Furukawa Electric Group
Sustainability Report

2016Editorial Policy
This report aims to inform all stakeholders about the philosophy and measures of Furukawa Electric Group in
relation to its business activities, management, the environment and its relationship with society. Our goal is toreport on our CSR philosophy and efforts and gain the understanding of our stakeholders.

Scope of This Report
Period Covered
Fiscal 2015, from April 1, 2015 to March 31, 2016
(note) Includes selected information on past initiatives andactivities during fiscal 2016.

Organizations Covered
This report covers Furukawa Electric Co., Ltd. and groupcompanies in Japan and overseas. Where activities arelimited to specific regions or companies, this fact has
been clearly indicated in the reporting.

Publication Timeframe
Publication date: September 14, 2016
Planned publication of next edition: September 2017

Editing and PublicationC SR Department, Administration & CSR Division,
Furukawa Electric Co., Ltd.
M
 arunouchi Nakadori Bldg., 2-3, Marunouchi 2-chome,
Chiyoda-ku, Tokyo 100-8322, Japan

Accuracy of the Data Disclosed in This Report
In order to maintain accuracy in data disclosure, the information
provided in this report has been vetted by the divisions in charge ofthe relevant information, the Investor & Public Relations Department
and the CSR Department, which is in charge of editing this report.
We have also provided a third-party opinion so as to offer the pointof view of an outside expert.

Information Disclosure System
Furukawa Electric is fully aware that the timely and appropriate
disclosure of corporate information to investors is essential to ahealthy stock market. We take a serious approach to providing
timely and appropriate corporate information to investors, including
through the development of internal systems that allow us todisclose rapid, accurate and fair corporate information in a way thatalways keeps investors’ perspective in mind.
Moreover, in order to increase the understanding of all stakeholders
in respect to our company, we try to provide information through avariety of media, including non-financial information.

Non-financial- CSR website- Sustainability reports-C orporate governancereports

Financial- IR website- Financial statements-S ecurities reports/Quarterly
reports- Summary of accounts, etc.

Sustainability Reporthttps://www.furukawa.co.jp/en/csr/report/

2

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

History of Furukawa Electric's CSR Activities
1972

Companywide Rules for Pollution Prevention formulated

1974

2008

Environmental Control Department established

1989

Team for Reduction in Use of Specified CFCs establishedCompliance pledge introduced
	e-Friendly mark (environmentally harmonious product) certification
system started

Energy Conservation Team established1992

Anti-Monopoly Act Guidelines issued

1993	Basic Framework for Protecting the Global Environment formulated(Furukawa Electric's voluntary environmental preservation plan)
1996
1997
1998

Use of specified CFCs and trichloroethane discontinued
Team for Promotion of Reduction in Industrial Waste established
Furukawa Electric Basic Environmental Policy formulated

Acquisition of ISO 14001 certification commenced	Companywide Regulations for Pollution Prevention revised to create
the Companywide Regulations for Environmental Management
2000

First Environmental Report published2001

Environmental accounting started

2002

Anti-Monopoly Law manual publishedZero-emissions activities commenced
2003

Furukawa Survival Plan announced

Executive Officer System introduced
Furukawa Electric Basic Environmental Policy revised
2004

Company system and chief officer system introduced

Furukawa Electric Group Action Guidelines formulated	Furukawa New Leaf established as a special subsidiary offering
employment to people with disabilities
2005	Internal reporting system introduced and internal and external reporting
desks establishedCompliance Handbook published2006

Medium-term management plan Innovation 09 announced	Report published under the revised title “Environmental and Social
Report”
2007

CSR Division established

Chief Social Responsibility Officer (CSRO) appointed
Report published under the revised title “CSR Report”
	Corporate philosophy and corporate message of the Furukawa ElectricGroup formulated
2008	Furukawa Electric Basic Environmental Policy formulated	Furukawa Electric Group Basic Policy on Social Contribution Activities
formulated

Furukawa Electric Basic Policy on Pandemic Influenza Preparedness formulated

2009	Furukawa Electric Group Green Procurement Activity Guidelines published

Basic Policy on BCM (Business Continuity Management) formulated
Compliance awareness survey covering all employees conducted	A CSR award newly established as a part of the Outstanding AffiliatedCompany Awards
2010

Medium-term management plan, New Frontier 2012, formulated

CSR Deployment Guideline for Business Partners issued
	“Heart-to-heart communication between president and employees” and“Compliance Roundtables” initiatedCompliance Months introduced
Compliance awareness surveys for affiliated companies conducted2011

Information security and personal information protection months introduced

Furukawa Electric Group Basic Policy on CSR revised	¥250 million donated for reconstruction support for the region affectedby the Great East Japan Earthquake (Groupwide)	Furukawa Electric Group CSR Code of Conduct revised, and Furukawa
Electric Group Action Guidelines accordingly eliminatedCompetition Laws Compliance Guide published2012	BCAO Award 2011, the “Award for Practical Excellence”, received from theBusiness Continuity Advancement Organization (BCAO)

Report name revised to Sustainability Report and issued	Furukawa Electric Group Anti-Bribery Statement and Bribery Prevention
Guide formulated
2013	Medium-term management plan, Furukawa G Plan 2015, announced	Transitioned from company system and chief officer system to a systemof strategic business units and head office divisions
Administration & CSR Division inaugurated
2014	One domestic SBU conducted EICC audit

Implementation of private sector training for public school teachers	Jointly conducted employee awareness surveys with Group companies
in Japan	Published 2nd edition of competition law compliance guide (Japanese,
English and Chinese common edition)
	Began compliance education for local employees of Chinese affiliatecompanies
2015	Visiting elementary school to give classes

Contents
02
03
03

Editorial Policy
History of Furukawa Electric's CSR Activities
Contents

26
28
30

Stakeholder Relations
Risk Management
Compliance04

Group Profile

32

Initiatives for Society

32
34
36
38
44

Relations with Our Customers
Relations with Business Partners
Relations with Shareholders
Relations with Employees
Relations with Communities

48

Initiatives for Environment

06

Top Message

08

Special Feature 1

10

Special Feature 2

12

Financial and Non-financial Highlights

14

Business Report				

Telecommunications / Energy and Industrial Products /Electronics and Automotive Systems / Metals / R&D

20

Management

20
24

Corporate Governance
CSR Management		
Laying the Foundation for the Future of
Renewable Energy		Contributing on a Global Scale with
Furukawa Electric Group’s Infrastructure
Business and Green Products

		 Environmental Management / Material Flow/		Targets and Performance of Environmental/
Conservation Activities /		 Environmentally Friendly Products /		 Preventing Global Warming/Reducing Waste /		Water Resources / Chemical Substance Management /		Environmental Risk Management /		Biodiversity Conservation
58

Third-Party Opinion

59

List of all applicable companies

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20163

Group Profile
Company Profile

Percentage of net sales by segment

Company Name

Furukawa Electric Co., Ltd.

Services and Others

President

Mitsuyoshi Shibata

Founded1884

Established

1896

Paid-in Capital¥69,395 million(As of March 31, 2016)

Net sales¥874,879 million (Consolidated)(Years ended March 31, 2016)	¥398,851 million

		(Non-Consolidated)

Number of Employees

49,826 (Consolidated)(As of March 31, 2016)

3,232 (Non-Consolidated)

Head OfficeM arunouchi Nakadori Bldg., 2-3,
Marunouchi 2-chome, Chiyodaku, Tokyo 100-8322, Japan

TEL.

5.7 %

54.2 Billion yen

Telecommunications

16.8 %
159.2 Billion yen

Metals12.9 %
122.4 Billion yen

Total

874.9

(note)

Billion yen

Electronics andAutomotive Systems

34.9 %
331.1 Billion yen

Energy andIndustrial Products

29.7 %
281.3 Billion yen(note) Figures excludes intersegment transactions

Percentage of overseas sales
Overseas (Total) 46.3%

South-East Asia, Korea,
Taiwan, India 19.0%
China 10.3%+81-3-3286-3001

Japan

North America 8.5％

53.7%

Others 8.5％

Major Products and Services
Telecommunications
Optical fiber cables / Metal communication
cables / Semiconductor optical devices /Fusion Splicer / Electronic appliance wires/ Optical components / Network
equipment / Optical fiber cable
accessories and installations / LAN Cable/ LAN Solution Systems / CATV system /Radio products, etc.

Energy and Industrial Products
Copper wires and Aluminum wires / Powertransmission cable / Insulated wires / Powertransmission cable accessories andinstallations / Cable conduits / Water-feeding
pipe materials / Foam products / UV tapes forsemiconductor manufacturing / ElectricalInsulation Tape / Electric material products, etc.

Electronics and Automotive Systems
Automotive components and wiring
harness / Magnet wires / Electronic
component materials / Heatsinks /Hard disc drive (HDD) aluminum
substrates / Battery products, etc.

4

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Metals
Copper and copper alloy products(plates, strips, pipes, rods, foils, andwires) / Functional surface products(plating)/ Electrodeposited copper foil /Processed products for electronicparts / Superconducting products /Special me tal ma terials ( Shapememory and super-elastic alloys), etc.

Services and Others
Logistics / Information processing
service / Software development /Service business (real-estate leasing,hydraulic power generation and so on)/ R&D, etc.

Global Network
As of June 30, 2016

Europe10
North America
Asia 51

5

Japan 40

Latin America

Total

9

115

Domestic Locations (Furukawa Electric Co., Ltd.)As of June 30, 2016
Hokkaido Branch

Tohoku Branch
Nikko Works
Copper Foil Division

Okinawa
Sub Branch

Hokuriku
Sub Branch

Chiba Works,
Telecommunications & Energy Laboratories

Chugoku Branch

Kyushu Branch

Shikoku
Sub Branch

Head Office(Chiba, Hiratsuka)

Chubu Branch
Mie Works
Kansai Branch
Copper Tube Division

Yokohama Works,
Advanced Technologies R&D Laboratories,
Laboratories for Fusion of Core Technologies
Hiratsuka Works
Automotive Products & Electronics Laboratories(Hiratsuka, Nikko, Shiga)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

5

● ●●

Top Message

Delivering “sustained profitable
growth” and contributing to thecreation of a sustainable society- The title of the recently published briefing
materials for the 2020 Mid-term Management
Plan was “Delivering Sustained Profitable
Growth”. Would it be correct to regard themeaning of the word “sustained” here as
referring not only to the company’s results
but also to “sustainability” in the sense ofcreating the potential for the company toremain in business by meeting its social
responsibilities?
Yes, that’s correct. We have a responsibility
to continue pursuing robust business activities
and creating profits, not only so that we areable to contribute to our stakeholders, but alsoso that we can contribute to finding solutions
in our areas of expertise that contribute to thesustainability of the natural environment andsociety on a global scale and help to build abetter society. In order to achieve this, as part ofthe process of developing our business globally,in our day-to-day activities we adopt a global
approach to the challenge of contributing toincreasingly diverse stakeholders and to finding
solutions that will contribute to sustainability.

Mitsuyoshi Shibata
President
Furukawa Electric Co., Ltd.

6FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

- The following three initiatives are set out inthe mid-term management plan as ways ofachieving this growth: “Strengthen and reformbusinesses”; “Expand sales in the global
market”; and “Step up efforts to tap into
new markets”. Which of these initiatives arerecognized as strong links with sustainability?
All of these initiatives have numerous services
and products that are related to sustainability interms of both the natural environment and society.
Let me tell you about some of the products fromeach of these initiatives. The “strengthen and reformbusinesses” initiative includes riser cables which
support offshore floating wind power generation aspart of smart infrastructure, and high-temperature
superconducting magnets which support
superconducting flywheel electricity storage systems.
“Expand sales in the global market” includes
active optical products which contribute to the IoT
through the smartification of telecommunications
infrastructure. “Step up efforts to tap into newmarkets” includes products such as aluminum
wire harnesses which contribute to reductions in
CO2 by reducing the weight of motor vehicles andincreasing fuel efficiency. We are contributing tocreating a sustainable society in our these and manyother production field especially in infrastructure,
automotive products & materials and functional
products by utilizing the material technologies that isa particular strength of Furukawa Electric.

- What areas have you strengthened as part of amanagement platform to support these initiatives?
In recent years, it has been said that prioritizing
ESG (Environment, Social, Gover nance)
contributes to the sustained growth of companies.
Could you please give us your opinion on this,including your perspective on ESG?
As a first step, we have strengthened corporate
governance, made ongoing improvements to theoperation of the board of directors, and practiced
governance in a way that balances offense anddefense. What’s more, employees across thegroup have disseminated the Group Philosophy
and acted in accordance with our shared values inorder foster human resources capable of meetingthe expectations and gaining the trust of society
and our customers. Since last year, all employees,
including myself, have started “Work Style Reform”
activities, which aim to achieve sustainable growth
for the company and more meaningful lives forindividual employees, by making autonomous efforts
to reform our working styles and using this as a wayof reforming our organizational culture. Furukawa
Electric’s Management Philosophy sets out thefollowing goal: “Nurture human resources at every
level, so that we can become a more diverse andcreative organization.” I believe it is essential that
we promote Group Global management in a waythat creates an environment and culture that allows
diverse human resources to flourish, and I havebeen focusing on diversity management for a longtime. We will be accelerating initiatives with definedquantitative targets, particularly in relation to thepromotion of women’s careers.

- Lastly, could you please give a message as
President to the readers of this report?
Furukawa Electric Group has set out the basic
behavior expected of our officers and employees in
the Furukawa Electric Group CSR Code of Conduct.
Our officers and employees are required to increase
their awareness of safety, quality and compliance,
and to put this into practice. This is because it is
the attitude of each and every employee in regard
to safety, quality and compliance that provides
the foundation for our business activities. Moving
forward, we will continue to monitor from a global
perspective the status of our organizational platform,
including the implementation of our Code of Conduct,
to contribute to solutions to global problems throughour business activities, and to focus on our ability tocreate even more value for society. Lastly, I would
ask as many people as possible to read this reportin order to promote a greater understanding of
Furukawa Electric.
Thank you very much.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20167

Special Feature1

Laying the Foundation
for the Future of
Renewable Energy
Fukushima Offshore Wind Farm

Challenge to offshore wind power generation

Major projects the Furukawa Electric in involved in・METI Fukushima Restoration Floating Offshore Wind Farm
Demonstration Research Project・N EDO Kitakyushu bottom-fixed Offshore Wind Power

8000

Floating offshore wind power
Bottom-fixed offshore wind power
Onshore wind power
Results

7000
6000
5000
4000

Expected expansion
of offshore wind
power generation
implementation

3000
2000
1000
0

20
00
20
02
20
04
20
06
20
08
20
10
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
20
32
20
34
20
36
20
38
20
40
20
42
20
44
20
46
20
48
20
50

Demonstration Experiment

Cumulative amount implemented (10,000 kW)

Wind power generation is well-known as a clean source of energy that requires no fuel.
Unfortunately, it is difficult in Japan to secure enough flat land for wind turbines, and thus
little progress has been made. So stable wind power can be obtained even than land,
ensure the location is also easy, offshore wind power generation has been attracting
attention.
Furukawa Electric Group was one of the first to focus on the potential of offshore wind
power generation, and it has already starting working toward realizing this promisingtechnology.

Proud participants in the Next Generation
Offshore DC Power Transmission System
Development Project
In July 2015, Furukawa Electric was selected as a planned
contractor for NEDO's “Next Generation Offshore DC Power
Transmission System Development Project.” Furukawa
Electric and VISCAS Corporation will be responsible fordeveloping the DC undersea cable systems for offshore
multi-terminal DC power transmission systems that arecompatible with offshore wind power (see figure on the right).
A major issue standing in the way of implementation is how
to efficiently transmit power from offshore power plants
located far away from large-scale demand areas. Furukawa
Electric Group will establish the foundational technologies
needed to accelerate the expansion and implementation of
offshore power systems, making full use of the cabledevelopment technologies it has built up over the years.
Multi-terminal DC power transmission system
Power transmission system which collects powers from multiple wind farms,
converts to transmission-efficient DC and transmits to multiple onshore
substations.

8

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Wind power generation implementation scenario in Japan(source: JWPA)

Offshore wind farm

Offshore wind farm
Offshore wind farm

AC

AC
AC
Offshore
substation

DC powertransmission
Offshore
substation

DC powertransmission

Onshore substation

DC powertransmission

To demand areas
To demand areas

Onshore substation

Develop next generation

power storage system

Due to the unstable nature of renewable energy, technologies that can store excess power and then restore power when needed
for supply are becoming increasingly important in order to supply stable power from said energy sources. Furukawa Electric Groupis also focused on developing next generation power storage systems that can store large amounts of power.

Proud participants in NEDO's "Safe & Low-cost Large-scale Power Storage System Technology
Development" project
Flywheel electricity storage systems store power as kinetic energy by rotating a large disk (called a flywheel) with a motor.
Furukawa Electric has successfully lifted and rotated a 4 ton flywheel—contactlessly—by developing an superconducting magnetic
bearing that combines a high temperature superconducting coil and high temperature superconducting bulk body. The completed
demonstration equipment has an output of 300 kW and a storage capacity of 100 kWh—making it the world's largest flywheel
power generation system.

Commercial power system

Unstable sunlight

Stable power supply

Unstable power

Gridconnection
equipment

Flywheel electricity
storage system

Power stored and supplied
according to fluctuation in sunlight

Promote hydroelectric power generation
For over 100 years, the Furukawa Group has been involved in a project to generatehydroelectric power that takes advantage of the abundant and stable supply of water from
Nikko's Lake Chuzenji and the steep terrain of the region. Most of the power supplied to theregion is generated by the hydroelectric power generation site still located there.

Hydroelectric plant upgrade completed
Furukawa Nikko Power Generation Inc. (Nikko, Tochigi Prefecture)—a member of Furukawa
Electric Group—finished upgrading its Uwanoshiro Power Plant and began operating thegenerator in October 2015. The plant offers a total power generation capacity of 19,200 kW(normal output) or 30,110 kW (approved maximum output). Any power in excess of that supplied
to Furukawa Electric Group is provided to other power companies under the renewable energy
Feed-In Tariff (FIT) Program. Equipment at the Setoyama Power Plant has already been approved
power
forCommercial
FIT and the plantis to system
begin supplying energy to power companies in January 2017.

Uwanoshiro Power Plant

Overview of Furukawa Nikko Power Generation Inc.
hydroelectric plants in Nikko region

Mt. Nantai
Kegon Falls
Lake Chuzenji

Umamichi
Power
Plant
Setoyama
Power
Plant

Supply of electricity
Supply of electricity

Supply of electricity

Hosoo
Power
Plant

Furukawa
Precision
Engineering

Furukawa
Electric,
Nikko Works

Furukawa Precision
Engineering,
Kiyotaki Plant
UACJ Nikko
Works

Furukawa Co.,
Ashio Works

Supply of electricity

Power Companies

Supply of electricity
Via FIT Program

Uwanoshiro
Power
Plant

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20169

Special Feature

2 Contributing on a Global Scalewith Furukawa Electric Group’s
Infrastructure Businessand Green Products

Furukawa Electric contributes to global
society by leveraging the technologicalstrengths it has developed over many
years, making its environmental
efforts, and by providing a lineup of
unique products in such regions asJapan, Europe, the USA, and Asia.

The United
Kingdom
The recycled plastic cable trough:Green Trough®
Green Trough is a cable trough made fromrecycled plastic made mostly from waste
plastic. At only around 1/4th the weightof concrete products, Green Trough canhelp reduce work/construction periods.
It offers excellent resistance to weather
and corrosion. Recently, Green Troughwas officially selected for a railway
improvement project in the United
Kingdom—the birthplace of commercial
railway. The product continues to attract
attention even from outside of Japan as agreen product that can help contribute toa recycle-based society.

