Sustainability

Environment(E)

Climate Change Response

Sustainability

  • 7 AFFORDABLE AND CLEAN ENERGY
  • 12 RESPONSIBLE CONSUMPTION AND PRODUCTION
  • 13 CLIMATE ACTION

Response to Climate Change

Brother Group, as a global company, has placed the highest priority on efforts to prevent global warming. To reduce CO2 emissions, we have been implementing a diverse range of eco-friendly activities and environmental technology development in all manufacturing processes, including development, procurement, production, sales and logistics. What we emphasize in carrying out those actions is the basic philosophy behind our environmental activities: "The Brother Group shall positively and continuously act to decrease the environmental impact of all aspects of our business operations so that society can achieve sustainable development." This is proclaimed in the "Brother Group Global Charter" established in 1999. This philosophy has remained in action since BROTHER INDUSTRIES LTD. (BIL) formulated the "Basic Environmental Policy" in 1993, and we as the Brother Group have set medium-term environmental goals and promoted ongoing activities to meet them. Thanks to the efforts of each Group member, we have made steady headway toward achieving these goals.

In 2018, the Brother Group formulated "the Brother Group Environmental Vision 2050," which made reducing CO2 emissions a key item. We have also set the milestone "Mid-term Target for 2030" keeping in mind with the "Paris Agreement," which is a global framework for controlling climate change (global warming). This mid-term target has been recognized by the "Science Based Targets Initiative", an international environmental initiative, as a reduction target based on scientific evidence to achieve the "2°C target" of the Paris Agreement. The Brother Group will continue to make various efforts to contribute to the solution of global climate change issues toward the construction of a carbon-free society.

History of our climate change countermeasures

1993 Brother's First Environmental Action Plan (Voluntary Plan) is formulated.
1999 The Brother Group Global Charter is formulated.
2009 Brother's "Mid-term Target for FY2020," the CO2 reduction targets to be achieved by FY2020, is established, and efforts to reduce CO2 emissions are initiated.
2013 The scope of CO2 emission reduction activities is expanded to the entire Group, and CO2 emission calculations and reductions not only from Brother but also throughout the entire product supply chain are started.
2018 The "Brother Group Environmental Vision 2050" is established, and the "Mid-term Target for 2030" is set as a milestone for this vision.
2020 Brother Industries, Ltd. supports the recommendations by the Task Force on Climate-related Financial Disclosures (TCFD).
Brother analyses the risks and opportunities of climate change for key businesses based on the recommendations by the Task Force on Climate-related Financial Disclosures (TCFD).
2021 Disclosure of relevant information based on TCFD recommendations.

Compliance with the TCFD Recommendations and Further Promotion of Climate Change Countermeasures

In February 2020, the Brother Group expressed our support for the recommendations made by the Task Force on Climate-related Financial Disclosures (TCFD).

TCFD-logo

In this fiscal year, scenario analysis was conducted for the risks and opportunities of climate change with regard to our Printing & Solutions Business, Personal & Home Business, Machinery Business, and new businesses, and relevant information was disclosed based on these TCFD Recommendations.We will continue to expand the scope of our analysis—such as to the Domino Business—and strive to enhance our information disclosure.

The Brother Group will use the opportunity of compliance with the TCFD recommendations to further step up our climate change countermeasures in order to continue contributing to the formation of a decarbonized society.

TCFD Recommendations: Governance

The Brother Group is driving global environmental conservation activities throughout the group based on the Brother Group Environmental Policy. The Strategy Committee, composed mainly of representative directors and executive officers who serve concurrently as directors, discusses and makes decisions on important projects related to climate change, and moreover they evaluate and manage the status of environmental activities, including the group's response to climate change.
In addition, the Environmental Committee (chaired by the environmental officer) meets twice a year as the decision-making body responsible for environmental risks, including climate change, and environmental issues of the Brother Group. Serious environmental risks and issues related to climate change at the Environmental Committee are reported to the Risk Management Committee chaired by the representative director & president. In addition, top priorities are reported to the Board of Directors for instructions and supervision from the management.

Brother Industries, Ltd. Governance Structure

TCFD Recommendations: Strategy (scenario analysis)

The "Brother Group Environmental Vision 2050" places the reduction of CO2 emissions as an important matter for the Brother Group. Together with recognizing that climate change, which is becoming more serious around the globe, is an important social issue, we regard climate change as business risks and oppotunities for the Brother Group and are striving to resolve it on a long-term and continuous basis.
In FY2020, based on the recommendations of TCFD, we assessed the importance of climate-related risks and opportunities that could impact our businesses between 2020 and the future.
Seven key risks and opportunities were identified and their impact on the Group's businesses and financial performance was evaluated based on the "1.5°C scenario, in which global warming countermeasures are progressing and the realization of a decarbonized society approaches" and the "4.0°C scenario, in which countermeasures against global warming do not go beyond current measures around the world, and temperatures rise further."
Reference was made to the International Energy Agency (IEA), the Intergovernmental Panel on Climate Change (IPCC), and Aqueduct (a water risk assessment tool) for the 1.5°C and 4.0°C scenarios.
The results of this analysis showed that, in both aspects of risks and opportunities, the promotion of carbon neutrality—especially the promotion of response to a circular economy—is important to the Brother Group. Going forward, the group will further strengthen initiatives such as CO2 emission reduction activities and the expansion of recycling businesses.

