Furukawa Electric GroupCSR Report 2010

FURUKAWA ELECTRIC GROUP PHILOSOPHYCORPORATE PHILOSOPHY
Drawing on more than a century of expertise in the development and fabrication of advanced materials, we willcontribute to the realization of a sustainable society through continuous technological innovation.

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

THE FURUKAWA ELECTRIC GROUP CREDO

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

FURUKAWA ELECTRIC GROUP ACTION GUIDELINES
The officials and employees of the Furukawa ElectricGroup will perform their duties in accordance withthe following action guidelines. We, the Company
officials and employees of the Furukawa ElectricGroup, will:

4. Properly display and adequately disclose financial
statements and other corporate information.

5. Deal with antisocial groups in a resolute manner.
6. Strive to act with consideration for the protection

1. Fully recognize the responsibilities of the Furukawa
Electric Group to society and strive to maintainand improve on solid, friendly relationships withall of our stakeholders and contribute to thesustainable development of society throughcorporate, environmental and social activities.

of the global environment.

7. Respect human rights, cultures and traditions as amember of the international community.

8. Create a company whose employees feel
motivated, comfortable and fulfilled.

2. Aim to create a company that is useful to society
by developing products designed to aid thedevelopment of society and by providing reliable
products and services.

3. Comply with domestic and international laws andregulations and act in accordance with internal
regulations and other rules such as social norms
and ethics.

1 Furukawa Electric Group CSR Report 2010

9. Continuously strive to undertake social
contribution activities based around the coreaims of nurturing future generations, promoting
sport and culture and living in harmony withlocal communities, as well as business-related
activities, in order to maintain and strengthencommunity ties built up over centuries and create
a better tomorrow for future generations.

Editorial Policy

Following organizational reforms in February
2007, the Furukawa Electric Group establisheda CSR Division to step up its CSR management
activities. We consequently changed the name ofthe publication titled, “Environmental and Social
Report,” in 2007 to “CSR Report,” and we have
expanded the range of information covered by thereport to include both social and financial aspects.
This 2010 report features initiatives aimed atrealizing a recycling-oriented society implemented
by the Furukawa Electric Group over many years.
At the same time, the report highlights those new
eco businesses that the Group plans to pursue
over the next three years.

Contents
1 Furukawa Electric Group Philosophy/
Furukawa Electric Group Action Guidelines

Scope of This Report
Organizations Covered
This report covers Furukawa Electric Co., Ltd. and all
members of the Furukawa Electric Group, including
affiliated companies.

2 Editorial Policy
3 Furukawa Electric Group Overview
5 Messages from Management

7 Past and Future
FeatureEnvironmental Businesses

Easy-to-Recycle
8 Focus 1 Developing
Optical Fiber Cables

Scope of Themes Covered
This report covers Furukawa Electric Co., Ltd. andits 106 consolidated subsidiaries. Exceptions to thescope of the data collected have been clearly stated.

Period Covered
From April 1, 2009 to March 31, 2010
Includes selected information on past initiatives and*activities during fiscal 2010.

Source Guideline
Environmental Reporting Guidelines (fiscal 2007
version) published by the Ministry of the Environment

Websitehttp://www.furukawa.co.jp/english/csr/index.htm

Creating New Eco Businesses That Take

11 Focus 2 Full Advantage of Material Technologies

13 Management
13 Corporate Governance
14 CSR Management

16 Initiatives for the Environment
17 Basic Environmental Policy
18 Environmental Management
20 Material Flow
21 Targets and Performance
23 Environmentally Sound Products
24 Environmentally Conscious Production
26 Chemical Substance Management
27 Environmental Risk Management
28 Environmental Accounting

29 Initiatives for Society
Inquiries
Administration Department, CSR Division
Furukawa Electric Co., Ltd.
TEL: +81-3-3286-3044 FAX: +81-3-3286-3920

30 Relations with our Customers
31 Relations with our Shareholders
32 Relations with our Suppliers
33 Relations with our Employees
37 Relations with Communities
41 Third-Party Opinion
42 History of Furukawa Electric’s CSR Activities
Furukawa Electric Group CSR Report 20102

Furukawa Electric Group Overview

Furukawa Electric Group Overview
Sales809.7 billion yen (Consolidated, fiscal year 2009)

Main Business Segments (Consolidated)

Number of employees
37,737 (as of March 31, 2010)

15.6%

Number of companies
122 (106 subsidiaries and 16 affiliates accounted for using theequity method)

Energy andindustrial products

Telecommunications

Electronics and automotive systems

20.5%

Metals

24.1%

13.8%

OthersLight metals

4.3%

21.7%

Operation BasesEuropeNorth America

Asia

Central/South America
Head office
Overseas subsidiary or affiliate

Representative office

Results (Consolidated)
Net Sales

Net Income(100 million yen)(100 million yen)

12,00011,047

11,742300
10,328
8,097

8,000

(100 million yen)298

12,000255

10,523200

10,0008,725

Net Assets

10,967
10,14810,000

153
97

100

8,457

8,358

2008

2009 (Fiscal year)

8,000

0
6,000

6,000
-100

4,000

4,000

-200

2,000

2,000

-300
-374
-400

0
2005

2006

2007

2008

3 Furukawa Electric Group CSR Report 20102009 (Fiscal year)

0
2005

2006

2007

2008

2009 (Fiscal year)

2005

2006

2007

Main Business Segments
Three Core Materials

Business Segments Main Products

Main Customers•Optical fibers and cables•Communications•Communicationequipment

Telecommunications •Lasers•Optical amplifiers•Networking equipment

Energy andIndustrial Products•Copper wire rods
•Industrial power cables•Microcellular foam
•Semiconductor
processing tapes•Poewr•Railways•Electricalmachinery•Construction

Metals•Copper foil
•Wrought copper
products for electronics•Air conditioner copper
piping•Superconducting wire

•Electronicequipment
and electricalmachinery•Construction•Wire harnesses forautomobiles
Electronics and•Electronic components
Automotive Systems •Components forelectronic equipment•Magnet wires•Automobiles•Electronicequipment
and electricalmachinery

OpticsNonferrous
MetalsSynthesis
andProcessing

Plastics

Light Metals(Furukawa-Sky)•Aluminum can stock•Aluminum tank materials
for LNG vessels•Aluminum materials forsemiconductor
manufacturing equipment•Processed aluminumproducts•Can
manufacturing•Shipbuilding•Aircraft•Electricalmachinery

Furukawa Electric Group Corporate Profile
Name

Furukawa Electric Co., Ltd.

Domestic Bases

President

Masao Yoshida•Head Office

Founded1884

Established

1896•Works: 7* Nikko (2), Ichihara, Hiratsuka, Kameyama,
Amagasaki, Yokohama

Sales

350.4 billion yen (Non-consolidated,fiscal year 2009)

Number of
employees

4,326 (Non-consolidated, asof March 31, 2010)•Branch Offices, Branches and Sales Offices: 10•Research Laboratories: 4 Yokohama, Nikko, Ichihara,
Hiratsuka* Changed to a seven-plant structure due to the integration of Furukawa Circuit Foil Co.,
Ltd. in October 2008.

Furukawa Electric Group CSR Report 20104

Messages from Management

Contributing to the realization of a sustainable society throughour New Frontier 2012 medium-term management plan
Contributing to global sustainable growthby creating new markets, businesses andtechnologies!
The Furukawa Electric Group launched the medium-term
management plan” New Frontier 2012” in April 2010.
Under this new plan, we have set our sights on capturing
global infrastructure demand, and in looking slightly further
into the future, bolstering research and developmentin the functional materials business. Focusing on thethree environmental fields of the environment, energy
conservation and high-density optical communications, wewill work toward building a “New Frontier” framework thatis capable of generating sustainable growth through thecreation of new markets and businesses. To this end, we
will reorganize our business portfolio, improve our financial
strength and reform our corporate culture. In developing arobust business platform that is more resilient to change, wewill stride confidently toward securing sustainable growth.

Defining “New Frontier”

Masao Yoshida
President

5 Furukawa Electric Group CSR Report 2010

From a geographical standpoint, the Furukawa ElectricGroup recognizes such emerging markets as the BRICs(Brazil, Russia, India and China) and ASEAN (Indonesia,
Malaysia, the Philippines, Singapore, Thailand andVietnam), which continue to experience notable growth, as
representing its new frontier. Rather than simply drawing
on and applying its technological expertise accumulated
over many years in Japan, we will develop entirely new
tailor-made production process technologies that match
individual local needs. At the same time, we will placeconsiderable emphasis on the cross-sectional integrationof businesses and technologies as the means to promotefurther development and progress.
New eco businesses, where global needs continue tospiral, represent another frontier of immense potential.
Economic growth brings with it a host of consequences
including increased energy consumption. While this must be
accepted to a certain degree, if left uncontrolled we run thevery real risk of undermining the global environment due tothe excessive discharge of such greenhouse gases as CO2.
As a Group that harnesses its wide-ranging metal, resin,chemical and other compound processing technologies todeliver functional materials, Furukawa Electric is committed

to addressing this global-scale issue focusing on thefollowing business areas.
1) Next-generation vehicles that curtail CO2 emissions
through reduced use of fossil fuels.
2) Energy/smart grids that produce a transmission networkthat employs IT to ensure the efficient and flexible use ofnatural energy sources including the wind and sunlight in
combination with nuclear and fossil fuel energy.
3) High-density optical telecommunications that realize theultra high-speed, power efficient transmission of large
volumes of data.
Furukawa Electric is building a platform for the creation of
new eco businesses.

Reinforcing initiatives for the environment
Over the past several years, international events withenvironmental concerns as their principal theme havebecome increasingly prominent. For its part, the Furukawa
Electric Group will strengthen its environmental initiatives
through every facet of our operations. In the area of global
warming prevention, for example, we launched full-fledged
efforts to reduce CO2 emissions in fiscal 2009. We haveconducted basic research into the formulation of rules
aimed at adopting a life cycle assessment (LCA) initiativefor quantitatively assessing the environmental impact of our
products. Through the next two years of trials on designatedproducts, Furukawa Electric will formulate carbon footprintcomputation standards on an individual product basis
in fiscal 2011. Turning to the issue of biodiversity, andtaking into consideration trends identified during the tenthmeeting of the Conference of the Parties (COP 10) heldin Nagoya this year, we have undertaken several steps
to gather information drawing on our participation in a
biodiversity corporate network. At the same time, we will
identify basic policies during fiscal 2010 and pursue stepby-step initiatives from fiscal 2011 to gain an insight intoand evaluation of conditions. Moving forward, the Furukawa
Electric Group will work to fulfill its responsibilities as amember of the global society. We will pursue those major
issues within the international community and ensure
adherence to environmental regulations.

Positioning safety, quality and complianceas cornerstones
Safety, quality and compliance underpin every facet ofour business activities. Furukawa Electric deeply regrets
those incidents that resulted in the issue of two cease-anddesist orders for violations against the Anti-Monopoly Act
by the Fair Trade Commission. I would like to once again
express our sincere apologies for having caused significant
distress among our stakeholders, including shareholders
and customers. Consistent with the recommendations of
the Report of the third-party investigation committee on
violations of the Anti-Monopoly Act, released in December
last year, we are currently in the process of implementing
measures aimed at preventing a recurrence. Looking
ahead, we are determined to stamp out any possibility ofa future violation and to improve our corporate culture.
Working toward a new frontier, we recognize the need tobe constantly aware, while practicing our corporate social
responsibilities. Only in ensuring compliance while helping
to resolve society’s problems can we hope to convey in an
open and fair manner a strong presence and standing.

Enhancing Social Contribution Activities
With respect to social contribution, we will contribute toa sustainable society through our business operations aswell as philanthropy activities, utilizing the human resources
and business sites of the Group. In an effort to further
encourage activity, we have established a CSR special
award system to recognize outstanding contributions within
the Group. In reporting details of award recipients, we hope
to invigorate an increasingly positive Group-wide response.
Looking to the future, we will expand the scope of theaward to encompass environmental contributions andpromote a wide-range of activities throughout the Group.

Placing high value on communication with our
stakeholders, including customers, employees,
shareholders and residents of local communities, wewill reflect the opinions and requests obtained on our
ongoing management. We look forward to receiving
your honest feedback on all these initiatives.

Furukawa Electric Group CSR Report 20106

Feature

Past and Future
Environmental Businesses
While responding to the requests of society, the Furukawa Electric Group has over many years continued
to develop technologies, products and services that contribute to the protection of
the global environment.
We are today accelerating the pace of new technology development guided by the medium-term
management plan “New Frontier 2012” that positions the creation of new eco businesses as a key priority.
Focus
Focus

1 Developing Easy-to-Recycle Optical Fiber Cables
2 Creating New Eco Businesses That Take
Full Advantage of Material Technologies

7 Furukawa Electric Group CSR Report 2010

Focus

1 Developing Easy-to-Recycle Optical Fiber Cables

Responding to Environmental Issues Causedby the Growing Prevalence of Broadband
Networks
Promoting the Recycling of Materials From Discarded Optical Fiber Cables
The installation and renewal of optical fiber cables resultsin considerable waste due to the removal of existing
electric wires and cables, ducts and distribution boards.
Amid explosive growth in broadband networks,
telecommunication carriers and construction companies
are being increasingly confronted by the problem of waste
disposal as one of several key environmental issues.
Playing a leading role in the Group’s recycling businessactivities, Furukawa Electric Ecotec Co., Ltd. (FETEC:
please refer to the column below) serves to address thisproblem by collecting and recycling much of theaforementioned waste.
FETEC currently collects over 1,000 tons of discarded
optical fiber cables each year, all of which is recycled. In
specific terms, approximately 70% is incinerated andrecovered as thermal energy, while around 30% is
recycled as materials. From a recycling-oriented society
perspective, the goal is naturally to secure a material
recycling rate as close to 100% as is possible. Lifting thematerial recycling rate is not of itself a difficult task.
Depending on the method used, however, an unwanted
by-product is the increase in CO2 emissions and theadverse effect of a higher environmental load. With this inmind, Furukawa Electric has developed aneasy-to-recycle optical fiber cable as one initiative to lift
the material recycling rate while at the same time reducing
CO2 emission.

Material Recycling Flow
(Example: Optical Fiber Cables)
RemoveAccumulateCollect andseparateCollect
Separation
work

Separate
Remove sheaths

Dismantle
Performance in the Handling ofDiscarded Optical Fiber Cables

Disconnect slots
Strip off binder tape

Stripping
off binder
tape

Dismantle slots(Tons)

800

775
662

676

Thermal recycling

600
400

340

356

2007

2008

356

Material recycling

Melt andconvertinto
pellets

Remove impurities
Melt
Recycled pellets

Recycledpellets

200
0

2009

(Fiscal year)

RecycleColumnRecycling Plant of the Furukawa Electric Group (FETEC)FETEC was established in 1971 as a company specializing in the recycling of
discarded electrical wires. Since acquiring ISO14001 accreditation in 1998
(including the Company’s Chiba Works and the adjoining facilities of affiliatedcompanies), the company has taken steps to promote zero emissions and to
reduce the amount of landfill waste generated during the recycling process.
Based on these endeavors, FETEC achieved zero emissions in 2005.
In recent years, calls from customers to collect the duct and distribution
board waste resulting from the removal of electric wires and cables havesteadily increased. Working to address the needs of its customers, FETEC has
acquired the necessary approvals to collect and haul industrial waste from 33
local municipalities, complementing its existing qualification (Chiba and Kyushu
plants) as an industrial waste disposal contractor.

