Furukawa Electric Group Sustainability Report 2014: Web version

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

Action Guidelines
1.

We shall comply with environmental laws and regulations as well as the demands of our customers andothers, setting ever higher environmental targets as we continuously improve our global environmental
conservation efforts.

2.

We shall strive to develop products that are friendly to the Earth, and create new environmental
businesses.

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
Environmental Management Organization
In April 2013, we underwent organizational restructuring, transitioning to a strategic business unit system. We
also renamed our highest-level advisory body related to environmental management the Furukawa ElectricGroup Environment Committee and promoted environmental management under a new structure. We
established the new Council of Environmental Managers to facilitate smooth decision making on environmental
management and consolidated the special committees that have performed these functions in past.

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Furukawa Electric Group Sustainability Report 2014: Web version

Environmental management promotion organization

Message from the General Managers
Since FY2014, we have carried out a reconstruction of our management systemwith a view to environmental conservation activities on a global scale, in
response to our Group Management Policy. The basic policy for environmental
activities has been set out in a clear order as follows: I. Social contributions; II.
Pollution prevention; III. Saving energy and resources. Firstly, as amanufacturer it is our social responsibility to make sure that our customers canuse our products and services with safety and peace of mind. We also need tocarry out business activities that allow society to use our products and services
in way that contributes to the conservation of the global environment (designand development → procurement and production → supply and recovery). Secondly, as we develop products
and carry out production activities, we need to manage chemical and other substances in an appropriate way,
and work hard to prevent pollution. Thirdly, by manufacturing in a way that makes efficient use of limited
resources and energy, we need to leave a beautiful natural environment to future generations and carry out
environmental management activities that allow us to contribute to the realization of a rich society.

Hisashi Iwama
General Manager, Safety & Environment Promotion Department, Production Technology Division

Scope of the environmental management
The Group companies' scope of the environmental management includes 33 domestic affiliated companies and61 overseas affiliated companies. Since the environmental impact of the former Furukawa-Sky Aluminum Corp.
used to account for about half of that of the domestic affiliates, and it was excluded from the scope of theenvironmental management in fiscal 2014, we amended the past figures retroactively.

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Furukawa Electric Group Sustainability Report 2014: Web version

33 affiliated companies in Japan
1.

Access Cable Company

18.

Furukawa Electric Ecotec Co., Ltd.

2.

NTEC Ltd.

19.

Furukawa Electric Industrial Cable Co., Ltd.

3.

FCM Co., Ltd.

20.

Furukawa Electric Power Systems Co., Ltd.

4.

Okano Electric Wire Co., Ltd.

21.

The Furukawa Battery Co., Ltd.

5.

Okumura Metals Co., Ltd.

22.

Furukawa Logistics Corp.

6.

KANZACC Corp.

23.

Furukawa Magnet Wire Co., Ltd.

7.

Shodensha Co., Ltd.

24.

Furukawa Life Service Inc.

8.

Seiwa Giken Inc.

25.

Miharu Communications Inc.

9.

TOTOKU Electric Co, Ltd.

26.

Riken Electric Wire Co., Ltd.

10.

FITEC Corporation

27.

Furukawa Network Solution Corp.

11.

Furukawa Automotive Systems Inc.

28.

12.

Furukawa Sangyo Kaisha, Ltd.

13.

Furukawa C&B Co., Ltd.

29.

Furukawa New Leaf Co., Ltd.

14.

Furukawa Industrial Plastics Co., Ltd.

30.

The Foam Kasei Co., Ltd.

15.

Furukawa Precision Engineering Co., Ltd.

31.

Furukawa Nikko Power Generation Inc.

16.

Furukawa Techno Material Co., Ltd.

32.

Furukawa Elecom Co., Ltd.

17.

Furukawa Electric Advanced Engineering Co.,

33.

Myojodenki Co., Ltd.

The Furukawa Finance and BusinessSupport Co., Ltd.

Ltd.

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Furukawa Electric Group Sustainability Report 2014: Web version

61 Overseas affiliated companies
1.

SHENYANG FURUKAWA CABLE CO., LTD

2.

Suzhou Furukawa Power Optic Cable Co.,32.

FURUKAWA AUTOMOTIVE SYSTEMSVIETNAM INC.

Ltd.

33.

Furukawa Electric Autoparts (Philippines) Inc.

34.

Permintex Furukawa Autoparts Malaysia Sdn.

3.

P.T.Tembaga Mulia Semanan

4.

