Furukawa Electric Group
Sustainability Report2017Editorial Policy
This report aims to inform all stakeholders about the philosophy and measures of Furukawa Electric Group in relation toits business activities, management, the environment and its relationship with society. Our goal is to report on our CSR
philosophy and efforts and gain the understanding of our stakeholders.

Scope of This Report
Period Covered
Fiscal 2016, from April 1, 2016 to March 31, 2017
(note) Includes selected information on past initiatives andactivities during fiscal 2017.

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

Publication Timeframe
Publication date: September 14, 2017
Planned publication of next edition: September 2018

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

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

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

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

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

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

2

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

History of Furukawa
Electric's CSR Activities
1972

Companywide Rules for Pollution Prevention formulated

1974

Environmental Control Department established

1989

Team for Reduction in Use of Specified CFCs established

Energy Conservation Team established1992

Anti-Monopoly Act Guidelines issued

1996

Use of specified CFCs and trichloroethane discontinued

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

Team for Promotion of Reduction in Industrial Waste established
Furukawa Electric Basic Environmental Policy formulated

Acquisition of ISO 14001 certification commenced	Companywide Regulations for Pollution Prevention revised to create
the Companywide Regulations for Environmental Management
2000
2001

First Environmental Report published
Environmental accounting started

Zero-emissions activities commenced
2002

2003

Anti-Monopoly Law manual published
Furukawa Survival Plan announced

Executive Officer System introduced
Furukawa Electric Basic Environmental Policy revised
2004

Company system and chief officer system introduced

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

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

CSR Division established

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

Furukawa Electric Basic Policy on Pandemic Influenza Preparedness formulated

Compliance pledge introduced
	e-Friendly mark (environmentally harmonious product) certification
system started
2009	Furukawa Electric Group Green Procurement Activity Guidelines
published	Basic Policy on BCM (Business Continuity Management) formulated
Compliance awareness survey covering all employees conducted	A CSR award newly established as a part of the Outstanding
Affiliated Company Awards
2010

Medium-term management plan, New Frontier 2012, formulated

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

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

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

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

2016	Medium-term management plan, Furukawa G Plan 2020, announced	Established contact for internal reporting system for overseas Group
companies	Jointly conducted employee awareness surveys with Group
companies in Japan

Furukawa Electric Group
Sustainability Report

2017
Contents
02
03
03

Editorial Policy
History of Furukawa Electric's CSR Activities
Contents

04

Group Profile

06

Top Message

10

Special Feature 1

OFS Activities, Our North American Hub				- The Global Contributions of Fiber Optics -12Special Feature 2

14

Financial and Non-financial Highlights

16

Business Report		Everyone working lively, continuing togrow and being a proud corporate group		Telecommunication Solution / Energy Infrastructure /		 Automotive Products & Batteries /		 Electronics Component Material /		Functional Products

22Management

22
26
28
30
32

Corporate Governance
CSR Management
Stakeholder Relations
Risk Management
Compliance34

Initiatives for Society

34
36
38
40
46

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

50

Initiatives for Environment

		 Environmental Management / Material Flow /		Targets and Performance of Environmental
Conservation Activities /		 Environmentally Friendly Products /		 Preventing Global Warming/Reducing Waste /		Water Resources / Chemical Substance Management /		Environmental Risk Management /		Biodiversity Conservation
60

Third-Party Opinion

61

List of all applicable companies

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20173

Group Profile
Company Profile

Percentage of net sales by segment

Company Name

Furukawa Electric Co., Ltd.

Service and Developments, etc.

President

Keiichi Kobayashi

Founded

1884

Functional Products

Established

1896

Paid-in Capital¥69,395 million

14.6 %
131.5 Billion yen(As of March 31, 2017)

Net sales¥843,344 million (Consolidated)(Years ended March 31, 2017)	¥398,777 million

		(Non-Consolidated)

Number of Employees

52,254 (Consolidated)(As of March 31, 2017)

3,657 (Non-Consolidated)

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

+81-3-3286-3001

5.5 %Communication Solution

49.7 Billion yen

18.7 %
168.5 Billion yen
Energy Infrastructure

Total

843.3

(note)

Billion yen

Electronics
Component Material

10.6 %
95.3 Billion yen
Automotive Products& Batteries

25.8 %
232.1 Billion yen

24.8 %
223.4 Billion yen(note) Figures excludes intersegment transactions

Percentage of overseas sales
Overseas (Total) 46.2%

China, Korea, Taiwan
12.1％
Asia, (South East Asia,
India etc.) 16.1％

North andCentral America 9.8％

Japan

53.8%

Others (Europe, Russia
Brazil etc.) 8.3％

Major Products and Services
Infrastructure

Functional Products
Optical fiber cables /Semiconductor optical devices /Metal communication /Fusion Splicer /Network equipment /CATV system / Radio products /Power transmission cable /Power transmission cable
accessories and installations,etc.

Automotive Products & Materials
Automotive components andwiring harness /Battery products /Copper and copper alloy
products (plates, strips, pipes,
rods, and wires) /Superconducting products /Special metal materials(Shapememory and superelastic alloys), etc.

4

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Cable conduits /Water-feeding pipe materials /Foam products /UV tapes for semiconductor
manufacturing / Heatsinks /Hard disc drive (HDD)
aluminum substrates /Electrodeposited copper foil,etc.

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

Global Network

United Kingdom
Italy
Netherlands
Denmark

As of March 31, 2017

Germany
Hungary
RussiaSpain

China
Hong Kong
TaiwanIndonesia
Singapore
ThailandMore than120

Philippines
Vietnam
Malaysia
Japan
India
Korea

Group
companies
in total

Europe10

MoroccoAsia

92

companies

North
Americacompanies

Africa6

1

companies

company

United States

Latin
America

11

companies

Argentina
Colombia
BrazilMexicoDomestic Locations (Furukawa Electric Co., Ltd.)As of March 31, 2017
Hokkaido Branch

Tohoku Branch
Nikko Works
Copper Foil Division

Okinawa
Sub Branch

Hokuriku
Sub Branch

Chugoku Branch

Kyushu Branch

Shikoku
Sub Branch

Head Office
Chiba Works,
Telecommunications & Energy Laboratories(Chiba, Hiratsuka)

Haneda Office
Chubu Branch
Mie Works
Kansai Branch
Copper Tube Division

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

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20175

Top Message

Contributing to the achievementof a sustainable society
and brightening the world

ProfileBorn in 1959, in Hokkaido. Specialized inmetallurgical engineering at the Graduate
School of Science and Engineering, Waseda
University. Entered the company in 1985.
After entry, gathered experience at the Nikko
Works over a period of 24 years, ranging fromresearch and development of copper alloys toa position as General Production Manager of
the Copper Rolling Plant. After this, served
successively as Production Development
Department General Manager, Magnet Wire
Division General Manager, Copper & High
Performance Material Products Division
General Manager, and Global Marketing Sales
Division General Manager. Has completed
numerous accomplishments including
structural reform of the Magnet Wire Divisionand early measures for recovery from snow
damage at the Nikko Works, and assumed theposition of President in April 2017.

President
Keiichi Kobayashi
Furukawa Electric Co., Ltd.

6FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

- You assumed the position of President in April of
this year, so please tell us your current viewpoints
on sustainability.
Since our company was established in 1884,
we have drawn on our material expertise in a wide
range of fields including copper and aluminum as amanufacturer of electric wire and non-ferrous metals.
Through continuous technological innovation we havecreated technologies and businesses required by oursociety, such as the construction of infrastructure toserve as the foundations of society and industry. The
Furukawa Group’s founder Ichibei Furukawa worked
diligently toward the goal of creating a new Japan withthe desire to “make Japan brighter”. We have in turninherited this view, holding a strong sense of duty andbroadened outlook now with the conviction to “makethe world brighter”. Our Group has a responsibility
to make contributions to all of our stakeholders
while continuing to pursue robust business activities
and create profits, as well as to help in achieving asustainable society by supporting efforts to resolve
various issues with our businesses and technology.
Deploying its businesses on a worldwide scale,
our Group constantly takes a globally-oriented
approach to the resolution of problems to achievesustainability, and to the contributions we provide to
our stakeholders.

- Since your new medium-term management plan
has started from the previous fiscal year and is
now underway, please tell us about your overall
initiatives for the plan, including your policies forthis fiscal year.
Our “Furukawa G Plan 2020: Delivering Sustained
Profitable Growth” medium-term management
plan, which began from the previous fiscal year,
includes three points positioned as its main initiatives:“Strengthen and reform businesses”, “Expand sales
in the global market”, and “Step up efforts to tap into
new markets”. I will take the lead and carry out thesepoints to completion myself, in order to achieve its
objectives so that the plan’s path of growth will beestablished. We will also accelerate our reforms inselling styles, manufacturing styles, and work styles,
to strengthen our Group’s financial base so that wecan provide even further reliability in meeting the
expectations of our stakeholders including all of ourshareholders and bring peace of mind for them. In
this fiscal year, the second year of the plan, we areproceeding with five priority initiatives: 1. Thoroughly
implement “safety first” and compliance; 2. Create
new values together with our customers; 3. Achieve
highly competitive manufacturing; 4. Continually
undertake challenges for new products, newtechnology, and new manufacturing methods; and 5.
Develop human resources to lead the next generation.
Among these, we are placing the highest emphasis
on “safety first” and “thorough implementation ofcompliance”, the foremost prerequisites for ourbusiness activities. While proceeding with intensive
initiatives to develop personnel and environments withthe goal of zero accidents, we will continue to provide
ongoing education for thorough implementation ofcompliance.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20177

- As you move forward with your medium-term
management plan, what types of initiatives are you
engaging in to contribute to the achievement of asustainable society?
As our Group proceeds with the three main
initiatives that were mentioned previously: “Strengthen
and reform businesses”, “Expand sales in the
global market”, and “Step up efforts to tap into
new markets”, we are deploying infrastructurebusinesses to protect the environment, support life,and sustain lifestyles on a global scale. For example,
as signature products which can contribute to theprevention of global warming, we have developed
aluminum wire harnesses and lead battery status
detection sensors, which can help to achieve higher
automobile fuel efficiency for reducing CO2 emissions.
As representative products which can contribute torecycling, we have developed recycled resin “Green
Troughs” which use waste plastic as their primary raw
material, and optical fiber cables whose structures are
suited to recycling. We are also working to support thefoundations of our continually-progressing advanced
information society with products to sustain its smart
infrastructure. These include riser cables for offshore
floating wind power generation, superconducting
magnet which support superconducting flywheel
power storage systems, and active optical products
used in backbone systems for telecommunication
involving the rapidly-increasing amounts of dataassociated with the spread of IoT. In addition,
many of our Group’s products are making valuable
contributions to the achievement of a sustainable
society, and we are furthermore focusing on new
product development with great consideration for thenatural environment.

8

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

- What points are you strengthening in particular,
with regards to the management infrastructure
which supports your business activities?
Since FY2015, we have started “Work Style
Reform” activities. We are proceeding with changes to
our working styles and to our organizational culture,
which include environmental arrangements such as
the introduction of a telework system, and are striving
to achieve sustainable growth for the company while
also enriching the lives of our individual employees.
Our Group has declared its management philosophy
to be: “Nurture human resources at every level, sothat we can become a more diverse and creative
organization”. We believe it is essential to build
environments and cultures where diverse humanresources can flourish while proceeding with Group
Global management, and we have been deploying
measures for diversity promotion for some time.
Looking next at corporate gover nance, we
continuously improve operation of board meeting byconducting questionnaires to all members of Board
and Audit & Supervisory Board on evaluations for
improving the effectiveness of Board. We are also
engaging in institutional design to reach the ideal stateof our company, from the perspective of governancewhich balances offense and defense. Additionally,
we are striving for instilling our Group philosophies(Corporate Philosophy, Management Philosophy,
Group Credo) in all employee in our Group andfor developing human resources able to act while
upholding our common Group values.

- What types of initiatives are you promoting forenvironmental conservation?
As our Group Global management has progressedsince F Y 2013, we ha v e proceeded with the
combination and reorganization of our manufacturingbases and have improved the efficiency of our energy
usage, steadily reducing the amount of CO2 emissions
during our production. We have also utilized thematerial expertise that is a particular strength of ourcompany to reduce CO2 emissions even at the stages
at which our products are used, making contributions
through material supplies of rectangular magnet
wire for hybrid vehicle motors and the previouslymentioned wire harnesses for automobiles. From
here on, we will expand our product lines with highenvironmental contributions, including heat-resistantproducts and lighter products based on oxygen-freecopper and resin technology. Our Group company
Furukawa Nikko Power Generation Inc. is carrying
out hydroelectric power generation with zero CO2emissions, with the resulting augmented power
generation capability contributing to an increased
supply of renewable energy. Our Group is also
continuing its efforts to answer social demands,
actively releasing environmental data and raising ourtransparency and reliability through certification by
third-party certifying bodies.

- Lastly, please give a final message to the readersof this report.
Our Group is deploying its business activities basedon the relationships of trust we have with all of ourvarious stakeholders, including our shareholders
and customers. Through this Sustainability Report,
we hope to provide a greater understanding of
our activities and to additionally deepen the levelof communication between our stakeholders andour Group. Based on our Corporate Philosophy of“Drawing on more than a century of expertise in thedevelopment and fabrication of advanced materials,
we will contribute to the realization of a sustainable
society through continuous technological innovation”,
we will bring out the further potential of our Group foreven stronger advancement of our business activities,
and we intend to continue being a company whose
existence is essential to our society.
We hope to be able to receive your further
cooperation and support for our Group from here on.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20179

Special Feature

1 OFS Activities,
Our North American Hub
The Global Contributions of Fiber Optics
Corporate Profile
OFS has one of the longest and most respectable corporate
lineages in American business going back to Alexander Graham
Bell and including the fertile minds of AT&T, Western Electric,
Bell Labs and a rich history of industry-changing technologies.
OFS holds hundreds of patents in fiber and cable technologies
and is responsible for developments as fundamental to the fiber
optic industry as the development of the Erbium-doped fiber
amplifiers (EDFA), totally gel-free cable structures, Polarization
mode dispersion (PMD) mitigation techniques, and Zero Water
Peak (ZWP) fibers. In 2001, OFS became a member of the

Furukawa Group, and with regular collaboration between
Furukawa Electric Japan and FEL in Brazil, supplies the largest
and most technologically advanced telecommunications
operators in the world.
OFS recently won the Technology and Engineering Emmy®
Award sponsored by the Academy of Television and Arts andSciences of America for contributions toward the “Pioneering
Invention and Development of Optical Fiber Cable.”(November 2016)

Manufacturing Locations

Global Network
The OFS mission is to be thepremier global provider of added
value optical fiber based solutions.
OFS, headquartered in the UnitedStates, operates manufacturing,sales and research centers aroundthe world (see figure) including theconstruction of Furukawa Electric’s
first African factory in Morocco.

OFS

FEL

FEC

Brondby(Denmark)
Sturbridge
Somerset

Avon

OFS

Carrollton Norcross (U.S.A)

Augsburg(Germany)

Voronezh(Russia)

Tânger (Morocco)

FEC

Xi'an (China)
Suzuhou (China)
Verna (India)

Mie (Japan)

Samuit Prakarn(Thailand)

Palmyra(Colombia)
Tangerang(Indonesia)

Sorocaba
Curitiba (Brasil)

FEL

Berasategui(Argentina)

Fiber’s Contribution to
the World Today
Fiber optic networks have changed the world.
From global transoceanic ultra-high capacity routes
to fiber in the home, networks powered by OFS fiber,
cable, and components bring us closer together,every day. Today’s networks transfer the world’s
information, including voice, video, and data.
Previously impossible dreams, from remote surgery
to rich social networks, all travel around the world at
the speed of light. Today’s networks are just the
beginning. Tomorrow’s networks bring the promiseof even greater improvement to our lives, including
the Internet of things. For now and the future, OFS
networks will be there to carry the load.

10

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Business Overview
OFS is a world-leading designer,
manufacturer and provider of opticalfiber, fiber optic cable, connectivity,
FTTx and specialty optical fiber
solutions for Communications,
Medical, Industrial Networking,Sensing, Aerospace and Defense
industries.

Social Contribution
As global citizens, we value the opportunity tosupport the communities in which we reside.

For the past several years, OFS
employees have contributed soap,
toothpaste, and personal items toresidents of homeless shelters.

Hundreds of coats
are donated.
OFS employees donated thousandsof toys for children in need during theholiday season.

Over the past 8 years,
OFS employees havedonated more than 500
pints of blood.