Discarded
distribution
boardsDiscarded electrical ducts(product name: EFLEX)

Furukawa Electric Group CSR Report 20108

Focus

1 Developing Easy-to-Recycle Optical Fiber Cables

Developing a Breakthrough Optical Fiber Cable That Resolves the Issue of Recycling Costs

Unlike the copper and aluminum used as conductors inboth electrical and telecommunications metal cables,
optical fiber cables do not contain highly valued materials
than can be collected, recycled or sold as items of worth.
Rather than incur the cost of recycling, it was therefore
considered more economical to dispose of industrial waste
via incineration and landfill sites. Commensurate with theshift from metal to optical fiber telecommunication cables,
and the growing incidence of optical fiber cable waste,
however, demand for their recycling steadily increased. In
response, Furukawa Electric in conjunction with Tokyo
Electric Power Company commenced development of therecycling technology. While taking into consideration
dismantling and separation methods, the companies took
steps to review the raw materials that comprise cables aswell as their configuration. Focusing on ease of dismantling,
Furukawa Electric successfully developed aneasy-to-recycle optical fiber cable.
Compared with conventional optical fibers, which use
nylon thread as the base material for binder tapes, thenewly developed product employs the same polyethylenematerial applied to the cable sheath. By using polyethylene
for the binder tape, the sheath and the binder tape melt
together during sheathing as part of the manufacturing
process and become integrated with one another.
Consequently, when the sheath is removed, the cable canbe dismantled with ease as if there were no binder tape. As
a result, dismantling and separation expenditure is reduced
by approximately 50% compared with Furukawa Electric’s
existing products. In resolving the longstanding issue ofrecycling costs, it is possible to dismantle and separate
cables for the same cost as industrial waste disposal via
landfill sites or incineration.
In addition to the bobbin and drum that reel in the cable,
the recycled materials of this optical fiber cable are applied
as materials for such items as the optical closure (theoptical fiber cable connection and diversion box).

A Conventional Optical Fiber Cable

Binder tape (nylon thread)

Slot core(polyethylene)
Moisture barrier tape

Sheath(polyethylene)

Hard to dismantle and separate
Binder tape is threadlike•Tendency
for binder tape to knot when opticalfiber cables are dismantled. This significantly
extends the time required for removal

Binder tape and sheaths use different materials•Separationand treatment are required for reuse

A conventional optical fiber
cable with the sheath removed.
When attempting to pull out thenylon thread, it tangles into a ballmaking removal difficult.

Fine strands of the nylon thread
remain even after the sheath has
been peeled away. This raises
the issue of impurities making
recycling problematic.

Recycling costs are highDismantling and separation require•considerable
effortWith recycling costs high, disposal as industrial
waste is economical

Materials and Products Made From Recycled Optical Fiber Cables
Optical fibers Other waste

Recycled duct protection covers
Recycled materials

Optical fiber cablee.g. ) materials for bollards

Iron

Iron recycling

PE (polyethylene)

Recycled pellets

PE (polyethylene)

Recycled pellets

Tension member slots
Sheaths (cable covers)

9 Furukawa Electric Group CSR Report 2010

Feature

Past and Future
Environmental
Businesses

Focusing on Other Recycling andEnvironmental Technologies as well as
Environmentally Sound Products

An Easy-to-Recycle Optical Fiber Cable
Binder tape integrated withthe sheath (polyethylene)

Moisture barrier tape

Sheath (polyethylene)

Easy to dismantle and separate
Binder tape and sheath are integrated•Easy
to dismantle. The time required for removal isone-fifth that of the Company’s existing products

The material used in both binder tape and•sheathare the same polyethylene
Material recycling is simple due to a lack of impurities

An easy-to-recycle optical fiber
cable. The sheath is peeled back
together with binder tape.

Binder tape adheres to thesheath’s inner surface when
peeled away. Made from the samematerial, easily recycled without
additional treatment or effort.

Recycling costs are low
and separation are easily completed•Dismantling
Material recycling is possible for the same cost as
industrial waste disposal

The Furukawa Electric Group is engaged in other cable
and wire material recycling activities from a wide range ofperspectives.
Reuse of the cross-linked polyethylene XLPE* is a primeexample. Among sheathing materials used for electric
cables, polyethylene and polyvinyl chloride (PVC) werecommonly used due to their ease of recycling. With across-linked structure, the XLPE was considered difficult
to recycle, lacking fluidity even when heated. Utilizing aproprietary technology for thermoplasticity by lowering
molecular weight, Furukawa Electric took successful steps
toward reuse as an insulating material.
Building on this success, the Company has promoted
the application of XLPE beyond its reuse as a sheathingmaterial to develop cable and electric wire-related
products employing plastic waste. The plastic drum,
developed as a replacement for wooden drums inparticular, is attracting high praise for its contributions tothe conservation of forest resources as well as the
reduction of waste. Furthermore, plastic troughs are
drawing considerable attention as an alternative to thereinforced concrete cable troughs that are used topreserve the opening and closing cables laid along railway
lines and roadways. Unlike existing products, plastic
troughs are lighter, less susceptible to cracking andcorrosion and can be recycled after use.
The Group will continue to emphasize the developmentof recycling technologies. At the same time, we will work
diligently to create new environmental technologies andenvironmentally sound products focusing on the three eco
businesses identified in our medium-term management
plan “New Frontier 2012” announced in April 2010.
* Furukawa Electric has commenced the licensing of its
cross-linked polyethylene waste material recycling technology,
which contributes to the reduction of both CO2 emissions andindustrial waste.

Examples of final products

Recycled bobbin Recycled drum

Recycled optical closure

Furukawa Electric Group CSR Report 201010

FocusNew Eco Businesses That Take Full
2 Creating
Advantage of Material Technologies

Toward Realizing a Low-Carbon Society fora Sustainable Global Environment
Next-Generation Vehicles
Material Technologies Contributing to the Advance of Ecology Cars
The Furukawa Electric Group is taking considerable
interest in next-generation vehicles, which are
expected to make substantial contributions toward
resolving transportation equipment-related energy andglobal environmental issues. Driven by a commitment
to achieve specific key concepts including “increased
fuel efficiency and reduced CO2 emissions,” “improved
electric and hybrid vehicle performance” as well as“the provision of greater safety and comfort,” we aresupporting the further spread of next-generation
vehicles through the development of a wide spectrumof automotive components.
Our high strength, high-heat conductive aluminumalloys, manufactured using metal composition

development and molding process technologies, forvehicle bodies, together with our high conductive, highintensity aluminum wire harnesses reduce the weightof vehicles improving fuel efficiency while reducing
CO2 emissions. The Group’s small-sized, high integrity
magnet wires, manufactured utilizing plastic design
and thinning fabrication technologies, contribute tomore compact, technologically advanced alternators(generators), which in turn improve the performance ofelectric and hybrid vehicles. Furukawa Electric’s
compact, high performance antenna technology
provides the backbone for its advanced automobile
communication and ultra-wideband wireless radar,which helps to ensure vehicle safety.

Energy / Smart Grids
Continuing to Support an Energy Efficient Society
The Furukawa Electric Group boasts a long history in thedevelopment of advanced power transmission andtelecommunication technologies that provide the basic
infrastructure for today’s society. In electric power systems,
the Group provides an extensive range of ultra-high voltage
through medium to low voltage cables as well asmechanical parts that contribute to the efficient supply ofelectricity. Amid a renewed awareness toward theimportance of developing a highly efficient cable networkthat includes yttrium superconducting power cables withthe potential to substantially reduce power loss duringtransmission as well as the need for electric power
conditioning utilizing storage cells for increased efficiencies
in energy use, the Group is addressing these requirements
by producing long-life, highly efficient secondary batteries

to the highest global standards. In telecommunications, theGroup delivers a broad menu of products from hardware tosystems including the optical fiber and optical transmission
equipment necessary to realize a high-density,
long-distance fiber-optic telecommunications system.
Through its business activities, the Furukawa ElectricGroup is developing the varied technologies required toensure the effective application of natural energy provided
through photovoltaic and wind power generation. In thismanner, the Group is working to reduce power transmission
loss and to secure a stable supply of power. By providing
the optical fiber cables and optical transmission equipmentthat underpin basic infrastructure, we continue to support
an energy efficient society.

High-Density Optical Telecommunications
Contributing Through Telecommunications and Energy Efficient Technologies
The volume of data traffic is projected to increase at any
annual rate of 40%. Quite naturally this highlights the criticalneed for high-density telecommunication networks that
continue to take full advantage of advances in opticalcommunication technology development. Leveraging its
world-class expertise, Furukawa Electric supplies such
optical parts as optical fiber cables, semiconductor lasers,
waveguides and switches, optical transmission equipment
including optical fiber amplifiers and routers and opticalcommunication systems to realize high-density opticaltelecommunication.
Commensurate with the increase in the amount of data,
the consumption of power by IT devices as a percentage of

11 Furukawa Electric Group CSR Report 2010

Japan’s total power generation is estimated to reach 20%
in 2025. Positioning cutbacks in energy consumption as animportant goal of development, steps are being taken to not
only reduce the size and weight of products as indirect
measures to curtail the use of energy, but also to develop
light emitting elements that efficiently convert electricalenergy into light as well as devices and systems
distinguished by their minimal energy loss. In fields whereenergy consumption can be reduced through thechangeover from existing electric-powered to opticaltransmission, we are pushing forward with efforts toenhance the economic efficiency of transmission devices.

Feature

Past and Future
Environmental
Businesses

Product Development Themes

Major Products

Ultra-wideband RF radar“UWB radar“

Improveperformance

High-strength high-heat conductive aluminum aluminum alloy (for hood and body)

EnsuresafetyEnhanceenergyefficiency
WEB

Please refer to the following
website for more details:

http://www.furukawa.co.jp/
english/museum/floor3/03_01.htm

Improve fuel efficiency,
reduce emissions

High-voltage connector for HEV power supply
Aluminum shielded harness for HEV

HV, EVUltra battery
Copper foil for lithium-ion battery

Safety, security

Aerial line

Mega solar (photovoltaic system)

Improveelectric
power
utilization
efficiency

Power electronics equipment

UtilizenaturalenergyNext-generation automatic meter reading
Radio antenna

OfficeStorageHousesElectric vehicle
Information
controlWEB

Please refer to the following
website for more details:

Superconductivity
fault current limiter

http://www.furukawa.co.jp/
english/museum/floor3/04_01.htm

Household photovoltaic
systemIndustrial plants

Power electronics
equipment
Products

Flow of electricity

Flow of information

Long-distance, inter-regional, intra-regional networks

Enhancetransmission
efficiency

Conserve
energyUltra low-loss nonlinear fiber
Holey structured fiber
Pumping semiconductor
lasersThermal generetion
systemConcentrated power supply

Semiconductor lasers for signal
light sources
Optical components for optical
digital coherent transmission

MobileTerrestrial digital delivery system
Optics-wireless integrated system

Cloud computing
WEB

Please refer to thefollowing website for more details:

Individual and multi-dwelling houses, offices

http://www.furukawa.co.jp/
english/museum/floor3/05_01.htm
GE-PON systems
High-performance routers

Products

Inter-regional network

Data Centers
Optical interconnection
High-speed transmission
multimode fiber
High-mounting density optical connector
Storage disk material

Intra-regional network
Furukawa Electric Group CSR Report 201012

Corporate GovernanceFurukawa Electric raises its management efficiency through timely decision-making. At the same time, we
strive to maintain sound management by building and upgrading our internal control systems.

Management

continue to strengthen our auditing capabilities based on close
collaboration between our Corporate Auditors, Accounting
Auditors and the CSR Division, which acts as our auditing
department.

Board of Directors and Board of
Corporate Auditors
Board of Directors
To accelerate decision-making, Furukawa Electric convenes
extraordinary board meetings as necessary in addition to
the regular monthly board meetings. To facilitate the effectivefunctioning of the Board of Directors in monitoring operational
performance, we have established a support structure toensure outside directors sufficiently understand all issues,and that their opinions are respected as part of the decisionmaking process. We have also set up a CSR and Risk
Management Committee under the supervision of the Boardof Directors, consisting of the chairman, president, company
presidents and chief officers, which acts as a framework for
the Group-wide promotion of CSR and risk management
activities. In order to secure management transparency, theCompensation Committee, whose members include outside
directors, was established in May 2010. This committee
formulates compensation policies and related matters for
directors and executives officers while also determining
individual compensation and other benefits.

Operational Performance
Our operational structure is based on a company system and achief officer system. Under the supervision of the president, who
is responsible for overall operational performance, operations
are run by company presidents, and operations relating tomatters such as Group-wide strategies, resource allocation andadministration are handled by the relevant chief officer. Details
are then reported back to the Board of Directors on a quarterly
basis.

Internal Control
Our Group internal control system is implemented withthe understanding that internal control maintains andenhances the efficiency of operational performance, ensurescompliance, manages risk and information, and oversees
affiliated companies. Concerning Internal Control Reports as
mandated under the Financial Instruments and Exchange Act,
enforced during fiscal 2009, the Group J-SOX Committee
and the CSR Division are responsible for maintaining andenhancing the credibility of Furukawa Electric’s financial
reports.

Board of Corporate Auditors
Furukawa Electric has incorporated the establishment of a
Board of Auditors into the institutional design of the Company
itself. We place great importance on the function performedby our Corporate Auditors and Board of Corporate Auditors,
which are independent of the Board of Directors. And we
Corporate governance organization chart

Shareholders’ Meeting
Appoint

Monitoring andSupervision

Audit accounts

12 Directors(including 3 outside directors)

Submit proposals
and reports

Submit reports,
attend meetings
and audit
Delegate

CSR and Risk Management Committee
Chairman, President, Chief Officers, Company Presidents
Special Committees
Central Committee for Environmental Management
Central Compliance Committee, etc.
MonitorAppoint

Appoint

Board of Directors

Accounting Auditors

Board of Corporate Auditors

Submit reports

5 Corporate Auditors(including 3 outside auditors)

Compensation Committee•Decide on critical matters relating
to business operations•Supervise business operations

Collaboration between audits•Screen reports
relating to accounting•Examine status ofoperations and assets•Screen reports relating to business•Screen status of operations and assets

Appoint

Business Operations

ChairmanPresident
AdviseManagement Committee
Chairman, President, Chief Officers, Company Presidents

Submit reports

Internal Audit (CSR Division)

Instruct

Chief Officers
CSO (Chief Strategy Officer)
CPO (Chief Production Officer)
CFO (Chief Financial Officer) CSRO (Chief Social Responsibility Officer)
CMO (Chief Marketing Officer) CTO (Chief Technology Officer)

Provide support and guidanceBusiness
operations

Company Presidents

Furukawa-Sky Aluminum Corporation

Telecommunications Company, Energy and Industrial Products Company, Metals Company, Electronics and Automotive Systems Company

Light Metals Company

Affiliate Companies

13 Furukawa Electric Group CSR Report 2010

Other affiliated companies

CSR Management
Management

The Furukawa Electric Group is bolstering its monitoring of all corporate activities by establishing a
specialized division for promoting CSR activities and appointing an officer to supervise its operations.

CSR Promotion Framework
The Furukawa El0ectric Group established the CSR Division asa specialized unit for promoting CSR activities and appointed
a Chief Social Responsibility Officer (CSRO) to supervise its
operations. The CSR Division consists of an Internal Auditing
Department, an Administration Office on Security Trade
Control, a Safety and Environment Promotion Department andan Administration Department. We are stepping up all-roundmonitoring of corporate activities from the standpoint of CSR,
encompassing areas from internal control, compliance and risk
management to safety, environmental protection and social
contributions, and undertaking CSR activities on a standardizedbasis. In addition, we maintain a framework for taking any
necessary action should problems arise.

