FURUKAWA ELECTRIC GROUPSUSTAINABILITY BOOK

2023

CONTENTS
Editorial Policy ………………………………… 1
Company Proﬁle ……………………………… 1

Labour Practices

Environment

Occupational Health and Safety …… 20
Health and Productivity Management

Basic Approach
Top Message …………………………………… 2

Furukawa Electric Group Health andProductivity Management Declaration……………………………………………………

21

Corporate Philosophy Structure ……… 2

Health and Productivity Management
Promotion System ……………………… 22

Sustainability Policy and Committee …… 3

Health Management Guidelines …… 23

Sustainability Strategy …………………… 5

Eﬀorts to Promote Health andProductivity Management ………… 24

Indicators and Targets…………………… 8

Initiatives regarding ESG Management
and Sustainability until Now …………… 8
Furukawa Electric Groupʼs eﬀorts
towards the SDGs ………………………… 10

Organizational GovernanceCorporate Governance ………………… 12
Risk Management ………………………… 14
Compliance …………………………………… 16

Human Rights
Human Rights ………………………………… 18

The Health & Productivity Stock Selection
and the Health & Productivity Management
Outstanding Organization ……………… 25
Human Resources Management
Management Policy …………………… 26
Engagement (individuals ╳ awareness/mindset/culture) ………………………… 27
Leadership/team mindset (organiza−tion ╳ awareness/mindset/culture) 28
Organizational culture/communica−tion (organization ╳ awareness/mindset/culture) ………………………… 28

Fair Operating Practices
Supply Chain ………………………………… 63

Environmental Policy/
Environmental Vision
Environmental Policy ………………… 41
Environmental Vision ………………… 41
Environmental Management
Environmental Management system,
Environmental Education, Environ−mental Awards …………………………… 42
International Standard forEnvironmental Management(ISO14001) ………………………………… 43
Environmental Risk Management … 44
Environmental Targets/Results/Data
Targets and Performances ofEnvironmental Conservation
Activities …………………………………… 45
Environmentally Friendly Products … 46
Material Flow ……………………………… 48
Environmental Accounting ………… 48
Third−Party Veriﬁcation Report … 48
Contribution to a Carbon−Free Society

Design of the organization/personnel
composition (organization ╳ actions/systems) ……………………………………… 30

Information Disclosure Based on the
TCFD Recommendations …………… 52

Diversity & Inclusion
Basic Policy, System, Target,
and Result …………………………………… 32
Promotion of Women's
Empowerment …………………………… 35
Promotion of the Employment ofPeople with Disabilities ……………… 37
Work style reform and promotion ofdiverse work styles …………………… 39

Quality …………………………………………… 66

Community Involvement
Local Community Contribution,
Social Contribution ……………………… 68

Environmental Targets 2030 ……… 44

Abilities/skills (individuals ╳ actions/systems) ……………………………………… 29

Flow of information, coordination anddecision−making mechanism (organi−zation ╳ actions/systems) ………… 31

Consumer Issues

Climate Change…………………………

49

Contribution to a Water/Resource
Recycling Society
Waste Reduction, Eﬀective Use of
Resources …………………………………… 57
Eﬀective Use of Water Resources … 59
Contribution to a Society that Coexists
with Nature
Chemical Substance Management … 60
Biodiversity Conservation

…………

61

Data
ESG Data ……………………………………… 72
External Evaluation andCertiﬁcation ………………………………… 82
Participation in Initiatives …………… 86
Reference data …………………………… 88

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Editorial Policy

Consumer Issues

Community
Involvement

Company Profile

Since fiscal 2020, the Group has been publishing Integrated Reports and Sustainability

Company Name

Furukawa Electric Co., Ltd.

President

Hideya MoridairaFounded1884

Established

June 25th, 1896

capital. We hope that the Sustainability Book will help you understand the Group's

Paid-in Capital¥69,395 million

environmental, social, and governance activities.

(As of March 31, 2023)

Guidelines Referenced

Net sales¥1,066,326 million (Consolidated)(Years ended March 31, 2023)¥305,835 million (Non-Consolidated)

Number of Employees

51,314 (Consolidated)(As of March 31, 2023)

4,267 (Non-Consolidated)

Books. Integrated Report has concisely stated important financial and non-financial
information regarding Furukawa Electric Group with the aim of promoting a better
understanding of our medium- to long-term initiatives and measures for the improvement ofcorporate value. Whereas, Sustainability Book includes non-financial information that is notincluded in the Integrated Report and is compiled for all stakeholders. The Sustainability
Book 2023 includes information on governance, strategies, risk management, andindicators and targets related to sustainability, as well as updated information on human

ISO26000GRI Standards
Environmental Reporting Guidelines 2018 issued
Head Office

Period Covered
Fiscal 2022 (from April 1, 2022 to March 31, 2023）

TEL(note) Includes selected information on past initiatives and activities during fiscal 2023.
Organizations Covered
This book covers Furukawa Electric Co., Ltd. and group companies in Japan and overseas. Where activities are limited to specific regions
or companies, this fact has been clearly indicated in this book.
Publication Timeframe
Publication date: January 19, 2023
Planned publication of next edition: December 2024
Editing and Publication
Furukawa Electric Co., Ltd
Corporate Sustainability Office, Strategy Division, Furukawa Electric Co., Ltd.
Tokiwabashi Tower,
2-6-4, Otemachi, Chiyodaku, Tokyo 100-8322, Japan
Inquiry form
https://www.furukawa.co.jp/en/inquiry/

1

Tokiwabashi Tower,
2-6-4, Otemachi, Chiyodaku, Tokyo 100-8322, Japan+81-3-6281-8500

Data

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Top Message

Consumer Issues

Community
Involvement

Data

Corporate Philosophy Structure
Since our founding in 1884, we have been working to create the technologies and products that society requires. We consider it ourStrengthening the trust with all stakeholders, and continuing the efforts to realize a sustainable society

mission to contribute to the realization of a sustainable society. We will continue to keep our eyes on the future as we work to live up to the
Since the founding of the Furukawa Electric Group in 1884, the words of our founder,

expectations and trust invested in us by society.

Ichibei Furukawa, who said “Value employees, value customers, value new technology,
and contribute to society” have been spun into our DNA, and we are working to realize aGroup Philosophy

sustainable society by solving the social issues through business.
We are promoting ESG management directed at achieving the Furukawa Electric Group
Vision 2030 that sets forth the vision of the group we intend to become in 2030. In addition,

CORPORATE PHILOSOPHY“Creating businesses that solve social issues”, “Developing business activities that

Drawing on more than a century of expertise in the development and fabrication of advanced materials, we will contribute to theconsider climate change”, “Strengthening human capital and organizational execution

realization of a sustainable society through continuous technological innovation.

abilities” and “Building a governance system to strengthen risk management” have been
set forth as the important issues for ESG management, and “Open, Agile, Innovative” andMANAGEMENT PHILOSOPHY“Building partnerships with various stakeholders” have been designated as the driving force
for addressing the important issues.

With an eye to the future, the Furukawa Electric Group management team pledges to:
President

Going forward, we will continue to develop new technologies, products and services, asLive up to the expectations and trust invested in us by society, with fairness and integrity.

well as strengthen and transform the businesses, with the aim of further enhancing the

Apply the sum total of our expertise to satisfy our customers and grow with them.

trust and expectations from all stakeholders. Moreover, we will contribute to achieving theContinuously strive to achieve world-class technological innovation, and transform ourselves in every area of endeavor.

SDGs by Vision 2030 and realize a sustainable society.

Nurture human resources at every level, so that we can become a more diverse and creative organization.
Furukawa Electric Group Philosophy (Revised August 2007)

Core Value

2

Furukawa Electric Group, Vision 2030

We have set the values we wish to particularly emphasize andIn order to build a sustainable world and make people’s life safe,enhance even further, for the achievement of Corporate

peaceful and rewarding, Furukawa Electric Group will create

Philosophy and the sustainable growth of Furukawa Electric

solutions for the new generation of global infrastructureGroup, as "Core Value".

combining information, energy and mobility.

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Furukawa Electric Group CSR Code of Conduct

Consumer Issues

Community
Involvement

Data

Sustainability Policy and Committee

In conducting corporate activities based on the Furukawa Electric Group Philosophy and Core Value, the Furukawa Electric Group CSR
Code of Conduct defines fundamental rules of behavior that Furukawa Electric Group executives and employees should follow from theperspective of corporate social responsibility.

About the Sustainability Policy

The Furukawa Electric Group CSR Code of Conduct (items only) (Revised April 2019)

The Furukawa Electric Group’s philosophy is “Drawing on more than a century of expertise in the development and fabrication of advanced
materials, we will contribute to the realization of a sustainable society through continuous technological innovation.” We have established

Full text of The Furukawa Electric Group CSR Code of Conduct

Vision 2030, the ideal state of the Group in 2030, being conscious of solving social issues indicated by the Sustainable Development Goals(SDGs) adopted by the United Nations. The Group promotes ESG management, which aims sustainable growth of the Group and medium-

1. Human rights

to long-term improvement in corporate value, in order to achieve Vision 2030.

2. Labor practices
3. Environment

Furukawa Electric Group Basic Policy on Sustainability

4. Products and services

The Furukawa Electric Group will:

5. International businesses and transactions

in line with its mission of contributing to the realization of a truly affluent and sustainable society, tackle important management

6. Fair competition

issues (material issues) from the perspectives of both revenue opportunities and risks, while focusing on the future of people and7. Relations with customers, partners, and society

the planet.

8. Management and preservation of Company assets

in order to have sustainable growth and contribute to the achievement of SDGs (sustainable development goals), strengthen andcreate businesses that solve social issues, while focusing on capital efficiency and continuing to transform its business through

9. Disclosure of information

continuous technological innovation centered on material technologies and collaboration with various stakeholders.

10. Duties and obligations of senior management and employees

contribute to the sustainable development of society by maintaining and improving sound and positive relationships with all
stakeholders through appropriate information disclosure and active communication, while complying with laws, regulations, social
norms and ethics in Japan and overseas.

Philosophy Structure of Furukawa Electric Group3

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

The Group has accelerated its ESG management since FY2018 and has expanded discussions on sustainability including climate change

Sustainability Committee

and human capital at the management committee and the sustainability committee. These committees also submit proposals and share
the progress on sustainability including climate change and human capital with the board of directors every quarter.

The Sustainability Committee has been established to consolidate discussions on sustainability within the Furukawa Electric Group andfurther enhance the quality and speed of implementation thereof.

＜Key Discussions on Sustainability within Furukawa Electric Group (FEG)＞

The committee is chaired by the President, vice-chaired by the General Manager of the Strategy Division, and composed of members of
top management. It meets to discuss sustainability issues that concern Furukawa Electric Group and makes proposals and reports to theBoard of Directors. The Corporate Sustainability Office serves as the secretariat, and the committee will generally meet twice a year.
The Sustainability Committee focuses on the following items:
the policy about sustainability

November 2018

Formulated the FEG Vision 2030

November 2018

Formulated the FEG Vision for Our People; medium-term measures of the HR Dept.

Nov. 2018–Dec. 2019

Identified important management issues as material issues

April 2019

Revised the FEG CSR Code of Conduct

February 2021

Formulated the FEG Environmental Vision 2050

July 2021–Aug. 2021

Formulated the FEG Basic Policy on Sustainability

May 2022

Set sustainability indicators and targets; reviewed the material issues

December 2022

Status and direction of personnel measures in the 2025 Medium-term Plan

March 2023

Partially revised sustainability targets for FY2025

October 2018

Medium-term measures of the HR Dept.; formulated the FEG Vision for Our People

Nov. 2018–May 2019

Formulated the FEG Vision 2030

Nov. 2018–Sept. 2020

Identified important management issues as material issues and disclosed themJanuary 2019

Set the Environmental Targets 2030; applied for an SBT (2℃ Targets) initiative

basic matters and current progress on material issues related to revenue opportunities and risks
Board of Directors

disclosure of basic information related to sustainability
SDG activities and community/social activities
other important sustainability issues such as environment, human rights and labor practices, supply chain, governance, etc.
Additionally, as matters regarding material issues of risks are closely related to risk items concerning management of the Group, they are
therefore handled in coordination with the Risk Management Committee.

certification
April 2019

Revised the FEG CSR Code of Conduct

January 2020

Signed the United Nations Global Compact; Formulated the FEG Human Rights Policy;

Management
Committee

Expressed support for the recommendations of TCFD
Dec. 2020–Feb. 2021

Formulated the FEG Environmental Vision 2050

July 2021–Aug. 2021

Formulated the FEG Basic Policy on Sustainability

Nov. 2021–Feb. 2022

Revised the Environmental Targets 2030; applied for an SBT (WB 2℃ Targets) initiativecertification

November 2022

4

Direction of personnel measures based on the concept of human capital management

Basic Approach

Organizational
Governance

December 2022

Labour Practices

Fair Operating
Practices

Environment

Revised the Environmental Targets 2030; applied for an SBT (1.5℃ Targets) initiative

February 2023

Consumer Issues

Community
Involvement

Data

Sustainability Strategy

certification

Management
Committee

Human Rights

Activities to reinforce human capital and organizational execution abilities; disclosed
human capital indicators

Sustainability
Committee

March 2022

Set sustainability indicators and targets; reviewed the material issues

September 2022

Established the FEG Responsible Minerals Sourcing Policy

March 2023

Partially revised sustainability targets for FY2025

Furukawa Electric Group’s ESG Management and Material Issues
In order to achieve the “Furukawa Electric Group Vision 2030,” (hereinafter, “Vision 2030”) we are promoting ESG management, whichaimssustainable growth of the Group and medium- to long- term growth of corporate value. We have defined “material issues” asimportant management issues that the Group should address in order to achieve Vision 2030, and we defined material issues * in terms ofboth revenue opportunities and risks, in accordance with the process of identifying important management issues as mentioned below. We
aim to achieve Vision 2030 by working on the material issues we have identified, considering that addressing the material issues onrevenue opportunities help improve capital efficiency whereas addressing the material issues on risks help reduce the cost of capital. We
will also contribute to the achievement of the SDGs, which are closely related to the material issues.
In FY2022, we have formulated a four-year Medium-term Management Plan “Road to Vision 2030: Transformation and Challenge”(hereinafter the “2025 Medium-term Plan”) toward achieving a goal for FY2025, the final year of the 2025 Medium-term Plan. In formulating
the plan, we used backcasting to get us to the goal for FY2025, a halfway point to Vision 2030.
Medium-term Management Plan 2022-2025* In the Group’s ESG management, “material issues” are defined as important management issues that the Group must address in order to achieve Vision
2030, and are used as a term with a meaning different from those used in the finance and accounting context, which are issues that may have an impact on
business performance, financial position, etc.

5Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Process of Identifying Material Issues

Identifying and Reviewing Material Issues

Identification and review of material issues was conducted through a process of Step 1 through Step 3. First, in Step 1, we identified social

From the perspective of revenue opportunities, in order to help solve various social issues through the business activities of the Group, weissues by referring to “external factors” and “internal factors,” adjusted duplicate items, and created a list of items (currently organized into

found it indispensable to devise a transformation from the conventional “Product-Out” approach to “Outside-In” approach and identified the

29 items). In Step 2, the two axes of “importance to shareholders and investors” and “importance to achieving Vision 2030” are evaluated“creation of businesses that solve social issues” as a material issue. Examples of these include the “creation of businesses that support thefor importance (high, medium, low) and prioritized. In Step 3, high-priority items are identified as material issues. The identified material

next generation infrastructure,” which will serve as the foundation of the society anticipated in Vision 2030, and the “creation ofissues are categorized by revenue opportunity and risk aspects and rearranged as important issues for achieving Vision 2030, andenvironmentally friendly businesses,” which contribute to the realization of a carbon-free society and a recycling-based society. They are

expressed as the material issues of three revenue opportunities and the material issues of the E (Environment), S (Social) and G

set as sub-material issues.

(Governance) risks.

We also promote the “creation of social issue-solving businesses” through the slogan “Open, Agile, Innovative,” which reflects the desire to

In the FY2023 material issues review, "biodiversity (land area/marine and river)" was re-evaluated as a medium area of “importance tobecome a company that actively transforms itself, and the “Building partnerships with various stakeholders,” focusing on co-creation withachieving Vision 2030” in response to the increasing social demands for biodiversity and natural capital in recent years.

others. We will also work on improving capital efficiency, including cost of capital.
On the other hand, from a risk perspective, in order to achieve sustainable growth, it is essential that companies develop businessactivities that take into account climate change, and we see this as a material issue for environment (E) risks. In addition, in order tobecome a company that actively transforms itself, we set the “strengthening of human capital and organizational execution abilities” as amaterial issue for social (S) risks. As for materiali issue of governance (G) risks, we focus on “building a governance system forstrengthening risk management” including corporate governance, group governance and supply chain management as sub-material
issues. We will strengthen the foundation of ESG management and reduce the cost of capital.

6

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

In order to conduct business activities taking into account climate change that is mandatory for the transformation to a sustainable

Value Creation Process Directed at Achieving Vision 2030

company, we will accelerate our efforts to become carbon neutral. In order to strengthen human capital, based on “Furukawa ElectricGroup Vision for Our People” which is shared beliefs on human capital at both Group and global levels, we will strive to strengthen “human

The Medium-term Management Plan 2022–2025 (the “2025 Medium-term Plan”) is positioned as a milestone toward realizing the Vision

capital and organizational execution abilities.” Specifically, we conducted a survey on human capital/organizational execution abilities,

2030. We will surely execute the 2025 Medium-term Plan, which is formulated by the dual approach of backcasting from the Vision 2030

including elements related to employee engagement; and by using it as a monitoring tool, we will strengthen our efforts of human capitaland forward-looking from the present. In the 2025 Medium-term Plan, we defined the ideal state in FY2025 for each identified material

management, including the promotion of diversity & inclusion, leadership transformation activities, and measures for hiring, assigning, andissue, formulated measures to realize them, and set sustainability indictors/targets to measure the progress.

developing people who contribute to carrying out management/business strategies. With respect to human rights management, we willproceed in accordance with three requirements in the UN’s Guiding Principles on Business and Human Rights. As for “human rights due

Furukawa Electric Group has enhanced capabilities for development and making proposals, without being limited to specific markets anddiligence” among those requirements, we regard employees and suppliers as primary stakeholders, identify presumed human rights issues

with its four core technologies—metals, polymers, photonics and high-frequency—centered on capabilities to handle materials. Throughfor each of them, and take measures to solve and/or prevent such issues. Furthermore, in order to realize CSR procurement, including thethese capabilities, we have gained the trust of customers.

element of human rights in the supply chain, we will expand the scope of the Self-Assessment Questionnaire (SAQ) based on the

For achieving the financial and sustainability targets set for 2025 Medium-term Plan, and for realizing sustainable growth of the Group and

Furukawa Electric Group CSR Procurement Guidelines from major supplies of the Company to major suppliers of the Group companies inmedium- to long-term growth of corporate value, we will strengthen and create businesses mindful of capital efficiency. In addition, we will

Japan and abroad in a phased manner.

build a new business model by enhancing our strengths through open innovation and co-creation with our partners, as well as utilization of
intellectual property. Toward 2025, we will stabilize earnings in information, energy and mobility sectors, and realize growth through thestrengthening of businesses that solve the social issues, whereby contributing to building a society with infrastructure integrating
information, energy and mobility. In addition, toward 2030, we realize a leap through the creation of businesses that solve social issues
including the “creation of businesses that support the next generation infrastructure,” which would serve as the foundation of the integrated
society of Vision 2030, and the “creation of environment-friendly businesses,” which contributes to the realization of carbon neutrality and acircular economy.
As for the strengthening of the existing businesses, we will capture increased demand for optical fibers, etc., and strive for increasing salesof such high-value added products as rollable ribbon cables, for which we have worked on sales expansion. We will also expand the
networking system business globally, taking advantage of the strength of the business model developed in Latin America. As for power
cable system, we will achieve sales growth by enhancing our production capacity and construction capacity, and establishing a businessfoundation mainly focusing on submarine and underground cables for ensuring resilience of power networks in Japan and for renewableenergy. To address the need for reducing vehicle weight alongside the shift to EV, we will take advantage of the superiority of aluminum
wire harnesses, with which new types of vehicles are increasingly equipped, thus expanding the business and improving the profitability.
Furthermore, since it is expected that demand for semiconductors will increase in the medium- to long-term, we started the construction ofa new plant to begin commercial production of tapes for manufacturing semiconductors in FY2025, and aim at expanding sales by ensuring
stable supply as a result of increased production capability and providing sophisticated high-quality products.
As for the creation of new businesses, while communication traffic volume is expected to increase towards a Beyond 5G society, we willtake advantage of our capability to develop photonics products with high functionality by using the Company’s core technologies, namely,

Medium-term Management Plan 2022-2025

photonics technology and high-frequency technology, along with our broad readiness to the optical communication market, thus
contributing to realizing the all-optical network and a society with highly efficient energy. Furthermore, in order to become carbon neutral in
2050, we will advance the development and production of green LP gas which does not rely on fossil resources. We also develop andproduce high-temperature superconducting materials for nuclear fusion, which is expected to be a next-generation energy source, thus
contributing to the supply of environment-friendly clean electric power.
In order for the Group to realize sustainable growth and increased corporate value over the medium- to long-term, we will strengthen the
management foundation directed at reducing capital costs, while particularly recognizing climate change, human capital and organizational
execution abilities, and building a governance system as material issues on risks.

7

Organizational
Governance

Basic Approach

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Indicators and Targets

Community
Involvement

Consumer Issues

Data

Initiatives regarding ESG Management and Sustainability until Now
In order to achieve Vision 2030, we are promoting ESG management, which aims sustainable growth of the Group

Sustainability Indicators and Targets

and medium- to long-term growth of corporate value. We are carrying "strengthening the foundation of ESG
management" as a part of priority measures of the Medium-term Management Plan “Road to Vision 2030: Transformation and Challenges”

In the 2025 Medium-term Plan, we have set sustainability indicators (KPIs) and sustainability targets for FY2025 to realize our ideal state in
FY2025 in each material issue. We will strive to enhance corporate value in terms of both revenue opportunities and risks.
ResultMaterial issue

Creating businesses that

Sustainability indicator

Sales ratio of environmentally friendly products

solve the social issues
Revenueopportunity

Open, Agile, Innovative/
Building partnerships withvarious stakeholders

Scope

Target (Reference value)
FY

FY

FY

2022

2022

2023

2025

Group

65.0％

64％

66％

70％

Group

116％

115％

125％

125％

Group

40％

30％

45％

(compared to FY2021)〜2014

Implementation rate of IP landscaping for

GHG emissions(Compared toactivities that consider

reduction rate (Scope

FY2017)climate change

1, 2)(Compared to*1

consumption
Strengthening human capital Employee engagement scoresand organizational execution-36.8%-17.7％-21.2％(-42％)−−−-18.7％*3

Group

20.2％

11.5％

12.0％

30％*3

Furukawa Electric

65

65*4

75*4

system to strengthen risk
management

Start
measuring

Ratio of female managers

Furukawa Electric

4.8％

4.5％

5％

7％

Ratio of mid-career hires in total new hires *5

Furukawa Electric

45.7％

30％*6

30％*6

30％*6

Group

100％

93％

100％

100％

GlobalGlobalGlobalGlobalRatio of follow-up on risk management
activities for all risk domains

Groupsuppliers
Implementation rate of human rights training
for managerial positions

・Formulated the Furukawa Electric Group (FEG) Philosophy

・Revised the FEG CSR Basic Policy (2011)

*1

2015

・Formulated the Core Value

2019

・Formulated the FEG Vision 2030

・Established the Corporate Sustainability Office・Revised the FEG CSR Code of Conduct
2020

・Signed the United Nations Global Compact

2021

・Formulated the FEG Basic Policy on Sustainability
・Established the FEG Sustainability Committee*1 Combined the FEG Action Guidelines (formulated in 2004) with the CSR Code of Conduct

Ratio of SAQ implementation based on the
CSR Procurement Guidelines for major

Basic policy and promotion framework

・Revised the FEG CSR Code of Conduct (2011)
*2

Group

FY2021)
Ratio of renewable energy use to total

Building a governanceValues(2007)

100％

creating new businesses
Developing business

Risk

Fiscalyear

R&D expense growth rate for new businesses

strengthening the businesses and themes forabilities

ESG management in general

FY

Group

34％

Global
100％

20％

40％

100％

Start

GlobalGlobal

Measuring

100％

100％

in Japan*7*7*1 This means that all projects have been implemented with respect to the business enhancement and new business creation themes set as of 2022.
*2 Base year was updated to FY2021 upon the revision of Environmental Targets 2030; the reduction target value when applied to the former base year of
FY2017 is also shown for reference.
*3 Target value for FY2025 was updated upon the revision of Environmental Targets 2030.
*4 Target value for FY2025 was newly set in FY2022.
*5 New hires represent new graduates and mid-career hires, covering management, career-track, and clerical positions.
*6 This means that about 30% will be maintained in each fiscal year.
*7 This means that 100% globally for each fiscal year will be continued.

8

Organizational
Governance

Basic Approach

Human Rights

Labour Practices

Fair Operating
Practices

Environment

GovernanceCommunity
Involvement

Consumer Issues

Data

SocialFiscalBasic policy and separation ofyear

supervision and execution〜2014

・Introduced the executive officers
system (2003)

Corporate governanceFiscal

Risk management and supply chain

year

・Established the CSR Department(2007)

Human resource development andBasic policy and promotion framework

Diversity & Inclusion

organizational execution abilities〜2014

・Established the Diversity Promotion
Section (2014)

・Started the global human resources
training (2006-)

・Appointed two non-Japanese corporate
vice presidents(CVPs) (2013)2015

・Established the Work Style Reform・Appointed a female-Japanese

Project Team

corporate vice president(CVP)・Established the CSR and Risk
Management Committee (2007)
・Formulated the Furukawa Electric CSR
Deployment Guidelines for
Business Partners (2010)

2016

・Established the Administration & CSR

・Increased the number of the nonJapanese CVPs to four

Division (2013)
2015

2016

・Established the Guidelines on

・Started the evaluation of the

Corporate Governanceeffectiveness of the Board of Directors

・Established the IndependenceStandards for the Outside Officers

from 2015, and the summary of the result
was published every year

・The Chairman became the Director

・Increased the number of the Outside

without the representative right of the

Directors to five as at present

Board of Directors*2

2018

・Formulated the FEG Vision for Our
People・Formulated the target for FY2025
regarding women’s empowerment

2019

・Reorganized the Organization & Work・Structured the non-Japanese CVPs to

Style Reform Team

three

2020

・Started the activities to transform
leaderships “Furukawa Seven”

・An outside director became the chair of
the Nominating/Compensation
2021

Committee
・Revised the directors’ compensation
scheme*3・Established the HR & Organizational

・Structured the female Japanese

Development Department

CVP to two

2022
2017

・Started “Furukawa E-Survey”, a survey

・Structured the non-Japanese CVPs to

・As a process to evaluate theon human capital and organizational

2 people at present

effectiveness of the Board of Directors,

execution capabilities

・Structured the female-Japanese CVP
to one at present

the Chairman conducted the interviews
every year.
2019

・Strengthened the independency of・Formulated the FEG Human Rights

Outside Directors

PolicyEnvironment

・A female Outside Director was
appointed.
・Partially revised the directors’

Fiscalcompensation scheme*4
2020

2021

year

・A female outside Audit & Supervisory

・Revised the FEG CSR Procurement

Board member was appointed.

Guideline 3rd edition

・Reduced the number of the In-house・Established the Risk Management

Directors by 1

Division and the Risk Management〜2014

Basic policy and promotion framework

・Formulated the FEG Basic Environmental Policy (2008)
・Established the FEG Environment Committee (2013)2018

Department

・Set the environmental targets 2030

2019

・Renamed from the CSR and Risk

・Acquired an SBT(2°C Targets) initiative certification
・Expressed support for the recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD)Management Committee to the Risk
Management Committee
2022

Climate change and information disclosure

・Established the FEG
Responsible Minerals Sourcing Policy

2020

・Formulated the FEG Environmental Vision 2050

2021

・Established the Environment Department
・Revised the environmental targets 2030

*2 Aimed for supervising execution by the management, including the President, from a non-executive position

2022*3 Consisted of the basic remuneration, short-term performance-linked remuneration, and medium- to long-term performance-linked remuneration

2023*4 Aimed at strengthening incentives

9・Revised the environmental targets 2030

・Acquired an SBT(well-below 2°C Targets) initiative certification
・Acquired an SBT(1.5°C Targets) initiative certification

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Consideration of SDGs Priority Issues Based on Value Chain Mapping

Furukawa Electric Group’s efforts towards the SDGs

We proceed and identify what SDGs we should focus on to deal with. In order to do that, we examine which part our current major products
contribute to the 17 goals and 169 targets of the SDGs using the value chain mapping of the SDG Compass. Here are some examples of
the results of identification with significant impacts or distinctive characteristics.

Sustainable Development Goals (SDGs)〈Increasing positive impacts〉
The Sustainable Development Goals (SDGs) are the successor to the Millennium Development Goals (MDGs) established in 2001, andare international goals for a sustainable and better world by 2030, as stated in the "2030 Agenda for Sustainable Development" adopted
unanimously by the member states at the UN Summit in September 2015. It consists of 17 goals and 169 targets, and pledges to "leave noone behind" on the planet.

Optical fiber and cable products will contribute to thedevelopment and expansion of sustainable and robust
communication infrastructure, as well as safe and resilient
urban development, in light of the progress of 5G
technology and the further increase in communication
traffic caused by the COVID-19 crisis.

SDGs and the Furukawa Electric Group Vision 2030

〈Minimizing negative impacts〉

The DNA of the Group is based on the words of the founder Mr. Ichibei Furukawa: "Value employees, value customers, value newtechnology, and contribute to society." We believe this idea will lead to the ESG management and SDGs adopted by the United Nations.
With these thoughts of the founder and the SDGs in mind, we have formulated the Furukawa Electric Group Vision 2030 (hereinafter"Vision 2030"). Vision 2030 shows the ideal state of the Group in 2030 when the SDGs are achieved, considering that we aim to solveinternational and regional social issues associated with the Group. The Group will achieve Vision 2030 and contribute to the achievementof the SDGs by addressing the important management issues (material issues) that must be addressed in order to achieve Vision 2030.

As we recognize that reducing greenhouse gas (GHG)
emissions in the manufacturing process is an important
issue, we promote various measures such as energy
saving at manufacturing plants.

Important management issues (material issues)

Energy Infrastructure - Submarine transmission cables for offshore wind power generation〈Increasing positive impacts〉
We will contribute to the realization of a decarbonized society
by supplying and laying submarine and underground cables,
which are indispensable for building interconnections
between renewable energy power sources such as offshore
wind power generation and power grids.
〈Minimizing negative impacts〉
In the process of laying submarine cables, we take care tominimize the impact on the marine environment.

Automotive Products - Aluminum wire harnesses〈Increasing positive impacts〉
The use of wire harnesses that use aluminum wires, which
are lighter than copper, contributes to the realization of adecarbonized society by reducing the weight of automobiles
and improving energy consumption through an improvementin fuel efficiency.
〈Minimizing negative impacts〉
With regard to energy use in the manufacturing process, we
promote an improvement in the ratio of renewable energyuse, in addition to energy saving at manufacturing plants.

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Electronics Component Materials - Oxygen-free copper wire

Consumer Issues

Community
Involvement

Data

Working with Local Communities to Achieve SDGs

〈Increasing positive impacts〉

Furukawa Electric promotes the following initiatives.

Oxygen-free copper wire is used in drive motors for electricand hybrid vehicles. The use of this product improves theRegistration with the Japanese Cabinet Office's "Public-Private Partnership Platform for Local SDGs"

efficiency of clean energy utilization and contributes to theRegistration as the Tochigi Prefecture SDGs Promotion Company

realization of a decarbonized society.

Registration as the Kanagawa Prefecture SDGs Partner〈Minimizing negative impacts〉

Registration as the Mie Prefecture SDGs Partner

In the manufacturing process, we increase the percentageof recycled copper and make effective use of natural
resources.

Activities to Advance Employees’ Understanding of SDGs
We believe it is important for all employees to work together and to work on material issues to achieve Vision 2030 and SDGs. The first

Functional Products - Thermal products

step to achieving that goal is to understand SDGs. The second step is to make each employee aware of the connection between their daily
work and SDGs. The third step is to put our heads together and share ideas for how to solve social issues. To advance these processes,〈Increasing positive impacts〉

we offer employee training every month such as distribution of e-learning programs and articles about SDGs on the intranet.

Thermal products with high-performance heat dissipationand cooling mechanisms improve the efficiency of energy
consumption and reduce running costs at data centers.

Related videos

This is one of the applications of these products and thepositive impact in terms of power consumption has attracted
worldwide attention. They also contribute to high-speed andhigh-capacity communication.
〈Minimizing negative impacts〉
With regard to energy use in the manufacturing process, we
promote an improvement in energy saving and the ratio ofrenewable energy use at manufacturing subsidiaries.

