricoh Elemex(H.K.)Ltd. Ricoh International Logistics(H.K.)Ltd. • -Main sales/service sites Marketing and Other Operations R&D and Manufacturing Facilities Ricoh UK Products Ltd. Ricoh UK Ltd. NRG Group PLC NRG Group UK Limited Lanier United Kingdom Ltd. Midland Copying Consultants Limited NRG Svenska AB Sindo Ricoh Co.,Ltd NRG Scandinavia A/S Ricoh Electronic Technology LTD.(Beijing) Ricoh European Digital Solution Center Ricoh Norge A.S. (and this is Boston!) Ricoh China Co., Ltd. This is N.J.州 (RC) Ricoh Deutschland GmbH NRG Gestetner Ireland Limited China Headquarters Ricoh Finland Oy NRG Deutschland GmbH GR Advanced Materials Ltd. Lanier Deutschland GmbH & Co.KG Ricoh Electronic Technology Ltd. (China) Mitsui-Ricoh CIS Ltd. Ricoh Wellingborough Products Ltd. Ricoh Europe B.V. European Regional Headquarters Ricoh Polska Sp.zo.o. Savin Corporation Ricoh Nederland B.V. Ricoh Electronics,Inc. Shanghai Ricoh Facsimile Co.,Ltd. Ricoh Industrie France S.A. Tustin Plant Santa Ana Plant Irvine Plant Ricoh Finance Nederland B.V. Ricoh International(Shanghai)Co.,Ltd. Ricoh Canada Inc. Ricoh Corporation Ricoh Software Technology(Shanghai)Co.,Ltd. America’s Regional Headquarters NRG International Limited Ricoh France S.A. Kulk & Kramaer Kantoorsystemen B.V. NRG France S.A. Ricoh Industrial de Mexico, S.A. de C.V. NRG Benelux B.V. Ricoh Finance Corporation Rex-Rotary S.A. Ricoh Innovation,Inc. Ricoh Company,Ltd. Lanier C.V. Ricoh Group Headquarters Lanier Worldwide,Inc. Gestetner (Israel) Limited NRG Belgium S.A. Ricoh Corporation Lanier España S.A. Ricoh Electronics,Inc. Lanier Belgium N.V./S.A. Office solutions and systems Development Group Georgia Plant Taiwan Ricoh Co.,Ltd Lanier ItaIia, S.p.A Ricoh Latin America, Inc. Ricoh Thailand Ltd. Ricoh Mexicana, S.A. de C.V. Lanier Dominicana,S.A. Ricoh Hungary Kft. NRG Distribution Corporation Lanier de Guatemala,S.A. Ricoh Philippines, Inc. Lanier Puerto Rico,Inc. Ricoh Austria GmbH Lanier de EI Salvador, S.A. de C.V. Gestetner S.A. Lanier Bürosysteme GmbH&Co.KG Gestetner Colombia S.A. Ricoh Eleme Office Machine(H.K.)Ltd. Ricoh España S.A. Lanier de Costa Rica,S.A. Ricoh Microelectronics(H.K.)Ltd. NRG Group Spain S.A. Lanier Colombia,S.A. Ricoh Asia Industry(Shenzhen)Ltd. Lanier de Panama,S.A. Ricoh Asia Pacific Pte. Ltd. Ricoh Italia S.p.A. Ricoh Dianzhuang (Shenzhen)Electronics Co.,Ltd. Asia Pacific Regional Headquarters NRG Italia S.p.A. Dongguan Ricoh Eleme Office Machine Co.,Ltd. Lanier Italia S.p.A. Gestetner do Brazil S.A. Gestetner S.A. Ricoh South America Distribution Center S.A. Ricoh Singapore Pte.Ltd. Ricoh Australia Pty,Ltd. Hanimex Pty,Limited Lanier de Chile, S.A. Rabbit Photo Holdings Ltd. Ricoh Malaysia Sdn. Bhd. NRG Gestetner South Africa(Pty)Ltd. Ricoh Latin America Distribution Center S.A. Ricoh India Limited Lanier(Australia) Pty.Ltd. Gestetner Limitada Lanier(Schweiz) AG. Gestetner(India)Limited Number of countries and regions where the Ricoh Group engages in business activities: 44 countries Number of marketing/after-sales service companies: about 100 Number of marketing/after-sales service bases: about 1,400 Number of R&D and production bases: 44 Number of the Group employees: 74,600 people *Branches + affiliates + after-sales service bases Ricoh Argentina S.A. Ricoh New Zealand Limited Hanimex(NZ)Limited Camera House Limited Viko New Zealand Limited

