Environmental and Social Report

2006

Contents

Editorial Policy

2

Message

3

Environmental Performance●Targets and Performance of Environmental Management

5●Environmental Management System

7●Business Activities and Their Impact on the Environment

8●Zero-Emission Activities

9●Efforts to Prevent Global Warming

10●Chemical Substance Management

11●Creating Environmentally Friendly Products

12●Environmental Risk Management

15●Environmental Accounting

17●Environmental Preservation Performance Indicators

18

Social Performance●Social and Regional Involvement

19●Environmental Performance of the Works

21●Involvement with Employees

23●Environmental Performance of Affiliated Companies

26

Furukawa Electric’s Progress in Environmental Management /Company Overview

29Business Bases Covered by this Report

Period Covered

1．Furukawa Electric

From April 1, 2005 to March 31, 2006
Information regarding past events and activities for fiscal 2006 ispartially included.

①Chiba works

④Mie works②Nikko works⑤Osaka works③Hiratsuka works⑥Yokohama works

Editorial Policy
This brochure reports mainly on the environmental preservation activities of the
Furukawa Electric Group for fiscal 2005. The fiscal 2006 version has been re-named
the “Environmental and Social Report,” with a further emphasis on social involvement.
In compiling this report, we have made reference to the Environmental Reporting
Guidelines (Fiscal Year 2003 version) published by the Ministry of the Environment, as
well as the Sustainability Reporting Guidelines published by the GRI (Global Reporting
Initiative).

2．Affiliated companies
 lease refer to the List of Companies Participating in the LiaisonP
Meeting for Consolidated Environmental Management※1）In this report, when “Furukawa Electric”, or "the Company" is mentioned, it refers to thebusiness bases of item 1 above. When “the Furukawa Electric Group” is mentioned, it refers
to the business bases of items 1 and 2 above (excluding pages 26 to 28).

Enquiries and further information※2）The affiliated companies covered in this report have been changed from the previous reportdue to changes in the group companies. Data is provided for newly covered affiliated

Safety, Environment and Quality Promotion Department
The Furukawa Electric Co., Ltd.
TEL +81-45-311-1334  FAX +81-45-311-1931

companies for fiscal 2005 and for affiliated companies that have been traditionally covered
for fiscal 2004 and earlier.

■ List of Companies Participating in the Liaison Meeting for Consolidated Environmental Management
Company Name

Environmental
Accounting

Company Name

Access Cable Company

Environmental
Accounting

FITEC Corporation

Asahi Electric Works Co., Ltd.

○The Furukawa Electric Engineering Service Co., Ltd.

○

Inoue Manufacturing Co., Ltd.

○

Furukawa Automotive Parts Inc.

○NTEC Ltd.

○

Furukawa Circuit Foil Co., Ltd.

○

F-CO Co., Ltd.

○

Furukawa Sangyo Kaisha, Ltd.

FCM Co., Ltd.

Broad Wireless Corporation○○

Okano Electric Wire Co., Ltd.

○

Furukawa Industrial Plastics Co., Ltd.

Okumura Metals Co., Ltd.

○

Furukawa Precision Engineering Co., Ltd.

Kyowa Electric Wire Co., Ltd.

Furukawa Engineering & Construction Inc.

○

Sunsunny Industry Co., Ltd.

The Furukawa Battery Co., Ltd.

○

Shodensha Co., Ltd.

○

Furukawa Logistics Corporation

Seiwa Giken Inc.

○

Furukawa Techno Material Co., Ltd.

Totoku Electric Co., Ltd.

○

Furukawa Life Service Inc.

T.H. Furukawa Electric Co., Ltd.

Miharu Communications Inc.

Nikkei Kakoh Co., Ltd.

Yamada Keikinzoku Co., Ltd.*○

Riken Electric Wire Co., Ltd.

○

Furukawa Electric Industrial Cable Co., Ltd.

Furukawa-Sky Aluminum Corporation○

Furukawa Infonet Products Co., Ltd.

Zaikoo Co., Ltd.

Nippon Foil Mfg. Co., Ltd.

○○

Environmental Accounting… ○ : Implements environmental accounting described in this paper*Yamada Keikinzoku Co., Ltd. is no longer a part of the list as of July 2006.

Message
The Furukawa Electric Group will
actively implement environmental andsocial activities as “an earth-friendly
company” that aims for “innovation.”
Hiroshi Ishihara
President , Chief Executive Officer & Chief Operating Officer

Furukawa Electric has continued to experience harsh conditions, andunder these conditions we have implemented various measures, aiming
to be a creative company that makes its presence felt in the world. We
embarked upon efforts to make proper adjustments in our workforce,
decrease increase-bearing debt, improve profitability by structuring themechanism of all group companies, reduce costs and decrease inventory.
The progress of our improvement efforts, together with favorable market
conditions and turn of the economy, has led to a steady enhancement inour performance. In addition, we will be focusing on strengthening ourmanufacturing abilities, managing business risks, creating new businesses and customer development. Companies are increasingly expected totake social responsibility. Furukawa Electric, as members of society, will
fulfill our social responsibility not only through environmental activities
and complying with laws, but also by providing products and contributing
to society.
In terms of environmental activities, our slogan is “an earth-friendly
company.” Aiming to realize a “recycling-oriented society,” Furukawa
Electric has continuously worked in cooperation with its associatedgroup companies to reduce environmental impact and increase its resource capabilities once it has clearly set the standards and timings
that it seeks to achieve. From the perspective of risk management, wehave managed the chemical substances contained in our products andcarried out ground pollution investigations.
With the aim of fulfilling our social responsibilities, Furukawa Electrichas set up a Compliance Committee, ensuring that employees comply withlaws and regulations and that they follow a code of conduct. We have madeefforts to go beyond simply abiding by the laws to strengthen the trust of thecommunity by contributing to the local community and promoting the safety and health of our employees by such means as taking measures against
asbestos. In particular, we have made significant improvements in the management of working hours, undertaking a radical conceptual reform.
Our improved performance has led us to shift from “defensive” to “offensive” management, and we are aiming for “innovation” in technology
and reforms in business, production and management. In doing so, ourenvironmental and social efforts are extremely crucial in gaining thetrust of our customers. We have reported on the content of our activities
in our Environmental Reports, but this year the title has been changed to“Environmental and Social Report,” and we have enhanced the sections
on social responsibility. It is our hope that you will gain an understandingof our activities and continue to offer your support and cooperation.
3

Company Policy of the Furukawa Electric Group[Basic Management Policy]●Have a high regard for our customers●Value our employees and bring out the bestin them●Proactively adopt new technologies thatharness creativity[Our Vision]
Pursuing technology innovation and aiming
for a creative and highly profitable company
with a stronger global presence[Management Policy]●Practice of responsive management●Orientation toward profit●Creation of new products and market opportunities●Growing development of global management●Continuous promotion of structural reform●Strengthening of consolidated management

Furukawa Electric Basic Environmental Policy[Basic Policy]
Furukawa Electric recognizes that preservation of the global environment is a critical issue for society, and shall incorporate consideration of environmental preservation issues into every phase of corporate activity, to contribute to the advancement of a sustainable, happy and prosperous society.

[Action Guidelines]●All activities shall be based on an awareness of its effect on the global environment, and environmental preservation activities
shall be pursued by all employees.
●We shall observe environmental laws and regulations and requirements from our customers, and set up voluntary standards toupgrade control levels.
●We shall define environmental targets and objectives, and carry out activities according to this plan, thereby continuously improving environmental preservation activities.
●Environmental concerns shall be taken into consideration in every phase of our work from the R&D and design stages to supply
environmentally friendly products.
●In every phase of procurement, manufacturing, distribution and customer service we shall work to reduce consumption of resources and energy, to promote recycling, and to reduce waste materials and the impact on the environment.
●We shall carry out environmental audits, and review our environmental management system and environmental preservation
activities for continuous improvement.
●We shall educate all employees to enhance their environmental awareness, and promote disclosure of information and social communication, thereby actively contributing to community activities.
Furukawa Electric and its affiliated companies have continuously
promoted environmental preservation activities, aiming to achieve a“recycling-oriented society.” With
continued business development as
our objective, we are also promoting comprehensive cost reduction
activities. We have comprehensively
worked to reduce production costs
and improve quality in conjunction
with efforts related to production activities such as applying technology
in our plants, procuring materials,
and safety management. Of these,
we recognize that environmental activities are extremely crucial due tothe heightened awareness of society
and our customers.
In developing new products, we havecalled our environmentally friendly
products ECOLINK, and consider
them our pillars for research anddevelopment in increasing profitsand exercising our growth potential. Once again this year, we jointly
developed a recycled bobbin using
optical cable waste materials withThe Tokyo Electric Power Company,
Incorporated. We expect the highperformance reflow oven that uses
lead-free solder to promote lead-free

products. As for halogen-free electric
wires, we were able to significantly
increase their strength, contributing to the increase of halogen-free
products through the expanded useof these wires. In the future, we willcontinue with the development ofenvironmentally friendly productsthat are “creative and capture newmarkets.”
At manufacturing sites we havecontinuously carried out activities
to reduce the impact on the environment. As something that particularly contributes to profits, we have aggressively embarked upon efforts to
reduce waste disposal costs. We have
reduced the total amount of waste
products by sorting and finding newuses for reused waste and eliminating wastefulness, and we have also
decreased processing costs by promoting value processing. In fiscal
2005, we achieved a profitability of
43 million yen for the first time, due
to the results of our abovementioned
efforts and the rise in scrap copper
prices. We will continue to work to
reduce waste, the emission of greenhouse gases and chemical substances. Further, 2005 saw an intenseinterest in the health hazards of

Kosaku Nakano
Director in charge of environment
Chief Officer, Technology & Production
Director, Member of the Board

asbestos, and we at Furukawa Electric took an immediate, emergency
response to determine the use of asbestos in products, health surveys of
our employees, and whether or notasbestos was used in our factory facilities and buildings, following up
with the necessary measures. Thereis the risk of a variety of issues arising with regards to safety and theenvironment, and we intend to operate with a heightened sensitivity tothese issues.
We present here the report for
2006, which we ask our stakeholders
to read and share with us their frankopinions that we might deepen ourmutual understanding.

Environmental Performance

Targets and Performance of Environmental Management
Furukawa Electric has set the Medium-Term Plan for Environmental Preservation Activities 2005 and implemented environmental preservation activities from fiscal 2003 to fiscal 2005. In addition, Furukawa Electricand its group have set common activity targets for consolidated environmental management to promote these
activities. For the performance for fiscal 2005, the final fiscal year of the plan, although the targets for the
reduction of the emission of greenhouse gases were not satisfied, we were able to attain the general targets.
Building upon these, we have formulated the Medium-Term Plan for Environmental Preservation Activities 2009as our next medium-term targets.
TargetTargets and Performance of Furukawa Electric

Performance

Targets and Performance of Consolidated Environmental Management

Waste reduction activities

Targets and performance for the reduction of the amount of waste outsourced for processing
2005 Target
50% reduction
compared tofiscal 2000

2009 Target
50% reduction
compared tofiscal 2004

2005 Target
30% reduction
compared tofiscal 2000

2009 Target
50% reduction
compared tofiscal 2004

2006 Target
20% reduction
compared tofiscal 2004
Evaluation

Evaluation（→ P9）(fiscal year)

Zero-emission activities

Targets and performance for the reduction of the amount of direct landfill processing
2005 Target
60% reduction
compared tofiscal 2000

2009 Target
50% reduction
compared tofiscal 2004

2005 Target
50% reduction
compared tofiscal 2000

2009 Target
50% reduction
compared tofiscal 2004

2006 Target
20% reduction
compared tofiscal 2004
Evaluation

Evaluation（→ P9）(fiscal year)

Activities to prevent global
warming

Targets and performance for the reduction of greenhouse gas emissions
2005 Target
5% reduction
compared to
Evaluation fiscal 2000
increase2005 Target
19% reduction
compared tofiscal 2000

