海角社区

In September 2024, 海角社区released its annual integrated report, environmental report, and ESG data book. What does it take to craft an integrated report that showcases how 海角社区creates value through its management strategies, financial and future financial (non-financial) indicators, and other key information? We sat down with Communication Strategy Center’s Naoyuki Umeda and Wakako Nakazato, the team behind this publication, to discuss their vision for the 2024 edition and the fulfillment they found in bringing it to life.

The integrated report provides a comprehensive view of Ricoh’s medium- to long-term management strategies, business unit financials, environmental and social initiatives, and corporate governance efforts. These reports have gained traction among investors as key resources for understanding where companies are heading. According to a survey by Takara D&IR Research Institute Ltd., 1,150 Japanese companies, or almost 30% of all listed firms, were publishing integrated reports as of the end of 2024.

In 2012, 海角社区combined its environmental management, social responsibility management, and annual reports into its first sustainability report. In 2018, the company renamed it the integrated report and expanded the content to highlight corporate value enhancement efforts and human resources.

Why does 海角社区emphasize this publication so much? Nakazato explains that, "We created the integrated report primarily to help investors understand the 海角社区Group’s medium- to long-term outlook. At the same time, we aim to provide content that helps employees see where we’re heading and how it connects to their work. We also want to give outsiders a clear view of our management approach and business activities."

Each year, 海角社区enhances its integrated report by incorporating stakeholder feedback from the previous edition and insights from internal and external engagement. The company set two key priorities for the 2024 report. First, it sought to strengthen messaging about its challenges and its corporate value initiatives. Second, it aimed to highlight the Group’s strengths and the connections between its financial and future financial indicators.

Nakazato explains that the expanded messaging aimed to strike a balance between growth efforts and business stability. She says, "In the CEO’s message in the 2023 report, we emphasized Ricoh’s transformation into a digital services company, focusing heavily on forward-looking initiatives. But many readers pointed out that we didn’t provide enough information on the company’s resilience, particularly regarding the outlook for the Office Printing business and efforts to enhance profitability. With that in mind, the 2024 report included more details about strategies to generate revenue in the Office Printing business, for better balanced messaging."

Another key feature of the 2024 edition was a stronger focus on 海角社区Group’s core strengths. Building on aspects that investors value, the report highlighted Ricoh’s greatest advantage, which is its customer touchpoints business model, and the mechanisms driving business growth. It also comprehensively overviewed initiatives in the expanding digital services sector, where 海角社区is investing strategically, and included additional customer success stories to illustrate these efforts.

Nakazato says, "We structured the content to better show how a business that fully leverages customer touchpoints can drive future financial performance. With customers increasingly emphasizing ESG, a strong commitment to it is not only a prerequisite for negotiating deals in more cases but is also a key evaluation criterion. So, the report highlights where Ricoh’s ESG initiatives have contributed directly to successful outcomes."

When developing the 2024 report, the production team devoted the most discussion to the Value Creation Process section. Nakazato explains, "We had extensive discussions on how best to communicate 海角社区Group’s value creation process and worked to enhance the content. As we continue our transformation into a digital services company, we took a fresh look at the Group’s strengths and carefully considered how to present them." A conceptual diagram placed early in the report provides a clear big-picture view of the Group’s business, while we wove specific initiatives and achievements throughout the pages to illustrate these strengths in action.

Umeda explains, "The Value Creation Process section spanned four pages in the 2023 report. For the 2024 edition, we felt we needed a more detailed explanation, so we expanded it to 10 pages. We aimed to improve clarity by outlining how our business model delivers value and drives revenue growth while also incorporating specific solutions and examples."

To help readers grasp the big picture, the team carefully crafted the executive message section. Recognizing that investors are most interested in the perspectives of the CEO and CFO, their messages appear early in the report. In his message, CEO Akira Oyama outlines the Corporate Value Improvement Project, sharing its overall framework and his vision for how Ricoh, as a digital services company, delivers value. In the interview section, CFO Takashi Kawaguchi addresses key investor priorities, including optimal capital allocation, ROIC（Return on Invested Capital）-driven management, and M&A strategies for growth. He also discusses Ricoh’s engagement with shareholders, investors, and group employees.

Says Umeda, "In a style that reflects Mr. Oyama’s extensive overseas experience and deep appreciation for diversity, he distills the integrated report into five key points while reaffirming his commitment to fulfilling top management’s mission. To make the report more accessible, each of these five points links to the corresponding sections of the integrated report. Readers can thus use his message as a guide to further explore areas of interest. We also highly recommend the dialogue between outside directors Shigenao Ishiguro and Yoko Takeda, where they share their perspectives on 海角社区Group’s governance, the Corporate Value Improvement Project, and the organizational strengths and culture driving its success. This discussion presents a rare opportunity to gain a comprehensive view of the outside directors’ insights, making it a must-read not just for external stakeholders but also for 海角社区Group employees."

