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Ricoh UKSustainability Report

2015

ricoh.co.uk

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ContentsIntroduction 4

Scope of this Report 6

About Ricoh UK 8

Financial Highlights 9

Ricoh Capabilities 11

Corporate Activities 20

Environment 29

People 38

Community 55

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Introduction Chief Executive Officer’s Statement

Welcome to Ricoh UK’s annual sustainability report which highlights details of our economic, social and environmental achievements during FY2014 and into 2015.

As the economy, and society in general, experiences significant changes such as advances in Information and Communication Technology (ICT), manifestation of resource and energy issues and development of globalisation, the Ricoh Group is facing a turning point in its business strategies. We have recognised trends in customer demand, specifically in one of our core business areas, Imaging and Solutions.

These trends include:

• Improvement of workflow and reduction of total cost of ownership (TCO)

• Shift from ‘owning equipment’ to ‘using services’

• Higher awareness of environmental conservation in order to actualise low-carbon offices

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To meet these new demands we combine multiple products and services to be offered as a set solution for the specific challenges of individual customers.

The work styles of our customers are also changing. As greater amounts of information are being digitised, use of cloud computing, smartphones and tablet PCs has been rapidly spreading. As a result, communication media have diversified and the costs for information sharing have been drastically reduced. Diverse ways to generate, store, search and use information have allowed for significant advancements. Now demands are being shifted to new products and services that can supply a good work environment wherever and whenever they are required.

Presently, society demands that global companies play a role not only as entities that generate economic value but also as organisations that make contributions toward solving issues facing the Earth and its people, as well as in creating a sustainable society. At the same time, elements influencing corporate activities

are experiencing increased diversification and expansion in their range of effects.

This does not solely affect companies themselves but also all of their stakeholders. In order to correctly respond to these changes in the demands of customers and society, the Ricoh Group plans and implements management strategies that are based on three key elements: ‘economy’, ‘society’ and the ‘environment’. We work to both further the growth of the Group and to create a sustainable society.

Our goals for the 18th Mid Term Plan (implemented from financial year 2014 to 2016) are to “strive for a global brand, create a future with new innovation and achieve ‘growth’ and ‘restructuring’ simultaneously.” Under these goals, we work on two basic strategies: ‘business creation and integration’ and ‘establishment of highly effective management’. The Ricoh Group will put these basic strategies into practice to rebuild a business structure that will support further growth of the Group. Exercising our collective imagination to design a future,

we will keep working on building innovation that will exceed the expectations of our customers.

As an integral part of the development of these strategies, research has demonstrated that the need for a ‘services-led’ proposition will outgrow the demand for ‘traditional’ equipment sales. We have structured a process to communicate this change to our Business Partners and, as a result, will help to ensure their own growth and sustainability.

Thank you for taking an interest in this report.

Exercising our collective imagination to design a future, we will keep working on building innovation that will exceed the expectations of our customers.

Phil KeoghanChief Executive Officer Ricoh UK Ltd

Introduction

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Scope of this ReportThe Ricoh UK Sustainability Report covers the operations and employees of Ricoh UK Ltd and is produced annually. The results featured in this report relate to the financial year from April 2014 to March 2015, and the various initiatives described relate to the period from April 2014 to November 2015.

Ricoh UK Ltd is a wholly owned subsidiary of Ricoh Europe PLC. Ricoh UK Ltd has more than 2,500 employees working nationwide across the United Kingdom. Ricoh’s manufacturing facilities in Telford and activities with Business Partners are not included within the scope of this report. Further details of these activities can be found in the Ricoh Group Sustainability Report. Audited financial figures are published in the Ricoh Group Annual Report. Both reports can be downloaded from www.ricoh.com

This report highlights Ricoh UK’s performance during the financial year ended 31st March, 2015 and previous periods. The Company makes every effort to ensure the accuracy of the data included herein, but undertakes no obligation to update this data subsequent to publication.

Your Feedback If you have any comments, opinions or suggestions regarding this report, please contact Ricoh UK via the ‘Contact’ section of our website www.ricoh.co.uk.

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Rebekah WallisDirector of People & CR

James DeaconHead of CR

Rick HewittFinance Director

Mike BaddeleyHead of Business Excellence

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About Ricoh UK

£478.5mSales

£20mNet Income

No.1*

Production PrintMono Market Share

2,547Number

of employees

No.1*

MFD Market Share

No.1*

Production PrintColour Market Share

★★★

1★ ★★

1★ ★★

1★ ★★

£

88 About Ricoh UK

*Infosource

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Financial Highlights

Ricoh UK has achieved strong, consistent growth over the last five years through our core capabilities in Managed Document Services, Production Printing, Office Solutions, Business Process Services and IT Services.

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

422,578

422,864

438,433

463,070

478,445

971

4,492

7,885

17,060

20,111

37,176

41,668

49,553

66,613

86,724

(FY) 0 (FY) 0 (FY) 0

Sales(£000’s)

Net Income(£000’s)

Net Assets(£000’s)

Financial Highlights

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Our ‘imagine. change.’ corporate strap line summarises

our approach to developing innovations that improve lives.

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Ricoh CapabilitiesPreparing for a new World of Work To accompany our industry-leading print and communication products and solutions, we have developed eight service lines to help and support organisations build document infrastructure, processes and beyond to create a more efficient, high-performing workspace. These are Managed Document Services, Production Printing Services, Sustainability Management Services, Business Process Services, IT Infrastructure Services, Application Services, Communication Services and Workplace Services.

The 18th Mid-Term Plan (MTP) New innovation, growth and restructuring makes Ricoh a truly global brand. The Ricoh Group launched its 18th MTP in April 2014 with a set of specific aims that resonate with our core values and commitment to helping build a sustainable society.

Our ‘imagine. change.’ corporate strap line summarises our approach to developing innovations that improve lives. In order to grow, we plan and restructure our activities in accordance with the demands of our markets and the needs of the global population.

Ricoh’s Sustainability StrategyCorporate Responsibility (CR) is integrated into the very heart of how we do business. Our CR strategy dovetails with our Corporate Philosophy developed by our founder, Kiyoshi Ichimura.

Ricoh Capabilities

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Mr Ichimura’s twin vision is simple: “To innovate on behalf of our customers and to pursue sustainable business practices on behalf of every life we touch.” This vision is an underlying principle in our business. For us, sustainability is about developing a business model that delivers lasting value for all stakeholders. Our products are designed to cater for all abilities with specific focus on operating, visual, wheelchair and ageing accessibility.

With outstanding corporate success comes great social responsibility. If we are to continue to grow and prosper, we must strive to be a ‘best-practice’ example of corporate citizenship.

We are equally committed to fulfilling our economic, social and environmental responsibilities, and ensure we co-exist in the communities we operate in.

The ‘Three P’ ApproachOur CR Strategy is defined in the “Ricoh CR Charter” which was established in 2003 and developed to integrate Ricoh’s core values into our daily activities. We take a ‘three P’s’ approach to sustainability: People, Planet and Profit. This ensures our business model is maintained and continuously improved to support our CR, business and environmental objectives.

Our commitment to CR is publicly recognisedOur ‘tall order’ target to reduce CO2 emissions by 20% was achieved in 2010 and we are on track to fulfil our long term vision to reduce environmental impact by 87.5% by 2050. Through our Total Green Office Solutions, we also help our customers to accomplish their own targets.

Additionally, we have evaluated ourselves using the guidance provided by ISO26000 to identify how well we are aligned with the applicable core subjects and issues of social responsibility included in ISO26000 guidance standard and, where necessary, to identify any areas for improvement.

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The Ricoh Way“The Ricoh Way” is a global philosophy and set of core values shared amongst all Ricoh Group companies, and is the foundation of Ricoh’s daily business operations. It consists of Founding Principles, Mission, Vision and Values. These components demonstrate our drive to provide excellence, innovation, continuous improvement and value to our customers while being integral to our employees’ development and our brand.

The Ricoh Way values are:• To have a winning spirit

• To show dedication to innovation

• To focus on teamwork

• To demonstrate a customer-centric focus

• To commit to the highest standards of ethics and integrity

We are equally committed to fulfilling our economic, social and environmental responsibilities, and ensure we co-exist with the communities in which we operate.

Ricoh Capabilities

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The Ricoh Code of ConductThe Ricoh Group Code of Conduct is intended to establish the basic standards to ensure that executives and employees of the company, when engaging in corporate activities to advance the Ricoh Group, shall act in accordance with social ethics and in full compliance with the law. The Code of Conduct is grouped under the four principles of integrity in corporate activities, harmony with the environment, respect for people and harmony with society. These four principles define how Ricoh UK manages its activities in a sustainable and responsible manner.

