Furukawa Electric Group Sustainability Report 2018

Furukawa Electric Group
Sustainability Report2018
http://www.furukawa.co.jp/en/

Furukawa Electric Co., Ltd.

IE-133 3J9 TR 50

Editorial Policy
This report aims to inform all stakeholders about the philosophy and measures of Furukawa Electric Group in relation toits business activities, management, the environment and its relationship with society. Our goal is to report on our CSR
philosophy and efforts and gain the understanding of our stakeholders.

Scope of This Report
Period Covered
Fiscal 2017, from April 1, 2017 to March 31, 2018
(note) Includes selected information on past initiatives andactivities during fiscal 2018.

Organizations Covered
This report covers Furukawa Electric Co., Ltd. and groupcompanies in Japan and overseas. Where activities arelimited to specific regions or companies, this fact has
been clearly indicated in the reporting.

Publication Timeframe
Publication date: September 14, 2018
Planned publication of next edition: September 2019

Editing and PublicationC SR Department, Administration & CSR Division,
Furukawa Electric Co., Ltd.
M
 arunouchi Nakadori Bldg., 2-3, Marunouchi 2-chome,
Chiyoda-ku, Tokyo 100-8322, Japan

Accuracy of the Data Disclosed in This Report
In order to maintain accuracy in data disclosure, the information
provided in this report has been vetted by the divisions in chargeof the relevant information, the Investor & Public Relations
Department and the CSR Department, which is in charge ofediting this report. We have also provided a third-party opinion soas to offer the point of view of an outside expert.

Information Disclosure System
Furukawa Electric is fully aware that the timely and appropriate
disclosure of corporate information to investors is essential to ahealthy stock market. We take a serious approach to providing
timely and appropriate corporate information to investors,
including through the development of internal systems that allow
us to disclose rapid, accurate and fair corporate information in a
way that always keeps investors’ perspective in mind.
Moreover, in order to increase the understanding of all
stakeholders in respect to our company, we try to provide
information through a variety of media, including non-financial
information.

Non-financial- CSR website- Sustainability reports-C orporate governancereports

Financial- IR website- Financial statements-S ecurities reports/Quarterly
reports- Summary of accounts, etc.

Sustainability Reporthttps://www.furukawa.co.jp/en/csr/report/

2

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

History of Furukawa
Electric's CSR Activities
1972
1974

Companywide Rules for Pollution Prevention formulated
Environmental Control Department established

Energy Conservation Team established

1989
Team for Reduction in Use of Specified CFCs establishedAnti-Monopoly Act Guidelines issued
1992
1993	Basic Framework for Protecting the Global Environment formulated(Furukawa Electric's voluntary environmental preservation plan)

1996
1997
1998

Use of specified CFCs and trichloroethane discontinued
Team for Promotion of Reduction in Industrial Waste established
Furukawa Electric Basic Environmental Policy formulated

2000
2001

First Environmental Report published
Environmental accounting started

2002
2003

Anti-Monopoly Law manual published
Furukawa Survival Plan announced

2004

Company system and chief officer system introduced

Acquisition of ISO 14001 certification commenced	Companywide Regulations for Pollution Prevention revised to create
the Companywide Regulations for Environmental Management

Zero-emissions activities commenced

Executive Officer System introduced
Furukawa Electric Basic Environmental Policy revised

Furukawa Electric Group Action Guidelines formulated	Furukawa New Leaf established as a special subsidiary offering
employment to people with disabilities
2005	Internal reporting system introduced and internal and external reporting
desks establishedCompliance Handbook published2006

Medium-term management plan Innovation 09 announced

2007

CSR Division established	Report published under the revised title “Environmental and Social
Report”
Chief Social Responsibility Officer (CSRO) appointed
Report published under the revised title “CSR Report”
	Corporate philosophy and corporate message of the Furukawa
Electric Group formulated
2008	Furukawa Electric Basic Environmental Policy formulated	Furukawa Electric Group Basic Policy on Social Contribution
Activities formulated
2008

Furukawa Electric Basic Policy on Pandemic Influenza Preparedness formulated

Compliance pledge introduced
	e-Friendly mark (environmentally harmonious product) certification
system started
2009	Furukawa Electric Group Green Procurement Activity Guidelines
published	Basic Policy on BCM (Business Continuity Management) formulated
Compliance awareness survey covering all employees conducted	A CSR award newly established as a part of the Outstanding
Affiliated Company Awards
2010

Medium-term management plan, New Frontier 2012, formulated

CSR Deployment Guideline for Business Partners issued
	“Heart-to-heart communication between president and employees”
and “Compliance Roundtables” initiatedCompliance Months introduced
Compliance awareness surveys for affiliated companies conducted2011	Information security and personal information protection months
introduced

Furukawa Electric Group Basic Policy on CSR revised	¥250 million donated for reconstruction support for the region
affected by the Great East Japan Earthquake (Groupwide)	Furukawa Electric Group CSR Code of Conduct revised, andFurukawa Electric Group Action Guidelines accordingly eliminatedCompetition Laws Compliance Guide published2012	BCAO Award 2011, the “Award for Practical Excellence”, received fromthe Business Continuity Advancement Organization (BCAO)

Report name revised to Sustainability Report and issued	Furukawa Electric Group Anti-Bribery Statement and Bribery
Prevention Guide formulated
2013	Medium-term management plan, Furukawa G Plan 2015, announced	Transitioned from company system and chief officer system to asystem of strategic business units and head office divisions
Administration & CSR Division inaugurated
2014	One domestic SBU conducted EICC audit

Implementation of private sector training for public school teachers	Jointly conducted employee awareness surveys with Group
companies in Japan	Published 2nd edition of competition law compliance guide (Japanese,
English and Chinese common edition)
	Began compliance education for local employees of Chinese affiliatecompanies
2015	Visiting elementary school to give classes
2016	Medium-term management plan, Furukawa G Plan 2020, announced	Established contact for internal reporting system for overseas Group
companies	Jointly conducted employee awareness surveys with Group
companies in Japan2017
Established “Furukawa Electric CSIRT” as a measure against cyber

Furukawa Electric Group
Sustainability Report

2018
Contents
02
03

Editorial Policy
History of Furukawa Electric's CSR Activities / Contents

04

Group Profile

06
08

Top Message

Special Feature 1
Fun Lab creates innovation		
to realize a prosperous society		Broadcast the state-of -the-art technology torealize a sustainable society

10Special Feature 2		
Efforts to strengthen corporate
governance		Aiming for the sustainable growth and for the improvementof the corporate value over the medium to long term

12
14

Business Report

20Group Philosophy

Financial and Non-financial Highlights

		Telecommunication Solution / Energy Infrastructure /		 Automotive Products & Batteries /		 Electronics Component Material /		Functional Products

21

Stakeholder Relations

22

Governance

22
26
28
30

Corporate Governance
CSR Management
Risk Management
Compliance

32

Society

32
34
36
38
44

Relations with Our Customers
Relations with Business Partners
Relations with Shareholders
Relations with Employees
Relations with Communities

48

Environment

58
59

Third-Party Opinion
List of all applicable companies

		 Environmental Management / Material Flow /		Targets and Performance of Environmental
Conservation Activities /		 Environmentally Friendly Products /		Preventing Global Warming / Reducing Waste /		Water Resources / Chemical Substance Management /		Environmental Risk Management /		Biodiversity Conservation

security.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20183

Group Profile
Company Profile

Percentage of net sales by segment

Company Name

Furukawa Electric Co., Ltd.

Service and Developments, etc.

President

Keiichi Kobayashi

Founded

1884

Functional Products

Established

1896

Paid-in Capital¥69,395 million

14.8 %
153.1 Billion yen(As of March 31, 2018)

Net sales¥967,333 million (Consolidated)(Years ended March 31, 2018)	¥457,730 million

		(Non-Consolidated)

Number of Employees

51,925 (Consolidated)(As of March 31, 2018)

3,704 (Non-Consolidated)

Head OfficeM arunouchi Nakadori Bldg., 2-3,
Marunouchi 2-chome, Chiyodaku, Tokyo 100-8322, JapanTEL.

+81-3-3286-3001

5.1 %Communications Solutions

52.9 Billion yen

18.4 %
189.7 Billion yen
Energy Infrastructure

Total

967.3

(note)

Billion yen

Electronics
Component Material

9.9 %102.1 Billion yen
Automotive Products& Batteries

27.7 %
285.6 Billion yen

24.1 %
248.1 Billion yen(note) Figures excludes intersegment transactions

Percentage of overseas sales
Overseas (Total) 47.2%

China, Korea, Taiwan
12.3％
Asia, (South East Asia,
India etc.) 17.7％

Japan

52.8%

North andCentral America 8.8％
Others (Europe, Russia
Brazil etc.) 8.5％

Major Products and Services
Infrastructure

Functional Products
Optical fiber cables /Semiconductor optical devices /Metal communication /Fusion Splicer /Network equipment /CATV system / Radio products /Power transmission cable /Power transmission cable
accessories and installations,etc.

Electronics & Automotive Systems
Automotive components andwiring harness /Battery products /Copper and copper alloy
products (plates, strips, pipes,
rods, and wires) /Superconducting products /Special metal materials(Shapememory and superelastic alloys), etc.

4

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Cable conduits /Water-feeding pipe materials /Foam products /UV tapes for semiconductor
manufacturing / Heatsinks /Hard disc drive (HDD)
aluminum substrates /Electrodeposited copper foil,etc.

Service and Developments, etc.
Logistics /Information processing service /Software development /Service business (real-estateleasing, hydraulic power
generation and so on) / R&D,
etc.

Global Network

United Kingdom
Italy
Netherlands
Denmark

As of March 31, 2018

Germany
Hungary
RussiaSpain

China
Hong Kong
TaiwanIndonesia
Singapore
ThailandMore than

122

Philippines
Vietnam
Malaysia
Japan
India
Korea

Group
companies
in total

Europe10

MoroccoAsia

94

companies

North
Americacompanies

Africa6

1

companies

company

United States

Latin
America

11

companies

Argentina
Colombia
BrazilMexicoDomestic Locations (Furukawa Electric Co., Ltd.)As of March 31, 2018
Hokkaido Branch

Tohoku Branch
Nikko Works
Copper Foil Division

Okinawa
Sub Branch

Hokuriku
Sub Branch

Chugoku Branch

Kyushu Branch

Shikoku
Sub Branch

Head Office
Chiba Works,
Telecommunications & Energy Laboratories(Chiba, Hiratsuka)

Haneda Office
Chubu Branch
Mie Works
Kansai Branch
Copper Tube Division

Yokohama Works,
Advanced Technologies R&D Laboratories,
Laboratories for Fusion of Core Technologies
Hiratsuka Works
Automotive Products & Electronics Laboratories(Hiratsuka, Nikko, Shiga)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

5

Top Message

Contributing to the achievement ofa sustainable society,through the technological innovation
firmly looking ahead for the future.
President
Keiichi Kobayashi
Furukawa Electric Co., Ltd.

Photo Yu Kaida

Wha t about the progress o f the mid-term
management plan and the future outlook?
The Group launched the mid-term management
plan “Furukawa G Plan 2020” in Fiscal Year (FY) 2016
and was strengthening the focused areas of theInfrastructure Business (the telecommunication and theenergy) and the Automotive Business. In FY 2017, wewere able to achieve the financial target for FY 2020
ahead of the schedule in the Plan, then the mid-term
management plan was revised during the period andthe higher target was set. We will continue to keep
the following main policies “Strengthen and reformthe business”, “Expand sales in the global market”
and “Step up efforts to tap into new markets” and will
surely achieve the new targets by answering to various
technological innovation and business changes in theinfrastructure and automotive fields and the fusion areaof both fields. Human resources are the foundationof this. We will engage in a planned development ofcorporate manager candidate including overseas
subsidiaries. By nurturing human resources across theGroup, we will build a system in which the group willcontinue to grow globally.
New financial target in FY 2020
Conventionaltarget value

New target value

Consolidated operating
incomeOver 40billion yen

Over 55billion yen

Net income attributable tothe owners of the parent
company

Over 20billion yen

Over 30billion yen

Over 8%Over 10%ROE

6FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Technological innovation is progressing at an
unprecedented speed. How will you respond?
I f eel the swell of technologies such as AI(Artificial intelligence), 5G (Fifth generation mobile
communication system) and Automobile CASE
(Connected, Autonomous, Shared, Electric) that
substantially changed the industry until now. It seems
that business opportunity will rapidly spread in theareas of the smart communication infrastructure, thediversification of the energy infrastructure, the areaof the green automobiles and their fusion areas. For
instance, in the utilization of the renewable energy andfor the stabilization of the power system, the electricity
storage technology and the information communication
technology are required. Further, in order to automate
the automobile driving, the automobiles are developed
as information terminals by integrating the information
communication and automobiles, such examples are
actually created.
For 134 years, the Company has created products
and services to protect the health of the people andtheir social infrastructure and to support their growth,through our technologies “to transfer, to connect andto store” “energy, information and heat”. I am taking
pride and believe that an era has come when we cangreatly contribute to the future social changes andtechnological innovations by taking the most advantageof these technological capabilities and experience. The
Company has a lot of business opportunities.
However, in order to create the technologicalinnovation in the technologies fusion area, open

innovation is necessary instead of being stacked toour own technologies. For this purpose, Fun Lab has
been established in Yokohama R&D Laboratories
as a place to bring in new innovations through“Comprehension”, “Cooperation” and “Collaboration”
with our guests. Also, in collaboration with the
National Institute of Advanced Industrial Science andTechnology (AIST), “Carbon nanotube electric wiredevelopment” is conducted and since this February,a Social Cooperation Program “Creation of NextGeneration Signal and Power Transfer Technologies”
has been started at the University of Tokyo. Thus, weare engaged in activities to develop businesses withnew ideas by combining our new material technologies
with the academic knowledge of the university.

