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Combining Business Growth Strategies with Environmental Sustainability Aston Business School - Feb 2016 Andy Whyle Ricoh UK Products Ltd

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Page 1: Uni of Aston 2016 (widescreen)

Combining Business Growth Strategies with Environmental Sustainability

Aston Business School - Feb 2016

Andy Whyle

Ricoh UK Products Ltd

Page 2: Uni of Aston 2016 (widescreen)

Content

Ricoh’s Sustainability StrategyCO2 Energy ReductionCircular Economy: Zero waste & Remanufacturing

Page 3: Uni of Aston 2016 (widescreen)

Worldwide sales of $23billion(£14.6 billion) year end March 2012

No 1 Share of Global MFP Market

100,000+ Employees Worldwide

Market Leader since 1936

200+ Countries & Regions

Who are Ricoh?

Page 4: Uni of Aston 2016 (widescreen)

Ricoh Global Manufacturing

■ Shanghai Ricoh Digital Equipment Co., Ltd.

■ Ricoh UK Products Ltd. (RPL) ■ Ricoh Industrie France S.A.S.

■ Ricoh Asia Industry (Shenzhen), Ltd. ■ Ricoh Manufacturing (Thailand), Ltd.

■ Ricoh Electronics, IncCalifornia & Georgia

U.S.A

UK

France

China

Thailand ■ Ricoh Components &

Products (Shenzhen) Co., Ltd.

■ Ricoh Japan14 Production

Sites.

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Ricoh Environmental Leadership

• “As the global environment is in critical condition, business communities are expected to take a leadership role in building a new social paradigm.” (S. Kondo 2008)

• “ ….. customer expectations of RICOH will evolve into long lasting trust. They will realize that the RICOH Group truly lives up to its "Harmonize with the environment" value. In this way, the RICOH brand will grow in society. “ (M Sakurai 2011)

“What makes Ricoh great is not only our superior technology, but it is also our culture of innovation”.Zenji Miura (CEO, Ricoh Company Ltd)

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Sustainable Environmental Management

* Ref - www.ricoh.com/environment/management/picture.html * Ref - www.ricoh.com/environment/management/vision.html

Resource Conservation create a resource recirculating society

Energy Conservation combat issues associated with climate change

Pollution Prevention environmentally safer manufacturing

Environmental management system, Environmental information system, Environmental accounting, Environmental education, Produc lifecycle

assessment, Communications etc.

Biodiversity Conservation improve the Earth’s self-recovery capabilities

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2010 20502000 2013 2020 2030 2040

100%

80%

60%

40%

20%

0%

TECHNO-CENTRICTechnical

innovation effect

Ricoh’s long-term goals for environmental impact reduction

ECO-CENTRICEncouraging all employees

to participate in environmental activities

1/8

TECHNO-CENTRICTechnical

innovation effect

2013 Goal25% reduction

2010 Goal20% reduction

2030 Goal30% Reduction

2050 Goal87.5% Reduction

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Building a Sustainable Society - Balance

1:Reducing the impact of our environmental activities

• Energy Saving / Global Warming Prevention

• Resource Conservation / Recycling• Pollution Prevention

2: Preserve the eco-system(Biodiversity)

• Increase the earth’s regenerative capacity

• Maintain and enhance the eco-systems

Ricoh Group's global environmental conservation: Keeping environmental impact within the self-recovery capabilities of

the Earth

12

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Ricoh Group Standards

Environmental Strategies 2000

2005 Ricoh established the Year 2050 Long-Term Environmental Vision to reduce environmental impacts to one-eighth of year 2000 level (a “World 1st”)

2002: Zero Waste: all Ricoh Group Manufacturing sites achieve Zero Waste to Landfill standard.