Ricoh expects that employees:• Observe the relevant national

and regional laws at all times

• Maintain high ethical and moral standards

• Observe the rules and regulations established by Ricoh UK

• Make every effort to ensure the maximum possible customer satisfaction

• Seek to maintain creativity and think independently so we continue to add value

• Understand the other person’s views by “putting ourselves in their place”

• Seek to ensure the progress of the Company is fully consistent with the personal happiness of its peopleRicoh is

committed to ensuring its employees:• Have the opportunity

to learn, develop and grow, not only in a work context but also as individuals

• Provide support to improve existing skills and develop new ones

• Have a fair and impartial system for evaluating and recognising their individual skills and abilities

• Have a safe, pleasant and functional working environment

Ricoh Capabilities

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Integrity in Corporate Activities

for every company in the Ricoh Group

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Corporate Responsibility (CR) CharterTo enable us to grow as a respected enterprise, all companies within the Ricoh Group must plan their CR activity within a consistent global framework and throughout all operations. To ensure this, the following principles are to be observed, with the proper social awareness and understanding, compliant with both the letter and the spirit of national laws and the rules of international conduct:

• Integrity in Corporate Activities for every company in the Ricoh Group

• Harmony with the Environment

• Respect for People

• Harmony with Society

Management Ownership of Corporate ResponsibilityRicoh UK measures its CR performance annually via participation and scoring in the independent BITC CR Index, awarding the CEO along with all directors and managers a bonus related to CR performance. The CEO and Board’s remuneration package is 70% salary and 30% performance-related bonus against business targets. 5% of bonus is related to CR performance across a number of variables.

CR CommitteeRicoh UK formalised a Corporate Responsibility Committee in 2011 that meets regularly to coordinate its CR operations. It includes several members of the Board and key subject matter experts. The committee meets regularly to discuss, progress and use the most appropriate technologies to minimise Ricoh’s environmental impact. The agreed actions and initiatives are communicated to the rest of the Management Board through monthly meetings. These are cascaded to employees through various communication methods including our intranet and monthly video podcasts.

Ricoh Capabilities

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The role of the CR Committee is:• Develop CR policies and

strategies that will effectively implement Ricoh’s CSR Charter at a national level

• Co-ordinate the implementation of CR policy and strategies across Ricoh UK

• Agree and implement appropriate balanced scorecard measures to report progress on the key initiatives

• Ensure the availability of sufficient resources to achieve set objectives and targets

• Communicate all policies, targets, initiatives and achievements to relevant stakeholders

• Promote, encourage and support all sustainability activities within all business divisions and through our key suppliers and Business Partners

BITC (Business in the Community) CR IndexOur key focus areas for corporate responsibility are aligned to the BITC CR Index around Marketplace, People, Environment and Society. Since 2010 we have annually taken part in the BITC CR Index assessment process, improving our CR performance year-on-year by acting upon the content of each year’s CR Index feedback report content and by using the CR Index framework as a gap analysis tool.

Winners of the 2015 UK Excellence Award

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Business Excellence Ricoh recognises that being a customer-centric organisation requires on-going self-reflection. This enables us to respond intelligently to the ever-changing needs of our customers and essentially deliver value from their perspective. We gather feedback from all stakeholders and ‘voice of the customer’ targeted surveys. This data is used to identify and drive process improvement within the business, which helps to shape our strategy.

Ricoh ensures that it is an efficient and effective organisation by using a number of world class frameworks. This includes Strategy Maps, Balanced Scorecards, management systems and EFQM Excellence model.

Awards and Recognition 2014/2015Winner of the British Quality Foundation’s UK Excellence Award 2015

Finalist in the British Quality Foundation’s Leadership Award 2015

Finalist in the British Quality Foundation’s Six Sigma Award 2015

Awarded 4-Star status within the Business in the Community 2015 CR Index, scoring 97%

Finalist in the Business in the Community Responsible Business Awards – Sustainable Products and Services category

Shortlisted in the Business in the Community Responsible Business Awards – Inspiring Young Talent category

Investors In People Gold Employer accreditation

Living Wage Employer accredited by the Living Wage Foundation.

Ricoh Capabilities

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Corporate ActivitiesRicoh Business Services

We deliver services to support and transform the way our Business Partners work, collaborate and share information. Keeping up with the needs of today’s workforce needs a strong infrastructure and user-friendly tools to help us capture, transform and manage information. To do this, our services are grouped across eight different business areas:

• Managed Document Services – Providing cost-saving Information and Document Management

• IT Infrastructure Services – Optimising IT to enhance productivity, increase efficiency and deliver lasting strategic advantage

• Business Process Services – Fully-managed outsourced solutions to streamline core document processes and increase output

• Production Printing Services – Support to improve the effectiveness of document-based communications and the efficiency of production processes

• Sustainability Management Services – Reducing the environmental impact and cost of business processes

• Communication Services – Flexible, efficient communication solutions to enhance outreach to customers and collaboration between employees

• Application Services – Expert application delivery, consultancy and support services for improved information workflows

• Workplace Services – Consultancy and support to streamline office processes to create a more agile and efficient workspace

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Annual Assessment and ComplianceTo help us manage our corporate integrity, we have developed the ‘Total Risk Management’ framework that identifies key risk areas and the stakeholder groups affected by them. This includes the Annual Assessment to review the effectiveness of our policies and strategies and minimise risk. This also ensures that our practices meet the demands of the changing business environment and the needs of our customers.

ISO9001The internationally recognised ISO9001 standard is held by Ricoh Group factories, Ricoh UK Ltd and our major Operating Companies. It provides an assurance of best practice quality management. In addition to this, all of our worldwide Operating Companies are certified to ISO27001 for Information Security Management. These attributes enable us to provide technologies and services that are reliable, secure and intuitive. The result is a customer experience that exceeds their expectations at every stage of the sales cycle.

Legal ComplianceIt’s imperative that our employees have a full understanding of European and UK legislation. For the past seven years Ricoh UK has been developing a complete compliance training programme that focuses on ‘data protection’, ‘competition law’ and ‘bribery and ethics’. The Ricoh Global Code of Conduct expresses the seriousness of our intention and can be downloaded from our website:

www.ricoh.co.uk/ about-ricoh/our-principles/ csr/reports-and-policies

Our Compliance CommitteeA dedicated team of Board Members makes up our pan-European Compliance Committee. They meet twice a year and their role is to review our policies and internal audit reports.

Bribery and Corruption Ricoh works strictly in accordance with the United Nations Global 10th Principle and complies with the anti-corruption laws within the countries we serve.

An appointed pan-European Anti-Corruption Officer (ACO) is tasked with the ongoing review of our Anti-Corruption and Gifts and Hospitality Policies. To support this role, each Ricoh Operating Company has its own national ACO.

Ricoh Capabilities

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Financial ReportingWe document and map our financial processes in line with the requirements of the Sarbanes-Oxley Act. This ensures the accuracy and reliability of our reporting and allows us to establish controls to effectively manage financial risks. In order to make doubly sure of our compliance, our processes are externally audited by KPMG.

Whistle-blowingSarbanes-Oxley has a set of regulations that require us to provide a whistle-blowing service to all our employees. We strictly adhere to these policies and, in tandem, have created a whistle-blowing policy that gives guidance to our workforce in the event that they should have a concern that effects the reputation of the Ricoh Group.

Our areas of concern include criminal offences, failure to comply with local legal and regulatory obligations and improper accounting and auditing. We also ensure that the health and safety of individuals is protected, we watch for endangerment of the environment and any miscarriage of justice, as well as concealment of information relating to any of these areas.

The policy enables our employees to raise genuine concerns at an early stage through either an internal reporting procedure or through a third party Hotline Reporting Procedure. There have been no whistleblowing incidents recorded in the last four years.

Information SecurityWe have been awarded the global certification ISO27001 ‘Information Security Management System’. This certification was originally established in Japan in 2004 (certificate no. IS95241) and provides additional assurance of our ability to keep our customers’ information confidential across our Managed Document Services, Production Print, Office Solutions and IT Services. To continue our certification for Ricoh Group we have a programme that conducts annual, worldwide audits.

Information Security Management System (ISMS)Ricoh UK works in partnership with our Accredited Certification Body, British Standards Institute (BSI) and our EMEA regional parent company Ricoh Europe PLC. The focus of this partnership is to maintain and improve our Information Security Management System (ISMS). As our business evolves, the need to protect information grows with it. A coordinated annual audit programme is conducted on every Operating Company by either BSI or a certified Lead Auditor from Ricoh Europe PLC. The audit is overseen by a nominated manager.

This appointed manager is also responsible for overseeing the continued improvement of our ISMS. Ricoh UK has a Local Information Security Committee (LISC) that is responsible for reviewing any ISMS incidents, feedback from internal and external audit reviews as well as creation and implementation of new ISMS policies and procedures.

We have been awarded the global certification ISO27001

‘Information Security Management System’.