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Overview of Corporate Governance System

Corporate GovernanceWe adopted the current corporate governance system (in the organizational form of Company with the Audit & Supervisory Board),
believing that the effectiveness of auditing Directors’ execution of duties is secured by institutionally maintaining the independence of the
Audit & Supervisory Board and its Members from the Board of Directors, while ensuring their cooperation with Accounting Auditors andBasic Views and Guidelines on Corporate Governance

Auditing Department. Furthermore, to complement the supervisory function of the Board of Directors, the Company established
Nominating/Compensation Committee. The Committee consists of at least five members (where Outside Directors comprises a majority)
who are chosen among Directors by resolution of the Board of Directors; and the Committee Chair is, in principle, selected from Outside

Basic Views on Corporate GovernanceDirectors by the Committee members.
Based on the "Furukawa Electric Group Corporate Philosophy", we enhance our management performance responding appropriately tochanges in the business and market environment by prompt business decision making as well as with transparency and fairness. At thesame time, we ensure sound management by developing and establishing an effective internal control system. With these, we will expand

Corporate Governance Organization Chart

and develop our business on a sustainable basis and increase our corporate value. Furthermore, we seek to strengthen and enhance ourcorporate governance, in accordance with the followings:
1. We secure the rights and equal treatment of shareholders;
2. We consider interests of stakeholders including shareholders, and cooperate appropriately with them;
3. We ensure appropriate information disclosure and transparency;
4. Given its fiduciary responsibility and accountability to shareholders, the board of directors carries out effective oversight ofmanagement from objective standpoint, respecting the independent directors' role for the oversight;
5. We engage in constructive dialogue with shareholders who have investment policies in accordance with interests of mid- to long-term
shareholders.

Guidelines on Corporate Governance
Based on "Basic Views on Corporate Governance", we adopted "Guidelines on Corporate Governance"(hereinafter referred to as "theGuidelines") as a policy for enhancing our corporate governance.

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Audit & Supervisory Board

Monitoring and Supervising

The Audit & Supervisory Board and each its member auditor collect information about management under statutory investigation authority

Board of Directors

and report and express their views to the board meetings and the management from an independent and objective standpoint as afiduciary to shareholders.

Given its fiduciary responsibility and accountability to shareholders, the Board of Directors is responsible for promoting sustainable

Auditors ensure coordination with internal audit department through regular meetings, and report the policy, plan and result of auditing tocorporate growth and the increase of corporate value over the mid- to long-term and enhancing earnings capability and capital efficiency.

the board regularly.

The Board of Directors oversights and determines the matters listed below:

Full-time auditors attend the meetings such as Management Committee which decides major business matters, and they report information
obtained from these audit activities to the non-Full-time and outside auditors.

1. Determination of corporate governance-related matters;

We strengthen our audit function by appointing an assistant staff to the auditors who is dependent of management.

2. Establishment and amendment of business strategies and oversight of execution of such strategies and plans;

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

3. Determination of capital allocation policy-related matters;

For further details, please refer to “Audit & Supervisory Board Members and Audit & Supervisory Board” of Chapter 3, Section 4 of the

4. Appointment and dismissal of the Management team members(including identification of the skills set necessary for Board of
Directors as a whole), and determination of their remuneration(including delegation of such roles to Nominating/Compensation
Committee);

Guidelines (Guidelines on Corporate Governance

5. Establishment of an internal control system relating to compliance and financial reporting and risk management systems, andoversight of them;Business Operation

6. Decision on important business matters;

Our business consists of 12 operating divisions; and business divisions were established for directing and overseeing multiple operating

7. Others prescribed by the applicable laws and regulations etc.
For further details, please refer to “Board of Directors” of Chapter 3, Section 2 of the Guidelines (Guidelines on Corporate Governance).

divisions which are closely related to each other. As for our business execution, under the control of President being the chief executive,
operations are directed by General Managers of such business divisions as Communications Solutions Division, Energy Infrastructure).

Division, Electronics Component Material Division, Functional Products Division and Automotive Products Division. In addition, we have

At present, the Board of Directors consists of 11 Directors, 5 of whom are Outside Directors (all of them are registered at the Tokyo Stockdivisions to perform such head office functions as developing and implementing our business strategies/management plans, establishing

Exchange as independent officers). The Board of Directors is chaired by non-executive Chairperson of the Board who does not haveand maintaining corporate governance, risk management, and other management systems, and conducting marketing and sales activities;

representative rights. The Audit & Supervisory Board consists of 6 Members, 3 of whom are Outside Members (all of them are registered atand General Managers of respective divisions lead such functions. These General Managers, in the capacity of executive officers, serve as

the Tokyo Stock Exchange as independent officers). The Outside Officers of the Company have extensive experience in financial institutions,members of the Management Committee, which is the highest decision-making body of business execution. The Management Committee

trading companies, and business corporations or expert knowledge and experience in such areas as laws, finance/accounting, and industrial

deliberates and determines major operational matters. Furthermore, the Committee members report the status of business execution on apolicies, etc. The Board of Directors, in making decisions, respects Outside Directors’ opinions and suggestions from diverse viewpoints

quarterly basis to ensure effective communications among the executive officers, thus achieving integrated business execution.

based on their experience.

Furthermore, the status of business execution is reported to the Board of Directors on a quarterly basis.

Effectiveness of the Board of Directors

Reinforcing Internal Control

Our Company has conducted the effectiveness of the Board of Directors every year and we disclose the overview.
Overview of Evaluation Results on the Effectiveness of the Board of Directors

We establish, develop and operate its internal control for the purpose of efficient execution of responsibilities, compliance, risk
management, information management and group company management.
For further details, please refer to "Systems for ensuring compliance of directors' execution of duties with laws, regulations and the Articles

Nominating/Compensation Committee

of Incorporation and soundness of other operations".
We established the Nominating/Compensation Committee, which has functions of both Nomination Committee and Remuneration
Committee. The Committee has deliberations on the nomination of Directors and other officers and their remuneration, etc., aiming at

Corporate Governance Reportensuring the objectivity and transparency concerning such matters, and strengthening corporate governance. The Committee consists of atleast 5 members (the majority being Outside Directors) appointed by resolution of the Board of Directors; and the Committee Chairperson
is chosen, basically among Outside Directors, by the Committee members. As of the submission date of this Report, the Committee has 7

Corporate Governance Report

members; namely, Osamu Tsukamoto (Outside Director), Takashi Tsukamoto (Outside Director/Committee Chair), Yoshiro Miyokawa(Outside Director), Yukiko Yabu (Outside Director), Tamotsu Saito (Outside Director), Mitsuyoshi Shibata (Director/Chairperson of theBoard), and Keiichi Kobayashi (Representative Director & President).
For further details, please refer to “Nominating/Compensation Committee” of Chapter 3, Section 3 of the Guidelines (Guidelines on
Corporate Governance).

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Overview of the Risk Management and its Structure

Risk Management

Our Risk Management Committee evaluates risks from the management and operational perspectives to identify important risks that must be
addressed on a company-wide basis, and prioritizes countermeasures. In each area, the committee promotes risk management related tobusiness activities through the activities of various specialized committees, such as the Environment, Quality, Safety, and Disaster Prevention.

Risk Management System
Examples of Management Perspective Risks

The Furukawa Electric Group has established the Risk Management Committee, chaired by the President, vice-chaired by the General
Manager of the Risk Management Division, and composed of members from the management level. This committee deliberates on issues

Business Portfolio

related to the Group's risk management, internal controls, and compliance, and has adopted a system for supervision and promotion.

Human resources and organization

Climate change (carbon neutral)

Quality control

Effects of disasters, infectious

Examples of Operational Perspective Risks

The Risk Management Committee provides a bird's-eye view of risks by assessing risks from the management and operational perspectives,and determines important risks that must be addressed on a company-wide basis and prioritized for action. In addition, we have established

Employee health and safety

special committees to focus on the management of risks that are considered highly important, such as quality control, health and safety,

diseases, etc

environment, and disaster prevention and business continuity management (BCM).We are working to strengthen our risk management system
related to business activities.When important decisions are made by the Board of Directors, the Management Committee, or through the

See ”Business-Related Risks” for details.

approval process, etc., the risks anticipated from such matters are clearly stated in documents, etc., and decisions are made based on anawareness of these risks.

In the event of a crisis such as a large-scale disaster, Furukawa Electric Group will establish Emergency Response Headquarters, headed by
the president, and Site Response Headquarters that defines each department's roles and clarifies them as necessary. We have prepared an
initial response manual, stockpiled necessary supplies, and established a system for communication and safety confirmation, and conductperiodic drills.

BCM (Business Continuity Management) activities
Furukawa Electric Group, fully aware of its social responsibility, has formulated a Business Continuity Plan (BCP) and will work on BusinessContinuity Management (BCM) based on the following basic policy in order to minimize damage and continue business activities even in theevent of unforeseen risks such as natural disasters and infectious diseases, etc.

Furukawa Electric Group BCM Basic Policy, established in June, 2009

1. Respect for human life
We place the highest priority on ensuring safety of all employees, their families, local society, customers and all otherstakeholders.
2. Prevention of the expansion of damage

Promotion system chart

We will strive to prevent secondary disasters (fire at company facilities, environmental pollution, etc.).
3. Continuation and early restoration of important businessAs a socially useful company, we will aim to continue important business as far as possible and even if it is suspended, we aim forearly restoration.
4. Contribution to local communities
As a company trusted by society, we will strive to cooperate with local residents and local authorities.
5. Implementation of business continuity management
We will constantly review and improve our business continuity plan, aiming at becoming a company that is trusted by stakeholders
and resilient to risk.

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Promotion in obtaining ISO certification

Consumer Issues

Community
Involvement

Data

Information Security

In order to strengthen the business continuity activities, we are actively working to obtain ISO22301 certification, the international standard forInformation security is considered one of the highest priority risks Furukawa Electric Group has to handle. Therefore, all related divisions are

the business continuity management systems (BCMS). So far our “laser diode products business” (Chiba Works),“copper wire products

working together to address it from the perspectives of information systems, intellectual property protection, and information management.

business” (Mie Works), and“copper and copper alloy products (the original products) business”(Nikko Works), have acquired the certification.

Cyber security
As a technical measure against cyber security risks, which are becoming more sophisticated and serious every year, we introduced an EDR
system*1 in FY2021, which monitors the behavior of PCs and other terminals and blocks unauthorized external communications, in place of
conventional anti-virus software. As an organizational measure, in fiscal 2017 we began the activities of the "Furukawa Electric CSIRT*2" topromptly respond to incidents, large and small, of the Group.
In preparation for a situation in which Group companies and supply chains are targeted and damage expands, we are exploring ways torespond to incidents involving Group companies. In FY2022 we conducted cyber incident response training in collaboration with the CSIRT
organizations of several domestic affiliates. In the future, we intend to expand the training to other major group companies, aiming to establish
a global cyber security system for the Group.

BCM exercise

Cooperation Exercise between Head Office (Emergency Response Headquarters) and Business Sites (Affected Areas)
In the event that a business site suffers extensive damage due to a natural disaster, etc., it is necessary to smoothly coordinate with the head
office's emergency response headquarters and work as a team to achieve business restoration as quickly as possible. To prepare for such
events, we conduct an annual drill to ensure coordination between the head office (emergency response headquarters) and business sites(affected areas).
In fiscal 2022, based on the assumption that a fire occurred at the Hiratsuka Plant, we conducted an exercise on the post-disaster information
disclosure process by connecting the site and the head office remotely.
The task force in the affected area, the plant, the headquarters emergency task force, and the sales and planning departments participated in
the exercise to examine the contents and timings of information required by various stakeholders, including customers, partners, shareholders,and investors, to verify the effectiveness of the current process.
We will steadily improve the issues identified in the exercise and promote employee training to further strengthen the resilience of criticalbusiness continuity.

*1 EDR System: EDR (Endpoint Detection and Response) is an information security product that monitors PCs and other terminals (endpoints) to detect andrespond to abnormalities. Unlike conventional antivirus products that prevent virus infection and attacks, EDR is designed to detect viruses and respond quickly
after infection, based on the premise that unauthorized access or other attacks may occur.
*2 CSIRT: The abbreviation of “Computer Security Incident Response Team”. The team is prepared to cope quickly with cyber incidents, investigating the cause,
identifying the extent of effects, and eradicating the incidents.

Personal information protection
Prior to the enforcement of the revised Personal Information Protection Law in April 2022, we informed employees of the revisions at in-housecompliance seminars (November 2021) and information security awareness month (February 2022).
In addition, the Personal Information Protection Law in China went into effect in November 2021. We alerted our offices in China, provided
guidance on how to respond, and took action when personal information is transferred from the local site. In February 2023, the Measures for
Cross-border Standard Contracts on personal information were announced officially. After the enforcement of the law, compliancerequirements for domestic and overseas companies regarding the transfer of personal information will increase, and we are taking measures
to meet these requirements.

FY2022 cooperation exercise between head office and disaster area
(at the headquarters meeting room)15

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Fair Operating
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EnvironmentIntellectual Property Risks

Consumer Issues

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Data

Compliance

The Company aims to stabilize the management by strategically creating the intellectual property rights based on the patent portfolio
management that grasps the trends in the other companies, also by reducing the intellectual property risks.
The intellectual property risks are divided into four categories: “Rights infringement risks”, “Counterfeit products risks”, “Contract risks” andBasic Approach“Technology leakage risks” and we continuously remind our employees to respond to risks. For example, against the “Technology leakage
risks”, the following measures are taken: “Technology concealment of the development site and the production site”, “Information maintenancestrengthening with the time stamp system”, etc.

Furukawa Electric Group regards compliance as "not only observing laws and regulations, but also as acting in accordance with the values

We also develop the intellectual risk reduction activity in Furukawa Electric group globally through implementation of the systematic training,and ethics required of the company and its employees as responsible members of society". Each and every employee is encouraged to

the regular publication of the newsletters introducing efforts to reduce those risks, and recognition of the President award for excellent

perform day-to-day compliance activities in line with our three musts for compliance activities: to "be aware", "speak" and "rectify".

inventions and activities, etc.

1. Be aware
Is this in line with the philosophy and CSR Code of Conduct?

Challenges and Future Policy

Is this an improper practice?

Following our international business development, risks that Furukawa Electric Group faces are becoming more diversified and complicated

Does this run counter to society's requirements and expectations?

each year. We particularly recognize that risks inherent in overseas operations― mainly in emerging countries―and risks from the supply

2．Speak

chain standpoint are our top priority issues as well as addressing geopolitical risks and economic security, and we will strengthen our

Do not neglect it.

countermeasures against them.

Talk about it openly.

While assessing changes in the environment in the future, we will implement necessary countermeasures in a prompt and flexible manner.
Three Musts for Compliance Activities

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

If still not sure, take it to your boss.
3. Rectify

FY 2022
Targets

Thorough Compliance

As soon as you become aware of it, fix it.

FY 2023
Results

Targets

Implement e-learning on Anti-

We conducted e-learning for the

Conduct seminars on Anti-Bribery

Bribery and Competition law, andGroup and our domestic andand Competition law, and conduct

conduct training online in Mexico.

overseas affiliates.

education in Taiwan.

Always improve.

Training and Raising Awareness among Employees

We held compliance education

We conduct a host of training and awareness activities in the aim of instilling compliance awareness among all employees. Our primary

remotely for local staff andshared educational materials are the Furukawa Electric Group CSR Code of Conduct and its corresponding Furukawa Electric Group CSR

expatriates in Mexico.

Compliance Handbook. We distribute this handbook to all Furukawa Electric Group employees and take many opportunities to make use ofPrioritize risks and continuously

We created a system of evaluating

Establish evaluation of risk control

Advanced risk management for

expand and deepen risk control

risk control activities in order toactivities and identify issues forthe entire group

activities.

continuously expand and deepen

improvement of the system.

it. We conduct compliance education for employees at every level of the Company, from new recruits to directors. At the same time, wehold theme-based group training and e-learning courses, and conduct groupwide compliance education.

the activities.

Strengthening cyber security
measures

Conduct education and training,

Information security education andConduct education and training,and expand establishment of

e-mail response training are

and expand the establishment ofincident response organizations in

conducted annually.

incident response organizations ingroup companies.

Our CSIRT* strengthens theInitiatives in Compliance Months
Furukawa Electric Group has designated October and November as Compliance Months, during which we implement measures aimed attackling the variety of compliance issues faced by companies across our Group.

group companies.

incident response capabilities ofthe entire group, and conducts
exercises with affiliatedCompliance Awareness Surveys

companies.

Furukawa Electric Group continues to conduct a compliance awareness survey every other year. The purpose of the survey is to ascertain* CSIRT: The abbreviation of “Computer Security Incident Response Team”. The team is prepared to cope with cyber incidents.

the current status of the organization by investigating how individual executives and employees feel about compliance and organizational
culture and to utilize the results for compliance promotion measures within the group. The results of the survey are fed back to participatinggroup companies for use in the formulation of compliance measures at each company. In FY2021, we reviewed the questions from theperspective of "Business and Human Rights" and conducted the awareness survey.

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Requirements of Furukawa Electric Group Anti-Bribery Statement

Whistleblowing System

1. Do not give, offer, promise, accept or demand, directly or indirectly, anyone a bribe.

Furukawa Electric Group has introduced a whistleblowing system for early detection and correction of misconduct. Furukawa Electric has
established not only the whistleblowing desk but an external whistleblowing desk (Furukawa Electric Group Hotline) using a third-party

2. Ensure that payments to Government Officials are made according to adequate approval procedures and are reviewed appropriately.

organization outside the company, both of which allow employees to make reports anonymously. While giving full consideration to ensure

3. Are fully aware of, and comply with the applicable anti-bribery laws and the Furukawa policy through training programs andcommunication of the policy. Employees, agents and Business Partners are furthermore required to declare compliance to applicableanti-bribery laws and the Furukawa Electric Group policy.

that the informant does not suffer any disadvantages, the whistleblowing office strictly manages the content of reports, investigates them
promptly, and takes appropriate measures. Furthermore, depending on the content of the reports, we have an established system toensure fairness by seeking opinions from outside experts. We also have introduced a whistleblowing desk for overseas group companies,

4. Engage only with legitimate and transparent Agents and Business Partners, after performing adequate due diligence procedures on
the Agent or the Business Partner.

and as of the end of FY2022, 45 companies in 17 countries had introduced it. The number of whistleblowing in the Group was 103 in
FY2022, of which approximately half were related to human resources and labor relations. Only a limited number of them turned out to be

5. Regularly assess Bribery Risks concerning the business of the company.

true as pointed out. However, all of them, including parts of them turned out to be true, have been corrected through the implementation of

6. Maintain record keepings and financial controls to enable demonstration of compliance with anti-bribery laws and the Furukawa
Electric Group policy.

preventive measures. The Group recognizes the whistleblowing system functions well based on the fact that there was a certain number ofwhistleblowing.

7. Regularly review and update its policy and controls where necessary to prevent bribery.
8. Promptly report any suspected violations of the applicable anti-bribery laws or the Furukawa Electric Group policy by any of theGroup’s Employees, Agents or Business Partners, so that any violations or suspected violations are dealt with timely.

Security Trade Control
Furukawa Electric Group considers security trade control to be one of its most important responsibilities as a company with global business

Tax Compliance Policy

operations. In accordance with the laws and regulations that make up the international framework on security trade control (the export
control regime), we have improved and strengthened our management systems for cargoes and technologies that can be converted toweapons or military uses. In exporting products and providing technology, we conduct transaction screenings based on our Security Trade

We, Furukawa Electric Group, acknowledge that “tax compliance” is of utmost importance for our group and shareholders. In addition, weControl Regulations to ensure compliance with relevant legislation and are careful to prevent circumvent to countries of concern.

understand that the taxes we pay play an important role in the economic and societal development of the receiving countries and tax
jurisdictions.
Therefore, Furukawa Electric Group recognizes that the payment of taxes in compliance to the laws and regulations of each country andAnti-Bribery

jurisdiction is a natural obligation and a method for contributing to society.
“Tax compliance” is also in accordance with Furukawa Electric Group’s CSR Code of Conduct which states that we regard compliance as

Furukawa Electric Group formulated the Furukawa Electric Group Anti-Bribery Statement in April 2012. In December, we published the"not only observing laws and regulations, but also as acting in accordance with the values and ethics required of the company and its

Furukawa Electric Group Anti-Bribery Guide (revised to the second edition in May 2018), and we are promoting activities toward creating aemployees as responsible members of society."groupwide bribery risk management system.

Thus, we are committed to abide by local and international tax laws, build a trusting relationship with the local tax authorities, andundertake in creating an international tax framework centering on transfer pricing in addition to giving careful attention to the following:

Furukawa Electric Group Anti-Bribery Statement (English)

1. We don’t address tax avoidance through adopting organizational structures that do not coincide with actual business purposes and古河ऄ工集֝禁止行受带基本方୓（中文）operations.
2. We need to recognize all the transactions are made based on a business purposes and operations, make decisions in considerationof social demands behind even in the case that there are tax benefits, and decide such transactions will not be made if there are nocoinciding business purposes and operations.
With the premise that the above tax compliance rules are being observed, Furukawa Electric Group will endeavor to minimize tax risks,
apply tax benefits such as tax deductions performing regular checks of tax positions in relevant countries and tax jurisdictions, and reduce
unnecessary tax costs in order to maximize shareholder value.

Challenges and Future Policy
Regarding the various legal compliance measures we have taken to date, we recognize as a Group that our task is to expand the scope ofparticipation of Group companies. Going forward, we will try to raise compliance awareness by focusing on more effective education
content with a Group perspective and enhancing its global implementation system. We will also hold more compliance seminars taking
account of local laws, languages and customs, encouraging individual initiative under the slogan “Think and conduct compliance together”.

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Initiatives for minimizing the negative impacts on human rights for business partners

Human Rights

The Group evaluates the human rights risks at business partners (suppliers) of the Group through the Self-Assessment Questionnaires (SAQ) based on the Furukawa
Electric Group CSR Procurement Guidelines (Third Edition), which is based on the RBA (Responsible Business Alliance) Ver. 7 Code of Conduct.
In FY2021, the company conducted SAQ for 56 of our major partners, starting with 79 domestic and overseas group companies that are also our partners. In FY2022,

Basic Approach to Human Rights

we expanded the scope of the survey to include approximately 500 of the Group's partners. As the result, no major risks to human rights have been identified at thistime, but we will continue to communicate with our partners on an ongoing basis to ensure that their understanding of the Group's human rights efforts is enhanced.

Based on the Furukawa Electric Group Philosophy, the Group fully understands that the human rights of all people affected by its business activities must be

Furthermore, we plan to gradually expand the scope of this activity, aiming to achieve a global SAQ implementation rate of 100% by FY2025.

respected as it develops its global business, and respects human dignity and all internationally recognized human rights. We also promote initiatives to respect humanrights in line with the United Nations Guiding Principles on Business and Human Rights, which require companies to “commitment of human rights policies,”“implement human rights due diligence,” and “establish remedy mechanisms”. In addition, based on the change of recent business environments and the increase insocial requests, “human rights and labor practices” was added as a sub-material issue of “building a governance system to strengthen risk management” at FY 2021.

Furukawa Electric Group Human Rights Policy
In accordance with the International Bill of Human Rights (Universal Declaration of Human Rights and International Covenants on Human Rights), the ILO Declaration
on Fundamental Principles and Rights at Work of the International Labour Organization (ILO), and the UN Guiding Principles on Business and Human Rights, theGroup established the Furukawa Electric Group Human Rights Policy on January 27, 2020.
Furukawa Electric Group Human Rights Policy established

SystemThe Group's Sustainability Committee deliberates on sustainability issues, including human rights initiatives, and makes proposals and reports to the Board of
Directors. The committee is chaired by the President, vice-chaired by the General Manager of the Strategy Division, and composed of members of top management.
The Corporate Sustainability Office serves as the secretariat, and the committee generally meets twice a year.
Sustainability Policy/Committee

Implementation of Human Rights Due Diligence
We have set "responsible minerals sourcing" as the issue and are implementing initiatives in response to recent changes in social trends and increasing social
In response to changing social demands for human rights, such as forced labor, child labor, and discrimination, as well as growing interest in human rights throughout

demands for minerals sourcing. In September 2022, we established the Furukawa Electric Group Responsible Mineral Sourcing Policy. Going forward, we plan tothe supply chain, the Group began efforts to implement human rights due diligence in FY2021. The Group has designated employees and partners* as the priority

strengthen the Group's internal structure for minerals sourcing.

stakeholders for human rights due diligence.

Supply Chain Initiatives* We refer to our supplier as “Partners” who co-create value.

Establishment of Remedy Mechanisms
Initiatives for minimizing the negative impacts on human rights for employees
For employees, the Group has established an internal whistleblower system with an internal contact point and an external contact point using an external third-party

Through the compliance awareness survey conducted in FY2021, we investigated human rights risks. Based on the survey results, we identified the issue asorganization for reporting negative impacts on human rights. For stakeholders other than employees, in addition to the existing “Inquiries other than product inquirers”"harassment" and are implementing remedial measures.

window on the website, the Group joins the “Japan Center for Engagement and Remedy on Business and Human Rights” (JaCER), which was established by the
CSR Committee of the Japan Electronics and Information Technology Industries Association (JEITA). We will respond with objectivity and transparency so that we can

In FY2022, some of the heads of each division and group company held dialogues with the Human Rights WG Secretariat to promote improvements and measures onmove closer to a grievance mechanism that guarantees the effectiveness required by the Guiding Principles on Business and Human Rights.

the identified issues. In addition, with the intention of encouraging employees to learn and be aware of the issues identified, some messages from division heads andcompany presidents and educational measures were being developed. We plan to verify the improvements through another compliance awareness survey in FY2023.

Internal Reporting System for Compliance

We also provide education and training within the Group. In FY2022, we implemented e-learning courses on "Discrimination and Harassment" during the annual

Inquire about human rights (Jump to JaCER's Form)

Compliance Month to ensure that respect for human rights is firmly established among all employees and the organization. All managers of group companies indomestic and overseas were targeted, and global implementation rate was 100%. We plan to continue the e-learning on an ongoing basis.

18

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Participating in the UN Global Compact

Community
Involvement

Consumer Issues

Data

Targets and Results

The 10 principles of the UN Global Compact include principles related to human rights, such as support and respect for the protection of human rights, not being

Results of Efforts in FY2022

complicit in human rights abuses, elimination of forced and compulsory labor and abolition of child labor. The Group company supports the UN Global Compact andhas participated in it since 2020.

Initiatives

In FY2022, the Company participates in the human rights subcommittees of Global Compact Network Japan, as below.

Envisioned issues

TargetContents on human rights in general, including specific issues

Human Rights Due Diligence Subcommittee

The Furukawa Electric Group Safety and Health Committee

Supply Chain Subcommittee

Human rights/Safe and health educations according to rank
Exchange of opinions between labor and management
Compliance Month Activities

Dialogue with Stakeholders
Employee

Harassment

Each fiscal year, the Group holds dialogues with several investors, and in FY 2022, the Group held direct dialogues with institutional investors. Through these

Dissemination of General Manager's Message
Activities to understand and disseminate the Furukawa Electric Group CSR Code of Conduct
Education on harassment and working hour management

dialogues, we have received valuable feedbacks on the status of the Group's ESG management initiatives, such as climate change countermeasures andEducation on competition law and bribery

governance, as well as on issues and expectations related to human rights, such as human rights due diligence and supply chain management.

Messaging by general managers of divisions and company presidents and educational measures, with the intention of encouraging

We also engage in dialogues with our labor union at the biannual "Central Management Briefing" and on a daily basis to resolve various issues such as labor

employees to learn and become aware of the issues identified

practices.

"Discrimination and Harassment" E-learning, focusing on managers within the GroupWe will reflect the learnings from these dialogues in future measures to further enhance engagement with stakeholders.

Organizing Partners' Meetings
Business

Responsible minerals

partners

sourcing

Conducted SAQ surveys (about 500 companies) and dialogue based on the Furukawa Electric Group CSR Procurement
Guidelines
Implementation of CSR questionnaire
Establishment of the Furukawa Electric Group Responsible Minerals Sourcing Policy

Indicators and Targets

Indicator

Percentage of managers trained on human rights risks*

Ratio of SAQ implementation based on the CSR Procurement
Guidelines for major suppliers**

Result for FY2022

100％ in Global

34% in Global

Target for FY2022
Start in Domestic Group
Companies

20% in Global

Target for FY2025

Maintain 100% in Global

100% in Global

Sustainability indicator

Policy and Initiatives on Children's Rights
The Group supports the Convention on the Rights of the Child and the Rights of the Children’s Rights and Business Principles and respects the rights of children. In
addition, the Company is a sustaining member of "National Federation of UNESCO Associations in Japan". In accordance with the Furukawa Electric Group Basic
Policy on Social Contribution Activities, the Group is engaged in social contribution activities and other activities to realize children's rights, with a focus on fostering
the next generation. To promote children's right to education, we provide educational support for local schools on a global basis.
Local Community Contribution, Social Contribution

19

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Safety and Health Activities Presentation Meetings

Occupational Health and Safety

We hold presentation meetings on Furukawa Electric Group’s safety and health activities
and awarding the best with commendations. In fiscal 2022, 11 teams were selected fromthe SBUs (including 5 teams from group companies) to give presentations and receive

Basic Approach to Occupational Health and Safety Management

awards from the president.

In addition to basic legal compliance, Furukawa Electric Group prioritized initiatives that promote "becoming a safety conscious person"and "realizing fundamental safety." Our basic approach is to aim for zero accidents and zero illness through safety activities focusing on
three initiatives, that is, safety management in addition to the abovementioned two initiatives.

Safety and Health Activities Presentation

Basic Policy on Health and Safety Management

Site Inspections by Officers

Endeavor to eradicate accidents by inspections and management in accordance with the Industrial Safety and Health Act.

Furukawa Electric’s safety officers make site inspections at Furukawa Electric Co., Ltd. andNurture safety conscious persons that can notice and avoid danger by practicing “pointing and calling”, and complying with rules.

group companies whenever an accident occurs depending on the safety performance inRealize “fundamental safety” by keeping people away from dangerous machinery and equipment to eliminate unsafe conditions.

the previous fiscal year. They confirm how appropriate the safety measures are and what

Raise the quality of safety management by carrying on dialogue, showing empathy, and promoting standardization throughhow to promote fundamental safety in order to prevent any recurrences. They conducted

extent the measures have become established. In addition, they exchange opinions on

implementing SIDIS* cycle.

site inspections of 4 sites in fiscal 2022. However, in cases where it was not possible tovisit the site to prevent the spread of the new coronavirus, they watched streamings of thePromote mental and physical health by accelerating Furukawa Electric Group’s health management activities.

sites and held online meetings to exchange opinions.
Site inspections by officers* SIDIS cycle: Stare & Imitate, Dialogue, Improve, Standardization, coined term by Keiichi Kobayashi, the former president. It refers to safety activities inparticular to imitate the working posture and eyes of workers to identify sources of danger and dangerous behavior, discuss them with workers, clarify theircauses, and take essential measures. This is called SIDIS cycle.

Promotion System
Furukawa Electric Group has established the Furukawa Electric Group Occupational Health & Safety Committee, chaired by the president,
as the highest body for promoting occupational health and safety at a group level. The committee membership is composed of executives,and carries out deliberation, decision-making, and follow-up activities on policies and initiatives in health and safety for the entire Furukawa
Electric group.

Promotion System

20Organizational
Governance

Basic Approach

Human Rights

Labour Practices

Fair Operating
Practices

Environment

The Status of Work Related Accidents

Consumer Issues

Community
Involvement

Data

Health and Productivity Management

Furukawa Electric‘s safety performance in fiscal 2022 was three accidents with lost working days, and failed to meet its target of “zeroFurukawa Electric Group Health and Productivity Management
Declaration

accidents with lost working days”. The frequency rate of accidents resulting in time off work*1 was 0.32 in Furukawa Electric, the same aslast year, and increased to 0.38 among all Group companies in Japan*2. We will continue to work on safety and health activities with theaim of achieving zero accidents with lost working days.

From the managerial viewpoint, “Furukawa Electric Group Health and Productivity Management Declaration” was established, in order topromote “Health and Productivity Management” which strategically strives for the Health and Productivity Management and the healthpromotion of the employees. We assist our employees in raising their health consciousness and actively engaging in their own healthpromotion.

Furukawa Electric Group Health and Productivity Management Declaration
The Furukawa Electric Group recognizes that the “promotion of employees’ mental andphysical health” is an important management issue, and we will further advance theactivities that we have been working on as part of our safety and health management.
In order to “Nurture human resources at every level, so that we can become a morediverse and creative organization” as stated in the Management Philosophy, it is importantfor employees to be able to face their work in good physical and mental conditions as thebasis of their work style. For this reason, the Group will “ become a corporate group we

Frequency rate of accidents resulting in time off work

can be proud of, where everyone can work with enthusiasm and continue to grow” byprioritizing safety and health over everything, promoting various activities of Health and*1 Frequency rate = (Number of casualties / Total actual work hours) x 1,000,000

Productivity Management throughout the Group.

*2 The calculation for fiscal 2022 covered full-time and temporary employees at a total of 29 companies consisting of Furukawa Electric and Group companies
in Japan.