2009 established a Biodiversity standard to integrate conservation into their business activities

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Established in 1985Based in Telford, Shropshire£270 million salesSupplying European market place

Ricoh Telford - RPL

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REPCEstablished 2014

Product lines:• MFP light Assembly

Employees: 6 + DHL staff

RPLW (Wellingborough)Acquired 1996

Business lines:• Machines forward and reverse logistics• Service parts logistics (ESPC)• Machines recycling• Customer data cleansing (sanitization) Employees: 78

RPLS (Stirling)Acquired 2014

Product lines: • Digital Duplicator inks and

mastersEmployees: 36

Product lines:• Production Print products & services• Recycled products & R&D• Toner production• Solutions products & services• PP & Ink Jet Technical Centre

Employees: 679

RPL (Telford)Opened 1985

Ricoh Industry France

New Multi Site Operations

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Product Range

Site Entrance

RPL3

RPL2

RPL1

Cartridge Recycling

Colour toner

+ Moulding

Remanufactured

Copiers

Production Printers

Colour toner

+ Moulding

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Landfill

Green ProcurementSuppliers 

environmental management 

systems

BiodiversityConservation on and off site 

Recycling of ProductsRecycled machines, parts and cartridges

Energy & Water ReductionManagement of CO2/Water

Resource ConservationMinimisation & Zero Waste to Landfill

(Waste‐2‐Product) Environmental Action Committee

Social ResponsibilityEmployee and stakeholder engagement, improving brand awareness & customer satisfaction

Pollution PreventionPrevention controls, methodology and testing

Legal ComplianceCompliance & incident management

Environmental Action Committee

16

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Ricoh Telford

• Energy Efficiency Accreditation Scheme (Top 5 UK) 2004

• BQF UK Gold Medal for Sustained Excellence 2009

• Environment Agency: Best private sector Finalist 2010

• Business Commitment to the Environment Premier Award 2011• Benchmarking - being confident in sharing validated environmental best practice

Benchmarking

Ricoh recognised as one of Top Global sustainable corporations.

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Ricoh Telford Factory Turnover – 10 Years

0

50

100

150

200

250

300

350

400

450

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

£ M RPL Telford Turnover (£M) Turnover (£M)

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Strategic Summary

Concept: Long term strategic approach with staged targets

Approach: Eco-centric culture change with Techno-centric development, staged targets (Mid Term Plans) working towards 2050,

Result: Not optional activity - Sustainability embedded into management culture with performance targets (organisational and individual).

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Energy (CO2) Conservation

Ricoh Group's global environmental conservation:

Keeping environmental impact within the self-recovery capabilities of the Earth

11 22Energy Reduction

Reducing Operational Impact

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RPL Energy / CO2 Use – Our History

RPL Energy - CO2 Emissions V Cost

0

2000

4000

6000

8000

10000

12000

14000

1997 1998 1999 2000 2001 2002

CO

2 (To

nnes

)

£-

£200,000

£400,000

£600,000

£800,000

£1,000,000

£1,200,000

Ann

ual E

nerg

y Co

st

CO2 emission (G+E)Total Energy Cost

RPL Annual energy expenditure £500KAnnual emissions of 11Kt CO2

Low levels of energy management.

Electricity Purchase Price (£/MWh)

0

0.2

0.4

0.6

0.81

1.2

1.4

1.6

1.8

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

Elec

tric

ity

(£/M

egaW

att Hou

r)

Average of 10 Kt CO2Emissions90% Energy Cost Increase.Further energy cost increases predicted.

