Materiality (Priority Social Issues)

The Brother Group has identified five materialities (priority social issues) in the medium-term business strategy, CS B2024 in order to "contribute to society and help protect the earth" as "Our Purpose" in the Brother Group Vision "At your side 2030." To identify these issues, final decisions were made after thorough discussions at management meetings and by the Board of Directors through the process outlined below.

The Brother Group has identified the following five issues as our materialities (priority social issues): "supporting people's value creation," "realizing a diverse and active society," "pursuing a responsible value chain," "reducing CO₂ emissions," and "circulating resources." We consider addressing these materialities to be one of the key management issues for the duration of CS B2024, and set sustainability targets to promote company-wide efforts such as addressing sustainability through our business, environmental initiatives, and improving employee engagement.

Supporting people's value creation

This materiality is linked to "Our Purpose" stated in the Brother Group Vision "At your side 2030." It expresses Brother's desire to contribute to the enriched and comfortable lifestyles of people around the world through our activities and value provided by Brother's diverse products and services.

Realizing a diverse and active society

This materiality aims to create an environment where diverse employees can play an active role in the Brother Group, and where diverse perspectives, knowledge, and values that are not based on any particular attribute are leveraged in creating innovation and decision-making of the organization.

Pursuing a responsible value chain

We are committed to conducting assessments using appropriate methods and making continuous improvements to ensure that the human rights of all people involved in the value chain of Brother's business operations are respected and that the safety and security of all workers are protected.

Reducing CO₂ emissions and circulating resources

Addressing environmental issues has become an imperative for all companies. At Brother, we announced the Brother Group Environmental Vision 2050, the Group's environmental vision, in March 2018, and have been engaged in the initiatives.

Materiality and Sustainability Targets

Materiality		Targets for FY2024	Progress	Relevant SDGs
Contribute to society	Supporting people's value creation	In the Industrial Equipment business, secure performance advantage of products that contribute towards improving customer productivity and reducing CO2 emissions	Launched a total of 10 new models in the SPEEDIO series, boasting high environmental performance and productivity, since FY2022
		In P&S business, build platform to connect directly with customers towards improving LTV*1 of customers	Strengthened efforts to connect interactively with customers, including subscription services in each region
	Realizing a diverse and active society	Visualize employee engagement at the global level and improve engagement survey scores	Started an employee engagement survey at Brother Industries in FY2022; expanded survey scope to the entire Group in FY2023
		Enhance talent development and governance for encouraging the assignment of local employees to top management positions of facilities outside Japan	Promoted the development of core human resources and implemented succession plans based on the identified current status of HR measures and issues at major facilities outside Japan
		Strengthen talent pipeline for healthy gender balance in management positions and establish environment for achieving diverse ways of working*2	Added/revised human resource systems to achieve more flexible work styles*2 Continued to implement Program to Develop Female Management Candidates*2 Implemented programs to promote understanding of health and nursing care to promote diverse work styles*2
	Pursuing a responsible value chain	Expand the human rights risk assessment on suppliers	Expanded the number of businesses and suppliers covered in supply chain human rights due diligence on primary suppliers and ensured its effectiveness Continued to conduct surveys for responsible mineral procurement
		Attain RBA*3 Gold certification for three Group manufacturing facilities	Following the RBA Gold Certification at the Vietnam Factory of P&S in FY2022, the Shenzhen Factory in China and Philippine Factory of P&S acquired RBA Platinum Certification in FY2023, achieving the target ahead of schedule Furthermore, the Hoshizaki Factory also acquired RBA Platinum Certification in FY2024
Protect the earth	Reducing CO2 emissions	[Scope 1 and 2*4] Achieve 47% reduction from the FY2015 level (9% reduction during the three-year period from FY2022 to FY2024) Ref.) FY2030 Targets: 65% reduction from the FY2015 level	[Scope 1,2] Implemented energy-saving and energy-creating measures such as more efficient use of electricity and introduction of solar power generation, and achieved the reduction target for FY2023
		[Scope 3*4] Take measures to reduce 150,000 tons through own effort Ref.) FY2030 Targets: 30% reduction from the FY2015 level	[Scope3] Implemented measures centered on improving energy efficiency of new products as planned, and consider additional measures for FY2024
	Circulating resources	Achieve ratio of virgin materials used in products of 81% or less Ref.) FY2030 Targets: below 65%	Achieved target for FY2023 by implementing measures such as using recycled materials in some products and changing to recyclable cushioning materials

1. Lifetime Value (LTV)
   Customer lifetime value, which is the value to customers and profits generated for companies over the entire usage period of products and services
2. Brother Industries, Ltd.
3. Responsible Business Alliance (RBA)
   International organization to promote CSR, which establishes standards to ensure that working conditions are safe, that workers are treated with respect and dignity, and that business operations are conducted environmentally responsibly and ethically in the supply chains of the manufacturing industry
4. Scope 1, 2, 3
   Categories of greenhouse gas emission sources; Scope 1 refers to direct greenhouse gas emissions by business operators, Scope 2 refers to indirect greenhouse gas emissions resulting from use of electricity, heat, and steam supplied by other entities, and Scope 3 refers to indirect greenhouse gas emissions other than Scope 1 and 2 (emissions by other entities related to the activities of business operators)

As a member of society, the Brother Group has worked to solve priority social issues. Our sustainability initiatives also support the sustainable growth of the Brother Group's business itself.
As we have always done over the years, we aim to remain a company that continues to be trusted by society by continuing to respond to our customers' needs and concerns with the spirit of "At your side," and by addressing social issues, including environmental issues, with sincerity.