Makita : Environmental Report 2022

2022

Environmental

Report

CONTENTS

Corporate Profile·············································································· 2 Top Message··················································································· 3 Environmental Management ································································ 4 Corporate Philosophy ······························································· 4 Basic Policy on Sustainability ····················································· 4 Our Commitment to SDGs ························································· 4 Initiatives for the TCFD Recommendations ····································· 5 Environmental Vision ······························································ 5 Environmental Policy ······························································· 5

Topics ·························································································· 6 Environmental Management System ······················································ 8 Environmental Management Promotion Framework ··························· 8 ISO14001············································································· 8 Environmental Accounting ························································ 9 Our Commitment to Creating Environmentally Conscious Products ················ 10 Development of Environmentally Conscious Products ······················· 10 Green Procurement································································· 10 Environmentally Conscious Products ··········································· 11 Makita's Cordless Products that Contribute to Solving Social Issues ······· 12

Environmental Action Plan and Achievements ········································· 15 Environmental Performance ······················································ 15 Resource Input and Environmental Burden Emitted (Material Balance) ··· 16 GHG Emissions throughout the Supply Chain ································· 17 FYE 2022 Achievements Based on Our Environmental Action Plan ······· 18 Targets related to GHG Emissions··············································· 18

Environmental Initiatives in Our Business Activities··································· 19 Global Warming Prevention ······················································ 19 Water Usage········································································· 20 Management of Chemical Substances ··········································· 20 Reduction of Emissions ··························································· 21

Environmental Communication with Local Communities ···························· 22 Social Contribution Activities for Local Communities ······················· 22 Our Commitment to Preventing Environmental Risks ························ 22

Environmental History ······································································ 23

■ Organizations and Topics Covered

This report covers domestic and overseas subsidiaries, namely Makita Corporation, and covers the topic of environmental protection activities for FYE 2022.

■ Period Covered

This report is based on the achievements of activities implemented in FYE 2022 (April 1, 2021, to March 31, 2022). ■ Reporting Policy

Our company is engaged in a wide range of environmental protection activities, and this report mainly covers the themes of environmental protection activities that we are focusing our efforts on. In preparing this report, we tried to make sure that those who are not environmental experts will also be able to easily understand the overview of each theme, with the aim to enhance communication with all our stakeholders. In editing and designing the report, we made sure to use appropriate phrasing and colors, and ensured readability.

The company's environmental performance (achievement) data for the period coinciding with the company's fiscal year, which are aggregated as of March 31 every year, are analyzed and the results are published in June.

■ Target Audience

All our stakeholders, including customers, business partners, employees, shareholders, local communities, and public institutions ■ Publication and Announcement Media

This report is published in PDF format on our company's website and can be downloaded. URL: https://www.makita.biz/

■ Report Creation Department and Inquiries (If you have any opinions or comments about this report, please let us know.)

Makita Corporation Environment & Facility Control Division Environment Group Email: [e-mail]

- 1 -

Environmental Report 2022

Corporate Profile

Company Name

Head Office	3-11-8,Sumiyoshi-cho, Anjo,	■ Head Office
	Aichi 446-8502, Japan
	Phone: [phone]
	URL: https://www.makita.biz/
Date of Founding	March 21, 1915
Date of Incorporation	December 10, 1938
Revenue	¥739.3 billion (consolidated)
	¥536.7 billion (Parent)
Profit Attributable to	¥64.8 billion (consolidated)
Owners of the Parent	¥32.9 billion (Parent)
Paid-in Capital	¥24,206 million
Number of Employees	20,233 (consolidated) 3,245 (Parent)
Description of	Production and sales of electric power tools, outdoor power
Business	equipment, pneumatic tools and household equipment
Consolidated Subsidiaries	52 (Production subsidiaries 6, Sales and production subsidiary 1)

Number of employees

	25,000			Parent		Consolidated
						[Billion yen]
[Person]	20,000
15,000
10,000
	5,000
	0

Revenue

800

600

400

200

0

Parent Consolidated

2018	'19	'20	'21	'22	[FYE]
Profit attributable	to

2018 '19 '20 '21 '22 [FYE]

owners of the parent
	70			Parent		Consolidated
yen]	60						yen]
50
[Billion	40						[Billion
30
	20
	10
	0

Total assets

1,200

1,000

800

600

400

200

0

Parent Consolidated

									[FYE]
2018		'19		'20		'21		'22

2018 '19 '20 '21'22 [FYE]

United Kingdom Plant

Germany Plant

China Plant (MCC/MKC)

