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Sustainability

Management with an Emphasis on Sustainability

Stakeholder Engagement

Sustainability

Establishing Long-Term Trusting Relationships With Our Stakeholders

Based on the "At your side." spirit, Brother aims to create social value through business activities.
The foundation for this is the building of long-lasting, trustful relationships with customers, our associates (employees), business partners, shareholders, local communities, and the environment, which are defined as our stakeholders in the Brother Group Global Charter. All employees of the Brother Group act with this sense of value to continue to evolve Brother's management with an emphasis on sustainability.

Relationship diagram of the Brother Group and stakeholders

Customers

Brother Group Global Charter Efforts to Build Long-Term Trusting Relationships
  • "Customers" are present and potential users of Brother Group products and services
  • Place our customers first everywhere, every time, and provide them with superior value, by quickly creating and delivering high-quality products and services
  • Build strong, long-lasting relationships with customers, gaining their loyalty
  • Offer superior value, which attracts and retains customers and, ultimately, drives our growth
  • Effectively utilize our successful growth, investing significantly to acquire and retain more customers
  • Quickly respond to the demands and expectations of the global marketplace
  • Practice a customer-oriented, global strategy
  • Take customer opinions as the starting point of our business activities and deliver products and services that meet customer needs
  • Establish quality standards and evaluation methods for products and create reliable products
  • Call the percentage of products sent back from customers for repair or return the "rate of product return and servicing," and pursue product quality improvement to reduce product defects close to zero
  • Work in proper cooperation with partners to flexibly respond to diversified business tools, markets, and changes in customers' behavior
  • Expanding business that connects with customers, including contract-based services

Please see below for details of specific initiatives

Employees

Brother Group Global Charter Efforts to Build Long-Term Trusting Relationships
  • Our "Associates (Employees)" are all people working in the Brother Group
  • Respect diversity, provide a working environment that enables our associates to utilize their talents and abilities to the fullest, and give them great opportunity through challenging work assignments
  • Provide our associates with fair, attractive financial rewards
  • Employees are expected to be positive members of society, share the Company's values, continually learn and improve, maximize their capabilities, strive to achieve their goals, and ultimately, contribute to our success
  • Effectively utilize our successful growth, investing significantly to reward employees, provide opportunities for human resources development, and acquire and retain more employees
  • Introduce a new human resources system to implement the Human Resource Policy of "true autonomy and effort"
  • Introduce new compensation and evaluation systems to implement the Human Resource Policy of "properly reward achievements and contributions"
  • Establish talent development mechanisms, such as manager development training and trainee programs
  • Introduce systems and implement measures to support diverse work styles, such as homeworking and childcare/elderly care leave
  • Have been conducting "Employee Awareness Surveys" since 2008 and "Employee Engagement Surveys" since FY2022

Please see below for details of specific initiatives

Improving employee engagement

In order to realize the transformation necessary to achieve the Brother Group Vision and encourage employees to take on challenges, the Brother Group has set improving employee engagement on a global basis as sustainability targets for FY2027 with the aim of building relationships in which employees and the company contribute to one another's growth. In addition to an employee awareness survey that has been conducted annually since FY2008, BIL conducted a new employee engagement survey in FY2022. The results of the survey revealed that about half of the employees felt "support for their growth" from the organization, with a high level of "alignment with the organization" and "sense of contribution," indicating that engagement was high overall. In addition, we conducted employee engagement surveys at more than 90% of our locations globally in FY2023 and at all sites globally in FY2024 to gain an understanding of the status of employee engagement. In FY2025 we again conducted an employee engagement survey at all our facilities worldwide* to constantly monitor the situation and identify issues to be solved. Alongside activities to share the Global Charter, the Brother Group plans to improve engagement across the Group by implementing initiatives to enhance the quality of each employee's target setting and to promote self-directed career development, as well as by promoting a global engagement survey.

  • MUTOH LTD. became a consolidated subsidiary of BIL as of the end of March 2026 and was therefore not covered by the FY2025 survey. Also, XING INC. and its group companies were not covered by the survey because a partial transfer of BIL’s shares in XING INC. was expected to take place.

Business Partners

Brother Group Global Charter Efforts to Build Long-Term Trusting Relationships
  • "Business Partners" are all entities that work in cooperation with the Brother Group to provide value to customers
  • Act fairly with business partners and build strong, respectful working relationships for mutual growth
  • Effectively utilize our successful growth, investing significantly to strengthen our working relationships with our business partners
  • Make the Brother Group's "Procurement Policy" and "CSR Procurement Standards" publicly available to share the group's CSR procurement concept with suppliers
  • Implement CSR Procurement Level-up Program. Continue to require suppliers to understand and comply with the RBA Code of Conduct, conduct CSR surveys, and request and monitor improvements based on survey results
  • Recognize outstanding CSR efforts by suppliers
  • Proceed with audits of Brother Group sales facilities by an RBA-approved third-party auditor and receive certification from the RBA