OFS involvementin the local
community

OFS continues to support thedevelopment of next
generation talent by offeringsummer internships tostudents from local colleges/
universities. Students engage
in real work experience which
ma y include a s sis ting in
manufacturing operations,conducting equipment tests,
to supporting recruitment job
fairs. The success of theinternships has been
worthwhile as some of theinterns have become OFS
employees, working in theirchosen academic field ofstudy.

For the past six years OFS Denmark has worked with
the Vestegnen Job & Activity Center to provide
employment to disabled individuals. In 2012 OFS
Denmark was selected as the company of the year inBrØndby for its work in this area.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201711

Special Feature

2 Everyone working lively, continuing
to grow and being a proud
corporate group

Introduction of Diversity & Inclusion and Work Style Reform

At the Furukawa Electric Group, our aim is to continue growing
and creating new values, by allowing our diverse human resources
to feel a sense of work satisfaction and to be able to demonstrate
their individual strengths, while also exhibiting our total capability
with unified values and judgment standards according to theprinciple of “One Furukawa”. To accomplish this, we are engaging
in various initiatives so that each individual can take a leading rolein independently managing his or her own work-life balance, andcan successfully achieve both personal development and thegrowth of the organization and company.

“One Furukawa”
Activating diverse talent
Improving productivity
per hour

Improving job satisfaction& work styleCreating new value

Autonomous work-life
management

Wellness
promotion

Work
style
reformStrategic
human resource Diversity &development & inclusion
promotionutilizationGroupphilosophy
permeation

Human resources who embody Core Values and create the next generation

Diversity & inclusion
Although we have taken continuing actions toward arranging
better working conditions for women and promoting employee
work-life balance since the 2005 fiscal year, we are also
proceeding with a wide range of other measures to accelerate thecreation of working environments which can allow our diverse
human resources to be fully active. These measures include theestablishment of a Diversity Promotion Office in April 2014,activities to enhance the awareness of diversity and inclusion,
measures to promote the activity to promote women's careers,
and advancement of autonomous work-life management by
employees.
In September 2014, we began the “Furukawa ‘V’ Challenge!!”,the activity to promote women's careers. In tandem with other

Furukawa“V”Challenge !!
SloganChallenge to the Vital issues
by Viable approaches
to realize“Various”“Vivid”“Valuable”Work & Life !

Various
V

V
Valuable

Vivid
V

V
ViableV
Vital

At the “V Challenge!! Forum”: Report conference on networking activities(upper right) and scene from group work activities (lower right)

12

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

measures, we started networking activities in FY2015 for ourroughly 70 young female employees, including those in our Group
companies. The objective of these activities is to build new
networks among female employees that are not limited byorganization or job type through investigating issues andimprovement measures under the 4 themes of “balancing family
and work”, “forming careers”, “managing and creating time”, and“work style reform”. In July 2016, roughly 160 participants,
including executives and supervisors, gathered together for the “V
Challenge!! Forum”, where proposals and opinions werecommunicated from members to the top management on various
topics. A portion of the proposals from this event have been
incorporated into our initiatives as well.

Work style reform
Our company established a specialized organization for “workstyle reform” in May 2015 and began related initiatives with the aimof balancing sustainable corporate growth with the enhancement of
the individual lifestyles (lives) of our employees. We are promoting avariety of measures from both the perspectives of “reforming work
style”, with the objective of improving both productivity and job
satisfaction, and “reforming our organizational culture”, whose goals
are to reinforce the core values of our company Group: “innovation”,“ownership and speed”, and “collaboration”.
In January 2017, we introduced a “telework *1) system”. By
removing restrictions on work locations, this system will enable
employees to perform their conventional duties more efficiently andfocus on creative work. This is expected to bring about improved
productivity per hour and other enhancements to work quality andperformance. Furthermore, allowing work in hourly units at locations
outside of the company, such as in cases where employees cannot
perform work at specific times due to personal affairs, has the goalof improving work style and job satisfaction. This system functions
differently from the existing “home work system” (introduced in
FY2012) which is intended to support child care and nursing care, as
it is usable by anyone meeting certain conditions such as applicationof the flex-time system.
*1) Telework
A work format which uses telecommunications technology to remove
limitations on places and times for performing duties.
The term is formed from a combination of “tele” (“distant”) and “work”.

Sustainable growth of the company & enhancement of individual lifestyles (life)

Reforming organizational culture

Reforming work style●Dialogue and empathy●Sense of ownership●Innovation / challenge●Improve productivity per hour
●Improve creativity and added value●Autonomous Work-life management

Section Manager
sessions

Leader education

Enhancement of talks in the workplace
Permeation of “Ikuboss”

More efficient meetings

Simplification of
meeting materials

IT utilization

Business improvement /standardization

System and environment improvement for
flexible working styles (such as telework)

Voluntary activities of all divisions (department / section unit)“IkuBoss”: A boss (manager) who develops him/herself, employees working
under his/her jurisdiction, the organization, and society throughwork and personal life to produce outstanding results.

Feedback from
Telework
Rieko Tanaka(Production Control Section, Optical Fiber Production Department,
System User Mie
Works)In the past, I experienced a lot of stress from having to take a full day off forjust a 1-hour event at my child’s school, even though I had tasks that needed tobe completed within the week. Telework lets me effectively use the time for both
work and my family in total, letting me do my work comfortably and withoutworry. I can also concentrate on tasks such as summarizing financial settlement
data or preparing reports more fully than at my office, so I can finish them more
quickly. Within the rules for telework, such as indicating work content in advance,
reporting on output, and sharing information while using the system, are followed
and people use it properly with consideration for each other, I believe it can help
to enhance the overall output of the workplace. It has also given me the desire to
expand the range of my own duties.

“I hope we can help each other out at work,and use telework to achieve even greater
results”, says Ms. Tanaka (left).

Initiatives of Group Companies
Furukawa Automotive Systems Inc.
At Furukawa Automotive Systems, numerical goals to bereached by the year 2025 have been set and a variety of measures
are being implemented to promote women’s careers, so thatfemale employees can be enthusiastic and highly motivated intheir work while balancing their careers with important life events.
In FY2016, we implemented activities to encourage child careleave taken by male employees. The results of these measures
have been highly praised, allowing us to obtain the “Platinum
Kurumin” certification mark, the highest rank granted tocompanies supporting the development of our next generation.
We are also currently planning training and other activities to raise
the awareness of managers and women themselves.
Furthermore, we are implementing
diverse initiatives for “work style reform”.
We are re-examining the orderliness of ourwork operations and our rules on acompany-wide level, taking quick andtimely action for reforming work styleacross the entire company. Examples ofthese changes include standardizing theformat of meeting materials to 1s h e e t o f A 3 - s i z e p a p e r,
conducting “stand-up meetings”
which are held with participants
standing up instead of sitting,and actively using Skype *2) forconferencing. Actions are being
taken to change the mindset of
employees by thoroughly
enforcing steps throughout thecompany such as designation of
every Wednesday and Friday as Scene during stand-up meetingdays for leaving work at set
times, and patrols conducted by our President himself. As a result,the monthly average number of overtime hours per person has
been reduced by 20% during the 2-year period from FY2013 toFY2015.
*2) Skype conferences
Web-based conferences using communication systems shared across the Group.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201713

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

（Billions of yen）

900

924.7

931.8

867.8

874.9

843.3

30

600

20

300

10

0

27.1

25.5
17.8

17.9

0
2013/3

2014/3

2015/3

2016/32017/3■ Operating income (Ratio to net sales)

2013/3

2014/3

2015/3

2016/32017/3■ Ordinary income（Billions of yen）

（％）

5

40
4.6

4
3

3.1

2.7

2

2.1

1.9

2013/3

2014/3

2015/3

36.0

30

25.5
17.6

20

18.6

18.7

2015/3

2016/3

10

1
0

38.6

40

1,200

2016/32017/30

2013/3

2014/3■ Net income■ Net income per common share（Billions of yen）

（Yen）

20

17.6

2017/3300
249.17

15
200
10.0

10
5
0

141.74

7.4
5.6

3.6

2013/379.44

100

104.1850.66

2014/3

2015/3

2016/32017/30
2013/3

2014/3

2015/3

2016/32017/3* We changed the number of shares in a unit of the company’s ordinary
shares from the current 1,000 shares to 100 shares with an effective date ofOctober 1, 2016.
Assuming that similar stock consolidation took place, we have calculated
figures before the fiscal year ended March 2016.

■ Return on equity■ Cash flows（Billions of yen）

（％）

75

15

54.9

9.3

10

5

2.3

3.3

4.0

2014/3

2015/3

2016/32017/3

－75

18.0

10.0

1.9

－21.4
－23.5

－25
－50

43.5 40.4

18.9

0

5.5

0
2013/3

25

41.6

41.5

50

－44.9

－40.3

2013/3

2014/3

2015/3－36.4
2016/3

Cash flows from operating activities
Cash flows from investment activities
Free cash flows

14

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

4.0

2017/3

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

30,00027,760

North/SouthAmerica
10,89929,66527,85325,000

As of March 31, 2017

29,724
Europe, other
555
Japan
11,07620,00015,00011,076

10,702
10,00010,830052,254

7,179

10,469

5,000

Total

10,899
9,172

7,900

462 493 520 555

2013 2014 2015 20162013 2014 2015 20162013 2014 2015 20162013 2014 2015 2016

Japan

Asia

North/SouthAmerica

Europe,other

Gender ratio of employees (Furukawa Electric)

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

5000

1000

Male
Female

4000

283
8％

8％

3000

2000

275

3,154
3,307

8％

92％

700

91％

97％

97％

3.18

3％

3

3％

3％

828

812

911

844
97％

2013

2014

2015

0

2016 (FY)

97％

1
0

2013

2014

Environmentally friendly products as a percentage of sales

2015

2016 (FY)

（％）

120

50

100

40

80

30

60

20

40

10

20

0
(FY)

0

100
80
60

91

85
24.7

40
20
0

24.5

17

25

2012

2013

43.4
97

48.3
106

47.4
112

30.6

30.5

75

83

24.4
35
2014

2015

2016

1.79

1.48
1.16
1.00

1.35

1.09
0.52

2012 2013 2014 2015 2016 (FY)2012 2013 2014 2015 2016

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

42.6

1.68

CO2 emissions

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

41.6

2.10

2

92％
0

Male
Female

4

23

3％

800

2,976 3,338

92％

5

26
22

23

9％

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

Male
Female

900

313

281

Asia
29,724(FY)(104 tons-CO2e)

41.8

43.2

45.2

45.6

43.4

15.5

16.5

16.2

13.2

14.0

24.9

24.7

21.8

21.9

21.7

2012

2013

2014

2015

2016

(FY)

(note) For the overseas CO2 emission coefficient, the coefficient for each country
according to the IEA (International Energy Agency) is used for purchased
electricity, while the Japanese emission coefficient is used otherwise.

Total amount of waste matter generated

Energy consumption(1,000 kℓ)

Group companies in Japan
Furukawa ElectricGroup companies overseas

500

80

400
300

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

60

184

194

201

210

31

207

38

40
200
100
0

76

76

74

62

64

149

137

119

126

128

2012

2013

2014

2015

2016 (FY)

20

0

23

18

18

34

34

34

34

33

2012

2013

2014

2015

2016 (FY)(note) Valuable resources are included in total waste generated forJapan only.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201715

Business Report
Percentage of net sales by segment (As of March 2017)
Communication Solution

Service and Developments, etc.

5.5 %

49.7 Billion yen

18.7 %

168.5 Billion yen
Functional Products

14.6 %
131.5 Billion yen

Energy Infrastructure

Total

10.6 %

843.3

95.3 Billion yen(note)

Billion yen

Electronics
Component Material

Automotive Products& Batteries

25.8 %
232.1 Billion yen

24.8 %

223.4 Billion yen(note) Figures excludes intersegment transactions■ Net sales
Infrastructure
Communication Solution
Energy Infrastructure
Automotive Products & Materials
Automotive Products & Batteries
Electronics Component Material
Functional Products
Service and Developments, etc.
Eliminations
Total(Billion yen)

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

―
―
―
―
―
―
―
―
―
924.7

―
―
―
―
―
―
―
―
―
931.8

―
―
―
―
―
―
―
―
―
867.8

252.7
159.1
93.5
491.1
234.1
257.0
136.3
51.5

263.8
168.5
95.3
455.5
223.4
232.1
131.5
49.7

－ 56.7874.9－ 57.0843.3

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

―
―
―
―
―
―
―
―
―

―
―
―
―
―
―
―
―
―

―
―
―
―
―
―
―
―
―

7.7
8.0

14.3
14.2
0.1
12.8
10.1
2.7
11.7

■ Operating income
Infrastructure
Communication Solution
Energy Infrastructure
Automotive Products & Materials
Automotive Products & Batteries
Electronics Component Material
Functional Products
Service and Developments, etc.
Eliminations
Total(Billion yen)

25.5

17.9

－ 0.3
10.5
8.0
2.4
8.5
0.4
0.1
27.1

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

―
―
―
―
―
―
―
―
―
1.9%

―
―
―
―
―
―
―
―
―
2.7%

―
―
―
―
―
―
―
―
―
2.1%

3.1%
5.0%

5.4%
8.4%
0.2%
2.8%
4.5%
1.2%
8.9%

17.8

－ 0.1
－0
38.6

■ Operating income (Ratio to net sales)
Infrastructure
Communication Solution
Energy Infrastructure
Automotive Products & Materials
Automotive Products & Batteries
Electronics Component Material
Functional Products
Service and Developments, etc.
Eliminations
Total*We have changed the category of reporting segments since fiscal 2016.

16

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

－ 0.3%
2.1%
3.4%
1.0%
6.2%
0.8%
－ 0.1%
3.1%－ 0.3%
0.1%
4.6%

Business Report

Communication Solution
Business
divisions

Optical Fiber and Cable Products, FITEL Products
Broadband Solutions■ Fiscal 2016 Settlement of Accounts
Consolidated sales
168.5 billion yen (5.9% up year-on-year)

Fiscal 2016 Main Topics
Nov.

▶O FS Receives Emmy Award for the“Pioneering Invention and Deployment ofFiber Optic Cable”

Dec.

▶N
 otice of Joint Incorporation-Type
Company Split with NTT Electronics
Corporation

Mar.

▶S
 ampling of Narrow Linewidth & High
Output Power Micro ITLA for beyond100Gbps optical digital coherent
transmission

Consolidated operational profit
14.2 billion yen (78.0% up year-on-year)

Based on high demand for optical fiber cables
centered in Europe, America, and China, pricelevels for our Communications Solutions businesshave taken a favorable turn, and sales of lowtransmission loss optical fiber for submarine cables,
a value-added product, have increased. Sales ofdigital coherent related products have also shownsteadily positive performance.
In April of this year, we established an opticalsemiconductor device manufacturing company(60% capital investment ratio by our company) anda planar light wave circuit product manufacturing
company (20% capital investment ratio by ourcompany) through a joint venture with NTT
Electronics Corporation. By creating combinationsof technology with individual characteristics andefficiently distributing management resources, wewill build production systems able to respond toincreases in demand for optical components, andraise our profitability.
Net sales(Billions of yen)(Billions of yen)

200
200
150
150

159.1
159.1

168.5
168.5
Narrow Linewidth/High Output Micro ITLA

100
100
50
50
0
0

2015
2015

2016
2016

(FY)
(FY)

Operating income(Billions of yen)(Billions of yen)

14.2
14.2

15
15
10
10

8.0
8.0

5
5
0
0

2015
2015

2016
2016

(FY)
(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201717

Energy Infrastructure
Business
divisionsPower Cable, Industrial Cable & Power Cable Accessories■ Fiscal 2016 Settlement of Accounts
Consolidated sales
95.3 billion yen (1.8% up year-on-year)

Fiscal 2016 Main Topics
Jul.

Consolidated operational profit
0.1 billion yen (¥0.4 billion Improvement year-on-year)

In October of last year, our Energy Infrastructurebusiness received a transfer of the domestic
Japanese divisions for the underground powertransmission line and submarine powertransmission line businesses from VISCAS
Corporation, a joint corporation with Fujikura Ltd.
While this has led to an increase in sales, profits
were subjected to some pressure from thetemporary generation of business integration
expenses and a drop in demand for powertransmission and distribution components intended
for domestic power companies.
By operating these divisions in unison with overseas
divisions accepted from the same company in Aprilof the year before last, we will accelerate ouractivities to secure projects in ultra-high voltage
power businesses both domestically and overseas.

▶F urukawa Electric Receives an Order for
a Very Large Scale Ultra-high Voltage
Power Cable Laying Project in Singapore

Laying site of ultra-high voltage power cables▶F irst Ultralight Low Voltage Branch
Aluminum Power Cable Supplied

Net sales(Billions of yen)(Billions of yen)

100
100

93.5
93.5

95.3
95.3
Ultralight Hybrid BH Cable installed

80
80
60
60

Oct.

