Supply Chain Management

• Policy and Basic Concept
• Ricoh Group supply chain
• Building relationship with suppliers based on trust
• Addressing ESG procurement
• Addressing the conflict minerals issues
• Supply chain BCM (business continuity management)
• Supplier Hotline

Policy and Basic Concept

Our business activities give us a large sphere of influence when it comes to social accountability, so it is crucial for the many companies and individuals along our supply chain to help the Ricoh Group avoid or minimize unintended negative effects. We are a member of the RBA^*1 (Responsible Business Alliance), a global industry coalition dedicated to progressing social responsibility in global supply chains and we make sure not only our employees, but also the employees of our suppliers, always act ethically. We spotlight this concern in our international guidelines on human rights, labor, the environment and more, and are working continuously to raise our initiatives to the next level.

*1 RBA: Responsible Business Alliance, organizations promoting ESG in supply chain. Ricoh as a member of the RBA, is engaged in activities to promote ESG throughout the supply chain.

Ricoh Group basic policy in procurement activities

The Ricoh Group’s businesses are supported by many suppliers. Recognizing these suppliers as our essential business partners, we build a relationship of trust with them, aiming at mutually beneficial development.

Today’s society faces various issues to address, such as those associated with the environment and human rights. To help solve these issues and achieve a sustainable society, the Ricoh Group promotes business activities so as to achieve SDGs, upholding the slogan of “Driving Sustainability for Our Future.” In order to effectively pursue this goal to meet social expectations, we need to cooperate with the entire supply chain, sharing our group policies and visions with individual suppliers. To this end, we have established the Ricoh Group purchasing regulation to appropriately deal with relevant ESG issues involving legal compliance, fairness and environmental and societal impacts. Using this as a tool, we are working to enhance our efforts on a global scale.

Ricoh Group Purchasing Regulation

To operate the purchase activities in impartial and fair manner which is open to all over the world, based on the economic rationality.

To operate, as a member of the global citizen, the purchase activities in such a manner as to contribute to the conservancy and the improvement of the global environment.

To operate the purchase activities bearing in mind CSR and based on the compliance with law and esteem of the social ethics.

To aim at coexistence and co-prosperity with excellent Suppliers on the basis of mutual responsibility.

Structures

To continuously discuss mid- to long-term issues of the Ricoh Group in the areas of environment, society, and governance at the management level, the ESG Committee, chaired by the CEO, was established in May 2018. The committee meets once every quarter with the participation of Senior Management to discuss the status of initiatives, issues, and investment decisions related to ESG themes, such as supply chain management, as important themes for management. Its deliberations are regularly reported to the Board of Directors, which then supervises the execution of ESG activities at a high level.

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Ricoh Group supply chain

On a global basis, the Ricoh Group has 3,088 suppliers , with a purchasing amount of 360 billion yen (as of March 2023). We work to achieve group-wide procurement optimization in cooperation with our global suppliers.

New Supplier Selection

In addition to considering fundamental requirements such as the conditions of the country or region, the characteristics of the industry and products, also demands the following as business sustainability requirements when selecting new suppliers. Moreover, when starting new transactions with suppliers, we select suppliers in accordance with the basic policy in purchasing activities, and include provisions related to ESG (Environmental, Social, and Governance) in the basic business agreement.

■Basic Information

• Location
• Relationship between upstream and downstream suppliers
• Main customer distribution
• Type of industry (sector) and commodity
• Credibility and business reputation

■Core capability

• Quality capability
• Cost leading capability
• Supply capability
• Service support capability

■Sustainable resilience

• Comply with Ricoh Group’s Green Procurement Standards
• Sign the Non-use declaration of banned substances in Ricoh’s products
• Establish the chemical substance management system (CMS)
• Establish the environmental management system (EMS)
• Agreement of Ricoh Group Supplier and Partner Code of Conduct
• Adapt worker’s human rights, health and safety, environment, ethics and management system.

When screening the suppliers, Ricoh Group take into consideration for country-specific risks, sector-specific risks, and commodity-specific risks.
Ricoh Group may cancel our business relationship with suppliers who are found to have made insufficient efforts to meet or improve upon ESG requirements.

