Ricoh UK Sustainability Report 2014

ricoh.co.uk

Introduction ..................................... 04

Corporate Activities ......................... 12

Environment .................................... 18

People ............................................. 26

Community ...................................... 34

About Ricoh UK ............................... 39

Scope of this Report

The Ricoh UK Sustainability Report covers the operations and employees of Ricoh UK Ltd and is produced annually. The results featured in this report relate to the financial year from April 2013 to March 2014, and the various initiatives described relate to the period from April 2013 to November 2014.

Ricoh UK Ltd is a wholly owned subsidiary of Ricoh Europe PLC. Ricoh UK Ltd has more than 2,600 employees working nationwide across the United Kingdom. Ricoh’s manufacturing facilities in Telford and activities with partners are not included within the scope of this report. Further details of these activities can be found in the Ricoh Group Sustainability Report. Audited financial figures are published in the Ricoh Group Annual Report. Both reports can be downloaded from www.ricoh.com

This report highlights Ricoh UK’s performance during the financial year ended 31st March, 2014 and previous periods. The Company makes every effort to ensure the accuracy of the data included herein, but undertakes no obligation to update this data subsequent to publication.

Your Feedback

If you have any comments, opinions or suggestions regarding this report, please contact Ricoh UK via the ‘Contact’ section of our website http://www.ricoh.co.uk/support/contact-ricoh/index.aspx

Contents

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Chief Executive Officer’s Statement

Welcome to Ricoh UK’s annual sustainability report which highlights details of our economic, social and environmental achievements during FY2013 andinto 2014.

As society and the economy experience a greater number of significant changes, such as advances in Information and Communication Technology (ICT), manifestation of resource and energy issues and development of globalisation, the Ricoh Group is facing a turning point in its business strategies. Specifically in one of our core business areas, Imaging and Solutions, we have recognised trends in customer demand,which include:

• Improvement of workflow and reduction of total cost of ownership (TCO)

• Shift from “owning equipment” to “using services”

• Higher awareness of environmental conservation in order to realise low-carbon offices

To meet these new demands, it has become more important for us to combine multiple products and services to be offered as a set solution for the specific challenges of individual customers.

The work styles of our customers are also changing. As greater amounts of information are being digitised, use of cloud computing, smartphones and tablet PCs has been rapidly spreading.

As a result, communication media are diversified and the costs for information sharing have been drastically reduced. Diverse ways to generate, store, search and use information have allowed significant advancement. Now demands are being shifted to new products and services that can supply a good work environment wherever and whenever theyare required. Phil Keoghan

Chief Executive OfficerRicoh UK Ltd

Introduction

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Presently, society demands that global companies playa role not only as entities that generate economic valuebut also as organisations that make contributions toward solving issues facing the Earth and its people, as well as in creating a sustainable society. At the same time, elements influencing corporate activities are experiencing increased diversification and expansion in their range of effects. Now, not only companies themselves, but also their business partners are being affected.

In order to correctly respond to these changes in the demands of customers and society, the Ricoh Group plans and implements management strategies that are based on three key elements: “economy,” “society” and the “environment.” We work to both further the growth of the Group and to create a sustainable society.

Our goals for the 18th MTP (implemented from financial year 2014 to 2016) are to “strive for a global brand, create a future with new innovation and achieve ‘growth’ and ‘restructuring’ simultaneously.” Under these goals, we work on two basic strategies: “business creation and integration” and “establishment of highly effective management.” The Ricoh Group will put these basic strategies into practice to rebuild a business structure that will support further growth of the Group. Exercising our collective imagination to design a future, we will keep working on building innovation that will exceed the expectations of our customers.

As an integral part of the development of these strategies, research has demonstrated that the need for a “services- led” proposition will outgrow the demand for ‘traditional’ equipment sales. We have structured a process to communicate this change to our dealer-partners, and as a result, will help to ensure their own growth and sustainability.

Thank you for taking an interest in this report.

Phil KeoghanChief Executive Officer, Ricoh UK Ltd

The 18th Mid-Term Plan (MTP)

A ‘global’ brand, new innovation, growth and restructuring

The Ricoh Group launched its 18th MTP in April 2014 with a set of specific aims. It leads with creating a truly ‘global’ brand; one that resonates our core values and commitment to helping build a sustainable society.

Our ‘imagine. change.’ corporate strap-line summarises our approach to developing innovations that improve lives. And, in order to grow, we plan and restructure our activities in accordance with the demands of our markets and the needs of the global population.

Ricoh’s Sustainability Strategy

Corporate Responsibility (CR) is ingrained in our corporate values and integrated into the very heart of how we do business.

Our CR strategy dovetails with our Corporate Philosophy developed by our founder, Kiyoshi Ichimura. His twin vision is simple: ‘To innovate on behalf of our customers and to pursue sustainable business practices on behalf of every life we touch’. This vision is an underlying principle in our business.

For us, sustainability is about developing a business model that delivers lasting value for all stakeholders. Our products are designed to meet the ever-changing needs of our populations, catering for all abilities with specific focus on the following:-

• Operating accessibility

• Visual accessibility

• Wheelchair accessibility

• Aging accessibility

With outstanding corporate success comes great social responsibility. If we are to continue to grow and prosper, we must strive to be a ‘best-practice’ example of corporate citizenship.

“We add value as a business partner, provide a secure future for our employees and preserve the resources of the communities around us”

We are equally committed to fulfilling our economic, social and environmental responsibilities, and ensure we co-exist in the communities we operate in.

The Three P Approach

Our CR Strategy is defined in the “Ricoh CR Charter” that was established in 2003 and developed to integrate Ricoh’s core values and the ten principles defined in the UN Global Compact into our daily activities. We take a three ‘P’s’ approach to

sustainability: People, Planet and Profit. This ensures our business model is maintained and continuously improved to support our CR, businessand environmental objectives.

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Our commitment to CR is publicly recognised

For ten consecutive years, Ricoh has been named oneof the Global 100 Most Sustainable Corporations inthe World.

Our ‘tall order’ target to reduce CO2 emissions by 20% was achieved in 2010 and we are on track to fulfil our long term vision to reduce environmental impact by 87.5% by 2050. And through our Total Green Office Solutions, we also help our customers to accomplish their own targets.

In order to benchmark our CR activities against best practice, we have submitted annually to the Business in the Community CR Index since 2009, scoring 96% and achieving 4 Star status in the 2014 CR Index. Feedback from the annual process is reviewed by our Sustainability Committee and areas for improvement are prioritised and included in our Corporate Responsibility (CR) strategy.

Additionally, we have evaluated ourselves using the guidance provided by ISO26000, to identify how well we are aligned with the applicable core subjects and issues of social responsibility included in ISO26000 guidance standard and, where necessary, to identifyany areas for improvement.

Supporting the UN Global Compact

Ricoh Company Ltd. signed the UN Global Compact (see below) in 2002 and maintains its commitment to ensuring these principles are observed in all operations globally. To ensure this, Ricoh has defined the “Ricoh CR Charter” and the “Ricoh Code of Conduct”. These have been communicated to all employees and are

expected to be actively implemented and observed atall times.

In December 2008, Ricoh Europe PLC signed the UN Global Compact on behalf of all Ricoh sales companies across Europe to show Ricoh’s on-going support and commitment to the development and promotion of a sustainable society.

The Ten Principles of the UN Global Compact

The Ricoh Way

“The Ricoh Way” is a global philosophy and set of core values shared amongst all Ricoh Group companies, and is the foundation of Ricoh’s daily business operations. It consists of Founding Principles, Mission, Vision and Values. These components demonstrate Ricoh’s

drive to provide excellence, innovation, continuous improvement and value to its customers.

The Ricoh Way values are:-

• To have a winning spirit

• To show dedication to innovation and teamwork

• To demonstrate a customer centric focus

• To commit to the highest standards of ethics and integrity

These values are set for all Ricoh employees to follow and embrace throughout their employment. The Ricoh Way acts as a guide to how we want to be perceived, and is integral to our brand.

The Ricoh Code of Conduct

The Ricoh Group Code of Conduct is intended to establish the basic standards to ensure that executives and employees of the company, when engaging in corporate activities to advance the Ricoh Group, shall act in accordance with social ethics and in full compliance with the law

The Code of Conduct is grouped under the four principles of integrity in corporate activities, harmony with the environment, respect for people, harmony with society. These four principles define how Ricoh UK manages its global activities in a sustainable and responsible manner.

