Environment Preservation Initiative

2
Reduction oforganic
chlorides
1
Energyconservation andglobal warming
prevention

Changes in the Company-Wide Energy Intensity per Unit Product3
Control ofchemicalsubstances
Coexistence with
global environment

5Greenprocurement

4
Industrial waste
reduction andrecycling

Energy intensity per unit product (index)

3

Achievement(index)Long-term target(1 % reduction over the previous year)

Coming-year's target (1 % reduction
over the previous year's achievement)

100
90
80
70
60
50
'95

'96

'97

'98
'99
Fiscal year

'00

'01

'02

Certain values for FY 1999 shown in Environment Report 2000 have been amended inthis Graph.

1. Energy-Conservation and Global Warming
Prevention(1) Progress, Organization and Targets of EnergyConservation Activity
In view of the revision of the Law for Promotion ofEffective Use of Resources in 1993, the Committee forCompany-Wide Promotion of Energy-Conservation wasfounded in April 1994 initiating company-wide activities
under the participation of those plants other than theDesignated Energy Management Plants.
The index-based managing method conventionallyused as a standard began to face difficulties due to thedrastic changes of company products into light, thin,short and small products. Accordingly, Furukawa's
proprietary management system was modified in 1997, incompliance with the Law for Promotion of Effective Useof Resources, to be based on energy intensity per unit
product, whereby a target was set to be a 1 % reduction
over the previous year in terms of this unit.

6We have successfully achieved not only the long-termtarget in which a 1 % reduction over the previous year is
aimed at based on the achievement of FY 1995, but also
the coming-year's target in which a 1 % reduction over
the achievement of the previous year is aimed at.
The energy intensity unit used in the Graph basically
employs the unit of "crude oil in kl / product in ton".
However, because major products of our plants are
greatly diversified covering copper, aluminum andplastics, simple addition of every unit value from eachplant is likely to be significantly influenced by thechanges in product constitution. Consequently, toalleviate the influence of changes in product constitution,
the energy intensity unit calculated using the values fromeach plant is weight averaged based on the consumed
energy amount converted by the crude-oil scale, thereby
yielding the company-wide energy intensity per unit
product along with its ratio over the previous year.

3Environment Preservation Initiative(2) Energy-Conservation Activities in FY 2000
The energy intensity per unit product for FY 2000 has
been reduced by 7 % due to energy-conservation
measures and the increase in production volume.
Concerning energy-conservation investment, two highperformance industrial furnaces shown below wereintroduced in FY 2000 succeeding FY 1999 under thesubsidy from the New Energy and Industrial TechnologyDevelopment Organization.
1. Melting furnace for aluminum recycling
2. Annealing furnace for copper strip using LPG
Energy Conservation at Melting Furnace for Aluminum Recycling
Regenerative burner

Energy Conservation at Oil Cooler of Forming Machines

Calendar timer

Calendar timer
HE1

Main heat exchanger
Pressure gage
for water

InverterInverter

Thermometer Cooling tower
for water

HE2

Inverter

PP

HE3

HE4

Secondary coolingwater tankPrimary cooling water tank

HE39
Equipment installed for energy conservation

P: Pump HE: Oil cooler for forming machine

Conventionally, the oil cooling system for forming machines was in operation evenduring holidays to avoid startup troubles in stabilizing water supply to 39 systems offorming machine. Moreover, the pumps were often forced to operate with reduced
output power to adapt themselves to the capacity of activated forming machines that isever changing. The system was improved by such measures as: 1) a secondary coolingwater tank was installed to enable circulation of cooling water with a constant pressure
eliminating interference within the pressure system, thus allowing supply of required
quantity of water with suitable pressure; 2) fans for the cooling tower were set to be
activated based on measured temperatures of the water tank; 3) the pumps and thecooling tower were set to rest during holidays automatically using a calendar timer.

Combustion room

Changes in Global Warming Gas Impact

Circulation pumpCan-end scrap

A melting furnace for recycling of aluminum can-end scrap exclusively has been
installed at the Fukui Works. As for the crude-oil burners of this furnace, regenerative
burners of energy-conserving type have been adopted, enabling an improvement of 58 %in terms of energy intensity unit per unit product compared to the conventional furnace.
The furnace provides excellent process yield, since it is based on the side-well principle
where the burner flame does not touch the scrap material, thereby suppressing
oxidation on the material's surface. Adequate consideration has been given to its
environment-related peripheral equipment, so that the furnace is under stabilized
operation in which an ample margin is maintained with respect to the emission
concentration of dioxins and the like.