Evaluation

2006 Target
22% reduction
compared to 2009 Target
fiscal 2000 25% reduction
compared tofiscal 2000（→ P10）2005

2009 Target
10% reduction
compared tofiscal 2000
(fiscal year)

Use of HFC, PFC

2005 Target
Eliminate use of
HFC, PFC
Marginal use in someof our products
Evaluation

Fiscal Year Targets
Furukawa Electric set the annual target of “Priority Environmental Preservation Activity
Targets,” and these targets were employed in the objective, targets and implementation
programs under the environmental management system for the individual business bases
to promote these activities. Our affiliated companies also set their unique targets with respect to the common activity targets of the consolidated environmental management andpromoted their activities.
Evaluation Standards : ◎Substantially achieved ○Achieved △Slightly underachieved ×Underachieved

Targets and Performance of Furukawa Electric

Targets and Performance of Consolidated Environmental Management

Chemical substancecontrol activities

Targets and performance for the reduction of chemical substance emissions
Emissions of specific substances

Emissions of volatile organic compounds

2005 Target
54% reduction
compared tofiscal 2000

2006 Target
12% reduction
compared tofiscal 2004 2009 Target

30% reduction
compared tofiscal 2004

Evaluation

Emissions of chlorinated organic compounds

Emissions of volatile organic compounds

2009 Target
30% reduction
compared tofiscal 2004
2005 Target
50% reduction
compared tofiscal 2000 Evaluation（→ P11）(fiscal year)

Use of chlorinated organic compounds

Medium-term 2009 target
Eliminate use by fiscal
2008

目標

Green activities

TargetTargetTargetTargetMake procurement rate
to 100% for 23 general
purpose items including
office supplies

1. Make procurement rate
100% for 50 general
purpose items
2.Build the FGM system
for all factories subject
to RoHS Directive

Expansion of the number of
items under green procurement(general purpose items) and rollout to the Group Companies

Make procurement rate to 100%for items under green procurement (general purpose items)

Strengthen promotion of green
product management

Strengthen promotion of green
product management

Performance

Evaluation

○

100％

Build FGM system and roll out to the
supply chain by the end of 2007, establish by the end of 2008

Build FGM system by the end of 2007,
establish by the end of 2008（→ P12）*The FGM system is a mechanism to manage the content of regulated hazardous substances for Furukawa Electric products.

Eco-design activities

TargetTargetTargetTargetCreate models in preparation for the introduction of LCA

Make the sales percentage of environmentally friendly products
among new products to100%

Promotethe increased environ製品の環境性能向上の促進
mental performance of products
・新製品に置ける環境調和
Increase the percentage of environmentallyfriendly
products among new products
製品比率を向上する
Introduce environmental performance
・環境性能指標を導入する
indices

Promote the increased environmental performance of products

Performance

Evaluation△

Implement evaluationof telecommunication
cables, power cables
and automotive parts at
the production stage（→ P13）



Make the sales percentage of environmentally friendly products to 100%

Environmental Performance

Environmental Management System
Environmental Management Organization
At Furukawa Electric, the Director in chargeof the environment acts as the Chairman of theCentral Committee for Environmental Management, which has been set up to promote environmental preservation activities for the entire
company. In addition, Furukawa Electric is promoting the Group’s environmental preservation
activities in conjunction with its affiliated companies at the Liaison Meeting for Consolidated
Environmental Management. As we believethat schemes based on ISO14001 would be
effective for carrying out environmental preservation activities at the individual businessbases of Furukawa Electric and its affiliatedcompanies, we have been working towards acquiring certification. Of our affiliated companies, two companies newly acquired certification (Sunsunny Industry in December 2005 andOrganization Chart for Company-Wide Environmental Management
President

Committee for Company-Wide Promotion ofEnergy Conservation

Central Committee forEnvironmental Management

Committee for Development ofEnvironmentally-Friendly Products

Safety, Environment and Quality Promotion Dept.
Environment Committee of Works

Divisional Environment Committee

Expert Committee
Energy Conservation Committee,
Industrial Waste Committee

Furukawa Precision Engineering in July 2006),
and all of Furukawa Electric’s business bases
and consolidated environmental companies

Committee for Green Product Management
Environmental Personnel Meeting
Liaison Meeting for
Consolidated Environmental Management

have acquired ISO14001 certification.

Conducting Environment Related Education
The Furukawa Electric Group is conducting
a variety of educational sessions to heighten
awareness of the environment among our employees.
●ISO14001 Related Education
Two seminars were conducted by the company's instructors to train internal environmental auditors, which included participants from
our affiliated companies. 45 internal auditors were trained at these seminars. We also
held two instructional seminars on the revised
version of ISO14001. In addition, we held aseminar on positive environmental aspects
conducted by external instructors. There were
27 participants at this seminar, mainly from the
EMS Office of the individual business bases andaffiliated companies. Brush-up seminars forinternal auditors aimed at our affiliated companies were also held.
●Environment-related Education
We conducted education sessions on environmental problems in general for a total of 50
of our new employees and second-year employees. In addition, at each works and workplace, we conducted as necessary a generalenvironmental education session at the time
when employees are assigned to a division, andconducted special education sessions relatingto specific work.

●Environmental Seminar for Managers
In order to further promote awareness among
managers about environmental activities, we
held an environmental seminar for managers ofconsolidated companies (the third such seminar). As instructors, we invited the managers of
the environmental divisions of major domestic
companies to lecture on the topic of “Environmental Management of Leading Global Companies.” A total of 85 top officials, including thePresident, executive directors, members of theCentral Committee for Environmental Management and personnel in charge of environmental
management at works of Furukawa Electric,
and presidents and other managers of affiliatedcompanies participated in this lecture.

Business Activities and Their Impact on the Environment
Furukawa Electric provides products by purchasing a variety of parts and raw materials, and by using energy,
including water and electric power, and chemical substances. We are working on reducing the adverse impact
on the environment produced by these activities.

Impact on the environment by the six production base works
Emissions into
the atmosphere

INPUT
Raw materials
CopperEnergyOUTPUT(*1)

Water
Chemical
substances(*2)

186,000 t

CO2

212,000 t−CO

NOx

126 t

SOx

12 t

Soot

11 t

124,000 kl

Wastewater

17 million t

Waste
Industrial waste(*3)
Recycled materials

1,516 t2

15.8 million t

2,119 t15,851 t

Chemical substances(*2)(*1)Amount of electric power, fuel oil and fuel gas used(*2)PRTR targeted substances(*3)Outsourced industrial waste disposal, excluding recycled materials

Emitted volume

188 tTransferred volume

295 t

Impact on the environment by non-production bases
Furukawa Electric has grasped the impact on the environment caused by the non-production bases of its Head
Office and three Branch Offices.

Amount of electric power

1,070,651 kWh

Amount of water used

273 m

3

Amount of paper used
Photocopier paper

28,836 kg

Newspaper

4,044 kgThe non-production bases of our Head Officeand Branch Offices are promoting power savings
and resource savings. As power saving measures, lights in rooms such as unused conference rooms are turned off and air conditioning
units are set at an appropriate temperature. As
resource saving measures, we promote the sorting of waste and the reuse of items such as photocopier paper and files, but due to the heightening of operations this year, the amount of paper
used has increased from the previous year.

Environmental PerformanceZero-Emission Activities
The Furukawa Electric Group has started its activities to reduce outsourced industrial waste disposal from1993, and has promoted zero-emission activities of waste since 2001. At the Furukawa Electric Group, zeroemission activities are defined as “activities to reduce the industrial waste commissioned to outsourced disposal that is transported from plants directly to landfill spots for final disposal.” We have promoted the recyclingof waste acid and sewage as well as the reuse of cleaning liquids.
●Performance in Fiscal 2005
Furukawa Electric We reduced outsourced industrial waste disposal by 77% compared to fiscal 2000,
attaining the fiscal target of a 50% reduction. In addition, we reduced the volume of direct land disposal by
94% compared to fiscal 2000, substantially exceeding
the fiscal target of a 60% reduction.
Affiliated Companies We reduced outsourced industrial waste disposal by 52% compared to fiscal 2000,
attaining the fiscal target of a 30% reduction. In addition, we reduced the volume of direct land disposal by
52% compared to fiscal 2000, attaining the fiscal targetof a 50% reduction.

Outsourced Disposal of Industrial Waste

Direct Landfill Disposal(tons)(tons)

8000

30000

Other affiliated companies
Furukawa-Sky

25000
20000

5000

7592

15000

7959

8452

6840

10000

5494

5000

9131

0

4934

2001

5974

6018

2002

2003

3243

3816
2004

4879

2000

3689

1000

2119
2005 (Fiscal year)

0

Furukawa Electric

1872
2543

3000

5777

Furukawa-Sky

1639

4000

5220

8274

2000

5551

Other affiliated companies

1442

6000

Furukawa Electric

9334

7000

2002
2567

3022

2000

2974
2001

1889

1657

1812

1634

2002

2003

2232

1481

504
2004

2005 (Fiscal year)

750 176

Activities of QC Circle
At the production sites, we have made environmental efforts as one of our objectives
through our QC Circle activities. The circle atthe Mie Optical Fiber Plant has undertaken toincrease the percentage of bobbin reuse andhave seen a positive effect. In the past, bobbins have been discarded, and they pinpointed
the cause to develop appropriate measures. In

uncovering the cause, they utilized the “ Repetitive why analytical Method,” and all of themembers of the circle put their heads together.
As a result of their efforts, the percentage ofreuse increased to approximately 80% fromapproximately 20%. This effort was awarded
the gold prize at the company-wide QC Circle
presentation.

Reducing Waste Disposal Costs
As part of the Furukawa Survival Plan, we
consider it crucial that environmental preservation activities directly contribute to management, and we have taken the reduction ofwaste disposal costs as an activity target. In
fiscal 2001, there was an expenditure of over
300 million yen for landfill and intermediate disposal. While decreasing the volume ofwaste itself by promoting reuse and eliminating wastefulness on the line, we emphasized

Waste Disposal Costs(Fiscal year)

50 Income

43

0
-75

-50 Expenditure
-100
-150

-252

-200

-187

-238

the thorough sorting of waste to create value,
making it possible to sell it for value. We saw a
profit of 43 million yen due in part to the influence of the heightened price of scrap copper in
addition to these effects.

-353

-250
-300
-350
-400

million yen

Reducing the Percentage of Final Disposal
At the Chiba Works, we have undertaken afive-year plan from fiscal 2002 with the targetof “achieving zero-emission by reducing landfill
waste.” Zero-emission is defined as the state
where “the percentage of waste for final disposal (final disposal percentage) to the total

waste volume is less than 1%.” We have thoroughly implemented simple and steady measures such as promoting the through management of waste sorting, promoting the creationof value, reducing the amount of office paper(going paperless, using backing paper) and

campaigns to encourage employees to takehome their personal garbage. As a result, thefinal disposal percentage dropped to 0.2%, andthe target was achieved one year ahead of theoriginal schedule.

Efforts to Prevent Global Warming
The Furukawa Electric Group has been taking part in energy conservation activities for some time in order toprevent global warming. At our plants, we have been reevaluating lighting, installing energy conservation equipment and switching fuels. We have also been turning off unnecessary lighting and reevaluating the temperature
settings for our air conditioning and heating systems in our offices.
●Performance in Fiscal 2005

Emission of Greenhouse Gases(10,000 tons-CO2)

Furukawa Electric Emissions of greenhouse gases
were reduced by 22% compared to fiscal 2000,
attaining the target of a 19% reduction.

120
100

Other affiliated companies

20.3

80

Affiliated Companies Emissions of greenhousegases were increased by 2% compared to fiscal
2000, failing to attain the target of a 5% reduction.