Please see below for details of specific initiatives

Shareholders and Investors

Brother Group Global Charter Efforts to Build Long-Term Trusting Relationships
  • "Shareholders" are investors holding stock in Brother Industries, Ltd.
  • Effectively utilize capital from shareholders to drive sustainable growth in corporate value and have regular, open communication
  • Develop long-term, trustful relationships with our shareholders
  • Effectively utilize our successful growth, investing significantly to return value to our shareholders through profit sharing, and acquire and retain more shareholders
  • Provide the latest information to shareholders and investors through general meetings of shareholders and financial results briefings
  • Conduct meetings with institutional investors and securities analysts in and outside of Japan

Dialogue with shareholders and investors

The Brother Group actively engages in fair and highly transparent information disclosure, as well as constructive dialogue with capital markets throughout the year, with the aim of sustainably improving corporate value. On our website, we disclose the latest information including the Integrated Report. We also provide information for institutional investors and securities analysts in and outside of Japan through quarterly financial results briefings, small meetings, individual interviews, and other means. In addition, we issue an interim report (in Japanese) to shareholders once a year.

Results of meetings with institutional investors and securities analysts in FY2025
Corresponding persons Number of meetings Main themes of dialogue
  • BIL Directors, Executive Officers, General Managers, and persons in charge of IR
  • Institutional investors / securities analysts in Japan: 192
  • Institutional investors / securities analysists outside of Japan: 71
Total: 263
  • Brother Group Vision "At your side 2030"
  • Outline and progress of the medium-term business strategy “CS B2027”
  • Capital policy / capital allocation
  • Approach to business portfolio
  • Strategies for each business
  • ESG efforts
  • Materiality identification process and progress
  • Overview of quarterly financial results

We collect opinions received through dialogue to provide feedback at the management meeting quarterly and at the Board of Directors meeting semiannually, which is then reflected in our medium-term business strategy and used to strengthen our ESG disclosure.

The 134th ordinary general meeting of shareholders

As for the general meeting of shareholders, BIL held the 134th meeting at the hall of the Mizuho Factory, located in Nagoya City, on Wednesday, June 24, 2026, with the attendance of 164 shareholders. In addition, a live webcast was held so that those unable to attend could view the meeting online.

At the general meeting of shareholders, we explained our FY2025 performance, our FY2026 outlook, shareholder returns, and the progress of the medium-term business strategy “CS B2027.” All items on the agenda were approved and passed as drafted by a majority of the shareholders during the deliberation.

The meeting was followed by a social gathering between shareholders and BIL executives, which provided shareholders with an opportunity to deepen their understanding of Brother’s products and new business initiatives through direct dialogue with the executives.

The 134th ordinary general meeting of shareholders The 134th ordinary general meeting of shareholders

Disclosure policy

The Brother Group has published the Brother Group Global Charter as its foundation for all Brother Group activities in the global marketplace. It proactively discloses information in a fair and highly transparent manner to build a long-lasting relationship of trust with all of its stakeholders, including customers, employees, business partners, shareholders, and local communities, and to stay environmentally responsible. The Company also strives to enhance its corporate value continuously through various communications with its stakeholders.

Disclosure Policy

Evaluation by External Entities

FTSE4Good Index Series Included since June 2020
FTSE Blossom Japan Index Included since June 2020
FTSE Blossom Japan Sector Relative Index Included since March 2022
MSCI Nihonkabu ESG Select Leaders Index Included since June 2023
MSCI Japan Empowering Women (WIN) Select Index Included since November 2019
Morningstar Japan ex-REIT Gender Diversity Tilt Index Included since 2022
S&P/JPX Carbon Efficient Index Included since 2018
The SOMPO Sustainability Index Selected since 2012
Health & Productivity Stock Selection Program Recognized in 2017, 2019, 2020, 2021 and 2024
Certified Health & Productivity Management Outstanding Organization Certified since 2017

Local Community

Brother Group Global Charter Efforts to Build Long-Term Trusting Relationships
  • A "Local Community" is a region in which a Brother Group operation is located, and expected to satisfy social responsibilities
  • Always be a good corporate citizen, sharing our social, economic, and cultural resources in all the communities where the Brother Group operates
  • Effectively utilize our successful growth, investing significantly to contribute to local communities
  • Globally promote social contribution activities with a sense of unity, especially focusing on eco-conscious activities and activities involving "communities" and "personal development (including employees)"
  • Support recovery from large-scale disasters and pandemic response

Please see below for details of specific initiatives

Environment

Brother Group Global Charter Efforts to Build Long-Term Trusting Relationships
  • Help society achieve sustainable development, by positively and continuously considering the environmental impact of all aspects of our business operations
  • Effectively utilize our successful growth, investing significantly to protect the global environment
  • Create eco-conscious products
  • Recover and recycle consumables and products
  • Promote CO2 emissions and waste reduction
  • Properly manage chemicals and discharged water
  • Implement environmental communication

Please see below for details of specific initiatives

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