Strategy -Information Disclosure Based on TCFD Framework Identified risks and action against risks- | Global

Identified risks and action against risks

In fiscal 2019, we evaluated risks identified by the scenario analysis on the two axes of financial impact and urgency.

The financial impact is evaluated on three levels of large, medium, and small (tens of billions to hundreds of millions of yen), and the urgency is also evaluated on three levels based on the timing when risk may appear: high, medium, and low (within 1 to 5 years or more).

Based on the results, we consider countermeasures at the Risk Management Committee, the ESG Committee, and the Group Management Committee, in which executives participate.

Identified risks and action against risks

	Impact on Ricoh’s Business	Financial Impact	Urgency	Ricoh’s action
Transition risks
Carbon taxes and emissions trading systems applied to suppliers	Carbon pricing (carbon tax/emissions trading) will be applied mainly to material suppliers with high GHG emissions, and the price will be passed on to raw materials, and procurement costs will increase. The impact of carbon pricing on the Ricoh Group is minimal (we have set an SBT target and are implementing planned GHG reductions).	Medium	Low	Promoting resource conservation Reducing new resource inputs by sales of recycled machines and utilization of recycled materials Promoting supplier supporting activities Actively supporting suppliers' decarbonization activities and addressing the risk of procurement cost increase
Response to accelerated transition to decarbonized society by consumers and investors	Due to the advanced demands for achieving the target of 1.5°C and achieving RE100, additional costs for implementing measures such as energy saving/renewable energy facility investment and switching to renewable energy are incurred.	Small	Medium	Promoting decarbonizing initiatives Active promotion of energy-savings and renewable energy initiatives to achieve SBT 1.5℃. Financing by sustainability linked loans
Physical risks
Rapid increase of natural disasters	Due to climate change, extreme weather has become more severe, causing more wind and flood damage than expected at primary production sites (China, Thailand, Japan). Production stops and sales opportunity losses due to disruption of the supply chain, etc.	Medium	High	Strengthening business continuity plans for flooding, heavy rain, and typhoons Disaster countermeasures at production sites Formulation of business continuity plans for procurement/distribution systems
Regional epidemics of infectious diseases	Impact on production plans due to parts supply disruption Insufficient inventory due to lower operating rates at production sites Decrease in sales opportunities due to difficulty of face-to-face business	Medium	Low	Strengthening business continuity plans for infections IT-based operation and negotiation Decentralization of production bases/Automation of processes Additional stock of parts and products
Declining forest resources	Forest damage such as caused by forest fires and increase of pests due to global warming results in deterioration of stable supply of paper raw materials and leads to a rise in paper procurement costs.	Small	Low	Promoting Green Procurement Using certified paper based on managed forest materials Promoting resource conservation activities Reducing base paper usage by silicone-top linerless labels and rewritable paper

Opportunities for climate change

For Ricoh, which has practiced environmental management for many years, we recognize that climate change leads not only to business risks, but also to opportunities to increase corporate value as well as the product and service values we provide.
These opportunities are providing products and solutions that support customers' decarbonization by utilizing energy-saving technologies and services, expanding sales of solutions contributing to the fight against infectious diseases, expanding businesses in environment and energy fields, and creating new businesses. At this point, they have already grown into businesses worth 1 trillion yen. We will continue to provide services and solutions that contribute to solving social and customer issues.

Opportunities for 2030	Current efforts
Expanding sales of services and solutions to support customers’ decarbonation efforts (Mitigation)	Providing energy-saving products that greatly exceed the environmental label standards Providing decarbonization support solutions Providing office optimization solution 【Financial impact - FY2019 results】 Sales of products contributing to society's decarbonization (Energy Star certified products): approx. 1,100 billion yen
	b0b体育app下载【Financial impact - FY2019 results】 Sales of major business deal with ESG aspects: approx. 12 billion yen
Expanding sales of solutions for infections (new normal) (Adaptation)	Providing remote medical treatments, education, interviews, and workstyle reform solutions that reduce infection risks 【Financial impact - FY2019 results】 Sales of solution packages for infectious disease reduction and decarbonization: approx. 30 billion yen
Expanding environment and energy businesses (energy creation / storage / conservation)	Expanding products and parts recycling business Reuse and recycling of collected used products 【Financial impact - FY2019 results】销售的产品和部件bob软件苹果怎么下载recycling business: approx. 36 billion yen
	Expanding energy creation and energy-saving businesses Electricity sales with low CO2 emission coefficient (including RE100 menu) Solar power O&M Lighting/air conditioning control systems 【Financial impact - FY2019 results】 Sales in energy creation and energy saving businesses: approx. 30 billion yen
Creating and developing new businesses	Development and sales of alternative plastic materials 【Future prospect】作为塑料容器和packag替换ing materials, we will start shipping samples of foamed PLA, a biodegradable plant-based resin, in 2020. We aim to expand this material globally by selling materials to a wide range of industries including Ricoh products, providing manufacturing solutions, and licensing production.
	Development and sales of dye-sensitized solar cells 【Future prospect】 Aiming to expand sales by deploying dye-sensitized solar cells, a type　of energy harvesting, in various applications.
	Development and sales of silicone-top linerless labels,rewritable laser systems, andlabelless printing 【Future prospect】 Aiming to expand sales by contributing to reduction of paper consumption and waste by providing labels without paper liners and label-less printing.