Social Performance Report

Message
Summary of Business
Furukawa Electric’s Approach to Society
Medium-Term Plan for Environmental Preservation Activities 2005

Our Environmental ReportSocial Performance Report
Environmental Activities of Affiliated Companies
Progress in Environmental Management

Awareness Activities and Social Contribution Activities
Awareness Activities
In order to improve the environmental awarenessof the employees, we have put up an environmental campaign poster at the Facilities and otherplaces. The poster contains a slogan about environmental preservation activities, Basic
Environmental Policy and major activity targets
for the fiscal year. In June, which is designatedas the month of environmental preservation, thechairman of the Central Committee forEnvironment Management delivered a message to● Environmental Seminar for Executives
In order to further strengthen consciousness of managers towards the environmental activities, we held aseminar for managers of consolidated companies.
We invited university professors and managers of theenvironmental divisions of Japan’s leading companies,
who are experts in environmental issues, as speakers.
We held the first lecture titled "Outlook of Eco-econo-

all the employees including the significance of themonth of environmental preservation and encouragement of environment-related activities. In
addition, each works carries out activities such asdistribution of a leaflet informing about the environmental preservation month, installation ofnotice boards, calling for a catchphrase concerning the environment, implementation of the 5S
activities in and around the Facilities’ premises
together with nighttime patrols.
my" and "Initiatives of Companies on Pro-environmental Management" in September 2003. A total of 102
top officials, including the President, executive directors, and members of the Central Committee forEnvironmental Management and personnel in chargeof environmental management at Facilities of
Furukawa Electric, and presidents and other managers
of affiliated companies participated in the lecture.

Information Disclosure onWebsite
On our website, we disclose how Furukawa
Electric is promoting its environmental preservation initiatives, and present past environmental
reports in PDF format.
Furukawa Electric’s website

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

Social Contribution Activities
From fiscal 2002, Chiba Works actively participatesin "Eco-Fair Ichihara" held at Ichihara Citizen Halland engages in various interactions with local primary schools. The chiba Works also donated to"the Chiba Environment Regeneration Fund". The
other works also engage in cleaning activities near
the premises.

Organic fertilizer made from cafeteria garbage in Chiba
Works are used for flower beds in the primary school

Cleaning activities near Kambara Works

Cleaningactivities near
Shinagawa
Works
Exhibit at Eco-Fair Ichihara

We invite primary school students to visit the works during the month of environmental preservation
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Social Performance Report

Safety, Health and Human Resources
Furukawa Electric believes that its asset is "people". We are working on creating an environment where our people can work comfortably.

1. Organization for Safety and Health Activities
Five years have passed since the occurrence of agrave accident, which led us to establish the Safety,Environment and Health Promotion Dept that consists of experts in safety, health and environment,
under the direct control of the President. In this neworganization, the responsibility lies with the managers of business divisions, not with the managersof the works. Company-wide policies and measures are discussed at the Central Committee for
Safety and Health in which a Director in charge ofsafety and health takes office as the chairman andmanagers of business divisions as the members.
Safety and health activities are promoted in theorganizations where company-wide priority safetymeasures are proactively implemented.
In addition, we are promoting reform of entire
employees’ safety awareness program and elimination of unsafe activities by promoting safety andhealth education by experienced visiting lecturers to
all works, and by standardizing on-the-spot andon-the-material safety investigation of plants, safety
design and safety operation.

■ Number of accidents that led to cessation from work(case)14121086420

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2. Priority Safety Activities in Fiscal 2003
Items for Company-wide Priority Safety Activities
1. "Point and call’ safety check for dangerous work"
Definition of around 5000 items of required and prohibited practices regarding dangerous work and 100% implementation of "point and call" safety check before starting work.

2. "Acquisition of safety and health qualification and worker education"
Enriching the work supervisor’s duty through establishment of compliance management system (standardization) and management of system (daily management)

3. "Safety and health education for all workers"

Encouraging all employees to acquire systematic safety knowledge and eliminate unsafe work by providing one year
intensive safety and health education by safety and health instructors trained in the course.

