The Furukawa Electric Group useshydroelectric power generated by
Furukawa Nikko Power Generation Inc.
for most of the electricity needed for
production operations in the Nikko
area. The annual volume ofhydroelectric power accounts for 14%
of all electricity used by the Furukawa
Electric Group each year (26% for
Furukawa Electric alone).

Initiatives for theEnvironment
The Furukawa Electric Group is striving to reduce its
environmental impact throughout the product lifecycle.

17 Basic Environmental Policy
18 Environmental Management
19 Material Flow
20 Targets and Performance
21 Activities for Promoting
Environmentally-Friendly Products

22 Environmentally Conscious Production Activities
24 Chemical Substance Management
25 Environmental Risk Management
26 Environmental Accounting

Furukawa Electric Group CSR Report 200916

Initiatives for theEnvironment

Basic Environmental Policy
The Furukawa Electric Group established its basic environmental philosophy andaction guidelines to unite environmental action across the Group.

Basic Philosophy
The Furukawa Electric Group recognizes that the preservation of the global environment is a critical issue forsociety and takes the environment into consideration in every aspect of its corporate activities to help create asustainable, happy and prosperous society.

Action Guidelines• We shall maintain a constant awareness of the impact of our corporate activities on the environment, with eachand every employee involved in environmental preservation activities.
• In addition to complying with environmental laws and regulations and with requirements from our customers andother sources, we shall also set out voluntary standards to establish greater levels of control.
• We shall set out environmental targets and objectives and systematically carry out activities accordingly tocontinuously improve our efforts to protect the environment.
• Environmental concerns shall be taken into consideration at every phase of our work, from the R&D and design

stages onwards, to supply environmentally-friendly products.
• We shall strive to reduce consumption of resources and energy, to promote recycling, to reduce waste andto minimize environmental impact at every stage of our activities, from procurement and manufacturing to
distribution and customer service.
• We shall conduct environmental audits and review our environmental management system and environmental

preservation activities to make continuous improvements.
• We shall raise employee awareness through environmental education.
• We shall promote the disclosure of information and communication with the public and play an active part incommunity activities.

List of companies participating in the liaison meeting for consolidated environmental management
Company name

Environmental
accounting

Company name

Environmental
accounting

Company name

Environmental
accounting

Access Cable Company

FITEC Corporation

Furukawa Life Service Inc.

Asahi Electric Works Co., Ltd.

Furukawa Automotive Systems Inc.

Miharu Communications Inc.

Inoue Manufacturing Co., Ltd.

Furukawa Circuit Foil Co., Ltd.

Riken Electric Wire Co., Ltd.

NTEC Ltd.

Furukawa Sangyo Kaisha Ltd.

F-CO Co., Ltd.

Furukawa C&B Co., Ltd.

FCM Co., Ltd.

Furukawa Industrial Plastics Co., Ltd.

Okano Electric Wire Co., Ltd.

Furukawa-Sky Aluminum Corporation

Okumura Metals Co., Ltd.

Furukawa Precision Engineering Co., Ltd.

Kyowa Electric Wire Co., Ltd.

Furukawa Engineering & Construction Inc.

Furukawa Electric Ecotec Co., Ltd.

Furukawa Techno Material Co., Ltd.

Sunsunny Industry Co., Ltd.

The Furukawa Electric Engineering Service Co., Ltd.

Companies marked with “ ” in the Environmental
Accounting column implement environmental accounting.
• Furukawa Circuit Foil Co., Ltd. became the Copper Foil
Division of the Metals Company of Furukawa ElectricCo., Ltd. in October 2008.
• The Zaikoo Co., Ltd. changed its name to Furukawa
Electric Ecotec Co., Ltd. in January 2009.
• F-CO Co., Ltd. became the F-CO Products Departmentof the Energy and Industrial Products Division of
Furukawa Electric Co., Ltd. in April 2009.
• Furukawa Electric Engineering Service Co., Ltd. mergedwith FI-Techno Co., Ltd. and became Furukawa Electric
Advanced Engineering Service Co., Ltd. in April 2009.
• Sunsunny Industry Co., Ltd. transferred all its stock to
MAX Co., Ltd. in August 2009.

Shodensha Co., Ltd.

Furukawa Electric Industrial Cable Co., Ltd.

Seiwa Giken Inc.

The Furukawa Battery Co. Ltd.

Totoku Electric Co., Ltd.

Furukawa Logistics Corporation

17 Furukawa Electric Group CSR Report 2009

Initiatives for theEnvironment

Environmental Management
The Furukawa Electric Group has developed a system of centralized control for groupwide environmental
activities based on the Furukawa Electric Group Basic Environmental Policy.