Ricoh Founding Principles ‘The Spirit of Three Loves’

Love your neighbourLove your country

Love your work

Kiyoshi Ichimura, Founder

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Ricoh expects that employees:-

• Observe the relevant national and regional laws at all times

• Maintain high ethical and moral standards

• Observe the rules and regulations established by Ricoh UK

• Make every effort to ensure the maximum possible customer satisfaction

• Seek to maintain creativity and think independently so we continue to add value

• Understand the other person’s views by “putting ourselves in their place”

• Seek to ensure the progress of the company is fully consistent with the personal happiness of its people

Ricoh is committed to ensuring our employees:-

• Have the opportunity to learn, develop and grow, not only in a work context but also as individuals

• Provide support to improve existing skills and develop new ones

• Have a fair and impartial system for evaluating and recognizing their individual skills and abilities

• Have a safe, pleasant and functional working environment

Corporate Responsibility (CR) Charter

To enable us to grow as a respected enterprise, all companies within the Ricoh Group must plan their Corporate Responsibility (CR) within a consistent global framework and throughout all operations. To ensure this, the following principles are to be observed, with the proper social awareness and understanding, compliant with both the letter and the spirit of national laws and the rules of international conduct.

Integrity in Corporate Activities

1. Every company in the Ricoh Group will develop and provide useful products and services, with high quality, safety, reliability and ease of use, while maintaining security of information and giving proper consideration to the environment.

2. Every company in the Ricoh Group will compete fairly, openly and freely, maintaining normal and healthy relationships with political institutions, government administration, citizens and organisations.

3. Every company in the Ricoh Group will take responsibility for managing and safeguarding its own information and that of its customers.

Harmony with the Environment

4. Every company in the Ricoh Group will take responsibility, as a citizen of the world, working voluntarily and actively to preserve the environment.

5. Every company in the Ricoh Group, and all employees of each company, will seek to implement technological innovations that reflect environmental concerns and will participate in ongoing activities to preserve the environment.

Respect for People

6. Every company in the Ricoh Group will maintain a working environment that is safe and that makes it easier for its staff to perform their duties, respecting their richly individual characteristics and encouraging their autonomy and creativity.

7. Every company in the Ricoh Group will respect the rights of all those connected with it, and will seek to create a cheerful working environment, free of discrimination.

8. No company in the Ricoh Group will permit forced labour or child labour, and none will tolerate the infringement of human rights.

Harmony with Society

9. Every company in the Ricoh Group will, as a good corporate citizen, actively engage in activities that contribute to society.

10. Every company in the Ricoh Group will respect the culture and customs of its country or region, and will operate so as to contribute to their development.

11. Every company in the Ricoh Group will engage in the fullest possible communications with society, seeking actively to provide proper and unbiased disclosure of corporate information.

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Management Ownership of Corporate Responsibility

Ricoh UK measures it CR performance annually via participation and scoring in the independent BITC CR Index, and awards the CEO and all directors and managers a performance-related bonus.

The CEO & Board’s remuneration package is 70% salary and 30% performance-related bonus against business targets. 5% of bonus is in regard to CR performance across a number of variables.

CR & Sustainability Committee

Ricoh UK formalised a Sustainability Committee in 2011 which meets regularly to coordinate its CR operations. It includes several members of the Board and key subject matter experts.

• Phil Keoghan, Chief Executive Officer

• Rebekah Wallis, Director of People & CR

• Rick Hewitt, Finance Director

• Chas Moloney, Marketing Director

• James Deacon, Head of CR

• Mike Baddeley, Head of Business Excellence

The role of the Sustainability Committee is to:-

• Develop CR policies and strategies that will effectively implement Ricoh’s CSR Charter, at a national level

• Co-ordinate the implementation of CR policy and strategies across Ricoh UK

• Agree and implement appropriate balanced scorecard measures to report progress on the key initiatives

• Ensure the availability of sufficient resources to achieve set objectives and targets

• Communicate all policies, targets, initiatives and achievements to relevant stakeholders

• Promote, encourage and support all sustainability activities within all business divisions and through our key suppliers and partners

The members of the Sustainability Committee meet regularly to discuss progress and use the most appropriate technologies to minimise the environmental impact of these meetings. The actions and initiatives agreed within the committee are communicated to the rest of the Management Board through monthly meetings. These are cascaded to employees through various communication methods including our intranet and monthly podcasts.

BiTC (Business in the Community)CR Index

As depicted in the Sustainability Wheel graphic, our key focus areas are aligned to the BiTC CR Index.

Phil KeoghanChief Executive Officer

Responsible for all aspects of our CR strategy and objectives

Rebekah WallisDirector – People & CR

Responsible for employee development, wellness & engagement, environmental impact,workplace management & community investment

Rick HewittFinance Director

Responsible for Corporate governance, management of business & commuting travel and supplier verification

Chas MoloneyMarketing Director

Responsible for marketplace management, customer engagement and customer centricity

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We use this to inform and educate our employees and ensure we are improving our key performance measures year on year. These measures are reported in the annual CR Index submission.

Measures and targets for these areas have been set by the Committee, and their respective performance is reported through our sustainability dashboard, developed in 2011.

Business Excellence

Ricoh recognises that being a customer-centric organisation requires on-going self-reflection. This enables us to respond intelligently to the ever-changing needs of our customers and essentially deliver value from their perspective.

We gather feedback from all stakeholders and ‘voice of the customer’ targeted surveys; this data is used to identify and drive process improvement within the business, which helps to shape our strategy.

Ricoh ensures that it is an efficient and effective organisation by using a number of world class frameworks. This includes: Strategy maps, Balanced

Scorecards, management systems, EFQM Excellence Model, Investors in People, ISO9001, ISO 14001, BS EN 18001, ISO 27001 etc. These are embedded within our organisation at a regional and local level, which has been recognised on numerous occasions through international awards.

In 2013 we extended the scope of our Process Improvement department to include Business Excellence. Although both departments had always worked well together, by integrating we have ensured complete alignment of strategic initiatives for both Business Excellence and Process Improvement, resulting in an integrated, lean, visible end to end business excellence process.

Change Management

Our organisation is continually going through change as the markets in which we operate help steer the direction of our organisation. To ensure our employees understand and embrace change, we have a dedicated change management programme, tools and resource, within our People & CR Division. Our change management programme is run in conjunction with our Lean Six Sigma process improvement programme.

Our Lean Six Sigma programme (LSS) has been such a success that our European Head Office has now adopted our programme and is in the process of deployment across their European operations.

Ricoh UK has 83 Lean Six Sigma red belt, 27 green and 8 black belt trained employees. There are currently 46 LSS projects in progress, with on-going support provided by our LSS experts.

Projects are monitored through our Process improvement dashboard with quarterly progress updates provided to our LSS Steering Committee.

Key focus areas for 2014/15 are:-

• Implementation of an integrated management system

• EFQM Recognition for Excellence external assessment

• Development of an in-house Ricoh Excellence Model in which departments will be assessed against set criteria including: Continuous Improvement, Quality (ISO9001), Health & Safety, ISMS (ISO27001) and BCP & DR

• Implementation of 18th MTP strategy performance through balanced scorecards bespoke per business division

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Awards & Recognition

We are very proud that Ricoh’s activities in Corporate Sustainability have received the following external recognition:-

• Awarded 4-Star status within the Business in the Community 2014 CR Index, scoring 96%

• Awarded Silver Patron status by The Prince’s Trust, in recognition of our commitment to helping

disadvantaged youngsters into the workplace

• Mike Baddeley, Head of Business Excellence for Ricoh UK Ltd, awarded the Business in the Community’s Marks & Spencer Sieff Award for the next generation of Sustainability business leaders

• For the 10th consecutive year, Ricoh was selected as one of the “Global 100 Most Sustainable Corporations in the World” by Corporate Knights

• Achieved the Customer Service Excellence accredited standard

• Scored 600+ points and achieved Finalist status in the UK Excellence Awards

• Achieved Investors In People Gold accreditation level

• Achieved Silver status within the Business in the Community 2013 CR Index, scoring 88% and ‘Most Improved Applicant’ status

• Made an inaugural appearance within the Dow Jones

Sustainability Index

• Recognised by FTSE4Good Index for meeting high standards for the 10th consecutive year. Our environmental management approach was rated as “Best practice”

• For the 9th consecutive year, Ricoh was selected as one of the “Global 100 Most Sustainable Corporations in the World” by Corporate Knights

• Selected as one of the World’s Most Ethical Companies for the 5th year in a row by the Ethisphere Institute

• Achieved Bronze status within the Business in the Community 2012 CR Index, scoring 77% in only the second year of entry

• Ricoh’s Private Cloud wins ‘Project of the Year’ in Green IT Awards

– ‘Best Cloud / Virtualisation Project of the Year’ awarded to the Ricoh and Infosys design and implementation team

• Awarded ‘Prime’ status by oekom research and recognised as one of the “World’s Best Office Electronics Companies in Social and Environmental Performance”

• Successfully recertified to the Carbon Trust Standard, recognising year on year improvement in carbon management and reduction in carbon emissions

• Appeared in the ‘Top 60 List’ in The Sunday Times Best Green Companies Awards

• Achieved Investor In People accredited status

• Won Sustainability Good Practice Competition 2011 organised by EFQM (European Foundation for Quality Management)

2014

2013

2012

2011

Cert no: FS 33325 Cert no: EMS 61761 Cert no: OHS 556746

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Working diligently with our partners and suppliers, our focus is on achieving the highest standards of global citizenship, compliance, and corporate governance.

