Environmental Activitiesof Affiliated Companies

Message
Summary of Business
Furukawa Electric’s Approach to Society
Medium-Term Plan for Environmental Preservation Activities 2005

Our Environmental ReportSocial Performance Report
Environmental Activities of Affiliated Companies
Progress in Environmental Management

Overview of Consolidated Environmental Activities
Furukawa Electric has strengthened its environmental preservation activities togeth-

Environmental Management. This committee is used by the environmental adminis-

er with affiliated companies as a corporate group. In fiscal 2002, we establishedtrators of affiliated companies not only to promote and support environmental

the Liaison Meeting of Affiliated Companies and engaged in environmental preser-

activities but also to exchange information. We started compiling group-wide envi-

vation activities with the slogan, "We, as a corporate group, shall promote envi-

ronmental data and reflecting the results of group activities. In addition, group’s

ronmental preservation activities, aiming for reduction of environmental risks, andmanagers held seminars to improve employees’ environmental awareness.

thereby contributing to society and improving the evaluation of our activities by

Coordinated efforts from all the affiliated companies for environmental preserva-

society". In fiscal 2003, we established the Liaison Meeting for Consolidated

tion helped us achieve encouraging results.

No.

Names of 40 affiliated companies

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

Company Name

ISO14001

Handling
volumeSystemSoil temperature

Soil

PRTR

Organic
chemicalsIndustrial
waste

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Access Cable Company

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Asahi Electric Works, Ltd.

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INOUE MANUFACTURING CO., LTD.

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NTEC LIMITED○○○

F-CO CO., LTD.

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FCM CO., LTD.

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Okano Electric Wire Co., Ltd.

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OKUMURA METALS CO., Ltd.

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The Kyusyu Furukawa Electric Co., Ltd.

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KYOWA ELECTRIC WIRE CO., LTD.

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SUNSUNNY INDUSTRY CO., LTD.
SHODENSHA CO., LTD.

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SEIWA GIKEN INC.

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TOTOKU ELECTRIC CO., LTD.

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T.H. FURUKAWA ELECTRIC CO., LTD.

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Nikkei Kakoh Co .,LTD.

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Nippon Foil Mfg. Co., Ltd.

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Higashi Nihon Tanzou Co., Ltd.

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FURUKAWA ALTEC Co., Ltd.
FURUKAWA INDUSTRIAL CABLE CO.,LTD.

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FURUKAWA INFONET PRODUCTS CO., LTD.

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FITEC Corp.

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Furukawa Elecom Co., Ltd.

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The Furukawa Electric Engineering Service Co., Ltd.

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FURUKAWA AUTOMOTIVE PARTS INC.

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FURUKAWA COLOR ALUMINUM CO., LTD.

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Furukawa Circuit Foil Co., Ltd.

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Furukawa Sangyo Kaisha, Ltd.

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Broad Wireless Corporation

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FURUKAWA INDUSTRIAL PLASTICS CO., LTD.

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Furukawa Precision Engineering Co., LTD.
FURUKAWA ENGINEERING & CONSTRUCTION INC.

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The Furukawa Battery Co., Ltd.

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FURUKAWA LOGISTICS CORP.

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FURUKAWA TECHNO MATERIAL CO., LTD.

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FURUKAWA LIFE SERVICE Inc.

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MIHARU COMMUNICATIONS INC.
Yamada Keikinzoku Co., Ltd.

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Riken Electric Wire Co., Ltd.

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Riken Fitel Co., Ltd.

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※Commenced operations in April 2004. Former name: Furukawa C&B

Environmental Management Activities○…… ISO14001 : Acquiring certification
Global warming…… Plans for reducing/eliminating
Environmental accounting : Executing environmental accountgreenhouse gases
ing and publishing its results in this reportIndustrial waste…… Compiling industrial waste data
System : Establishing an environmental management system
Organic chlorine compounds……
Plans for reducing/eliminating organic chlorine compounds

PRTR…… Reporting to PRTR／listing chemical substances
Soil…… Investigating soil and groundwater pollution

27

Environmental Activitiesof Affiliated Companies
Common Targets on Consolidated Environmental Management Activities
We have formulated common targets
on consolidated environmental management activities and have been collectively pursuing these targets as
Furukawa Electric group since fiscal
2003. Of the seven targets we marked
in fiscal 2003, we have alreadyachieved three. We will continue working on these activities to attain the otherfour targets in the coming years.