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Critical suppliers selection process

We identify critical suppliers according to certain criteria, taking into consideration the procurement amount and volume, the importance and substitutability of procured materials and parts, as well as the risk of not being able to procure parts because of politics, regulations, labor conditions, energy consumption, potential pollution, etc. in the country concerned. As of March 2023, a global total of 292 companies have been specified as critical suppliers.

We identify "critical suppliers" among our suppliers based on several criteria: those with large purchase volumes, those supplying parts for major or strategic models, those providing irreplaceable components, and those whose parts procurement poses significant risks.

We conduct the following assessments to verify compliance status with critical suppliers.

1. Conduct Desktop assessments/self-assessment
   We request our suppliers to complete a SAQ(Self-Assessment Questionnaire ) to comply with the Ricoh Group Supplier Partner Code of Conduct.
2. On-site assessments
   The responsible buyer will visit the site to verify the results of the completed SAQ and check the progress of any corrective actions.
3. Conduct 3rd party assessment
   We conduct audits by external organizations as an assessment.

Supplier Screening

*We do not configure setting for significant suppliers in non Tier-1

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Building relationships with suppliers based on trust

We work to forge relationships of strong trust and long-term cooperation with our suppliers, aiming at mutually beneficial development. We do this by providing:

• The Ricoh Group Supplier and Partner Code of Conduct
• Production trend briefings
• ESG briefing for suppliers
  We provide education and training to our suppliers through the ESG briefing. We started by explaining basic matters such as Ricoh's initiatives and the Supplier and Partner Code of Conduct, and now we are explaining more advanced matters such as setting decarbonization targets, conducting ESG audits, and implementing improvement programs for suppliers that we have identified as high risk. Since 2020, for the purpose of preventing the spread of Covid-19, we have held online-briefings for the first time with our main global suppliers.
• Supplier Satisfaction Survey
  We conduct questionnaires for suppliers about Ricoh's procurement activities anonymously, and we improve Ricoh's own procurement activities based on the answers of questionnaires.

We have also established a network infrastructure called "RaVenderNET" to operate with our suppliers, which is utilized not only for exchanging production information and data on the environmental impact of raw materials and components but also for sharing information related to ESG procurement.

To join the Responsible Business Alliance (RBA)

In November 2019, Ricoh joined the Responsible Business Alliance (RBA), the world’s largest industry coalition dedicated to promoting corporate social responsibility in global supply chains. Ricoh shares the principals and goals of the RBA and has committed to adopting and implementing the measures initiated by the RBA, and also sharing them with our suppliers.
Furthermore, we are utilizing the RBA-Online platform, which is the platform of the RBA, to receive various data from our suppliers regarding their initiatives on environmental, social, and governance (ESG) practices. We use RBA's management indicators as benchmarks to collaborate with our suppliers in addressing and reducing ESG risks, with the aim of promoting sustainable business activities. Our suppliers actively participate by exchanging information on initiatives such as hosting ESG briefing, implementing power reduction programs to promote decarbonization, and various other efforts. Additionally, Ricoh provides support by actively advising and assisting in these initiatives.

In accordance with RBA's certification program, our global production sites have adopted take RBA's Self-Assessment Questionnaire (SAQ) and the Validated Assessment Program (VAP), a formal third-party audit. The VAP also evaluates the number of suppliers and the number of assessments conducted, the number and progress of high-risk supplier improvements, and the number and status of companies implementing improvement support programs.

In previous audits, there have been no instances of non-compliance evaluations regarding the quantitative data submitted to the auditing agency. Among the three certification ranks available (Platinum/Gold/Silver), all audited locations have obtained either Gold/Silver certification.

For a list of certified production facilities, please refer to the Human Rights page.