CSR Basic Policy
We fully recognize the responsibilities of the
Furukawa Electric Group to society and will
strive to maintain and improve on solid, friendly
relationships with all of our stakeholders andcontribute to the sustainable development ofsociety through corporate, environmental andsocial activities.

CSR promotion framework
Board of Directors
Submit proposals and reports

CSR and Risk Management Committee
Central Committee forEnvironmental Management

Compliance Committee
Central Safety and
Health Committee

President

Central Quality Control Committee

CSRO
Collaborate

In-house companies

Collaborate

Collaborate

CSR Division

Central Disaster Prevention and BusinessContinuity Management Promotion Committee

Other
Chief Officers

CPO
Quality Promotion
Department

Each corporate division

PromoteMonitorDomestic affiliate companies

International affiliate companies

Risk Management
Risk Management
The CSR and Risk Management Committee conducts risk
assessments targeting the Company’s general managers andaffiliated company representatives in Japan and abroad inorder to identify any potential risks.
As a countermeasure against the new influenza virus,
steps were taken to educate employees and their families
about response standards with respect to the onset of thedisease. Similar initiatives were promoted for bases locatedin countries with less developed medical facilities. Peaking inNovember 2009, the number of influenza patients has steadily
declined. In April 2010, the Company ceased implementing
countermeasures. During this period, there were no instancesof works or department closure.
Information security has also been positioned as a highpriority risk. As a measure against counterfeit goods and theleakage of intangible assets at Group companies overseas,

ongoing follow up activities are conducted. The Group has
also commenced another review of confidential proprietarybusiness information management practices following
revisions to the Unfair Competition Prevention Act.

Business Contingency Plan
The Group is implementing its business continuity plan
(BCP) focusing on disaster prevention. Seismic surveys werecompleted at all Group domestic offices by the end of 2009.
The Central Disaster Prevention and Business Continuity
Management Promotion Committee was also establishedto promote disaster prevention and business continuity
management (BCM) activities across the Group as a wholefrom fiscal 2010. In addition to advancing BCM activities
for existing BCPs, the committee is supporting efforts toformulate new BCPs where BCPs are yet to be implemented.

Furukawa Electric Group CSR Report 201014

Management

CSR Management

Compliance
Strengthening Compliance
Furukawa Electric was issued with cease and desist as wellas administrative surcharge payment orders by the Japan Fair
Trade Commission as a result of acts in violation of the AntiMonopoly Act in relation to transactions regarding cross-linked
high-foaming polyethylene sheets and optical fiber cable andrelated products in March 2009 and May 2010, respectively.
We deeply regret the concern that these incidents havecaused for our customers, shareholders and all related parties.
The Company established a third-party investigationcommittee on violations of the Anti-Monopoly Act on July29, 2009 as one step in regaining the trust of society. The
committee, comprised of outside experts to ensure a fairand neutral perspective, was responsible for systematicallydetermining the causes of violations and considering
measures for prevention. The report compiled by thecommittee was issued on December 10, 2009. Aroundthe same time as the establishment of the committee,
Furukawa Electric commissioned outside counsel to conduct
a thorough investigation into any instance of a cartel within
the Group or similar violation of the Anti-Monopoly Act. The

Measures Being Improved and Developed for the
Further Enhancement of Compliance1.Strengthening compliance systems and frontline
frontline awareness•Appointment of an officer to oversee and promotecompliance at each department•Implementation of expanded education and training
activities•Implementation of compliance-checking activities ineach department (confirmation through check sheets,

mandate of the investigation was to ensure that there was norecurrence of activities at issue in the past and to suspend
any and all questionable acts. Moving forward, Furukawa
Electric is determined to eradicate Anti-Monopoly Act
violations and to restore public trust in the Group.

Compliance Awareness Survey
Furukawa Electric conducted a compliance awarenesssurvey covering approximately 5,800 employees. Targeting
the Company and certain of its affiliated companies, thegoals of the survey were to quantitatively measure the level ofcompliance awareness and understanding while promoting
increased attention and care. Drawing from the results of thesurvey, steps will be taken to promote increased dialogue with
employees, upgrade and expand education and to promote
the further spread of compliance at the frontline.

Internal Reporting System
To enable early detection of compliance violations andcorrective measures, we operate a system whereby Company
officials and employees can either openly or anonymously
file reports directly with the Central Compliance Committee(namely, an internal reporting system) and established two
points of contact, one internal and one external. Sufficient
care is taken to ensure whistleblowers are not subject to any
negative impact as a result of filing an internal report.

Compliance Education
Furukawa Electric conducts wide-ranging collective as well as
onsite training including education based on rank, from new
recruits to directors.
Major compliance seminars organized in fiscal 2009
Name of seminar

Participants

Rank-based seminars

etc.)

Study meetings for directors

Above executive officer

2.Strengthening controls in sales divisions•Strengthening of controls relating to pricing processes•Review of the activities of various associations andindustry organizations as well as participants

Training for newly appointed
managers

Newly appointed managers

Training for newly appointed
managers and assistant managers

Newly appointed managers and assistant managers

Training for Furukawa Electric Group
directors

Newly appointed directors at affiliated companies

Training for Furukawa Electric Groupmanagers

Newly appointed managers at affiliated companies

3.Reinforcing monitoring functions•Audit of the status of compliance with the AntiMonopoly Act by the internal auditing department•Strengthening of the advice and instructions fromexternal professionals (lawyers)
4.Other•Establishment of an internal inquiry desk relating to theAnti-Monopoly Act•Consideration of periodic personnel rotation withinsales and other departments

15 Furukawa Electric Group CSR Report 2010

Others
1. Lectures on the Anti-Monopoly Act
2. Intellectual property-related
legislation

General managers, section chiefs, managers,
responsible employees in planning and management,
sales and head office departments

3. Compliance briefings at eachlocation

Business division managers, general managers, unit
chiefs, managers

4. Lectures on the Act against
Delay in Payment of Subcontract
Proceeds, Etc. to Subcontractors at
each location

Materials, production and other divisions

Initiatives for the Environment
The Furukawa Electric Group is striving to reduce its environmental impact
throughout the product lifecycle.

Basic Environmental Policy

17

Environmental Management

18

Material Flow

20

Targets and Performance

21

Environmentally Sound Products

23

Environmentally Conscious
Production

24

Chemical Substance Management

26

Environmental Risk Management

27

Environmental Accounting

28

Furukawa Electric Group CSR Report 201016

Basic Environmental Policy
Initiatives
for theEnvironment

The Furukawa Electric Group established its basic environmental philosophy and action
guidelines to unite environmental action across the Group.

Basic Philosophy
The Furukawa Electric Group recognizes that the preservation of the global environment is a critical issue
for society and takes the environment into consideration in every aspect of its corporate activities to help
create a sustainable, happy and prosperous society.

Action Guidelines• We shall maintain a constant awareness of the impact of our corporate activities on the environment, witheach and every employee involved in environmental preservation activities.
• In addition to complying with environmental laws and regulations and with requirements from our customers
and other sources, we shall also set out voluntary standards to establish greater levels of control.
• We shall set out environmental targets and objectives and systematically carry out activities accordingly tocontinuously improve our efforts to protect the environment.
• Environmental concerns shall be taken into consideration at every phase of our work, from the R&D anddesign stages onwards, to supply environmentally sound products.
• We shall strive to reduce consumption of resources and energy, to promote recycling, to reduce waste andto minimize environmental impact at every stage of our activities, from procurement and manufacturing to
distribution and customer service.
• We shall conduct environmental audits and review our environmental management system andenvironmental preservation activities to make continuous improvements.
• We shall raise employee awareness through environmental education.
• We shall promote the disclosure of information and communication with the public and play an active partin community activities.

List of companies participating in the liaison meeting for consolidated environmental management
Company name

Environmental
accounting

Company name

Environmental
accounting

Company name

Access Cable Company

Shodensha Co., Ltd.

Furukawa Precision Engineering Co., Ltd.

Asahi Electric Works Co., Ltd.

Seiwa Giken Inc.

Furukawa Techno Material Co., Ltd.

Inoue Manufacturing Co., Ltd

Totoku Electric Co., Ltd.

Furukawa Electric Advanced Engineering
Service Co., Ltd.

NTEC Ltd.

FITEC Corporation

Furukawa Electric Industrial Cable Co.,Ltd.

FCM Co., Ltd.

Furukawa Automotive Systems Inc.

The Furukawa Battery Co. Ltd.

Okano Electric Wire Co., Ltd.

Furukawa Sangyo Kaisha Ltd.

Furukawa Logistics Corporation

Okumura Metals Co., Ltd.

Furukawa C&B Co., Ltd.

Furukawa Life Service Inc.

Kyowa Electric Wire Co., Ltd.

Furukawa Industrial Plastics Co., Ltd.

Miharu Communications Inc.

Furukawa Electric Ecotec Co., Ltd.

Furukawa-Sky Aluminum Corporation

Riken Electric Wire Co., Ltd.

Environmental
accounting

Companies marked with “ ” in the Environmental Accounting column implement environmental accounting.
*1 Furukawa Circuit Foil Co., Ltd. became the Copper Foil Division of the Metals Company of Furukawa Electric Co., Ltd. in October 2008.
*2 F-CO Co., Ltd. became the F-CO Products Department of the Energy and Industrial Products Division of Furukawa Electric Co., Ltd. in April 2009.
*3 Furukawa Electric Engineering Service Co., Ltd. merged with FI-Techno Co., Ltd. and became Furukawa Electric Advanced Engineering Service Co., Ltd. in April 2009.
*4 Furukawa Engineering & Construction Inc. was merged with Fuji Furukawa Engineering & Construction Co., Ltd. in October 2009.

17 Furukawa Electric Group CSR Report 2010

Environmental Management
Initiatives
for theEnvironment

The Furukawa Electric Group has developed a system of centralized control for Group-wide
environmental activities based on the Furukawa Electric Group Basic Environmental Policy.

Environmental Management Promotion Organization
The Furukawa Electric Group has established the Central
Committee for Environmental Management. This committee
formulates the environmental management targets for theentire Group and conducts quarterly follow-ups on the statusof implementation.
The Company adopted the life cycle assessment (LCA)
method as an initiative to “visualize the amount of CO2
emitted throughout the lifecycle of its products” from fiscal
2009. The Working Group for the Promotion of Environmental
Performance Indices was then newly established to develop
indices that measure the environmental contribution of
products across their entire lifecycle from raw material
procurement through manufacture to disposal. This working
group was reorganized as the Central Committee forEnvironmental Management, with plans to operate andmanage established index policies and guidelines. The
Company’s seven works and domestic affiliates participatingin consolidated environmental management have obtained

ISO 14001 certification. We are also promoting environmental
management and initiatives at our overseas affiliates as part of
the related activities undertaken by each business division.
Environmental management organization
President
Central Committee forEnvironmental Management
CSRO:Chairperson

Committee for Reductionof GHG Emissions

Committee for Development ofEnvironmentally Sound ProductsWorking Group for Reducing
GHG Emissions

Working Group for Promoting Sales ofEnvironmentally Sound Products

Safety and Environment Promotion Department, CSR Division
Environment Committeeof Works
Energy Conservation
Committee,
Waste Committee,
Chemical SubstanceCommittee,
etc. Expert Committees

Environment
Committees
of companies andbusiness divisions

Environmental Personnel Meeting
Transport Energy Reduction Committee
Committee for Green Product Management

Liaison Meeting for
Domestic andOverseas Group
Affiliates

Liaison Meeting for Consolidated
Environmental Management
Committee for Consolidated Environmental
and Green Product Management
Working Group for the Promotion ofEnvironmental Performance Indices

Environmental Education
In fiscal 2009, the Company held two ISO 14001-related
internal environmental auditor training sessions attended by
39 participants. In addition, 18 employees took part in FGMS*

training seminars.
* FGMS is the acronym for the Furukawa branding Green product Management System.

Environmental education program
Category of educational training

Content

New recruits

General employees

Mid-career
employees

Management

Training for new recruits

Education for new recruits (once a year, mandatory)

General environmental protection activities

EMS activities (as needed, mandatory)

Environmental Policy and purpose, goals and generalknowledge pertaining to the environment

ISO 14001-related education (two-day course) (twice ayear, voluntary)

Requirements of ISO standards, environmental regulations,procedures for internal environmental audits, various drills

One-day brush-up course (once a year, mandatory)

Trends in environmental regulations, various drills to brush
up auditing skills
Environmentally sound design

Environmental subjects (as needed, voluntary)

Environmental regulations
Control of chemical substances contained in products

Consolidated environmental management seminars

Seminars by experts on priority issues

ColumnParticipation in the Challenge 25 Campaign
Promoted by Japan’s Ministry of the Environment, Team Minus
6%, a national movement aimed at preventing global warming
was recast as the Challenge 25 Campaign. Furukawa Electric
re-launched its activities on April 1, 2010 under the revised
Challenge 25 name. Encouraged by the keywords “universal

practice,” the Company is proposing low CO2 emission lifestyles
both at home and in the office. Through such measures as theprovision of Challenge 25-related policy data, Furukawa Electric
is committed to further boosting its in-house campaign.

Furukawa Electric Group CSR Report 201018

Initiatives
for theEnvironment

Environmental Management

Initiating Biodiversity Measures
Participation in the Japan Business Initiative forConservation and Sustainable Use of Biodiversity (JBIB)Taking into consideration the tenth meeting of the Conferenceof the Parties (COP 10) held in Nagoya, Aichi Prefecture, in
October, 2010 represents a most important year during which
steps must be taken to review the level of achievement withrespect to targets adopted at COP 6 in April 2002, and todeliberate on the setting of new targets in the post 2010 era.
Furukawa Electric joined JBIB* as a network member from
July 2009. While engaging in research and the collation of
information relating to biodiversity activities, the Company’s
policy is to draw on the knowledge gained through its network
as well as trends following the conclusion of COP 10 toproactively address the issue of biodiversity conservation.
* JBIB, an organization comprised of Japan’s leading private companies, isdedicated to the promotion of activities that facilitate biodiversity conservation.
Engaged in joint research that takes into account international perspectives, JBIB
draws on the results of studies to initiate dialogue with other companies andstakeholders in an effort to ensure a genuine contribution. Totaling 34 members
as of May 2010, JBIB is attracting attention through its ability to ignite new
momentum in biodiversity conservation.

Seminars on Biodiversity Initiatives Held
To improve the skills of employees, a series of half-day
seminars on biodiversity were held in fiscal 2009. The seminar
was divided into two parts, beginning with an explanationon the basics of biodiversity by external experts followed bypresentations focusing on group sessions. Drawing mainly
from the EMS Office, a total of 24 employees from nineGroup companies attended. Introduced as a new theme togroup sessions, discussions were held on the relationshipbetween and the impact of the Group’s business activities on
biodiversity. Participants commented that they were aware of
biodiversity, but were unclear as to how and where it figures intheir individual company activities. Participation in the seminar
therefore served to highlight the importance of obtaining aproper understanding. The fruits of seminar discussions will beshared among as many employees as possible with plans toreflect relevant aspects in future business activities.

