November 11, 2022
To whom it may concern:
Company name:Name of representative:

Inquiries:

Furukawa Co., Ltd.
Minoru Nakatogawa,President and Representative Director(Securities code: 5715; TSE PrimeMarket)
Yoshiteru Matsuo,
General Manager, Sustainability
Promotion Department(Telephone: +81-3-6636-9501)

Notice Concerning Identification of Materiality (Key Issues) on Sustainability Initiatives
The Furukawa Company Group (the “Group”) hereby announces that in order to further endeavor tomake its Management Philosophy a reality and solve social issues, it has reviewed the CSR priorityissues identified in 2013, and at a meeting of the Board of Directors held on the date of this release,
it resolved to identify 10 items of Materiality (Key Issues) based on the “Basic Policy on
Sustainability Initiatives” established in December 2021, as follows.
Furthermore, the Group is considering measures related to initiatives targeting Materiality (KeyIssues), etc., and will promptly provide notice once such matters have been determined.
By steadily implementing the PDCA cycle in relation to any measures determined, etc., the Groupaims to intensively “increase the value of the Furukawa brand through ‘marketing-based
management’ that incorporates CSV* perspectives” and “increase corporate value by emphasizing
business practices that reflect CSR/ESG issues recognized and to be solved by the Group,” as isclearly stated in “Vision for 2025,” and thereby aims to achieve sustainable growth for society andthe Group and increase corporate value over the medium to long term.
Please refer to the Attachment for other details.
* CSV (Creating Shared Value): This is a management framework that enables companies to co-create socialvalue and corporate value by tackling social, environmental, and other issues.

Materiality (Key Issues) on sustainability initiatives
Proactive: CSV issues
Materiality (Key Issues) on resolving “social issues” through business- Providing environmentally friendly products, technologies, and services- Contributing to the resolution of customer issues- Contributing to the creation of a safe and comfortable society, including infrastructuredevelopment
Defensive: CSR/ESG issues
Materiality (Key Issues) on establishing a robust corporate foundation for growth- Promotion of climate change countermeasures in business activities
E (Environment)- Promotion of biodiversity preservation activities- Development of a safe and rewarding work environment that takes health intoconsideration
S (Society)- Recruitment and development of diverse human resources- Promotion of management that respects human rights- Development of an enterprise risk management system
G (Governance)- Thorough compliance≪ Inquiries ≫Furukawa Co., Ltd., Corporate Planning Department, Public & Investor Relations Section, Telephone:+81-3-6636-9501

(Attachment)
1. The Furukawa Company Group Materiality (Key Issues) on Sustainability Initiatives
Proactive: CSV issues
Materiality (Key Issues) on resolving “social issues” through business- Providing environmentally friendly products, technologies, and services- Contributing to the resolution of customer issues- Contributing to the creation of a safe and comfortable society, including
infrastructure development
Defensive: CSR/ESG issues
Materiality (Key Issues) on establishing a robust corporate foundation forgrowth
E (Environment)- Promotion of climate change countermeasures in businessactivities- Promotion of biodiversity preservation activities

S (Society)- Development of a safe and rewarding work environmentthat takes health into consideration- Recruitment and development of diverse human resources- Promotion of management that respects human rights

G (Governance)- Development of an enterprise risk management system- Thorough compliance

Main related SDGs

Main related SDGs

Proactive: CSV issues
Materiality (Key Issues) on resolving “social issues” through business・Providing environmentally friendly products, technologies, and services
In order to provide products, technologies, and services that are environmentally friendly,such as those that counter climate change, the Group will focus on pursuing innovation andpromoting research and development.
RelatedSDGs

・Contributing to the resolution of customer issues
In order to resolve its customers’ issues amid rapidly changing market conditions, the Groupwill endeavor to provide various products, technologies, and services through technologicalinnovation.
RelatedSDGs

・Contributing to the creation of a safe and comfortable society, including infrastructure development
In order to solve social issues, such as aging social infrastructure in Japan and infrastructuredevelopment overseas, and ensure that people can live safely and comfortably, the Groupwill focus on areas such as measures to counter aging social infrastructure and thedevelopment of infrastructure to prevent and mitigate disasters.
RelatedSDGs

(Attachment)
Defensive: CSR/ESG issues
Materiality (Key Issues) on establishing a robust corporate foundation for growth・Promotion of climate change countermeasures in business activities
As the impact of climate change has become more severe and there is a great desire toachieve a “decarbonized society,” the Japanese government is aiming to “achieve carbon
neutrality by 2050 and cut greenhouse gases by 46% by fiscal 2031 compared with fiscal
2014.”The Company has also set targets aligned with these goals, and will focus on reducing
CO2 emissions.
Related
SDGs

