Social Performance

Social and Regional Involvement
The Furukawa Electric Group is fulfilling its responsibility as a member of society through disaster relief support and exchanges with the local community.
Support and Cooperation●Cooperation with the Chiba Environmental
Restoration Fund
Chiba Prefecture has created a “Chiba Environmental Restoration Fund”*1 and aims tohave the best natural environment in Japan,
under the slogan of “Restore nature in our
hometown!” The Chiba Works of Furukawa
Electric asked for donations to this “Chiba
Environmental Restoration Fund” from all its

employees in the works. The 148,000 yen collected was given to the Chiba Prefectural Environment Foundation.
*1“Chiba Environmental Restoration Fund”
This fund was established in the Chiba Prefectural Environment Foundation to promote the “Chiba Environment
Restoration Plan” formulated in February 2002 by Chiba
Prefecture.

●Monetary Donations to Victims of Natural
Disasters
We contributed a donation of 1 million yen
towards the damage caused by “Katrina,” thehurricane that swept the southern US in August, and we contributed a donation of 200,000
yen towards the damage caused by the major
earthquake in northern Pakistan in October.

External Awards●Award from the Commissioner of the Fireand Disaster Management Agency
The self-defense fire brigade of the Osaka
Works has been awarded by the Commissionerof the Fire and Disaster Management Agency
for the merit of its safety efforts for fiscal 2005.
Since its launch in 1967, this fire brigade has
actively participated in disaster prevention
training sessions conducted by fire defense related organizations. Further, it has establisheda system for effectively utilizing water for fighting fires and utilizing fire fighting mobility withemergency support in mind, in order to be able
to respond when a fire or other disaster arises
in nearby works. It was awarded for its contributions to creating a safe local community andestablishing a voluntary safety system, seeking
to emphasize the cooperation system for local
neighborhood safety and increase consciousness of disaster prevention.

Certificate of Award from the Commissionerof the Fire and Disaster Management Agency●Recognition as a Quality Company in Ho
Chi Minh
Furukawa Automotive Parts (Vietnam) Inc.
(FAPV), an overseas affiliated company, wasrecognized by the Vietnamese government as aquality company. In addition to wire harnesses,
FAPV has constructed plants for making thematerials for wire harnesses such as electric
wires and parts, and is carrying out a continuous operation for wire harness production locally. It was recognized for the local contribution of its business and production in Vietnam.

The President of FAPV gives a speechas the representative of the company●Recognition by the Presidents of NTT Eastand West Corporations for the Environmental VA Proposal
Our success in realizing a recycling percentage of 100% (previously 67%) by conducting
material recycling of removed optical fiber
cables that had traditionally been disposed ofin landfills into recycled duct guards, and implementing the environmental VA proposal of“100% material recycling of removed opticalfiber cables” was highly evaluated, and we received a letter of appreciation from the presidents of both Nippon Telegraph and Telephone
East Corporation and Nippon Telegraph andTelephone West Corporation.

Receiving the award from the Executive Vice President of NTT
West Corporation

19●Award of Superconductor Science andTechnology
We were awarded the “9th Award of Superconductor Science and Technology ” by the Society of Non-Traditional Technology for our workon “the development of a 500m long high-temperature superconducting electric transmission
cable” conducted jointly with the Central Research Institute of Electric Power Industry andSuper-GM.
We revealed the numerous heat characteristics and mechanical characteristics during thecooling process, as well as the characteristics
of electric transmission, electrical insulationand heat insulation while operating throughthe public testing of our 500-m long high-temperature superconducting electric transmission
cable, the longest in the world. Further, by incorporating various structures such as modelsof actual lines for the test line, we were able
to discover unexpected phenomena and show
methods for resolving them. These accomplishments are major breakthroughs towards
practical use, and were evaluated as prominentaccomplishments in the superconductor field.

Award of Superconductor Science and Technology

Cleaning in Local Communities
The Furukawa Electric Group carries out
cleaning activities in local communities, including the areas surrounding its respective business bases, and also coastal areas and rivers.
In the headquarter district, we also participate in community activities in Otemachi andMarunouchi, and we collect garbage on thestreets once a month as our local environment
cleanliness activity.

Cleaning activities at respective locations and companies

Communicating with the Community●The Hiratsuka Works participated in an “Environmental Fair” hosted by the Hiratsuka City,
which aims to be an Eco City, and the Forum forEnvironmental Symbiosis Corporations*2, andintroduced its environmental activities to themembers of the local community.