(Common targets)

Item

TargetTarget year

Referencepage

1

Acquiring ISO14001 certification

Acquiring ISO14001 certification

Fiscal 2005

27

2

Reduction of industrial waste

Zero emissions activities: reducing waste directly disposed at reclamation sites by 50% over fiscal 2000

Fiscal 2005
Fiscal 2005

29

3

Reduction of greenhouse gases

Fiscal 2005
Fiscal 2008
Fiscal 2005

29

Fiscal 2005
Fiscal 2008

29

Reducing industrial waste (except for the recycled portion) by 30%over fiscal 2000
Reducing CO2 emissions by 5% over fiscal 2000
Reducing CO2 emissions by 10% over fiscal 2000
Totally discontinuing the use of HFC and PFC, and reducing SF6 atmospheric emissions by 50% over fiscal 2000

4
(Items for which targets were achieved)

Strengthening control and reduction of chemical substances

Item

Reducing effluence of organic chlorine compounds by 50% over fiscal 2000
Total elimination of effluent organic chlorine compounds

TargetPerformance1

Indexing the progress ofenvironmental management

Executing environmental accounting (for fiscal 2002)

Introduced environmental accounting on five affiliated companies and reported their results inthe Environmental Report 2003.

2

Establishing an environmental
management system

Clarifying persons responsible for activities and organizationof environmental management, and administrating data

Launched Liaison Meeting for Consolidated Environmental Management
Collecting and compiling data for each company (see page 29)

3Issuing environmental reports

Reporting information of the group's activities in fiscal 2002,
in the Environmental Report 2003

Introducing summaries of business and activities of four affiliated companies on the page
"Environmental Activities of Affiliated Companies"

Environmental Accounting
We collected data from eight companies, five of which were listed in fiscal 2003
and have added three other companies this year. Like Furukawa Electric, the environmental accounting of the affiliated companies is also carried out in accordanceCompanies newly

Scope of datacollection

included in present data

F-CO, Broad Wireless and FURUKAWA SANGYO KAISYA

Companies included in

TOTOKU ELETRIC, Nippon Foil Mfg. Furukawa Engineering &Costs and investment amounts for environmental preservation in fiscal 2003

previous and present data

Construction, Furukawa Battery and Riken Electric Wire

totaled 500 million yen and 160 million yen respectively. Economic effects

Data collection April 1, 2003 to March 31, 2004
period fromwith Environmental Accounting Guidelines by the Ministry of Environment.

amounted to 170 million yen.

■ Environmental Preservation Cost

Unit: million yen

Category

313(1) Business area costs

Pollution prevention, global environment preservation, resource recycling, etc.

(2) Upstream/downstream costs

Retrieval and recycling of containers, packages and plastic products, etc.

78(3) Administration costs

Establishment and maintenance of environmental management systems, maintenance for environmental preservation and measurement of environmental impact, etc.

83(4) Research and development costs

Development of environmentally friendly products, etc.

49(5) Social activity costs

Participation in official events for beautifying the environment, etc.

(6) Environmental remediation costs

Repair of corrosion-induced damages to underground wastewater piping

19

Total

543

■ Investment and Research Costs
Investment and Research Costs

Unit: million yen

Amount163

Environment-related investment
Total investment cost

2,000

Total research cost

2,000

■ Economic Benefits Associated with Environmental Preservation Activities
Unit: million yen

Content(1) Income from recycling(2) Reduction in waste disposal costs
through recycling(3) Reduction in energy costs throughenergy conservation

28

Costs

Major Activities

Amount113-2474(4) Reduction in water purchase costs

11

Total

174

1

■ Physical Benefits Associated with Environmental Preservation Activities
Discharge of Substances Having an Adverse Environmental
ImpactUnit

Industrial waste (excluding waste from recycled resources)

ton

902

285

Energy consumed (crude oil basis)KL

55,598-2,915

Water consumed

K.ton

980

-47

Emissions of volatile organic compounds

ton

0.4

2.7

Reduction Volume
Impact on the Environment (Change over previous year)

CO2 emissions

CO2-ton87,667-4,532

SOx emissions

ton

22

-4

NOx emissions

ton

387

-36

Soot emissions

ton

1.6

0.8

Message
Summary of Business
Furukawa Electric’s Approach to Society
Medium-Term Plan for Environmental Preservation Activities 2005

Our Environmental ReportSocial Performance Report
Environmental Activities of Affiliated Companies
Progress in Environmental Management

Environmental Impact Data of Affiliated Companies(affiliated companies: 40 [63 sites])