● Company-wide Priority Safety Activities
Activities are carried out by focusing on the company-wide priority safety activities which aredecided according to Safety Control Guidelines
issued in fiscal 2003.

● Safety Education

education course included acquisition of specialized knowledge, sharp foresight to danger, andtraining method of subordinates
A safety check of plants was carried out at 8 works
over two days and training for the Plants design ofsafety and health was carried out at 4 works.

Training for safety and health instructors was carried out over three days for 112 employees. The● Development of standardization
We have been focusing on standardizing plant safety design in conformity with ISO12100 certification, and we are working on formulating safety
design standards for individual plants which corresponds to C- specifications in 2003, following theformulation of A- and B- specifications of plantsafety design in 2002.
We are proactively setting plant standards for safety, quality and productivity in unison.

● Comprehensive safety check to prevent grave industrial
accidents
Considering the frequent occurrence of a number ofgrave accidents at major domestic companies since
the summer of 2003, we are working hard to prevent
such occurrences through comprehensive inspections
on buildings and machinery equipment against fireand explosion.

3. Total Health Management from Both Mental and Physical Aspects● Advancing Mental Health Care
Furukawa Electric has been promoting company
wide mental health measures since 2002, in linewith "Guidelines for Mental Health in the Work
Place" by the Ministry of Health, Labor andWelfare (former Ministry of Labor).
We provide mental health education with thethemes and subjects decided every year in order tounderstand and deal with mental health appropriately. Following the guidelines, we provided "Careby Line" education for managers and supervisors
and "Self Care" education for general employees
in 2003, completing education for all employees.
In 2004, the managers and supervisors will confirm the contents of these educational programswith their subordinates, the general employees.

Unlike the education delivered by medical-related
lecturers, we aim at sharing knowledge regarding
mental health at worksites between seniors andjuniors through interaction.

● Lifestyle Advice
We started unified management of medical checkup information in 2002, which enables us to analyze company wide data on medical check-up andlifestyles according to Works, or the age groupand others from diversified viewpoints. In April
2004, with the help of medical institutes, we started Lifestyle Advice in order to make use of the data
to prevent lifestyle related diseases such as
ischemic heart disease or cerebral stroke.
Based on the graph in which employe’es data ofBMI, blood pressure and cholesterol, with the aver-age of company employees of the same generationor the average of data of 500,000 patients ofmedical institutes, we provide advice to prevent
lifestyle-associated diseases tailored to each individual’s condition. Based on population strategies,
we aim to motivate as many employees as possible, not just employees with high risks of diseases,
to change their lifestyles by advising them on alternative lifestyles.

Lifestyle Advice22Message
Summary of Business
Furukawa Electric’s Approach to Society
Medium-Term Plan for Environmental Preservation Activities 2005

Our Environmental ReportSocial Performance Report
Environmental Activities of Affiliated Companies
Progress in Environmental Management

4. Relations with Employees● Furukawa Electric’s View on the Relationship Between the Company and Its
Employees
Furukawa Electric is striving to build a sincere relationship with
its employees based on trust and responsibility. In addition,
through business and work, we aim to establish more constructive relations in which the company and employees
enhance abilities and values of each other.

● Placement, Evaluation and Job Conditions

Personnel Affairs
Investigation Chart

New University Graduate Recruits

Purpose/Content
We adopt flexible working hours system which enables employees to work efficiently according to the business demand.
We support employees to have flexible working hours that suit their lifestyles.
Employees are able to take three consecutive holidays once a year and five consecutive holidays every five years so that they can enjoy wellplanned holidays and refresh their mind and body.

Holiday Accumulation

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

Maternity/Paternity Leave

Any employee who has a child under one year of age can take a maternity/paternity leave for whatever duration they desire until their childis one year old.