Vietnam
Aluminum wire harnesses

Green TroughRussiaThe use of aluminum wire harnesses has
been attracting attention as manufacturers
continue to make automobiles lighter—anddue to the recent depletion and increasing
costs of copper resources. Furukawa ElectricGroup has successfully developed the " αTerminal Series" of terminals, which offer
the corrosion resistance that is so crucial toswitching over to aluminum wire harnesses.

Expanded production of optical fiber cables

Production plant

OFS Russia (Voronezh, Russian Federation) will double its production capacity
for optical fiber cables in order to provide products within Russia and to strong
European markets.

Hiratsuka Works

Production plant

10

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

OFS Russia

CanadaOPGW (optical ground wire)
In recognition of the high quality of Furukawa
Electric OPGW products, over 1,000 km ofsuch wire was installed as part of a powertransmission project between a hydroelectric
plant and substation located amid cold
environment conditions in the Newfoundlandand Labrador Province in Canada. Furukawa
Electric Group will continue to seek andmeet power transmission infrastructure
improvement demands.

OPGW

Production plantSuzhou Furukawa Power Optic Cable
Co., Ltd.

USA
URD cable(underground distribution cable)

Furukawa Electric Group ships 35 kV URD cablefrom its production site in China in responseto the healthy demand for renewable energy
projects in the USA. Since beginning in 2013,
a cumulative total of over 2,800 km has been
shipped.

URD cable

Production plant

Peru

Shenyang Furukawa Cable Co., Ltd.

OPGW (optical ground wire)
Aluminum wire harnesses

As investment in power infrastructures grows steadily
in developing countries in Asia, Africa, and Latin
America, Furukawa Electric Group has provided 980 km
of OPGW (along with accessories) in the 500 kV powerline segment. The advanced technological strength of
the Furukawa Electric Group is highly regarded due toits ability to support routes even in severe conditions—such as the steep terrain found in Peru.
OPGW

Production plant

Furukawa Automotive Parts(Vietnam) Inc.

Production plantSuzhou Furukawa Power Optic Cable
Co., Ltd.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201611

Financial and Non-financial Highlights■ Net sales■ Operating income（Billions of yen）

（Billions of yen）
40

1,200
918.8
900

924.7

931.8

867.8

874.9

30

600

20

300

10

0

2012

2013

2014

2015

2013

2014

2015

18.6

18.7

2014

2015

30

3.1
2.7
1.7

2011

1.9

25.5
17.6

20

2.1

12.9
10

2012

2013

2014

2015

(FY)

■ Net income

0

2011

2012

2013

(FY)

■ Net income per common share（Yen）（Billions of yen）
20

20

10
3.6

5.6

7.4

10

14.17

10

0

7.94

10.42

2013

2014

5.07

0
－10

－11.1
2011

2012

2013

2014

2015

(FY)

■ Return on equity－20－15.75
2011

2012

2015

(FY)

■ Cash flows（Billions of yen）

（％）

75

20

50
10
2.3

3.3

4.0

25

5.5

－25
－7.2

2011

－50
2012

2013

2014

54.9

2015

(FY)

－75

41.6

41.5

30.8
10.5

18.0
－21.4

－20.3

2011

43.5

18.9
10.0

0

0

－44.9

－40.3

2012

2013

2014

Cash flows from investment activities
Free cash flows

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

1.9

－23.5

Cash flows from operating activities

12

(FY)

40

2.0

－10

2012

（Billions of yen）

3.0

－20

17.9

■ Ordinary income

4.0

－10

2011

(FY)

（％）

0

17.8
15.9

0
2011

■ Operating income (Ratio to net sales)

1.0

27.1

25.5

2015

(FY)

Number of Group employees by region (Consolidated)(Number of employees)

29,76430,000

As of March 31, 2016

29,66527,853

North/SouthAmerica
9,172

27,76025,000Europe, other
520
Japan
10,46920,00015,00013,905
10,83010,000Total

10,46910,702

7,900

6,181

7,179

5,000
0

49,8269,172

492 462 493 520

2012 2013 2014 20152012 2013 2014 20152012 2013 2014 20152012 2013 2014 2015

Japan

Asia

North/SouthAmerica

Europe,other

Gender ratio of employees (Furukawa Electric)

Gender ratio of managers (Furukawa Electric)(Number of employees)(Number of managers)

5,000

318

4,000

7％ 283
8％

900

281

3,000

3,653
2,000

3,154

93％

3,307

8％

26

3％

846

92％

700

92％

97％

97％

97％

2012

2013

2014

0

2015 (FY)

97％

1
0

2012

2013

Environmentally friendly products as a percentage of sales

2014

2015 (FY)

（％）

120

43.4

48.3

50

100

40
106
30.6

80

97

30

60

20

40

10

20

0
(FY)

0

100
80
60
40

85

73
20.3

20
0

24.7

42.6
91
24.5

24.4
75

16

17

25

2011

2012

2013

35
2014

2015

0.93
0.52

1.35

1.09

1.48
1.00

2011 2012 2013 2014 2015 (FY)2011 2012 2013 2014 2015

Group companies in Japan
Furukawa ElectricGroup companies overseas(No. registered)

41.6

1.68

CO2 emissions

Cumulative number of registered items (Furukawa Electric)
Cumulative number of registered items (Group Companies)
Percentage of sales on a single-year basis (Furukawa Electric)
Percentage of sales on a single-year basis (Consolidated)

41.1

2.1

2

92％
0

3.68
3.18

844

828

Male
Female

3

3％

3％

3％

812

4

23

22

23

800

2,976

5

Male
Female275

8％Employee turnover rate by gender (Furukawa Electric)
（％）

1,000

Male
FemaleAsia
29,665(FY)(104 tons-CO2)

41.8

43.2

45.2

45.6

13.0

15.5

16.5

16.2

13.2

24.4

24.9

24.7

21.8

21.9

2011

2012

2013

2014

2015

(FY)

(note) For the overseas CO2 emission coefficient, the coefficient for eachcountry under the GHG Protocol is used for purchased electricity,while the Japanese emission coefficient is used otherwise.

Total amount of waste matter generated

Energy consumption(1,000 kℓ)

Group companies in Japan
Furukawa ElectricGroup companies overseas

500

Furukawa Electric & Group companies in Japan
Group companies overseas(1,000 tons)

80
70

400

60

184

300

194

201

210

50

32

31

38

40
200

76

76

76

100

163

149

2011

2012

0

74

62

137

119

125

2013

2014

2015 (FY)

23

18

30
20

39

34

34

34

34

2012

2013

2014

2015 (FY)

10
0

2011

(note) Valuable resources are included in total waste generated forJapan only.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201613

Business Report
Percentage of net sales by segment (As of March 2016)
Services and Others

5.7 %54.2 Billion yen

Telecommunications

16.8 %

Metals159.2 Billion yen

12.9 %
122.4 Billion yen

Total

874.9

Billion yen

Electronics andAutomotive Systems

Energy andIndustrial Products(note 1)29.7 %

281.3 Billion yen

34.9 %
331.1 Billion yen(note 1) Figures excludes intersegment transactions■ Net sales(Billion yen)

FY 2011

FY 2012FY 2013

FY 2014

FY 2015

Telecommunications

144.5

146.1

153.9

155.2

159.2

Energy and Industrial Products

272.2

265.7

298.9

293.2

281.3

Electronics and Automotive Systems

212.0

243.7

291.0

308.2

333.1

Metals

141.6

129.4

130.7

133.7

122.4

Light Metals (note 2)

195.6

185.0

96.6

0

0

Services and Others

36.5

37.0

44.1

53.5

54.2

Eliminations

-83.6

-82.3

-83.4

-76.0

－ 73.3

Total

918.8

924.7

931.8

867.8

874.9

FY 2011

FY 2012FY 2013

FY 2014

FY 2015■ Operating income(Billion yen)

Telecommunications

4.1

1.9

7.8

5.7

7.8

Energy and Industrial Products

-0.8

2.0

1.7

4.3

7.0

Electronics and Automotive Systems

5.1

9.3

14.0

12.9

12.9

Metals

-0

-1.3

-3.1

-4.9

-1.1

Light Metals (note 2)

5.7

4.4

4.4

0

0

Services and Others

1.7

1.5

0.4

-0.1

0.5

Eliminations

0.2

-0

0.2

0.1

0

Total

15.9

17.8

25.5

17.9

27.1

FY 2012FY 2013

FY 2014

FY 2015■ Operating income (Ratio to net sales)
FY 2011
Telecommunications

2.8%

1.3%

5.1%

3.6%

4.9%

Energy and Industrial Products

-0.3%

0.7%

0.6%

1.5%

2.5%

Electronics and Automotive Systems

2.4%

3.8%

4.8%

4.2%

3.9%

Metals

0.0%

-1.0%

-2.3%

-3.7%

－ 0.9%

Light Metals (note 2)

2.9%

2.4%

4.6%

-

-

Services and Others

4.7%

4.1%

0.9%

-0.2%

0.9%

Total

1.7%

1.9%

2.7%

2.1%

3.1%

(note 2) Light Metals: Transferred to “profit/loss in equity method affiliates” under nonoperating income from the second half of FY2013 as aresult of the inauguration of UACJ in October 2013.

14

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Business Report

Telecommunications
Optical Communication is an Advanced Technology that Meets the Needs of the Communication
Age. Furukawa Electric Provides Diversified Support for Information-oriented Society.

■ Fiscal 2015 Settlement of Accounts

Fiscal 2015 Main Topics
Sep.

Consolidated sales
159.2 billion yen (2.6% up year-on-year)
Consolidated operational profit
7.8 billion yen (37.4% up year-on-year)▶ Increase production of optical fiber inBrazil▶E
 stablish optical fiber cable plant in
Morocco as our strategic base for the
African market, forecast to grow rapidly infutureExcluding countries like Brazil that were affectedby recession, sales of optical fiber cable increased
against the backdrop of active demand, centeredon North America, and network related business
was also firm.

(Operation due to launch at end of 2016)

Apart from establishing an optical fiber cablem a n u f a c t u r i n g s u b s i d i a r y i n M o ro c c o i n
September 2015, this division also established asubsidiary in Myanmar in December 2015 thatcarries out information communication network
design and communication construction
consultancy business. Furthermore, in the samemonth, the division also purchased acommunications equipment manufacturing
company in Brazil, aiming at the expansion of its
LAN solutions system business in South America.

Morocco Plant (Architectural rendering)▶D etermine the establishment of a
subsidiary in Myanmar■ Net sales(Billions of yen)(Billions of yen)

200
200
150
150

144.5
144.5

146.1
146.1

153.9
153.9

155.2
155.2

159.2
159.2
Grand Opening Ceremony in May, 2016

100
100
50
50
0
0

Dec.
2011
2011

2012
2012

2013
2013

2014
2014

2015
2015

(FY)
(FY)

▶ Acquisition of leading telecommunications
equipment manufacturing company ofBrazil■ Operating income(Billions of yen)(Billions of yen)

10
10

7.8
7.8

8
8
6
6
4
4

7.8
7.8
5.7
5.7

4.1
4.1
1.9
1.9

2
2
0
0

▶ Increase production of optical fiber in
India

2011
2011

2012
2012

2013
2013

2014
2014

2015
2015

(FY)
(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201615

Business Report

Energy and Industrial Products
Using Total Technologies to Construct Advanced Power Networks while Meeting the
Needs for Energy Saving and
Fiscal 2015 Main Topics
Environmental Preservation.
Apr.

■ Fiscal 2015 Settlement of Accounts
Consolidated sales
281.3 billion yen (4.1% down year-on-year)▶T ake over the overseas commercial rightsof underground and submarine power
cables from VISCAS Corporation

Consolidated operational profit
7.0 billion yen (64.1% up year-on-year)
Sales of power cables stagnated due to the decline
in product prices associated with the fall in thecopper price and sluggish sales in China. However,a p a r t f ro m f a v o r a b l e s a l e s o f t a p e f o r t h e
manufacture of semiconductors due to increased
demand for semiconductors for smart phones, etc.,
sales of foam products grew in Europe. In addition,
sales of electronic appliance wires & cables used inemergency electric cable were also good andcontributed to an improvement in profit and loss.
In addition to receiving the transfer of the overseas
divisions of Viscas’s underground power transmission
line and submarine power transmission line business
in April 2015, the company also plans to receive
transmission of the domestic Japanese divisions of
this business around October 2016. In addition, thecompany is also making efforts to strengthen its
business in overseas markets where demand forelectrical power infrastructure will expand, including
establishing a subsidiary in the business of parts for
power transmission and distribution such as electricalcomponents for transmission and transforming andfor overhead distribution in Vietnam in November
2015 in a joint venture with a local company.

(Billions of yen)(Billions of yen)

272.2
272.2

265.7
265.7

2011
2011

2012
2012

250
250

Jul.

298.9
298.9

293.2
293.2

281.3
281.3

2014
2014

2015
2015

▶P
 articipation in Planning the Developmentof Next-generation Offshore DC Power
Transmission Systems*Also see special feature “Laying the Foundation for
the Future of Renewable Energy”.

Oct.

▶N
 ew Contract for one of the largest
OPGW projects in Latin America

OPGW*Also see special feature “Contributing on a Global
Scale with Furukawa Electric Group’s Infrastructure
Business and Green Products”.

Nov.

■ Net sales
300
300

Construction of submarine power transmission lines▶P ower Transmission Components Joint
Venture Established in Vietnam▶R ecycled plastic cable trough has been
officially approved by the UK railway
network

200
200
150
150
100
100
50
50
0
0

2013
2013

(FY)
(FY)

■ Operating income

Green Trough®

(Billions of yen)(Billions of yen)

8
8
6
6

4.3
4.3

4
4
2
2
0
0
-2
-2

16

*Also see special feature “Contributing on a Global
Scale with Furukawa Electric Group’s Infrastructure
Business and Green Products”.

7.0
7.0

2.0
2.0

1.7
1.7

2012
2012

2013
2013

Feb.

－0.8
－0.8
2011
2011

2014
2014

2015
2015

(FY)
(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016▶O
 rder Received for Underground Aluminum
Power Transmission Cable, for Use withJapan's Largest Photovoltaic Power Plant

Business ReportElectronics and Automotive Systems
Themes Are Safety, Comfort, and Harmony with Environments. Furukawa Electric is
Challenging Transportation Possibilities
Fiscal 2015 Main Topics
Using Total Technologies.
Apr.

■ Fiscal 2015 Settlement of Accounts
Consolidated sales
331.1 billion yen (7.4% up year-on-year)▶F urukawa UACJ Memory Disk Co., Ltd.
that conducts sales, technical service,
and development management of blankmaterial for aluminum memory disks usedin hard disk drives launched operations

Consolidated operational profit
12.9 billion yen (same level year-on-year)
Sales expanded because of things like vigorous
demand for heat dissipating parts such as heatsinks and strong sales of lead-acid storage
batteries for hybrid cars and idling stop cars at thesubsidiary Furukawa Battery. On the other hand,costs for wire har nesses for automobiles
increased because of factors including increased
import costs for products manufactured atoverseas factories due to the weak yen, andconfusion during the start of manufacturing ofproducts for new vehicle models at overseas
bases.
It should be noted that the company established asubsidiary carrying out sales and technicalservices for aluminum substrate materials used in
hard disks in a joint venture with UACJ, anaffiliated company by application of the equity
method in April 2015.

Memory disk

Jun.

▶O
 ptimization of Thermal Transfer andDevelopment of New Heat Pipe

Example of a heat sink that uses the newly
developed heat pipe

Aug.

▶T
 aking Cooperation with Jung Shing Wire
Co., Ltd. (Taiwan) to the Next Level■ Net sales(Billions of yen)

350 of yen)(Billions

291.0

350
300

243.7

300
250

212.0

250
200

212.0

291.0

308.2
308.2

331.1
331.1

Ribbon wire

243.7

Sep.

200
150
150
100
100
50
50
0
0

2011

2012

2013

2014

2015

(FY)

2011

2012

2013

2014

2015

(FY)

▶D
 evelops Aluminum Harness Connection
Technology for Use with Next-generation
Vehicles■ Operating(Billions of yen) income
15 of yen)(Billions

14.0

15
12

14.0
9.3

12
9

5.1

6
3

5.1

0

12.9
12.9

“α Terminal Series” corrosion-proof terminals

9.3

9
6

3
0

12.9
12.9

Jan.

2011

2012

2013

2014

2015

(FY)

2011

2012

2013

2014

2015

(FY)

▶D
 evelopment Completed for World's Top
Class Standard Heatsink Compatible withHigh Intensity 500W LEDs

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201617

Business Report

MetalsConstant Challenges to Material Renovation and Development of New Materials are
Facilitating Unlimited Extension of Applications in Every Industry.
■ Fiscal 2015 Settlement of Accounts

Fiscal 2015 Main Topics

Consolidated sales
122.4 billion yen (8.4% down year-on-year)

Oct.

Consolidated operational profit-1.1 billion yen (¥3.8 billion Improvement year-on-year)
There was a complete recovery from the partial
suspension of the copper strip manufacturing process
due to heavy snow damage at Nikko Works in February
2014 and sales of those products largely achieved thequantities planned at the start of the term. However, thedivision’s overall sales decreased due to the fall in
product prices arising from the decline in the copper
price, and the sluggish growth in demand for copper
foil. In terms of profit and loss, in addition to therecovery of the copper business from the snow
damage, the size of the deficit reduced due to theimplementation of profit and loss improvement
measures such as contracting domestic manufacturing
capacity in copper foil business, whose
competitiveness had declined in areas such as power
costs, etc., and promoting the transfer of manufacturing
to a Taiwanese subsidiary.
Furthermore, the company carried out an absorptiontype split (simple split) in the precious metal plating
business of its Copper & High Performance Material
Products Division on October 1, 2015, making thewholly-owned subsidiary Furukawa Precision
Engineering Co., Ltd. the successor company.

▶B egins Mass Production of High
Performance Copper Alloy Strips

EFTEC®-550

Mar.

▶B
 egins Supplying Aluminum Stabilization
Superconductors to a National U.S.
Laboratory▶C opper strip production has continued to
improve favorably since integrated
production was restarted in January 2015,
and we achieved yearly production plan for
the FY2015■ Net sales(Billions of yen)(Billions of yen)

150
150
125
125
100
100
75
75
50
50
25
25
0
0

141.6
141.6

2011
2011

129.4
129.4

130.7
130.7

133.7
133.7

2012
2012

2013
2013

2014
2014

122.4
122.4

2015
2015

Copper strip

(FY)
(FY)

■ Operating income

New cpper strip plant(Billions of yen)(Billions of yen)

2.5
2.5

0
0

0
0

-2.5
-2.5

-3.1
-3.1

-5.0
-5.0
-7.5
-7.5

18

-1.1
-1.1

-1.3
-1.3
-4.9
-4.9

2011
2011

2012
2012

2013
2013

2014
2014

2015
2015

(FY)
(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Business Report

Services and Others
This segment provides support for the Group's business operations with logistics,
information processing, software development, outsourcing, etc. The segment's
other operations include real estate leasing, hydroelectric power generation, as well
as research and development of new products.
■ Fiscal 2015 Settlement of Accounts

Fiscal 2015 Main Topics
Jul.