Environmental Management Promotion
Organization
At the Furukawa Electric Group, the Central Committee forEnvironmental Management, chaired by the Chief Social
Responsibility Officer under the supervision of the President,
meets four times a year to formulate and manage theenvironmental management targets of the entire Group.
To reinforce our GHG (greenhouse gas) reduction initiatives
for preventing global warming, the Committee for Companywide Promotion of Energy Conservation was renamed theCommittee for Reduction of GHG Emissions in fiscal 2008,
and the Working Group for Reducing GHG Emissions was
newly established under it.
At Furukawa Electric, to raise awareness and motivate
independent initiatives for reinforcing and innovating
environment-related technology and products in eachbusiness division, we developed a system in fiscal
2008 for evaluating the achievement of sales targets forenvironmentally-friendly products and measures for reducing
GHG formulated by each business division and to incorporate
these factors into their performance reviews.
The Company’s six works and domestic affiliates participatingin consolidated environmental management have obtained
ISO 14001 certification. We are also promoting environmental
management and initiatives at our overseas affiliates as part of
the related activities undertaken by each business division.

In fiscal 2008, informative articles on Team Minus 6% were
included three times in an in-house publication to encourage
action and participation in activities at work and home.

Environmental Education
The Furukawa Electric Group runs a variety of educational
training initiatives designed to raise the level of environmental
awareness among our employees and cultivate required
knowledge and skills.
Environmental education program
Category ofeducational
training
Education for new
recruits (once a
year, mandatory)

Content
General environmental
protection activities

New
recruits

General Mid-career
Management
employees employees

Training for
new recruits

Environmental Policy and
EMS activities (aspurpose, goals and generalneeded, mandatory) knowledge pertaining to theenvironment
ISO 14001-related
education (two-day
course) (twice ayear, voluntary)

Requirements of ISO
standards, environmental
regulations, procedures forinternal environmental
audits, various drills

One-day brush-up
Trends in environmental
course (once a year, regulations, various drills to
mandatory)
brush up auditing skills
Environmentally sound design
Environmental
Environmental
regulations
subjects (as needed,voluntary)
Control of chemical substances
contained in products
Consolidated
environmental
management
seminars

Seminars by experts onpriority issues

Environmental management organization
President
Environmental
Management Officer: Chair
Central Committee forEnvironmental Management

Committee for Reduction of
GHG Emissions

Committee for Development ofEnvironmentally-Friendly ProductsWorking Group for Reducing
GHG Emissions

Working Group for Promoting Sales
of Environmentally-Friendly Products

Safety and Environment Promotion Department, CSR Division
Environment Committeeof Works

Environment Committees
of companies andbusiness divisions

Liaison Meeting for
Domestic and Overseas
Group Affiliates* JAMP: Joint Article Management Promotion-consortium

Environmental Personnel Meeting
Transport Energy Reduction Committee
Committee for Green Product Management

Energy Conservation
Committee,
Waste Committee,
Chemical SubstanceCommittee, etc.
Expert Committees

Education on Environmental Subjects
In fiscal 2008, we held seminars on tools provided by industry
association JAMP*, with 28 participants in attendance. We
also held seminars on the REACH environmental regulations,attended by 36 participants.

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

Participating in Team Minus 6%
Furukawa Electric participates in Team Minus 6%, a national
movement to prevent global warming sponsored by the
Ministry of the Environment. Under Team Minus 6%, Furukawa
Electric has identified seven action items that it will implement
at the head office, branches and other locations.

Consolidated Environmental Management Seminar
Held in fiscal 2008 was a lecture by Mariko Kawaguchi,
General Manager of the Management Strategy Departmentof Daiwa Institute of Research Ltd., entitled, “Significance of
CSR for Companies—Initiatives Toward Sustainability.”
According to the results of a questionnaire, participantsreceived the seminar favorably, commenting that it was aneasy-to-understandpresentation on
how companies
could concretely
address various
issues from a CSR
Consolidated Environmental Management Seminar
perspective.

Furukawa Electric Group CSR Report 200918

Initiatives for theEnvironment

Material Flow
Furukawa Electric purchases various raw materials and chemical substances and uses energy resources such as fuel andelectricity as well as water resources to provide our products and services. At the same time, the Company endeavors to
reduce the environmental impact generated by these activities.