Trocellen GmbH

5.

POLIFOAM MUANYAGFELDOLGOZO KFT

6.

Trocellen Italia Holding S.r.l.

7.

Trocellen Italy S.p.A.

36.

Furukawa Automotive Parts (Vietnam) Inc.

8.

Trocellen S.E.A. Sdn Bhd

37.

FURUKAWA AUTOMOTIVE PARTS (DONG

9.

Furukawa Industrial S.A. Produtos Eletricos

10.

Furukawa Industrial S.A. Sucursal Argentina

38.

Furukawa Auto Parts (Huizhou) Ltd.

11.

Furukawa Cabos e Acessorios Ltda.

39.

Furukawa Mexico S.A. De C.V.

12.

OFS FITEL, LLC

40.

TIANJIN JIN HE ELECTRIC ENGINEERING13.

OFS Fitel Denmark Aps

14.

OFS Fitel Deutschland GmbH

15.

Thai Fiber Optics Co., Ltd.

16.

Bangkok Telecom Co., Ltd.

17.

P.T. Furukawa Optical Solutions Indonesia

18.

Furukawa FITEL (Thailand) Co., Ltd.

43.

Furukawa Precision (Thailand) Co., Ltd.

19.

Furukawa Fitel Optical Products (Shanghai)

44.

Xin Furukawa Metal (Wuxi) Co., Ltd.

45.

Furukawa Metal (Thailand) Public Co., Ltd.

46.

Shanghai Sunshine Copper Products Co.,

Bhd.
35.
s.r.o

GUAN) LTD.

CO., LTD
41.
42.

Furukawa Automotive Systems Lima
Philippines, Inc.

DONGGUAN FURUKAWA TOTOKU OPT
ELECTRONICS CO., LTD.

21.

Furukawa Automotive Systems Kabinburi(Thailand) Co., Ltd.

Co., LTD.
20.

Furukawa Electric Autoparts Central Europe,Ltd.

FURUKAWA TOTOKU (HONG KONG)

47.

SHANGHAI KORYU METALS CO., LTD.

48.

Okumura Metals Malaysia Sdn. Bhd.

Thai Furukawa Unicomm Engineering Co.,

49.

GUANGZHOU AUTOM AIRCONDITIONER

23.

FE Magnet Wire (Malaysia) Sdn. Bhd.

50.

OKUMURA METALS THAILAND CO., LTD.

24.

Taiwan Furukawa Electric Co., Ltd.

51.

Furukawa Electric Copper Foil Taiwan Co.,

25.

FURUKAWA AVC ELECTRONICS

LIMITED
22.
Ltd.

PARTS CO., LTD.

Ltd.

(SUZHOU) CO., LTD.
26.

Furukawa Automotive Systems (Thailand)Co., Ltd

27.

Furukawa Wiring Systems Mexico S.A. De
C.V.

52.

Furukawa Circuit Foil Taiwan Corporation

53.

Furukawa Management Shanghai, Ltd.

54.

Furukawa Thai Holdings Co., Ltd.

55.

Furukawa Electric Institute of Technology Ltd.

56.

SuperPower Inc.

28.

Minda Furukawa Electric Private Ltd.

57.

Furukawa Electric Europe Limited

29.

P.T. Furukawa Permintex Autoparts Indonesia

58.

Furukawa Electric Singapore Pte. Ltd.

30.

Furukawa Electric (Shenzhen) Co., Ltd.

59.

FURUKAWA SHIANHAI, LTD.

Changchun Furukawa Automobil Harness

60.

Furukawa (Thailand) Co., Ltd.

61.

Furukawa Electric Hong Kong Limited

31.

Co., Ltd.

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Furukawa Electric Group Sustainability Report 2014: Web version

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

TopicsAcquired the highest rating “A” in the Environmental Responsibility Rating of the Development
Bank of Japan.
Furukawa Electric acquired the highest rating of “A” in the Environmental
Responsibility Rating operated by the Development Bank of Japan. The Company was
highly evaluated particularly for its establishment of a global system and developmentof environmentally friendly products. The Company had also acquired the same ratingin 2006, and it was the first company in the electric wire and cable industry to be
assigned the highest rating.