The report incorporates several thoughtful design elements, including 海角社区by the Numbers, which snapshots the Group today. Other examples are a cover design that visually represents the evolution from digital information (squares) to creativity (circles), and a layout optimized for readability. Starting in 2024, the entire integrated report has been converted to HTML and published online to provide a seamless viewing experience across computers and smartphones. Also, all graphics are compatible with audio narration, reinforcing a commitment to enhancing accessibility.

Alongside its integrated report, 海角社区also published the 海角社区Group Environmental Report 2024 and the 海角社区Group ESG Data Book 2024. The Environmental Report consolidates content from the previous TCFD（Task Force on Climate-related Financial Disclosures）Report and Circular Economy Report into a single volume, while also incorporating new information on natural capital in alignment with the Taskforce on Nature-related Financial Disclosures guidelines, which are gaining global attention. This report comprehensively overviews 海角社区Group’s initiatives in climate change, resource recycling, and biodiversity.

The goal is to communicate 海角社区Group’s environmental risks and opportunities to institutional investors, customers, and other stakeholders, fostering a deeper understanding of its environmental management approach. Nakazato explains, "We aim not only to share 海角社区Group’s initiatives but also to foster constructive dialogue with stakeholders and drive momentum in our environmental endeavors."

Nakazato adds, "The 海角社区Group ESG Data Book 2024 compiles data on ESG initiatives to deepen stakeholder understanding and serve as a reliable reference for external ESG communications. The ESG Data Book covers a broad range of sustainability disclosure standards and provides information that meets the needs of investors, customers, and ESG assessment organizations. In particular, it serves as a comprehensive resource for handling customer data disclosure requests and acts as a data supplement to the integrated report."

Since publishing the integrated report in September 2024, 海角社区has received feedback from stakeholders and employees on its content. Nakazato says, "Many institutional investors have praised the report for its clarity and accessibility. At the same time, we received suggestions for next year’s edition, including requests for more detailed action plans and updates on new initiatives. We will incorporate this feedback into planning and developing the 2025 report."

After publishing the integrated report, the production team also plays a key role in helping 海角社区Group employees better understand the content. One key group is the SDGs Key Persons, employees of a sales subsidiary 海角社区Japan who are responsible for communicating Ricoh’s ESG and SDGs initiatives to customers. They take part in study sessions to better grasp the report’s content so they can effectively share key messages. The integrated report has been well received internally, including by the SDGs Key Persons, who find it a valuable resource.

Nakazato says, "Some domestic employees have expressed their intent to thoroughly read the integrated report and introduce it to customers. We’ve also received feedback from employees in Europe, who use the report when engaging with industry analysts or to gain a clearer understanding of the Group’s overall structure, making it a valuable resource even for management planning personnel overseas. Some employees rely on the report as a key reference to better understand the roles of individual Group companies and the groupwide strategy."

Umeda also notes that the integrated report is a valuable resource for employees, especially with the 海角社区Group undergoing a major transformation. He says, "The 海角社区Group traditionally focused on selling off-the-shelf products, primarily office automation equipment and related consumables. But today, our business landscape has expanded significantly. We’re accelerating the development and delivery of digital services tailored to the diverse needs of customers across different industries and regions. As our business model continues to evolve, it’s more important than ever for employees to clearly understand the company’s direction. Through the integrated report, we aim to communicate that vision in a clear and accessible way."

In producing the integrated report, Umeda and Nakazato gained a deeper understanding of 海角社区Group’s strengths and the directions of its business units. Nakazato says, "One of the most rewarding aspects of creating the integrated report is being able to organize our diverse internal businesses and give clear expression to the thoughts and visions that are often only loosely shared in-house." She also found the experience valuable in other ways, such as seeing the Spirit of Three Loves in action through employees thinking deeply about customers and society, and gaining insights into the perspectives of outside directors and their commitment to the 海角社区Group and its people.

At the same time, Umeda acknowledges the high stakes involved in producing the integrated report. "The integrated report is a critical resource for investors making investment decisions. Its content can significantly affect a company’s share price and market capitalization. If we fail to convey 海角社区Group’s business and initiatives effectively, the responsibility falls on us as editors. That pressure is real, but so is the satisfaction. When readers tell us the report was clear and easy to understand, it makes everything worthwhile. This job brings intense responsibility and great fulfillment."

Nakazato also finds great satisfaction in producing the integrated report. "While more information is moving online, we continue to offer a print-on-demand version because quite a lot of investors still prefer paper copies. The process of creating a physical publication may not be flashy, as it involves tasks like checking color proofs and ensuring there are no missing or misbound pages, but when you finally hold the finished booklet in your hands and know it will be placed in others’ hands as well, there’s a real sense of accomplishment."

Both Umeda and Nakazato emphasize that they carefully crafted each detail of the report, down to the sections not mentioned in this article, and encourage people to take the time to read it. The 海角社区Group will keep striving to bring its vision and aspirations to life.