Environmental Impact of our Six Production Base WorksINPUTOUTPUT
Atmospheric emissions
203,000 tons of CO2
137 t
16 t
12 t

Raw materials

CO2
NOx
SOx
Soot

156,000 t

CopperEnergy*1

120,000 KL

Water

27.94 million t

Chemical substances*2

6 Main Works• Nikko• Kameyama• Ichihara• Amagasaki• Hiratsuka• Yokohama

Wastewater 18.05 million t
Waste
Industrial waste*3
Recycled materials

Chemical substances*2
Volume emitted
Volume transferred

1,067 t1,160 t20,005 t
113 t
100 t

*1 Amount of electric power, fuel oil and fuel gas consumed*2 PRTR targeted substances*3 Outsourced waste disposal, excluding recycled materials

Environmental Impact of our Non-production Bases
We have identified the environmental impact of activities at our non-production bases, namely Furukawa Electric’s head office andnine branch offices.

OUTPUT
We promote power and resource saving
measures at our head office and branch
offices, the Company’s non-production
bases.
Examples of such power saving
measures include turning off lights inconference rooms not in use and adjusting
air conditioning to appropriate
temperatures. In terms of resource saving
measures, we promote activities such assorting waste and reusing resources suchas photocopier paper and files.

Amount of electric
power consumed
1,019 MWh (385 t-CO2)
Amount of water used

923 m3
Non-production bases• Head Office• Sapporo • Osaka• Sendai • Hiroshima• Nagoya • Takamatsu• Toyama • Fukuoka• NahaAmount of paper used
Photocopier paper
Newspaper
Cardboard

23.0 t3.9 t
0.3 t

Volume of waste

20.2 t(Included recycled waste 20.0 t )19 Furukawa Electric Group CSR Report 2009

Initiatives for theEnvironment

Targets and Performance
The Furukawa Electric Group defines medium-term targets every three years in the form of the Medium-Term Plan forEnvironmental Preservation Activities and also develops annual plans for promoting environmental protection efforts
toward accomplishing the targets set out in these plans.

Furukawa Electric Group Annual Targets and Performance for Fiscal 2008
The Furukawa Electric Group promotes its environmental
protection activities by defining groupwide Environmental
Preservation Activity Targets for fiscal 2008 based on
medium-term targets laid out in the 2009 Medium-Term Planfor Environmental Preservation Activities. It applies them toenvironmental management systems at Furukawa Electricand affiliated companies under consolidated environmental

management.
The current fiscal year marks the final year of the 2009
Medium-Term Plan, and in this important year we are making
preparations for the formulation of the 2012 Medium-Term
Plan for Environmental Preservation Activities and the 2020
Long-term Targets for Environmental Preservation Activities byidentifying priority issues and setting targets.

Furukawa Electric and the Furukawa Electric Group priority environmental preservation activity targets for fiscal 20082009 Medium-Term Plan for Environmental Preservation Activities
Activities
Furukawa Electric

Furukawa Electric Group

Waste reduction activities

75% reduction in the volume of outsourced waste disposal compared withfiscal 2004 level

50% reduction in the volume of outsourced waste disposal comparedwith fiscal 2004 level

Zero emission activities

80% reduction in direct landfill disposal compared with fiscal 2004 level

50% reduction in direct landfill disposal compared with fiscal 2004 level

25% reduction in greenhouse gas emissions compared with fiscal 2000
level

10% reduction in greenhouse gas emissions compared with fiscal 2000
level

3% reduction in specific energy consumption for transportation comparedwith fiscal 2006 level(Determining current status toward setting new medium-term targets)

30% reduction in emissions of volatile organic compounds compared withfiscal 2004 level

30% reduction in emissions of volatile organic compounds compared withfiscal 2004 level
Eliminating the use of chlorinated organic compounds by fiscal 2008

60 general-purpose green products—expansion target at Group
companies: 5100% procurement rate for general purpose green products

Establishment of FGMS*1: regular audit for fiscal 2009

Establishment of FGMS

Improvement in environmental performance of products• Target for registration of environmentally-friendly products: 40• Environmental performance indices for flagship products

Enhancement of environmental performance of products

Activities to prevent global warming

Chemical substance management
activities

Green activities

Eco-design activities*1 FGMS: Furukawa branding Green products Management System; a mechanism designed to manage the content of regulated hazardous substances in Furukawa Electric
products.

Furukawa Electric Group annual targets, performance and self-evaluation for fiscal 2008
Activities

Priority environmental preservation activity targets for fiscal 2008

Performance in fiscal 2008

Waste reduction activities

60% reduction in the volume of outsourced waste disposal compared with fiscal 2004 level

70% reduction

Zero emission activities

64% reduction in direct landfill disposal compared with fiscal 2004 level

49% reduction*2

24% reduction in greenhouse gas emissions compared with fiscal 2000 level

26% reduction

2% reduction in specific energy consumption for transportation compared with fiscal 2006 level

3% reduction

24% reduction in emissions of volatile organic compounds compared with fiscal 2004 level

35% reduction

100% procurement rate for general purpose green products

99%

Establishment of the FGMS at major supply chain operators

74%1) 100% achievement of sales targets for environmentally-friendly new products

