Message from the Management

With the establishment of the Sustainable Development Goals (SDGs)^*1, the Paris Agreement (an international agreement for mitigating climate change), and the Corporate Governance Code^*2 in 2015, the world began to take steady steps toward achieving a sustainable society.
On the other hand, climate change risk continues to make it unclear what changes could happen in the world and when and where, while the effects of COVID-19 are also increasing uncertainty.
Even under these circumstances, we are aiming for management that will create social value through our business under the spirit of "At your side.", which places the highest priority on customers in all situations.

In addressing the environment, we formulated the Brother Group Environmental Vision 2050 in March 2018 in order to contribute to solving urgent social issues such as climate change, toward creating a society in which sustainable development in line with the Brother Group Environmental Policy is possible. Based on this environmental vision, we are strengthening our activities related to reduction of CO₂ emissions, resource circulation, and biodiversity conservation.

In particular, the mid-term target for FY2030 related to reduction of CO₂ emissions set out in this vision has been recognized by the international environmental initiative, Science Based Targets initiative, as a target based on scientific evidence to help achieve the Paris Agreement's goal of limiting global warming to well below 2 degrees Celsius. As for the reduction of CO₂ emissions throughout the entire Brother Group (Scope 1 & 2), a reduction of 37.8% was achieved in FY2019, already exceeding the FY2030 target of a 30% decrease from FY2015 levels. Likewise, in terms of the reduction of CO₂ emissions in the Brother Group's value chain (Scope 3), a reduction of 15.8% was achieved toward the FY2030 target of a 30% decrease from FY2015. Starting in FY2020, the Brother Group is analyzing the business risks and opportunities presented by climate change, incorporating the results into the Brother Group's management strategy, and promoting further measures to mitigate climate change, based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)^*3, for which the Brother Group announced support in February 2020.

As for resource circulation, the Brother Group will reduce the amount of resources used in our main products, efficiently utilize water resources, and properly treat wastewater. As for biodiversity conservation, the Brother Group will build a framework for quantifying and reducing our environmental impact, and steadily continue activities toward achieving the goals.

In our history of more than 110 years, the Brother Group has continued to provide a variety of products matching customer needs and the changes of the times. To ensure that we are not afraid of change and continue delivering superior value as a manufacturing company while reducing our environmental impact, it is essential for us to collaborate with our business partners. In January 2019, the Brother Group joined the Responsible Business Alliance^*4, a global industry organization promoting corporate social responsibility through building a sustainable supply chain, and in February 2020 became a signatory to the United Nations (UN) Global Compact^*5. As the head of the management team, I am committed to reevaluating our business operations in terms of the Sustainable Development Goals (SDGs) toward achieving a sustainable society. In addition, I will make utmost efforts to enable the Brother Group to gather our technologies and knowledge toward continuing to provide products and services that solve social issues.

1. The international community's common aim, consisting of 17 goals and 169 targets, adopted by world leaders at a UN summit held in September 2015.
2. Guiding principle for corporate governance that defines the code of conduct that must be followed by listed corporations.
3. A task force established in 2015 by the Financial Stability Board (FSB), an international body in which the central banks and financial regulatory bureaus of major countries participate. In order to assess and disclose the financial effects of the risks and opportunities brought on by climate change, the FSB in June 2017 published its recommendations on how to disclose information.
4. The Responsible Business Alliance has established a code of conduct made up of five sections, including the environment, and actively promotes conformity to this code and various standards.
5. A voluntary pact to encourage corporations and other organizations worldwide to act as good citizens of society and to participate in a global framework for achieving sustainable growth by demonstrating responsible and creative leadership. The UN Global Compact asks its members to abide by and practice the Ten Principles consisting of four areas, including the environment.

• Brother Included in "FTSE4Good Index Series" ESG Investment Index for the First Time
• Brother to Comply with the Recommendations by the Task Force on Climate-related Financial Disclosures
• Brother Signed the Agreement to Join the UN Global Compact

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