Environmental Education
Environmental Education System and Environmental Education Programs
Furukawa Electric Group conducts various types of environmental education to cultivate among employees
the understanding that is necessary to conduct environmental activities and raise their environmental
consciousness. In fiscal 2014, 52 employees attended our ISO 14001 Internal Environmental Auditor
Course, 12 attended our FGMS(note 1) Auditor Course.
(note 1) Furukawa branding Green products Management System

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Environmental education programs

Environmental Awards System
To ramp up our awareness of environmental issues and our environmental activities, in fiscal 2011 we introduced
an environmental awards system. We established three award categories for Furukawa Electric (parent
company), which are namely, “Expanding Sales of Environmentally Friendly Products,” “Global Warming
Prevention Activities,” and “Group Activities.” Concerning the Group's affiliated companies, we grant an award to
those which demonstrated an excellent performance based on a comprehensive evaluation of theirenvironmental activities.

Environmental Accounting
Furukawa Electric Group has introduced environmental accounting to gain a quantitative understanding of costs
and conduct its environmental activities efficiently and effectively.
All data is compiled in accordance with the Environmental Accounting Guidelines (2005 edition) published by the
Ministry of the Environment.
Data on affiliated companies is compiled for 18 companies in Japan.

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Environmental conservation costs for the Group during fiscal 2014 came to ¥3.7 billion in expenses, andinvestment amounted to ¥0.6 billion. Compared with the preceding fiscal year, Furukawa Electric reduced its
expenses ¥2.8 billion and reduced investment by ¥0.3 billion.
Owing in part to an increase in electricity rates, energy expenses for the entire Group increased approximately¥1.0 billion.

The Group companies' scope of the environmental accounting
1.

Furukawa Electric Co., Ltd.

11.

Furukawa Industrial Plastics Co., Ltd.

2.

Access Cable Company

12.

Furukawa Techno Material Co., Ltd.

3.

NTEC Ltd.

13.

Furukawa Electric Ecotec Co., Ltd.

4.

Okano Electric Wire Co., Ltd.

14.

Furukawa Electric Industrial Cable Co., Ltd.

5.

Okumura Metals Co., Ltd.

15.

Furukawa Electric Power Systems Co., Ltd.

6.

Shodensha Co., Ltd.

16.

The Furukawa Battery Co., Ltd.

7.

TOTOKU Electric Co, Ltd.

17.

Furukawa Magnet Wire Co., Ltd.

8.

Furukawa Automotive Systems Inc.

18.

Miharu Communications Inc.

9.

Furukawa Sangyo Kaisha, Ltd.

19.

Riken Electric Wire Co., Ltd.

10.

Furukawa C&B Co., Ltd.

Environmental conservation costs (Unit: million yen)
Category

Key activity and the outcome

Furukawa
Electric

Affiliatedcompanies

Total costs

Year on year

Total costs

1,180

-83

404

(1)Business area costs

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

(2)Upstream/downstream
costs

Recovery of packaging, drums, etc.

346

-107

234

(3)Administration costs

Environmental management system
auditing, environmental impact monitoring,
etc.

359

15

86

(4)Research anddevelopment costs

Development of environmentally friendly
products, research into alternatives forharmful substances

1,027

55

60

(5)Social activity cost

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

2

-0

5

(6)Environmental remediation
costs

Environmental impact assessments,
cleanup of polluted soil, etc.

1

0

0

2,916

-120

789

Total

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Economic benefits associated withenvironmental conservation activities (Unit: million yen)
Total benefit

Details of benefits

Furukawa Electric

Revenue from recycling

303

356

5

-8

-345

-648

-5

-1

-41

-301

Reduction in waste disposal costs
Reduction in energy costs
Reduction in water purchase costs
Total

Affiliated companies(note) Minus figures indicate an increase.
Environmental conservation benefits
Emissions causing environmental impact

Unit

Volume of industrial waste disposal processed(note 2)

Reduction
Furukawa Electric

Affiliated companies

tons

102

-5

Energy consumption (crude oil equivalent)

1,000 kl

12

1

Water consumption

1,000 tons

-1,260

-345

tons

4

-2

CO2 emissions

1,000 tons-CO2

1-10

SOx emissions

tons

15

-0

NOx emissions

tons

-24

117

Soot emissions

tons

-1

24

Emissions of volatile organic chemical compounds(note 2) Excluding recycled wastet(note) Minus figures indicate an increase.
Investment and research costs (Unit: million yen)
Investment and research costs

Total costs
Furukawa Electric

Affiliated companies

259

327

Total investment

4,977

7,250

Total research costs

7,747

2,188

Environment-related investment

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Environmental conservation costs (Furukawa Electric)