We will also strengthen our work style reform and cooperation with the health insurance*3 Data on all industries and the whole manufacturing industry is from Ministry of Health, Labor and Welfare survey results

program of our health insurance society. Through these initiatives, we will work even more
actively to support the health promotion of our employees and to take measures to raise

Meanwhile, the accident frequency rate in fiscal 2022 for the whole Group including overseas Group companies was 0.44. This included

health consciousness.

accidents both resulting in and not resulting in time off work.

Please see below for companies included in the calculation.
List of all applicable companies： Occupational Health and Safety - Scope of the frequency rate of accidents resulting in time off
work

Targets and Results (Accidents)

FY 2022
TargetZero accidents with lost working days

FY 2023
ResultThree accidents with lost working days

TargetZero accidents with lost working days

21

PresidentBasic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Collaborative Health Promotion System

Health and Productivity Management

Together with the Furukawa Electric Health Insurance Society, Furukawa Electric has set up a collaborative health promotion team to

Health and Productivity Management Promotion System

discuss collaboration between the company's health promotion activities and the association’s healthcare business at regular meetings.
The company also holds a review meeting to reflect the opinions of occupational physicians and nurses.
In addition, in collaboration with the “Health Event” business of the Furukawa Electric Health Insurance Society , each Furukawa Electric
corporate works and branch office implements various innovative health promotion activities.

Safety and Health Promotion System
The Furukawa Electric Group established the Furukawa Electric Group Occupational Health and Safety Committee, chaired by the

Furukawa Electric Health Insurance Society(only available in Japanese)

President, as the highest body for safety and health management. The committee deliberates, decides and follows up on policies andmeasures for safety and health activities.

<"Health Event" of the Furukawa Electric Health Insurance<Efforts at each Furukawa Electric corporate site>

Society>・Seminar on maintaining healthy blood

22

June: Month for making breakfast-eating habit

・Seminar on dietary habits and sleep improvement

September: Month for improving sleep sufficiency

・Traveling clinic for women's health checkup

December: Month for helping employees have a healthy liver

・Women's health seminar

January: Month for developing exercise habit

・Cancer checkup recommendation seminar, etc.

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Key Issue Items

Health and Productivity Management

1. Improvement of health literacy

Health Management Guidelines

2. Continuation of mental health measures
3. Continuation of measures against metabolic syndrome

Furukawa Electric Group establishes policies and issues as the “Health Management Guidelines” every year, which focus on health

4. Maintenance and improvement of physical function

management including work environment management and work management. We encourage the Group companies and each Furukawa

5. Support for smokers to quit smoking and the reduction of smoking rate

Electric works to promote health management activities.

6. Thorough measures to prevent heatstroke

Furukawa Electric Group Health Management Guidelines

Progress of Previous Initiatives

Basic Policy

We have worked for many years to raise the level of safety and health under the principle of "Safety First”. For health activities in particular,
we have been appointed a dedicated occupational physician who oversees the health activities since 1957 and we have since actively(Strengthening Cooperation with the Health Insurance Society)promoted our efforts based on a team system centered on the occupational physicians and nurses. Recognizing that the "promotion of

Promote mental and physical health by activating the Group’s health management activities

employees’ mental and physical health" is an important health issue, we have been promoting Health and Productivity
Management company-wide since 2017 in order to further advance the health activities we have been working on as part of our safety andhealth management activities. We selected the following five items as elements that enable employees to face work in good mental and

Key Issues

physical conditions: "health literacy, mental health, smoking, physical function, and metabolic syndrome". We promote the Furukawa
Electric style of Health and Productivity Management company-wide by continually approaching the five items throughout the year.

1. The Furukawa Electric Group will work to maintain and improve the health of employees as a management issue.
2. We strengthen cooperation with the Health Insurance Society to improve the level of the Group’s health promotion activities and ourIn addition, in order to promote the development of Health and Productivity Management

employees’ health literacy.

not only within the Company but also within the Group companies in Japan, we changed
the name of the “Health Meeting ,” which had been held for many years, to the “Furukawa
Electric Group Health and Productivity Management Meeting” in 2020.

Furukawa Electric Health Management Guidelines

Our Group also holds "Partners' Meetings" where our key partners* assemble. We held alecture on the theme of Health and Productivity Management by the supervising
occupational physician in FY 2023.

Basic Policy* The group calls our business partners as "partners" who co-create value.

Cooperate with the work style reform and with Health Insurance Society to enhance the health literacy of each employee and work on
Health and Productivity Management
Promote health through mental health measures, measures against metabolic syndrome, improvement of physical function, and support
for smoking cessation in line with the Medium-term management plan

Goals
1.0% or below of newly long-term absence rate due to sickness/injuries
0.5% or below of newly long-term absence rate due to mental illness
Maintain 50% or below rate of anomaly observation rate in periodic medical checkup

23

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Mental Health Measures

Health and Productivity Management

Mental health measures started at the Company in FY 2002. We have introduced a counseling system based on an external employee

Efforts to Promote Health and Productivity Management

assistance program (EAP) and company-wide mental health education programs, including line-care and self-care training, and have rolled
out various mental health education company-wide. We introduced a stress check system in FY2016 in accordance with the revised law.
We also provide the opportunity for employees to consult with a doctor.

In-House Greetings is “Go-Anzen-Ni! Go-Kenko-Ni!”<Examples of mental health education>

For the Company greetings, we say "Go-Kenko-Ni!" (stay healthy) along with the manufacturing industry’s beloved greetings, "Go-Anzen-

Training for supervisors and managers to improveNi!" (stay safe) among employees to raise each employee’s awareness of health.

communication skill
Mental health training focusing on work engagement

Industrial Health Medium-term 5-Year Plan

Stress control training using cognitive behavioral therapy
Discussions for good workplace<Rate of employees undergoing stress check>As part of the e “Five-Year Medium-term Plan for Occupational Health ” toward 2025, we promote health promotion activities based on the

FY2018five pillars of improving employees’ health literacy and physical functions, etc., aiming to become a corporate group we can be proud of,where everyone can work with enthusiasm and continue to grow.

FY201996.0%

FY202097.7%

FY202197.3%

FY2022
97.0%

96.1%

Improvement of Business Performance Such as Presenteeism, Etc.
Strengthening Passive Smoking Measures
In order to evaluate and analyze business performance, we use the Work Functioning Impairment Scale (WFun) as a presenteeism
indicator to calculate the percentage of employees with 21 or more points (moderate or higher). The percentage was 23.3% in FY 2021

The company has been fully implementing measures for smoking prevention including prevention ofand 21.0% in FY 2022, which is improving from 24.5% in FY 2020. The absenteeism indicator is calculated based on the number of days

passive smoking and promotion of smoking cessation since FY 2003. We have achieved the company-of absence from work due to long-term illness per employee, which decreased to 5.73, 5.13, and 4.81 days during the same three-year

wide goals of “no smoking during working hours (FY2017)” and “no smoking on the premises (FY2020).”

period. For the work engagement assessment, the three items of the Utrecht Work Engagement Scale were measured, with 3.09 points,

The percentage of employees who smoke continued a downward trend from 48.2% in FY 2003, reaching

2.99 points, and 3.03 points respectively in the same three-year period.

20.3% in FY 2021 and 19.7% in FY 2022, showing that our initiatives have had a positive impact on thelifestyles and habits of the employees. Going forward, we will continue to provide employees witheducation and consultations by occupational physicians on smoking cessation guidance to help smokers

Short Message of Health Declaration

quit smoking.

The Company started a " Short Message of Health Declaration" by all executives and employees to promote health and improve healthliteracy in 2018. Every employee considers what they will carry out to improve their own health and gives a message at their workplace.
Smoking cessation poster

Healthcare for Employees Working Long Hours
Introduction of Measures to Prevent Falling Accidents
In accordance with the Guidelines issued by the Labor Standards Bureau, the Ministry of Health, Labour and Welfare, entitled “Measures
to be taken by employers to prevent health impairment due to overwork”, we strive to manage the health of employees who work long

The falling accident increases with age. There is a risk of an increasing number of falling accidents as the members of the Company arehours by implementing strict limitations on working hours based on the health checkup results and by arranging consultations for suchaging; We have introduced education to prevent falling accidents and exercises (work out) since FY 2016.

workers with occupational physicians.

Support for Sleep Improvement
We hold seminars, etc. to help employees have a quality sleep, introducing a portable kit for the early detection of sleep apnea syndrome.

24Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Measures against Infectious Diseases

Consumer Issues

Community
Involvement

Data

Health and Productivity Management

For overseas business trips and assignments, in accordance with the "Guidebook to Health Management for Overseas Workers"

The Health & Productivity Stock Selection and the Health &Productivity Management Outstanding Organization

established by Furukawa Electric Group, the Group conducts medical checkup (before and after the business trip, periodical checkup
during the assignment), provides vaccinations (hepatitis A, hepatitis B, tetanus, Japanese encephalitis, rabies, measles and rubella,typhoid, polio, etc.), and publishes a Health Management Handbook for expatriates. The Guidebook is made by the supervising
occupational physician and occupational health nurse, collecting and analyzing various information from the Ministry of Health, Labour andWelfare, the Ministry of Foreign Affairs, the World Health Organization (WHO), etc. The contents are revised as necessary. We respond to

Furulawa Electric was selected as a "brand for the Health & Productivity Stock Selection 2023" by the Ministry of Economy, Trade anda variety of health risks including infectious diseases associated with overseas business trips and assignments by continuously

Industry and the Tokyo Stock Exchange.

implementing these in-house measures.

The company also has been certified as a "Health & Productivity Management Outstanding Organization (Large Corporation Division)” for

The world has been facing global health challenges caused by the three major infectious diseases: HIV (AIDS), tuberculosis, andseven consecutive years since 2017. (certified as a “White 500” in 2017-2020 and 2023, which is awarded to the top 500 companies.)malaria since before Covid-19 started spreading. The increase in the number of infected people and deaths is leading to a decline in thelabor force, economic stagnation, increased poverty and orphans. It also leads to social problems such as human rights issues of theinfected people. The Group plans and implements various training programs to ensure that employees have the appropriate knowledge ofthese issues, and will proactively respond to these global health issues.

25Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Human Resource Management Strategies for 2025 Mid-term Plan

Human Resources Management

In the implementation of our management and business strategies, we will coordinate our growth vectors through dialogue so that both

Management Policy

individuals and organizations can improve their performance, grow, solve social issues, and achieve Vision 2030.

Basic Policies of Our Vision for 2030
Our group has identified “strengthening human capital and organizational execution abilities” as a key management issue (material issues)
to solve when it comes to achieving Furukawa Electric Group Vision 2030 (“Vision 2030”) and have set three basic policies aimed at theachievement of the Furukawa Electric Group Vision for Our People.
(1) Secure diverse personnel and support the growth of people who continually take on challenges(2) Aim at becoming an enterprise group where everyone plays a leading role and feels excited to work with pride(3) Nurture Furukawa Electric Group’s culture where teams accomplish things to the end

Six elements of people and organizations
When it comes to carrying out specific activities, we will set up a framework focusing on people and organizations, guided by four
perspectives (“individuals,” “organization,” “awareness / mindset / culture,” and “actions / systems,”） and six elements （ “engagement,”“leadership / team mindset,” “organizational culture / communication,” “abilities / skills,” “design of the organization / personnel
composition,” and “flow of information, coordination and decision-making mechanism”)Having done that, we will ascertain an overall pictureof our activities and consciously work toward improving them as we go about conducting daily business activities.

We will go about promoting initiatives by going through a PDS Cycle*1 which entails conducting the Furukawa E-Survey*2 (a survey onhuman capital and organizational execution abilities that includes the six elements of people and organizations), constructing visualizationsof the state of human resources and organizations, and reflecting improvement measures based on those results upon our businessactivities.
*1 PDS cycle: Plan Do See cycle*2 Survey of Employee Engagement Score

26

Organizational
Governance

Basic Approach

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Data

Through the development of welfare facilities and systems, we are working to maintain and improve the health of our employees andEngagement (individuals × awareness/mindset/culture)

support them in their daily lives. We strive to create an environment in which employees can face their work with peace of mind.

Contents

Measurement and Utilization of Engagement
In promoting our basic policy

Community
Involvement

Employee Benefits

Human Resources Management*1

Consumer Issues

Efforts
We have established company cafeterias at our manufacturing sites to support the maintenance and promotion of

Cafeteria(2) “Aim at becoming an enterprise group where everyone plays a leading role and feels excited to work

employee health. We strive to create attractive cafeterias with high satisfaction by exchanging opinions with labor unions,public health nurses, nutritionists, etc., and reviewing and revising menus.

with pride,” we started the Furukawa E-Survey as a survey of employee engagement score. We set targets based on the score of“sustainable engagement” in the Furukawa E-Survey as a sustainability indicator*2 in the 2025 Mid-term Plan, and will steadily implement a

Company dormitory

variety of measures. Engagement is closely linked to the other five of the six elements*3, and is therefore used as a comprehensive

indicator for strengthening human capital and organizational execution abilities. Doing that, we will conduct activities targeting the global
manufacturing industry standard value of 85.

Mutual aid association*1 Basic Policies of “strengthening human capital and organizational execution abilities”*2 Sustainability Indicator*3 Six elements of people and organizations

Indicators and targets

Furukawa
ElectricGroup★

Indicator

Result★:Sustainability indicator

FY2022

FY2023

FY2024FY2025

FY2030

65

65

70

75

85

−

−

85

Employee engagementscoresEmployee engagementscores−TargetOverhaul of Our Compensation System and Strengthening of Employee Communication
Based on our basic policy (1) “Secure diverse personnel and support the growth of people who continually take on challenges,” inDecember 2021, we revised our personnel treatment system based on the concepts of “promotion of the taking on of challenges,”“simplicity and openness,” and “human resource development.”(i) We will redefine the communication processes related to our personnel evaluations, and have superiors communicate their
expectations to employees based on the job classification system in accordance with the individual’s functions and roles, while also
having them observe the efforts and actions being undertaken by members of their team on a daily basis. In doing this, we will go about
increasing the extent to which individuals are satisfied with their evaluations through the conducting of evaluations that are based on
facts alongside the provision of responsible feedback on areas of improvement, thereby leading to individual growth.
(ii) Against the backdrop of communication related to the personnel evaluations described in item (i), we will move away from a pay raisesystem that is based on the assumption that one’s ability will increase each year and overhaul our pay raise system (including pay
reductions) that reflects the abilities and attitudes currently being demonstrated by the subject individuals. In doing this, we will aim toprovide a spark for the motivation of each employee when it comes to taking on challenges, and aim to foster healthy competition and ahealthy feeling of tension within the company.

27

In order to secure housing for young employees and those transferred and to reduce housing costs, we provide companyowned or rented company housing and dormitories at each of our business locations.
We operate the "Furukawa Mutual Association" for mutual support of employees, and provide support for congratulations
and condolences, medical treatment, and disaster relief, as well as loans necessary for living.

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Human Resources Management

Human Resources Management

Leadership/team mindset(organization × awareness/mindset/culture)

Organizational culture/communication(organization × awareness/mindset/culture)

Basic Policy

Basic Policy

Data

In order to achieve our basic policy* (3) “Nurture Furukawa Electric Group’s culture where teams accomplish things to the end,” we are

Based on our basic policy* (1) “Secure diverse personnel and support the growth of people who continually take on challenges,” we areworking on leadership transformation initiatives.

promoting the creation of an environment and culture that embraces diverse personnel and brings out the best in them.

* Basic Policies of “strengthening human capital and organizational execution abilities”* Basic Policies of “strengthening human capital and organizational execution abilities”

Furukawa Electric’s Seven Principles for Leaders

Promotion of Diversity and Inclusion (D&I)

In an environment of rapid change and high uncertainty, it is necessary for us to ensure the psychological safety of team members andBased on our basic policy “Secure diverse personnel and support the growth of people who continually take on challenges,” the Group isachieve results as a team when it comes to going about continuously generating corporate value. In 2020, with the aim of forming

promoting the creation of an environment and culture that embraces diverse personnel and brings out the best in them. We position D&I asorganizations which produce results as teams, we established Furukawa Electric’s Seven Principles for Leaders, which consists of one

an important element when it comes “strengthening human capital and organizational execution abilities.” Having done that, we havebasic mindset and six action principles for leaders to build good working teams. We implement leadership training, have executives andestablished the HK* and D&I committees directly under the president to actively promote company-wide initiatives. For more details on the

managers (at the level of section manager and above) provide “action declarations” to those around them and subsequently put thepromotion of D&I, please see the link below.

content thereof into practice on a daily basis. We also have 360-degree feedback provided to facilitate further changes when it comes toDiversity & Inclusion

action.

* HK: Hatarakikata Kaikaku, or work-style reform

Adherence to the Furukawa Seven has been practiced by about 500 officers and general managers of Furukawa Electric and Group
companies in Japan since fiscal 2020, and by a total of about 1,300 employees including managers since fiscal 2021. In addition, we ask
other regular employees to make efforts similar to those of their leaders, as they are pre-positioned to understand the leader’s efforts, andPromotion of Health and Productivity Management

support and cooperate with them. We also make various efforts to work together as openly as possible and encourage each other, under
the concept of enjoying change, taking on challenges, and accomplishing them.

We define “Health and Productivity Management” as the aim for each employee to achieve good physical, mental and social conditions(well-being). Based on the belief that improving the vitality and performance of employees will lead to the growth of organizations and*With three years having passed since the start of the initiative, the results of Furukawa E-Surveys have confirmed for us that thecompanies, we are promoting various health and Productivity management measures as a unified organization. For more details on

relationships existing among team members have improved. Going forward, we will focus on the connection between team activities and

Health and Productivity Management, please see the link below.

results, and accelerate our efforts to further strengthen teamwork.

Health and Productivity Management* Survey of employee engagement score

Penetration of Our Philosophy
In 2007, we established our Group Philosophy and established Core Value, which is the set of values we want involved in our achievementof the sustainable growth of the Group based on the Group Philosophy. In order to promote the penetration of our Group Philosophy, we
distribute cards with Group Philosophy and Core Value written on them to all employees. In particular, our management team takes theinitiative to reflect on our philosophy at meetings and encourage employees to take action which embodies the philosophy. We also holdregular workshops and other such events aimed at the penetration of Group Philosophy and Core Value and will continue implementing
initiatives to that end.
Corporate Philosophy Structure28

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

OJT Training

Human Resources Management

In order to realize organizations that achieve results through teamwork, we believe it is essential to improve the nurturing capabilities of our

Abilities/skills (individuals × actions/systems)

workplaces, including in relation to employees who are not instructors. As such, we provide “training for the building of organizations whichhave people grow” to all workplaces that accept new employees.
We believe that generally speaking, there are many cases where, when it comes to OJT education, instructors and section managers work

Basic Policy

hard to provide guidance and follow up on operations in order to have new employees become more productive. Our own OJT support,
however, does not entail the placement of instructors or mentors. Rather, we appoint people to the role of “arranger,” which we call an “OJT
Leader.” The OJT Leader ensures that all team members get involved in discussions. The goal of this, is to establish an educational

Based on our basic policy* (1), “Secure diverse personnel and support the growth of the people who continually take on challenges,” wesystem as an organization. We also provide opportunities to undertake PDCA cycles for OJT over the course of a year in order to go about

are developing various measures from the perspective of both realizing our management and business strategies and supporting theestablishing an educational system as an organization, which we do by providing training four times a year to teach skills and shareambitious endeavors and growth of our diverse personnel.

information on concerns and good practices among OJT leaders. Since 2021, there has been an increase in the number of cases such as
those involving mid-career hiring. We have thus been providing the same OJT support as “training serving to strengthen competencies* Basic Policies of “strengthening human capital and organizational execution abilities”

when it comes to leadership and training” through open recruitment at workplaces other than those that accept new employees.

Development of Human Resources
Improvement of MONOZUKURI Capabilities
In addition to the existing tier-based training, we have also implemented a program for training global human resources that will eventuallyshoulder the role of management in the future, as well as on-the-job training purposed with facilitating the realization of organizations that

As part of our creation of a corporate culture that allows manufacturing site employees and other employees to share information onachieve results through teamwork.

targets and execute their tasks, we are aiming to improve upon the “MONOZUKURI Capabilities” we have as a whole unified group.
Starting in FY2020, in response to the COVID-19 pandemic, we took the opportunity to implement a number of initiatives, such as

In FY2022, in addition to these initiatives, we began to consider reskilling measures. These include the production of visualizations of thechanging some of the previous face-to-face joint training sessions to having training sessions held at each individual site and thegaps existing between the current situation and the capabilities and skills required from the perspective of growth for both companies andintroduction of e-learning. We began work on creating a tool which provides visualizations of the strengths and weaknesses of divisionsindividuals, as well as the creation of mechanisms aimed at the acquisition of capabilities and skills.

involved in manufacturing, and have applied it to two divisions on a trial basis to improve its level of completeness. In FY2023, we plan tobegin its full-scale operations in five departments and expand the scope of departments in a sequential manner.

Global Human Resources Training System
We started our Global Business Leader (GBL) training in FY2006 inorder to develop personnel who will take on the role of management in
the future. In FY2013, this was reformed into the Global Mindset
Program (GMP), with an extra emphasis being placed on global
human resource education. We have also operated a Global
Development Program (GDP) for overseas local employees since
FY2010 with the aim of strengthening links within Furukawa ElectricGroup, with the curriculum being partly shared with the GMP.
Furthermore, in FY2014, we launched the Global Challenge Program(GCP). This program involves the dispatch of younger employees toforeign countries for certain periods of time, allowing us to secure
diverse talent and provide opportunities for growth.

29

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Support for Career Development

Consumer Issues

Community
Involvement

Data

Human Resources Management

Design of the organization/personnel composition(organization × actions/systems)

Career Support Office
The Career Support Office was established in FY2021. With this office, we are expanding our efforts to support employees’ self-directed
career development in tandem with existing personnel systems, including career design training provided for each age group and class,seminars to help employees develop their careers, and individual career-related consultation meetings.
In FY2022, in addition to these initiatives, we began to consider reskilling measures. These include the production of visualizations of the

Basic Policy

gaps existing between the current situation and the capabilities and skills required from the perspective of growth for both companies andindividuals, as well as the creation of mechanisms aimed at the acquisition of capabilities and skills.

Based on the basic policy* (1), “Secure diverse personnel and support the growth of the people who continually take on challenges,” weare developing personnel management initiatives aimed at developing the systems and human resources necessary for our management
and business strategies.
* Basic Policies of “strengthening human capital and organizational execution abilities”

Drafting of succession plans and development plans
Mechanisms for Individuals to Choose Their Careers

Succession plans and development plans are formulated and implemented for the purpose of developing management personnel andcandidates for general managers of each organization.

Since FY2021, we have been operating an in-house

With regard to human resources working in management positions, we are promoting the formation of a talent pool using external

secondary job system. This system allows employees toassessments and are dispatching employees to take part in external training. We are also conducting systemic organizational transfers ofvolunteer for participation in projects that interest them andpersonnel, including the assigning of personnel to tough assignments based on development plans. In addition, the Nominating /constitutes a mechanism serving to contribute to their own

Compensation Committee, the majority of the members of which consists of Outside Directors, monitors the appropriateness andgrowth, fulfillment, and career development. Since theoperational status of the management personnel development system, and systematically works on the appointment of Corporate Vice

inception of the system, 71 employees have participated in 27

Presidents and the CEO Succession Plan over the course of several years.

projects. This has served as a source of great stimulation forthe departments taking on the volunteering employees,

In FY2022, the scope of the Succession Plan was expanded to

improved the motivation of the volunteering employees

include general managers, and regular discussions were held

themselves, and has had a positive impact on the

between each division and the human resources department

departments sending volunteering employees to participate inregarding the ideal state of things when it comes to organizations

such projects.

and the development of successors which serve to realize ourbusiness strategies.

In FY2023, in order to accelerate the realization of more selfdirected careers for our employees, we are also considering
the introduction of an open recruitment system that will allow
employees to volunteer for organizational transfers.

30

Organizational
Governance

Basic Approach

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Improvement of Hiring

Consumer Issues

Community
Involvement

Data

Human Resources Management

Flow of information, coordination and decision-making mechanism(organization × actions/systems)

Mid-career Hiring
In order to secure diverse human resources in an effort to realize our management and business strategies, we have set a target when it
comes to new hiring to achieve a ratio of mid-career hires (management, career track, and clerical positions) of at least 30%.
In order to achieve that target, we are strengthening our hiring team structure, expanding our recruitment channels, reviewing ourrecruitment processes, and streamlining our onboarding program. In doing so, we are working hard to prevent situations where new hires

Reviewing the operation of the target management system and following up [Furukawa Electric]

end up being unsuitable for the role in question, to provide support so as to ensure that new hires quickly become acclimatized to their role,and to ensure their retention.

To realize our basic policy* (2) “Each employee plays a leading role and works with a feeling of pride and excitement,” we reviewed theoperation of the target management system when we revised the human resource system in 2021, focusing on the following three items
Hiring of New Graduateswith the aim of improving performance, building a culture where people seek to take on challenges, and nurturing talent.
1. Increasing opportunities of and improving the quality of feedback with the aim of enhancing the nurturing of talent

In addition to changes in the hiring environment, students’ attitudes toward employment are also changing. The competition for talent isalso becoming more intense. As part of our efforts to make our company more appealing to students, we have introduced a “course-based

2. Checking the difficulty level of role expectations defined by qualification and rank as well as individual targets with the aim ofhiring” system which puts a limit to some extent on the jobs made available at the time of their initial assignment. Limiting the types of jobs

promoting the taking on of challenges

to which we assign new hires serves to enhance the clarity of their career paths. We do this to make it easier to provide the employee with

3. Checking alignment between individual target buildup and organizational targets with the aim of improving performance

an image of what their individual growth could look like. We will also be promoting the acquisition of talented people with diverse sets ofideas.

Specifically, at the beginning of the fiscal year, each employee was encouraged to set challenging target. In order to achieve those targets,
supervisors provided support during the fiscal year, which made people more conscious of communication taking place between

Indicators and targets

supervisors and team members. We have made changes to the operation of that system, so that it now involves positive impacts on bothin terms of the nurturing of talent and the improvement of performance, which is achieved by frequently providing feedback through PDCA

Indicator

Result*1(★:Sustainability indicator )Furukawa
Electric★

Ratio of mid-career hires tototal new staff hires*2

FY202246%

cycles taking place over short spans of time. At fiscal-year-end meetings, supervisors and team members undertake communication withTargetFY2023

FY2025Maintain

Maintainaround 30%

around 30%

one another concerning the facts obtained during daily activities, and provide feedback on positive points alongside points where things
can be improved, thereby providing motivation when it comes to carrying out work in the next fiscal year.

FY2030Additionally, in terms of the results of monitoring undertaken during FY2022, we found that there were improvements in terms of−

employees’ actual sense for the linkage between organizational targets and personal targets and their actual sense of the support provided
by superiors when setting challenging targets at the beginning of the fiscal year and the support provided throughout the fiscal year. More*1than 90% of respondents saying that they were “satisfied” or “somewhat satisfied” with the fiscal-year-end evaluation. This confirmed for us

Sustainability indicatorthat communication between employees and their direct managers is generally going well. In order to further improve upon the operation of*2 As of March 31, the end of fiscal year

this system in the future, we will continue to monitor the implementation of target control, share information on operational concerns andgood practices, and enhance our follow-up activities so that individuals can proactively take on the challenge of higher targets and get asense for both their own growth and organizational contributions.
* Basic Policies of “strengthening human capital and organizational execution abilities”

31Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Strengthening labor governanceConsumer Issues

Community
Involvement

Data

Diversity & Inclusion

Basic Policy, System, Target, and Result

GlobalIn order to reduce risks in the area of labor, we are systematically checking on the state of labor compliance undertaken in accordance withthe laws and regulations of the countries where our group operates and providing guidance when it comes to improvements.

Basic Policy and Promotion System on Diversity&Inclusion
Activities of Domestic Affiliate Companies

Based on the policy of “secure diverse personnel and support the growth of people who continually take on challenges” Furukawa ElectricGroup promotes to develop corporate culture that accepts and makes use of diverse human resources. Placing Diversity&Inclusion

Individuals responsible for human resources at Group companies in Japan meet twice a year to share information on policies and issues(hereinafter, D&I) as an important element in " Strengthening human capital and organizational execution abilities", we have establishedrelated to human resources and labor within our Group, and strive to strengthen the Group’s cooperation when it comes to various issues.

“HK* and D&I Committee”, which reports directly to the President, and actively expand company-wide initiatives intended for women,

In addition, in order to reduce the risks faced in the area of labor, we regularly check on the state of labor compliance with Group

employees with disabilities, non-Japanese employees, and mid-career hires.

companies, and we provide them with support when it comes to responding to items requiring improvement, including in terms of reviewing
the systems in place.

* HK: Hatarakikata Kaikaku, or work style reform

Policy on initiative regarding D＆I

Labor-management Relations (Furukawa Electric)
When it comes to labor-management dialogue, we maintain the basic position that both labor and management should endeavor to

In order to strengthen D＆I, we will take initiatives comprehensively from aspects such as recruitment, job assignment and training, andengage in sincere discussions. As such, we focus on issue resolution and the deepening of mutual understanding based on that position.

work environment improvement.

We hold our Central Management Briefings twice annually for formal exchanges of opinions between labor and management. We haveconducted such meetings for 70 years since fiscal 1952. As of May 2023, meetings have been held 141 times in total. Representatives

Recruitment: Strengthen recruitment capabilities to enhance the internal talent pool for managerial positions

from labor and management actively exchange opinions and share information about a broad spectrum of items at these briefings, such as

Job assignment and training: Incorporating efforts to improve diversity into succession plans and talent development plans considering
our business strategy

with respect to the business environment, management, and topical matters. We also have in place various committees which aredesigned to improve the working environment, such as the Personnel System Exploratory Committee and the Committee for Studying

Work environment improvement: Proactively promote HR system development, change of thinking, and work style reform to accept
diverse people and workstyle

Shorter Hours. It is at these committees where management and labor discuss things on a daily basis. These discussions lead to
improvements in various systems and strengthen monitoring functions, such as compliance responses. Through these activities, we
endeavor to solve various issues.

Women's Empowerment
Basic Concept
In light of women’s influence on discussions and decision-making, we implement initiatives to enrich human capital from recruitment to thedevelopment of persons who play central roles. We keep in mind that 30% of management positions are held by women as the futuretarget, which is generally said to the minimum ratio for affecting decision-making.

Policy on the Initiatives

Recruitment

Job assignment andtraining

Work environment
improvement

32

Strengthen to recruit new graduates
Strengthen to recruit women in managerial positions in mid-hires
Expand assigned posts affirmatively
Prioritize training and promotion plans（individual and mid to long-term human resources development of candidates,
active promotion, etc.）
Prepare good business environment and system（promote work style reform, improve facilities at works）
Address the change of thinking（eliminate unconscious bias, etc.）

Organizational
Governance

Basic Approach

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Targets and Results

Consumer Issues

Community
Involvement

Data

Employment of people with disabilities*1

Share of women in new hires

Share of women in chief positions (candidates for*2

managerial positions)

Result in FY2022

Target for FY2025

27%

40%

12%

15%

4.8%

7%

Basic Concept
The Group aims to create a situation where the statutory employment rate can be stably carried out while anticipating an increase in the
rate.

Policy on the Initiatives
Share of women in managerial positions*2*3

Strengthen functions of Furukawa New Leaf (special subsidiary company)

Recruitment

Expand direct employment by Furukawa Electric*1 This is intended for career track and clerical positions, as of April 1 in each fiscal year.
*2 As of March 31 in each fiscal year*3

Sustainability indicator

Job assignment andExpand job assignment positively

training

Enhance business support system*4 An overview of our initiative, target, and performance data are posted on the Ministry of Health, Labor and Welfare's ” Database on Promotion of Women's
Participation and Advancement in the Workplace”.

Provide a comfortable working environment and system(Utilize remote work system, improve facilities in the office, etc.)

Work environment

Ministry of Health, Labor and Welfare's ” Database on Promotion of Women's Participation and Advancement in the Workplace”(only available in

improvement

Japanese)
Action plan period: from April 1, 2014 to March 31, 2026

Targets and Results
Achievements and targets

Achievementｓ in FY2022

Share of people with disabilities
Implemented a leadership training program through cross-industrial

Provide training opportunities for management candidates (e.g.,exchangedispatch to joint training programs in different industries)

Dispatched female engineers as lecturers for career talks at girls' highDispatch instructors for career education for junior high and high school

schools

students

Held coaching sessions for individual training for the development of

Hold Riko-challe* events sponsored by the Cabinet Officefemale managers
Set goals for each department to increase the number of female
managers and organized issues and measures to achieve themthrough departmental discussions

Result in FY2022

Target for FY2025

2.35％

2.55%

Targets for FY2023

Note: As of June 1 in each fiscal year

Achievements and targets

Coach individuals for the career development of female managers
Achievements in FY2022

Formulate and implement individual development plans to expand
placement and promotion

Employed people with intellectual disabilities at Furukawa New Leaf, aspecial subsidiary company

Promotion of women's empowerment

Directly recruited by Furukawa Electric (2 new recruitments in FY2022)
Increased the actual employment rate (2.32％ in FY2021 to 2.35％ in* Riko-challe: an event to encourage girls in junior high and high school to select their university course majoring in science and engineering

FY2022)
Promotion of the Employment of People with Disabilities

33

Targets for FY2023
Continue recruitment by Furukawa Electric
Expand job assignment positively
Hold events such as lectures for the purpose of promoting better
understanding among employees

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Community
Involvement

Consumer Issues

Employment of global talent

Employment of mid-career hires

Basic Concept

Basic Concept

Data

We realize the right person for the right place from a global perspective, in terms of demand in each business strategy and strengthening

We actively promote mid-career hires of diverse human resources to strengthen expertise and accelerate the diversification ofmanagement capabilities.

perspectives.

