Global

Materiality for the Ricoh Group

Ricoh Group’s Management Strategies and Materiality Identification
Materiality Identification
Risks, Opportunities, and Impacts Related to material Issues
<The Mid-Term Strategy ’26> Materiality and ESG targets
<The 21st Mid-Term Management Strategy> Materiality, ESG targets, and performance
Materiality Analysis
Executive Compensation Linkage
Approach to Materiality (Material issues)

Ricoh Group’s Management Strategies and Materiality Identification

Ricoh has identified material issues under the “Mid-Term Management Strategy,” aiming for a sustainable society envisioned as the “Three Ps Balance.” We have set ESG targets (future financial targets) as an indicator for evaluating these targets. Materiality and ESG targets are identified with a comprehensive view of the entire value chain, through the broad extraction of environmental, social, and governance-related issues. Following assessments of risks, opportunities, and impacts, and discussion with management, stakeholders, and relevant functions, these issues are deliberated by the ESG Committee and formally approved by the Board of Directors.

Six Material Issues

Risks, opportunities, and impacts related material issues

We have identified and evaluated the risks, opportunities, and impacts related to our material issues. The risks, opportunities, and impacts we recognized, as well as the key initiatives to address them, are shown in the table below . For further details on the identification and evaluation process, please refer to “Materiality Analysis.”

Related social issues：Boosting productivity/Unleashing creativity/ Digital inclusion
Category	Description	Key initiatives
Risk	Possibility that declines in printing volumes cannot be sufficiently offset by growth businesses due to insufficient value creation that meets the needs of digitalization	Provision of products and services tailored to regional characteristics that contribute to customers’ "boosting productivity, unleashing creativity and digital inclusion" <Examples of relevant products and services> IT Services Workplace Experience Process Automation Managed Services Office Printing Commercial & Industrial Printing
Opportunity	Demand for productivity improvement driven by overwork and labor shortages Demand for high-quality communication to support location-independent work styles and adapt to environmental changes Demand for AI utilization aimed at improving productivity and enhancing creativity Demand for bridging the digital divide arising from differences across regions, organizations, and individuals
Positive impact	Contribution to alleviating labor shortages, fostering creativity, and enhancing job satisfaction through improved operational efficiency Contribution to bridging the digital divide through the broad provision of products and services that take accessibility into consideration

Related social issues：Accelerating innovation
Category	Description	Key initiatives
Risk	Downside risk to the effectiveness of R&D investments due to changes in customer needs and technological trends	Enhancing the likelihood of acquiring core technologies by incorporating external technologies through co-creation activities with external partners <Examples of collaboration with external organizations> Joint research with AIST (National Institute of Advanced Industrial Science and Technology) on the creation of knowledge-intensive digital services NEDO^*-adopted project on perovskite solar cells (joint development and demonstration project with two other companies) Joint research on next-generation digital printing technologies with Institute of Science Tokyo and RWTH Aachen University (Germany)
Opportunity	Realization of technology and product development that addresses increasingly diverse customer needs through accelerated technological development and expansion of domains via external collaboration
Positive impact	Contribution to transforming customer “workstyles” through the development of technologies that address increasingly diverse needs

^* NEDO (New Energy and Industrial Technology Development Organization): A national agency that supports technology development to address energy and global environmental problems and to enhance Japan’s industrial technology through commissioned projects and subsidies.

Related social issues：Information security and customer privacy
Category	Description	Key initiatives
Risk	Inconsistencies in policies and measures, and delays in responses across organizations and business units, due to insufficient security governance Broad impact on business activities in the event of a cyberattack, including suspension or malfunction of operational systems and data tampering, leakage, or destruction Occurrence of security incidents at customers and decline in reliability due to insufficient security measures in products and services	Enhancement of management-level maturity based on guidelines developed with reference to international cybersecurity standards and frameworks Strengthening of security measures and monitoring systems, along with the development and implementation of training for Business Continuity Plans (BCP) and IT system recovery plans Reinforcement of quality management related to product security Implementation and disclosure of security initiatives, including security education and activities aligned with societal trends Provision of security solutions based on the SCS evaluation framework (Japan)^*
Opportunity	Enhancement of market trust and brand value through disclosure of security policies and response status aligned with societal trends Expansion of opportunities to provide products and services that contribute to strengthening security, in line with growing customer demand for information security measures
Negative impact	Customer disadvantages caused by personal information leaks resulting from cyberattacks, as well as disruptions in the provision of products and services