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TrainingWe have an annual e-learning module which provides an overview of our ISMS and tests employees on their understanding of its policies. Further modules will be developed that deliver content on specific elements of the ISMS within Ricoh UK. Employees are required to pass the original module and will be required to show an understanding of the follow up modules. These policies and procedures are reinforced through our Intranet and an ISMS handbook provides employees with an easy to follow ISMS high level overview.

During FY2013 and FY2014 no major non-conformances were identified through external audits. Both BSI and Ricoh Europe have recognised our high standards in managing ISMS.

Our key activities for 2015 consist of:

• Integrate our Quality, Environment and Health & Safety management systems (ISO9001, ISO14001 & BS EN 18001 soon to be replaced with ISO45001)

• To become certified to ISO 22301 for Business Continuity

Product Safety and SecurityWe assess the health and safety impacts of our products throughout all stages of their lifecycle. This starts with the original concept and continues through manufacturing, marketing, distribution and customer use through to effective recycling.

Safety is considered an absolute priority, so Ricoh has developed a Product Information system that itemises all environmental and health and safety performance aspects of our products. This system streamlines the process of complying with all legal aspects relating to these criteria.

IEEE 2600.1 is an international standard for security functions of hardcopy devices, including multifunction devices and printers. To assure our customers of the security of our products, we offer a broad line of CC-authenticated products that comply with IEEE 2600.1. For more information, see the Ricoh Products authenticated with CC (ISO/IEC 15408).

Ricoh Capabilities

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RoHS (Restriction of Hazardous Substances)The RoHS dictates that if an electrical or electronic product contains six key hazardous substances, as defined in its regulations, it cannot be entered into the marketplace. Ricoh not only ensures that all of our products comply with RoHS but we have actively banned an additional six substances that are not currently covered.

REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) is an organisation that requires the registration and management of all chemical substances used in business. Ricoh has taken this a step further by forming a rigorous Chemical Substance Management System that extends throughout our supply chain.

ProcurementIn January 2006, the Ricoh Group set up the Ricoh Group Supplier Code of Conduct. All of our suppliers are required to comply and to make efforts in reaching for a better society and global environment and sustainable

development of society. The code of conduct includes clauses on human rights, which are in accordance with the UN Global Compact and the International Labour Organisation (ILO). They include the prevention of child labour and a commitment to environmental conservation.

Within the UK we have a central procurement toolkit that includes key processes, template documents and checklists for procurement activity. It ensures that we are meeting our stated procurement objectives throughout the procurement process. This starts with initial recognition of customer needs through to contract award, ongoing contract management and benefits reporting.

Environmental Management System (EMS)The Ricoh Group purchases materials and parts used to manufacture products in line with Green Procurement Standards. As part of our efforts to help suppliers promote environmental protection, we have developed Environmental Management System (EMS) and Chemical

Substance Management System (CMS) Guidelines to help the suppliers establish their own EMS and CMS aligned with those of the Ricoh Group. These guidelines are used to provide suppliers with training and education as well as support in operating the management systems.

Customer InsightRicoh has two separate channels that enable us to deliver our products and services. The Direct Sales channel and, for our network of Distributors and Dealers, we have an Indirect Channel. We are perfectly set up to serve businesses of every size, from SMEs to Fortune Global 500 companies.

Improving the Customer ExperienceAs well as recognising the rational side of the customer experience, we look for ways to improve the emotional aspect. Senior managers from across Ricoh UK form our Customer Centricity Leadership Group and are tasked with improving the overall customer experience in line with The Ricoh Way values. This includes acting as role models

In October 2014 we were successfully third-party audited and

accredited to the Customer Service Excellence Standard.

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and ‘change agents’, effectively mentoring our employees into putting the customer at the heart of everything we do.

The group meets periodically to exchange knowledge, update one another on progress and to report the outcomes to the Board of Directors. We use a range of ‘voice of the customer’ surveys to gather feedback from our customer groups.

In October 2014 we were successfully third-party audited and accredited to the Customer Service Excellence Standard. This gave us recognition of our integrated and company-wide approaches, ensuring that our customers experience outstanding levels of service, responsiveness and satisfaction.

Specialist SurveysWe value feedback from IT Managers, Account Managers and our network of dealers and distributors. They give us valuable insights into how our products are performing in the real world. Depending on the topic, sales channel, market or target audience, we’ll hand pick a research company to conduct the research. The findings of those surveys are then used to improve our approach to product development.

Event Driven SurveysUnderstanding a customer’s experience of specific actions is essential when improving our services across the board. An example of this is our ‘Service Call’ survey. It’s conducted by an external research company called Marketi and is carried out across

all Ricoh Operating Companies in the EMEA region. The results are benchmarked against our Ricoh European Operating Companies. Ricoh UK is the current leader.

Corporate Activities Complaints ManagementWe believe that the measure of a good company is by how it resolves problems when they arise.

A dedicated customer care team rapidly responds to all complaints and queries using the Ricoh Query Management system to track customer issues right through to resolution. The system also provides invaluable insights to avoid future errors. When a complaint is dealt with, we don’t just want the customer to be satisfied with the outcome, we want them to see that Ricoh is a company that works diligently to provide the best customer experience in the market.

If a complaint is dealt with effectively, it can turn an occasional customer into a regular one. Part of our process is to discuss the complaints we receive at the highest level, which includes the CEO of Ricoh UK and the Board of Directors at Ricoh Europe. The end result is a system that develops strategic initiatives to provide outstanding customer satisfaction.

European Customer SurveySince 2007, Ricoh has run a survey to understand what influences decision makers in larger organisations with a minimum of 50 Full Time Equivalents when considering office solutions suppliers, as well as measuring supplier satisfaction. We use the services of TNS to conduct the survey simultaneously across ten countries.

Ricoh Capabilities

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Key Sustainability Indicators

Turnover (£ million)

Average Customer Satisfaction (Marketii data)

Average Net Promoter Score

Number of Whistle Blowing Incidents

Marketplace Management Score from CR Index

Y/E 31/03/15

Integrity in Corporate Activities FY2014

£478.5

91.4%

48.0%

0

97%

No.1Best-in-class Customer

Satisfaction

3.35%Increase in turnover

5.4%Increase in

Average Net Promoter Score

Ricoh Capabilities

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At Ricoh, we are committed to enhancing the financial benefits and reducing the environmental impacts for our customers and for our business operations through our innovative technologies and services. Our lifecycle approach and Eco Balance measurement ensure we consider all aspects of products and business activities.

Environment

Our lifecycle approach and Eco Balance

measurement ensure we consider all

aspects of products and business activities.

James DeaconHead of Corporate Responsibility

Environment

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Environmental Management SystemWe have operated a certified Environmental Management System (EMS) to ISO 14001 since 2002. This EMS is still an integral part of how we deliver and manage continuous environmental improvements throughout Ricoh, which is a core element to contributing to our global target.

Carbon Trust StandardThe Carbon Trust is a body that actively educates and measures the commitment of corporations to reducing their carbon footprint.

We have been re-certified for the Carbon Trust Standard by making notable reductions in CO2 emissions by 3.6% over the last year. However, by looking at this in relation to our business growth during this period, our CO2 emissions have been reduced by 7.6%*

Raising environmental standards. Reducing environmental impact

Global 2050: environmental impact target down to 1/8 of Y2KWe have worked hard to reduce our effects on the environment while building upon our reputation as a trusted company to our business Partners. This is an integral part of our drive to actively and effectively do what we can to create environmental targets that have the most positive impact on our planet’s ecology.

We have incorporated the recognised global need for advanced nations to reduce their environmental impact to 1/8 of 2000’s fiscal levels by 2050. This is our Global 2050 Plan. We have devised specific action plans

with both mid-term and long-term goals to ultimately reduce environmental impacts in three key areas across the globe. These are ‘energy conservation’, ‘resource conservation’ and ‘recycling and pollution prevention’.

To track the success of these initiatives, these goals will be measured against projected targets from 2000 and again in 2020.

* Taken from KgCo2e/£million revenue

Ricoh Global Targets 2020 2050

Energy usage reduction -30% -87.5% (from FY2000 level)

Resource usage reduction -25% -87.5% (from FY2007)

Pollution reduction Minimise risks of chemical -87.5% (from FY2000 level)* substances throughout life

cycle by 2020 in compliance with the Strategic Approach to international Chemicals Management (SAICM)

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Achieving the standardIn order to earn the esteemed Carbon Trust Standard, we targeted key areas including vehicle efficiency, improvements to processes and exploring new ways of working. The results helped to shape the overall reduction of our carbon footprint in the most effective ways possible.

Fuel efficient vehicles75% of our carbon footprint came from fuel usage of our company vehicles, so it was clear that this was an important area to concentrate on. We commissioned an independent Green Fleet Review from the Energy Savings Trust in 2014. The results have been instrumental in reshaping our vehicle efficiency.