40
40
20
20
0
0

2015
2015

2016
2016

(FY)
(FY)

Operating income(Billions of yen)(Billions of yen)

1
1

0.5
0.5

0.1
0.1

0
0
-0.5
-0.5
-1
-1

18

-0.3
-0.3
2015
2015

2016
2016

(FY)
(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

 urukawa Electric Co., Ltd. acquired the▶Funderground undersea powertransmission line business of VISCAS
Corporation, a joint venture company
formed with Fujikura Ltd.

Business Report

Automotive Products & Batteries
Business
divisions

Automotive Products & Batteries■ Fiscal 2016 Settlement of Accounts
Consolidated sales
223.4 billion yen (4.6% down year-on-year)
Consolidated operational profit
10.1 billion yen (25.3% up year-on-year)

In our Automotive Products business, while
domestic sales of wire harnesses were sluggish, theeffects of production efficiency improvement
activities, executed from the previous fiscal year inlocations such as our manufacturing bases in
Mexico, could be seen.
Management companies engaged in design andsales in China and Thailand will promote sales
expansion in China and ASEAN regions, while
efforts will be made to raise profitability by
optimizing wire harness production systems inindividual regions.

Fiscal 2016 Main Topics
Jan.

▶N ew Vehicle-mounted Perimeter
Monitoring Radar with the World's Most
Advanced Detection Performance hasEntered Mass Production-E xpected to significantly contribute to making
future automatic operating systems –Perimeter Monitoring Radar

This radar uses the pulse method to accurately andsimultaneously detect vehicles, bicycles, pedestrians,
and other obstacles.

Net sales(Billions of yen)(Billions of yen)

250
250

234.1
234.1

223.4
223.4

200
200

Proximity detection driving a car in reverse

150
150
100
100
50
50
0
0

2015
2015

2016
2016

(FY)
(FY)

Blind spot detection

Operating income

Lane changing support(Billions of yen)(Billions of yen)

12
12
10
10
8
8
6
6
4
4
2
2
0
0

8.0
8.0

2015
2015

10.1
10.1

2016
2016

(FY)
(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201719

Electronics Component Material
Business
divisionsElectric Conductor, Magnet Wire,
Copper & High Performance Material Products, Copper Tube

■ Fiscal 2016 Settlement of Accounts
Consolidated sales
232.1 billion yen (9.7% down year-on-year)
Consolidated operational profit
2.7 billion yen (12.1% up year-on-year)

In our Copper & High Performance Material Products
business, the sales quantities of wrought copper
products have recovered to the level they were at
before the snow damage which occurred at our Nikko
Works in February 2014. However, factors including a
reduction in net sales due to the effects of a decline incopper base metal prices have caused temporary
increases in the development costs of some products.
In our Magnet Wire business, we carried out a joint
venture with the Superior Essex Inc. Group of the
U.S.A. in March of this year, allowing us to establish amanufacturing and sales company in Germany (49%
capital investment ratio by our company) for highvoltage resistant rectangular magnet wire used in
automobile drive motors and other applications. We
will construct systems able to produce and sell theseproducts in areas of demand, and will enter theEuropean market for magnet wire used in EVs and
PHVs.

(Billions of yen)

300
300
200

Mar.

▶F
 urukawa Electric Develops Heatresistant Low Insertion Force Cu-Sn
Plating for Automobile Terminals

Heat-resistant Low Insertion Force Cu-Sn Plating▶S uperior Essex and Furukawa Complete
European Joint Venture Establishment▶F urukawa Electric is First in Japan to
Obtain JIS Standard Certification for“C1011” Oxygen-free Copper

Net sales(Billions of yen)

Fiscal 2016 Main Topics

257.0
257.0

232.1
232.1

200
100
100
0
0

2015

2016

(FY)

2015

2016

(FY)

Operatingincome(Billions of yen)
3

(Billions of yen)

3
2

2.4
2.4

2.7

C1011 coil

2.7

2
1
1
0
0

20

2015

2016

(FY)

2015

2016

(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Business Report

Functional Products
Business
divisions

AT & Functional Plastics, Thermal Management Solution & Products,
Memory Disk, Copper Foil

■ Fiscal 2016 Settlement of Accounts
Consolidated sales
131.5 billion yen (3.5% down year-on-year)
Consolidated operational profit
11.7 billion yen (38.1% up year-on-year)

Our AT & Functional Plastics business showed
increased sales of tape for semiconductor
production. Additionally, in the Copper Foil
business there were increases in demand andeffects of structural reforms such as the relocationof manufacturing to Taiwan, as well as an increasein sales of high value-added products such as foil
for high-frequency applications. In our ThermalManagement Solution & Products business,
however, demand for items including heatdissipation products for PCs was stagnant.
Regarding foam products, we are intending todevelop markets directed toward building
materials and automobiles in Europe and North
America, centered around our German subsidiary
Trocellen GmbH.

Fiscal 2016 Main Topics
Mar.

▶F urukawa Electric Develops New
Semiconductor Tape that Can
Significantly Improve Semiconductor
Quality-W ill begin mass production of materials forlaser grooving and plasma dicing –Semiconductor tape

Net sales(Billions of yen)

200

(Billions of yen)

200
150
150
100

136.3

131.5

136.3

131.5

2015

2016

(FY)

2015

2016

(FY)

100
50
50
0
0

Operatingincome(Billions of yen)
15

(Billions of yen)

11.7

15
10

8.5

10

8.5

11.7

5
5
0
0

2015

2016

(FY)

2015

2016

(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201721

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

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

Guideline on Corporate Governance

Overview of Corporate Governance System

Based on "Basic Views on Corporate Governance", we

We adopt the "Audit and Supervisory Board" type of

adopted "Guidelines on Corporate Governance" as agovernance organization under the Japanese Companies

policy for enhancing our corporate governance.

Act taking account of the importance of maintaining theindependence of the statutory audit function. And wehave a "Nominating/Compensation Committee", majority
members of which are outside directors to complement
oversight function of the board.

22

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Management

Corporate governance organization chart
Shareholders’ Meeting

Monitoring and Supervising

Appoints

Audits account

Board of Directors

Submits
proposals
andreports

Nominating /Compensation
Committee

CSR and Risk
Management Committee

Accounting
Auditors

Submits reports

12 Directors(5 outside directors including 3 independent directors)

Consults andCommits

Appoints

Appoints

Audit & Supervisory
Board

Submits reports,
attends meetings
and audits

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

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

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

Monitors

Business Operation

Appoints

Chairman, PresidentInternal Audits(Auditing
Department)

Submits reports

Corporate Divisions
Direction

Management
Committee

・Global Group Management Div.
・Strategy Div.
・Administration & CSR Div.

・Finance & Procurement Div.
・Research & Development Div.
・MONOZUKURI Innovation Div.

Provides support and guidance

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

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

Global Marketing
Sales Div.

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

Subsidiaries andaffiliated companies

As of June 22, 2017

Oversight and Supervising● Board of Directors
Given its fiduciary responsibility and accountability toshareholders, the board is responsible for promoting

board oversights and determines the matters listed
below:
1.

Determination of corporate governance-related matters;

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

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

3.	Setting capital allocation policy;
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201723

4.	Appointment and dismissal of executives including
representative director and corporate vicepolicy, plan and result of auditing to the board regularly.
Full-time auditors attend the meetings such aspresident, and determination of the remuneration

Management Committee which decides major businessof them (including delegating these to Nominating/matters, and they report information obtained from theseCompensation Committee);audit activities to the non-Full-time and outside auditors.

5.	Establishment of an internal control system relating

We strengthen our audit function by appointing an

to compliance and financial reporting and risk

assistant staff to the auditors who is dependent ofmanagement systems, and oversight of them;

management.

6.

Decision on important business matters;

7.	Others prescribed by the applicable laws andAt present, the Audit & Supervisory Board consists of 6
members (3 members are outside and independent).

regulations etc.
At present, the board consists of 12 directors with 5
outside directors including 3 independent directors.
Outside directors have rich management experiencesin financial institutions, trading companies or
manufacturing companies, or expertise in the field of legal

Business Operation
President is responsible for management of our wholebusiness operation as a chief executive under the board’s
oversight.
Our business consists of 14 business divisions, andor industrial governmental policy etc. The board respects

General Managers of each division are responsible for

their views and opinions based on their variety ofleading each business operation including subsidiaries

experiences in making its decision.

and affiliated companies management.

We also evaluate the effectiveness of our meetings ofWe also appoint General Managers of Communications

the Board of Directors on an annual basis, and release

Solutions Division, Energy Infrastructure Division andsummaries of the evaluation results on our company

Electronics Component Material Division in order to

website.

supervise closely related business divisions. Furthermore,
we appoint Advisors of Functional Components Businessin order to assist President’s supervising function over

● Nominating/Compensation Committee
We e s t a b l i s h t h e N o m i n a t i n g / C o m p e n s a t i o n
Committee.
The committee's aim is to enhance our corporateeach business operations and to plan integrated businessstrategy for each business sector.
In addition, we appoint General Manager of Global
Marketing Sales Division that are responsible for ourgovernance securing objectivity and transparency bygroup’s sales and marketing entirely, and Generaldeliberating on nomination and compensation forManagers of Corporate Divisions that are responsible fordirectors, etc., including the selection of candidates forplanning group strategy and assisting operation.

the position of our President and Chief Executive Officer.

These officers are members of the Management

The committee consists of 5 or more members, majority

Committee, which is the highest decision-making body ofof which shall be outside directors, appointed frombusiness operation.

directors by board resolution.
At present, the committee consists of 6 members (4outside directors).

Management Committee, held 3 times a monthbasically, deliberates and determines major operational
matters. Further, their business affairs and operation arequarterly reported to the Committee to foster common
understanding of company business among them and● Audit & Supervisory Board
Audit & Supervisory Board and each its member
auditor collect information about management understatutory investigation authority and report and express
their views to the board meetings and the managementfrom an independent and objective standpoint as afiduciary to shareholders.

24integrated business operation as a whole.
These business affairs and operation are also quarterly
reported to the board.

Process of Determining Officers’ Remuneration
and Avoiding Conflict of Interests
A t F u r u k a w a E l e c t r i c , t h e p o l i c y o n o ff i c e r s ’

Auditors ensure coordination with internal audit

remuneration and details of each officer's remuneration

department through regular meetings, and report theare determined by the Nominating/Compensation

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Management

Committee consisted the majority of the committee

management method in the “Basic Regulations on Risk

comprising outside directors, based on the delegation

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

established a system in which the CSR and Risk

and transparency of the decision-making process.

Management Committee, chaired by the President,

In addition, in the case where Directors conduct

grasps an overall picture of the risks associated with thetransactions involving a conflict of interests, they must be

business operations of Furukawa Electric Group andbased on approval at the Board of Directors’ meeting as

determines effective methods for evaluating andrequired by law.

managing these risks.

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

4) Information Management System
We appropriately manage and store records anddocuments related to important decisions, in compliancewith prevailing laws and internal rules. With respect to otherinformation related to our operations, the Information
Security Committee establishes uniform standards andoperates an information management system.
5) Group Company Management
In accordance with the “Regulations on Group

Reinforcing Internal Controls
Furukawa Electric establishes, develops and operates
its internal controls based on the following principles:Management Control”, administrative managers of individual
subsidiaries shall be appointed, and they shall require own
subsidiaries reporting subsidiaries’ business conditions on aregular basis, and offer management guidance tosubsidiaries. Predetermined matters shall require approval

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

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

6) Securing Appropriateness of Financial Reporting
Based on the “Basic Regulations on Risk Management
and Internal Control”, we will establish the “Furukawa
Electric Group Basic Philosophy for the development and2) Compliance Systemevaluation of an internal control system, to ensure theUpholding the basic philosophy of compliance withappropriateness of financial reporting (J-SOX Core

ethics and prevailing laws as laid out in the “Furukawa

Policies)”. At the same time, the system andElectric Group Philosophy” and the “Furukawa Electric

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

construction, development, operation, and monitoring.

assuming the highest responsibility, promote complianceactivities including in-house education and efforts toprevent and detect legal violations through our CSR and
Risk Management Committee, which is under theimmediate control of the Board of Directors, and theAdministration & CSR Division. We also have an Internal

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

Reporting System for the early detection and correctionof compliance violations, and establish a system not totreat the person unfavorably because of reporting.
3) Risk Management System
We have established our risk management system and
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201725

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

CORPORATEPHILOSOPHY

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

MANAGEMENTPHILOSOPHY

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

CREDO

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

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

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

26

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Management

The CSR Code of Conduct defines fundamental rules

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

employees to follow in conducting corporate activities

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

based on the Group philosophy and from theperspective of corporate social responsibility.
グループ外秘Internal use only for Furukawa Electric Group

CSR・コンプライアンス・
ハンドブック第5版

CSR Compliance Handbook
Guidance on
Furukawa Electric Group Philosophy
andFurukawa Electric Group CSR Code of Conduct
International version(Japanese)

Second edition(English)(Chinese)

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

Basic Approach

CSR Promotion Framework

In order to contribute to the realization of a truly rich

Furukawa Electric Group has established the CSR andand sustainable society, we need to understand the

Risk Management Committee, which comprisessocial responsibilities of Furukawa Electric Group andmembers of management, as the structure f or

implement policies in line with the Basic CSR Policy. We

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

activities so that each and every Group employee is able

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

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

Promotion
Framework

Board of Directors
Submit proposals and reports

President

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

Collaborate

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

Other corporate
divisions

Administration &CSR Division

Furukawa Electric Group Occupational
Health and Safety Committee

CSR Department

Monitoring

Collaborate

Each corporate
department

Promotion / Support

other

Business divisions (internal + Group companies)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201727

Stakeholder Relations
Environment

Customers

Furukawa Electric Group properly monitors
our business practices and endeavors toestablish structures for improving them evenmore, so as to steadily meet our

Localcommunities

Furukawa
ElectricGroup

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

Employees

Main Stakeholders

Main Responsibilities

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

Customers

Suppliers

Suppliers

Shareholders

Means of Communication

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

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

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

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

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

- Support
diverse workstyles and work/life balance

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

28

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Management

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

Achieved

FY2016
Targets

Develop a system for the
globalization of legal andcompliance functions
 xamination and implementation-Eof compliance education in
China and Southeast Asia

Partially achieved

Not achieved

FY2017
Results

Achievement

 onducted compliance education-Cfor group company staff in Thailand(Bangkok)Targets

Develop a system for the
globalization of legal andcompliance functions
 xamination and implementation-Eof compliance education inSoutheast Asia etc.

Expansion of the introductionof internal reporting systems tooverseas group companies
 ajor expansion in the scope-Mof companies where an internalreporting system has been
introduced, to include regions
such as China and SoutheastAsia xpanded the scope of companies in-E
China and Southeast Asian regions where
an internal reporting system has been
introduced, from 7 to 25 companies

Strengthening overseas risk
management-U nderstand and summarize anyrisks which could conceivably
impact business, and also
formulate policies to address
those risks
Expansion of the introductionof internal reporting systems tooverseas group companies

Strengthening the developmentof cyber security measures-D evelopment of measures inaccordance with the Ministry of
Economy, Trade and Industry’s“Cybersecurity Management
Guidelines”

Message from theGeneral Managers-F ormulated guidelines including measures
for initial response to cyber-attacks, andconducted related education (e-learning)for employees- I mprovement of the introduction
rate of internal reporting systems
in companies with consolidated
systems- Implemented risk analysis and otherprocedures related to cyber security risks,
based on guidelines from the Ministry of
Economy, Trade and Industry

Message from theGeneral Managers

Message from theGeneral Managers

CSR activities are important measures which
serve as the foundation for management.
We will provide thorough support so that theirmechanisms can function effectively.
Yasuhiro Yonezawa
General Manager, CSR Department,
Administration & CSR Division
With the management environment undergoing changes
day by day, it is becoming required for corporate activities
today to respond to its various changes while being awareof the relationships that exist with various stakeholders.
We are fully aware that under these circumstances, CSR
activities are extremely important measures that form thefoundation for Furukawa Electric Group to continue its

businesses. Based on our Group Philosophy, we have set
out a Basic Policy, Code of Conduct, and other materials
related to CSR, in addition to developing a variety ofrelated systems and mechanisms. We will continue tosupport improvements in the handling of operational
challenges regarding these mechanisms, so that they may
continue to function effectively in the future.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201729

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

Important Companywide Risks

materializes, the Group will establish Emergency Response• Compliance

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

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

them ahead of time. We also conduct regular exercises on• Information security

preparing initial action manuals, stockpiling necessary supplies,
and setting up communication structures and systems to confirm• Affiliated company controls

people's safety.