In recent years, Environment, Society andGovernance (ESG) management has been focused.
What do you think about this?
Our corporate philosophy is to “Drawing on morethan a century of expertise in the development andfabrication of advanced materials, we will contributeto the realization of a sustainable society throughcontinuous technological innovation”. We have aimed
to realize a rich and sustainable society by protecting
the environment through our business. We arepromoting ESG management in various ways for ourown sustainable growth for the future.
For instance, regarding the environment, we arecontributing to the prevention of global warming
through various activities, including reduction of CO2
emission by supplying lightweight products such as thealuminum wire harness for automobiles, the utilizationof the renewable energy from the hydro power
generation of Furukawa Nikko Power generation Inc.
of the group company, the energy saving based on
the energy balance and promoting the solar powerusage. Also, aiming to “Nurture human resources at
every level, so that we can become a more diverseand creative organization” as listed in the management
philosophy, we are developing an environment andcultural climate in which diverse human resources areactive by setting “Goals for promoting women activities”
and supporting women’s career development. As
for the corporate governance that supports thesevariety of activities, we regard it as the most importantmanagement foundation for the Company and we arestrongly promoting the activity to strengthen such as
the establishment of the basic policies at the corporate

governance, the annual evaluation and the disclosureof the results in order to improve the effectiveness of
the Board of Directors and increasing the number ofoutside directors.
In addition, although we have just started to makea study, we will proceed with our activities in fullconsideration of “Sustainable Development Goals(SDGs)” adopted by the United Nations in 2015,
and we are going to expand business opportunities
with a long-term business vision, in conjunction with
contributing to solving global environmental and social
problems. As for the Company, among the themes ofSDGs, we believe that we can contribute to such as“ensuring access to a sustainable and modern energy”,“building resilient infrastructure including informationand communication” and “ensuring sustainableproduction and consumption patterns”.
From now on, we clarify the relationship between
the business and products of the Group and ESG
and strengthen the information dissemination of ourconcrete activities. Furthermore, we intend to strive forthe improvement of the corporate value by integrating
ESG into our management strategy and throughdialogue with investors as well as various stakeholders.

Finally what is important to keep the company
sustainable?
Ichibei Furukawa, the founder of Furukawa Group,
said “Let employees be important, customers beimportant and the new technology be important.”
I believe “The three importance” is a fundamental
culture that still works today, in order to remain as asustainable company. While adhering to this spirit,
striving to ensure safety, quality and compliance, these
are absolute conditions for the Company to survive.
Then, making discussion with internal and external
people with an open mind by watching changes in thesociety from a broad perspective, creating products
and services that can solve customer’s and society’s
problems with a new technology, working “excited” asour own pleasure for customer’s pleasure, having pride
and responsibility for what we have sent out to theworld, then maintaining to be in such a virtuous cycle,
I believe that we can continue to be a sustainable
company and an indispensable part of the society.
Last but not least, I appreciate your continued
understanding and support for the Group.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20187

Special Feature

1

Fun Lab creates innovation
to realize a prosperous society
Broadcast the state-of -the-art
technology to realize
a sustainable society
http://www.furukawa.co.jp/funlab/en

In August 2016, an open laboratory named Fun Lab was established in
Yokohama Works as a “place” to promote open innovations and to create new
businesses by transmitting our technology. We are utilizing it as the platform
to further strengthen open innovations through a Collaboration with customers
and other companies, universities, public research institutions and others.

Assignment of the establishment in Yokohama is because it is Furukawa Electric
was founded and it is where the core of research and development resides.

Scenery from Takashimadai in around
Meiji 40.

The roots of Yokohama works is where the Yamada Cable Works was established at present
Kinkocho in 1884 (Meiji 17), therefore Yokohama is one of the founding places of the Company.
And, as a part of the events commemorating the 100th anniversary, the Central Laboratory which
was located in Oimachi, was relocated to Yokohama, and where Yokohama R&D Laboratory was
opened in 1987. Thus, Yokohama is also the central core of the technology for the Company. The
fact that Fun Lab is opened in this land is the message that the Company that has continued its
contribution to the society through the relentless technological innovation beyond the century, willfurther accelerate its technological innovation and will continuously contribute to the society.

Concept of Fun Lab

COMPREHENSIONCOOPERATIONCOLLABORATION“The place” was used for communication
with people outside the Company and forknowing each other, then facilitate open
innovation in the following 3 stages.

Recognize eachother’s strength.

Propose and sharenew senses of values
utilizing each other’s
strength.

The place to jointly
expands and realizes
the shared senses ofvalues.

Feature of Fun Lab❶ On both sides of walls following the Fun Lab entrance, the history❸ The Collabor a tionof the diversification of the technologies and the products are
exhibited as a genealogy of the technologies. With these
displays, we wish that visitors will deepen their understanding of
our technologies and have a sense of trust and security.
❷ Visitors can have a look at our technologies with the exhibits inarea is surrounded byfull-wall whiteboards,
and idea matchingboards. The area isdesigned to become
Collaboration area
a place where it iseasy to create new values through discussions withpeople outside the Company.
❹ The exhibition panels and the samples are displayedeach field of “superconductivity”, “nanotech” and “energy”,
centered in our core technologies in “metals”, “polymers”,“photonics” and “high frequency electronics”. Weight reduction
and fuel economy of automobiles, the latest information
communication network and the state-of-the-art technologies,
which are applicable to expansion of renewable energies andwhich contribute to the realization of a sustainable society, areexhibited.

8

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018individually on portable display fixtures. While discussingin the Collaboration area, necessary panels can be
moved and available to discuss while handling thesample.

Usage status of Fun Lab- Towards realization of the sustainable society “The OneF car”, which is a small EV implementing the technology and the products of theGroup Company, was exhibited. With this exhibition, the latest technology such as themillimeter wave radar that realizes automatic driving and the CNT electric wire leading toweight saving of automobiles, are made available to watch on a dynamic exhibition.
(2017/8/2 press release)
As of the end of March 2018 which is about one and half year since its establishment, 189
groups (more than 800 people) from inside and outside the Company and 58 groups fromthe Group companies have participated and Fun Lab has been in rising popularity. Amongthe visitors are Yokohama Small and Medium Enterprise Support Center, Yokohama City
Policy Bureau, local junior high school students, etc., and it is becoming recognized in thearea. Also, media company’s people visited and reported our activities in a news release.

Future Fun Lab
We are planning to expand thecontents of discussions with visitors byincreasing exhibit items and by carefully
improving the means of displays. We
will make further promotion for new
application methods of Fun Lab, suchas increasing foreign visitors, promotingof the use of the Group companies,
holding workshops, and further open
innovation will be pushed on.

Open the Social
Cooperation
Program at the
University of Tokyo

Appearance of the OneF car

The local junior high school students
conducted scientificexperiments
Students in Yokohama city Seya junior highschool visited Fun Lab for their company
experience on January 30 and 31, 2018.
They experimented the magnetic levitationfrom high-temperature superconductivity, alongwith acquiring their understanding about the
principle of the near future superconducting linear
Shinkansen. It was an opportunity for them tolearn that the superconducting technology
contributes to the realization of high energy
efficient social infrastructures such as theelectricity storage technology in the flywheel, thewind power generator.

On January 31, 2017, Professor Masayuki Nakao of the University of Tokyo Graduate
School of Engineering Department of Mechanical Engineering visited Fun Lab andlooked at our latest technology. Based on this initiative, and as a result of discussions,
it is possible to develop diverse and innovative technologies through the integration of
the unique technologies and know-how owned by the Company, the advanced
technologies and the broad range of discernment of the University of Tokyo. As a result
from February 2018 the Social Cooperation Program “Creation of the Next-Generation
Signal and Power Transfer Technologies” was opened at the University of Tokyo.

Innovative technology with the open innovation
In the Social Cooperation Program being opened this time, by integrating the material
research and the production technologies which have been developed over many years
in the Company with the advanced academic expertise possessed by the University ofTokyo Graduate School of Engineering the themes in the following areas are
implemented with the aim of improving quality and productivity, of creating new
business and new products and of developing advanced professional human resources.
 tilization of the lot related technologies leading to MONOZUKURI innovation.
1. U
The lot and AI are key wards in the research and development contributing quality
and productivity improvement.
2. N
 ew business and new products creation. (Products designing, Process designing,
Control technology)
New materials research and development such as the carbon nanotube electric
wire and the thermoelectric conversion element.

Left: P resident Gonokami (The University of Tokyo)
Right: P resident Kobayashi (Furukawa Electric)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20189

Special Feature

2

Efforts to strengthen corporate
governance
Aiming for the sustainable growth andfor the improvement of the corporate
value over the medium to long term

Responses and efforts up
till now

Major efforts towards the strengthening of the corporate governance

We have been working on strengthening the corporate
governance since 2008, including increasing the numberof the Outside Officers. In response to the establishmentof the “Corporate Governance Code” by Tokyo Stock
Exchange, Inc. in June 2015, we have implemented
various efforts such as the formulation of basic policies
on the corporate governance and starting among whichis effectiveness of the Board of Directors evaluation.
We will continue to work on the improvement of thecorporate governance by the positioning and thestrengthening of the corporate governance as an effort
to improve the corporate value being as one of ourimportant measures to strengthen the management.

2003

2008
2010

- The number of the Directors was reduced (The term of service of the Directors was
reduced from two years to one year.).
- The executive officers system was introduced.
-S tarted the effort to increase the number of the Outside Officers.
-E stablished the Compensation Committee.

2014 tructured the Audit & Supervisory Board members, to 3 people from in-house and-S
3 people from outside.

2015

 stablished the Independence Standards for the Outside Officers.
-E-E
 stablished the Nominating/Compensation Committee, former Compensation Committee.
-S tarted the evaluation of the effectiveness of the Board of Directors, and thesummary of the result was published. (annually conducted)
 stablished “Guidelines on Corporate Governance”.
-E

2016

2017

- A n Outside Director was appointed as the chairman of the Nominating/Compensation Committee.
- The Chairman became the Director without the representative right of the Board of
Directors.
-R evision of the officer’s compensation system.
- The number of the Outside Directors was changed to the current 5 members.

- As a process to evaluate the effectiveness of the Board of Directors, the Chairman
conducted the interviews.

Board meeting and related organizations
Our corporate governance structure consider that theeffectiveness of the audit on the execution of the duties by the
Directors is secured, based on the coordination with theaccounting auditors and the internal auditing department, while
maintaining the institutional independence of the Audit &Supervisory Board Members and of the Audit & Supervisory
Board from the Board of Directors. And we adopted the “Audit& Supervisory Board” type of the governance organization.

As our policy, the Outside Officers are expected to makesuggestions from various viewpoints and angles in thediscussion of the Board of Directors, and people with different
knowledge and backgrounds are selected.
With respect to the selection of the officers, the Board of
Directors makes a decision by consulting the Nominating/Compensation Committee which is constituted of the majority of themembers by the Outside Directors, and is based on their report.

Expertise of the Outside Officers
OutsideDirectors

Sumitaka Mr. Fujita has served for many years in a key positions on the management such as a Chef Financial
FujitaOfficer (CFO) and has a wealth of knowledge and experience on general business management
including financial accounting. He also has a high perception of the corporate governance.
Nobuyoshi
Soma

Mr. Soma has served for many years in key positions such as President and Chairman of the
manufacturer which operates business in adjacent areas to our Group, and he has a wealthof knowledge and experience on the corporate management in general.

Osamu
Tsukamoto

Mr. Tsukamoto has a long experience of involvement in the industrial policy at the Ministry of
Economy, Trade and Industry, and has a high perception on the technologies and thedevelopment of the new businesses.

TatsuoTeratani

Mr. Teratani has a high perception as an engineer based on long years of the experience inthe car electronics related design at a major automobile manufacturer.