Consolidated sales
54.2 billion yen (1.2% up year-on-year)
Consolidated operational profit
0.5 billion yen (¥0.6 billion Improvement year-on-year)
This division established FF Laser, a company related
to the manufacture of high output laser diode modules,
a key part of the industrial optical fiber lasers used in
the cutting and welding of metals, etc., in a joint
venture with FANUC in July 2015. The new company
is advancing the expansion of business in the area ofindustrial optical fiber lasers, whose diffusion isprogressing rapidly.

Established a high-power laser diode module
joint venture company with Fanuc Corporation
to develop and manufacture high-power laser
diode modules , which are a key component
in industrial optical fiber lasers

Laser diode module

Furukawa Nikko Power Generation Inc.
Hydroelectric Plant Upgrades Complete■ Net sales(Billions of yen)

60
(Billions of yen)

50
60

44.1

53.5

54.2

53.5

54.2

Uwanoshiro Power Plant

40
50

36.5

37.0

30
40

36.5

37.0

2011

2012

2013

2014

2015

(FY)

2011

2012

2013

2014

2015

(FY)

44.1

*Also see special feature “Laying the Foundation for
the Future of Renewable Energy”

20
30
10
20
0
10
0

(Billions of yen)
■ Operating
income2.0(Billions of yen)

1.5
2.0

1.7

1.7

1.0
1.5

1.5
1.5

0.4

0
0.5
-0.5
0
-0.5

0.5

0.4

0.5
1.0

0.5
－0.1

2011

2012

2013

－0.1

2014

2015

(FY)

2011

2012

2013

2014

2015

(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201619

Management
Corporate Governance
Basic Views on Corporate Governance and Guideline on Corporate Governance
Basic Views on Corporate Governance
Based on the “Furukawa Electric Group Corporate Philosophy”, Furukawa Electric Co., Ltd. and the Furukawa
Electric Group secure the transparency and fairness and strive to enhance its performance by promptly responding tochanges in the business environment and the market through efficient management based on prompt decision making.
At the same time, we ensure sound management by developing and establishing an internal control system andapplying it effectively. We uphold the basic policy of seeking to expand and develop our operations on a sustainablebasis and to raise corporate value through these efforts. In accordance with the following views, we seek to strengthen
and enhance our corporate governance.

i. We secure the rights and equal treatment of shareholders.
ii.	We consider interests of stakeholders including shareholders, and cooperate appropriately with them.
iii. We ensure appropriate information disclosure and transparency.
iv.	Given its fiduciary responsibility and accountability to shareholders, the board regards the rolesof independent directors important and carries out effective oversight of operation from objective
standpoint.
v.	We engage in constructive dialogue with shareholders who have investment policies in accordance withinterests of mid- to long-term shareholders.

Guideline on Corporate Governance
Based on "Basic Views on Corporate Governance",
we adopted "Guidelines on Corporate Governance" asa policy for enhancing our corporate governance.

Overview of Corporate Governance System
We adopt the "Audit and Supervisory Board" type ofgovernance organization under the JapaneseCompanies Act taking account of the importance of
maintaining the independence of the statutory audit
function. And we have a "Nominating/Compensation
Committee", majority members of which are outside
directors to complement oversight function of the board.

20

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Management ●●●Corporate governance organization chart
Shareholders’ Meeting

Monitoring and Supervising

Appoints

Audits account

Board of Directors

Submits
proposals
andreports

Nominating /Compensation
Committee

CSR and Risk
Management Committee

Accounting
Auditors

Submits reports

12 Directors(5 outside directors including 3 independent directors)

Consults andCommits

Appoints

Appoints

Audit & Supervisory
Board

Submits reports,
attends meetings
and audits

6 Audit & Supervisory Collaboration
Board Members
between audits(3 members are outside
and independent)

・Screens reports
relating toaccounting
・Examines
status ofoperations andassets・Screens reports relating
to business・Examines status ofoperations and assets

・Decision of critical matter
relating to business operation
・Supervises business operation

Monitors

Business Operation

Appoints

Chairman, PresidentInternal Audits(Auditing
Department)

Submits reports

Corporate Divisions
Direction

Management
Committee

・Global Group Management Division ・Finance & Procurement Division
・Strategy Division
・Research & Development Division
・Administration & CSR Division ・Production Technology Division

Provides support and guidance

Operations
Communications
Solutions Div.
・Optical Fiber & Cable
Products Div.
・FITEL Products Div.
・Broadband Business Div.
Electronics Component
Material Div.
・Electric Conductor Div.
・Magnet Wire Div.
・Copper & High Performance
Material Products Div.
・Copper Tube Div.

Energy Infrastructure Div.
・Power Cable Div.
・Industrial Cable & Power
Cable Accessories Div.

Global Marketing
Sales Div.

Automotive Products Div.
Functional Component Business・Thermal Management Solution &Products Div.
・Copper Foil Div.
・AT & Functional Plastics Div.
・Memory Disk Div.

Subsidiaries andaffiliated companies

As of June 27, 2016

Oversight and Supervisingboard oversights and determines the matters listed● Board of Directors

below:

Given its fiduciary responsibility and accountability toshareholders, the board is responsible for promoting

1.

Determination of corporate governance-related matters;

2.	Establishment and amendment of businesssustainable corporate growth and the increase of

strategies and oversight of execution of suchcorporate value over the mid- to long-term andstrategies and plans by management;enhancing earnings capability and capital efficiency. The

3.	Setting capital allocation policy;

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201621

●●● Management

4.	Appointment and dismissal of executives
including representative director and corporate

Full-time auditors attend the meetings such as

vice president, and determination of theManagement Committee which decides major business

remuneration of them (including delegating thesematters, and they report information obtained fromto Nominating/Compensation Committee);
5.	Establishment of an internal control system
relating to compliance and financial reporting and6.

policy, plan and result of auditing to the board regularly.

these audit activities to the non-Full-time and outside
auditors.
We strengthen our audit function by appointing an

risk management systems, and oversight of them;assistant staff to the auditors who is dependent ofDecision on important business matters;

management.

7.	Others prescribed by the applicable laws andregulations etc.
At present, the board consists of 12 directors with 5

At present, the Audit & Supervisory Board consists of
6 members (3 members are outside and independent).

Business Operation

outside directors including 3 independent directors in

President is responsible for management of our wholeorder to enhance transparency in decision-making andbusiness operation as a chief executive under thestrengthen its oversight functions over the management

board’s oversight.

taking outside directors' advice and opinion.

Our business consists of 14 business divisions, andOutside directors have rich management experiences

General Managers of each division are responsible forin f ina ncial ins titu tions, tr a ding comp anies orleading each business operation including subsidiaries

manufacturing companies, and expertise in the field of

and affiliated companies management.

legal or industrial governmental policy etc., in addition to

We also appoint General Managers of

the knowledge of our business area. The board respects

Communications Solutions Division, Energy

their views and opinions based on their variety of

Infrastructure Division and Electronics Component

experiences in making its decision.

Material Division in order to supervise closely related
business divisions. Furthermore, we appoint Advisors ofFunctional Components Business in order to assist● Nominating/Compensation Committee
We established the Nominating/Compensation
Committee, replacing the former Compensation
Committee in May 2015.
The committee's aim is to enhance our corporate

President’s supervising function over each business
operations and to plan integrated business strategy foreach business sector.
In addition, we appoint General Manager of Global
Marketing Sales Division that are responsible for ourgovernance securing the objectivity and transparency asgroup’s sales and marketing entirely, and General

to nominating and compensation for directors etc. The

Managers of Corporate Divisions that are responsible forcommittee consists of 5 or more members, majority ofplanning group strategy and assisting operation.

which shall be outside directors, appointed fromdirectors by board resolution.
At present, the committee consists of 6 members (4outside directors).

These officers are members of the Management
Committee, which is the highest decision-making bodyof business operation.
Management Committee, held 3 times a monthbasically, deliberates and determines major operational● Audit & Supervisory Board
Audit & Supervisory Board and each its member

quarterly reported to the Committee to foster common

auditor collect information about management under

understanding of company business among them andstatutory investigation authority and report and express

integrated business operation as a whole.

their views to the board meetings and the managementfrom an independent and objective standpoint as afiduciary to shareholders.
Auditors ensure coordination with internal audit
department through regular meetings, and report the22matters. Further, their business affairs and operation are

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

These business affairs and operation are also quarterly
reported to the board.

Management ●●●Process of Determining Officers’ Remuneration	and Avoiding Conflict of Interestsof compliance violations, and establish a system not totreat the person unfavorably because of reporting.

At Furukawa Electric, the policy on officers’
remuneration and details of each officer's remuneration

3) Risk Management System

are determined by the Nominating/Compensation

We have established our risk management system

Committee consisted the majority of the committee

and management method in the “Basic Regulations oncomprising outside directors, based on the delegation

Risk Management and Internal Control”. In addition, wefrom the Board of Directors in order to ensure objectivity

have established a system in which the CSR and Risk

and transparency of the decision-making process.

Management Committee, chaired by the President,

In addition, in the case where Directors conduct

grasps an overall picture of the risks associated with thetransactions involving a conflict of interests, they mustbusiness operations of Furukawa Electric Group andbe based on approval at the Board of Directors’ meeting

determines effective methods for evaluating andas required by law.

managing these risks.

Remuneration policy of Company’s officers
The remuneration of officers shall be determined ina way that encourages each officer to exert his/herabilities to the maximum level and proactively fulfill
his/her duties, so that the Company Group will
increase its corporate value and achievesustainable growth while contributing to society
through its business activities.

4) Information Management System
We appropriately manage and store records anddocuments related to important decisions, in compliancewith prevailing laws and internal rules. With respect to otherinformation related to our operations, the Information
Security Committee establishes uniform standards andoperates an information management system.
5) Group Company Management
In accordance with the “Regulations on Group	Reinforcing Internal Controls
Furukawa Electric establishes, develops and operates
its internal controls based on the following principles:Management Control”, administrative managers of individual
subsidiaries shall be appointed, and they shall require own
subsidiaries reporting subsidiaries’ business conditions ona regular basis, and offer management guidance tosubsidiaries. Predetermined matters shall require approval

1) Efficient Execution of Responsibilities
After setting concrete management goals for the
Medium-Term Management Plan and over the course ofof us. We also carry out a mid-term management planand budgets for single fiscal years, risk management, andcompliance as Furukawa Electric Group.

the fiscal year, all those responsible for operational
performance execute their responsibilities towardachieving these goals and regularly report their progressto the Board of Directors.

6) Securing Appropriateness of Financial Reporting
Based on the “Basic Regulations on Risk
Management and Internal Control”, we will establish the“Furukawa Electric Group Basic Philosophy for the2) Compliance Systemdevelopment and evaluation of an internal control

Upholding the basic philosophy of compliance withsystem, to ensure the appropriateness of financial

ethics and prevailing laws as laid out in the “Furukawa

reporting (J-SOX Core Policies)”. At the same time, theElectric Group Philosophy” and the “Furukawa Electric

system and responsibilities shall be clarified for theGroup CSR Code of Conduct”, we, with the President

system’s construction, development, operation, andassuming the highest responsibility, promote compliancemonitoring.

activities including in-house education and efforts toprevent and detect legal violations through our CSR and
Risk Management Committee, which is under theimmediate control of the Board of Directors, and the

Corporate governancehttp://www.furukawa.co.jp/en/company/
governance.html

Administration & CSR Division. We also have an Internal
Reporting System for the early detection and correction
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201623

●●● Management

CSR Management
Group Philosophy
Since our founding in 1884, we have worked to create the technologies andproducts that society requires. We consider it our mission to contribute to therealization of a sustainable society. We will continue to keep our eyes on the future as
we work to live up to the expectations and trust invested in us by society.

CORPORATEPHILOSOPHY

Drawing on more than a century of expertise in the development andfabrication of advanced materials, we will contribute to the realizationof a sustainable society through continuous technological innovation.

MANAGEMENTPHILOSOPHY

With an eye to the future, the Furukawa Electric Group management team pledges to:- Live up to the expectations and trust invested in us by society, with fairness and integrity.
- Apply the sum total of our expertise to satisfy our customers and grow with them.
- Continuously strive to achieve world-class technological innovation, and transform
ourselves in every area of endeavor.
- Nurture human resources at every level, so that we can become a more diverse andcreative organization.

CREDO

1. Maintain high ethical standards, and value honesty and integrity above all.
2. Continually improve, innovate, and lead, in every area of endeavor.
3.	Take a hands-on approach that addresses the reality of every situation - in theoffice, at the factory, and on site.
4.	Be proactive - take the initiative and work with others, persevering until a solution
is found.
5.	Maintain open channels of communication between departments and divisions, sothat we can share ideals and help each other grow.

Basic Policy and CSR Code of Conduct
Each of the companies in Furukawa Electric Group develops CSR activities in line withthe following Group basic policy.

Furukawa Electric Group Basic Policy on CSR（Revised March, 2011）
Based on the Furukawa Electric Group Corporate Philosophy,
・We will operate our businesses in harmony with society and the environment and endeavor tocreate social value through technological innovation, complying with laws, social norms, andethics as a member of the international community.
・We will strive to maintain and build sound and friendly relationships with all of our stakeholders
and contribute to the sustainable development of society.

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FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Management ●●●The CSR Code of Conduct defines fundamental rules

The Furukawa Electric Group CSR Code of Conductof behavior for Furukawa Electric Group executives and（Revised March, 2011）

employees to follow in conducting corporate activities

1. Human rights
2. Working conditions and environment
3. Environment
4. Products and services
5. International businesses and transactions
6. Fair competition
7. Relations with customers, partners, and society
8. Management and preservation of Company assets
9. Disclosure of information
10.	Duties and obligations of senior management
and employees

based on the Group philosophy and from theperspective of corporate social responsibility.

(Japanese)(English)(Chinese)

CSR

CSR Compliance Handbook

http://www.furukawa.co.jp/en/csr/guideline/

Basic Approach

CSR Promotion Framework

In order to contribute to the realization of a truly rich

Furukawa Electric Group has established the CSR

and sustainable society, we need to understand theand Risk Management Committee, which comprisessocial responsibilities of Furukawa Electric Group andmembers of management, as the structure for

implement policies in line with the Basic CSR Policy. We

supervising and promoting CSR activities throughout thewill promote CSR initiatives alongside our businessGroup, including risk management, internal control,

activities so that each and every Group employee is able

compliance and social contribution. We have set up theto take the lead in putting CSR initiatives into practice.

CSR Department within our Administration & CSR
Division. This department promotes CSR by facilitating
communication among various committees andcorporate departments.

Promotion
Framework

Board of Directors
Submit proposals and reports

President

CSR and Risk Management Committee
Committee chair: President
Committee members: Management
Organizer: General Manager, CSR Department
Furukawa Electric Group
Quality Management Committee

Collaborate

Furukawa Electric Group
Environment Committee
Central Disaster Prevention
and Business Continuity
Management Promotion Committee

Other corporate
divisions

Administration &CSR Division

Furukawa Electric Group Occupational
Health and Safety Committee

CSR Department

Monitoring

Collaborate

Each corporate
department

Promotion / Support

other

Business divisions (internal + Group companies)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201625

●●● Management

Stakeholder Relations
Environment

F u r u k a w a E l e c t r i c G ro u p p ro p e r l y

Customers

monitors our business practices andendeavors to establish structures for
improving them even more, so as to steadily

Localcommunities

Furukawa
ElectricGroup

meet our responsibilities to our various
stakeholders, who view us from differing
perspectives.

Employees

Main Stakeholders

Main Responsibilities

Environment-R educe emission of gases that contribute to global
warming- Promoteenergy conservation and recycling rotect biodiversity-P urtail industrial waste-C- Manageand reduce harmful chemical substances

Customers

Suppliers

Suppliers

Shareholders

Means of Communication

 ompliance with laws and regulations-C- Compliancewith the Kyoto Protocol and the
Nagoya Protocol on biodiversity-R esponse to environmental activities of the
Ministry of the Environment and other governmentorgans esearch and information exchange on-Rbiodiversity preservation through JBIB (note 1)-M aintain and improve the quality of products,
operations and services
 ffer products and services that are useful to-Osociety ialogue through regular business-D rovide solutions to issues confronting customers-Pthrough a broad array of technologies and knowhow-D ialogue at technology exhibitions, trade shows-E stablish a sound relationship founded on fairtrading in compliance with laws and regulations-P artner Meetings

 ealize CSR throughout the supply chain by-R
implementing CSR Deployment Guideline for
Business Partners-C SR surveys

 ebsite, Sustainability Reports-W-D ialogue through regular business- Feedback
interviews on results of partnerevaluations
 ustainability Reports-S

Shareholders-P rovide appropriate returns-E nsure timely and appropriate disclosure-E nhance corporate value- General
meetings of shareholders, shareholder
reports-M anagement briefings and results presentations- I nvestor visits-S hareholder plant tours

Employees-R espect human rights-C ultivate and appropriately value and reward
human resources romote health, including occupational health and-Psafety, as well as mental health- I nternal newsletter, intranet-M anagement briefings

- Support
diverse workstyles and work/life balance

Localcommunities-F actory tours-N urture future generation-P romote sporting and cultural activities- Cooperatewith and sponsor sports and traditionalevents-L ive in harmony with the natural environment andlocal communities- Support
the activities of and collaborate with localNPOs reserve the Satoyama Environment-P(note 1) JBIB:J apan Business Initiative for Biodiversity. Founded in 2008, the JBIB is a joint effort by Japanese companies to act on behalf of biodiversity preservation.

26

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Management ●●●Targets and Results (Risk Management / Internal Controls / Compliance)
FY2015
Targets

Develop a system for the
globalization of legal andcompliance functions
 eview and implement-Rcompliance education in China
and Southeast Asia

Reconstruct business
continuity management (BCM)-S upport the construction of abusiness environment-based
practical structure

Support the improved
effectiveness of internal control
in overseas affiliates- I mplement J-SOX re-educationand help to set up effective
internal control in Southeast
Asia

Achieved

Partially achieved

Not achieved

FY2016
Results / Achievement

 onducted compliance education for-Cgroup companies in China (Shanghai) onducted risk surveys of group-C
companies in China (Tianjin)-S upporting construction of BCM
mechanisms for Japanese groupcompanies

Targets

Develop a system for the
globalization of legal andcompliance functions
 xamination and implementation-Eof compliance education in China
and Southeast Asia
Expansion of the introductionof internal reporting systems tooverseas group companies
 ajor expansion in the scope-Mof companies where an internalreporting system has been
introduced, to include regions
such as China and Southeast Asia
Strengthening the developmentof cyber security measures onducted education of group companies-Cin Malaysia
 upporting the introduction of IT controls-S
for group companies in Indonesia

Message fromthe General
Managers

Message fromthe General
Managers
Yasuhiro Yonezawa-D evelopment of measures inaccordance with the Ministry of
Economy, Trade and Industry’s“Cybersecurity Management
Guidelines”

Nowadays, companies are required to respond to a rapidlychanging world with a variety of stakeholders in mind. As
Furukawa Electric Group sets about this task, CSR activities arean essential part of our survival as a business. Furukawa
Electric Group has set out a basic policy and code of conduct
for CSR in accordance with a group philosophy that seeks tomeet the expectations of our founder, in addition to developinga variety of related systems and mechanisms. In addition toconfirming the effective functioning of measures in theworkplace, we will continue to support improvements in thehandling of operational challenges.