BCM (Business Continuity Management)[Business continuity ISO]
In order for ourcompany to meet theincreasing demandsof our stakeholders forbusiness continuity
activities, we are
actively proceeding
Accreditation for business
continuity ISO (ISO22301)

with the acquisition ofinternational

certifications for our business continuity management
systems (BCMS). Up to this point, our businesses for the“laser diode products business” (Chiba Works) and“copper wire products business” (Mie Works) havesuccessfully received BCMS ISO standard (ISO22301)
certification. In fiscal 2016, we aimed for additional
certification in new business areas and obtained ISO22301
certification for our magnet wire production division, whoseplant is the Furukawa Magnet Wire Mie Works. This plant
manufactures magnet wires used in motors, and this ISO
certification of this division has allowed us to establish a
uniform business continuity system from the upstream
process of the “manufacture of copper wire” to the“manufacture of magnet wire”, for our customers in areas
including automobiles and electrical industry fields.
[Emergency headquarters training]

30

Situation at Emergency Response Headquarters training workshop

with the training conditions covering a 3-day period startingfrom the day of the disaster. We held exercises in aworkshop format on the roles to be performed and actions
to be taken between the Site Response Headquarters andProduction Division of the disaster area, and the Emergency
Response Headquarters of our Head Office. Our President
gave the following comments: “Disasters can occur at any
time. That is why improving the speed and efficiency which
are used even in our everyday preparations is a highly
urgent issue”, and “The leadership capabilities of personnel
who are responsible for disaster sites are extremely
important. I would like such know-how to be accumulated
through OJT in order to strengthen this leadership”.
[Disaster headquarters training at the Head Office]As part of Disaster Headquarters training at the Head
Office, we continued with the training content held in fiscal
2015, in which employees actually walked home along theroutes indicated on the maps to be used in the event of adisaster. We had even more participants this time, in the

In our BCM training for fiscal 2016, we considered thesecond year of this training, with 4 routes organized

scenario of a large earthquake striking our Hiratsuka Works,

beginning from Marunouchi. Employees walked along

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Management

Disaster headquarters training at
the Head Office

Training on returning home by walking:(1) Leaving the office

Training on returning home by walking:(2) On the walking route

Training on returning home by walking:(3) Checkpoint

these routes over a roughly 2-hour distance whiletake appropriate response when suspicious e-mails haveconfirming high risk locations and potential evacuation

been received, and calling attention to such incidents. In

shelters. Participants shared opinions such as “When we

coordination with related departments, we will continue towalk for such a long distance, having to use the restroom

promote measures to reduce cyber-security risks, from thestarts to become a concern” and “Even though there areperspectives of both technical countermeasures andconvenience stores along the way, there are surprisingly

improving the awareness of individual employees.

few places where you can just take a short rest”.

Information Security
Information security is considered one of the highest-

Protection of Intellectual Property
Furukawa Electric conducts strategic and efficient
intellectual activities in line with our business andpriority risks the Group has to handle. Therefore wedevelopment strategies. Our activities for patent portfolio

promote various countermeasures through intergroupmanagement are underway as we proceed with thecollaboration by exchanging information among the related

strategic acquisition of intellectual property rights, whiledivisions, from the perspectives of protecting information

also taking into account multifaceted analysis of competitor

systems and intellectual property as well as information

trends. These activities have allowed us to receive “Topmanagement. We continue our efforts to prevent

100 Global Innovators” awards for fiscal 2014 and 2015,

information leaks by focusing on the management ofand have been given great international praise.

hardware (mainly mobile devices) taken outside the office

We are also striving to reduce intellectual property risks

and to manage IT assets through such measures as

by strengthening measures to prevent exposure ofsoftware license management. We provide Furukawa

technology at development and production sites, andElectric Group with educational materials and information

enhancing information integrity by introducing time stamp

on the revisions of information security-related laws such

systems. In addition, we are deploying Group Global

as the Act on Prohibition of Unauthorized Computermeasures which include both domestic and overseas

Access, the Unfair Competition Prevention Act and the Act

affiliated companies, such as systematically implementing

on the Protection of Personal Information. In our aim forintellectual property training, holding Group intellectual

ongoing improvement, we get feedback from divisions

property conferences twice a year, publishing periodical

promoting these activities.

newsletters on intellectual property risks, and providing

Damage caused by cyber-attacks is being reported withincreasing frequency around the world. In view of the many
corporations subjected to such damage even within
Japan, our company has organized guidelines to serve as
reminders for our employees, containing information onrecognition including the President’s Award to outstanding
innovations or intellectual property activities.

Challenges and Future Policy
Following our international business development, risks

initial response measures to be taken if cyber-attacks havethat Furukawa Electric Group faces are becoming more

occurred and key points for identifying suspicious e-mails.

diversified and complicated each year. We particularly

In continuation from our training conducted last year torecognize that risks inherent in overseas operations―prevent damage from fraudulent e-mails, we carried out

mainly in emerging countries―and risks from the supply

simulation training for targeted attack e-mails, with thechain standpoint are our top priority issues, and we will beobjectives of verifying the capability of our employees tostrengthening our countermeasures against them.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201731

Compliance
Basic Approach

Electric Group employees and take many opportunities

Furukawa Electric Group regards compliance as “notto make use of it. We conduct compliance education for

only observing laws and regulations, but also as acting in

employees at every level of the Company, from newaccordance with the values and ethics required of therecruits to directors. At the same time, we hold theme-

company and its employees as responsible members of

based group training and e-learning courses, andsociety”. Each and every employee is encouraged to

conduct groupwide compliance education.

perform day-to-day compliance activities in line with ourthree musts for compliance activities: to “be aware”,

Education Results (fiscal 2016)“speak” and “rectify”.

Course Name

Three Musts for Compliance Activities

Speak
Be awareHierarchybased
education(note 1)

Rectify
1) Be aware
・Is this in line with the philosophy and CSR
Code of Conduct?
・Is this an improper practice?
・Does this run counter to society's

Themespecificeducation

TargetParticipants

Training forexecutives

Newly appointed
executives

23

Training for
managers

Newly appointed
managers

51

Training for
managers
and assistantmanagers

Newly appointed
managers
and assistantmanagers

42

Training for new
employees

New employees

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

299

Subcontractor Law

670

Security trade control

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

requirements and expectations?
2) Speak・Do not neglect it.
・Talk about it openly.
・If still not sure, take it to your boss.

Initiatives in Compliance Months
Furukawa Electric Group has designated October and3) Rectify

November as Compliance Months, during which we

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

implement measures aimed at tackling the variety of・Always improve.

compliance issues faced by companies across our Group.
Principal Initiatives during Fiscal 2016 Compliance Months
Main Initiatives at Furukawa Electric

Training and Raising Awareness among
Employees
We conduct a host of training and awareness activities

1C onduct workplace self-checks according tosection-specific checklist<Section-Specific Checklist>
1) Anti- Monopoly Act, 2) Worker Dispatching Act

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

employees.

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

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

32

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

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

Management

Employee Compliance Awareness Surveys

Anti-Bribery

We h a v e b i a n n u a l l y c o n t i n u e d t o i m p l e m e n t

Furukawa Electric Group formulated the Furukawa Electriccompliance awareness surveys at Furukawa Electric andGroup Anti-Bribery Statement in April 2012. In December,affiliates in Japan. Designed to gauge employee

we published the Furukawa Electric Group Anti-Bribery

awareness and understanding of compliance, these

Guide, and we are promoting activities toward creating asurveys aim to encourage recognition of compliance.

groupwide bribery risk management system.

Feedback is given on the results of the survey to ourGroup companies and Furukawa Electric divisions, andthe results are used to make proposals for compliancemeasures at each organization. In fiscal 2016, weconducted compliance awareness survey from a view
point of understanding of CSR Code of Conduct.

Internal Reporting System
Furukawa Electric Group has introduced an internalreporting system to earlier detect and correct illegal acts.

Overseas compliance seminar
In fiscal 2014, we conduc ted group-t ype
compliance seminar taking account of local laws
and customs. In fiscal 2015, we held a seminar oncompetition law and anti-bribery regulation at China
and in fiscal 2016, about 40 staffs of local
companies, mainly Thais, attended lectures by alawyer in Thai and Japanese and took part indiscussions on compliance.

The Company has in place an internal reporting desk aswell as an external reporting desk that makes use ofoutside third-party institutions (the Furukawa ElectricGroup Hotline), both of which allow employees to makereports anonymously. An internal reporting secretariat

Challenges and Future Policy

manages the content of such reports stringently, taking

Regarding the various legal compliance measures weample care to prevent people making such reports fromhave taken to date, we recognize as a Group that oursuffering any negative impacts, looking into issues swiftly

task is to expand the scope of participation of Groupand taking appropriate action. In fiscal 2016, we newly

companies. To this end, we will try to raise compliance

set up external reporting desks for oversea affiliates. We

awareness by focusing on more effective education

started to set up from mainly China and Southeast Asia

content with a Group perspective and enhancing its

where many our Group companies were expanding theirglobal implementation system. We will also hold morebusiness.

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

Security Trade Control

under the slogan “Think and conduct compliance
together”.

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

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201733

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

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

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

President
Furukawa Electric Group
Quality Management Committee

Representative Quality
Management Meeting

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

Chair : General Manager of the
MONOZUKURI Innovation Division
Members :Quality Promotion Department
Divisional Representative Quality Management

General managers of each business division

Affiliated companies

Representative Quality Management
Divisional Quality Management Committees

Targets and Results (Quality)

Achieved
FY201634

Not achieved

FY2017

Targets

Results

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

 educe “failure costs” by 10%-Rfrom fiscal 2015

Partially achieved

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Achievement

Targets

Strengthening of fundamental
Quality Power educe “failure costs” by 10%- R
from fiscal 2016

Initiatives for Society

Efforts to Reduce Failure Costs

TOPICSThe Quality Strengthening Project activities started infiscal 2014 are team activities conducted on key themes
related to failure costs selected by divisions and the
Quality Promotion Department.
There were a total of 13 themes in fiscal 2016, with 20
events for executives held to promote activities.
At the end of the fiscal year, we also held a fact-finding
presentation event in Quality Strengthening Projects inorder to share examples of improvements within thewhole Group, including our affiliated companies.
As a result of theme activities for the “Quality
Strengthening Project”
as well as other theme
activities within businessdivisions, we were able
to achieve our targets
for reducing failure costs
in fiscal 2016.

A Space for Giving Birth to New Innovations

Since our establishment in 1884, Furukawa Electric has
produced a wide variety of innovations through continuous
technological reform, drawing on more than a century of expertisein the development and fabrication of advanced materials.
Our new “Fun Lab” has been set up for the further evolution
and acceleration of this background in innovation.
The logo starts with “F” for Furukawa and incorporates themeaning of creating innovation
by making the viewer imagine
fun future creation.
By creating open innovation
with guests who visit it(COMPREHENSION) throughmutual recognition of each other’s
strengths (COOPERATION) andsharing new senses of value
utilizing each other’s strengths( COLL ABOR ATION), we willcontinually create new
innovations to contribute to theachievement of a rich society.

URL → http://www.furukawa.co.jp/funlab/en/

Challenges and Future Policy

particularly necessary to further enhance design and

By deploying the procedures (concepts) of theme

development. Therefore, we will implement project

activities using “Quality Strengthening Project” measures

activities to improve process and competence for design

horizontally to other theme activities within businessand development, in addition to the past “Quality

divisions, we will be able to obtain even greater results.

Strengthening Project”.

Requests and demands from our customers havebecome extremely complex in recent times, and in order

We will move forward to achieve the next level of quality
through these two project activities.

to respond to them we have determined that it will be

Message from theGeneral Managers

Message from theGeneral Managers

Message from theGeneral Managers

To achieve “the next level of quality”, we will
strive to strengthen our design and development
processes even further.
Kazuhisa Kashihara
General Manager, Quality Promotion Department,
MONOZUKURI Innovation Division

In accordance with our basic policy on quality control, we
promote a continuous fact-based management cycle atevery stage from research and development to production,
sales, service, and administrative work, in every division,and at every level, thereby maintaining and improving
quality. To be able to create products that are attractive tocustomers, we make thorough improvement at every
process from product planning through to the point of sale.
Starting from fiscal 2017, we launched projects to improve
process and competence of design and development inaddition to the “Quality Strengthening Project” and willproceed with these two-pronged activities.
The “Quality Strengthening Project” activities will be
carried out with a focus on further expanding the results
which have been obtained up until fiscal 2016.
Project activities to improve process and competence ofdesign and development will have the objective ofimproving process for design and development in each
operational division, and improving the competence ofdesigners and developers.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201735

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

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

Conducting Training on Subcontracting Transactions
In order to forge sound relationships with businessexperiences during the suspended production thatpartners through fair transactions that comply with rules

resulted from snow damage at Our Nikko Works, weand regulations, Furukawa Electric Group provides

requested ongoing cooperation from certain businesstraining for employees on subcontracting transactions. In

partners on business continuity and stable supply

fiscal 2016, in addition to continuing with the courses weinitiatives.

have conducted to date, we sought to ensure thoroughawareness of the content of the act against delay inPayment of Subcontract Proceeds, Etc., toPromoting CSR in procurement activities
Based on our CSR Deployment Guideline for Business
Partners, we engage in procurement activities with “fullSubcontractors.

Partners Meeting and Partners Evaluation Scheme

legal compliance and fair trading practices” and“consideration for human rights, safety and the

Furukawa Electric

environment”. We are also continually providing

seeks to deepen

encouragement at partners meeting by explaining theawareness among ourstate of our efforts to our trade partners, asking for theirbusiness partners

cooperation with our activities, and so on.

through regularly held
Partners Meeting, whereSupply chain BCM (Business Continuity Management)

we explain the state of

Furukawa Electric conducts regular questionnaire

the Company, our procurement policy and individual

surveys on its main partners about their BCM measures.

company management strategies. For fiscal 2016, thisIn fiscal 2016, we held questionnaire surveys for main

meeting was held in June and was attended by 57 main

partners and placed the results we received from ourbusiness partners.

business partners onto a database. In this way, we have

We also evaluate main business partners on the basisof quality, technology, price, delivery system, degree ofsocial contribution and financial condition, and then holdmeetings to provide feedback on our findings. In addition,36

based on the results of the assessment and our own

become able to quickly identify which partners are mostly
likely to be affected during a natural disaster.

Conflict Minerals (note)

we discuss the results of our evaluations with them toRegarding the handling of conflict minerals, ourmore closely align our awareness of procurement

approach to responsible mineral procurement has been

activities.

to comply with the code of conduct of the EICC

In fiscal 2016, we evaluated some 196 business(Electronics Industry Citizenship Coalition), including

partners and provided feedback to them. Furthermore,setting a Group policy and informing other GroupFURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Initiatives for Society

companies and partners.

Challenges and Future Policy

In fiscal 2016, in addition to carrying out ongoingsurvey into the usage of conflict metals in mainstay

We want to fully grasp the state of our CSR activities

products at Furukawa Electric and our Group companies,

along the value chain by regularly asking our partners to

we have actively promoted procurement from smelters

complete a questionnaire on their understanding of ourthat have received accreditation under the EICC’s

CSR Deployment Guideline for Business Partners.
We w i l l a l s o s e e k t o d e e p e n B C M b y g i v i n g

conflict-Free Smelter Program.
G o i n g f o r w a rd, i n a d d i t i o n t o re q u e s t i n g t h eencouragement to partners based on the results of ourcooperation of Group companies and our business

BCM questionnaire and manufacturing site survey, withpartners in the responsible sourcing of minerals, we will

the aim of improving crisis response levels along thework with the Japan Electronics and Information

entire value chain. Internally, during group exercise held

Industries Association (JEITA), an industry organization,at the Procurement Department, we have held training

on initiatives targeting the responsible sourcing ofand seminars on the handling of BCM in order to raiseminerals.

awareness among members of the department.

(note) D efined as minerals (tantalum, tin, gold, tungsten or theirderivatives) that originate in or near the Democratic Republicof the Congo that may help to finance armed conflict.

