Ricoh aims to reduce its environmental impact through technical innovation and encouraging employee participation in environmental activities. It has set goals to reduce environmental impact by 25% by 2013, 30% by 2030, and 87.5% by 2050 from a 2010 baseline. Ricoh is developing a circular economy approach through remanufacturing used products and parts to extend their lifecycles and reduce waste. This includes remanufacturing copiers, printers, toner cartridges, and other components, saving costs compared to new production and lowering environmental impact. Ricoh's long term strategy is transitioning to resource conservation and keeping environmental impact within Earth's limits.

1. Introduction to
The Circular
Economy
BESST: Back -2-Basics 2015
Andy Whyle
Ricoh UK Products Ltd

2. 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?

3. 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, Inc
California & Georgia
U.S.A
UK
France
China
Thailand
■ Ricoh Components &
Products (Shenzhen) Co.,
Ltd.
■ Ricoh Japan
14 Production
Sites.

4. 2010 20502000 2013 2020 2030 2040
100%
80%
60%
40%
20%
0%
TECHNO-CENTRIC
Technical
innovation effect
Ricoh’s long-term goals for
environmental impact reduction
ECO-CENTRIC
Encouraging all employees
to participate in
environmental activities
1/8
TECHNO-CENTRIC
Technical
innovation effect
2013 Goal
25% reduction
2010 Goal
20% reduction
2030 Goal
30% Reduction
2050 Goal
87.5% Reduction

5. Product Range
Site
Entrance
RPL
3
RPL
2
RPL
1
Cartridge
Recycling
Colour toner
+ Moulding
Remanufactured
Copiers
Production
Printers
Colour toner
+ Moulding

6. The Future -
Resource
Conservation
Ricoh Group's global
environmental conservation:
Keeping environmental impact
within the self-recovery
capabilities of the Earth
1
2

7. 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?

8. WHAT’S THE PROBLEM?
OECD Development Centre, Working Paper 285 (Kharas, 2010)gfh
2014

9. Resource Security - “Peakonomics”
Chris Martenson (Crash Course)
Jae Mather (Carbon Free Group)
Heed the warnings …….

10. Gold

11. Copper

12. Copper
Big Nuggets
Small Nuggets
Copper Ore Vein - 10%

13. Copper Ore Vein: 0.2%

14. Copper
 Earth movers capacity = 255 tonnes
 0.2% = 0.5 tonnes of copper per load
 Business Opportunity?
 Oil prices / mining capacity decreasing
 1 Load = Equivalent to 3,400 donkeys
 Future manufacturing impact?
 Copper availability decreases
 Copper price rises to unaffordable
manufacturing costs …….
 No production / products ……
 No Business Continuity .

15. Transition to a sustainable economy
Resilient to changing
environmental conditions
Operates within
environmental limits
Low carbon and resource
efficient

16. 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
22/04/2015 16

17. The Circular Economy
COLLECTION
Extradition of
biochemical
feedstock2
Anaerobic
digestion
/composting
Biogas
Restoration
Biological
nutrients
Mining/materials
manufacturing
Technical nutrients
Farming
collection1
Biochemical
feedstock
COLLECTION
1. Hunting and fishing
2. Can take both post harvest & post consumer waste as an input
Source: Ellen MacArthur Foundation economy team

18. IEMA – From Waste to Resources report
22/04/2015 18

19. Ricoh Comet Circle
22/04/2015 19

20. Remanufacturing
Reducing
Operational Impact
Ricoh Group's global
environmental conservation:
Keeping environmental impact
within the self-recovery
capabilities of the Earth
1
2

21. Manufacturing Today
 The sustainable ideal is a balanced
3Ps approach
 Most of today’s product tends towards
1st life/ single use (profit centric)
 Sustainable design is increasing, but
not yet the mainstream
 Paradigm Solution -
 Robust reverse logistics
 Life cycle (Comet Circle) drive
towards retention of assets
 Ricoh’s role is to learn, and move
towards resource conservation.
Planet
People Profit
Profit

22. 20502000
100%
80%
60%
40%
20%
0%
Ricoh’s 2050 Plan
Impact reduction
Virgin Fossil and
Mineral materials
Reuse of products
and parts
50%
of incoming
materials
from
Recycled
or Reused

