Sustainability

Management with an Emphasis on Sustainability

Evaluation by External Entities

Sustainability

FTSE4Good Index Series / FTSE Blossom Japan Index / FTSE Blossom Japan Sector Relative Index

Since 2020, Brother Industries, Ltd. (BIL) has been included in the ESG investment*1 stock indexes "FTSE4Good Index Series" and "FTSE Blossom Japan Index" established by London Stock Exchange Group company FTSE Russell.

Logo_FTSE4Good Index Series Logo_FTSE Blossom Japan Index

The FTSE4Good Index Series is a globally renowned series of ESG investment indexes consisting of companies that have met standards for ESG practices. The FTSE Blossom Japan Index is an index specific to the Japanese stock market. It was adopted as an ESG index by Japan's Government Pension Investment Fund (GPIF), which manages the largest pool of funds in the world.

In March 2022, BIL was selected for inclusion in the ESG investment stock index "FTSE Blossom Japan Sector Relative Index."

Logo_ FTSE Blossom Japan Sector Relative Index

FTSE Blossom Japan Sector Relative Index is an index that reflects the relative performance within sectors of Japanese companies that are excellent in their ESG measures, and is designed to be sector neutral*2. In addition, to encourage the transition to a low-carbon economy, specifically for companies with high greenhouse gas emissions, only those companies evaluated for their improvement initiatives based on the Management Quality score of the Transition Pathway Initiative (TPI) are included in the index. FTSE Blossom Japan Sector Relative Index was adopted by Government Pension Investment Fund (GPIF) as an ESG index on March 30, 2022.

  1. ESG investment is investment that prioritizes and selects companies based on environmental, social, and governance (ESG) practices
  2. An investment method for obtaining stable income using a neutral position in the sector
Click to view about FTSE4Good Index Series (the link to the site of "FTSE4Good Index Series")
Click to view about FTSE Blossom Japan Index (the link to the site of "FTSE Blossom Japan Index")
Click to view about FTSE Blossom Japan Sector Relative Index (the link to the site of "FTSE Blossom Japan Sector Relative Index")


FTSE Russell (a registered trademark of FTSE International Limited and Frank Russell Company) hereby certifies that Brother Industries, Ltd. has been included in FTSE Blossom Japan Sector Relative Index after meeting the criteria for inclusion as a result of third-party assessment. FTSE Blossom Japan Sector Relative Index is widely used in the creation and evaluation of sustainable investment funds and other financial products.

MSCI Japan ESG Select Leaders Index

BIL has been selected for the "MSCI Japan ESG Select Leaders Index," an investment index that selects Japanese companies with superior ESG measures since 2023.

MSCI Japan ESG Select Leaders Index logo

The MSCI Japan ESG Select Leaders Index is one of the ESG investment indexes adopted by GPIF, the largest pension management institution in the world.

DISCLAIMER
THE INCLUSION OF BROTHER INDUSTRIES, LTD. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF BROTHER INDUSTRIES, LTD. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

MSCI Japan Empowering Women (WIN) Select Index

Since 2019, BIL has been included in the ESG investment stock index "MSCI Japan Empowering Women (WIN) Select Index" calculated and provided by Morgan Stanley Capital International Inc. (MSCI) of the United States.

MSCI Japan Empowering Women(WIN)Select Index logo

The MSCI Japan Empowering Women (WIN) Select Index consists of leading companies that are actively promoting and advancing women in the workplace. Selection is based on corporate disclosures and on ratios of female employees and managers and other data in the Database on Promotion of Women's Participation and Advancement in the Workplace*, which is a database of gender diversity according to the Act on the Promotion of Female Participation and Career Advancement in the Workplace.
The inclusion of BIL in this index, which was adopted by Japan's Government Pension Investment Fund (GPIF), is evidence that its various initiatives to date are held in high regard. They include support for diverse work styles, formulation of the "Commitment to Promotion of the Success of Women" and the "Action Plan to Support the Success of Women," and various systems and measures for promoting women in the workplace.