60

54.9

Furukawa-Sky

Furukawa Electric

19.4

22.0

22.8

23.0

24.3

51.7

53.9

54.3

52.2

52.2

40
20
0

27.3

25.4

23.3

22.9

22.4

21.2

2000

2001

2002

2003

2004

2005 (Fiscal year)

Reducing the Amount of Heavy Oil Used
Furukawa Nikko Power Generation Inc., oneof our consolidated companies, uses hydraulicpower to generate electricity, supplying it to the
Nikko Works. Furukawa Nikko Power Generation was handed over from Furukawa Co., Ltd.
in September 2003. Prior to the handover, the
Nikko Works were supplied with electricity fromthis electric power plant, but they were also using electricity purchased from Tokyo ElectricPower Company and diesel generators within
the works. On the occasion of the handoverin 2003, the mode of electricity being used
was reviewed, and it was decided that externalsources of electricity would be used during periods of water shortage; diesel generators would
be used in emergency situations; and only theelectricity from the hydraulic power of Furukawa Nikko Power Generation would be used under normal circumstances. As diesel generators were discontinued, the heavy oil necessary
to operate them were no longer used, and theresulting reduction in CO2 emissions amounted

to a reduction of 16,000 tons per year. Further,
we also began supplying electricity to Furukawa-Sky’s Nikko plant, which has not been supplied with this electricity prior to the handover,
newly laying down power lines.

ide than LPG when it is burned. If it is possible
to get a supply of gas through pipes from Tokyo Gas Co., Ltd., it would be possible to safely
change the fuel with only a slight investment,
and we considered switching to city gas. We
implemented the switching as city gas pipes
had been set up close to the works and it was
not necessary to make any major renovationsin the production facilities. As a result, there

has been a 448 ton reduction in carbon dioxide
per year. In addition, we have seen benefits
for managerial aspects, as there is no longer
any need for storage tanks or vaporizers, there
are no transfers from lorries, and we have beenable to decrease the risk of leakage when thevalves are not operating well.

tempted to reduce CO2 and NOx emissions fromvehicles by increasing the use of mixed loads
and large vehicles and reducing the number ofvehicles used.
With the revision of the Law Concerning the
Rational Use of Energy, new responsibilities
have been included for shippers. In preparation for the law taking effect from April 2006,
we made preparations to get a grasp on our ton

kilo data including our affiliated companies. At
Furukawa Electric and Furukawa-Sky, we areproceeding with the task of computing the necessary volume of energy use, as they are designated as specified shippers with a transportvolume of over 30 million ton kilos a year.

* V alues calculated by multiplying the total amount ofelectricity including this amount due to hydraulic power
generation by the CO 2 conversion factor are used as indicators of the volume of greenhouse gas emissions.

Switching to City Gas
At the Hiratsuka Works, we had traditionallybeen using liquefied petroleum gas (LPG). LPG
was supplied by a tank lorry and then sent to
the production facilities from a storage tank set
up within the works. This required consideration for safety and environmental issues under
the regulations of the High Pressure Gas Safety
Law. Meanwhile, city gas (liquefied natural gas)
has the benefit of producing less carbon diox-

Efforts in Logistics
The Furukawa Electric Group has worked toreduce the impact on the environment due tologistics-related matters, reducing the amountof packaging material, reusing and recycling
cable drums and using joint transport.
Following upon fiscal 2004, we have continued to conduct activities to reduce the emissions coefficients per transported product ton
kilo for automobile NOx emissions. We have at-10

Environmental Performance

Chemical Substance Management
At the Furukawa Electric Group, we are aiming to eliminate the use of three substances among chlorinatedorganic compounds, tetrachloroethylene, trichloroethylene and dichloromethane. As Furukawa Electric hasachieved excellent results, the Company is also working on reducing emissions of three substances (Furukawa
Electric’s specific chemical substances) that are volatile organic compounds: toluene, xylene, and ethylbenzene.
●Performance in Fiscal 2005
Furukawa Electric Emissions of Furukawa Electric’s
specific chemical substances were reduced by 47%
compared to fiscal 2000, slightly less than the fiscal
target of a 54% reduction.
Affiliated Companies Emissions of chlorinated organic
compounds were reduced by 54% compared to fiscal
2000, achieving the fiscal target of a 50% reduction.
At the start of fiscal 2005, eight companies wereusing these substances, but two companies eliminated their use of these substances during the year,
presently leaving six companies.

(tons)

400

Emission of Furukawa Electric’s
Specific Chemical Substances

Emission of Chlorinated Organic Compounds(tons)

400

366

Other affiliated companies
Furukawa-Sky

296

300

300

228
200

206

198

193

Furukawa Electric

231
201

200

114
100

0

100

2000

2001

2002

2003

2004

2005 (Fiscal year)

0

73

94
62

67

48

44

2000

2001

34
2002

63
2003

97

78
3

48

1

2004

44
2005 (Fiscal year)

Appropriate Management of Chemical Substances
For chemical substances used in the production process, we manage them according
to their toxicity, checking the characteristicsof the substances and applicable laws on the
MSDS (Material Safety Data Sheet). We also
get a grasp on the amount of these substancesthat is used and report these amounts in accordance with the PRTR Law *.
* L aw Concerning Reporting, etc. of Releases to theEnvironment of Specific Chemical Substances andPromoting Improvements in Their Management

Release and Transfer Volume of PRTR Substances
Substance
No.

Name of substance

Unit: tons
Handling volume Emitted volume

Transferred
volumeNeutralized
volumeAntimony and its compounds
66.4
0.0
4.8
0.0
25
Ethylbenzene
8.6
0.0
0.0
8.6
40
Xylene
22.5
5.7
2.5
14.3
63
Silver and its water-soluble compounds
1.2
0.0
0.0
0.0
64
Cresol
324.6
0.2
0.2
323.8
67
Inorganic cyanide compounds
19.9
0.0
0.0
19.9
108
N, N-dimethylformamide
86.8
0.6
0.2
85.3
172
Decabromodiphenyl ether
199.6
0.0
14.4
0.0
197
Copper salts (water-soluble)
13.0
0.0
0.3
0.0
207
Toluene
538.4
181.1
269.3
85.6
227
Lead and its compounds
14.2
0.0
0.0
0.0
230
Nickel
3.2
0.0
0.0
0.0
23 1
Nickel compounds
8.7
0.0
0.1
5.2
232
Hydrazine
5.2
0.0
0.0
5.2
253
Phenol
196.7
0.0
0.1
196.1
266
bis (2-ethylhexyl) phthalate
3.0
0.1
0.1
0.0
272
Hydrogen fluoride and its water-soluble salts
2.4
0.0
2.1
0.1
283
*Targeting substances with a handling volume of 1 ton or more at the Furukawa Electric works (0.5 tons or more for specificfirst category chemical substances)

Responding to Regulations Concerning the Emissions of Volatile Organic Compounds
Furukawa Electric has conducted activities
to reduce the volume of emissions of Furukawa Electric’s specific chemical substances
since fiscal 2003. Toluene accounts for 95%
of these targeted substances, and is used as a
product cleanser and in floor paints. As reduction measures, we have implemented a reviewof the content of cleaning agents, improved ourwashing tanks, and switched to using watersoluble paints. In addition, improvements inquality have reduced the number of times that
repeated cleansing has been needed. Mean-

while, Air Pollution Control Law was revised inAugust 2005, and new regulations concerning all volatile organic compounds (hereinafter VOC) were incorporated. These were put
into effect from April 2006. Furukawa Electric does not currently have any facilities thatfall under these legal regulations, but we willconduct reduction activities in accordance withthe self-imposed regulations of The JapaneseElectric Wire & Cable Makers’ Association and
the Japan Copper and Brass Association withwhich we are affiliated. When we surveyed the11

use of VOC, we found that toluene emissions,which we have traditionally set as the target ofour efforts, account for 59% of the total VOC
emissions, and emissions of isopropyl alcohol,
which were not targeted, account for a large
percentage at 33%. As these two substances
combined account for 92%, we drew up a plan
to conduct measures particularly centered on
the processes that handle these two substances and incorporated it into our mid-term targets(please refer to page 6 for target values).

Creating Environmentally Friendly Products
Aiming for the creation of environmentally friendly products, Furukawa Electric is carrying out the green
procurement of purchases, green product management, and the development of environmentally friendly products.
Green Product Management Activities
With the strengthening of environmental laws
and regulations regarding toxic and harmful
substances, customers not only are demandinga guarantee that we do not use regulated harmful substances or use products that containthem, but also are strongly requesting that wewould establish a control system to oversee thechemical substances included in products aswell as the presentation of evidence based on
analyzed data. Furukawa Electric established
the Committee for Green Product Management
in February 2005, conducting the cross development of customer requests to each businessdivision, and furthering the sharing of information across divisions. Each committee member
took on a central role in the effort to construct amanagement system.
In fiscal 2005, we studied the content ofregulated harmful substances for all Furukawa
Electric brand products, and created a “Registration Master for all Green Products andPlants.” Each business division developed an
execution plan for constructing a management
system, and it was decided that these would
move forward in phases starting with plant
divisions that produce high priority regulated
products.
At plant divisions, the mechanisms of theexisting ISO9001 and ISO14001 were utilized
and improvements were made such as the introduction of tests using analytical instruments
to ensure that regulated harmful substanceswere not mixed in or distributed at the respective stages from the receiving of raw materials and parts, assembly and production, andproduct shipment. We also received requests

from our main customers to check the control system via document examination, and we
conducted an internal audit of target plants forthree business divisions and two companies.
For the other business divisions, we conductedindividual informative sessions and interviews
to increase the awareness of the importance ofcontrolling the chemical substances included in
products and the thorough application of company-wide targets.
In the future, we will continue to fully respond to customer audits and conduct internal
audits of Furukawa Electric’s individual business divisions. We will also continuously conduct information sessions, instruction, and audits for constructing a management system inorder to develop it for our affiliated companies
and business clients.

Activities of the Automotive Products Division
The Automotive Products Division of theElectronics and Automotive Systems Company
is continuously working on establishing an environmental impact substance management
system in response to requests from automotive manufacturers.
In order to meet customer needs that are
increasing yearly, we must respond promptlywith increased accuracy, and we have been
undertaking the development of an “Environmental Management System” with the objective of making operations more efficient within
the company.

We have created a mechanism to conduct
environmental assessments at the respective
stages of vehicle development from development, design, to mass production. In addition,
we have collected the material data and analytical data for the products of our respective
suppliers as well as that used in our production
process, and we havestrengthened our activities to eliminate or
reduce the environmental impact subMeasurement using fluores- stances according tocent X-ray analysis

requests from automotive manufacturers.
In order to verify the absence of lead, mercury, cadmium, and hexavalent chromium ascommissioned in EU’s Directive on End of Life
Vehicles, we have installed analytical instruments in all of our plants and have started toanalyze the products and materials for on-going and under-development products.

fall under green products, we will expand ourpurchasing system to our affiliated companies.
Our company’s green products are products
recommended by the Green Purchasing Net-

work and products with environmental labels.
For products and materials (purchased products) involved with the manufacturing process,we are conducting surveys on the state of environmental management of our suppliers andwhether their products contain environmentally
regulated substances. We are also checking for the level of environmentally regulated
substances in products using MSDS, ingredient charts, and in certain cases using analyzed
data.

Environmental management system screen

Green Procurement
23 items were selected from office supplies and materials for general use (general
purpose items), and we decided to purchasegreen products for the subject items. After
strict evaluation by the purchasing division, we
registered only green products into our company purchasing system. It became possible forpurchase originators to easily purchase green
products, and by the end of fiscal 2005, the rateof procurement was 100%. In the future, in addition to increasing the number of items that

Examples of the environmental labels used

12

Environmental Performance

Environmentally Friendly Products
At Furukawa Electric, we call products thatare harmless at the respective stages fromproduction, use, distribution, and disposal andthat have a minimal impact on the environment “environmentally friendly products.” We
use our own unique environmental label forthese products. Further, we have designatedthe percentage of sales from environmentallyfriendly products out of the total sales from new
products as the environmentally friendly product percentage. The percentage for fiscal 2005
was 69%.

For specifics on environmentally friendly products, pleaserefer to the following page on the Furukawa Electric website.

http://www.furukawa.co.jp/enviro/pro/index.htm

Halogen-free electric wires with major increases
in strength due to new cross-linking technology
A new type of halogen-free electric wire
The Eco-Ace Plus Series
We have developed a new cross-linking
technique in order to meet the customer needs
and demands for a major increase in strength
while still maintaining a high level of flame retardant and processing capabilities. With thiscross-linking technique, we have created aneven stronger bond than before between thebase resin and the metal hydrate flame retardant material. While continuing to maintain theflexibility and flame retardant capabilities, wewere able to give it a high power that was notpossible with prior technology.
In terms of the pressure welding and crimping to the connector when it is used as a wire
harness, we have confirmed that it has an equal
finish and is on par with PVC electric wires,
which have superior processing capabilities.
Characteristics●They are highly resistant to external damage.
●They are as easy to process as PVC electric
wires.