Economic benefits (Furukawa Electric)

Environment-Related Investment and Expenditures (Furukawa Electric and Affiliated Companies)

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Material Flow
Environmental Impact of the Furukawa Electric Group in Fiscal 2014

(note 1) PRTR-listed substances(note 2) Cardboard, wood, plastic, and paper used in product shipping(note 3) OA paper, copy paper, etc. used at plants and offices

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Targets and Performance of Environmental Conservation
Activities[Achievement]

Achieved

Partially achieved

Not achieved

Furukawa Electric Group (Japan)
Activities

Activities toprevent global
warmingWaste
reduction
activities

Performance infiscal 2014

Targets for fiscal 2014

Achieve-mentTargets for fiscal 2015

Greenhouse gas
emissions

Reduce by 1% comparedto the previous fiscal year

2.1% increase

Reduce by 2% compared tofiscal 2013

Energyconsumption

Reduce by 6% comparedto fiscal 2008

23.4% reduction

Reduce by 2% compared tofiscal 2013

Specific energy
consumption for
production

Reduce by 1% comparedto the previous fiscal year

Achieved at 12/18
Divisions(Furukawa Electric
only)Reduce by 4% compared tofiscal 2013

Specific energy
consumption fortransportation

Reduce by 7% comparedto fiscal 2007

13.6% reduction(Furukawa Electric
only)Reduce by 2% compared tofiscal 2013

Recycling rate

94% or more

95.0%

-

Ratio of achieving
zero emissions

Ratio of sites achieving
zero emissions: 90% or
more

88.5

Absolute volume of waste
disposal reduced by 2%
from fiscal 2013

Effective use of water

Consider reducing
volume of water
withdrawn

Chemical
substance
management
activities

Reduce by 1% comparedto the previous fiscal year

0.4% reduction

Reduce by 2% compared tofiscal 2013

Expand to Group
companies

18 companies-

Sales ratio forenvironmentally friendly
products: 30% or greater

24.3%

Roll out to Group
companies (conduct of
LCA)

12 companies-

Formulation of
biodiversity guidelines
and creation of structures

Concrete guideline
under deliberation-

VOC emissions
volumeGreen activities

Eco-design activities

Biodiversity conservation-

Participation in regional
biodiversity conservation
activities-

Consumption rate reduced
by 1% from the previous
fiscal year

35% or more-

Participation in regional
biodiversity conservation
activities

We have established common goals of the environmental conservation activities for our overseas affiliates infiscal 2015. They comprise the five items of waste reduction, lower water consumption, abatement ofgreenhouse gas emissions, reduction of energy consumption rate and management of harmful substances.

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Activities Targets and Performance in Fiscal 2014
Furukawa Electric Group defines medium-term environmental targets every three years. Each year, we establish
targets for environmental conservation activities based on these plans. We reflect these targets at affiliatedcompanies in Japan and overseas, ensure that targets are consistent throughout the global Group and work
together to achieve them.
With regards to the greenhouse gas emissions in activities to prevent global warming, the Group could notachieve the goal as a whole due to a worsened emission factor caused by the accident at the nuclear power
generation plant after the Great East Japan Earthquake. However, Furukawa Electric on a non-consolidated
basis met its energy consumption targets, as did affiliated companies.

Activity Targets in Fiscal 2015
For fiscal 2015, we added two new goals of absolute waste volume reduction and lowering water consumption
unit. In addition, we reset the standard year to fiscal 2013 which is closer to the present, and the entire Group will
strive to carry out the action plans thoroughly to achieve the goals.

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Environmentally Friendly Products
Environmentally Friendly Products and the e-Friendly Accreditation System
Furukawa Electric Group certifies and registers as environmentally friendly
products those products with improved performance compared to existingproducts in the categories of materials and parts purchasing and manufacture,use, distribution and disposal.
We have created the “e-Friendly” environmental mark to identify such environmentally friendly products. This
mark is placed on those products,

Application and Registration of Environmentally Friendly Products
The criteria for an environmentally friendly product are met
when it offers an overall improvement from an environmental
standpoint when compared with existing products and basedon predetermined standards at each stage, from thepurchasing of raw materials and components, manufacturing
and use to distribution and disposal.
Following application and screening by the business division,
products that pass the screening conducted by the Committee
for Development of Environmentally Friendly Products, across-functional organization of the Group, are registered asenvironmentally friendly products.