●The Nikko Works invited local elementary andmiddle school students to a tour of the plant.
We received posters and letters of thanks. We
are also conducting plant tours for elementaryand middle school students at other works andaffiliated companies.

●We actively participate in local events ofrespective regions, communicating with members of the local communities.

*2“Forum for Environmental Symbiosis Corporations”

This forum was formed by an appeal of Economic Department, Industry and Labor Administration Section of Hiratsuka
city in 2000, consisting of corporations interested in Hiratsuka. The main activities include exchanging information
about the environment, conducting tours of environment-related facilities and hosting an Environmental Fair.

Exhibiting at the Hiratsuka Environmental Fair

A “thank you” note fromjunior-high school students

The Yawata Seaside Festival

Tour of the Nippon Foil Mfg. Nogi plant by
elementary school students

Nikko Waraku Odori Dance0Social Performance

Environmental Performance of the Works
Chiba WorksManager of Chiba Works

Toru Kumabe

Since beginning its operations in
Ichihara City at the center of the Keiyo
seaside industrial zone in 19 61 as
Furukawa Electric’s main plant, the Chiba
Works has been responsible for the production of electric wire materials andtelecommunication and power cables, aswell as the development and production ofhigh-capacity telecommunications equipment. At this works, all employees participate in efforts to treat the reduction ofenvironmental impact and environmental
conservation rooted in local communities
as top priority issues. In particular, weNikko WorksManager of Nikko Works

HiroyukiKamishiro

It is my hope that many of our employees empathized with the phrase “There
are no borders in the environment,” part of
the narration of a video for common environmental education where environmental issues that are arising throughout theworld were raised. There are no borders
in the environment, in water, land, or in
air. I have placed my hope that each andevery person would realize that it is thesame both inside and outside the fence
and act accordingly in the words “onephrase environmental declaration,” writing
them on my own environmental policy card

Hiratsuka WorksManager of Hiratsuka Works

Toshio Kikuta

This year, it became necessary to give
explanations to surrounding residents inorder to conduct soil purification. We proposed a current-best purification plan, butmany opinions were given at the information session, and we acutely felt the extent
of everyone’s concern and the company’ssocial responsibility (CSR). As an aspectof CSR, we are involved in the following
key issues.
In order to reduce waste, we haveswitched from accumulating waste at eachplant to a concentrated accumulation ofwaste for the entire works, with monitor-●Contributing to and Living in Harmony with the Local
Community
were able to achieve the targets for energy
conservation and the reduction of greenhouse gas emissions, beginning with theachievement one year ahead of scheduleof zero-emission (less than 1% landfill
waste), which we have been involved infrom five years ago. Also, as activities
closely linked to the local community, we
have conducted environmental education
during environmental months for nearby
elementary school students, cooperated
with the Chiba Environmental Restoration
Fund and provided wood planters and car
stops made from waste materials for the

Yawata Seaside Festival, working to contribute to and live in harmony with thelocal community.
Planters created from recovered wood drums

Receiving a letter of appreciation from the Chiba
Environmental Restoration Promotion Committee(Chairman: Ms. Domoto, Governor of Chiba Prefecture)●Environmental Contributions Over Bordersthat I carry with me. We are promoting
the diffusion and penetration of an interestin maintaining the environment, with theawareness that the plant becoming messyis the same as a home becoming messy.
In order to preserve the beautiful natureof the Nikko National Park, the thoughts
and feelings of the people who live there
must be beautiful; otherwise, it cannot
be maintained. In our role as a works
which has the most employees involved
with Nikko City, we are making an effort tocreate people and a region where we can
comfortably live, not only through Waraku

Odori dance, but also by taking on local
beautification activities and introducing
the activities of the works to local elementary and middle school students.
Cleaning aroundthe works

Plant tour by local juniorhigh school students●Aiming For Activities with an Awareness of CSR
ing personnel for sorting. Achievement ofzero-emissions by the end of fiscal 2006
has now come into scope.
To reduce CO 2 emissions, we introduced
NAS batteries that effectively utilize nighttime electricity, and we have switched ourfuel from butane to city gas. As a result,
we expect to see a total reduction effect ofapproximately 1200 t /year.
To conserve energy, we have createda sunshade arbor on the west side of theoffice as shown in the picture. This lowers
the room temperature by approximately three degrees, allowing us to alleviate

21

some of the air conditioning impact. The
greenery is also visually refreshing.

