Basis for Sustainable Environmental Environmental Management System Management We are promoting participatory sustainable management by all

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					         Basis for Sustainable
         Environmental                        Environmental Management System

We are promoting participatory sustainable management by all employees based on the
Plan-Do-Check-Action (PDCA) cycle for the entire Group, including each business site
and division.
   The Ricoh Group’s environmental                             EMS of the Ricoh Group
   management system (EMS) is an                                SMO
   important tool in facilitating sustain-                      Divisional evalua-                                                                   PLAN
                                                                tion under the
   able environmental management on                             Strategic Management                                                                 General principles on the
                                                                by Objectives                                                                        environment
   a global scale. The Ricoh group as a                                                                                                              Environmental action plans
   whole, and each of its business                                                                                                                    P
   sites and division, is promoting par-                          ACTION                                            A
                                                                   Review of the                                                                      P
   ticipatory sustainable environmen-                              Company’s                                                                                       D
                                                                   EMS                                                             C                  P
   tal management by all employees                                                                                                                                 D
                                                                  CHECK                                                            C
   based on the PDCA cycle. The a-                                 Achievements                                                                                    D
   chievements of the environmental                                under environmental                                             C
                                                                   action plans                                                                                        EMS at business
   action plan prepared by each busi-                              Eco-Balance
   ness site or division are evaluated                             accounting                                                                       DO
   in management reviews* using en-                                                                                                                 Company regulations,
                                                                                                      EMS of the Group                              environment training and
   vironmental accounting. Further-                                                                   as a whole                                    promotion of awareness, and
                                                                                                                                                    development of environmental
   more, based on the Group-wide                                                                                                                    technologies
   Strategic Management by Objec-
   tives (SMO), which takes an envi-
   ronmental conservation perspec-
   tive, the Ricoh Group continually
   evaluates the business performance                          Sustainable Environmental Management Activities Participated in
   of its divisions. Recently, all sales                       by All Employees
   companies in Japan, Asia, and Europe                                                  s Setting of high environmental goals
                                                                      Research and
   have developed and are now promot-                                 Development          • Developing environment-friendly technologies, including energy
                                                                                             conservation technologies, recycling technologies, and new energy
   ing their own programs to evaluate
   sustainable environmental manage-                                                     s Practical application of environmental assessment of
   ment performance.                                                 Product Design        products and environment-friendly technologies
                                                                                           • Reducing the number of parts, sharing parts, and using parts longer
                                                                                           • Reducing the use of environmentally sensitive substances
   * The review is conducted by management to en-                                          • Creating energy conservation designs and recyclable designs and
     sure the appropriateness and efficiency of EMS.                                         improving productivity with duplex copying
                                                                                         s Green procurement and green partnership
                                                                      Procurement          • Procuring materials and parts with less environmental impact
                                                                                           • Supporting suppliers in constructing EMS

Participatory Approach by All
                                                                                         s Increased environmental efficiency through improved
Employees                                                            Manufacturing         manufacturing processes
                                                                                           • Downsizing manufacturing facilities
The Ricoh Group is making an effort to                                                     • Improving yields and operation rates
                                                                                           • Implementing resource conservation and recycling activities
improve sustainable management based on                                                    • Reducing environmentally sensitive chemical substances

a “all-employee participatory approach.”
This “all-employee participatory approach”
means that all employees in all divisions,                                               s Promotion of recycling-based logistics
                                                                     Transportation        • Providing direct delivery, from the plant to the customer
                                                                                           • Improving packaging (recyclable eco-packaging and reusable racks)
such as R&D, product design, materials                                                     • Transporting products with less environmental impact

procurement, manufacturing, transporta-
                                                                                         s Green marketing and environmental communication
tion, sales, maintenance/services and col-                              Marketing          • Marketing products and proposing systems that have less environ-
                                                                                             mental impact
lection and recycling, participate in                                                      • Implementing environmental conservation activities at Ricoh offices
                                                                                           • Providing accurate information to customers on the Ricoh Group’s
environmental activities. These activities                                                   environmental activities

are regarded as just as important as “QCD
                                                                      Maintenance        s Improved office environment through maintenance
activities,”* which involve pursuing prof-                            and Services         and services
                                                                                           • Contributing to the improvement of the customer’s environment
itability. To improve environmental activ-                                                 • Recycling used replacement parts

ities, internal benchmarks and know-how                                                  s Recycling business
                                                                     Collection and
                                                                                           • Implementing a recycling information system
are provided to all employees from time to                             Recycling           • Increasing the number and quality of collected items
                                                                                           • Improving the resource recovery rate
time to make them more environmentally                                                     • Getting feedback on recyclable designs

* QCD means activities to improve the management of Quality,
  Cost, and Delivery.