General Manager, CSR Department,
Administration & CSR Division

Message fromthe General
Managers

責任者の

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201627

●●● Management

Risk Management
Overview of the Risk Management Structure
Our CSR and Risk Management Committee conducts regular risk assessments to determine what risks exist, define
important risks that require a companywide response and prioritize measures to counter these risks. Throughspecialized committee activities in segment-specific areas—environment, quality, safety, disaster prevention—we areworking to manage the risks that relate to our business activities.
In the event a large-scale disaster occurs or other such risk
Important Companywide Risks

materializes, the Group will establish Emergency Response• Compliance

Headquarters, headed by the president, and Site Response• Quality control

Headquarters that defines each department's roles and clarifies•L arge-scale disasters, such as earthquakes• Information security• Affiliated company controls

them ahead of time. We also conduct regular exercises on
preparing initial action manuals, stockpiling necessary supplies,
and setting up communication structures and systems toconfirm people's safety.

BCM (Business Continuity Management)[Business continuity ISO]

Emergency headquarters training

In fiscal 2015 the Electric Conductor Division received
BCMS ISO standard (ISO22301) certification in the“manufacture of copper wire products”. Copper wire is amaterial product used in Furukawa Electric Group’s leading
products, such as electric wires and cables, and a steadysupply of copper wire is always needed. ISO22301
certification was achieved thanks to the desire of the
manufacturing workplace to build a BCM system ahead of

Organizing the results of the investigation

the other divisions, based on its sense of responsibility as

the expected roles of

the highest upstream process both at the company andeach participant in theelsewhere.

event of a disaster. The
President said “In a realdisaster, you need totackle each and every
task under extreme
pressure. I want you tomake full use of theexperience we gained

Accreditation for business continuity ISO (ISO22301)

President’s message

from the Nikko Works snow damage and use this type oftraining to make thorough mental preparations for any[Emergency headquarters training]

future disasters.”

As part of emergency headquarters training for fiscal

28

2015, we considered the scenario of a large earthquake[Disaster headquarters training at the Head Office]hitting Furukawa Electric’s Nikko Works. We shared views

As part of disaster headquarters training at the Headon what support the affected works would expect from

Office, we carried out training in which the employees

the headquarters and what support could be given by theactually walked home along the routes on the maps.

headquarters to the affected works. We also confirmed

Training was carried out on the assumption of a real

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Management ●●●emergency, and the participants carried two liters of

the real purpose of the e-mail. Some people opened thewater and three meals. They walked for approximately

attachments without checking, and this reconfirmed thetwo hours, checking for potential evacuation shelters andrisks of e-mail fraud. Moving forward, we make efforts tohigh risk locations on the route. As well as confirming justraise awareness of increasing cyber risks, including new

how difficult it would be if they actually had to walk home,

tricks, and to strengthen the security of our IT

the participants learned the importance of leaving a large

environment.

bag or daypack in the office, and the need for sneakers
or similar comfortable walking shoes, but not leather
shoes. It was an extremely valuable experience.

Protection of Intellectual Property
Furukawa Electric conducts strategic and efficient
intellectual activities in line with our business andInformation Security

development strategies. As well as strategicallyInformation security is considered one of the highest-

developing intellectual property rights based on patentpriority risks the Group has to handle. Therefore we

portfolio management that recognizes trends among rival

promote various countermeasures through intergroupcompanies, we also encourage risk hedging such as

collaboration by exchanging information among thepreventing technical leaks by technology confidentiality

related divisions, from the perspectives of protecting

and protecting our prior user rights. We are also

information systems and intellectual property as well as

extending our intellectual property activities worldwide,

information management. We continue our efforts topromoting intellectual property awareness within thep re v e n t i n f o r m a t i o n l e a k s b y f o c u s i n g o n t h eGroup through education on intellectual property rights

management of hardware (mainly mobile devices) taken

and information on intellectual property risks.

outside the office and to manage IT assets through suchmeasures as software license management. We provide
Furukawa Electric Group with educational materials andChallenges and Future Policy

information on the revisions of information security-

Following our international business development, risks

related laws such as the Act on Prohibition ofthat Furukawa Electric Group faces are becoming more

Unauthorized Computer Access, the Unfair Competition

diversified and complicated each year. We particularly

Prevention Act and the Act on the Protection of Personal

recognize that risks inherent in overseas operations―

Information. In our aim for ongoing improvement, we getmainly in emerging countries―and risks from the supply
chain standpoint are our top priority issues, and we will

feedback from divisions promoting these activities.
The numerous cases of phishing fraud seen in recent

be strengthening our countermeasures against them. For

years are a threat to companies, and in fiscal 2015

example, our Global Group Management Division

Furukawa Electric discovered a fraudulent e-mail using

provides support and information for Group companies

the accounting department name. In view of this situation,

including creating the Furukawa Electric Group Business

we carried out e-mail fraud simulation training for group

Management Handbook for them in order to reinforce

companies, both in Japan and overseas. The participants

global risk management.

were sent fake e-mails and if they carelessly opened theattachments they were sent warnings and informed about

Disaster headquarters training at
the Head Office

On the route home
Briefing before departure

At the halfway point
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201629

●●● Management

ComplianceElectric Group employees and take many opportunities to

Basic Approachmake use of it. We conduct compliance education for

Furukawa Electric Group regards compliance as “notemployees at every level of the Company, from new

only observing laws and regulations, but also as acting in

recruits to directors. At the same time, we hold theme-

accordance with the values and ethics required of thebased group training and e-learning courses, and conductcompany and its employees as responsible members ofgroupwide compliance education.

society”. Each and every employee is encouraged toperform day-to-day compliance activities in line with our

Education Results (fiscal 2015)

three musts for compliance activities: to “be aware”,

Course Name

“speak” and “rectify”.

Three Musts for Compliance Activities

Speak

Hierarchybased
education(note 1)

Be aware
Rectify
1) Be aware
・Is this in line with the philosophy and CSR
Code of Conduct?
・Is this an improper practice?

Themespecificeducation

TargetParticipants

Training forexecutives

Newly appointed
executives

23

Training for
managers

Newly appointed
managers

42

Training for
managers
and assistantmanagers

Newly appointed
managers
and assistantmanagers

43

Training for new
employees

New employees

36 (note 2)Competition laws and anti-bribery
regulations

261

Subcontractor Law

505

Security trade control

594(note 1) In hierarchy-based education, manager training and new employee training
includes education on human rights.
(note 2) Figures apply to Furukawa Electric only.

・Does this run counter to society's
requirements and expectations?
2) Speak・Do not neglect it.
・Talk about it openly.
・If still not sure, take it to your boss.

Initiatives in Compliance Months
Furukawa Electric Group has designated October andNovember as Compliance Months, during which we3) Rectify

implement measures aimed at tackling the variety of・As soon as you become aware of it, fix it.

compliance issues faced by companies across our Group.

・Always improve.

Principal Initiatives during Fiscal 2015 Compliance Months
Main Initiatives at Furukawa Electric
1C
 onduct workplace self-checks according toTraining and Raising Awareness among Employees
We conduct a host of training and awareness activities

section-specific checklist<Section-Specific Checklist>
1) Anti- Monopoly Act, 2) Worker Dispatching Act

in the aim of instilling compliance awareness among all3) Subcontracting transactions, 4) Occupational safety

employees.

5) Asset protection, 6) Information security
2 Conduct workplace meetings

Compliance Education
Our primary shared educational materials are the
Furukawa Electric Group CSR Code of Conduct and its
corresponding Furukawa Electric Group CSR ComplianceHandbook. We distribute this handbook to Furukawa

30

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

3 Courses on competition laws and anti-bribery regulations4S
 ubmission of Compliance Pledge (for assistantmanagers, managers and above)

Management ●●●Employee Compliance Awareness Surveys

Anti-Bribery

We ha ve biannually continued to implement

Furukawa Electric Group formulated the Furukawa

compliance awareness surveys at Furukawa ElectricElectric Group Anti-Bribery Statement in April 2012. In

and affiliates in Japan. Designed to gauge employee

December, we published the Furukawa Electric Groupawareness and understanding of compliance, theseAnti-Bribery Guide, and we are promoting activities towardsurveys aim to encourage recognition of compliance.

creating a groupwide bribery risk management system.

Feedback is given on the results of the survey to ourGroup companies and Furukawa Electric divisions, andthe results are used to make proposals for compliancemeasures at each organization. In fiscal 2014, we madeimprovements such as adding questions related topersonnel measures and conducted the survey as an“employee survey”. In fiscal 2016, we will conduct
compliance awareness survey.

China compliance seminar
In fiscal 2014, we conducted group-type complianceseminar taking account of local laws and customs. In
fiscal 2015, we held a seminar on competition law andanti-bribery regulation at Shanghai in March, 2016.
About 30 staff, mainly Chinese, attended lectures by alawyer in Chinese and Japanese and took part indiscussions on compliance.

Internal Reporting System
Furukawa Electric Group has introduced an internalreporting system to earlier detect and correct illegal
acts. The Company has in place an internal reporting

Challenges and Future Policy

desk as well as an external reporting desk that makes

Regarding the various legal compliance measures we

use of outside third-party institutions (the Furukawa

have taken to date, we recognize as a Group that ourElectric Group Hotline), both of which allow employees

task is to expand the scope of participation of Groupto make reports anonymously. An internal reporting

companies. To this end, we will try to raise compliancesecretariat manages the content of such reports

awareness by focusing on more effective education

stringently, taking ample care to prevent people making

content with a Group perspective and enhancing its

such reports from suffering any negative impacts,

global implementation system. We will also hold more

looking into issues swiftly and taking appropriate action.

compliance seminars taking account of local laws,
languages and customs, encouraging individual initiative

Security Trade Control

under the slogan “Think and conduct compliance
together”.

Furukawa Electric Group considers security trade control
to be one of its most important responsibilities as acompany with global business operations. In accordancewith the laws and regulations that make up the internationalframework on security trade control (the export control
regime), we have improved and strengthened ourmanagement systems for cargoes and technologies thatcan be converted to weapons or military uses. In exporting
products and providing technology, we conducttransaction screenings based on our Security Trade
Control Regulations to ensure compliance with relevant
legislation and are careful to prevent circumvent tocountries of concern.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201631

Initiatives for Society
Relations with Our Customers
Basic Approach
Each of the Company's divisions has acquired ISO 9001 certification. Through initiatives such as these to standardize
our operations and work consistently to improve quality, we are striving to contribute to society by providing excellentquality products and services from a customer perspective.
Going forward, we will continue endeavoring to further enhance “quality power” throughout Furukawa Electric Groupby developing products that are attractive to our customers, based on a policy of Group-focused management.

Quality Management Policy
At every stage of our operations, from research and development to manufacturing, sales, customer service
and management, in all sections and all hierarchies, we always strive to adhere to a PDCA management
cycle based on actual facts, maintain and improve our products, customer services and the quality of ouroperations and put our management policies into practice.

Organizations for Improving Quality
Furukawa Electric has established Furukawa Electric Group Quality Management Committee, which is chaired by thepresident, as the topmost body for promoting quality management at the Group level. Directed by this committee,
Divisional Quality Management Committees led by divisional heads promote ongoing efforts to maintain or improve thequality of our products, customer services and operations.
Promotion
Framework

President
Furukawa Electric Group
Quality Management Committee

Representative Quality
Management Meeting

Committee chair : President
Committee members : Management
Organizer : General Manager, Quality
Promotion Department

Chair :
General Manager of the Production Technology Division
Members :Quality Promotion Department
Divisional Representative Quality Management

General managers of each business division

Affiliated companies

Representative Quality Management
Divisional Quality Management Committees

Targets and Results (Quality)

Achieved
FY2015

Targets

Strengthening of fundamental
Quality Power educe “failure costs” by 10%-Rfrom fiscal 201432

Partially achieved

Not achieved

FY2016
Results / Achievement

 ontinued a Quality Strengthening-C
Project to select and promote key themes
from the quality improvement activities
previously done by divisions.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Targets

Strengthening of fundamental
Quality Power educe “failure costs” by 10%- R
from fiscal 2015

Initiatives for Society ●●●Efforts to Reduce Failure Costs
The Quality Strengthening Project activities started infiscal 2014 are team activities conducted on key themes
related to failure costs selected by divisions and the
Quality Promotion Department.
There were a total of 15 themes in fiscal 2015, with 28
events for executives held to promote activities.
At the end of the fiscal year, we also held a factfinding presentation event in Quality Strengthening
Projects in order to share examples of improvements
within the whole Group, including our affiliatedcompanies.

Challenges and Future Policy
In fiscal 2015, we engaged in strengthening our monozukuri (manufacturing) capability and set about reducing ourGroup-wide failure costs as a priority goal. Our fiscal 2015 objective was the assessment of Furukawa Electric’s
separate “failure costs” (= failure costs/sales ratio), but we did not achieve this objective.

Messagefrom
Meanwhile,collating and studying the results of our Quality Strengthening Project activities has highlighted our shared
weaknesses.
theGeneralWith the strengthening of these weaknesses in mind, we intend to continue our Quality Strengthening ProjectManagers
activities and subsequently develop a Group-wide plan (or concept) for resolving quality problems.

Message fromthe General
Managers

Message fromthe General
Managers
Kazuhisa Kashihara
General Manager, Quality Promotion
Department, Production Technology Division

In accordance with our basic policy on quality control, we
promote a continuous factbased management cycle at every stage
from research and development to production, sales, service, andadministrative work, in every division, and at every level, thereby
maintaining and improving quality.
To be able to create products that are attractive to customers, we
make thorough checks at every process from product planning
through to the point of sale.
Also, based on the results of analyses of our Quality
Strengthening Project activities, we will promote "standardization"and "objective factual discussions and improvements" particularlly,
and strive to improve the manufacturing process itself.

責任者の
メッセージ

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201633

●●● Initiatives for Society

Relations with Business Partners
Optimum Purchasing on a Steady, Ongoing Basis
Furukawa Electric Group procurement policy is to establish strategic relationships with business partners to ensure
optimum purchasing on a steady, ongoing basis.

Furukawa Electric Group Procurement Policy
We will realize the optimal procurement for Furukawa Electric Group through global partnerships by:
1. Conducting CSR activities and full compliance in purchasing
2. Building strategic relationships with business partners aimed at stable and continuous optimum purchasing
3. Expanding Group and global procurement
4. Constructing BCM for stable procurement and purchasing of raw materials, materials and parts
5. Promoting continuous cost reduction activities in line with business strategy

Conducting Training on Subcontracting Transactions

procurement activities.
Furthermore, based on the results of the assessment

In order to forge sound relationships with businessand our own experiences during the suspended

partners through fair transactions that comply with rules

production that resulted from snow damage atand regulations, Furukawa Electric Group provides

Furukawa Electric’s Nikko Works, we have asked sometraining for employees on subcontracting transactions.

of our business partners for their ongoing cooperation

In fiscal 2015, in addition to continuing with the courses

with initiatives aimed at ensuring business continuation

we have conducted to date, we sought to ensureand stable supplies.

thorough awareness of the content of the Act against
Delay in Payment of Subcontract Proceeds, Etc., toIn fiscal 2015, we evaluated some 157 business
partners and provided feedback to them.

Subcontractors (Subcontract Law).

Promoting CSR in Procurement Activities
Partners Meeting and Partner Evaluation Scheme

Based on our CSR Deployment Guideline for Business

Furukawa ElectricPartners, we engage in procurement activities with “fullseeks to deepen

legal compliance and fair trading practices” andawareness among our“consideration for human rights, safety and thebusiness partners

environment”. We are also continually providing

through regularly held

encouragement at partners’ meetings by explaining thePartners Meeting,state of our efforts to our trade partners, asking for their

where we explain thecooperation with our activities, and so on.

state of the Company, our procurement policy andindividual company management strategies. For fiscal
2015, this meeting was held in June and was attended
by 94 main business partners.

34

Supply Chain BCM (Business Continuity Management)
Furukawa Electric conducts regular questionnaire

We also evaluate main business partners on the basis

surveys on its main partners about their BCM measures.

of quality, technology, price, delivery system, degree ofIn fiscal 2015, we held questionnaire surveys of 238

social contribution and financial condition, and then holdcompanies and placed the results we received from ourmeetings to provide feedback on our findings. In

business partners onto a database. In this way, we haveaddition, we discuss the results of our evaluations with

rapidly identified suppliers with a strong likelihood oft h e m t o m o re c l o s e l y a l i g n o u r a w a re n e s s o fbeing affected by a disaster.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Initiatives for Society ●●●initiatives targeting the responsible sourcing of minerals.

Conflict Minerals (note)
Regarding the handling of conflict minerals, ourapproach to responsible mineral procurement has been
to comply with the code of conduct of the EICC
(Electronics Industry Citizenship Coalition), including
setting a Group policy and informing other Group(note) D efined as minerals (tantalum, tin, gold, tungsten or theirderivatives) that originate in or near the Democratic Republicof the Congo that may help to finance armed conflict.

Challenges and Future Policy
We want to fully grasp the state of our CSR activities
along the supply chain by regularly asking our partners

companies and partners.
In fiscal 2015, in addition to carrying out ongoing

to complete a questionnaire on their understanding ofsurveys into the usage of conflict metals in mainstay

our CSR Deployment Guideline for Business Partners.

products at Furukawa Electric and its group companies,

We will also seek to deepen BCM by giving

we have actively promoted procurement from smelters

encouragement to partners based on the results of ourthat have received accreditation under the EICC’s

BCM questionnaire and manufacturing site survey, with

Conflict-Free Smelter Program. Going forward, in

the aim of improving crisis response levels along theaddition to requesting the cooperation of Group

entire supply chain. Internally, during group training heldcompanies and our business partners in the responsibleat the Procurement Department, we have held training

sourcing of minerals, we will work with the Japanand seminars on the handling of BCM in order to raise

Electronics and Information Technology Industries

awareness among members of the department.

Association (JEITA), an industry organization, on
Targets and Results (Procurement)

Achieved
FY2015

Targets

Strengthen strategic relationships
with partners (suppliers)
 ngoing implementation of the-Opartner assessment system andutilization of feedback discussions-P romote awareness of CSR
Deployment Guidelines among
Messagefromsuppliers

the- EGeneral xamination and implementation of
measures to strengthen the supply
Managers
chain by utilizing BCM questionnaire
surveys and site surveys results
 arry out conflict minerals survey-C(survey for the purposes of
updating data)

Partially achieved

Not achieved

FY2016
Results / Achievement

 onducted partner evaluations of-Cabout 157 main partner companies,
held partners meeting and provided
feedback to them onducted CSR was provided to 238-C
our business partners
 eviewed and increased the-Rnumber of procurement points (andsometimes recommended inventory)
for principle products- Active promotion of conflict materials
surveys (data renewal surveys) andprocurement from smelters that havereceived accreditation under the
EICC’s Conflict-Free Smelter Program

Targets

Strengthen strategic relationships
with partners
 ontinue partner evaluation system-Cand utilize feedback interviews
 ontinue to inform partners about-C
CSR Implementation Deployment
Guidelines-C ommunication with partners witha view to strengthening the supply
chain based on the results of BCM
questionnaire surveys-C onflict mineral survey (data
update survey)- Activity promoted procurementfrom EICC permission smelters

Message fromthe General
Managers

Ever since its foundation, Furukawa Electric has stayed in businessby supplying people with social infrastructure and contributing tosociety as a supplier of products. However, our success is not justthe result of hard works at our company. It is also thanks to thesteady delivery by our suppliers of the raw materials we use to create
products.
In the future, our business environment is likely to change evenmore rapidly. Under these circumstances, we will need to strengthen
Message fromour supply chains further in order to continue contributing to society.
the General
We intend to use partners' meetings and partners’ assessments toManagers
improve the mutual understanding we have with our suppliers, and to
Satoshi Tosaka
General Manager, Procurement Department, continue contributing to society through measures such as the
Finance & Procurement Division
promotion of CSR activities and strengthening of BCM.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201635

●●● Initiatives for Society

Relations with Shareholders
Information Disclosure Policy and IR Framework
Furukawa Electric Group Basic Policy on CSR
requires that the Group seeks to improve upon thesound, friendly relationships we maintain with all of our
stakeholders. Our Own Regulations on the Timely
Disclosure of Corporate Information meanwhile set out aframework for the disclosure of appropriate information
at the appropriate time.