Our Code of Conduct provides a structured model that guides our training and awareness programmes, and enables us to help ourpeople fully understand

their role in meeting these standards.

We continually review and audit our processes, and actively seek new ways to ethically sustain our business activity.

Honesty, integrity, and respect for people and the environment are at the very core of everything we do.

Our Strategy

The Ricoh Way, Ricoh Code of Conduct and Ricoh CSR Charter provide the cornerstones in defining our principles, values and corporate ethics. Our commitment to meeting the demands of our stakeholders is matched by our drive to create a corporate culture that ensures the welfare of society and the communities around us.

Total Risk Management

In order to meet the expectations of our stakeholders, we have developed guidelines and strategies that manage our corporate integrity. This includes the coordination of our legal compliance, risk management strategies, and the maintaining of our ISO standards.

To help us achieve this, we have developed the ‘Total Risk Management’ framework which identifies key risk areas and the stakeholder groups affected by them.

The Annual Assessment

The purpose of the Annual Assessment is to review the effectiveness of our policies and strategies, minimise risk, and to ensure that our practices meet the demands

Corporate Activities

Rick Hewitt, Finance Director

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of the changing business environment and the needs of our customers.

We never forget that it’s our customer-base that ultimately drives our success. Therefore, we use the skills and expertise of Ricoh as a whole, to strengthen our proposition and provide services that are fully geared towards ensuring their own success.

The internationally recognised ISO9001 standard is held by Ricoh Group factories, Ricoh UK Ltd and our ‘major’ Operating Companies. It provides an assurance of best-practice quality management.

In addition to this, all of our worldwide Operating Companies are certified to ISO27001for Information Security Management.

These attributes enable us to provide technologies and services that are reliable, secure, intuitive and provide the customer with an experience that exceeds their expectations at every stage of the sales cycle.

Legal Compliance

It’s imperative that our employees have a full understanding of European and UK legislation. For the past six years Ricoh UK has been developing a complete compliance training programme that focuses on these areas of law: data protection, competition law and bribery and ethics.

These modules take the form of regular workshops, and are carried out across Europe by our Legal team. They use real-life scenarios and case studies to illustrate our obligations, and refresh these elements on an annual basis. The work that we do to educate our workforce doesn’t stop at our door. The fundamental objective is to ensure that we consistently provide service excellence, with a current focus on sales documentation.

Our Compliance Committee

A dedicated team of Board Members makes up our pan-European Compliance Committee. They meet twice a year, and their role is to review our policies and internal audit reports.

In order to harmonise common standards across all Ricoh Operating Companies, a Legal Manual has been created to use throughout EMEA, and details how to manage legal and regulatory risks. Group Legal monitors our compliance with the Legal Manual and carries out audits to identify areas that can be improved. In addition, they instigate periodic surveys to check that all of our Operating companies use and adhere to its protocols.

Bribery and Corruption

Ricoh works strictly in accordance with the United Nations Global 10th Principle and complies with the anti-corruption laws in the countries we serve. An

appointed pan-European Anti-Corruption Officer (ACO) is tasked with the ongoing review of our Anti-Corruption and Gifts and Hospitality Policies. To support this role, each Ricoh Operating company has its own national ACO who monitors the risk log where escalations can be recorded.

We have a zero-tolerance policy to all nefarious activity and are committed to setting a good example to the international community. The Ricoh Global Code of Conduct expresses the seriousness of our intention and can be downloaded from our website: http://www.ricoh.co.uk/about-ricoh/our-principles/csr/our-policies/

Financial Reporting

We document and map our financial processes in line with the requirements of Sarbanes-Oxley Act.

This ensures the accuracy and reliability of our reporting and allows us to establish controls to effectively manage financial risks. In order to make doubly sure of our compliance, our processes are externally audited by KPMG.

Whistle-blowing

Sarbanes-Oxley has a set of regulations that require us to provide a whistle-blowing service to all our employees. We strictly adhere to these policies; and, in tandem, have created a Whistle blowing policy which gives guidance to our workforce in the event that they should have a concern that effects the reputation of the Ricoh Group.

Establish policies

PlanningRisk AssessmentRisk Treatment

Risk ManagementProgramme

Monitorand Review

ReportingIncident Management

Audit

ImplementationOrganisation

ResponsibilitiesTraning

CommunicationDocumentation

Emergency Response

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Areas of concern include:-

• Criminal offences that have been, are being or are likely to be committed (for example fraud, financial irregularity, corruption, bribery or blackmail);

• Failure to comply with a legal or regulatory obligation in the local jurisdiction;

• Improper accounting and auditing related matters;

• Miscarriage of justice

• Endangering the health and safety of an individual

• Endangering the environment

• Concealment of information relating to any of the above

The policy enables our employees to raise genuine concerns at an early stage through either an internal reporting procedure or through a third party Hotline Reporting Procedure. There have been no whistle-blowing incidents recorded in the last four years.

Information Security

We consider it a genuine honour to be entrusted with sensitive business information provided by our customers. This trust has been earned as a result of our core capabilities in: Managed Document Services, Production Printing, Office Solutions and IT Services.

The global certification ISO27001 ‘Information Security Management System’ has been awarded to us, and provides additional assurance of our ability to keep our customers’ information, confidential. This certification was originally established in Japan in 2004 (certificate no. IS95241).

To continue our certification for Ricoh Group, we have a programme that conducts annual, worldwide audits.

Security Management System (ISMS)

Ricoh UK work in partnership with our Accredited Certification Body, British Standards Institute (BSI) and our EMEA regional parent company Ricoh Europe PLC. The focus of this partnership is to maintain and improve our Information Security Management System (ISMS).

As our business evolves, the need to protect information grows. A coordinated annual audit programme is conducted on every Operating Company by either BSI or a certified Lead Auditor from Ricoh Europe PLC, and is overseen by a nominated manager. This appointed manager is also responsible for overseeing the continued improvement of our ISMS.

Ricoh UK has a Local Information Security Committee (LISC) who are responsible for reviewing any ISMS incidents, feedback from internal and external audit reviews and creation and implementation of new ISMS policies and procedures.

Training

We have an annual e-learning module which provides an overview of our ISMS, and tests employees on their understanding of its policies. In 2014/15 further modules will be developed that deliver content on specific elements of the ISMS within Ricoh UK.

Employees are required to pass the original module and will be required to show an understanding of the follow up modules. These policies and procedures are reinforced through our intranet, and an ISMS handbook provides employees with an easy to follow ISMS high level overview.

During FY13 & 14 no major non-conformances were identified through external audits. Both BSI and Ricoh Europe have recognised our high standards in managing ISMS.

Our key activity for 2014/15

• Integrate our Quality, Environment and Health & Safety management systems (ISO9001, ISO14001 & BS EN 18001 soon to be replaced with ISO45001)

• To become certified to ISO22301 for Business Continuity

Product Safety and Security

We assess the health and safety impacts of our products throughout all stages of their lifecycle. This starts with the original concept and continues through manufacturing, marketing, distribution, customer use; and lastly, recycling.

Safety is considered an absolute priority, and as such, Ricoh have developed a Product Information system which itemises all environmental and health & safety performance aspects of our products. This system streamlines the process of complying with all legal aspects relating to these criteria.

In February 2010, we obtained the world’s first Common Criteria (CC) authentication, conforming to the IEEE 2600.1 Protection Profile, with its imagio MP 5000 SP/4000 SP (released in February 2008). IEEE 2600.1 is an international standard for security functions of hardcopy devices, including multifunction devices and printers. To assure our customers of the security of our products, we offer a broad line of CC-authenticated products that comply with IEEE 2600.1. For more information, see the Ricoh Products authenticated with CC (ISO/IEC 15408)

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RoHS (Restriction of Hazardous Substances)

The RoHS dictates that if an electrical or electronic product contains six, key hazardous substances, (as defined in its regulations) it cannot be entered into the marketplace. Ricoh not only ensures that all of our products comply with RoHS but we have actively banned an additional six substances which are not currently covered.

REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) is an organisation that requires the registration and management of all chemical substances used in business. Ricoh has taken this a step further by forming a rigorous Chemical Substance Management System that extends throughout our supply chain.

Procurement

In January 2006, the Ricoh Group set up the Ricoh Group Supplier Code of Conduct. All of our suppliers are required to comply and to make efforts in reaching for a better society and global environment, and sustainable development of society

The code of conduct includes clauses on human rights, which are in accordance with the UN Global Compact and the International Labour Organisation (ILO). They include the prevention of child labour and a commitment to environmental conservation.

Within the UK we have a central procurement toolkit which contains: key processes, template documents and checklists for procurement activity. It ensures that we are meeting our stated procurement objectives throughout the procurement process. This starts with initial recognition of customer needs through to contract award, ongoing contract management and benefits reporting.