Furukawa Electric Group Technology
Exchange Meeting Held
Over a two-day period from June 11 to 12, 2009, theFurukawa Electric Group held its sixth Technology Exchange
meeting at the Company’s Yokohama Works. 198 Furukawa
Electric and 155 affiliated company employees attended. The
first day was taken up with several themes that transcend
the Group including the use of simulation testing, analyticaltechniques, innovative technologies designed to curtail CO2
emissions and the application of intellectual property rights,
which were discussed among small groups. Supplementing
the day’s activities, participants were asked to dismantle
commercially sold environmental products and to assess eachproduct from both the sales and development perspectives.
The second day focused more on the sharing of initiatives andinformation relating to the environment and energy utilizing
a seminar format. Each division and affiliated company
also conducted presentations as well as exhibitions. During
small group meetings, discussions among administrative
departments within the Group were lively, The two-day event
was also an excellent forum through which Group companies
and divisions were able to deepen exchange.

Brush-up seminar “Biodiversity Initiatives”

Furukawa Electric Group technology exchange meeting

19 Furukawa Electric Group CSR Report 2010

Material Flow
Initiatives
for theEnvironment

We purchase raw materials and chemical substances and use fuel and electricity energy as well as water
resources to provide our products and services while endeavoring to reduce their environmental impact.

Environmental Impact of the Furukawa Electric GroupINPUTOUTPUT
Waste

Raw materials
CopperAluminum
Iron
NickelChromium
Manganese
Magnesium
Other metals
Glass
Plastic

221,809 tons
231,023 tons
5,231 tons
965 tons
168 tons
1,446 tons
5,249 tons
9,119 tons
157 tons
30,873 tons

Energy(crude oil equivalent)

Total waste generated

56,543 tons

Gross energy input

Final waste disposal

504,464 kl

1,783 tons
Recycling amount 49,492 tons

Electricity(purchased electricity)

287,311 kl
Electricity (hydroelectric power)

38,256 kl
Electricity(solar power)
3 kl
City gas
47,335 kl
LPG
54,501 kl
Heavy fuel oil A
12,967 kl
Kerosene
17,150 kl
Light oil
570 klCO2
Furukawa
Electric’s sevenworks and 27
domestic
affiliated companies

Atmosphericemissions

860,000 tons of CO2
SOX
123 tons
NOX
736 tons
Soot
59 tons
Chemical
substances

Water
Tap waterIndustrial water
Groundwater

Volume emitted 156 tons
Volume transferred 279 tons

Chemical substances

1.03 million tons
23.45 million tons
3.49 million tons

Volume handled*56,324 tons

Wastewater

274.55million tons

* PRTR targeted substances

Environmental Impact of our Non-production Bases
We have identified the environmental impact of activities at our
non-production bases, namely Furukawa Electric’s head office,six branch offices, three branches and one sales office.
We promote power and resource saving measures at our head
office and branch offices, the Company’s non-production bases.
Examples of such power saving measures include turning off
lights in conference rooms not in use and adjusting air
conditioning to appropriate temperatures. In terms of resourcesaving measures, we promote activities such as sorting waste
and reusing resources such as photocopier paper and files.

OUTPUT
Amount of electric
power consumed

1,681 MWh
Amount of waterused

1,364 m3

Furukawa Electric’s
non-production
bases

Amount of paper
usedPhotocopier paper 21.0 tons
Newspaper
3.6 tons
Cardboard
0.4 tons

Volume of waste

17.8 tons

Furukawa Electric Group CSR Report 201020

Targets and Performance
Initiatives
for theEnvironment

The Furukawa Electric Group sets medium-term targets every three years and also develops annual plans forpromoting environmental protection efforts toward accomplishing the targets set out in these plans.

Furukawa Electric Group Annual Targets and Performance for Fiscal 2009
The Furukawa Electric Group promotes its environmental
protection activities by formulating Group-wide
Environmental Preservation Activity Targets for fiscal
2009 based on medium-term targets laid out in the2009 Medium-Term Plan for Environmental Preservation
Activities. It applies them to environmental management
systems at Furukawa Electric and affiliated companies.
Fiscal 2009 marked the final year of the Plan during
which steps were taken to consolidate activities. On a
non-consolidated basis, Furukawa Electric was unable tomeet its established targets for waste reduction and zero
emissions. From April 2010 the Company is redoublingits efforts to substantially reduce direct landfill disposal
through recycling. Similarly, the Company did not achieve

its greenhouse gas emission target due to the integrationof businesses within the Group. The target for reductionin specific energy consumption for transportation on theother hand was met. While in overall terms the Company
fell slightly short of its targets, every effort will bemade to bolster activities to achieve newly establishedmedium-term goals.
Affiliated companies did not quite reach their targets
for waste reduction but successfully achieved establishedbenchmarks for zero emissions and global warming
prevention. Chlorinated organic compounds are still usedat one company. Plans are place to totally eliminate its
use during fiscal 2010.

Furukawa Electric Annual Targets and Performance for Fiscal 2009
Activities
Waste reduction activities
Zero emission activities
Activities to prevent global warming

Chemical substance management activities

Green activities

Priority environmental preservation activity targets for fiscal 2009

Performance in fiscal 2009

75% reduction in the volume of outsourced waste disposal compared withfiscal 2004 level

67% reduction

RatingB

80% reduction in direct landfill disposal compared with fiscal 2004 level

67% reduction

B

25% reduction in greenhouse gas emissions compared with fiscal 2000 level

21% reductionB

3% reduction in specific energy consumption for transportation compared withfiscal 2006 level

8% reduction

A+

30% reduction in emissions of volatile organic compounds compared with fiscal
2004 level

45% reductionA+

60 general-purpose green products—expansion target at affiliatedcompanies: 552 products* (99.4%)
Expanded to two companies

B

Establishment of FGMS: regular audit for fiscal 2009

Audit scope: implemented at all eight works

A

Target for registration of environmentally sound products: 40

Target registration results: 36 of 40 (90%)

B

Environmental performance indices for main products

Implemented LCA evaluation for four main productsA

Performance in fiscal 2009

Rating

Improvement in environmental performance of products
Eco-design activities

Affiliated Group Company Annual Targets and Performance for Fiscal 2009
Activities

Priority environmental preservation activity targets for fiscal 2009

Waste reduction activities

50% reduction in the volume of outsourced waste disposal compared withfiscal 2004 level

48% reduction

B

Zero emission activities

50% reduction in direct landfill disposal compared with fiscal 2004 level

61% reduction

A+

10% reduction in greenhouse gas emissions compared with fiscal 2000 level

18% reduction

A+

Specific energy consumption for transportation: ascertain current status

Status of specific energy consumption ascertained
at 18 of 24 companies

B

30% reduction in emissions of volatile organic compounds compared with fiscal
2004 level

45% reductionA+

Complete elimination of the use of chlorinated organic compounds

Use at one company

B

100% procurement rate for 60 general purpose products

Achieved a 96.2% procurement rate for 52 items*
subject to green procurement

B

Establishment of FGMS

Implementation completed at 26 company and nine
supplier works

A

Improvement in environmental performance of products

e-Friendly mark registration of seven items

A

Activities to prevent global warming

Chemical substance management activities

Green activities

Eco-design activities

Evaluation ratings: A+:Greatly achieved A:Achieved B:Almost achieved ---:Unachieved* Scope and evaluation limited to 52 items due to alleged issues relating to recycled wastepaper.

21 Furukawa Electric Group CSR Report 2010

Medium-Term Targets of the Furukawa Electric Group
Steps have been taken to unify the Group’s targets
under the 2012 Medium-Term Plan for Environmental
Preservation Activities. While incorporating the additional
theme of biodiversity, the Group has consolidated indicesfor the existing activity themes of zero emission and waste

reduction. At the same time, a new recycling rate index has
been established. The Furukawa Electric Group is unified
in its commitment to achieving the targets of the MediumTerm Plan.

The Furukawa Electric Group’s 2012 Medium-Term and 2010 Targets
Activities
Waste reduction activities

2012 Medium-Term Plan for Environmental Preservation Activities

Environmental preservation activity targets for fiscal 2010

99% or more recycling rate

95% or more recycling rate

15% reduction in greenhouse gas emissions compared with fiscal 2000 level

13% reduction in greenhouse gas emissions compared with fiscal
2000 level

5% reduction in energy consumption compared with fiscal 2007 level

3% reduction in energy consumption compared with fiscal 2007 level

1% reductions in specific energy consumption for production andtransportation

1% reductions in specific energy consumption for production andtransportation
4% reduction in specific energy consumption for transportationcompared with fiscal 2006 level(Applicable to Furukawa Electric only. 1% reduction compared withfiscal 2009 level for the Group)

Chemical substance management activities

Optimal management of the quantity of chemical substances consumed

36% reduction in emissions of volatile organic compounds comparedwith fiscal 2004 level

Green activities

Expansion of general purpose green products

60 general-purpose products—expansion target at Group
companies: 5

Eco-design activities

Increase in the development and sale of environmentally sound products
Improvement in product environmental performance indices and increase insales

Sales percentage of environmentally sound products: 20% or more
(Applicable to Furukawa Electric only)

Biodiversity preservation

Formulation of guidelines and establishments of systems

Formulation of the Furukawa Electric Group policy
Development of a Companywide activity system and formulation ofguidelines

Zero emission activities
Activities to prevent global warming

ColumnResponse to the Revised Energy Conservation Law
In estimating the CO2 emission equivalent of electricity
consumed, the Furukawa Electric Group has historically applied
a fixed emission factor value of 0.378kg CO2/ kWh. This is
the nationwide fiscal 2000 average coefficient for Japan’s 10
major utility companies. The rationale behind adopting a fixedvalue can be attributed to the difficulties involved in evaluating
the energy conservation effects of the Group’s activities. This
reflects the impact of changes in utility company emissions
factors when CO2 emissions are calculated using factors foreach utility company at each works.
However, with the revision to the Energy Conservation
Law, the Company has decided to apply the emission factorsof each utility company in line with the generally accepted
evaluation practice. In formulating the 2012 Medium-Term Plan,
we have reviewed CO2 emission going back to fiscal 2000
using individual utility company emission factors for each year.
On this basis, a 2012 Medium-Term Plan reduction target of
15% has been set compared with fiscal 2000 level.

CO2 emission
104 tons
CO2

120
90
70.8

60
30

68.8

67.7

65.1

60.3

64.2

27.6

31.6

30.5

30.1

28.9

28.1

0
2000

2005

2006

2007

2008

2009

Affiliatedcompanies
Furukawa
Electric(Fiscal year)

Notes:
1. The emission factors of each utility company have been used in the conversionof power consumption.
2. CO2 emissions attributable to hydroelectric power are identified as zero.
3. Group-wide hydroelectric power consumption totaled 148,700MWh in fiscal
2009 (12% of total power consumption).

Furukawa Electric Group CSR Report 201022

Environmentally Sound Products
Initiatives
for theEnvironment

The Furukawa Electric Group develops environmentally friendly products that help to reduce environmental impact
while promoting their increased use through the e-Friendly accreditation system.

e-Friendly Accreditation System
The criteria for an environmentally sound product is met
when it offers an overall improvement from an environmental
standpoint when compared with existing products andbased on predetermined standards at each stage , from thepurchasing of raw materials and components, manufacturing
and use to distribution and disposal.
The e-Friendly mark has been introduced to indicate thata product is environmentally sound. The mark is displayed on
external packaging and used as a sales promotional tool.
Targeting 40 or more items, Furukawa Electric registered
36 environmentally sound products on a non-consolidated
basis in fiscal 2009. This represented an achievement rateof 90%.
Turning to the Group as whole, 40 items were registered fora cumulative total of 56 items.
Plans are in place to adopt an easier-to-understand index
and to target an environmentally sound product to total sales
ratio of 20% or more in fiscal 2010.

Application and Registration ofEnvironmentally Sound Products
Following application and screening by the business division,
products that pass the screening conducted by the Committee
for Development of Environmentally Sound Products, a crossfunctional organization of the Furukawa Electric Group, areregistered as environmentally sound products.
Registration process for environmentally sound products
Business division
Application

Screening by the business division
Pass

Screening by the Committee for Development ofEnvironmentally Sound Products
Pass

Registration

Environmental Performance Index and LCA
The e-Friendly markCategory of Environmentally Sound
Products
The Furukawa Electric Group’s environmentally soundproducts belong to one of four categories described below.
Environmentally sound product categories
Category

Content

Prevention of global
warming

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

Zero emission

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

Elimination materials thathave an impact on theenvironment

Energy savings

Products that do not lead to an increase in the use of ozonedepletive substances during the manufacturing process, do notcontain harmful substances above regulatory limits and do not
generate harmful substances above these limits during use ordisposal.
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 easierproduct and component maintenance, and reducing the use forresources in packaging.

23 Furukawa Electric Group CSR Report 2010

Furukawa Electric took steps to apply environmental
performance indices to its products from fiscal 2009.
The environmental performance index quantifies productimprovement against a standard model and expresses
a product’s environmental contribution by comparing its
functional index (for example intensity etc.) and environmental
impact (including CO2 emissions) over its life cycle.
We will compile index guidelines and an evaluation systemfor 16 or more products for each business division in thecurrent fiscal year. In fiscal 2011, we will formulate proprietaryproduct category rules (PCRs), from the following fiscal year
and beyond. In addition to their use as a management index
and display on product catalogues, we will incorporate PCRs
into the next medium-term plan as well as R&D activities.
List of products subject to LCA in fiscal 2010
Company business division

Products subject to PCRs

Energy and Industrial Products Company• Green troughs • EFLEX• EFCELL • AT tapes

Telecommunications Company• Optical cables • Fusion splicers• Optical amplifiers • Optical delay devices• Optical connectors• Semiconductor laser modules• Optical network equipment

Electronics and Automotive Systems
Company• Enameled wires • TEX (insulated wires)• Heat pipes • Memory discs• Automotive terminal components

Metals Company• Copper foil products • Copper strip products

Environmentally Conscious Production
Initiatives
for theEnvironment

The Furukawa Electric Group is pursuing various environmental protection efforts to reduce theenvironmental impact of its production and distribution processes.

Reducing Greenhouse Gas Emissions

Green Procurement

Initiatives at Works

Increasing purchasing rates and expanding
efforts at affiliated companies

The majority of the Group’s greenhouse gas emissions consistof CO2 generated from electricity, fuel and other energy
sources. As emissions from manufacturing processes accountfor a large proportion, we work on reducing emissions byincreasing the efficiency of production processes, switchingfuels, replacing equipment with more efficient alternatives,
meticulously turning off lights when not in use, insulating hot
areas and other measures. Total Group GHG emissions cameto 860,000 tons of CO2 in fiscal 2009, a reduction of 19%
against fiscal 2000 levels. On a non-consolidated basis, weachieved an equivalent of 290,000 tons of CO2, a reduction of
21% compared to fiscal 2000.

The main components that go into the manufacture of theCompany’s products are purchased in accordance with the
Furukawa Electric Group Green Procurement Guidelines. In
this manner, steps are taken to ensure that components meetcertain predetermined requirements with respect to chemical
content. Furukawa Electric will systematically extend thisprocess to cover all components. Turning to office supplies
and related products, the number of items compliant with thecriteria for specified procurement stipulated under the Law
on Promoting Green Purchasing totaled 52 as of the end of
fiscal 2009. We will continue to expand the number of certified
items and extend activities to cover affiliated companies.