Scenario analysis process

Climate-related risks

Transition risks (Policy and legal risk)

Changes in the external environment Financial impact Estimated time Impact on the Brother Group Countermeasure
Carbon neutral
Introduction of carbon tax or increase in carbon tax rate Medium Mid-term Increases in product and service costs due to introduction of carbon tax or increase in carbon tax rate Set medium-term targets to reduce CO2 emissions by FY2030, and implement planned activities to achieve these targets
Shift from gas/diesel vehicles to electric vehicles Medium Short-term Falling demand for metalworking parts for internal combustion engines Develop machine-tool products and functions suitable for processing parts related to electric vehicles, which are expected to increase
Circular economy
  • Strengthening of environmental regulations
  • Growing market demand
- Short to Mid-term Sales opportunity losses owing to lag in meeting environmental regulations and market demand in the communications and printing equipment sectors
  • Implement preliminary surveys on regulatory trends and early response
  • Implement activities to improve the usage rate of recycled plastics and reduce the amount of Styrofoam used with printing equipment
  • Implement activities to reduce the use of new resources

Physical risks (Acute)

Changes in the external environment Financial impact Estimated time Impact on the Brother Group Countermeasure
Intensified damage from extreme weather events such as cyclones and floods Medium Short to Long-term Production could be suspended due to floods
  • Implement specific measures against natural disasters
  • Implement risk countermeasures through multi-site production for some models
  • Strategically consider parts suppliers and their upstream suppliers

Estimated Time    Short-term: Within 10 years   Mid-term: 10-50 years   Long-term: Over 50 years
Financial Impact    Low: 1 billion yen or less   Medium: 1 to 10 billion yen   Large: Over 10 billion yen -: Consider in the future

Climate-related opportunities

Opportunities (Products and services)

Changes in the external environment Impact on the Brother Group
Carbon neutral
Increasing need for customers to cut CO2 emissions Increased demand for energy-efficient products and low-carbon products
Shift from gas/diesel vehicles to electric vehicles Rising demand for machine tools to increase new manufacturing workpieces for electric vehicle-related parts, etc.
Circular economy Secure business opportunities through the expansion of cyclical businesses

TCFD Recommendations: Risk Management

The Brother Group regards important social issues such as climate change, resource depletion, environmental pollution, and ecosystem destruction as business risks. As such, the Brother Group Environmental Vision 2050 makes it clear that we will strive to resolve these issues on a long-term, ongoing basis.

The Risk Management Committee headed by the Representative Director & President has been established to regularly meet to identify and evaluate company-wide risks, including environmental risks such as climate change, and to give appropriate response instructions. In addition, the Environment Committee was established as a subordinate body of the Risk Management Committee, and this committee identifies important challenges, such as climate change, and determines and implements appropriate measures. Furthermore, the committee sets ambitious targets for climate change countermeasures and regularly monitors progress.

TCFD Recommendations: Metrics and Targets

Under the Brother Group Environmental Vision 2050, in the reduction of CO2 emissions, the Brother Group will aim to achieve carbon neutrality* in all business operations and minimize CO2 emissions from the entire value chain by FY2050. In addition, the mid-term target for FY2030—which serves as a milestone—is set as achieving, by FY2030, 65% reduction in CO2 emissions from the Brother Group from the FY2015 level for Scopes 1 and 2, and 30% reduction from the FY2015 level for the stages of product procurement, use, and disposal (categories 1, 11, and 12 of Scope 3), which emit particularly significant amounts of CO2 in the value chain.
In order to achieve the mid-term target for reducing CO2 emissions in line with the Brother Group Environmental Vision 2050, the Brother Group is undertaking a number of efforts. These include reducing the use of solvents containing greenhouse gases used in production processes, stepping up energy-saving activities at workplaces (for example, introducing high-efficiency equipment), accelerating the use of renewable energy, and resource and energy conservation in company products, and promoting the recycling of resources.

  • Achieve overall zero CO2 emissions from the Brother Group

Mid-term target for FY2030*

Scope of "Scope 1 and 2" from FY2016 through FY2020 (graph)

Scope of "Scope 3" from FY2016 through FY2020 (graph)

  • As the method of calculation for Scope 3's C1, C11, and C12 was changed in 2021, verification was carried out going back to FY2015 (base year).

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