CSR Targets of the Brother Group

Establishing Long-term Trusting Relationships with Our Stakeholders
Promoting Initiatives Towards Resolving Social Challenges
Participation in External Initiatives in accordance with the Brother Group Principles

Establishing Long-term Trusting Relationships with Our Stakeholders

The goal of Brother is to carry out management that will create social value through business activities with the "At your side." To achieve this, as stated in the Brother Group Global Charter, we will develop long-term trust relationships with our customers and other stakeholders by further developing our business and fulfilling social responsibilities. All employees of the Brother Group act with this sense of value to continue to evolve Brother's CSR management.

Efforts to build long-term trusting relationships with respective stakeholders

Stakeholders	Brother Group Global Charter	Efforts
Customers	Place our customers first everywhere, every time, and provide them with superior value, by quickly creating and delivering high-quality products and services Quickly respond to the demands and expectations of the global marketplace	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
Employees	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	Build systems and environments in which diverse human resources can demonstrate their abilities Support employees with disabilities by selecting "work and life consultants," who provide advice and other assistance for employees with disabilities, from among employees in respective factories Establish various systems, including homeworking and family-care leave systems, to support the work-life balance of employees Institute a target management system to provide fair evaluation and compensation Establish talent development systems, such as manager development and trainee programs Conduct an employee awareness survey annually to grasp and improve conditions, mainly to ensure employees are working energetically
Business partners	Act fairly with business partners and build strong, respectful working relationships for mutual growth	Make the Brother Group's "Procurement Policy" and "CSR Procurement Standards" publicly available to share the group's CSR procurement concept with suppliers Conduct CSR questionnaires with suppliers and make improvement requests and on-site inspections based on the results of the questionnaires Recognize outstanding CSR efforts by suppliers
Shareholders	Effectively utilize capital from shareholders to drive sustainable growth in corporate value and have regular, open communication	Provide the latest information to shareholders and investors through general meetings of shareholders and financial results briefings
Local communities	Share our social, economic and cultural resources in all the communities where the Brother Group operates	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)" Contribute to society through activities autonomously conducted by the group facilities in a way tailored to their local communities Provide support for large-scale disasters
Environment	Help society achieve sustainable development, by positively and continuously considering the environmental impact of all aspects of our business operations	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
Governance	Respect the culture, rules and spirit of laws, in all countries and regions where the Brother Group operates Act with the highest integrity Expect our associates to be positive members of society	Establish and strengthen governance in line with the "Brother Group Basic Policies on Corporate Governance" Conduct self-assessments by respective facilities and audits by the internal audit department to check the effectiveness of internal control Put the Compliance Committee and consultation centers in place and offer employees training to prevent the occurrence or reoccurrence of misconduct and enable early response to it Establish a framework for information management by setting up the Group Information Management Regulation, which is compliant with the Information Security Management System (ISMS)

Promoting Initiatives Towards Resolving Social Challenges

The Sustainable Development Goals (SDGs) for 2030, adopted by the United Nations in 2015, has set seventeen goals to realize a sustainable world and has requested corporations to take some actions as well.

The Brother Group focuses particularly on the following priorities selected from among many social issues.

Seek to provide innovative products and services that make our customers happy
Undertaking continuous efforts in environmental conservation
Continuously promote social contribution activities
Enhance collaboration with business partners on ways to address social demands quickly

The SDGs related to the priorities of the Brother Group and the group's initiatives

Priority	Seek to provide innovative products and services that make our customers happy
Goal 3	Ensure healthy lives and promote well-being for all at all ages
	Initiative	Deliver products and services that can ensure people's healthy lives and promote well-being
Goal 8	Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
	Initiative	Deliver products and services that lead to improvement of customer productivity and reduction of simple work Deliver products and services that can contribute to the employment of people with disabilities, the fields of medical and welfare
Goal 9	Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
	Initiative	Create new businesses that will solve social problems