We procure only the most energy efficient vehicles for business and also adopted a ‘grey fleet’ policy. This allowed business drivers to receive a cash allowance instead of a company vehicle. This means that if a grey fleet vehicle exceeds its gCO2/km threshold the driver is penalised. Because of the growing efficiency of grey fleet vehicles, the threshold will eventually be reduced and by 2020 the carbon footprint between both grey fleet and company owned/leased vehicles will be equal.

Process improvementsOne in six of our customer service calls can be resolved without site visits. Thanks to improved Partner service systems and training, we have saved time and reduced fuel consumption because of remote working. We have also improved our scheduling system so engineers travel less distance to attend service call outs.

New Ways of Working (NWoW)We have drawn on capital investment to improve our property portfolio, specifically through the NWoW initiative. NWoW has created a more agile, efficient working environment by replacing fixed desks with full flexibility for employees.

Reducing the environmental impact of printRicoh is constantly exploring New Ways of Working, showing how a modern business can demonstrate its commitment to sustainability. Our flagship showroom at our Northampton Head Office shows clear solutions to changing how we work, making today’s organisations more efficient. The latest Ricoh hardware has replaced existing equipment, which has greatly improved efficiency. This efficiency includes in-built Eco Mode settings and Streamline NX software, which can convert documents into a paper saving electronic format.

Environment

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Zero waste to landfillGlobally, all Ricoh manufacturing facilities have achieved zero waste to landfill sites with our Energy From Waste initiative. We carefully select and work with our waste contractor, with clearly defined stages as all waste is diverted from landfill. We begin with on-site segregation, followed by secondary segregation, then process the fuel to finally make energy. The process provides electricity to homes and businesses.

Healthy environment. Healthy workforce. The green travel plan.Our goal is to reduce the need for employees to travel to work individually by car, promoting awareness and the benefits of alternative ways of travel. Our travel plan reflects the need to minimise our impact on the environment while still performing as a productive, efficient business.

The travel plan has two sides that overwhelmingly benefits us all. Environmentally, we reduce the transport we use, turning to car-sharing, public transport, walking and cycling. These ongoing social and health benefits mean an improved general wellbeing for Ricoh employees.

Reducing our Products’ environmental impact: The Comet CircleWhile it is important for Ricoh to concentrate on ways to reduce the environmental impact of our products and services, it’s important to look at how we deal with raw production materials and their eventual recycling.

In every industry, precious resources have to be used smartly and efficiently. To show this, we have the Ricoh Comet Circle, a journey of how raw materials enter our production cycle through to how they’re reused and recycled. It is clear that no product is produced without consideration for its ultimate environmental impact for both ourselves, Business Partners and end users.

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Concept of a Sustainable Society: The Comet Circle™

Sales Company

Product manufac-

turer

Parts manufac-

turer

Materials manufac-

turer

Materials supplier

Mainten- ance

company

Collection center

UserProduct recovery

center

Recycling center

Parts recovery

center

Shredder company

Materials recovery company

User of recycling materials

Thermal energy

collection company

Final disposal company

Resource recirculationThe Comet Circle™ was established in 1994 as a catalyst for change, showing how Ricoh reduces its overall waste throughout the lifecycle of its products. We believe that all product parts should be designed and made in a way that means they can be recycled and reused easily. Understanding this principle has led to the creation of the EcoLine series of products. EcoLine is one of Ricoh’s ‘resource smart’ offerings that blends innovative design with environmental concern.

EcoLine revolutionises manufactureEcoLine is a major part of the Ricoh Global 2050 Plan. EcoLine products are 100% remanufactured, which reduces the amount of raw materials used in their production. We put EcoLine products through the same quality control checks and durability standards as new Ricoh products, making sure they carry the same warranty status.

The GreenLine through EuropeIn Europe, including the UK, Ricoh’s GreenLine Centres take previously leased products and parts and subject them to rigorous testing. This intensive renewal process makes sure each and every item is stringently checked, often replacing components and updating software. When passed, the products are certified and branded under the GreenLine label to be sold. As with EcoLine, these items enter the market to the same exceptional standards of Ricoh’s range while meeting our sustainable targets.

Oil recovery company, smelting company

Environment

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The Resource Smart Return Programme

We are committed to making our own significant contribution towards the global effort for a circular economy. Our easy-to-use collection programme provides an efficient way for our Business Partners to recycle their toner cartridges and spare parts. All our Business Partners have to do is log on to our Ricoh Resource Smart Programme portal (www.ricoh-return.com) and choose if they want to return a single item or many other products as a bulk-box collection.

The benefit is that it’s a simple and convenient way for Business Partners to become involved, working with our aims of sustainability and reduction of our carbon footprint. All of these returned materials are either remanufactured or recycled in accordance with our ‘Zero-Waste-to-Landfill’ policy. We continually conduct feasibility studies in order to effectively measure the use of recovered products and how this benefits our long term sustainability goals.

The British Standard BS 8887.2 covers the necessary criteria for remanufactured goods. Ricoh is the only UK manufacturer in the Managed Document Solutions (MDS) business area that can build, market and remanufacture document imaging machines under that standard. Our Telford factory has met all the necessary conditions of BS 8887.2 since 2004, which has meant we’ve been able to develop and refine the remanufacturing process to produce high quality products in line with our environmental targets.

We believe that all product parts should be designed and made in a way that means they can be recycled and reused easily.

The Sustainability Optimisation Programme is a continuous improvement cycle made up of five stages:

Stage 1: Analyse a business’ existing document workflows and fleet to understand the baseline TCO and CO2 energy consumption.

Stage 2: Draw up plan to reduce TCO and CO2 emissions from paper and energy consumption, setting up clear objectives.

Stage 3: The plan is implemented, devices with Eco Mode energy-saving settings are installed and workflows are optimised.

End-users are educated to use the devices in the most sustainable way.

Stage 4: Continued tracking of actual carbon emissions against second stage goals. The data informs Ricoh how each printing device is being used and can implement further carbon reductions.

Stage 5: To neutralise the remaining, unavoidable, carbon emissions, businesses can offset these through carbon credits, which are generated by Kyoto’s Clean Development Mechanism.

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i-Invoicingi-invoicing (Intelligent invoicing) was developed by Ricoh as a Document Process Outsourcing (DPO) service. This service gives our Business Partners the opportunity to switch from traditional paper-based invoicing to a more modern, digitised system. If they are able to make a complete transition to electronic invoicing, the potential saving can be up to 90% to the business. Both large corporations and SMEs can reap this remarkable saving by using i-Invoicing.

i-Invoicing works by having the Business Partners outsource the receipt and raising of their invoices to Ricoh. We print, scan

and mail all paper invoices as well as sending them electronically. Because of our size, experience, resources and logistics expertise, we are able to process over 10 million of our clients’ invoices every year. Day by day the number of Business Partners using this service is growing.

Pro-Office paperWe work in association with UK Forestry Commission’s Woodland Carbon Code to produce what is termed as ‘Carbon Capture Paper’. It means the amount of CO2 generated throughout our Pro-Office Paper manufacturing process is quantified, and offset, against a carbon removal scheme.

Along with our paper suppliers, we achieve this offset by working with the Woodland Trust (the UK’s leading woodland conservation charity) and plant trees that grow over a 100 year period. During this growth, the forest absorbs CO2 emissions, cancelling out the carbon footprint generated by the manufacturing process.

The Ricoh Sustainable Optimisation Programme helps businesses to reduce their own environmental impact while creating their own agile document workflows. The results have been remarkable, offering a zero

carbon footprint when printing while reducing the Total Cost of Ownership (TCO).Research has shown that the largest share of environmental impact of printing is when machines are used by Business Partners.

In fact, this accounts for 62% of the product’s total lifecycle impact. Ricoh’s Sustainability Optimisation Programme focuses on products that are still in use, where manufacturers only have limited control on how they’re used.

Using customer case studies for an improved Sustainability Optimisation Programme

i-Invoicing and the Carbon Offset

Material, parts manufacturing

Production

Transportation

Marketing, sale

Paper, electicity maintenance

Recycling

Pre use

In use

Post use

maintenance

Environment

3636

Key Sustainability Indicators

Total kg CO2e

Electricity – CO2 emissions (kg CO2e)

Gas – CO2 emissions (kg CO2e)

Flights – CO2 emissions (kg CO2e)

Train – CO2 emissions (kg CO2e)

Fuel – CO2 emissions (kg CO2e)

Business Travel (avg monthly kg CO2 per company car driver)

Commuting Travel (avg miles commute per car driver)

Environmental Management Score from CR Index

Waste generated/disposed (tonnes)

Waste reused/recycled (tonnes)

Harmony with the Environment (relative to revenue)

Total kg CO2e/£m revenue

Target kg CO2e/£m revenue (2% year-on-year)

Electricity – (kg CO2e/£m revenue)

Gas – (kg CO2e/£m revenue)

Flights – (kg CO2e/£m revenue)

Train – (kg CO2e/£m revenue)

Fuel – (kg CO2e/£m revenue)

Y/E 31/03/15

FY2014

8,437,437

1,892,717

444,070

179,041

79,486

5,842,123

352.5

18.3

100%

493.1

493.1

FY2014

17,637

19,264

3,956

928

374

166

12,212

Harmony with the Environment (absolute)

36 Environment

37Environment

7.0%reduction in total

carbon emissionsFY14 vs FY13

6.0%reduction in

vehicle fuel usage

12.9%reduction in electricity

consumptionFY14 vs FY13

100%waste reuse/

recycling

24.9%reduction in

flights

10.0%improvement in

carbon/revenueefficiency

11.5%increase inrail usage

8.4%ahead of annual

target for carbon reduction

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Putting People FirstOur people policies and practices reflect the principles of the Ricoh brand ‘imagine. change.’ and its values, which we communicate internally as The Ricoh Way. It includes our focus upon customer centricity, innovation, teamwork, ethics, integrity and a winning spirit.