67%2) Compiling product environmental performance index guidelines(Postponed until next fiscal year)

Rating

Activities to prevent global warming
Chemical substance management
activities

Green activities

Eco-design activities
Evaluation ratings:

Greatly achieved;

Achieved;

Almost achieved;

Unachieved*2 Five of the six works achieved zero-waste and one has yet to achieve the target. (Definition of zero-waste: both direct landfill volume and total disposal of less than 1%)

Furukawa Electric Group CSR Report 200920

Initiatives for theEnvironment

Activities for Promoting
Environmentally-Friendly Products
The Furukawa Electric Group develops environmentally-friendly products designed to have less of an environmental
impact for its customers.

e-Friendly—Our New Environmental
Designation MarkThe Furukawa Electric Group changed the name of its
environmental designation mark from “ECOLINK” to“e-Friendly” to more effectively popularize environmentallyfriendly products, including those produced by overseas
affiliates. The mark is displayed on the boxes in which
Furukawa Electric Group’s
environmentally-friendly
products are packaged andis also printed in catalogs.
Following the mark’s namechange, we established a
new e-Friendly accreditation
Example of display in a product catalog
system.

Application and Registration ofEnvironmentally-Friendly Products
The criteria for an environmentally-friendly product is met
when it offers an overall improvement from an environmental
standpoint when compared with existing products andbased on predetermined standards at each stage, from thepurchasing of raw materials and components, manufacturing
and use to distribution and disposal. Following applicationand screening by the business division, products that pass
the screening conducted by the Committee for Developmentof Environmentally-Friendly Products, a cross-functionalorganization of the Furukawa Electric Group, are registeredas environmentally-friendly products. The system wasestablished in September 2008, and 16 items were registered
within the first six months.
Registration process for environmentally-friendly
products
Business division

The e-Friendly markApplication

Category of Environmentally-Friendly
Products
The Furukawa Electric Group’s environmentally-friendly
products belong to one of four categories described below.

Screening by the business division
Pass

Screening by the Committee for Development ofEnvironmentally-Friendly Products
Pass

Environmentally-friendly product categories
Category

Registration

Content

Prevention of global
warming

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

Zero emission

Products made from recycled materials, products designedwith easy-to-recycle components, products made frommaterials or with design facilitating volume reduction forlowering waste volume, products designed to share common
components with other products or products designed ascommon components.

Elimination materials thathave an impact on theenvironment

Products that do not lead to an increase in the use of ozonedepletive substances during the manufacturing process, do notcontain harmful substances above regulatory limits and do not
generate harmful substances above these limits during use ordisposal.

Energy savings

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

Future Policy

21 Furukawa Electric Group CSR Report 2009

In addition to increasing the number of our environmentallyfriendly products, we are currently establishing indices thatenable the visualization of environmental performance.
Environmental performance is an index that quantifies productimprovement compared with a standard model and expresses
a product’s contribution to the environment by comparing its
functional index and environmental impact over its life cycle
using predetermined standards.
By clarifying indices and standards in this manner, weintend to produce innovative environmentally-friendly productsthat exceed standards and help achieve greater affluence in asustainable, recycling-oriented society.

Initiatives for theEnvironment

Environmentally Conscious Production Activities
The Furukawa Electric Group is pursuing various environmental protection efforts to reduce the environmental impact of
its production and distribution processes.

Actions for Reducing GHG Emissions

Green Procurement Activities

Initiatives at Works
The majority of the Furukawa Electric Group’s greenhousegas emissions consists of CO2 generated from electricity, fueland other energy sources. As emissions from manufacturing
processes in particular account for a large proportion, we
continue to work on reducing emissions through energy
saving measures such as increasing the efficiency of
production processes, switching fuels, replacing equipmentwith more efficient alternatives, meticulously turning off lights
when not in use and insulating hot areas.
Total GHG emissions for the Group as a whole came to860,000 tons of CO2 in fiscal 2008, a reduction of 18%
compared to levels in fiscal 2000. On a non-consolidated
basis, Furukawa Electric achieved an equivalent of 200,000
tons of CO2, a reduction of 26% compared to fiscal 2000.
Greenhouse gas emission(104 tons CO2)

100
80
60

78.5

76.2

77.1

72.6

66.2

40
20
21.5

0

2004

21.9

20.4

2005

2006

20.3

22.7

2007

2008

Affiliated companies

Furukawa Electric(Fiscal year)