Nursing Care Leave
Retirement Seminar

Follow-up Education Plan

Step-up Interview System

Rotation/Temporary Transfer to Domestic or Overseas Affiliates

Training for

Language EducationSeminarLong Distance Education Course

Incentives System for Acquisition of Qualification

Healthcare

Information Literacy Education Program

Business Promotion Course

Raw Material Trend Lecture

Safety and Health

Promotion for Production Efficiency

Quality Auditor Seminar
SQC Basic

Study Overseas and in Japan/Training Dispatch System/Participation in Conference/Publication of Papers

Section Managers

Training for
Basic Level
IntellectualProperties
Patent Search
Practical Training

Resource System
Interview System

Educational Courses forTraining for Intermediate

Refresh Holiday

Training for Top Level

Flexible Working Hours

Young Employee Work Shop

Various systems

Level Intellectual PropertiesNew Recruit
Group Education ProgramIntellectual Properties

Mid level employees
TrainingResearch Presentation● Support System Corresponding to Various Ways of Working
We respect our employee’s lifestyle and establish various support systems that enrich each individual’s personal life.

Training for
key employees

Mid-Level

We believe that the strength of a company is in the synergy ofabilities exercised by each employee at the work site and thateach employee’s ability is enhanced through everyday work,
pragmatically.
Furukawa Electric provides a place for individuals to growthrough work and provides opportunities to support a proactive approach for development of skills by motivated employees. These opportunities include training, long distance education and support for acquisition of qualifications.

Training formanagers

Collaboration with Human

Training

Department Support

Various Education Programs Hosted by Departments, Branches and Works● Education and Training Systems

Self-enlightenment

Practical Training byTraining by Position

Key Employees

We work to provide opportunities for placement and job
assignment emphasizing individual motivation and abilities
based on the concept of equal opportunity. As a part of themove, we implement various interview systems and provide
opportunities to reflect on one’s career goals.
For evaluation and incentives, we adopted an incentive program which realizes fair evaluation and treatment of employees according to their abilities and performance. We are also
working on training managers for performance evaluation
skills to improve the management of the system and win thetrust of employees.

In case an employee’s spouse, child or parents (including spouse’s parents) need nursing care, that employee is able to take nursing careleave for less than one year if certain conditions are fulfilled.
For union members who reach a certain age, labor and management jointly provide Retirement Seminars with the aim of enhancing life intheir current position and supporting life after retirement.

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Social Performance Report

Environmental Activities of the Works
The Works of Furukawa Electric engage in activities to harmonize with the local community as a good corporate citizen.

Nikko WorkssSeeking to Coexist with
Beautiful Nature▲Primary students often visit our works

Garbage collection ▲▲The Nikko Works is the mainstream works forFurukawa Electric’s wrought copper division. It
has also advanced in areas such as researchon power transmission cables and superconductivity wires, one of the most advanced technologies. Nikko Works has the largest copper
melting plant in Japan located inside Nikko
National Park surrounded by magnificent andbeautiful nature. Therefore, we take initiatives
to preserve the environment, reducing environmental impact as the most important objective.
In concrete terms, Nikko Works strives to succeed in environmental preservation throughproactive environmental activities for reductionof environmental risk, reduction of industrial
waste, conservation of energy and reduction ofhazardous chemical substances.

With regard to reduction of industrial waste,
we promoted recycling of garbage from dailylife. We carried out thorough education toencourage employees to patrol garbage stations in the works and re-sort the garbage. As
a result, we have almost halved the garbage tobe incinerated.
With regard to reducing hazardous chemical
substances, we promoted alternative substances to replace chlorine organic solvent
used for cleansing superconductive wires andattained total elimination of hazardous substances.
Meanwhile, in the Sheet Plant that is engaged
in aluminum production, energy needed foraluminum casting, is shifted from crude oil toLNG (liquid natural gas), improving energy
saving in the environment in terms of CO 2emission.
Electric power for the Nikko Works is suppliedby our 100% subsidiary, Furukawa Nikko

Looking forwards to reform environmental
awareness of each employee

Manager of Nikko Works

Toshihisa Tagashira24

Nikko Works acquired ISO14001 certification in 2002.
I honestly feel that our employees’ environmental
awareness is just about to grow from now on. Safety,
Health and Quality has become the theme taken for
granted and we have just started carrying out activities
including environmental issues.
The Nikko Works is very different from other works
because of its location, which is inside a national park.