Sunshade arbor on the west side of the officeOsaka WorksAt the Osaka Works, we are conducting
cleaning activities outside the premises
during the environmental month in June,
and we have continued to do this sinceacquiring ISO14001 in 2002.
To begin with, around the middle ofeach month the back-office staff members clean outside of the buildings in theManager of Osaka Works works for 30 minutes all at once, and inJune, some of them worked together with
TatsuoViscas, Furukawa Logistics, and Japan
YoshisuePrecision Pipes to clean outside the premises. We went to the walk outside thepremises and the pavement alongside Doi

Mie Works
The Mie Works is located in Kameyama
City, in a place of natural beauty at thefoot of the Suzuka mountain range.
Kameyama City has recently drawn up
the “Kameyama City Basic Environmental
Plan,” it calls for residents, businesses,
and the administration to work together in implementing environmental conManager of Mie Works servation activities. Our works is also
actively participating in activities held by
Nobuo Araithe administration as a member of thelocal community and society, and we havealso drawn up plans ourselves and acted
upon them, actively participating in local

Yokohama WorksThe Yokohama Works mainly has staff
employees, such as those of the laboratory. We have been conducting a varietyof activities since acquiring ISO14001
in 2002, and of these we have emphasized “research and development withthe environment in mind.” In researchand development, we use a wide variety
Manager of Yokohama Works of, and state-of-art chemical substances
than any other works. To make this posMitsuyoshi
sible, we have created our own specialShibata
ized committee to thoroughly investigate
whether a substance can be used andhow to handle it, implementing measures●Cleaning Outside the Premises, Realizing Each YearThat Treasured FeelingPark directly across from us, not only picking up empty cans, trash, and cigarettebutts from the pavement and gutters, butalso sweeping the pavement. The time isstill 8:30 in the morning, so many commuters from nearby companies (plants)
flash us a look of doubt as they pass by.
The mere act of working hard at cleaning
and working up a sweat leads to a curious
feeling almost of pride welling up inside
me. It is a slightly strange feeling.
Perhaps this is what it feels like when
you have contributed to society. I would
like to treasure this feeling.

Cleaning outside the premises●Environmental Conservation in Cooperation with the
Local Community
environmental conservation activities.
Recently, we have participated in “Riverand Ocean Clean Strategies,” “National
Road 1 Clean Strategies,” volunteer activities, and exhibited at the “Experience theEnvironment Fair for Children 2006.” Wealso cleaned the public roads around theworks for approximately 1.5 km, and havereceived a high evaluation from the local
community and authorities. Further, wehave made presentations at “Meeting
Place for Environmental Activities,” andwe intend to continue to promote environmental conservation in cooperation withthe local community. Meanwhile, in termsof activities within the works, we havefurther promoted activities that contributeto environmental conservation in our daily
production activities in addition to continuing to prevent pollution.

During break in volunteer activities●Research and Development with an Emphasis on theEnvironmentthat absolutely prevent leakage to theenvironment. We have also incorporated Design for the Environment (DfE) todevelop products with the environment
in mind. Meanwhile, utilizing our analytical technology that we have developed
over years, we are contributing to theanalytical assessment of environmental
impact substances for all of the Furukawa
Electric Group products. In addition, allof the employees are working together
in energy conservation activities, waste
reduction activities, and activities toclean the neighboring areas, and we are22

aiming to become a works that places
environmental conservation first.

Cleaning neighboring areas

Social Performance

Involvement with Employees
Relations with Employees●Views on the Relationship Between the
Company and its Employees
Furukawa Electric is striving to build a sincere relationship with its employees based ontrust and responsibility. In addition, throughbusiness and work, we are aiming to establish
more constructive relations in which the company and our employees can enhance eachothers abilities and value.
●Employee Labor Management
In terms of employee labor management,
we are working towards the appropriate management of labor on a daily basis, in accordance with the Labor Standards Law and otherrelated laws and company rules. Particularly
in 2005, reflecting upon the problems* identified by the Labor Standards Supervision Office,
we strengthened management levels for working hour management throughout the company in all divisions.
*From the fact that working hour management was not con-ducted appropriately, with the underreporting of overtime
working hours for some of the back-office staff, it became
clear that as a result there were unpaid augmented wages
in many of the divisions. We conducted a company-wide
investigation, paying wages for the unreported hours andvoluntarily releasing the recounting of events external to thecompany (October 28, 2005).