Environmental Management System (EMS)

The Ricoh Group purchases materials and parts used to manufacture products in line with Green Procurement Standards. As part of our efforts to help suppliers promote environmental protection, we have developed Environmental Management System (EMS) and Chemical Substance Management System (CMS) Guidelines to help the suppliers establish their own EMS and CMS aligned with those of the Ricoh Group. These guidelines are used to provide suppliers with training and education as well as support in operating the management systems.

Customer Insight

Ricoh has two separate channels that enable us to deliver our products and services. The Direct Sales channel, and for our network of Distributors and Dealers, we have an Indirect Channel.

We are perfectly set up to serve businesses of every size, from SMEs to Fortune Global 500 companies.

Improving the Customer Experience

As well as recognising the rational side of the customer experience, we look for ways to improve the emotional aspect. We have a group of senior managers from across Ricoh UK who form our Customer Centricity Leadership Group. They are tasked with improving the overall customer experience in line with The Ricoh Way values.This includes acting as role models and ‘change agents’ and effectively mentoring our employees into putting the customer at the heart of everything we do.

The group meets periodically to exchange knowledge, update one another on progress, and to report the outcomes to the Board of Directors.

We use a range of ‘voice of the customer’ surveys to gather feedback from our customer groups to help us to understand how we are performing, what additional services need developing, and areas where we need to improve.

In October 2014 we were successfully third-party audited and accredited to the Customer Service Excellence Standard, recognising our integrated and company-wide approaches to ensuring that our customers experience outstanding levels of service, responsiveness and satisfaction.

European Customer Survey

Every year, Ricoh runs a survey to understand what influences ‘decision makers’ in larger organisations (minimum of 50 FTE). This was originally launched in 2007 and relates specifically to finding out what they look for when considering office solutions suppliers.

We use the services of TNS to conduct the survey, simultaneously across ten countries: Belgium, France, Germany, Italy, the Netherlands, Poland, Spain, Sweden,

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Switzerland and the UK. The survey also determines how satisfied organisations are with their existing suppliers.

Specialist Surveys

We value feedback from IT Managers, Account Managers and our network of dealers and distributors.

They give us valuable insights into how our products are performing in the real world. Depending on the topic, sales channel, market or target audience, we’ll hand pick a research company to conduct the research. The findings of those surveys are then used to improve our approach to product development.

Event Driven Surveys

Knowing what a customer’s experience of a specific action is like is essential in improving our services across the board. An example of this is what we call our ‘Service Call’ survey. It’s conducted by an external research company called Marketii, and is carried out across all Ricoh Operating Companies in the EMEA region.

These surveys are triggered when a customer calls one of our Service centres. The feedback is presented to us within a few days of the call being made, and provides us with a comprehensive report of their experience.

We utilise something called the ‘Net Promoter’ score. This measures our overall customer satisfaction and feedback. The results are then benchmarked against our Ricoh European Operating Companies, which we currently remain the leader of.

Corporate Activities

Complaints Management

There isn’t an organisation in existence that is perfect; and from time to time things do go wrong. We believe that the measure of a good company is not determined by the problems they do or don’t cause, but by the way they resolve problems when they do occur.

Our dedicated customer care team responds rapidly to all complaints and queries and uses the Ricoh Query Management system to track all queries, right through to resolution. The system doesn’t just help us to help the customer, but provides insights that assist us in avoiding making the same mistake again.

When a complaint is dealt with, we don’t just want the customer to be satisfied with the outcome, we want them to see that Ricoh is a company that works diligently to provide the best customer experience in the market. If a complaint is dealt with effectively, it can turn an occasional customer into a regular one.

Part of our process is to discuss the complaints we receive at the highest level, which includes the CEO at Ricoh UK and the Board of Directors at Ricoh Europe. The end result is a system that develops strategic initiatives to provide outstanding customer satisfaction.

Customer

Key Sustainability Indicators Y/E 31/03/11 Y/E 31/03/12 Y/E 31/03/13 Y/E31/03/14

Integrity in Corporate Activities FY2010 FY2011 FY2012 FY2013

Turnover (£ million) £422.6 £423.2 £438.4 £463.0

Average Customer Satisfaction (Marketing data) 4.41 4.66 4.63 4.64

Average Net Promoter Score 20.5% 41.0% 37.0% 42.6%

Number of Whistle Blowing Incidents 0 0 0 0

Marketplace Management Score from CR Index 73% 79% 98% 96%

% of Formal Complaints Resolved in < 10 Working Days 45% 45% 81% 92%

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At Ricoh, we are committed to enhancing the financial benefits and reducing the environmental impacts for our customers and for our business operations through our innovative technologies and services.

Our lifecycle approach and Eco Balancemeasurement ensure we consider all aspects of products and

business activities.

This, in turn, minimises resource use and maximises the reuse, recycle and reduction of raw materials.

Our goals and strategy

To maintain and enhance our position as a trusted business partner for our customers is our first priority, supporting their growth and increasing efficiency whilst also reducing environmental impacts.

According to data collected from IPCC (Intergovernmental Panel on Climate Change) reports, the predicted population of the world will have exceeded nine billion by 2050. With this is mind, and natural resources becoming a depleting commodity, Ricoh Group formulated the Year 2050 Long-Term Environmental Vision.

Our vision incorporates the recognised need that advanced nations must reduce their environmental impact to one-eighth of fiscal 2000 levels by 2050 and concluded it was necessary to set up specific action plans under this vision.

To fulfil this commitment Ricoh has devised mid- and long-term environmental impact reduction goals in three areas worldwide:

• Energy conservation and prevention of global warming

• Resource conservation and recycling

• Pollution prevention

James Deacon, Head of Corporate Responsibility

Environment

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All Ricoh operations play an important role to achieve the following targets:

* In March 2012, we revised the previous goal for pollution prevention, namely, “reducing the impact of chemical substances on the environment by 30% by 2020,” as we achieved this goal earlier than planned, mainly due to faster progress in reducing the use of lead and other substances having a relatively high environmental hazard level. Specifically, we have attained the targets of a 90% reduction (from the FY2000 level) in environmental impact of chemical substances contained in products, as well as 78.5% and 94.8% reductions in PRTR-target substances used at and discharged from production sites, respectively.

Ricoh’s environmental management approach

At Ricoh all environmental activities fall into one of the two categories:

1. Activities designed to reduce our customers’ environmental impact through Total Green Office Solutions (TGOS), e.g. EcoLine resource recirculation, Sustainability Optimisation Programme, Carbon Balanced Printing, i-Invoicing, etc.

2. Activities designed to reduce Ricoh’s own environmental impact through Environmental Management System (EMS), e.g. Green Office Certification Programme, Environmental Sustainability Management Index, Cloud Computing, Green Travel Plan, and achieving Zero Waste to Landfill.

Reducing our customers’ environmental impact:

Resource re-circulation

Smart usage of precious resources is a key area for every industry. One of Ricoh’s answers to this challenging issue is to offer resource re-circulation products,

as highlighted in Ricoh’s Comet CircleTM concept (illustrated below). The Comet CircleTM was established in 1994 as a catalyst for change, and shows how Ricoh reduces its environmental impact throughout the entire lifecycle of its products and services. It incorporates a cradle-to-cradle approach to recycling. Ricoh believes that all product parts should be designed and manufactured in a way that they can be recycled or re-used. As a result, Ricoh established the EcoLine series of products as one of its “resource smart” offerings.

Ricoh Global Targets

Energy usage reduction (from FY2000 level)

Resource usage reduction (from FY2007)

Pollution reduction (from FY2000 level)*

2020

-30%

-25%

Minimise risks of chemical substances throughout the product life cycle by 2020 in compliance with the Strategic Approach to International Chemicals Management (SAICM)

2050

-87.5%

-87.5%

-87.5%

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EcoLine – fewer raw materials used in manufacturing

In line with our Global 2050 Plan, EcoLine remanufactured products play a major role in reducing the amount of raw materials used in the manufacturing process. Although EcoLine products are 100% remanufactured, they have the same warranty status and durability as a brand new Ricoh product.

There is no decline in quality and the process ensures that the lifecycle of material is greatly extended. As an added benefit, they provide a higher return on the ‘embodied-energy’ used in their original manufacture.

The British Standard BS 8887.2 provides a set of definitions that outline the criteria for producing ‘remanufactured’ goods. Since 2004, our Telford factory has been the only UK manufacturer in the Managed Document Solutions (MDS) industry that can build, market and remanufacture document imaging machines.

Green Line – the renewal process

Ricoh GreenLine Centres provide further opportunity for us to vastly reduce our carbon footprint.

Previously used parts and products are sent for testing and are subjected to an extensive renewal process before being certified and re-entered into the market under the GreenLine label. Apart from being more sustainable, and of the exact same standard as a new product, remanufactured products provide a highly economical printing solution.

The world-renowned global management consulting

firm McKinsey authored a report called: ‘Towards the circular economy. Economic and business rationale for an accelerated transition’. It features products by the GreenLine label as ‘industry best practice’. McKinsey has also established fact-base and analytics for the concept of a ‘circular economy’ and it’s this type of re-circulating economy that decouples sales revenues from new materials.

