Ricoh Concludes a Positive Impact Finance Loan Agreement with Sumitomo Mitsui Trust Bank
High evaluation of the Ricoh Group's proactive ESG initiatives
TOKYO, July 26, 2022 – Ricoh and Sumitomo Mitsui Trust Bank, Limited (“Sumitomo Mitsui Trust Bank”) have concluded a “Positive Impact Finance (with unspecified use of funds)” loan agreement that is in line with the Principles for Positive Impact Finance*1 released by the United Nations Environment Programme Finance Initiative (“UNEP FI”)*2
Positive Impact Finance (“PIF”) is intended to support corporations' activities that comprehensively analyze and evaluate their impacts (both positive and negative) related to the environment, society, and the economy. The most notable feature of PIF is that the degree of contribution from corporate activities, products, and services in achieving Sustainable Development Goals is used as an evaluation indicator and monitored based on publicly disclosed information and supports corporations' activities to achieve these goals through engagement.
Ricoh has identified seven material issues in two areas, “Resolving social issues through business” and “Robust management infrastructure,” to support materiality. Ricoh has positioned ESG initiatives as “essential for generating future finances,” setting 17 future financial targets (ESG targets) linked to the material issues. Progress on ESG goals is adopted as an evaluation item in this loan agreement.
| Theme | Content | Goals and Indicators | SDGs |
|---|---|---|---|
| Contribution to Zero-carbon Society | Upholding the Science Based Target (SBT) of 1.5°C, we will work to reduce GHG emissions substantially and supply products and solutions that contribute to the decarbonization of society as a whole. | (a) Developing thorough energy conservation and CO2 reduction activities Goals
Indicators (KPI) GHG emissions (Scope 1, 2, and 3) (b) Active utilization of renewable energy Goals Switch to renewable energy sources for 30% of electricity needed for business by FY2022, 50% by 2030, and 100% by 2050. Indicators (KPI) Renewable energy usage ratio |
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| Contribution to Circular Economy | We will further enhance our 3Rs (reduce, reuse and recycle) measures and reduce the use and foster the substitution of plastic materials and provide on-demand printing service, thereby helping customers make efficient use of resources. | Goals
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| Improving the Quality of Medical, Educational, and Regional Services | We will help improve medical, educational and regional services by utilizing the digital technologies and know-how that we have accumulated for office solutions. | Goals Contribute to the enhancement of social infrastructure of 10 million people by FY2022 and 30 million people by 2030. Indicators (KPI)
Number of people to whom we have contributed by improving social infrastructure |
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| Strengthening Sustainability throughout the Global Supply Chain | We will strengthen collaboration with our business partners and build a Win-Win-Win relationship between our company, business partners, and society. | Goals
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| Realization of decent work and respect for diversity | We will respect the diversity of employees, upholding the empowerment of self-motivated employees in our management policy and strive to create workplaces where employees can work with vigor | Goals
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To ensure the transparency and objectivity of the evaluation, Sumitomo Mitsui Trust Bank obtained a third-party opinion*3 from Japan Credit Rating Agency, Ltd.
Based on our concept of sustainability, “Driving Sustainability for Our Future,” Ricoh is committed to offering new value that helps society by resolving social issues through our business. Ricoh will continue to create new value that is useful to the world and fulfill its responsibility to improve the quality of life and create a sustainable society.
- The Principles for Positive Impact Finance
The Principles for Positive Impact Finance was developed by UNEP FI in January 2017 as a financial framework for achieving the SDGs. Companies disclose the level of contributions to achieving SDGs through KPIs. Banks then provide funding by evaluating the positive impact observed from these KPIs that is intended to guide the borrowers to increase positive impact and reduce negative impact.
The lending bank, as a responsible financial institution, will check if the impact is continuing or not by monitoring the indicators. - The United Nations Environment Programme Finance Initiative (UNEP FI)
The United Nations Environment Programme (UNEP) is an executive body for implementing the “Human Environment Declaration” and the “International Environmental Action Programme”, established in 1972 as a subsidiary body to the United Nations system. UNEP FI represents a broad as well as a close partnership between UNEP and more than 200 global financial institutions. Since its establishment in 1992, UNEP FI has been working in concert with financial institutions and policy/regulatory authorities to transform itself into a financial system that integrates economic development and ESG considerations. - For information on Japan Credit Rating Agency, Ltd., please visit:
https://www.jcr.co.jp/en/