Greenhouse gas emission

Developing a green product management
system supply chain

104 tons
CO2

120
90
69.3

65.0

65.2

60

62.5

57.0 Affiliated57.3

companies

30
36.6

33.2

32.4

32.8

29.0 Furukawa

29.2

Electric

0
2000

2005

2006

2007

2008

2009

(Fiscal year)

Initiatives in Logistics
In fiscal 2009, total transportation volume for Group fell 5.6%
year on year to 442 million ton-kilometers. Of this total, Furukawa
Electric accounts for 135 million ton-kilometers. While thisis 7% higher than the fiscal 2008 level, the Company held theincrease in CO2 emission to 2.5% due largely to enhancements inloading rates. In addition, Furukawa Electric achieved a reductionof 8% in specific consumption (denominator: ton-kilometers)from fiscal 2006. We will continue to promote a modal shift,increase loading rates and promote joint deliveries to reducetransportation energy consumption.
Modal shift and specific consumption (Furukawa Electric only)
(%)

12.0

MJ/tonkilometers

1.897

1.9
1.869

9.0

1.833

6.0

10.7

9.9

1.742

8.5
3.0

Rate ofmodal shift

1.8

Specific
consumption

1.7

3.6
0

0
2006

2007

2008

2009

(Fiscal year)

The Furukawa Electric Group strives to collect information
on environmental regulatory requirements in a timely manner.
At the same time, the Group is working to establish a green
product management system for Furukawa Electric brandproducts and to improve activities prerequisite to plant as wellas principal supply chain management including procurement
oversight, the prevention of pollution attributable to processes
and the control of loss during shipment. All 12 eligible plants
renewed their qualifications as green partners in fiscal 2009
under Sony Corporation’s environmentally friendly system
and material procurement campaign. Moreover, we conduct
regular audits from a sampling of eight plants, 26 affiliatedcompany and nine supplier plants.

Adopting a Green Product Management System
The Fitel Products Division of Furukawa Electric’s
Telecommunications Company has adopted a green
product management system in order to comply with EURoHS directives and REACH regulations and to better
secure a supply chain that remains conducive to the smoothdissemination of chemical substance information in tune withchanges to regulatory requirements.
In employing this system together with the Company’s
assessment sheet, which corresponds to JAMP*1 and JGPSSI*2
information distribution specifications and standards, Furukawa
Electric is efficiently managing the collection of information andhistorical records. We are selecting products that comply withregulations at the early stages of design and endeavoring toenhance product environmental risk management.
*1 Joint Article Management Promotion consortium*2 Japan Green Procurement Survey Standardization Initiative

Furukawa Electric Group CSR Report 201024

Initiatives
for theEnvironment

Environmentally Conscious Production

Green product management system

Direct landfill disposal(Tons)

5,000
AIS
research request

Furukawa Electric: Green product management system

MSDSplus
research request(Components)
Content
management(Products)
Collation

In-house products
Chemical substances(DB)

JGPSSI
submission

Customers

Suppliers

Response

AIS
submission

Response

4,000
3,000

4,121

2,000

504

0
2004

Zero Emission Activities

3,113

2,254

1,000

176
2005

2,124

177
2006

1,847

271
2007

1,619 Affiliatedcompanies
Furukawa

164 Electric

258
2008

2009

(Fiscal year)

Reducing Waste Disposal Costs

The Furukawa Electric Group began taking action to reduce
outsourced waste disposal in 1993, and launched zero
emission efforts in 2001 for reducing the volume of final
disposal to less than 1% of the total volume of waste bydirectly transporting waste from each works to final disposalsites. As a result of our efforts to meticulously sort waste
and recycle waste acid and sludge into useful resources, theoverall level of outsourced waste disposal for the Group forfiscal 2009 fell by 53% compared with fiscal 2004 to 7,005
tons. Furukawa Electric achieved an equivalent reduction of
67% on a standalone basis and our affiliated companies a
reduction of 48% (both compared with fiscal 2004 levels).
The overall level of direct landfill disposal for the Group also
fell by 61.4% compared with fiscal 2004 to 1,783 tons.
Furukawa Electric achieved an equivalent reduction of 67% on
a standalone basis and our affiliated companies a reduction of
61% (both compared with fiscal 2004 levels).

In fiscal 2001, spending on landfill and intermediate disposal
cost more than 300 million yen. Since then, we have promoted
reuse, reduced the levels of waste and carefully sorted waste
to generate value from it. As a result, the Company maintained
positive benefits from 120 million yen to around 250 million yen
between fiscal 2006 and 2008 on the back of soaring copper
prices. In fiscal 2009, however, we incurred a negative impactof 29 million yen due to the decline in copper prices, recycling
market saturation and other factors.
Trends in waste disposal costs(Million yen)

300

249

249

200
124
100
43
0
-29
-100

-75
2004

2005

2006

2007

2008

2009

(Fiscal year)

Outsourced waste disposal

Introduction of the Electronic Manifest System(Tons)

Furukawa Electric has also introduced the electronic manifest
system. We commenced operations at our Hiratsuka and
Mie Works in April 2008. Operations began at Nikko Worksin February 2009, followed by Chiba Works in July 2009. In
2009, the annual rate of usage of the electronic manifest for
all companies was 64.5% (total manifest transactions: 3,616;
electronic manifest transactions: 2,332). We intend to focus
on expanding its use to all our works in the future.

15,00010,00010,997
8,705

8,600

9,041

7,824

5,000

5,753 Affiliatedcompanies

3,816

2,119

1,839

1,552

1,160

0
2004

2005

2006

2007

1,252 Furukawa
Electric

2008

2009

Electronic manifest transactions and transaction ratios(Transactions)

(%)

4,000

75

64.5

(Fiscal year)

3,000

52.4

2,000

1,897

50

2,332

25
1,000
0

0
2008

25 Furukawa Electric Group CSR Report 2010

2009

(Fiscal year)

Chemical Substance Management
Initiatives
for theEnvironment

The Furukawa Electric Group promotes efforts to appropriately manage and reduce the use ofharmful chemical substances.

Activities for Reducing Emission of Volatile
Organic Compounds

Chemical Substance Management
The Furukawa Electric Group promotes efforts to reduce theuse of harmful chemical substances. In particular, we makeevery effort to actively reduce emissions of volatile organic
compounds, which are regarded as one of the causes ofphotochemical smog. Furukawa Electric’s emissions havefallen 45% compared to levels in fiscal 2004. Three of thefour affiliated companies that were using organic chlorinecompounds completely phased out their use during fiscal 2008.
Emissions of volatile organic compounds

Although Furukawa Electric does not currently own any facilities
that fall under regulations set out in accordance with the Air
Pollution Control Law, we are nonetheless working to reduce
emissions. The main types of volatile organic compounds (VOC)
that we handle are toluene and isopropyl alcohol (IPA). We
switched from toluene to a hydrocarbon-based detergent in the
degreasing of copper strips and installed recovery apparatus for
IPA, which is used to reduce copper wire when it comes out of
the melting furnace, in efforts to achieve reductions. Moreover,
we are considering process improvement to further reduce
emissions.

(Tons)

400
300

Column

327

310

253

252

203

200

Developing analytical techniques that lead tofurther advancements in eco wires

170

100
0
2004

2005

2006

2007

2008

2009

(Fiscal year)

Appropriate Management of Chemical
Substances
At Furukawa Electric, we confirm the properties and applicablelaws and regulations regarding all chemical substances we
use during the manufacturing process on their Material Safety
Data Sheets and administrate them. We also monitor thevolumes of each substance used and report the relevant
details in accordance with the PRTR Law*.
* Law Concerning Reporting, Etc. of Releases to the Environment of Specific Chemical
Substances and Promoting Improvements in Their Management

List of PRTR substances (Furukawa Electric only)(Unit: ton)

Substance
No.

Substance

Volume handled

Volumereleased

1
31
53
80
82
86
88
144
232
272
300
304
305
308
309
332
333
349
355
374

Zinc and its compounds
Antimony and its compounds
Ethylbenzene
XyleneSilver and its water-soluble compounds
CresolHexavalent chromium compounds
Inorganic cyanide compounds
N,N-dimethylformamide
Copper salts (water-soluble)
TolueneLead
Lead compounds
NickelNickel compounds
Arsenic and its inorganic compounds
Hydrazine
PhenolBis (2-ethylhexyl) phthalate
Hydrogen fluoride and its water-solublecompounds
Boron compounds
Molybdenum and its compounds

7.7
6.4
6.7
17.7
2.4
177.1
9.9
4.7
53.3
15,913.7
246.2
1.5
3.7
2.2
22.9
1.2
10.6
121.7
3.8
2.2

0.1
0.0
0.0
8.0
0.0
0.0
0.0
0.0
0.0
0.4
86.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
0.0

0.7
0.5
0.0
0.9
0.0
0.0
7.8
0.0
0.0
39.8
52.1
0.0
0.1
0.0
1.2
0.1
0.0
0.1
0.2
2.2

0.0
0.0
6.7
8.6
0.0
176.7
2.1
4.7
52.9
5.2
106.4
0.1
0.0
2.2
5.8
0.0
10.6
121.4
0.0
0.0

3.7
1.1

0.8
0.0

0.1
0.2

0.0
0.0

16,620.4

96.3

106.0

503.4

405
453

Total

VolumeVolumetransferred neutralized

Furukawa Electric sells such environmentally soundproducts as ECOACEPLUS, an eco wire that does notuse either harmful heavy metals or halogen as sheathingmaterials. At each lifecycle stage, from receipt of raw
materials to product shipment, high levels of management
are required in product inspection to avoid quality
deficiencies attributable to harmful element contamination.
While nondestructive fluorescent X-ray (XRF) inspection
methods are employed, standard sampling of similarlycomposed products is critical to ensuring accurate
measurements. We have already developed proprietary
standard sampling techniques for such heavy metals as
lead, cadmium and hexavalent chromium and halogens
including chlorine and bromine, substances prohibited
under RoHS directives.
Moving forward, we established standard samplingtechniques for heavy metals that could shortly be expected
to fall within the scope of regulation. These included
arsenic, bismuth, selenium and antimony. Through thesemeans, we have implemented systems for the managementof harmful substances that extend beyond the scope ofcurrent regulation. Looking ahead, we will engage in strict
eco wire quality management and inspection to ensure
higher levels of product safety and reliability.

ECOACEPLUS ®

Furukawa Electric Group CSR Report 201026

Environmental Risk Management
Initiatives
for theEnvironment

The Furukawa Electric Group recognizes the environmental risks associated with its business
operations and therefore develops and implements countermeasures for each risk.

PCB Management

Preventing Soil and
Groundwater Pollution
The Furukawa Electric Group conducts strong risk
management recognizing that soil and groundwater pollution
are vital health and safety concerns for local residents andemployees. We take prompt action upon the discovery of any
soil or groundwater pollution. Every effort is made to secure
the health and safety of local residents. We report to local
authorities on the status of any pollution and actions to prevent
its spread, and we release information to local residents,
related organizations and the media as necessary. We
implement a range of actions to protect the local environment
from soil or groundwater pollution, including regularly
inspecting for leakages of specific harmful substances,preventing leakages and using alternative substances.
In fiscal 2009, we conducted remedial work on land we own
in the Yokohama area, developed a slag treatment plan for the
Oyama area (a plant site of the former Furukawa Magnesium Co.,
Ltd.) and undertook an examination of slag deposit volume andground pollution. Having confirmed the presence of groundwaterin excess of standards at a portion of the site, work is being
undertaken to prevent its spread. Running parallel with this work,
we are pursuing the appropriate treatment of slag together withsoil remedial work. Turning to affiliated companies, soil remedial
work for removing Kyowa Electric Wire’s former Osaka Plant
from the list of contaminated areas under the Soil Contamination
Countermeasures Law and at the Ibaraki Plant owned by
Aoyama Kinsho Co., Ltd. has been completed.

Effort to Prevent Atmospheric andWastewater Pollution
Every Furukawa Electric works maintains voluntary control
limits and manages operations to avoid exceeding regulatory
limits for atmospheric and wastewater quality.
Atmospheric and wastewater quality data was all managed
within regulatory limits at each works in fiscal 2009.
* See our website for detailed data for the Chiba, Nikko, Mie works as well as the
Copper Tube and Copper Foil divisions.

Management status at works
Measured
item

Chiba
Works

Atmospheric NOx,SOx,
data
dust
pH,BOD,n-h
Wastewater (mineral oil)
quality dataSS

27 Furukawa Electric Group CSR Report 2010

: within regulatory limits

Nikko
Works

Mie
Works

Copper Copper
Tube Div. Foil Div.

The number of instruments containing PCB is monitored ateach affiliated company to facilitate effective storage andmanagement operations. Steps are being taken to pursue
early registration with the Japan Environmental Safety
Corporation and the commissioning of PCB waste processing
on an ongoing basis in accordance with plans.
Condensers and transformers removed from our facilities
are examined for PCB content on a case-by-case basis.
As was the case in the previous fiscal year, the numberof instruments containing PCB under storage was also
confirmed in fiscal 2009. Regulatory authorities were notified
and appropriate storage established.
Number of instruments containing PCB
Works

In storage

In useTotal

Already processed

88

0

88

Unprocessed

15

23

38

Nikko Works

385

12

397

Hiratsuka Works

883

10

893

Mie Works

131

3

134

Copper Tube Division

65

0

65

Yokohama Works

22

0

22

Copper Foil Division

16

2

18

1,605

50

1,655

Chiba Works

Total

Response to Asbestos Concerns
Use of Asbestos in Products
Although we no longer manufacture or import products
containing asbestos, we have previously done so for industrialuse. Relevant products include electric wires for use on ships
and fire prevention products for electric wire installation fortelecommunications and electricity.

Use of Asbestos in Buildings and Plant Facilities
Plants and buildings
A fiscal 2005 investigation to ascertain the extent to whichasbestos spray materials discovered in Company-owned
properties may have dispersed confirmed that asbestos
was stable. Given the risk of future dispersal, we removed
or contained the materials at plant buildings in fiscal 2006.
Investigation is ongoing at one tenanted building. As old
tenants vacate and new tenants enter the building, work is
being undertaken to remove asbestos materials.
Facilities and equipment
Insofar as possible, asbestos subject to dispersal has
been replaced with viable alternatives. Where asbestos is
not dispersed, we will later install non-asbestos containing
materials during scheduled inspections.

Environmental Accounting
Initiatives
for theEnvironment

The Furukawa Electric Group has introduced environmental accounting to gain a quantitative
understanding of costs and proceed efficiently and effectively in its environmental activities.

Environmental Accounting
We have compiled tables outlining our environmental
conservation costs, economic benefits associated withenvironmental conservation activities and environmental
conservation benefit (material benefit).
Furukawa Electric’s environmental conservation costs forfiscal 2009 came to about 3.4 billion yen in expenses. Investment
totaled around 1.1 billion yen of which more than 0.8 billion yen
was largely allocated to such environmental pollution control

measures as the renewal of dust collectors at Mie works. Taking
into account contributions to the reduction of energy costs, theeconomic benefit was around 1,960 million yen.
Environmental conservation costs for our affiliated companies
came to 4.9 billion yen in expenses and about 900 million yen in
investment. The economic benefit was approximately 4.4 billion
yen due to cutbacks in energy costs.

Environmental conservation costs(Unit: million yen)

Category

Key activity and the outcome

Total costs
Furukawa Electric (Year on year)

Affiliated companies

1,382 (47)2,030Pollution prevention (air pollution, etc.), energy conservation, waste
disposal, etc.
Recovery of packaging, drums, etc.
Environmental management system auditing, environmental
impact monitoring, etc.
Development of environmentally sound products, research into
alternatives for harmful substances
Tree planting, local community cleaning activities, donations, etc.
Environmental impact assessments, cleanup of polluted soil, etc.