In addition to eco Line machines we are currently considering programmes to expand the range of factory renewed parts and components returned from our Field Service operation. This means that we can re-use functional components, replacing worn or defective items with new; and also reduce disposal of faulty items and transportation of new items.

The Resource Smart Return Programme – helping our customers

We are committed to making our own contribution towards the global effort for a Circular Economy.

Our easy-to-use collection programme provides an efficient way for our customers to recycle their toner cartridges and spare parts. They initiate this by logging on to our Ricoh Resource Smart Return Programme portal (www.ricoh-return.com), and can return a single item, or consolidate multiple items into a bulk-box collection.

It’s simple, and we ensure that the logistics of such a collection do not work against our aims of sustainability and carbon footprint reduction. All the materials that are returned to us are either remanufactured or recycled in accordance with our ‘zero-waste-landfill’ policy. As an added effort towards our sustainability goals, we conduct feasibility studies to recover our products for ‘inner-loop’ re-use.

Sustainability Optimisation Programme

The Ricoh Sustainability Optimisation Programme helps businesses to reduce their environmental impact and improve the efficiency of their document workflows. It offers a staggering ‘zero carbon footprint’ when printing, whilst at the same time reducing Total Cost of Ownership (TCO).

Interestingly, research has shown that the largest share of environmental impact of printing is when machines are being used by customers; this accounts for 62% of the total lifecycle impact. Ricoh Sustainability Optimisation Programme focuses on the in-use phase - where product manufacturers usually have limited

control (see below).

The Sustainability Optimisation Programme is a continuous improvement cycle consisting of five stages:-

• Stage 1: We analyse a business’ existing document workflows and fleet, to understand the baseline TCO and CO2 energy consumption.

• Stage 2: A plan is designed to reduce TCO and CO2 emissions from paper and energy consumption, setting clear objectives including optimising the fleet, workflows and end-user behaviour.

• Stage 3: The plan is implemented, devices with Eco Mode energy-saving settings installed, workflows optimised, and end-users educated to enhance their environmental awareness and to understand how to use the devices in the most sustainable way.

• Stage 4: Involves continuous tracking of actual carbon emissions versus goals set in the second stage.

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By analysing this data Ricoh can identify how each printing device is being used and implement improvements to drive further reductions in carbon emissions.

• Stage 5: To neutralise the remaining unavoidable carbon emissions that businesses can offset through carbon credits generated by Clean Development Mechanism under Kyoto.

Protocol projects in which Ricoh has invested

On average, reductions of TCO by 23% and CO2 by 36% are achieved through this programme.

We are proud of this track record; and this has been further cemented by the fact that our Sustainability Optimisation Programme has won several prestigious awards and has also had its accreditation renewed by British Standards Institution (BSI).

Reducing Ricoh’s environmental impact

I-invoicing – financial

Ricoh has developed a Document Process Outsourcing (DPO) service called Intelligent Invoicing (I-invoicing). It gives our customers the opportunity to switch from traditional paper-based invoicing protocols to a more modern, digitalised system. If they are able to make a complete transition into electronic invoicing, the financial savings can be anything up to 90%. This huge figure stands regardless of the size of the organisation.

It’s very straight forward. The customer outsources the receipt and production of their invoices to us, and we print, scan and mail all paper invoices as well as sending them electronically. Our size, technology, know-how and logistics expertise sees to it that we process over 10 million of our clients’ invoices every year, and this number is growing steadily by the day.

Pro-Office Paper

We work in association with the UK Forestry Commission’s Woodland Carbon Code to produce what is termed as ‘Carbon Capture Paper’. It means that the amount of CO2 generated throughout our Pro Office Paper manufacturing process is quantified and offset against a carbon removal scheme.

To do this, Ricoh and its paper suppliers work with the Woodland Trust (the UK’s leading woodland conservation charity) and plant trees that grow over a 100 year period. During this growth, the forest absorbs the CO2 emissions, resulting in the complete negation of the carbon footprint generated by the manufacturing process.

Reducing our CO2 emissions

Our target to reduce CO2 carbon emissions by 88% is set for the year 2050, with an interim target of 30% by 2030. We are on target to achieve these goals, and have been particularly encouraged by our early realisation of our 2010 target. In this case, we reduced emissions by 20% - six months earlier than predicted. Since 2007 we have managed to reduce our CO2 emissions by 45,000 tonnes.

Vehicle fleet – the largest contributor to our carbon footprint

Our goal is to get as near to 100 gCO2 /km for our company car fleet within the 5-7 years The reality is, an organisation of our size has a great deal of employees that are field-based, and it’s a necessity that they use their cars on a daily basis. But this poses the modern-day problem of vehicle emissions. This has presented us with a challenge that has already seen us dramatically decrease our vehicle fleet’s carbon footprint over the past 12 months.

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There are three contributing factors to this success

1. In the last five years car manufacturers have greatly improved their cars’ fuel efficiency and carbon emission output

Before this improvement, our vehicle fleet was just about in line with the Ricoh Europe policy of 135 gCO2 /km. It now sits at 110 gCO2 /km – a substantial decrease (on average) of 16 grams. This continues as our fleet’s lease agreements come to an end and we replace with newer, cleaner models.

2. We have replaced whole waves of our fleet with lower-grade emitting models

For example: Pre-2013 Audi A5s on our fleet emitted 157 gCO2 /km. These are being replaced with the latest model, emitting just 120 gCO2 /km.

3. The introduction of a car-allowance scheme

In April 2013 we introduced a new policy whereby if a ‘Grey Fleet’ (cars chosen by employees outside of our car fleet policy) car has emissions above 195 gCO2 /km (based on manufacturers’ data), financial penalties apply.

The profile for Grey Fleet (data correct at April 2014), has an average of 146 gCO2 /km, with the highest emitting being 352g - the lowest being 85g. There are 36 drivers that have average emissions of 221 gCO2 /km. This number is decreasing slowly, but as the drivers are entitled to have a car that is up to 8 years old, this may take a little more time. The ‘grey fleet’ 195 gCO2 /km limit will be reviewed further, pending independent advice from the Energy Saving Trust during late 2014.

Reducing our print-related environmental impact

Our Head Office in Northampton is the flagship for demonstrating and promoting our ‘New Ways of Working’.

This is a new proposition designed to demonstrate how the modern business can be more efficient, sustainable and agile. Existing hardware has been replaced with the latest Ricoh models which have improved efficiency, power consumption and have been set to Eco Mode.

Eco Mode utilises three highly efficient energy-saving settings, which do not interfere with the performance of the multi-functional product while printing or copying. Eco Mode only activates when the device is standing idle

In addition to this, the latest software has been installed to help us further reduce our environmental impact. One of the particular applications is Streamline NX which is an integrated document management application. The significant environmental benefit of this is that it can be used to convert documents into an electronic format for distribution and storage to reduce the need for printing.

The application presents the opportunity to minimise paper waste by utilising locked print - if a print requirement is not collected from an MFD within 24 hours it’s simply purged from the system.

By using Streamline NX and document management software such as Docuware, Ricoh are attempting to convert to a paperless office way of working. Customers using Ricoh’s @remote software are now receiving invoices electronically, which further reduces the use of paper.

Green Travel Plan

Ricoh recognises its responsibilities to contribute to a greener environment and is committed to sustainable transport. We aim to implement measures that help reduce the need for employees to travel to work via single-occupancy car journeys and promote awareness of the benefits of alternative travel methods.

The purpose of our travel plan is to minimise the impact of our travel on the environment within the context of running an efficient business. An effective travel plan will bring environmental, social and health and wellbeing benefits to both Ricoh and our employees.

The plan reduces the adverse environmental impacts of transport to and from our offices and encourages a reduction in single occupancy car travel. By encouraging and promoting greater use of car-sharing, public transport, walking and cycling, our impact is quantified via our environmental management system.

Zero Waste to Landfill

Globally, all Ricoh manufacturing sites have achieved zero waste to landfill states. In the UK we achieved this in FY12 at all of our managed sites.

By carefully selecting and working with our waste contractor, all waste from our managed sites has been diverted from landfill and is processed using the following four stages:

• On site segregation

• Secondary segregation

• Making fuel

• Making energy

As an added environmental benefit, the Energy From Waste stage of our waste processing approach provides electricity to homes and businesses.

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Ricoh’s cloud computing

Ricoh began its ‘cloud’ journey in 2011 in order to centralise its IT infrastructure. This includes all its Operating Companies across Europe, with the aim of creating a far more efficient IT and business process environment. It is an essential building block in enabling Ricoh employees and clients to access applications and data securely from wherever they are in Europe, with any device.

2012 saw Ricoh Europe migrating to a cloud based data centre – RIDS (Ricoh IT Data Centre Standard) or Ricoh private cloud. The objective was to bring the latest technology, standardise BCP/DR, reduce CO2 by 16.8K tonnes, reduce cost and make RIDS our front line office tool solution for our ITS business across Europe Middle East & Africa (EMEA) replacing our 50 legacy active directory solutions.