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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 the absorption andstabilizing 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 contain harmful 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 productand component maintenance, and reducing the use for resources in packaging.

Expanding Environmentally Friendly Products
We are working to increase our overall percentage of environmentally friendly products. We set targets based on
percentage of sales, and confirm our progress and success on this basis.

Environmentally friendly products as a percentage of sales

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Environmental Performance Indicator “Visualization”
As a part of initiatives to visualize environmental performance indices, the Group promotes the visualization of
CO2 emissions using life cycle assessment (LCA).
Based on the consumption unit of CO2 emissions established for each product by fiscal 2013, we have set atarget to spread the initiative to the affiliated companies in fiscal 2014 and conducted an LCA calculation of major
products at 12 of the 21 subject companies. We also deploy the results of these calculations toward thedevelopment of the Greenhouse Gas (GHG) Protocol (note 1), as well as technical materials and sales promotion
pamphlets, aiming to make use of this information for R&D on future environmentally friendly products.
(note 1) GHG Protocol: An international guidelines for the method of calculating corporate greenhouse gas emissions

Initiatives to Reduce CO2 Emissions from Products during Use
Based on its track record in environmental performance indexing, we are working to visualize the reduction of
CO2 which is emitted when our products are at the stage of being used. According to the estimate for fiscal 2014,
total emission volume in the domestic market of our mainstay products, copper foil, rectangular magnet wire andsemiconductor laser, amounted to 40,000 tons - CO2/year. 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 totackle environmental issues through our products.

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

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

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

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Preventing Global Warming
Reducing CO2 Emissions
Initiatives at Works
The majority of the Group's greenhouse gas emissions consist of CO2 generated from electricity, fuel and otherenergy sources. As emissions from manufacturing processes account for a large proportion, we work on
reducing emissions by increasing the efficiency of production processes, switching fuels, replacing equipmentwith more efficient alternatives, insulating hot areas and other measures.
Total CO2 emissions of the Group companies in Japan for fiscal 2014 came to 413,000 tons - CO2/year, down
only by 6% compared to fiscal 2001. We will continue with our efforts to reduce CO2 emissions in the future.

CO2 emissions

CO2 emissions (fuel/electricity)(note) The amount of power consumed is calculated using the emission factor of each power company.
(note) Assuming that hydroelectric power produces zero CO2 emissions.
(note) UACJ Corporation was transferred to other related companies in fiscal 2014 and so the figures for past fiscal years
have been retroactively adjusted.

Energy consumption(note) UACJ Corporation was transferred to other related companies in fiscal 2014 and so the figures for past fiscal years
have been retroactively adjusted.

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Initiatives in Logistics
In fiscal 2014, total transportation volume for Furukawa Electric Group amounted to 237 million ton-kilometers,
up 5.6% from the figure in fiscal 2013. Of this total, Furukawa Electric alone accounted for 137 million
ton-kilometers, up 1.9% from fiscal 2013. As a result, CO2emissions increased 5.5% to 15,300 tons CO2 compared to fiscal 2013. The consumption unit was reduced by 13.6% from fiscal 2007, but it grew 3.7%
compared to the most recent fiscal year, fiscal 2013. We will continue with initiatives to promote modal shift,increase loading rates and encourage joint shipping.

Modal shift(note 1) and specificconsumption (Furukawa Electric)

CO2 emissions related to transportation(Furukawa Electric)(note 1) Modal shift rate: Percentage of total transportation that uses rail- or ship-based transportation.

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Reducing Waste
Waste Reduction Initiatives
Furukawa Electric Group began taking action to reduce non-recyclable waste in 1993. Since fiscal 2002, we haveconducted zero-emissions activities, defined as reducing the volume of direct landfill disposal to less than 1% of
the total volume of industrial waste emitted.
As a result of our efforts to meticulously sort and recycle waste into useful resources, the total amount of
non-recyclable waste for the Group in Japan amounted to 2,186 tons in fiscal 2014, down 77% compared withfiscal 2005. In addition, the volume of direct landfill disposal of the Group companies in Japan amounted to 442
tons, down 82% from fiscal 2005.
Also, the recycling ratio (ratio of recycled volume to total waste volume) reached 95% (98.5% at affiliatedcompanies and 98.4% at parent company) and exceeded the target of 94% in fiscal 2014.
Processing volume of non-recyclable
waste

Direct landfill disposal(note) UACJ Corporation was transferred to other related companies in fiscal 2014 and so the figures for past fiscal years
have been retroactively adjusted.
(note) Beginning from fiscal 2014, Foam Kasei Co., Ltd., Furukawa Nikko Power Generation Inc. and Furukawa Life Service
Inc. have been added.