We embrace change and diversity, offering a challenging environment where employees can collaborate, be innovative and create value for customers. They can have a sense of achievement and grow through their work. Learning opportunities are only limited by people’s imaginations and Ricoh’s Academy has been consistently recognised by The Learning & Performance Institute. Ricoh is extremely proud to have achieved the ‘Investor in People’ Gold Standard.

‘The Ricoh Way’ sets out a group of fundamental principles that guides our employees, ensuring that all of our stakeholders receive the best possible service, while adding value to our overall proposition.

People

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Our strategy ‘The Ricoh Way’ sets out a group of fundamental principles that guides our employees, ensuring that all of our stakeholders receive the best possible service, while adding value to our overall proposition. It’s a global philosophy that works hand-in-hand with our brand strap-line ‘imagine.change.’ that promotes our values, customer-centric approach and commitment to the highest standards of ethics.

Providing outstanding value for our customers is the purpose of our work, but it’s our people that drive our ultimate success. We work as a global unit to achieve our goals and do all that we can to encourage our employees to realise their full potential. This includes implementing personal development plans that promote innovative thinking, sharing ideas and showing them how to demonstrate our ‘new ways of working’ proposition. We are always looking for new ways to ensure the recognition, engage-ment and wellbeing of our people.

Ricoh UK Employee Forum – a means for open discussionOne of the biggest challenges for any organisation is communication. Our ‘Employee Forum’ provides the mechanism for employee representatives and board directors to share ideas and plans for the future. This allows Ricoh UK to manage change positively and collaboratively. Through the Employee Forum, we can harmoniously work

together and ensure that all of our people are fully aware of our strategy and business goals.

We actively encourage an open dialogue and believe that every question is a good one and all feedback is valuable. In addition to this, to ensure that the forum delivers value to the Ricoh Group, employees are elected to join by their peers. They meet on a two-monthly basis with members of the Board of Directors and their respective feedback is then formulated into action plans where

necessary. These action plans are communicated back to employees using a range of communication channels including iEngage, our internal social platform, video podcasts and team debriefs.

Employee representatives from the Ricoh UK Employee Forum also sit on the Ricoh European Employee Forum (REF), along with representatives from each Ricoh Operating Company within the EMEA region. The Ricoh European Employee Forum meets annually with senior management to keep them updated with events.

People

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Employee Motivation and EngagementWe know that committed and engaged employees are essential for a more productive and efficient business. When employees feel more satisfied in their roles, this leads to lower attrition rates and reduced absences. In 2008 we conducted our first Employee Engagement survey throughout Europe. Its purpose was to provide us with a clear

understanding of the things that are important to our employees and our position following company integrations with different teams and departments.

This survey is repeated every two years, with 2014 seeing the advent of the first ever Ricoh Global Employee Survey (RGES). In addition, Ricoh UK conducts a quarterly Engagement Index (EI) survey which provides us with a snapshot of mood, allowing for immediate review, which is led

by department managers. The shorter timescales and format of the EI survey complements wider-reaching improvement activities, which meet the timescales of the global survey.

As a result of the findings of the European and Global surveys, our UK Board members sponsor improvement projects. These projects are led by Improvement Teams that have been established at a local management level. The benefits of this mean that all

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those involved are ‘on the same page’ and new activities can be introduced with a surety that they will achieve their objectives.

Our surveys focus on key drivers of engagement, including leadership, communications, teamwork and belonging, working conditions and personal development. It’s important that we gain a real sense of ‘what it’s like to work at Ricoh’. All questionnaires are completely confidential and all employees are encouraged to take part. Since FY2010 our Engagement Survey has run every two years.

From the 2014 Global Employee Survey, we were able to ascertain that 62% of Ricoh UK employees were rated as ‘Engaged’. This statistic was comprised of those employees that were ‘Actively Engaged’ or ‘Satisfied’. This achievement is in line with the UK norm data provided by Hay, our survey Partner.

Areas for improvementGathering this data has helped us to pinpoint areas that we need to focus on to improve Ricoh UK. To determine the areas for improvement we engage with our employee forum. Our employee forum representatives will seek feedback from employees on our strengths and areas for change based on the results of the survey.

This information is presented back to our Board of Directors in a roundtable discussion forum. This allows for the senior management team to truly understand key areas to focus on for the business. From this feedback we put together our Company action plan.

Ricoh UK’s Future Talent Development Programme

Schools and Colleges

Prince’s Trust

Job Centres

Universities

Working Chance

Employment & Disability Service

Engage Develop Transform

Apprenticeships

Graduate Schemes

Work Experience

Prince’s Trust Placements

Internships

Gap Year Placements

Sustainable workforce

Fresh thinking

Reduce youth unemployment

Reduction in recruitment costs

Increase in staff retention

People

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The world of work today is very different to how

we operated 10 years ago. To succeed in a digital world

we must ensure we have the correct skills within

the business.

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In 2013, we formalised our future talent development programme (FTDP) with specific objectives. This enabled us to effectively address a number of business challenges.

• We continue to address a skills gap with new talent: The world of work today is very different to how we operated 10 years ago. To succeed in a digital world we must ensure we have the correct skills within the business. The FTDP was developed to bring in new people with new ideas who live and breathe technology

• We are diversifying our workforce: In order to understand the changing needs of our Business Partners an end users, we need to have a diverse workforce capable of adapting and understanding their various needs. The FTDP helps to deliver this goal by establishing talent in the workforce

• Corporate and Social Responsibility: Ricoh has a social responsibility to help reduce youth unemployment. We have aligned our community investment to finding and nurturing future talent through leadership activities. We are supporting individuals, encouraging them back into employment as well as creating a potential future talent pool for Ricoh.

Reducing Re-Offending Through EmploymentRicoh has also signed up to the Business in the Community ‘Reducing Re-Offending Through Employment’ programme and we have seen a lot of people benefit from our employment skills workshops. We are also taking ex-offenders into the business via licence release, giving employment opportunities to individuals once released from prison. Ricoh has actively worked to help reduce the £65 million reoffending costs the taxpayer each year.

People

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As a learning strategy we have created the Ricoh Academy, which is recognised by the Learning and Performance Institute (LPI) as amongst the best in our industry sector. Through the Academy, our employees, Business Partners and distributors are provided with training, guidance and learning opportunities. This ensures they have the knowledge and skills required to perform at their very best and achieve their potential, thereby meeting our customer needs, whether these are internal or external stakeholders.

Learning is delivered via a combination of on-line eLearning, Webex, self-learning and classroom based training. Ricoh and other technologies are used where appropriate, minimising the environmental impact of training-related travel. The development of our current learning strategy has particular alignment to Ricoh’s business objective of a ‘services led’ proposition, which relates directly to Ricoh’s 18th Mid Term Plan.

Learning is essential to support the transformation of knowledge, skills, attitudes and behaviours needed to achieve this shift in proposition. Throughout the four tiers of our Leadership Programme, we are very proud to work in partnership with the Prince’s Trust. This partnership offers structured community investment activities as a mandatory element of every programme.

Learning is essential to support the transformation of

knowledge, skills, attitudes and behaviours needed to

achieve this shift in proposition.

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During FY2014 we took steps to incorporate blended learning in our strategy. We provided slightly fewer traditional classroom courses and many more on-demand electronic learning courses. This gives employees additional flexibility of where and when they do their learning, it reduces travel time and cost, and largely avoids the usual scheduling conflicts when trying to find mutually agreeable calendar dates for all delegates. During FY2014, employees completed 63,601 eLearning courses. This was more than double that for FY2013 with 30,308 eLearning courses.

Our focus on Leadership Development has led us to implement a complete tiered approach to all levels of management training – ranging from prior to first line manager role, through to Board succession.

As well as being LPI accredited, Ricoh is certified to Gold level as an Investor in People and works in close partnership with apprenticeship partners to support our pan-business apprenticeship model to support our talent pipeline.

