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Environmental Commitments in Global Business
May 13, 2009
//by Masamitsu Sakurai
Masamitsu Sakurai, Chairman of Ricoh, Chairman of Keizai Doyukai, and li sted on
Ethisphere’s 2008 100 Most Influential People in Business Ethics, says Companies are
going to have to respond to a “Post -Kyoto” world. The expectations of this new world will
now be far more demanding in terms of emission reduction targets and the need for total
participation, feasibility and fairness. In addition to these new global demands, corporate
executives will still be expected to manage the continuous growth of their business.
The pressing concern of the world right now is how to minimize t he effects of global warming.
To achieve this goal, the emission reduction targets for each country should be much higher than
Kyoto levels. Such targets cannot be reached through regular efforts, something extraordinary is
required. This is where innovati on comes in.
In this context, the role of business is growing fast. First, each corporation must set its own
targets with an aim to contribute sufficiently to the global reduction tally. It’s the only way.
Every business must take on these challenges throu gh technological process innovation.
Eventually, low carbon products and services will result from ever lower low -carbon production
processes. By building product recycling systems, there is no reason why we shouldn’t be able to
reduce green house gases on the one hand while growing the economy on the other.
We have no time to waste when it comes to environmental protection. The role and
influence of corporations is becoming greater.
I became president of Ricoh in 1996. At that time the situation in the ind ustry was one of
cautious steps toward conservation, with prevalent concerns about costs and the effects on the
bottom line. This kind of mentality, even within our company, risked driving the costs ever
higher. I strongly believed, even then, that on the contrary, environmental conservation would
result in decreased operational costs. This is the message I kept repeating to our directors,
employees and shareholders. Little by little I proved this to be the case by taking actions even on
a small scale.
At R icoh, environmental conservation went through three stages: The first stage, the Passive
Stage, consisted of following regulations and reacting to outside pressure like “green
procurement.” The next stage was the Proactive Stage where, as volunteers, we be came imbued
with a sense of mission regarding our planet. Through stage two, our efforts were not yet
profitable. Finally, at the third stage, the Responsible Stage, we were able to simultaneously
achieve environmental conservation and profit creation. Thi s advanced stage is where Ricoh is
now. The results of our activities during the Responsible Stage are published annually in our
Sustainability Report and are very well received by our stakeholders.
For example, we created a financial advantage by implemen ting environmental conservation
through the following initiatives: We shifted to a flexible, cell -based production system as opposed to a line system, thus
reducing CO2 emissions and increasing productivity.
We recognize d that CO2 emission and waste reduction were the same as the cost savings
and reduction of parts, materials and wasteful operations in which we were previously
engaged. I am firmly convinced that these ideas resulted in increased production, reduced
costs and improvements in the quality of our products.
We realized that it has become essential to visualize CO2 emissions not only in the
production process but in all other operations. Once you can identify where emissions are
the highest, that is your starting point for reduction and new ideas emerge out of this
process. When cost is added in as a factor, you ought to be able to see real improvements
in production as well as cost reduction. When the results become apparent, everyone is
motivated.
In fact, by setting high goals for slowing global warming, we at Ricoh have been able to
motivate everyone to promote process innovation not only in production, but also in all other
operations. Taking the production process as an example, with OPCs (Organic Photo
Conductors), the heart of copiers and laser printers, we managed to reduce CO2 emissions by
more than 85 percent and cut OPC production costs by half. This was achieved through selective
placement of clean v entilation points along the production line rather than needlessly covering
the entire line.
Each corporation must set its own targets with an aim to contribute sufficiently to
the global reduction tally. It’s the only way. Every business must take on thes e
challenges through technological process innovation.
I acknowledge accomplishing ambitious goals is no easy task. There are many obstacles that may
be in your way. For instance, as a large, multinational company, it’s not always easy to convince
differen t regional offices to operate in the same, environmentally -friendly way. To be honest,
there have been some cultural differences in both understanding and commitment between
regions in the past.
One example of how regional problems may come into play is th at a geographically large
country might not have a problem with dumping waste in open spaces, or absorbing CO2
through its abundant nature — and in those countries it was quite a challenge to promote emission
reduction programs. However, gradually, through c ompany -wide global conferences, our senior
executives and managers were able to achieve international cooperation through everyone’s
common understanding of four main points: 1) the importance of conservation; 2) our
responsibility as global citizens; 3) t he significance of the Ricoh Group’s commitment to
environmental management; and 4) the need to educate and encourage all group members to
participate. Nowadays all regions, be it the Americas, Europe, China or Asia Pacific, pursue
similar actions in their own way, and with great enthusiasm.
We have no time to waste when it comes to environmental protection. The role and influence of
corporations is becoming greater. No matter how hard the task, I believe we have no choice but
to tackle global warming now. We simply cannot leave these problems for the next generation to
solve. If you ask me as Chairman of Keizai Doyukai which I prioritize more — stopping global warming or economic growth — my answer is to take global warming seriously while promoting
management innovation toward building a low carbon society.
Business management of the future must be able to generate profits based on achieving high
emission reduction targets. I firmly believe, and would like everyone to believe, that
environmental conservation an d sustainable profits are mutually compatible. If, as a corporate
executive, your commitment to the environment is deep, you will achieve both business and
environmental sustainability as well as enjoy greater success as a business.
Keizai Doyukai, chaired by Masamitsu Sakurai, is the Japanese Association of Corporate
Executives, a powerful industry government advisory body
Under Sakurai, Ricoh was the first company in Japan to commit to the Kyoto Protocol
Ricoh has made the Global 100 list at Davos for the 5th year running.
Sakurai -san became president and eventually CEO of Ricoh in 1996, jumping over 8 senior
executives in the process. He already had behind him 9 years of overseas experience in Europe
where he opened a major production plant and then serve d as European Chairman.