Ricoh Joins the Responsible Business Alliance, the World's Largest Industry Coalition Dedicated to CSR in Global Supply Chains
Responsible Business Alliance (RBA)
Validated Assessment Program (VAP)
Human Rights

Ricoh Group Supplier and Partner Code of Conduct

In January 2006, the Ricoh Group established the Ricoh Group Supplier Code of Conduct for our suppliers to help them understand and support the Ricoh Group’s basic ESG policy and promote efforts aimed at improving society and the global environment as well as the sustainable development of businesses. The code of conduct is distributed to all our suppliers, who are required to comply with it. In August 2020, the Ricoh Group revised the "Supplier Code of Conduct" complying with the RBA Code of Conduct, which is based on major international human rights standards, including the ILO Declaration on Fundamental Principles and Rights at Work and the Universal Declaration of Human Rights in line with the UN Guiding Principles on Business and Human Rights. In April 2023, we revised the code to the "Ricoh Group Supplier and Partner Code of Conduct" as a code of conduct to be applicable to business partners in addition to suppliers of the Ricoh Group.
For suppliers and business partners implementing the Supplier and Partner Code of Conduct, the working environment is safe, and the workers are treated with respect and dignity. We would also like our suppliers and partners to ethically work on this revised Code of Conduct for conducting business and, at the same time, to be environmentally responsible. We request our suppliers and partners to sign the agreement form for the Ricoh Group Supplier and Partner Code of Conduct and ensure that Ricoh and our suppliers work in tandem.

Ricoh Group Supplier and Partner Code of Conduct
Ricoh Group Supplier and Partner Code of Conduct (English) (285KB)
Ricoh Group Supplier and Partner Code of Conduct (Japanese) (416KB)
Ricoh Group Supplier and Partner Code of Conduct (Chinese) (577KB)
Ricoh Group Supplier and Partner Code of Conduct (Thai) (253KB)

Ricoh Group Supplier and Partner Code of Conduct Agreement form
Ricoh Group Supplier and Partner Code of Conduct Agreement form (English)（24KB）
Ricoh Group Supplier and Partner Code of Conduct Agreement form (Japanese)（98KB）
Ricoh Group Supplier and Partner Code of Conduct Agreement form (Chinese)（92KB）
Ricoh Group Supplier and Partner Code of Conduct Agreement form (Thai)（104KB）

The RBA Code of Conduct
The RBA Code of Conduct

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Ricoh Group Supplier and Partner Code of Conduct (Index)

Ricoh Group Supplier and Partner Code of Conduct is based on the RBA Code of Conduct and consists of five sections: labor, health & safety, environment, ethics and management systems.

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Holding a Briefing Session on Procurement Policy

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Supplier Satisfaction Survey

We aim for coexistence and co-prosperity and sustainable development through fair corporate business activities with suppliers. A pilot survey was launched in fiscal 2020 followed by a full-scale supplier satisfaction survey in fiscal 2021. We conduct a questionnaire for our suppliers covering the following points: listening to the frank opinions of anonymous respondents and improving Ricoh's procurement activities. The 2022 survey was conducted using the same questions as in the 2021 fiscal year to assess the improvement status. It consisted of eight questions divided into four categories, aiming to obtain numerical evaluations and specific feedback regarding Ricoh's purchasing activities.

In fiscal 2022, we conducted the survey in Japan, China, Thailand, and Vietnam, targeting important suppliers who have a large volume of business with the Ricoh Group, and received responses from approximately 60% of suppliers. According to the survey results, 68% of suppliers were satisfied with Ricoh's purchasing activities, indicating that there is still much room for improvement. Looking at the feedback we received from suppliers, we found that they were generally polite and gentlemanly, but we did receive one comment that "there are very rare cases where the person in charge uses bad language. We also received some comments on things that need to be improved, such as "sometimes we feel a lack of communication between locations" and "production plans fluctuate. We have provided feedback on the results of the survey to those who were asked to participate in the supplier satisfaction survey. This year, we plan to implement improvement measures for purchasing activities.

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Addressing ESG procurement

While operating the business globally, the Ricoh Group considers the ESG in the supply chain and responds to the challenges of each field, aiming to solve social issues and to become a company in which employees can be even more proud of their work. We believe that working together with suppliers to address and solve the various problems of the global environment and society will be the driving force for the development of a healthy company and, ultimately will realize a sustainable society. For that we will promote this initiative from the perspective of long-term corporate value improvement.
In December 2021, we organized a company-wide control department for ESG-related purchasing and procurement, and work to expand the number of low-risk suppliers through initiatives to support the achievement of ESG risk management standards required by the Ricoh Group.