(1) Business area cost(2) Upstream/downstream cost(3) Administration cost(4) Research and development cost(5) Social activity cost(6) Environmental remediation cost

Total

696 (59)

1,638

393 (−22)598

824 (−396)620

4 (−33)130 (53)425

3,429 (−292)

4,915

Note: All data has been compiled in accordance with environmental accounting guidelines published by the Ministry of the Environment. Data on affiliated companies was collected
for a total of 14 companies.Year-on-year comparative data has not been provided due to changes in the scope of affiliated companies.

Environmental conservation benefit
Reduction
Furukawa
AffiliatedElectric
companies

Economic benefit associated with environmental
conservation activities(Unit: million yen)

Emissions causing environmental
impact

Unit

Volume of industrial waste disposal
processed*1

tons

−98

1,666

Energy consumption (crude oil
equivalent)

1,000 kl

680

Water consumption

1,000 tons

9,722

1,122

tons

33

48

* Minus figures indicate an increase

1,000 tons-CO22

3

Investment and research costs

Emissions of volatile organic chemicalcompounds
CO2 emissions
SOx emissions

tons

−30

65

NOx emissions

tons

−19

2

Soot emissions

tons

5

78

Total benefit
Furukawa
AffiliatedElectric
companies

Details of benefits
Revenue from recycling
Reduction in waste disposal costs
Reduction in energy costs
Reduction in water purchase costs

Total

Environmental conservation costs

Economic benefit(Million yen)

6,000

2,000

5,000

1,600

4
1,184

3,000

89
1,102

2,000

403
511

428
667

1,401

1,515

1,000

130

1,260

1,618

4,000

77
37
1,219

514
3
1,091

4
824
393
696

415
637

454
567

1,382

1,335

1,127

Environmental
remediation cost

1,200

Social activity cost
Research anddevelopment cost
Administration cost
Upstream/
downstream cost

800
400

Business area cost

-400

0

0

1,964

4,462

(Unit: million yen)

Environment-related investment
Total investment
Total research costs(Million yen)

568
175
3,721
−2

Total costs
Furukawa
AffiliatedElectric
companies

Investment and research costs*1 Excluding recycled waste*2 Minus figures indicate an increase

217
0
1,715
33

1,098
6,753
9,457

1,965

2006

2007

2008

2009

(Fiscal year)

Total revenue andexpenditure

1,715

Reduction in energy
costs

448

317
228
61 30

338
41 -1

-2

25

349
-3

440

19 66 6217
0Reduction in water
purchase costs

33 Reduction in waste-13

disposal costs

-393

-352

-712

Revenue from recycling

-800
2005

892
6,079
3,454

2005

2006

2007

2008

2009

(Fiscal year)

Furukawa Electric Group CSR Report 201028

Initiatives for Society
The Furukawa Electric Group values communication withall stakeholders throughout its corporate operations.

Relations with our Customers

30

Relations with our Shareholders

31

Relations with our Suppliers

32

Relations with our Employees

33

Relations with Communities

37

29 Furukawa Electric Group CSR Report 2010

Relations with our Customers
Initiatives
for Society

Furukawa Electric responds to the diverse needs of its customers by maintaining and improving the qualityof its services and operations through technological innovation and effective quality control.

Furukawa Electric Quality Control
Furukawa Electric established the Quality Control Committee
in 1949 and commenced educational activities to raise
employees’ awareness of statistical methods and otheraspects of quality control at all of its works. This enabled theCompany to significantly increase quality levels, as well as
enhancing operational stability and efficiency. These quality
control initiatives were recognized in 1952 as Furukawa
Electric was awarded the Deming Application Prize forachieving distinctive performance improvement through theapplication of total quality management (TQM).
To maintain and improve quality levels, we have obtained
ISO 9001 certification at each of our manufacturing divisions,and standardized operations. We continue to make efforts toimprove efficiency and other core aspects of our operations
and promote activities designed to improve levels of quality
and customer satisfaction.

Quality Improvement in Fiscal 2009
We have managed to significantly reduce customer complaints
and successfully reduced complaints to 16% of levels in fiscal
2001 (as of fiscal 2009). Demand from customers for morediverse and sophisticated decryption has led us to mobilize awide range of technology and know-how .
Customer complaints
(%)

100

100

Base rate

80
60
35

40

28

27

20

18

16

2008

2009 (Fiscal year)

0
2001

2005

2006

2007

Quality Improvement Activities
Quality Control Policy
At every stage of our operations, from research anddevelopment to manufacturing, sales, customer
service and management, in all sections and all
hierarchies, we always strive to adhere to a PDCA
management cycle based on actual facts, maintainand improve our products, customer services and thequality of our operations and put our management
policies into practice.

To guarantee quality at every level throughout the Company,
Furukawa Electric has established the Central Control
Committee with direct links to the president to oversee theCompanywide promotion of quality control activities. We havealso set up Divisional Quality Control Committees with direct
links to the heads of each division and make every effort tomaintain and improve the quality of our products, services andoperations so as to offer continual quality assurance.
Quality control organizational structure
President

Central Quality
Control Committee

Quality Control
Management Meeting

Divisional
heads

Affiliated companies

Quality Control Manager

In accordance with our basic policy of putting quality firstand implementing uniform Companywide quality control, we
formulate a Companywide quality control policy each year.
This then forms the basis for quality control policies in eachdivision.
For fiscal 2010, we have set out a Companywide
quality policy, placing the utmost emphasis on quality
while endeavoring to manufacture excellent products fromthe customer’s perspective. To achieve this policy, we arepromoting quality improvement activities in each division,
focusing on efforts that help visualize design as well as
manufacturing quality and prevent customer complaints.
We are also implementing a range of support initiatives,
including FR proposal and QC Circle activities. Taking theirname from the “F” of Furukawa Electric and the “R” ofrenewal, reform and rationalization, FR proposals involves
employees submitting ideas on how to improve operations.
Proposals are then implemented in an effort to fundamentallystrengthen the Company’s business. Such activities continue
to yield substantial result each year.
QC Circle activities are small group-based activities thatinvolve employees and harness QC techniques in an effort tomake ongoing improvements in the workplace.
Debriefing sessions are held not only at individual works,
but also on a Companywide basis to report back on the
results of activities. With the participation of overseas affiliatedcompanies these sessions continue to grow substantially.

Divisional Quality Control Committees

Furukawa Electric Group CSR Report 201030

Relations with our Shareholders
Initiatives
for Society

Furukawa Electric engages in IR (investor relations) activities based on two-way communication with ourshareholders and investors in an effort to contribute to society and enhance our value as a company.

Information Disclosure Policy and IR
Framework
The Furukawa Electric Group Action Guidelines state that wewill maintain and improve upon solid, friendly relationships withall of our stakeholders. Our own Regulations on the Timely
Disclosure of Corporate Information meanwhile set out aframework for the disclosure of appropriate information at theappropriate time.
All IR activities are overseen by the Chief Financial Officer(CFO) and are managed by the Investor & Public Relations
Unit of the Corporate Strategy Planning Department.

Relations with Institutional Investors
and Securities Analysts
In addition to holding management briefings (coveringinterim and year-end results and medium-term plans) for
institutional investors and securities analysts, we actively
encourage communication all year round. Through results
briefings, overseas road shows and other activities, we
engaged in communication with a total of 1,005 institutional
investors and securities analysts over the course of fiscal
2009. As of the end of March 2010, the percentage of theCompany’s shares held by overseas investors stood at
approximately 22%.

Relations with Individual Investors
In fiscal 2009, we held our second plant tour for individual
investors. A total of 119 investors chosen by lot from 1,632
applicants experienced Furukawa Electric by observing
the manufacturing of optical fibers and electric cables andexperiments on superconductivity. Many of the investors
commented on the benefits of gaining a true understandingof the Company’s technological capabilities and businessactivities. As of the end of March 2010, we had a total of
64,770 individual shareholders (a reduction of 3,466- on theprevious year), accounting for 27% of company shares.
Trends in shareholder distribution
Securities firms, etc.

Individuals

Securities firms, etc.

Individuals

2.5%

29.1%

2.6%

27.2%

Overseascompanies

21.6%

Domestic
companies

7.4%

Overseascompanies

21.6%

March 31,2009

Financial institutions

39.4%

March 31,2010

Domestic
companies

7.1%

Financial institutions

41.5%

Plant tour

End of year briefing session for institutional investors

Main IR activities in 2008
January
February
March
April
May
June

Superconductivity experiment during plant tour

Third quarter earnings announced

Returning Profits to Shareholders
Tours of overseas plants
Annual earnings announced; visits to overseas investors
General Shareholders’ Meeting; Shareholders’ Report issued

July
Augus
SeptemberTours of domestic plants
First quarter earnings announced

OctoberNovember
December

Plant tours for individual investors
Interim earnings announced
Visits to overseas investors

31 Furukawa Electric Group CSR Report 2010

Despite a harsh business environment, Furukawa Electric
maintained its basic policy to pay stable dividends. In fiscal
2009, we paid an interim dividend of 2.5 yen per share and a
year-end dividend of 2.5 yen per share, which added up to anannual dividend of 5.0 yen per share and represented a yearon-year decrease of 1.0 yen per share.

Relations with our Suppliers
Initiatives
for Society

Furukawa Electric strives to maintain cooperative relationships based on mutual trust with
suppliers through enhanced communication.

Striving to Ensure Optimum Purchasing
on a Steady, Ongoing Basis

Supplier Meetings and Supplier
Evaluation Scheme

Furukawa Electric’s purchasing policy is to establish strategic
relationships with suppliers to ensure optimum purchasing
on a steady, ongoing basis. We believe that cooperative
relationships with our suppliers will become even more
important for achieving sustainable growth. Furukawa Electric
has always sought to forge cooperative relationships basedon trust with each supplier by communicating our status andpolicies through Supplier Meetings and a Supplier Evaluation
Scheme. In addition to these efforts we are working on thefollowing initiatives.
Study Group on Subcontracting Transactions
We believe today’s severe economic conditions make iteven more important to forge sound relationships with our
suppliers through fair transactions that comply with rules andregulations. As part of this effort, we have held Study Groups
on Subcontracting Transactions for the Furukawa ElectricGroup aimed at legal compliance as a training focus for theentire Group. In fiscal 2009, 60 employees from 18 affiliatedcompanies participated in lectures held on subcontracting
transactions.
Formulation of BCP in Procurement Activities
We have started developing a BCP (business continuationplan) for our procurement operations that is based on theassumption of a major disaster. We are setting up a systematic
framework for compiling data from all suppliers on theirsituations, which we currently obtain from them separately,
to quickly discern the overall picture in the event of a disasterand to update our risk management system and minimize
obstacles in maintaining procurement operations under the
worst-case scenario.

Furukawa Electric strives to forge cooperative relationships
with suppliers by regularly holding Supplier Meetings, by
evaluating the status of transactions under the Supplier
Evaluation Scheme and by providing feedback on the results.
At the Supplier Meetings, we provide an overview of theCompany, outline our purchasing policy and explain the
management strategy of each company to enable suppliers togain a deeper understanding of our operations. In the Supplier
Evaluation Scheme, we evaluate suppliers on the basis ofquality, technology, price, delivery system, degree of social
contribution and financial condition, and then hold meetings
to provide feedback on our findings. We explain and discuss
results during these meetings to more closely align ourawareness of procurement activities.
In fiscal 2009, we held a Supplier Meeting in September,which was attended by 91 of our major suppliers. We also
evaluated approximately 350 companies under the Supplier
Evaluation Scheme and conducted feedback meetings.
We intend to further
strengthen our relationships
in the future.

Furukawa Electric Purchasing Policy (Outline)• We will establish strategic relationships with
suppliers to ensure optimum purchasing• We will guarantee the reliability and safety ofmaterials and supplies and their steady procurement• We will employ purchasing methods closely linked
to production methods• We will implement global procurement• We will engage in green procurement and enforce
complianceThis year’s Supplier Meeting

Promoting CSR Activities in Relation
to Procurement
Furukawa Electric has been promoting compliance initiatives
as part of the procurement of materials and supplies inaccordance with the Furukawa Electric Group Action
Guidelines. Work is currently underway to organize past
initiatives and policies toward developing CSR Procurement
Guidelines. Looking ahead, we plan to expand internal CSR
procurement operations into activities that regard the entire
supply chain. Furthermore, we will respond to customer
requests to avoid using resources produced by mines that
disregard human rights and the environment, or “dirty mining,”by continuing efforts such as requiring refiners to demonstrate
ethical judgment in selecting mines. Dirty mining is not,however, an issue that the Company can resolve in its own
right. Furukawa Electric plans to further highlight dirty mining
as an issue for the industry as a whole.

Furukawa Electric Group CSR Report 201032

Relations with our Employees
Initiatives
for Society

The Furukawa Electric Group strives to create a varied personnel system and pursues health and safety activities
to remain a corporate group that motivates its employees and fills them with pride.

Personnel Management Policy

Status of Employment

Our basic personnel management policy focuses on creating humanresources who are capable of putting the Furukawa Electric Group
Credo’s five principles into practice.
We believe that to get the most out of our staff’s abilities, it
is imperative that individual employees adhere to compliancerequirements and that we develop a workplace environmentthat respects human rights. Based on these foundations, we aredevising a personnel system that will harness employees’ abilities
and personalities through such initiatives as performance-based
remuneration schemes and programs that help achieve work-lifebalance. In this manner, we are endeavoring to become a company
that motivates its employees and fills them with pride.
In our medium-term management plan “New Frontier 2012,” wehave identified efforts to foster a powerful workforce and to build
collaborative ties with affiliated companies in Japan and overseas as
key measures. We are taking up the challenge of revamping existing
initiatives while introducing new measures.

Recruitment
Furukawa Electric has newly adopted “the driving force” asa concept slogan in fiscal 2010. Furukawa Electric is placingemphasis on the individual human resource qualities including
promise and potential. We are working to secure thosecapable personnel who will drive the Company forward. At thesame time, we are actively recruiting foreign nationals with theability to excel on the world stage.
Furthermore, we are conducting the Furukawa Group
Forum, a collaborative presentation by Group companies
targeting university and graduate students.
Recruitment figures

Specialized
staff

Overview of the personnel system
Management philosophy
Management policy

Management strategy

Fiscal
2008

Fiscal
2008

Fiscal
2008

Fiscal
2009

Fiscal
2010

Male

55

81

84

79

51

Female

8

16

17

13

8

Total

63

97

101

92

59

Foreign nationals

2

1

1

4

2

73

49

86

44

15

0

1

1

0

0

73

50

87

44

15

Professional Male
staff
FemaleTotal

Becoming a strong organization
Invigorating individuals* Total figures for fiscal 2009 do not include mid-career recruitment

Sharing directions, combining strengths

Employment for People with Disabilities

Personnel system based on merit and performance
Incentives for
employees
Challenging
settings

Performance
evaluation based on
management by
objectives

Setting
objectives

Multi-track
qualification
systemClear
expectations ofresponsibilities

Evaluation ofcontribution
levelsSetting
objectives asan organization

Appointmentof the righthuman
resources to theright positions

Motivating
system oftreatment

Evaluation
feedback

Ratio of employees with disabilities

Skillsdevelopment

Appointments
based onmerit

Enhanced selfawareness

Furukawa Electric established Furukawa New Leaf Co., Ltd.
as a special subsidiary in 2004 to actively employ people withlearning disabilities. The company handles cleaning operations
within the compounds of our works and currently employsa total of 23 people with disabilities, 10 at Hiratsuka Works
and 13 at Chiba Works. The company also provides detailed
guidance to assist people with disabilities in becoming
independent members of society. Although our employment
ratio of people with disabilities was 1.85% in the previous fiscal
year, exceeding the statutory target, we intend to work on
further expanding this group of employees, primarily throughour special subsidiary.