Click to view about MSCI ESG Research (the link to the site of "MSCI ESG Research")

DISCLAIMER
THE INCLUSION OF BROTHER INDUSTRIES, LTD. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF BROTHER INDUSTRIES, LTD. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

Morningstar Japan ex-REIT Gender Diversity Tilt Index

BIL has been selected for the "Morningstar Japan ex-REIT Gender Diversity Tilt Index," an ESG index developed by Morningstar, Inc. in the United States.

The Morningstar Japan ex-REIT Gender Diversity Tilt Index is an index that focuses on companies that have strong gender diversity policies embedded in their corporate culture and that ensure equal opportunities to employees, irrespective of their gender. It is adopted as an ESG investment index by the GPIF.

S&P/JPX Carbon Efficient Index

BIL has been selected for inclusion in "S&P/JPX Carbon Efficient Index"—a stock index by S&P Dow Jones Indices LCC and Tokyo Stock Exchange Inc. focusing on the environmental aspect of ESG—since 2018.

S&P/JPX Carbon Efficient Index

Selecting its constituents from companies in the Tokyo Stock Price Index (TOPIX), which is a leading stock index that represents the trend of Japan's market, the S&P/JPX Carbon Efficient Index is an index that focuses on the disclosure of environmental information and level of carbon efficiency (carbon emissions per unit of revenue) when determining the ratio of its constituents. It has been adopted by the Government Pension Investment Fund (GPIF) as a global environmental stock index from among ESG indices.

The SOMPO Sustainability Index

BIL has been selected for inclusion in "Sompo Sustainability Index"—an index independently established by Sompo Asset Management Co., Ltd.—since 2012.

SOMPO Sustainability Index logo

"Sompo Sustainability Index" was established in 2012 and selects approximately 300 companies every year that excel in ESG, and it is used in "Sompo Sustainable Investment," an investment product focusing on ESG that has been adopted by multiple pension funds and institutional investors.

Being selected since the index's establishment is seen as a result of continued recognition of BIL's ESG initiatives.

EcoVadis Sustainability Assessment

BIL has received a Silver Medal from EcoVadis (headquartered in Paris, France), which implemented a sustainability assessment of our company since 2020. During this assessment, Domino Printing Science plc., a Brother group company, also obtained a Silver Medal from EcoVadis.

Logo_EcoVadis_Silver

EcoVadis' sustainability assessment surveys and evaluates the SDG alignment of global supply chains. EcoVadis assesses around 100,000 companies across 175 countries and 200 industries. Companies are scored in accordance with 4 themes-Environment, Labor & Human Rights, Ethics and Sustainable Procurement-, which are based on international sustainable development standards.

Science Based Targets

The medium-term target for FY2030 under Reduction of CO2 emissions in the Brother Group Environmental Vision 2050 has been certified by the Science Based Targets initiative (SBTi*1) as 1.5°C target based on scientific evidence.

Science Based Targets logo

The medium-term target for FY2030 was certified as a 2°C target in July 2018, and following the achievement of Scope 1*2,2*3targets in FY2020, this target was revised upward and certified as a 1.5°C target in April 2022.

  1. SBTi is an international initiative established to promote the achievement of greenhouse gas emission reduction targets.
  2. Direct greenhouse gas emissions by businesses themselves
  3. Indirect emissions from the use of electricity, heat, and steam supplied by others

"Asia-Pacific Climate Leaders" Survey

In May 2023, BIL has been selected, for the second consecutive year, as one of the top companies in the "Asia-Pacific Climate Leaders" survey conducted jointly by Nikkei Asia—the English media arm of the Nihon Keizai Shimbun—and the UK's Financial Times, along with the German research firm Statista. 
The survey, targeting companies headquartered in the Asia-Pacific region, investigates the changes in greenhouse gas emissions intensity* (in terms of Scopes 1 and 2 emissions) relative to a company's revenue from 2016 to 2021. The survey selects the top companies from those with the highest reduction rates.