Explanation on the phenomenon of superconductivity

Returning Profits to Shareholders

Based on this policy, all IR activities are conducted by

Furukawa Electric aims for management emphasizing

the Investor & Public Relations Department andcapital efficiency and has made the basic policy of its

overseen by the director in charge of IR, who is General

capitalization strategy to balance strategic investment

Manager of the Finance & Procurement Division.

for growth, the cultivation of the next generation of new
businesses, the improvement of the financial structureR elations with Institutional Investors and Securities Analysts
I n a d d i t i o n to holding management briefings

and returns to shareholders.
Under this basic policy, in the “Furukawa G Plan
2020,” the new medium-term management plan that(covering interim and year-end results and mid-term

started from fiscal year 2016, we will apply management

plans when announced) for institutional investors andresources prioritizing facility investment and R&D for

securities analysts, we actively encourage communication

profit expansion in focus business areas (infrastructure /all year round.

a u t o m o b il e m a r k e t s ) a n d t h e c re a t i o n o f n e w
businesses, strengthen the earning capacity of ourgroup and improve its financial structure, all of which will
support the sustained growth of our group. With regard
to returns to shareholders, we also positions thecontinuation of stable dividends as one of the mostimportant issues of management.
We implemented a term-end dividend of 4 yen per

Briefing for institutional investors

share for the term ended March 2016, an increase of 1
yen compared to the previous year, to increase theRelations with Individual Investors
In October 2015, we held our 8th plant tour forindividual investors. Visitors were selected by lottery

factors such as the results for the term and the progressof reductions in the balance of consolidated interestbearing debts.

from among those who responded to an open invitation,

With regard to dividends for the term ending Marchwith 150 people invited to attend out of the 416 who

2017, we are planning a dividend of 40 yen per share,

responded. During the tour, we offered participants a

the same level as that for the term ending March 2016,*

number of opportunities to get a feel for Furukawa

in overall consideration of an anticipated results forecast

Electric. We

equivalent to the previous term, future businessintroduced ourdevelopment and the return of profits to shareholders.

p r o d u c t i o n*B ased on a resolution of the 194th General Meeting of
Shareholders held on June 27, 2016, we will carry out a reverse
stock split at a ratio of 1 share for every 10 ordinary shares with aneffective date of October 1, 2016. Supposing that this reverse
stock split was not carried out, the term-end dividend for the term
ending March 2017 would be 4 yen per share.

processes for
optical fiber cablesin Mie Works andefforts of R&D in
Optical fiber plant

36

return of profits to shareholders in consideration of

Yokohama Works.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Initiatives for Society ●●●Stock Information and Dividends
General stock information (as of June 27, 2016)

Distribution of ordinary stock among shareholders

Stock Code on theTokyo Stock Exchange
Stock Exchange
Listings
Number of sharesauthorizedCommon stock issued
Minimum trading units
Shareholder register
agent
Fiscal year
Shareholders’ meeting(as of March 31, 2016)

5801

Common Stock

Treasury stock

Domestic companies, others

Tokyo Stock Exchange, First Section

0.07％
462,657 shares

7.15％
50,511,211 shares

2,500,000,000 shares

Individuals,
othersCommon Stock706,669,179 shares
1,000 shares *2-1 Yaesu 1-chome, Chuo-ku, Tokyo, Japan
Mizuho Trust & Banking Co., Ltd.
From April 1 to March 31
June each year

28.99％
204,849,923 shares

Total number ofshares issued andoutstanding

Financial
Institutions
35.32％
249,614,903 shares

706,669,179
Securities
companies

Foreign corporations
26.38％
186,412,596 shares

2.04％
14,383,889 shares*B ased on a resolution of the 194th General Meeting of Shareholders held on June 27, 2016,
we will change the number of shares in a unit of the company’s ordinary shares from thecurrent 1,000 shares to 100 shares with an effective date of October 1, 2016.

Cash dividends per common share (including forecast)

(Yen)
40

40

Year-end

Fiscal year

2013/3

2014/3

2015/330

2016/3

Interim dividend (Yen)

0.0

0.0

0.0
20

0.0

0.0

Year-end dividend (Yen)

3.0

3.0

3.0

4.0

40.0 (note)

Total dividend (Yen)

3.0

3.0

10

3.0 3.0

3.0

4.0
3.0

2017/34.0

40.0 (note)(note) S
 ince we plan to conduct a one-for-ten reverse stock split of our company’s common shares
0 effective October 1, 2016, it is factored into the amount
2012
2013
2014
2015
2016 (FY)
shown here. (The amount will be 4.0 yen if the reverse stock split is not conducted.)

Major top 10 shareholders of the Company and the Company’s capital contributions to such shareholders
Name of major shareholders
The Master Trust Bank of Japan,Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account)
Trust & Custody Services Bank, Ltd. (Mizuho Trust & Banking; Employee
Retirement Benefit Trust, Mizuho Bank Account)
Japan Trustee Services Bank, Ltd. (Trust Account 4)
Asahi Mutual Life Insurance Co.
FURUKAWA
Messagefrom CO., LTD.
BBH BOSTON CUSTODIAN FOR JAPAN VALUE EQUITY CONCENTRATED
the General
FUND A SERIES OF 620135
Fuji Electric Co., Ltd.
Managers
Trust & Custody Services Bank, Ltd. (Mizuho Trust & Banking; Employee
Retirement Benefit Trust, FURUKAWA CO., LTD. Account)
CHASE MANHATTAN BANK GTS CLIENTS ACCOUNT ESCROW

Number of shares

Shareholding
ratio

36,552,000
30,982,000

5.18%
4.39%

24,135,000

3.42%

23,992,000
13,650,500
13,290,455

3.40%
1.93%
1.88%

12,595,000

1.78%

11,000,000

1.56%

10,919,000

1.55%

10,754,914

1.52%(note)	1. Shareholding ratio above is calculated with the number which deducted 462,657 shares of the Company’s treasury stock.
2. Although not mentioned in the above table, Asahi Mutual Life Insurance Co. has placed 10,500,000 shares in a retirement benefits trust.

Message fromthe General
Managers

Message fromthe General
Mami Masuda
Managers
General Manager, Investor & Public
Relations Department, Finance &Procurement Division

Furukawa Electric’s business began with copper smelting and the
manufacture of electric wires. Through more than 130 years, thenumerous products that we manufacture based on our materials
technology support the lives of people around the world in a wide
variety of fields, including telecommunications, electric power
infrastructure and automobile.
However, because we often work behind the scenes, shareholders
and investors often tell us that they feel unfamiliar with the content ofour business.
We renewed our website in June 2016 so that it was easier to understandand people could feel the business of the company more closely. We will
make efforts to transmit appropriate information such as daily news
releases and the like in future too, so please continue to support us.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201637

●●● Initiatives for Society

Relations with Employees
remuneration, and implement individual measures from

Personnel Management

the perspective of “developing skills” with a focus on
strengthening our cultivation of global human resources.

Personnel Management Policy(note 1) This is our vision for human resources at Furukawa Electric Group.

Furukawa Electric Group’s basic approach to humanresources management is to utilize global and diverse
human resources in order to become a corporate groupthat is creative and energetic, and to embody the Group
Philosophy so that we can continue to produce human

Human Resources Development
Enhancement of Education Program

resources capable of contributing to our competitiveness.

We are training human resources who can implement

Please refer to page 24 for “Furukawa Electric Groupinnovation that managements seek. Our aim is to

Corporate Philosophy”.

develop “sensitive personnel who can think and act on
their own initiative” as we maximize our organizational
strength and spread our Group management thinking.

Challenges and Future Policy

The state of our leaders affects corporate culture andIn the 2020 Mid-term Management Plan, whichreflects in our business results, which is why we give

started in fiscal 2016, we set a mission of pursuing

training at each level to develop leadership and thediversity and autonomy in order to continue growing on

human qualities, especially sensitivity, among all our

global markets, improving our ability to respond to

employees. We work hard to cultivate an interest inchanges in the business environment, and realizing

people and a sense of respect for others.

greater creativity and practical capabilities in our“people” and “organizations”. As measures that
contribute to Group Global management, we will focus

Nurturing Leaders Adapted to the Global Sceneon “measures that strengthen top management” andWe started our Global Business Leader (GBL) training“bottom-up measures for reforming our organizationalin 2006 in order to develop personnel who will take on

culture and human resources”.

the role of management in the future. Since fiscal 2013
(note 1),

this has been reformed to Global Mindset Program

which describes our standard value judgments for(GMP), with its extra emphasis on global human resource

Specifically, we will enact the Group HR Vision

formulating personnel strategies and measures at group

education. We have also operated a Global Development

companies, increase the links between personnel

Program (GDP) for overseas local employees since 2010

systems for hiring, job placement, assessment andGlobal Human Resources Training System
Main measures contributing to the Group’s global management

Training global human resources

Expatriates

Top management reinforcement measures2D evelopment of the training curriculum, as well as
promotion of two-way human resources exchanges
through the overseas dispatch of junior employees, etc.
3 A cceleration of efforts in diversity management(measures to promote women’s careers)38

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Data Base(Conducted throughfiscal 2013)

Global Mindset
ProgramGlobal Development
Program

GMP

Assistant Diversity
Global Mind Set
managers Global Leadership

Mini MBA・Accounting

Recommend key Business Situation
・Strategy, etc.
people in eachdepartment fortraining as
global humanGlobal Challenge
resources

Program

GCP

GDP(For local
employees)

Region-specific training

1E
 nactment of the Group HR Vision, establishment anddissemination of FM-Career Design (new deployment
criteria), and promotion of support for career development

GBL

Sectionmanagers

Personnel management training

Corporate culture reform and personnel bottom-up measures

Global Business Leader

Training just prior to overseas assignment2R ealizing succession plans and strategic personnel
deployment in a way that makes use of humanresources databases

Generalmanagers

Training in basic management knowledge

1R eview of our performance evaluation systemand compensation structure (for executive andmanagement levels)

Teamwork
improvement
workshops atoverseas sites

Initiatives for Society ●●●with the aim of strengthening links within the Group, thecurriculum being par tly shared with the GMP.

Using Diverse Human Resources

Furthermore, in fiscal 2014 we launched the Global

One of our Group’s management philosophy is to

Challenge Program (GCP), which dispatches young“nurture human resources at every level, so that we can

employees to foreign countries. We are working to alignbecome a more diverse and creative organization”. It isthese various programs to develop human resources who

essential for the progress of our Group’s global

can play a dynamic role on the global stage.

management to create a corporate culture in whichmore diverse personnel can succeed.

Project to Improve GENBA-RYOKU Capabilities
In fiscal 2009, we began GENBA-RYOKU training for
all manufacturing on-site employees at our factories. To
date, the training has consisted of foreman training, midlevel worker training, and basic program, with the aim of

In April 2014, we set up a Diversity Promotion Section
to accelerate the creation of a work environment thatgives a greater active role to more diverse personnel.

	
Activities to Support the Success of Women in the Workplace

cultivating “GENBA-RYOKU”, the ability to think andSince fiscal 2005, Furukawa

act for oneself, and boosting the monozukuri capability

Electric has promoted ongoingof the workplace.

initiatives to develop our working
environment for women and topromote work-life balance. In
September 2014, we launched
the “Furukawa “V” Challenge!!” as part of our activities
to promote women’s careers. We have set out thefollowing targets and promoted networking between

7th Training Session for Mid-level
Workers - Nikko Area ParticipantsMonozukuri staff undergoing
GENBA-RYOKU training

female employees and women’s career-building with aview to establishing both “a better working environment”
and “more job satisfaction”, and we have adopted a

In fiscal 2013, we launched GENBA-RYOKU (on-site
capabilities) training for Monozukuri staff (production

comprehensive approach to implementing initiatives

division employees providing on-site support). More thanwhole. In addition to formulating a General Business20 group companies took part in training in fiscal 2014. In

Owner Action Plan under the Act concerning Promotion

fiscal 2015, we launched a special program for allof Women’s Career Activities, which was enacted in

employees to take part in at the base factories of several

April 2016, we have acquired Level Three (the highest

group companies. We will promote a manufacturinglevel) of the “L-Mark”, which is an accreditation forworkplace culture and staff culture that encourages theoutstanding companies in the implementation of

aimed at improving the mindset of the organization as acommon language of “strengthening our GENBA-

initiatives related to the promotion of women’s careers.

RYOKU”. What’s more, we will strengthen our“Monozukuri capabilities” by working together as a united[Objectives related to support the success of

Furukawa Electric Group both in Japan and overseas.

(1) W e aim to double the number of female in the

People Undergoing GENBA-RYOKU Reinforcement Training（No. of GENBA-RYOKU trainees）

600
500

Furukawa Electric

88

400

100
0

42

In order to respond to the global development of our

344

159
156

76
2010

2011

business, Furukawa Electric Group has come together to

189

292

2012

(2) We aim to double the proportion of females hired by 2018.

Group companies

183

300
200

managerial posts by 2018.

Diversity in Hiring

43
423

women in the workplace]

2013

2014

implement a variety of initiatives with the aim of securing
human resources. In addition to information exchanges to237

share know-how on hiring within the Group, we hold
2015

(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201639

●●● Initiatives for Society

Furukawa Electric Group Forum held in Tokyo and Osaka,academia-government collaboration, in our role as a

at which we conduct briefings in conjunction with Group

manufacturer Furukawa Electric has taken on numerous

affiliates, and work proactively demonstrate the appeal ofscience and engineering interns with the aim of

Furukawa Electric Group to students.

contributing to the fostering of Japanese technicians of
the future. We have already taken on more than 200

Recruitment figures by gender (Number of employees)
MaleFemaleSpecialized
Total
staff
Foreignnationals
Male
Professional
Femalestaff
Total

FY2012 FY2013 FY2014 FY2015 FY2016
48
26
21
28
45
11
6
5
8
15
59
32
26
36
60
3

0

1

0

0

2
0
2

0
0
0

0
0
0

0
0
0

0
0
0

Encouraging Employment of Disabled People

students across our various workplaces. In recent years,
we have also actively sought to accept students fromoverseas universities in addition to Japanese universities.

Internship training at Nikko Works

Furukawa Electric has established special subsidiary
Furukawa New Leaf in fiscal 2004 for the purpose of
improving our employment rate of disabled people. As of

Reforms to ways of working

March 31st 2016, Furukawa New Leaf employs 40 people

Furukawa Electric established a dedicated organization

who are intellectually challenged, and Furukawa Electricin May 2015 and launched activities to promote “reforms

has an overall disabled employment rate of 2.34%.

to ways of working” with the aim of achieving both

Furukawa New Leaf opened a new operating base insustained growth for the company and lifestyle (life)

fiscal 2013 at Mie Works, in addition to those already atsatisfaction for each individual working at the company.

Hiratsuka Works and Chiba Works, to further increase

We have promoted activities in “Reforming working

our disabled employment rate.

styles”, which aim to improve the productivity of internal
departments and the job satisfaction of individual
employees, and activities in “Reforming our organizational
culture”, which aim to promote “innovation”, “autonomy
and speed” and “collaboration” as the core values of
Furukawa Electric Group. In fiscal 2016, in addition toholding more efficient meetings and simplifying meeting

Furukawa New Leaf employees at work

materials, we took on the challenge of implementing new

Ratio of employees with disabilities (Furukawa Electric)
（％）
2.4

2.29％

2.3

home and promoting smart work using a Group Global
information sharing platform (new groupware).

2.34％

Improving the Working Environment throughLabor-Management Opinion Exchanges

2.2
2.1
2.0

initiatives, such as expanding the scope for working at

1.94％

1.94％

Furukawa Electric maintains a basic position that bothlabor and management should endeavor to engage in

1.9
1.8
2012

2013

2014

2015

(FY)

sincere discussions, and therefore we focus on issue
resolution and deepening mutual understanding.
We hold our Central Management Briefings twice

Internships

40

annually for public exchanges of opinion between laborand management. We have conducted such meetings

Ever since the Japanese government introduced afor 64 years from fiscal 1952. As of May 2016 we hadsystem of internships in 1997 as part of an industry-held these briefings 127 times. Representatives fromFURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Initiatives for Society ●●●labor and management exchange frank opinions andcompliance response and the implementation status ofshare information about a broad spectrum of items atother CSR activities.

these briefings, such as the business environment,
management, and topical matters.
We also have in place various committees such as the
Personnel System Exploratory Committee and the

Employee Data Book
Please see the URL below for Employee Data Book.

Committee for Studying Shorter Hours that are designed
to improve the working environment, which
management and labor discuss on a daily basis. These
discussions lead to improvements in various systems

CSR
http://www.furukawa.co.jp/en/csr/report/

and strengthen monitoring functions, such as
Partially achieved

Targets and Results (Personnel Development and Working Environment)
FY2015
Targets

Results / Achievement

Strengthening of global humanresource training-C onduct Global Development
Program (GDP)- Implement Global Challenge
Program (GCP)- Conducted GDP training- In GCP, assigned 4 people to One-Furukawa
course and 1 person to Frontier course(Mexico)Reinforcement of monozukuri
capability-V isualization of “essential skills”
and “expected skills” by grade
and job type-E xpand GENBA-RYOKU training
to affiliates

 et out the skills that are an absolute-S
requirement for each technician/staff member,
as well as the skills that will be required inthree to five years (expected skills), and clarify
the targets for strengthening GENBA-RYOKU- At affiliated companies (FMGW Shirone (note 1),
create GENBA-RYOKU strengthening plans
and implement GENBA-RYOKU training (basic
program) for all employees

Support for diverse work styles
Messagefromand work-life balancethe- EGeneral xpansion in scope of acquisition
for congratulatory leave in theManagers
event of a spouse giving birth-R eduction in number of employees
taking an extremely low number ofdays of annual paid leave-E xpansion of days of congratulatory leave inthe event of a spouse giving birth, from “upto five calendar days” to “five business days”-D rafting a list of work-life balance systems andpromoting awareness of the list among theemployees- The proportion of employees taking
consecutive days of leave is above 90%

Achieved

Not achieved
FY2016
Targets

Strengthening of global
human resource training-C onduct GDP- Implement GCP
Reinforcement ofmonozukuri capability-B uilding an educational
system to strengthen
Monozukuri capabilities- Implementation of GENBARYOKU strengthening activities
for affiliated companies (Japanand overseas)
Support for diverse ways
of working, and work-lifebalance eduction in number-Rof employees taking an
extremely low number of daysof annual paid leave (ongoing);
expansion in scope of thework-from-home system(note 1) FMGW: Furukawa Magnet Wire Co., Ltd.