Rollout of supply chain ESG

Identifying risks associated with suppliers

We assess risks associated with each supplier in consideration of its location of operation and the possibility of involving environmentally hazardous substances. Based on the assessment, we identify high-risk suppliers and carry out measures to reduce the risk through periodically monitoring the financial situation, introducing the SAQ programs and providing for third-party audits. We also conduct annual compliance risk screening for all suppliers in accordance with our anti-corruption and anti-bribery policy.
In fiscal 2018, we conducted two unannounced audits of suppliers with coating processes suspected of containing or contaminated by prohibited substances. Thorough the inspection of their production sites, we confirmed that all products were lead-free electroless nickel-coated and determined that there was no possibility of the inclusion of prohibited substances.

SAQ System

We have introduced a SAQ System based on the RBA Code of Conduct that helps suppliers monitor their compliance with the Ricoh Group Supplier and Partner Code of Conduct. The system has been rolled out domestic and overseas production sites. Company activities are assessed in labor, safety and health, environment, ethics, management systems, and living wages to identify issues to address. The results are fed back to the suppliers, who receive requests for improvement if applicable, together with corrective action plan, advice, and support on ways to meet society's needs and expectations. If a supplier's improvement activities are not sufficient, we would discuss the future business relationship with the supplier.
With the SAQ System, the Ricoh Group provides our suppliers with support in implementing a "plan, do, check, act" (PDCA) cycle by themselves to meet society’s needs and expectations.

Implementation of ESG Audits

For any non-conformities identified in audit results, we request suppliers to make improvements. Ricoh Group ask them to formulate an action plan for improvement and provide improvement suggestions and activity support.

In fiscal 2023, an RBA VAP audit conducted in April 2023 at a production site in Thailand identified a case of violation in which an employee of an onsite service provider as our indirect supplier was not properly granted annual leave in accordance with local laws and regulations. After the audit, the production site in question revised its annual leave system and informed its suppliers of the regulations, requesting them to comply with them and prevent recurrence. As a result, when the VAP audit was reassessed in October of the same year, the external auditor found that the specific issues had been corrected. We will continue to request suppliers to comply with the Code of Conduct, and if any violations of the Code of Conduct are found, we will request suppliers to correct them

*2 VAP audits: Validated Assessment Program. Third-party audits of supplier's compliance with the five elements of the RBA Code of Conduct to identify risks and opportunities for improvement.
*3 The total number of companies evaluated for environmental risk, social risk, and economic risk, which are selection criteria for suppliers.
Implementation of ESG Audits_2023

Coverage and progress of our supplier ESG assessment program (FY2023)

We conducted audits in our supply chain ESG program targeting significant suppliers in Tier-1 （Critical suppliers）.

*For medium and high-risk suppliers, we request improvement activity plans and will verify improvements through on-site audits conducted by the responsible buyers. For some high-risk suppliers, we will also conduct third-party audits to confirm the improvements.

Examples of Key Improvement Activities During Supplier Audits

• Case 1: Employees were required to bear costs upon hiring.
  Improvement Support: Requested the supplier to document a policy against charging employment-related fees and we confirmed the establishment of this policy.
• Case 2: The supplier had not set a minimum employment age.
  Improvement Support: Supplier established a minimum employment age. We initially requested it to be set at 18, but after discussions, set it at 15 since the supplier offered part-time positions to high school students.

Coverage and progress of suppliers with corrective action plans（FY2023）

We identified five high-risk suppliers and corrective actions are scheduled to begin in FY2024. These corrective actions are expected to be completed within the current mid-term management plan period by the end of FY2025.

Coverage and progress of suppliers in capacity building programs（FY2023）

Education and training in the procurement division

To promote ESG procurement across the entire supply chain, it is essential for our procurement department employees to understand social and environmental issues in the supply chain. Ricoh's procurement department conducts "ESG Procurement Training" for employees newly engaged in procurement activities to understand sustainable raw material procurement and procurement activities that consider environmental and social aspects.

Basic procurement training for all new members assigned to the procurement department, including new hires and transfers. In FY23, 24 participants from the Japan domestic procurement department completed the training (100% completion rate).

