Furukawa Electric Group
Green Procurement Guideline

3rd edition

July 2023
Furukawa Electric Co., Ltd.

Contents
1. INTRODUCTION ............................................................................................................................2
2. FURUKAWA ELECTRIC GROUP BASIC ENVIRONMENTAL POLICY ...................................3
3. FURUKAWA ELECTRIC GROUP ENVIRONMENTAL VISION 2050 ........................................3
4. SCOPE OF APPLICATION .............................................................................................................4
5. TERM DEFINITION ........................................................................................................................4
6. REQUEST TO THE PARTNERS .....................................................................................................5
6.1 Establishment of an Environmental Management System..........................................................5
6.2 Implementation of Environmental Conservation Activities ........................................................51) Contribution to realizing a carbon-free society2) Contribution to realizing a recycling-based society for water & resources
3) Contribution to society in harmony with nature
6.3 Management of Chemicals in Products ......................................................................................61) Purpose
2) Scope of application
3) Managed substances
4) Establishment and operation of a management system for the chemicals in products5) Information provision on the chemicals in products
6.4 Others .......................................................................................................................................81) Cooperation in products survey2) Deployment to the partner’s business associates
7. GREEN PROCUREMENT OF OFFICE SUPPLIES / WORK SUPPLIES, etc. .........................8
8. OPERATION OF THE GREEN PROCUREMENT GUIDELINE ..............................................91

1. INTRODUCTION
In recent years, global environmental problems, such as intensification and frequent occurrence of
natural disasters due to climate change, heavy consumption of resources, biodiversity loss, pollution
by chemical substances, etc., have been becoming serious issues facing the world. In response to thesesocial issues, Furukawa Electric Group will contribute to achieving a sustainable society by working
on problems solve with the Group’s technologies, products, and services.
In 2021, the Group formulated the “Furukawa Electric Group Environmental Vision 2050” in orderto strengthen “Creation of Environmentally Friendly Business” and “Developing Business Activities
that Consider Climate Change”. It is composed of three pillars “Contribute to realizing a carbon-freesociety”, “Contribute to realizing a recycling-based society for water and resources”, and “Contributeto society in harmony with nature”. Through the provision of environmentally friendly
products/services and recycling-based production activities, we will contribute to the realization of asustainable society with the entire value chain. In particular, regarding greenhouse gas emissions frombusiness activities (Scope 1, 2), we have set the “Challenge target of zero emissions in 2050”.
To achieve the “Furukawa Electric Group Environmental Vision 2050” efforts across the entire value
chain are essential. The Group positions green procurement as an important part of our environmental
activity, and we will preferentially and continuously procure environmentally friendly products frombusiness partners (hereafter referred to as the partners) who actively promote environmental
conservation activities.
The cooperation of the partners is essential to these efforts. In this Guideline, we have presented theGroup’s way of thinking and matters that we would like the partners to make efforts together. We
would like to express our gratitude to all the partners for their understanding and cooperation in theGroup’s environmental activities, and we will continue to make efforts together with the partners toachieve the “Furukawa Electric Group Environmental Vision 2050”.
In this Guideline, concrete requests to the partners regarding environmental matters in Furukawa
Electric Group CSR Procurement Guideline are summarized. Please also refer to the Furukawa
Electric Group CSR Procurement Guidelines.

22. FURUKAWA ELECTRIC GROUP BASIC ENVIRONMENTAL POLICY
In 2008, the group formulated the “Furukawa Electric Group Basic Environmental Policy”.

3. FURUKAWA ELECTRIC GROUP ENVIRONMENTAL VISION 2050
In 2021, the group formulated the “Furukawa Electric Group Environmental Vision 2050”.
The “Furukawa Electric Group Environmental Vision 2050” is composed of three pillars “Contributeto realizing a carbon-free society”, “Contribute to realizing a recycling-based society for water andresources”, and “Contribute to society in harmony with nature”. And through the provision ofenvironmentally friendly products and services and recycling-based production activities, we willcontribute to the realization of a sustainable society with the entire value chain.
In particular, regarding greenhouse gas emissions from business activities (Scope 1, 2), we have set
the “Challenge target of zero emissions in 2050”.

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4. SCOPE OF APPLICATIONThis Guideline is applied to all the products that the Group procures from the partners.