^* SCS Evaluation Framework: A mechanism that visualizes and evaluates cybersecurity measures across the entire supply chain, including business partners, based on objective criteria. It also requires compliance from small and medium-sized enterprises

Related social issues：Ethical technology development and utilization
Category	Description	Key initiatives
Risk	Decline in social trust and loss of business opportunities due to inadequate consideration of technology ethics in the development of technologies, products, and services Occurrence of information leakage, operations and decision-making based on misinformation, and use that deviates from AI ethical standards due to insufficient governance over data, AI, and IT	Establishment of a framework for technology assessment for products and services Enhancement of employees’ ethical judgment through continuous education Establishment of a governance framework and operational processes for generative AI
Opportunity	Enhancement of brand value and acquisition of customer trust through pioneering initiatives, against the backdrop of increasing interest in ethical issues associated with the use of new technologies such as AI
Negative impact	Violation of individual users’ human rights and the exacerbation of Related social issues in cases where emerging technologies, including AI, are not used appropriately

Related social issues：Respect for human rights
Category	Description	Key initiatives
Risk	Decline in employee motivation, turnover, litigation, and reputational damage due to inadequate consideration for employees’ human rights Fines, exclusion from supplier selection by business partners, and reputational damage due to inadequate consideration for human rights in the supply chain	Conducting and improving human rights SAQ (self-assessment questionnaire) evaluations based on human rights guidelines Operation and improvement of grievance mechanisms Strengthening and promoting improvement activities for high-risk suppliers Expanding supplier human rights due diligence to indirect materials, resale, and global operations
Opportunity	Acquisition of business opportunities through proactive responses to increasing requirements for supply chain human rights practices in business negotiations
Negative impact	Occurrence of poor working conditions and human rights violations due to inferior labor management practices by suppliers and inadequate management of suppliers by Ricoh
Positive impact	Contribution to respecting human rights including those of supplier employees

Related social issues：Ensuring business ethics and compliance
Category	Description	Key initiatives
Risk	Reputational damage due to the occurrence of compliance issues and inadequate responses	Education to ensure compliance (including fostering an organizational culture that ensures psychological safety, as well as addressing human rights and harassment issues), and awareness-raising for consultation and reporting mechanisms Establishment of consultation channels for compliance violations
Opportunity	Enhancement of corporate reputation and acquisition of stakeholder trust through thorough compliance
Negative impact	Increased compliance costs due to strengthening of regulations across the industry resulting from violations of compliance

Related social issues：Employee engagement and inclusion
Category	Description	Key initiatives
Risk	Attrition of high-performing talent and decline in competitiveness in recruitment due to a non-inclusive workplace environment	Embedding a culture centered on EVP (Employee Value Proposition), deployment of total rewards, establishment of development systems tailored to diverse career paths, and enhancement of training environments
Opportunity	Development and provision of products and services leveraging diverse perspectives through the active participation of diverse talent
Positive impact	Improved employee engagement leads to reduced employee turnover and enhanced overall organizational performance Improvement of employees’ psychological safety

Related social issues：Employee skill development
Category	Description	Key initiatives
Risk	Negative impact on business performance and mid- to long-term growth due to stagnation in business portfolio transformation and new value creation, caused by insufficient progress in developing future management talent and securing, developing, and reskilling highly skilled technical talent (e.g., digital and AI)	Expansion of educational curricula and hands-on training programs aimed at acquiring digital and technical skills, and the planned development and strengthening of technical talent, including AI specialists Selection-based training, assessments, and development of young leaders to build a mid- to long-term leadership pipeline
Opportunity	Achieving competitive advantage and profit growth through the development of digitally skilled talent
Positive impact	Enhanced sense of employee growth through the provision of career development and skill development opportunities

Related social issues：Building relationships with local communities
Category	Description	Key initiatives
Risk	Damage to corporate value due to backlash from local communities and a decline in brand value caused by business activities that disregard the rights of residents	Implementation of global, employee-participation-based social contribution activities, such as youth support and forest conservation Dialogue with local residents and municipalities surrounding business sites
Opportunity	Enhancement of social trust, smooth business operations, and securing the recruitment of talented personnel through business activities that consider local communities and the environment
Positive impact	Improvement of regional sustainability through business activities and social contribution initiatives that respect the rights of local communities Enhancement of engagement with the company and awareness of social contribution through employee participation in community contribution activities