  • Greenhouse gas emissions per unit of economic activity

Clarivate Top 100 Global Innovators

BIL was selected by Clarivate, a global information services firm in the United Kingdom, for "Clarivate Top 100 Global Innovators 2023" as one of the 100 companies positioned at the top of the global innovation ecosystem. This marks the fifth time that BIL has received this award since its first time in 2012.

Clarivate Top 100 Global Innovators 2023_logo

Clarivate Top 100 Global Innovators 2023 is a list of the world's top 100 innovative companies and institutions, which are selected once annually based on patent data that Clarivate holds. In the selection, five factors of registered patents were used for score calculation: influence, success, globalization, and technical distinctiveness, in addition to quantity. Among these factors, Brother achieved a particularly high score for "success", which led to this award.

Evaluation Related to Health and Productivity Management

Evaluation Description of certification and Reasons for award / Certification
The 2023 Certified Health & Productivity Management Outstanding Organizations Recognition Program

Honors organizations which particularly excel at implementing health and productivity management based on their efforts to address regional health issues and health promotion efforts promoted by the Nippon Kenko Kaigi.

BIL has been certified seven times since 2017 as a "White 500" enterprise with outstanding health and productivity management.

Brother Group companies that have been certified by MEIT:
NISSEI CORPORATION*1, XING INC.*1, BROTHER SALES, LTD., BETOP STAFF, LTD., BROTHER LIVING SERVICE CO., LTD., BROTHER INTERNATIONAL CORPORATION, BROTHER ENTERPRISE, LTD., BROTHER LOGITEC LTD., MIE BROTHER PRECISION INDUSTRIES, LTD., SHOWA SEIKI CO., LTD., B. M. INDUSTRIES, LTD., MIZUHO SEWING MACHINE CO., LTD., BROTHER REAL ESTATE, LTD., BROTHER INDUSTRIAL PRINTING (JAPAN), LTD.

  • The term "health and productivity management" is a registered trademark of the Workshop for the Management of Health on Company and Employee, a non-profit organization.
  1. Certified as a "White 500" enterprise, a certification that is given only to the top 500 companies in the Large Enterprise Category.

Health & Productivity Management Outstanding Organizations Recognition Program

Health & Productivity Stock Selection Program 2021

Recognizes outstanding Tokyo Stock Exchange (TSE) -listed enterprises that have been strategically managing their employees' health from a management perspective and presents such outstanding enterprises as attractive investment options to investors who emphasize the improvement of corporate value from a long-term perspective.

BIL has been selected it for four times since 2017.

In 2021, Brother Group company NISSEI CORPORATION was recognized as one of the enterprises in the Health & Productivity Stock Selection.

The best award at MHLW's first awards program to recognize good use of healthcare services

Won the best award at the first award program by Japan's Ministry of Health, Labour and Welfare (MHLW) in recognition of good use of medical care in March 2020.

< Reasons for award >

  • Promoting various initiatives to enable employees to work securely based on the Brother Group Health & Productivity Management Philosophy
  • Equipping each workplace with an emergency response list for occupational injuries and sudden illnesses.
  • Creating an environment which allows employees to get medical attention during working time.
  • Supporting the balance between treatment and work based on two internal guidelines, "the balance between disease treatment and work" and "the balance between fertility treatment and work."

MHLW's award program to recognize good use of healthcare services logo

Physical Fitness National Conference Chair Award

An award presented by the Minister of Education, Culture, Sports, Science and Technology and the Physical Fitness National Conference Chair to local communities and workplaces that have made outstanding achievements in improving health and nutrition as well as promoting the physical fitness movement*1.

The Brother Health Insurance Society, which consists of 20 business sites centered around BIL, won it for FY2021.

< Reasons for award >

  • The Brother Health Insurance Society, together with individual Brother Group companies and the Brother Industries Labor Union, was been recognized for its efforts to strategically promote the health and fitness of employees and their families by working as one to achieve the "Healthy Brother 2025*2," a set of long-term targets for employee health.

