Third party opinion on Brother Group's CSR activities in FY2008

I am writing this opinion based on the information concerning CSR activities available on the Brother Group website, and interviews with persons in charge of CSR, environment, procurement, personnel, health and safety at the company.
Their CSR undertakings are broad in nature, i.e., environmental load reduction, encouraging suppliers to implement activities, etc., and can be said to appropriately begin with a PDCA management cycle.

Highly evaluated points

• •Brother has greatly reduced their greenhouse gas (GHGs) emissions. To this end, they introduced a diversity of energy-saving measures for new buildings that have been recently completed at their Kariya Factory, improved fuel consumption in their logistics operations, and elevated activities based on energy audits at all the overseas manufacturing facilities to more results-oriented levels. Moreover, their new midterm targets include a reduction of total emissions by 30% from the 1990 levels in Japan, and by 20% from the 2006 levels overseas in terms of emission intensity.
• •With regard to Brother's production of eco-conscious products, they have taken up the challenge to develop the best products in the industry. For instance, they have eliminated the use of coatings for external materials in an effort to make their inkjet multi-function center the first product of its kind to receive the German "Blue Angel" certification.

Activities that are making progress but further efforts are wanted

• •With regard to their activities for protecting biodiversity, I first want to salute their reduction of GHGs emissions in the production stage and the improved environmental performance of their products. I hope Brother will expand these efforts in the preservation of eco-systems that supply us with paper indispensable to printing and fabric materials essential for sewing.
• •With regard to their efforts to encourage suppliers to take action, I want to recognize their initiative to host explanatory meetings in China, Vietnam and Malaysia towards introducing "CSR Procurement" as a practice that addresses many issues. These range from conventional green procurement, human rights, labor, health and safety, fair trade, business ethics, information security to consumer protection. I expect them to visualize the status of supplier's activities and put in place an exchange framework for sharing practices, awarding successful activities, and working together to solve problems.

CEO, IIHOE (International Institute for Human, Organization and the Earth) Hideto DeDe Kawakita

• •With regard to social contribution activities, I like the way these activities were undertaken in each region of the world in line with locally-customized policies. Specifically, Brother helps local small businesses and NPOs in the UK improve their operations, while assisting women in rural areas of China to acquire skills. I would like to see social contribution activities strategically promoted as a form of social investment by developing a basic policy common to all Brother elements around the world.
• •With regard to efforts to enhance workforce diversity, I highly rate how key group companies around the world continue to disclose the number of employees and the percentage of women managers in the workforce, as well as how Brother Industries has taken real steps to hire foreign nationals. I hope that they will upgrade their hiring practices and training programs based on long-term planning for the personnel portfolio of the entire group.

Opinion exchange meeting held between an external advisor and top management

Opinion exchange meeting

On June 24, 2009, Mr. Hideto Kawakita, CEO of the International Institute for Human, Organization and the Earth (IIHOE), was invited to the head office of Brother Industries, Ltd. to exchange views with the BIL president and executive officers in charge of CSR, environment, personnel, and procurement. This was the first such meeting for exchanging opinions with an external advisor.
Regarding Brother's CSR and environmental efforts in FY 2008, Mr. Kawakita pointed out both "highly valued points" as well as "issues where progress has been made but further efforts are needed" from the third party point of view. In response, the BIL president and executive officers explained the progress of current actions in their respective fields. This exchange of views with Mr. Kawakita highlighted the challenges that lie ahead, and based on these, Brother will work harder on CSR management in terms of developing global human resources, making global social contributions, and undertaking global environmental conservation activities.