Initiatives in Logistics
In fiscal 2008, total transportation volume for the Furukawa
Electric Group as a whole fell 9.5% from the previous fiscal
year to 468 million ton-kilometers, while transportation volume
at Furukawa Electric fell 14% year-on-year to 126 million tonkilometers, due in part to cutbacks resulting from the global
recession. Furukawa Electric’s CO2 emissions decreased
16% year-on-year to 15,800 tons and specific consumption(denominator: ton-kilometers) also fell 3.4% due to further
improvement in the modal shift rate and other factors. We
will continue to promote modal shift, increase loading rates
and promote joint deliveries to reduce transportation energy
consumption.
Modal shift and specific consumption(%)(MJ/ton-kilometers)

12.0
9.0

1.920
1.897

1.890
1.869

6.0

8.5

3.0

10.7
1.833

Rate of modal shift

1.860

Specific consumption 1.830

3.6
0

2006

2007

2008

0
(Fiscal year)

Establishment of the Furukawa Electric Group
Green Procurement Guidelines
In March 2009, the Furukawa Electric Group unified the green
procurement standards previously defined for each businessarea into Group guidelines. This has enabled us to procure
everything from general purpose items such as office supplies
to production materials in accordance with an efficient,consistent green procurement standard.
Office Supplies and Other General Purpose Items
With respect to general purpose items, Furukawa Electric has
been registering products as stated in the Green Procurement
Guidelines using environmental labels in a catalog for ourpurchasing system and recommending them to the divisions
that use these products. As a result, the green purchasingrate for registered items was approximately 99% in fiscal
2008. Looking ahead, we will request suppliers of general
purpose items to deliver products that have environmental
labels to increase the number of such items.
Products and Manufacturing Process Components
Furukawa Electric’s purchasing system enables its suppliers
to provide and update information with regard to the statusof their environmental management activities (including ISO
14001) and systems for controlling the chemical content
of the materials they supply. This enables us to assess thecurrent situation and share information. We will continue
to ask our suppliers to enter this information in an effort tomonitor the status on an ongoing basis.

Green Product Management System
The Furukawa Electric Group has been conducting voluntary
inspections using our own assessment sheet, whichcorresponds to the guidelines for managing chemical content
in products established by JAMP. The rate of voluntary
inspections was 74% in fiscal 2008. We are also seeking tomanage our targets, conduct environmental inspections andexchange the latest information on related regulations throughbi-monthly meetings of the Green Product Management
Committee and bi-annual meetings of the Committee forConsolidated Environmental Management and Green ProductManagement. In response to customer audits, we are currently
conducting voluntary inspections at our major suppliers. We
intend to continue these efforts by further expanding the scopeof the inspections and by conducting regular audits at plants
and suppliers that have established their management systems.

Furukawa Electric Group CSR Report 200922

Initiatives for theEnvironment

Environmentally Conscious Production Activities

Zero Emission Activities
The Furukawa Electric Group began taking action to reducelevels of outsourced waste disposal in 1993, and launchedzero emission efforts in 2001 for reducing the volume ofwaste commissioned for final disposal to less than 1% of
the total volume of waste by directly transporting waste fromeach works to the landfill site. As a result of our efforts tometiculously sort waste and recycle waste acid and sludge
into useful resources, the overall level of outsourced waste
disposal for the Group for fiscal 2008 fell by 39% comparedto fiscal 2004 to 8,984 tons. Furukawa Electric achieved anequivalent reduction of 70% on a standalone basis and ouraffiliated companies a reduction of 29% (both compared tofiscal 2004 levels). The overall level of direct landfill disposal for
the Group also fell by 54% compared to fiscal 2004 to 2,105
tons. Furukawa Electric achieved an equivalent reduction of
49% on a standalone basis and our affiliated companies a
reduction of 55% (both compared to fiscal 2004 levels).
Outsourced waste disposal

Balance of waste disposal costs(Million yen)

300
249

249

200
124

100
43
0
-100

-75

2004

2005

2006

2007

2008

(Fiscal year)

Introduction of the Electronic Manifest System
Furukawa Electric has also introduced the electronic manifest
system. We commenced operations at our Hiratsuka and
Mie Works in April 2008. Operations began at Nikko Worksin February 2009, followed by Chiba Works in July 2009. In
2008, the annual rate of usage of the electronic manifest for
all companies was 52% (total manifest transactions: 3,617;
electronic manifest transactions: 1,897). We intend to focus
on expanding its use to all our works in the future.