Power Generation Inc., a hydropower stationthat uses abundant waterways in Nikko.
Nikko Works takes full advantage of clean
energy resources and seeks for co-existencewith rich nature, by always aiming to reduce
the environmental impact.

Nikko Works

Location：500 Kiyotaki Town, Nikko City, Tochigi
Floor Space：466,000.
Number of employees：1,405 (as of March 25, 2004)*Sheet Plant is a part of Nikko Works

We must strive to coordinate with the richness of natureand carry out our mission to pass it on to the next generation in its entirety. Awareness for environmental
preservation will not be acquired overnight but we,together with the local community, would like to protect
the precious nature through improved and coordinatedactivities. The cleaning activities that we started implementing 2 years ago inside our premises during themonth of environmental preservation have now extended to cleaning activities outside our premises. The
scope of these environmentally friendly activities is stillexpanding.

ごあいさつ環境報告
MessageOur Environmental
Report
古河電工の事業概要Social Performance
社会性報告
Summary of Business
Report
社会への姿勢Furukawa Electric’s Approach to Society
Environmental 関連会社の環境活動
Activities of Affiliated Companies
環境への歩みMedium-Term Plan for Environmental Preservation中期2005年
Activities 2005
Progress in Environmental
Management

Hiratsuka Works
Prominent Development ofEnvironmentally Friendly
Products and Technology
Hiratsuka Works, which acquired ISO14001
certification in 2000, has a wide range ofproduct line-ups such as networks, electronics,industrial equipment, electrical appliances andthree layered insulated electric wires that boast
the top global market share. The works largely features the development of environmentallyfriendly products in its Ecology and Energy
Laboratory, which opened in 2000. Many of
Furukawa Electric’s environmentally friendlyproducts and technologies were created here
and a number of projects are still ongoing.
As with other environmental preservation initiatives, all of the employees pursue zero-emissions activities, reduction of greenhouse gases▲Cleaning activities▲Hiratsuka City Environmental Fair (City Hall)and reduction of hazardous chemical substances. Particularly, in zero-emissions activities, we attained results significantly exceeding
the targets for fiscal 2003. Although we have
many different departments within the works,
the manager and the EMS secretariat visit
each department twice a year to monitor theprogress in achieving the environmental performance goals and provide follow-ups toresolve challenges. We are working together
to improve environmental preservation activities continuously by exchanging and sharing
information.
The works interacts with neighboring companies doing things like visiting the companies
that have already achieved zero-emissions targets to learn from their experiences. Based onsuch relations, we have launched "Clean-up
Hiratsuka city" activities. These are cleaning
activities for pedestrian walkways near theRealizing environmental preservation
rooted in local community

Manager of Hiratsuka Works

Toshio Kikuta

We have significantly reduced disposed waste for landfills in fiscal 2003 compared to fiscal 2002. This was
mainly achieved by recycling and converting disposed
plastics and others to fuel. We have set even higher
targets for fiscal 2004. According to the companies
that have achieved zero emission targets, thorough anddetailed sorting is the most effective measure for zeroemissions.

▲Furukawa boothplant, which are carried out with neighboring
companies once a month. We intend toexpand these activities to the whole community
by encouraging cooperation in the City
Government, Chamber of Commerce, andIndustry in working with us.