Through monthly meetings with the ESG Department, we confirm and understand international sustainability trends and ESG procurement requests from society and customers. To address various social and environmental issues, such as the increasing demands for reduction of GHG emissions and the environmental impact across the entire supply chain, we established a working group within the purchasing department in 2022 to collect ESG information and enhance ESG procurement activities.

Green procurement

To reduce the environmental impact of its entire supply chain, the Ricoh Group works to enhance environmental protection efforts in cooperation with suppliers. As a measure to facilitate relevant efforts at suppliers to establish the Ricoh Group’s environmental management system (EMS), we have created the EMS Guidelines and Green Procurement Standard, to which we refer for purchasing raw materials and components from suppliers. Similarly, to help suppliers establish a chemical substance management system (CMS), we have developed the CMS Guidelines, and use it as a tool for providing training and operational support.

Green Procurement Standard

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Supply chain chemical substance management system

*Based on achievements since the program's inception: within the Ricoh Group from FY2004, and for suppliers from FY2005.

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Supporting suppliers’ decarbonization efforts

In pursuit of a zero-carbon society, the Ricoh Group is expanding its CO₂ emissions reduction activities that allow suppliers to join in with the Group’s efforts. One such activity involves supporting suppliers in switching to clean electricity. We have shared the global warming countermeasures and information of trend on the environment that became a common global issue after the Paris Agreement with the management of suppliers in order to aim to raise awareness about CO₂. In 2021, we held an ESG briefing session to explain the Ricoh Group's policy on decarbonisation and future initiatives to suppliers and asked for their cooperation. Besides, based on practical cases and know-how in the Ricoh Group, we have supported suppliers on CO₂ emissions reduction activities. In the future, together with our suppliers, we will continue to practice environmental management that realizes environmental conservation activities and creation of profits.

Case report: Supporting suppliers in switching to “new power” to reduce CO₂ emissions

Miyazawa Machinery Industrial Co., Ltd. (Head office/plant in Omori-honcho, Ota-ku; plant in Jonanjima, Ota-ku; Website: http://www.m-mic.co.jp/)

Interview with Taizo Miyazawa, Representative Director

How did your company begin working to reduce CO₂?

We have been promoting energy conservation over several years in our major business sites at the head office and at plants. We installed LED lighting, energy saving air conditioners and other systems. In the summer of 2018, we received a request from Ricoh to switch to “new power,” which is provided by a power producer and supplier (PPS). Ricoh explained in earnest about the objective of promoting the initiative and its effect on society, which made us consider accepting their request. However, the switch was difficult to do immediately at the time, given the need to fulfill our ongoing contract for multi-year services. We decided to bring forward the issue for reconsideration when that contract expires.

What made your company adopt the CO₂-free option?

Ricoh offered to provide their accumulated know-how and operational support for switching to new power. We began to consider the possibility of the switch as an approach to cutting costs and CO₂ emissions at once. The company invited us to CSR briefing sessions and SDGs seminars, where we were impressed by their eagerness for environmental initiatives. As a parts supplier, we thought we should support Ricoh in pursuing the initiatives and decided to introduce new power. Our decision was driven particularly by a plan that could allow us to select a CO₂-free option and lower costs compared with the service by the previous power company. We became the first supplier to respond to Ricoh’s request, which also boosted our motivation.

What are your future plans?

Following the power company change, we plan to reduce power usage in order to further facilitate CO₂ emissions reduction. The Ricoh Group will also help us for this purpose, such as by sending specialists to provide know-how for power usage data analysis. Working with Ricoh, we will make continued efforts to reduce CO₂ emissions and contribute to achieving SDGs to create a sustainable society.

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Support to suppliers’ process improvement

We promote cost reduction programs jointly with suppliers to build long-term relationships of trust based on mutually beneficial cooperation. The programs aim to improve profits (financial statements) at our partners, and involve a range of processes, starting from consensus formation at the top management level among relevant companies, followed by sharing and analyzing information, checking facts and inspecting factories to select issues, executing improvement plans and verifying results.

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Supplier Awards

Every year, we select suppliers that have demonstrated excellent performance related to product quality, delivery time, environmental protection, environmental practices etc. and made significant contributions to the Ricoh Group’s business development. We set Ricoh Group’s criteria and select suppliers with the result of the latest one year. Manager of Head of the Purchasing Department awards the selected suppliers directly and has built up strong relationships with the suppliers and aimed to goal for achievement of SDGs.