Information supplied by Andy Smith RPL

Energy Prices continue to rise approx 7% year

on year

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RPL CO2 Reduction - Overall Contribution to reduction

3. Gain understanding

, 5.0%

2. Identification

o f energy use , 5.0%

1. Data Monitoring,

2.5%

9. Horizontal deployment,

20.0%8. Confirm effect , 5.0%

7. Implement techno log ies ,

40.0%

4. Implement low -cost

improvements, 7.5%

5. Research techno log ies,

10.0%

6. Design unique

so lutions, 20.0%

RPL CO2 Reduction - Approach

1.Data Monitoring and Analysis

2. Identification of energy intensive equipment 

3. Understand plant operation and process requirements

4. Implement zero / low‐cost improvements

5. Research technologies

7. Implement technologies & automated efficiency management

8. Confirm effect & review opportunities for further improvement (Kaizen)

9. Horizontal deployment 

6. Design RPL unique solutions to add value

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Energy Reduction Activity – Lighting

RPL1 Toner Plant WarehouseManually Switched Sodium Lighting

High Frequency LightingWith integral occupancy / ambient light control

Annual Energy Cost Reduction = £25KReturn on investment = 1.6 Years 

CO2 Emissions Reduction of 150t per annum

BeforeAfter

Light quality improved +

Typically 60%

reduction in energy

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Energy Reduction – Site Deployment of VSDs

Fixed Speed pumps / fansDynamic Variable Speed Drive

(VSD) pump/fan control

Annual Cost Reduction = £85KReturn on investment = 7 Months 

CO2 Reduction of 520t per annum

ELECTRIITY USED ‐ AHU7 (RPL1 Office) Improvements

0

1

2

3

4

5

6

00:0001:1502:3003:4505:0006:1507:3008:4510:0011:1512:3013:4515:0016:1517:3018:4520:0021:1522:3023:45

Time Of Day

Pow

er (k

W)

Fixed Speed VSD ‐ 90% Air VolumeVSD Variable air volume

Annual Electricity Cost=£1,191CO2 = 7.5t

68.5%Reductio

n

BeforeAfter

RPL Unique ‘Knowledge’

‘Off the shelf’ solution

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Combined Heat & Power

Ricoh December 2010: CHP Plant, gas fired generator power for building and also heats waterDomestic Hot Water System summer efficiency increased from 16% to 92%Onsite generation of “low Carbon” electricity (transmission losses minimised)Overall cost reduction >£22K p.a (150t CO2)

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Site LED Lighting

89% savings compared to previous sodium lighting (40% site coverage on-going)

19/02/2016 23

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2020/2050 CO2 Emissions Targets

RPLT/RPLW Data only

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Summary

£1M p.a. Energy Cost avoided.4,000t per annum CO2 reduction.Average ROI <1.9 Years.Recognised externally as an environmental leader.Knowledge gained will drive future activities and compliment Ricoh Professional Services.RPL has outperformed other Ricoh production facilities in energy reduction

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Ricoh Telford Water Use – 10 Years

Installation of water recycling in process cooling plant Reduction in production demand in water intensive plant.Installation of waterless hygiene systems.Installation of timed off domestic tap fittings.Switch it off campaigns

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

metres ³ RPL Telford Water (m³) Water (m³)

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Resource Conservation

Zero Waste & Remanufacturing

Reducing Operational Impact

Ricoh Group's global environmental conservation:

Keeping environmental impact within the self-recovery capabilities of the Earth

11 22

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Ricoh Group Standard: Zero Waste to Landfill

All Ricoh Group Manufacturing sites since March 2002

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Adaptation of Corporate modelManagement CommitmentCultural issuesEmployee involvementResourcesWorking methods Maintenance and Compliance

Launch 2000: Challenges and Problems

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Project launch included all employees

Presentations were given by senior managers/Director to demonstrate support for project

Team working activities followed presentations in respective work areas

3R’s: Reduce-Reuse-Recycle

Zero Waste Launch - 2000

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Manufacturing Environments

Segregation in, or adjacent to work areas

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RPL Office Environment

No personal binsCentral segregation areas

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Ricoh Telford waste streams

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Zero Waste 2001: Waste-2-Product

Waste-2-ProductWood palletsPlastic palletsSteelFerrous metalsAluminium PaperCardboardPlasticsGlassElectronic equipmentGeneral WasteHaz waste

…. then prepared for the contractor (customer)

Recycling Centre

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1995 : introduced toner compactor - enabled reprocessing of waste toner

2000: System modified increasing efficiency from 60%–95%.