Developing Environmentally Friendly Products
Eco-design is a design that minimizes the environmental impact of products at all stages, fromthe raw materials to production, use, and final
disposal. Specifically, it is conducted according
to the concept and methods of LCA (Life Cycle
Assessment).
In addition to designing materials that satisfy
the various regulations that have recently been
spreading (like the RoHS Directive), we are promoting development of environmentally friendly
products with the following points.
●F or electric wires and cables, we are implementing designs that have a minimal environmental impact while reflecting customer
demands. Specifically, we are creating themto meet various international regulations anddesigning them so that they are functionallyeasy to recycle and reuse. By designing electric wires and cables collected from the market
so that they can be disassembled, sorted, andreused with the least impact on the environment, we are contributing to the evaluation at
the final stage of LCA.

Voices of the development staff
Yusuke Kuwasaki
Eco-Products Department,
Ecology & Energy Laboratory,
R&D Division

Since 2000, environmentally friendly products
have been the focus of much attention, and mostof these are related to energy conservation andare mainly products where the benefits are actually returned to the consumers. When I actu-●T hey do not contain the six substances
specified in RoHS Directive, halogen substances, antimony, nor phosphorous.
●T hey meet UL standards and CSA standards.
Recycled bobbins using optical fiber cables scraps
Product characteristics
Recycled bobbins contain over 40% discarded polyethylene collected from removed optical fiber cables for environmental purposes.
Normal plastic bobbins use new polypropylenematerials, but recycled bobbins use discarded
polyethylene to effectively utilize waste materials.
13●T he cycle of collection and effective use for
conductors (copper, aluminum) has alreadybeen established. For the accompanying resinmaterials, however, after first considering theiruse for their former purposes, if these areinappropriate, we will develop the optimal purpose and application and attempt to put themto effective use.
●In the future, we will seek to develop materials derived from plants to replace materials
derived from petroleum that is expected to be
exhausted in the future. We will also seek tointegrate our unique technology that we havedeveloped and accumulated until now, contributing in a real sense to reducing the impact on
the earth’s environment.
●We will promote the development of products
and technologies that meet the requirements
for the suppression of gas emissions that leadto global warming based on the Kyoto Protocol
as a top priority in all areas. We have actively
cooperated with our works (plants) and affiliated companies in their energy conservation,
rainwater use, and heat island measures.
After establishing the measures on our ground,
we will proceed to make proposals to our customers.
ally think from the perspective of a consumer,
the reality is that I would make a purchase based
more on price than the environment.
In the future, in addition to promoting thedevelopment of environmentally friendly products
where consumers can receive the benefits, I
would like to devote my efforts to create a society where products that are made with the environment in mind can be appreciated as benefits
in and of themselves.

Further, in order to make it possible to reuse
them, we have created them with the strength
to withstand repeated use and a light weight(half the mass of wood drums) to make transport easier.
Bobbins that can no longer be used due todamage can be crushed and reused as recycled bobbins.

Recycled bobbin

Recycled duct guard
Traditionally, optical fiber cables have been
disposed of as landfill waste after removal, but
we discussed recycling discarded optical fiber
cables jointly with Nippon Telegraph and Telephone East Corporation and Nippon Telegraphand Telephone West Corporation, making recycled duct guards into a product.
Generally, the recycling of optical fiber cables has not been promoted because of theircompound nature with fibers, resin, and metals, making sorting difficult and expensive.
We were able to simplify the sorting process,establishing a production method where raw
materials with a variety of substances mixed
in could still be molded, making them possible
to recycle.
The recycled duct guard protects ducts fromthe weight of vehicles at the shallowest part ofthe buried ducts that contain cables. Conventionally, the ducts were guarded by laying concrete on the ducts. Yet it required a great dealof time to lay the concrete and age it, making
the construction period long and causing problems such as traffic jams from being unable tofree the roads. The recycled duct guard is a
product that replaces this concrete guard, andas it can be guarded simply by covering theducts with the guard, the construction period isgreatly reduced as is the total cost.

Example of the construction of a recycled duct guard

Micro-cellular foamed light reflecting
sheet “MCPET”
MCPET is a foam that includes numerous
superfine bubbles of less than 10μm, and thisstructure makes it a plastic light reflecting
sheet with an extremely high reflection rate forvisible light of over 99%.
Making use of this high reflection rate, wehave realized energy conserving effects suchas increasing the average lighting intensity ofelectric signboards (increased by approximately
1.6 times), or maintaining the lighting intensity
while decreasing the number of lamps. MCPET

also has the property of highly diffusive reflectance and can contribute to thin and sleek lighting and to the improvement of uneven lighting
in signs. Meanwhile, it also has the propertyof small wavelength dependence (it can recreate primary colors) and is being used in disEnlarged figure of a crosssection of the reflecting
sheetHigh reflection rateof over 99%

play showcases and optical displays. In recent
years, it is also being used as a reflecting sheet
for the backlight of LCD television sets. Thisis a product that is expected to contribute tomeeting the demands for further energy conservation in the areas of lighting and signs.

Front panel(liquid crystal panels, signboards)
Cold cathode tube lightsource, fluorescent light
MCPET reflecting sheet

No MCPET

With MCPET

Recycling Activities
The Furukawa Electric Group promotes therecycling of waste material by establishing a collection network and recycling system. Throughthe collection networks at nine bases throughout Japan, we collect removed electric wires
and cables, recycling 100% of the conducting
materials like copper and aluminum. Insulationmaterials are also recycled as recycled plastic
and fuel. In addition, used plastic waste materials and plant loss materials are recycled on therecycling line, and the resulting recycled pellets
are put to a wide variety of uses, from being recycled as products to being used as materials
for injection molding and extrusion molding.

For specifics on our recycling technology,
please refer to the following page on the Furukawa Electric website.
http://www.furukawa.co.jp/enviro/
tech/index.htm

Synthetic resin trough(GreenTrough)●Recycled products

Recycled electric wires(Telecommunication cables)

Recycled electric wires(Power cables)
Cable duct for underground laying (KOTA-KUN)

14

Environmental Performance

Environmental Risk Management
Countermeasures Regarding Pollution of Soil and Groundwater
The Furukawa Electric Group recognizes
that the pollution of soil and groundwater is an
important issue in terms of safety and healthfor local residents and employees, and we areworking to grasp the state of pollution. This is
not something that is required of us throughlegal regulations, but measures that we haveundertaken voluntarily.
If the soil or groundwater is found to be polluted during investigations, we take a prompt
action. We also report to the adiministrative
organs about these polluted conditions andmeasures to be adopted to clean the environment, and disclose this information to the lo-

cal residents, related institutions and media asnecessary.
We are also conducting pollution risk avoidance activities at the works and business bases
to implement appropriate cleaning measures
so that soil pollution will not negatively affectsurrounding areas. In fiscal 2005, we completed the harmful substance history review at theworks and affiliated companies. Each of theworks completed the risk assessment, and a
portion of the works began investigations into
the state of soil pollution based on this assessment.

Key Points of the Pollution Risk
Avoidance Activities■P rohibit the laying underground of new reservoir facilities and pipes for harmful substances.
■Inspect for the leakage of harmful substances, prevent leakages, and switch to substitute substances.
■Study the history of use of harmful substances, the records, and continue storage
management.

Situation and Countermeasures Regarding Pollution of Soil and Groundwater
Situation of Furukawa Electric
LocationContaminantNikko-shi, Tochigi Prefecture(Company owned areas in Uwanoshiro, Arasawa
Uodome, Kiyotaki 4-chome, and the grounds ofthe former Mizusawa skating rink)

Selenium, arsenic, lead, cadmium,fluorine

Name of Works

Nikko Works*

Cleansing method
Cleansing and recycling into cement materials, after the
excavating and removal of contaminated soil

We are also planning to conduct pollution investigations and cleansing measures in seven other company owned areas, expecting to complete them infiscal 2006.

Former Kambara Works

Lead, fluorine, arsenic,
tetrachloroethylene

Shizuoka-shi, Shizuoka Prefecture

Cleansing and recycling into cement materials, after the
excavating and removal of contaminated soil

Situation of Affiliated Companies
Company Name

LocationContaminant

Cleansing method

Totoku Electric

Nagawa-machi, Chiisagata-gun, Nagano Prefecture (Former Nagato Works)

PCB, dioxine

Storage and control after the excavating and removal ofcontaminated soil

Former Tochigi Metal

Nikko-shi, Tochigi Prefecture

Hexavalent chromium, lead,tetrachloroethylene

Excavating and removal of contaminated soil, replacingwith clean soil, vapor suction, and cleaning of original sitewith a chemical treatment

Former Furukawa Altec

Hiratsuka-shi, Kanagawa Prefecture

Fluorine

Cleansing and recycling into cement materials, after the
excavating and removal of contaminated soil

Kyowa Electric Wire*

Neyagawa-shi, Osaka Prefecture(Former Osaka Works)

Lead, cyanogens, boron, fluorine,
dichloromethane

Pumping and cleansing of groundwater

Furukawa Color
Aluminum*

Utsunomiya-shi, Tochigi Prefecture(Head Works)

Hexavalent chromium, fluorine

Pumping and cleansing of groundwater

Furukawa-Sky*

Oyama-shi, Tochigi Prefecture(Oyama Plant)

Tetrachloroethylene

Pumping and cleansing of groundwater

The * indicates a continuation from fiscal 2004

15

PCB Management

Compliance with Laws and Regulations and Other Items to be Observed

The quantity of PCB instruments is recognized on every works and appropriate storage
management is conducted, and with the startof processing operations by Japan Environmental Safety Corporation, we will successively commission processing.

Quantity of PCB Stored

We are regularly confirming other items to beobserved, and making efforts for compliance bypatrolling our sites to check the implementation
status.
We keep track of revisions of laws and regulations, by closely following the latest informationin the Official Gazette.

Unit: item

Name of Works(Already processed)(Unprocessed)

Chiba Works
Nikko Works
Hiratsuka Works
Mie Works
Osaka Works
Yokohama Works
Total

In storage

In use

Total

86
39
182
40
53
55
9
464

0
0
140
3
73
11
0
227

86
39
322
43
126
66
9
691

Responding to the Asbestos Problem
The Furukawa Electric Group has establishedan “Asbestos Problem Task Force” with the CAO
as its director to respond in this problem. We
have investigated the health problems, its actual use in products, and the state of buildings
and facilities owned by our company.
●Actual Use in Products
We investigated the history of asbestos use
including the products of affiliated companies.
Currently, products containing asbestos are
not manufactured nor imported, but there areproducts that were manufactured and sold forindustrial use in the past. Targeted products
include electric wires for ships and fire prevention products for use in construction to installelectric wires for telecommunication and elec-

tricity. We are disclosing information on theseissues through industry associations like The
Japanese Electric Wire & Cable Makers’ Association and Cable Firestop systems Associationof Japan, and we are also responding to customers by providing information and responding to inquiries.
●Actual Use in Buildings and Plant Facilities
1.Company housing, company-owned buildings
and plant buildings
 We did not discover any signs of asbestos
use in company housing, but there was spraymaterial in a portion of the company-ownedbuildings and plants. After investigating thestate of diffusion of the asbestos, we confirmed that it was stable. In expectation of

the risk of future scattering and diffusion,
we decided to remove it. We are conducting
these removal procedures in succession, andexpect to complete them during fiscal 2006.
2.Facilities and equipment
 Some of them contained asbestos, and for
those where there were substitutes, we exchanged them. In cases where the asbestos
was embedded in insulating materials, we
confirmed that it had not scattered. For these,
we will switch them with materials that do
not contain asbestos in the future. Until then,we will oversee the safety conditions.
*For health problems, please refer to the hygiene column
on page 24.