Efforts in Biodiversity Conservation

The Ricoh Group recognizes that biodiversity conservation contributes to the establishment of a rich and sustainable society. In 2009, we established the "Biodiversity Policy" to reflect this commitment. Furthermore, in 2010, we developed the "Ricoh Group Regulations on Wood Materials for Ricoh Group Products" (an expansion of the 2003 "Environmental Regulations for Paper Procurement") to prevent deforestation and ensure socially responsible sourcing of raw materials, including labor considerations.

Ricoh Group Biodiversity Policy

Scope and requirement of Regulation of Ricoh Group products made of wood

Conservation of Biodiversity

Addressing human rights issues

Risks associated with human rights are an emerging supply chain management issue. At the Ricoh Group, we request our suppliers to comply with the "Supplier Partner Code of Conduct," which includes the elimination of child labor and forced labor. We also ask responsible individuals to sign the "Ricoh Group Supplier Partner Code of Conduct Agreement Confirmation Form^*", while monitoring their compliance through the periodical SAQ program and requesting improvement efforts as necessary.
In response to the UK’s Modern Slavery Act, which came into force in October 2015, we have posted a relevant statement on the website of Ricoh Europe Holdings PLC, our sales arm in Europe. We also address conflict minerals issues carrying out continued activities, including information disclosure.

Ricoh Europe Holdings PLC 「Modern Slavery Act Transparency Statement」

Human Rights

Efforts to address child labor issues

Child labor is one of the priority issues of the Ricoh Group's TRM (total risk management) efforts, and relevant departments have been engaged in various projects to address child labor issues. The Ricoh Group has already surveyed the compliance with laws that prohibit child labor by manufacturing sites in Japan and abroad. In fiscal 2018, the survey results confirmed that there have been no violations. The SAQ results from supplier companies also confirmed that there have been no reports of child labor violations. We will continue to monitor child labor.

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Addressing the conflict minerals issues

With regard to the responsible supply chain management of minerals from conflict-affected areas and high-risk areas(CAHRAs) like the Democratic Republic of the Congo (DRC) and the adjoining countries, in order that companies respect human rights and avoid contributing to conflict through their mineral sourcing practices, it is expected to cultivate transparent mineral supply chains and companies’ sustainable growth by the righteous decision-making on the mineral resource procurement with a view to enabling countries to benefit from their natural mineral resources and preventing the extraction and trade of minerals from becoming a source of conflict, human rights abuses, and insecurity.

Ricoh Group’s Responsible Minerals Procurement Policy

The Ricoh Group established “Ricoh Group’s Responsible Minerals Procurement Policy” in 2022 to secure transparency in the supply chain with its business partners and ensure responsible mineral sourcing practices because mineral mining or trading in conflict-affected and high-risk areas finances armed groups and fosters conflicts. These activities are also closely related to human rights abuses, labor and important social issues, and other problems such as environmental destruction. As part of our efforts to eliminate the use of potentially conflict minerals, we are calling for the identification and elimination of products sourced from supply chains that include high-risk smelters.

Ricoh Group’s Responsible Minerals Procurement Policy（149KB）

Conducting Conflict Minerals Survey

Ricoh Group is working to improve the transparency of its due diligence by addressing conflict minerals issues referring to the “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas". We ask our suppliers to use the CMRT (Conflict Minerals Reporting Template) and EMRT (Extended Minerals Reporting Template ) formats provided by RMI (Responsible Minerals Initiative) *³. Since 2013, Ricoh Group has conducted an annual Conflict Minerals Survey of suppliers of raw materials and parts used in its products. Our goal is to achieve 100% response rate from suppliers and 100% product-based response in the Conflict Minerals Survey by FY2025.

Step1: Establish strong company management systems
In 2012 the Ricoh Group started an in-house study system to approach conflict minerals issues, and we established a cross functional task force in charge of dealing with conflict minerals issues. The task force, which consists of representatives from relevant departments within Ricoh Group companies, began considering what actions to be taken for the issues. We are continuing these activities, led by the Procurement Division and the ESG Division. Each year we plan and carry out an annual Conflict Minerals Survey. From fiscal 2021, in line with the survey policy of “Achievement of conflict-free sourcing”, we have been started to centrally managing the Conflict Minerals Survey data to improve with the aim of improving the efficiency of collecting responses to this survey. In fiscal 2022, we established the “Ricoh Group’s Responsible Minerals Procurement Policy” and since then we have asked our suppliers to cooperate with the Ricoh Group Conflict Minerals Survey.