Financial saving - reduction in raw-material cost 2001 totalled £294,995

Reuse: Raw Material Substitution

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Reuse: Packaging Re-use

• Martini Product Corner post packaging re-use• Returnable post extension designed, enabling

waste posts to be used on finished products• Waste reduced by 83 tonnes per year• Reduction of waste for end user

Page 37: Uni of Aston 2016 (widescreen)

13

163

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Zero Waste to Landfill: 2001

Approach: Recognising “waste” as a resource (Waste-2-Product) Management commitment, targetsOwnership through people involvement and use of knowledge“Segregate at Source” approach included in employees induction Compliance with environmental legislation,

Result: waste recognised as a resource for sale and cost saving, whilst reducing environmental impacts.

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What is inspiring or special ?

Zero Waste to Landfill (100% recycling) since Sept 2001

Diverted over 16,000 tonnes

= 2100 x

2012/13: 95% of all manufacturing “waste” is now recovered with only 5% being sent for Incineration with Energy Recovery

44%

0%

56%

2000 - Material RecoveryLandfillEnergy From WasteMaterial Recovery

0%5%

95%

2009-Material RecoveryLandfillEnergy From WasteMaterial Recovery

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(£60,000)

(£40,000)

(£20,000)

£0

£20,000

£40,000

£60,000

£80,000

£100,000

£120,000

£140,000

£

Zero Waste Profitability Disposal CostRevenueProfit

Zero Waste Business benefit

Zero Waste “Waste-2-Product” Profitability

- £46k

£50k £59k

Page 41: Uni of Aston 2016 (widescreen)

European Business Review 2013

Effect of business change Total waste decreasedPackaging decreased (Card)

Ricoh Group Review - 2013Rationalisation of European business sites RPL and Ricoh France share effect of reduced business

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2050 Waste (Telford)

19/02/2016 Version: [###] Classification: Internal Owner: [Insert name] 42

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European Business Review 2013

Material Recovery RateBusiness change has resulted in 43% reduction in waste (lowest ever)Waste decreasing due to reduced Card and plastic segregation issues (China “Green Fence” effect) Current Material Recovery result: 88%

ProfitabilityCosts have exceeded revenue for the first time since 2002 : -£75K (highest ever)

ActionReview of waste streams on goingTarget - Improve segregation quality

0%12%

88%

2014-Material Recovery

Page 44: Uni of Aston 2016 (widescreen)

Current Actions

Review of Plastic recycling– Created Plastic Hierarchy to identify

materials (Closing Loop)

Work Instruction Review– Clearer signage

PET Raw material Supply

WastePETFor

Recycling

Page 45: Uni of Aston 2016 (widescreen)

Targeted waste streams

Plastics– LDPE Foam divert from Gen

Waste (incineration).ActionsHot melt styrene unit budgeted 2015-A

Toner waste– Toner Powder / Cartridges

/Plastic AssembliesActions– trial complete, Results review

end of Feb

Page 46: Uni of Aston 2016 (widescreen)

Reuse

Converting incoming packaging waste to logistical assetsImported Toner packaging -

Page 47: Uni of Aston 2016 (widescreen)

Reuse – options ?

Recycling CentrePackaging for

recyclables

Reject pallets sent for Recycling

Robust Packaging –Re-useable?