In fiscal 2003, we compiled data on the reduction of environmental
impact generated by the activities of the Furukawa Electric group semiannually. Environmental administrators from affiliated companies met toreport progress and exchange information regarding environment
improvement activities. The companies discussed trends regarding theenvironment in Japan and overseas and the latest revision of laws andregulations, ensuring compliance with these laws.
Furukawa Electric group has set common targets for the reduction of environmental impact. We have successfully reduced organic chlorine compounds such as trichloroethylene by 60% in fiscal 2003 compared to fiscal 2000. Unfortunately, volatile organic solvent waste volume directly
disposed at reclamation sites and emissions of greenhouse gases are having an increasing trend in affiliated companies compared to Furukawa
Electric where reduction of these pollutants progressed smoothly. Thiswas mainly due to an increase in operations owing to economic recovery
in Japan. Another reason is the shift of operations from Furukawa Electricto the affiliated companies. Thus, we believe that we should manage andimprove the overall environmental preservation activities of the group.

Emissions of Greenhouse Gases
Emissions volume(ton)

250000200000150000100000
50000
0

2000

2001

2002

2003 (fiscal year)

Discharge of Industrial Waste
Discharge volume

(ton)

2500

8000

2000

6000

1500

4000

1000

2000

500

0

2000

2001

2002

Waste Volume Directly Disposed at Reclamation Sites

(ton)

10000

2003 (fiscal year)

0

2000

2001

2002

2003 (fiscal year)

Reduction of Organic Chlorine Compounds (target substances: trichloroethylene, Tetrachloroethylene, Dichloromethane)
Handling Volume(ton)Release Volume

(ton)

300

250

250

200

200

150

150
100

100

50

50
0

2000

2001

2002

2003 (fiscal year)

0

2000

2001

2002

2003 (fiscal year)

Reduction of Specific Chemical Substances (volatile organic solvents) (target substances: Xylene, Toluene)
Handling Volume(ton)Release Volume

(ton)

900
800

60

600

40

50

30

400

20
200
0

10
2001

2002

2003 (fiscal year)

0

2001

2002

2003 (fiscal year)

29

Environmental Activitiesof Affiliated Companies

Activities of Affiliated Companies
The followings are initiatives for environmental preservation taken by companies related to Furukawa Electric.

Nippon Foil Mfg. Co., Ltd.
History

Reduction of Waste

Since its establishment in 1933 as a comprehensive metal foil maker, Nippon Foil Mfg. has
manufactured and sold aluminum and copper
foil products and other products made out offoils.
Our aluminum foil products are used as packaging materials in the food and pharmaceuticals industries. Miscellaneous goods mainly
kitchen utensils, building and electronic materials are also manufactured from foils. In addition, our copper foil products are also used forbatteries and shielding materials.
The plants are located in Nogi, Tochigi andKusatsu, Shiga. We adopt every possible
measure for water treatment at Shiga plant,
particularly because Lake Biwa, the reservoir
for the Kinki region, is located downstream
from the plant.

Discharge of industrial waste increased temporarily due to the elimination of incinerators
at the two plants, but we reduced the amountof waste discharged waste at reclamation sites
and from intermediate disposal treatment as aresult of sorting and retrieval of waste andselection of destination for recycled resources,
attaining a rise in the recycling ratio from 67%
in fiscal 2000 to 78%.

Environmental Preservation Activities
Company Wide Environment Committee,
which is a company wide organization, formulates environmental policies for the whole company and follows up all environmental activities. Each plant of Nippon foil Mfg also has
an environmental committee, which engages in
activities and sets its targets based on the company’s policies.
We promote environmental activities focusing
not only on compliance with laws and regulations, but also on reduction of industrial waste,energy conservation, sales of environmentallyfriendly products and environmental education.
The Shiga Plant acquired ISO14001 certification in October 1999 and the Nogi
Plant acquired it in June 2000.
A Combined audit of the two plants isscheduled to take place in 2004.

Sales of Productswith Reduced Environmental Impact
We are selling packaging materials, using
ECOCE, a Biomas Film Composite.
We are also promoting chloroethylene-free
and toluene-free products and are shifting towater based ink.

30

Examples of Energy Conservation and
Improvement of VOC Treatment Facilities

Cleansing liquid is one of the items in which
we have made an improvement from fiscal
2003 and have changed the type of cleansing liquids. We have also generated
reusable resources by sorting aluminum
trash and paper trash attached to plastics.