Targets and Results (Procurement)

Achieved

Partially achieved

FY2016
Targets

Strengthen strategic relationships withpartners
 ngoing implementation of the partner-O
assessment system and utilization of
feedback discussions-P romote awareness of CSR Deployment
Guidelines among partners-E xamination and implementation of
measures to strengthen the value chain byutilizing BCM questionnaire surveys and site
surveys results-C arry out conflict minerals survey (survey
for the purposes of updating data)

Message from theGeneral Managers

Not achieved

FY2017
Results

Achievement

 onducted partner evaluations-Cof about 196 main partnercompanies held partners meeting- Introduce our CSR Deployment
Guideline by procurement system
online eviewed and increased the-Rnumber of procurement points(and sometimes recommended
inventory) for principle products- A conflict materials surveys (datarenewal surveys) was done

Targets

Strengthen strategic
relationships with partners
 ontinue partner evaluation-Csystem ontinue to inform partners about-C
CSR Implementation Deployment
Guidelines-C ommunication with partners
with a view to strengthening theValue chain based on the resultsof BCM questionnaire surveys-C onflict mineral survey (data
update survey)

Message from theGeneral Managers

Message from theGeneral Managers

We will strive to achieve mutual understanding
with our business partners and take further steps
to strengthen our supply chain.
Kazuhiro Takamatsu
General Manager, Procurement Department, Finance& Procurement Division
Ever since its foundation, Furukawa Electric has stayed
in business by partners with social infrastructure andcontributing to society as a partner of products. However,
our success is not just the result of hard works at ourcompany. It is also thanks to the steady delivery by ourpartners of the raw materials we use to create products.
In the future, our business environment is likely tochange even more rapidly. Under these circumstances, wewill need to strengthen our value chains further in order tocontinue contributing to society. We intend to use apartners meeting and partners assessments to improvethe mutual understanding we have with our partners, andto continue contributing to society through measures suchas the promotion of CSR activities and strengthening ofBCM.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201737

Relations with Shareholders
Information Disclosure Policy and IR Framework
Furukawa Electric Group Basic Policy on CSR requiresthat the Group seeks to improve upon the sound, friendly
relationships we maintain with all of our stakeholders. Our
Own Regulations on the Timely Disclosure of Corporate
Information meanwhile set out a framework for the disclosureof appropriate information at the appropriate time.
Based on this policy, all IR activities are conducted by

Automotive components plant

the Investor & Public Relations Department and overseenby the director in charge of IR, who is General Managerof the Finance & Procurement Division.

Returning Profits to Shareholders
Furukawa Electric aims for management emphasizing

Relations with Institutional Investors and Securities Analysts

capital efficiency and has made the basic policy of its

In addition to holding management briefings (covering

capitalization strategy to balance strategic investment forinterim and year-end results and mid-term plans whengrowth, the cultivation of the next generation of new

announced) for institutional investors and securities analysts,

businesses, the improvement of the financial structure

we actively encourage communication all year round.

and returns to shareholders.
Under this basic policy, in the “Furukawa G Plan 2020,”
the new medium-term management plan that started
from fiscal year 2016, we will apply management
resources prioritizing facility investment and R&D for profit
expansion in focus business areas (infrastructure /automobile markets) and the creation of new businesses,
strengthen the earning capacity of our group and improve
its financial structure, all of which will support theBriefing for institutional investors

Relations with Individual Investors
In September 2016, we held our 9th plant tour forindividual investors. Visitors were selected by lottery fromamong those who responded to an open invitation, with
50 people invited to attend out of the 127 who responded.
During the tour, we offered participants a number ofopportunities to get a feel for Furukawa Electric. We
introduced our production processes for optical fiber
cables and automotive components in Mie Works.

sustained growth of our group. With regard to returns toshareholders, we also positions the continuation of stabledividends as one of the most important issues ofmanagement.
We implemented an increase for the term-end dividendof the term ended March 2017, to increase the return ofprofits to shareholders as mentioned above inconsideration of factors such as the results for the term.
The term-end dividend was provided at a price of 55 yen
per share. We have carried out a reverse stock split at aratio of 1 share for every 10 ordinary shares with aneffective date of October 1, 2016, and this term-end
dividend based on conversion after the reverse stock split
has increased by 15 yen compared to the previous term.
With regard to dividends for the term ending March
2018, we are planning a dividend of 60 yen per share, in
overall consideration of an anticipated results forecast
higher than the previous term, future businessdevelopment, and the return of profits to shareholders.

Optical fiber plant

38

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Initiatives for Society

Stock Information and Dividends
株式・配当情報
General stock information (as of March31, 2017)

Distribution of ordinary stock among shareholders

Stock Code on theTokyo Stock Exchange
Stock Exchange Listings
Number of sharesauthorizedCommon stock issued
Minimum trading units
Shareholder register
agent
Fiscal year
Shareholders’ meeting(as of March 31, 2017)

5801

Domestic companies, others

Tokyo Stock Exchange, First Section
Common Stock

Treasury stock

6.86％
48,851,021 shares

250,000,000 shares

0.07％
48,062 shares

Individuals,
othersCommon Stock
70,666,917 shares
100 shares *2-1 Yaesu 1-chome, Chuo-ku, Tokyo, Japan
Mizuho Trust & Banking Co., Ltd.
From April 1 to March 31
June each year

Total number ofshares issued andoutstanding

21.70％
15,333,730 shares

70,666,917

41.62％
29,413,607 shares

Securities
companies

Foreign corporations
27.57％
19,480,698 shares*W e changed the number of shares in a unit of the company’s ordinary shares from thecurrent 1,000 shares to 100 shares with an effective date of October 1, 2016.

Financial
Institutions

2.18％
1,539,799 shares

Cash dividends per common share (including forecast)Fiscal year
Interim dividend (Yen)
Year-end dividend (Yen)
Total dividend (Yen)

2014/30.0
3.0
3.0

2015/30.0
3.0
3.0

2016/30.0
4.0
4.0

2017/30.0
55 (note)
44 (note)

2018/30.0
60 (note)
60 (note)(note) W
 e have carried out a reverse stock split at a ratio of 1 share for every 10 ordinary shares with an effective date of October 1, 2016. The amounts if
the reverse stock split is not conducted will be, respectively: 55 yen → 5.5 yen, and 60 yen → 6.0 yen.

(as of March31, 2017)

Major top 10 shareholders of the Company and the Company’s capital contributions to such shareholders
Name of major shareholders
Japan Trustee Services Bank, Ltd. (Trust Account)
The Master Trust Bank of Japan,Ltd. (Trust Account)
Trust & Custody Services Bank, Ltd. (Mizuho Trust & Banking; Employee
Retirement Benefit Trust, Mizuho Bank Account)
Japan Trustee Services Bank, Ltd. (Trust Account 4)
BBH BOSTON CUSTODIAN FOR JAPAN VALUE EQUITY CONCENTRATED
FUND A SERIES OF 620135
Asahi Mutual Life Insurance Co.
FURUKAWA CO., LTD.
Japan Trustee Services Bank, Ltd. (Trust Account 5)
GOVERNMENT OF NORWAY
Fuji Electric Co., Ltd.

Number of shares

Shareholding
ratio

5,566,800
4,959,900

7.88%
7.02%

2,413,500

3.42%

2,238,500

3.17%

1,465,500

2.08%

1,365,050
1,329,045
1,289,900
1,228,800
1,100,000

1.93%
1.88%
1.83%
1.74%
1.56%

(note) 1. Shareholding ratio is calculated with the number which deducted 48,062 shares of the Company’s treasury stock.
2. Mizuho Bank, Ltd. holds 173 shares separate from the 2,413,500 shares indicated above which have been set by Mizuho as a retirement benefits trust.
3. In addition to the JPY 1,365,050 shares mentioned above, Asahi Mutual Life Insurance Co. also has a further 1,050,000 shares in a retirement benefits trust.
4. In addition to the 1,329,045 shares mentioned above, FURUKAWA CO., LTD also has a further 1,091,900 shares in a retirement benefits trust.

Message from theGeneral Managers

Message from the
Message from theManagers
WeGeneral
will focus
on releasing informationGeneraland Managers
providing explanations of our diverse business
content for their understanding
Mami Masuda
General Manager, Investor & Public
Relations Department, Finance & Procurement Division

Furukawa Electric’s business began with copper smelting
and the manufacture of electric wires. The numerous
products that we manufacture based on our materials
technology support the lives of people around the world ina wide variety of fields, including telecommunications,electric power infrastructure and automobile.
In fiscal 2016, our company established new supervisorydivisions which unify multiple businesses, with the goal ofstrengthening coordination between strongly-connectedbusinesses and consolidating common functions. Under thisnew system, we have reorganized our business segments
into four divisions: “Infrastructure”, “Electronics & Automotive
Systems”, “Functional Products”, and “Service andDevelopments, etc.” Based on these business segments, wewill focus on releasing information and providing explanationsof our diverse business content for their understanding by
our shareholders and investors, and we hope to become acompany that can receive their trust for many years to come.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201739

Relations with Employees
Personnel Management
Personnel Management Policy
Furukawa Electric Group’s basic approach to humanresources management is to utilize global and diverse
human resources in order to become a corporate groupstrengthening our cultivation of global human resources.
(note 1) This is our vision for human resources at Furukawa Electric Group.

Human Resources Development
Enhancement of Education Programthat is creative and energetic, and to embody the GroupWe are training human resources who have richPhilosophy so that we can continue to produce human

humanity and strong challenge spirit, for the sake of ourresources capable of contributing to our competitiveness.

group development. Our aim is to develop “sensitive

Please refer to page 26 for “Furukawa Electric Group

personnel who can think and act on their own initiative”

Corporate Philosophy”.

as we maximize our organizational strength and spread

Challenges and Future Policy

our Group management thinking.
The state of our leaders affects corporate culture andIn the 2020 Mid-term Management Plan, we set areflects in our business results, which is why we give

mission of pursuing diversity and autonomy in order totraining at each level to develop leadership, and constructcontinue growing on global markets, improving our ability

relationships between people by “dialogue” among all ourto respond to changes in the business environment, andemployees. We work hard to cultivate an interest in

realizing greater creativity and practical capabilities in ourpeople and a sense of respect for others.

“people” and “organizations”. As measures that
contribute to Group Global management, we will focus

Nurturing Leaders Adapted to the Global Sceneon “measures that strengthen top management” andWe started our Global Business Leader (GBL) training in“bottom-up measures for reforming our organizational

2006 in order to develop personnel who will take on theculture and human resources”.

role of management in the future. Since fiscal 2013 thisSpecifically, we will enact the Group HR Vision (note 1),

has been reformed to Global Mindset Program (GMP), withwhich describes our standard value judgments for

its extra emphasis on global human resource education.

formulating personnel strategies and measures at group

We have also operated a Global Development Program

companies, increase the links between personnel(GDP) for overseas local employees since 2010 with thesystems for hiring, job placement, assessment andaim of strengthening links within the Group, the curriculum

remuneration, and implement individual measures frombeing partly shared with the GMP. Furthermore, in fiscal

the perspective of “developing skills” with a focus on
Global Human Resources Training System
Main measures contributing to the Group’s global management
Top management reinforcement measures

3 Acceleration of efforts in diversity management(measures to promote women’s careers)
4R ealization of sustainable growth by “work style reform”

40

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Data Base(Conducted throughfiscal 2013)

Global Mindset
ProgramGlobal Development
Program

GMP

Assistant Diversity
Global Mind Set
managers Global Leadership

Mini MBA・Accounting

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

Program

GCP

GDP(For local
employees)

Region-specific training

2D evelopment of the training curriculum, as well as
promotion of two-way human resources exchanges
through the overseas dispatch of junior employees, etc.

GBL

Sectionmanagers

Personnel management training

Corporate culture reform and personnel bottom-up measures
1E
 nactment of the Group HR Vision, establishment anddissemination of FM-Career Design (new deployment
criteria), and promotion of support for career development

Global Business Leader

Training just prior to overseas assignment

2D emonstration of leadership and activation of
behavior change by action assessment

Generalmanagers

Expatriates
Training in basic management knowledge

1R ealizing succession plans and strategic personnel
deployment in a way that makes use of humanresources databases

Training global human resources

Teamwork
improvement
workshops atoverseas sites

Initiatives for Society

2014 we launched the Global Challenge Program (GCP),
which dispatches young employees to foreign countries.
We are working to align these various programs to develop
human resources who can play a dynamic role on the

Using Diverse Human Resources
One of our Group’s management philosophy is to“nurture human resources at every level, so that we can

global stage.

Project to Improve GENBA-RYOKU Capabilities
In fiscal 2009, we began GENBA-RYOKU training for all
manufacturing on-site employees at our factories. To
date, more than 2,500 workers have been trained. The

become a more diverse and creative organization”. It isessential for the progress of our Group’s global
management to create a corporate culture in which morediverse personnel can succeed.
In April 2014, we set up a Diversity Promotion Section

training has consisted of foreman training, mid-levelto accelerate the creation of a work environment thatworker training, and basic program, with the aim ofgives a greater active role to more diverse personnel.

cultivating “GENBA-RYOKU”, the ability to think and act
for oneself, and boosting the monozukuri capability of theDiversity & Inclusion Activities
In September 2014, Furukawa Electric launched our

workplace.

activities, “Furukawa ‘V’ Challenge!!”, to promotewomen’s careers . We have set out the following targets
and promoted networking among female employees andwomen’s career-building, and we have adopted acomprehensive approach to improve the mindset of theUpper left: 8th Training Session for
Mid-level Workers - Hiratsuka Area
Participants
Upper right: Monozukuri staff undergoing
GENBA-RYOKU group work training
Left: Monozukuri staff undergoing
GENBA-RYOKU group work presentation

organization as a whole.
In April 2016, we acquired Level Three (the highest
level) of the “L-Mark”, which is an accreditation foroutstanding companies in the implementation of initiatives
related to the promotion of women’s careers. In the same
year, we held e-learning courses

In fiscal 2013, we launched GENBA-RYOKU (on-site

for all managers to enhance theircapabilities) training for Monozukuri staff (production

awareness of diversity anddivision employees providing on-site support). More thaninclusion, and created pamphlets

20 group companies took part in training in fiscal 2014,

intended for female students, towe launched a special program for all employees to takestrengthen our hiring activities.

part in at the base factories of several group companies.

[Objectives related to support the success of women

We will promote a manufacturing workplace culture andin the workplace]staff culture that encourages the common language of(1) We aim to double the number of females in managerial“strengthening our GENBA-RYOKU”. What’s more, weposts by 2018.

will strengthen our “Monozukuri capabilities” by working(2) W e aim to double the proportion of females hired by 2018.

together as a united Furukawa Electric Group both inNote) A summary of our company’s initiatives is available on the
Ministry of Health, Labour and Welfare’s “Comprehensive Site
for Supporting Women’s Activity and Work-Life Balance”(general business operator action plan announcement site).
http://www.positive-ryouritsu.jp/positivedb/detail?id=529

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

600
500

Furukawa Electric

88

400

business, Furukawa Electric Group has come together to
189

300

423

100
0

24
76

42
76

292

Diversity in Hiring
In order to respond to the global development of our

183

43

200

Group companies

344

265

human resources. In addition to information exchanges to

159
156

implement a variety of initiatives with the aim of securing

237

215

2009 2010 2011 2012 2013 2014 2015 2016 (FY)share know-how on hiring within the Group, we holdFurukawa Electric Group Forum held in Tokyo and Nagoya,at which we conduct briefings in conjunction with GroupFURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201741

affiliates, and work proactively demonstrate the appeal of
Furukawa Electric Group to students.
Recruitment figures by gender (Number of employees)
MaleFemaleSpecialized
Total
staff
Foreignnationals
Male
Professional
Femalestaff
Total

FY2013 FY2014 FY2015 FY2016 FY2017
26
21
28
45
61
6
5
8
15
31
32
26
36
60
92
0

1

0

0

1

0
0
0

0
0
0

0
0
0

0
0
0

15
0
15

Encouraging Employment of Disabled People
Furukawa Electric has established special subsidiary
Furukawa New Leaf in fiscal 2004 for the purpose ofInternship training

contributing to the fostering of Japanese technicians of the
future. We have already taken on more than 200 students
across our various workplaces. In recent years, we havealso actively sought to accept students from overseas
universities in addition to Japanese universities.

Work style reform

improving our employment rate of disabled people. As of

Furukawa Electric established a dedicated organization

March 31st 2017, Furukawa New Leaf employs 40

in May 2015 and launched activities to promote

people who are intellectually challenged. As of March“Reforming working styles” and “Reforming our

15th 2017, Furukawa Electric has an overall disabledorganizational culture” with the aim of achieving both

employment rate of 2.24%.

sustained growth for the company and lifestyle (life)

Furukawa New Leaf is doing its bushiness at Hiratsuka

satisfaction for each individual working at the company. In

Works, Chiba Works and Mie Works, to further increasefiscal 2016, in addition to holding more efficient meetings

our disabled employment rate.

and simplifying meeting materials, we introduced a“telework system” after a trial operation period. In fiscal
2017, we will advance these activities and further raise theeffectiveness of each initiative.