Ricoh’s private cloud infrastructure in Europe, designed and implemented by Ricoh and Infosys, has been chosen as winner of the prestigious Green IT Awards 2012 in the Cloud/Virtualisation Project of the Year category.

Carbon Trust Standard

In January 2014 Ricoh UK Ltd was successfully recertified by the Carbon Trust Standard, showing a 1.57% absolute reduction in carbon emissions. If we also factor in business growth (by £revenue) during the same

period, our relative carbon emissions (kg CO2e per £m revenue) reduced by 6.47%.

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Harmony with the Environment (absolute) FY2010 FY2011 FY2012 FY2013

Total kg CO2e 8,848,906 9,452,711 9,187,853 9,076,031

Electricity - CO2 emissions (kg CO2e) 2,798,955 2,383,178 2,367,385 2,173,308

Gas - CO2 emissions (kg CO2e) 322,993 342,426 402,134 377,207

Flights* - CO2 emissions (kg CO2e) 37,672 177,202 216,499 238,383

Train - CO2 emissions (kg CO2e) 13,833 52,140 67,645 71,295

Fuel - CO2 emissions (kg CO2e) 5,675,453 6,497,765 6,134,190 6,215,838

Business Travel (avg monthly kgCO2 per company car driver) - - 383.96 375.42

Commuting Travel (avg daily miles commute per car driver) - - 14.84 19.1

Environmental Management Score from CR Index 74% 85% 98% 100%

Encouraged to Recycle (EES Question) 3.1 + 3.2 +

Encouraged to Recycle (% rating) 62% + 64% +

Waste generated/disposed (tonnes) 816.3 918.0 417.6 406.8

Waste reused/recycled (tonnes) 66.3 168.0 417.6 406.8

Harmony with the Environment (relative to revenue) FY2010 FY2011 FY2012 FY2013

Total kg CO2e / £m revenue 20,939 22,336 20,958 19,603

Target kg CO2e / £m revenue (2% year-on-year) 21,819 21,374 20,929 20,483

Electricity - (kg CO2e / £m revenue) 6,623 5,631 5,400 4,694

Gas - (kg CO2e / £m revenue) 764 809 917 815

Flights* - (kg CO2e / £m revenue) 89 419 494 515

Train - (kg CO2e / £m revenue) 33 123 154 154

Fuel - (kg CO2e / £m revenue) 3,430 15,354 13,992 13,425

* Flight miles have steadily increased due to RUK’s continued expansion as a pan-European Back Office support centre+ No Employee Engagement Survey data in FY11 & FY13 due to this being a biennial process since FY2010

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Ricoh UK’s human resources policies and practices reflect the principles of the Ricoh brand imagine. change. and its values which we communicate internally as The Ricoh Way. It includes our focus upon customer centricity, innovation, teamwork, ethics and integrity, and a “winning spirit“. We embrace change and diversity, offering a challenging

environment where employees

can collaborate, be innovative, create value for customers. have a sense of achievement and grow through their work. Learning opportunities are only limited by people’s imagination. Ricoh’s Academy has been consistently recognised by The Learning & Performance Institute.

Our strategy

‘The Ricoh Way’ sets out a group of fundamental principles that guides our employees into providing our customers with the best possible service, whilst adding value to our overall proposition.

It’s a global philosophy that works hand-in-hand with our brand strap-line ‘imagine.change.’ which promotes

our values, customer-centric approach and commitment to delivering the highest standards of ethics.

Providing outstanding value for our customers is the purpose of our work, but it’s our people that drive our ultimate success. So that we can work as a global unit to achieve our goals, we do all that we can to encourage our employees to realise their full potential. This includes implementing personal development plans that promote innovative thinking, the sharing of ideas and shows them how to demonstrate our ‘new ways of working’ proposition.

Taking care of people

You can’t run a sustainable and success-driven business without a happy, healthy and engaged workforce, so

Rebekah Wallis,Director - People and CR

People

26

we are always looking for new ways to ensure the recognition, engagement and wellbeing of our people.

Ricoh UK Employee Forum – a means for open discussion

One of the biggest challenges for any organisation is communication. When employees are unsure of what is required of them, it demoralises and leads to poor decision making.

In 2002 we created the ‘Employee Forum’ that allows our team to share their ideas, concerns and plans for the future. It means that we can harmoniously work together and ensure that all of our people are fully aware of our strategy and business goals.

Encouragement

We actively encourage an open dialogue and believe that every question is a good one and all feedback is valuable.

This approach not only ensures that our people feel valued, but also sits in full accordance with our brand values which work brilliantly in attracting the highest calibre of talent.

In making sure that the forum delivers value to the Ricoh Group, employees are elected to join by their peers. They meet on a two-monthly basis with members of the Board of Directors and their respective feedback is then formulated into actionable plans where necessary, and communicated back to employees via a range of communication channels including the intranet and team debriefs.

Employee representatives from the Ricoh UK Employee Forum also sit on the Ricoh European Employee Forum

(REF), along with representatives from each Ricoh Operating Company within the EMEA region. The Ricoh European Employee Forum meets annually with senior management to keep them updated with events. The two Ricoh UK employees who represent us at European level are also key members of the REF Steering Committee providing Ricoh UK with direct, high level employee-led input into pan-European strategy and activity.

Employee Motivation and Engagement

Any responsible business knows that committed and engaged employees help to create a more productive and efficient business - and lead to lower attrition rates and reduced absences.

In 2008 we conducted our first ‘Employee Engagement’ survey throughout Europe.Its purpose was to provide us with a clear understanding of the things that are important to our employees and give us a baseline of our position at the start of a process of company integrations. This survey has been repeated on a two-yearly basis with 2014 seeing the advent of the first ever Ricoh Global Engagement Survey (RGES)*. In addition, Ricoh UK launched their first quarterly Engagement Index (EI) which provides us with a snapshot of mood, allowing for immediate department manager-led action and review.

The shorter timescales and format of the EI support and complement the wider-reaching improvement activities and timescales of the global survey.

As a result of the findings of the European and Global surveys our UK Board members sponsor improvement projects. These projects are led by ‘Improvement Teams’ that have been established at a local management level. It means that all those involved are ‘on the same page’

and new activities can be introduced with a surety that they will achieve their objectives.

Our surveys focus on key drivers of engagement, including leadership, communications, teamwork & belonging, working conditions and personal development. It’s important that we gain a real sense of ‘what it’s like to work at Ricoh’. All questionnaires are completely confidential and all employees are encouraged to take part. Since FY2010 our Engagement Survey has run on a biennial basis.

I’m satisfied working for Ricoh

In the 2012 European survey, the question “I’m satisfied working for Ricoh” achieved the score of 3.4 out of 5. This compares favourably with the industry benchmark figure of 3.4, provided by TNS, our survey partner.

Areas for improvement

Our FY12 survey highlighted ‘management skills’ as an area for improvement. As a result we have implemented a complete ‘tiered’ approach to leadership & management training, starting from ‘prior to first line management’ (EXPLORE) training through to our ASPIRE training programme for board succession.

In summer 2014 Ricoh launched its first global employee engagement survey, replacing the European survey, which allows for greater benchmarking and best practice sharing opportunities across all participating operating companies. At the time of writing this RUK 2104 Annual Report, the Engagement Survey results are still to be analysed. The results and actions of the survey are scheduled to be published in our next report.

FY12

3.4

68%

FY10

3.4

71%

FY09

3.3

48%

Overall Satisfaction

Response Rate

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Our ‘learning’ strategy

We have created Ricoh Academy that is recognised by the Learning and Performance Institute as amongst the best in our industry. Through the Academy, our employees, partners and distributors are provided with training, guidance and learning opportunities to ensure they have the knowledge and skills required to perform at their very best and achieve their potential, thereby meeting our customer needs, whether these are internal or external customers. Learning delivered via a combination of on-line eLearning, webex, self-learning and classroom based training using Ricoh and other technologies, where appropriate, to minimise the environmental impact of training-related travel.

The development of our current learning strategy commenced with the understanding of Ricoh’s 18th MTP, with particular alignment to Ricoh’s business objective of a ‘services led’ proposition. Learning is essential to support the transformation of knowledge, skills, attitudes and behaviours needed to achieve this shift in proposition. Throughout our tier of Leadership Programmes, we are very proud to work in partnership with the Prince’s Trust to provide structured community investment activities as a mandatory element of every programme.

Examples of areas of learning

• Induction

• Dignity at work

• Leadership

• ISMS

• Managed document service (MDS)

• Environment and sustainability

• Health & safety

• Sales skills

• Product knowledge

• Interpersonal skills

• Technology and software

• Apprenticeship programmes

We help employees to:-

• Obtain professional qualifications and experience to develop in their current role

• Develop new techniques, knowledge and skills in their specialist field, and anticipate trends in the broader environment

• Undertake appropriate training and developmental assignments to fulfil their potential

During FY2013 employees completed 3,282 classroom training interventions (a 13.5% increase from FY2012), and 30,308 eLearning modules (a 328% increase from FY2012). 119 employees have had either an internal transfer or promotion within RUK during FY2013.Our focus on Leadership Development has led us to implement a complete tiered approach to all levels of

management training - ranging from prior to first line manager role, through to Board succession.