●Placement, Evaluation and Job Conditions
We are working to provide opportunities forplacements and job assignments, emphasizing
individual motivation and abilities based on theconcept of equal opportunity. As a part of this,
we are implementing various interview systems and providing opportunities for employees to reflect on their career goals.
Regarding evaluation and job conditions, wehave adopted an incentive program for the fairevaluation and treatment of our employees, according to their abilities and performance. We
are also working on training managers to have
performance evaluation skills, in order to improve the management of the system and win
the trust of our employees.

Various Systems●Education and Training Systems
We believe that the strength of our company lies in the synergy of the abilities of each
employee at the work site and that each employee’s ability is enhanced in a practical way
through everyday work.
Furukawa Electric provides a place for individuals to grow through work, and provides
opportunities to support a proactive approachfor the development of skills of motivated employees. These opportunities include training,
distance learning and support for acquiring
qualifications.
●Support System Corresponding to Various
Ways of Working
We respect our employee’s lifestyles andhave established various support systems thatenrich each individual’s working life.

Purpose / Content

Flexible Working Hours

We adopt a system of flexible working hours which enables employees to work efficiently according to business demand. We
support employees having flexible working hours that suit their lifestyle.

Refresh Holiday

Employees are able to take three consecutive days off once a year, and five consecutive days off every five years, so that they canenjoy well-planned holidays and refresh their minds and bodies.

Holiday Accumulation

A maximum of 10 days out of the remaining regular annual holidays can be carried forward to the accumulated holidays (effective
for five years).

Maternity and Paternity Leave

Any employee (male or female) who has a child under one and a half years of age can take child care leave for a duration of theirchoice, until their child is one and a half years old.

Nursing Care Leave

In cases where an employee’s spouse, child(ren) or parent(s) (including the spouse’s parents) need nursing care, that employee isable to take nursing care leave for up to one year, if certain conditions are fulfilled.

Retirement Seminar
Middle Age Seminar

For union members who reach a certain age, union and management jointly provide these seminars, with the aim of enhancing
their current lifestyle and supporting their lifestyle after retirement.

Re-employment After Retirement

We have a re-employment system for employees who have reached the retirement age of 60.

23

Safety Efforts●Safety Record
The frequency rate for cessation of work infiscal 2005 was 0.25, and there were two accidents that led to the cessation of work.
0.6

Frequency Rate for Cessation of Work
0.54

0.5

0.47

0.4

0.36

0.30

0.3

0.25

0.2
0.1

0.09

0.0

2000

2001

2002

2003

2004

2005 (Fiscal year)●Company-Wide Priority Safety Activities
Activities are carried out by focusing on thecompany-wide priority safety activities according to the Company-Wide Safety and HealthControl Guidelines for fiscal 2005.
[Company-Wide Priority Safety Activities]
1.“Enhancement of the compliance management system of dangerous and hazardous
work-II”~Establishing a system for pursuing qualifiedwork~
2.“Eradication of unsafe behavior due to thepromotion of work standardization”~Identify the key points for equipment safety
and work safety~
3.“Thoroughgoing safety and health education to transferred personnel”~Thoroughgoing OJT education using theoperating manual to transferred personnel,
temporarily transferred personnel, external
workers, temporary staff, and trainees~●State of Safety Activities
We are promoting safety activities that aim for“from zero accidents to zero risk” and “frompreventing reoccurrence to predicting and forecasting.”
1.Promoting the standardization of work andthe essential safety of equipment
We are promoting the standardization of workand the essential safety of individual facilities
and equipment, incorporating the instincts
and techniques of work from the perspectiveof the triune aspects of safety, quality andproductivity.
2.“Hiyari-Hatto” fear and alarm activities
As a method for assessing residual risks forwork and equipment and making specific improvements, as well as increasing sensitivity

to danger, we are carrying out Hiyari-Hatto
fear and alarm activities with all employees
participating.
3.Interactive individual safety interviews
With the aim of increasing safety awarenessbased on “steadily looking” at unsafe working
conditions, we are conducting “interactive individual safety interviews” to foster communication and a common awareness of unsafe
behavior between overhead managers andworkers, seeking to correct behavior.
4.Auditing the state of adherence to laws on
dangerous and harmful work
We used a checklist to conduct an internal
audit of the state of adherence to laws on
handling harmful substances, wearing protective gear, inspections mandated by law,and certified workers.
5.Safety and health education to transferredpersonnel and temporary workers
We are conducting OJT education using the“operating manual” to instruct people withless than one year of working experiencethrough periodic skills assessment and individual safety interviews.