Apart from this, waste-heat boilers have been introducedto existing diesel engine generators to suppress the use ofkerosene boilers; and pumps and fans at 11 divisions havebeen converted to be inverter-powered.
In terms of the impact due to global warming gas, CO2emission converted by the carbon scale decreased by 2 %over the previous year despite the increase in production
volume, achieving an emission volume equivalent to thatof FY 1990.

200
180

10.98

179
171

168

1.02

0.99
0.96

175

170

1.00

1.05
1.00

172

0.95
0.90

165

160

0.85

140

0.80
0.75
0.70
0.65
0.60
0.55

120
100'90'95'96'97
Fiscal year

'98

'99

'00

The carbon conversion scale used is the one announced by the Japan Federation ofEconomic Organizations. In Report 2000, the conversion coefficient for FY 1998 wasused for the calculation of FY 1999; and this Report 2001 amends the old calculation
using the revised coefficient for FY 1999, but still uses the coefficient for FY 1999 for thecalculation of FY 2000.

(3) Energy-Conservation Activities in Future
We intend to achieve saving of energy intensity per unit
product by 1 % or more every year, through promoting
energy-conservation activities such as provision ofmanagement standards and the like that conform to thejudgement of the Law for Promotion of Effective Use ofResources.

7

Relative value over FY 1990

Charging tank

Emission (thousand carbon ton /year)

Emission volume converted by the carbon scale
Impact ratio

1.04

3

Environment Preservation Initiative

2. Reduction of Organic Chlorides

Atmospheric emission volume (ton)Changes in the Atmospheric Emission of Organic Chlorides
250

Tetrachloroethylene
Trichloroethylene
Dichloromethane

200
150

Furukawa Electric has been strengthening appropriate
control of chemical substances in the company,
promoting toxic chemical substance reduction activities
such as elimination of ozone layer depletion substances

Target for FY 2001

100

Target for FY 2002: Nil

Name of chemical substance*Toluene
Dichloromethane
Trichloroethylene
XyleneOthers
Total

Emission and Transfer Volume (ton/year)
FY 1998
FY1999FY 2000
374400353
101759580
3325225146358365612642584

Name of chemical substance*Toluene
Dichloromethane
Trichloroethylene
XyleneOthers
Total

Handling Volume (ton/year)
FY 1998
FY1999FY 2000
6096745761229613680
3927603604479393229
333
1,807
1,642
1,551

5001995

1996

1997

1998
1999
Fiscal year

2000

2001

2002

We made efforts, consecutively to last year, to reduce theatmospheric emission volume of the three substances
noted above by 50 % over FY 1995. While those
substances were virtually eliminated in the area ofelectric wires, the conversion program to substitutesubstances in other areas were delayed due to tightened
quality requirements for the products, rendering thereduction level for FY 2000 as low as 32 % over FY 1999.
Although we could not attain our goal for reduction, wewere successful in completely eliminating
tetrachloroethylene that is most toxic among the threesubstances.
Considering the seriousness of impacts on the working
and general environments associated with the use of
these substances, we will make efforts to achieve thefollowing targets for atmospheric emission reduction:(1) FY 2001: 80 % reduction over FY 1995
(2) FY 2002: Complete elimination of the threesubstances

3. Control of Chemical Substances
It was decided to regularly report on the emission andtransfer volume of chemical substances from FY 2001 inaccordance with the PRTR law. Furukawa Electric has
been actively participating in the PRTR research program
sponsored by the Federation of Economic Organizations
since FY 1996, gathering detailed data.
In the future, we will actively promote our program toreduce further not only the emission and transfer volume
but also the handling volume of all chemical substances
not limited to organic chlorides.

* In accordance with the PRTR law

and reduction of organic chlorides. Furthermore, wehave recently formulated chemical substance control
regulations to centralize controlling the use of chemicalsubstances across the company, in which a mechanismand its supporting system to grasp and control thecompany-wide use, emission and transfer of chemical
substances have been structured for near-future
operation. Thus, strengthening of chemical substancecontrol and further reduction of toxic chemical
substances will be promoted hereafter.