Akira
Mr. Nakamoto has served for long years in key positions such as President and Chairman ofNakamoto a major precision equipment manufacturer, and has an extensive knowledge and experiencein the corporate management in general.

10

OutsideYuzuruAudit &
FujitaSupervisory
Board
TakashiMembers
Tsukamoto

Mr. Fujita has served for many years in key positions such as President and Chairman of alife insurance company and has an extensive knowledge and experience in overall corporate
management, including the financial accounting.

Kunihiko
Sakai

Mr. Sakai has a high perception in fields such as: the corporate governance, the legal risk
associated with management and its compliance to regulations, capitalizing his longexperience as a legal professional including its foreign one.

Board of Directors
Chairmanof the Board- A position of non-executive
without the representative right.
- Connect between the Outside Directors
and the Executive Directors.

Chairman
The Executive
Directors
6 members

Discussion
and decision
Supervising

President and other generalmanagers and division
managers of the major
businesses are concurrently
appointed as directors.

Audit &
Supervisory
Board Members
6 members

Mr. Tsukamoto has served for many years in key positions such as Chairman and a director
in charge of finance in a financial institution and has an extensive knowledge and experiencein overall corporate management, including financial accounting.

OutsideDirectors
5 members

3 of them are
independent directors.
Draw attention
Make opinions

All 3 members are
independent directors.

Outside Directors
In-house- Company manager - Government experience- Technical engineer - Financial, accounting expert- Legal affairs, Risk management expert- Governance expert - Global management experiencer

OutsideVariety of human resources with wealth of knowledge
and experiences such as shown above.
At June 22, 2018

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

■N
 ominating/Compensation

Outside Officers Meeting

Committee

We have established the Nominating/Compensation Committee with a majority of the members
from the Outside Directors, aiming to supplement
the supervisory function of the Board of Directors.
The Committee deliberates succession plan of theofficer and of the president, the officer compensation and others, aiming to ensure the objectivity
and transparency regarding these matters.
Recently, in 2016 the officer compensation
system was revised, and in 2017 the new President
was appointed based on the succession plan,these were resolved at the General Meeting of
Shareholders or the Board of Directors after the
deliberation at the Committee.

The Outside Officers meeting is regularly held for the purpose of
exchanging information, sharing recognition among the Outside Officers
based on the objective position, and for reporting their opinions sharedwith the Board of Directors if necessity.
The Committee consists of all Outside Directors and Audit &Supervisory Board Members, and the Secretary of the Outside Officers
is elected from the independent outside directors.
In FY2017, the meeting washeld three times with discussion
about the management issues
in general and the managementof the Board of Directors.

Nomination/Compensation Committee 6 directors

Chairman:
Outside Director

In-house Outside
At June 22, 2018

Effectiveness of the Board of Directors evaluation
Evaluation items on the effectivenessof the Board of Directors

In every year since the FY2015, we have been working on analyzing andevaluating the effectiveness of the Board of Directors for the purpose of
improving the function of the Board of Directors, through a continuous
process. Through the process, the necessary measures are taken in order toimprove or further strengthen the issues reported through the verification on
the suitability of the function as the Board of Directors.
In FY 2017, which was the third time, in addition to have a questionnaires
for all the members of the Board of Directors and the Audit & Supervisory
Board members, an individual interview was conducted by the Chairman, forthe purpose of a deeper understanding of the response to the questionnaires.
Thus more substantive analysis and evaluation were implemented.

-E ffectiveness of the Board of Directors.
 anagement of the Board of Directors.
-M-S ystem related to support and cooperation with the Outside
Officers.
 oles and expectation for the Audit & Supervisory Board Members.
-R-R elationship with the shareholders and other stakeholders.
 thers-O(The Board of Directors in general, individual and peer evaluation,
Responsibility of the Board of Directors)

FY 2017 Flow of the Board of Directors effectiveness evaluation.
Sept.
Questionnaire

Implementation of
the anonymousquestionnaire.

Oct.

Nov.

Individualquestionnaires by
the Chairperson
Newly implemented in
FY 2017, aiming at a
deeper understandingof the responses tothe questionnaire.

Nov. to Jan.
Multiple
Discussions
by the Board of
Directors

Outside officers
Meeting
Compilation of theopinions on the resultsof the questionnaire.

Confirmation of thestatus of ensuring theeffectiveness of theBoard of Directors.

Jan.

Next FY

Completion of
the analysis
and evaluation
Publish the analysis
and evaluation
results.

The Businessexecution and the
management of theBoard of Directors
based on the actions.

Various activities by the Outside Officers
Keynote lecture by an Outside Director.

Plant tour

In order to enhance information awareness to
the Outside Officers, opportunities are offered toparticipate in our research and development
presentations and plant tours.
In FY 2017, a tour in Hiratsuka Works washeld. Also, the Outside Officers attended theresearch and development presentations that areheld annually in each plant. In Yokohama Works,
an Outside Director presented a keynote lecture.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201811

Financial and Non-financial Highlights■ Net sales■ Operating income（Billions of yen）

（Billions of yen）
50

1,200
931.8
900

867.8

874.9

843.3

967.3

44.8
38.6

40
30

17.9

20
300
0

10
0
2014/3

2015/3

2016/32017/3

2018/3

2015/3

2016/32017/3

5

46.9

50
4.6

4
3

4.6

40

36.0

30

3.1

2.7

25.5

20

2.1

18.6

18.7

2015/3

2016/310

1

2014/3

2015/3

2016/32017/3

2018/30

2014/3■ Net income attributable to owners of the parent company■ Net income per common share（Billions of yen）

（Yen）
28.5

30

2017/3

20

0

17.6

405.05

300

7.4

5.6

2014/3100

2015/3

2016/3249.17200

10.0

2017/3

2018/3

2018/3

500
400

10

2018/3（Billions of yen）（％）

0

2014/3■ Ordinary income■ Operating income (Ratio to net sales)

2

27.1

25.5

600

79.44

104.18141.740
2014/3

2015/3

2016/32017/3

2018/3We changed the number of shares in a unit of the company’s ordinary
shares from the current 1,000 shares to 100 shares with an effective date ofOctober 1, 2016.
Assuming that similar stock consolidation took place, we have calculated
figures before the fiscal year ended March 2016.

■ Return on equity■ Cash flows（Billions of yen）

（％）

15

12.9

75
41.5

50
9.3

10

5

3.3

4.0

25

－25

0
2015/3

2016/3

18.0

0

5.5

－50
2014/318.9

2017/3

2018/3

－75

－21.4

－40.3

2014/341.6

43.5 40.4
1.9

－23.5

2015/3

2016/3

38.4
4.0

4.1

－36.4

－34.3

2017/3

2018/3

Cash flows from operating activities
Cash flows from investment activities
Free cash flows

12

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Number of Group employees by region (Consolidated)

As of March 31, 2018

(Number of employees)

35,00029,724

27,76025,000

North/SouthAmerica
10,11030,26029,66530,000Europe, other
618
Japan
10,93720,000Total

51,92515,00010,00010,937
10,46911,076
10,702

10,1109,172
10,899
7,179

5,000
0

2014 2015 2016 20172014 2015 2016 20172014 2015 2016 20172014 2015 2016 2017

Japan

Asia

North/SouthAmerica

Europe,other

Gender ratio of employees (Furukawa Electric)

Gender ratio of managers (Furukawa Electric)(Number of employees)(Number of managers)

5000

1000

Male
Female

4000

3000

2000

275

8%

3,154

1000

8%

92％

2015

3,350

91％

2016

828
700

91％

844

911

97％

2014

2015

Environmentally friendly products as a percentage of sales

905

97％

2
97％

2016

(No. registered)

（％）

120

60

100

42.6

80
60
40
20
0

91
24.5
25
2013

43.4 106

51.1

50.0
112

116

40

97
24.4

30.6

32.0

32.6

75

83

92

35
2014

2015

2016

50

2.10
1.68

2013 2014 2015 2016 20172013 2014 2015 2016 2017 (FY)

CO2 (Furukawa Electric & Group companies in Japan)
CO2 (Group companies overseas)
SF6 (Furukawa Electric)(104 tons-CO2e)

100

6.3

8.7

80
60

45.5

47.5

48.1

46.1

46.0

41.3

38.0

35.1

35.7

35.3

2013

2014

2015

2016

2017 (FY)

40

10

20

0

0

2017 (FY)

1.79
1.48
1.00
0.86

Climate change measures30
20

1.16 1.02

1.09

12017 (FY)

Cumulative number of registered items (Furukawa Electric)
Cumulative number of registered items (Consolidated)
Percentage of sales on a single-year basis (Furukawa Electric)
Percentage of sales on a single-year basis (Consolidated)

48.3

3.18
3

0

600

2017 (FY)

4
3%

3%

97％

Male
Female

31
3%

3%

800

2,976 3,338

92％

2014

9%

9%

Employee turnover rate by gender (Furukawa Electric)
5

26
23

22

(FY)

（％）

Male
Female

900

335

313

281

Asia
30,260493 520 555 618(note) For the overseas CO2 emission coefficient, the coefficient for each country
according to the IEA (International Energy Agency) is used for purchased
electricity, while the Japanese emission coefficient is used otherwise.
Emissions of greenhouse gases other than CO2 are converted to CO2
equivalent emissions using Global Warming Potential (GWP).

Total amount of waste matter generated

Energy consumption(1,000 kℓ)

Furukawa Electric & Group companies in Japan
Group companies overseas

500

80

400
300

Furukawa Electric & Group companies in Japan
Group companies overseas(1,000 tons)

60

205

213

223

220

221

38
23

18

18

34

34

34

33

30

2013

2014

2015

2016

2017 (FY)

40

17

200
100
0

213

193

188

192

198

2013

2014

2015

2016

2017 (FY)200(note) Valuable resources are included in total waste generated for Japan only.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201813

Business Report
Percentage of net sales by segment (As of March 2018)
Communications Solutions

Service and Developments, etc.

5.1 %

52.9 Billion yen

18.4 %

189.7 Billion yen
Functional Products

14.8 %
153.1 Billion yen

Energy Infrastructure

Total

9.9 %

967.3

102.1 Billion yen(note)

Billion yen

Electronics
Component Material

Automotive Products& Batteries

27.7 %
285.6 Billion yen

24.1 %

248.1 Billion yen(note) Figures excludes intersegment transactions■ Net sales
Infrastructure
Communications Solutions
Energy Infrastructure
Electronics & Automotive Systems
Automotive Products & Batteries
Electronics Component Material
Functional Products
Service and Developments, etc.
Eliminations
Total(Billion yen)

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

―
―
―
―
―
―
―
―
―
931.8

―
―
―
―
―
―
―
―
―
867.8

252.7
159.1
93.5
491.1
234.1
257.0
136.3
51.5

263.8
168.5
95.3
455.5
223.4
232.1
131.5
49.7

291.8
189.7
102.1
533.8
248.1
285.6
153.1
52.9

－ 56.7874.9－ 57.0843.3－ 64.3967.3

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

―
―
―
―
―
―
―
―
―

―
―
―
―
―
―
―
―
―

7.7
8.0

12.8
14.1
－ 1.4
18.2
13.2
5.0
14.0

17.9

－ 0.3
10.5
8.0
2.4
8.5
0.4
0.1
27.1

14.3
14.2
0.1
12.8
10.1
2.7
11.7
－ 0.1
－0
38.6

－ 0.2
0.1
44.8

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

―
―
―
―
―
―
―
―
―
2.7%

―
―
―
―
―
―
―
―
―
2.1%

3.1%
5.0%

5.4%
8.4%
0.2%
2.8%
4.5%
1.2%
8.9%

4.4%
7.4%
－ 1.3%
3.4%
5.3%
1.8%
9.1%

－ 0.3%
0.1%
4.6%－ 0.4%－ 0.1%
4.6%■ Operating income
Infrastructure
Communications Solutions
Energy Infrastructure
Electronics & Automotive Systems
Automotive Products & Batteries
Electronics Component Material
Functional Products
Service and Developments, etc.
Eliminations
Total(Billion yen)

25.5

■ Operating income (Ratio to net sales)
Infrastructure
Communications Solutions
Energy Infrastructure
Electronics & Automotive Systems
Automotive Products & Batteries
Electronics Component Material
Functional Products
Service and Developments, etc.
Eliminations
Total

14

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

－ 0.3%
2.1%
3.4%
1.0%
6.2%
0.8%
－ 0.1%
3.1%

Business Report

Communications Solutions
Optical Fiber and Cable Products, FITEL Products
Broadband Solutions

Business
divisions■ Fiscal 2017 Settlement of Accounts
Consolidated net sales
189.7 billion yen (12.6% up year-on-year)

Fiscal 2017 Main Topics
Dec.

▶F urukawa Electric Group is opening a
new manufacturing facility in Mexico
focused on the production of solutions forthe communications market-C lose to the United States, the plant willallow Furukawa Electric Group to rapidly
and flexibly meet its clients’ needs –

Jan.