(Tons)

15,000Recycling Foliage Generated by Pruning

10,00010,997
8,705

5,000
3,816
0

2004

9,041

2,119

2005

1,552

2006

8,600

1,839

2007

7,824 Affiliated companies
1,160 Furukawa Electric(Fiscal year)

2008

Direct landfill disposal(Tons)

5,000
4,000
3,000
2,000

4,121
3,113
2,254

1,000
0

504

2004

176

2005

177

2006

2,124

1,847 Affiliated companies

271

258

2007

2008

Furukawa Electric

In the past, Furukawa Electric contracted Hiratsuka City
for the incineration disposal of approximately 80 tons eachyear. Branches and leaves from pruning trees within ourcompounds totaled approximately 50 tons, representing
approximately 60% of the total. Since Hiratsuka City’s
incineration capacity was approaching its limit, we beganseeking alternative disposal methods from the standpointof recycling, and in December 2007 we switched to amethod by which the foliage is crushed for either dispersal
or composting. In fiscal 2008, we crushed 43 tons offoliage, dispersed part of the resulting chips in an orchard
and composted the rest. As a result, the volume of waste
outsourced to Hiratsuka City for incineration decreased toapproximately 30 tons, helping to reduce CO2 emissions
as well as cutting disposal costs by approximately half.

(Fiscal year)

Recycling process

Reducing Waste Disposal Costs
Furukawa Electric is targeting reductions in waste disposal
costs. In fiscal 2001, spending on landfill and intermediate
disposal cost more than 300 million yen. Since then, we havepromoted reuse, reduced the levels of waste and carefully
sorted waste to generate value from it. As a result, we achieved
approximately 250 million yen in profit in fiscal 2006 and 2007
on the back of soaring copper prices, and about 120 million
yen in fiscal 2008 despite the decline in copper prices.

23 Furukawa Electric Group CSR Report 2009

Foliagefrompruning

Crushing

Foliagechips

Reduction in waste incinerated
by to Hiratsuka City
(approximately 4 tons
Composting
per month)

Limited CO2 emissions

Initiatives for theEnvironment

Chemical Substance Management
The Furukawa Electric Group promotes efforts to appropriately manage andreduce the use of harmful chemical substances.

Chemical Substance Management
The Furukawa Electric Group promotes efforts to reduce theuse of harmful chemical substances. In particular, we makeevery effort to actively reduce emissions of volatile organic
compounds, which are regarded as one of the causes ofphotochemical smog. Furukawa Electric’s emissions havefallen 35% compared to levels in fiscal 2004. Three of thefour affiliated companies that were using organic chlorinecompounds completely phased out their use during fiscal 2008.
Emissions of volatile organic compounds(Tons)

400
310

300

327

200

253

252

2006

2007

203

100

Activities for Reducing Emission of Volatile
Organic Compounds
Although Furukawa Electric does not currently own any
facilities that fall under regulations set out in accordance with
the Air Pollution Control Law, we are nonetheless working
to reduce emissions. The main types of volatile organic
compounds (VOC) that we handle are toluene and isopropyl
alcohol (IPA). We reduced the volume of toluene that we
use mainly to degrease copper strips by switching to ahydrocarbon-based detergent and implemented measures toprevent leaks and dispersal of IPA, which is used to reduce
copper wire when it comes out of the melting furnaces. In
fiscal 2008, we installed an IPA recovery apparatus at our
Chiba Works in an effort to achieve further reductions.

0

2004

2005

(Fiscal year)

2008

Appropriate Management of Chemical Substances
At Furukawa Electric, we confirm the properties andapplicable laws and regulations regarding all chemical
substances we use during the manufacturing process on theirMaterial Safety Data Sheets and administrate them. We also
monitor the volumes of each substance used and report therelevant details in accordance with the PRTR Law*.
* Law Concerning Reporting, Etc. of Releases to the Environment of Specific Chemical
Substances and Promoting Improvements in Their Management

List of PRTR substances
Substance
No.

Substance

Unit: ton

VolumehandledVolumeVolumeVolumereleased transferred neutralized

25

Antimony and its compounds

75.6

0.0

5.5

40

Ethylbenzene

6.8

0.0

0.0

0.0
6.7

63

Xylene

18.9

7.4

0.8

10.6

64

Silver and its water-solublecompounds

67

Cresol

108
172

1.6

0.0

0.0

0.0

223.2

0.0

0.0

222.8

Inorganic cyanide compounds

5.4

0.0

0.0

5.4

N,N-dimethylformamide

43.6

0.0

0.0

43.2

197

Decabromodiphenyl ether

227.2

0.0

16.4

0.0

207

Copper salts (water-soluble)

9.4

0.0

0.0

9.4

227

Toluene

282.2

105.3

74.6

101.5

230

Lead and its compounds

1.8

0.0

0.1

0.0

231

Nickel

2.7

0.0

0.0

2.7

232

Nickel compounds

7.1

0.0

0.0

7.1

253

Hydrazine

8.6

0.0

0.0

8.6

266

Phenol

147.3

0.3

0.1

146.6

272

Bis (2-ethylhexyl) phthalate

4.7

0.3

0.3

0.0

283

Hydrogen fluoride and its
water-soluble compounds

2.8

0.0

2.8

0.0

1,068.8

113.4

100.4

564.6

Total

* Applicable to substances that are handled in volumes of one ton or more at works(or 0.5 tons or more in the case of specific first category chemical substances)