〔Education and training on conflict minerals issues〕
At the ESG briefing for suppliers, we address the issue of conflict minerals as one of the themes to ensure that suppliers are provided with information and educational opportunities. In addition, in conjunction with the annual Conflict Minerals Survey, Ricoh Group provides education on the latest legal amendments and other trends related to responsible mineral procurement and Ricoh Group's Conflict Minerals Survey activities to purchasing and procurement personnel at all Ricoh Group global sites. We also produce videos introducing the significance of the Conflict Minerals Survey and Ricoh Group's initiatives on conflict minerals for all Ricoh Group companies and employees to raise awareness.

Step2: Identify and assess risks in the supply chain
From 2013, we have been conducting a yearly conflict minerals survey targeting suppliers of raw materials and components to be used for the Ricoh Group’s products. Until fiscal 2020, we surveyed suppliers of major products such as imaging products. From fiscal 2021, we expanded the scope of our survey to include all products that Ricoh is responsible for producing and selling and asked our suppliers to limit the scope of the survey to those parts and products that Ricoh Group delivers. In addition, considering the growing concerns about unsafe working environments and child labor in recent years in the mining of cobalt, we have been conducting surveys of the supply chain of cobalt since fiscal 2020. We ask suppliers to use the Conflict Minerals Reporting Template (CMRT) and the ,Extended Minerals Reporting Template(EMRT) which provides conflict minerals reporting formats provided by RMI*³.

Step3: Design and implement a strategy to respond to identified risks
From fiscal 2020, we provide information on high-risk smelters to our tier 1 suppliers and encouraging them to switch to RMAP (Responsible Minerals Assurance Process) Conformant smelters. We also ask tier 2 and subsequent suppliers to encourage upstream companies and smelters to switch to RMAP Conformant smelters and obtain certification through tier 1. As a result of the analysis of response information, we are calling on suppliers who indirectly procure from high-risk smelters to switch smelters directly through documents.

Step4: Carry out independent third-party audit of smelter/refiner’s due diligence practices
Ricoh, as a member company of the "Responsible Minerals Trade Working Group", launched in May 2012 by JEITA*⁴, is participating in a Working Group for the entire global supply chain, and studying activities unified in the electronics industry. In 2019, the Ricoh Group participated in the RBA (Responsible Business Alliance) and member companies of RMI, to ask the conflict minerals smelters related organizations in Japan to make inquiries about smelters and promote to be the RMAP Conformant continuously.

Step5: Report annually on supply chain due diligence
Ricoh's activities related to conflict minerals are published annually on its website and in the Integrated Report. We have identified that our toner products are conflict-free.

*3 RMI: Responsible Minerals Initiative; former Conflict-Free Sourcing Initiative (CFSI)

*4 JEITA: Japan Electronics and Information Technology Industries Association

Survey conducted in fiscal 2023 and future efforts

In fiscal 2023, based on the results of a survey conducted for worldwide first-tier suppliers of the Ricoh Group , we identified as accurately as possible each of the parts and raw materials used in the products manufactured or consigned during the year, and conducted a common survey on the use of conflict minerals and received CMRT responses from 98% of suppliers. In the survey of 2023, the Ricoh Group identified 222 smelter companies that have acquired the certification of RMAP Conformant and are conflict-free. The rate of RMAP Conformant smelters to the total number of smelters and refineries identified in the Ricoh Group supply chain was 65% in fiscal 2023. In recent years, as the number of companies surveyed has increased, the number of newly specified smelters and refineries that have not obtained RMAP Conformant has been increasing, while the number of RMAP Conformant smelters has been excluded from RMI certified smelter list. As a result, the ratio of RMAP Conformant smelters has been temporarily decreasing. Therefore, we will continue to call on Tier 1 suppliers to switch to RMAP Conformant smelters. We also expect tier 2 and subsequent suppliers to encourage upstream companies and smelters to switch to RMAP Conformant smelters.
Starting with the fiscal 2021 survey, we requested suppliers to report the scope of their CMRT/EMRT responses not on a company basis (A: Company) but on a part-by-product basis (B: Product) delivered to Ricoh Group. As a result, about 90% of suppliers responded to the questionnaire on a part-by-product basis.