Hiratsuka Works

Location : 5-1-9 Yawata, Hiratsuka City, Kanagawa
Floor Area : 283,000ıfl
Number of employees : 968 (As of March 25, 2004)

Therefore, I, myself, visit the disposal collection sites
with the section manager of the workplace and emphasize on-site education, while checking each item for thepossibility of recycling. I am not only working withemployees on environmental preservation activities, butalso putting my qualifications in health engineering touse by committing myself to support improvement insafety and health, while scientifically evaluating thework environment.

25

Message
Summary of Business
Furukawa Electric’s Approach to Society
Medium-Term Plan for Environmental Preservation Activities 2005

Social Performance Report

Our Environmental ReportSocial Performance Report
Environmental Activities of Affiliated Companies
Progress in Environmental Management

Fukui Works
A Multi-dimensional Approach
to Environmental Preservation
Activities
Fukui Works, which is located in the Fukui
Coastal Industrial Region on the shore adjacent to scenic TOJINBO, provides aluminumproducts to many industrial areas, from thicksheets with the largest width in Japan of 4,000mm which are used for LNG tanks to thinsheets for beverage cans and foil materials.
The works is the largest aluminum rolling plant
to be located near a tourist area. Ever since1983, when we launched this works, we havebeen actively engaged in pollution prevention
activities in order to comply with pollution
thresholds regarding wastewater and gas
emissions which we concluded with the local
government.
We acquired ISO14001 certification in April
2002, and are continuously pursuing improvement of environmental preservation activities
based on an environmental management system.

We have greatly succeeded in recycling industrial waste in fiscal 2003: we have recycled
sewage discharged from the works to cement
materials, recycled disposed wooden pallets as
square timber inside the works and recycled
disposed plastics and paper waste and waste
fiber to RPF raw materials.
We are also proactively reducing packaging
materials. We are promoting the use of ironpallets as they can be used many times compared to wooden ones and have an advantage in terms of safety and health, so we areshifting from paper to iron pallets with thecooperation of customers.
As part of an awareness campaign for all
employees, we held various events during theenvironmental preservation month. For starters,
we made a leaflet with event informationencouraging active participation during themonth under the authority of the works manager, and distributed them to employees when
they came to the office.
Offering a catchphrase concerning the environment and having environmental quizes won
favorable reactions as employees could have

Before improvement
12Completion ofdemolition

Furukawa-Sky Aluminum Corp.
Manager of Fukui Works

Suketoki Ooya

26

▲Planting commemorative trees

fun learning about the environment.
The works had its 20th anniversary in 2003
and all employees planted 112 cherry saplingsin commemoration of the anniversary inNovember.
The Name of the employee who planted eachseedling is placed at its base. We hope that
all employees will nurture environmental
preservation activities as the trees grow.

Fukui Works

After improvement

Demolition work34

Square timbermade fromprocessed waste

Square timbermade from waste

Location：21-1 Kurome, Mikuni Town, Sakai County,
Fukui
Floor Space：850,000.
Number of employees：470 (As of March 25, 2004)

A company striving to leadthe local community

ment following an event that the prefecture owned soccer
ground next to our plant was selected as a training camp
for the Mexican team in the World Cup.

The Fukui Works is an aluminum rolling plant, engaged inmaterial production business, which has a large impact on
the environment. Therefore, since its foundation, we havebeen pursuing environmental preservation activities aiming
to harmonize the works with the surrounding environment,
which becomes more important when taking into account its
location which is adjacent to TOJINBO, representing
Echizen Coast State Park.

I view acquisition of ISO14001 certification as a ‘hop’,planting commemorative trees for the 20th anniversary ofcompany inauguration as a ‘step’, and hope for a ‘jump’ tobe more environmentally friendly works through environmental preservation activities that are actively pursued byall employees.

In fiscal 2002, when we acquired ISO14001 certification,
we further recognized the importance of environmental
preservation activities accompanied by sustainable improve-

Our efforts for preserving the environment draw attention in
the local community as it is a major works in the Fukui
Coastal Industrial Zone.
We intend to further pursue activities which can help us tolead the local community.