23. Land use
(factory construction/
landscaping).
Collection
/ Recycling
Water Timber
Crude
Oil
(fuel)
Natural
Gas
Coal
Zinc
Ore
Nickel
Ore
Coppe
r Ore
Molybdenu
m
Platinu
m
Chromium
Ore
Manganese
Ore
Silver
Ore
Bauxite
Lead
Ore
Tin Ore
Crude Oil
(raw Material)
Silver
Ore
Gold 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
Unspecifie
d Solid
Waste
Sludge
BOD
(Biological
Oxygen
Demand)
COD
(Chemical
Oxygen
Demand)
SS
(suspende
d 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

24. Eco-Line products
 UK Remanufactured
Products

25. TELFORD FACTORY
Ricoh Remanufacturing
Green centre
Firmware
upgrades
Technical
modifications
PRODUCTION LINE
COMPONENTS

26. Eco Line - Remanufacturing Process
 Remanufactured machines (BS-MADE
8887-220)
 Striped to chassis
 All mortality parts replaced /All panels
sprayed
 All firmware / software modifications fitted
 Completely Re-branded and sold as new
line
 Quality Control: inspected and assured the
same as new products
 Extending the life cycle, reducing
environmental impact

27. Life Cycle Analysis
Raw material Manufacture Customer usage
Recycle
& disposal
Remanufacturing = 38% Environmental impact reduction

28. Life Cycle: Comet Circle
deployment
Customer
Operating
Company
Product
Manf.
Parts
Manf.
Materials
Manf.
Materials
Supplier
Maintenance
Parts
Recovery
Materials
Recovery
Material
Separation
Raw material
recovery
Incineration with
Energy Recovery
Final
Disposal
Recovery
Secondary User of
Materials
Recycling
Centre
Green
Centre
Remanufacturing Zero Waste

29. Business Benefits
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Asset Remanufacturing of Ferrite Rollers
Product /
Process
Apolon C1 Fuser
How
Much
200 units per month
Business
Benefit
Saving compared to manufacturing new
= £13/Roller
Comment
s
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

30. Business Benefits
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Asset Jupiter OPC unit
Product /
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
Comment
s
extension and development of the
Ferrite roller process
+ Comet
Shifts
2

31. Business Benefits
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Asset Supplies Remanufacturing Department
Product /
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

32. Business Benefits
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Asset Machines Remanufacturing
Product /
Process
Remanufacturing of copiers and production
printers following BS887-2
How Much 160 units per month
Business
Benefit
40% cost savings compared to new models,
reducing environmental impact by 38%
Comments Established as part of RPL manufacturing
operations
+ Comet
Shifts
3

33. 22/04/2015 Version: [###] Classification: Internal Owner: [Insert name] 33
Caterpillar estimate that 35% of their costs
lie in overheads, while the majority – 65%
– are materials costs. So salvaging
materials gives a greater business
advantage for the company over their
competitors, where goals are often focused
on driving down overhead costs.
Michelin Fleet Solutions, offering tyre
management to optimise the performance of
large truck fleets— in Europe, 50% of large
truck fleets externalise their tyre
management. By maintaining control over the
tyres throughout their usage period, Michelin
is able to collect them at end of the leases
and extend their technical life (i.e. re-
treading) and reintegration into the material
cascade at end of life.
From Selling Tires
to Selling Kilometres
Resource Conservation

34. 34
Renault’s ability to structure and run its
reverse logistics chain and access a
steady stream of cores, together with its
deployment of highly skilled labour, has
allowed the company to grow its
remanufacturing operations into a 200
million euro business.
Resource Conservation
Kingfisher
• Researching, developing and
implementing circular business model
trials
• Delivering Kingfisher’s Net Positive
objective of selling 1000 products with
closed loop credentials by 2020
• Creating a strong network of suppliers
who are aligned around the need to
transition to a circular economy

35. Summary
Strategy: to develop business to maintain materials for productivity
 Develop a long term approach (2050 Plan)
 Zero Waste underpins Remanufacturing
 Increasing Supply Chain awareness of Reverse Logistics
 Circular Economy deployment
 Diversification 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).