As a result, analyzing the response information from the first-tier suppliers, it was confirmed that there was a possibility that a certain number of products contain parts or materials which originated in the Democratic Republic of the Congo or an adjoining country. Accordingly, the Ricoh Group conducted due diligence on the relevant first-tier suppliers. We will discuss our future business with the suppliers who have not responded to this survey and are judged to require improvement based on the results of the ESG Self-Assessment.

In addition, in fiscal 2020, we began a survey of the cobalt supply chain by identifying major suppliers that had supplied the Ricoh Group with products and parts containing cobalt in the past. With a 97% response rate from suppliers in the 2023 survey, the number of identified cobalt smelters and refineries was 79, of which 45 were RMAP Conformant smelters. We also continue to cooperate with industry organizations, such as JEITA and RMI, and we continue to conduct due diligence.

Participation in External Organizations

Ricoh Group is working with the following organizations in an industry-wide effort to resolve the conflict minerals issues.

• ・RMI: Responsible Minerals Initiative
• ・JEITA: Japan Electronics and Information Technology Industries Association

Supply chain BCM (business continuity management)

The Ricoh Group’s extensive supply chain faces a broad range of external risk factors, such as natural disasters, changes in the international situation, and development of infection. Our customers are particularly aware of this in the wake of the Great East Japan Earthquake. They are demanding, as part of their business requirements, strong risk management capabilities to ensure that their business operations would not be affected even in the event of an emergency. The Ricoh Group's policy is to ensure that customers never have to suspend their work, and we have made our support of social infrastructure operations a high priority. We, therefore, require our suppliers to strengthen their BCM by maintaining redundant production bases and parts procurement channels, and to increase their stocks of materials and components in case of widespread disasters such as those caused by earthquakes, tsunami, floods, fire, accidents or infection including new strains of influenza and COVID-19.

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Supplier Hotline

Ricoh has set “Supplier Hotline” which accepts violations to the applicable laws and regulations, Ricoh Group Code of Conduct, and violations of contract with suppliers caused by Ricoh and Ricoh Group’s officers and employees.

The conduct of officers and employees of each Ricoh Group company is governed by laws and regulations, Ricoh Group Code of Conduct.
If you find that officers and employees of the Ricoh Group has (or may have) breached any of the above rules, laws or regulations, or any contract with you as a supplier, please contact Supplier Hotline with the details.
In addition, please refrain from reporting with improper purposes, such as reporting contents that are different from the facts, reporting contents for purposes of slander, intimidation or business.
In FY2022, we appropriately handled reports to the Supplier Hotline.

Reports to Supplier Hotline are accepted through the report form on this site.(See below)As a general rule, please report under your real name. Anonymous reports are also accepted, but in that case, there is a limit to the confirmation of the facts, etc., and there is a possibility that sufficient investigation may not be conducted.
In addition, please note that we cannot contact you about the results of the response, etc.

Reports to Supplier Hotline are received and the relevant facts are confirmed by the department not in charge of Ricoh’s normal procurement. We conduct corrective actions promptly when necessary. The whistleblower shall not receive disadvantageous treatment by Ricoh Group merely by submitting the report itself.

The personal information collected in this form will not be disclosed to anyone other than to those that have the need to know, to confirm the facts and conduct the investigation, etc. We will only use the information in responding to your requests and for the necessary procedures.
The personal information sent by you will be managed under appropriate security measures and will be managed in strict confidence so that there will be no disadvantage caused to you through the investigations. We will not disclose or provide the information to third parties without your prior consent.
The personal information and requests collected in this form will be used to the extent necessary for confirming the facts and conducting investigation, and will be shared amongst the Ricoh Group related departments for the purpose of responding to your request, confirming facts and conducting investigation, and for improving the quality. Please refer to the “Handling of personal information” about how we handle your personal information.

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