Outline of Chemical Substance Control System
Application, register and use system● Application and register● Analysis of use
Application,
Substance usedregister and use
Organizational sector of use
Quantity of use

Balance statistics

Balance statistics system● Emission coefficient setting● Calculation of emission and transfer volume for
PRTR

8MSDS search system● Security information forchemical substances● Constituent, Emergency
measures, legislation,
dangerousness, toxicity

MSDS

3Environment Preservation Initiative

4 Reduction and Recycling of Industrial Wastes

Quantity (thousand ton)

Changes in the Quantity of Industrial Waste
40
3530
25
20
15
10
50TargetChanges in Recycling Ratio
Sludge
Total

Plastic waste
Wood and paper waste

Oil waste
Alkali waste

100.0

Recycling ratio (%)(1) Industrial Waste
The industrial waste reduction program that started in1993 set its second-term target in 1997, following its firstterm target setting, which reads as "a 40 % reduction overFY 1995 by FY 2002", and the target is under pursuanceat present.
During the course of time, the reduction program
proceeded satisfactorily through the activity of thePromotion Team for the Reduction of Industrial Waste.
In spite of the fact that the industrial waste recently
increased by 4 % over the previous year, which wascaused by the increased production volume including
optical fiber, a reduction of 30 % over FY 1995 is still
maintained thereby achieving the long-term target.
Major contents of the reduction activity include
recycling of plastic waste, alkali waste, sludge, woodwaste and paper waste in addition to condensation andvolume reduction of oil waste.
Moreover, Zero Emission Activity is going to bestarted at the last half of this year in certain plants,
aiming at deployment to a company-wide activity.

80.0
60.0
40.0
20.00.0
1995

1997

1998
Fiscal year1999

2000

Examples of Recycling
Recycling of oil waste was slow in progress at thebeginning. In these few years, however, condensationand volume reduction equipment have been introduced
to enable conversion of oil waste into fuel, greatly
improving the recycling ratio. Notable examples aregiven below.
● Introduction of depressurized distillation equipment
for condensation and volume reduction of oil waste● Introduction of UF (ultra-filter) equipment forcondensation and volume reduction of oil waste● Introduction of acid-resolving equipment forcondensation of oil waste● Condensation of water-containing oil waste using
heating equipment with a heat source of oil waste.

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Fiscal year

Recycling of Oil Waste by Depressurized Distillation
Dilation Distillation columnvalve(2) RecyclingThe ratio of recycling of Furukawa Electric has steadily
improved, now exceeding 60 % of the total industrial
waste. The growth in the recycling ratio of oil waste is amajor factor for this improvement.
This fiscal year, emphasis will be placed on therecycling of plastic waste where no appreciableimprovement in recycling ratio is seen.

Distilledwater
Distilledwater

Heat-pumpcompressor
Valve

Activatedcharcoal

Fan
Valve
Condensed
liquidWater content: 97%PPump

Tank

Oil waste

Pump PDischarge

Condensed liquid
discharge

25 timescondensed

Condensed
liquid tankProcessor

Fuel93Environment Preservation Initiative

5. Green Procurement
In order for Furukawa Electric to provide the customers
with our products having little environmental impact, it isessential not only to promote our environment-conscious
business activity, but also to reduce the environmental
impact of procurement items such as raw materials,components and auxiliary materials that we purchasefrom our vendors.
Based on such an idea, we are planning to operate
Green Procurement Program, a corporate initiative topurchase environment-friendly items through friendly
cooperation of our vendors.
In Green Procurement, in order to encourage vendors

who are promoting environment-conscious businessactivity to supply goods with little environmental impact,
a new assessment term of environment consciousness
will be added to conventional terms of quality, cost anddelivery to make an integral assessment, and priority will
be given to those vendors or procurement items that
acquire high scores.
Moreover, procurement items will be evaluated interms of chemical constituents and their usage in the
manufacturing process taking their toxicity into
consideration, so as to reduce environmental impact
integrally.

Concept of Green Procurement

Furukawa ElectricVendors

engaged in environmentconscious business activity
Green Procurement● Vendors promoting environment-conscious businessactivity● Raw materials, components and auxiliary materials
with little environmental impact

10● Development of products with little environmental
impact● Environment-conscious manufacturing technology

Customers
Supply of goods withlittle environmental
impact including environment-friendly products