                                                                                                                              Social Contribution of
                                                                   Concept        Basis          Products    Business Sites   Environmental Conser-

Strategic Management by
Objectives (SMO)                                                        The Ricoh Group’s SMO
                                                                                                                  (1) Financial perspective
Ricoh introduced SMO in 1999 to clarify                                                                           How to treat sharehold-
evaluation standards for environmental                                                                            ers to ensure financial
conservation activities that are used in
divisional performance evaluations. This                                     (2) Customer perspective                                                      (3) Internal business process
system is based on the Balanced Scorecard                                    How to treat customers
                                                                             to ensure strategic                                                           How to draw up business
system, a performance management sys-                                        integrity                                  Mid-term                           plans that will satisfy share-
                                                                                                                                                           holders and customers
tem developed in the 1990s in the United                                                                                strategy
States and characterized by the use of four
perspectives. Ricoh has added a specific
environmental conservation perspective to                                                 (4) Learning and growth                              (5) Environmental conser-
                                                                                               perspective                                          vation perspective
the system and is promoting SMO for                                                        How to maintain the abil-                            How to carry out envi-
                                                                                           ity to adapt to changes                              ronmental conservation
global sustainable environmental manage-                                                   and improvements to                                  as a social responsi-
                                                                                           pursue strategies                                    bility

Acquisition of ISO 14001
Certification                                                      Environmental Auditing                                             risk (risk of investment or asset manage-
To realize sustainable environmental man-                          The Ricoh Group has internal environ-                              ment), or an enterprise risk (risk at man-
agement, the Ricoh Group has been mak-                             mental auditors who carry out the environ-                         agement strategy level) should occur,
ing every effort to establish its                                  mental accounting at the Ricoh Group’s                             appropriate responses will be taken and a
Environmental Management System.                                   business sites and report the results to the                       report will be made to senior management.
Starting with Ricoh Gotemba Plant, which                           heads of the sites to help them improve
received ISO/DIS 14001 certification in                            their environmental activities through                             Promotion of Sustainable
1995, all the major production sites in the                        more effective PDCA cycles.                                        Environmental Management by
world were ISO 14001 certified as of                                                                                                  Sales Companies
March 2000. In 2001, the domestic sales                            Risk Management                                                    All sales companies in Japan, Europe, and
group as a whole was ISO 14001 certified.                          In October 2003, the Ricoh Group estab-                            the Asia-Pacific region have developed,
Sales companies other than those in Japan                          lished the Basic Regulations of Ricoh                              and are promoting their own programs to
are also making every effort to acquire                            Group’s Business Process Risk Manage-                              evaluate the performance of sustainable
ISO 14001 certification. As of the end of                          ment. In accordance with these regula-                             environmental management based on the
fiscal 2003, 78 bases and 939 sites are ISO                        tions, the following PDCA cycle-based                              PDCA cycle. European and Asia-Pacific
14001 certified. Those companies and                               management steps are undertaken: Estab-                            sales companies have been implementing
sites that have newly joined the Ricoh                             lishment of Basic Objectives and Targets;                          the Sustainability Self-Assessment Pro-
Group are aiming at acquiring ISO 14001                            Establishment of Measures to Prevent the                           gram (SSAP*) and the Sustainable Envi-
certification within three years. The Ricoh                        Occurrence of Crises and Initial Responses;                        ronmental Management Evaluation, re-
Group has clarified the standards by size                          Implementation of Measures to Prevent                              spectively, since fiscal 2002. In fiscal
of organization to promote companywide                             the Occurrence of Crises and Initial Re-                           2003, sales companies in Japan conducted
activities for the acquisition of ISO 14001                        sponses; Evaluation of Effectiveness of                            evaluations based on the Sustainable En-
certification.                                                     Measures to Prevent the Occurrence of                              vironmental Management Improvement
* For a list of companies and sites that have acquired ISO 14001   Crises; Initial Responses; Risk manage-                            Evaluation System. The evaluation results
  certification, please refer to the Ricoh Group Web site.
                                                                   ment System, and Establishment of Cor-                             of these sales companies are disclosed to
                                                                   rective Measures; Implementation of                                all companies and sites in the Ricoh Group
                                                                   Corrective Measures. As for Initial Re-                            so that their benchmarking may be easily
                                                                   sponses to Be Taken in the Event of a                              made and their sustainable environmental
                                                                   Crisis, the Ricoh Group has clarified those                        management improved.
                                                                   units that are responsible for reporting the                       * See page 21.

                                                                   occurrence of the crisis. If a risk of natural
                                                                   disaster or an accident (risk of earthquake,
                                                                   typhoon, fire, or explosion), or a financial