■ Waste volume/Reusable resources volume
（％）

(ton)

1600

100
Total waste volume

1400
1200

Waste for landfills/
Intermediate treatment disposal
Recycling ratio

90

78%

80

1000
800
74%

600

▲Deodorizing treatment equipment

VOC emission will be restricted due to a revision of the Clean Air Act but we have long
strived for the air emitted from the plant to be
free of harmful agents and for this purpose wehave used a direct incineration method toprocess organic solvents discharged in theprinting process and others, since 1976.
In 2003, we rebuilt our treatment equipment toutilize a heat storage incineration method, as
one of the energy conservation measures. As
a result, while electric power consumptionslightly increased, we reduced gas consumption dramatically, thereby reducing energy
costs by around 60 million yen per year.

73%

Nippon Foil Mfg. Co., Ltd.
67%

400

70

200
0

2000

2001

2002

60
2003 (fiscal year)

Reduction of waste at user level
Reduction measures at user level

Discontinue cardboard packaging andreuse pallets by promoting group
packaging
2 Plastic core wrappers are promoted
instead of conventional core wrappers
to promote reuse.
1

Through the above measures, we help toreduce waste disposal at user level. Use ofplastic cores, in particular, for 21 items, hasreduced waste by around 36 tons per year.

Osaka head office : 1-1 Nishinakajima 4-Chome,
Yodogawa-ku, Osaka City,Nisshin
Food Products building
Tokyo head office : 8-3 Higashi-Nihonbashi 2-Chome,
Chuo-ku, Tokyo
Higashi-Nihonbashi green building
Number of employees : 270
U R L : http://www.nihonseihaku.co.jp/

Enquiries
Company Wide Environmental Committee
Secretariat
TEL +81-3-5835-2071 FAX +81-3-3865-3457

Message
Summary of Business
Furukawa Electric’s Approach to Society
Medium-Term Plan for Environmental Preservation Activities 2005

Our Environmental ReportSocial Performance Report
Environmental Activities of Affiliated Companies
Progress in Environmental Management

Furukawa Automotive Parts Inc.
History
The company was established in 1946 as a
subcontractor of Furukawa Electric and manufactures cotton wrapping wires, bind wires andinsulated cables and was reorganized as
Oumi Electric Wire Co.,Ltd. in 1950.
The Company joined Furukawa Electric in
1960 in a technical alliance to produce wire
harnesses for automobiles. Since then the company has developed into a leading manufacturer of wire harnesses for the automotive
industry. In 2000, the company changed its
name to Furukawa Automotive Parts INC.

Environmental Preservation Activities
The Company acquired ISO14001 certificationin September 2002.
It is located east of Lake Biwa, at the so called"east-lake" area. This area requires special
environmental preservation consideration toprotect Lake Biwa.

kerosene, and in recycling activities by mainly
targeting copy papers.
We are saving energy, by temperature controlof air conditioners and heaters, encouraging
turning off of PCs and lightings when they are
not used. We also applied insulation coatingon the roof of the head office, and shiftedsome compressors to inverters.
We are also striving to reduce the amount ofcopy papers by using the unused side of usedpapers and encouraging double sided copying.
3

Reduction of Industrial Waste

We reduced industrial waste by around 54%
over three years by curtailing waste generationin the manufacturing process and administrative work as much as possible, and recycling
papers, metals and cardboard through thorough sorting.
The chart below shows our performance of
reduction in industrial waste.
■ Waste generation trends

Under the environmental policy of "We shallincorporate environmental preservation initiatives into every phase of corporate activity, tocontribute to a sustainable, happy and prosperous society", we engage in environmental
management activities at all three of our business establishments, the head office, Toyosato
factory and Hatasho factory, to achieve environmental targets.

(ton)

500
400

4

Contributions Activities to Local Community and Society

Every March, Inukami River Cleaning Activities
are carried out in the town of Koura where ourhead office is located. In May Uso River andStreet Clean-up Activities are carried out in the
town of Toyosato where Toyosato factory is
located. In August, Echi Refreshing Activities arecarried out in the town of Hatasho where theHatasho factory is located to keep the local areaclean. We participate in these events, assist in
local activities and interact with the local people.

Our Future Activities
We will further improve the environmental
management system as well as promote environmental preservation by continuing thealready, ongoing activities.
In the future, we will develop green procurement schemes which Furukawa Electric is currently promoting. In addition, we aim to establish a system for implementation and management of IMDS (International Material Data
System) and LCA (Life Cycle Assessment) as
requested by automobile manufacturers under
instruction of the Safety, Environment andQuality Promotion Department and theAutomotive Products Division.