Toner Consumables Finished Goods Packaging

Page 48: Uni of Aston 2016 (widescreen)

Pallet Reuse Flow 2015

Ricoh JapanImported Toner(plastic pallets)

Ricoh UK Products Ltd

(RPL) Toner Filling

BOZ (Netherlands)Distribution Centre(Central Stock of Reused Pallets)

RPL Recycling Centre

(Recycled)2,517

Ricoh Industries France

Imported12,538

10,011 Reused added to Central Stock

Returned to RPL for Reuse

Cost of Pallet: £28Saving: £28, 308 per year

Page 49: Uni of Aston 2016 (widescreen)

Recycling: Cyclical Business model

Improve waste segregation to create new

“Product”

Supply product Reduce cost – Receive revenue

Market saturation

Recycling Contractor rejects low quality product

Decrease in operational performance

Drives innovation & process change (resource required)

Zero Waste is an ongoing continuous development

Page 50: Uni of Aston 2016 (widescreen)

Resource Conservation

Remanufacturing

Reducing Operational Impact

Ricoh Group's global environmental conservation:

Keeping environmental impact within the self-recovery capabilities of the Earth

11 22

Page 51: Uni of Aston 2016 (widescreen)

THE PERFECT STORM

2030

World's population

will rise from 6bn

to 8bn (33%)

Demand for food

will increase by 50%

Demand for energy

will increase by 40%

Demand for water will

increase by 30%

Professor Sir John Beddington, UK Government Chief Scientist (2009)

What’s the problem?

Page 52: Uni of Aston 2016 (widescreen)

WHAT’S THE PROBLEM?

OECD Development Centre, Working Paper 285 (Kharas, 2010)gfh

2014

Page 53: Uni of Aston 2016 (widescreen)

Transition to a sustainable economy

Resilient to changing environmental conditions

Resilient to changing environmental conditions

Operates within environmental limits Operates within 

environmental limits 

Low carbon and resource efficientLow carbon and resource efficient

Page 54: Uni of Aston 2016 (widescreen)

Resource Security - “Peakonomics”

Chris Martenson (Crash Course)

Jae Mather (Carbon Free Group)

Heed the warnings …….

Page 55: Uni of Aston 2016 (widescreen)

Gold

Page 56: Uni of Aston 2016 (widescreen)

Copper

Page 57: Uni of Aston 2016 (widescreen)

Copper

Big Nuggets

Small Nuggets

Copper Ore Vein - 10%

Page 58: Uni of Aston 2016 (widescreen)

Copper Ore Vein: 0.2%

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Copper

Earth movers capacity = 255 tonnes0.2% = 0.5 tonnes of copper per load

Business Opportunity?Oil prices rising / mining capacity decreasing1 Load = Equivalent to 3,400 donkeys

Future manufacturing impact?Copper availability decreasesCopper price rises to unaffordable manufacturing costs …….No production / products ……No Business Continuity .

Page 60: Uni of Aston 2016 (widescreen)

IEMA – From Waste to Resources

Resources are the life blood of manufacturing. Without a clear view of supply risks and an active and ambitious strategy to manage those risks, businesses will be increasingly vulnerable to price volatility, supply chain disruption and business continuity risks. Susanne Baker, AIEMA, EEF and Chair of Materials Security Working Group Read more about Susanne’s work at www.iema.net/rm111

19/02/2016 60

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IEMA – From Waste to Resources report

19/02/2016 61

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The Circular Economy

COLLECTION

Extradition of biochemical feedstock2

Anaerobic digestion

/composting

Biogas

Restoration

Biologicalnutrients

Mining/materials manufacturing

Technical nutrients

Farmingcollection1

Biochemical feedstock

COLLECTION

1. Hunting and fishing2. Can take both post harvest & post consumer waste as an inputSource: Ellen MacArthur Foundation economy team

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Ricoh Comet Circle

19/02/2016 63

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Manufacturing Today

The sustainable ideal is a balanced 3Ps approachMost of today’s product tends towards 1st life/ single use (profit centric)Sustainable design is increasing, but not yet the mainstream Ricoh reacts to the market conflict of “1st Life vs. Sustainable Customer Demand” through

Robust reverse logisticsLife cycle (Comet Circle) drive towards retention of assets

Ricoh’s role is to learn, and move towards resource conservation.