Message fromthe General
Managers

For the Furukawa Electric Group to survive and achieve continuous growth in theface of serious global competition, it is essential that all employees with diverse
views, abilities, and backgrounds and regardless of characteristics such as age,gender or nationality, openly share their opinions and act with sincerity.
To strengthen our Group’s global management, the company set up a Diversity
Promotion Section in April 2014 to engage more actively in diversity management.
In particular, we see the pressing issue in supporting the success of women as a
top priority, and have set ourselves quantitative targets.
To raise the overall strength of the Group, we are developing tough humanresource and a more collaborative environment by making career formation andMessage fromhuman resources more fluid through planned allocation. We have done this with theintroduction of FM Career Design, a personnel system that stimulates the ability and
the Generaldesire to face challenges in individuals and the generation of innovative ideas inManagers
organizations, and the Global Challenge Program (GCP) that aims to give overseas
Takashi Fukuda
experience to young employees.
We will continue to actively take the above and other measures in future in order toGeneral Manager, HR & Administration
accelerate the creation of an environment and corporate culture where more diverse
Department, Administration & CSR
human resources play an active role.
Division

責任者の
メッセージ

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201641

●●● Initiatives for Society

Occupational Health and Safety
Basic approach to occupational health and safety management
In a ddi ti o n t o b a s ic le ga lcompliance, Furukawa ElectricGroup prioritizes initiatives that
promote “becoming a safety
conscious person” and “realizing
fundamental safety”. Our basic
approach is to aim for zeroaccidents and zero illness.

Basic policy on health and safety management•E ndeavor to eradicate accidents in accordance with the objectives of thelndustrial Safety and Health Act.
 educe accident risks by realizing “fundamental safety”.
•R•D evelop “safety conscious person” through communications and using the 5S.
•M ake seif-management by building safety and health management systems.
•P ractice Group health management activities through mental and physicalhealth improvement.

Promotion System
Furukawa Electric Group has
established the Furukawa Electric Group
Occupational Health & Safety

Promotion Framework
President

Committee (on which the President

Furukawa Electric Group Occupational
Health and Safety Committee

Representative Safety and Health Meeting

Committee chair : President
Committee members : Management
Organizer : General Manager,
Safety and Environment
Promotion Department
General Manager,
HR & Administration
Department

Chair :
General Manager of the Production
Technology Division
Members:
Divisional Representative Safety and HealthWorks general managers
Safety and Environment Promotion Department
HR & Administration Department

serves as committee chairman) as thehighest body for promoting occupational
health and safety at a group level. The
committee membership is composedof executives, and carries out
deliberation, decision-making andGeneral managers of each business division

follow-up activities for the group as a

Affiliated companies

Representative safety and healthwhole in respect to policies andDivisional occupational health and safety committees

initiatives in health and safety.

Safety and Health Activities Presentation Meetings

Site inspections by officers

We have been holding presentation meetings on the

Furukawa Electric’s

Group’s safety and health activities and awarding thesafety officers make site

best with commendations. In fiscal 2015, twelve teams

inspections at Furukawa

were selected from theElectric Co., Ltd. andS B U s ( i n c l u d i n g fourgroup companies

teams from groupwhenever an accident

companies) to giveoccurs and in accordance

presentations and receivewith performance in the previous fiscal year. They

awards from the president.

FACE (Czech Republic) givinga presentation

Site inspections by officers at
FAPH (China)

confirm how appropriate the safety measures are, andcheck the extent to which these measures have become
firmly established. In addition, they exchange opinionswith a view to achieving fundamental safety, and work

Targets and Results (Accidents)

Achieved

FY2015
Targets

One or less “accidents withworking loss days”

42

Partially achieved

Not achieved
FY2016

Results / Achievement

Two “accidents withworking loss days”

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Targets

One or less “accidents withworking loss days”

hard to prevent any
recurrences. Since fiscal
2015, they have visitedoverseas group companies
and exchange opinions withten of these companies.

Initiatives for Society ●●●Chairman’s Award received from the Japan
Industrial Safety & Health Association

Work Accident Occurrence Status
In terms of its performance in fiscal 2015, Furukawa
Electric recorded two “accidents with working loss days”,
and failed to meet its target of “one or less accidents withworking loss days”. Frequency rate of accidents
resulting in time off work (note 1) at Furukawa Electric Co.,
Ltd. stayed almost unchanged at 0.29, whereas the rate
for the domestic group as a whole note 2) fell to 0.51.
Frequency rate of accidents resulting in time off work(%)

Frequency rate (note 1)

2.0

All industries (note 2)
Whole Group in Japan

Furukawa Electric Co., Ltd. received the FY 2015
Chairman’s Award and a certificate of commendationfrom the Japan Industrial Safety & Health Association.
The entire Furukawa Electric Group was highly praisedfor promoting health and safety activities over many
years based on its “Safety
First” philosophy and for its
outstanding results, which
serve as a model for othercompanies.

Whole manufacturing industry (note 3)
Furukawa Electric

1.62

1.59

1.58

1.05

1.00

0.94

1.66

1.61

1.06

1.06

1.5
1.0

0.72

0.53

0.5

0.49
0.0

At the award ceremony
0.71

0.37

0.40

2012

2013

0.77

The certificate and trophy

0.51

0.28

0.29

improve their ability to respond to various changes. In

20142015 (FY)fiscal 2016, in addition to continuing to implement these(note 1) Frequency rate = (No. of casualties / Total actual work hours) x 1,000,000(note 2) The calculation for fiscal 2015 covered full-time employees andtemporary staff at Furukawa Electric and 37 Group companies in Japan.
See page 59 for companies included in the calculation.
(note 3) Data on all industries and the whole manufacturing industry is from
Ministry of Health, Labor and Welfare survey results

trainings, we will introduce a stress check system in2011

Meanwhile, the 2015 accident frequency rate for thewhole Group including overseas Group companies was
1.23. This included accidents both resulting in and not
resulting in time off work.

accordance with legal revisions.

Strengthening Smoking Measures
In fiscal 2003, we commenced measures to countersmoking in earnest, introducing programs to prevent
exposure to passive smoke and encourage quitting

Healthcare for Employees Working Long Hours

smoking. As a result of such activities, the percentage ofsmokers among male employees has fallen by

In accordance with the Guidelines issued by the Labor

approximately 20 percentage points over 10 years. We

Standards Bureau entitled “Measures to be Taken by

aim to switch to a smoking ban during working hours in

Employers to Prevent Health Impairment Due to Overwork”,

fiscal 2017 and to an entirely smoke-free workplace by

we strive to manage the health of employees who work longfiscal 2020 at the latest, and have continued to adopt a

hours by implementing strict limitations on working hours

multifaceted approach with the following three main

based on the results of health checkups and by arranging

approaches: sharing information, supporting efforts to

consultations for such workers with industrial physicians.

quit smoking and creating a smoke-free environment.

Mental Health Education

Responding to Asbestos-Related Health Issues

We began conducting mental health measures inDuring the period from fiscal 2005 to 2006, we once

fiscal 2002, In the past, stress control training,again investigated workplaces that previously handledworkplace mental health training with a focus on Workasbestos products and we organized medical examinations

Engagement, and Pleasant Workplace Discussion

focused on asbestos for all relevant employees. We also

Sessions aimed at improving the workplace environment

sent out notices urging retired employees who worked athave been implemented across the company.

the relevant sites to undergo medical examinations.

In fiscal 2014 and fiscal 2015, we promoted self-care

As of March 31, 2015, four people have been confirmed astraining and line care training for all employees in their

being involved in industrial accidents (of which thrree persons

early 40s and all middle-ranking managers in order todied), and symptoms have been detected in nine (all retired).
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201643

●●● Initiatives for Society

Relations with Communities
Basic Policy
Furukawa Electric Group has continued to conduct social contribution activities that are rooted in the local
community. Going forward, we will strengthen these actions further along the three dimensions of nurturing future
generations, promoting sport and culture, and living in harmony with the natural environment and local communities.

Furukawa Electric Group Basic Policy on Social Contribution Activities（Revised March, 2011）
Furukawa Electric Group will continuously undertake social contribution activities focusing on nurturing
future generations, promoting sport and culture, and living in harmony with the natural environment and local
communities, in addition to its business-related activities, in order to maintain and strengthen community
ties built over centuries and create a better tomorrow for future generations.

Implementation of Private Sector Training for Teachers note)

Visiting elementary schools to give classes

In fiscal 2015, we continued the program from fiscal

On February 12, 2016, we visited Ichihara Municipal

2014 and held private sector training for nine elementary

Elementary School in Chiba Prefecture to give a class.

school teachers from Shinagawa Ward in Tokyo from

The theme of the class was “Electromagnets andJuly 28 to 30, 2015. Over the three days, theTechnology to Build the Future”. The aims of the classparticipants learned through seminars, factory visits, andwere for students to increase their interest in studying

internal education and training experiences. Priority wasscience and to learn about the links between studying

given to the joy of making new discoveries and gaining

science and cutting-edge scientific technology, as wella sense of achievement by studying the social

as the connections between everyday life and scientificresponsibilities of schools and companies, as well as totechnology, b y carr ying out e xperiments withcarrying out safety and environmental activities, andelectromagnets. The children were amazed to see thethinking about the meaning of human resources training.

demonstration experiments using superconducting(note) S ponsored by the Japan Institute for Social and Economic
Affairs.

materials.

Training at Furukawa Electric

44

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Giving a class at Ichihara Municipal Elementary School

Initiatives for Society ●●●CSR Awards
Seventh CSR Awards
Furukawa Electric established the CSR Awards to recognize the social contribution or environmental preservation
efforts of our subsidiaries that notably exceed their regular business. CSR Award-winning companies work on a daily
basis to continue contributing to society through these activities.

SocialContributionAward

The Furukawa Battery Co., Ltd.

Environmental
Preservation
Award

Furukawa Electric Industrial Cable
Co., Ltd.

Since fiscal 2012, Furukawa Battery Co., Ltd. has

The Kyushu Plant of Furukawa Electric Industrial

visited elementary schools to give classes on the

Cable Co., Ltd. was facing a major problem in respectenvironment. The theme of the classes is “Future ways

to an increase in industrial waste and rising disposalof using renewable energy”. The classes have given

costs brought about by a rapid increase in its production

opportunities for students to get a real sense of thevolume. It was already implementing environmental

electricity use of the future.

control activities, but these activities were carried out atFurthermore, in fiscal 2015, a scientific experience

individual departments and their effectiveness acrossprogram was added to the program called

the plant as a whole was limited. It was decided to“Manufacturing and the Environment”. Students madeimprove the attitudes of all employees based on thethe MgBox (one of Furukawa Battery Co., Ltd.’s latest

concept of “reducing industrial waste = improved quality

products) out of everyday milk cartons. This helped to= better financial results”, and to improve the facilities bystimulate their interest in science and gave them anintroducing cross-linked molten salt condensation

opportunity to think about environmental conservation.

equipment and other measures. Group companies

Since the program was launched, approximately 700

located within the premises were also asked to

students at a total of 14 schools have been taught overcooperate, and implementing an open innovation madea four-year period. However, the scale of the activities isa major contribution to reducing industrial waste.

still small, and the aim is to visit even more elementary

Furthermore, these activities were recognized by theschools in the future to give environmental education

City of Kitakyushu Environment Bureau, which presentedclasses.

Furukawa Electric Industrial Cable Co., Ltd with the“Award for Outstanding Business in the Field of
Recycling and Reduction” and accredited the company
as an “Outstanding Business in the Handling of Industrial
Waste”. Furukawa Electric Industrial Cable Co., Ltd will
work hard to live up to the award by continuing topromote activities, as well as pursuing horizontal
development of these activities at other plants.

Visiting an elementary school to give an environment class

Receiving a certificate as an accredited company

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201645

●●● Initiatives for Society

Activities in eachregion Activity topics
Furukawa Electric Group conducts
various activities in each region.

Living in harmony with
the natural environment● Participated in local environment
beautification campaign
・Furukawa Electric (Chiba Works, Copper Foil
Division, Hiratsuka Works, Mie Works)
・Furukawa Sangyo Kaisha

Nuturing future generations● Supported and cooperated on work experience forschoolchildren of all ages
・Furukawa Electric (Chiba Works, Nikko Works) ・The Furukawa Battery
・Furukawa Electric Power Systems

・Furukawa Logistics

・The Furukawa Battery   ・Riken Electric Wire・Okano Electric Wire  ・Furukawa Techno Material
・Furukawa Automotive Systems
・Furukawa Electric Industrial Cable
・KANZACC ・Furukawa Electric Ecotec

・Furukawa Logistics

・Shodensha

・Furukawa Nikko Power Generation

・Furukawa Magnet Wire ・Yokohama Drum Manufacturing

Factory tour by the local
elementary school(Chiba Works, Furukawa Electric,
Furukawa Logistics)

River cleanup activities by the “Yamato-shi Environment
Improvement Society” (Okano Electric Wire)● Imprementation of private sector training (note) for teachers
・Furukawa Electric (Head Office, Hiratsuka Works)(note) Sponsored by the Japan Institute for Social and Economic Attains

Promotion sports and culture●P articipated in, sponsored, and provided a venue for
sporting events・Furukawa Electric (Nikko Works, Hiratsuka Works, Mie Works)
・The Furukawa Battery

・Foam Kasei●H osted, participated in, and supported festivals
・Furukawa Electric (Chiba Works,
Nikko Works, Hiratsuka Works,
Mie Works)
・The Furukawa Battery
・Miharu Communications

Cleaning activities as Shinmoji Seaside Park
(Furukawa Logistics, Yokohama Drum
Manufacturing)● Conducted beautification activities
outside premises
・Furukawa Electric (Chiba Works, Nikko Works
Copper Foil Division, Hiratsuka Works,
Mie Works, Copper Tube Division）

・Okano Electric Wire・Furukawa Automotive Systems
・Furukawa Electric Industrial Cable
・Furukawa Electric Ecotec
・Furukawa Logistics ・Furukawa C&B
・NTEC ・Furukawa Magnet Wire・Furukawa Precision Engineering
・Furukawa Electric Power Systems
・NTEC
・Furukawa Nikko Power Generation
At Yawata Seaside Festival(Chiba Works, Furukawa Electric)

46

・Furukawa Magnet WireFURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Off-site cleanup activities(Furukawa Electric Ecotec)

Initiatives for Society ●●●Living side by side with local communities● Supporting and working with NPOs
and special-needs schools
・Furukawa Electric (Nikko Works, Copper
Foil Division)・Furukawa Nikko Power Generation● Participated in regional exhibition

Athletic festival of Imaichi special-needs school(Copper Foil Division, Furukawa Electric)・Furukawa Electric (Chiba Works)

Other activities● Supported the restoration of the Tohoku region
・Furukawa Electric (Chiba Works, Hiratsuka Works)● Donated and raised funds for charities

・Furukawa Sangyo Kaisha

・Furukawa Electric (Yokohama Works)
・The Furukawa Battery   ・KANZACC
・Miharu Communications ・Furukawa Nikko Power Generation

At a Fukushima regional produce sales event jointly hosted with VISCAS
Corporation (Chiba Works, Hiratsuka Works, Furukawa Electric)
Installing vending machines to collect for the Red Feather
Community Chest Movement(Yokohama Works, Furukawa Electric)● Donated blood・Furukawa Electric (Copper Foil Division, Yokohama
Works, Hiratsuka Works)
・The Furukawa Battery

・Furukawa Precision Engineering● Conducted factory tours for employees’ families
・Furukawa Electric (Chiba Works, Hiratsuka Works)

Volunteer activities at the“Millennium Hope Hills” in
the Ainokama Area of Miyagi
Prefecture(Furukawa Sangyo Kaisha)

Challenges and Future Policy
Alongside our Group’s basic social contribution policy, Furukawa Electric has given much consideration toprograms that take advantage of our uniqueness, on themes that are of deep concern to our employees.
As well as various ingenious community-based activities by our Group companies and Furukawa Electric’s
various works, research laboratories, and branches, in fiscal 2014 we implemented private sector training for
public school teachers. What’s more, in fiscal 2015, Furukawa Electric implemented an educational program inwhich we used our unique technology as an educational resource to give science classes at schools.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201647

Initiatives for Environment
Environmental Management
Furukawa Electric Group Basic Environmental Policy
Basic Philosophy
We, the employees of the Furukawa Electric Group, recognize that conservation of the global environment is aserious issue confronting the international community, and we pledge to contribute to a sustainable future for theworld through technological innovation that utilizes our strength in advanced materials.

Action Guidelines
1.	
We shall comply with environmental laws and regulations as well as the demands of our customers and others,setting ever higher environmental targets as we continuously improve our global environmental conservation efforts.
2. W
 e shall strive to develop products that are friendly to the Earth, and create new environmental businesses.
3.	We shall strive to reduce environmental risk by incorporating anti-climate change and resource
conservation/recycling considerations, as well as a reduction in the use of environmental impactcausing substances, across the entire product lifecycle.
4.	We shall evaluate the ecological impact of all of our businesses, and strive for the conservation of
biodiversity and sustainable use of resources.
5.	
We will seek harmony with the natural environment and local communities through dialogue with our stakeholders.

Environmental Management Organization
I n A p r i l 2 0 13 , w e u n d e r w e n t o r g a n i z a t i o n a l
restructuring, transitioning to a strategic business unit

Environmental Education System andEnvironmental Education Programs

system. We also renamed our highest-level advisory

Furukawa Electric Group is engaged in a variety ofbody related to environmental management theenvironmental education activities in order to raise

Furukawa Electric Group Environment Committee andenvironmental awareness among its employees andpromoted environmental management under a new

help them to gain information necessary to conduct thestructure. The “Council of Environmental Managers” wasenvironmental activities of the Group.

set up under the Committee in order to promote theIn fiscal 2015, a total of 54 employees undertook

smooth development of environmental management

ISO14001 internal environmental auditor training, 18

decision-making, and a variety of special committees

employees took FGMS (note 1) auditor training, and 35

were consolidated and merged.

managers and environmental supervisors from Furukawa
Electric Group took supplementary training in relation to

Promotion Framework

ISO14001: 2015. Environmental training is also
implemented on an ongoing basis as part of training for

President

staff, such as newly-appointed section managers andFurukawa Electric Group
Environment Committee
Committee chair:
General Manager of the Production Technology Division
Committee members: Management
Organizer: General Manager, Safety & Environment Promotion
Department, Production Technology Division
Technology & Engineering Division
Planning Department Manager

Committee for Development ofEnvironmentally Friendly Products

Divisional Environment
Committees

Special Committee

Affiliated Group Companies
in Japan and Overseas(note 1) Furukawa branding Green products Management System

From fiscal 2010, Furukawa Electric presented
environmental activities awards in the following threefields with the aims of improving environmental

Council of Environmental
Managers
Environment
Committee of Works

middle-ranking Monozukuri staff.

Environmental activity award system

Safety and Environmental
Promotion Department

48

Environmental Education

awareness and raising the level of environmental
Subcommittee
Meeting

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016activities: “sales promotion activities for environmentallyfriendly products”; “global warming prevention activities”;

Initiatives for Environment ●●●and “Group activities”. However, the award system was2005” and covers Furukawa Electric Co., Ltd. and 24

combined into a single category in fiscal 2014 under thedomestic group companies.

“environmental contribution awards”. Furthermore, in

The costs of environmental conservation activities inorder to promote the horizontal development offiscal 2015 were 3.1 billion yen in expenses and 1.0

environmental initiatives, a presentation meeting is held

billion yen in investments. This represents a 0.3 billion

once a year to showcase outstanding examples of

yen fall in expenses and a 0.3 billion yen increase inenvironmental activities.

investments against the previous fiscal year. Energy
costs fell by 1.5 billion yen as a result of consolidating
our manufacturing bases through reforms of theEnvironmental Accounting

business structure.

Furukawa Electric Group has introduced

Please see P.59 for details of the companies included

environmental accounting and works hard to promotein the scope of data collation. Please see below for theefficient and effective environmental activities throughcollated results of environmental accounting.

the quantitative identification of environmental
conservation costs and effects.