As part of our drive to help our employees be the best at what they do, we sponsor many of them to accomplish external industry-recognised accreditations. These include AAT, APMP, CIMA, CIPD and the Prince2 project management qualification, to name a few. These accreditations help us to achieve various high-tier Gold Partner status with suppliers such as HP and Microsoft, which apply directly to our ITS division.

Employee wellbeingWe actively develop initiatives that support the wellbeing of our employees. In 2010 we launched our successful Wellbeing Programme with targeted initiatives to support our employees to be healthier and happier all year round.

Some of the wellbeing service and initiatives offered under the Ricoh Take Care programme include:

• Get active challenges

• Flu Vaccinations

Examples of areas of learning include:• Induction

• Dignity at work

• Leadership

• ISMS

• Managed Document Service (MDS)

• Environment and sustainability

• Health and safety

• Sales skills

• Product knowledge

• Interpersonal skills

• Technology and software

• Apprenticeship programmes

For improved employee engagement, we offer:

• Professional qualifications and experience to develop in their current role

• Development of new business techniques, knowledge and skills in their specialist field and the ability to anticipate trends in the broader environment

• Appropriate training and developmental assignments to fulfil their potential

People

46

• Employee Assistance Programme, including face to face counselling sessions

• Company funded and voluntary wellbeing benefits including: Private Medical Insurance, Health Cash Plan, Cycle to Work scheme, discounted gym membership

As a result of our extensive Wellbeing initiatives, Ricoh UK have been awarded the Healthy Workplace Award by SimplyHealth. In November 2014 we won the Northamptonshire Sports Active Workplace Award.

We’ve installed Wellpoint Kiosk machines at key office locations so our employees can manage their own health simply and effectively. It’s a useful innovation that enables our employees to regularly check their weight, blood pressure, hydration levels and body fat percentage.

What’s particularly ingenious is the machine’s ability to help an individual seek professional help, if the need arises. It does this by asking the user a series of questions based upon their lifestyle choices. They include questions about smoking, drinking and exercise. With the consent of the user, Ricoh can then use the results on a grouped and anonymous basis, to see which wellbeing initiative would be

best for them in order to address these issues. There is no pressure on any individual to do this as Ricoh is always sensitive to the needs of the employee.

Ricoh likes to instill a sense of fun into our wellbeing initiatives and from 2011-2013 ran an annual Pedometer Challenge. All employees were invited to take part in a walking challenge and asked to make a small donation to the British Heart Foundation.

In line with our ethos of promoting team-spirit, employees worked collectively and collated details of the amount of ‘steps’ they made between them. Related activities included organised walks, led by the CEO, and awards for the teams with the highest step count over the five week period.

In 2014 we launched our activity challenge, which got employees to work in teams of five to log the number of minutes of activity they complete within a day. The challenge encouraged employees to do at least 30 minutes of activity per day. As part of the challenge, all those taking part had access to an online lifestyle coach and personal trainer, which provided employees with advice and support on wellbeing matters.

The Employee Assistance Programme and Wellbeing Survey Ricoh funds the operation of an Employee Assistance Programme which runs in conjunction with our healthcare providers BUPA. The free and confidential advice helpline provides guidance on all life challenges, both personal and professional. This can help employees with anything from coping with bereavement to moving house, from dealing with becoming a new parent to resolving financial difficulties. The service is completely confidential, with no information other than the rate of uptake notified to Ricoh. Anecdotal feedback from employees tells us that the EAP is an extremely useful resource, helping make Ricoh an Employer of Choice.

In March 2014 we undertook an employee ‘Voice of the Customer’ survey to gain employee feedback on our health and wellbeing programme. The results showed that 66% of our employees were satisfied with the wellbeing services provided. During 2014, 1.9% of working days were lost due to employee absence. Whilst our overall absence levels are low, one of our main reasons for absence is due to stress, anxiety and depression and we are currently developing a Resilience programme to address this.

47

Health & SafetyRicoh has a responsibility to protect the health, safety and welfare of its employees, contractors and its stakeholders. Therefore, Ricoh UK’s Board has direct oversight and responsibility for health and safety performance.

This performance is measured using a H&S Management Dashboard that is regularly reviewed with results from internal and external audits. Ricoh acknowledges the benefits of such audits as providing the business with an opportunity for ‘fresh eyes’ to reflect and review how we manage Health & Safety. It also provides an opportunity to explore and consider opportunities for improvement. This includes possible improvements that are linked to any observations identified by assessors during these audits.

Ricoh has held the certification to BS EN OHSAS 18001:2007 for its Occupational Health and Safety Management System since November 2010, which is audited every six months by the British Standards Institute (BSI). In addition, Ricoh UK Ltd are SAFE Contractor approved and CHAS Contractors Health & Safety Scheme accredited.

In 2012, and again in 2014, Ricoh UK reviewed its internal reporting process for accidents, incidents and near misses, also known as ‘AINM’. As expected, this prompted an increase in our AINMs results due to the increased awareness and improved reporting process. Because we have begun to report these incidents periodically, we have recorded small increases in AINMs.

Our key focus areas for 2014 into 2015 included the integration of our management systems for H&S, Environment and Quality.

Gender pay gapRicoh UK pays all employees at, or above, Living Wage. We are proud to be an accredited ‘Living Wage’ employer. While addressing this pay level, we have also evaluated our gender-related pay gap, assessing base salary to compare median hourly rate for male and female employees.

We use the following calculation:

Men’s median hourly pay – Women’s median hourly pay (divided by Men’s median hourly pay) x 100. Using this calculation, our current gender-related pay gap is 14.95%.

Ricoh UK went through a number of large integrations over a five year period, resulting in areas of significant disparity between employees in relation to pay and benefits in general. To address this, in 2012, we implemented a brand new benefits package across all employees as a first step to address differences in the total remuneration packages. Whilst our gender pay gap remains below UK national average, this continues to be a major focus for the Board as part of both our remuneration and our diversity initiatives where, amongst other activities, we are working to address some of the social factors which impact gender diversity across specific roles in Ricoh UK.

People

48

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Flexible benefitsAs part of our reward strategy, which is aligned to our 2012 wellbeing strategy, Ricoh UK launched a new (flexible) benefits programme for all Ricoh UK employees. This is designed to meet our employees’ needs and lifestyles. We provide an on-line portal which enables our employees to view their total

reward package. This includes pay and benefits along with pension management. Employees can also buy additional holiday and participate in any benefits and discounts sourced by our benefits provider. Since the launch of the new benefits programme, we have conducted annual surveys and gathered feedback from focus groups to further enhance our benefits’ offering.

We have built a strong portfolio of employee benefits, which includes:• Pension plan

• Income protection

• Life assurance

• Critical illness insurance

• Medical insurance

• Dental insurance

• Health assessments

• Healthcare cash plan

• Discounted gym membership

• Employee assistance programme

• Company vehicle /cash allowance

• Childcare vouchers

• Technology scheme

• Dining scheme

• Cycle-to-Work scheme

• Travel Insurance

• Lifestyle employee discounts

• Charitable giving

We strive to give our employees the best possible benefits while helping to achieve our people-related strategic objective: ‘to be an employer of choice’. Through these benefits we’re actively working to attract and retain talented employees.

We strive to give our employees the best possible benefits while helping to achieve our HR Strategic objective: ‘To be an employer of choice’.

People

50

“Our working environment will be a showcase we can all be proud of, using our

solutions to promote both remote and local communication and collaboration with

customers, Partners and colleagues.”

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New Ways of Working

“I have been telling you about the importance of change, as in changing the company, changing the way you work, and changing your standpoint; and these require imagination. If you acquire the ability to imagine, you will be able to change things. Due to the rapid spread of mobile devices connecting to a network, the boundary between office and consumer markets has been blurred beyond recognition.” Shiro Kondo, CEO Ricoh Japan

In 2013 we launched a major initiative called ‘New Ways of Working’. New Ways of Working (NWoW) is designed to transform the way we work and allowing us to better support our current and future business while demonstrating our brand message of ‘imagine.change.’

“Our working environment will be a showcase we can all be proud of, using our solutions to promote both remote and local communication and collaboration with customers, partners and colleagues. Formal and informal areas for concentration and contemplation will be supported through investments in technology and people management, giving us the freedom to work more efficiently and more effectively. The changes are aimed at making us a more agile company, enabling us to respond more readily to an ever changing marketplace so we can better advise our customers and partners.” Phil Keoghan, CEO Ricoh UK.

Ricoh is changingWe are adapting to our stakeholders’ needs and continue to make the transformation to an agile and services-led organisation. New Ways of Working will challenge our working practices, our work space, and the tools and processes we use. Fixed desk and fixed working patterns of 9-5.30pm are being replaced with the introduction of a flexible working environment. Over the next couple of years, across our business, our national property infrastructure will be refreshed. We’ll use our space, solutions, innovation and technology to create exciting work spaces as a showcase for our colleagues, Partners and end users.