Improving the Working Environment throughLabor-Management Opinion Exchanges
Furukawa New Leaf employees at work

Furukawa Electric maintains a basic position that both

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

1.5

1.94％

1.94％

2.29％

2.34％

We hold our Central Management Briefings twice

2.24％

annually for public exchanges of opinion between laborand management. We have conducted such meetingsfor 65 years from fiscal 1952. As of May 2017 we had

1.0

held these briefings 129 times. Representatives from0.5

labor and management exchange frank opinions and

0.0
2012

2013

2014

2015

2016

(FY)

Internships

42

sincere discussions, and therefore we focus on issue
resolution and deepening mutual understanding.

2.5
2.0

labor and management should endeavor to engage inshare information about a broad spectrum of items atthese briefings, such as the business environment,
management, and topical matters.
We also have in place various committees such as theEver since the Japanese government introduced a

Personnel System Exploratory Committee and thesystem of internships in 1997 as part of an industry-

Committee for Studying Shorter Hours that are designed

academia-government collaboration, in our role as ato improve the working environment, which management

manufacturer Furukawa Electric has taken on numerous

and labor discuss on a daily basis. These discussions

science and engineering interns with the aim oflead to improvements in various systems and strengthen

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Initiatives for Society

monitoring functions, such as compliance response andthe implementation status of other CSR activities.
CSR

Employee Data Book

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

Please see the URL below for Employee Data Book.

Partially achieved

Targets and Results (Personnel Development and Working Environment)

Achieved

FY2016
Targets

FY2017
Results

Achievement

Strengthening of global humanresource training-C onduct GDP- Implement GCP- In GDP,14 participation of the countries
29 people from August 22 to 27- I n GCP,assigned 2 people to
OneFurukawa course(belonging toIntellectual Property Dep.,Broad Band
Sec.(changed to Material Dep.))

Reinforcement of Monozukuri
capability
 uilding an educational system to-Bstrengthen Monozukuri capabilities- Implementation of GENBARYOKU
strengthening activities for affiliatedcompanies (Japan and overseas) epartment in charge started discussion-Dof building an educational system tostrengthen Monozukuri capabilities
 ENBA-RYOKU training,basic program-G
for all employees in two affiliatedcompanies was implemented

Support for diverse ways ofworking, and work-life balance-R eduction in number of employees
taking an extremely low number ofdays of annual paid leave (ongoing);
expansion in scope of the workfrom-home system- The rate of employees who got the
number of days of annual paid leave isunder 5 days was 1.4%
- The work-from-home system for purposes
other than child care or nursing has been
introduced

Message from theGeneral Managers

Not achieved

Targets- Training menu is to be revised forthe penetration of “OneFurukawa
Mind” and the awareness of “CoreValu”-C ontinuous implementation of
GCP-B uilding an educational system tostrengthen Monozukuri capabilitie- Implementation of GENBARYOKU
strengthening activities for affiliatedcompanies (Japan and overseas)(ongoing)
Support for diverse ways ofworking, and work-life balance-P romotion of birth and child careparticipation of father,awarenessof our system, support for infertility
treatment hour

Message from theGeneral Managers

Message from theGeneral Managers

We will accelerate our measures to build
environments and cultures which allow diverse
personnel to be active.
Takashi Fukuda
General Manager, HR & Administration Department,
Strategy Division

In order for the Furukawa Electric Group to achieve
continuous growth in the global market, it will be extremely
important to pursue diversity and autonomy, raise ouradaptability to business environments, and develop people
and organizations with strong innovation and capabilities totake action. To accomplish these goals, it is essential that all
employees with diverse views, abilities, and backgrounds
and regardless of characteristics such as age, gender or
nationality behave with integrity, aim for innovation, beaware of addressing reality, act with autonomy and speed,
and always be conscious of collaboration.
We are engaging even more actively in diversity
management, such as by establishing the special subsidiary
Furukawa New Leaf in fiscal 2004 to improve our
employment rate of disabled people, and creating a
Diversity Promotion Section in fiscal 2014. To carry out
human resources development from a global perspective,

we introduced “Global Business Leader (GBL) Training”, the“Global Mindset Program (GMP)”, and the “Global Challenge
Program (GCP)”, working to “develop human resources able
to clear new paths and carry out tasks to completion”, aswell as “building collaborative environments”.
Meanwhile, to exemplify our sense of autonomy, we haveintroduced and are operating FM Career Design, a personnel
system that stimulates the ability and desire to facechallenges in individuals and the generation of innovativeideas in organizations. This will allow us to make careerformation and human resources more fluid through planned
allocation.
We will continue to actively take the above and othermeasures in the future in order to accelerate the creationof an environment and corporate culture where morediverse human resources play an active role.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201743

Occupational Health and Safety
Basic approach to occupational health and safety management
In addition to basic legal compliance, Furukawa Electric Group prioritizes initiatives that promote “becoming a safety
conscious person” and “realizing fundamental safety”. Our basic approach is to aim for zero accidents and zero illness.

Basic policy on health and safety management•E ndeavor to eradicate accidents by inspections and management in accordance with the industrial Safety and Health Act.
•P
 romote the realization of “fundamental safety” with a medium-term goal of achieving Stage lII or higher inseparating pedestrians and vehicles and separating people and equipment.
 evelop “safety conscious person” through communications, the 5S and education (experience and practice).
•D• Improve Safety and health management systems with a mediurn-term goal of achieving Stage IV or higher.
• Promote mental and physical health improvement by the group’s health management activities.

Promotion System
Furukawa Electric Group has

Promotion Framework

established the Furukawa Electric Group

President

Occupational Health & Safety

Furukawa Electric Group Occupational
Health and Safety Committee

Committee (on which the President
serves as committee chairman) as theCommittee chair : President
Committee members : Management
Organizer : General Manager,
Safety and Environment
Promotion Department
General Manager,
HR Department

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

follow-up activities for the group as a

Representative Safety and Health Meeting
Chair :

General Manager of
MONOZUKURI Innovation Division

Members:
Division general managers
Divisional Representative Safety and HealthWorks General Managers
Safety and Environment Promotion Department
HR Department

Affiliated companies

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

initiatives in health and safety.

Safety and Health Activities Presentation Meetings

Site inspections by officers

We have been holding presentation meetings on the

Furukawa Electric’s safety

Group’s safety and health activities and awarding the best

officers make site inspections atwith commendations. In

Furukawa Electric Co., Ltd. andfiscal 2016, fifteen teams

group companies whenever anwere selected from theaccident occurs and in

SBUs (including five teams

accordance with performancefrom group companies) toin the previous fiscal year. They

give presentations andconfirm how appropriate the safety measures are, andFPT (Thailand) giving apresentation

receive awards from theSite inspections by officers
at OFS (the United States)

check the extent to which these measures have becomepresident.

firmly established. In addition, they exchange opinionswith a view to achieving fundamental safety, and work
hard to prevent any recurrences. They also conduct visits

Targets and Results (Accidents)

Achieved

Partially achieved

FY201644

Not achieved
FY2017

Targets

Results

One or less “accidents withworking loss days”

Two “accidents withworking loss days”

Achievement

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Targets

Zero “accidents withworking loss days”

to domestic and overseas
group companies, andexchanged opinions with 17
companies in fiscal 2016.

Initiatives for Society

Work Accident Occurrence Status

Strengthening Smoking Measures

In terms of its performance in fiscal 2016, Furukawa

In fiscal 2003, we commenced

Electric recorded two “accidents with working loss days”,

measures to counter smoking in earnest,

and failed to meet its target of “one or less accidents withintroducing programs to prevent

working loss days”. Frequency rate of accidents resultinge x p o sure t o p a s si v e smok e a ndin time off work (note 1) at Furukawa Electric Co., Ltd.

encourage quitting smoking. As a result

stayed almost unchanged at 0.28, whereas the rate forof such activities, the percentage ofthe domestic group as a whole (note 2) rose to 0.72.
Frequency rate of accidents resulting in time off work
（％）

2.0

All industries (note 2)
Whole Group in Japan

Frequency rate (note 1)

1.59

1.58

Whole manufacturing industry (note 3)
Furukawa Electric

1.66

1.61

1.63

1.06

1.06

1.15

1.0

0.94

0.53

0.71

0.77

0.51

0.37

0.40

0.0

0.28

0.29

0.28

2012

2013

2014

2015

2016

fallen by approximately 20 percentage

points over 10 years. We aim to switch to a smoking ban
during working hours in fiscal 2017 and to an entirely“Celebrate the 2020 Tokyo Olympic Games, after having
achieved Entirely Non-Smoking ” and have continued toadopt a multifaceted approach with the following three

0.72

0.5

smokers among male employees has

smoke-free workplace by fiscal 2020 ,listing the slogan

1.5

1.00

Non-smoking
postermain approaches: sharing information, supporting efforts
to quit smoking and creating a smoke-free environment.
(FY)(note 1) Frequency rate = (No. of casualties / Total actual work hours) x 1,000,000(note 2) The calculation for fiscal 2016 covered full-time employees andtemporary staff at Furukawa Electric and 36 Group companies in Japan.
See page 61 for companies included in the calculation.
(note 3) Data on all industries and the whole manufacturing industry is from
Ministry of Health, Labor and Welfare survey results

Measures to Prevent Falling Accidents
Since the frequency of accidents which involve falls
increases with age, the advancing age of personnel even

Meanwhile, the 2016 accident frequency rate for theat Furukawa Electric means there is a growing risk of fallingwhole Group including overseas Group companies was

accidents to occur (including falls which occur while

1.28. This included accidents both resulting in and notwalking during travel to work). Therefore, from fiscal 2016

resulting in time off work.

we have introduced educational programs and physical

Healthcare for Employees Working Long Hours

been holding physical capability checks for our employees

In accordance with the Guidelines issued by the Labor

50 years of age and older, which was extended to evenStandards Bureau entitled “Measures to be Taken by
Employers to Prevent Health Impairment Due to Overwork”,

exercises (muscle training) to prevent falls. We have also

those 40 years of age and older from fiscal 2017.

hours by implementing strict limitations on working hours

Certification as a 2017 Certified Health andProductivity Management Organization (White 500)

based on the results of health checkups and by arranging

Furukawa Electric has been

we strive to manage the health of employees who work longconsultations for such workers with industrial physicians.

Mental Health Education

recognized and provided with acertificate as a 2017 Certified Healthand Productivity Management

We began conducting mental health measures in fiscal 2002, In

Organization (White 500), indicating

the past, stress control training, workplace mental health trainingthat we are a company practicing

with a focus on Work Engagement, and Pleasant Workplace

White 500 certificate outstanding health and productivity

Discussion Sessions aimed at improving the workplace

management under the Ministry of Economy, Trade andenvironment have been implemented across the company.

Industry’s Certified Health and Productivity Management

In fiscal 2014 and fiscal 2015, we promoted self-careOrganization Recognition Program. This can be seen as

training and line care training for all employees in theira high commendation of our activities for “Building aearly 40s and all middle-ranking managers in order to

Healthy Mind and Body”, which have been implemented

improve their ability to respond to various changes. In

steadily based on our Basic Health Management Policy

fiscal 2016 or later, in addition to continuing to implement

specified each year. This certification will serve as eventhese trainings, we will introduce a stress check system

greater encouragement to once again promote our healthin accordance with legal revisions.

and productivity management practices.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201745

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

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

Support for Areas Struck by the Kumamoto
Earthquakes

Recovery Support by the “Fukushima Support
Company Network”

Immediately after the Kumamoto Earthquakes

Furukawa Electric joined the “Fukushima Support

occurred, Furukawa Electric Group delivered ourCompany Network”, a membership-based organization

products to afflicted municipalities at no charge, for use

formed by companies that are willing to promote

at evacuation shelters. We also donated support funds

purchases of products from Fukushima Prefecture as wellthrough the Central Community Chest of Japan, to be

as use of tourist facilities in the prefecture in order toutilized as activity funds for groups and volunteer

dispel harmful rumors about Fukushima due to theorganizations engaged in activities to support disaster

nuclear accident. In fiscal 2016, we held a highly-

areas.

successful sales event of special goods, fruits, andFurthermore, we collected individual contributions fromJapanese sake produced in Fukushima in the form of aour Group company employees for our two Group

company marché, at the Head Office, Chiba Works, andcompanies affected by the disaster, and provided them

Hiratsuka Works.

with our sincere wishes for a quick recovery.

Portable emergency power supply MgBOX, which can beused to generate electricity in disaster situations simply byfilling it with water or other fluids, and can be disposed ofafter use by standard garbage disposal procedures.
(Provided by The Furukawa Battery CO., LTD.)

Scenes from company marché(upper: Head Office, lower: Hiratsuka Works)

46

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Initiatives for Society

CSR Awards
Eighth CSR Awards
Furukawa Electric established the CSR Awards to recognize the social contribution or environmental preservation effortsof our subsidiaries that notably exceed their regular business. CSR Award-winning companies work on a daily basis tocontinue contributing to society through these activities.

Social Contribution AwardFURUKAWA MEXICO, S. A. DE C. V.

Environmental Preservation AwardFURUKAWA Research Inc.

Our overseas Group company FURUKAWA MEXICO,In June 2015, Furukawa Research Inc. launched activities

S.A. DE C.V. (abbrev. FURMEX), under the jurisdiction ofas part of its initiatives for biodiversity conservation to

our Automotive Products Div., has since its establishment

cultivate the flower Pulsatilla cernua, which has beenplaced special emphasis on providing educational

designated on the Red List of the Ministry of Environment

support to regional societies. Mexico is faced with serious

as a Vulnerable (VN) (a category of species for which theissues such as drug problems, domestic violence, anddanger of extinction is becoming more serious).

poverty, and so this company is engaged in various

After seedlings were transplanted to a corner ofactivities in coordination with local Mexicali City and other

Furukawa Electric’s Yokohama Works, all employees

institutions, for the primary goal of easing these problems

participated in daily team activities, which included

by any amount possible. Examples of its activities include

watering the plants, pulling weeds, catching and removing

factory tours and workplace experience activities offeredinsects, and keeping daily observation journals. In spring of

to local high school and university students. Experimental

2017, roughly 40 Pulsatilla cernua plants had been

facilities in the company are also opened to local

cultivated, with 150 flowers in bloom. The company is also

universities and made available for their use. This spring,planning for further cultivation by collecting and planting

the company acquired measuring equipment including

seeds as environmental activities for the entire theelectron microscopes and elemental analysis devices, as

Yokohama Works, as well as giving seeds to applicants

well as CNC machining equipment, and hopes to be able

who request them. In this third year, the company intends

to contribute even more to practical training for university

to expand beyond the Yokohama Works itself and proceed

students and graduate students. From here on, it willwith activities to provide returns to the regional society.

proceed with activities in close coordination with local

Since 2016, Pulsatilla cernua cultivation activities havecities and states, to make valuable contributions toalso been started at the Hiratsuka Works and the Chiba

regional societies.

Works in addition to the Yokohama Works, as activities
undertaken by the Furukawa Electric Group.

Factory tour for local high school students

Ceremony to commemorate the opening of researchfacilities, with university-related staff invited

Cultivated Pulsatilla cernua
flowers

Planting Pulsatilla cernua seeds
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201747

Activities
in each region
Activity topics

Living in harmony with
the natural environment▶ Participated in local environment
beautification campaign

Furukawa Electric Group conducts
various activities in each region.