< Specific initiatives >

  • Providing a variety of walking events such as the "Family Walk" that families can enjoy, and the "Team DE Walk" in which employees form teams to compete in the number of steps that they take.
  • Holding Online health classes that help alleviate a lack of exercise caused by continued telecommuting and staying at home due to COVID-19.
  • Production and distribution of the Brother Group's unique "Brother Gymnastics."
  1. A movement to popularize sports and recreation
  2. In addition to BIL, 20 business sites in Japan such as BROTHER SALES, LTD., XING INC. and NISSEI CORPORATION are targeted
Sports Yell Company

A program where the Japan Sports Agency certifies companies that actively engage in initiatives to improve the health of employees for those in the prime of their lives, who tend to lack exercise due to office work, housework, and raising children.

BIL has been certified as a Sports Yell Company five times since FY2019.

The Bronze certification was awarded to BIL for being certified a total of five times or more.

< Reasons for Certification >

  • Implementation of the Active Challenge (an age management measure) , which provides an opportunity to participate in exercise for two months in order to develop an exercise habit.
  • Production of the Brother Group's original "Brother Gymnastics" video that incorporates the movements of sewing and opening the printer covers, etc., to express Brother's identity. The video starring the President himself was shared in Japanese, English, Chinese, and Vietnamese and distributed to Brother's facilities.

Logo_Sports Yell Company2023_ Bronze certification

Cancer Control Partner Award (Information Provision Category)

An award to recognize companies that promote cancer control under the Action Plan for Promotion of Cancer Control*, a project commissioned by the Ministry of Health, Labour and Welfare of Japan.

BIL has won it at the FY2021.

< Reasons for award >

  • To increase the cancer screening rate, one of the long-term targets of "Healthy Brother 2025" for employee health, by launching the "Cancer Prevention Stamp Rally " in FY2020 to provide cancer-related information to a large number of employees.
  • A project commissioned by the Ministry of Health, Labour and Welfare that promotes the importance of cancer screening in cooperation with companies, with the aim of increasing the national rate of people undergoing cancer screening to over 50%.

Evaluation Regarding the Promotion of the Success of Women, Support for Child-rearing, etc.

Activity field Description of certification
Reasons for award
Certification/award logo
Promotion of the success of women Company that, toward promoting the success of women, in addition to declaration by top management, expansion of recruitment, expansion of job areas, development, and appointment to managerial positions, undertakes initiatives such as promoting work-life balance and creating environments that allow working while taking care of children/family
Aichi Prefecture's "Aichi Women's Brilliance Company" logo
Aichi Prefecture's "Aichi Women's Brilliance Company"
Nagoya City's "Company promoting the advancement of women" logo
Nagoya City's "Company promoting the advancement of women"
Support for child-rearing Company that supports child-rearing and is conducive to work by establishing working environment for after marriage and childbirth
"Kurumin" certified enterprise logo
"Kurumin" certified enterprise (Ministry of Health, Labour and Welfare)
Nagoya City's "Company supporting child-rearing" logo
Nagoya City's "Company supporting child-rearing"
Balance between work and childcare/family care Company that undertakes initiatives such as having a variety of systems and creating workplace environments that allow workers to choose diverse and flexible working styles so that it is possible to balance between work and childcare/family care
Aichi family-friendly company logo
Aichi family-friendly company
Working environment favorable for balancing work with long-term care logo
Working environment favorable for balancing work with long-term care (Ministry of Health, Labour and Welfare)
Balance between work and medical treatment Company that supports balance between medical treatment and work so that workers with illnesses—such as cancer, brain or heart problems, and diabetes—or facing infertility issues can work with peace of mind while continuing with treatment
Aichi Prefecture's "Company promoting work and treatment balance" logo
Aichi Prefecture's "Company promoting work and treatment balance"
MHLW's award program to recognize good use of healthcare services logo
1st award program to recognize good use of healthcare services (Ministry of Health, Labour and Welfare)

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