Planet

People ProfitProfit

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20502000

100%

80%

60%

40%

20%

0%

Ricoh’s 2050 Plan Impact reduction

Virgin Fossil and Mineral materials

Reuse of productsand parts

50%of incoming materials from Recycledor Reused

Page 66: Uni of Aston 2016 (widescreen)

Land use(factory construction/

landscaping).

Collection/ Recycling

Water Timber

Crude Oil

(fuel)

Natural

GasCoal

Zinc Ore

Nickel Ore

Copper Ore

Molybdenum

Platinum

Chromium Ore

Manganese Ore

Silver

Ore

Bauxite

Lead

OreTin Ore

Crude Oil(raw Material)

Silver

OreGold Ore

Titanium

C O

(carbon Monoxide)

NOx

(Nitrogen Oxide)

SOx

(Sulphur Oxide)

CO2

(Carbon Dioxide)

N20

(Nitrous

Oxide)

CxHy

(hydro

Carbons)CH4

(Methane)Dust

NMVOC(Non-methane

Hydrocarbons)

Slag

Unspecified Solid Waste

Sludge

BOD

(Biological Oxygen

Demand)

COD

(Chemical Oxygen

Demand)SS

(suspended Solids)

Logistics/ Marketing

Procurement of raw materials

Use/ Maintenance

Input Output

Design/ Manufacturing

Continuous INPUT of resources to create products and OUTPUT of chemical substances, a linear relationship between these two are to be the basis of increasing the negative environmental impact on the

Earth.

In the future, if natural resources are to be depleted the we won’t be able to continue our normal business activities. We wonder if there is

a way to avoid running out of resources as opposed to such linear activities.

Extracted Resources for the business activities

such as

•Energy resource

•Mineral resource

•Renewable Resources

Substances that discharge in the

process of business activities.

Resource Security

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Leasing Eco-Line products

UK RemanufacturedProducts

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Why Leasing ?

Leasing is a big transition for our society and some fundamental problems need to be solved for a circular economy to be achieved.

Challenges include:

– Companies have no incentive to design products for scenarios after they have been used.

– The public are confused and inconvenienced by what to do with products at the end of use.

– A lack of the right data (i.e. capturing the millions of products that are passed onto recyclers and waste handlers), makes it difficult to capture high value in reuse and recycling.

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Why Leasing ?

If businesses shifted from selling products to leasing products as services, the three problems above could be solved.

Users would know where to send things at the end of use. It would be in a companies interest to design for durability, repair-ability and recyclability as they try to maximise the life of each product.

Recyclers could be passed purer streams of materials and all the information needed to recycle at a high quality.

Problem- making the proposition attractive to customers is more complicated

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Why Leasing ?

Responsibility of the user - Ownership of products is an established model of consumption, it provides an easy to understand line of responsibility. But where products are leased the line becomes blurred.

The terms of different contracts vary and products can become a burden of responsibility. (i.e. “wouldn’t like to lease in case they broke it”).

Expectation from customers - ‘it’s more effort and paper work to understand the terms of the agreement as well as the extra responsibility on payments each month.’

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Issues

Trust in the brand - The user's relationship with the lease provider and the trust that they will deliver the service well, is also key.

People feel the quality of a product can be assessed in a store. But assessment of a services’ quality is dependant on how events unfold over time and interviewees did not always trust providers to deliver once the contracts are signed. – e.g. gym memberships and satellite TV subscriptions can make

it hard to leave, instead of improving the service experience.

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Moving from “Products” to “Assets”

A leased product is no longer just a product. The service takes on a part of the value proposition, which can hinder or benefit use of the product. The service should not de-value the proposition, services need to be cared for as much as the products themselves i.e.

– in the case of leasing a Photocopier, the offer should be more than the latest “executive” model and have a range to choose from.

– Manufacturers might offer advice or new accessories to improve the performance on a continual basis.