As well as being LPI accredited, Ricoh is certified to Gold level as an Investor in People and works in close partnership with apprenticeship partners to support our pan-business apprenticeship model to support our talent pipeline.

As part of our drive to help our employees be the best at what they do, we sponsor many of them to accomplish external industry-recognised accreditations. These include: AAT, APMP, CIMA and the Prince2 project management qualification, to name a few.

In addition to having a workforce that’s all the better for these accreditations, there are other benefits too. They help us to achieve various high-tier Gold Partner status suppliers such as: HP and Microsoft, which apply directly to our ITS division.

Employee wellbeing

It’s one thing to encourage a workforce to be healthy, but it’s something else entirely to actively develop initiatives that support their wellbeing. In 2010 we launched our successful wellbeing programme with targeted initiatives to support our employees in tackling a range of health-related challenges.

Key initiatives include:-

• Hydration

• Weight management

• Healthy eating

• The ‘pedometer challenge’ walking campaign

Board

AspireSenior Management

InspireMiddle Management

EnableFirst Line Management &New Starter Management

ExploreFuture Leaders/Talents

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These were delivered in partnership with a number of third-party partners - sometimes as ‘one-off’ workshops (e.g. hydration) or longer and periodic projects, such as our ten week weight-management workshop, and our five week Pedometer Challenge. As a result of our Wellbeing initiatives, Ricoh UK were awarded the Healthy Workplace Award by SimplyHealth.

Health kiosks

It’s always a good idea to keep abreast of your general health that’s why we’ve installed Wellpoint KioskTM machines at key office locations. It’s a useful innovation that enables our employees to regularly check their weight, blood pressure, hydration levels and body fat percentage.

What’s particularly ingenious is the machine’s ability to help an individual seek professional help, if the need arises. It does this by asking the user a series of questions based upon their lifestyle choices. They include questions about smoking, drinking and exercise.

With the consent of the user, Ricoh can then use the results to see which wellbeing initiative would be best for them in order to address these issues. There is no pressure on any individual to do this - Ricoh is always sensitive to the needs of the employee and has their best interests at heart.

Pedometer challenge

Ricoh likes to inject a sense of fun into these wellbeing initiatives, since

2011 has ran an annual pedometer challenge. All

employees are invited to take part in what is effectively a ‘walking challenge’ and asked to make small donation to the British Heart Foundation.

In line with our ethos of promoting a team-spirit, employees work collectively and collate details of the amount of ‘steps’ they make between them. This is then entered on to a leader-board and is available to view on the Company’s intranet. The organised walks take place at different office locations, with prizes being presented to the teams with the highest step count over the five week period.

The Employee Assistance Programme

Ricoh funds the operation of an Employee Assistance Programme which runs in conjunction with our healthcare providers BUPA.

The free and confidential advice helpline provides guidance on all life challenges, both personal and professional. This can help employees with anything from coping with bereavement to moving house, from dealing with becoming a new parent to resolving financial difficulties.

The service is completely confidential, with no information other than the rate of uptake notified to Ricoh. Anecdotal feedback from employees tells us that the EAP is an extremely useful resource, helping make Ricoh an Employer of Choice.

The Emotional Resilience Programme

In addition to the EAP service, Ricoh UK has been working with Coventry University to implement an Emotional Resilience program across all areas of the organisation.

The programme, titled ‘Evolve - Building Resilience Together’ consists of three phases:-

• Executive phase

• Manager phase

• Employee phase

We have undertaken the executive phase and are currently developing the roll out of the manager phase.

In November 2012 we launched an employee ‘Voice of the Customer’ survey to gain employee feedback on our health and wellbeing programme. The results showed that 75% of our employees were satisfied with the wellbeing services provided and 71% were satisfied with our ‘Elements’ benefits scheme.

During 2013 1.6% of working days were lost due to employee absence. One of our main reasons for absence is due to stress, anxiety & depression and we are currently developing and implementing an Emotional Resilience programme. We recognise that overall our absence levels are low and currently investigating if we are capturing all absence across the organisation.

Health & Safety

We have a responsibility to protect the health and safety of our employees, contractors and our stakeholders. Thus, our Board has direct oversight and responsibility for our health and safety performance.This performance is measured through our H&S management dashboard and is regularly reviewed along with results from our internal and external audits.

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Since November 2010 Ricoh UK Ltd has held accredited certification to BS EN 18001 for its Occupational Health and Safety Management System and is audited every six months by BSI. In addition, we are Safecontractor approved and CHAS accredited.

In 2012 we reviewed our internal reporting process for accidents, incidents and near misses (AINM). This (expectedly) prompted an increase in our AINM results due to the increased awareness and improved reporting process. Subsequent periodic reminders about the need for reporting have also shown small increases in reported AINMs.

Our key focus areas for 2014 into 2015 include the integration of our management systems for H&S, ISMS, Environment and Quality.

Employee Pay & Benefits

Ricoh UK pay all employees at or above the appropriate Living Wage based on their location and are at the point of becoming an accredited ‘Living Wage’ employer.

We have also evaluated our gender-related pay gap, assessing base salary to compare median hourly rate for male and female employees (the calculation used is Men’s median hourly pay – Women’s median hourly pay) DIVIDED BY (Men’s median hourly pay) x 100. Our current gender-related pay gap is 17%

Ricoh UK went through a number of large integrations over a five year period, resulting in areas of significant disparity between employees in relation to pay and benefits in general. Over the last two years we have worked to offer a standard set of benefits to all employees, but for the majority this meant compensation being added onto base salary providing even greater disparity in relation to pay. Ricoh UK are currently working to resolve these issues over the medium term.

As part of our health and wellbeing strategy, Ricoh UK launched a new benefits programme for all Ricoh UK employees. This essentially designed to meet our employees’ needs and lifestyles.

We provide an on-line portal which enables our employees to view their total reward package - including pay and benefits, pension management, and to also buy additional holiday and participate in any benefits and discounts sourced by our benefits provider.

Employee benefits include:-

• Pension plan

• Income protection

• Life Assurance

• Medical insurance

• Dental insurance

• Health assessments

• Healthcare cash plan

• Employee assistance programme

• Company vehicle/cash allowance

• Childcare vouchers

• Cycle-to-Work scheme

• Charitable giving

Ricoh strives to give our employees the best possible benefits and are helping to achieve our HR Strategic objective ‘To be an employer of choice’ and retain our most talented employees.

New Ways of Working

Our key business is going through a transformation as Shiro Kondo, CEO Ricoh Japan stated:-

“I have been telling you about the importance of change, as in changing the company, changing the way you work, and changing your standpoint; and these require imagination. If you acquire the ability to imagine, you will be able to change things. Due to the rapid spread of mobile devices connecting to a network, the boundary between office and consumer markets has been blurred beyond recognition.”

To support this change In 2013 we launched a major initiative called ‘New Ways of Working’ designed to transform the way we work and allowing us to better support our current and future business, whilst demonstrating our brand message of imagine.change.

Our CEO, Phil Keoghan explains the project objectives:-

“Our working environment will be a showcase we can all be proud of, using our solutions to promote both remote and local communication and collaboration with customers, partners and colleagues. Formal and informal areas for concentration and contemplation will be supported through investments in technology and people management, giving us the freedom to work more efficiently and more effectively. The changes are aimed at making us a more agile company, enabling us to respond more readily to an ever changing marketplace so we can better advice our customers and partners.”

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Ricoh is changing…

We are adapting to our customer’s requirements and continue to make the transformation to an agile and services-led organisation.

New ways of working will challenge our working practices, our work space, and the tools and processes we use. Fixed desk and fixed working patterns of 9-5.30pm are being replaced with the introduction of a flexible working environment and over the next couple of years, across our business, our national property infrastructure will be refreshed. We’ll use our space, solutions, innovation and technology to create exciting work-spaces to showcase to our colleagues and customers alike.

We have already applied NWoW to our Northampton HQ, our new London city offices at Broadgate Tower and are currently in the process of doing the same for the migration of our Feltham branch to new premises in Staines. Our employees are seeing and experiencing changes in how they work. To support NWoW we have a number of ‘lean six’ sigma improvement projects focussed on the reduction of paper usage.

