Makita : Environmental Report 2023

2023

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 Our Commitment to Carbon Neutrality ·········································· 6 Promoting the Elimination of Plastic ············································· 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 2023 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 Management of Chemical Substances ··········································· 20 Water Usage········································································· 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 2023.

■ Period Covered

This report is based on the achievements of activities implemented in FYE 2023 (April 1, 2022, to March 31, 2023). ■ 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]

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Environmental Report 2023

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	¥764.7 billion (consolidated)
	¥414.9 billion (Parent)
Profit Attributable to	¥11.7 billion (consolidated)
Owners of the Parent	¥15.5 billion (Parent)
Paid-in Capital	¥24,206 million
Number of Employees	18,804 (consolidated) 3,384 (Parent)
Description of	Production and sales of electric power tools, outdoor power
Business	equipment, pneumatic tools and household equipment

Consolidated Subsidiaries Domestic 1, Overseas 53 (Production subsidiaries 6, Sales and production subsidiaries 2)

Number of employees

	Parent		Consolidated

	25,000
[Person]	20,000
15,000
	10,000
	5,000
	0

2019 '20 '21 '22 '23 [FYE]

Profit attributable to owners of the parent

	Parent		Consolidated

	70
yen]	60
50
[Billion	30
	40

20

10

0

									[FYE]
2019		'20		'21		'22		'23

	Revenue
			Parent			Consolidated
1,000
yen]	800
600
[Billion
400
	200
	0

2019 '20 '21 '22 '23 [FYE]

	Total assets
		Parent		Consolidated
yen]	1,200
1,000
800
[Billion
600
	400
	200
	0

2019 '20 '21 '22'23 [FYE]

United Kingdom Plant

Germany Plant

China Plant (MCC/MKC)

United States Plant

Romania Plant

Head Office/Okazaki Plant
Thailand Plant	Brazil Plant

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Environmental Report 2023

Top Message

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

Looking at the international economic situation during the fiscal year, concerns over a global economic downturn have heightened against the backdrop of factors including high inflation, monetary tightening in various countries and the energy crisis associated with the prolongation of the war in Ukraine.

In this situation, the Makita Group focused on expanding its lineup of cordless products including power tools and outdoor power equipment in the "40Vmax Lithium-ion Battery" series. With respect to production, we worked on building a production system and strengthening management functions to flexibly address changes in the demand environment and geopolitical risks, and improve the efficiency of the Group as a whole. We also work to increase 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. We have identified contributing to a decarbonized society as a material issue that should be prioritized and are stepping up our efforts.

Therefore, the Group is currently working on the realization of a decarbonized society by focusing on cordless outdoor power equipment that does not emit exhaust gases during use as the next pillar of our future business in addition to power tools. In addition, with the goal of reducing our greenhouse gas (GHG) emissions, we have set targets for reducing GHG emissions from our business activities (Scope 1 and 2) by 50% by FY2030 from the FY2020 level and to net zero by FY2040, and reducing GHG emissions from the entire supply chain (Scope 3) to net zero by FY2050.

During the fiscal year ended March 2023, solar panels were installed at the Okinawa Branch in Japan and at multiple overseas locations, including the Thailand Plant, Austria, and Taiwan, and we promoted the use of renewable energy.

We will continue to work on the use of renewable energy and energy conservation in our business activities to achieve GHG emission reduction targets.

"Environmental Report 2023" 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, 2023

President, Representative Director

Munetoshi Goto

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Environmental Report 2023

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.

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Environmental Report 2023