System for Analysis, Assessment andManagement
Our analysis division has developed an assessment
method using the chemical analysis of environmental
impact materials, which enables us to supply customers
with factual evidence (analytical data) about our products.
The division also supports the construction of systems for
managing environmental impact materials at our plants.
As an example of this assessment and management
approach, we developed and constructed a system ofphased assessment and management for environmental
impact materials, as shown in the diagram below.
A preliminary screening is conducted at the plant using
energy dispersive fluorescent X-ray analysis equipment
for a brief assessment. For situations requiring a moredetailed analysis, a secondary screening is conductedusing more accurate wavelength-dispersive fluorescent
X-ray analysis equipment installed in the analysis division.
Chemical analysis is conducted as a method of final
determination.

Management system for environmental impact
materials contained in products
Manufacturing section

NG

Product
Energy dispersive
fluorescent X-ray analysis

OK

Analysis division
Improvement

NG

Wavelength-dispersive
fluorescent X-ray analysis

OK

NG

Chemical analysis

OK

Shipment

Furukawa Electric Group CSR Report 200924

Initiatives for theEnvironment

Environmental Risk Management
The Furukawa Electric Group recognizes the environmental risks associated with its business operations and therefore
develops and implements countermeasures for each risk.

PCB Management

Soil and Groundwater Pollution
Countermeasures
The Furukawa Electric Group conducts strong risk
management recognizing that soil and groundwater pollution
are vital health and safety concerns for local residents andemployees.
We promptly disclose the discovery of any soil orgroundwater pollution and take action. Every effort is made tosecure the health and safety of local residents. We report tolocal authorities on the status of any pollution and actions toprevent its spread, and we release information to local residents,
related organizations and the media as necessary. We
implement a range of actions to protect the local environment
from soil or groundwater pollution, including regularly
inspecting for leakages of specific harmful substances,preventing leakages and using alternative substances.
In fiscal 2008, we conducted remedial work on land we
own in the Yokohama area, developed a slag treatment planfor the Oyama area (a plant site of the former Furukawa
Magnesium Co., Ltd.) and began examining slag deposit
volume and ground pollution. Remedial work for removing
affiliate Kyowa Electric Wire’s former Osaka Plant from thelist of contaminated areas under the Soil Contamination
Countermeasures Law and soil and groundwater
countermeasures at the Ibaraki Plant owned by Aoyama
Kinsho Co., Ltd. are also underway.

The number of instruments containing PCB is monitored ateach works and business base of affiliated companies tofacilitate effective storage and management operations. We
will commission processing on an ongoing basis once theJapan Environmental Safety Corporation has started PCB
waste processing operations.
Condensers and transformers removed due to thescrapping of buildings or renovation of facilities are examined
for PCB content on a case-by-case basis. In fiscal 2008, thenumber of instruments containing low levels of PCB understorage increased. Regulatory authorities were notified andappropriate storage established.
Number of instruments containing PCB
Works

In storage

In useAlready processed88

0

Unprocessed

11

0

11

Nikko Works

354

0

354

Hiratsuka Works

868

7

875

Mie Works

129

3

132

Osaka Works

66

0

66

Yokohama Works

18

0

18

1,534

10

1,544

Chiba Works

Total

Total
88

Response to Asbestos Concerns
Use of Asbestos in Products

Effort to Prevent Atmospheric andWastewater Pollution
Every Furukawa Electric works maintains voluntary control
limits and manages operations to avoid exceeding regulatory
limits for atmospheric and wastewater quality.
In fiscal 2008, suspended solids (SS) temporarily exceeded
regulatory limits at Chiba Works due to an inflow of muddy
water from torrential rainfall. The situation, which was reported
to the regulatory authorities, has since returned to normal.
Otherwise, all works controlled atmospheric and wastewater
quality within regulatory limits.
* See our website for detailed data for the Chiba, Nikko, Mie and Osaka works.

Management status at works
Measured item

Nikko
Works

Mie
Works

Osaka
Works

pH, BOD, n-h (mineral oil)SS*

* While data falls within regulatory limits, temporary excesses did occur due to theeffects of torrential rainfall.

25 Furukawa Electric Group CSR Report 2009

Use of Asbestos in Buildings and Plant Facilities
Plants and buildings
A fiscal 2005 investigation to ascertain the extent to whichasbestos spray materials discovered in one building and apart of one plant on Company-owned properties may havedispersed confirmed the asbestos was stable. Given the risk
of future dispersal, however, we removed or contained thematerials at our plant buildings in fiscal 2006.