▶C
 ommScope and OFS Extend Long-Term
Fiber Partnership-N ew eight-year supply commitment toaddress growing demand for bandwidth –

Feb.

▶F
 urukawa Electric Receives “Okochi
Memorial Production Prize”
 rize received in recognition of developing-P
variable wavelength laser modules forhigh-capacity digital coherent opticaltelecommunications systems –Consolidated operating income
14.1 billion yen (0.5% down year-on-year)

In Communications Solutions business, althoughsales of digital coherent-related products havefallen by continuing inventory adjustments in the
Chinese market, demand for optical fiber and cablehas been strong globally, and network systemsrelated construction work and sales of equipment
have trended well in Japan.
In addition, we also decided on investment toincrease production in September last year tostrengthen our optical fiber manufacturing capacity
to about double the level of fiscal year 2016 by
fiscal year 2019. We will build a production andsupply framework able to cope with globally
increasing demand and promote sales expansion in
the global market.

Net sales(Billions of yen)(Billions of yen)

200
200
150
150

159.1
159.1

168.5
168.5

189.7
189.7

100
100
50
50
0
0

2015
2015

2016
2016

2017
2017

14.2
14.2

14.1
14.1

2016
2016

2017
2017

(FY)
(FY)

Operating income(Billions of yen)(Billions of yen)

15
15
10
10

8.0
8.0

5
5
0
0

2015
2015

(FY)
(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201815

Energy Infrastructure
Business
divisionsPower Cable, Industrial Cable & Power Cable Accessories■ Fiscal 2017 Settlement of Accounts
Consolidated net sales
102.1 billion yen (7.2% up year-on-year)

Fiscal 2017 Main Topics
Apr.

▶H aneda Office was opened

Consolidated operating income－1.4 billion yen (¥1.5 billion deterioration year-on-year)

In Energy Infrastructure business, although we hadsome large projects in electrical construction workin Japan, an increase in our product composition
ratio for low-profit export business related tounderground power cable, etc., put pressure on
profit overall.
By strengthening our construction and installation
capacity, including the securement of humanresources, and conducting production capability
enhancement through technical development andfacility investment, we will accumulate orders forultra-high-voltage cable and submarine cableprojects in Asian markets including Japan.

Taking advantage of the highest experience in the
new energy projects, we will continue our contribution to the decarbonization of the society.

Tempoku Wind Farm

Setana Offshore Wind Farm
(first in Japan)
Rokkasho solar park
First renewable energy projectin Japan to use 154kV

Net sales

Higashiyurihara Wind Farm(Billions of yen)(Billions of yen)

120
120
100
100
80
80
60
60
40
40
20
20
0
0

102.1
102.1

93.5
93.5

95.3
95.3

2015
2015

2016
2016

2017
2017

0.1
0.1

-1.4
-1.4

Kitakyushu fixed-bottom
offshore wind power
demonstration project

(FY)
(FY)

Ohorayama Wind Farm

Operating income(Billions of yen)(Billions of yen)

1
1

0.5
0.5
0
0

-0.3
-0.3

-0.5
-0.5
-1
-1
-1.5
-1.5

16

Fukushima floating offshore wind farmdemonstration research
2015
2015

2016
2016

2017
2017

(FY)
(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Business Report

Automotive Products & Batteries
Business
divisions

Automotive Products & Batteries■ Fiscal 2017 Settlement of Accounts
Consolidated net sales
248.1 billion yen (11.1% up year-on-year)

Fiscal 2017 Main Topics
Aug.

Consolidated operating income
13.2 billion yen (31.2% up year-on-year)

In Automobile Parts business, total sales haveincreased by recovering from the stagnation ofdomestic demand due to the impact of the
Kumamoto Earthquake of April 2016, etc., andsales of wire harnesses for new vehicle models
increased.
We will advance the switch to production in optimal
locations such as using production bases inSoutheast Asia, aim to improve cost competitiveness, and strengthen our aluminum wire harness
production framework to respond to needs forlighter products.

▶S election as an Official Team Sponsor of
the World’s Most Prestigious Motorcycle
Road Racing Championship-C ontributing to the growth of motor sports –Movistar Yamaha MotoGP team

Jan.

▶F
 urukawa Automotive Systems to Being
Selling Automatic Cutting and Crimping
Equipment to Spread “α Terminal Series”
Worldwide-N ew product set to accelerate conversion toaluminum harnesses and help to makegreener cars –Net sales(Billions of yen)(Billions of yen)

250
250

234.1
234.1

223.4
223.4

248.1
248.1

Automatic cutting
and crimping
equipment

200
200

α Terminal Series

150
150
100
100
50
50
0
0

Male

2015
2015

2016
2016

2017
2017

(FY)
(FY)

(Billions of yen)(Billions of yen)

15
15
10
10

Crimp

13.2
13.2
8.0
8.0

10.1
10.1

5
5
0
0

α Terminal
High-speed welding via
fiber laser welding
machineOperating income

Female

2015
2015

2016
2016

2017
2017

(FY)
(FY)

From now on, in addition to expanding the target ofthe α terminal series to two-wheel vehicle from fourwheel vehicles, the sales of this automatic cutting
crimping machine will be sequentially started in Asia,
Europe and United States. By encouraging theworldwide distribution of the “α terminal series”, wewill further accelerate the conversion from the copper
wire harnesses to the aluminum wire harnesses andcontribute to the greening of automobiles.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201817

Electronics Component Material
Electric Conductor, Magnet Wire,
Copper & High Performance Material Products, Copper Tube

Business
divisions■ Fiscal 2017 Settlement of Accounts
Consolidated net sales
285.6 billion yen (23.1% up year-on-year)

Fiscal 2017 Main Topics
Apr.

▶F urukawa Electric Develops Oxygen-free
Copper Strips with Superior Heatresisting Properties
 orld-leading heat-resisting properties-W
realized through proprietary structure control –

Dec.

▶O
 pening ceremony of the Essex Furukawa
Magnet Wire Europe facility in Bad
Arolsen, Germany

Consolidated operating income
5.0 billion yen (83.2% up year-on-year)

In copper strip and high-performance material
business, we improved operating profit margin by
optimizing the product mix and captured strong
demand with increased production based on
productivity improvements. Because of that andincreased sales of magnet wire business forautomobiles and smartphones, Electronic component
materials business results trended well.
In magnet wire business, we will further promote
cooperation with the Superior Essex Inc. (US) Group,
which we have engaged in for some time, and capture
high function magnet wire demand for automobile
electrification mainly in European market.

Bad Arolsen, Germany – November 8, 2017

Net sales

Mar.

(Billions of yen)

300

(Billions of yen)

300

257.0
257.0

200

285.6
232.1

285.6

▶H
 igh-voltage Rectangular Magnet Wire
Takes First Place in the Innovation Award-C
 ontributing to the Electrification of European
Automobiles –

232.1

200
100
100
0
0

2015
2015

2016
2016

2017

(FY)

5.0

5
4

HVWW ®

2.4
2.4

2.7
2.7

2
1
1
0
0

18

Extrudedplastic layer

Rectangular conductor

5.0

5(Billions of yen)

3
2

(FY)

Enamel layer

Operatingincome(Billions of yen)

4
3

2017

2015

2016

2017

(FY)

2015

2016

2017

(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Business Report

Functional Products
AT & Functional Plastics, Thermal Management Solution & Products,
Memory Disk, Copper Foil

Business
divisions■ Fiscal 2017 Settlement of Accounts
Consolidated net sales
153.1 billion yen (16.4% up year-on-year)

Fiscal 2017 Main Topics
May▶F urukawa Electric Launches “EFLEX SquareDuct” Underground Cable-protecting Pipe
to Help Eliminate Power Poles- The perfect pipe for compact multi-strip
piping helps to reduce costs –

Nov.

▶F
 urukawa Electric Develops “TAIKO
ACE® ” a Non-film Type Foam Material
with Improved Weather Resistance elps to control condensation from metallic-Hroofs on carports, garages, and more –Consolidated operating income
14.0 billion yen (19.8% up year-on-year)

In copper foil business, in addition to capturingstrong demand by improving productivity,
operating profit margin improved due to an
optimization of product mix. We will advance theintegrated management of our manufacturing andsales bases in Japan and Taiwan, implement
optimal function sharing, and allocate
management resources to high performance foils
to build a system that can ensure profits stably.
In thermal and electronic parts business, sales ofheat dissipation products for data centers trended
firmly. Furthermore, in AT / functional plastics
business, we expanded sales of products that
contribute to the conversion of power poles andpower cables to underground facilities such as
underground cable-protecting pipes, etc.

Weather
resistance
improvement

Net sales

Effective cut off the ultraviolet
rays invading into the foamadhesive layer.

(Billions of yen)

200

Ultraviolet ray(Billions of yen)

200
150
150
100

Physical reflection

153.1

136.3

131.5

136.3

131.5

153.1
Convert to heat energy

100
50
50
0
0

2015

2016

2017

(FY)

2015

2016

2017

(FY)

11.7

14.0

Operatingincome(Billions of yen)
14.0

15

(Billions of yen)

15
10

8.5

10

8.5

Foam layer
Adhesive
layer
Steel plate

UV accelerated test
Crack

11.7

5
5
0
0

2015

2016

2017

(FY)

2015

2016

2017

(FY)

Conventional Product

TAIKO ACEFURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201819

Group Philosophy
Since our founding in 1884, we have worked to create the technologies and products that society
requires. We consider it our mission to contribute to the realization of a sustainable society. We
promote ESG management, and steadily advance our efforts closely in line with SDGs (Sustainable
Development Goals), thus continuously responding to the expectations and the trust of the society.

CORPORATEPHILOSOPHY

Drawing on more than a century of expertise in the development andfabrication of advanced materials, we will contribute to the realizationof a sustainable society through continuous technological innovation.

MANAGEMENTPHILOSOPHY

With an eye to the future, the Furukawa Electric Group management team pledges 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 of endeavor.
- Nurture human resources at every level, so that we can become a more diverse andcreative organization.

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 theoffice, 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, sothat we can share ideals and help each other grow.

ESG management

SDGs (Sustainable Development Goals)

Based on the robust Corporate Governance and byThis is the social agenda adopted by the United

exercising the management in consideration of the

Nations in 2015 consisting of 17 Goals and 169 targets,

Environment and the Society, we will get rid of risks andand aiming to resolve them by 2030 as an international

expand the business opportunities, therefore achieving acommon goal.

sustainable growth.

By configuring business goals conscious of SDGs, we

Achievement of the sustainable growthRiskelimination

Expansion of
the business
opportunities

Environment (E)Society (S)- CO2 emission reductionin the business activities- Avoid environmental pollution- Expansion of the environmental
business, etc.

- Promoting diversity- Work style reform- Contribution to the local
community, etc.

Corporate governance (G)- Expansion of the outside directors- Evaluation on the effectiveness of
the Board of Directors- Establishment of the Nominating/Compensation Committee, etc.

20

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

will establish a sustainable and inclusive business model.

Stakeholder Relations

Environment

Local
communities

Furukawa Electric Group works on resolving the social agenda
such as SDGs while monitoring the business activities

Customers

Furukawa
ElectricGroup
Employees

appropriately across the various stakeholders with different

Suppliers

Shareholders

positions, and fulfill our responsibilities as a company.
Main
Stakeholders

Environment

Means of Communication

Main Responsibilities-P articipation in the environment related projects
and cooperation on their investigations-C ooperation on environmental efforts by customers-E nvironment conservation activities through thevalue chain-P articipation in environmental activities by NGO
and NPO-P
 articipation in the industry associations related
to our business limate change measures-C-P romote energy conservation
 rotect biodiversity-P- Sustainable
resource recycling.
-M anage chemical substances-D ialogue through regular business ebsite, Sustainability Reports-W ialogue at technology exhibitions, trade shows-D-M aintain and improve the quality of
products, operations and services-O ffer products and services that are useful to society rovide solutions to issues confronting-P
customers through a broad array oftechnologies and know-how-P artner Meetings
 ialogue through regular business-D SR surveys-C- Feedback
interviews on results of partnerevaluations

 stablish a sound relationship founded on-Efair trading in compliance with laws andregulations-R ealize CSR throughout the supply
chain by implementing CSR Deployment
Guideline for Business Partners-S ustainability Reportsmeetings of shareholders, shareholder reports- General anagement briefings and results presentations-M- I nvestor visits hareholder plant tours-S-P rovide appropriate returns-E nsure timely and appropriate disclosure-E nhance corporate value- I nternal newsletter, intranet
 anagement briefings-M espect human rights-R ultivate and appropriately value and-Creward human resources romote health, including occupational-P
health and safety, as well as mental health upport diverse workstyles and work/life balance-S-F actory tours- Cooperatewith and sponsor sports andtraditional events
 upport the activities of and collaborate with local NPOs
-S
-P reserve the Satoyama Environment-N urture future generation-P romote sporting and cultural activities ive in harmony with the natural-Lenvironment and local communities

Customers

Suppliers

Shareholders

Employees

Local
communities

Related SDGs

Examples on SDGs related activities.
Environment conservation
Environmentally
Friendly Products
e-Friendly
Accreditation System

Products
Optical Fiber

Aluminum
Harness for
Automobiles

The e-friendly markWe are promoting the environmental conservation
activities as the environmentally conscious
products, which have been improved in theenvironmental contexts over the conventional
products at each stage of purchasing,
manufacturing, usage, transportation and disposalof the raw materials and components.