Waste disposal costs (Furukawa Electric)

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Water Resources
Effective utilization of water
Furukawa Electric Group has been making efforts to utilize water effectively since fiscal 2014 by grasping theamount of water intake and wastewater and setting a consumption unit reduction target for fiscal 2015.
Furthermore, we endeavor to save and recycle water while managing the water quality and volume ofwastewater.
Toward the goal of effective use of water, we will be considering initiatives to slash the water consumption in
every manufacturing process.

In fiscal 2014, we grasped the consumption unit of water intake and wastewater at each operating unit over the
past three years.
Consumption unit of water intake and wastewater

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Chemical Substance Management
Green Activities
Response to Customer Requests
When Furukawa Electric Group receives a request from a customer for information concerning chemical
substances in our products, it conducts a thorough environmental examination. We also monitor trends in laws
and regulations covering the chemical substances contained in products and compile and update data as it
becomes available, allowing us to respond promptly to customer requests. Furthermore, by collecting informationfrom industrial organizations and conducting seminars, as well as participating in research groups, we canmonitor environmental regulations and standards and social issues/items of concern. This enables us toincorporate customer needs in our environmental conservation targets.

Response to overseas regulations and management of chemical substances contained in
products
Furukawa Electric Group establishes a management system for chemical substances contained in products for
major operational bases and affiliated companies, strengthens the environmental product regulations and grasps
the environmental risk that should be lowered, and implements measures depending on their importance. Eachtime a new SVHC (Substance of Very High Concern)(note 1) is added to the candidate list of an environmental
product regulation named the EU REACH regulation, we investigate the status of its usage. In fiscal 2014, we
conducted an investigation covering up to 144 substances included in the 10th SVHC in the REACH regulation.
(note 1) Substance of Very High Concern :Use or marketing of SVHCs requires approval, and manufacturers are liable to submit notification if an SVHC exceeds 0.1%
weight content.

Expansion of Green Procurement (General-Purpose Products) to Group Companies
Furukawa Electric encourage the purchasing of OA equipment, office supplies and other items that conform to
the Green Purchasing Law. In an effort to spread these activities within the Group, 18 affiliated companies
designated conforming items in fiscal 2014 and purchased them. Also, items that will be used in our products arepurchased adequately based on the Green Procurement Guidelines of our operational division, by evaluating the
suppliers' system on the management of chemical substances contained in products and its management status
as well as by confirming the data of chemical substances contained in products.

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Chemical Substance Management Activities
Furukawa Electric Group undertakes voluntary initiatives to reduce emissions of harmful chemical substances. In
particular, we make every effort to actively reduce emissions of volatile organic compounds (VOC), one cause ofphotochemical smog. In fiscal 2014, we managed to reduce emissions of VOC compared to the previous fiscal
year, although the reduction rate of 0.4% came below our year-on-year reduction target of 1%.
Emissions of volatile organic compounds (Furukawa Electric)(note) Volatile organic compounds are the 118 substances specified by The Japanese Electric Wire & Cable Makers'
Association (January 2012 edition).

Appropriate Management of Chemical Substances
At Furukawa Electric Group, we confirm the properties and applicable laws and regulations regarding all
chemical substances we use during the manufacturing process on their Safety Data Sheets (SDSs) andadministrate them. We also monitor the usage volume of chemical substances listed in the PRTR Law(note 2).
(note 2) Law Concerning Reporting, Etc. of Releases to the Environment of Specific Chemical Substances and Promoting
Improvements in Their Management

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Furukawa Electric Group (Japan)(Unit: Tons)

Substance
No.

Substance

VolumehandledVolumereleased

Volumetransferred

Volumecontained in
products/
disappeared by
combustion

6.6

0.1

0.7

5.8

381.0

0.0

7.9

373.1

1

Zinc and its compounds

31

Antimony and its compounds

53

Ethylbenzene

6.9

0.3

0.3

6.3

71

Ferric chlorides

42.5

3.7

17.7

21.1

75

Cadmium and its compounds

91.5

0.0

0.0

91.5

80

Xylene

23.9

3.4

3.7

16.8

82

Silver and its water-soluble compounds

21.4

0.0

0.0

21.4

86

Cresol

173.4

0.2

8.4

164.8

87

Chromium and trivalent chromium compounds

12.1

0.0

0.1

12.0

88

Hexavalent chromium compounds

5.1

0.0

4.0

1.1

132

Cobalt and its compounds

3.3

0.0

0.1

3.2

144

Inorganic cyanide compounds (Excluding complex
salt and cyanate)