We have already implemented NWoW in our Northampton HQ, our new London city offices at Broadgate Tower and new

premises in Staines. Region by region our employees are experiencing the changes in how they work, which offers more flexibility. To support NWoW we have a number of lean six sigma improvement projects focussed on the reduction of paper usage within our offices.

Ricoh stakeholders are discovering the benefits of New Ways of Working, that reinforces our ‘imagine. change.’ brand culture. We are continuing to improve employee work/life balance and a flexible, more creative working environment. NWoW will also be a showcase for our leading edge products and software, reduce our carbon footprint and keep costs down.

People

52

FY2014

90%

62%

36.5%

100%

87%

2.2

50,557

93%

92%

55%

1.0%

0.60

6

5.5

2,547

11.9

25.29%

25.93%

8.70%

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Key Sustainability Indicators

Employee Engagement Employee Engagement Survey Response Rate

Employee Engagement Rate (GES FY14 onwards)

Employees Actively Engaged

Workplace Management Score from CR Index

Employee Development

Staff Receiving Appraissal

Average Training Days per FTE

E-learning modules completed

Learning Performance Institute (LPI) Scores

Employees are Clear on Personal Objectives (EES question)

Discuss Performance Regularly (EES question)

Accidents and Absence

Accident Incidence Rate (AIR) per 1,000 Employees

Accident Frequency Rate (AFR) per 100,000 hours worked

Reportable Incidents (RIDDOR)

Average employee sickness absence rates per FTE (days)

People Profile

Average Headcount

Average Employees Service (years)

% Female Workforce

% Females at Management Level

% Employee Turnover – Voluntary Attrition

Y/E 31/03/15

Respect for People

52 People

53People

87%of staff have a formalised

annual appraisal – and is a 19% improvement

from FY13

42%reduction in

Accident IncidenceRate (AIR)

7.9%increase in females at Management Level

15%reduction in

‘classroom’ training

42%reduction in

Accident FrequencyRate (AFR)

8.7%Voluntary Attrition is consistently within our target range of >5% and <10%

67%increase in

online learning

14%reduction in

RIDDOR reportableincidents

93%LPI score,

continued long-term improvement

11.9years average

service length

April

54

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“Our employees value the opportunity to help contribute through donating their skills and time, and Ricoh is keen to support this whenever and wherever we are able.”

“Ricoh supports the local communities within which we operate and where our employees live. This is core to ensuring the growth of our brand profile as a local employer of choice, making a genuine positive impact to local communities as well as driving employee engagement and advocacy.

Our employees value the opportunity to help contribute through donating their skills and time, and Ricoh is keen to support this whenever and wherever we are able.”

Community

James DeaconHead of Corporate Responsibility

Community

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Kiyoshi Ichimura formalised Ricoh’s Founding Principles in 1946. These values continue to shape the ethos of Ricoh, encouraging us to constantly improve and contribute to the wellbeing of all stakeholders, including our families, customers and society in general. These principles are in The Spirit of Three Loves.

The Spirit of Three Loves has ensured that community investment is in the very foundation of Ricoh’s culture. At a global level, this has inspired a Corporate Responsibility strategy that is focussed on three key areas:

• Environment & Conservation

• Local Communities

• Raising the Next Generation

In addition to these three Ricoh global themes, we have introduced an additional area of focus, which is dedicated to ‘Employability’. This fits within both the ‘Local Communities’ and ‘Raising the Next Generation’ themes, providing support to young people to help them in securing permanent full-time employment either within Ricoh or the wider employment market.

Kiyoshi IchimuraFounder of Ricoh

The Spirit of Three Loves

“Love your neighbour” “Love your country”

“Love your work”

Our Strategy – Founding Principles

57

Community InvestmentWe provide financial and organisational support to a range of community projects, along with the skills and active involvement of Ricoh employees, making a difference to the communities we help. All employees are given an additional two days of paid leave specifically for volunteering during working hours. They are also encouraged to contribute through charitable fund-raising or volunteering, either individually or as part of groups or teams.

All company-supported Community Investment is aligned with one or more of Ricoh’s three core themes of Corporate Responsibility strategy, as outlined earlier.

Strategic Partnerships for stronger communitiesOur focus on Corporate Responsibility has led us to building rewarding relationships with organisations that excel in helping communities. We’re proud of our ongoing projects with each of our Partners and customers, who help to realise our shared goals in improving and investing in people’s lives.

Business In The Community (BITC)We have been an active member of BITC for more than 15 years. BITC provides strategic guidance and advice on how businesses can make a positive, relevant and effective impact to all stakeholders. BITC’s primary focus is on aspects relating to our marketplace, our employees, the environment and to society at large. Additionally, through annual participation in the BITC Corporate Responsibility Index since 2010, we have made year-on-year improvements to our Corporate Responsibility strategy and delivery. This has resulted in us achieving a 97% score and 4-star rating in the 2015 Corporate Responsibility Index, while being recognised as one of the top-performing Corporate Responsibility organisations within the UK. We are currently aiming to achieve 99% score and 5-star rating within the next two years for the the 2017 Corporate Responsibility Index.

Community

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The Prince’s TrustWe are now entering the third year of a strategic partnership with The Prince’s Trust as one of our core charities. The Prince’s Trust works with young people, targeting those who are at risk of disengaging with education or employment, helping them to achieve their full potential by providing advice, support and coaching. This aligns strongly with two of Ricoh’s core Corporate Responsibility strategic themes, namely Raising The Next Generation and Local Communities. In recognition of our contributions, The Prince’s Trust have awarded us Silver Patron status.

Our involvement with The Prince’s Trust is through a combination of:

• Building young people’s employee leadership skills on the Prince’s Trust Team programme

• Employee fund-raising events to support The Prince’s Trust

• A comprehensive Managed Print Service, provided to The Prince’s Trust, by means of a ‘Services In Kind’ arrangement

Our relationship with The Prince’s Trust is built upon the integration of our Leader Development programme and our employee volunteering strategy. Ricoh

management takes part in skills-based volunteering, giving young people on The Prince’s Trust Team Programme practical skills for employment such as interview techniques, drafting effective CVs and work placement experience.

This programme works both ways, as it helps Ricoh managers develop their own coaching and mentoring skills, as well as refining their project management abilities. These developed skills are then driven back into the business to benefit their own teams. As Team delegates improve their skill sets for employment or further education this is a true ‘win win’ relationship.

The Prince’s Trust & Ricoh Leadership Framework: Win: win outcomes, leverage

Board

Aspire Senior

Management

Inspire Middle Management

Enable First Line Managers

& New Starter Managers

Explore Prior to first management specialist role

The Prince’s Trust

Mentoring ‘Explore’ teams for Z2H and Millionmak£rs

CV & Interviews Workshops for PT TEAM programme

Work Placement Workshops for PT TEAM programme

Zero to Hero & Million Mak£rs

• Engagement and Motivation

• Adding Value

• Skills based volunteering

58 Community

59

BBC Children In NeedWorking with BBC Children in Need provides us with opportunities both for fund-raising and skill-delivery, enabling a broad range of ways in which our employees can contribute. BBC Children In Need allocates charitable funding to a range of carefully selected children’s charities with national or local impact. This aligns strongly with two of Ricoh’s core strategic Corporate Responsibility themes, namely Raising The Next Generation and Local Communities.

Ricoh, with the help and support of our employees, has directly fundraised for BBC Children in Need for more than 10 years. Since 2011 we have used our National Contact Centre to help process telephone donations from the general public on the appeal night each November.

Premier Paper and the Woodland TrustWe sell a range of paper types that are branded as Ricoh Pro-Office, supplied via Premier Paper. The papers are all FSC and PEFC certified, which guarantees the sources are from sustainable stock. In addition, many of our Ricoh Pro-Office papers come with an added feature, Carbon Capture, at no additional cost to the customer.

Carbon Capture means that Ricoh and Premier Paper donates 2p per ream of Pro-Office paper to the Woodland Trust. This ensures the planting of new native woodland within the UK. This more than offsets the original carbon impact associated with the manufacture and logistics of the Ricoh Pro-Office paper. The growth of this new UK woodland captures carbon, storing it in the structure of the vegetation. It also provides additional habitats for diverse ranges of species of fauna and flora, and is fully aligned to Ricoh core Corporate Responsibility strategic theme of Environment & Conservation.

DeliveryHow we deliver our Community Strategy is very important to demonstrate our commitment. Employee involvement with the charity is a key element of the relationships with charities and our employees continue to actively support them with both time and donations.