results of a medical examination, and using a
consultation system which involves a medical officer and the employee who works longhours.
●Responding to asbestos-related illnesses
Since the asbestos problem was covered on
media during the summer of 2005, we investigated workplaces that had handled asbestos
products in the past and conducted special
health exams for employees at these workplaces. We also sent notices urging retired
employees of the workplaces to take special
health examinations. As of now, one retired
employee who had been in charge of underground electric power line installation died ofmesothelioma and has received workers’ accident recognition.
There are currently no workplaces that handle products containing asbestos.
For illnesses caused by asbestos, the illness
develops after an extremely long period of timesince exposure, often 20 or 30 years, and wewill continue to successively follow up on theseillnesses.
●Promoting separate smoking areas
We set up more than 70 smoking rooms
during fiscal 2004 to promote separate smoking areas, in line with the “Concerning the
Guidelines for Measures on Smoking in the
Workplace,” a notification issued by the Director-General of the Labor Standards Bureau in
2003. Thanks to these efforts, the companywide percentage of smoking among males in
the company decreased from 53% in fiscal
2002 to 46% in fiscal 2005. In the future, wewill continue to prevent passive smoking andactively promote nonsmoking.

Health Efforts●Mental health education
Furukawa Electric has been promoting company-wide mental health measures since 2002,
in line with “Guidelines for Promoting Mental
Health Care in Enterprises” published by the
Ministry of Health, Labor and Welfare. Fromfiscal 2002 to fiscal 2004, we conducted basic
education for all of our employees on mental
health. In fiscal 2005, we are currently offering
an advanced course, incorporating case studies, to help them acquire skills in practical response for preventing and responding quickly
to any mental health problems.
●Health care for employees that work longhours
Based on the guidelines issued by the Labor
Standards Bureau, “Measures to be Taken by
Employers to Prevent Health Impairment Due toOverwork,” we are committed to checking up
and following the health care of our employees that work long hours by placing strict restrictions on the time they work, based on the

24

（%）

Smoking Rates (Males)

60
50

53

53

40

48

46

2004

2005 (Fiscal year)

30
20
10
0

2002

2003

Social Performance

Involvement with Employees
Compliance
The Furukawa Electric Group defines “compliance” as “more than simply abiding by laws
and regulations. Rather, compliance is based on
the values and ethics that the company and its
employees adhere to, as responsible membersof society.” In June 2004, we established the“Furukawa Electric Group Action Guidelines”
as the basic philosophy for adhering to ethics.
In June 2005, we established internal regulations on conducting compliance, a system forpromoting compliance, and an internal reporting system, and we are promoting compliancebased on these.
●System for promoting compliance
As the central organization for promoting
compliance, we established the Central Compliance Committee with the CAO (Chief Administrative Officer) as the chairman. We haveset compliance committees in the works andbranches around the country as subordinate
organizations.
Through these organizations, we are conducting enlightenment and educational activities, getting a grasp on compliance risks andinvestigating and responding to internal reporting matters.
●Compliance education
Based on the “Furukawa Electric Group Action Guidelines,” in June 2005 we have compiled the “Action Guidelines for Company Officials and Employees” that demonstrated
specific codes of conduct and the “Manual on
Action Guidelines for Company Officials andEmployees” that contained additional explanations. We combined these along with messages from the President and CAO into a booklet
called the “Compliance Handbook,”which we distributed to all employees,
conducting education on compliancein the workplace.

●Internal reporting system
In order to realize early discovery and correction of compliance violations, we introduced a system where company officials andemployees can report directly to the Central
Compliance Committee (internal reporting system) from July 2005. External specialists also
serve as windows for these reports, utilizing amechanism where mutual contact between thecompany and reporting body is possible, giving
feedback to the reporter on company response
after ensuring strict anonymity for the reporter.
The results of the investigations into reported
matters and our response to them is reported
to the board of directors as appropriate.

●Protecting personal information
On the occasion of the full-fledged enforcement of Act on the Protection of Personal Information in April 2005, the Furukawa ElectricGroup began operating under the awarenessthat protecting personal information is a social
responsibility given to companies. We established internal regulations concerning the protection of personal information called “Guidelines for Handling Personal Information” andsought to thoroughly spread awareness. We
are working to maintain an appropriate control
system for personal information and preventthe leakage of information.