・Furukawa Electric (Chiba Works, Nikko Works, Copper Foil
Division, Hiratsuka Works, Mie Works, Copper Tube Division)

Nuturing future generations▶ Supported and cooperated on work
experience for schoolchildren of all ages
・Furukawa Electric (Chiba Works, Nikko Works)
・Furukawa Electric Power Systems

・Okano Electric Wire ・TOTOKU Electric・Furukawa Automotive Systems ・Furukawa Sangyo Kaisha
・Furukawa Precision Engineering ・Furukawa Techno Material
・Furukawa Electric Industrial Cable ・The Furukawa Battery

・Furukawa Logistics

・Furukawa Magnet Wire
・Riken Electric Wire

・The Furukawa Battery

・Furukawa Nikko
Power Generation

・Furukawa Logistics

Factory tour by Yonezawa
Technical High school(Furukawa Electric Power
Systems)

Mission uchimizu inAmagasaki 2016
(Copper Tube Division,
Furukawa Electric)

Special classes
at Ohara primaryschool in Taketomi
Town(Furukawa Electric)

Promotion sports
and culture▶ Participated in, sponsored, and provided
a venue for sporting events
・Furukawa Electric (Nikko Works, Hiratsuka Works, 		
Mie Works, Copper Tube Division)・Furukawa Sangyo Kaisha ・Furukawa Electric Power Systems
・The Furukawa Battery

・Furukawa Nikko Power Generation

Shonan Coast Cleanup Campaign run by
the Labor Union Young(Hiratsuka Works, Furukawa Electric)

At the 3rd "Forest of Furukawa" tree planting
activity Tochigi Furukawa Association (note)(Furukawa Precision Engineering)(note) 
Environmental conservation activities of Furukawa Group,
Tochigi Prefecture
From Furukawa Electric Group・Furukawa Electric (Nikko Works, Copper Foil Division)
・Okumura Metals ・Furukawa Precision Engineering
・The Furukawa Battery
・Furukawa Nikko Power Generation▶ Hosted, participated in, and supported festivals
・Furukawa Electric(Nikko Works, Hiratsuka Works, Mie Works)
・NTEC ・Furukawa Precision Engineering
・Furukawa Electric Power Systems

Iwaki Sunshine
Marathon(The Furukawa
Battery48

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

・The Furukawa Battery

・Furukawa Nikko Power Generation
・Furukawa Magnet Wire ・Miharu Communications

Initiatives for Society▶ Conducted beautification activities outside
premises・Furukawa Electric (Chiba Works, Nikko Works
Copper Foil Division, Yokohama Works, Hiratsuka Works,
Mie Works, Copper Tube Division）

・NTEC ・Okano Electric Wire・Furukawa Automotive Systems ・Furukawa C&B
・Furukawa Electric Ecotec ・Furukawa Electric Industrial Cable
・Furukawa Electric Power Systems ・The Furukawa Battery
・Furukawa Logistics ・Furukawa Magnet Wire

Living side by sidewith local communities▶ Supporting and working with NPOs
and special-needs schools
・Furukawa Electric(Nikko Works, Copper Foil Division)▶ Held a fishing event
・Furukawa Nikko Power Generation

Other activities▶ Donation to the Kumamoto earthquake
・Furukawa Electric (Yokohama Works) ・NTEC
・Furukawa Electric Power Systems

・Furukawa Nikko Power Generation▶ Donated and raised funds for charities

Trout fishing event for local residents,
held at a retention basin(Furukawa Nikko Power Generation)

・Furukawa Electric (Yokohama Works)
・The Furukawa Battery ・Miharu Communications
・Furukawa Nikko Power Generation▶ Donated blood・Furukawa Electric (Chiba Works, Nikko Works, Copper▶ Conducted factory tours for employees’ families
・Furukawa Electric(Hiratsuka Works, Copper Tube Division)

Foil Division, Yokohama Works, Hiratsuka Works)
・Furukawa Precision Engineering
・The Furukawa Battery ・Furukawa Magnet Wire

Factory tour for Employees’ families(Hiratsuka Works, Furukawa Electric)▶ Supported the restoration of the Tohoku region
・Furukawa Electric (Chiba Works, Hiratsuka Works)
Blood donation(Chiba Works, Furukawa Electric)・Furukawa Sangyo Kaisha

Challenges and Future Policy
In addition to community-based activities applying the ingenuity of Furukawa Electric’s works, branch offices, andGroup companies, we also held private sector training for public school teachers and other events. From here on as
well, we will continue investigating programs and other measures which can apply our unique company
characteristics in accordance with the Furukawa Electric Group Basic Policy on Social Contribution Activities.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201749

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

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

Environmental Management Organization
In April 2013, we underwent organizational
restructuring, transitioning to a strategic business unit

Environmental Education
Environmental Education System andEnvironmental Education Programs

system. We also renamed our highest-level advisory body

Furukawa Electric Group is engaged in a variety ofrelated to environmental management the Furukawa

environmental education activities in order to raise

Electric Group Environment Committee and promoted

environmental awareness among its employees and help

environmental management under a new structure. Thethem to gain information necessary to conduct the“Council of Environmental Managers” was set up underenvironmental activities of the Group.

the Committee in order to promote the smooth

From fiscal 2016, we have been proceeding to train

development of environmental management decision-

ISO14001: 2015 internal environmental auditors, ahead ofmaking, and a variety of special committees were

the deadlines related to the ISO14001: 2015 version

consolidated and merged.

revisions. 51 employees undertook classes for newlyappointed ISO14001 internal environmental auditors, andPromotion Framework

88 employees including those from Group companies took

President

lecture courses at our Head Office for principal internal
environmental auditors at each location, to inform qualified

Furukawa Electric Group
Environment Committee
Committee chair:
General Manager of the MONOZUKURI Innovation Division
Committee members: Management
Organizer: General Manager, Safety & Environment Promotion
Department, Production Technology Division
Technology & Engineering Division
Planning Department Manager

Committee for Development ofEnvironmentally Friendly Products

including 37 from the Mie Works, 22 from the Copper Tube
Division, 45 from the Hiratsuka Works, and 35 from the
Copper Foil Division participated in training courses.

Council of Environmental
Managers

50

Divisional Environment
Committees

Special Committee

Affiliated Group Companies
in Japan and Overseas

cover the scope of Furukawa Electric in its entirety, a total of
139 internal environmental auditors from individual bases,

Safety and Environmental
Promotion Department

Environment
Committee of Works

staff of the differences between revisions. Also, in order toEnvironmental activity award system
Subcommittee
Meeting

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

From fiscal 2010, Furukawa Electric presented
environmental activities awards in the following three fields
with the aims of improving environmental awareness andInitiatives for Environment

raising the level of environmental activities: “sales

Collation is implemented in reference to the Ministry of thepromotion activities for environmentally friendly products”;

Environment’s “Environmental Accounting Guidelines 2005”“global warming prevention activities”; and “Groupand covers Furukawa Electric Co., Ltd. and 21 domestic

activities”. However, the award system was combined into

group companies.

a single category in fiscal 2014 under the “environmental

The costs of environmental conservation activities in fiscal

contribution awards”. Furthermore, in order to promote the2016 were 2.88 billion yen in expenses and 1.0 billion yen inhorizontal development of environmental initiatives, ainvestments. This represents a 0.18 billion yen fall inpresentation meeting is held once a year to showcase

expenses and a 0.02 billion yen increase in investments

outstanding examples of environmental activities. An

against the previous fiscal year. Energy costs fell by 1.51

energy conservation project conducted by the Copper Foil

billion yen as a result of consolidating our manufacturing

Division was selected to receive first prize in fiscal 2016.

bases through reforms of the business structure.
Please see P.61 for details of the companies included

Environmental Accounting

in the scope of data collation. Please see below for the

Furukawa Electric Group has introduced environmental

collated results of environmental accounting.

accounting and works hard to promote efficient and effective

CSR

environmental activities through the quantitative identification

http://www.furukawa.co.jp/en/csr/of environmental conservation costs and effects.
Environmental education programs
Category of educational
training

New recruits

Content

Education for new recruits(once a year, mandatory)

General environmental conservation activities

EMS activities (asneeded, mandatory)

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

Generalemployees

Mid-career
employees

Newly appointed
Management
section managers

Training for new recruits

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

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

Consolidated environmental
Seminars by experts on priority issues
management seminars

Message from theGeneral Managers
We are steadily advancing our Group Global
environmental activities.
Tsutomu Fujinuma
General Manager, Safety & Environment Promotion Department,
MONOZUKURI Innovation Division
Furukawa Nikko Power Generation Inc., a member of ourGroup, is carrying out hydroelectric power generation with theresulting clean energy being used for the manufacture ofcopper products at our Nikko Works. In addition, we haveoperated recycling businesses since the 1970s, with Furukawa
Electric Ecotec Co., Ltd. engaged in total recycling of electric
wires and cables, including collection, decomposition, andreclamation. Although our Group has carried out productmanufacturing and recycling businesses while taking great
consideration for the natural environment for some time, inrecent years we have been expanding beyond only considering

the CO2 emissions produced by our Group and are proceedingwith the visualization of CO2 emissions at all product life cycle
stages, including the reduction of CO2 which is emitted when
our products are at the stage of being used. In the future, wewill expand our Group Global environmental activities andadvance our environmental initiatives together with ourbusiness colleagues around the world. We will also take thelead in product development that can contribute toenvironmental conservation as well as environment-friendly
manufacturing, continuing our dedicated efforts to gain thetrust of our stakeholders.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201751

Material Flow
Environmental Impact of the Furukawa Electric Group in Fiscal 2016
We tallied data for Furukawa Electric, 33 Group companies in Japan, and 54 Group companies overseas—a total of
88 companies.
Please refer to page 61 for a list of all applicable companies.

INPUT
Category

OUTPUT

Domestic Overseas

Unit

Category

Raw materials
CopperAluminum
Iron
Other metals
Glass
Plastic

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

Water
Industrial water
Groundwater
Tap water

Domestic Overseas

Unit

Waste (note 3)
168.5
7.0
2.5
4.8
32.7

167.6
30.0
11.4
1.1
3.4
40.5

1000t
1000t
1000t
1000t
1000t
1000t

Furukawa Electric
7 works,
33 Group companies
in Japanand
54 Group companies
overseas

Total waste
generated (note 4)
Final waste disposal
Recycling amount

32.0

18.0

1000t

0.3
30.5

9.2
5.2

1000t
1000t

357
15
55
6

434
-

1000t-CO2
t
t
t

156
277

-

9,095

1,913

1000 m3

8,491
7,684
787
20
604

379
105
0
274
1,534

1000 m3
1000 m3
1000 m3
1000 m3
1000 m3

36
40
25

-

1,118

31,703

Atmospheric emissions

7,449

8,020

TJ

513.8

703.9

GWh

105.1

-

GWh

14
5,815
18.1
5,652

5,048
3.6
903

MWh
1000 m3
1000 tkl

10,2892,611

1000 m3

7,159
2,373
756

58
311
2,242

1000 m3
1000 m3
1000 m3

Public waterways
Rivers
Sea
Other
Sewer

46.4

-

1000t

BOD
COD
SS

3.5

6.6

1000t

Volume of water
recycled and reused

0.11

0.37

1000t

CO2
SOx
NOx
Soot

Chemical substances
Volume emitted
Volume transferred

WastewaterttChemical substances
Volume handled (note 1)ttt

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

52

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

1000 m3

Initiatives for Environment

Targets and Performance of Environmental Conservation Activities
Achieved

Activity

Waste

Total generated
amount of wastematerials per sales

Base year

Furukawa Electric Group (Domestic and overseas groups)
Fiscal 2016
Evaluation
Target for fiscal 2017
Targets for fiscal 2016
results
6.8%
reduction

Domestic: At least 2% reduction

Domestic: 0.3% or less0.04%
(achieved)

Domestic: 0.3% or less2015

Domestic and overseas: 1%
reduction

Domestic:
4.1% reduction
Overseas:1.0% reduction

Domestic and overseas: At least 2%
reduction

2013

Domestic: 3% reduction

17.5%
reduction

2015

Overseas: 1% reduction per
sales

1.2%
increase

2013

Domestic: 6% reduction

10.7%
reduction

Domestic: At least 8% reduction

2015

Overseas: 1% reduction

0.2%
reduction

Overseas: At least 2% reduction

Transportation energy
per ton-kilometers

2015

Domestic: 1% reduction

4.6%
reduction

Domestic: At least 2% reduction

Energy consumption
per floor area in office2015

Domestic: 1% reduction

0.6% increase

Domestic: At least 2% reduction

Sales ratio of environmentallyfriendly products: 35% or more

30.5%

35% or more

Contribution of products
avoided CO2 emissions: 60,000
ton-CO2 or more

64,000 tons

70,000 ton-CO2 or more

Water use per sales

Greenhouse gas
emissions

Preventionof global
warming

Not achieved

Domestic: 1% reduction

2015

Zero emission rate
Efficientutilizationof waterPartially achieved

Production energy
per sales

Environmentally friendly design

CDP(note 2) score up (climate change)
Prevention of environmental accidents――

Number of accidents: Zero
Number of small accidents: 3 orlessaccidents 2
small accidents 3

GHG emissions (Scope1, 2) (note 1)-D omestic: At least 4% reduction
 verseas: At least 2% reduction per sales-O
GHG emissions (Scope3) (note 1)- Set target by fiscal 2018―

Score B or more
Number of accidents: Zero
Number of small accidents: 3 or less(note 1) GHG*, Scopes 1, 2, and 3*GHG: Greenhouse Gas
Scope 1: D
 irect emissions from offices caused by the use of fossil fuels, etc.
Scope 2: Indirect emissions from outside offices caused by the use of electricity, steam and heat
Scope 3: As other emissions, Indirect emissions from purchased product services, business trips, commuting, and upstream shipping, etc.
(note 2) C DP: C DP is an organization formed from institutional investors for the purpose of managing a project requiring companies to disclose
their strategies for climate change and the specific amount of greenhouse gases they generate.

Activities Targets and Performance in Fiscal 2016

will aim to improve our CDP climate change score as a form

Furukawa Electric Group sets out environmentalof external evaluation, and will take action to reduce

conservation activities targets for each fiscal year inemissions of chlorofluorocarbon and other greenhouseaccordance with the three-yearly mid-term environmental

gases through CO2 reduction measures as part of our global

targets. In fiscal 2016, we carried out initiatives to achieve

warming prevention activities.

our targets as the first year in a new three-year plan.
Our activities to prevent global warming included

Midium and long term targets

integrating and consolidating the manufacturing bases of

Furukawa Electric Group has identified threevarious products through business structure reform,“materialities” (greenhouse gas measures, effective use ofachieving a 1.2% reduction in CO2 emissions for our

resources, and conservation of biodiversity), and set

domestic and overseas Groups compared to fiscal 2015.

medium to long-term targets by 2020. The medium to

Activity Targets in Fiscal 2017

long-term target of our global warming prevention
measures is for reductions of at least 50% in CO 2

In fiscal 2017, the second year of our three-year medium-

emissions by 2050, in reference to IPCC AR5, and weterm environmental plan, we will thoroughly implement

are formulating specific medium to long-term reduction

initiatives on a Group-wide basis to achieve our targets. We

plans to reach this goal.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201753

Environmentally Friendly Products
Environmentally Friendly Products and thee-Friendly Accreditation System

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

Furukawa Electric Group certifies and registers asenvironmentally friendly products those products withimproved performance compared to existing products in(No. registered)（％）(104 tons-CO

120

50

100

40

80

30

60

20

40

10

20

0
(FY)

0

the categories of materials and parts purchasing and100

manufacture, use, distribution and disposal.

80

42.6

41.6

91

85

60

24.7

24.5

17

25

2012

2013

40
20

The e-friendly mark0

We have created the “e-Friendly” environmental mark

47.4

48.3
106

97

112

30.6

30.5

75

83

24.4
35
2014

2015

2016

to identify such environmentally friendly products. This

promoted “visualization” of CO2 emissions by using life

mark is placed on those products.

cycle assessments (LCA).

Categories of Environmentally Friendly Products
The Group's environmentally friendly products belong
to one of four categories described below.
Environmentally friendly product categories
Category

Content

Prevention of
global warming

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

Zero emission

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

Elimination ofmaterials that havean impact on theenvironment

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

Resource savings

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

Expanding Environmentally Friendly Products

and technical materials on CO 2 reduction when our
500

promotion pamphlets, and in research and development
400 environmentally-friendly products of the future.
for the

184

300

74

210

2012

2013

(1,000 tons)

80

60

207

40

62

119

126

128

2014

2015

2016 (FY)indexing,
we are working to visualize the reduction of CO2
0

20

0

which is emitted when our products are at the stage ofbeing used. According to the estimate for fiscal 2016,
there was a total reduction of roughly 64,000 tons-CO2/
year in the domestic market, with aluminum wire harnesses
newly added to our mainstay products consisting ofcopper foil, rectangular magnet wire and semiconductor
lasers. Going forward, we will try to expand sales of eachproduct category and increase the number of contributing
products, so that we can develop our activities to tackle
environmental issues through our products.
Contribution of products avoided CO2 emissions(104 tons-CO2e)on percentage of sales, and confirm our progress and6

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

201

100
Based
on
149its track
137record in environmental performance7

environmental performance, Furukawa Electric Group has

194

Initiatives to Reduce CO2 Emissions from200
76during76Use
Products
64

environmentally friendly products. We set targets based

As part of its efforts to create (visualize) indices forGroup companies in Japan

Furukawa Electric(1,000 kℓ)
productsarethe stage
Group atcompanies
overseas of being used, in sales

8

Environmental Performance Indicator “Visualization”(note

The results of these LCAs will be utilized in basic data

We are working to increase our overall percentage ofsuccess on this basis.