  5. Ricoh Global Network (Marketing and Other Operations) • Ricoh Europe B.V. • (European Regional Headquarters) • Ricoh Company,Ltd. • (Ricoh Group Headquarters) • Ricoh Corporation • (America’s Regional Headquarters) • Ricoh Asia Pacific Pte. Ltd. • (Asia Pacific Regional Headquarters) • Ricoh (China) Co., Ltd. • (China Headquarters)

  6. Ricoh Global Network(R&D and Manufacturing Facilities) • Shanghai Ricoh Facsimile Co., Ltd. Ricoh Electronics, Inc. • Ricoh UK Products Ltd. • Ricoh Gotemba Plant Ricoh Dianzhuang (Shenzhen) Elecronics Co., Ltd. Ricoh Innovations, Inc. Ricoh Research and development Center • Ricoh Industrie France S.A.

  7. Ricoh’s Corporate & Management Philosophy Corporate Philosophy Love your neighbor Love your country Love your work Management Philosophy To constantly create new value for the world at the interface of people and information To be a good global citizen with reliability and appeal To think as an entrepreneur To put ourselves in the other person’s place To find personal value in our work Our Purpose Our Goal Our Principles

  8. Sustainable Development The basic concept of “Corporate Sustainability” Environment Triple bottom lines Society Economy Sustainable development

  9. Information Disclosure based on Triple Bottom Lines Environmental Responsibility Social Responsibility Financial Responsibility Distributed today for this meeting Ricoh Group has three types of 2004 Sustainability Reports.

  10. Ricoh Group Environmental Principles (Revised in October, 2004) Basic Policy As a global citizen, Ricoh group is obligation- conscious of environmental conservation. In addition, we strive to honor our environmental responsibilities and concentrate group-wide efforts in environmental conservation activities, implementation of which we believe to be as significant as our business operations.

  11. Three Steps toward Environmental Management Management Driven by others Conservation Pro-active Stage Responsible Stage Passive Stage Purpose Concept Outside Pressure ・Regulations ・Competition ・Customers Mission as a global citizen ・Autonomous responsibility ・Autonomous planning ・Autonomous activity Environmental conservation and profit generation are inseparable for continuance. Activities Environmental conservation activities =QCD achievement activity Ex) Reduce the number of parts Reduce the number of processes Improve the yield & working rates Passive activities following legal regulations, competition and customers 1.High goals reduce environmental impact proactively 2.Raise awareness of all employees 1.ISO14000 series 2.LCA (Environmental impact information system) 3.Environmental volunteer leader development system Tool 1.Strategic management by objectives 2. Environmental accounting We are in transition to this stage.

  12. Ricoh’s Approach for Environmental Management ・To continue effective environmental activities, integrate environmental activities into corporate management while improving economical value ・To remain as a leading corporation in 21st century, respond to potential expectations of society for environmental responsibility = Ricoh’s Approaches =1. Grasp of Environmental Impact and Its Reduction ・Environmental Management System (EMS) ・Environmental Management Information System 2. Grasp of Economical Rationale ・Environmental Accounting 3. Incentives for Motivation・Strategic Management by Objectives (SMO)  Environmental target is one of business targets to achieve like revenue/profit and others. 4. Improvement of Employee Awareness ・Environmental Education, Environmental Volunteer Activities, Acquisition of ISO14001 Certification, Activities toward Zero Waste 5. Environmental Communication and Partnerships ・Sustainability Report,Home Page ・Partnership with Customers (Disclosure of Product Information, Office Solutions) ・Partnership with Parts Manufactures ・Environmental Social Contribution For more detail, please refer to 2004 Sustainability Report distributed.

