CO₂ Emission Reduction Activities

• * FY2010: April 1, 2010-March 31, 2011

Strengthening measures to reduce CO₂ emissions at business sites around the world

The Brother Group's CO₂ emissions in Japan come mainly from the electricity used by offices, while the group's CO₂ emissions overseas are attributed mainly to the use of electricity and fuel at factories and offices. The Brother Group has been increasing the efficiency of air conditioning and lighting, and ensuring efficient operation of production equipment at factories, in order to reduce electricity usage and CO₂ emissions.

To achieve the goals set in the Brother Group 2010 Midterm Environmental Action Plan, energy conservation diagnoses were made at seven manufacturing facilities outside Japan and one manufacturing facility in Japan in FY2007 (April 1, 2007-March 31, 2008). Based on the results, energy conservation measures were taken for power-intensive equipment, such as lighting and air conditioning equipment, compressors, chillers, clean rooms, and molding machines. Specifically, existing equipment was replaced with more efficient equipment. Great effort was also made to turn off switches whenever equipment was not in use, and to eliminate air leakage from compressors. The target of these activities was to reduce electricity consumption equivalent to about 2,500 MWh. In FY2009 (April 1, 2009-March 31, 2010), these efforts, combined with lower production due to the economic downturn, led to a significant reduction in energy consumption.

In FY2010, manufacturing facilities outside Japan continued to work on removing lights where possible, introducing LED lighting, setting up occupancy sensors, turning off lights and providing skylights instead, updating air conditioning equipment and inverter compressors, and ensuring measures to prevent air leakage. However, the recovery of the operating ratio coincided with a long heat-wave in Huanan, China where many manufacturing facilities are located. As a result, CO₂ emissions increased by about 2,800 tons (decreased by about 1% per unit sales from FY2009 levels, and by about 9% from FY2006 levels).

In Japan, the Company-wide Energy Conservation Working Group was set up under the Environmental Committee to promote energy conservation activities. Overall energy conservation measures have been reviewed for power-intensive equipment including lighting and air conditioning equipment, clean rooms, compressors, and constant temperature/humidity chambers, to enhance activities.

• *: FY2004: April 1, 2004-March 31, 2005 for business sites in Japan and January 1, 2004-December 31, 2004 for facilities outside Japan , FY2005: April 1, 2005-March 31, 2006 for business sites in Japan and January 1, 2005-December 31, 2005 for facilities outside Japan , FY2006: April 1, 2006-March 31, 2007 , FY2007: April 1, 2007-March 31, 2008 , FY2008: April 1, 2008-March 31, 2009 , FY2009: April 1, 2009-March 31, 2010 , FY2010: April 1, 2010-March 31, 2011
• *1: Brother Sewing Machine Xian Co., Ltd. merged with Xian Typical Brother Industries, Co., Ltd. in 2010. The new company is named Brother Machinery Xian Co., Ltd.
• *2: Brother Sewing Machine (Shanghai) Co., Ltd. transferred its business to Brother Machinery Xian Co., Ltd. in 2010.

BIL's activities and changes in CO₂ emissions

In FY2010, BIL's total energy consumption (electricity and fuel) was 18,402 tons in CO₂ equivalent, up 1,532 tons (about 9.1%) from FY2009^*1. In FY2009, the operating ratio decreased due to the global recession, which led to a decrease in CO₂ emissions. In FY2010, the recovery in operating ratio coincided with an increased air conditioning load due to the intense heat in summer, which resulted in increased electricity consumption and CO₂ emissions.

In FY2010, electricity consumption was 40,785 MWh, up 8.1% from FY2009. Fuel consumption (light oil, gasoline, LPG, and city gas) was 846 kl in crude oil equivalent, up 137 kl (about 19%) from FY2009^*2. At the Kariya Manufacturing Facility, city gas consumption by gas-fueled air conditioning equipment increased due to the intense heat, and so the fuel consumption increased.

From FY2009 to FY2010, management standards were reviewed for clean rooms and constant temperature/humidity chambers and applied across the company. In FY2011 (April 1, 2011-March 31, 2012), measures taken in recent years will be reviewed and efforts will be strengthened.

The four representative associations of the electric and electronic industries^*3 drew up industry-specific voluntary action plans, and set the goal of "reducing CO₂ emissions per unit of real production output^*4 by 35% against FY1990 levels by the year 2010 (final assessments will be based on an average over a five-year period from 2008 through 2012)" to prevent global warming. During the past three years from FY2008 (April 1, 2008-March 31, 2009), BIL succeeded in attaining a 47.7% reduction (a figure after reflecting Kyoto Credits) on average against FY1990 levels. Various measures will continue to be taken to achieve this five-year-average target.

• *1: According to the voluntary action plans of the four representative associations, the coefficient of the averaged total power sources at the receiving end (published by the Federation of Electric Power Companies of Japan) is used to convert electricity into CO₂ emissions. (FY1990: 0.417, FY2000 (April 1, 2000-March 31, 2001): 0.376, FY2001 (April 1, 2001-March 31, 2002): 0.376, FY2002 (April 1, 2002-March 31, 2003): 0.404, FY2003 (April 1, 2003-March 31, 2004): 0.433, FY2004: 0.418, FY2005: 0.423, FY2006: 0.410, FY2007: 0.453, FY2008: 0.444 (before reflecting Kyoto Credits) / 0.373 (after reflecting Kyoto Credits), FY2009: 0.412 (before reflecting Kyoto Credits) / 0.351 (after reflecting Kyoto Credits). The coefficient for FY2010 was calculated by using values in FY2009 as substitutes. The unit is t-CO₂/MWh.
• *2: For city gas, heating values published by Toho Gas Co., Ltd. (which supplies gas to Brother) are used pursuant to the Energy Conservation Law. Electric power derived from two photovoltaic power generation systems is included in electricity consumption, but is not included in CO₂ emissions because the process of generating photovoltaic power does not generate CO₂.
• *3: The four associations refer to the Japan Electronics and Information Technology Industries Association, the Japan Electrical Manufacturers' Association, the Japan Business Machine and Information System Industries Association, and the Communications and Information Network Association of Japan.
• *4: "CO₂ emissions per unit of real production output" refers to CO₂ emissions compensated by the corporate goods price index (electrical/electronic machinery and equipment) published by the Bank of Japan (BOJ). Real production output = Production output / domestic corporate goods price index (electrical/electronic machinery and equipment). The FY1990 levels are assumed to be 100, and FY2009 index is used for FY2010.