List of Products Containing Asbestos
Classification by Use(As of August 31, 2006)

Product Name

Used regio

Production Period

Type of Asbestos Used

State of Countermeasures

Asbestos sheath

MI cable sheath1969 to 1989

Chrysotile

Use glass wool after 1989

Pipe flange packing

Water cooling equipment pipe joint

1977 to 1997

Chrysotile

Use non-asbestos product after 1997

Braided asbestos thread

Cabtire cable sheathing

1977 to 1987

Chrysotile

Stop production in 1987

Asbestos

Heat resistant layer of the rubber spacer for wa- 1976 to 1983
ter cooled cables

Chrysotile

Stop production in 1983

Asbestos tape

Assembly parts of the FRP spacer for water cooled 1976 to 1995
cablesChrysotile

Stop production in 1995

Epoxy putty

1980 to 2004

Chrysotile

Stop production in 2004

Waterproofed parts of the splice

to 1988

Chrysotile

Changed to non-asbestos product after 1988

Waterproofed parts

to 1988

Chrysotile

Changed to non-asbestos product after 1988

22/33kV air terminal box

Waterproofed parts of the joint

to 1988

Chrysotile

Changed to non-asbestos product after 1988

Termination

Terminal parts (epoxy putty)

to 2004

Changed from chrysotile to Changed to non-asbestos product after 2004
tremolite in 2000

Danseal P

1978 to 1984

Chrysotile

Non-asbestos after 1984

Keikalite S, SG

1976 to 1985

AmositeNon-asbestos after 1985

Dannekka

1973 to 1982

Chrysotile

Non-asbestos after 1982

Keikalite H

1976 to 1987

AmositeNon-asbestos after 1987

1983 to 1989

Chrysotile

Stop production in 1989

Electric wires, cables, 22/33 kV prefabricated joint
and accessories
Pipe line waterproofing device

Automobile related Wire harness for engines
products
Asbestos sheet

Wound on the harness

16

Environmental Performance

Environmental Accounting
We compiled “environmental conservation cost,” “economic benefit associated with environmental conservation activities” and “environmental conservation benefit (material benefit)” to quantitatively grasp the resultsof environmental costs and benefits. This data is collected in conformity with the environmental accounting
guidelines published by the Ministry of the Environment. For affiliated companies, the data is collected for the
21 companies listed on page 2.
Environmental conservation costs for Furukawa Electric were 5.1 billion yen for expenses and 400 million yen
for capital expenditure. Expenses decreased by 200 million yen compared to the previous year (fiscal 2004).
The financial benefit amounted to 320 million yen.
Data of 10 more affiliated companies were collected. Environmental conservation costs were 3.3 billion yen
for expenses and 1 billion yen for expenditure. The financial benefit increased by 1.5 billion yen due to an increase in energy consumption accompanying heightened operations.
Environmental Conservation Cost

Unit: million yen
Furukawa Electric

Category

Key activity and the outcome

AmountAffiliated companies

Compared to the previous year

Amount1,401 

−205

1,980

Retrieval of containers, drums, etc.

511 

103

192 

（3）Administration cost

Audit of environmental management system, monitoring of environmental impact, etc.

403

−67 

276

（4）Research and development cost

Development of environmentally friendly products, research in substitutes for toxic substances, etc.

1,102 

−32 713（5）Social activity cost

Tree planting, cleaning in local communities, donations, etc.

89

85

22 

（6）Environmental remediation cost

Assessment for environmental impact, cleanup of polluted soil, etc.

1,619

−65

149

Total
5,125
For affiliated companies, a comparison with the previous year has not been calculated as the target companies differ from the previous fiscal year.

−180

3,331 

（1）Business area cost

Pollution prevention such as air pollution, energy conservation, waste disposal, etc.

（2）Upstream / downstream cost

Environmental Conservation Benefit

Economic Benefit Associated with Environmental Conservation Activities Unit: million yen

Environmental impact emissions

Unit

Industrial waste disposal amount *ｔ

Energy consumed(crude oil basis)

Furukawa Electric

Affiliatedcompanies

Reduction

Reduction

1,597 

1,000 kl
1,000ｔWater consumed

−300

266

1 

−2 

CO2 emission

1,000 t-CO2

11 

−10

SOx emission

ｔ

0

−21 

NOx emission

ｔ

33

9

ｔ

Soot emission

−1 

396

61

−21 

Reduction in energy costs

30−1,882 Reduction in water purchase costs−2−4

Investment and Research Cost

Unit: million yen
Furukawa Electric

Affiliatedcompanies

AmountAmountInvestment and Research Cost

424

979

Total investment cost

8,826

17,699Total research cost

9,480

5,612 

Environment-related investment−1 Environmental Conservation Cost

Economic Benefit(100 million yen)(100 million yen)

60

12
49.5

50

53.0

51.3

43.6
37.2

11.0

Environmental remediation cost

8

Administration cost

30

Reduction in waste disposal costs
Reduction in energy costs

Research and development cost

36.8

Revenues gained by recycling

10

Social activity cost

Upstream / downstream cost

Reduction in water purchase costs
Amount of revenues and expenses

6

Business area cost

4.0

4

20

2

10
0

317 
−1,511 * – (minus) represents an increase.

* – (minus) represents an increase.

* Amount excluding recycled industrial waste

40

Amount228

Reduction in waste disposal costs

7 ｔ

AmountRevenues gained by recycling

Total
Emission of volatile organic chemicalcompounds

Affiliatedcompanies

Contents of Benefits

1,786

16

Furukawa Electric

4.1

2.6

2003

2004

3.2

1.2

0
2000

2001

2002

2003

2004

2005 (Fiscal year)

-2

17

2000

2001

2002

2005

(Fiscal year)

Environmental Preservation Performance Indicators
Of the works of Furukawa Electric, the data for air and water quality of four Works that are registered as specialized plants are reported below.
● Chiba Works
Atmospheric Indicators

Wastewater quality indicators

Item

Unit

Equipment

Legal Standards

Self-ImposedStandards

Average Value

Maximum
Value

Measurement Item

NOx

（ppm）

180

180

31

51

pH

Soot

（g/Nm3）

Melting
furnace
Melting
furnace

0.1

0.1

0.033

0.048

COD
SS
n-h (mineral oil)

Legal Standards

Self-Imposed Average Value
Standards

5.0～9.0

5.0～9.0

7.8（mg/l）

15

15

4.6

9.6

（mg/l）

20

20

3.9

10.9

（mg/l）

2

2

0.2

0.4

Legal Standards

Self-ImposedStandards

Average Value

Maximum
Value

Unit

Maximum
Value

8.3● Nikko Works
Wastewater quality indicators

Atmospheric Indicators
Item

NOx

SOx

Soot

Unit

（ppm）

（K value）（g/Nm3）Equipment

Legal Standards

Self-ImposedStandards

Average Value

Maximum
Value

Boiler

180

180

120

120

pH

5.8～8.6

6.0～8.5

7.1

7.6

Melting
furnaceDryerfurnace

200

200

39

39

BOD

（mg/l）

25

16

5.0

5.1

300

250

47

47

SS

（mg/l）

50

20

1.2

3.2

n-h (mineral oil)

（mg/l）

5

0.5

0.2

0.2

Legal Standards

Self-ImposedStandards

Average Value

Maximum
Value

7.8

Boiler

17.5

17.5

0.39

0.39

Melting
furnaceDryerfurnace

17.5

17.5

0.26

0.26

17.5

17.5

0.16

0.16

Measurement Item

Unit

Boiler

0.3

0.3

0.0

0.0

Melting
furnaceDryerfurnace

0.2

0.2

0.0

0.0

0.5

0.2

0.0

0.0

Equipment

Legal Standards

Self-ImposedStandards

Average Value

Maximum
Value

Measurement Item

Boiler

180

140

54

54

pH

5.8～8.6

6.5～8.5

7.6

Melting
furnace

180

140

17

17

BOD

（mg/l）

10

4

3.0

5.0

（mg/l）

25

6

1.5

2.1

（mg/l）

1

0.7

0.10

0.15

Legal Standards

Self-ImposedStandards

Average Value

Maximum
Value● Mie Works
Wastewater quality indicators

Atmospheric Indicators
Item

Unit

NOx

（ppm）

SOx

（Nm3/Hr）

Soot（g/Nm3）

Boiler

0.6

0.5

0.00

0.00

SS

Melting
furnace

41.6

33.3

0.13

0.13

n-h (mineral oil)

Boiler

0.3

0.24

0.005

0.005

Melting
furnace

0.3

0.24

0.004

0.004

Equipment

Legal Standards

Self-ImposedStandards

Average Value

Maximum
Value

Unit

● Osaka Works
Atmospheric Indicators
Item

NOx

SOx

Soot

Unit

（ppm）

（K value）（g/Nm3）

Wastewater quality indicators
Measurement Item

Unit

Boiler

150

120

2.0

2.0

pH

5.7～8.7

5.7～8.7

7.6

7.9

Melting
furnace
Heating
furnace

200

160

2.0

2.0

BOD

（mg/l）

300

10

5.0

9.0

4.0

SS

（mg/l）

300

50

11.0

25.0

Boiler

1.17 

1.17 

0.00

0.00

n-h (mineral oil)

（mg/l）

5

2

1.0

2.0

Melting
furnace
Heating
furnace

1.17 

1.17 

0.00

0.00

1.17 

1.17 

0.18

0.29

Boiler

0.10

0.08

0.00

0.00

Melting
furnace
Heating
furnace

0.20

0.16

0.00

0.00

0.25

0.20

0.00

0.00

170

144

3.0

18

Social Performance

Social and Regional Involvement
The Furukawa Electric Group is fulfilling its responsibility as a member of society through disaster relief support and exchanges with the local community.
Support and Cooperation●Cooperation with the Chiba Environmental
Restoration Fund
Chiba Prefecture has created a “Chiba Environmental Restoration Fund”*1 and aims tohave the best natural environment in Japan,
under the slogan of “Restore nature in our
hometown!” The Chiba Works of Furukawa
Electric asked for donations to this “Chiba
Environmental Restoration Fund” from all its

employees in the works. The 148,000 yen collected was given to the Chiba Prefectural Environment Foundation.
*1“Chiba Environmental Restoration Fund”
This fund was established in the Chiba Prefectural Environment Foundation to promote the “Chiba Environment
Restoration Plan” formulated in February 2002 by Chiba
Prefecture.

●Monetary Donations to Victims of Natural
Disasters
We contributed a donation of 1 million yen
towards the damage caused by “Katrina,” thehurricane that swept the southern US in August, and we contributed a donation of 200,000
yen towards the damage caused by the major
earthquake in northern Pakistan in October.

External Awards●Award from the Commissioner of the Fireand Disaster Management Agency
The self-defense fire brigade of the Osaka
Works has been awarded by the Commissionerof the Fire and Disaster Management Agency
for the merit of its safety efforts for fiscal 2005.
Since its launch in 1967, this fire brigade has
actively participated in disaster prevention
training sessions conducted by fire defense related organizations. Further, it has establisheda system for effectively utilizing water for fighting fires and utilizing fire fighting mobility withemergency support in mind, in order to be able
to respond when a fire or other disaster arises
in nearby works. It was awarded for its contributions to creating a safe local community andestablishing a voluntary safety system, seeking
to emphasize the cooperation system for local
neighborhood safety and increase consciousness of disaster prevention.

Certificate of Award from the Commissionerof the Fire and Disaster Management Agency●Recognition as a Quality Company in Ho
Chi Minh
Furukawa Automotive Parts (Vietnam) Inc.
(FAPV), an overseas affiliated company, wasrecognized by the Vietnamese government as aquality company. In addition to wire harnesses,
FAPV has constructed plants for making thematerials for wire harnesses such as electric
wires and parts, and is carrying out a continuous operation for wire harness production locally. It was recognized for the local contribution of its business and production in Vietnam.