Policy on the Initiatives

Recruitment

Job assignment andPolicy on the Initiatives

Expand recruitment channels and strengthen the recruitment function

Strengthen recruitment channels
Grasp global talents within the group and utilize

Utilize referral recruitment and reemployment of people who reached retirement age

Recruitment

Improve our recognition and corporate image

Formulate a plan of the development of global talents aligned with a business strategy

training

Formulate a plan of talent assignment aligned with business strategies (Understand the needs of people with highly

Job assignment andWork environment

Set HR management policy in the group and globallyspecialized skill, etc.)

training

Enhance an onboarding program for new recruits

improvement

Build a more flexible HR system

Work environment
improvement

Achievements and targets

Targets and Results
Achievement in FY2022

Target for FY2023

Target for FY2025

Implemented global mindset program for

Implement global mindset program for global

Identify posts for global talent considering

global talent development training

talent development training

business strategies and formulate a plan for

Share of mid-career hires in total new

recruitment and development of global talenthires*1*2

Development system of global talent

Result in FY 2022

Target for FY2025

45.7%

Maintain around 30％*1 New hires represent new graduates and mid-career hires, covering management, career-track, and clerical positions.
*2 As of March 31 in each fiscal year

Achievements and targets

Achievement in FY2022
Strengthened recruitment strategy aligned with our business strategies

Strengthen recruitment channels

Expanded recruitment channels

Implement a public relations strategy to improve our recognition andWorked on initiatives to improve our recognition and corporate image
through TV ads, etc.
Initiatives for employment of mid-career hires

34

Target for FY2023

the corporate image

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Promote flexible work styles

Consumer Issues

Community
Involvement

Data

Diversity & Inclusion

Promotion of Women's Empowerment

Achievements and targets

Achievement in FY2022

Target for FY2023

Target for FY2025

Sent out messages to promote new work

Promote work style reforms to improve

Support flexible work style and work-life

styles that make most of remote work in

productivity by making most of remote work,balancetimes of post-corona

promoting DX, etc.

Continuously implemented in-house side

Expand an in-house side job system andjob system

introduce an internal recruitment system

Conducted an in-house lecture about D＆I

Consider the ideal form of childcare leaveon the theme of "Making Diverse Values aand measures to promote it

Basic Policy, Target, and Achievement

Expand remote work system

Furukawa Electric Group believes that it is particularly important to ensure diversity in employees involved in decision-making as aContinuously provide education to raisefoundation for corporate growth, and has set the share of women in managerial positions as a sustainability indicator in the 25th Mid-Termawareness of accepting diverse humanManagement Plan, and promote efforts to achieve it. We consider the small absolute number of female employees to be our greatest

resources and flexible work styles

challenge and diligently work to maintain and strengthen human resources in all phases, from recruitment to the development andpromotion of employees in managerial positions. At the same time, we work to improve the corporate culture and company-wide work

Strength for the Organization

environment by leadership reform, strengthening feedback, providing flexible work styles, and supporting for autonomic career formation

Implemented a seminar on family careso that female employees and their supervisors can think about their promotion positively.

Introduced a system of childcare leave at

Basic Policy, System, Target, and Result

birth for fathers
Initiatives for promoting flexible working

Initiatives

styles

Initiatives for female employees

Diversity and Inclusion Awareness and Education
Career development support (e.g., coaching for managers and management candidates)
Change of thinking and behavior in the management (implementation of executive study group and e-learning)

Career Support Office

Implementation of human rights education for newly appointed executives, newly appointed managers, and new employees

Support for individual development of female management candidates (creation of development plans in departments)

Distribution of articles via intranet

Held networking events among female employees

Implementation of employee awareness survey
Implementation of e-learning (themes: LGBTQ, harassment prevention, etc.)

Support for female employees who have taken maternity leave to return to work

Holding in-house events

Held in-house events
Holding a Diversity Forum
Dispatched employees to programs outside the Group
Topics cross-industrial business leadership session

The cross-industrial business leadership session 2023 was held face to face at Furukawa Electric in FY2023 with the aim of encouraging
women working in companies to continue to work lively and flexibly and play a key role in succeeding in business. Approximately 70 female
mid-career employees from 13 companies, including our own, participated in the event, that is, keynote speech, networking lunch, panel
discussion, and group work.
Cross-industrial business leadership session 2023（only available in Japanes）
Special lecture by Yukiko Yabu, Outside director

Special lecture by Hiromi Ohashi, Senior Fellow

35Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Initiatives of Group Companies

Consumer Issues

Community
Involvement

Data

External Evaluation

This is the message video to promote women's empowerment produced by Furukawa Electric LatAm S.A., one of theWe have received the following evaluations for our efforts for the promotion of women’s empowerment.

Furukawa Electric Group companies.
Selection of the MSCI Japan Empowering Women Index (WIN)
Selection of The "Nadeshiko Brand" of the Ministry of Economy, Trade and Industry
Certification of The ”Eruboshi", an excellent company based on the Act on the Promotion of Female Participation and Career
Advancement"Kurumin" certification from the Ministry of Health, Labour and Welfare as a Company Cultivating the Next Generation
Certification of D&I Award
Film produced by Furukawa Electric LatAm S.A.(YouTube)

External Evaluation and Certification

Data
Support for Student’s Career Choices in Science and Engineering
Number of employees
As a manufacturer, one of Furukawa Electric's major missions is to ensure that technology is passed on to the future. We also consider the
Number of employees in managerial positions

development of female engineers to be important from the perspective of diversity. We can expect new innovations from a variety of ideas
created by bringing together a diverse group of people. However, the share of female researchers and engineers in science andNumber of candidates for managerial positions (equivalent of chiefs)

engineering fields in Japan is still low, and we see this as an issue that must be resolved in order to strengthen our human resources. To
this end, we are engaged in activities to broaden the career choices of female students to science and engineering occupations.

Average age

Riko-challe

Average years of service

Furukawa Electric agreed and held "Science and Engineering Challenge", as known as "Riko-challe”, an initiative led by the Gender

Average wages by employment category

Equality Bureau of the Cabinet Office, and has been holding corporate experience events since FY2022. We invited junior high and highschool students to the Furukawa Electric headquarters for a company introduction, a tour of the company, a technical experience program,

Number of new hires

and a panel discussion with our senior employees in FY 2023. Approximately 20 junior high and high school students and their parents
participated in the two days event this year (male students are also allowed to participate, and up to one parent per student may attend).

Share of women in new hires

Riko-challe(only available in Japanese)

Turnover rate

Dispatch of lecturers for "Science Worker Lectures" for high school students

Ratio of childcare leave taken

We dispatch two of our female technical employees to a girl's high school in Kanagawa Prefecture to give a lecture to freshmen every year.
Two of them were sent in FY2023 to speak about the work of technical employees in a company, their daily schedules, and their career
choices. The students actively asked them about employment and other topics.

Participation in Initiatives
We have agreed on the following initiatives.
Male Leaders Coalition for Empowerment of Women（only available in Japanese)36Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Introduction to Furukawa New Leaf Co., Ltd.

Diversity & Inclusion

Promotion of the Employment of People with Disabilities

Company profile

Basic Policy, Target, and Achievement
From the perspective of D&I, which not only fulfills our social responsibilities but also pursues the potential of diverse human resources andorganizations for corporate growth, we actively work to expand the work environment for people with disabilities. In addition to recruiting
through Group companies and our special subsidiary, Furukawa New Leaf Co., Ltd., we further improve the work environment and promotereforms in work styles, such as remote work and well accessible environment, to create a better environment.

Company name

Furukawa New Leaf Co., Ltd.

Capital10 million yen (fully owned subsidiary of Furukawa Electric Co., Ltd.)

EstablishedMay 26, 2004

Business

Consigned cleaning of plant premises, dormitories and other activities

Representative

Shigeru Endo, President & Representative Director

Basic Policy, System, Target, and Result
Location

Initiatives
For inquiries about job opportunities at Furukawa New Leaf, please contact preferred branch office by phone.
Recruitment and Careful Onboarding After Employment
Location

Address

TEL

FAX

recruitment of people with physical and mental disabilities. We conduct careful pre-employment interviews and post-employment

Hiratsuka

5-1-9 Higashiyawata, Hiratsuka-shi, Kanagawa 254-0016 (within0463-24-8001

0463-24-8002

onboarding in the human resources department to help them gradually adjust to the workplace atmosphere and work.

Branch Office

Furukawa Electric's Hiratsuka Works)

Chiba Branch

6 Yawata-kaigan-dori, Ichihara-shi, Chiba 290-8555 (within0436-42-1826

0436-42-1840

OfficeFurukawa Electric's Chiba Works)

Mie Branch

20-16 Nobono-cho, Kameyama-shi, Mie 519-0292 (within

OfficeFurukawa Electric's Mie Works)

In addition to the recruitment of people with intellectual disabilities at Furukawa New Leaf Co., Ltd., Furukawa Electric expands its

Inquiries about Furukawa Electric's Employment of People with Disabilities(only available in Japanese)

Efforts to Promote Understanding: In-House Lectures

0595-85-2659

To promote understanding of employment of people with disabilities within the Company, we distribute materials explaining our initiatives
and hold in-house lectures to managers. In fiscal 2022 we invited Yui Hirono, the representative of DDAC (Developmental Disorders Adult
Daily efforts

Advanced Community) Nonprofit Organization, to give a lecture on “Reasonable accommodation in the workplace for understanding andpromoting employment of people with developmental disorders.”

1. Considerations for safety and health
2. Cooperative sharing of medical check-up results with their guardians/supporting organizations

Data

3. Promotion of communication with employees to detect changes
4. Understanding the changes experienced by individual employees through meetings in the morning, during the day, and at the end of
the day, and daily work reports, and acting promptly to ensure employee safety and health

Employment rate of people with disabilities

5. Evaluation and follow-up activities for basic actions and fundamental work using a skill map
6. Setting individual goals and reflecting on results
7. Introduction of performance review meetings
8. Individual interviews with their guardians
9. Cooperation with employment and livelihood support centers to assist people with disabilities
10. Welcoming visitors (students and teachers) from special needs schools nearby to contribute to the community
11. Participation in the Abilympics, the vocational skills competition for people with disabilities

37Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Business description

Consumer Issues

Community
Involvement

Data

Benefit package

Cleaning their Works, dormitories for single employees, and facilities of Furukawa Electric Group companies

Company-owned and contracted recreational facilities around Japan, cafeterias

Cleaning full body safety harnesses

A variety of events such as a friendly bowling competition and a party on the last working day of the year

Electric wire disassembly and document shredding
Other

Cafeteria in the Chiba Works

Cafeteria in the Mie Works

Friendly bowling competition

Kinugawa-so, the company-owned
recreational facility

We prioritize safety and health with the

We move around by bicycle whengoal of completely preventing accidents

working at large sites.

Cleaning under Japanese plum trees in
the premises

Cleaning windows at an officeComments from staff members

Comment from the member

Comment from the instructor

I joined Furukawa New Leaf on April 1, 2019. As a cleaner,

The employees ride bicycles to worksites while ensuring

we have to learn many things and use different tools for thethey are safe within the Works, where there are manydifferent places that are cleaned. Although it is a hard job, I

trucks and forklifts. Employees are not allowed to go to aam very happy after cleaning. I would like to be capable ofworksite if they do not observe traffic rules and otherdoing more to please people. I can buy books about trains,regulations. Safety comes first.

my favorite, with my wage and talk to the employees moresenior than I. It is very nice.

The photo shows employees who are sorting electricalwaste. They remove foreign matters so that only goodquality products are delivered to customers. Customers willcomplain if there is any foreign matter in the product. This
is why employees work carefully in the sorting process.

38Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Initiatives

Diversity & Inclusion

Work style reform and promotion of diverse work styles

Voluntary initiatives of all divisions
Our work style reform initiatives are based on the voluntary initiatives of each department.
・HK Award

Basic Policy

Furukawa Electric presents the president's special commendations to good practices of the voluntary activities and the Challenge
Month since 2018. By presenting awards for good initiatives that can serve as a reference for other divisions, we aim to increase the

We promote various measures for both "work style reform" to improve productivity and job satisfaction and "organizational culture reform"

motivation of the division in question, roll out best practices to other divisions, and improve the results and momentum of activities

to promote the realization of the Group's Core Value.

across the entire Group.
・Work Style Reform Challenge Month
Every September is designated as "Work Style Reform Challenge Month," during which we take on the challenge of implementing
various initiatives related to work style reform since 2018.
・Voluntary departmental activities
Each department sets its annual activity policy and implements the PDCA cycle since 2016.

Promotion of Flexible Work Style
As measures to support our employees who challenge themselves, and to enable them to better show their abilities, we work to improvetheir work-life balance by expanding systems that support balancing both work and diverse life events such as pregnancy, childbirth,childcare, and nursing care, as well as various leave systems, flextime, and remote work systems, etc.
Support for balancing job satisfaction and easiness to work

・Promotion of male employees' participation in childcare
Creation of a handbook on childcare for men, holding of men's childcare discussions, and introduction of interviews with male
employees who have taken childcare leave・Support for balancing both work and childcare
Introduction of seminars and interview sheets for employees taking childcare leave, introduction of seminars for employees returningfrom childcare leave, introduction of interviews before and after childcare leave・Support for balancing both work and family care
Holding seminars for family care・Other
Intranet introducing internal systems and procedures related to support for work-life balance, introduction of external benefit services,
etc.

39

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Systems for flexible work style

We have introduced a "remote work system" since January 2017. By reducing constraints on work locations, this system will enable
employees to perform their conventional duties more efficiently and focus on creative work. This is expected to bring about improved
productivity per hour and other enhancements to work quality and performance.
Allowing work outside of the office even if they are not able to work at the office partially for personal reasons during working hours alsoenables employees to improve easiness to work and job satisfaction.
It is different from the existing "home work system"(introduced in FY2012) which is intended to support child care and nursing care, as it isusable by anyone meeting certain conditions such as application of the flextime. We also have other systems in place to support diverse
work styles.
In-house systems for supporting diverse work styles
Work environment to realize flexible work style

In order to continue to grow and respond to the rapidly changing environment after the Covid-19 pandemic, we promote a hybrid work stylein which each organization and employee flexibly combines office and remote work depending on their business and assignment. By
maximizing the benefits of the work style, we aim to increase productivity and job satisfaction and achieve results as a team.
News Release: Head Office to be moved to TOKYO TORCH TOKIWABASHI TOWER (only available in Japanese)

Reforming organizational culture
Reform of leadership

Participation in Initiatives"IkuBoss" Enterprise AllianceNews release: Joined the "IkuBoss Enterprise Alliance(only available in Japanese)External Evaluation and Certification"Kurumin" certification from the Ministry of Health, Labour and Welfare as a company cultivating the next generation
External Evaluation and Certification

40

Consumer Issues

Community
Involvement

DataBasic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Environmental Policy / Environmental Vision

Environmental Policy / Environmental Vision

Environmental Policy

Environmental Vision

Community
Involvement

Data

In the "Furukawa Electric Group Environmental Vision 2050", while continuing the measures

Furukawa Electric Group Basic Environmental Policy

based on the "Environmental Targets 2030", "Creation of Environmentally Friendly Business" and"Developing Business Activities that Consider Climate Change", which are important management

Basic Philosophy

issues (material issues) of the "Furukawa Electric Group Vision 2030".
We will strengthen the development of business activities that take climate change into

We, the employees of the Furukawa Electric Group, recognize that conservation of the global environment is a serious issue confronting

consideration.

the international community, and we pledge to contribute to a sustainable future for the world 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 everEnvironmental Vision 2050

higher environmental targets as we continuously improve our global environmental conservation efforts.
2. We shall strive to develop products that are friendly to the Earth, and create new environmental businesses.

Through the provision of environmentally friendly products and services and recycling-based production activities, contribute to the

3. We shall strive to reduce environmental risk by incorporating anti-climate change and resource conservation/recycling

realization of a sustainable society throughout the value chain.

considerations, as well as a reduction in the use of environmental impact-causing substances, across the entire productlifecycle.

Contribute to realizing a carbon-free society
Aim to reduce greenhouse gas emissions throughout the value chain

4. We shall evaluate the ecological impact of all of our businesses, and strive for the conservation of biodiversity and sustainable(Greenhouse gas emissions from business activities (Scope 1 & 2): Challenge target of zero emissions in 2050)

use of resources.

Contribute to realizing a recycling-based society for water & resources

5. We will seek harmony with the natural environment and local communities through dialogue with our stakeholders.

Minimize water usage, and promote the use of recycled materials, including waste plastic, throughout the value chain
Contribute to society in harmony with nature
Minimize the impact on ecosystems through value chain management that includes raw materials
Scope 1: Direct emissions from the company’s plants and offices
Scope 2: Indirect emissions from the electrical power and heat paid by the company

41

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

International Standard for Environmental Management (ISO14001)

Environmental Management

The Group has been working on activities to achieve environmental targets while establishing an environmental

Environmental Management system, Environmental Education,
Environmental Awards

management system at each site.
And, domestic and overseas production sites have acquired the international standard ISO14001 certification.
Our works, domestic group companies, and overseas group companies that have acquired ISO14001

Environmental Management System

Certificate of Mie Works,
Furukawa Electric Co.,Ltd.

Furukawa Electric Group promotes environmental activities based on the basic environmental philosophy. “Furukawa Electric Group
Environmental Committee”, the supreme advisory body in charge of the environment, is promoting environmental management. General
Manager of the Risk Management Division serves as the chairperson, and the committee consists of the General Managers from each

Environmental Education

business division and each corporate division responsible for management. The progress is reported quarterly to the Board of Directors.
In order to ensure that environmental management can be implemented smoothly, the environmental issues are examined cross-Environmental Education System and Environmental Education Programs

departmentally and specifically in the “Council of Environmental Managers”, which consists of the environmental manager of each businessdivision and corporate division.

We conduct environmental education for all Furukawa Electric Group employees, from new employees to executive officers, based on the
belief that it is necessary to raise employees’ awareness and promote their understanding. We aim to achieve "Furukawa Electric Group
Environmental Vision 2050" and "Environmental Targets 2030" by understanding the Environmental Basic Philosophy and activating
activities in line with the Action Guidelines.
At the beginning of each fiscal year, new employee education, training for newly appointed managers, and training for mid-level
manufacturing staff are trained by positions. Training in ISO14001 internal environmental auditor is held every year for newly appointed
internal auditors.
We implemented two environmental education programs for procurement departments under the themes of initiatives for climate change
and resource recycling in FY2022, to promote environmental activities in the value chain. We deepened our understanding of recent social
trends, the Group's initiatives, examples of other companies, and how specifically we are going to approach our suppliers.
During environment month in June FY2022, each employee watched environment-related videos and discussed the environment withpeople around at their home or workplace. Furthermore, We conducted activities raising environmental awareness including questionnaire
surveys on the status of efforts in the workplace and in daily life for the environment, and on the level of awareness of the Environmental
Vision 2050, etc. Yokohama Works is independently engaged in "Eco-friendly activities at home" and visualizes the amount of CO2
reduction in each household's eco-activities. The amount of reduction is increasing every year as the activities spread.

Promotion Framework

Environmental Management - Scope of the environmental management

Environmental education programs

42

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Environmental award

Environmental Management

Environmental activity award system

International Standard for Environmental Management (ISO14001)

In FY2010, the Group started the Environmental Activity Awards with the aim of motivational improvement of employees and organizations
working on environmental activities. The award was renamed to the ESG Commendations "Environmental Contribution Award" fromThe Group has acquired the international standard ISO14001 certification at domestic and overseas production sites.

FY2018, for the purpose of expanding the scope of the award which was focused on global warming prevention measures to all

The percentage of production sites that have acquired ISO14001* is as follows. (as of July 2023)

environmental activities, and aimed to raise awareness of the environment and to improve the level of environmental activities. In FY2022,

・Domestic: 100% (all 6 production sites, all 23 domestic consolidated subsidiaries nationwide)

2 Outstanding Performance Award, 2 Excellent Performance Awards, and 4 Honorable Mentions were selected. The first Outstanding

・Overseas: 70% (35 out of 50 overseas group companies)

Performance Award was given to Furukawa Automotive Systems Inc. in recognition of the " Installation of solar power system " for a* Production sites of the domestic and overseas consolidated companies are covered.

project that contributes to the reduction of CO2 emissions during manufacturing by increasing new renewable energy sources through the
installation of a self-consumption solar power generation facility on its premises. The second Outstanding Performance Award was given to
Copper Foil Division, Furukawa Electric Co. in recognition of the "Reduction of CO2 emissions by the agreement for the Green Basic Plan

Furukawa Electric Co., Ltd.

with Non-fossil certificate" for a project that contributes to the reduction of CO2 emissions produced when manufacturing electrolytic
copper foil, which requires a large amount of electricity during manufacturing, by switching to substantial renewable energy for all

Chiba Works

Nikko Works

Hiratsuka Workselectricity.

Mie Works

Yokohama Works

Copper Foil Division

Outstanding Performance Award

Domestic group companies

Furukawa Automotive Systems Inc.

NTEC Ltd.

Okano Electric Wire Co., Ltd.

KANZACC Co., Ltd.

Installation of solar power system

Shoden Seiwa Co., Ltd.

Foam Kasei Co., Ltd.

Furukawa Automotive Systems Inc.

Furukawa FITEL Optical Device Co., Ltd.

Furukawa Sangyo Kaisha, Ltd.

Furukawa Communication and BroadcastingCo., Ltd.*

Reduction of CO2 emissions by the agreement for the Green Basic Plan with Non-fossil certificate

Furukawa Industrial Plastics Co., Ltd.

Furukawa Precision Engineering Co., Ltd.
Furukawa Electric Ecotec Co., Ltd.*

Furukawa Techno Material Co., Ltd.

Excellent Performance Award

Furukawa Electric Advanced Engineering Co.,Ltd.*
Furukawa Electric Power Systems Co., Ltd.

The Furukawa Battery Co., Ltd.

Furukawa Nikko Power Generation Inc.

Furukawa Magnet Wire Co., Ltd.

Miharu Communications Inc.

Chongqing Changhua Automobile Harness
Co., Ltd.

Furukawa Auto Parts (Huizhou) Ltd.

Furukawa Automotive Parts (Dongguan) Ltd.

Furukawa Automotive Parts(Vietnam) Inc.

Furukawa Automotive Systems (Thailand) Co.,Ltd.

Furukawa Automotive Systems Lima
Philippines, Inc.

Furukawa Automotive Systems (Vietnam) Inc.

Furukawa AVC Electronics (Suzhou) Co., Ltd.

Furukawa Circuit Foil Taiwan Corporation

Furukawa Electric(Shenzhen) Co., Ltd.

Furukawa Electric Autoparts (Philippines), Inc.

Furukawa Electric Copper Foil Taiwan Co., Ltd.

Copper & High Performance Material Products Division, Furukawa Electric Co.

Furukawa Electric LatAm S.A.

Furukawa FITEL (Thailand) Co., Ltd.

Reduction of CO2 emissions and tap water consumption by energy conversion in Slit Center

Furukawa FITEL Optical Products(Shanghai)Co., LTD.

Furukawa Mexico S.A. de C.V.

Furukawa Minda Electric Pvt. Ltd.

Furukawa Precision (Thailand) Co., Ltd.

OFS Fitel Deutschland GmbHOFS FITEL, LLC

OFS RUS Fiber Optic Cable Company

Permintex Furukawa Autoparts Malaysia Sdn.
Bhd.

Polifoam Plastic Processing Co. Ltd.

PT. Furukawa Automotive Systems Indonesia

PT. Furukawa Optical Solutions Indonesia

PT. Tembaga Mulia Semanan, Tbk

Shenyang Furukawa Cable Co., Ltd.

Siam Furukawa Co., Ltd.

Suzhou Furukawa Power Optic Cable Co., Ltd.

Taiwan Furukawa Magnet Wire Co., Ltd.

Thai Fiber Optics Co., Ltd.

Trocellen Italia SpA

Wuhan Furukawa Automotive Systems Co.,Ltd.

Furukawa Electric Thermal Management
Solutions and Products Laguna, Inc.

PT Furukawa Indomobil Battery Manufacturing

Copper Foil Division, Furukawa Electric Co.

Furukawa Network Solution Corp.*

AT (Advanced Technology Tape) & Functional Plastics Division, Furukawa Electric Co.

Riken Electric Wire Co., Ltd.

Exhaust gas treatment equipment, energy-saving activities
Furukawa Electric LatAm S.A.

Furukawa Electric Business & Life Support Inc.*

Furukawa Electric Industrial Cable Co., Ltd.

Overseas group companies

Reuse of leftover pre-connectorized low friction drop cables Program
Honorable Mention

FITEL Products Division, Furukawa Electric Co.
Decarbonization through the use of biodegradable individual packaging materials

Polifoam Plastic Processing Co. Ltd.
Energy saving Reduction of Electricity consumption
Furukawa Electric Autoparts（Philippines）Inc.
Elimination of Injection Molding Machine Idle Power Consumption* Included in the Furukawa Electric Co., Ltd. business site

43Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Environmental Management

Environmental Targets / Results / Data

Environmental Risk Management

Environmental Targets 2030

Preventing Soil and Groundwater Pollution

Environmental Targets 2030

Community
Involvement

Data

Furukawa Electric Group conducts regular inspections of facilities and equipment that handle specific toxic substances to prevent the

Furukawa Electric Group set Environmental Targets 2030 and makes efforts to contribute to a carbon-free society, a recycling-based

pollution of soil and groundwater in the neighborhood. We reduce the risk of pollution through measures to prevent leaks of specific toxic

society for water and resources, and a society in harmony with nature. In order to accelerate our efforts to achieve the Environmental

substances and underground seepage, as well as through ongoing efforts to switch to substitute substances.

Vision 2050, the Group raised our 2030 target to the SBT 1.5°C in November 2022 as the contribution to a carbon free society.

Environmental Targets 2030

Reducing Fluorocarbons Emissions
Act on Rational Use and Appropriate Management of Fluorocarbons （Fluorocarbon Emissions Control Act）

1. Contribute to a carbon-free society

has been in force since(1) Greenhouse gas emissions from business activities (Scope 1 & Scope 2): Reduce by at least 42% compared to FY2021

April 2015. Furukawa Electric makes efforts to protect the ozone layer and prevent global warming by properly managing equipment(2) Greenhouse gas emissions in the value chain (Scope 3): Reduce by at least 25% compared to FY2021

subject to control at each of our business sites in accordance with the law. The amount of leaked fluorocarbons in Furukawa Electric in

2. Contribute to realizing a recycling-based society for water and resources / Contribute to society in harmony with nature

FY2022 was under the amount that must be reported to the authorities concerned.

(1) Efficient use of water resource
・Water consumption: Reduce by at least 10% compared to FY2020 (per unit of net sales)(2) Efficient use of metals and plastics

・New material*1 consumption: Reduce by at least 10% compared to FY2020 (per unit of net sales)

PCB Management

・Single-use plastic*2 consumption: Reduce by at least 25% compared to FY2020 (total volume)

Furukawa Electric Group properly stores and manages PCB waste held at each of its business sites and those of its group companies, anddisposes of PCB waste before it expires in consideration of storage-related risks, in accordance with laws and regulations. We also

SBT*3 1.5°C certification was obtained for 1 (1) and (2) in July, 2023.

proceed with the appropriate disposal of PCB equipment currently in use before it expires according to the update schedule.

*1 New material: virgin materials for electrolytic copper, new aluminum ingots, and plastics, etc.
*2 Single-use plastic: disposable plastics used in containers, plastic bags, etc.

Compliance with Environmental Laws and Other Regulations*3 SBT: Science Based Target.

Furukawa Electric Group regularly confirms environmental laws and other regulations to determine items requiring compliance. We ensurecompliance in a number of ways, such as by conducting on-site patrols to check the state of compliance. We follow official journals andother sources of information to stay updated on revisions to environmental legislation and 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 theWater Pollution Control Law.
We also conduct annual checks for conceivable, clear environmental impact to prevent environmental accidents or prevent widespread
impact in the event of an accident. We also conduct drills to simulate the response to accidents. For accidents and anomaly information
within the Group, we share the information, summarize lessons and measures against them, and double check the site.
We regularly monitor compliance with laws and regulations, and in FY2022 there were no reports of serious violations of laws andregulations (air, water quality, etc.) that would have a social impact.

Please see below for our response to the asbestos problem.
Response to Asbestos Concerns

44Organizational
Governance

Basic Approach

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Performance in FY2022

Environmental Targets / Results / Data

The total greenhouse gas emissions in FY2022 were significantly reduced by 36.8% compared to FY2017 for two years in a row. As

Targets and Performances of Environmental Conservation Activities

measures against climate change, we made steady progress in energy conservation at our factories, and increased the number of
production sites equipped with solar power generation system. As for purchased electricity, we proceed to switch to electricity derived
from renewable energy in and out of Japan. In addition, towards the "Furukawa Electric Group Environmental Vision 2050", theEnvironmental Targets 2030 was revised in November 2022. We accelerate our efforts to reduce greenhouse gas emissions by settinghigh reduction targets.

Targets and Performances
Furukawa Electric Group
Indicators

Reduction of greenhouse gas
emissions (Scope1, 2)

CO₂+SF6*1*7

CO₂

FY2022

Target for FY2023*5

2025 Mid-term target

decreased 37%

decrease 21.2%（decrease 42%）ーーdecrease 18.7％*4

decrease 10.8%

decreased 34%

ーー

FY2019decrease 4%

decreased 6%

decrease 6%ー

FY2021ーーーBase year

TargetResult

FY2017decrease 17.7%

FY2021ー

FY2017

Target in FY2023*3

As the entire Group,we will work on the reduction of greenhouse gas emissions to achieve the revised "Environmental Targets 2030". As
for GHG reduction target, we applied to SBTi for a change from Well-Below 2 °C to 1.5 °C and the proposal was approved in July 2023. Inline with the target, we promote plans to introduce solar power generation system, in addition to promoting energy-saving activities morethan ever before. And we plan to switch from purchased power to power derived from renewable energy.

Reduction of greenhouse gas emissions (Scope3)*2*7

decrease 11.1％
*4

*4

11.5%

20%

12%

30%

Reduction of water withdrawal (Per unit of net sales)

decrease 2%

decreased 23%

decrease 3%

decrease 5%

Reduction of energy for production (Per unit of net sales)

decrease 2%

decreased 24%

decrease 3%

decrease 5%

Reduction of transportation energy in Japan(tkm)(Per unit of net sales)

decrease 2%

decreased 1%

decrease 3%

decrease 5%

decrease 2%

decreased 5%

decrease 3%

decrease 5%

ーーdecrease 3%

ー

ー

ー

decrease 1%

ー70％

Ratio of renewable energy use to total consumption

Reduction of total waste in Japan (Per unit of net sales)ー

FY2020

Reduction of total plastic waste in Japan*6(Per unit of net sales)

Reduction of VOC emissions in Japan*6(Per unit of net sales)

Environment
business
promotion

Contamination
prevention

the previous fiscal
year

Sales ratio of environmentally*7
friendly products

ー

64%

65%

66%

CO2 avoided emissions

ー

120,000ton-CO₂

132,000ton-CO₂

130,000ton-CO₂

ー

Number ofenvironmental
accidents

ー

0

2

0

ー

Environmental
anomalyー

3 or less2

3 or less

ー

ー

A

A-

A

ー

Prevention ofenvironmental
accidents andanomaly

CDP Score on climate change *8*1 Scope 1: Direct emissions from works resulting from the use of fossil fuels, etc.
Scope 2: Indirect emissions resulting from the use of electricity, steam, and heat supplied from outside of works*2 Scope 3: Other indirect emissions, such as purchased products and services, business trip, commuting, and transportation
The Group began calculating emissions for downstream Scope 3 (activities related to products and services sold in principle) from FY2020.
*3 Base year was updated to FY2021 upon the revision of Environmental Target 2030; the reduction target when applying the previous base year FY2017 isalso shown as a reference.
*4 Targets for FY2025 were revised upon the revision of Environmental Target 2030.
*5 Environmental Target 2030 raised in FY2022 is scheduled to be applied from FY2024.
*6 New targets were set in FY2023.
*7

Sustainability indicator*8 CDP: An organization through which institutional investors cooperate to run projects that require companies to disclose their strategies on climate change
and specific greenhouse gas emissions.

45Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

From Application to Registration: The Registration of Environmentally Friendly Products

Environmental Targets / Results / Data

To register products as environmentally friendly, products must go through an application

Environmentally Friendly Products

and screening process in their business division and then be examined by theEnvironmentally Friendly Products Committee, a cross-departmental committee of theGroup.
The criteria that products have to meet to be registered as an environmentally friendly

Environmentally Friendly Products and the e-Friendly Accreditation Systemproduct is an overall improvement of environmental performance when compared withexisting products based on established evaluation criteria at each stage of the product’s

Furukawa Electric Group defines environmentally friendly products as products or services thatlifecycle: the purchase of raw materials and parts, production, use, distribution andcontribute to reducing environmental impact or have positive effect on the environment assessing thedisposal.

entire lifecycle of our products.
For the products compatible with environmentally friendly products, the environmental mark “eFriendly” is displayed on the exterior and the catalogues to encourage their adoption.

Expanding Environmentally Friendly Products

Categories of Environmentally Friendly Products
The Group's environmentally friendly products belong to one of four categories described below. These links are only available in

In order to increase the ratio of the environmentally friendly products in all the products of the Group , we set targets based on percentage

Japanese.

of sales, and confirm our progress and success on this basis.

Category

Prevention of global warming

Contents
Products with functions that contribute to the reduction or absorption/fixation of thegreenhouse gas (GHG) emissions through the entire life cycles, or products that have
reduced the greenhouse gas in their manufacturing processes.
Products made from recycled materials, products designed with easy to-recycle components,

Zero emission

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 as common components.
The products that meet one of the followings.
1. Products that do not use the ozone-depleting substances in all their fabrication

Elimination of materials that have an impact on theenvironment

processes.
2. Products that contain environmentally hazardous substances less than the regulation
stated value.

Environmentally friendly products as a percentage of sales

3. Products that do not generate the environmentally hazardous substances exceeding
the regulation stated values on using or disposing.

TOPICS "Copper alloy products/superconducting products manufactured with renewable energy"

Products that result in overall energy savings by such means as reducing the use of raw
Resource savings

materials and components as well as scarce resources, featuring enhanced longevity,
allowing easier product and component maintenance, and reducing the use for resources inpackaging.

46

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Efforts to Contribute to the Environmental Impact Reduction by the Products
Utilizing Life Cycle Assessment (LCA), the Group is working on visualizing the contribution to the reduction amount of CO₂ emissions
generated during the use phase of the Group products by customers. For number of units sold of micro ITLA in optical communications,copper foil for lithium-ion batteries and aluminum harnesses in automotive sector, we estimated the contribution to the reduction of CO₂
emissions by estimating the number of new cars sold that will be equipped with these products based on the production volume. The total
amount of the contribution to the reduction of CO₂ emissions was 130 thousand tons-CO₂/year including the amount of those in GREEN
TROUGH* adopted in the field of railways, roads, and renewable energy. We will continue to keep an eye on the global market, strive toexpand the range of product types that contribute to the environment, and expand our efforts to address global environmental issues
through our products.
GREEN TROUGH*: environmentally friendly cable trough made primarily from waste plastic

Contribution of products avoided CO₂ emissions** The rectangular magnet wire will be excluded from FY2020 due to business transfer.

47

Consumer Issues

Community
Involvement

DataBasic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Environmental Targets / Results / Data

Environmental Targets / Results / Data

Material Flow

Environmental Accounting

conservation activities, and is striving for efficient and effective environmental activities. Our calculations are based on "Environmental
Accounting Guidelines 2005", published by the Ministry of the Environment, and these cover Furukawa Electric and 20 Japanese group

We tallied data for Furukawa Electric, domestic group companies, and overseas group companies - a total of 93 companies.

companies.
In FY2022, environmental conservation costs totaled 2.65 billion yen in expenses and 0.77 billion yen in environment-related investments.

Please see below for a list of all applicable companies.

Compared with the previous year, both expenses decreased.

List of all applicable companies: Scope of the environmental management
INPUT

Environmental Accounting Data

OUTPUT
Domestic

Overseas

Unit

Copper

132.3

110.3

1000t

Category

Domestic

Overseas

Unit

22.8

22.0

Aluminum

8.1

19.4

1000t

Iron

3.1

11.9

1000t

Final waste disposal

0.3

9.4

1000t

Glass

-

2.1

1000t

Recycling amount

22.6

12.5

1000t

Plastic

26.4

54.8

1000t

Energy

6,568

7,079

TJ

CO2

218

316

1000t-CO₂

Electricity

535

627

GWh

SF6

37

-

1000t-CO₂

Purchased
Electricity（except for
renewable energy)

343

585

GWh

SOx

6

-

t

NOx

62

-

t

Purchased
Electricity（renewableenergy)

99

40

GWh

Soot

3

-

t

Private Power Generation(hydroelectric and solar)

94

2

GWh

Chemical substances-t

18,7321000m³

Volume emitted

76

15,411
9.5

0.4

1000t

232

kℓ

-

t

Fuel Oil (kerosene, light oil,heavy fuel oil A)

3,015

317

Water

9,378

2,499

1000m³

Industrial water

6,628

56

1000m³Groundwater

2,232

56

1000m³518

2,387

1000m³

List of all applicable companies：Scope of the environmental accounting

Waste*3

Raw materials

Data

Furukawa Electric Group has introduced environmental accounting to quantitatively grasp the costs and effects of environmental

Environmental Impact of the Furukawa Electric Group in FY2022

Category

Community
Involvement

Total waste generated*4

1000t

Atmospheric emissions

City gas, Natural gas
LPG,LNG

Volume transferred

Wastewater

Tap water

Wastewater
waterways

44.8

-

1000t

Packaging*2
Cardboard, Wood, Paper

1.8

8.9

1000t

Plastic

0.02

4.81

1000t

Third-Party Verification
Furukawa Electric Group works on the improvement of the reliability of environmental data through third-party verification. Data on
greenhouse gas emissions (Scope 1,2,3), energy consumption, water usage amount and discharged amount in FY2022 were verified by athird-party. (July 2023)

8,160

1,919

1000m³Public

7,687

689

1000m³

Greenhouse Gas Emissions（Scope1,2,3）

Rivers6,994

187

1000m³

Energy Consumption

Sea

677

0

1000m³16502

1000m³

Sewer

473

1,230

1000m³

BOD

34

-

t

COD

32

-

t

SS

31

-

t

1,101

50

Other

Chemical substances
Volume handled*1

Environmental Targets / Results / Data

Volume of water recycled
and reused

Water Usage and Discharge

1000m³*1 PRTR-listed substances*2 Cardboard, wood, paper, and plastic used in product shipping*3 Including valuable resources (Japan)*4 Emissions off-site48

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Initiatives

Contribution to a Carbon-Free Society

Climate Change

Reduction of Greenhouse Gas Emissions
The greenhouse gas emissions of Furukawa Electric Group are mainly energy originated CO2 emissions and the sulfur hexafluoride
emissions(SF6).
The CO2 emissions of the group companies in Japan in FY2022 totaled 218,000 tons-CO2e, which was 38.3% decrease from FY2017.

Basic Approach to Climate Change

CO2 emissions of the overseas group companies totaled 316,000 tons-CO2e in FY2022, which was a decrease of 31.6% from FY2017. In
addition, sulfur hexafluoride emissions of CO2 equivalent in FY2022 were temporarily increased, due to the update of test facilities etc., but

Furukawa Electric Group has formulated the Furukawa Electric Group Environmental Vision 2050, which looks ahead to the year 2050,

we will continue to work to reduce emissions. Total greenhouse gas emissions in FY2022 were reduced by 332,000 tons-CO2e comparedand has been working to reduce greenhouse gases throughout the value chain as a contribution to a carbon-free society. In particular, weto FY2017（base year).

have been working to reduce greenhouse gas emissions (Scope 1 and 2) in our business activities, use renewable energy, save energy at
our plants, and reduce CO2 emissions in our logistics. We also take appropriate preventive measures against physical risks such as heavy
rainfall. In order to accelerate our efforts to reduce greenhouse gas emissions toward carbon neutrality, which is the goal of ourEnvironmental Vision 2050, we raised the 2030 greenhouse gas emissions reduction target to SBT1.5℃ in November 2022, and obtained
SBT1.5℃ certification in July 2023. We will continue our efforts to further reduce greenhouse gas emissions.
Environmental Vision 2050
Environmental Targets 2030

Targets and Performances
The Group sets annual targets and addresses reducing greenhouse gas emissions, increasing the ratio of renewable energy, and reducing
unit energy consumption.
Greenhouse gas emissions in our business activities (Scope 1,2)

Targets and Performances of Environmental Conservation Activities*1 For the overseas CO2 emission factor, purchased electricity uses emission factors published by the authorities in each country or International Energy
Agency (IEA) data, and the other energy uses domestic CO2 emission factors.

*2 Emissions of greenhouse gases other than CO2 are converted to CO2 equivalent emissions using Global Warming Potential (GWP).

Greenhouse gas emissions (Scope 1,2,3)* In Scope 3, categories 1-8 are upstream, and categories 9-15 are downstream. Up to FY2018, downstream of Scope 3 is not calculated. The downstream of
Scope 3 has been calculated and the latest emission factors have been used since FY2019.

49

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Use of the Renewable Energy

Consumer Issues

Community
Involvement

Data

Energy Conservation at Factories

Usage of hydroelectric and solar power:

Furukawa Electric Group's energy usage rate was about 20% for fuel and about 80% for electricity. In particular, we achieved energy

The subsidiary of Furukawa

saving in the manufacturing process with high energy usage ratio. We replaced conventional equipment with more efficient production

Electric, Furukawa Nikko Power Generation Inc. owns four power plants and supplies electricity generated

by hydroelectric power. It covers 100% of the electricity for Nikko Works, and copper strip products are produced using hydroelectric

process and higher efficiency equipment. We implemented measures such as heat insulation of the high temperature section of equipment

power. In addition, solar power systems are installed for utilization in Copper Foil Div., Mie Works, domestic Group companies suchconsidering energy balance. We switch to the use of LED for the plant buildings’ lighting as planned. In FY2022, we worked on the efficientas Furukawa Automotive Systems Inc., The Furukawa Battery Co., Ltd., and production sites at overseas Group companies in Mexico,

operation of electric facilities, including the efficient use of heat (improvement of thermal insulation of furnaces and updating of facilities),

China, India, and Brazil. Out of these, Mie Works installed the system of on-site PPA. We will continuously move ahead on the installation

the introduction of high-efficiency equipment (updating of transformers and introducing inverters ), and the shutdown of equipment that didof the solar power system.

not operate.

Introduction of electricity derived from renewable energy:
At overseas group companies, electricity derived from renewable energy is used at production sites in Germany, Italy, Hungary, and thePhilippines. Also in Japan, from April 2021, Hiratsuka Works partially started introducing electricity derived from renewable energy. From
April 2022 onwards domestic production sites in Copper Foil Div., Chiba Works, Mie Works, and four domestic group companies have been
partially using electricity derived from renewable energy.
The ratio of renewable energy use to total consumption in FY2022 was 36.0% for the domestic group companies and 20.2% combinedwith the overseas group companies. We will continue to work on increasing the ratio of renewable energy usage.
TOPICS "Copper alloy products/superconducting products manufactured with renewable energy"

Energy consumption

Reduction of CO2 Emissions in Logistics
The domestic group’s freight transport volume was 177 million ton-kilometers in FY2022.
Furukawa Electric accounted for 112 million ton-kilometers of the total, reduced 5.2% from FY2020, and related CO2 emissions reduced
2.9% to 13,300 tons -CO2e. Freight energy intensity increased 2.5% from FY2020. We will continue to promote modal shifts, improveloading ratios, and promote joint distribution.
Renewable Energy Ratio (Furukawa Electric and Domestic Group Companies)

Hydroelectric power generation

Solar power panels installedin Furukawa Automotive Systems Inc. headquarters(started operation in January 2022)

Solar power panels installedin Furukawa Nikko Power Generation Inc.

in The Furukawa Battery Co., Ltd.
(started operation in April 2022)
CO2 emissions and energy intensity related to transportation (Furukawa Electric)50

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Internal Carbon Pricing

Consumer Issues

Community
Involvement

Data

Consistency with Japanese Government Policy

Internal carbon pricing (using a shadow price) has been calculated since FY 2019. By visualizing the amount of CO2 emissions for each

In order to accelerate our efforts to reduce greenhouse gas emissions to achieve the Environmental Vision 2050, we have revised thedivision using carbon prices, we encourage preparation to avoid climate change risks toward decarbonization. For example, a division thatEnvironmental Target 2030. This content is also in line with Global Warming Countermeasure Plan, a comprehensive plan for thecannot meet its reduction target will have a negative shadow price and will incur a hypothetical loss. Conversely, a division that meets theimplementation of Japan’s emissions reduction goal for the year 2030, presented by the Japanese government in October 2021.

target will have a positive shadow price and will bring hypothetical profit. Based on the quarterly evaluation and posting effects, aJapanese Government's Global Warming Countermeasure Plan

renewable energy introduction plan is promoted for any division that does not meet the target.

Furukawa Electric Group's Environmental Targets 2030
Measures Against the Physical Risks of Climate Change

Information Disclosure, External Evaluation and Certification
The Group takes appropriate management and preventive measures against physical risks related to climate change (heavy rain, heavy
snow, etc.). Each works take measures for air-conditioning to cope with global warming. The following is initiatives Hiratsuka and Nikko

The Group has been responding to CDP's questionnaire on climate change, which represents institutional investors, since FY2008. In

Works have taken.

order to support customers making use of CDP supply chain programs, we participated in explanatory meetings and attended
seminars. We will continue to expand the scope of environmental data we disclose and enhance our reliability.

Works

Hiratsuka

Targetheavy rain

The Group has received the following external evaluations and certifications.

Measures
Development of stormwater reservoirs

CDP

Regular cleaning of drainage systems and installation of bypasses to increase drainage

SBT

capacity"Zero-Emissions Challenge Company" of the Ministry of Economy, Trade and Industry

Waterproofing of factory roofs to prevent flooding in the factory

External Evaluation and Certification

Reinforcement work to prevent damage to factory buildings
Nikko

heavy snowfall

Installation of snow-melting equipment such as electric heaters to prevent snow
accumulation on factory roofs

DataGreenhouse Gas Emissions Throughout the Value Chain (Scope 1,2,3)

External Collaboration

Greenhouse Gas Emissions (Scope 1)
Greenhouse Gas Emissions (Scope 1,2)

Participation in Initiatives

Greenhouse Gas Emissions Per Unit of Sales

Furukawa Electric Group participates in the following initiatives to realize a carbon-free society.

CO2 Emission and Energy Intensity Related to Transportation

Task Force on Climate related Financial Disclosure (TCFD)

Third-Party Verification of Greenhouse Gas Emissions Data

Japan Climate Initiative (JCI)

Energy Consumption

COOL CHOICE, an initiative by the Ministry of the Environment to reduce greenhouse gas emissions

Third-Party Verification of Energy Consumption Data

Challenge Zero, an initiative by Keidanren for a decarbonized society

Renewable Energy Ratio

Participation in Initiatives

Collaboration with Industry Associations
Our group companies located in Japan belong to two industry associations, the Japanese Electric Wire & Cable Makers' Association andJapan Copper and Brass Association. In the Carbon Neutral Action Plan of each association, we set targets for each association and work
to ensure that our policies and strategies are consistent with those of the associations as a group.In the worst case scenario, theassociation's policies are significantly weaker or inconsistent with the Group's strategy, we will encourage the associations to align theirpolicies with those of the Group. If such alignment is difficult, we will take appropriate action considering withdrawal from the associations.

51Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Community
Involvement

Consumer Issues

Data

Governance (progress beyond FY2022 being underlined)

Contribution to a Carbon-Free Society

Disclose the organization’s governance around climate-related risks and opportunities.

Information Disclosure Based on the TCFD Recommendationsa) Describe the board’s oversight of climate-related risks and opportunities.
b) Describe management’s role in assessing and managing climate-related risks and opportunities.
The Group has been accelerating its ESG management efforts since FY2018, expanding discussions related to climate change as shown

We have endorsed the Task Force on Climate-related Financial Disclosures (TCFD) recommendations since January 2020, recognizingthat climate-related risks and opportunities are an important management issue (material issue). We are also a member of the TCFD
Consortium, which was established as a forum for companies and financial institutions that endorsed the TCFD recommendations to work
together to promote effective corporate disclosure and to discuss how to link disclosed information to appropriate investment decisions byfinancial institutions and others.
At the same time, we also participated in the “Climate-related risks and opportunities scenario analysis support program in line with the
TCFD,” implemented by the Ministry of the Environment. In order to realize a sustainable society, we will continue to utilize the TCFD tostrengthen our relationship of trust with our stakeholders.

below at the Board of Directors, Management Committee, and Sustainability Committee meetings. The Board of Directors also reports andshares quarterly progress related to climate change.
Key Discussions on Sustainability within Furukawa Electric Group
Board of Directors

The TCFD was established in December 2015 by the Financial Stability Board (FSB) at the request of the G20 to examine how climaterelated information should be disclosed and addressed by financial institutions, and released its final report in June 2017. It recommends

Feb. 2021

Formulated Furukawa Electric Group Environmental Vision 2050.

May 2022

Formulated sustainability indicators and targets

March 2023

Partially revised sustainability targets for FY2025 (GHG emissions reduction rate (Scope 1, 2) and ratio ofrenewable energy use to total consumption ).

that companies and others disclose the following items related to climate-related risks and opportunities.

Management CommitteeJan. 2019

Governance

Strategy

RiskManagement

Endorsed the TCFD’s recommendations and signed the UN Global Compact.

Dec. 2020 – Feb. 2021

Formulated Furukawa Electric Group Environmental Vision 2050.

Nov. 2021 – Feb. 2022

Revised Environmental Targets 2030 and applied for SBT (WB2°C) certification

Dec. 2022

Revised Environmental Targets 2030 and applied for SBT (1.5°C) certification.

Disclose the organization’s governancearound climate-related risks andopportunities.

a) Describe the board’s oversight of climate-related risks and opportunities.

Disclose the actual and potential
impacts of climate-related risks andopportunities on the organization’s
businesses, strategy, and financial
planning where such information ismaterial.

a) Describe the climate-related risks and opportunities the organization has
identified over the short, medium, and long term.

Disclose how the organization
identifies, assesses, and manages
climate-related risks.

a) Describe the organization’s processes for identifying and assessing climaterelated risks.

and financial planning where such information is material.

b) Describe the organization’s processes for managing climate-related risks.

b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial

Sustainability Committeeb) Describe management’s role in assessing and managing climate-relatedrisks and opportunities.

Disclose the metrics and targets used
to assess and manage relevant climaterelated risks and opportunities wheresuch information is material.

March 2022

Formulated sustainability indicators and targets

March 2023

Partially revised sustainability targets for FY2025 (GHG emissions reduction rate (Scope 1, 2) and ratio ofrenewable energy use to total consumption).

b) Describe the impact of climate-related risks and opportunities on theorganization’s businesses, strategy, and financial planning.

Strategy (progress beyond FY2022 being underlined)c) Describe the resilience of the organization’s strategy, taking into
consideration different climate-related scenarios, including a 2°C or lower
scenario.

Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy,a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.

c) Describe how processes for identifying, assessing, and managing climaterelated risks are integrated into the organization’s overall risk management.

Metrics andTargets

Formulated the Environmental Targets 2030 and applied for SBT (2°C) certification.

Jan. 2020

planning.
c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including aa) Disclose the metrics used by the organization to assess climate-relatedrisks and opportunities in line with its strategy and risk management process.

2°C or lower scenario.

b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas(GHG) emissions, and the related risks.

Furukawa Electric Group’s definition of the period to consider climate-related risks (transition and physical risks) andopportunitiesc) Describe the targets used by the organization to manage climate-relatedrisks and opportunities and performance against targets.

52

Medium-term

Up to FY 2025

Period up to achieving the 2025 Mid-term Plan and sustainability targets

Long-term

Up to FY 2030

Period up to achieving the Vision 2030 and the Environmental Targets 2030

Super-long-term

Up to FY 2050

Period up to achieving the Environmental Vision 2050

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Scenario Analysis

Consumer Issues

Community
Involvement

Data

Efforts toward Achieving Carbon Neutrality

In FY 2019, we participated in the Scenario Analysis Support Project for Climate-related risks and opportunities in line with the TCFD,

By conducting scenario analysis, we identify climate-related opportunities and risks and work to achieve carbon neutrality by bothconducted by the Ministry of the Environment. We identified climate-related risks (transition and physical risks) and opportunities andcapturing revenue opportunities and mitigating risks.

conducted scenario analysis for the infrastructure businesses (optical fiber and cable products of the Communications Solutions

As for revenue opportunities, during the period of the 2025 Medium-term Plan, we will continue to stabilize revenue from existing

Business and power cables of the Energy Infrastructure Business). We then identified climate-related risks and opportunities andbusinesses and develop a foundation for the creation of new businesses; and we will contribute to achieving carbon neutrality by 2030

conducted a scenario analysis for the automotive products business in FY 2020 and for the AT & functional plastics business and theby solving social issues in each business field. For example, to strengthen our existing businesses, we are working to expand the use

copper & high-performance material products business in FY 2021.

of renewable energy in our power cable business; to create new businesses, we are working to realize a B5G society in thecommunications field; and to build a social infrastructure that enables “Succession of local resources and local culture for the future”*

Until FY2021, in examining the “different climate-related scenarios, including a 2°C or lower scenario” recommended by the TCFD, wethrough the use of green LP gas.

had examined a “2°C or lower scenario” and a “4°C scenarios” step-by-step for each business field by referring to several existing

As for risks, we have established the Environmental Vision 2050 as our super-long-term goal, with the challenge target of reducing

scenarios published by the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC).

GHG emissions (Scopes 1 and 2) in our business activities to zero by 2050, as well as another target of reducing GHG emissions

In FY2022, to accelerate our efforts toward achieving carbon neutrality by 2050, we revised the Environmental Targets 2030 andthroughout the value chain. Backcasting from these targets, we have set targets for reducing GHG emissions in the Environmental

applied for an SBT (1.5℃ Targets) initiative certification. Accordingly, the scenarios for the business fields, for which we had been

Targets 2030 and the sustainability targets in the 2025 Medium-term Plan to work toward achieving these reductions.

conducting scenario analysis, were revised to the “1.5°C scenario” and the “4°C scenario.”* Succession of local resources and local culture for the future: This expresses passing on regional resources and cultures to the next generation in

Assessment of impact on business in 2030

addition to local production for local consumption.
Business impact

Category

Identified climate related risks and opportunities

Policies

1.5℃

4℃

・Carbon tax on GHG emissions

Major

Minor

・Increase in renewable energy procurement costs

Major

Minor

Minor

Minor

・Shut down of coastal factories caused by flooding and drought

MediumMajor

・Increase in air conditioning costs due to a rise in average

Medium

Major

Major

MediumMajor

MediumandTransition

regulations

risks
Markets

・Increase in procurement costs of materials (copper, aluminum,
plastics) due to carbon tax
・Damage to buildings due to large-scale disasters (large
typhoons, heavy rains, heavy snow, lightning strikes) caused by

Risks

abnormal weather
・Supply chain disruption of customers or suppliers caused byAcuteweather disasterPhysicalrisks

Chronic

temperature
・Increase in revenue and profit from accelerating developmentof 5G/B5G(Beyond 5G) along with the construction of smart

cities and the surge of communications traffic
・Increase in revenue and profit from demand growth for
products related to telecommunications, semiconductor memory,
Markets

5G and smartphones
・Increase in revenue and profit from demand growth forsubmarine cables and the enhanced core transmission network

Opportunities

along with the increase in renewable energy generation
・Increase in revenue and profit from demand growth for
products along with automotive electrification and weight
reduction
・Increase in sales from demand growth for low-carbon and
Products and services

carbon-free products and recycled products in response torequests for carbon neutrality and circular economy

53

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Through specialized committee activities in segment-specific areas— occupational health and safety, quality control, theRisk Management (progress beyond FY2022 being underlined)

environment, and disaster prevention and business continuity management—we are enhancing our system to manage risks related
to our business activities. In addition to this system, important decision making is conducted by the Board of Directors and theDisclose how the organization identifies, assesses, and manages climate-related risks.

Management Committee or through the approval processing system, after the expected risks based on each case have beena) Describe the organization’s processes for identifying and assessing climate-related risks.

clearly presented and acknowledged.

b) Describe the organization’s processes for managing climate-related risks.

In considering climate-related risks such as climate change and natural disasters as the priority issue for environmental risk, wec) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s

regularly discuss preliminary strategies for climate-related risks mainly at the Furukawa Electric Group Environmental Committee

overall risk management.

(hereinafter, the “Environmental Committee”) and business continuity measures after the occurrence of risks are discussed mainly at
the Central Disaster Prevention and BCM Promotion Committee.

The Group’s overall risk management
The Group has established the Risk Management Committee, which comprises management as members, with the President as chair
and the General Manager of the Risk Management Division as vice chair. The committee is structured to supervise and promote risk
management, internal control and compliance. The committee conducts high-level assessment of risks from management andoperational perspectives to define material risks that require a company-wide response, and prioritize measures to counter theserisks.
We recognize “climate change” as a key risk from the management perspective that has a large impact and a high likelihood of
occurrence.

Classification

Risk Item

Description of Risks

As a transition risk,
higher raw material
procurement costs andmanufacturing costs due
to carbon taxes enacted
based on government
policies or GHG
emissions targets ineach country
Climatechange(Carbonneutrality)

Exclusion from supply
chains, products,
services, and labormarkets due to an
insufficient response to
climate change
Suspension ofoperations due to an
unforeseen risk offlooding or drought
linked to climatechangeManagement
perspective
risk

Impact ofdisasters,
infectious
diseases,etc.

Plant shutdowns due tobuilding damage orflooding caused by large
typhoons linked toabnormal weather
Disruption of acustomer’s or supplier’s
supply chain due to alarge earthquake,tsunami, fire or
infectious disease

Major Initiatives

Establish the Environmental
Vision 2050, set a challenge targetof eliminating GHG emissions andraise or reset the Environmental
Target 2030

Magnitudeof impact

Likelihoodofoccurrence

High

High

Endorsed the Task Force on
Climate-related Financial
Disclosures (TCFD)
recommendations andconducted scenario analysis
In addition to using hydroelectric
power in the Nikko area, installed
solar power and switched to
procuring renewable energy inJapan and overseas
Grasped the risk of flooding anddrought linked to climate change,
and formulated responses

The Environmental Committee
The Environmental Committee, chaired by the General Manager of the Risk Management Division and composed of top

Promoted Business Continuity
Management (BCM) with ISO
22301

High

management including general managers of each business division and corporate division, meets every three months to discuss

Mediumissues related to climate change among others, and submits proposals and reports to the Management Committee and the Boardof Directors.

Developed and improved business
continuity plan and ensured
employee safety through safety
confirmation system

In FY2022, to accelerate our efforts toward achieving carbon neutrality by 2050, the committee discussed the revision of theEnvironmental Targets 2030 and the application for an SBT (1.5℃ Targets) initiative certification, and submitted proposals andreports to the Management Committee.

Established data centers infacilities that are earthquake
resistant and provide a stablecommunications environment
Add redundancy to the supply
chain

For details, please refer to "Business-Related Risks" on our website.

54

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

The Central Disaster Prevention and BCM Promotion Committee

Consumer Issues

Community
Involvement

Data

Metrics and Targets (progress beyond FY2022 being underlined)

The Central Disaster Prevention and BCM Promotion Committee, chaired by the General Manager of the Risk Management Divisionand composed of general managers of each business division, divisional representatives, etc., meets every three months to establish

Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where suchBusiness Continuity Management (BCM), identify business continuity risks, including natural disasters, and promote and manage theinformation is material.

identification process.

a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy andInternal carbon pricing (using a shadow price) has been calculated since FY 2019. By visualizing the amount of CO2 emissions forrisk management process.

each division using carbon prices, we encourage preparation to avoid climate change risks toward decarbonization. For example, ab) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.

division that cannot meet its reduction target will have a negative shadow price and will incur a hypothetical loss. Conversely, ac) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against

division that meets the target will have a positive shadow price and will bring hypothetical profit. Based on the quarterly evaluation andtargets.

posting effects, a renewable energy introduction plan is promoted for any division that does not meet the target.
In addition, we have set GHG emissions targets for each business division since FY2023, and have established a rule that each

Furukawa Electric Group Environmental Vision 2050 (Formulated in March, 2021)

business division will bear the increase in procurement costs of renewable energy if the targets are not met.

Environmental Vision 2050 embraces the contribution to the realization of a sustainable society throughout the value chain through theprovision of environmentally friendly products and services and recycling-based production activities. As part of our contribution to the

The Group take appropriate management and preventive measures against physical risks related to climate change (heavy rain,

realization of a carbon-free society, we aim to reduce GHG emissions throughout the value chain, and have set the challenge target ofheavy snowfall, etc.). In addition, each of our works take air conditioning measures to cope with rising temperatures. The following are

zero GHG emissions from our business activities (Scopes 1 and 2) by 2050.

examples of measures taken at Hiratsuka and Nikko Works.
Works

Risk
heavy rain

Environmental Targets 2030 (Revised in November 2022)

Main measures against risks

We have revised the Environmental Targets 2030, a milestone toward the realization of the Environmental Vision 2050. To contribute to

Installed of rainwater reservoirs

the realization of a carbon-free society, we have updated our 2030 target as follows.

Regularly cleaned drainage system and installed(1) Greenhouse gas emissions from business activities (Scope 1 & Scope 2): Reduce by at least 42% compared to FY2021(2) Greenhouse gas emissions in the value chain (Scope 3): Reduce by at least 25% compared to FY2021

bypass pipes to increase drainage capacity

Hiratsuka

Scope 1: Direct emissions from own factories and offices

Implemented waterproofing work on the factory roof to

Scope 2: Indirect emissions from the use of electricity, heat, etc. purchased by the company

prevent flooding in the factory

Furukawa Electric
heavy snowfall
Nikko

Scope 3: Indirect emissions other than Scopes 1 and 2 (emissions by other companies related to the activities of the business operator)

Planned reinforcement work to prevent damage to

The Group’s GHG reduction targets of 2030 obtained SBT(a clearly-defined pathway for companies to reduce GHG emissions) 1,5℃

factory buildings

certification in July 2023.

Installed snow-melting equipment such as electricheaters to prevent snow accumulation on factory roofs

Sustainability Indicators for FY2025
We aim to achieve the sustainability target for FY2025 setting 2025 Medium-term Plan of “Sales ratio of environmentally friendly
products,” “GHG emissions reduction rate (Scopes1, 2)” and “Ratio of renewable energy use to total consumption” as sustainability
indicators that measure the progress of addressing material issues of “Creating environment-friendly businesses” and “Developing
business activities that consider climate change.” In accordance with the revision of the Environmental Target 2030 for FY2022, weraised the FY2025 targets for "greenhouse gas emission reduction rate (Scope 1 and 2)" and "ratio of renewable energy to total
electricity consumption.
Sustainability indicator

55

Organizational
Governance

Basic Approach

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Metrics and Results

Consumer Issues

Community
Involvement

Our Group Scope 1 ,2 ,3 Greenhouse Gas Emissions Results（1000t-CO2e）
ResultMetrics★Sales ratio of environmentally friendly
products★GHG emissions (Scope 1 and 2)★Ratio of renewable energy to electricity
consumption
GHG emissions (Scope 3)

Unit

%

FY2017FY2018FY2019FY2020

FY2021

FY2022

32.6

40.5

56.2

58.2

61.9

65.0

1000t-CO2e

903

843

742

648

640

571

%

7.9

8.9

11.0

10.2

10.9

20.2

1000t-CO2e

1,636

1,689

4,735

4,161

4,680

4,458

TargetFY2022★Sales ratio of environmentally friendly
products★Reduction rate for GHG emissions(Scope 1 and 2)

Environmental

Challenge

targetgoal

FY2030FY2050base year
FY2023

FY2025

64％

66％

70％

-

FY2017-17.7%-21.2％(-42%)*1(-59%)*1--18.7％*2-42％*2

-

11.5%

12.0％

30%*3

-

-

Reduction rate for GHG emissions (Scope

FY2019

-4%

-6％

-

-

-

3)

FY2021---11％*2-25％*2-★Ratio of renewable energy to electricity
consumption

FY2020

FY2021

FY2022

139

115

121

116

90

49

32

28

7

37

238

197

172

143

128

153

Scope 2

665

646

570

504

512

418

903

843

742

648

640

571

-

-

2,493

1,656

1,829

1,855

-

-

187

158

134

154

-

-

112

94

123

110

-

-

73

126

207

323

Scope 1+2
Category 1＊

Purchased goods and services

Category 2

Capital goods
Fuel- and energy-related

Category 3

activities (not included in Scope
1 or Scope 2)

Zero emission-

FY2019

148

SF6

-

FY2021FY2018148

Scope 1

Upstream-

FY2017
CO2

Metrics and Targets

Metrics

Data

Upstream transportation andCategory 4*

distribution

Category 5

Waste generated in operations

-

-

22

21

22

18

Category 6＊

Business travel

-

-

7

6

57

12

Category 7

Employee commuting

-

-

23

23

24

24

Category 8

Upstream leased assets

-

-

7

6

7

9

Downstream transportation and

-

-

11

9

141

9

Processing of sold products

-

-

-

-

17

16

Use of sold products

-

-

1,720

1,980

1,575

1,587

End-of-life treatment of sold

-

-

50

51

57

63

4

Category 9*

distribution

Category 10*

Category 11*1 Base year was updated to FY2021 upon the revision of Environmental Targets 2030; the reduction target value when applied to the former base year of
Downstream

FY2017 is also shown for reference.