14.9

0.0

1.8

13.1

213

N,N-dimethylacetamide

231.8

0.1

11.6

220.0

232

N,N-dimethylformamide

25.2

0.1

1.3

23.8

239

Organotin compound

1.0

0.0

0.0

1.0

255

Decabromodiphenyl ether

272

Copper salts (water-soluble)

296

333.2

0.0

15.4

317.7

14,304.20

0.3

46.4

14,257.50

1,2,4-trimethylbenzene

24.0

0.1

0.5

23.4

297

1,3,5-trimethylbenzene

1.6

0.2

0.1

1.3

300

Toluene

303.9

190.4

44.3

69.3

304

Lead

8,617.4

0.1

0.3

8,617.0305

Lead compounds

26,564.20.1

2.0

26,562.2

308

Nickel

571.0

0.0

0.5

570.5

309

Nickel compounds

81.7

0.0

11.0

70.6

332

Arsenic and its inorganic compounds

14.0

0.0

0.0

13.9

333

Hydrazine

8.1

0.0

0.0

8.1

349

Phenol

127.6

0.1

6.2

121.3

355

Bis (2-ethylhexyl) phthalate

343.6

0.0

0.2

343.5

374

Hydrogen fluoride and its water-soluble compounds

5.1

0.0

3.2

1.8

384

N-propyl bromide

2.6

2.6

0.0

0.0

392

N-hexane

1.4

0.4

0.4

0.6

405

Boron and its compounds

4.2

1.3

0.7

2.2

412

Manganese and its compounds

7.5

0.0

0.0

7.5

413

Phthalic anhydride

2.0

0.0

0.1

1.9

438

Methylnaphthalene

69.2

0.4

0.0

68.9

453

Molybdenum and its compounds

2.8

0.0

0.4

2.4

52,429.8

204.0

189.2

52,036.7

Total(note) This list is target for substances with a transaction volume of 1 tons or more (0.5 tons or more for Class 1 DesignatedChemical Substances) for the entire Group.

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Furukawa Electric Group Sustainability Report 2014: Web version

Furukawa Electric(Unit: Tons)
Substance
No.

Substance

VolumehandledVolumereleased

Volumetransferred

Volumecontained in
products/
disappeared by
combustion

6.6

0.1

0.7

5.8

1

Zinc and its compounds

31

Antimony and its compounds

127.0

0.0

7.8

119.3

71

Ferric chlorides

13.1

3.7

0.3

9.1

80

Xylene

9.9

2.4

3.2

4.3

82

Silver and its water-soluble compounds

18.5

0.0

0.0

18.5

88

Hexavalent chromium compounds

5.1

0.0

4.0

1.1

144

Inorganic cyanide compounds(Excluding complex salt and cyanate)

9.4

0.0

0.0

9.4

239

Organotin compound

1.0

0.0

0.0

1.0

255

Decabromodiphenyl ether

236.6

0.0

15.2

221.4

272

Copper salts(water-soluble)(Excluding complex salt)

14,296.1

0.3

42.3

14,253.4

296

1,2,4-trimethylbenzene

24.0

0.1

0.5

23.4

300

Toluene

196.8

84.1

44.2

68.6

305

Lead compounds

1.4

0.0

0.0

1.4

308

Nickel

1.8

0.0

0.0

1.8

309

Nickel compounds

21.6

0.0

1.5

20.1

332

Arsenic and its inorganic compounds

0.5

0.0

0.0

0.5

374

Hydrogen fluoride and its water-soluble compounds

3.2

0.0

3.1

0.0

405

Boron and its compounds

3.0

1.3

0.1

1.7

413

Phthalic anhydride

2.0

0.0

0.1

1.9

438

Methylnaphthalene

63.9

0.3

0.0

63.5

453

Molybdenum and its compounds

2.8

0.0

0.4

2.4

15,044.3

92.3

123.5

14,828.4

Total(note) This list is target for substances with a transaction volume of 1 tons or more (0.5 tons or more for Class 1 DesignatedChemical Substances) by the Company's works.