It contributes to the large
improvement of access to
information communication.

It contributes to the
reduction of CO2 emissions
by the weight reduction of
automobiles.

Human Resources
Promoting diversity

We are w orking on
various measures suchas the organizational
mind fostering,
women's careerdevelopment support, autonomous work life
management, etc. in order to establish working
environments where diverse human resource
can participate actively. In March 2018, wewere selected as a "NADESHIKO BRAND" in thenonferrous metal industry, as a publicly listedcompany outstanding in promoting women's
challenging attitude.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201821

GovernanceCorporate Governance
Basic Views on Corporate Governance and Guideline on Corporate Governance
Basic Views on Corporate Governance
Based on the “Furukawa Electric Group Corporate Philosophy”, Furukawa Electric Co., Ltd. and the Furukawa ElectricGroup secure the transparency and fairness and strive to enhance its performance by promptly responding to changes inthe business environment and the market through efficient management based on prompt decision making. At the sametime, we ensure sound management by developing and establishing an internal control system and applying it effectively.
We uphold the basic policy of seeking to expand and develop our operations on a sustainable basis and to raise
corporate value through these efforts. In accordance with the following views, we seek to strengthen and enhance ourcorporate governance.

i. We secure the rights and equal treatment of shareholders.
ii.	We consider interests of stakeholders including shareholders, and cooperate appropriately with
them.
iii. We ensure appropriate information disclosure and transparency.
iv.	Given its fiduciary responsibility and accountability to shareholders, the board regards the rolesof independent directors important and carries out effective oversight of operation from objective
standpoint.
v.	We engage in constructive dialogue with shareholders who have investment policies in accordancewith interests of mid- to long-term shareholders.

Guideline on Corporate Governance

Overview of Corporate Governance System

Based on “Basic Views on Corporate Governance”, we

We adopt the “Audit & Supervisory Board” type of

adopted “Guidelines on Corporate Governance” as agovernance organization under the Japanese Companies

policy for enhancing our corporate governance.

Act taking account of the importance of maintaining theindependence of the statutory audit function. And wehave a “Nominating/Compensation Committee”, majority
members of which are outside directors to complement
oversight function of the board.

22

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

GovernanceCorporate governance organization chart
Shareholders’ Meeting

Monitoring and Supervising

Appoints

Audits account

Board of Directors

Submits
proposals
andreports

Nominating /Compensation
Committee

CSR and Risk
Management Committee

Accounting
Auditors

Submits reports

12 Directors(5 outside directors including 3 independent directors)

Consults andCommits

Appoints

Appoints

Audit & Supervisory
Board

Submits reports,
attends meetings
and audits

6 Audit & Supervisory Collaboration
Board Members
between audits(3 members are outside
and independent)

・Screens reports
relating toaccounting
・Examines
status ofoperations andassets・Screens reports relating
to business・Examines status ofoperations and assets

・Decision of critical matter
relating to business operation
・Supervises business operation

Monitors

Business Operation

Appoints

Chairman, PresidentInternal Audits(Auditing
Department)

Submits reports

Corporate Divisions
Direction

Management
Committee

・Global Management Div.
・Strategy Div.
・Administration & CSR Div.

・Finance & Procurement Div.
・Research & Development Div.
・MONOZUKURI Innovation Div.

Provides support and guidance

Operations
Communications Solutions Div.
・Optical Fiber & Cable
Products Div.
・FITEL Products Div.
・Broadband Solutions Business Div.
Electronics & Automotive
Systems Div.
・Automotive Products Div.
・Electric Conductor Div.
・Magnet Wire Div.
・Copper & High Performance
Material Products Div.
・Copper Tube Div.

Energy Infrastructure Div.
・Power Cable Div.
・Industrial Cable & Power
Cable Accessories Div.

Global Marketing
Sales Div.

Functional Component Business・Thermal Management Solution &Products Div.
・Copper Foil Div.
・AT & Functional Plastics Div.
・Memory Disk Div.

Subsidiaries andaffiliated companies

As of June 22, 2018

Oversight and Supervising● Board of Directors
Given its fiduciary responsibility and accountability toshareholders, the board is responsible for promoting

board oversights and determines the matters listed
below:
1.

Determination of corporate governance-related matters;

2.	Establishment and amendment of businesssustainable corporate growth and the increase of

strategies and oversight of execution of suchcorporate value over the mid- to long-term andstrategies and plans by management;enhancing earnings capability and capital efficiency. The

3.	Setting capital allocation policy;
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201823

4.	Appointment and dismissal of executives including
representative director and corporate vicepolicy, plan and result of auditing to the board regularly.
Full-time auditors attend the meetings such aspresident, and determination of the compensation

Management Committee which decides major businessof them (including delegating these to Nominating/matters, and they report information obtained from theseCompensation Committee);audit activities to the non-Full-time and outside auditors.

5.	Establishment of an internal control system relating

We strengthen our audit function by appointing an

to compliance and financial reporting and risk

assistant staff to the auditors who is dependent ofmanagement systems, and oversight of them;

management.

6.

Decision on important business matters;

7.	Others prescribed by the applicable laws andAt present, the Audit & Supervisory Board consists of 6
members (3 members are outside and independent).

regulations etc.
At present, the board consists of 12 directors with 5
outside directors including 3 independent directors.
Outside directors have rich management experiencesin financial institutions, trading companies or
manufacturing companies, or expertise in the field of legal

Business Operation
President is responsible for management of our wholebusiness operation as a chief executive under the board’s
oversight.
Our business consists of 14 business divisions, andor industrial governmental policy etc. The board respects

General Managers of each division are responsible for

their views and opinions based on their variety ofleading each business operation including subsidiaries

experiences in making its decision.

and affiliated companies management.

We also evaluate the effectiveness of our meetings ofWe also appoint General Managers of Communications

the Board of Directors on an annual basis, and release

Solutions Division, Energy Infrastructure Division andsummaries of the evaluation results on our company

Electronics & Automotive Systems Division in order to

website.

supervise closely related business divisions. Furthermore,
we appoint Advisors of Functional Component Businessin order to assist President’s supervising function over

● Nominating/Compensation Committee
We e s t a b l i s h t h e N o m i n a t i n g / C o m p e n s a t i o n
Committee.
The committee's aim is to enhance our corporateeach business operations and to plan integrated businessstrategy for each business sector.
In addition, we appoint General Manager of Global
Marketing Sales Division that are responsible for ourgovernance securing objectivity and transparency bygroup’s sales and marketing entirely, and Generaldeliberating on nomination and compensation forManagers of Corporate Divisions that are responsible fordirectors, etc., including the selection of candidates forplanning group strategy and assisting operation.

the position of our President and Chief Executive Officer.

These officers are members of the Management

The committee consists of 5 or more members, majority

Committee, which is the highest decision-making body ofof which shall be outside directors, appointed frombusiness operation.

directors by board resolution.
At present, the committee consists of 6 members (4outside directors).

Management Committee, held 3 times a monthbasically, deliberates and determines major operational
matters. Further, their business affairs and operation arequarterly reported to the Committee to foster common
understanding of company business among them and● Audit & Supervisory Board
Audit & Supervisory Board and each its member
auditor collect information about management understatutory investigation authority and report and express
their views to the board meetings and the managementfrom an independent and objective standpoint as afiduciary to shareholders.

24integrated business operation as a whole.
These business affairs and operation are also quarterly
reported to the board.

Process of Determining Officers’ Compensation
and Avoiding Conflict of Interests
A t F u r u k a w a E l e c t r i c , t h e p o l i c y o n o ff i c e r s ’

Auditors ensure coordination with internal audit

compensation and details of each officer's compensation

department through regular meetings, and report theare determined by the Nominating/Compensation

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

GovernanceCommittee consisted the majority of the committee

management method in the “Basic Regulations on Risk

comprising outside directors, based on the delegation

Management and Internal Control”. In addition, we havefrom the Board of Directors in order to ensure objectivity

established a system in which the CSR and Risk

and transparency of the decision-making process.

Management Committee, chaired by the President,

In addition, in the case where Directors conduct

grasps an overall picture of the risks associated with thetransactions involving a conflict of interests, they must be

business operations of Furukawa Electric Group andbased on approval at the Board of Directors’ meeting as

determines effective methods for evaluating andrequired by law.

managing these risks.

Compensation policy of Company’s officers
The compensation of officers shall be determinedin a way that encourages each officer to exert his/her abilities to the maximum level and proactively
fulfill his/her duties, so that the Company Groupwill increase its corporate value and achievesustainable growth while contributing to society
through its business activities.

4) Information Management System
We appropriately manage and store records anddocuments related to important decisions, in compliancewith prevailing laws and internal rules. With respect to otherinformation related to our operations, the Information
Security Committee establishes uniform standards andoperates an information management system.
5) Group Company Management
In accordance with the “Regulations on Group

Reinforcing Internal Controls
Furukawa Electric establishes, develops and operates
its internal controls based on the following principles:Management Control”, administrative managers of individual
subsidiaries shall be appointed, and they shall require own
subsidiaries reporting subsidiaries’ business conditions on aregular basis, and offer management guidance tosubsidiaries. Predetermined matters shall require approval

1) Efficient Execution of Responsibilities
After setting concrete management goals for the
Medium-Term Management Plan and over the course ofof us. We also carry out a mid-term management plan andbudgets for single fiscal years, risk management, andcompliance as Furukawa Electric Group.

the fiscal year, all those responsible for operational
performance execute their responsibilities towardachieving these goals and regularly report their progressto the Board of Directors.

6) Securing Appropriateness of Financial Reporting
Based on the “Basic Regulations on Risk Management
and Internal Control”, we will establish the “Furukawa
Electric Group Basic Philosophy for the development and2) Compliance Systemevaluation of an internal control system, to ensure theUpholding the basic philosophy of compliance withappropriateness of financial reporting (J-SOX Core

ethics and prevailing laws as laid out in the “Furukawa

Policies)”. At the same time, the system andElectric Group Philosophy” and the “Furukawa Electric

responsibilities shall be clarified for the system’sGroup CSR Code of Conduct”, we, with the President

construction, development, operation, and monitoring.

assuming the highest responsibility, promote complianceactivities including in-house education and efforts toprevent and detect legal violations through our CSR and
Risk Management Committee, which is under theimmediate control of the Board of Directors, and theAdministration & CSR Division. We also have an Internal

Corporate governancehttp://www.furukawa.co.jp/en/company/
governance.html

Reporting System for the early detection and correctionof compliance violations, and establish a system not totreat the person unfavorably because of reporting.
3) Risk Management System
We have established our risk management system and
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201825

CSR Management
Basic Policy and CSR Code of Conduct
Each of the companies in Furukawa Electric Group develops CSR activities in line with the following Group basic policy.
The CSR Code of Conduct defines fundamental rules of behavior for Furukawa Electric Group executives andemployees to follow in conducting corporate activities based on Furukawa Electric Group philosophy and from theperspective of corporate social responsibility.

Furukawa Electric Group Basic
Policy on CSR（Revised March, 2011）
Based on the Furukawa Electric Group
Corporate Philosophy,
・We will operate our businesses in harmony
with society and the environment andendeavor to create social value throughtechnological innovation, complying
with laws, social norms, and ethics as amember of the international community.
・We will strive to maintain and build soundand friendly relationships with all of
our stakeholders and contribute to thesustainable development of society.

Furukawa Electric Group CSR Code of Conduct（Revised March, 2011）
1. Human rights
 orking conditions and environment
2. W
3. Environment
4. Products and services
5. International businesses and transactions
6. Fair competition
 elations with customers, partners, and society
7. R
8. M
 anagement and preservation of Company assets
9. Disclosure of information
10.	Duties and obligations of senior management and employees
CSR
http://www.furukawa.co.jp/en/csr/guideline/

Basic Approach

CSR Promotion Framework

In order to contribute to the realization of a truly rich

Furukawa Electric Group has established the CSR andand sustainable society, we need to understand the

Risk Management Committee, which comprises memberssocial responsibilities of Furukawa Electric Group andof management, as the structure for supervising andimplement policies in line with the Basic CSR Policy. We

promoting CSR activities throughout Furukawa Electric

will promote CSR initiatives alongside our businessGroup, including risk management, internal control,

activities so that each and every Group employee is able

compliance and social contribution. We have set up theto take the lead in putting CSR initiatives into practice.