CSR

Collation is implemented in reference to the Ministry of

Messagefrom “Environmental Accounting Guidelines
the Environment’s
the General
Environmental education programs
Managers
Category of educational
training

Content

Education for new recruits(once a year, mandatory)

General environmental conservation activities

EMS activities (asneeded, mandatory)

Environmental Policy and purpose, goals andgeneral knowledge pertaining to the environment

http://www.furukawa.co.jp/en/csr/

New recruits

Generalemployees

Mid-career
employees

Newly appointed
Management
section managers

Training for new recruits

ISO14001-related education Requirements of ISO standards, environment
regulations, procedures for internal environment
audits, various drills(two-day course)(twice a
Messagefromyear, voluntary)brushup course
theOne-day
General(once a year, voluntary)
Managers
Environmental subjects(as needed, voluntary)

Trends in environmental regulations, various drills
to brush up auditing skills
Environmentally considerate design
Environmental regulations
Control of chemical substances contained in products

Consolidated environmental
Seminars by experts on priority issues
management seminars

Message fromthe General
Managers

責任者の
メッセージ
Hisashi Iwama
General Manager, Safety& Environment Promotion
Department, Production
Technology Division

In respect to environmental activities, we have promoted environmental
conservation activities in cooperation with our colleagues around the world inaccordance with the group management policy. Regarding environmental activities
in fiscal 2015, we discussed our medium to long-term targets in anticipation of
COP21 and promoted the following three priority policies: I. Resource conservation(energy conservation); II. Social contribution; and III. Prevention of pollution. It is thesocial responsibility of manufacturers to ensure that customers can use theirproducts and services in safety and with peace of mind. What’s more, we want our
products and services to help society as a whole become “bright and fun”, and ourbusiness activities to contribute to the conservation of the global environment.
Accordingly, the first thing we need to do is efficiently use limited resources andenergy during manufacturing in order to achieve reductions in greenhouse gases(GHG). At Nikko Works, we have increased the production of products carried out
using hydroelectric power. Secondly, in our production development and production
activities, we need to prevent pollution, including the appropriate management ofchemical substances etc., and to give consideration to biodiversity. At Yokohama
Works, we have launched initiatives to cultivate endangered species of flowers thatonce flourished. We will continue to promote environmental management activities
that allow us to contribute to the realization of a truly rich society, while leaving
behind a beautiful natural environment for future generations.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201649

●●● Initiatives for Environment

Material Flow
Environmental Impact of the Furukawa Electric Group in Fiscal 2015
We tallied data for Furukawa Electric, 33 Group companies in Japan, and 54 Group companies overseas—a total of
88 companies.
Please refer to page 59 for a list of all applicable companies.

INPUT
Category

OUTPUT

Domestic Overseas

Unit

Category

Raw materials
165,182
7,059
2,259
534
22
8
0
3,658
0
0
31,182

168,166
26,455
7,618
34
3,038
40,119

t
t
t
t
t
t
t
t
t
t
t

Energy

7,393

8,155

TJ

Electricity(purchased electricity)
Electricity(hydroelectric electricity)
Electricity (solar electricity)
City gas
LPG
Heavy fuel oil A
Kerosene
Light oil

496,255

682,749

MWh

86,640

-

MWh

8
5,515
16,996
8,313
1,729
223

8,361
2,251
7
233
47

MWh
1000 m3
t
kl
kl
kl

Water

19,8872,6491000 m3

16,272
2,881
734

42
309
2,297

1000 m3
1000 m3
1000 m3

50,373-

Furukawa Electric

Total waste
generated (note 4)
Final waste disposal
Recycling amount33,571

18,341t

241
7 works,
32,18033 Group companies
Atmospheric emissions
in Japan
350,740
CO
and
SOx
46
222
54 Group companies NOx
Soot10
overseas

10,2898,087

tt

456,388
-

t-CO2
t
t
t

2

Chemical substances
Volume emitted
Volume transferred

168
146

-

16,9201,6541000 m3

16,451
15,248
1,185
18
469

475
243
0
232
1,179

1000 m3
1000 m3
1000 m3
1000 m3
1000 m3

40
34
22

-

t
t
t

Product shipping volume306,005―t

Product collection volume

10,159

―

t

579
0
325
595

-

t
t
t
t

1,121

99,886

Wastewater
Public waterways
Rivers
Sea
Other
Sewer
BOD
COD
SS

Chemical substances
Volume handled (note 1)t

Packaging (note 2)
Cardboard
Wood
Plastic
Paper

Paper

698
1,161
85
49

1,463
1,923
570
-

t
t
t
t

47

-

t

(note 1) PRTR-listed substances(note 2) Cardboard, wood, plastic, and paper used in product shipping(note 3) Including valuable resources (Japan)(note 4) Emissions off-site

50

Unit

Waste (note 3)

CopperAluminum
Iron
NickelChromium
Manganese
Magnesium
Other metals
RubberGlass
Plastic

Industrial water
Groundwater
Tap water

Domestic Overseas

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Type of cable
Plastics
MetalsOther

Volume of water
recycled and reusedtt1000 m3

Initiatives for Environment ●●●Targets and Performance of Environmental Conservation Activities
Achieved

Partially achieved

Not achieved

Furukawa Electric Group (Japan)
Activity

Fiscal 2015 activity goal

Fiscal 2015
results

Reduction of absoluteamount of waste

3% reduction from fiscal 2012

0.8%
reduction

1% decrease from fiscal 2015
(Specific consumption)

Decrease zero emissions
rate

0.3% or less0.07%
(achieved)

Zero emissions rate of 0.3%
or less

Reduction of water
consumption

2% decrease from fiscal 2013in specific consumption

3.6% increase

1% decrease from fiscal 2015
(Specific consumption)

Greenhouse gas emissions

3% reduction from fiscal 2012

16.1%
reduction

3% reduction from fiscal 2013

Energy consumption

3% reduction from fiscal 2012

16.5%
reduction-

Energy consumption rateduring production (sales)

6% decrease from fiscal 201218.5%
reduction

6% decrease from fiscal 2013(Specific consumption)

Energy consumption rateduring transport

3% reduction from fiscal 2012

17% increase

1% reduction from fiscal 2015
(Specific consumption)

Energy consumption rate in
offices

3% reduction from fiscal 2012

4.3%
reduction

Conservation of biodiversity

Participation in regional
biodiversity conservation

Implemented

Environmentally friendly design activities

Sales ratio of environmentallyfriendly products 30% or higher
Contribution to reducing
environmental burden CO2
reduction of 50,000 tons or higher

Waste reduction
activities
Efficient utilizationof water

Activities for theprevention of
global warming

Activities for the
managementof chemical
substances

30.6%
74,000 tons

VOC emissions

3% reduction from fiscal 2012

9.9%
reduction

Products containing
chemical substances

Suitable management

Noabnormalities

0 accidents, 3 or lessabnormal incidents

accidents 3
abnormal 4

No. of environmental accidents/abnormal incidents

Evaluation

Fiscal 2016 environmental
conservation activity goals

1% decrease from fiscal 2015
(Specific consumption)
Protecting biodiversity andusing sustainable resources
to contribute to society
Sales ratio of environmentallyfriendly products 35% or higher
Contribution to reducing
environmental burden CO2
reduction of 60,000 tons or higher
Reducing environmental risk
at all stages of a product’s
lifecycle
0 accidents, 3 or lessabnormal incidents

30 of our overseas Group companies have already obtained ISO14001 certification. These companies have set goals according to their unique circumstances for five
shared environmental conservation activities for fiscal 2014 (reduced waste, reduced water consumption, reduced greenhouse gas emissions, reduced energy consumption
rates, and management of chemical substances), and are working toward achieving these goals.

Activities Targets and Performance in Fiscal 2015

fiscal 2018, and we will implement thorough measuresacross the group with a view to achieving our targets.

Furukawa Electric Group sets out environmental

For overseas group companies, we have set a

conservation activities targets for each fiscal year innumerical target of a 1% reduction against fiscal 2015

accordance with the three-yearly mid-term(base units) in respect to the three common targets

environmental targets. As the last year of the three-year(water usage, greenhouse gas emissions and energy

plan measure against fiscal 2012, in fiscal 2015 we haveconsumption) set as standard objectives across theworked as an entire group with the goal of achieving

group, both in Japan and overseas.

these targets.
We achieved our group target in greenhouse gas
emissions as part of our activities aimed at helping to

Midium and lomg term targets

prevent global warming. This included the concentration

Furukawa Electric Group has identified threeof our manufacturing bases for a number of products,“materialities” (greenhouse gas measures, effective use

as part of our business structure reforms. In respect toof resources, and conservation of biodiversity), and set

energy consumption, both Furukawa Electric Co., Ltd.

medium to long-term targets by 2020. Regarding theand its group companies achieved their targets.

medium-term target for greenhouse gases, we aim to
reduce CO2 emissions by at least 26% by 2030 against

Activity Targets in Fiscal 2016
Fiscal 2016 is the first year of the three-year plan to2013 levels, based on the Japanese draft pledge. The
long-term target is for reductions of at least 50% in CO2emissions by 2050, in reference to IPCC AR5.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201651

●●● Initiatives for Environment

Environmentally Friendly ProductsE nvironmentally Friendly Products and thee-Friendly Accreditation System

Environmentally friendly products as a percentage of sales
Cumulative number of registered items (Furukawa Electric)
Cumulative number of registered items (Group Companies)
Percentage of sales on a single-year basis (Furukawa Electric)
Percentage of sales on a single-year basis (Consolidated)

Furukawa Electric Group certifies and registers asenvironmentally friendly products those products withimproved performance compared to existing products in120

the categories of materials and parts purchasing and100

manufacture, use, distribution and disposal.

41.1

80
60
40

We have created the “e-Friendly” environmental markto identify such environmentally friendly products. This

0

41.6

85

73

42.6
91

50

43.4

48.3

97

40
106
30.6
30

24.7

24.5

16

17

25

2011

2012

2013

20.3

20

The e-friendly mark（％）(No. registered)

24.4
75

10

35
2014

20

2015

0
(FY)

Environmental Performance Indicator “Visualization”
As part of its efforts to create (visualize) indices formark is placed on those products.

environmental performance, Furukawa Electric Group

Categories of Environmentally Friendly Products
The Group's environmentally friendly products belong

has promoted “visualization” of CO2 emissions by using
life cycle assessments (LCA).
We set a target of promoting LCA calculations at

to one of four categories described below.

group companies from fiscal 2013 based on the CO2

Environmentally friendly product categories

emissions base units for each product that were

Category

Content

Prevention of
global warming

Products with functions that help in the
reduction of emissions as well as theabsorption and stabilizing of greenhouse gases.

Zero emission

Products made from recycled materials,
products designed with easyto-recycle
components, products made from materials
or with design facilitating volume reduction
for lowering waste volume, products
designed to share common components
with other products or products designed ascommon components.

Elimination ofmaterials that havean impact on theenvironment

Products that do not lead to an increase in
the use of ozone-depletive substances during
the manufacturing process, do not containharmful substances above regulatory limits
and do not generate harmful substances
above these limits during use or disposal.

Resource savings

Products that result in overall energy savings
by such means as reducing the use of raw
materials and components as well as scarce
resources, featuring enhanced longevity,
allowing easier product and component
maintenance, and reducing the use forresources in packaging.

established by fiscal 2012. By fiscal 2015, we had
carried out LCA calculations for leading products at 21
companies. The results of the calculations will be used
to promote the GHG Protocol (note 1), as well as intechnical materials and sales promotion pamphlets, andin research and development for the environmentallyfriendly products of the future.
(note) G HG Protocol: An international guidelines for the method of
calculating corporate greenhouse gas emissions

	
Initiatives to Reduce CO2 Emissions from
Products during Use
B a s e d o n i t s t r a c k re c o rd i n e n v i ro n m e n t a lperformance indexing, we are working to visualize thereduction of CO2 which is emitted when our products
are at the stage of being used. According to theestimate for fiscal 2015, total emission volume in thedomestic market of our mainstay products, copper foil,

Expanding Environmentally Friendly Products

52

rectangular magnet wire and semiconductor laser,
amounted to 74,000 tons - CO2/year. Going forward, we

We are working to increase our overall percentage ofwill try to expand sales of each product category andenvironmentally friendly products. We set targets based

increase the number of contributing products, so thaton percentage of sales, and confirm our progress andwe can develop our activities to tackle environmental

success on this basis.

issues through our products.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Initiatives for Environment ●●●Preventing Global Warming

Reduction of CO2 emissions throughcopper foil for electric car batteries
Copper foil for electrode material of lithium-ion batteries

Copper foils contribution
to electric cars

Reducing CO2 Emissions
Measures at our factories

Lithium ion battery
Negative
electrodeterminal
Separator
Negative
electrode
plate

Positive
electrode

Separator

The main greenhouse gas emitted by Furukawa
Electric Group is CO2 that arises from the consumptionof energy sources, such as electricity and fuel. In orderto achieve emissions reductions particularly in our
manufacturing processes, which account for a large
percentage of our emissions, we have implemented
energy-saving measures such as streamlining of the
manufacturing process, switching fuels, upgrading toElectrodeposited
copper foil for
lithium-ion battery:“NC-WS”

Positive
electrodeplate

highly efficient equipment, and insulating hightemperature parts of equipment.
CO2 emissions for the domestic group in fiscal 2015
were 351,000 MT/year, which was a 20.1% reduction

CO2 reduction of semiconductor lasers

against fiscal 2000. CO2 emissions for the overseas

Narrow-bandwidth-FBT (tunable wavelength laser)

hard as a group to promote activities that reduce
emissions.

2600 μm
500 μmTunable wavelength
laser chipgroup were 456,000 MT/year. We will continue to work

30 mm
Transponder(optical transceiver)
Tunable wavelength
laser module

CO2 emissions(104 tons-CO2)Group companies in Japan
Furukawa ElectricGroup companies overseas

100

75 mm

80

30.5 mm

41.8

43.2

45.2

45.6

13.0

15.5

16.5

16.2

13.2

24.4

24.9

24.7

21.8

21.9

2011

2012

2013

2014

2015

60

Tunable wavelength laser assembly(with control circuit)

Wavelength divisionmultiplexing (WDM)
transmission system

40
20
0

CO2 reduction of enameled extruded rectangular wire
Rectangular wire for HV motors(FY)(note) For the overseas CO2 emission coefficient, the coefficient for eachcountry under the GHG Protocol is used for purchased electricity,while the Japanese emission coefficient is used otherwise.

CO2 emissions (Scope 1, Scope 2) (Domestic)
Extruded resin layer(104 tons-CO2e)

Scope 1

Scope 2

50

Enamel layer
Rectangular conductor

40
30

27.5

20
10
0

16.4
2000

26.6

30.2

31.7

29.0

10.7

10.2

9.5

9.0

9.3

2011

2012

2013

2014

2015 (FY)25.8

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201653

●●● Initiatives for Environment

CO2 emissions (Scope 1, Scope 2) (Overseas)(10 tons-CO2e)
4

Scope 1CO2 emissions related to transportation (Furukawa Electric)(t-CO2)

Scope 250

20,00019,100

40
30
20

36.4

37.9

40.4

39.9

5.4

5.3

4.8

5.7

2012

2013

2014

2015 (FY)

Energy consumption(1,000 kℓ)

15,30014,300

5,000

10
0

14,90010,00014,80014,50015,000

0

2006

2011

2012

2013

2014

2015 (FY)

Measures to disclose environmental information

Group companies in Japan
Furukawa ElectricGroup companies overseas

Furukawa Electric Group responds to requests from500

external organizations to provide environmental

400

information. Since fiscal 2008, we have answered
184

300

194

201

210

enquiries from CDP (note 1) , which is the largest
organization of its kind in the world. Since fiscal 2013,

200

76

76

76

74

62

100

163

149

137

119

125

2011

2012

2013

2014

2015 (FY)0

we have handled supply chain program requests from
customers in the communications and automotive fields.
Since fiscal 2014, we have calculated emissions scopes
1, 2 and 3 (note 2), increased the volume of information wecollect, and strengthened our benvironmental

information management system with the aim of

Initiatives in Logistics

disclosing environmental information at a global level.

The entire Furukawa Electric Group transported
213,000,000 ton-kilometers during fiscal 2015—adecrease of 5.9% from fiscal 2014. Of this, Furukawa

Greenhouse emission burden for CDP disclosure (1,000 t-CO2e/year)

Electric itself transported 119,000,000 ton-kilometers,
Scope 1 (direct emissions)150

result, we were able to keep CO2 emissions down to

Scope 2 (indirect emissions)14,300 tons—3.8% down from fiscal 2014.

Scope 3 (other)

Unfortunately, our output rate rose 8.0% since fiscal(note 1) C DP: CDP is an organization formed from institutional
investors for the purpose of managing a project requiring
companies to disclose their strategies for climate change
and the specific amount of greenhouse gases theygenerate.
(note 2) Scopes 1, 2, and 3
 irect emissions from offices caused by the use of
Scope 1: D
fossil fuels, etc.
Scope 2: Indirect emissions from outside offices caused by theuse of electricity, steam and heat
Scope 3: As other emissions, Indirect emissions from purchased
product services, business trips, commuting, andupstream shipping, etc.

2012, our base year for this goal. We will continue withinitiatives to promote modal shift, increase loading rates
and encourage joint shipping.
Modal shift (note 1) and specific consumption (note 2) (Furukawa Electric)
Specific consumption
Rate of modal shift(MJ/ton-kilometers)

2.0
1.6

1.90

1.64

1.2
0.8
0.4

1.58

1.64

7.4

9.1

(%)

1.66

1.71

15
12

9.7

8.8

Reducing Waste

3

3.6

0

2006

657
1,949

9
6

6.6

0

2011

2012

2013

2014

2015 (FY)(note 1) Modal shift rate: percentage of total transportation using
railways or shipping(note 2) Base unit: Energy consumption per transportation unit (MJ/t-km)

54

FY2015which was a decrease of 8.4% from fiscal 2014. As a

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Waste Reduction Initiatives
In 1993 Furukawa Electric Group began its efforts toincrease waste recycling, and since fiscal 2001 has

Initiatives for Environment ●●●continued its zero emissions activities with the goal of
reducing total emissions of industrial waste disposed inlandfills to less than 0.3% (the base value was cut infiscal 2014 from 1% to 0.3%).

Water Resources
Effective Utilization of Water

Due to our efforts to thoroughly separate garbage andSince fiscal 2013, Furukawa Electric Group has

promote recycling, the entire Japanese Group reduced

promoted effective water use as one of its activities

its amount of non-recycled waste to 1,170 tons in fiscal

targets, and identified water intake and wastewater at

2015, an 88% reduction from fiscal 2004. The entire

each base. It has also set targeted reductions in base

Japanese Group also reduced the amount of waste

units versus fiscal 2015 sales. Water intake at Furukawa

disposed in landfills to 20 tons, a 99% reduction from

Electric Group in fiscal 2015 was 2,200 m3/100 million

fiscal 2004 (this excludes waste disposal companies

yen, which was a 1.7% increase against fiscal 2013.

within the Group).

Wastewater was 1,700 m3/100 million yen, which was a

In fiscal 2014, we launched activities aimed at

2.9% decrease against fiscal 2013. Furukawa Electric

reducing our total waste output, including valuable

will continue working hard to save and recycle water,

resources. However, the impact of restructuring meant

and to manage water quality and wastewater volumes.

that we only achieved a reduction of 0.8% against a

Furthermore, at Nikko Works, we have launched antargeted reduction of 3% against fiscal 2012 for the

initiative to identify actual usage of water resources fromJapanese group (there was an increase in waste ofeach individual facility.