Furukawa Electric Group Action Guidelines

We, company officials and employees of the Furukawa Electric Group, will:

1
2
3
4
5
6
7
8

Abide by the laws and regulations in Japan and abroad, and act in conformity withinternal rules and external rules such as social codes and ethics;
Properly display and adequately disclose corporate information, including financial
statements;
Deal with antisocial groups in a resolute manner;
Aim to be a company that is useful to society by developing products that aid thedevelopment of society and by providing reliable products and services;
Try to act with consideration for the protection of the global environment;
Respect human rights, cultures and traditions as a member of the international
community;
Create a company in which employees can feel a sense of reward, ease andfulfillment; andMaintain and develop sound and good relations with all stakeholders.

5Environmental Performance of Affiliated Companies
Sunsunny Industry Co., Ltd.

Head Works: 54-12 Inuzukadaiyama, Oyama-shi, Tochigi
Number of Employees:41
URL: http://www.sunsunny.co.jp/
http://www.furukawa.co.jp/netsu/
Contact: Promotion Section of ISO
TEL : +81-285-24-3191
FAX : +81-285-24-3083

The Awareness of the Environment has Increased DramaticallyHistory
Our company began its operation in Aomori
Prefecture as a joint business venture with
Furukawa Electric and Miyoshi Industry Co., Ltd.
in 1976. Later, in 1981 we moved to the current
location in Oyama, and we became the wholly
owned company of Furukawa Electric. Since
our founding, we have worked as the pioneersof floor heating systems, conducting everythingfrom development, production, operation, andfollow-ups.
As our company products are installed asheating devices in buildings, we fall under the
Building Standard Law. We are also promoting
the development of products that are environmentally friendly, such as products that fallunder the highest ranking of F☆☆☆☆ forformaldehyde emission division by JIS and JAS
and Hot-Water Floor Heating System called“Yukadan Hot Cool” using a heat pump that
consume a low level of energy when used.
Preparatory stages

Efforts for Environmental Preservation-Activities to acquire ISO14001 certificationOur company acquired ISO9001 certificationin 2002, and we are aware that environmentally friendly activities are important issues forthe company. We have decided to carry out
environmental preservation activities based on
ISO14001. In July 2004, the company's president made the kickoff declaration, “Acquisition
during fiscal 2005,” and began conducting
activities towards acquisition. Newly placing
an individual in charge of the environment in the
Promotion Section of ISO that was the promotion
department for quality systems, this became thehead office for environmental management systems where preparations were begun. First, we
acquired environmental manuals and related
documents from companies that had alreadyacquired certification within the Furukawa
Electric Group and used them for reference increating a mechanism. For study groups on
ISO standards and training of internal auditors, we asked for instructors from Furukawa
Electric and deepened the understanding of theemployees who are central to our activities. In
December 2004, as we were in the midst of
making these preparations, the ISO14001 standards were revised, and we struggled to acquire
information on the revised points and their interpretation.
Environmental policy
In June 2005, theP resident set theenvironmental policy,
and these were distributed as wallet size
versions to ensure athorough awarenessof the policy among all employees. Further,
this policy was explained from time to time inour monthly company-wide morning meetings.
The President wished to have the purposes andtargets follow upon this policy, and to conduct
activities that would have a positive effect on
accounts, so he set indicators where the reduction of the amount of environmental impact isreflected in cost reductions.
Assessment of law-abidance
In terms of law-abidance, we newly investigated and sorted out which tasks for each process fell under what laws and regulations. We
measured noise and vibrations and rechecked
the storage conditions of dangerous substances, confirming that there were no problems.
For wastewater, we reviewed the wastewaterdisposal method. As the waste liquid from thecleaning water in gluing and printing equipment
did not contain harmful substances, after filtration we were taking the method of letting it seep
into the ground. From the perspective of risk
management, we stopped this format for waste
liquid from production line and decided to havethe waste liquid collected by a disposal company. In fiscal 2006, we are conducting activities
after incorporating the reduction in the volumeof this waste liquid commissioned for collection
into our targets. This investigation and sorting
was a good opportunity for us all to study thelaw and was effective in raising awareness ofcompliance with laws.

6

Certification audit
We had a pre-survey by the certificationbody in the August before actual certification
audit, and we checked
to ensure that there
were no major defects
in the system we hadbuilt. In this pre-survey, we received requests to improve theaspect evaluation system and were told of our lack of interpretationof the standards. We had the actual audit inlate October to early November. The results of
the audit revealed no major nonconformities,
and four minor nonconformities. We immediately corrected the nonconformities and reported this to the certification body. The following
December, we were able to acquire certification
without any trouble.
Effects and future issues
As a year has not yet passed since we began
full-fledged activities, numerical effects cannot
yet be seen, but information has been shared
and there has been an increase in the awareness of the environment among all employees.
In the future, we can expect major tangible andintangible results. We have also begun to see
voluntary beautification activities in the areas
surrounding the plant, with employees picking up trash on the public roads and clipping
hedges.
The two issues that were mentioned were 1)
the improvement of slightly heavy mechanisms
and 2) reflection in accounts, and we plan tosee results from these improvements.