CSR Department within our Administration & CSR
Division. This department

Promotion Framework

promotes CSR by facilitating

Board of Directors

communication among various
committees and corporate

Submit proposals and reports
CSR and
Risk Management
Committee

Committee chair: President
Committee members: Management
Organizer: General Manager,
CSR Department

President

Furukawa Electric Group
Quality Management Committee

Collaborate

Furukawa Electric Group
Environment Committee
Central Disaster Prevention
and Business Continuity
Management Promotion Committee

Other corporate
divisions

Administration &CSR Division

Furukawa Electric Group Occupational
Health and Safety Committee

CSR Department

Monitoring

Collaborate

Promotion / Support

other

Business divisions (internal + Group companies)

26

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Each corporate
department

departments.

GovernanceTargets and Results (Risk Management / Internal Controls / Compliance)

Achieved

FY 2017
Targets

Develop a system for the
globalization of legal andcompliance functions
 xamination and implementation-Eof compliance education inSoutheast Asia etc.

Expansion of the introductionof internal reporting systems tooverseas group companies- I mprovement of the introduction
rate of internal reporting systems
in companies with consolidated
systems

Not achieved

FY 2018
Results

Achievement

Targets

Enhancement of the compliancefunctions associated with theglobal business expansion

 onducted compliance education for-Cgroup company staff in Indonesia(Jakarta)- Implementation of the compliancerelated education in the overseas
high risk area

Strengthening overseas risk
management-U nderstand and summarize anyrisks which could conceivably
impact business, and also
formulate policies to address
those risks

Partially achieved-F ormulation of the action policies basedon the captured and organized risks
obtained from surveys on overseas risk

- Approximately 95% of the overseas
institutional consolidated companies haveintroduced the whistle- blowing system

Strengthening overseas risk
management-E xtension of the overseas
emergency response manual

Enhancement of the cybersecurity measures- Implementation of the emergency
response training based on theactivity policy of the “Furukawa
Electric CSIRT (note) ”.

(note) CSIRT:The abbreviation of “Computer Security Incident Response
Team”. The team is prepared to cope with the occurrenceof cyber incidents. The team promptly investigate causes,
identify the range of impacts and eradicate the infection
upon an occurrence of an incident.

Messagefrom

the General
Managers

We will promote the Corporate Social Responsibility(CSR) activity based on the firm functional capabilityof the promotional structure and mechanism.
Yasuhiro Yonezawa
General Manager, CSR Department,
Administration & CSR Division

In the activity of the increasing change in the businessenvironment due to the global business development,
Furukawa Electric Group is requested to steadily fulfill the
responsibility to the stakeholders while adapting changes
being aware of various stakeholders. Under thesecircumstances, the CSR activities are an important
foundation for the business growth and the continuation of

Furukawa Electric Group. Based on our Group Philosophy,
Furukawa Electric Group has established Basic Policy
and Code of Conduct regarding the CSR and has
consolidated the promotional structure and themechanism. Furukawa Electric Group will devise the solidfunctional capability and continue to promote the CSR
activities.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201827

Risk Management
Overview of the Risk Management Structure
Our CSR and Risk Management Committee conducts regular risk assessments to determine what risks exist, define
important risks that require a companywide response and prioritize measures to counter these risks. Through specializedcommittee activities in segment-specific areas—environment, quality, safety, disaster prevention—we are working tomanage the risks that relate to our business activities.

Important Companywide Risks

In the event a large-scale disaster occurs or other such riskmaterializes, Furukawa Electric Group will establish Emergency• Compliance

Response Headquarters, headed by the president, and Site

• Quality control

Response Headquarters that defines each department's roles and arge-scale disasters, such as earthquakes•Lclarifies them ahead of time. We also conduct regular exercises on• Information security

preparing initial action manuals, stockpiling necessary supplies,• Affiliated company controls

and setting up communication structures and systems to confirm
people's safety.

BCM (Business Continuity Management)[Business continuity ISO]
In order to meet the increasing demands of our stakeholders for the business continuity activities, the Company
is actively proceeding with the acquisition of international
certifications for our Business Continuity Management
Systems (BCMS). Up to this point, our businesses for the28

Situation at Emergency
Response Headquarters
training workshop“laser diode products business” (Chiba Works), “copper

having a smile to encourage the employees.” and “I wish

wire products business” and “copper winding products

you to keep your eyes open regarding making a plan to fillbusiness for motor” (both in Mie Works) have successfully

the gaps between the ideal state and the current states.”received the BCMS ISO standard (ISO22301) certification.

[Disaster headquarters training at the Head Office]Each business division operates the Business Continuity

In the training at the Disaster headquarters in the headManagement (BCM), as well as implements a BCM

office, after the safety confirmation call over training,

activity plan at the beginning of the term, an education at

education on the earthquake response manual of thethe workplace and an internal audit, take into accounthead office, the health lecture such as how to use AED

such as “super heavy rain” and “pandemic” other thanand triage presented by an industrial doctor, a training toearthquakes, as an exercise, and working to strengthen

carry out from a stockpile warehouse, etc. In addition,

the resilience of the important business continuity.

“Walking Home Training” which is actually take a walk on[Emergency headquarters training]

the return home route having a return home route map inIn the BCM training for fiscal 2017, based on the assum-

the event of a disaster, was implemented with 21

ption that the Chiba Works of the Company was affectedparticipants by newly adding a Koshu Kaido (Shinjyuku)

by a major earthquake, we conducted in a workshop

direction to 4 routes starting from Marunouchi. In eachformat exercises related to the roles and the actions to beroute, the participants walked about 2 hours while

taken between the Site Response Headquarters, thechecking the hazardous places and the evacuation

Production Divisions and the Sales Divisions in the disaster

facilities, etc. The participants explained their impression:area, and the Emergency Response Headquarter in the“I was encouraged to be acquainted with colleagues

Head Office. The President gave the following instructions:

returning home taking the same route”, “It was a good

“Organizational leaders should have strong thoughts on

experience to obtain a sense of the places by walking”, “It

restoration and reviving from the disaster, in consideration

will create a severe difficulty as streets will be filled with aof the mental and physical health of the employees andlarge number of people in the event of an emergency”, etc.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

GovernanceDisaster headquarters training at the Head Office

to enhance the cyber security management system
including Furukawa Electric Group companies.

Intellectual Property Risks
The Company aims to stabilize the management by
Safety confirmation call over training

Health lecture

strategically creating the intellectual property rights basedon the patent portfolio management that grasps the trends
in the other companies, also by decreasing the intellectual
property risks.
The intellectual property risks are divided into four
categories: “Rights infringement risks”, “Counterfeit

Briefing on “Walking Home
Training”

Walking Home Training: Leaving
the officeInformation Security
Information security is considered one of the highestpriority risks Furukawa Electric Group has to handle.

products risks”, “Contract risks” and “Technology leakage
risks”. For example, against the “Technology leakage
risks”, the following measures are taken: “Technology
concealment of the development site and the productionsite”, “Information maintenance strengthening with thetime stamp system”, etc.

Therefore we promote various countermeasures throughWe also develop the intellectual risk reduction activity inintergroup collaboration by exchanging information among

Furukawa Electric group globally, based on thethe related divisions, from the perspectives of protecting

implementation of the systematic training of Furukawa

information systems and intellectual property as well as

Electric Group in domestically and internationally, theinformation management. We continue our efforts toregular issuance of the newsletters introducing efforts toprevent information leaks by focusing on the management

reduce intellectual property risks, by the President’of hardware (mainly mobile devices) taken outside theawards for excellent inventions and activities, etc.

office and to manage IT assets through such measures as

Organizational structure on cyber security

software license management. We provide Furukawa
Electric Group with educational materials and informationon the revisions of information security-related laws suchas the Act on Prohibition of Unauthorized Computer
Access, the Unfair Competition Prevention Act and the Act
on the Protection of Personal Information. In our aim forongoing improvement, we get feedback from divisions
promoting these activities.

CSR and Risk Management Committee
Central Disaster Prevention and Business Continuity
Management Promotion Committee
Special committee on cyber security
Furukawa Electric CSIRTCSR Department

ICT Strategy
Planning Department

IT Maintenance andOperation Department

In these days, the risks of the cyber security are getting
more and more serious due to the increasing damages
caused by conditions such as the target type attack (note 1)of the cyber attacks aiming at companies and individuals.
In connection with these situations, the Company
established the cyber security system based on the“Cyber Security Management Guideline” issued by the
Cabinet Office, and set up the “Furukawa Electric CSIRT”. In the ordinary situations, the CSITR analyses the(note 2)vulnerability diagnosis and the risk together with the(note 1) Targeted attack: This is characterized by the step by step progress like
“Identifying the attack target-Initial infiltration-Infiltration base buildingPurpose execution”. At the initial infiltration step, mail containing computerviruses etc. are mailed and causes the virus to infect by opening theattachment or by clicking on the link in the text body.
(note 2) C SIRT: The abbreviation of “Computer Security Incident Response Team”.
The team is prepared to cope with the occurrence of cyber incidents.
The team promptly investigate causes, identify the range of impacts anderadicate the infection upon an occurrence of an incident.

Challenges and Future Policy
Following our international business development, risks

monitoring of the network environment. In the emergency

that Furukawa Electric Group faces are becoming moresituations, the CSIRT identifies the causes of the incidents

diversified and complicated each year. We particularly

and promptly determinates the situation by finding out

recognize that risks inherent in overseas operations―the range of the influence together with taking a role tomainly in emerging countries―and risks from the supply

prevent the spread of the damages in collaboration withchain standpoint are our top priority issues, and we will beinternals and externals to the Company. We will continue

strengthening our countermeasures against them.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201829

Compliance
Basic Approach

Electric Group employees and take many opportunities

Furukawa Electric Group regards compliance as “notto make use of it. We conduct compliance education for

only observing laws and regulations, but also as acting in

employees at every level of the Company, from newaccordance with the values and ethics required of therecruits to directors. At the same time, we hold theme-

company and its employees as responsible members of

based group training and e-learning courses, andsociety”. Each and every employee is encouraged to

conduct groupwide compliance education.

perform day-to-day compliance activities in line with ourthree musts for compliance activities: to “be aware”,

Education Results (fiscal 2017)“speak” and “rectify”.

Course Name

Three Musts for Compliance Activities

Speak
Be awareHierarchybased
education(note 1)

Rectify
1) Be aware
・Is this in line with the philosophy and CSR
Code of Conduct?
・Is this an improper practice?
・Does this run counter to society's

Themespecificeducation

TargetParticipants

Training forexecutives

Newly appointed
executives

18

Training for
managers

Newly appointed
managers

79

Training for
managers
and assistantmanagers

Newly appointed
managers
and assistantmanagers

49

Training for new
employees

New employees

92 (note 2)Competition laws and anti-bribery
regulations

246

Subcontractor Law

627

Security trade control

853(note 1) In hierarchy-based education, manager training and new employee training
includes education on human rights.
(note 2) Figures apply to Furukawa Electric only.

requirements and expectations?
2) Speak・Do not neglect it.
・Talk about it openly.
・If still not sure, take it to your boss.

Initiatives in Compliance Months
Furukawa Electric Group has designated October and3) Rectify

November as Compliance Months, during which we

・As soon as you become aware of it, fix it.

implement measures aimed at tackling the variety of・Always improve.

compliance issues faced by companies across our Group.
Principal Initiatives during Fiscal 2017 Compliance Months
Main Initiatives at Furukawa Electric

Training and Raising Awareness among
Employees
We conduct a host of training and awareness activities

1C onduct workplace self-checks according tosection-specific checklist<Section-Specific Checklist>
1) Anti- Monopoly Act, 2) Worker Dispatching Act

in the aim of instilling compliance awareness among all3) Subcontracting transactions, 4) Occupational safety

employees.

5) Asset protection, 6) Information security
2 Conduct workplace meetings

Compliance Education
Our primary shared educational materials are the
Furukawa Electric Group CSR Code of Conduct and its
corresponding Furukawa Electric Group CSR ComplianceHandbook. We distribute this handbook to Furukawa

30

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

3 Courses on competition laws and anti-bribery regulations4S
 ubmission of Compliance Pledge (for assistantmanagers, managers and above)

Governance

Employee Compliance Awareness Surveys

Anti-Bribery

We h a v e b i a n n u a l l y c o n t i n u e d t o i m p l e m e n t

Furukawa Electric Group formulated the Furukawa Electriccompliance awareness surveys at Furukawa Electric andGroup Anti-Bribery Statement in April 2012. In December,affiliates in Japan. Designed to gauge employee

we published the Furukawa Electric Group Anti-Bribery

awareness and understanding of compliance, these

Guide, and we are promoting activities toward creating asurveys aim to encourage recognition of compliance.

groupwide bribery risk management system.