The President of FAPV gives a speechas the representative of the company●Recognition by the Presidents of NTT Eastand West Corporations for the Environmental VA Proposal
Our success in realizing a recycling percentage of 100% (previously 67%) by conducting
material recycling of removed optical fiber
cables that had traditionally been disposed ofin landfills into recycled duct guards, and implementing the environmental VA proposal of“100% material recycling of removed opticalfiber cables” was highly evaluated, and we received a letter of appreciation from the presidents of both Nippon Telegraph and Telephone
East Corporation and Nippon Telegraph andTelephone West Corporation.

Receiving the award from the Executive Vice President of NTT
West Corporation

19●Award of Superconductor Science andTechnology
We were awarded the “9th Award of Superconductor Science and Technology ” by the Society of Non-Traditional Technology for our workon “the development of a 500m long high-temperature superconducting electric transmission
cable” conducted jointly with the Central Research Institute of Electric Power Industry andSuper-GM.
We revealed the numerous heat characteristics and mechanical characteristics during thecooling process, as well as the characteristics
of electric transmission, electrical insulationand heat insulation while operating throughthe public testing of our 500-m long high-temperature superconducting electric transmission
cable, the longest in the world. Further, by incorporating various structures such as modelsof actual lines for the test line, we were able
to discover unexpected phenomena and show
methods for resolving them. These accomplishments are major breakthroughs towards
practical use, and were evaluated as prominentaccomplishments in the superconductor field.

Award of Superconductor Science and Technology

Cleaning in Local Communities
The Furukawa Electric Group carries out
cleaning activities in local communities, including the areas surrounding its respective business bases, and also coastal areas and rivers.
In the headquarter district, we also participate in community activities in Otemachi andMarunouchi, and we collect garbage on thestreets once a month as our local environment
cleanliness activity.

Cleaning activities at respective locations and companies

Communicating with the Community●The Hiratsuka Works participated in an “Environmental Fair” hosted by the Hiratsuka City,
which aims to be an Eco City, and the Forum forEnvironmental Symbiosis Corporations*2, andintroduced its environmental activities to themembers of the local community.

●The Nikko Works invited local elementary andmiddle school students to a tour of the plant.
We received posters and letters of thanks. We
are also conducting plant tours for elementaryand middle school students at other works andaffiliated companies.

●We actively participate in local events ofrespective regions, communicating with members of the local communities.

*2“Forum for Environmental Symbiosis Corporations”

This forum was formed by an appeal of Economic Department, Industry and Labor Administration Section of Hiratsuka
city in 2000, consisting of corporations interested in Hiratsuka. The main activities include exchanging information
about the environment, conducting tours of environment-related facilities and hosting an Environmental Fair.

Exhibiting at the Hiratsuka Environmental Fair

A “thank you” note fromjunior-high school students

The Yawata Seaside Festival

Tour of the Nippon Foil Mfg. Nogi plant by
elementary school students

Nikko Waraku Odori Dance0Social Performance

Environmental Performance of the Works
Chiba WorksManager of Chiba Works

Toru Kumabe

Since beginning its operations in
Ichihara City at the center of the Keiyo
seaside industrial zone in 19 61 as
Furukawa Electric’s main plant, the Chiba
Works has been responsible for the production of electric wire materials andtelecommunication and power cables, aswell as the development and production ofhigh-capacity telecommunications equipment. At this works, all employees participate in efforts to treat the reduction ofenvironmental impact and environmental
conservation rooted in local communities
as top priority issues. In particular, weNikko WorksManager of Nikko Works

HiroyukiKamishiro

It is my hope that many of our employees empathized with the phrase “There
are no borders in the environment,” part of
the narration of a video for common environmental education where environmental issues that are arising throughout theworld were raised. There are no borders
in the environment, in water, land, or in
air. I have placed my hope that each andevery person would realize that it is thesame both inside and outside the fence
and act accordingly in the words “onephrase environmental declaration,” writing
them on my own environmental policy card

Hiratsuka WorksManager of Hiratsuka Works

Toshio Kikuta

This year, it became necessary to give
explanations to surrounding residents inorder to conduct soil purification. We proposed a current-best purification plan, butmany opinions were given at the information session, and we acutely felt the extent
of everyone’s concern and the company’ssocial responsibility (CSR). As an aspectof CSR, we are involved in the following
key issues.
In order to reduce waste, we haveswitched from accumulating waste at eachplant to a concentrated accumulation ofwaste for the entire works, with monitor-●Contributing to and Living in Harmony with the Local
Community
were able to achieve the targets for energy
conservation and the reduction of greenhouse gas emissions, beginning with theachievement one year ahead of scheduleof zero-emission (less than 1% landfill
waste), which we have been involved infrom five years ago. Also, as activities
closely linked to the local community, we
have conducted environmental education
during environmental months for nearby
elementary school students, cooperated
with the Chiba Environmental Restoration
Fund and provided wood planters and car
stops made from waste materials for the

Yawata Seaside Festival, working to contribute to and live in harmony with thelocal community.
Planters created from recovered wood drums

Receiving a letter of appreciation from the Chiba
Environmental Restoration Promotion Committee(Chairman: Ms. Domoto, Governor of Chiba Prefecture)●Environmental Contributions Over Bordersthat I carry with me. We are promoting
the diffusion and penetration of an interestin maintaining the environment, with theawareness that the plant becoming messyis the same as a home becoming messy.
In order to preserve the beautiful natureof the Nikko National Park, the thoughts
and feelings of the people who live there
must be beautiful; otherwise, it cannot
be maintained. In our role as a works
which has the most employees involved
with Nikko City, we are making an effort tocreate people and a region where we can
comfortably live, not only through Waraku

Odori dance, but also by taking on local
beautification activities and introducing
the activities of the works to local elementary and middle school students.
Cleaning aroundthe works

Plant tour by local juniorhigh school students●Aiming For Activities with an Awareness of CSR
ing personnel for sorting. Achievement ofzero-emissions by the end of fiscal 2006
has now come into scope.
To reduce CO 2 emissions, we introduced
NAS batteries that effectively utilize nighttime electricity, and we have switched ourfuel from butane to city gas. As a result,
we expect to see a total reduction effect ofapproximately 1200 t /year.
To conserve energy, we have createda sunshade arbor on the west side of theoffice as shown in the picture. This lowers
the room temperature by approximately three degrees, allowing us to alleviate

21

some of the air conditioning impact. The
greenery is also visually refreshing.

Sunshade arbor on the west side of the officeOsaka WorksAt the Osaka Works, we are conducting
cleaning activities outside the premises
during the environmental month in June,
and we have continued to do this sinceacquiring ISO14001 in 2002.
To begin with, around the middle ofeach month the back-office staff members clean outside of the buildings in theManager of Osaka Works works for 30 minutes all at once, and inJune, some of them worked together with
TatsuoViscas, Furukawa Logistics, and Japan
YoshisuePrecision Pipes to clean outside the premises. We went to the walk outside thepremises and the pavement alongside Doi

Mie Works
The Mie Works is located in Kameyama
City, in a place of natural beauty at thefoot of the Suzuka mountain range.
Kameyama City has recently drawn up
the “Kameyama City Basic Environmental
Plan,” it calls for residents, businesses,
and the administration to work together in implementing environmental conManager of Mie Works servation activities. Our works is also
actively participating in activities held by
Nobuo Araithe administration as a member of thelocal community and society, and we havealso drawn up plans ourselves and acted
upon them, actively participating in local

Yokohama WorksThe Yokohama Works mainly has staff
employees, such as those of the laboratory. We have been conducting a varietyof activities since acquiring ISO14001
in 2002, and of these we have emphasized “research and development withthe environment in mind.” In researchand development, we use a wide variety
Manager of Yokohama Works of, and state-of-art chemical substances
than any other works. To make this posMitsuyoshi
sible, we have created our own specialShibata
ized committee to thoroughly investigate
whether a substance can be used andhow to handle it, implementing measures●Cleaning Outside the Premises, Realizing Each YearThat Treasured FeelingPark directly across from us, not only picking up empty cans, trash, and cigarettebutts from the pavement and gutters, butalso sweeping the pavement. The time isstill 8:30 in the morning, so many commuters from nearby companies (plants)
flash us a look of doubt as they pass by.
The mere act of working hard at cleaning
and working up a sweat leads to a curious
feeling almost of pride welling up inside
me. It is a slightly strange feeling.
Perhaps this is what it feels like when
you have contributed to society. I would
like to treasure this feeling.

Cleaning outside the premises●Environmental Conservation in Cooperation with the
Local Community
environmental conservation activities.
Recently, we have participated in “Riverand Ocean Clean Strategies,” “National
Road 1 Clean Strategies,” volunteer activities, and exhibited at the “Experience theEnvironment Fair for Children 2006.” Wealso cleaned the public roads around theworks for approximately 1.5 km, and havereceived a high evaluation from the local
community and authorities. Further, wehave made presentations at “Meeting
Place for Environmental Activities,” andwe intend to continue to promote environmental conservation in cooperation withthe local community. Meanwhile, in termsof activities within the works, we havefurther promoted activities that contributeto environmental conservation in our daily
production activities in addition to continuing to prevent pollution.

During break in volunteer activities●Research and Development with an Emphasis on theEnvironmentthat absolutely prevent leakage to theenvironment. We have also incorporated Design for the Environment (DfE) todevelop products with the environment
in mind. Meanwhile, utilizing our analytical technology that we have developed
over years, we are contributing to theanalytical assessment of environmental
impact substances for all of the Furukawa
Electric Group products. In addition, allof the employees are working together
in energy conservation activities, waste
reduction activities, and activities toclean the neighboring areas, and we are22

aiming to become a works that places
environmental conservation first.

Cleaning neighboring areas

Social Performance

Involvement with Employees
Relations with Employees●Views on the Relationship Between the
Company and its Employees
Furukawa Electric is striving to build a sincere relationship with its employees based ontrust and responsibility. In addition, throughbusiness and work, we are aiming to establish
more constructive relations in which the company and our employees can enhance eachothers abilities and value.
●Employee Labor Management
In terms of employee labor management,
we are working towards the appropriate management of labor on a daily basis, in accordance with the Labor Standards Law and otherrelated laws and company rules. Particularly
in 2005, reflecting upon the problems* identified by the Labor Standards Supervision Office,
we strengthened management levels for working hour management throughout the company in all divisions.
*From the fact that working hour management was not con-ducted appropriately, with the underreporting of overtime
working hours for some of the back-office staff, it became
clear that as a result there were unpaid augmented wages
in many of the divisions. We conducted a company-wide
investigation, paying wages for the unreported hours andvoluntarily releasing the recounting of events external to thecompany (October 28, 2005).

●Placement, Evaluation and Job Conditions
We are working to provide opportunities forplacements and job assignments, emphasizing
individual motivation and abilities based on theconcept of equal opportunity. As a part of this,
we are implementing various interview systems and providing opportunities for employees to reflect on their career goals.
Regarding evaluation and job conditions, wehave adopted an incentive program for the fairevaluation and treatment of our employees, according to their abilities and performance. We
are also working on training managers to have
performance evaluation skills, in order to improve the management of the system and win
the trust of our employees.

Various Systems●Education and Training Systems
We believe that the strength of our company lies in the synergy of the abilities of each
employee at the work site and that each employee’s ability is enhanced in a practical way
through everyday work.
Furukawa Electric provides a place for individuals to grow through work, and provides
opportunities to support a proactive approachfor the development of skills of motivated employees. These opportunities include training,
distance learning and support for acquiring
qualifications.
●Support System Corresponding to Various
Ways of Working
We respect our employee’s lifestyles andhave established various support systems thatenrich each individual’s working life.

Purpose / Content

Flexible Working Hours

We adopt a system of flexible working hours which enables employees to work efficiently according to business demand. We
support employees having flexible working hours that suit their lifestyle.

Refresh Holiday

Employees are able to take three consecutive days off once a year, and five consecutive days off every five years, so that they canenjoy well-planned holidays and refresh their minds and bodies.

Holiday Accumulation

A maximum of 10 days out of the remaining regular annual holidays can be carried forward to the accumulated holidays (effective
for five years).

Maternity and Paternity Leave

Any employee (male or female) who has a child under one and a half years of age can take child care leave for a duration of theirchoice, until their child is one and a half years old.