The opportunity is about selling the longevity of the product (i.e. letting customers know how many life cycles it has generated). These examples show the potential for a deepening customer and brand relationship. Leasing models can and should be able to offer extra value beyond the sale of a standard product.

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Conclusion: Leasing

To make leased products attractive to customers, services need to have value embedded, and have the same attention to detail that goes into designing products.

To create “brand” affiliation, trust is vital. Services offer “brands” a closer relationship with customers. But that requires extra trust, which must be maintained if a long term success is to be created.

Manufacturers also need to understand how to achieve a balance between incentives that encourage people to look after items they lease, without scaring customers of the consequences if things get damaged.

Manufacturers benefit from improved reverse logistics (resource conservation) and customer retention (business continuity)

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TELFORD FACTORY

Ricoh Remanufacturing

Green centre

Firmware upgrades

Technical modifications

PRODUCTION LINE

COMPONENTS

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Eco Line - Remanufacturing Process

Remanufactured machines (BS-MADE 8887-220)Striped to chassisAll mortality parts replaced /All panels sprayedAll firmware / software modifications fittedCompletely Re-branded and sold as new lineQuality Control: inspected and assured the same as new productsExtending the life cycle, reducing environmental impact

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Customer Experience Centre - showcase facility within the manufacturing process, featuring end-to-end work flows and integrated solutions from Ricoh.Developing brand affiliation and trust through customer interaction and engagement.

Ricoh CEC

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Life Cycle Analysis

Raw material Manufacture Customer usage Recycle & disposal

Remanufacturing = 38% Environmental impact reduction

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Life Cycle: Comet Circle deployment

Customer

OperatingCompany

Product Manf.

PartsManf.

MaterialsManf.

Materials Supplier

Maintenance Parts Recovery

MaterialsRecovery

MaterialSeparation

Raw material recovery

Incineration with Energy Recovery

Final Disposal

Recovery

Secondary User of Materials

RecyclingCentre

Green Centre

Remanufacturing Zero Waste

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Business Benefits

19/02/2016 Version: [###] Classification: Internal Owner: [Insert name] 79

Asset Remanufacturing of Ferrite RollersProduct / Process

Apollon C1 Fuser

How Much 200 units per month

Business Benefit

Saving compared to manufacturing new = £13/Roller

Comments First stage of Remanufacturing development, development and justification of the process was challenging, but ultimately developed a low skill cost effective process requirement.

+ Comet Shifts

2

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Business Benefits

19/02/2016 Version: [###] Classification: Internal Owner: [Insert name] 80

Asset Jupiter OPC unitProduct / Process

Remanufacture of unit including reuse of aluminium drum and weight (rather than recycling).

How Much 7000 drums saved over 1 years production.

Business Benefit

Savings compared to buying new units = £61,000

Comments extension and development of the Ferrite roller process

+ Comet Shifts

2

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Business Benefits

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Asset Supplies Remanufacturing DepartmentProduct / Process

European wide sourced Toner cartridge Remanufacturing of AIO / PCU / Fuser units

How Much reverse logistics return 55tonnes / month. 52 tonnes are remanufactured (Process yield is 95%, with 5% sent for recycling).

Business Benefit

Based on the avg selling cost within the Ricoh demand chain the process is worth €11 million per month, the direct benefit to the manufacturing process compared to buying virgin materials and parts is €2 million per month.

Comments Now established as part of European manufacturing operations

+ Comet Shifts

3

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Business Benefits

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Asset Machines RemanufacturingProduct / Process

Remanufacturing of copiers and production printers following BS887-2

How Much 160 units per monthBusiness Benefit

40% cost savings compared to new models, reducing environmental impact by 38%

Comments Established as part of RPL manufacturing operations

+ Comet Shifts

3

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Resource Conservation

Concept: develop business strategy to maintain materials for productivity– Compliance – Long term approach (2050 Plan)– Supply Chain awareness and change in procurement– Life Cycle - Comet Circle deployment– Diversification of operation (remanufacturing)

Result: Reduced environmental impact of operation, extended life cycle of materials, resulting in a changing operation to maintain future business continuity (Sustainability).