Feedback is given on the results of the survey to ourGroup companies and Furukawa Electric divisions, andthe results are used to make proposals for compliancemeasures at each organization. In fiscal 2018, as in fiscal
2016, we will conduct compliance awareness survey
based on CSR Code of Conduct.

Internal Reporting System
Furukawa Electric Group has introduced an internalreporting system to earlier detect and correct illegal acts.
The Company has in place an internal reporting desk as

Overseas compliance seminar
From fiscal 2014, we started to conduct grouptype compliance seminar focused on competition
law and anti-bribery taking account of local laws andcustoms. By fiscal 2015, we held the seminar in
China. In fiscal 2016 we held it at Bangkok in
Thailand and in fiscal 2017 at Jakarta in Indonesia.
38 sales or purchase staffs from 5 affiliates attended
the seminar lectured by lawyers in Indonesian andJapanese and discussed on compliance.

well as an external reporting desk that makes use ofoutside third-party institutions (the Furukawa ElectricGroup Hotline), both of which allow employees to makereports anonymously. An internal reporting secretariat
manages the content of such reports stringently, taking
ample care to prevent people making such reports from
suffering any negative impacts, looking into issues swiftly
and taking appropriate action. In fiscal 2016, we newly
set up external reporting desks for oversea affiliates. By
the end of fiscal 2017, we have set them up in 10
countries and 40 affiliates.

Security Trade Control
Furukawa Electric Group considers security trade control
to be one of its most important responsibilities as a

Challenges and Future Policy

company with global business operations. In accordance

Regarding the various legal compliance measures wewith the laws and regulations that make up the international

have taken to date, we recognize as a Group that ourframework on security trade control (the export control

task is to expand the scope of participation of Groupregime), we have improved and strengthened ourcompanies. To this end, we will try to raise compliancemanagement systems for cargoes and technologies thatawareness by focusing on more effective education

can be converted to weapons or military uses. In exporting

content with a Group perspective and enhancing its

products and providing technology, we conduct

global implementation system. We will also hold moretransaction screenings based on our Security Tradecompliance seminars taking account of local laws,

Control Regulations to ensure compliance with relevant

languages and customs, encouraging individual initiative

legislation and are careful to prevent circumvent tounder the slogan “Think and conduct compliancecountries of concern.

together”.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201831

Society
Relations with Our Customers
Basic Approach
Each of the Company’s divisions has acquired ISO 9001 certification. Through initiatives such as these to standardize
our operations and work consistently to improve quality, we are striving to contribute to society by providing excellentquality products and services from a customer perspective.
Going forward, we will continue endeavoring to further enhance “quality power” throughout Furukawa Electric Group by
developing products that are attractive to our customers, based on a policy of Group-focused management.

Quality Management Policy
At every stage of our operations, from research and development 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, maintain and improve our products, customer services and the quality of our operations
and put our management policies into practice.

Organizations for Improving Quality
Furukawa Electric has
established Furukawa ElectricGroup Quality Management
Committee, which is chaired by
the president, as the topmostb o d y f o r p ro m o t i n g q u a l i t ymanagement at Furukawa
Electric Group level. Directed by

Promotion Framework
President
Furukawa Electric Group
Quality Management Committee

Representative Quality
Management Meeting

Committee chair : President
Committee members : Management
Organizer : General Manager, Quality
Promotion Department

Chair : General Manager of the
MONOZUKURI Innovation Division
Members :Quality Promotion Department
Divisional Representative Quality
Management

this committee, Divisional Quality
Management Committees led bydivisional heads promote ongoing

General managers of each business division

Affiliated companies

efforts to maintain or improve theRepresentative Quality Management

quality of our products, customer

Divisional Quality Management Committees

services and operations.

Messagefrom

the General
Managers

In order to firmly achieve “the next level quality”,
we promote the strengthening of quality awarenessand quality governance.
Kazuhisa Kashihara
General Manager, Quality Promotion Department,
MONOZUKURI Innovation Division

Based on the recent public information on many articles,
causes and measures concerning quality fraud in othercompanies, we never consider it as the business of othercompany and we wish to learn from them and lead to
improvements.

32

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

In fiscal 2018, along with continuation of the quality
improvement measures including two projects that havebeen worked on, the quality awareness and the quality
governance efforts will be further strengthened andpromoted.

Society

Targets and Results (Quality)

Achieved

Partially achieved

FY 2017

FY 2018

Targets

Results

Strengthening of fundamental
Quality Power- In all 14 business divisions, the expansionof the Quality Strengthening Project
activities within the divisions wereconducted.

 educe “failure costs” by 10%-Rfrom fiscal 2016

Not achieved

Quality Strengthening Project
The “Quality Strengthening Project”, that has been
underway for four years, sets the important themes
related to the “failure costs” in each business division(including the supervisory affiliates) and the improvement
is promoted by the team activities. In fiscal 2017, thepromoting method was clarified based on the “Guideline”
for problem solving process, and the expansion of theautonomous activities
was promoted ineach division. At theend of the fiscal year,
the meeting to reportresults was held andthe improvementcases were shared.

Risk Free Design (RFD) Project

Achievement

Targets

Strengthening of fundamental
Quality Power educe “failure costs” by 10%- R
from fiscal 2017

TOPICS 50th anniversary of EFLEX
Our flexible
underground c able
protecting pipe
"EFLEX" launched in
1967, celebrated its
50th anniversary in2017. The corrugated
HDPE pipe, with its
EFLEX Square Ductlight weight, long
length and flexibility features were highly valued by thecustomers, and the cumulative shipment of the productreached approximately 520,000 km in fiscal 2017, which isequivalent to 13 circumferences of the earth in distance.
The "EFLEX Square Duct" series was launched in February,
2018, responding to the market needs to support accelerating
removing utility poles in Tokyo for the 2020 Tokyo Olympic
Games.
We will continue to support and to respond to the needs forrealizing a sustainable society.

In the “RFD project”, the resource improvement whichis “Reformation of the way of thinking” was started,
based on the innovative change of consciousness ofengineers involved in designing and development and of
the people in charge. Also, the improvement of theprocess for design and development “Restructuring of
the mechanism” was started.

Issues and the future policy
In order to achieve the next level quality, two projects
will be continued.
As differences were shown in the procedures for the
problem solving processes among the departments, theIn fiscal 2017, in “Reformation of the way of thinking”,“Quality Strengthening Project” will continue to be thethe training has started for all the topics aiming for further

autonomous activities of change by each divisions. Also,

improvement by fiscal 2020. In “Restructuring of thein this activity, the key human resources for the quality

process”, the guidelines were created, and the operation

improvement will be developed

started at the training implementation divisions.

In the “RFD Project”, the practical development ofconsciousness and knowledge obtained through thetraining will be promoted.
Also, the enhancement activity on the “quality
compliance” and the “quality governance” will bepromoted, taking into account the recent quality frauds inthe manufacturing industry in Japan.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201833

Relations with Business Partners
Optimum Purchasing on a Steady, Ongoing Basis
Furukawa Electric Group procurement policy is to establish strategic relationships with business partners to ensure
optimum purchasing on a steady, ongoing basis.

Furukawa Electric Group Procurement Policy
We will realize the optimal procurement for Furukawa Electric Group through global partnerships by:
1. Conducting CSR activities and full compliance in purchasing
2. Building strategic relationships with business partners aimed at stable and continuous optimum purchasing
3. Expanding Group and global procurement
4. Constructing BCM for stable procurement and purchasing of raw materials, materials and parts
5. Promoting continuous cost reduction activities in line with business strategy

Conducting Training on Subcontracting Transactions
In order to forge sound relationships with businessIn fiscal 2017, we evaluated some 199 business partners

partners through fair transactions that comply with rules

and provided feedback to them. Furthermore, based on

and regulations, Furukawa Electric Group provides

the results of the assessment and our own experiences

training for employees on subcontracting transactions. In

during the suspended production that resulted from snow

fiscal 2017, in addition to continuing with the courses wedamage at Our Nikko Works, we requested ongoinghave conducted to date, we sought to ensure thoroughcooperation from certain business partners on businessawareness of the content of the act against delay incontinuity and stable supply initiatives.

Payment of Subcontract Proceeds, Etc., to Subcontractors.

Partners Meeting and Partners Evaluation Scheme

Promoting CSR in procurement activities
Based on our CSR Deployment Guideline for Business

Furukawa Electric seeks

Partners, we engage in procurement activities with “fullt o de ep en a w arene s slegal compliance and fair trading practices” andamong our business“consideration for human rights, safety and thepartners through regularly

environment”. We are also continually providing

held Partners Meeting,encouragement at partners meeting by explaining thew h ere w e e x pla in thestate of our efforts to our business partners, asking forstate of the Company, ourtheir cooperation with our activities, and so on.

procurement policy and individual company management
strategies. For fiscal 2017, this meeting was held in June
and was attended by 55 main business partners.

Value chain BCM (Business Continuity Management)
Furukawa Electric conducts regular questionnaire

We also evaluate main business partners on the basis

surveys on its main partners about their BCM measures.

of quality, technology, price, delivery system, degree ofIn fiscal 2017, we held questionnaire surveys for mainsocial contribution and credit condition, and then, we

partners and placed the results we received from ourprovide feedback on our findings, in partners meeting. In

business partners onto a database. In this way, we haveaddition, we discuss the results of our evaluations withbecome able to quickly identify which partners are mostly

them to more closely align our awareness of procurement

likely to be affected during a natural disaster.

activities. As part of that, we accelerated the activities ofProcurement Logistics in fiscal 2017. By collectively

34

reduction through efficient logistics.

Conflict Minerals (note)transporting purchased goods on our logistics, it will be

Regarding the handling of conflict minerals, ourleads to environmentally conscious effort such as CO2

approach to responsible mineral procurement has been

reduction, and it will also be an activity that leads to costto comply with the code of conduct of the EICCFURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Society(note) D efined as minerals (tantalum, tin, gold, tungsten or theirderivatives) that originate in or near the Democratic Republicof the Congo that may help to finance armed conflict.

(Electronics Industry Citizenship Coalition), including
setting a Group policy and informing other Group
companies and partners.

Challenges and Future Policy

In fiscal 2017, in addition to carrying out ongoingsurvey into the usage of conflict metals in mainstay

We want to fully grasp the state of our CSR activities

products at Furukawa Electric and our Group companies,

along the value chain by regularly asking our partners to

we have actively promoted procurement from smelters

complete a questionnaire on their understanding of ourthat have received accreditation under the EICC’s

CSR Deployment Guideline for Business Partners.
We w i l l a l s o s e e k t o d e e p e n B C M b y g i v i n g

conflict-Free Smelter Program.
G o i n g f o r w a rd, i n a d d i t i o n t o re q u e s t i n g t h eencouragement to partners based on the results of ourcooperation of Group companies and our business

BCM questionnaire and manufacturing site survey, withpartners in the responsible sourcing of minerals, we will

the aim of improving crisis response levels along thework with the Japan Electronics and Information

entire value chain. Internally, during group training held at

Industries Association (JEITA), an industry organization,

the Procurement Department, we have held exercise andon initiatives targeting the responsible sourcing of minerals.

seminars on the handling of BCM in order to raise ourawareness.

Targets and Results (Procurement)

Achieved
FY2017

Targets

Strengthen strategic relationships withpartners
 ngoing implementation of the partner-O
assessment system and utilization of
feedback discussions-P romote awareness of CSR Deployment
Guidelines among partners

Partially achieved

Not achieved

FY2018Results

Achievement

 onducted partner evaluations-Cof about 199 main partners andheld partners meeting- Introduce our CSR Deployment
Guideline by procurement system
online-E xamination and implementation of
measures to strengthen the value chain byutilizing BCM questionnaire surveys and site
surveys results

 eviewed and increased the-Rnumber of supply points (andsometimes recommended tohold inventory) for important
products-C arry out conflict minerals survey (data
update survey)- A conflict materials surveys (data
update surveys) was done

Targets

Strengthen strategic
relationships with partners
 ontinue partner evaluation-Csystem ontinue to inform partners about-C
CSR Deployment Guidelines-C ommunication with partners
with a view to strengthening theValue chain based on the resultsof BCM questionnaire surveys
 onflict minerals survey (data-C
update survey)

Messagefrom

the General
Managers

We will strive to achieve mutual understanding
with our business partners and take further steps
to strengthen our supply chain.
Kazuhiro Takamatsu
General Manager, Procurement Department,
Finance & Procurement Division

Ever since its foundation, Furukawa Electric has stayed
in business by partners with social infrastructure andcontributing to society as a partner of products. However,
our success is not just the result of hard works at ourcompany. It is also thanks to the steady delivery by ourpartners of the raw materials we use to create products.
In the future, our business environment is likely tochange even more rapidly. Under these circumstances, wewill need to strengthen our value chains further in order tocontinue contributing to society. We intend to use apartners meeting and partners assessments to improvethe mutual understanding we have with our partners, andto continue contributing to society through measures suchas the promotion of CSR activities and strengthening ofBCM.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201835

Relations with Shareholders
Information Disclosure Policy and IR Framework
Furukawa Electric Group Basic Policy on CSR requiresthat Furukawa Electric Group seeks to improve upon thesound, friendly relationships we maintain with all of our
stakeholders. Our Own Regulations on the Timely
Disclosure of Corporate Information meanwhile set out aframework for the disclosure of appropriate information at
the appropriate time.
Based on this policy, all IR activities are conducted by
the Investor & Public Relations Department and overseenby the director in charge of IR, who is General Managerof the Finance & Procurement Division.

