in the future and to disclose, beyond the scope of which ARO—that requires them to register.

Amidst such approach is expanding, advancement of business activities in environmental conservation approach and realization of integrated improvement of the environment and economy, at each business activity level, are expected in the future.

Advanced Cases that Grasp and Announce the Entire Environmental Liabilities, including ARO

Category	Costs for the future (before discount)
Asset Retirement Obligation (interest expense)	0.49 Billion Yen
Environmental liabilities (excluding ARO) by laws and contracts	1.24 Billion Yen
Environmental liabilities through voluntary approaches on environmental measures	1.22 Billion Yen
Source: Ricoh's Sustainability Report (Environment), 2008

## 3 Relationships between the Global Economy and the Japanese Economy on Environmental Measures

Today environmental issues are not something to be dealt within the country, but need to be related with the entire international society and many partner countries beyond the borders. Recognizing the environmental burden of the suppliers of resources and raw materials and approaches bringing global society into view, such as promoting economic activities while considering the burden, are important on environmental measures.

## (1) Challenges which accompany the securing of biofuels

The global bio-fuel production has increased from 3.1 million k $ \ell $ in 2001 to 6.4 million k $ \ell $ in 2007, more than a double increase (Figure3-2-4). Although Japan had produced about 30k $ \ell $ of bioethanol from by-products and construction waste materials in the process of making sugar from sugarcane, and about 10 thousand k $ \ell $ of biodiesel fuel, a raw material of waste food oil, the production volume is still small compared to other countries (Table3-2-4).

The Kyoto Protocol Target Achievement Plan requires the introduction of 500 thousand $ k\ell $ of biofuels, in crude oil equivalent by 2010, and further acceleration of its introduction is required towards its achievement. However, there is concern over environmental issues for development and usage of biofuels that environmental issues, such as the food competition problem and deforestation, could be caused, and sustainable use and promotion of development are important. Amidst such a situation, examinations on sustainability standards for biofuels are currently progressing in the international frameworks, such as the EU, the United States and the Global Bioenergy Partnership (GBEP), with the participation of individual countries including Japan. For example, the “Sustainability Standards for Biofuel Products” in the “Directive of the European Parliament and of the Council on the Promotion of the Use of Energy from Renewable Resources,” that was adopted by the European Union Parliament in December 2008 states that only biofuels that met the GHG emissions reduction rates and the sustainability standards, including the production areas of raw materials can be targeted as the calculating items for introduction.

Japan needs to promote procurement of sustainable biofuels referring to these approaches, as well as developing the next generation of biofuel production technologies.

## (2) Environmental measures targeting the entire flow of manufacturing products (supply chain) beyond the sea

An integrated chemical maker has been making efforts to analyze environmental burdens generated at each stage—resource procurement of each product, manufacturing, transportation, products in use and waste and recycling—and to recognize the environmental burdens at each stage. According to this analysis, $ CO_{2} $ emission volume turned out to be higher during procurement and processing of resources, including aluminum refining of PS plates for printing machines and structural steel for photocopiers than during the products use (Figure3-2-5). For example, if used PS plates are injected during the manufacturing process for effective use of the resources, $ CO_{2} $ emissions emitted during the process of refining and manufacturing could be reduced by 74% compared to the process of refining aluminum from raw materials (Figure3-2-6). Therefore, the company is making efforts to reduce the environmental burden in the entire life-cycle of the products from overseas to Japan in the most suitable and rational way.

## (3) Procurement mechanisms that will lead to sustainable use

Although forests are important in mitigating climate