5. TERM DEFINITION
The terms used in this Guideline are based on “ISO14001 (JIS Q 14001) Environmental Management
System”, “ISO9001 (JIS Q 9001) Quality Management System”, “JIS Z 7201:2017 Management ofChemicals in Products - Principles and Guidelines” and others shown below.
1) Procurement products: The Group classifies procurement products into production materials, etc.
and office supplies / work supplies, etc. The production materials, etc. represents all or part of
raw materials, parts, intermediate products, finished products, packaging materials, etc. and theiraccessories and repaired goods that configure the Group’s products. The office supplies / work
supplies, etc. represents generally procured items such as paper, stationery, office furniture, OA
equipment, lighting, fire extinguishers, and work supplies.
2) Management of the chemicals in products: In order to realize products that meet the Management
Criteria for Chemicals in Products, management standards shall be clarified and appropriate
management shall be implemented at each stage of design/development, procurement, production,and delivery.
3) Managed substances: This represents chemical substances subject to the Management of thechemicals in products. From chemical substances subject to legal regulations and industry
standards, chemSHERPA identifies.
4) chemSHERPA: Chemical information SHaring and Exchange under Reporting PAartnership in
supply chain (chemSHERPA) provides Guidelines for the management of chemicals in products,
Managed substance list, and information sharing and exchange forms, for smooth and efficient
information transmission in the supply chain.

46. REQUEST TO THE PARTNERS
By procuring environmentally friendly products from the partners that actively promote
environmental conservation activities, the Group will continuously reduce the environmental burden
throughout the value chain. We would like to request the partners to implement the following activities
in line with the “Furukawa Electric Group Basic Environmental Policy” and the “Furukawa ElectricGroup Environmental Vision 2050”.
6.1 Establishment of an Environmental Management System- Establishment of an environmental management system.
*Environmental management systems based on third-party agency accreditation registration systems such as Eco
Action 21, Eco-Station, and KES are also equivalent.

- Compliance with environmental laws and regulations.
- Target setting and action plan drawing up.
6.2 Implementation of Environmental Conservation Activities
Relating to “Contribute to realizing a carbon-free society”, “Contribute to realizing a recycling-basedsociety for water and resources”, and “Contribute to society in harmony with nature” stipulated in the“Furukawa Electric Group Environmental Vision 2050”, we would request the partners to make efforts
at each stage in consideration of the environmental impact of the entire life of products.
1) Contribution to realizing a carbon-free society- Reduction of greenhouse gas emissions through the use of products (enhancement of energysaving

performanceinuse-phase,energy-saving

products/technology

development,

downsizing/weight reduction, recycled materials usage, etc.).
-Reduction of greenhouse gas emissions during production (energy-saving activities, process
improvement, renewal to high-efficiency equipment, fuel conversion, electrification, renewableenergy usage, etc.).
- Reduction of greenhouse gas emissions during transportation (improved transportation efficiency,
electric vehicle usage, modal shift, etc. ).
2) Contribution to realizing a recycling-based society for water & resources- Product design in consideration of resource input amount (downsizing/weight reduction, long
life, recycled materials usage, reduction of scarce resource usage, search for alternative materials,etc.).
- Product design in consideration of disposal (easy separation/disassembly, easy reuse/recycling,material labeling on plastic products, reduction of environmentally hazardous substances/search
for alternative materials, etc.).
- Consideration for packing and wrapping materials (weight reduction/volume reduction,5

simplification, easy to reuse/recycling, recycled materials usage, reduction of environmentallyhazardous substances, material labeling on plastic wrapping materials, etc.).
- Minimize risk by conducting a water risk assessment in the locating area.
- Minimize water intake, cyclical use, rainwater/recycled water usage, wastewater management,etc.
- Promotion of waste reduction and recycling.
3) Contribution to society in harmony with nature
The Group has established comprehensive guidelines for efforts to conserve biodiversity and has
been conducting business activities in consideration of biodiversity based on the guidelines.
- Pollution prevention (atmosphere, water quality, soil/groundwater, etc.).
Furukawa Electric Group Biodiversity Conservation Guidelines
1. Evaluate the effects that our business activities have on the ecosystem, andminimize the harmful effects while maximizing the beneficial ones
2. To sustainably use resources and conserve biodiversity, consider more than everthe 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- Reduction and management of environmentally hazardous substances.
- Minimize negative impacts in plant locating areas by conducting impact assessments on
ecosystems.
- Nature conservation activities in collaboration with local communities.
- Protection of rare species, countermeasures against alien species.
6.3 Management of Chemicals in Products
To prevent environmental pollution from products and for protecting consumers, regulations on
chemicals in products have been enacted in each country and each region. As a globally operatinggroup, the Group collects and manages information on chemical in procured items, in order tocomply with the regulations on chemicals in products in each country and each region related to
the value chain.
We would request the partners to implement the management of chemicals in products in thefollowing manner.