New Ways of Working is delivering numerous benefits to our stakeholders including:-

• Reinforces imagine.change. brand culture

• Improved work/life balance

• Flexible and creative working environment

• Showcase for our leading-edge products and software

• Carbon footprint reduction

• Cost Reduction

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Respect for People FY2010 FY2011 FY2012 FY2013

Employee Engagement

Employee Engagement Survey Response Rate 71% + 68% +

Employee Overall Satisfaction Working for Ricoh 3.4 + 3.4 +

Employee Overall Satisfaction Working for Ricoh (% rating) 68% + 68% +

Employees Enagaged 16% + 14% +

Workplace Management Score from CR Index 78% 86% 85% 100%

Employee Development

Staff Receiving Appraissal 54.9% 56.8% 86.0%

Employees are Clear on Personal Objectives (EES Question) 3.3 + 3.4 +

Employees are Clear on Personal Objectives (% rating) 66% + 68% +

Discuss Performance Regularly (EES Question) 3.1 + 3.0 +

Discuss Performance Regularly (% rating) 62% + 60% +

Average Training Days per FTE 2.04 3.84 3.19

Learning Performance Institute (LPI) Scores 70% 81% 92% 92%

Accidents and Absence

Accident Rate Per 1,000 Employees 1.0% 1.3% 1.4% 1.8%

Reportable Incidents (RIDDOR) 3 2 3 7

People Profile

Average Headcount 2,714 2,696 2,696 2,565

Average Employees Service (years) 10.1 10.8 11.1 10.0

% Female Workforce 25.2% 25.0% 26.0% 25.7%

% Females at Management Level 24.6% 21.0% 21.0% 21%

% Employee Turnover - Voluntary Attrition 9.2% 8.9% 9.2% 8.3%

+ No Employee Engagement Survey data in FY11 & FY13 due to this being a biennial process since FY2010

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“Although technology and innovation are at the very foundation of what we do, it’s our people that really make the difference. We are proud of our workforce. They often show great selflessness and dedication to those who are in need.

With this kind of commitment, it’s only right that we doeverything we can to encourage them, whilst serving the communities

that need our help the most.”

Our Strategy

Ricoh and its employees relish the opportunity to make a contribution to the communities we operate in. And as a result, we’ve worked for many years with charities on both a local and national level.

With our enthusiasm matched only by our dedication, our community investment strategy is focussed on these three key areas:-

• Environment & conservation

• Local communities

• Raising the next generation

We happily provide financial support to a whole host of projects, but it’s the skills and active involvement of our people that really make a difference to the communities we help.

To actively encourage the participation of our workforce in these projects, we allow two extra days, paid leave every year. A residual effect of this commitment is that we’ve seen a measured increase in the way our people engage with each other and work as a team.

Last year we managed to get 13% of our workforce to volunteer for such projects. This was particularly impressive because it was 10% above our target. We are aiming to do the same for 2014, as well as increasing our community section scores within the CR index and the charitable donations within the company.Charlene Withall,

Community Investment Manager

Community

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In order to achieve and increase uptake of volunteering opportunities, we provide a range of company-wide activities for our employees to get involved with - whether on an individual basis or as a team.

• The Prince’s Trust

• BBC Children In Need

• Virgin London Marathon

• Tree Planting event

• Right2Read & Number Partners

The Prince’s Trust

Last year we continued our support for the Prince’s Trust charity by donating over £110,000. The Prince’s Trust is a key component in supporting disadvantaged young people by providing them with both

practical and emotional support and encouraging them to develop workplace skills.

To further strengthen our relationship, in September 2014 we became Silver Patrons and are working alongside the charity to incorporate volunteering and fund raising elements into our new four tier Leadership Management Development framework, which was launched the same month.

Employee involvement with the charity is a key element of the relationship and our employees continue to actively support it.

They have participated in the following events:- TEAM ProgrammeThis is a 12 week course designed to help young people

who are not in education or unemployed develop new skills with the ultimate aim of getting them back into further education or full time employment.

During the programme, Ricoh have contact with the young people during the CV & Interview skills and work placement workshops. Both of these workshops are facilitated by Ricoh employees.

Work placement opportunities Incorporated into the TEAM programme is a 2 week work placement for the young people. To help and support the young people, Ricoh offers placement opportunities in various departments within its Northampton head office.

Active challengesIn addition to employee volunteering opportunities, financial support if also provided through our participating in various fund raising events. Examples of events we have already supported are the BUPA Great North Run and Royal Parks Half Marathon. At the beginning of October 2014, a team of 50 riders took part in the Palace to Palace cycle challenge.

BBC Children in Need

Ricoh and our employees have fund-raised for BBC Children in Need for a number of years. In 2013 our National Contact Centre based in

Northampton was once again selected to help process donations from the general public on the appeal night.

Throughout the day we also promoted various fund

raising activities. In the evening more than 100 employees from across the business volunteered from 6.30pm right through to 2.00am the following morning.

During this time our Contact Centre was open; and our employees processed over 2,700 calls amounting to over £97,000 in donations from the general public. In addition to the support provided on the appeal night, fund raising activities were also co-ordinated across the year and one of these was the Hadrians Wall cycle challenge.

The challenge involved a group of employees cycling 174 miles over four days along the Hadrian’s Cycleway route whilst raising over £5,000 for the charity.

Virgin London Marathon

The London Marathon is not only a fun thing to do, it provides an incredible opportunity to create awareness of our brand. Our

relationship with the event (now sponsored by Virgin) started over 20 years ago and continues to this day.

The partnership we have developed with the event organisers allows us to supply equipment that enables all results from the race to be printed and delivered to thousands of participants in less than two hours. Plus, we have a team of Ricoh runners who take part in the event itself, and in 2014 they raised nearly £14,000 for various UK charities. This was increased to £17,000 following a corporate donation.

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Tree planting at the Forest of Marston Vale

For the last four years Ricoh has been working with the Forest of Marston Vale in Bedfordshire. It’s a charity that has an aim to create

one of 12 Community Forests across England. Its objective is to regenerate land across towns and cities impacted by industrialisation.

The site that we are helping to regenerate covers 61 square miles between Milton Keynes and Bedford, and during February and March 2014 nearly 80 volunteers took part in our annual two day planting event.

Right2Read & Number Partners

Using our links with Business in The Community, our employees based in and around Northampton took part in a pilot group by supporting local primary schools with the Right2Read and Number Partners programmes.

The support provided to the schools involves employees volunteering one hour a week on these programmes, which are designed to help improve the literacy and numeracy skills of the children.

We’re pleased to announce that following direct feedback from both the schools and our employees, the scheme is now being deployed across the business.

Employee led activities

Through the provision of two days additional leave per year we actively encourage our employees to get involved by volunteering or raising money for charity.

At the end of last year the total amount of money raised by employee-led activities was over £70,000.

Here are some of the activities that helped to achieve this:-

• Members of our Service division took part in a charity ‘It’s a Knockout’ competition and raised £17,000 for Teens Unite

• Offices across the business hosted McMillian coffee mornings and raised over £1,200

• A Head Office Christmas raffle raised £1,350 for the Warwickshire & Northamptonshire Air Ambulance Trust

Reporting

To capture and record all community investment activity across the business, we use an internal system which is accessible by all employees. The system is hosted on our intranet and provides real time information.

External reporting is also completed and we use BITC’s Corporate Responsibility (CR) Index and the London Benchmarking Group (LBG).

In addition to getting our results externally validated and verified, we are also able to benchmark ourselves against other organisations who take part in these external reporting indices.

Harmony with Society FY2010 FY2011 FY2012 FY2013

Annual BITC CR Index Score 63% 77% 88% 96%

Number of Employees Involved in Community Volunteering 377 664 751 360

Gifts In Kind Donations ~ ~ ~ £60,192

Total Charity Event Donation ~ ~ ~ £47,234

Total Fund Raising Donation ~ ~ ~ £22,824

Cost of Volunteering ~ ~ ~ £41,200

Corporate Donations ~ ~ ~ £33,044

Fund Matching ~ ~ ~ £250

Volunteering Event Costs ~ ~ ~ £4,550

Leverage ~ ~ ~ £83,750

Total Charitable Donations £44,736 £77,482 £96,461 £293,044

Community Management Score from CR Index 69% 82% 97% 90%

CSR Taken Seriously (EES Question) 66% + 68% +

~ New, more detailed, data measurement of Community Investment introduced for FY2013+ No Employee Engagement Survey data in FY11 & FY13 due to this being a biennial process since FY2010

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About Ricoh

Ricoh is a global technology company specializing in office imaging equipment, production print solutions, document management systems and IT services. Headquartered in Tokyo, Ricoh Group operates in about 200 countries and regions. In the financial year ending March 2014, Ricoh Group had worldwide sales of 2,195 billion yen based on the IFRS accounting standard (approx. 21.3 billion USD).

The majority of the company’s revenue comes from products, solutions and services that improve the interaction between people and information. Ricoh also produces award-winning digital cameras and specialized industrial products. It is known for the quality of its technology, the exceptional standard of its customer service and sustainability initiatives.

Under its corporate tagline, imagine. change. Ricoh helps companies transform the way they work and harness the collective imagination of their employees.

For further information, please visit www.ricoh.co.uk

Get in touch

We’re on hand to talk you through any of this information and help get you started with managing your documents.

Call us on 0800 90 40 90Or email us on ukinfo@ricoh.co.uk

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