Social Performance

Environmental Performance of Affiliated Companies
Shodensha Co., Ltd.

Headquarters: 5-23-8 Nishi-Gotanda, Shinagawa-ku, Tokyo
Tokyo Factory: 23-8 Nishi-Gotanda, Shinagawa-ku, Tokyo
Mie Factory: 16-13 Nobono-cho, Kameyama-shi, Mie
Saitama Factory: Aza-sakuranami, Ooaza-kitanagai, Miyoshi-machi, Iruma-gun, Saitama
Engineering Department: 2-10-4 Oonodai, Midori-ku, Chiba-shi, Chiba
Number of Employees: 122
URL: http://www.ksd-shodensha.co.jp/
Contact: Quality Assurance Department
TEL : +81-3-3493-1282 / FAX : +81-3-3493-1727

We are aiming to make environmental management systems more efficient and slim
History
Our company was founded in 1922, andin 1950 the current Shodensha Co., Ltd. wasestablished to produce telecommunication line
facility materials mainly of ready access terminal box. Since then until today, we have given
technical aid on the development of line products while consecutively increasing the types of
products we sell.
Due to capital participation of Furukawa
Electric in January 1985, we were able tostrengthen technological development, diversify
the items sold and work to accumulate technical strength.
In June 2002 we merged with Shinseidenzai
and in September 2004 we relocated the Chiba
Factory functions to the Saitama Factory.
Our current organization is composed of theheadquarters, engineering department, Tokyo
Factory, Mie Factory, and Saitama Factory.
Our main products are optical cable closure(for underground and aerial) and optical cabinets. We are supporting “information and telecommunication” in the optical and broadband
era from the aspect of facilities and equipment.

Efforts for Environmental Preservation
Our company recognizes that preventing
the pollution of the earth and preserving theenvironment are the most crucial issues for all
mankind, and in the production of devices fortelecommunications lines, we are promoting
environmentally friendly business activities.
In June 1999, we acquired ISO14001 certification, and in June 2005 we switched to
ISO14001:2004. In July 2005 we combined
the manuals for the quality management systemand the environmental management system,
aiming for the increased efficiency of operations
and the streamlined management.

Priority Items (Fiscal 2005)
1) Adhering to environmental laws and regulations
From June 2003, we have posted the relevant
environmental laws, regulations and our customers’ green procurement guidelines (referred

to as environmental laws and regulations, etc.
hereafter) on the intranet, publicizing them within the company.
We have posted the following environmental
information on the intranet, and are aiming forthe sharing of environmental information.
Headquarters Engineering Department

Server

Shodensha Intranet

Tokyo Factory

Mie Factory

Saitama Factory

Environmental Information●Environmental laws and regulations, etc.
●Environmental data
Environmental performance
Environmental accounting●Green procurement investigation report2) Developing products with a minimal impact
on the environment
With optical measurement technology andplastic molding technology as our foundation,
we are conducting optical access product development.
Taking into consideration our customers’
green procurement guidelines, we conduct product assessments and consider what materials
and parts to use, and how to design products tominimize the impact on the environment, notonly when the manufacturing the products, butalso when customers use them and when they
are disposed of as waste.
3) Energy conservation
Tokyo Factory carries out assembly, and Mie
Factory and Saitama Factory carry out plastic
molding and assembly.
The specific consumption of electricity forthe assembly factory in fiscal 2005 (comparedto sales) was reduced by 28% compared to theprevious fiscal year.
The specific consumption of electricity forthe molding factory in fiscal 2005 (compared tothe amount of plastic used) was reduced by 1%
compared to the previous fiscal year.
Molding factory account for approximately
90% of our company’s electricity consumption. In order to reduce the electricity consumption of molding factory, we are engaging inefforts to improve the operating rates of molding
machines and shorten the setup time.
4) Reduction of waste
The specific waste plastic generation for the
molding factory in fiscal 2005 (compared to theamount of plastic used) increased by 20% dueto the launch of new products.
In order to reduce waste plastic generation,
we are engaging in efforts to increase the product yield rate and also to reduce the short downtimes of molding machines.
We installed a padding material manufacturing machine in Mie Factory in April 2002,
in order to reuse used cardboard as padding
material for packaging, and we are continuing to
reduce the amount of cardboard waste.