61) Purpose- Obtain information and analysis data from the partners on chemicals in products procured by
the Group and manage them appropriately.
- Promptly provide customers with information on chemicals in products delivered by the group.
2) Scope of application
This is applied to all raw materials, parts, finished products, and packaging materials used in theGroup’s products, together with transportation pallets, jigs, tools, and auxiliary materials used in
all production processes at the group’s plants and outsourced processing plants.
3) Managed substances
The latest version of the chemSHERPA Managed substance list shall be used.
However, in order to respond to the industry to which the division/group company belongs andcustomer demands, follow the instructions of the division/group company trading with.
4) Establishment and operation of a management system for the chemicals in products- We would request to establish a management system for the chemicals in products. It is alsoavailable to establish a management system for the chemicals in products by incorporating it withan already established quality management system or environmental management system. By
establishing a management system for the chemicals in products, we judge that the related data
is not transient but is managed appropriately with consistency and continuity.
- Contents inspection for the managed substances in products shall be conducted following
chemSHERPA Guidelines for the management of chemicals in products and tools, etc.
-Self-assessment shall be conducted by utilizing the check sheet attached to chemSHERPA
Guidelines for the management of chemicals in products, and the management system shall be
improved/maintained.
5) Information provision on the chemicals in products- Investigation for the content status of the managed substances in products shall be conductedusing the chemSHERPA data entry support tool, etc., and the result shall be information sharedand exchanged with the requester.
- If environmental incompatibility is found in products, it shall be reported promptly. And,
cooperation for on-site audit after a separate consultation is requested.
- Spontaneous information provision is requested about the information on ingredients ofprocured products obtained after a transaction and considerations on disposal, also about updates
regarding accidents and violations by other companies.

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6.4 Others
1) Cooperation in survey- Cooperation is requested with the survey for environment-related surveys such as the chemicals
in products survey, greenhouse gas emissions survey, etc.
2) Deployment to the partner’s business associates- After identifying the major business partners, encourage them to reduce environmental impacts
by referring to the contents of this guideline.

7. GREEN PROCUREMENT OF OFFICE SUPPLIES / WORK SUPPLIES, etc.
Regarding office supplies / work supplies, environmentally friendly products are procured on apriority basis referring to socially recognized environmental labels in each country or region.
<References>⚫ ISO Standard for environmental labels
ISO classifies environmental labels into three types, Type Ⅰ to Ⅲ.
- TypeⅠ (ISO14024) “A third party certification” Environmental labelling by a third-party certification.
- TypeⅡ (ISO14021) “Self-declaration” Self-declared environmental claims by business operator.
- TypeⅢ (ISO14025) “Environmental declarations” Quantitative display of the environmental impact
of products.

88. OPERATION OF THE GREEN PROCUREMENT GUIDELINE
1) In order to respond to the industry to which the division/group company belongs and customer
demands, follow the instructions of the division/group company trading with.
2) Regarding the environmental requirements specified in the basic contract, memorandum,
purchase specifications, drawings, etc., which are specified separately from this Guideline,
judgmental decisions will be made by the relevant division in charge by comparing them withthe applicable laws and regulations.
3) The confidentiality of the provided information will be strictly handled and stored with sufficientconsideration.
4) Products selection and procurement will be conducted based on the provided information.
5) Changes in the provided information or new information shall be promptly provided the content
to the requester.
6) Questions, etc. related to this Guideline shall be checked with the requester.

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Related Guidelines
Regarding CSR procurement and quality assurance, please refer to the guidelines below.
- Furukawa Electric Group CSR Procurement Guidelines
https://www.furukawa.co.jp/procure/pdf/csr_guideline_en.pdf- Quality Assurance Guidelines for Partners
https://www.furukawa.co.jp/en/procure/pdf/qag_guideline_en_202010.pdf
Revision History
First edition enacted: April 2009.
Revised 2nd edition:

September 2019. Changes related to the chemicals in products. (Migration ofsubstance list to chemSHERPA Managed substance list., and deletion ofvarious forms.)

Revised 3rd edition:

July 2023. Changes to a configuration in line with the “Furukawa ElectricGroup Environmental Vision 2050”, addition of the relationship with the“Furukawa Electric Group CSR Procurement Guidelines”, and changes
related to office supplies / work supplies. (Eliminations of the List of
applicable environment labels and the List of applicable products for officesupplies / work supplies)

Published by:
Furukawa Electric Co., Ltd.
MONOZUKURI Innovation Div. Procurement Dept.
Risk Management Div. Environment Dept.

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