Information Disclosure Based on TCFD Framework
Scenario Analysis and Results

Scenario analysis and results

In FY2019, we continued to conduct scenario analysis as we did in the previous year. The business risks and opportunities for infectious diseases related with climate change have been added to the scenario analysis assessment, especially since COVID-19 is having an enormous global impact. In assessing business risks, we assumed that epidemics of mosquito-borne diseases have occurred every 10 years in the past, and that an epidemic would occur in Asia, where Ricoh's sales are the largest among the three regions, where many infections have occurred, of Africa, Asia, and Latin America. Because our production BCP was functioning despite the COVID-19 epidemic, we estimated the financial impact based on the amount of lost sales opportunities because of COVID-19.
In addition, a cross-organizational workshop was held to discuss the risks and possible responses to the increasing number of natural disasters that occur every year, and to examine the risks and countermeasures for our supply chain, including our own sites.
Furthermore, while working on environmental sustainability management for many years, we have reorganized the opportunities that we have obtained by actively responding to climate variability and the opportunities that are expected to grow in the future, and summarized the results and future outlook for fiscal 2019.

As a result of scenario analysis, we see that global climate change has progressed, abnormal weather has become frequent and severe, and it has become an urgent issue for Ricoh that a large business impact may occur if we fail to take measures. Although the risk of infectious diseases related with climate change is not urgent, once it does occur, it will cause a large financial loss, so it was confirmed that it is necessary to continue to strengthen BCP.
Meanwhile, active response to climate change mitigation and adaptation will provide opportunities in the printing business to provide products and solutions that support customers' decarbonization by utilizing energy-saving and resource-saving technologies and services. We also reconfirmed that solutions against infectious diseases bring new value to new normal working styles and have great potential for business expansion and creation of new businesses in the environment and energy fields.

Based on the above results, we reviewed the environmental goals for 2030, and in March 2020, we set a new GHG reduction target in line with the SBT 1.5°C standard that requires a higher reduction rate. By developing measures based on the GHG emissions reduction roadmap to 2030, we are ready to respond without delay to a carbon tax and changes in consumer and investor behavior that will accompany an early transition to a zero-carbon society.
We will continue to promote our climate change initiatives by conducting scenario analysis periodically to identify and promptly address climate change risks and assess opportunities. We will also continue to discuss the theme with our stakeholders to improve our approach and information disclosure.

Scenario analysis processes