The Ricoh Group established and enforced the Standard on Environmental Risk Management with Respect to Assets in fiscal 2009, and has been evaluating environmental risks according to the standard. The purpose of this standard is to identify major risks entailed in the acquisition/sale/ lease of property and minimize their impact on business. The standard applies to all acquisitions, sales, and lease of property within the Ricoh Group (all the group companies subject to the consolidated accounting). Our environmental risk management conducted under this standard follows three key principles: (1) to assess significant environmental risks and the related health risks when acquiring, selling and/or leasing property, including cases involved in M&A; (2) to develop plans to manage and reduce the assessed risks and implement appropriate measures according to the plan; (3) to provide relevant parties with important information on the identified environmental/health risks at the time of acquiring, selling and/or signing a lease contract for property. If risks concerning contaminated soil, PCBs, asbestos or other substances subject to environmental regulations are identified, the division in charge and the Environment Division will discuss the matter before deciding whether to finalize the property transaction under negotiation.