Furukawa Automotive Parts Inc.

300
200
100

Priority Items
1

Environmentally Friendly Products

0

2001

2002

2003 (fiscal year)

Each of our customers, the automobile manufacturers, demands we stop using substanceswith adverse environmental impact and develop alternatives for these substances. We wereable to meet these requirements by discontinuing the use of these substances and using alternative substances, thus producing halogen-free
polyvinyl insulated cables.
2

Head Office :1000 Amago, Koura Town, Inukami County, Shiga
Number of Employees : 635
Factory : Toyosato Factory
380 Takanose, Toyosato Town, Inukami County,
Shiga
Hatasho Factory
416 Higashide, Hatasho Town, Echi County,
Shiga
U R L : http://www.furukawaap.co.jp/

Enquiries
Head office ISO Promotion Department(EMS Secretariat)

Energy Conservation and Recycling

We engage in energy conservation activities
by targeting electric power, crude oil andTEL +81-749-38-4817 FAX +81-749-38-4180▲Echi Clean-up Activities : events at Hatasho town.

31

Environmental Activitiesof Affiliated Companies

Message
Summary of Business
Furukawa Electric’s Approach to Society
Medium-Term Plan for Environmental Preservation Activities 2005

Our Environmental ReportSocial Performance Report
Environmental Activities of Affiliated Companies
Progress in Environmental Management

Activities of Affiliated Companies
Riken Electric Wire Co.,Ltd
History
We started operations under the name of
Riken upon the acquisition of a license to use
patents concerning enameled insulated wires
in 1934. Since then we have developed businesses centering on magnetic wires, various
cables, stainless steel wires, processing of coils
and solder plated wires. We are currently
developing products that meet this age’s
demands, such as optical electronics components and electronics components. We haveexhibited solid performance in home appliances, electronics and information equipment,
communication equipment and their infrastructure business.

engage in environmental preservation activities. The basic aim is that we use resources
effectively for improvement of current life standards of mankind and its future, with the visionof making the company an environmentallyfriendly company.
Ichikawa Factory, Shirane Factory and Ichijima
Factory acquired ISO14001 certifications inMarch 2000, August 2000 and February
2004, respectively. For external issues, wehave concluded an environmental agreementwith local governments and received certification of green procurement from customers. We
are pursuing improvement in the following
areas at each site and product level.

3

Eco-Product Development

In the cable division, we have shifted almost
100% to NF, succeeding in eliminating lead inalmost all products. In addition, we have realized high quality and low price in solder-plated wires for electronic components through a
hot-solder-dipped coating method which is ourown development. We are also the first tocommercialize lead-free solder plated wires,
attaining almost a 70% shift to NF.

Priority Items
Environmental Preservation Activities
We develop our business, with the recognition
that preservation of the global environment is
the most important aspect in our society and

1 Energy Conservation

We installed a cogeneration system at the
Shirane Factory, which provides around 70%
of total electric power from 1989. We also
use steam, generated from boilers, for ventilation inside the factory. In this system, steam isused as a cooler using an absorption chiller inthe summer and as a hot water heater in thewinter.

▲Lead-free solder-plated wires

Riken Electric Wire Co.,Ltd

2 Reduction of Waste and Promotion of Recycling

We have pursued reduction of waste and promoted recycling in all factories, which resulted
in waste reduction by around 15% andattained 130% in recycling rate in actual
achievement for the past three years.
▲Commemorative plating to acquire incentives on
use of patents■ Yearly Trends of Waste Amount and Recycling Amount
(ton)

100
90

Industrial waste
Recycling amount

80
70
60
50
40
30
20

Enquiries and further information
Ichikawa Factory Environmental Committee

10▲Planting lawn on the parking area in front of themain gate of Shirane Factory

32

0

Head Office : 12-22 Tsukiji 1-Chome, Chuo-ku,
Tokyo
Number of employees: 294
Factory : Shirone Factory
840-1 Kamihachimai, Shirone City, Niigata
Ichikawa Factory
17-12 Shiohama 3-Chome, Ichikawa City,
Chiba
Ichijima Factory
387-1 Aza Tsujinokai, Chokushi, Ichijima
Town, Hikami County, Hyogo
Electronics Components Division
357 Oaza Kosudo, Kosudo Town,
Nakakanbara County, Niigata
URL : http://www.rikensen.co.jp/

TEL +81-47-397-2131 FAX+81-47-396-7572

2000

2001

2002

2003 (fiscal year)