  13. See Page 20 of Ricoh Group 2004 Sustainability report. Ricoh Group EMS - Same understanding from the top management to all employees - Constructing Environmental Management Systems (EMS) in all business sites globally and acquisition of ISO14001 in all sites. No. of sites with ISO14001 (As of April 15, 2003) - First acquisition in Ricoh Gotemba plant in 1995 (ISO/DIS14001) Production or Non-production sites No. of sites in Ricoh group Regions Japan Production sites 21 704 Non-production Other than Japan 21 Production sites 144 Non-production Total 890 sites 890 (100%)

  14. EMS by Suppliers to Ricoh Group No. of EMS Established in Ricoh Group Suppliers For green procurement guidelines, visit our H.P; http://www.ricoh.com/environment/guideline/index.html As of May 1, 2003 79 Total in Region 87 203 329 391 See Page 25, 50-52 of Ricoh Group 2004 Sustainability report.

  15. Achieved Zero Waste to Landfill All Over the World Including all world manufacturing sites, 271 major sites have been in Zero Waste to landfill, as of March, 2005 See Page 57-60 of Ricoh Group 2004 Sustainability report. Ricoh Electronics, Inc. CaliforniaMexicoGeorgia 2001/032001/032000/12 Ricoh UK Products Ltd. 2001/09 Ricoh Industrie France S.A. 2000/06 Japan 2001/03 Ricoh Asia Industry (Shenzhen) Ltd. 2002/03 Taiwan Ricoh Co., Ltd. 2003/03 Sample in Resource Conservation

  16. Achieved Zero Waste to Landfill in USA Zero Waste to landfill in Ricoh Electronics, Inc. ・Difficult points in particular: Difference in culture and customs ・Pleasurable like a game ・Motivation All employees to be concerned - Employee family photos are put on the panel of waste sorting area. - Family are watching employees’ activities (Georgia) “Zero Hero” comes from Zeron Planet to promote environmental activities into space with supporting members (Georgia) - Displaying declaration of commitment of all employees (California) Activities of Zero Waste to landfill resulted in improving company competitiveness, for instance, a great time reduction for all employees to completely understand a top policy in addition to improvement of employee participation willingness and yield of production.

  17. Chemical Management 14th Medium-term Management Plan 15th Medium-term Management Plan 2002 2003 2004 2006 2005 Implementation of European RoHS Directive : July Banned substances on use in Ricoh ●Asbestos ● PCB ● PCN ● PCT ● Paraffin chloride ● HFCs, PFCs, SF6 ●Ozone depleting substances ● TBTO ● TBT, TPT ● PVC Substances Phased Out in the 14th Medium-term Management Plan of the Ricoh Group RoHS Directive- controlled substances ●Lead and its compounds ●Hexavalent chromium and its compounds ●Cadmium and its compounds New models launched or to be launched since January 2005 are in compliance with RoHS requirements. Current models in sale will be the same by June 2006. ●Mercury and its compounds ● PBB ● PBDE See Page 48-52 & 61-64 of Ricoh Group 2004 Sustainability report., or visit our H.P. ; http://www.ricoh.com/environment/guideline/02.html

  18. Concept of Environmental Impact Information System See Page 29-30 of Ricoh Group 2004 Sustainability report. Information on Environmental Impact ofeach Product throughout its Life Cycle Energy and Resource Utilization Collection,Recycling,Disposal Component manufacturing Logistics,Sales Use,Maintenance Assembly Exhaust to the air, Discharge to the water and the soil,and Efflux to the other environment GlobalＣＯ２　　　　　　　　　　　 ＣＯ２　　　 　　 ＣＯ２　　　 　 ＣＯ２（Use of power　 ＣＯ２ WarmingHCFCs, HFCsHCFCs, HFCsand paper by product） Air　 　ＮＯｘ、ＳＯｘ　　　　　　　　ＮＯｘ、ＳＯｘ　　 ＮＯｘ、ＳＯｘ　　ＮＯｘ、ＳＯｘ　　　　 　 ＮＯｘ、ＳＯｘ Pollution HazardousPollutantsHazardousPollutantsHazardousPollutants WaterＢＯＤ, ＣＯＤ, Phosphorus,ＢＯＤ、ＣＯＤ　　　　　　　　　　　　　　　　　　　　　 　 ＢＯＤ、ＣＯＤ Pollution Nitrogen, DetergentDetergent OthersNoise, Bad order,Landfilled Ozone, Dust Soil Pollutin by Hazardous Landfilled WasteWasteNoise Pollutants , Landfilled Waste Information on Environmental Impact of each Process