Activelyutilizingeducational
curriculum

(%)

2.00

1.50

1.49

1.54

2005

2006

1.80

1.86

1.85

2007

2008

2009

1.00
: Arrows indicate directions objectives are executed

33 Furukawa Electric Group CSR Report 2010

0
(Fiscal year)Employment of the Elderly
We operate a reemployment scheme for any employees
aged 60 or over who are in good health and wish to remain
in work. The duration of reemployment is being increasedin phases, with employees entitled to be reemployed up to
the age of 65. In fiscal 2009, 56 people (42% of employees
who had reached the retirement age of 60) applied for thisprogram, and a cumulative total of 104 had been reemployed
as of the end of fiscal 2009.

Fair Evaluation, Human Resource
Development and Treatment
Employee Assignment Evaluation and Treatment
We provide opportunities based on individual motivation andabilities under the concept of equality and operate consultation
schemes for employees to reflect on their career goals. In
fiscal 2009, we created an employee capability, job experienceand specialist expertise database to ensure uniform
management. In this manner, we assign each employee to his
or her most appropriate position commensurate with businessdevelopment. We have introduced a remuneration schemethat ensures fair evaluation and treatment. We are also training
managers in performance evaluation while improving the way
in which the system is run.

Development, Education and Training
We offer individuals the chance to grow and encourage
employees to develop their skills by providing training andsupport to help obtain qualifications.
For example, we have implemented the Global Business
Leader training program and are fostering personnel at theCompany and affiliated companies. In fiscal 2010, we willcommence training in Japan for overseas affiliated company
leaders to promote interaction with Company employees. We
have augmented training aimed at bolstering communication
since fiscal 2008. Moreover, we implemented a 360-degree
evaluation and follow-up training for middle-management,
which will conclude during fiscal 2010. At that time, we will
launch a new OJT curriculum.
We established the Conference for Worksite Innovation,
reinforced initiatives for creating human resource development
programs and training curricula, identified and resolved
manufacturing problems and commenced training for midlevel operators from fiscal 2008. We will implement programsfor those responsible for training and imparting traditional skills
as well as level-specific courses for manufacturing supervisors,
managers and technical staff.

Diverse Work Patterns and Work-Life
Balance Support Initiatives
As well as striving to enhance our employees’ working lives,
Furukawa Electric cooperates with labor unions to actively
support their personal lifestyles and help them stay in good
health through educational and other initiatives.
In fiscal 2007, Furukawa Electric was accredited as acompany that actively supports the development of the next
generation. In line with our second phase action plan (fiscal
2007–09), we significantly relaxed requirements to make iteasier for employees to take maternity/paternity leave. We
also established a system for the provision of financial support
whereby employees can use carried-over leaves in place ofmaternity/paternity leave or for the purpose of looking after theirchildren. Moving forward, we will upgrade and expand systems
and implement new initiatives in line with our third phase action
plan (fiscal 2010-12) in an effort to build a comfortable workplaceenvironment.
In addition, during fiscal 2008 we established a new programfor a mandatory two-day annual leave assigned by the Company(simultaneous leave) to reinforce our efforts to reduce total work
hours. At the same time, we are advancing a variety of initiatives.
We became, for example, a member of the nonprofit organization
J-Win and continue to actively participate in external networks
concerned with promoting diverse work patterns as well as worklife balance.
Diverse work pattern and work-life balance support schemes
Scheme/educational
initiative

Purpose and details

Flexible workinghours

We provide lifestyle support to strike a work-life balance.

Consecutive leave

We allow all employees to take three days consecutive leave every
year providing that it does not exceed their annual paid leave
entitlement. Employees can obtain an additional two days every ﬁve
years (up to a maximum of ﬁve consecutive days).

Carried-over leave

Up to ten days of annual paid leave can be carried over, for up to ﬁve
years, and can be used if an employee is ill, providing nursing care, onmaternity/paternity leave or looking after their children.

Maternity/
paternity leave(and reduced
working hours)

We provide support over and above legal requirements to enable
employees to strike a work-life balance, including partial pay during
maternity/paternity leave and the option for employees to work
reduced hours thereafter until their child reaches elementary school
age. The program was applied to two male and 20 female employees
in ﬁscal 2009.

Nursing care leave(and reduced
working hours)

We provide support over and above legal requirements to enable
employees to strike a work-life balance, including enabling
employees to take nursing care leave (or the option of working
reduced hours) for up to a year at partial pay. No applications werereceived in fiscal 2009.

Retirement
seminars

We, labor and management, jointly organize seminars every year toprovide support to help middle-aged and older union members (those
aged 50 or older as a rule) to make the most of their time in work andplan for their life after retirement.

Middle-age
seminars

We, labor and management, jointly organize seminars every year toprovide individual support to help middle-aged employees (those aged
40 or older as a rule) to stay ﬁt and healthy, including measures toprevent illness.

Furukawa Electric Group CSR Report 201034

Initiatives
for Society

Relations with our Employees

Furukawa Electric Safety Activities

Occupational Health and Safety

Companywide Health and Safety Group Activities
Presentation Meeting

Furukawa Electric System for Health and Safety
The Furukawa Electric Group pursues health and safety
activities, recognizing our social responsibility to make theutmost effort in these areas and to develop a comfortableworking environment. The Central Health and Safety
Committee chaired by the Company’s Chief Social
Responsibility Officer, the officer in charge of safety, formulated
the Companywide Health and Safety Management Guidelines
and promotes health and safety activities on a Companywide
basis. Individual Health and Safety Committees chaired by theheads of the respective works are also in place at each works
to implement programs based on the Guidelines as well as
independent works’ activities. We strive to raise the level ofsafety standards at each works by establishing and following
up on standardized Companywide priority safety targets under
the Guidelines.
In addition, we established the Safety Management Liaison
Meeting in 2007 to oversee safety issues at Furukawa ElectricGroup manufacturing companies to secure safety acrossthe Group.
Furukawa Electric system for promoting health and safety
Central Health and
Safety Committee
Safety and Environmental
Promotion Department

Health and Safety
Committees (Works)

Every year, the manufacturing division undertakes healthand safety improvement activities at each workplace. The
38th Companywide Health and Safety Group Activities
Presentation Meeting was held at Chiba Works in July.
Thirteen groups representing each works presented theresults of their activities. The Group’s Copper Tube Division
was selected for its outstanding results in safe forklift truck
driving operations.

Companywide Health and Safety Group Activities
Presentation Meeting

Forklift Truck Safety Skills Competition
With the aim of promoting and improving safe forklift truck
driving skills, the 5th competition was held in October. A totalof 21 drivers from individual works and affiliated companies
participated in the competition. This is seen as an excellent
opportunity to raise the level of awareness with respect todriving safety and to highlight the gap between driving on adaily basis and ideal safety standards.

Health and Safety Staff
Subcommittee
Working Environment
Subcommittee

Workplace Health and Safety
Committees (Plants)

Safety Management
Liaison Meeting

Frequency of accidents resulting in the suspensionof operations
2.00

1.95

1.90

1.83

1.75

The forklift truck safety competition

1.62
All sectors

1.50

1.01

1.02

1.09

1.12
0.99

1.00

Manufacturing

0.74

0.65
0.53

0.52

Group-wide

0.50

0.50

0.27

0.25

Furukawa Electric

0.14
0
2005

2006

2007

35 Furukawa Electric Group CSR Report 2010

2008

2009

(Fiscal year)

Safety Management Liaison Meeting
The Safety Management Liaison Meeting is a forum for sharing
the details of and countermeasures for accidents that occur
within the Group. This information is used to prevent similar
incidents from reoccurring. Furthermore, efforts are being
made to ensure that safety measures are implemented laterally
through such measures as plant safety inspections conductedby Furukawa Electric, presentations of safety activities by
each company at meetings and plant tours advanced by the
Copper Tube Division.

Furukawa Electric Initiatives on Health
Mental Health Education
Our Companywide mental health measures have beenpromoted since 2002 and are based on the Guidelines for
Promoting Mental Healthcare in the Workplace issued by
the Ministry of Health, Labor and Welfare. We held lecturesby industrial physicians and nursing staff as well as outside
experts for management staff and general employees.
Moreover, we conducted stress control seminars as stressprevention support in fiscal 2007 and 2009 for employees
between the ages of 30 and 35. In fiscal 2010, we are
implementing education and training with a view to improving
workplace environments. Our goal is to enhance mental healthby invigorating both the organization and individuals whoplace the utmost emphasis on workplace engagement.
Responding to the Pandemic Influenza Virus
With the CSR Division and Health Management Centertaking leading roles, Furukawa Electric formulated the Basic
Policy on Pandemic Influenza Preparedness and put out arelated manual in 2008. At the same time, steps were taken
to conduct preventive education and to stockpile hygienic
and medical supplies. With the identification of a new
influenza virus strain in Japan and overseas, we adopted
strict measures to prevent the Group-wide spread of infection
during 2009 by requiring offices and works to submit any
and all reports of fever. Taking into consideration conditionsof the day and the less virulent virus strain, the Company
revised both its policy and manual. To ensure that the Groupremains fully prepared both for less and highly virulent strainsfrom fiscal 2010 and beyond, we are ramping up efforts tostock hygienic and medical supplies and continuing education
support incorporating overseas bases.

Manual on the pandemic influenza virus

Healthcare for Employees Working Long Hours
In line with the Labor Standards Bureau’s guidelines, Measures
to be Taken by Employers to Prevent Health Impairment Due
to Overwork, we are focusing on efforts to ensure that anyof our employees working long hours stay in good health,through measures such as (1) enforcing strict work restrictions

based on the results ofmedical examinations and(2) operating a consultation
system whereby
employees working longhours are seen by anindustrial physician.
Medical questionnaire

Promoting Separate Smoking Areas
In accordance with a 2003 notification, Concerning the
Guidelines for Measures on Smoking in the Workplace, issued
by the Director-General of the Labor Standards Bureau,
the percentage of smokers among male employees on a
Companywide basis fell from 53.3% in fiscal 2002 to 42% by
fiscal 2009. As an initiative running parallel to measures aimed
at preventing passive smoking announced by the Department
of Health of Japan’s Ministry of Health, Labour and Welfare
in February 2010, Furukawa Electric is conducting a series of
events to enhance Companywide awareness toward smoking
abstinence and the prevention of passive smoking.
Group-wide smoking rates among males
(%)

60
53.3

52.7
48.3

45.7

44.5

42.9

40

40.6

42.0

2008

2009

20

0
2002

2003

2004

2005

2006

2007

(Fiscal year)

Responding to Asbestos-Related Health Issues
During the period from fiscal 2005 to 2006, we once again
investigated workplaces that previously handled asbestos
products and we organized medical examinations focused on
asbestos for all relevant employees. We also sent out notices
urging retired employees who worked at the relevant sites toundergo medical examinations. So far, symptoms have been
detected in one current employee and nine retired employees.
Also, a retired employee who had worked laying undergroundcables died from mesothelioma, and in 2006 this was
confirmed to be an industrial accident. We have notified retired
employees who worked at the relevant site regarding changes
to the requirements for issuing health cards in the wake ofrevisions to Occupational Health and Safety Regulations in
October 2007 and will continue to monitor the situation.

Furukawa Electric Group CSR Report 201036

Relations with Communities
Initiatives
for Society

Under our Group Basic Policy on Social Contribution Activities, we are nurturing future generations,promoting sport and culture and living side by side with local communities.

Furukawa Electric Group Basic Policy on Social Contribution Activities
The Furukawa Electric Group will uphold and strengthen the bonds built up with local communities over more than acentury and consistently and tirelessly undertake social contribution activities, focusing on nurturing future generations,promoting sport and culture and living side by side with local communities as well as contributing to society through its
core operations, to help create a better world for future generations.

A System of CSR Awards Established
Furukawa Electric recognizes outstanding contributions byaffiliated companies to the Group’s overall performance througha system of awards each year in June. From the current fiscal
year, the Company has newly established a system of CSR
awards to reward affiliated companies for their endeavors outside
mainstream business activities focusing largely on contributions
to society and the environment.
A total of eight companies, including both domestic andoverseas, were recommended for consideration. Two overseas
companies, one from Brazil and the other from Thailand, wererecognized with social contribution awards, and one Group
company in Japan was presented with a social contribution
encouragement award. Based on the Furukawa Electric Group
Basic Policy on Social Contribution Activities, award winners
are selected after taking into consideration a variety of factors
including the number of people involved in each activity bothwithin and outside the Group, originality and ingenuity, the level ofdevelopment potential and the extent to which the activity has an
ongoing affect.
Each recipient of the CSR award is presented with a certificate
of merit and a cash prize by the president. The awards ceremony
was attended by the representatives of each company as well as
local staff, who gave a presentation of specific activity details.

Scope of Activities
Exceptional activities aimed at nurturing future
generations, promoting sport and culture, living side byside with local communities, protecting the environmentand contributing to society

The 1st CSR Awards
Social Contribution Award• Project to Nurture the Children of
Neighboring Communities
Furukawa Industrial S.A. Produtos Eletricos (FISA, Brazil)• Social Contributions Celebrating the Company’s Founding
Thai Furukawa Unicomm Engineering Co., Ltd. (TFU, Thailand)Social Contribution Encouragement Award• Welfare Activities
Asahi Electric Works Co., Ltd. (Japan)

Masao Yoshida, President Furukawa Electric Co., Ltd., and therepresentatives of award recipients
A meeting to report on the CSR awards

37 Furukawa Electric Group CSR Report 2010

Introducing Awards Winners
The Social Contribution Award
Project to Nurture the Children of
Neighboring Communities
Furukawa Industrial S.A. Produtos Eletricos (FISA, Brazil)
FISA is promoting a project that aims to help children consider
and prepare for their first employment. This project targets
children between the ages of 10 and 15 at local elementary andjunior high schools. The project strives not only to instill in each
student a greater sense of awareness toward working for a living
through handicraft workshops, in addition to actual production
methods and knowledge, while being designed to provide
students with an insight into developing human relationships, butalso delivers lectures on such topics as values and morals withconsiderable effort placed on motivating students toward selfdevelopment. Furthermore, the company provides scholarships
to students aged 15 and above seeking to attend industrial
high schools. Funding for scholarships is drawn from various
sources including proceeds from the recycling of wastepaper
and plastics (cups and packaging materials) produced by FISA.
In this manner, a complementary framework has been developed
to promote employee participation, with efforts to generateincreased motivation among staff toward volunteer activities.

FISA project team members together with students

Social Contribution Award

conjunction with local schools. As well as donating stationery
and other items to students who took part in the event,employees enjoyed a meal and sporting activities in a spirit ofcommunal interchange. TFU took steps to expand its social
contribution activities by involving local communities.