0.6% at group companies and a reduction of 1.5% at
Furukawa Electric Co., Ltd.). Unfortunately, this meantthat we failed to meet our target (with the exception ofVolume of water intake (water source)waste disposal companies within the group).

Inside Furukawa
Electric Group

Total amount of waste matter generated
Furukawa Electric & Group companies in Japan
Group companies overseas(1,000 tons)

Volume ofrainwater use

80

60

32

31

38

40

20

0

36

39

2004

2011

23

18

34

34

34

34

2012

2013

2014

2015 (FY)

Volume of recycled water(note) Valuable resources are included in total waste generated forJapan only.

Direct landfill disposal

Volume of wastewater (drainage)

Furukawa Electric & Group companies in Japan
Group companies overseas(1,000 tons)

20

Consumption unit of water intake and wastewater
15.3(m3/million yen)

15

3.0

10

5

0

7.2
2.4
2004

10.3

8.6
5.6

2.5

2.09

2.0
1.5

0.9

0.7

0.4

0.3

0.2

2011

2012

2013

2014

2015 (FY)

1.76

2.31
1.99

1.0

2.25

2.20

1.92

1.93

1.87

Water intake consumption unit
Wastewater consumption unit

0.5
0.0

2.16

2011

2012

2013

2014

2015 (FY)FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201655

●●● Initiatives for Environment

Chemical Substance Management
Green Activities
Response to Customer Requests
When Furukawa Electric Group receives a request fromchemical substances contained in products and its
management status as well as by confirming the data ofchemical substances contained in products.

Chemical Substance Management Activities

a customer for information concerning chemical

Furukawa Electric Group undertakes voluntary

substances in our products, it conducts a thoroughinitiatives to reduce emissions of harmful chemical

environmental examination. We also monitor trends in laws

substances. In particular, we make every effort toand regulations covering the chemical substances

actively reduce emissions of volatile organic compounds

contained in products and compile and update data as it(VOC), one cause of photochemical smog. In fiscal 2015

becomes available, allowing us to respond promptly to

we achieved a reduction of 9.9%—far surpassing ourcustomer requests. Furthermore, by collecting information

goal of a 3% reduction from fiscal 2012.

from industrial organizations and conducting seminars, aswell as participating in research groups, we can monitor
environmental regulations and standards and social issues/
items of concern. This enables us to incorporate customer
needs in our environmental conservation targets.

Emissions of volatile organic compounds(Group Companies in Japan)(tons)

300

Response to overseas regulations and managementof chemical substances contained in products
Furukawa Electric Group establishes a management
system for chemical substances contained in products
for major operational bases and affiliated companies,
strengthens the environmental product regulations andgrasps the environmental risk that should be lowered,and implements measures depending on theirGroup companies

303
107

295
103

200

100

0

196

192

2012

2013

251
99

273
100

152

172

2014

2015 (FY)(note) Volatile organic compounds are the 118 substances specified by
The Japanese Electric Wire & Cable Makers’ Association(January 2012 edition).

importance. Each time a new SVHC (Substance of Very

Appropriate Management of Chemical SubstancesHigh Concern) (note 1) is added to the candidate list of

At Furukawa Electric Group, we confirm the properties

an environmental product regulation named the EU

and applicable laws and regulations regarding all

REACH regulation, we investigate the status of its

chemical substances we use during the manufacturing

usage. In fiscal 2015, we conducted an environmental

process on their Safety Data Sheets (SDSs) andinspection on 168 substances, covering up to the 14th

administrate them. We also monitor the usage volume

SVHC list of the REACH regulations.

of chemical substances listed in the PRTR Law (note 2).

(note 1) S ubstance of Very High Concern: Use or marketing of SVHCs
requires approval, and manufacturers are liable to submit
notification if an SVHC exceeds 0.1% weight content.

(note 2) Act on Confirmation, etc. of Release Amounts of SpecificChemical Substances in the Environment and Promotionof Improvements to the Management Thereof

Expansion of Green Procurement (GeneralPurpose Products) to Group Companies
Furukawa Electric encourage the purchasing of OA
equipment, office supplies and other items that conformto the Green Purchasing Law. In an effort to spread

56

Furukawa Electric

400

Environmental Risk Management
Preventing Soil and Groundwater Pollution

these activities within the Group, 17 affiliated companies

Furukawa Electric Group conducts regular inspections

designated conforming items in fiscal 2015 andof facilities and equipment that handle specific toxic

purchased them. Also, items that will be used in our

substances to prevent the pollution of soil andproducts are purchased adequately based on the Green

groundwater. We reduce the risk of pollution throughProcurement Guidelines of our operational division, by

measures to prevent leaks of specific toxic substances

evaluating the suppliers’ system on the management ofand underground seepage, as well as through ongoing

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Initiatives for Environment ●●●efforts to switch to substitute substances.

Biodiversity Conservation
PCB Management
Furukawa Electric Group identifies the volume of high-Biodiversity Conservation Initiatives

concentration PCB-containing equipment at Furukawa

In fiscal 2011, Furukawa Electric Group included

Electric Co., Ltd.’s works and at the bases of our groupbiodiversity conservation measures in our Basiccompanies, and carries out appropriate storage andEnvironment Policy. In fiscal 2014, we formulated

management. We have been gradually disposing of thiscomprehensive guidelines in relation to initiatives aimed

equipment in accordance with a plan set out by theat protecting biodiversity.

Japan Environmental Storage & Safety Corporation, andIn fiscal 2015, as part of its efforts to contribute tosuch equipment now remains in just a few areas. We

regional society, Furukawa Research Inc. launchedhave carried out analysis and surveys of equipment that

activities to cultivate within the grounds of Furukawa

has the potential to contain low concentration PCB, andElectric Co. Ltd.’s Yokohama Works the flower Pulsatilla

we have started disposing of some of this equipment.

cernua, which has been designated as an Endangered

We will continue to dispose of such equipment in aSpecies II (note 1).

systematic way.

(note 1) E ndangered Species II is a category of species for which
the danger of extinction is becoming more serious.

C ompliance with Environmental Laws and Other Regulations
F u r u k a w a E l e c t r i c G ro u p re g u l a r l y c o n f i r m s

稀少植物をみんなで育てよう～生物多様性保全活動～
古河テクノリサーチでは生物多様性の保全活動に取り組んでいます。 その一環として、 絶滅危惧Ⅱ類に指定されているオキナグサを育てていenvironmental laws and other regulations to determineます。 3 ～ 4 月に可憐な花を咲かせ、５月にはitems requiring compliance. We ensure compliance in a

させ、 地域社会へ還元することで絶滅の危機を

number of ways, such as by conducting on-site patrols「すべての事業活動が与える生態系への影響に

to check the state of compliance. We follow official
journals and other sources of information to stay
updated on revisions to environmental legislation and

翁の白髪のような種が付きます。
横浜事業所敷地を借用して稀少植物を増殖救うことが目的です。
古河電工グループ CSR 行動規範の中にある、

オキナグサの種（5 月）

オキナグサの花（3 ～ 4 月）

昔は横浜でも自生していたんだって！

将来の世代のためにも必要な活動だね！

配慮し、生物多様性の保全と持続可能な資源利用に努めます」を本活動を通じて実践します。
※園芸店で売られているオキナグサはヨーロッパ原産の外来種がほとんどですが、ここでは日本の在来種を植栽しています。

Evocation of Pulsatilla cernua development activities poster

ensure that our response is thorough.
We maintain voluntary control limits and manage
operations appropriately to ensure compliance with the Air
Pollution Control Law and the Water Pollution Control Law.
In fiscal 2015, we carried out site inspections at ten
bases of Furukawa Electric Co., Ltd. and Japanesegroup companies in accordance with the Poisonous andDeleterious Substances Control Act. We will continue tocarry out appropriate management of harmful chemical
substances, including poisonous substances.
We also conduct annual checks for conceivable, clear
environmental impact to prevent environmental
accidents or prevent widespread impact in the event ofan accident. According to our survey on the status of
our regulatory compliance, we were not in material
violation of any regulations.
Please see the URL below for our response to theasbestos problem, and a list of PRTR compatible materials.
CSR
http://www.furukawa.co.jp/en/csr/risk/

Furukawa Electric Group
Biodiversity Conservation Guidelines
1.	Evaluate the effects that our businessactivities have on the ecosystem, andminimize the harmful effects while
maximizing the beneficial ones
2.	To sustainably use resources and conserve
biodiversity, consider more than ever theneed to carry out measures against climatechange, conserve resources, recycle andreduce environmentally hazardous
substances
3.	Carry out activities in collaboration with local
communities to conserve biodiversity

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201657

Third-Party Opinion
Hiroji Tanaka
Director and Chief Researcher at the Business Ethics Research Center
Professor Emeritus at the Tokyo College of Transport Studies
Following a career at the Bank of Japan and other organization, held professorships at Rikkyo
University Graduate School from 2002 to 2006, President and professor of Tokyo College ofTransport Studies from 2006 to 2013.
A former member of the Ministry of Economy, Trade and Industry’s Japanese National
Committee for ISO on Social Responsibility and other committees.
Has authored numerous books such as “Compliance Management”.

Furukawa Electric Group has published in this report a simple summary of the activities it is involved in aroundthe world as part of its efforts to contribute to its shareholders and overcome the challenges needed to achievesustainability under the slogan - “Delivering Sustained Profitable Growth”.

Outstanding features of the report

Environment provide a clear and simple summaryFirst, in the Top Message, the three policies ofof how Furukawa Electric Group is contributing to

the 2020 Mid-term Management Plan set out forg l o b a l s o c i e t y t h ro u g h t h e t e c h n o l o g i c a lpeople both at and outside the company a path tocapabilities it has accumulated and through the“Delivering Sustained Profitable Growth” based on

pursuit of environmental initiatives. The result is athe corporate philosophy of “Contributing to themultifaceted and outstanding sustainability report.

Realization of a Sustainable Society”.
Second, Furukawa Electric Group uses diagrams

58

Future challenges

and photographs of specific workplaces andFurukawa Electric Group has contributed topeople, etc. in the report to provide more detailed

society at a global level. One suggestion would be

explanations of the environmental, social andto arrange its CSR activities into seven core

governance (ESG) issues that are an essential partsubjects of social responsibility based onof creating sustainable growth. In this way,international standard ISO26000. I believe that the

Furukawa Electric meets its responsibilities tomotivation of employees towards CSR activities

diverse stakeholders.

could be improved even further by presenting

Third, the management report, which provides aawards such as a CSR Grand Prize or CSR

platform for a company, gives thoroughOutstanding Prize based on the results of these

explanations of Furukawa Electric’s basic

efforts.

philosophy, systems and specific activities in

What’s more, the concept of Furukawa Electricrespect to corporate gover nance, CSRGroup’s 2020 Mid-term Management Plan is

management, relationships with stakeholders, risk

“Taking the Group to New Heights". As Furukawa

management and compliance. This is likely to result

Electric Group works on implementing these threein more autonomous and appropriate behavior andpolicies, it is my sincere hope that it makes theattitudes among the employees and an increase inmost of its strengths, meets its responsibilities tothe trust placed in the company by society.

diverse stakeholders, and that all of its employees

Fourth, the two special features, the Financial

make a large contribution to the creation of aand Non-financial Highlights, the Business Report,sustainable society in accordance with theInitiatives for Society and the Initiatives for

sentiments of the Top Message.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

List of all applicable companies
Page.

43

Occupational Health and Safety
1 NTEC Ltd.
2 FCM Co., Ltd.
3 Okano Electric Wire Co., Ltd.
4 Okumura Metals Co., Ltd.
5 KANZCC Co., Ltd.
6 Shodensha Co., Ltd.
7 Seiwa Giken Inc.
8 TOTOKU Electric Co., Ltd.
9 VISCAS Corp.
10 Foam Kasei Co., Ltd.
11 FITEC Corp.
12 Furukawa Automotive Systems Inc.
13 Furukawa S and D Co., Ltd.

Page.

48

Scope of the frequency rate of accidents resulting in time off work

37 Group companies in Japan

Environmental Management

14 Furukawa Elecom Co., Ltd.
15 Furukawa Sangyo Kaisha, Ltd.
16	Furukawa Communication andBroadcasting Co., Ltd.
17 Furukawa Industrial Plastics Co., Ltd.
18 Furukawa Precision Engineering Co., Ltd.
19 Furukawa Techno Material Co., Ltd.
20 Furukawa Research Inc.
21 Furukawa Electric Advanced Engineering Co., Ltd.
22 Furukawa Electric Ecotec Co., Ltd.
23 Furukawa Electric Industrial Cable Co., Ltd.
24 Furukawa Electric Power Systems Co., Ltd.
25 The Furukawa Battery Co., Ltd.

26 Furukawa Nikko Power Generation Inc.
27 Furukawa New Leaf Co., Ltd.
28 Furukawa Network Solution Corp.
29	The Furukawa Finance and BusinessSupport Co., Ltd.
30 Furukawa Logistics Corp.
31 Furukawa Magnet Wire Co., Ltd.
32 Furukawa UACJ Memory Disk Co., Ltd.
33 Furukawa Life Service Inc.
34 Miharu Communications Inc.
35 Myojodenki Co., Ltd.
36 Yokohama Drum Manufacturing Co., Ltd.
37 Riken Electric Wire Co., Ltd.

Scope of the environmental management

33 Group companies in Japan
1 NTEC Ltd.
2 FCM Co., Ltd.
3 Okano Electric Wire Co., Ltd.
4 Okumura Metals Co., Ltd.
5 KANZCC Co., Ltd.
6 Shodensha Co., Ltd.
7 Seiwa Giken Inc.
8 TOTOKU Electric Co., Ltd.
9 FITEC Corp.
10 Furukawa Automotive Systems Inc.
11 Furukawa Sangyo Kaisha, Ltd.

12	Furukawa Communication andBroadcasting Co., Ltd.
13 Furukawa Industrial Plastics Co., Ltd.
14 Furukawa Precision Engineering Co.,Ltd.
15 Furukawa Techno Material Co., Ltd.
16 Furukawa Electric Advanced Engineering Co., Ltd.
17 Furukawa Electric Ecotec Co., Ltd.
18 Furukawa Electric Industrial Cable Co., Ltd.
19 Furukawa Electric Power Systems Co., Ltd.
20 The Furukawa Battery Co., Ltd.
21 Furukawa Logistics Corp.
22 Furukawa Magnet Wire Co., Ltd.

23 Furukawa Life Service Inc.
24 Miharu Communications Inc.
25 Riken Electric Wire Co., Ltd.
26 Furukawa Network Solution Corp.
27	The Furukawa Finance and BusinessSupport Co., Ltd.
28 Furukawa New Leaf Co., Ltd.
29 Furukawa Research Inc.
30. Foam Kasei Co., Ltd.
31. Furukawa Nikko Power Generation Inc.
32. Furukawa Elecom Co., Ltd.
33. Myojodenki Co., Ltd.

54 Group companies overseas
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

SHENYANG FURUKAWA CABLE CO., LTD.
Suzhou Furukawa Power Optic Cable Co., Ltd.
P. T. Tembaga Mulia Semanan
Trocellen GmbHPOLIFOAM Plastic Processing Co., Ltd.
Trocellen Italia Holding S. r. l.
Trocellen Italy S. p. A.
Trocellen S. E. A. Sdn Bhd
Furukawa Industrial S. A. Produtos Eletricos
Furukawa Industrial S. A. Sucursal Argentina
Furukawa Cabos e Acessorios Ltda.
OFS FITEL, LLC
OFS Fitel Denmark Aps
OFS Fitel Deutschland GmbH
Thai Fiber Optics Co., Ltd.
Bangkok Telecom Co., Ltd.
P. T. Furukawa Optical Solutions Indonesia
Furukawa FITEL (Thailand) Co., Ltd.
Furukawa Fitel Optical Products (Shanghai) Co., Ltd.
DONGGUAN FURUKAWA TOTOKU OPT ELECTRONICS CO., LTD.
FURUKAWA TOTOKU (HONG KONG) LIMITED
Thai Furukawa Unicomm Engineering Co., Ltd.
FE Magnet Wire (Malaysia) Sdn. Bhd.
Taiwan Furukawa Magnet Wire Co., Ltd.
Taiwan Furukawa Electric Co., Ltd.
FURUKAWA AVC ELECTRONICS (SUZHOU) CO., LTD.
Furukawa Automotive Parts (Vietnam) Inc.
FURUKAWA AUTOMOTIVE PARTS (DONG GUAN) LTD.
FURUKAWA AUTOMOTIVE SYSTEMS VIETNAM INC.

30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54

Permintex Furukawa Autoparts Malaysia Sdn. Bhd.
Furukawa Automotive Systems Lima Philippines, Inc.
Furukawa Mexico S. A. De C.V.
American Furukawa, Inc.
Furukawa Automotive Systems (Thailand) Co., Ltd.
Furukawa Electric (Shenzhen) Co., Ltd.
Furukawa Wiring Systems Mexico S. A. De C. V.
Furukawa Electric Autoparts (Philippines) Inc.
Furukawa Auto Parts (Huizhou) Ltd.
Tianjin Jinhe Electric Engineering Co., Ltd.
Changchun Furukawa Automobil Harness Co., Ltd.
Furukawa Electric Autoparts Central Europe, s. r. o.
P. T. Furukawa Automotive Systems Indonesia
Furukawa Precision（Thailand）Co., Ltd.
Xin Furukawa Metal (Wuxi) Co., Ltd.
Furukawa Metal (Thailand) Public Co., Ltd.
Furukawa Electric Copper Foil Taiwan Co., Ltd.
Furukawa Circuit Foil Taiwan Corporation
Furukawa Electric Institute of Technology Ltd.
SuperPower Inc.
Furukawa Electric Europe Ltd
Furukawa Electric Singapore Pte. Ltd.
FURUKAWA SHANGHAI, LTD.
Furukawa (Thailand) Co., Ltd.
Furukawa Electric Hong Kong Ltd.

Furukawa Electric and the Group companies in Japan engaged in the production activities acquired ISO14001 certification pertaining toenvironmental management. We are also working to establish an environmental management structure that meets the requirement of ISO 14001,
etc., at overseas, and about 70% of Group companies overseas acquired the said certification.
Page.

49

Environmental Management

Scope of the environmental accounting

24 Group companies in Japan
1
2
3
4
5
6
7
8
9

NTEC Ltd.
Okano Electric Wire Co., Ltd.
Okumura Metals Co., Ltd.
KANZCC Co., Ltd.
Shodensha Co., Ltd.
Seiwa Giken Inc.
TOTOKU Electric Co, Ltd.
FITEC Corp.
Furukawa Automotive Systems Inc.

10 Furukawa Sangyo Kaisha, Ltd.
11	Furukawa Communication andBroadcasting Co., Ltd.
12 Furukawa Industrial Plastics Co., Ltd.
13 Furukawa Precision Engineering Co., Ltd.
14 Furukawa Techno Material Co., Ltd.
15	Furukawa Electric Advanced Engineering
Co., Ltd.
16 Furukawa Electric Ecotec Co., Ltd.

17 Furukawa Electric Industrial Cable Co., Ltd.
18 Furukawa Electric Power Systems Co., Ltd.
19 The Furukawa Battery Co., Ltd.
20 Furukawa Magnet Wire Co., Ltd.
21 Miharu Communications Inc.
22 Riken Electric Wire Co., Ltd.
23 Foam Kasei Co., Ltd.
24 Furukawa Nikko Power Generation Inc.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201659

http://www.furukawa.co.jp/en/

IE-128 2H9 TR 50