Category 12**2 Target value for FY2025 was updated upon the revision of Environmental Targets 2030 in FY2022.
Category 13

Downstream leased assets

-

-

2

3

4

Category 14

Franchises

-

-

-

-

-

-

Category 15*

Investments

-

-

28

28

283

274

Scope 3*

1,636

1,689

4,735

4,161

4,480

4,458

Scope 1+2+3

2,539

2,532

5,477

4,808

5,120

5,029

*3 The FY2025 target value for the ratio of renewable energy was raised upon the revision of Environmental Targets 2030.

Disclosure of environmental information and improvement of external evaluation
We have responded to the CDP questionnaire regarding CDP climate change since FY 2008 and CDP water security since FY
2013. We received A- rating in CDP climate change and B rating in CDP water security in FY 2022.

products

In cooperation with customers who utilize the CDP Supply Chain Program, we will participate in explanatory meetings and seminars,＊ The calculation method was reviewed in FY2023 and recalculated retroactively for FY2021

and in order to maintain and improve the CDP score, we will continue to expand the scope of disclosure of environmental informationand increase reliability. We successfully received an A rating in the CDP Supplier Engagement Assessment for FY 2022 for the
fourth consecutive year, thanks to collaboration with interested parties.
With regard to Scope 3, we began disclosing GHG emissions by category in FY 2020.

56

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Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Recycling of Plastic Resources

Contribution to a Water / Resource Recycling Society

Plastics have excellent properties, but concerns about the environment have also been pointed out, such as ocean pollution of plastic. The

Waste Reduction, Effective Use of ResourcesGroup has formulated the Environmental Targets 2030 and promotes initiatives based on the following three perspectives.
・To reduce the use of new materials
・To identify and reduce the amount of disposable plastic packaging
・To reduce the total amount of plastic waste generated
We will minimize the impact on the environment through these initiatives.

Basic Concept of Efficient Use of Resources

Reduction of use of new plastic materials and single-use plastics

Furukawa Electric Group has incorporated the promotion of resource conservation and recycling into the "Basic Environmental Policy" andWe worked to reduce the use of new plastic materials and developed products that use 100% recycled polypropylene in FY2022. In

has been working to reduce waste, minimize the use of resources, and recycle. As for waste reduction, the Group began activities toaddition, we have been developing individual packaging using biodegradable biomass materials as an initiative to reduce the use of single-

reduce the amount of non-recyclable waste in FY 1993. Since FY2001, we have been promoting zero emission activities. As of FY2014,use plastics.

we have been promoting activities to reduce the total amount of waste generated, including valuable resources.
In 2021, new effort was started to deal with plastic issues, including the issue of plastics in the seas and oceans. In March 2021, theReduction of total amount of plastic waste generated"Furukawa Electric Group Environmental Vision 2050" was formulated to promote the use of recycled materials and minimize the impact on

We have begun the initiative in FY2022 and set the target for FY2023. The total volume of plastic waste generated by Furukawa Electric

ecosystems throughout the value chain.

was 3,756t in FY2022, which was 11% decrease from FY2021.

We will continue to work on more efficient use of resources in order to contribute to realizing a recycling-based society.
Basic Environmental Policy

Initiatives

Targets and Achievements

Recycling of Electric Wires and Optical Cables at FETEC
Furukawa Electric Ecotec Co., Ltd. (FETEC), one of our group companies, is in the business of recycling waste electric wires and optical

Waste

cables by separating them into metal and plastic. FETEC has an established system for collecting waste electric wires, and almost 100% of
metals such as copper, which is a conductive material, are recycled. The coating material is also recycled from recycled plastic back into

Targets and achievements for FY2022 are shown in "Targets and Performances of Environmental Conservation Activities". In FY2022, thethe wire coating. In addition, FETEC is developing technologies to improve the accuracy of material separation and pursuing application

total waste generation in Japan (Per unit of net sales) decreased by 4.8% compared to FY2020. We work to reduce the generation oftechnologies to expand the effective use of recycled products, and is continuing to take on the challenge of reducing the waste of wires andwaste in the production process, such as by introducing liquid waste treatment facilities to reduce liquid waste.

cables to as close to "zero" as possible.

Targets and Performances of Environmental Conservation Activities

Recycling of Electric Wires and Optical Cables at FETEC (only available in Japanese)

Research and Development of Recycling Technology at Furukawa Electric
Since around 1990, Furukawa Electric has actively worked to use recycled materials including cable waste and plastic packaging andcontainers. In 2019, The Company developed a single-process technology for upcycling difficult-to-recycle disposable plastic products andwastepaper into reinforced plastic. Cellulose fiber, the main component of paper, and plastic typically do not blend well, but when utilising
Furukawa Electric’s Advanced Paper Fibre Upcycling (APFU) technology to break down the paper into loose cellulose fibers while blending
it with plastic, it is possible to upcycle these materials into plastic with about twice the strength as the original plastic. With the aim of
expanding the use of the technology, we are partnering with government agencies in Japan and abroad, as well as the plastic andrecycling industries. For example, Furukawa Electric participates in WIPO GREEN, a platform for technology exchange related toenvironmental conservation operated by the World Intellectual Property Organization (WIPO) of the United Nations, and has registered thetechnology. By promoting technology exchange through the use of intellectual property, we will contribute to the spread of environmentrelated technologies.

Total amount of waste generated

57

Basic Approach

Organizational
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Human Rights

Labour Practices

Fair Operating
Practices

Environment

Recycling of Copper
The Group works on recycling copper which is the main raw material. Our group companies collect copper from used wires and cables
collected from customers. The Copper Foil Div. uses this 100% recycled copper as a raw material to produce electrolytic copper foil.
Completed UL 2809 validation for copper foil containing 100% recycled copper

Biodegradable packaging materials
In FITEL Products Div., we developed individual packaging made of biodegradable pulp, which is available for precision instruments, withcollaboration with our suppliers. We started switching to use it from plastic packaging and will reduce the amount of single-use plastic
disposed of after transportation, thereby promoting effective use of resources and reducing greenhouse gas emissions during disposal.

External Collaboration
The Group participates in the following initiatives for resource conservation.
Japan Clean Ocean Material Alliance (CLOMA): platform for solving ocean pollution of plastic
WIPO GREEN: platform for technology exchange on environmental conservation
Participation in Initiatives

Data
Raw Materials Data
Total Waste Generation Data
Total Plastic Waste Generation Data
Recycled Resource Volume Data
Final Disposal Volume Data
Hazardous Waste Generation Data
Data on Environmental Conservation Costs Related to Pollution, Waste, and Resource use

58

Consumer Issues

Community
Involvement

DataBasic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Initiatives

Contribution to a Water / Resource Recycling Society

Effective Use of Water Resources

Formulation of Water Management Plan
The Group has established water management plans at the entire Group level and at each business company level, and has been
engaged in reduction of water consumption. As of July 2023, 42 companies (45%) of the 93 Furukawa Group companies had establishedwater management plans and started addressing the reduction of water consumption.

Basic Concept of Efficient Use of Water Resources
Furukawa Electric Group engages in the efficient use of water resources in order to contribute to the sound material-cycle society. The

Initiatives to Reduce Water Consumption at the FAS Headquarters

entire group work on reducing water consumption and recycling, and reusing water. In addition, the Group makes efforts to control andunderstand the amount of water consumption and discharge at each works. The Group will continue its efforts to further reduce water

The cooling towers in the plant of Furukawa Automotive Systems headquarters had required periodical chemical cleaning to remove theconsumption in the future.

precipitate in the circulating water, and it required a large quantity of water for its cleaning process. Therefore, we introduced a purification
system to reduce water consumption, resulting in an improved process that prevents the precipitate from forming and eliminates the needfor chemical cleaning. As a result, Furukawa Automotive Systems could reduce waste, reduce water consumption (50% reduction in

Targets and Achievements

running costs), and save energy by improving cooling efficiency.

We revised Environmental Target 2030 in February 2022 to improve intensity of water consumption by 10% or more compared to FY2020.
While the total amount of water resources used in FY2022 was increased compared to FY2020, the intensity of water consumption per unit

Efforts to Reuse Treated Waterof production was 1,110m3 /100 million yen, a decrease of 23.4% compared to FY2020. We will continue to promote the effective use ofwater resources necessary for production processes and to manage water quality and discharge amount by working on regular checks for

Shenyang Furukawa Cable Co., Ltd. (SFC) had treated domestic wastewater and then drained into rivers, but decided to reuse it aswater leakage, water-saving, and recycled water usage.

circulating cooling water for its production facilities. The wastewater is treated to a level sufficient for reuse as a circulating coolant andonline monitoring system constantly confirms that it meets the standards for use as a circulating coolant. As a result, the amount ofTargets and Performance of Environmental Conservation Activities

groundwater use was reduced.

Identification of Water Risk Areas and Water Stressed Areas
The Group has identified water risk areas (flood-hazard area) and water stressed areas (water supply shortages areas) for its major works
in Furukawa Electric Group by utilizing municipal hazard maps and World Resources Institute (WRI) AQUEDUCT. As a result, twoworks have been identified as water risk areas: Hiratsuka Works and TMS in Indonesia. The Group conducts annual risk assessments,
including those for water resources, and incorporates them into the BCM plan chart for improvement. In addition, no works were identified
as water stressed areas. The Group will continuously conduct surveys, and if water stressed areas are identified, the Group willcommunicate with the local governments and other stakeholders in the area in order to implement countermeasures.
Furthermore, Costs associated with water-related risks (capital investment, etc.) were 312 million yen in FY 2022.
Use of water resources

Data
Water Withdrawal Data
Water Discharge Data
Water Recycling and Reuse Volume Data
Third-Party Verification of Water Withdrawal and Discharge Data

59

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Response to Overseas Regulations and Management of Chemical Substances Contained in Products

Contribution to a Society that Coexists with Nature

The Group has established a system for managing chemical substances contained in products at its major bases and groupcompanies. We understand tightened regulations on environmental products and environmental risks that need to be mitigated, and takeChemical Substance Management

measures depending on their significance. In response to compliance with REACH Regulation by EU, which is environmental regulations,in FY2022 we have inspected our products that might include some of 233 substances up to the 28th update of SVHC list of
REACH. Additionally, we respond to chemSHERPA to meet customers’ requirements for disclosure of chemical substances.

Basic Concept of Chemical Substance Management

Green Procurement Activities

With regards to procurement of raw materials, components, and intermediate products used in Furukawa Electric Group products, we

Furukawa Electric Group has incorporated the reduction of environmentally hazardous substances into its Basic Environmental Policy, andconfirm that suppliers have established management systems for chemical substances contained in products and evaluate how theseworks to reduce emissions of hazardous chemical substances in manufacturing processes and to properly manage chemical substances.

systems are being operated, based on Green Procurement Guidelines*4 of each business division. We also confirm the survey data of

The Group also works on environment-friendly procurement and management of chemical substances contained in products in compliancechemical products contained in products based on updated information regarding regulations on chemical substances in products in orderwith related laws and regulations. We will continue to work to further reduce our environmental impact.

to purchase appropriate products.

Basic Environmental Policy*1 PRTR Law: Law Concerning Reporting, etc. of Releases to the Environment of Specific Chemical Substances and Promoting Improvements in Their
Management

Targets and Achievements*2 JAMP: Joint Article Management Promotion-consortium*3 chemSHERPA stands for "chemical information SHaring and Exchange under Reporting PArtnership in supply chain". This is a joint communication scheme
currently operated by JAMP that communicates information on chemical substances contained in products throughout the supply chain, from upstream

As a domestic Group activity target for FY2022, we worked to reduce emissions of volatile organic compounds (VOC). In FY2022,

companies to downstream companies.

emissions of Furukawa Electric and group companies in Japan decreased by 14.2% from the previous year. We will continue to take action*4 The Group has established "Green Procurement Guideline", which indicates that the Group will preferentially and continuously procure environment-friendly

to control emissions in our production processes and other activities, as well as reduce the use of target substances.

products that lead to conservation of biodiversity and forest resource saving, etc.

VOC Emissions Data
Green Procurement Guideline

Initiatives
Data
Appropriate Management of Chemical Substances in Manufacturing Processes

Emissions of volatile organic compounds (VOC)

We confirm the handling precautions and applicable laws and regulations for chemical substances used in Furukawa Electric GroupNOx and SOx emissions

manufacturing processes using GHS labels and SDS (safety data sheet), and manage these substances accordingly. Additionally, we work
to ascertain the amounts of substances handled, transferred, and released in accordance with the PRTR Law*1.

PRTR substances list

Management of Chemical Substances Contained in Products
Response to Customer Requests

The Group has participated in JAMP*2 since 2009, and implement group-wide environmental inspections based on the latest informationfrom the management target substance list of chemSHERPA*3 by JAMP, regarding management of chemical substances contained in

products. We also monitor trends in laws and regulations covering the chemical substances contained in products and accumulate andupdate data as it becomes available, allowing us to respond promptly to customer requests.

60

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Community
Involvement

Consumer Issues

Data

Initiatives

Contribution to a Society that Coexists with Nature

Start of Evaluation by the LEAP approach of TNFD*

Biodiversity Conservation

Recognizing the impacts of our business activities on biodiversity, we started initiatives not only on climate change but also on biodiversity.
The characteristics of biological resources and water vary depending on the region. Therefore, we are investigating “Locate” - Locate yourinterface with nature - while referencing LEAP (Locate, Evaluate, Assess, and Prepare) approach shown in beta versions of TNFD

Basic Concept of Biodiversity Conservation

disclosure framework.

Furukawa Electric Group has incorporated its efforts to conserve biodiversity into "Basic Environmental Policy". The Group has established* TNFD: Taskforce on Nature-related Financial Disclosurescomprehensive guidelines for the Group's biodiversity conservation efforts. The Group will carry out its activities based on these guidelines.
As beneficial initiatives for the ecosystem, the Group will conserve rare plants and animals and procure based on Green Procurement

Guideline*. In addition, the Group will conduct activities of reduction of single-use plastics and community cleanup as efforts to reduce theCultivation of the Endangered Plant "Pulsatilla Cerna"

negative impact on the ecosystem.
Furukawa Research Inc. , one of a Furukawa Group company, began cultivating the flower "Pulsatilla Cerna" listed as endangered class* The Group has established "Green Procurement Guideline", which indicates that the Group will preferentially and continuously procure environment-friendly

II*1 on the grounds of Yokohama Works in Furukawa Electric in FY2015, as a part of our efforts to contribute to the local community. The

products that lead to conservation of biodiversity and forest ,resource saving, etc..

cultivation activity also took place at Hiratsuka Works and Chiba Works in FY2016 by separating the roots of the existing plant and theactivities continue at each works. Separated root is also grown in Furukawa Automotive Systems Inc. , one of a Furukawa Group

Green Procurement Guidelinecompany, in FY2020, blooming beautifully through the activities of cultivating teams. Harvested seeds and roots were distributed to eachsite of Furukawa Automotive Systems Inc. to expand the conservation activity of "Pulsatilla Cerna".
Based in Shiga Prefecture, Furukawa Automotive Systems received recognition for its cultivation of "Pulsatilla cerna" (endangered class

Furukawa Electric Group Biodiversity Conservation GuidelinesII) and cleanup activities in the local community conducted through ISO 14001-based environmental management systems in the "Shiga
Biodiversity Initiatives Certification 2020" *2 program, earning the highest rating of three stars.

1. Evaluate the impact that our business activities have on the ecosystem, and minimize the negative impact while maximizing
the beneficial one*1 “Endangered class II” refers to species with an increased risk of extinction.

2. To sustainably use resources and conserve biodiversity, consider more than ever accelerating measures against climate*2 Shiga Prefecture established the Biodiversity Shiga Strategy in 2015, which is based on the philosophy of “utilizing the inherent strength of nature andchange, resource saving and recycling and reducing environmentally hazardous substances

protecting life across generations”. The prefecture has been evaluating the efforts of businesses to conserve biodiversity through Shiga Biodiversity
Initiatives Certification program since 2018.

3. Carry out activities in collaboration with local communities to conserve biodiversity

Yokohama Works

Chiba Works

Chiba Works

Hiratsuka Works

Furukawa

Furukawa Automotive

Automotive

Systems Inc.（Shiga）

Systems Inc.
（Shiga）

Work on the Plastic Pollution
While the usage of plastics just keeps expanding for their high workability and physical properties, we are facing issues such as plastics inthe seas and oceans, constraints on resources/disposals, and climate change. Under the "Environmental Vision 2050", the Group works on
cable recycling business, R&D for recycling technology, and environmentally friendly design (use of recycled plastic raw materials,
facilitating disassembly and sorting, etc.). In addition, the entire group will work to reduce the amount of new plastic materials and singleuse plastics as stated in the "Environmental Targets 2030".
Specific activities are here.

61

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Initiatives by Group companies

Tree planting by Siam Furukawa Co.,

Removing the invasive plant ”Rudbeckia

Wildlife habitat maintenance in the

Planting 200 trees in 2022 byLtd. since 2012laciniata“ by Furukawa Battery Co., Ltd.

factory site by OFS Fitel, LLC since

Furukawa Auto Parts (Huizhou) Co. Ltd.

since 20182019

Other activities (FY2022)
Acorn tree planting (Furukawa Electric Advanced Engineering Co., Ltd)
Continuous implementation of coast cleanup and green conservation (Furukawa Battery Co., Ltd)
Tree planting (Furukawa Sangyo Kaisha, Ltd., Furukawa Battery Co., Ltd)
Holding a workshop in collaboration with the ornithological society (Furukawa Electric Technology Institute Ltd.)
Donation for the laboratory of ornithology (Furukawa Electric Technology Institute Ltd.)
Joining in Ichihara city town beautification program (Chiba works of Furukawa Electric)

External Collaboration
The Group participates in the following initiatives for biodiversity conservation.
Japan Business Initiative for Biodiversity (JBIB)Keidanren Initiative for Biodiversity Conservation
Japan Clean Ocean Material Alliance (CLOMA)
Participation in Initiatives

62

Consumer Issues

Community
Involvement

DataBasic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Items of CSR Procurement Guideline

Supply Chain

Labor
Health and Safety
Environment
EthicsBasic approach to procurement

Product Quality and Safety
Information Security

In order to realize a sustainable society, we have been conducting fair and sincere procurement activities to take the consideration about

Business Continuity Plans

the safety and environment, under the Furukawa Electric Group Procurement Policy.

Management Systems

We contribute to create the social infrastructure combining information, energy, and mobility through the relationship and co-creation with

Contribution to Society

our partners*.

CSR Procurement Guideline 3rd edition

Furukawa Electric Group Procurement Policy

Green Procurement Guideline

1. Fairness and Integrity
We are open to any and all business partners in accordance with the principle of free competition and we all act with fairness

Furukawa Electric Group promotes environmental conservation activities and green procurement throughout the Furukawa Electric Group.

and integrity.

We intend to procure environmentally conscious products continuously and with priority from partners who are positive about
environmental conservation activities. This way of thinking has been brought together in the Green Procurement Guidelines as the

2. Compliance with Laws and Regulations and CSR Procurement

procurement requirements.

Toward the realization of a sustainable society, we conduct our procurement activities considering environment preservationand safe operation in comply with all applicable laws and regulations and we do fulfill our Corporate Social Responsibility.

Items of Green Procurement Guideline

3. Partnership

Request to the Partners

We always value relationships of mutual trust with our business partners to create new values by collaboration.
We pursue to optimize our procurement conditions from the viewpoint of quality, cost, delivery, technological capabilities andFurukawa Electric Group Green Procurement (Imperative)

CSR activities.

Operation of the Green Procurement Guideline
Green Procurement Guideline* In the Group, we call our business suppliers as the “Partners” to collaborate the value creation.

Procurement Guidelines

Quality Assurance Guideline
The Group hopes to continuously improve customer satisfaction by establishing a quality management system with our suppliers.

CSR Procurement Guideline

Therefore, we have summarized our approach to quality management in our "Quality Assurance Guideline."
Furukawa Electric Group believes that it is important to address corporate social responsibility (CSR) throughout the supply chain,
Items of Quality Assurance Guideline

including suppliers, in order to achieve sustainable business development. Therefore, in August 2010, we formulated the Furukawa ElectricGroup CSR Promotion Guidelines for Partners, and worked together with our partners on the promotion of CSR. In February 2021, we

Requirements with Respect to Quality Assurance and Securing Resources

updated the content of these guidelines in response to changes in social requirements and changed their name, all with reference to the
RBA Code of Conduct 7.0 and other guidelines, revising them into the Furukawa Electric Group CSR Procurement Guidelines (3rdProcesses of Ordering, Design, Development, Change, Purchase, and Manufacturing

Edition).

Audits and Management of Nonconforming Products by Partners
Quality Assurance Guidelines for Partners
合作䫊伴ૅ量保ચ指南

63Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Responsible Mineral Sourcing Activities

Initiatives

The Group has up to now clearly stated its approach to "responsible minerals sourcing" in the CSR Procurement Guidelines and has madePromoting CSR Procurement activities

it known to Group companies and business partners. In September 2022, we established the Furukawa Electric Group Responsible
Minerals Sourcing Policy in response to recent changes in social trends and increasing social demands regarding minerals sourcing.

Furukawa Electric Group has established CSR Procurement Guidelines for our partners and promotes ESG procurement activities thattake E(Environment) and S(Social) into consideration. At the end of FY2020, we published the CSR Procurement Guideline (3rd Edition),to which we added the latest social requirement items with reference to the RBA Code of Conduct and JEITA Guidelines.

Furukawa Electric Group Responsible Minerals Sourcing Policy (Established on September 12, 2022)

We ask new suppliers for agreement to comply with our CSR Procurement Guideline as a prerequisite for starting a business with us.

Furukawa Electric Group shall not procure tantalum, tin, tungsten, gold, and other minerals associated with human rights violations,

Based on our CSR Procurement Guideline, we work together with existing partners to ensure "strict compliance with laws and regulations

environmental degradation, corruption, conflicts, and other incidents in conflict-affected and high-risk areas. We will work to correct

and fair trade," "consideration for human rights, safety, and the environment," "reduction of environmental impact," and "non-use of conflictany concerns about risks that arise in our supply chain and engage in responsible minerals sourcing throughout the entire supply

minerals" in our procurement activities. We also hold annual Partners Meetings to provide our partners with ongoing encouragement by

chain.

explaining our CSR Procurement guidelines and our environmental and social procurement policies, targets, and initiatives.
As a risk survey for existing partners, we continue to conduct not only the conventional questionnaire but also a self-assessment
questionnaire (SAQ) for major partners in accordance with the contents of the CSR Procurement Guideline since FY2021. In the event that

Based on the above policy, we promote compliance with the OECD Due Diligence Guidance, continue to investigate the use of target

a partner falls under any of the survey items that we have identified as high-risk, we will reconfirm the situation through interviews andmetals in major products of our company and group companies and actively promote procurement from smelters certified under theother means, and encourage the partner to correct the situation as necessary. In FY2022, we further promoted CSR procurement activities

Conflict-Free Smelter Program of the Responsible Minerals Initiative (RMI).

throughout the Furukawa Electric Group, expanded the scope of SAQ partners, and started SAQ to partners of domestic and Asian groupcompanies.

Cooperation with External Organizations

In addition, we have established contact points for inquiries about compliance and inquiries about human rights (JaCER's Grievance Form)on our company website for the acceptance of reports on non-compliance and suspicious activities taking place within the context of our

In addition to our own efforts to prevent or mitigate the adverse effects of mining minerals in conflict or high-risk areas, we are a member ofprocurement activities. When a report has been received, we will check the described facts of that report, undertake a response such as an

the Japan Electronics and Information Technology Industries Association (JEITA) Responsible Minerals Procurement Study Group and areinvestigation, and provide feedback to report-issuing party as deemed necessary.

working to resolve global conflict minerals issues and improve supply chain conflict minerals research activities through industry
collaboration.

CSR Procurement Guideline
Supply Chain BCM (Business Continuity Management)
Partners' Meetings and Partner Evaluation and Recognition System

Furukawa Electric conducts regular surveys on its main partners about their BCM measures. In fiscal 2022, we held surveys for main
partners and placed the results we received onto a database. In this way, we have become able to quickly identify which partners are most

We carry out partner evaluations of selected partners based on importance and purchase amount, who handle 80％ of our purchaselikely to be affected when a disaster occurs.

amount. At the annual Partners Meeting, we explain our CSR Procurement Activities directly to our partners in order to deepen theirunderstanding of our company. In FY2022, the Meeting was held in June combining online and face-to-face awards ceremony, and wasattended by 58 major partners. The "Excellent Partner Award," "Group Global Partner Award," "Best Performance Award," "SDGs Award,"

Conducting Training on Subcontracting Transactions

and "Special Award" are presented to recognize multifaceted efforts. We also evaluate major partners on the basis of quality, technology,
price, delivery system, degree of social contribution, and credit condition, and provide feedback on the results in the meetings. We also

In order to forge sound relationships with business partners through fair transactions that comply with rules and regulations, Furukawa

exchange opinions on the results of the evaluations and make them aware of our procurement activities. As part of these efforts, inElectric Group provides training for employees on subcontracting transactions. In fiscal 2022, we conducted employee education throughFY2022, as part of our procurement logistics activities, we continued to reduce costs and CO₂ emissions during procurement and addresse-learning to ensure that all employees are familiar with the contents of the Act against Delay in Payment of Subcontract Proceeds, etc. tothe "risk of soaring logistics costs and inability to transport" by selecting the most appropriate means of transportation within the value

Subcontractors, as well as s well as the management practice of molds.

chain, including effective use of our returning vehicles. In addition, as an environmental partner engagement, we continue conducting GHG(Green House Gas) emission surveys for a part of our partners since fiscal 2021.
For the partner evaluation in FY2022, we expanded the scope to 260 partners and provided feedback to them. Furthermore, we ask forcontinued cooperation from business partners on business continuity and stable supply.

64Organizational
Governance

Basic Approach

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Challenges and Future Policy
We intend to fully grasp the state of our CSR activities along the value chain by regularly asking our partners to complete a questionnaireon their understanding of our CSR Procurement Guideline for Business Partners. We will also work to strengthen BCM (BusinessContinuity Management) by encouraging partners based on the results of our BCM questionnaire and manufacturing site survey, with theaim of improving crisis /emergency response capabilities along the entire value chain. Internally, we hold exercises and seminars on thehandling of BCM to raise our awareness. In addition, we are reforming work styles through the RPA (Robotic Process Automation) and also
making efforts to reduce internal risks through the standardization and duplication of the procurement operations.
Targets and Results (Promoting socially responsible procurement activities to achieve the SDGs)

FY 2022
Targets

FY 2023
Results

Targets

・Conduct assessments for partners and・We assessed 260 key partners. The

・Conduct assessments for partners andenhance CSR procurement surveys

Partners Meeting was held online and face-to-enhance CSR procurement surveys andface and we explained an outline of the

feedback

company and our procurement policy.
・We continued the GHG emission survey fora part of our partners.
・Continue to inform partners of the・We continued to conduct the self-

・Continue to fully inform all of our partners of"CSR Procurement Guidelines" and to conduct

assessment questionnaire (SAQ) for key

the "CSR Procurement Guidelines" and to

the self-assessment questionnaire (SAQ) for

partners based on the contents of the CSR

conduct the SAQ for key partners and expand

key partners

Procurement Guidelines.

for more key partners

・Consider measures to strengthen the value

・We continued considering and implementing

・Consider measures to strengthen the value

chain, such as having multiple procurement

to increase the number of procurement bases

chain, such as having multiple procurement

partners, based on the results of the BCP

for important products.

partners, based on the results of the BCP

questionnaire

・We consider carrying more inventory ifquestionnaire

necessary.
・Conflict minerals surveys (data update・The conflict materials surveys (data update・Conflict minerals surveys (data update

surveys)surveys) were done.

surveys)・Promote strategic purchasing process

・Number of the partners reduced CO₂

・Promote strategic purchasing process

considering the value chain

through procurement logistics: 25 companies

considering the value chain

in FY 2022

65

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Community
Involvement

DataBasic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Quality compliance

Quality

Quality compliance observance is a prerequisite for business, and in order to thoroughly eliminate quality irregularities, it is important for
top management, under its strong leadership, to instill this determination at all levels, strengthen the culture of autonomous awareness ofquality compliance among all employees, create and implement a system to complement this awareness, and provide effective check

Basic Approachfunctions.
We implement a thorough awareness of compliance under the guidance of top management, establishing a mechanism for developing

Each of the Company’s divisions has acquired ISO 9001 certification. We have been contributing to the society by introducing thecustomer requirements and quality expected by customers, and conducting periodic inspections to ensure that there are no deviations fromprocesses of ISO9001, and constantly striving to improve quality by standardizing operations in order to provide good products andofficial standards or customer requirements. For some of these important processes, we have established common guidelines within theservices from the customers’ prospects.

group, and each business unit and each company carries out activities in accordance with the guidelines. In addition, we also take

Going forward, we will continue endeavoring to further enhance “MONOZUKURI ability” throughout Furukawa Electric Group by achieving

examples of quality irregularities at other companies as a springboard for preventative activities to nip potential irregularities in the bud.

the quality expected by customers, based on a policy of Group-focused management.

Quality Enhancement Project

Quality Management Policy

At every stage of our operations, from research and development to manufacturing, sales, customer service and management, in all

For the purpose of improving the manufacturing ability, obtaining the technically valuablesections and all hierarchies, we always strive to adhere to a PDCA management cycle based on actual facts, maintain and improveknowledge and reducing the failure cost, we select the important issues in all businessour products, customer services and the quality of our operations and put our management policies into practice.

divisions and take action to solve the issues. The aim of these activities is to develop
human resources with high problem-solving skills.
At the end of FY 2022, the report meeting was held, where all business divisions listened toeach other's activity reports, gained insights, and made suggestions to each other on how

Organizations for Improving Quality

to improve problem solving. This was an opportunity to become strongly aware of theimportance of grasping the current-status.

Furukawa Electric has established Furukawa Electric Group Quality Management Committee, which is chaired by the president, as the

The report meeting of
Quality Enhancement Project

topmost body for promoting quality management at Furukawa Electric Group level. Directed by this committee, Divisional Quality
Management Committees led by general manager of each business / corporate division promote ongoing efforts to maintain or improve theRisk Free Design (RFD) Project

quality of our products, customer services and operations.

In order to achieve the quality expected by customers, it is important to identify problems at the design and development stage and to
take appropriate measures before starting the production.
In this project, we are working to improve the ability in identifying problems and in solving them by the designing and developing
engineers, also improving the process for its effective implementation.
We have continued and implemented training sessions to acquire basic concepts and improve leadership skills, and have expanded
the scope of target organizations. We have also worked to penetrate this philosophy through the accumulation of practices. In addition
to these activities, we have promoted self-checking activities to see if problems were resolved during the design development andchange process, and have begun efforts to further improve our practical skills.
That system is shown in the "Guidelines" regarding the design and development that the Group has independently established. By theguidelines, each business division is promoting the standardization that is appropriate for each business and continuously implements
improvements to address problems that emerge while operating the system.

Promotion Framework

66Organizational
Governance

Basic Approach

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Issues and the future policy
In light of the recent quality irregularities in Japan’s manufacturing industry, Furukawa Electric Group will continue to strengthen quality
compliance and quality governance by conducting inspections and setting guidelines which stipulate what we should observe, particularly
the parts related to quality compliance.
In order to achieve the quality expected by customers, we will continue to implement two projects.
Each year, the Quality Enhancement Project selects important quality improvement themes in each business division and promotes
problem-solving. These activities are not a series of superficial measures, but a thorough investigation of the root cause of the problem.
We enhance the problem-solving capabilities of the organization, addressing the continuous promotion of activities to improve thetechnology in the business field of the theme.
The Risk-Free Design (RFD) project continues to promote training that empowers employees to identify potential problems and issues in
the market, and conduct MIZENBOUSHI (resolve and prevent problems) at the design and development process mainly, before customers
use the product. We will continue to introduce and improve training programs to develop employee competence, and systems to implement
preventive measures as an organization.

Targets and Results (Quality)

FY2022
TargetFY2023ResultTargetCommitted to achieving the quality expected

We have strived to conduct mutual study on

Committed to achieving the quality expectedby customers!

how to proceed with problem solving and its

by customers!

activities and expand and deepen the activitiesof the RFD Project.

67

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Community
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DataBasic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Activities in Each Community

Local Community Contribution, Social Contribution

The Group has been involved in various social contribution activities in each community.

Basic Policy

Developing the next generation

Furukawa Electric Group has continued to conduct social contribution activities that are rooted in the local community. Going forward, we
will continue to promote social contribution activities obviously through the main business as one of our ESG management activities, inaccordance with Furukawa Electric Group Basic Policy on Social Contribution Activities.

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 businessrelated activities, in order to maintain and strengthen community ties built over centuries and create a better tomorrow for future

Have conducted energy classes forStarted accepting university students

local elementary school students sincemajoring in safety since 2014(FAST*)

2012 (Furukawa Battery Co., Ltd)

Keep conducting "Training of Teachers

Have given blankets and sports gear toin the Private Sector" sponsored by

local schools since 2017（SFC*)

Keizai Koho Center (Japan Institute forgenerations.