Padding material using waste cardboard5) Promotion of recycling
Since 1999, we have been recycling the covers of the connecting terminal boxes that wedeliver to the Nippon Telegraph and Telephone
East Corporation and the Nippon Telegraph andTelephone West Corporation, working towards
the effective use of our resources.

Nikkei Kakoh Co., Ltd.

Headquarters: 3-8-39 Tagawa, Yodogawa-ku, Osaka-shi, Osaka
Headquarter Plant: 3-8-39 Tagawa, Yodogawa-ku, Osaka-shi, Osaka
Hiroshima Plant: 1368-1 Sasabe, Takamiya-cho, Akitakata-shi, Hiroshima
Sendai Plant: 11-1 Myojindo, Kaminomyo, Shibata-machi, Shibata-gun, Miyagi
Oyama Works: 54-3 Inuzuka Aza Daiyama, Oyama-shi, Tochigi
Number of Employees: 264
Contact: Environmental Office, Sendai Plant
TEL : +81-224-55-1441
FAX : +81-224-55-2879

We will implement various measures to decrease the impact on the environment
History

Priority Items (Fiscal 2005)

Our company was newly launched upon themerger of the former Nippon Keikinzoku Kakoki
and the former Tohoku Furukawa Keikinzoku
Kako in December 2001. Our headquarters
are in Osaka, and we have plants in Osaka,
Hiroshima, Oyama (Tochigi Prefecture) andSendai (Miyagi Prefecture).
Our company works mainly with aluminum
joining technologies (Headquarter plant: welding, Sendai plant: brazing), manufacturing automobile parts, bicycle parts, large-scale welded
structures, farm equipment parts (assembly),
precision instruments (assembly), and heatsinks.

•Reduction of greenhouse gases
1) Reducing the amount of liquefied petroleum
gas usedOn the continuous paint line of Hiroshimaplant, we have removed conveyers and paintrobots, switching to hand painting line torespond to the recent trend of various products
and small lots, to reduce energy consumption.
We have reduced the amount of liquefied petroleum gas used in the drying process by approximately 74% compared to fiscal 2000.

Efforts for Environmental Preservation
Our company believes that global environmental problems are crucial challenges for all
mankind, and we have placed them as one of
our top priority issues for company management. All of our employees have an enhanced
awareness of the global environment and areengaged in environmental preservation activities.
■August 2003, Hiroshima Plant acquired
ISO14001.

(tons)

140

Amount of Liquefied Petroleum Gas Used

mantled unnecessary welding machines, conducted overall inspections of air conditioning
systems and turned off lights when they are notneeded, achieving a 10% reduction when compared to fiscal 2000.
(MWH)

5000
4000
3000
2000
1000

120

0

100
80
60
40
20
0

2000

2001

2002

2003

2004

2005 (Fiscal year)2)Reducing the amount of natural gas used
At the alumite facilities in the Osaka
Headquarter Plant, we consolidated two boilers
to one, and reduced the amount of natural gas
used by approximately 21% compared to fiscal
2000.
(10,000 m3)

16

Amount of Natural Gas Used

90
80

12

2001

2002

2003

2004

2005 (Fiscal year)

Amount of Dichloromethane Used
Emissions
Transferred volume

70

10

60

8

50

6

40

4

30

2
0

2000

• Reducing the amount of environmental impact substances used
At our company, we use dichloromethane
for the purpose of cleansing fat and grease on
the processed parts. We conducted an overall
maintenance of the whole ultrasonic cleaning
facility including the chiller and pipes in 2002.
By suppressing the emissions into the atmosphere, we were able to reduce consumption by
32% compared to fiscal 2000.
We will engage in efforts to consider substitute cleansers and cleaning methods towards
completely eliminating the use of chlorinatedorganic solvents.
(tons)

14

Amount of Electric Power

20
2000

2001

2002

2003

2004

2005 (Fiscal year)3)Reducing the amount of electric power
In addition to the reduction in the amount ofelectric power consumed due to the switching
to hand painting of Hiroshima plant paint line,
we have reduced mercury lights and fluorescentlights, removed unnecessary electric wires, dis-

8

10
0

2000

2001

2002

2003

2004

2005 (Fiscal year)