United States Plant

Romania Plant
Head Office/Okazaki Plant
Thailand Plant	Brazil Plant

- 2 -

Environmental Report 2022

Top Message

Aiming to create a "sustainable recycling-oriented society" that harmonizes the environment with the economy

Looking at the international economic situation during FYE 2022, while economic and social activities have been normalized, particularly in developed countries, in line with the rollout of the COVID-19 vaccine, the future remains uncertain due to shortages of goods and logistics disruptions in the supply chain, rising prices, the resurgence of infections caused by coronavirus mutations, and the growing international tension surrounding the Ukraine issue. Against this backdrop, our group focused its development efforts on expanding its lineup of cordless products, including power tools and outdoor power equipment, in the "40Vmax Lithium-ion Battery" series, which offers high power, long life and high durability. On the production side, we worked to increase production in response to increasing demand and to promote multi-polarized global production. On the sales side, we focused on increasing the level of the community-based and customer-oriented service framework in order to further strengthen trusting relationships with customers around the world. We strive to deepen and develop the market centered on cordless products.

Regarding initiatives toward carbon neutrality, the impact of climate change on society, such as frequent wind and flood disasters, is

becoming more serious, and companies are playing an increasingly important role in realizing a decarbonized society. Our company views climate change as an important business issue. For this reason, our company has prioritized contributing to the solution of climate change issues by, for example, focusing on cordless outdoor power equipment that does not emit exhaust gas when used. However, in order to further accelerate these efforts, we have newly set targets for reducing greenhouse gas (GHG) emissions. Our targets are to reduce GHG emissions from our business activities (Scope 1, 2) by 50% from fiscal 2020 levels by fiscal 2030, to reach net zero emissions by fiscal 2040, and to achieve net zero GHG emissions throughout the supply chain (Scope 3) by fiscal 2050.

In addition, recognizing the importance of dialogue with stakeholders on climate-related risks and opportunities, we disclosed information on our company website for the first time based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Going forward, in addition to energy conservation in our business activities, we will steadily promote initiatives to reduce GHG emissions, including the use of renewable energy, and work to enhance information disclosure.

"Environmental Report 2022" is published with the objective of presenting the Company's initiatives for environmental protection activities. I hope this report helps your better understanding for our activities.

June 28, 2022

President, Representative Director

Munetoshi Goto

- 3 -

Environmental Report 2022

Environmental Management

Corporate Philosophy

Management Policy/Quality Policy

1. Makita strives to exist in harmony with society (a company that observes laws and regulations, acts ethically and never allows intervention of the anti-social organizations).
2. Makita values its customers (a market-driven company).
3. Makita is managed in a consistent and proactive manner (a company that strives to exist in perpetuity by adhering to a sound profit structure).
4. Valuing a stalwart corporate culture, Makita encourages each individual to perform to his or her highest level (a happy company).

Code of Ethics

1. Honest and ethical conduct; no conflict of interest
2. Compliance with applicable laws and regulations
3. Full, fair, timely and understandable disclosure
4. Accountability for adhering to this Code
5. Enforcement mechanism
6. Approval for waiver of this Code

Code of Conduct

1. Am I acting in accordance with ethical guidelines? (Would I be unashamed in front of anyone?)
2. Am I looking at things from the customer's point of view rather than the company's point of view? (Am I leaning more towards the customer than my supervisor or my colleagues?)
3. Am I acting and thinking independently and taking on challenges? (Am I caught up in past experiences and successes?)
4. Am I persistently improving and innovating technology? (Is there a reason we have to do it this way?)
5. When I am on site, do I respect the opinions there? (Do I accurately gather information and communicate adequately?)

Long term Target: Strong Company

Makita has set itself the goal of contributing to the creation of sustainable society and consolidating a strong position in the industry worldwide as a global supplier of a comprehensive range of tools for creating comfortable homes and living environments, including cordless power tools, battery-operated outdoor power equipment and pneumatic tools.

Basic Policy on Sustainability

1. As a global supplier of a comprehensive range of tools for creating comfortable homes and living environments, Makita will focus on solving environmental problems and other social issues through our main business, and work to achieve a sustainable society.
2. Makita aims to develop in harmony with society, by promoting corporate ethics and compliance, respect for human rights, protection of the environment, quality assurance, responsible procurement activities, etc. In particular, we consider carbon neutrality and other environmental problems to be issues of the highest importance.
3. Makita will engage in highly fair and transparent corporate management, thereby building strong relationships of trust with all our stakeholders.

- 4 -

Environmental Report 2022