: within regulatory limits

Chiba
Works

Atmospheric data NOx, SOx, dust
Wastewater
quality data

Although we no longer manufacture or import products
containing asbestos, we have previously done so for industrialuse. Relevant products include electric wires for use on ships
and fire prevention products for electric wire installation fortelecommunications and electricity. Full details are featured on
our website.

Facilities and equipment
Insofar as possible, all asbestos subject to dispersal has
been removed and replaced with viable alternatives. Where
asbestos is embedded in insulation or other materials andnot dispersed, we will later install non-asbestos containing
materials during scheduled inspections.

Initiatives for theEnvironment

Environmental Accounting
The Furukawa Electric Group has introduced environmental accounting to gain a quantitative understanding of costs
and proceed efficiently and effectively in its environmental activities.

Environmental Accounting
In an effort to quantitatively assess our environmental
costs and benefits, we have compiled tables outlining
our environmental conservation costs, economic benefits
associated with environmental conservation activities andenvironmental conservation benefit (material benefit). Alldata has been compiled in accordance with environmental
accounting guidelines published by the Ministry of theEnvironment. Data on affiliated companies was collected
for a total of 19 companies.

Furukawa Electric’s environmental conservation costs forfiscal 2008 came to 3.7 billion yen in expenses and 400 million
yen in investment. Expenses fell by 500 million yen comparedto the previous year (fiscal 2008). Overall economic benefits
decreased by 440 million yen.
Environmental conservation costs for our affiliatedcompanies came to 4.8 billion yen in expenses and 4.2
billion yen in investment. Overall economic benefits rose byapproximately 400 million yen due to increased energy costs.

Environmental conservation costs

Unit: million yen

Category

Total costs
Furukawa Electric (Year-on-year)

Key activity and the outcome

Affiliated companies(1) Business area cost

Pollution prevention (air pollution, etc.), energy conservation,
waste disposal, etc.

1,335 (+208)

3,427(2) Upstream/downstream cost

Recovery of packaging, drums, etc.

637 (+70)

376(3) Administration cost

Environmental management system auditing, environmental
impact monitoring, etc.

415 (−57)

231(4) Research and development cost

Development of environmentally-friendly products, research into
alternatives for harmful substances

1,219 (+129)

669(5) Social activity cost

Tree planting, local community cleaning activities, donations, etc.

37 (+35)5(6) Environmental remediation cost

Environmental impact assessments, cleanup of polluted soil, etc.

77 (−438)50

3,720 (−53)

4,757

Total

Environmental conservation benefit

Economic benefit associated with environmental conservation activities

Emissions causing
environmental impact

Unit

Volume of industrial waste disposal processed*1t685–1,009Energy consumption (crude oil equivalent)

1,000 kl

19

20

Water consumption

1,000 t–4,351–384

Emissions of volatile organic chemicalcompounds

Unit: million yen

Reduction
Furukawa
AffiliatedElectric
companies

t

49

46

CO2 emissions

1,000 t-CO2

24

70

SOx emissions

t

4

–3

NOx emissions

t

25

4

Soot emissions

t

–1

–40

Details of benefits
Revenue from recycling

349

530

Reduction in waste disposal costs

19

−170

Reduction in energy costs

66

−782

Reduction in water purchase costs

6

0

440

−422

Total
* Minus figures indicate an increase*1 Excluding recycled waste*2 Minus figures indicate an increase

Investment and research costs

Environment-related investment
Total investment

15,441

15,306

Total research costs

10,451

5,443

Economic benefit(Million yen)

(Million yen)

6,000

600

5,000

400
77

3,000
2,000

1,683
4
1,134
470
408

1,618
89
1,102
403
511

1,260
4
1,184
428
667

1,000
1,606

1,401

1,515

514
3
1,091
454
567
1,127

37

415
637

200

Social activity cost

0

1,335

development cost
Administration cost
Upstream/
downstream cost

440
317

260

Environmental
remediation cost

1,219 Research and

179
228
54 30
–3

448
41

61 30
–2

-200

2006

2007

2008

–1

25

–3

19

66

–13

-400

(Fiscal year)

–352
–393
–712

2004

2005

2006

2007

6
Reduction in water
purchase costs
Reduction in energy
costs
Reduction in waste
disposal costs
Revenue from recycling

-600
-800

2005

Total revenue andexpenditure

349

338

Business area cost

0

2004

Unit: million yen

Total costs
Furukawa Electric Affiliated companies
389
4,197

Investment and research costs

Environmental conservation costs

4,000

Total benefit
Furukawa Electric Affiliated companies

2008(Fiscal year)

Furukawa Electric Group CSR Report 200926