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Furukawa Electric Group Sustainability Report 2014: Web version

Environmental Risk Management
Preventing Soil and Groundwater Pollution
Furukawa Electric Group conducts regular inspections of facilities and equipment that handle specific toxic
substances to prevent the pollution of soil and groundwater. We reduce the risk of pollution through measures toprevent leaks of specific toxic substances and underground seepage, as well as through ongoing efforts to switch
to substitute substances.
We began proper disposal of the slag stored in the Oyama area (a plant site of the former Furukawa MagnesiumCo., Ltd.) and conducted soil remediation where underground soil was contaminated. Work on part of thepremises is now complete.

PCB Management
Furukawa Electric Group monitors the amount of high-concentration PCB-containing equipment at each of ourWorks and affiliate company sites, and conducts proper storage and management. Based on the said
information, we have been registered with the Japan Environmental Safety Corporation and started disposing ofthem step by step in accordance with the plan. In addition, the Company conducts analysis on equipment that
may contain a small quantity of PCB substances in order to dispose of them systematically in the future.

PCB amounts contained in equipment As of March 31, 2014
Works

In storage In use

Total

Chiba Works

110

0

110

Nikko Works

286

60

346

Hiratsuka Works

219

8

227

Mie Works

83

10

93

Yokohama Works

19

1

20

Copper Tube Division

34

12

46

Copper Foil Division

16

48

64

Total

767

139

906

Response to Asbestos Concerns
Although Furukawa Electric Group does not currently produce or import any products containing asbestos, someof the industrial-use products we made and sold in the past contained asbestos. These include electrical wiring
for ships, and fire-resistant products for constructing telecommunications and electrical power facilities, etc.
In addition, we are currently examining the buildings and plants of Furukawa Electric and our affiliates todetermine if asbestos-containing building materials have been used. Inspections for asbestos dispersal inbuildings in which spray-on materials had been used have confirmed the presence of asbestos, and removal
work or containment measures have been taken to prevent future dispersal. We have also proceeded to replace
68Furukawa Electric Group Sustainability Report 2014: Web version

equipment and fixtures in which asbestos insulation has been used so as to prevent dispersal, with planned
replacements of all items which are currently not dispersing asbestos with items not containing it. For other items,
we conduct regular inspections and introduce alternates during facility renewals.

Compliance with Environmental Laws and Other Regulations
Furukawa Electric Group regularly confirms environmental laws and other regulations to determine items
requiring compliance. We ensure compliance in a number of ways, such as by conducting on-site patrols tocheck the state of compliance. We follow official journals and other sources of information to stay updated onrevisions to environmental legislation and ensure that our response is thorough.
We maintain voluntary control limits and manage operations appropriately to ensure compliance with the Air
Pollution Control Law and the Water Pollution Control Law.
In fiscal 2014, we continued to conduct an environmental check-up in our domestic affiliated companies byperforming the said check-up at seven operational units of the Company while responding to the revised cleanwater act.
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 regulatory compliance, we were not in material violation of any
regulations.

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Furukawa Electric Group Sustainability Report 2014: Web version

Biodiversity Conservation
Biodiversity Conservation Initiatives
In April 2011, we began providing information on our website about the biodiversity efforts we are conducting aspart of our Basic Environmental Policy. With a view to specifying the Group's biodiversity efforts, we compiled
significant targets in fisical 2014 into the comprehensive guideline of the Furukawa Electric Group concerning
biodiversity. We did this in recognition of the fact that our business, products and services are the result of
biodiversity, and that our operation has an impact, whether positive or negative, on eco-systems.
Also, following a major organizational reform in fiscal 2014, we integrated our biodiversity conservation system
into the Environmental Committee. Going forward, we will be modeling our regional activities centering on land
utilization and procurement under the new structure at each operational unit, in order to spread the activities
horizontally within our Group. We will also be using the “Symbiosis business unit promotion guideline” compiled
by JBIB (note 1), an initiative in which we participate.
(note 1) JBIB : Japan Business Initiative for Biodiversity. Founded in 2008, the JBIB is a joint effort by Japanese companies toact on behalf of biodiversity preservation.

Furukawa Electric Group Biodiversity Conservation Guidelines
1.

Evaluate the effects that our business activities have on the ecosystem, and minimize the harmful effects
while maximizing the beneficial ones

2.

To sustainably use resources and conserve biodiversity, consider more than ever the need to carry out
measures against climate change, conserve resources, recycle and reduce environmentally hazardous
substances

3.

Carry out activities in collaboration with local communities to conserve biodiversity

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