Related social issues：Climate change mitigation and adaptation ; Resource depletion/Resource circulation
Category	Description	Key initiatives
Risk	Increased procurement costs and pass-through to raw material prices due to carbon pricing (carbon taxes and emissions trading) and circular economy policies (e.g., promotion of recycled materials and taxation on plastic packaging materials) Decline in revenue due to delays in responding to environmental regulations and customer requirements related to decarbonization and the transition to a circular economy Decline in revenue due to increased remote work and the advancement of paperless practices for resource conservation	Promotion of decarbonization and resource efficiency initiatives based on business strategies <Main actions> Active implementation of energy-saving measures and renewable energy initiatives within the Group companies Development and sales of environmentally conscious products Strengthening of products and parts recycling businesses Acquisition of business opportunities incorporating ESG initiatives Expansion of energy-saving, resource-efficient, and renewable energy-related businesses Development and sales of solutions that support digital transformation
Opportunity	Establishing a competitive advantage by accelerating responses to rising demands for GHG reduction, renewable energy adoption, and use of recycled materials
Positive impact	Contribution to climate change mitigation and adaptation in society through our own decarbonization initiatives and efforts to support customers’ decarbonization Contribution to preventing resource depletion and support for the transition to a circular economy by providing circular economy products and improving resource circulation

<The Mid-Term Strategy ’26（Fiscal 2026-2030）> Materiality and ESG targets

The Ricoh Group has established KPIs as ESG targets to manage and evaluate the progress of initiatives related to its materialities. These ESG targets are aligned with the business strategy and the Mid-Term Strategy, and their progress is monitored together with business plans.

Materiality		Social issues	Global ESG targets
Materiality		Social issues	Indicators	Fiscal 2026	Fiscal 2030
Prosperity (Sustainable economy)	Creativity from Work	Boosting productivity/Unleashing creativity/ Digital inclusion	①Customer survey scores^*1	Japan:33% North America:35% Latin America:56% Europe:32% APAC^*2:36%	Japan:40% North America:38% Latin America:63% Europe:40% APAC^*2:45%
	Creativity from Work	Accelerating innovation	②Co-creation projects, as % of total projects^*3	43%	Not disclosed. Only the current fiscal year’s targets are disclosed.
	Safe and secure digital society	Information security and customer privacy	➂Security management maturity^*4(Progress toward fiscal 2030 target)	80%
	Safe and secure digital society	Ethical technology development and utilization	④YoY growth in technology assessment^*5 personnel	30%
	Fair corporate activities	Respect for human rights	⑤% of Ricoh group companies assessed as low risk^*6	50%
		Respect for human rights	⑥Number of high-risk suppliers^*7	0
		Ensuring business ethics and compliance	⑦Compliance maturity^*8	Average 3.0pt
People (Sustainable society)	Inclusive workforce	Employee engagement and inclusion	⑧Engagement score^*9	3.96	4.14
		Employee engagement and inclusion	⑨% of women in managerial positions	Global 18.3% Japan 9.7%	Not disclosed. Only the current fiscal year’s targets are disclosed.
		Employee skill development	⑩Total number of digital skills at Level 2 or higher^*10	13,200 (cumulative)
	Coexistence with communities	Building relationships with local communities	⑪Employee participation rate in social contribution activities (cumulative basis)	87%
Planet (Sustainable environment)	Zero-carbon society and circular economy	Climate change mitigation and adaptation	⑫GHG^*11 Scope 1, 2 reduction rate（vs. 2015）	65%	75%
			⑬GHG^*11 Scope 3 reduction rate (vs. 2015)	36%	40%
			⑭Renewable energy, as % of total electricity use	57%	85%
		Resource depletion/Resource circulation	⑮Virgin material usage ratio of products	76% or less	60% or less

*1

Percentage of customers who evaluate the Company as a “partner that supports problem-solving” through the value it provides, based on surveys aligned with regional strategies.
*2

APAC: Asia Pacific
*3

Ratio of projects involving co-creation with external organizations within the total number of R&D projects
*4

Maturity assessment based on guidelines developed with reference to international standards and frameworks related to cybersecurity
*5

Activities to anticipate and assess the social and ethical impacts of technologies from the planning and development stages, and to reflect risk mitigation measures in products and services
*6

Percentage of group companies that have addressed all key items identified in the Ricoh Group human rights risk assessment
*7

Number of suppliers with multiple non-compliant items against the requirements of the Ricoh Group Supplier and Partner Code of Conduct, which is based on the Code of Conduct of RBA (A global industry coalition aimed at fulfilling corporate social responsibility in global supply chains)
*8

A staged assessment of the extent to which employees’ awareness and systems (compliance framework) for complying with laws, internal regulations, and codes of conduct are embedded and functioning
*9