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Harmonising with the Environment

Stakeholder Support & Social Responsibility

Ricoh Group's global environmental conservation:

Keeping environmental impact within the self-recovery capabilities of the Earth

11 22

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The Ricoh Way – Social Contribution

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The Ricoh Way: Practical Contributions to Society

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Employee Engagement & Advocacy

Interest(Contract)

Supporting(Volunteer)

Environmental Leader

(Stakeholder)

Biodiversity(Advocate)

Specialist(Partnership)

Social Responsibility

Per

sonn

el D

evel

opm

ent

Business Excellence Model

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Natural Capital with Health & Well-being

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RPL Proposed Site layout with SuDS

Upper level pool

Cascade

Lower Level Water Pool

Employee Walkway

Employee accessBird Observation Hide

Employee Walkway with interpretation boards

RPL2Building

RPL1Building

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Business impact: Water Framework Compliance

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Middle Severn Catchment Steering Group

Clean Stream Team

Community / Business / Wildlife Trust / AgencyPartnership • Water sampling

• Report pollution

• Investigate Source Pollution

• Stop Pollution• Improve water quality

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Social Responsibility Summary

Concept: Corporate Social Responsibility refers to corporate behaviour that demonstrates open and transparent business practices based on ethical values and respect for employees, communities and the environment.

Approach: Eco-centric employee involvement on and off site in the community (business support, community involvement, local conservation)

Result: Brand awareness increases, providing Environmental Social Responsibility evidence.

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The Ricoh Way – Responsible Business Growth

RPL’s expertise is used to assist Ricoh Salesand to show customersThe Ricoh Way

Ricoh Telford’s Energy Reduction exceeds Ricoh’s CO2 targets and also saves £0.5 Million per year.

The Waste -2-Product program increases the life cycle of materials whilst increasing profitability

Remanufacturing Eco Line and Supplies Recycling increase the sustainability of raw materials and our manufacturing process

Waste and CO2 generation is now decoupled from growth (turnover increased by 325% since 2003) in line with Zero Impact Growth philosophy

Waste-2-Product

RPL Energy Reduction (CO2)

RPL Telford Electricity (MWh)

5,000

7,000

9,000

11,000

13,000

15,000

17,000

19,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

MWh

Electricity MWh

Corporate Biodiversity actively repairs damage and engages employees and stakeholders.

RPL Telford Turnover (£M)

0

50

100

150

200

250

300

350

400

450

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

£ M

Turnover (£M)

Impact vs £ Turnover

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Summary

Strategy: to develop our business to maintain materials for productivity Long term approach (2050 Plan)Zero Waste underpins Sustainable Resource ManagementIncreasing Supply Chain awareness of Reverse Logistics Circular Economy - Comet Circle - deploymentDiversification of operation (remanufacturing)

Result:Manufacturers and Customers now beginning to grasp Resource Conservation as a strategic issue.Reduced environmental impact of operation, extended life cycle of materials, resulting in an increased ability to maintain future business continuity (Sustainability).

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To reduce the environmental footprint from a long term perspective, we are sharing our internal experience and expertise in sustainable environmental management with our stakeholders, including our suppliers and customers.

Shiro KondoRicoh President & CEO

Sustainability Challenge

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Testing the eco-centric dynamic capabilities framework may be challenging, because of the need to find firms willing to adopt a transformational approach. However, as the increased costs of doing business associated with resource depletion, problematic waste disposal, environmental degradation, species extinction, and devastating weather patterns become more widespread, firms willing to adopt, as well as those actively seeking, new strategic approaches likely will increase in number.

(Borland et al, Building Theory at the Intersection of Ecological Sustainability and Strategic Management,2014)

Sustainability Challenge

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