Social and Economic Affairs) since 2014
(HQ, Furukawa Electric Co., Ltd.)ESG Awards Social Contribution Award
The Group presents the "ESG Awards" every year to recognize the outstanding social contribution and environmental preservation
activities and to stimulate activities within the Group. The ESG Awards are divided into two categories: "the Social Contribution Award" forsocial contribution activities and "the Environmental Contribution Award"* for environmental conservation activities, and are given to theGroup companies in Japan and overseas. For FY2022, One Outstanding Performance Award, two Excellent Performance Awards, and two

Keep giving workplace experience

Keep giving workplace experience

Started renovation and installation ofStarted accepting workplace visits for

programs for elementary and junior highprograms for nearby junior high schoolfans in the cafeteria of a local

junior high and high school students in

Honorable Mentions were selected by the judging panel for the "Social Contribution Award".

school students in Yokohama City since

students since 2017 (Furukawa

elementary school in 2019（FAST*）

2019, and continue having talks with2017 (Yokohama Works, Furukawa

Research, Inc.)

Company

Outstanding
PerformanceAward

Furukawa Electric(Shenzhen) Co., Ltd.
(FESZ)

OutputLiving in harmony with
the natural environment
and local communities

Continued to provide safety guidance and audits to 24 othercompanies in the Shenzhen area of China, as well as safety
training to 18 companies and local governments, as a rolemodel company for safety in the area.

Imaichi Works, Furukawa
Battery Co., Ltd

Living in harmony with
the natural environment
and local communities

Continued tree planting activities for 11 years in cooperation
with local governments in the region

Developing the next
generation

Conducted energy classes for local elementary school students
for the past 10 years (approximately 30 classes were held at 13
schools for a total of approximately 1,600 students).

160 people participated in FY2022 including employees, local
residents, and employees of business partners

Created DVDs for review and devised a program structure that
included a workshop for assembling imitation storage batteries

Honorable
Mention*employees and office tours (HQ,Electric Co., Ltd.)

Furukawa Electric Co., Ltd.)

Actual improvement of items pointed out avoided serious
accidents at other companies
Siam Furukawa Co., Ltd.
(Thailand)

Excellent
PerformanceAward

Type of Activities

PR and Service
department, Furukawa
Research, Inc.

Developing the next
generation

Gave workplace experience for nearby junior high school
students for 6 years

OFS Fitel, LLC
Sturbridge（the UnitedStates）

Living in harmony with
the natural environment
and local communities

Continued to maintain wildlife habitat in the factory grounds for
4 years

Details of the ESG Award for Environmental Contribution

68

Participated in a local educational

Donated PCs to local elementary

program, giving lectures on high-schools in 2022（TFU*）

Donated 94 used PCs to a non-profit

Gave art and craft classes fororganization, supported high school

elementary school students using waste

students' programming education andmaterials in 2022 (Furukawa Electric

temperature superconductivity
technology to elementary school

career choice in 2022 (Furukawa

Power Systems Co., Ltd.)

students in 2022（SPI*) ）Elecom Co., Ltd.)

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Other Activities (FY2022)

Consumer Issues

Community
Involvement

Data

Promoting sport and culture

Holding workshops for university students (FETI*)
Accepting junior high school students’ tours (FETI*)
Accepting internship students (FFT*)
Visiting high schools to give classes (career guidance)（Chiba Works, Furukawa Electric Co., Ltd.）
Accepting residents and nursing student interns (Chiba Works, Furukawa Electric Co., Ltd. )Giving workplace experience for students in special needs schools (Furukawa New Leaf Co., Ltd., Furukawa Sangyo Kaisha, Ltd.)
Providing teaching materials to special needs schools (Furukawa Battery Co., Ltd)The Company is an official partner of the professional

The Company supports the activities of the professionalsoccer team JEF United Ichihara Chiba.

ice hockey team H.C. Tochigi Nikko IceBucks.

Donating products to elementary schools (Trocellen)
Providing batteries for high school electric vehicle competition of Tochigi Prefecture (Furukawa Battery Co., Ltd)
Cooperation in a robot contest for technical school (Furukawa Battery Co., Ltd)
Sponsorship of chemistry and mathematics training camps for university students (FETI* )Sponsorship of and donations to Japan Student Services Organization and Ashinaga Foundation (Furukawa Elecom Co., Ltd.)
Donation to a local program of global human resources development and serving as a member of the screening committee (Furukawa
Battery Co., Ltd)
Sponsorship of student activities at the University of Indonesia (FOSI*)The Company donated the former Shigenobu Okuma House and the former Munemitsu Mutsu House,

Donation to a local sports club (Furukawa Battery Co., Ltd)

which the Company maintained and managed as reception facilities in Meiji Memorial Oiso House and Garden,
to the national government in fiscal 2018. (Furukawa Electric Co., Ltd.)SDGs Sponsorship of JEF United Ichihara Chiba

Have donated soccer balls to children since 2015 (FAST*)（Furukawa Electric Co., Ltd.）only available inHave co-hosted marathon competitions with a hospital
since 2018 (SFC*)

Japanese

Other activities (FY2022)

Accepting female players of JEF United Ichihara Chiba for employment (Furukawa Sangyo Kaisha, Ltd.)
Sponsorship of the professional soccer club ”Iwaki FC” and donations to its soccer field (Furukawa Battery Co., Ltd)
Sponsorship of the Winter National Sports Festival (Furukawa Battery Co., Ltd)
Cooperation in soccer tournaments (FASM*)
Donation to the Indonesian traditional event " Hari Raya Haji " (FOSI*)

69

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Other Activities (FY2022)

Living in harmony with the natural environment and local communities

Donations to and cooperation with local fireworks shows and festivals (Mie Works and Yokohama Works of Furukawa Electric Co., Ltd,
Furukawa Battery Co., Ltd)
Employment support for people with disabilities at our special subsidiary, Furukawa New Leaf Co., Ltd. (Furukawa Sangyo Kaisha, Ltd.)
Employment support for Pasona Heartful, a Pasona Group special subsidiary, by ordering the original paintings (Furukawa Sangyo
Kaisha, Ltd.)
Conducted blood donation activities (Chiba Works of Furukawa Electric Co., Ltd, Furukawa Battery Co., Ltd, SFC*, FFT*, FETI*)
Held a traditional Nikko Waraku
Odori dance event since 1914
(Furukawa Electric Co., Ltd).

Sponsorship of local youth sports
activities for drug eradication Since 2001
(SFC*)(Canceled in 2022 due to the spreadof new coronavirus infection)

Donation of proceeds from recyclingaluminum bottle caps to a local
environmental office for use in the
production of prosthetic legs for people
with disabilities since 2010 (FAST*)

Donations to hospitals (SFC*)

Donation of calendars since 2010
(FAST*)

Donations to Doctors Without Borders, NPO (Furukawa Battery Co., Ltd.)
Donation of food to Good Neighbors Japan, NGO (Furukawa Electric Business & Life Support Inc.)
Donation to Kanagawa Society for the Prevention of Cruelty to Animals (Furukawa Battery Co., Ltd.)
Financial aid for children in need (FETI*)
Donations to local volunteer groups and support to centers for people with disabilities (MYOJYODENKI Co., Ltd., FASM*)
Support for local activities (donations, donations of goods) (FOSI*)
Donation of calendars (FAST*)

Donation of drinking water to highway
police stations and traffic checkpoints
since 2010 (SFC*)

Donation of aluminum cans to a
prosthetic foundation that makes
artificial limbs since 2015 (TFU*)

Donations to hospitals since 2019
(SFC*)

Sorting and donation of used stamps (MYOJYODENKI Co., Ltd.)

Continued volunteer activities at elderly
care facilities since2019 (MYOJYODENKI Co., Ltd.)

Volunteer participation at Minna cafeteria (Furukawa Battery Co., Ltd.)
Volunteer activities to support people with disabilities (Furukawa Battery Co., Ltd.)
Holding projects for environmental conservation and CO2 emission reduction (FETI*)
Holding events of hazardous waste recycling and paper waste disposal for local citizens (OFS*)
Recycling of plastic, metal, cardboard waste, etc. (FFT*, FTC*, FASM*, Shenyang Furukawa Cable Co., Ltd.)
Collection of plastic bottle caps (Chiba Works of Furukawa Electric Co., Ltd, MYOJYODENKI Co., Ltd.)

Cleanup activities around thehead office (Chiyoda-ku, Tokyo) since2019 (MYOJYODENKI Co.,Ltd.)

Donation of unused calendars to
support organizations for the visually
impaired to create braille books since2019 (TFU*)

Continued to provide safety guidance
and audits to 24 other companies in theShenzhen area of China, as well as
safety training to 18 companies andlocal governments, as a role modelcompany for safety in the area since2019 (FESZ*)

Collection of copper scrap and selling it to recyclers (CAH*)

Donation of used electronic components
for reuse and recycling since 2019
(TFU*)

Cleanup activities (Mie Works of Furukawa Electric Co., Ltd, FETI*)
Donations to environmental activities of public organizations (FETI*, FOSI*)
Support for the Turkey-Syria earthquake (donations, holding charity events, mattress donations) (Trocellen , Furukawa Electric Co., Ltd,
Polifoam Kft.)
Donation of goods to the earthquake in Cianjur, West Java Province of Indonesia (FOSI*)
Support for Ukraine (donations, mattresses donations) (Furukawa Electric Co., Ltd, Polifoam Kft.)
Sponsorship of Osaka-Kansai Japan Expo (Furukawa Electric Co., Ltd.)

Donation of items to help prevent
Covid-19 since 2021（FOSI*）

Donation of medicinal herbs andfertilizers for local climate change
programs since 2021 (FOSI*)

Holding gatherings with people withdisabilities and supporting theiropportunity to earn in collaboration with
the Yokohama City Health and Welfare
Bureau since 2021 (Furukawa ElectricPower Systems Co., Ltd.)

Local Biodiversity Conservation Activities

Donation of waste aluminum cans tofacilities for people with disabilities in
Nikko City to support their employment(e.g., cleaning up cans) and monetizingin 2021 (Furukawa Battery Co., Ltd)* FAST: Furukawa Automotive Systems (Thailand) Co., Ltd.
SFC: Siam Furukawa Co., Ltd.
SPI: SuperPower Inc.
TFU: Thai Furukawa Unicomm Engineering Co., Ltd.
FETI: Furukawa Electric Institute of Technology Ltd.
FFT: Furukawa FITEL (Thailand) Co., Ltd.
FOSI: P.T. Furukawa Optical Solutions Indonesia
FASM: Furukawa Automotive Systems Mexico S.A. De C.V.
FESZ: Furukawa Electric (Shenzhen) Co., Ltd.

Donation of goods to a nursing home in2022 (FASM*)

Donation of goods to an orphanage in2022(FASM*)

OFS: OFS Fitel, LLC

Organized an event of hazardous waste
recycling and paper waste disposal for
local citizens in 2022 (OFS*)FTC: Furukawa (Thailand) Co., Ltd.
CAH: Chongqing Changhua Automobile Harness Co., Ltd.

70

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Donations
The Group makes donations as a contribution to the local community. Only disclosed information on the corporate website is listed
below. The following links are available only in Japanese.
Fiscal Year

Subject

Monetary Contribution

2011

The 2011 off the Pacific coast of Tohoku Earthquake in Japan

246 million yen

2018

The Heavy rains in western Japan

1 million yen

2019

The Typhoons in Japan

7 million yen

2020

The Heavy rains in Japan

5 million yen

71

Consumer Issues

Community
Involvement

DataBasic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

Furukawa Electric + Domestic group companies

ESG Data

Category

Key activity and the outcome
Installation and maintenance of equipment for exhaust andEnvironmental conservation costs(Unit: million yen)

Key activity and the outcome
Installation and maintenance of equipment for exhaust and

1,493

1,693

1,558

385

386

301

268

270

467

457

420

419

518

346

327

358

300

298

drums, etc.

FY

FY

FY

FY

2018

2019

2020

2021

2022

Research and development costs

1,180

1,145

1,144

1,238

1,211

Social activity costs

Tree planting, local community cleaning activities, donations, etc.

6

5

1

2

3

Environmental remediation costs

Environmental impact assessments, cleanup of polluted soil, etc.

3

1

0

1

1

2,863

2,857

2,573

2,682

2,648

wastewater treatment, energy saving, recycling, solar power
generation, etc., waste disposal, various types of recycling, soil

Packaging with eco-friendly materials, collection and reuse of cableResearch and development for environmental conservation, such asenergy savings and alternatives to hazardous substances.

Total
175

175

156

142

137

331

329

340

312

396

286

281

260

222

264

drums, etc.
Environmental management system operation (operation of

Economic benefits associated with environmental conservation activities (Unit: million yen)
Reduction amount compared to previous year, Minus figures indicate an increase.

committees, audits, etc.), measurement and monitoring ofenvironmental impact, and environmental education, etc.
Research and development for environmental conservation, such as

Furukawa Electric
Details of benefits

energy savings and alternatives to hazardous substances.

Social activity costs

Tree planting, local community cleaning activities, donations, etc.

Environmental remediation costs

Environmental impact assessments, cleanup of polluted soil, etc.

Total

2

2

0

1

1

3

1

0

0

0

1,977

1,933

1,900

1,914

2,009

Key activity and the outcome
Installation and maintenance of equipment for exhaust and

FY

FY

FY

FY

FY

2018

2019

2020

2021

2022

476

535

348

455

347

contamination surveys, etc.
211

145

126

FY 2021

FY 2022

244

170

200

Reduction in waste disposal costs

-117

-150

24

132

-111

Reduction in energy costs

-531

64

1,057

-958

-2,424

3

8

23

6

-13

-252

171

1,348

-650

-2,346

Details of benefits

generation, etc., waste disposal, various types of recycling, soil

210

FY 2020

248

Domestic group companies

wastewater treatment, energy saving, recycling, solar power

Packaging with eco-friendly materials, collection and reuse of cable

FY 2019

159

Total

Category

FY 2018

Revenue from recycling

Reduction in water purchase costs

Domestic group companies

133

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Revenue from recycling

334

239

244

361

Reduction in waste disposal costs

-55

-46

33

14

393
156

Reduction in energy costs

-80

77

1,072

-654

-1,118drums, etc.

Reduction in water purchase costs

-16

-32

63

-11

0

Environmental management system operation (operation of

Total

183

237

1,412

-290

-569

136

128

80

107

122

60

46

97

78

34

committees, audits, etc.), measurement and monitoring of
Furukawa Electric + Domestic group companies

environmental impact, and environmental education, etc.
Research and development costs

1,681

FY

contamination surveys, etc.

Administration costs

1,656

environmental impact, and environmental education, etc.

Category

Upstream/ downstream costs

FY
2022

committees, audits, etc.), measurement and monitoring of

Furukawa ElectricBusiness area costs

Packaging with eco-friendly materials, collection and reuse of cable

Environmental management system operation (operation of
Administration costs

Research and development costs

FY
2021

contamination surveys, etc.
Upstream/ downstream costs

Administration costs

FY
2020

generation, etc., waste disposal, various types of recycling, soil

Environment revised in August 2023

Upstream/ downstream costs

FY
2019

wastewater treatment, energy saving, recycling, solar power

Business area costs

Business area costs

FY
2018

Research and development for environmental conservation, such as

Details of benefits

energy savings and alternatives to hazardous substances.

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Revenue from recycling

493

487

488

531

62

-196

57

146

593
46

141

2,129

-1,613-3,541Social activity costs

Tree planting, local community cleaning activities, donations, etc.

4

3

1

1

3

Reduction in waste disposal costs

Environmental remediation costs

Environmental impact assessments, cleanup of polluted soil, etc.

0

0

0

1

1

Reduction in energy costs

-611

886

924

673

768

640

Reduction in water purchase costs

-13

-24

86

-4

-13

Total

-69

408

2,760

-940

-2,915

Total

72

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Environmental conservation benefits

Consumer Issues

Community
Involvement

Data

Investment and research costs (Unit: million yen)

Furukawa Electric

Furukawa Electric

Environmental impact

Unit

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Investment and research costs

Volume of industrial waste disposal processed*

tons

336

369

532

539

485

Total investment

Energy consumption (crude oil equivalent)

1,000 kℓ

139

139

129

129

122

Of which, environment-related investment

Water consumption

1,000 tons

8,427

7,987

7,871

7,873

7,770

Emissions of volatile organic chemical compounds

tons

203

236

236

223

195

CO₂ emissions

1,000 t-CO₂e

226

213

197

185

133

SOx emissions

tons

1

4

3

2

3

NOx emissions

tons

56

47

73

66

61

Soot emissions

tons

12

3

1

3

2

Total research costs

Unit

Volume of industrial waste disposal processed*

tons

Energy consumption (crude oil equivalent)

FY 2018

FY 2019

FY 2020

FY 2021

FY 2019

FY 2020

FY 2021

FY 2022

14,77518,736

14,195

14,352

571

1,139

985

976

16,408617

9,367

10,455

9,779

10,077

10,970

Domestic group companies
Investment and research costs
Total investment
Of which, environment-related investment
Total research costs

Domestic group companies
Environmental impact

FY 2018

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

6,231

7,004

8,325

7,075

332

234

137

345

3,867
152

2,371

1,974

1,799

2,816

1,694

Furukawa Electric + Domestic group companies

FY 2022

Investment and research costs

1,943

1,106

1,006

864

999

1,000 kℓ

58

52

47

53

48

Water consumption

1,000 tons

2,088

1,878

1,507

1,295

1,350

115

120

79

68

55

Emissions of volatile organic chemical compounds

tons

CO₂ emissions

1,000 t-CO₂e

112

97

90

95

85

SOx emissions

tons

0

0

0

1

3

NOx emissions

tons

20

20

20

5

1

Soot emissions

tons

0

0

0

4

0

Total investment
Of which, environment-related investment
Total research costs

FY 2018

FY 2019

FY 2020

FY 2021

FY 202221,00625,74022,52021,427

903

1,374

1,122

1,321

20,275769

11,73812,429

11,57812,893

12,664

Environmentally-friendly products Cumulative number of registered items and percentage of sales
FY 2018
Furukawa Electric

Furukawa Electric + Domestic group companies
Environmental impact

Unit

Volume of industrial waste disposal processed*

tons

Energy consumption (crude oil equivalent)

FY 2018

FY 2019

FY 2020

FY 2021

FY 2019

FY 2020

FY 2021

FY 2022

Cumulative number of registered items

121

126

130

131

133

Percentage of sales on a one-year basis

64.8

66.4

68.4

74.3

73.7

Furukawa Electric

Cumulative number of registered items

105

137

149

156

150

(consolidated)

Percentage of sales on a one-year basis

40.5

56.2

58.2

61.9

65.0

FY 2022

2,279

1,474

1,538

1,404

1,484

1,000 kℓ

197

191

176

181

169

Water consumption

1,000 tons

10,515

9,865

9,378

9,168

9,120

Emissions of volatile organic chemical compounds

tons

318

356

315

292

250

CO₂ emissions

1,000 t-CO₂e

338

310

287

281

218

SOx emissions

tons

1

4

3

3

6

NOx emissions

tons

76

67

93

71

62

Soot emissions

tons

12

3

2

7

3

* In fiscal 2018, the rule for the Environmentally friendly products was revised (The products that reduced the greenhouse gas (GHG) in the manufacturing
process, etc.) and was reflected in the aggregate calculation.

* Excluding recycled wastes

73Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Greenhouse gas emissions throughout the value chain (Unit: 1,000 t-CO₂e)
FY

FY

FY

FY

FY

2018

2019

2020

2021

2022

FY 2018

197

172

143

128

153

Scope2

646

570

504

512

418

Scope3*

1,689

4,735

4,161

4,480

4,458

Category 1： Purchased goods and services*

-

2,493

1,656

1,829

1,855

Category 2： Capital goods

-

187

158

134

154

Category 3： Fuel- and energy-related activities*

-

112

94

123

110

Category 4： Upstream transportation and distribution*

-

73

126

207

323

Category 5： Waste generated in operations

-

22

21

22

18

Furukawa Electric

Category 6： Business travel*

-

7

6

57

12

Group

Category 7： Employee commuting

-

23

23

24

24

Category 8： Upstream leased assets

-

7

6

7

9

Category 9： Downstream transportation and

-

11

9

141

9

distribution*

-

-

-

17

16

Category 11： Use of sold products*

-

1,720

1,980

1,575

1,587

Category 12： End-of-life treatment of sold products*

-

50

51

57

63

Category 13： Downstream leased assets

-

2

3

4

4

Category 14： Franchises

-

-

-

-

-

Category 15： Investments*

-

28

28

283

274

Total

2,532

5,477

4,808

5,120

SF₆

FY 2022

310

288

281

218

456

400

331

352

316

SF₆ (Furukawa Electric)

49

32

28

7

37

Total of Scope 1 and 2

843

742

648

640

571

FY 2018
Furukawa Electric GroupFY 2019

0.850

FY 2020

0.811

FY 2021

0.798

FY 2022

0.687

0.535

CO₂ emission and Energy intensity related to transportation
FY 2018
Furukawa

CO₂ emissions（1,000 t-CO₂e）
Energy intensity（MJ/t-km)

FY 2019

FY 2020

FY 2021

FY 2022

15.5

14.9

13.7

14.4

13.3

1.68

1.70

1.70

1.74

1.74

Energy consumption (Unit: 1,000 kL)
FY 2018

5,029

FY 2019

FY 2020

FY 2021

FY 2022

Furukawa Electric + domestic group companies

198

191

176

181

169

Overseas Group Companies

226

205

175

191

183

Total

424

396

351

372

352

Renewable energy ratio (Furukawa Electric + domestic group companies) (Unit: GWh)

FY 201949

FY 2021338

FY 2018

148

FY 2020

CO₂ (Overseas Group Companies)

Greenhouse gas emissions Scope1 (Unit: 1,000 t-CO₂e)

CO₂

FY 2019

Greenhouse gas emissions per unit of sales (Unit: t-CO₂e/million yen)

* The calculation method was reviewed in FY2023 and recalculated retroactively for FY2021

FY 2018Data

CO₂ (Furukawa Electric + domestic group companies)

Electric

Category 10： Processing of sold products

DownstreamCommunity
Involvement

Greenhouse gas emissions Scope1, 2 (Unit: 1,000 t-CO₂e)

Scope1

Upstream

Consumer Issues

FY 2020

139
32

FY 2021

115
28

Purchased Electricity（except for renewable energy)

FY 2022121
7

Purchased Electricity（renewable energy)

11637* Greenhouse gases other than CO₂ and SF₆ are not listed because they are far below the unit of 1,000 tons.

74

FY 2019534

FY 2020

499

FY 2021468

FY 2022

480

343

0

0

0

2

99

Private Power Generation (hydroelectric and solar)

109

113

93

97

94

Total Electricity Consumption

643

612

561

579

536

Renewable energy ratio (％)

16.9

18.5

16.6

17.1

36.0

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Renewable energy ratio (Furukawa Electric +domestic group companies＋ overseas group companies) (Unit: GWh)
FY 2018
Purchased Electricity（except for renewable energy)

Total Electricity Consumption
Renewable energy ratio (％)

FY 2020

FY 2021

Raw materials (Unit: 1,000 tons)

FY 2022

FY 2018

1,107

927

Copper

145.6

135.2

124.0

128.6

132.3

25

36

138

Aluminum

7.6

13.7

8.1

14.5

8.1

110

116

95

99

97

1,379

1,292

1,172

1,242

1,162

8.9

11.0

10.2

10.9

20.2

FY 2019

6,806

Brackish surface water/Seawater

FY 2020

6,560

FY 2021

Furukawa Electric +domestic groupcompanies

6,696

Companies

FY 2022

6,655

6,689

0

0

0

0

0

3,511

3,005

2,423

2,432

2,288

Groundwater - non-renewable

0

0

0

0

0

Produced/Entrained water

0

0

0

0

0

3,025

2,969

2,680

3,130

2,900

0

0

0

0

0

External wastewater
Used quarry water collected in the quarry

0

0

0

0

0

13,342

12,534

11,79912,217

11,877FY 2020

FY 2021

2.9

4.1

5.6

3.1

0.0

0.0

0.0

0.0

Plastics

33.7

34.1

32.9

30.9

28.4

Copper

188.5

161.5

119.3

113.7

110.7

Aluminum

56.9

32.9

12.5

14.4

19.4

Steel

9.4

9.6

9.0

12.5

11.9

Glass

3.6

3.4

2.5

2.4

2.1

Plastics

54.1

52.2

48.1

48.8

54.8

FY 2018
Furukawa Electric + domestic group companies

FY 2019
31

FY 202030

FY 202127

FY 2022
27

25

Overseas Group Companies

16

19

18

17

17

Total

47

49

45

43

42

* Total amount of waste generated in Japan includes valuable resources

FY2018FY 2022

821

710

654

677

8,209

7,753

7,451

7,541

7,225

0

0

0

0

0

2,113

2,084

1,995

2,079

2,177

Beneficial / other use
Total

FY 2019934

Subsurface
Sewerage (Off-site water treatment)

2.6
0.0

Total volume of plastic waste generated

FY 2018

Surface Water

Steel
Glass

Total waste generation (Unit: 1,000 tons)

Water discharge (Unit: 1,000 m³)

Ocean

FY 2022

1,052

and lakes

Total

FY 202126

FY 2018

Municipal potable water

FY 2020

1,150

Overseas Group

Groundwater - renewable

FY 2019

13

Water withdrawal (Unit: 1,000 m³)

Fresh surface water, including rainwater, water from wetland, rivers,

Data

1,256

Purchased Electricity（renewable energy)
Private Power Generation (hydroelectric and solar)

FY 2019

Community
Involvement

Consumer Issues

0

0

0

0

0

11,256

10,658

10,156

10,274

10,079Amount of

FY2019FY2020

FY2021

FY2022

-

-

4.0

4.2

3.8

-

-

1.01

1.44

1.23

emissions（Unit:
Furukawa Electric

1,000 tons）
Per unit of net
sales（t/hundred
million yen）

* Targets were set in FY2022 and calculated retroactively for FY2020.

Recycled resource volume (Unit: 1,000 tons)
Water recycling and reuse volume (Unit: 1,000 m³)
FY 2018
FY 2018
Furukawa Electric + domestic group companies
Overseas Group Companies

FY 2019

FY 2020

FY 2021

FY 2022

Furukawa Electric + domestic group companies

1,113

1,111

1,100

1,100

1,101

54

58

59

52

50

Overseas Group Companies

75

FY 2019

FY 2020

FY 2021

FY 2022

26.1

26.6

22.7

23.3

22.6

5.3

6.1

7.1

5.2

12.5

Organizational
Governance

Basic Approach

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Final disposal volume (Unit: 1,000 tons)
FY 2019

FY 2020

FY 2021

0.4

0.4

0.4

0.3

0.3

Overseas Group Companies

11.0

12.8

12.0

11.5

9.4

No.

Hazardous waste generation (Unit: tons)
FY 2018
Furukawa Electric GroupFY 2019

6,455

FY 2020

6,427

FY 20215,112

FY 2022

5,745

4,524

Emissions of volatile organic compounds (VOC) (Unit: tons)
FY 2018

FY 2019

203

FY 2020

236

FY 2021236

FY 2022

223

195

Domestic group companies

115

120

79

68

55

Total

318

356

315

291

250

NOx and SOx emissions (Unit: tons)
FY 2018

domestic groupcompanies

Data

FY 2019

FY 2020

Volumecontained in
products/
disappearedbycombustion

FY 2022

Furukawa Electric + domestic group companies

Furukawa Electric +Community
Involvement

PRTR substances list (Furukawa Electric and domestic group companies) (Unit: tons)
FY 2018

Furukawa ElectricConsumer Issues

FY 2021

FY 2022

NOx

76

67

93

71

62

SOx

1

4

3

3

6

Substance

Volume handled

Volume released

Volumetransferred

1

Zinc and its compounds

4.3

0.0

0.5

3.9

31

Antimony and its compounds

380.1

0.2

56.6

323.4

53

Ethylbenzene

83.2

0.9

34.7

47.7

71

Ferric chlorides

9.8

0.0

0.0

9.8

75

Cadmium and its compounds

113.4

0.0

15.8

97.6

140.4

1.6

36.1

102.7

2.0

0.0

0.7

1.3

192.4

0.1

36.5

155.8

80

Xylene82

Silver and its water-soluble compounds

86

Cresol87

Chromium and trivalent chromium compounds

9.6

0.0

0.0

9.6

88

Hexavalent chromium compounds

4.6

0.0

3.6

1.0

132

Cobalt and its compounds

4.4

0.0

0.4

4.0

144

Inorganic cyanide compounds (Excluding complex salt
and cyanate)

2.2

0.2

0.6

1.3

213

N,N-dimethylacetamide

272

Copper salts (water-soluble)296

1,2,4-trimethylbenzene

300

Toluene

304
305

483.8

0.1

11.8

471.9

5,016.3

0.1

18.8

4,997.4

9.0

0.1

0.0

8.9

188.0

70.3

48.6

69.0

Lead

8,473.7

0.1

0.3

8,473.3

Lead compounds

28,861.8

0.1

4.4

28,857.3

308

Nickel

398.3

0.0

5.0

393.2

309

Nickel compounds

88.6

0.0

14.4

74.2

332

Arsenic and its inorganic compounds

5.1

0.0

0.0

5.1

333

Hydrazine

6.1

0.0

0.0

6.1

349

Phenol

149.5

0.1

25.7

123.7

355

Bis (2-ethylhexyl) phthalate

110.6

0.0

0.0

110.6

374

Hydrogen fluoride and its water-soluble compounds

18.4

0.0

1.9

16.5

384

N-propyl bromide

2.0

1.7

0.0

0.3

405

Boron and its compounds

6.2

0.0

0.6

5.5

412

Manganese and its compounds

5.9

0.0

0.0

5.9

413

Phthalic anhydride

5.2

0.0

0.0

5.2

438

Methylnaphthalene

Total

15.2

0.0

0.0

15.2

44,790.1

75.6

317.0

44,397.4* This list is target for substances with a transaction volume of 1 tons or more (0.5 tons or more for Class 1 Designated Chemical Substances) for the entire
Group.

76

Organizational
Governance

Basic ApproachSocialHuman Rights

Labour Practices

Fair Operating
Practices

Environment

Furukawa Electric
FY 2018

FemaleTotal

Number of people

FY 2019

3,465

FY 2020

3,548

FY 2021

3,599

FY 2022

3,798

Percentage (%)

91

90

88

88

88

Number of people

351

377

485

505

530

Percentage (%)
Number of people

9.2

10

12

12

12

3,816

3,925

4,084

4,303

4,353

Percentage of labor union membership (Unit: %)FY 2018* Workers with employment contracts (including non-permanent employees and assigned employees) are covered.

Number of employees in managerial positions

FemaleTotal

Number of people

FY 2019

929

FY 2020

908

FY 2021931

FY 2022

1,013

Female
Total

97

97

97

96

95

Number of people

31

32

33

40

52

Percentage (%)

3

3

3

4

4.8

960

940

964

1,053

1,076

Number of people

99.3

99.1

Female

99.4

99.3

97.0

97.0

96.9

Total

99.1

99.1

99.0

98.9

98.8

FY 2022
Furukawa Electric

FY 2019

FY 2020

FY 2021

471

458

467

463

490

Percentage（％）

93

91

90

89

88

Number of people

36

44

53

59

67

Percentage（％）

7.1

8.8

10

11

12

Number of people

507

502

520

522

557

FY 2018
4.04

Furukawa Electric

FY 2019
4.30

FY 2020
4.59

FY 2021
3.69

FY 2022
4.45

Employment rate of people with disabilities (Unit: %)

2.12

44.1

Female

40.5

Total

43.7

FY2018* Including rehiring, part-timers and fixed-term employees

2018

Male

Average years of service（Unit: years）

FY 2022

Percentage of non-regular employees* (Unit: %)Furukawa Electric

FY 2022

99.0* We began disclosing in FY2022.

Number of people

Furukawa Electric

FY 2021

97.6

Average age（Unit: years）

Percentage (%)

FY 2018

Furukawa Electric

FY 2020

97.4

1,024

Number of candidates for managerial positions (equivalent of chiefs)

Male

FY 2019

Male* Including those exempted as defined in the collective agreement
FY 2018

Furukawa Electric

0.5* We began disclosing in FY2022.

