Evaluation Methods -Eco Balances-

The Ricoh Group introduced the concept of Eco Balance in fiscal 1998 to clarify the environmental impact caused by all its businesses and effectively reduce it. We have mapped out environmental action plans based upon the concept of Eco Balance since fiscal 2002 and have applied the concept in the formulation of environmental impact reduction goals that take medium- to long-term perspectives since fiscal 2005.
For example, greenhouse gas emissions from electricity consumed by the use of copiers and printers reduced in fiscal 2011 by about 500,000 tons (calculated by Ricoh) from product segment emissions in fiscal 2000 due to the development of energy-saving technologies. Moreover, our initiative towards product reuse, such as using recycled copiers and toner cartridges, and reuse of service parts, allowed a reduction in the input of new resources by a rough global total of 7,000 tons in fiscal 2011. In addition, with the release of a product that uses electric steel sheets in fiscal 2012, a first for the industry, we are planning to use more new recycled materials along with recycled resin.

The Ricoh Group is aware of the importance of lifecycle environmental impact evaluations and has adopted its own accounting method that incorporates a lifecycle perspective in the early stages. To step up its efforts, the Ricoh Group has revised the accounting method in light of the Scope 3 accounting standard of the GHG Protocol Initiative, which is an international accounting guideline.

Previously, we classified the estimated GHG emissions generated from paper used by customers employing Ricoh’s products into the Use stage. However, we then adopted a new method in which the estimated GHG emissions from paper purchased by the Ricoh Group are classified into the Procurement of Raw Materials and Parts stage.

Previously, we calculated electricity consumption from copiers and printers using the Ricoh Group’s own calculation method (taking into account actual usage conditions and whether or not an energy savings mode (10-second recovery time) was employed). However, we then adopted a new method that uses TEC values in accordance with the measurement method of the International ENERGY STAR Program.
We also made estimates for a number of products operating in the market based on the model of products sold in the past five years. However, we have since employed a new model that products sold each year shall be operating for five years.

To calculate GHG emissions arising from the Procurement of Raw Products and Parts and Use stages, we use data prepared by Mizuho Information & Research Institute, Inc. based on the LCA database (fiscal 2009, version 2) published by the Life Cycle Assessment Society of Japan (JLCA). Mizuho Information & Research Institute organized the data by expanding the system's boundaries and supplementing missing data.

Regarding the reporting of LCA data, we previously used inventory analysis results and integrated impact assessments. To provide more comprehensible information, we adopted a new method starting in fiscal 2011 that indicates environmental data directly related to business activities at the Ricoh Group’s sites while, for our supply chain companies, provides data on GHG emissions indirectly related to the Group’s activities (according to Scope 3) as well as the amount of resources and energy used at each stage.

In order to promote an effective reduction in environmental impact, we will continue to review our environmental impact calculation methods, and respond to related external moves, including those surrounding the Scope 3 accounting standard.

Eco Balance(FY2011)

Notes:

• The GHG Protocol categorizes emissions into three broad scopes:
• Scope 1: All direct GHG emissions from sources owned or controlled by the reporting entity, including fossil fuels
• Scope 2: Indirect GHG emissions from the consumption of electricity, heat, etc., purchased by the reporting entity
• Scope 3: Other indirect GHG emissions from a variety of activities conducted by supply chains related to the reporting entity, ranging from the production of purchased materials to transportation/use of products and waste disposal.

Procurement of raw materials and parts

• Approximately 80% of paper is purchased for use in offices (including estimates for sites outside Japan). This percentage may change, as accuracy of data collection will be improved in the future.
• The products subject to accounting consist of copiers, printers, digital duplicators, facsimiles, digital cameras, electronic devices, embedded modules, thermal media, gas meters, toners, cartridges and peripheral equipment.
• GHG emissions coefficients used in the calculations are developed based on the LCA database published by JLCA and using Ricoh’s database.

Business sites

• Regarding the amount of chemical substances handled, discharged and transferred, data on substances covered by the Japanese PRTR Act is collected from the Group’s sites inside and outside Japan.
• Tabulated environmental impact data obtained from individual sites is separately provided on our website.

Logistics and transportation

• Data for Japan covers transportation of cargo shipped by Ricoh or Ricoh Japan. For data outside Japan, international transportation is also subject to the calculations.

Use

• For GHG emissions, electricity consumption from the use of copiers and printers is used for calculations.
• GHG emissions coefficients for electricity use (kg-CO₂e/kWh) are developed using Ricoh’s database. The calculations are also based on the average emission factor for all energy sources issued by electricity utilities in fiscal 2000 (0.378) and reflect non-CO₂ GHG emissions related to procurement of fuels and energy use.

Collection and recycling

• Data for office equipment and supplies are subject to collection and recycling accounting (excluding some areas outside Japan).