54

43.4

aluminum wire harnesses
Copper foil for electrode material of lithium-ion batteries
Rectangular wire for HV motors
Narrow-bandwidth-FBT (tunable wavelength laser)

5
4
3
2
1
0

2014

2015

2016

(FY)

(no

Initiatives for Environment

 Reduction of CO2 emissions through copper

foil for electric car batteries

Reducing CO2 Emissions

Copper foil for electrode material of lithium-ion batteries
Copper foils contribution
to electric cars

Lithium ion battery

Positive
electrode

Negative
electrodeterminal
Separator
Negative
electrodeplate
Separator

Electrodeposited
copper foil for
lithium-ion battery:“NC-WS”

Preventing Global Warming

Positive
electrodeplate

CO2 reduction of semiconductor lasers
Narrow-bandwidth-FBT (tunable wavelength laser)

Measures at our factories
The main greenhouse gas emitted by Furukawa ElectricGroup is CO2 that arises from the consumption of energy
sources, such as electricity and fuel. In order to achieve
emissions reductions particularly in our manufacturing
processes, which account for a large percentage of ouremissions, we have implemented energy-saving
measures such as streamlining of the manufacturing
process, switching fuels, upgrading to highly efficientequipment, and insulating high temperature parts ofequipment.
CO2 emissions for the domestic Group in fiscal 2016
were 357,000 tons-CO 2/year. Although this was anincrease of 1.7% against fiscal 2015, it was a reductionof 18.8% against fiscal 2000. CO 2 emissions for theoverseas Group were 434,000 tons-CO 2 /year, a
reduction of 5.0% against fiscal 2015. We will continue towork hard as a group to promote activities that reduce
emissions.

CO2 reduction of enameled extruded rectangular wire
Rectangular wire for HV motors

CO2 emissions
Group companies in Japan
Furukawa ElectricGroup companies overseas(104 tons-CO2e)

100
Extruded resin layer

80
Enamel layer
Rectangular conductor

60
40
20
0

41.8

43.2

45.2

45.6

43.4

15.5

16.5

16.2

13.2

14.0

24.9

24.7

21.8

21.9

21.7

2012

2013

2014

2015

2016

(FY)

(note) For the overseas CO2 emission coefficient, the coefficient for each country
according to the IEA (International Energy Agency) is used for purchased
electricity, while the Japanese emission coefficient is used otherwise.

CO2 reduction of aluminum harnesses for automobiles

Energy consumption(1,000 kℓ)

Group companies in Japan
Furukawa ElectricGroup companies overseas

500
400
300

184

194

201

210

207

200

76

76

74

62

64

149

137

119

126

128

2012

2013

2014

2015

2016 (FY)1000

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201755

Initiatives in Logistics

Measures to disclose environmental information

The entire Furukawa Electric Group transported

Since fiscal 2008, Furukawa Electric Group has

222,000,000 ton-kilometers during fiscal 2016 - ananswered enquiries from CDP, representing ourincrease of 4.0% compared to fiscal 2015. Of this,institutional investors, on climate change since fiscal

Furukawa Electric itself transported 131,000,000 ton-2008 and on water use since fiscal 2013. In fiscal 2016,

kilometers, which was an increase of 7.5% from fiscal

our CDP climate change score was evaluated as B.

2015, and our CO2 emissions were 14,900 tons-CO2, a

In order to support customers participating in CDP

rise of 4.2% compared to fiscal 2015. Specificsupply chain programs and to maintain and improve ourconsumption showed a 2.5% reduction against fiscal

CDP score, we will expand the scope of environmental

2015. We will continue with initiatives to promote modal

data we release from here on and enhance our reliability.

shift, increase loading rates and encourage joint shipping.

We w i l l a l s o p a r t i c i p a t e i n t h e M i n i s t r y o f t h eEnvironment’s environmental information disclosure
infrastructure development project and will collaborate

Modal shift (note 1) and specific consumption (note 2) (Furukawa Electric)
Specific consumption
Rate of modal shift(MJ/ton-kilometers)

2.0

1.90

1.58

1.64

1.66

(%)

1.71

1.5

0.5

0

7.4

9.1

9.7

Association and the Japan Copper and Brass

20

Association.

15

Greenhouse Gas Emissions in fiscal 2016 (1,000 t-CO2e/year)

1.67
12.0

1.0

with The Japanese Electric Wire & Cable Makers’

8.8

FY201610

3.6

5

Scope 1 (direct emissions)141

Scope 2 (indirect emissions)649

Scope 3 (other)

2,041

0

2006

2012

2013

2014

2015

2016 (FY)(note 1) Modal shift rate: percentage of total transportation using
railways or shipping(note 2) Base unit: Energy consumption per transportation unit (MJ/t-km)

Furukawa Electric Group has undergone verification by
an independent third party to improve the reliability of ourenvironmental data. In addition to Scope 1 and Scope 2,CO2 emissions related to transportation (Furukawa Electric)

we have now added a portion of the categories for
Scope 3 to our data.

(t-CO2)20,00019,10014,80014,50015,00015,30010,00014,90014,300

5,000

0

2006

2012

2013

2014

2015

2016 (FY)

Verification Statement of Greenhouse Gas Assertions

56

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Initiatives for Environment

Reducing Waste

Water Resources

Waste Reduction Initiatives

Effective Utilization of Water

In 1993 Furukawa Electric Group began its efforts to

Since fiscal 2013, Furukawa Electric Group has

increase waste recycling, and since fiscal 2001 haspromoted effective water use as one of its activities

continued its zero emissions activities with the goal oftargets, and identified water intake and wastewater at

reducing total emissions of industrial waste disposed ineach base. Since fiscal 2015, we have taken action for

landfills to less than 0.3% (the base value was cut in fiscal

reductions in base units versus net sales. In fiscal 2016,2014 from 1% to 0.3%).

the water usage base unit by our domestic Group was

In fiscal 2014, we launched activities aimed at reducing

2,300 m3 /100 million yen, a reduction of 4.1% from fiscal

our total waste output, including valuable resources. In

2015. For our overseas Group, the water usage base unit

fiscal 2016, we achieved a reduction of 6.8%, against a

was 1.0% lower than fiscal 2015. Furukawa Electric will

1% reduction in output rate per unit of net sales

continue working hard to save and recycle water, and tocompared to the Japanese Group target for fiscal 2015.

manage water quality, water usage, and wastewater
volumes.
We have gained an understanding of water-relatedrisks at our major bases, so that we can release

Total amount of waste matter generated

information on water resource management for our CDP

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

supply chain program. We will continue with risk

80

management while promoting our Group’s BCM activities.
60

38

31
40

20

0

23

18

18

34

34

34

34

33

2012

2013

2014

2015

2016 (FY)

Volume of water intake (water source)

Inside Furukawa
Electric Group(note) Valuable resources are included in total waste generated forJapan only.

Volume ofrainwater use

Direct landfill disposal(1,000 tons)

Furukawa Electric & Group companies in Japan
Group companies overseas

20

15.3

Volume of recycled water

15

8.6

10

10.3

9.2

5.6
5

0

0.7

0.4

0.3

0.2

0.3

2012

2013

2014

2015

2016 (FY)

Volume of wastewater (drainage)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201757

Chemical Substance Management
Green Activities

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

Response to Customer Requests
Furukawa Electric Group has participated in JAMP (note 1)
since 2009, and is implementing simultaneousenvironmental examinations based on the latest
information from the JAMP management target

Furukawa Electric

300

303
107

295
103

200

100

196

192

2012

2013

substance list related to management of chemical
substances contained in products. We also monitor
trends in laws and regulations covering the chemical
substances contained in products and compile andGroup companies

400

0

251
99

304

273

108

100

152

172

196

2014

2015

2016 (FY)(note) Volatile organic compounds are the 118 substances specified by
The Japanese Electric Wire & Cable Makers’ Association(January 2012 edition).

update data as it becomes available, allowing us torespond promptly to customer requests.
to suppress emissions in our production processes andResponse to overseas regulations and managementof chemical substances contained in products
Furukawa Electric Group establishes a management

other activities.

Appropriate Management of Chemical Substances

system for chemical substances contained in products

At Furukawa Electric Group, we confirm the properties

for major operational bases and affiliated companies,

and applicable laws and regulations regarding all chemical

strengthens the environmental product regulations andsubstances we use during the manufacturing process on

grasps the environmental risk that should be lowered,their Safety Data Sheets (SDSs) and administrate them.

a n d i m p l e m e n t s m e a s u re s d e p e n d i n g o n t h e i r

We also monitor the usage volume of chemical

importance. In fiscal 2016, we conducted an

substances listed in the PRTR Law (note 2).

environmental inspection on 173 substances, covering up(note 1) JAMP: Joint Article Management Promotion-consortium(note 2) Act on Confirmation, etc. of Release Amounts of SpecificChemical Substances in the Environment and Promotion of
Improvements to the Management Thereof

to the 16th SVHC list of the EU REACH environmental
product regulations. We are also making appropriate
shifts to chemSHERPA (a scheme that facilitates sharing
information on chemical substances in products) in order
to meet customer demands.

Green Procurement Activities
Items that will be used in our products are purchased

Environmental Risk Management
Preventing Soil and Groundwater Pollution

adequately based on the Green Procurement Guidelines

Furukawa Electric Group conducts regular inspectionsof our operational division, by evaluating the suppliers’of facilities and equipment that handle specific toxic

system on the management of chemical substances

substances to prevent the pollution of soil andcontained in products and its management status as wellgroundwater. We reduce the risk of pollution throughas by confirming the data of chemical substances

measures to prevent leaks of specific toxic substances

contained in products.

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

Chemical Substance Management Activities
Furukawa Electric Group undertakes voluntary initiatives

58

PCB Management

to reduce emissions of harmful chemical substances. In

Furukawa Electric Group identifies the volume of high-particular, we make every effort to actively reduce

concentration PCB-containing equipment at Furukawa

emissions of volatile organic compounds (VOC), one

Electric Co., Ltd.’s works and at the bases of our groupcause of photochemical smog. The emission results forcompanies, and carries out appropriate storage andour domestic Group in fiscal 2016 were on the same level

management. We have been gradually disposing of thisas those for fiscal 2012. We will continue to take action

equipment in accordance with a plan set out by the

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Initiatives for Environment

Japan Environmental Storage & Safety Corporation. We
have carried out analysis and surveys of equipment thathas the potential to contain low concentration PCB, andBiodiversity Conservation
Biodiversity Conservation Initiatives

are proceeding with disposal of this equipment while

Furukawa Electric Group has included biodiversity

taking consideration for storage-related risks. We willconservation measures in our Basic Environment Policy.

continue to dispose of such equipment in a systematic

We have formulated and are applying Furukawa Electricway.

Group comprehensive guidelines in relation to initiatives
aimed at protecting biodiversity.

Compliance with Environmental Laws and Other
Regulations

Initiative for Biodiversity) and are working to deepen our

Furukawa Electric Group regularly confirms

understanding of it, our Group company Furukawa

environmental laws and other regulations to determine

Research Inc. launched activities in fiscal 2015 to

As we have registered with the JBIB (Japan Business

items requiring compliance. We ensure compliance in a

cultivate within the grounds of Furukawa Electric Co.

number of ways, such as by conducting on-site patrols

Ltd.’s Yokohama Works the flower Pulsatilla cernua,

to check the state of compliance. We follow official

which has been designated as an Endangered Species II, as part of efforts to contribute to regional society.

journals and other sources of information to stay updated(note 1)on revisions to environmental legislation and ensure that

Cultivation activities were also started at our Group’s

our response is thorough.

Hiratsuka Works and Chiba Works in fiscal 2016.

We maintain voluntary control limits and manage
operations appropriately to ensure compliance with the Air(note 1) E ndangered Species II is a category of species for which
the danger of extinction is becoming more serious.

Pollution Control Law and the Water Pollution Control Law.
In fiscal 2016, we carried out site inspections once
again at five bases where environmental accidents orabnormal conditions occurred in the past. We willcontinue to carry out appropriate management of harmful
chemical substances.
We also conduct annual checks for conceivable, clear
environmental impact to prevent environmental accidents
or prevent widespread impact in the event of an accident.
According to our survey on the status of our regulatorycompliance, we were not in material violation of any
regulations.

Pulsatilla cernua in bloom at the Hiratsuka Works

Please see the URL below for our response to theasbestos problem, and a list of PRTR compatible materials.

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

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

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201759

Third-Party Opinion

Kuniko Muramatsu
Senior Researcher, Business Ethics Research Center
Representative Director, Wellness Systems Institute
After taking positions of the head of Corporate Communications Department, Ethics &Diversity Office at a global corporation, established Wellness Systems Institute. Currently
involved with practical research and promotion of CSR, governance, diversity and inclusion to“build a foundation for a sustainable society”. Also serving as a board member of NPO
GEWEL, Japan Professional Football League, and outside Director of a listed company.

Based on the information contained in the “Furukawa Electric Group Sustainability Report 2017”, I would like toprovide my opinions as an external third party, regarding evaluations on this company’s approaches and initiatives
toward sustainability, and expectations for its future activities.

Points for Evaluation

form of management infrastructure including

In this report, the actions of the Furukawa

application of healthy management, strategic

Electric Group toward “creating a sustainable

personnel development, effective utilization ofsociety” are reported in a comprehensive andhuman resources, and dissemination of the Groupconsistent fashion in accordance with thePhilosophy. We have great hope for this company’s

philosophies and basic CSR policies of the Group.

future efforts to build systems and mechanisms,

Its content includes the commitment made by top-

carry out human resources management from alevel personnel, deployment by Group and Global

global perspective, and continue its development ofmanagement, monitoring of relations with a wide

leaders, in order to conduct business activities

range of stakeholders, and the presentation ofwhile accurately meeting the needs of its various

environment-related data.

stakeholders with differing standpoints.

The introductory message from President Keiichi
Kobayashi expresses a strong sense of duty anddetermination toward the “responsibility to assist

Over many years, the Furukawa Electric Group

with the resolution of various problems and tohas taken a sincerely dedicated stance in its

contribute to the creation of a sustainable society

actions toward CSR. We hope that it will go on

through business and technology”, together with

applying global standards and guidelines, andthe “responsibility to make contributions while

reaffirming the status of its own CSR activities, so

raising profitability”.

that it can continue to be an organization essential

The special feature “Diversity & Inclusion and60

Expectations for Future Activities

to society.

Work Style Reform” at the beginning of the

In September 2015, a set of SDGs (Sustainable

document makes a strongly favorable impression

Development Goals) was adopted by countries ofby describing activities including the “Furukawa ‘V’

the United Nations, requiring global companies to

Challenge!!” program for promoting the activity ofdemonstrate their creativity and innovation in

women and initiatives toward work style changes,

pursuit of achieving the 17 goals. If the Furukawa

which allow each individual to assume a central

Group can clearly indicate even in its Sustainability

position and be active. In addition, it gives a clear

Reports what types of contributions are being

understanding of the integrated steps being taken

made to resolve social issues, in addition toby the Group to promote the creation of work

reporting on what has been achieved so far, it will

environments and corporate cultures which

undoubtedly be possible to gain the understanding

encourage the activity of diverse personnel, as aand trust of an even wider range of stakeholders.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

List of all applicable companies
Page.

45

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

Page.

50

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

36 Group companies in Japan

Environmental Management

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

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

Scope of the environmental management

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

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

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

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

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

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

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

Furukawa Electric and the Group companies in Japan engaged in the production activities acquired ISO14001 certification pertaining toenvironmental management. The construction of environmental management systems according to standards such as ISO14001 is proceeding inoverseas Group companies as well, with 70% of overseas Group companies successfully certified.
Page.

51

Environmental Management

Scope of the environmental accounting

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

FCM Co., Ltd.
Okano Electric Wire Co., Ltd.
Okumura Metals Co., Ltd.
KANZCC Co., Ltd.
Shodensha Co., Ltd.
Seiwa Giken Inc.
TOTOKU Electric Co, Ltd.
FITEC Corp.

19 Furukawa Automotive Systems Inc.
10	Furukawa Communication andBroadcasting Co., Ltd.
11 Furukawa Industrial Plastics Co., Ltd.
12 Furukawa Precision Engineering Co., Ltd.
13 Furukawa Techno Material Co., Ltd.
14	Furukawa Electric Advanced Engineering
Co., Ltd.

15 Furukawa Electric Ecotec Co., Ltd.
16 Furukawa Electric Industrial Cable Co., Ltd.
17 Furukawa Electric Power Systems Co., Ltd.
18 The Furukawa Battery Co., Ltd.
19 Furukawa Magnet Wire Co., Ltd.
20 Miharu Communications Inc.
21 Riken Electric Wire Co., Ltd.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201761

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

IE-129 2I9 TR 50