3,823

Furukawa Electric

Male

Data

FY 2022

Number of employees

Furukawa ElectricCommunity
Involvement

Share of non-Japanese employees（Unit: ％）revised in August 2023

Male

Consumer Issues

2019
2.14

2020
2.09

2021
2.32

2022
2.35

* As of June 1 of each year

77

FY2019FY2020

FY2021

FY2022

Male

19.7

20.8

20.2

19.7

20.3

Female

18.4

18.2

17.2

16.5

16.8

Total

19.6

19.4

18.8

19.3

19.9

Organizational
Governance

Basic Approach

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Average wages by employment category

Consumer Issues

Male/female percentage of new graduates

Furukawa Electric

7,015

All

Average of female workers (Unit: thousand yen)

4,850

employees

Average of all workers (Unit: thousand yen)

6,750

Female/ male (Unit:%)

69.1

Average of male workers (Unit: thousand yen)

7,110

RegularAverage of female workers (Unit: thousand yen)

4,943

employees

Average of all workers (Unit: thousand yen)

6,845

Female/ male (Unit:%)

69.5

Average of male workers (Unit: thousand yen)

4,964

Non-regular

Average of female workers (Unit: thousand yen)

2,912

employees

Average of all workers (Unit: thousand yen)

4,704

Female/ male (Unit:%)58.7

FY 2018
Furukawa Electric

Furukawa Electric

Career track and clerical

80

73

positionsFemale

30

28

28

20

27

86

95

79

Career-track

Female

31

31

33

24

29

and clerical

Total

104

111

119

119

108

Non-

FY 2022

27

30

41.7

Excluding manufacturing workers

18

26

23

36

45.7

FY 2019

FY 2020

FY 2021

FY 2022

Male

1.2

1.8

1.6

2.6

3.4

Female

1.6

0.8

1.5

4.8

4.1

Total

1.2

1.7

1.6

2.8

3.5

0

0

0

0

1

*1 The calculation method has changed since FY2021;
Number of employees who resigned/retired during the fiscal year (A) ÷ Number of employees enrolled during the fiscal year.
(Before FY 2020； (A) ÷ number of employees enrolled on the first day of the fiscal year.)*2 The data of FY2021 and FY2022 includes the impact of using the Job change Assistance Program before the abolition of it due to the raising of theretirement age.

Japanese

worker

Male

46

49

53

52

39

Female

0

1

2

1

4

Total

46

50

55

53

43

Male
Managers,
career-track,

Female

19
4

34
4

31
4

59
8

Overtime work hours per person (Unit: hours per month)
FY 2018

74

Furukawa Electric

17and clerical

Total

23

38

35

67

91

positions

Non-

-

-

-

-

4

Male

71

43

30

8

17

Female

0

0

0

0

0

hires

Japanese
Manufacturing
workerTotal
Male
Male（％）Total

FY 2021

34

FY 202280

positions

FY 2020

39

Turnover rate (Unit: %)73

Manufacturing

Mid-career

FY 2019

Including manufacturing workers* New staff hires refer to new graduates and mid-career hires.

Male

graduates

Furukawa Electric

FY 2021

FY 202272

FY 2018

Number of new hires（Unit: persons）
FY 2020

FY 202172

FY 2018

FY 2019

FY 2020

70

Ratio of mid-career hires to total new staff hires*（Unit：％）

Furukawa ElectricNew

FY 2019

Male* We began disclosing in FY2022.

FY 2018

Data（Unit：%）FY2022Average of male workers (Unit: thousand yen)Community
Involvement

FY 2020

FY 2021

FY 2022

27.2

26.0

20.1

27.8

24.8

Indirect work

19.3

20.9

22.9

23.9

23.2

Total

23.2

23.2

21.2

25.2

23.8

Use of regular annual leave (Unit: days)

71
209

43
206

30
200

8
214

FY 2018

17
Furukawa Electric

209

85.7

85.1

83.7

86.6

80.7

35

36

39

33

50

Female（%)

14.3

14.9

16.3

13.4

19.3

Total

244

242

239

247

259

FemaleFY 2019

Direct work

78

FY 2019

FY 2020

FY 2021

FY 2022

Days carried over per person (A)

18.3

21.5

20.7

21.2

Days granted per person (B)

24.0

23.9

23.8

23.7

21.1
23.6

Days acquired per person (C)

15.2

15.4

13.1

14.0

15.6

Acquisition rate (C÷B) (%)

63.2

64.4

55.2

59.1

66.0

Organizational
Governance

Basic Approach

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Ratio of childcare leave taken

Consumer Issues

Furukawa Electric

FemaleData

Number of employees taking volunteer leave (Unit: persons)
FY 2022

Male

Community
Involvement

Number of persons who had newborns （A）(Unit: persons)75

Number of persons who took childcare leave（B） (Unit: persons)54

Ratio of childcare leave taken（B÷A） (Unit: %)72

Average number of days of leave（Unit: days）

36

Ratio of employees returning to work(Unit: %)98

Number of persons who had newborns （A）(Unit: persons)

10

Number of persons who took childcare leave（B） (Unit: persons)29

Ratio of childcare leave taken（B÷A） (Unit: %)FY 2018
Furukawa Electric

Ratio of employees returning to work(Unit: %)FY 2020

FY 2021

FY 2022

Male

0

1

0

0

0

Female

0

0

0

0

0

Total

0

1

0

0

0

Number of employees taking refreshment leave (Unit: persons)
FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Male

178

161

124

124

354

Female

25

17

26

11

12

100

Total

203

178

150

135

132

Employees who have reached 25 years of

190

179

119

98

99

290

Average number of days of leave（Unit: days）

FY 2019

Furukawa Electric* The format has been changed since FY2022.

120

service* “Refreshment leave” is a system that allows employees with 25 years of service to take 14 or more days of leave. (Available for taking within 2 years)

Ratio of childcare leave taken (Old format) (Unit: persons)
Percentage of employees subject to HR evaluation (Unit: %)FY 2018

Furukawa Electric

FY 2019

FY 2020

FY 2021

FY 2022

Male

21

25

31

40

54

Ratio of employees returning to work (%)

100

100

100

100

98

Female

10

10

12

27

29

Ratio of employees returning to work (%)

100

90

100

96

100

Total

31

35

43

67

83

Ratio of employees returning to work (%)

100

97

100

99

99

FY 2018

Furukawa Electric

Before FY2020, it was the number of employees who newly took childcare leave during the fiscal year (not including those who continued to take childcare
leave from the previous fiscal year).

Number of employees taking nursing care leave (Unit: persons)

Furukawa Electric

FY 2019

FY 2020

FY 2021

FY 20221

0

3

Ratio of employees returning to work (%)

−

100

−

100

-

Female

0

1

0

0

0

0

Ratio of employees returning to work (%)

−

100

−

−

-

Total

0

2

0

3

0

Ratio of employees returning to work (%)

−

100

−

100

-

FY 2022

54

66

66

Absolute and relative evaluations based on

100

100

100

100

100

FY 2018
Furukawa Electric0

FY 2021

39

Training costs per employee (Unit: 1,000 yen)

who continued to take childcare leave from the previous fiscal year).

FY 2018

FY 2020

41

ranking* The scope of data was changed from FY2021. The number of employees who took at least one day of childcare leave during the fiscal year (including thoseMale

FY 2019

Target control system* Number of employees who took at least one day of nursing care leave (not including those who continued to take leave from the previous year).

79

114

FY 2019

FY 2020
72

FY 202172

FY 202271

70

Organizational
Governance

Basic Approach

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Number of employees trained by positions (Unit: persons)LectureExecutive training
Training for section
managers
Training for key
employees
New employee
training

TargetNewly appointed officers (full-time, parttime)*1

New section managers and managers*2 *3
Newly appointed managers and specialist

FY 2019

FY 2021

FY 2022

FY 2018

6

9

6

7

7

69

93

88

63

263*5

65

*4

85

52

53

employees*2

FY 2020

104

109

0

108

119

Furukawa Electric

FY 2018

107

Furukawa Electric

Seminar inJapanand group companies
in Japan

Seminar inOverseas groupoverseascompanies

Subject

FY 2019541

FY 2020

654

FY 2021709

program*2

Furukawa Electric,

12

29

47

（Philippines,（Vietnam）（Singapore）（Malaysia）（Mexico）

Competition law

Bribery regulations

FY 2021

FY 2022

7,391

6,626

9,684

Total time (Unit: Hour)

3,584

2,929

2,803

1,944

3,277

FY 2019

FY 2020

FY 2021

FY 2022

Furukawa Electric

305

302

71

76

Domestic group companies

101

95

12

131

12

Total

406

397

83

207

106

FY 2018

Tianjin,

Furukawa Electric

Shenzhen
and

94

0

0

0

3,656

771

0

0

0

3,637

FY 2018

FY 2019557

FY 2020
1,176

FY 2021
1,103

FY 2022
1,265

Number of employees trained in security trade control（Unit: persons）
FY20181,125

FY 202180

FY 202260

80

Frequency rate of accidents resulting in time off work

FY2019997

FY20201,255

FY2021779

FY2022323

80

FY 2019

FY 2020

FY 2021

FY 2022

Furukawa Electric

0.48

0.59

0.11

0.32

0.32

Domestic group companies

0.56

0.32

0.21

0.25

0.38

* Frequency rate = (Number of casualties / Total actual work hours) x 1,000,000532

FY 202083*2 The target is business sites with manufacturing divisions. In FY2022, one site obtained certification, which resulted in an increase.

Number of employees trained in the Subcontract Act（Unit: persons）
FY 2018

FY 201983*1 OSHMS; Occupational Safety and Health Management System513*2 E-learning seminars will be held every other year from FY2022 onward.

Furukawa Electric + Domestic group companies

FY 2020

6,271*1 In order to avoid duplication of contents, no seminars in Japan have been held in years of e-learning implementation since FY 2022.

Furukawa Electric + Domestic group companies

FY 2019

7,109

Percentage of the Works certified by OSHMS (Unit: %)44

regulations

Japan and overseas

1,858

*1

128

compliance and bribery

compliance

1,484

environment, quality, cost, production, and facilities)," "human skills," and "technical skills".

No seminarofferedbribery regulationsgroup companies in

1,490

FY 2022* GENBA-RYOKU reinforcement training is a training program for technical employees and consists of a curriculum focusing on the "six key missions (safety,

FY 2022

833

Shanghai）
E-learning

1,890

FY 2021

Total number of people

FY 2018

FY 2018

Compliance andCompetition law

FY 2020

Number of employees receiving GENBA-RYOKU reinforcement training* (Unit: persons)

Number of employees trained in competition law compliance and bribery regulations （Unit: persons）

TargetFY 2019

1,345*3 Human rights education included in the lecture*4 It was postponed for one year to review the training, and held all at once in 2021.
*5 Total number of employees who took each program

Furukawa Electric

Data

Number of employees receiving health training (Unit: persons)*1 Furukawa Electric*2 Furukawa Electric and employees dispatched to other companies

Category

Community
Involvement

Number of employees receiving safety training (Unit: total number of people per year)

FY 2018

New employees*2 *3

Consumer Issues

Organizational
Governance

Basic Approach

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Number of deaths among regular employees

Governance
FY 2018

Furukawa Electric

FY 2019
0

FY 2020

FY 202100

FY 20220Community
Involvement

Consumer Issues

updated at August 2023

Number of directors (Units: Person)0

FY 2018* Non-work-related injury or illness are not included

Number of deaths among non-regular employees

Furukawa Electric
FY 2018

Furukawa Electric

FY 2019
0

FY 2020

FY 202100

FY 20220Data

0FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

Directors

12

12

12

11

11

11

Outside directors

5

5

5

5

5

5

Independent directors

3

5

5

5

5

5

Female directors

0

1

1

1

1

1

* As of the end of each year, however, as of June 23, for fiscal 2023

* Contractors not included

Number of Audit & Supervisory Board members (Units: Person)
Ratio of complaints regarding products and services
FY 2018
FY 2018

FY 2019

FY 2020

FY 2021

FY 2019

Audit & Supervisory Board

FY 2022

Furukawa Electric*1

0.63

0.58

0.41

0.38

-

Expanded scope *2

-

-

-

1.00

0.83

6

FY 2020
6FY 2021
6

FY 20226

FY 2023
6

6members
Furukawa Electric*1 Ratio in the case where FY2015 results are taken as 1.00

Outside members

3

3

3

3

3

3

Independent members

3

3

3

3

3

3

Female members

0

0

1

1

1

1

*2 Ratio in the case where FY2021 results are taken as 1.00 (calculated retroactively for FY2021)* As of the end of each year, however, as of June 23 for fiscal 2023.

Number of suppliers working together for environmental and social aspects (Unit: companies)
Number of Executive officers (Units: Person)
FY 2018
Number of evaluated suppliers（Main

FY 2019

213

FY 2020

199

FY 2021198

FY 2022248

FY 2018260

Suppliers)
Furukawa Electric

Number of suppliers attended at the

57

59

−*

57

58

Furukawa ElectricPartners Meeting
Number of suppliers tried CO₂ reduction by

20

24

25

25

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

Executive officers

26

25

27

27

25

Female executive officers

1

1

1

2

1

23
1

Foreign executive officers

4

3

3

3

2

2

25

Procurement logistics* As of April 1st of each year

* From the perspective of preventing new coronavirus infections, we have canceled the Partners Meeting.

Number of Senior Fellows (Units: Person)
FY 2018
Furukawa Electric

Senior Fellows* As of April 1st of each year

81

FY 2019
2

FY 2020
2

FY 2021
1

FY 20221

FY 20233

3

Organizational
Governance

Basic Approach

OthersHuman Rights

Labour Practices

Fair Operating
Practices

Environment

Revised August 2023

Consumer Issues

Community
Involvement

Data

External Evaluation and Certification

Sales by region and overseas sales ratio （Unit: million yen）
FY 2018

FY 2020

FY 2021

FY 2022SRI Index, ESG Index495,658

435,195

461,450

517,358

China

94,00675,05982,777

100,457

104,326

Asia (except Japan,China)

213,260

183,033

141,029

190,877

224,931

Furukawa Electric Group has been selected as a constituent of the FTSE4Good Index

North and Central America

72,67778,302

78,17991,716

127,793

South America,Europe and90,364

82,386

74,41885,99491,915

Series and the FTSE Blossom Japan Index Series. (As of July 2023)
The FTSE4Good Index Series is a stock index consisting of stocks demonstrating strong
ESG (Environmental, Social and Governance) practices as defined by FTSE Russell. The
FTSE Blossom Japan Index Series, which have also been developed by FTSE Russell,reflects the performance of Japanese companies that demonstrate strong environmental,social and governance (ESG) practices. The FTSE Blossom Japan Index Series are an
ESG index used by the Government Pension Investment Fund (GPIF). It is one of theleading indices for ESG investment.

Japan

Sales by region

FY 2019

521,281

FTSE4Good Index Series / FTSE Blossom Japan Index Series

othersConsolidated sales

991,590

914,439

811,600

930,496

1,066,326

Overseas sales

470,309418,781

376,403

469,046548,967

47.4

45.8

46.4

50.4

51.5

Overseas sales ratio (%)* Sales are classified into countries or regions based on the location of customers

FTSE4Good Index Series

Number of patent rights （Unit: patents）

FTSE Blossom Japan Index Series
FY 2018

Furukawa Electric
Total

FY 2019

FY 2020

FY 2021

FY 2022

Domestic patents

4,605

4,523

4,388

4,423

4,364

Overseas patents

2,712

2,910

2,976

3,160

3,225

7,317

7,433

7,367

7,583

7,589

2019

* The number of domestic and overseas patents held by Furukawa Electric includes the results of regularly reviewing owned patents.

2020

2021

2022

2023

FTSE4Good Index Series●First time

●

●

●

FTSE Blossom Japan Index●
First time

●

●

●

-

-

●
First time●

FTSE Blossom Japan Sector Relative
Index

-

MCSI Japan Empowering Women Index (WIN)Furukawa Electric Group has been selected as a constituent of the MSCI Japan
Empowering Women Index (WIN). (As of July 2023)
The index of MSCI focuses on the S (social) in ESG and is an ESG index composed ofJapanese stocks demonstrating good gender diversity practices. It is selected as an index
for ESG investment by the Government Pension Investment Fund (GPIF).
THE INCLUSION OF Furukawa Electric Co., Ltd. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICEMARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF Furukawa
Electric Co., Ltd. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND
THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

MSCI Japan Empowering Women
Index (WIN)

82

2019

2020

2021

2022

2023

●

●

●

●

●

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

S&P/JPX Carbon Efficient Index

Community
Involvement

Data

ESG evaluation, certification

Furukawa Electric is selected as a constituent of the S&P/JPX Carbon Efficient Index. The Company's

CDP

decile classification in the capital goods category, which is in the mid impact group, is 8. The carbon
disclosure status is "Disclosed." (As of June 2023)

Furukawa Electric Group has responded to the CDP questionnaire about climate change since fiscal 2008 and has

The index of the S&P Dow Jones Indices focuses on the E (environmental) in ESG. It is selected as an

responded to the questionnaire about water security since fiscal 2013. Below are the respective assessments of CDP

index for ESG investment by the Government Pension Investment Fund (GPIF).

S&P/JPX Carbon Efficient Index

Consumer Issues

Climate Change, Water Security surveys and CDP Supplier Engagement Rating (SER).

2019

2020

2021

2022

2023

●

●

●

●

●

2018

2019

2020

2021

2022

Climate change

B-

B

A

A

A-

Water security

B-

B

B

B

B

Supply chain

A-

A

A

A

A

SOMPO Sustainability Index
Furukawa Electric is selected as a constituent of the SOMPO Sustainability Index of
SOMPO Asset Management Co., Ltd. (As of June 2023)

SBT (Science Based Targets)
Furukawa Electric Group obtained SBT 1.5℃ certification from SBTi (Science Based Targets
Initiative) for the company’s greenhouse gas reduction targets in August 2023.
Please see the press release here.
Morningstar Japan ex-REIT Gender Diversity Tilt Index（GenDi J）
We are selected as a constituent of the Morningstar Japan ex-REIT Gender Diversity Tilt Index (GenDi J) as of December 2022.
Built with the data and scoring methodology of Equileap, the index is designed to emphasize companies in the Japanese market that have
"Zero-Emissions Challenge Company" of the Ministry of Economy, Trade and Industry

strong gender diversity policies embedded in their corporate culture and that ensure equal opportunities to employees, irrespective of theirgender. The constituents are categorized into five groups, with us being classified in Group 2, the second from the top.

Furukawa Electric has been selected by the Ministry of Economy, Trade and Industry (METI)The General Pension Investment Fund (GPIF) has newly adopted GenDi J as an ESG index for domestic stocks since March 2023.

as a "Zero-Emissions Challenge Company" as a company that boldly challenges innovation
for the realization of a decarbonized society. The announcement was made at the TCFD

MorningstarJapan ex-REIT Gender Diversity Tilt Index

Summit 2020 held on October 9, 2020.

83Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

The Nadeshiko Brand of the Ministry of Economy, Trade and Industry

Consumer Issues

Community
Involvement

Data

Health Management Brand of the Ministry of Economy, Trade and Industry

In 2018, 2020, and 2023, Furukawa Electric was selected as a Nadeshiko Brand in non-

Furukawa Electric was selected as a Health Management Brand in the non-ferrous metal industry inferrous metal as an excellent listed company in terms of the empowerment of women. The

2023 as a listed company that strategically promotes employees' health management in relation to theNadeshiko Brand has been created jointly by the Ministry of Economy, Trade and Industry

management of the company. The Health Management Brand is created jointly by the Ministry ofand the Tokyo Stock Exchange to show excellent listed companies in terms of the

Economy, Trade and Industry and the Tokyo Stock Exchange to showcase excellent listed companies

empowerment of women as companies appealing to investors that emphasize an increasein terms of health management that are appealing to investors that emphasize an increase inin corporate value over the medium to long terms.

corporate value in the medium to long term.

2019
The Nadeshiko

2020

2021

2022

2023

●

●
2019

Certified as an Excellent Eruboshi Company under the Female Participation Promotion Act

Health Management

2020

2021

2022

●

2023

●

First time

Furukawa Electric has developed a plan of action for general employers under the Act on the Promotion of
Female Participation and Career Advancement in the Workplace, which came into force in April 2016 andhas achieved Eruboshi (L star; L stands for lady, labor and laudable) third stage (highest rating)

Health & Productivity Management Organization of the Ministry of Economy, Trade and Industry

certification as an excellent company in terms of the empowerment of women.

Furukawa Electric was certified by the Ministry of Economy, Trade and Industry as one of the
Health & Productivity Management Organizations.

Kurumin Certification from the Ministry of Health, Labour and Welfare Achieved as a Company Cultivating the Next
Generation
Furukawa Electric has received Kurumin certification under the Act on Advancement of Measures to
Support Raising Next-Generation Children.
Health & Productivity Management
Organization, White 500

2019

2020

2021

2022

2023

○

○

●

●

○

* ● :Health & Productivity Management Organization* ○ :White 500 (Top 500 of Health & Productivity Management Organization)

Diversity & Inclusion "D&I Award 2022"
For the second year in a row, Furukawa Electric has received the "Best Workplace"
Accreditation , which is the highest certification rank, in the D&I Award 2022, which
recognizes companies that lead Diversity and Inclusion (D&I) in Japan.

84

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Clarivate Top 100 Global Innovators

Consumer Issues

Community
Involvement

Data

NIKKEI SDGs management, Smart Work management survey

Furukawa Electric was included in the list of Clarivate Top 100 Global Innovators 2021 selected by

The Company was received “4.0 stars” in the 5th NIKKEI SDGs management survey. And, the Company

Clarivate Analytics. The Company was listed for the fourth consecutive period out of six total listings (2014,

was rated at “A++” in SDGs Strategy and Economic Value, “A++”in Social Value , “S” in Environmental

2015, 2017, 2018-2019,2020 and 2021).

Value , and “S” in Governance.

The Company was received “3.5 stars” in the 7th NIKKEI Smart Work management survey.
And, the Company was rated at “A++” in Human Resources Utilization , “S” in Innovation
Capability , and “A+” in Market Development Capability.

Clarivate Top 100
Global Innovators

2019

2020

2021

●

●

●

2022

Awards2023

The following is a summary of awards and recognitions from local governments, academic societies, customers, etc. from FY2022.
Click here for a list

Digital Transformation Certification of Ministry of Economy, Trade and Industry

May 30, 2023

Furukawa Electric was certified as "DX-Ready" under DX Recognition Program of

October 31, 2022

Ministry of Economy, Trade and Industry in June, 2023.

Toyo Keizai CSR Ranking
Toyo Keizai CSR Ranking is based on the evaluation of CSR and financial performance in terms of theuse of human resources, the environment, governance and sociality, profitability, safety andscale. In 2023, We were ranked 156th.
(Source: Toyo Keizai Inc. 2023 CSR Ranking (17th) Report)

85

Furukawa Electric was Awarded the Invention Prize in the 2023 Nationwide Commendation for Invention- Development of cable jacketing that contributes to more efficient wiring work and reduced man-hours –Furukawa Electric CPO ELS Wins the Best Paper Award from ICSJ2022

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

The Sustainable Development Goals (SDGs)

Participation in Initiatives“Furukawa Electric Group Vision 2030” was formulated to provide clarity for the group’sbusiness domains based on the “Sustainable Development Goals (SDGs)”.
The Sustainable Development Goals (SDGs), set in 2015 by the United Nations Summit
and intended to be achieved by the year 2030, are a collection of 17 global goals and 169

Participation in Initiatives

targets.
United Nations Global Compact

Efforts for the SDGs

Furukawa Electric has been involved the United Nations Global Compact since February 24, 2020.
The Group believes that respecting and fulfilling the ten principles of the United Nations Global
Compact will lead to the strengthening of the management base in order to continue sustainablegrowth as a global company.

Task Force on Climate related Financial Disclosure TCFD
Furukawa Electric has agreed with the recommendations of the Task Force on Climate

The Ten Principles of the UN Global Compact

related Financial Disclosures (TCFD) on January, 2020. At the same time, Furukawa
Electric has been involved the TCFD Consortium.

Human Rights
Principle 1: Businesses should support and respect the protection of internationallyNews Releaseproclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.
LabourPrinciple 3: Businesses should uphold the freedom of association and the effective

The Ministry of the Environment, Reduction of GHG emissions ”COOL CHOICE”

recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;

Furukawa Electric supports COOL CHOICE, an initiative of the Ministry of the Environment

Principle 5: the effective abolition of child labour; andto encourage wise choices including buying products, using services and choosing

Principle 6: the elimination of discrimination in respect of employment and occupation.

lifestyles that contribute to a carbon-free society.

Environment
Principle 7: Businesses should support a precautionary approach to environmental
challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly

The Ministry of Economy, Trade and Industry "GX League"

technologies.
Furukawa Electric has participated in the "GX (Green Transformation) League" announced
by the Ministry of Economy, Trade and Industry (METI) of Japan in April 2023.

Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including
extortion and bribery.

86

Data

Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Japan Clean Ocean Material Alliance

Consumer Issues

Main participating organizations and Roles

Furukawa Electric has been a member of the Japan Clean Ocean Material Alliance (CLOMA),

Corporate members of Keidanren (Japan Business Federation)

which is a platform that helps a wide variety of cross-sectoral stakeholders to collaborate andChairman of the Japan Copper and Brass Association

accelerate innovation to overcome the marine plastic waste issue. The Group has engaged in the

Director of the Japanese Electric Wire & Cable Makers' Association

recycling of plastic waste to reduce resource use, to protect ecosystems by preventing
environmental pollution, and to solve climate change by reducing greenhouse gas emissions.

WIPO GREEN
Furukawa Electric has participated as a partner company in WIPO GREEN, a platform fortechnology exchange on environmental conservation operated by the World Intellectual
Property Organization (WIPO) of the United Nations. The plastic recycling technology that
the Company has registered with WIPO GREEN will contribute to waste reduction. By
promoting technology exchange through the use of intellectual property, the Company willcontribute to the spread of environment-related technologies.
News Release

National Federation of UNESCO Associations in Japan
Furukawa Electric is a supporting member of the National Federation of UNESCO Associations inJapan, which works in Japan and overseas primarily in the field of education.

Partnerships with Local Communities to Achieve SDGs
The Company promotes the following initiatives
Registration with the Japanese Cabinet Office's "Public-Private Partnership Platform for Local SDGs
Registration as the Tochigi Prefecture SDGs Promotion Company
Registration as the Kanagawa Prefecture SDGs Partner
Registration as the Mie Prefecture SDGs Promotion Partner

87

Community
Involvement

DataBasic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Consumer Issues

Community
Involvement

Data

61 Overseas group companies

Reference data

Occupational Health and Safety - Scope of the frequency rate of accidents resulting in time off work
(As of March 31, 2023)
28 Domestic group companies
NTEC Ltd.

Okano Electric Wire Co., Ltd.

KANZACC Co., Ltd.

Shoden Seiwa Co., Ltd.

Foam Kasei Co., Ltd.

Furukawa Automotive Systems Inc.

Furukawa Elecom Co., Ltd.

Furukawa Industrial Plastics Co., Ltd.
Furukawa Research Inc.

Shenyang Furukawa Cable Co., Ltd.

Suzhou Furukawa Power Optic Cable Co., Ltd.

P.T. Tembaga Mulia Semanan Tbk.

Furukawa Electric LatAm S.A.

Furukawa Industrial Optoelectronica Ltda.

Furukawa Industrial S.A. Sucursal Argentina

Furukawa Industrial Colombia SAS

OFS Fitel, LLC

OFS FITEL Deutschland GmbHOFS Fitel Denmark Aps

Furukawa Electric Morocco SARLOFS RUS Fiber Optic Cable Company

Thai Fiber Optics Co., Ltd.

P. T. Furukawa Optical Solutions Indonesia

Furukawa FITEL (Thailand) Co., Ltd.

Furukawa FITEL Optical Products (Shanghai) Co., Ltd.

Thai Furukawa Unicomm Engineering Co., Ltd.

Trocellen GmbH

Co., Ltd.

Polifoam Plastic Processing Co., Ltd.

Trocellen Italy S.p.A.

Furukawa Precision Engineering Co., Ltd.

Furukawa Techno Material Co., Ltd.

Trocellen S.E.A. Sdn Bhd

Taiwan Furukawa Magnet Wire Co., Ltd.

Furukawa Electric Advanced Engineering Co.,

Furukawa Electric Ecotec Co., Ltd.

Furukawa AVC Electronics (Suzhou) Co., Ltd.

Furukawa Sangyo Kaisha, Ltd.

Furukawa Communication and BroadcastingLtd.

FURUKAWA ELECTRIC THERMAL MANAGEMENT SOLUTIONS AND
PRODUCTS LAGUNA, INC.

Furukawa Electric Industrial Cable Co., Ltd.

Furukawa Electric Power Systems Co., Ltd.

The Furukawa Battery Co., Ltd.

Taiwan Furukawa Electric Co., Ltd.

Furukawa Automotive Systems (Thailand) Co., Ltd.

Furukawa Nikko Power Generation Inc.

Furukawa New Leaf Co., Ltd.

Furukawa Network Solution Corp.

Furukawa Wiring Systems Mexico, S.A. de C.V.

P.T. Furukawa Automotive Systems Indonesia

Furukawa FITEL Optical Device Co., Ltd.

Furukawa Magnet Wire Co., Ltd.

Furukawa UACJ Memory Disk Co., Ltd.

Furukawa Electric (Shenzhen) Co., Ltd.

Furukawa Automotive Systems Vietnam Inc.

Furukawa Electric Business & Life Support Inc.

Miharu Communications Inc.

Myojodenki Co., Ltd.

Furukawa Electric Autoparts Philippines Inc.

Permintex Furukawa Autoparts Malaysia Sdn. Bhd.

Furukawa Electric Autoparts Central Europe, s.r.o

Furukawa Automotive Parts (Vietnam) Inc.

Furukawa Automotive Parts (Dong Guan) Ltd.

Furukawa Auto Parts (Huizhou) Co. Ltd.

Riken Electric Wire Co., Ltd.

Environmental Management - Scope of the environmental management (As of March 31, 2023)
31 Domestic group companies

Furukawa Mexico S.A. De C.V.

American Furukawa, Inc.

Tianjin Jinhe Electric Engineering Co., Ltd.

Furukawa Automotive Systems Lima Philippines, Inc.

Wuhan Furukawa Automotive Systems Co., Ltd.

Chongqing Changhua Automobile Harness Co., Ltd.

NTEC Ltd.

Okano Electric Wire Co., Ltd.

KANZACC Co., Ltd.

Furukawa Automotive Systems Mexico S.A. de C.V.

Furukawa Minda Electric Pvt. Ltd.

Shoden Seiwa Co., Ltd.

FITEC Corp.

Furukawa Automotive Systems Inc.

Furukawa Automotive Systems Vĩnh Long Việt Nam

Furukawa Automotive Systems Management (Shanghai) Co., Ltd

Furukawa Sangyo Kaisha, Ltd.

Furukawa Communication and Broadcasting

Furukawa Industrial Plastics Co., Ltd.

Furukawa Systemas Automotivos do Brasil Ltda.

Furukawa Automotive Systems Design Phils. INC.

Furukawa Automotive Systems Asia Pacific Co.,ltd.

Furukawa Precision (Thailand) Co., Ltd.

Furukawa Precision Engineering Co., Ltd.

Furukawa Techno Material Co., Ltd.

Furukawa Electric Copper Foil Taiwan Co., Ltd.

Furukawa Circuit Foil Taiwan Corporation

Siam Furukawa Co., Ltd.

PT. FURUKAWA INDOMOBIL BATTERY MANUFACTURING

Co., Ltd.
Furukawa Electric Advanced Engineering Co.,Ltd.
Furukawa Electric Ecotec Co., Ltd.
The Furukawa Battery Co., Ltd.
The Furukawa Finance and Business Support

Furukawa Electric Industrial Cable Co., Ltd.
Furukawa Logistics Corp.

＊

Furukawa Electric Power Systems Co., Ltd.
Furukawa Magnet Wire Co., Ltd.

Miharu Communications Inc.

Riken Electric Wire Co., Ltd.

Furukawa Network Solution Corp.

Furukawa New Leaf Co., Ltd.

Furukawa Research Inc.

Foam Kasei Co., Ltd.

Furukawa Nikko Power Generation Inc.

Furukawa Elecom Co., Ltd.

Myojodenki Co., Ltd.

Furukawa FITEL Optical Device Co., Ltd.

Essex Furukawa Magnet Wire Japan Co., Ltd.

Co., Ltd.

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.

＊NTT DevIces Optech Corporation＊* Locations located at the offices of Furukawa Electric and its group companies are subject to environmental management.

88Basic Approach

Organizational
Governance

Human Rights

Labour Practices

Fair Operating
Practices

Environment

Environmental Management - Scope of the environmental accounting (As of March 31, 2023)
20 Domestic group companies
Okano Electric Wire Co., Ltd.

KANZACC Co., Ltd.

Furukawa Automotive Systems Inc.

Furukawa Sangyo Kaisha, Ltd.

Shoden Seiwa Co., Ltd.
Furukawa Communication and BroadcastingCo., Ltd.

Furukawa Industrial Plastics Co., Ltd.

Furukawa Precision Engineering Co., Ltd.

Furukawa Techno Material Co., Ltd.

Furukawa Electric Advanced Engineering Co.,

Furukawa Electric Industrial Cable Co., Ltd.

Furukawa Electric Power Systems Co., Ltd.

Furukawa Magnet Wire Co., Ltd.

Miharu Communications Inc.

Riken Electric Wire Co., Ltd.

Foam Kasei Co., Ltd.

Furukawa FITEL Optical Device Co., Ltd.

NTEC Ltd.

Furukawa Electric Ecotec Co., Ltd.

Ltd.
The Furukawa Battery Co., Ltd.

89

Consumer Issues

Community
InvolvementDatahttps://www.furukawa.co.jp/en/