Priority	Undertaking continuous efforts in environmental conservation
Goal 7	Ensure access to affordable, reliable, sustainable and modern energy for all
	Initiative	Provide products and services that support eco-friendly systems for creating, storing, and utilizing electricity and heat with zero CO₂ emissions
Goal 12	Ensure sustainable consumption and production patterns
	Initiative	Promote resource circulation in the value chain Evaluate water risks at business sites and promote water saving and water recycling
Goal 13	Take urgent action to combat climate change and its impacts
	Initiative	Promote/implement energy-saving activities (including energy generation) and reduce the use of lubricant agents containing greenhouse gases Reinforce eco-conscious design of products
Goal 15	Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation, and halt biodiversity loss
	Initiative	Identify the impact of business operations on biodiversity Build a system to consider biodiversity Promote activities to restore/conserve the ecosystem

Priority	Continuously promote social contribution activities
Goal 3	Ensure healthy lives and promote well-being for all at all ages
	Initiative	Conduct projects, such as the Golden Ring Project for cancer patients
Goal 4	Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
	Initiative	Further promote educational support for local communities Provide educational support for people with disabilities
Goal 11	Make cities and human settlements inclusive, safe, resilient and sustainable
	Initiative	Provide reconstruction support to affected areas

Priority	Enhance collaboration with business partners on ways to address social demands quickly
Goal 8	Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
	Initiative	Strengthen CSR in the supply chain using the RBA^* know-how It stands for the Responsible Business Alliance, an international organization dedicated to promoting corporate social responsibility.
Goal 12	Ensure sustainable consumption and production patterns
	Initiative	Comply with the laws and regulations of each country and region, and build a stronger chemical security system throughout the group

Participation in External Initiatives in accordance with the Brother Group Principles

To realize the sustainable society discussed in the "Brother Group Principles of Social Responsibility", Brother Industries, Ltd. (BIL) participates in external initiatives to enhance its CSR activities which will win the confidence of our stakeholders.

United Nations Global Compact

The United Nations Global Compact (UNGC) is a voluntary initiative by businesses and organizations which was proposed by then UN Secretary-General Kofi Annan at the World Economic Forum in Davos in 1999 and launched in 2000 to actualize sustainable growth.

In February 2020, BIL showed its support for the initiative and the president and representative director signed the agreement to participate in UNGC. Through compliance with the UNGC's 10 principles focusing on four different areas: human rights, labour, environment and anti-corruption, all the respective Brother Group employees will continue to maintain high awareness of social issues and to pursue activities to become a company that contributes to sustainable development of society further.

The 10 Principles of the UN Global Compact

Human Rights	Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses.
Labour	Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation.
Environment	Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-corruption	Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

Responsible Business Alliance

The Responsible Business Alliance (RBA) is an international industry organization that promotes corporate social responsibility through establishment of sustainable supply chains. BIL joined RBA in January 2019.

The RBA Code of Conducts sets out 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. The organization requests its members to pursue compliance with the respective standards through their management systems.
As a member of the RBA, BIL, will monitor manufacturing processes of the entire group from global perspectives and propel activities to establish sustainable supply chains further to become a company trusted by all the stakeholders.

The RBA Code of Conduct Version 6.0 (2018)

A. LABOR	Freely Chosen Employment Young Workers Working Hours Wages and Benefits Humane Treatment Non-Discrimination Freedom of Association
B. HEALTH and SAFETY	Occupational Safety Emergency Preparedness Occupational Injury and Illness Industrial Hygiene Physically Demanding Work Machine Safeguarding Sanitation, Food, and Housing Health and Safety Communication
C. ENVIRONMENTAL	Environmental Permits and Reporting Pollution Prevention and Resource Reduction Hazardous Substances Solid Waste Air Emissions Materials Restrictions Water Management Energy Consumption and Greenhouse Gas Emissions
D. ETHICS	Business Integrity No Improper Advantage Disclosure of Information Intellectual Property Fair Business, Advertising and Competition Protection of Identity and Non-Retaliation Responsible Sourcing of Minerals Privacy
E. MANAGEMENT SYSTEMS	Company Commitment Management Accountability and Responsibility Legal and Customer Requirements Risk Assessment and Risk Management Improvement Objectives Training Communication Worker Feedback, Participation and Grievance Audits and Assessments Corrective Action Process Documentation and Records Supplier Responsibility