  19. Procurement Design Manufacturing Logistics Sales Use Maintenance Collection,Recycling Management Information RecyclingInformationSystem CarAllocationSupportSystem(RLC) CSSSystem WasteMeasuringSystem PowerMonitoringSystem SIMONS(RTS) Ricoh Accounting System Environmental Accounting DB Management Information System MCAD RAMDA Σ－Ｅ SPERC RavenderNet EnvironmentalImpactManagementDatabase EnvironmentalImpactCollectionDatabase MaterialData MonitoringDatabase(EMS) EnvironmentalAspectInformation(EMS) ProductEnvironmentalInformation EnvironmentalAspectInformation(EMS) MonitoringDatabase Accounting Information Pool Database ComponentData ProductEnvironmentalInformationDatabase RECSIS ProductAllocationInformation ProductionPlanInformation Marketing Data(BRAIN/S) Sales Data(RIGMAS) Environmental Impact Information System Environmental Accounting System Collection Environmental ManagementInformation Integrated Database Speed-up of totalization Improvement of analytical precision Provide useful information for managers, each division and stakeholders Application Other stakeholders Design division Collection, Recycling Sites Management Sales Logistics Maintenance Improvement of products’ environ- mental performance; Reduction of data collection load; Evaluation of recyc- ling efficiency, etc. Reduction / identifying of environmental impact resulting from maintenance, etc. Reduction of environmental im- pact;Reduction of data collection load; Advance of identi- fying and correcting data etc. Reduction / identifying of environmental impact resulting from sales; Sales promotion, etc. Reduction / identifying of environmental impact resulting from recycling;. Increase of profit. etc. Reduction / identifying of environmental impact resulting from logistics, etc. Information disclosure; Environmental report; Web page; Questionnaire, etc. Evaluation of sus-tainable mana- gement indicator; Evaluation of each division or product, etc. Environment Management Information System

  20. Environmental Impact of Ricoh’s Business Activities 25.1% Resources / Parts Consumption 8.52 Chemical Substances Contained in Products Product collection, reuse, recycle P43-47 8.38 Domestic Plants Chemical Management P48-52 7.39 Overseas Plants EMS, Zero Waste to Landfill, etc. P57-60 0.85 Domestic Non-Production Sites 0.43 Transportation 0.76 Sales Energy saving of products P40-41 10.8% Electric Power used at customer sites Paper used at the customer sites 37.0% 0.32 Maintenance Work Products to enable Duplex prints, multiple pages in a sheet, Fax to e-mail, electronic paper P41-42 0.47 Maintenance Parts Production 0.04 Disposal / Recycling 0 10 20 30 40 % Grasp Environmental Impact for Improvements

  21. Strategic Management by Objectives (SMO) See Page 20 of Ricoh Group 2004 Sustainability report. Financial Internal Business Process Customers Learning & Growth Environmental

  22. EnvironmentalCommunication Ricoh Group Sustainability Report & Site Report by group companies Ricoh group international environmental H. P. http://www.ricoh.com/environment/index.html To disclose more reliable information, date in the report was reviewed by BVQI, a third party, in Japan as well as other international sites, which result is explained in the report. (See Page 81-82.)

  23. Summary 1. Strong leadership by top management and participation of all employees 2. World No.1 manufacturer through development of environmental technology 3. Improvement of economical value through environmental activities to be sustainable 4. Obtainment of reliance from society by disclosing environmental information.

  24. For further information, please refer to Ricoh Group Sustainability Report in 2004, or, visit our home page at; http://www.ricoh.com/environment/index.html Thank you for listening.

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