Uses Gallup’s Q12 mean score (evaluation scores for 12 factors to predict high organizational performance)
*10

Recommended digital certifications and skills defined by Ricoh for each talent category based on the IPA’s DX Skill Standard
*11

GHG: Greenhouse Gas

<The 21st Mid-Term Management Strategy（Fiscal 2023-2025）> Materiality, ESG targets, and performance

Under the 21st Mid-Term Management Strategy, we established 16 ESG targets from the perspectives of “transformation into a digital services company” and “addressing societal and customer expectations,” and achieved the targets for 13 of the indicators. For the following indicators that did not achieve their targets—① Customer survey scores, ⑮ Engagement score, and ⑯ % of women in managerial positions—we will continue to set targets under the Mid-Term Strategy ’26 and promote initiatives to address these challenges.

Resolving social issues through business

Materiality	Focus domains	ESG targets in the 21st Mid-Term Management Strategy （End of Fiscal 2025）		Results
Materiality	Focus domains			Fiscal 2023	Fiscal 2024	Fiscal 2025
Creativity from Work	Office services Smart Vision, and others	① Customer survey scores^*1	29%			Achieved in four out of five regions.
Creativity from Work	Office services Smart Vision, and others	① Customer survey scores^*1	29%	Japan: 26.3% North America: 39.3% Latin America: 64.8%^*2 Europe: 24.5% APAC: 17.4%	Japan: 26.8% North America: 38.6% Latin America: 45.5%^*2 Europe: 28.2% APAC: 30.8%	Japan: 32.4% North America: 39.6% Latin America: 49.5%^*2 Europe: 28.9% APAC: 40.0%
Community and social development	GEMBA（Maintenance and services for stores, warehouses, and other non-office sites） Municipal solutions Educational solutions, and others	② Number of people to whom we have contributed by improving social infrastructure	23.5 million people	17.94 million people	22.35 million people	43.29 million people
Zero-carbon society	Eco-friendly MFPs Commercial printing Silicone-top linerless labels On-demand Direct Printing (ODP) Thermal media, and others	③ GHG Scope 1, 2 reduction rate (vs. 2015)	50%	47.8%^*3	59.2%^*3	65.4%^*4
		④ GHG Scope 3 reduction rate (vs. 2015)	35%	39.1%^*3	39.0%^*3	42.6%^*4
		⑤ Renewable energy usage ratio	40%	30.8%^*3	42.8%^*3	55.7%^*4
		⑥ Avoided emissions	1,400 thousand tons	1,059 thousand tons	1,448 thousand tons	1,437 thousand tons
Circular economy		⑦ Virgin material usage ratio of products	80% or less	78.9%	78.3%	76.8%^*4

*1

The percentage of customers who evaluated us as a digital services company
*2

A survey targeting solution customers in Latin America
*3

Due to changes in organizational structure, the scope of disclosure has been revised and related figures have been recalculated.
*4

Provisional values under third-party verification. Final values are scheduled to be disclosed in August 2026.

Robust management infrastructure

Materiality	ESG targets in the 21st Mid-Term Management Strategy （End of Fiscal 2025）		Results
Materiality			Fiscal 2023	Fiscal 2024	Fiscal 2025
Responsible business processes	⑧ CHRB score^*4	ICT sector leader	Self-assessment completed. 55% progress toward target	Self-assessment re-performed. 90% progress toward target	One of the ICT sector leaders
	⑨ Compliance with NIST SP800 -171 coverage of Ricoh’ s core business environment	80% or more	Continued identification and assessment of information to be protected	Identification of information to be protected and formulation of a plan completed. Countermeasures partially completed.	90.7%
	⑩ Low-compliance risk group companies	80% or more	Completed a pulse survey for high-risk organizations	Improvement measures developed in the high-risk organization. Implementation partially completed.	96.3%
Open innovation	⑪ Contracted Joint R&D ratio	25%	23.0%	22.7%	26.4%
Open innovation	⑫ Digital service patent application ratio^*5	60%	54.7%	64.6%	67.8%
Diverse and inclusive workforce	⑬ Ricoh Digital Skills Level 2 or above rated employees (Japan)	4,000 people	2,855 people	4,658 people	6,811 people
	⑭ Process DX Silver Stage-certified employee ratio^*6	40%	21.1%	34.2%	54.0%
	⑮ Engagement score ^*9	Global: 3.91 Japan: 3.69 North America: 4.18 Latin America: 4.14 Europe: 4.01 APAC：4.15	Global: 3.79 Japan: 3.57 North America: 4.00 Latin America: 3.90 Europe: 3.92 APAC：4.03	Global: 3.84 Japan: 3.61 North America: 4.00 Latin America: 3.95 Europe: 3.90 APAC：4.20	Global: 3.89 Japan: 3.67 North America: 4.02 Latin America: 3.98 Europe: 3.98 APAC: 4.28
	⑯ % of women in managerial positions	Global:20% Japan:10%	Global:16.5% Japan:7.7%	Global:17.2% Japan:8.4%	Global:17.9%^*7 Japan:9.4%