For the Prince’s Trust, our FY14 fundraising initiatives included the following events:

• Palace to Palace sponsored cycle ride, 42 Ricoh riders raised £13.2k

• Zero To Hero, a one-day team fund-raiser. 18 Ricoh employees raised £8k

• London Marathon – £2.3k raised by two Ricoh employee participants

• Total raised: £23,500

FY14 donations of employees’ skills and time to support The Prince’s Trust:

• 409 hours of working time

• 105 Ricoh employee volunteers

• 17 employability workshops delivered to Prince’s Trust young people by Ricoh employees

• More than 200 Prince’s Trust Young People that Ricoh has helped support with employability programmes

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BBC Children In Need is one of the UK’s largest fundraising events, with the aim of helping children feel safe and achieve their potential.

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Prince’s Trust Team ProgrammeThis is a 12 week course designed to help young people who are not in education, employment or training (NEET) to develop new skills with the ultimate aim of supporting them into further education or full time employment. ‘Team’ runs three programmes per year, and operates these nationally.

During the programme, we deliver two one-day workshops to young people. The first workshop covers how to source and secure a fortnight’s work placement with a local employer. The second explains how to draft an effective CV and develop interview skills. Both types of workshop are facilitated by Ricoh employees, usually as part of their Leadership Development programme.

We have worked mainly with the Northampton North Team during FY14 due to its proximity to our National HQ. For 2015 onwards we are actively seeking to work with more Team programmes that are local to our other core sites across the UK.

To help and support these young people in the Team programme, we offer two-week work placement opportunities in various departments within our Northampton HQ. From there, we have a broad range of potentially suitable entry-level roles. This gives invaluable experience that compliments the skills learned while taking part in the skills workshops.

In addition to employee volunteering opportunities, we also provide financial support in the form of various fund raising events. Ricoh has supported events such as the BUPA Great North Run and Royal Parks Half Marathon. At the beginning of October 2014, a team of 42 Ricoh cyclists took part in the Palace to Palace cycle challenge, riding from Buckingham Palace to Windsor Castle.

BBC Children In NeedBBC Children In Need is one of the UK’s largest fundraising events, with the aim of helping children feel safe and achieve their potential. The scope of fundraising for BBC Children In Need is broad, which allowed us to raise money in a variety of ways. In July 2014 we started our fund-raising totaliser for that year’s BBC Children In Need appeal, which we would add to over the course of the following months up until November 18th, the actual night of the BBC Children In Need evening.

For our first fundraising activity in July, we held a sponsored cycle ride across Hadrian’s Cycleway. Over four days, 15 cyclists, comprised of Ricoh employees and Business Partners, set off from the ancient Roman ruins of Glannaventa bath house in Ravenglass. Our fundraisers rode 174 miles Eastbound to South Shields, where they arrived at the finish line of the reconstructed Arbeia Roman fort. Support logistics, comprising transport of riders and bikes to the start-line and back home from the finish-line, as well as mechanical support throughout the entire event, were kindly provided free of charge by our logistics partner, Ceva. Collectively we raised more than £5,000 from this cycling event, and helped raise the profile for the ‘main event’ of BBC Children In Need day in November.

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Our employees processed over 2,700 calls amounting

to over £ 97,000 in donations from the

general public.

Throughout the day of Friday 14th November 2014, Children In Need day, we promoted various fund-raising activities such as sale of home-baked cakes and a raffle. The collective money raised, which included £5000 from the Hadrian’s Cycleway sponsored bike ride in July 2014, raised a total of £24,000 from Ricoh. Along with raising money, more than 100 employees at our contact centre volunteered to

take incoming calls of donations from 6.30 pm through to 2.00 am the following morning. During this time our employees processed over 2,700 calls amounting to over £97,000 in donations from the general public. We look forward to exceeding this performance in 2015 when we will once again be supporting BBC Children In Need via our National Contact Centre.

In preparation for the 2015 BBC Children In Need event on Friday 13th November 2015 we organised a sponsored cycle ride for employees, cycling 176 miles down the east coast of Ireland from Belfast to Dublin. This event alone has raised more than £10,000. Additionally, we organised a 5-a-side football tournament in August 2015 with teams of employees paying to enter, adding significantly to the total funds already raised for 2015.

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Tree plantingIn November 2014, Ricoh volunteers took part in a tree planting event organised by our paper supplier, Premier Paper, in conjunction with the Woodland Trust. Ricoh volunteers, along with numerous representatives from Premier Paper’s customer-base helped plant more than 2,000 saplings at Heartwood Forest near St Albans, Hertfordshire. Heartwood Forest is a new area of woodland, from plans set out in 2008 by the Woodland Trust to create the largest new forest of native tree species, and will take approximately 12 years to complete the planting. Once complete, the site will cover approximately 350 hectares.

Some of the trees planted were from financial contributions made by Ricoh and Premier Paper as part of the Carbon Capture initiative to neutralise the carbon impact of Ricoh Pro-Office paper. In FY2014 Ricoh contributions paid for the planting of 16,700m2 of new woodland via Premier Paper with the Woodland Trust at various sites across UK, this equating to approximately 2,700 new trees being planted.

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Other employee- led Community InvestmentBesides the various volunteering events that are centrally organised within Ricoh, we also encourage our employees to identify and source their own localised volunteering, either individually or in teams. We provide support and guidance to ensure that the volunteering is safe, relevant and aligned to our overall Corporate Responsibility strategic key themes.

At the end of 2014 the total amount of money raised for charities by employee-led activities was over £65,000.

Here are some of the activities that helped to achieve this:

• A team of 12 Ricoh runners took part in the 2014 London Marathon and collectively raised £16,700 for 11 different charities, including MIND, St John’s Ambulance, Snowdrop and The Stroke Association

• A member of our Professional Services team cycled the length of Hadrian’s Wall in just 2 days and raised over £1,400 for Age Concern

• Members of our Supplies team took part in a Stand Up To Cancer charity day and raised £450 for Cancer Research

Feedback from our various volunteering events shows that employees value the opportunity to take part and make a positive difference to society. Additionally, our post-event volunteering surveys and our quarterly Employee Engagement Index surveys show that employees who are participating in volunteering and fund-raising events are typically around 20 – 25% more ‘Actively Engaged’, rather than merely ‘Satisfied’ with Ricoh. In turn, this drives greater employee advocacy (promoting our brand locally and informally) as well as expected increases in productivity, length of service and employee wellbeing, and consequent reductions in sickness absence, staff turnover and recruitment costs.

Overall, Community Investment is one of our most powerful areas of leverage within the business, making positive contribution to society at large, promoting our brand to all stakeholders and improving employee engagement and wellbeing.

We intend to continue increasing the scale of Community Investment year-on-year, and will be promoting and supporting additional volunteering and fund-raising initiatives both nationally and locally during 2015.

ReportingTo capture and record all Community Investment activity across the business, we use an internal system that is accessible by all employees. The system is hosted on our intranet and provides real time information and reporting.

External reporting is also completed and we use BITC’s Corporate Responsibility (CR) Index and the London Benchmarking Group (LBG). In addition to getting our results externally validated and verified, we are also able to benchmark ourselves against other organisations who take part in these external reporting indices.

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Key Sustainability Indicators

Annual BITC CR Index Score

Number of Employees involved in Community Volunteering

% of headcount involved in Community Volunteering

Gifts In Kind Donations

Total Charity Event Donations

Total Funds Raised By Employees

Cost of Volunteering

Corporate Donations

Fund Matching

Volunteering Event Costs

Leverage

Total Charitable Donations

Community Management Score from CR Index

CSR Taken Seriously (Employee Engagement Survey Question)

FY2014

97%

382

14.9%

£84,899

£11,692

£53,614

£21,442

£43,979

£0

£9,285

£158,995

£383,906

97%

81%

Harmony with Society

Community

Y/E 31/03/15

97%score in BITC CR Index;

year-on-year increase. Ricoh in Top 12 companies

in the BITC CR Index

33%increase in

funds donated by Ricoh

6%increase in

employees volunteering

90%increase in leverage

(contribution from sources other than Ricoh)

41%increase in donations of goods/services

in kind

31%increase in total

charitable contributions

135%increase in

funds raised by employees

£ £

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About RicohRicoh is a global technology company specialising in office imaging equipment, production print solutions, document management systems and IT services. Headquartered in Tokyo, Ricoh Group operates in more than 200 countries and regions. In the financial year ending March 2012, Ricoh Group had worldwide sales of 1,903 billion yen (approx. 23 billion USD).

The majority of the company’s revenue comes from products, solutions and services that improve the interaction between people and information. Ricoh also produces awardwinning digital cameras and specialised industrial products. It is known for the quality of its technology, the exceptional standard of its customer service and sustainability initiatives.

Under its corporate tagline, imagine. change. Ricoh helps companies transform the way they work and harness the collective imagination of their employees.

For further information, please visit www.ricoh.co.uk

2015 Ricoh UK Ltd. All rights reserved. Replication of part or all of this document requires the express written permission of Ricoh UK Ltd ricoh.co.uk