・Promotion of biodiversity preservation activities
In order to protect the biodiversity of the Earth, we will deepen our understanding of
biodiversity, and actively engage in activities to preserve biodiversity, such as the use ofsustainable resources, continuous greening activities, and the conservation of livingorganisms.
RelatedSDGs

・Development of a safe and rewarding work environment that takes health into consideration
In order for the Group to engage in business in a sustainable manner, we must create a work
environment where each and every officer and employee is respected and can leverage theircapabilities and work with a sense of vitality. In order to do so, the Group will endeavor toensure safety, promote health and productivity management, and develop a rewarding work
environment.
RelatedSDGs

・Recruitment and development of diverse human resources
In order to create innovation and provide new value to society, it is essential that humanresources who have a variety of characteristics in terms of gender, race, age, values, etc. andhave diverse ways of thinking actively participate. The Group will focus on recruiting adiverse range of human resources, and on providing opportunities for development andactive participation to enable such human resources to freely utilize their characteristics andways of thinking.
Related
SDGs

・Promotion of management that respects human rights
The Group will promote management that respects the rights of people throughout the entire
value chain affected by the Group’s businesses, not just the officers and employees of theGroup.
RelatedSDGs

・Development of an enterprise risk management system
Each Group company and division of the Company will work to identify enterprise risk, andthe Group will create systems for managing risks and opportunities centered on the Risk
Management Committee. In addition, the Group will endeavor to enhance its ability torespond when crises occur.
RelatedSDGs・Thorough compliance
Companies must be socially fair and maintain a sound position in order to provide value tosociety and continue to exist for a long time. The Group will respond flexibly to the changing
social environment and focus on thorough compliance, including compliance with laws andregulations, and honest, fair, and just business activities.
RelatedSDGs

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2. Background to the Identification of Materiality (Key Issues)
In 2013, when the Group launched a framework for promoting CSR, the Group identified CSR
priority issues, established related targets, and worked to achieve those targets. In recent years,
however, measures to counter climate change and initiatives tackling the SDGs have come to beviewed as increasingly important, and in order for the Group to review its existing understandingof the issues, and further endeavor to make its Management Philosophy a reality and solve socialissues, it determined a “Basic Policy on Sustainability Initiatives” on December 1, 2021, andreorganized from a CSR promotion framework to a sustainability promotion framework. Now, theGroup has reviewed the existing CSR priority issues, and identified the Materiality (Key Issues)on sustainability that it should focus on as a matter of priority.
3. Process for Identifying Materiality (Key Issues)

Step 1
Select socialissues

Step 2
Understandimportance・ Identify issues recognized as important bythe Group and various stakeholders, froma medium- to long-term perspective.

・Conduct in-house surveys related to the 50candidates selected. Assess importance inrelation to issues.
・Aggregate and score the results.

[Reference]GRI Standards, ISO 26000, indicatorsand targets for the SDGs, trends atother companies, etc.
・Select 50 candidates for Materiality (KeyIssues).

・Consolidate the 50 candidates into 10 itemsof Materiality, while taking into
consideration social demands, etc.

Step 3
Identify
Materiality(Key Issues)

・ Passed resolutions concerning theidentification of Materiality (Key Issues) ata meeting of the Management Council heldin October 2022, and an extraordinary
meeting of the Board of Directors held on
November 11, 2022.

(Attachment)
4. Image of the Furukawa Company Group’s Sustainability Initiatives
An image of the Group’s sustainability initiatives that reflects the newly identified materiality
is as follows.

The Furukawa Company Group Materiality (Key Issues) on Sustainability Initiatives
Defensive (CSR/ESG issues):

Proactive (CSV issues):

Materiality (Key Issues) on establishing a robust corporate
foundation for growthMateriality (Key Issues) on resolving “social issues” throughbusiness

E (Environment)- Promotion of climatechangecountermeasures inbusiness activities

S (Society)

G (Governance)- Development of a safe - Development of anand rewarding work
enterprise risk
environment thatmanagement systemtakes health into
- Providing environmentally friendly products, technologies, and services
consideration- Contributing to the resolution of customer issues- Promotion of- Recruitment and- Thorough compliance - Contributing to the creation of a safe and comfortable society, including
biodiversity
development ofinfrastructure development
preservation activities diverse humanresources- Promotion ofmanagement that
respects human rights

(Attachment)
5. The Furukawa Company Group’s Value Creation Process
The Group’s value creation process, reflecting the newly identified materiality, is as follows.