Nursing Care Leave

In cases where an employee’s spouse, child(ren) or parent(s) (including the spouse’s parents) need nursing care, that employee isable to take nursing care leave for up to one year, if certain conditions are fulfilled.

Retirement Seminar
Middle Age Seminar

For union members who reach a certain age, union and management jointly provide these seminars, with the aim of enhancing
their current lifestyle and supporting their lifestyle after retirement.

Re-employment After Retirement

We have a re-employment system for employees who have reached the retirement age of 60.

23

Safety Efforts●Safety Record
The frequency rate for cessation of work infiscal 2005 was 0.25, and there were two accidents that led to the cessation of work.
0.6

Frequency Rate for Cessation of Work
0.54

0.5

0.47

0.4

0.36

0.30

0.3

0.25

0.2
0.1

0.09

0.0

2000

2001

2002

2003

2004

2005 (Fiscal year)●Company-Wide Priority Safety Activities
Activities are carried out by focusing on thecompany-wide priority safety activities according to the Company-Wide Safety and HealthControl Guidelines for fiscal 2005.
[Company-Wide Priority Safety Activities]
1.“Enhancement of the compliance management system of dangerous and hazardous
work-II”~Establishing a system for pursuing qualifiedwork~
2.“Eradication of unsafe behavior due to thepromotion of work standardization”~Identify the key points for equipment safety
and work safety~
3.“Thoroughgoing safety and health education to transferred personnel”~Thoroughgoing OJT education using theoperating manual to transferred personnel,
temporarily transferred personnel, external
workers, temporary staff, and trainees~●State of Safety Activities
We are promoting safety activities that aim for“from zero accidents to zero risk” and “frompreventing reoccurrence to predicting and forecasting.”
1.Promoting the standardization of work andthe essential safety of equipment
We are promoting the standardization of workand the essential safety of individual facilities
and equipment, incorporating the instincts
and techniques of work from the perspectiveof the triune aspects of safety, quality andproductivity.
2.“Hiyari-Hatto” fear and alarm activities
As a method for assessing residual risks forwork and equipment and making specific improvements, as well as increasing sensitivity

to danger, we are carrying out Hiyari-Hatto
fear and alarm activities with all employees
participating.
3.Interactive individual safety interviews
With the aim of increasing safety awarenessbased on “steadily looking” at unsafe working
conditions, we are conducting “interactive individual safety interviews” to foster communication and a common awareness of unsafe
behavior between overhead managers andworkers, seeking to correct behavior.
4.Auditing the state of adherence to laws on
dangerous and harmful work
We used a checklist to conduct an internal
audit of the state of adherence to laws on
handling harmful substances, wearing protective gear, inspections mandated by law,and certified workers.
5.Safety and health education to transferredpersonnel and temporary workers
We are conducting OJT education using the“operating manual” to instruct people withless than one year of working experiencethrough periodic skills assessment and individual safety interviews.

results of a medical examination, and using a
consultation system which involves a medical officer and the employee who works longhours.
●Responding to asbestos-related illnesses
Since the asbestos problem was covered on
media during the summer of 2005, we investigated workplaces that had handled asbestos
products in the past and conducted special
health exams for employees at these workplaces. We also sent notices urging retired
employees of the workplaces to take special
health examinations. As of now, one retired
employee who had been in charge of underground electric power line installation died ofmesothelioma and has received workers’ accident recognition.
There are currently no workplaces that handle products containing asbestos.
For illnesses caused by asbestos, the illness
develops after an extremely long period of timesince exposure, often 20 or 30 years, and wewill continue to successively follow up on theseillnesses.
●Promoting separate smoking areas
We set up more than 70 smoking rooms
during fiscal 2004 to promote separate smoking areas, in line with the “Concerning the
Guidelines for Measures on Smoking in the
Workplace,” a notification issued by the Director-General of the Labor Standards Bureau in
2003. Thanks to these efforts, the companywide percentage of smoking among males in
the company decreased from 53% in fiscal
2002 to 46% in fiscal 2005. In the future, wewill continue to prevent passive smoking andactively promote nonsmoking.

Health Efforts●Mental health education
Furukawa Electric has been promoting company-wide mental health measures since 2002,
in line with “Guidelines for Promoting Mental
Health Care in Enterprises” published by the
Ministry of Health, Labor and Welfare. Fromfiscal 2002 to fiscal 2004, we conducted basic
education for all of our employees on mental
health. In fiscal 2005, we are currently offering
an advanced course, incorporating case studies, to help them acquire skills in practical response for preventing and responding quickly
to any mental health problems.
●Health care for employees that work longhours
Based on the guidelines issued by the Labor
Standards Bureau, “Measures to be Taken by
Employers to Prevent Health Impairment Due toOverwork,” we are committed to checking up
and following the health care of our employees that work long hours by placing strict restrictions on the time they work, based on the

24

（%）

Smoking Rates (Males)

60
50

53

53

40

48

46

2004

2005 (Fiscal year)

30
20
10
0

2002

2003

Social Performance

Involvement with Employees
Compliance
The Furukawa Electric Group defines “compliance” as “more than simply abiding by laws
and regulations. Rather, compliance is based on
the values and ethics that the company and its
employees adhere to, as responsible membersof society.” In June 2004, we established the“Furukawa Electric Group Action Guidelines”
as the basic philosophy for adhering to ethics.
In June 2005, we established internal regulations on conducting compliance, a system forpromoting compliance, and an internal reporting system, and we are promoting compliancebased on these.
●System for promoting compliance
As the central organization for promoting
compliance, we established the Central Compliance Committee with the CAO (Chief Administrative Officer) as the chairman. We haveset compliance committees in the works andbranches around the country as subordinate
organizations.
Through these organizations, we are conducting enlightenment and educational activities, getting a grasp on compliance risks andinvestigating and responding to internal reporting matters.
●Compliance education
Based on the “Furukawa Electric Group Action Guidelines,” in June 2005 we have compiled the “Action Guidelines for Company Officials and Employees” that demonstrated
specific codes of conduct and the “Manual on
Action Guidelines for Company Officials andEmployees” that contained additional explanations. We combined these along with messages from the President and CAO into a booklet
called the “Compliance Handbook,”which we distributed to all employees,
conducting education on compliancein the workplace.

●Internal reporting system
In order to realize early discovery and correction of compliance violations, we introduced a system where company officials andemployees can report directly to the Central
Compliance Committee (internal reporting system) from July 2005. External specialists also
serve as windows for these reports, utilizing amechanism where mutual contact between thecompany and reporting body is possible, giving
feedback to the reporter on company response
after ensuring strict anonymity for the reporter.
The results of the investigations into reported
matters and our response to them is reported
to the board of directors as appropriate.

●Protecting personal information
On the occasion of the full-fledged enforcement of Act on the Protection of Personal Information in April 2005, the Furukawa ElectricGroup began operating under the awarenessthat protecting personal information is a social
responsibility given to companies. We established internal regulations concerning the protection of personal information called “Guidelines for Handling Personal Information” andsought to thoroughly spread awareness. We
are working to maintain an appropriate control
system for personal information and preventthe leakage of information.

Furukawa Electric Group Action Guidelines

We, company officials and employees of the Furukawa Electric Group, will:

1
2
3
4
5
6
7
8

Abide by the laws and regulations in Japan and abroad, and act in conformity withinternal rules and external rules such as social codes and ethics;
Properly display and adequately disclose corporate information, including financial
statements;
Deal with antisocial groups in a resolute manner;
Aim to be a company that is useful to society by developing products that aid thedevelopment of society and by providing reliable products and services;
Try to act with consideration for the protection of the global environment;
Respect human rights, cultures and traditions as a member of the international
community;
Create a company in which employees can feel a sense of reward, ease andfulfillment; andMaintain and develop sound and good relations with all stakeholders.

5Environmental Performance of Affiliated Companies
Sunsunny Industry Co., Ltd.

Head Works: 54-12 Inuzukadaiyama, Oyama-shi, Tochigi
Number of Employees:41
URL: http://www.sunsunny.co.jp/
http://www.furukawa.co.jp/netsu/
Contact: Promotion Section of ISO
TEL : +81-285-24-3191
FAX : +81-285-24-3083

The Awareness of the Environment has Increased DramaticallyHistory
Our company began its operation in Aomori
Prefecture as a joint business venture with
Furukawa Electric and Miyoshi Industry Co., Ltd.
in 1976. Later, in 1981 we moved to the current
location in Oyama, and we became the wholly
owned company of Furukawa Electric. Since
our founding, we have worked as the pioneersof floor heating systems, conducting everythingfrom development, production, operation, andfollow-ups.
As our company products are installed asheating devices in buildings, we fall under the
Building Standard Law. We are also promoting
the development of products that are environmentally friendly, such as products that fallunder the highest ranking of F☆☆☆☆ forformaldehyde emission division by JIS and JAS
and Hot-Water Floor Heating System called“Yukadan Hot Cool” using a heat pump that
consume a low level of energy when used.
Preparatory stages

Efforts for Environmental Preservation-Activities to acquire ISO14001 certificationOur company acquired ISO9001 certificationin 2002, and we are aware that environmentally friendly activities are important issues forthe company. We have decided to carry out
environmental preservation activities based on
ISO14001. In July 2004, the company's president made the kickoff declaration, “Acquisition
during fiscal 2005,” and began conducting
activities towards acquisition. Newly placing
an individual in charge of the environment in the
Promotion Section of ISO that was the promotion
department for quality systems, this became thehead office for environmental management systems where preparations were begun. First, we
acquired environmental manuals and related
documents from companies that had alreadyacquired certification within the Furukawa
Electric Group and used them for reference increating a mechanism. For study groups on
ISO standards and training of internal auditors, we asked for instructors from Furukawa
Electric and deepened the understanding of theemployees who are central to our activities. In
December 2004, as we were in the midst of
making these preparations, the ISO14001 standards were revised, and we struggled to acquire
information on the revised points and their interpretation.
Environmental policy
In June 2005, theP resident set theenvironmental policy,
and these were distributed as wallet size
versions to ensure athorough awarenessof the policy among all employees. Further,
this policy was explained from time to time inour monthly company-wide morning meetings.
The President wished to have the purposes andtargets follow upon this policy, and to conduct
activities that would have a positive effect on
accounts, so he set indicators where the reduction of the amount of environmental impact isreflected in cost reductions.
Assessment of law-abidance
In terms of law-abidance, we newly investigated and sorted out which tasks for each process fell under what laws and regulations. We
measured noise and vibrations and rechecked
the storage conditions of dangerous substances, confirming that there were no problems.
For wastewater, we reviewed the wastewaterdisposal method. As the waste liquid from thecleaning water in gluing and printing equipment
did not contain harmful substances, after filtration we were taking the method of letting it seep
into the ground. From the perspective of risk
management, we stopped this format for waste
liquid from production line and decided to havethe waste liquid collected by a disposal company. In fiscal 2006, we are conducting activities
after incorporating the reduction in the volumeof this waste liquid commissioned for collection
into our targets. This investigation and sorting
was a good opportunity for us all to study thelaw and was effective in raising awareness ofcompliance with laws.

6

Certification audit
We had a pre-survey by the certificationbody in the August before actual certification
audit, and we checked
to ensure that there
were no major defects
in the system we hadbuilt. In this pre-survey, we received requests to improve theaspect evaluation system and were told of our lack of interpretationof the standards. We had the actual audit inlate October to early November. The results of
the audit revealed no major nonconformities,
and four minor nonconformities. We immediately corrected the nonconformities and reported this to the certification body. The following
December, we were able to acquire certification
without any trouble.
Effects and future issues
As a year has not yet passed since we began
full-fledged activities, numerical effects cannot
yet be seen, but information has been shared
and there has been an increase in the awareness of the environment among all employees.
In the future, we can expect major tangible andintangible results. We have also begun to see
voluntary beautification activities in the areas
surrounding the plant, with employees picking up trash on the public roads and clipping
hedges.
The two issues that were mentioned were 1)
the improvement of slightly heavy mechanisms
and 2) reflection in accounts, and we plan tosee results from these improvements.

Social Performance

Environmental Performance of Affiliated Companies
Shodensha Co., Ltd.