*4

CHRB (Corporate Human Rights Benchmark) Score: An international human rights initiative established by institutional investors and NGOs. It evaluates global companies from five sectors: food and agricultural products, apparel, extractives, ICT manufacturing, and automotive manufacturing.
*5

Ratio of patent applications related to digital services business to total patent applications
*6

Training rate of personnel with process improvement experience based on a Process DX model (The denominator is the total number of personnel in the training target organization of each business unit.)
*7

A provisional value under third-party verification. Final value is scheduled to be disclosed in August 2026.

Materiality Analysis

Process of identifying risks and opportunities and determining materiality

Step 1:Identification of Issues

Extract a list of sustainability-related issues by referring to disclosure standards (ESRS^*1, SASB Standards^*2), WEF Global Risks^*3, and the SDGs
Classify, organize, and consolidate the issues, taking into account focused managerial risks, material issues and business strategies
Identify 19 key social issues that require close attention

Step 2:Prioritization of Issues

Establish evaluation criteria for risks, opportunities, and impacts, using the evaluation process of focused managerial risks and ESRS as references
In collaboration with relevant departments, identify risks, opportunities, and impacts related to the 19 key social issues, and evaluate them based on the established criteria
Identify high-priority issues based on the evaluation results and define them as material issues

Step 3:Management Review and Stakeholder Engagement

Deliberate on the identified material issues and areas for setting ESG targets at the ESG Committee
Exchange opinions with shareholders, investors, experts, and ESG representatives from Ricoh Group sites

Step 4:Alignment with Departmental Mid-Term Strategies and Setting ESG Targets

Based on risks, opportunities, and impacts related to high-priority social issues, each organization considers initiatives in its mid-term strategy and ESG targets as KPIs
Ultimately identify 6 material issues and 11 social issues, and set 15 ESG targets

Step 5:Management Decision-Making

Deliberate and determine material issues and ESG targets at the ESG Committee, obtain approval from the Board of Directors along with financial targets of the mid-term strategy, and disclose them

*1

ESRS: European reporting standards that define corporate sustainability disclosure requirements under the EU’s CSRD (Corporate Sustainability Reporting Directive)
*2

SASB Standards: Industry-specific standards aimed at disclosing sustainability information that affects corporate value. The Ricoh Group refers to the Hardware industry standards
*3

WEF Global Risks: A report published by the World Economic Forum (WEF) that outlines major global risks

Executive Compensation Linkage

To clarify management's responsibility for ESG initiatives and achieving targets, we have incorporated ESG indicators into executive compensation since the fiscal year 2020.

Under the 21st Mid-Term Management Strategy, we linked ESG indicators with the compensation of internal directors and executive officers, with the aim of reflecting ESG initiatives in management. Specifically, we incorporated the “DJ BIC Indices Annual Rating” into performance-linked bonuses (short-term) and embedded ESG targets into performance-linked stock-based compensation (Long-term). Starting from The Mid-Term Management Strategy ’26, in order to further strengthen alignment with mid- to long-term corporate value enhancement, we will narrow the ESG targets linked to compensation down to three areas that are particularly closely related to the management strategy, and we will incorporate them into performance-linked stock-based compensation (Long-term).

^* DJ BIC Indices is the new name for the Dow Jones Sustainability Indices (DJSI). It comprises companies recognized for outstanding sustainability performance based on S&P Global’s assessments.

ESG targets incorporated into performance-linked stock-based compensation (Long-term)
Category	ESG targets
Prosperity	Customer survey scores
People	Engagement score
Planet	GHG Scope 1and 2 reduction rate

Approach to Materiality (Material issues)

The Ricoh Group’s policy is to “align ESG with business growth.” By leveraging our strengths, we will further drive business growth through our initiatives. We are pleased to introduce the Ricoh Group’s efforts to help resolve social issues through our business activities.

Resolving Social Issues through Business

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