Key members in TFU’s activities

Social Contribution Encouragement Award
Welfare Activities
Asahi Electric Works Co., Ltd. (Japan)
Several facilities for the disabled are located in close proximity
to the Nagai Plant operated by Asahi Electric Works Co.,
Ltd. The Plant has conducted disaster prevention drills incollaboration with these facilities for around three decades.
One such facility called on the Plant to assist in providing
practical workplace training, helping the disabled to returnsmoothly to employment. As a result, the plant consistently
accepts around five individuals, who are provided with training
in the Plant’s sorting operations. In pursuing this activity,
many hurdles had to be overcome including participant safety
and the difficulties of communication. Nevertheless, withthe cooperation of all concerned, the Plant has successfully
implemented this community and welfare contribution activity
through to the present day. In recognition of these efforts,
the Plant received an award from Japan’s Minister of Health,Labour and Welfare in 2007.

Social Contributions Celebrating
the Company’s Founding
Thai Furukawa Unicomm Engineering Co., Ltd.
(TFU, Thailand)
TFU has for many years engaged in donation activities.
In addition to monetary support, the company also gifted
equipment to children’s facilities and public schools in fiscal
2008. In fiscal 2009, a large number of employees directly
participated in activities focusing on mountainside treeplanting endeavors. This particular activity was conducted in2007 certificate of commendation from
the Minister of Health, Labour and Welfare

Furukawa Electric Group CSR Report 201038

Initiatives
for Society

Relations with Society and Local Communities

Activities at Each Region
Nurturing Future Generations• Plant tours for NEETs and individuals engaged in related
support activities in the Nikko and Kanuma districts; NEET
employment support (Copper Foil Division)• Plant tours for local elementary school students; plant tours
and study meetings for junior high school students (Nikko)

Nature Observation Group (insect
collecting) (Mie)Living Side by Side with Local Communities• Each month employees cleanup rubbish and remove weeds
along the roadways surrounding the Hiratsuka Works as apart of the community beautification campaign organized by
the Kawara Group of the local industry association working
largely out of the Higashiyawata area
• Provide assistance to a Nikko Area NPO by requestingmaterial cleanup and other support; engage in donation andvolunteer activities as well as the supply of bazaar items(Copper Foil Division)

School support corporate advisor(Copper Foil Division)

Promotion of Sports and Culture

The clean mission illegal dumping
prevention campaign (Mie)The Amagasaki water sprinkling mission(Copper Tube Division)• Donations to the community-organized Star Festival andfireworks competition (Hiratsuka)• Held an event at the Yawata Athletic Park featuring booths
as well as horticultural, mimicking and character showsin collaboration with the 42 companies located along
the Yawata coastal region and members of the Yawata
Merchants’ Association as well as the town council (Chiba)• Provided use of the Copper Tube Division’s grounds for the
Amagasaki Business Friendly Softball Competition (Copper
Tube Division)

Participation in the Sagami River field survey, cleanup and grass planting
event (Hiratsuka)• One team participated in the
Kameyama City Relay Road
Race Competition (Mie)The soccer competition organizedby the Furukawa Electric Football
Club (Furukawa Battery)

Others• Received a certificate of appreciation in recognition of donations
to the Chiba Prefecture Environment Foundation (Chiba)• Received a certificate of appreciation from the National
Land Afforestation Promotion Organization in recognition ofactivities aimed at supporting the Green Fund (Nikko)• Participated in local community revitalization activities
organized by the Town Development Committee (Nikko)

Moji Seaside Park clean-up activities(Furukawa Logistics Corp., Kyushu
Branch)39 Furukawa Electric Group CSR Report 2010

Kameyama Eco Forest development
tour

Cooperating with blood donation
activities (Miharu Communications Inc.)

Study session with an NPO (Copper Foil
Division)

Support and Cooperation• Placing requests to companies that help the disabled
to gain greater independence for cleanup and weed
removal assistance within the company’s grounds fivetimes a year (Nikko)

Interaction with facilities for the disabled Interaction with schools (Copper Foil
(Copper Foil Division)
Division)Awards from Outside Sources
Receiving a Prime Minister Award for “Developmentof Erbium-Doped Optical Fiber Amplifier (EDFA) and
Its Sophistication” at the 7th Industry-AcademiaGovernment Collaboration Honor Program
Haruki Ogoshi, Manager, FITEL Products Department,
Telecommunications Company, The Furukawa ElectricCo., Ltd. received the Prime Minister Award with supreme
distinction at the 7th Industry-Academia-Government
Collaboration Honor Program. Mr. Ogoshi won the award
for “Development of Erbium-Doped Optical Fiber Amplifier(EDFA) and Its Sophistication” jointly with Masataka
Nakazawa, Professor, Research Institute for ElectricalCommunication, Tohoku University and Kazuo Hagimoto,Director, Network Innovation Laboratory of Nippon
Telegraph and Telephone Corporation.
The award presentation ceremony was performed together
with contents exhibition at the site of the 8th Conference for
the Promotion of Collaboration Among Business, Academia
and Government held on June 20 and 21, 2009, at the Kyoto
International ConferenceCenter.

Purpose of the AwardAn erbium-doped optical fiber amplifier (EDFA) can directly
amplify attenuated optical signals within an optical fiber,without the need to first convert it to an electrical signal as
has been conventionally done. For this reason, the EDFA is afundamental technology that is used to implement long-haul,
high-capacity, high-speed optical communication systems
easily and inexpensively.
As is known, the development and sophistication of
EDFAs and the EDFA-based optical communication systems
has created a new technology for optical communication
networks, which has been broadly adopted worldwide toserve as the driving force for widespread use of the Internet,
leading to the expansion of the optical industry. These
achievements have been highly evaluated, resulting in theaward at this time.
Furukawa Electric has long been involved in the practicaluse and productization of EDFAs, under the guidance ofProfessor Nakazawa and NTT Corporation. In particular,
we succeeded in developing a high-power semiconductor
pumping laser at 1.48 µm, thereby promoting practicalapplication of high-power EDFAs that use the developed
laser. The product has grown up to become a mainstay
product in our optical components business, and a numberof products are manufactured in the production bases inThailand and China, to be delivered to markets in Japan andworldwide. Hereafter we intend to enrich our EDFA-related
products to expand our business further.

Desktop-type erbium-doped optical fiber amplifier (EDFA)

Column“Small Acts of Volunteer Work” Launched by Furukawa Electric’ Secretaries’ Office“Can anything be done about the large volumes of leftover
calendars at the end of the year?” This topic of discussion
during workplace meetings led Furukawa Electric to the workof the Nippon Volunteer Network Active in Disaster (NVNAD).
NVNAD is engaged in disaster prevention and relief activities
and organizes the Calendar Market, a leftover day planner andcalendar charity bazaar. In January 2008, and by word-ofmouth among the secretaries of affiliated companies, a total of
968 items comprising 910 calendars and 58 day planners werecollected and sent. Formal requests were placed among theCompany’s head office, branches and works as well affiliatedcompanies, which led to the collection of 124 day planners
and 1,610 calendars for a total of 1,734 items, up 179% year

on year, in fiscal 2008. Around the same number was collected
and sent in fiscal 2009.
In addition, the Secretaries’ Office has located a volunteer
organization that collects old stamps. Calling these activities“small acts of volunteer work,” acollection box has been placed at
the secretaries’ counter. Efforts arebeing taken to expand volunteer
activities within the Group.

Cardboard boxes filled with dayplanners and calendars

Furukawa Electric Group CSR Report 201040

Third-Party Opinion

Executive Director
Center for Public Resources
Development
A specified nonprofit
organization

Sachiko Kishimoto
After gaining invaluable experience working for a private-sector
company, a research institute and studying abroad, participated in theestablishment of the Center for Public Resources Development (URL
http://www.public.or.jp), a nonprofit organization in 2000. Engages
in a wide range of activities including corporate sociality assessment
as a part of efforts to promote socially responsible investment (SRI);
social contribution activity project evaluation and consulting, and;NPO management support. A part-time instructor at the Graduate
School of Social Design Studies of Rikkyo University, the International
Graduate School of Social Sciences of Yokohama National University
and the Faculty of Law at Meiji Gakuin University.

Drawing on a review of the Group’s CSR Report 2010 and
an interview with Tetsuya Sato, Chief Social Responsibility
Officer, I would like to comment on Furukawa Electric’s CSR
and information disclosure activities.
In his opening remarks in this Report, the president
outlined efforts to contribute to society through the creationof new markets, businesses and technologies; adherence tocompliance; the strengthening of environmental initiatives,
and; the expansion of social contribution activities as
the Group’s priority objectives under the medium-term
management plan “New Frontier 2012” that commenced
in April 2010. In the context of the Group’s ongoingcommitment to fulfill its CSR, each contention is essential.
Needless to say, a key issue for management overthe foreseeable future is its ability to capture growing
infrastructure demand from newly emerging nations witha particular focus on the BRICs and ASEAN. Of equal
concern are considerations toward raising the ratio of
local production and procurement in the face of therecent sharp spiral in the value of the yen. Under thesecircumstances, and also in the context of its CSR initiatives,
the Furukawa Electric Group will necessarily confront a
broad spectrum of social and environmental issues in the
conduct of its business activities. As a result, the Group
must actively disclose its progress and performance in its
CSR Report. In my discussions with Mr. Sato, Chief Social
Responsibility Officer, I learned that the Group had alreadycommenced a wide range of global CSR initiatives withrespect to environmental, compliance and human resource
development across each of its operating fields. In addition
to ensuring compliance with local environmental rules andregulations, Furukawa Electric has published and distributed
among its employees English and Chinese language
editions of its compliance guidelines and is conducting

41 Furukawa Electric Group CSR Report 2010

training for local senior executives at the head office.
Looking ahead, I would like to see the Company clarify its
policies toward each initiative and to continue efforts inenhancing Group-wide awareness and understanding. At
the same time, I would also hope that Furukawa Electric willmore actively promote CSR among its overseas subsidiaries
by utilizing supply chain management that encompasses
green and CSR procurement; global human resource
development and; local community contribution activities.
Furthermore, in recognizing dirty mining as an industrywide problem, I would expect the Company to maintain full
disclosure and to outline details of the Group’s progress.
In the “Past and Future Environmental Businesses”
feature, I was impressed by the concise and easy-tounderstand manner in which the Company outlined its
efforts to meet those requirements imposed by society. I
am counting on the Furukawa Electric Group to contributeto society through the creation and development of a lowcarbon society, particularly in the three fields identified ofnext-generation vehicles, energy / smart grids and highdensity optical telecommunications. In addition, I have now
learned that Furukawa Electric Ecotec Co., Ltd., building on
its long-standing experience in the recycling of electric andtelecommunication cables, has achieved a recycling ratioof 100%. I have also come to better appreciate the efforts
made by the company to further enhance its materials
recycling ratio. In moving forward, I expect the Group to
bolster its endeavors in the collection of discarded cables
as well as the development of recycling systems.
A CSR report is among many things a medium forconveying information to external parties and an important
communication tool. Accordingly, presenting exceptions
to the scope of environmental data collected as well as
explanations for technical terms in an easy-to-understandmanner is essential. In the section of society-based
measures, Furukawa Electric mainly provides an explanationof its overall systems and measures implemented. In similar
fashion to the section dealing with the environment, I would
like to see the Company provide details and a comparative
analysis of targets and performance for each fiscal year
as well as an evaluation of the level of achievement. In
particular, I would ask the Company to go beyond a simple
explanation of the various systems employed to promote
work-life balance. This would included the disclosure ofhuman resource-related data such as overtime trends andthe number of paid leave days taken.

At the conclusion of the interview with Sachiko
Kishimoto. Tetsuya Sato, Chief Social Responsibility
Officer on the rightHistory of Furukawa Electric’s CSR Activities
1972
1974

Companywide Rules for Pollution Prevention formulated

Green Product Management Committee established2005

Environmental Control Department establishedCompliance Handbook Version I published

Energy Conservation Team established

Medium-Term Plan for Environment Preservation Activities 2009 formulated(2006–2009)1976

Central Quality Control Committee established

1989

Team for Reduction in Use of Specified CFCs established1993

Basic Framework for Protecting the Global Environment formulated(Furukawa Electric’s voluntary environmental preservation plan)

Compliance Handbook Version II published1994

Committee for Companywide Promotion of Energy Conservation establishedCSR Division established1996

Use of specified CFCs and trichloroethane discontinued

Chief Social Responsibility Officer (CSRO) appointed

1997

Team for Promotion of Reduction in Industrial Waste established

Safety, Environment and Quality Promotion Department
split into the Safety and Environment Promotion
Department and the Quality Promotion Department

2006

Risk Management Committee established
Report published under the revised title “Environmental and Social Report”

Furukawa Electric Basic Environmental Policy formulated
Central Committee for Environmental Management established

1998

2007

Committee for the Development of Environmentally Friendly Products
established

CSR and Risk Management Committee established
Furukawa Electric Group Action Guidelines partially revised
Report published under the revised title “CSR Report”

Acquisition of ISO 14001 certification commenced
Corporate philosophy and corporate message of the Furukawa Electric Group
formulated

Companywide Regulations for Pollution Prevention revised to create theCompanywide Regulations for Environmental Management

1999

Corporate Philosophy Handbook of the Furukawa Electric Group issued

Central Safety and Health Committee established

Furukawa Electric Basic Environmental Policy formulated

Liaison Meeting with Affiliated Companies established

2000

2001

Meeting of Environmental Personnel established

Furukawa Electric Group Basic CSR Policy formulated

Medium-Term Plan for Environmental Preservation Activities 2002 formulated(for 2001–2002)

Furukawa Electric Group Action Guidelines partially revised

Environmental accounting started

2002

2003

Furukawa Electric joined Team Minus 6%First Environmental Report published

2008

CSR Compliance Handbook Version III publishedGreen Procurement Preparation Committee established

Furukawa Electric Basic Policy on Pandemic Influenza Preparedness
formulated

Executive Officer System introduced

Compliance pledge introduced

Furukawa Electric Basic Environmental Policy revised

GHG Emissions Reduction Committee established

Medium-Term Plan for Environment Preservation Activities 2005 formulated(2003–2005)

e-Friendly mark system launched
Furukawa Electric Group Green Procurement Activity Guidelines establishedGreen Procurement Executive Committee established
Basic Policy on BCM (Business Continuity Management) formulated

Liaison Meeting of Consolidated Environmental Management established
Medium-Term Plan for Environment Preservation Activities 2005 revised

2009Compliance awareness survey covering all employees conductedCompliance Committee established

2004

A CSR award newly established as a part of the Outstanding AffiliatedCompany Awards

Furukawa Electric Group Action Guidelines formulated
Furukawa New Leaf established as a special subsidiary offering employment
to people with disabilities

Anti-Monopoly Act Manual revised2010

medium-term management plan formulated “New Frontier 2012”

Information available via our website
Our website features details of progress with our
CSR initiatives and PDF versions of this report andother previously published environmental reports. The
relevant materials can be accessed via the following
page on the Furukawa Electric website.

http://www.furukawa.co.jp/english/csr/

Furukawa Electric Group CSR Report 201042

Administration Department, CSR Division
2-3 Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8322, Japan
Tel: +81-3-3286-3044
Fax: +3-3286-3920
http://www.furukawa.co.jp/english/

Th is br oc h u r e is pr in te d on F SC -a c c r e dite d pa pe r with pu r e pla n t oil in k , wh ic h c on ta in s n o vola tile or ga n ic c ompou n ds,
a n d in a dr y pr in tin g pr oc e ss th a t u se s n o w a te r , th u s pr e c lu din g r e le a se of a n y h a r mfu l efflu e n ts.
All c ompa n y a n d pr odu c t n a me s fe a tu r e d in th is r e por t a r e tr a de ma r k s, r e giste r e d or oth e r wise , be lon gin g to th e r e le va n t c ompa n y.

Published in November 2010
IE-116 2B10 BC 50