Headquarters: 5-23-8 Nishi-Gotanda, Shinagawa-ku, Tokyo
Tokyo Factory: 23-8 Nishi-Gotanda, Shinagawa-ku, Tokyo
Mie Factory: 16-13 Nobono-cho, Kameyama-shi, Mie
Saitama Factory: Aza-sakuranami, Ooaza-kitanagai, Miyoshi-machi, Iruma-gun, Saitama
Engineering Department: 2-10-4 Oonodai, Midori-ku, Chiba-shi, Chiba
Number of Employees: 122
URL: http://www.ksd-shodensha.co.jp/
Contact: Quality Assurance Department
TEL : +81-3-3493-1282 / FAX : +81-3-3493-1727

We are aiming to make environmental management systems more efficient and slim
History
Our company was founded in 1922, andin 1950 the current Shodensha Co., Ltd. wasestablished to produce telecommunication line
facility materials mainly of ready access terminal box. Since then until today, we have given
technical aid on the development of line products while consecutively increasing the types of
products we sell.
Due to capital participation of Furukawa
Electric in January 1985, we were able tostrengthen technological development, diversify
the items sold and work to accumulate technical strength.
In June 2002 we merged with Shinseidenzai
and in September 2004 we relocated the Chiba
Factory functions to the Saitama Factory.
Our current organization is composed of theheadquarters, engineering department, Tokyo
Factory, Mie Factory, and Saitama Factory.
Our main products are optical cable closure(for underground and aerial) and optical cabinets. We are supporting “information and telecommunication” in the optical and broadband
era from the aspect of facilities and equipment.

Efforts for Environmental Preservation
Our company recognizes that preventing
the pollution of the earth and preserving theenvironment are the most crucial issues for all
mankind, and in the production of devices fortelecommunications lines, we are promoting
environmentally friendly business activities.
In June 1999, we acquired ISO14001 certification, and in June 2005 we switched to
ISO14001:2004. In July 2005 we combined
the manuals for the quality management systemand the environmental management system,
aiming for the increased efficiency of operations
and the streamlined management.

Priority Items (Fiscal 2005)
1) Adhering to environmental laws and regulations
From June 2003, we have posted the relevant
environmental laws, regulations and our customers’ green procurement guidelines (referred

to as environmental laws and regulations, etc.
hereafter) on the intranet, publicizing them within the company.
We have posted the following environmental
information on the intranet, and are aiming forthe sharing of environmental information.
Headquarters Engineering Department

Server

Shodensha Intranet

Tokyo Factory

Mie Factory

Saitama Factory

Environmental Information●Environmental laws and regulations, etc.
●Environmental data
Environmental performance
Environmental accounting●Green procurement investigation report2) Developing products with a minimal impact
on the environment
With optical measurement technology andplastic molding technology as our foundation,
we are conducting optical access product development.
Taking into consideration our customers’
green procurement guidelines, we conduct product assessments and consider what materials
and parts to use, and how to design products tominimize the impact on the environment, notonly when the manufacturing the products, butalso when customers use them and when they
are disposed of as waste.
3) Energy conservation
Tokyo Factory carries out assembly, and Mie
Factory and Saitama Factory carry out plastic
molding and assembly.
The specific consumption of electricity forthe assembly factory in fiscal 2005 (comparedto sales) was reduced by 28% compared to theprevious fiscal year.
The specific consumption of electricity forthe molding factory in fiscal 2005 (compared tothe amount of plastic used) was reduced by 1%
compared to the previous fiscal year.
Molding factory account for approximately
90% of our company’s electricity consumption. In order to reduce the electricity consumption of molding factory, we are engaging inefforts to improve the operating rates of molding
machines and shorten the setup time.
4) Reduction of waste
The specific waste plastic generation for the
molding factory in fiscal 2005 (compared to theamount of plastic used) increased by 20% dueto the launch of new products.
In order to reduce waste plastic generation,
we are engaging in efforts to increase the product yield rate and also to reduce the short downtimes of molding machines.
We installed a padding material manufacturing machine in Mie Factory in April 2002,
in order to reuse used cardboard as padding
material for packaging, and we are continuing to
reduce the amount of cardboard waste.

Padding material using waste cardboard5) Promotion of recycling
Since 1999, we have been recycling the covers of the connecting terminal boxes that wedeliver to the Nippon Telegraph and Telephone
East Corporation and the Nippon Telegraph andTelephone West Corporation, working towards
the effective use of our resources.

Nikkei Kakoh Co., Ltd.

Headquarters: 3-8-39 Tagawa, Yodogawa-ku, Osaka-shi, Osaka
Headquarter Plant: 3-8-39 Tagawa, Yodogawa-ku, Osaka-shi, Osaka
Hiroshima Plant: 1368-1 Sasabe, Takamiya-cho, Akitakata-shi, Hiroshima
Sendai Plant: 11-1 Myojindo, Kaminomyo, Shibata-machi, Shibata-gun, Miyagi
Oyama Works: 54-3 Inuzuka Aza Daiyama, Oyama-shi, Tochigi
Number of Employees: 264
Contact: Environmental Office, Sendai Plant
TEL : +81-224-55-1441
FAX : +81-224-55-2879

We will implement various measures to decrease the impact on the environment
History

Priority Items (Fiscal 2005)

Our company was newly launched upon themerger of the former Nippon Keikinzoku Kakoki
and the former Tohoku Furukawa Keikinzoku
Kako in December 2001. Our headquarters
are in Osaka, and we have plants in Osaka,
Hiroshima, Oyama (Tochigi Prefecture) andSendai (Miyagi Prefecture).
Our company works mainly with aluminum
joining technologies (Headquarter plant: welding, Sendai plant: brazing), manufacturing automobile parts, bicycle parts, large-scale welded
structures, farm equipment parts (assembly),
precision instruments (assembly), and heatsinks.

•Reduction of greenhouse gases
1) Reducing the amount of liquefied petroleum
gas usedOn the continuous paint line of Hiroshimaplant, we have removed conveyers and paintrobots, switching to hand painting line torespond to the recent trend of various products
and small lots, to reduce energy consumption.
We have reduced the amount of liquefied petroleum gas used in the drying process by approximately 74% compared to fiscal 2000.

Efforts for Environmental Preservation
Our company believes that global environmental problems are crucial challenges for all
mankind, and we have placed them as one of
our top priority issues for company management. All of our employees have an enhanced
awareness of the global environment and areengaged in environmental preservation activities.
■August 2003, Hiroshima Plant acquired
ISO14001.

(tons)

140

Amount of Liquefied Petroleum Gas Used

mantled unnecessary welding machines, conducted overall inspections of air conditioning
systems and turned off lights when they are notneeded, achieving a 10% reduction when compared to fiscal 2000.
(MWH)

5000
4000
3000
2000
1000

120

0

100
80
60
40
20
0

2000

2001

2002

2003

2004

2005 (Fiscal year)2)Reducing the amount of natural gas used
At the alumite facilities in the Osaka
Headquarter Plant, we consolidated two boilers
to one, and reduced the amount of natural gas
used by approximately 21% compared to fiscal
2000.
(10,000 m3)

16

Amount of Natural Gas Used

90
80

12

2001

2002

2003

2004

2005 (Fiscal year)

Amount of Dichloromethane Used
Emissions
Transferred volume

70

10

60

8

50

6

40

4

30

2
0

2000

• Reducing the amount of environmental impact substances used
At our company, we use dichloromethane
for the purpose of cleansing fat and grease on
the processed parts. We conducted an overall
maintenance of the whole ultrasonic cleaning
facility including the chiller and pipes in 2002.
By suppressing the emissions into the atmosphere, we were able to reduce consumption by
32% compared to fiscal 2000.
We will engage in efforts to consider substitute cleansers and cleaning methods towards
completely eliminating the use of chlorinatedorganic solvents.
(tons)

14

Amount of Electric Power

20
2000

2001

2002

2003

2004

2005 (Fiscal year)3)Reducing the amount of electric power
In addition to the reduction in the amount ofelectric power consumed due to the switching
to hand painting of Hiroshima plant paint line,
we have reduced mercury lights and fluorescentlights, removed unnecessary electric wires, dis-

8

10
0

2000

2001

2002

2003

2004

2005 (Fiscal year)

Furukawa Electric’s Progress in Environmental Management / Company Overview

1972

Company-Wide Rules for Pollution Prevention formulated

1974

Environmental Control Department established
Energy-Conservation Team started

1989Team for Reduction in Use of Specified CFCs started

1992

Renamed from Team for Reduction in Use of Specified CFCs
to Team for Reduction in Use of Ozone Layer Depletion Substances

1993“Basic Framework for Protecting the Global Environment”
formulated (Furukawa Electric’s voluntary plan of environmental preservation)

Sales Offices : Kansai Branch Office, Chubu Branch Office,1994

Committee for Company-Wide Promotion of Energy Conservation started

Research Laboratories : Y okohama R&D Laboratories, Metal Research Center,

1996

Specified CFCs and trichloroethane completely eliminatedfrom the company

1997

Team for Promotion of Reduction in Industrial Waste started

1998

Furukawa Electric Basic Environmental Policy formulated
Central Committee for Environmental Management started
Committee for the Development of Environmentally Friendly
Products started
Chiba Works acquired ISO14001 certification
Mie Works acquired ISO14001 certification
Company-Wide Regulations for Environmental Management
formulated revising the “Company-Wide Regulations for Pollution Prevention”

1999

Safety, Environment and Health Promotion Department started, incorporating the Environment Control Department andthe Safety Control Divisions

2000

Ecology and Energy Laboratory established
Liaison Meeting with Affiliated Companies established
Environmental Report began to be issued
Meeting of Environmental Personnel started
Hiratsuka Works acquired ISO14001 certification
Osaka Works acquired ISO14001 certification

2001

Medium-Term Plan for Environmental Preservation Activities
2002 formulated (for 2001-2002)
Environmental accounting disclosed

2002

Nikko Works acquired ISO14001 certification
Yokohama Laboratories* acquired ISO14001 certification(*current Yokohama Works)
Green Procurement Preparation Committee started

2003

Furukawa Electric Basic Environmental Policy revised
Medium-Term Plan for Environment Preservation Activities
2005 formulated (for 2003-2005)
Green Procurement Executive Committee started
Liaison Meeting of Consolidated Environmental Management
startedSeminar for managers of consolidated companies held

2004

Medium-Term Plan for Environment Preservation Activities
2005 revised
Renamed from Safety, Environment and Health Promotion
Department to Safety, Environment and Quality Promotion
Department

2005

Green Product Management Committee started

2006

Midium-Term Plan for Environment Preservation Activities
2009 formulated (for 2006-2009)

Head Office: 2-3, Marunouchi 2-Chome, Chiyoda-ku, Tokyo, JapanFounded : 1884
Changed firm name : 1920
Paid-in Capital : 69.3 billion yen
Number of employees : 4,350
Works : Chiba Works, Nikko Works, Hiratsuka Works, Mie Works, Osaka Works,
Yokohama Works
Kyushu Branch Office
Ecology & Energy Laboratory, FITEL Photonics Laboratory, Automotive Technology Center(As of March 31, 2006)

Performance
Total Sales (Consolidated)

Sales Composition Ration(Consolidated)(100 million yen))

Telecommunications

15％
Electronics andAutomotive Systems

21％

Metals14％
Light Metals

23％

Services and Others
Energy andIndustrial Products 4％

23％(Fiscal year)

Information Disclosure on Our Website
On our Website, we are disclosing how Furukawa Electric is promoting its environmental preservation initiatives, and we are presenting previously published environmental
reports, along with this one, in PDF format. Those can be obtained at the following
Furukawa Electric Website.

http://www.furukawa.co.jp/english/
29

Safety, Environment and Quality Promotion Department
4-3, Okano 2-Chome, Nishi-ku, Yokohama-shi, 220-0073 Japan
TEL: +81-45-311-1334 FAX: +81-45-311-1931
http://www.furukawa.co.jp/english/

This report is printed on 100% recycled paper with ink that is free of VOC (volatileorganic compound) ingredients, using a waterless printing method.

Published in December 2006

IE-107 1H12 TR 50