Relations with Institutional Investors and Securities Analysts

Automotive components plant

Returning Profits to Shareholders
Furukawa Electric aims for management emphasizing
capital efficiency and has made the basic policy of its
capitalization strategy to balance strategic investment forIn addition to holding management briefings (covering

growth, the cultivation of the next generation of new

interim and year-end results and mid-term plans whenbusinesses, the improvement of the financial structureannounced) for institutional investors and securities analysts,

and returns to shareholders.

we actively encourage communication all year round.

Under this basic policy, in the “Furukawa G Plan 2020,”
the new medium-term management plan, we will apply
management resources prioritizing facility investment and
R&D for profit expansion in focus business areas(infrastructure / automobile markets) and the creation of
new businesses, strengthen the earning capacity of ourgroup and improve its financial structure, all of which will
support the sustained growth of our group. With regard

Briefing for institutional investors

Relations with Individual Investors
In October 2017, we held our 10th plant tour forindividual investors. Visitors were selected by lottery fromamong those who responded to an open invitation, with
50 people invited to attend out of the 150 who responded.
During the tour, we offered participants a number ofopportunities to get a feel for Furukawa Electric. We
introduced our production processes for optical fiber
cables and automotive components in Mie Works.

to returns to shareholders, we also positions thecontinuation of stable dividends as one of the mostimportant issues of management.
Regarding the year-end dividend for the fiscal 2017
ended March 2018, based on the business result andothers for the current fiscal year, the dividend wasincreased in order to increase the return of the profit to
the shareholders, and 80 Yen per share was paid as ayear-end dividend.
Regarding the dividend for the fiscal 2018 ended March
2019, based on the comprehensive consideration on the
future business development and the return of the profit
to the shareholders, we plan to pay a year-end dividendof 80 Yen per share which is equal to the current term.

Optical fiber plant

36

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Society

Stock Information and Dividends
株式・配当情報
General stock information (as of March31, 2018)

Distribution of ordinary stock among shareholders

Stock Code on theTokyo Stock Exchange
Stock Exchange Listings
Number of sharesauthorizedCommon stock issued
Minimum trading units
Shareholder register
agent
Fiscal year
Shareholders’ meeting(as of March 31, 2018)

5801

Domestic companies, others

Tokyo Stock Exchange, First Section
Common Stock

Treasury stock

6.97％
4,926,411 shares

250,000,000 shares

0.07％
48,650 shares

Individuals,
othersCommon Stock
70,666,917 shares
100 shares *2-1 Yaesu 1-chome, Chuo-ku, Tokyo, Japan
Mizuho Trust & Banking Co., Ltd.
From April 1 to March 31
June each year

Total number ofshares issued andoutstanding

21.37％
15,104,903 shares

70,666,917

47.39％
33,486,707 shares

Securities
companies

Foreign corporations
21.07％
14,892,650 shares*W e changed the number of shares in a unit of the company’s ordinary shares from thecurrent 1,000 shares to 100 shares with an effective date of October 1, 2016.

Financial
Institutions

3.12％
2,207,596 shares

Cash dividends per common share (including forecast)Fiscal year
Interim dividend (Yen)
Year-end dividend (Yen)
Total dividend (Yen)

2015/30.0
3.0
3.0

2016/30.0
4.0
4.0

2017/30.0
55 (note)
55 (note)

2018/30.0
80 (note)
80 (note)

2019/30.0
80 (note)
80 (note)(note) W
 e have carried out a reverse stock split at a ratio of 1 share for every 10 ordinary shares with an effective date of October 1, 2016. The amounts if
the reverse stock split is not conducted will be, respectively: 55 yen → 5.5 yen, and 80 yen → 8.0 yen.

(as of March31, 2018)

Major top 10 shareholders of the Company and the Company’s capital contributions to such shareholders
Name of major shareholders
Japan Trustee Services Bank, Ltd. (Trust Account)
The Master Trust Bank of Japan,Ltd. (Trust Account)
Trust & Custody Services Bank, Ltd. (Mizuho Trust & Banking; Employee
Retirement Benefit Trust, Mizuho Bank Account)
Japan Trustee Services Bank, Ltd. (Trust Account 4)
Asahi Mutual Life Insurance Company
FURUKAWA CO., LTD.
Japan Trustee Services Bank, Ltd. (Trust Account 5)
THE BANK OF NEW YORK, NON-TREATY JASDEC ACCOUNT
Fuji Electric Co., Ltd.
Trust & Custody Services Bank, Ltd. (Mizuho Trust & Banking; Employee
Retirement Benefit Trust, FURUKAWA CO., LTD. Account)

Number of shares

Shareholding
ratio

8,404,900
5,741,100

11.90%
8.13%

2,413,500

3.42%

2,304,800
1,365,050
1,329,045
1,257,600
1,127,210
1,100,000

3.26%
1.93%
1.88%
1.78%
1.60%
1.56%

1,091,900

1.55%(note) 1. Shareholding ratio is calculated with the number which deducted 48,650 shares of the Company’s treasury stock.
2. Mizuho Bank, Ltd. holds 173 shares separate from the 2,413,500 shares indicated above which have been set by Mizuho as a retirement benefits trust.
3. In addition to the JPY 1,365,050 shares mentioned above, Asahi Mutual Life Insurance Co. also has a further 1,050,000 shares in a retirement benefits trust.

Messagefrom

the General
Managers

We will make efforts to disclose and provide
explanations of our diverse businesses forunderstanding of our shareholders and investors.
Mami Masuda
General Manager, Investor & Public
Relations Department, Finance & Procurement Division

Furukawa Electric’s business began with copper smelting
and the manufacture of electric wires. The numerous
products that we manufacture based on our materials
technology support the lives of people around the world ina wide variety of fields, including telecommunications,electric power infrastructure and automobile.
Based on the four business segments of “Infrastructure”,“Electronics & Automotive Systems”, “Functional
Products” and “Service and Developments”, covering ourdiverse businesses, we will make efforts to disclose andexplain information in order to gain understanding fromour shareholders and investors.
You may have a less chance to see our web site
“Furukawa Here and There” where our products
supporting daily life are introduced and where are receiving
good reviews. We aim to be a company being trusted into
the future.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201837

Relations with Employees
Personnel Management

Human Resources Development

Personnel Management Policy

Enhancement of Education Program

We aim to be a creative and dynamic corporate group

We are training human resources who have richby utilizing diverse human resources globally. It ishumanity and strong challenge spirit, for the sake of our

fundamental to human resource management togroup development.

continuously create personnel who can embody

The state of our leaders affects corporate culture andFurukawa Electric group philosophy, core value andreflects in our business results, which is why we givecontribute to strengthening competitiveness.

training at each level to develop leadership, and construct

Please refer to page 20 for “Furukawa Electric Group
Corporate Philosophy”.

relationships between people by “dialogue” among all our
employees. We work hard to cultivate an interest inpeople and a sense of respect for others.

Medium term policy
In the 2020 Mid-term Management Plan, we set a

Nurturing Leaders Adapted to the Global Scene

mission of pursuing diversity and autonomy in order to

We started our Global Business Leader (GBL) training incontinue growing on global markets, improving our ability

2006 in order to develop personnel who will take on theto respond to changes in the business environment, androle of management in the future. Since fiscal 2013 thisrealizing greater creativity and practical capabilities in ourhas been reformed to Global Mindset Program (GMP), with“people” and “organizations”.

its extra emphasis on global human resource education.

We will implement human resource management to

We have also operated a Global Development Programsupport Furukawa Electric group’s growth strategy(GDP) for overseas local employees since 2010 with the(note), develop-

aim of strengthening links within Furukawa Electric Group,

ment of management human resources, enhancement of

the curriculum being partly shared with the GMP.

HR function in group and global, fostering an employee’s

Furthermore, in fiscal 2014 we launched the Global

autonomous career awareness and improving willingness

Challenge Program (GCP), which dispatches young

to develop capabilities toward realization of career.

employees to foreign countries. We are working to alignthrough penetration of “Group HR Vision”(note) This is our vision for human resources at Furukawa Electric Group.

these various programs to develop human resources who
can play a dynamic role on the global stage.

Main measures contributing to the Group’s global
management

Global Human Resources Training System

1R ealization of “Successor Training Plan” and strategic
placement in important position within group arly selection of candidates and systematic
2E
development and arrangement, for the training of thenext generation of managers
3E stablishment and penetration of “Group HR Vision”,
promotion of career development support andimprovement of personnel system for that purpose
4 Improvement of training curriculum and promotionof human resources exchange, overseas dispatch ofyoung employees
5 Acceleration of diversity management efforts
 romotion of productivity improvement and flexible
6P
working way through “work style reform”

Training global human resources
SP
Generalmanagers
Sectionmanagers
Data Base
Assistantmanagers
Recommend key
people in eachdepartment fortraining as
global humanresources

Global Business
LeaderGBL

FY 2006–2012

Global Mindset
ProgramGlobal Development
Program

GMPGDP

FY 2013–(For local
employees)

Diversity
Global Mind Set
Global Leadership
Business Situation

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

FY 2010 –Global Challenge
Program

GCP(Overseas
dispatching)

38

Mini MBA・Accounting
・Strategy, etc.

1. One FURUKAWA course
2. Frontier course (JICA)

Society

Project to Improve GENBA-RYOKU Capabilities

Using Diverse Human Resources

From fiscal 2009, the training targeted for the

One of our Group’s management philosophy is toemployees in MONOZKURI (manufacturing) site is carried“nurture human resources at every level, so that we canout at each of our Plants. In fiscal 2017, was reopened

become a more diverse and creative organization”. It is

the freshman training targeting the novice technicians.

essential for the progress of our Group’s global

And, the “Workplace Leader Training” targeting

management to create a corporate culture in which moreforepersons was opened, and the consistent training

diverse personnel can succeed.

plans from novices to veterans were prepared. The siteIn April 2014, we set up a Diversity Promotion Section,

staffs from 21 domestic Group companies participating inand are working on various measures such as

the MONOZUKURI training. In addition, The “allorganizational mind fostering, women’s career formation

employees participating special programs” are opened at

support, autonomous work-life management, etc., aiming

the major plants in many companies in Furukawa Electricat building an environment where diverse humanGroup. More than 3,100 trainees participated in the siteresources can be active.

strength training and the activation of the “MONOZUKURI
power” in the workplaces is strived by taking advantageof the “sight strength” in which each person takes action

Diversity & Inclusion Activities
In fiscal 2017, we strengthened
the transmission from the top

based on their own consideration.
Training for novice
technicians.
Exercise in safety bypointing out and giving
voice.

management such as anaccession to “Iku-Boss Enterprise
Alliance”, and support for

Iku-Boss enterprisealliance“Declaration on Action by A
Group of Male Leaders Who will
Create a Society in Which
Women Shine.” .
We worked on individual
fostering of female managers,
created child care brochure formen and held a seminar on

Lecture on
MONOZUKURI staffs
training for the sightstrength.

“Male Leaders’
Association
Accelerating the Activityof “Shining Women”

compatibility between work andnursing care.
These efforts were evaluated,

We are promoting to create a culture which carries out

and in March 2018, we were

“Nadeshiko Brand” logo

the operation with the common language of

selected as “Nadeshiko Brand” as a listed company of“strengthening the GEMBARYOKU”. What’s more, we will

nonferrous metals with excellent women’s success.

strengthen our “Monozukuri capabilities” by working[Objectives related to support the success of women

together as a united Furukawa Electric Group both inin the workplace] (Set new target value in fiscal 2018)

Japan and overseas.

(1) We aim for 7% of females in managerial positions byfiscal 2025.

People Undergoing GENBA-RYOKU Reinforcement Training（No. of GENBA-RYOKU trainees）

600
500

88

400

Furukawa Electric

43

189 265
423

100
0

24

42

76

76

292

2025.
(3) We aim for 40% of females in university graduates
recruits by fiscal 2025.

183

300
200

Group companies(2) We aim for 15% of females in chief positions by fiscal

344

159

121

156

237 215 181(note) A summary of our company’s initiatives is available on the
Ministry of Health, Labour and Welfare’s “Enterprise databasepromoting women’s success”.
http://www.positive-ryouritsu.jp/positivedb/detail?id=529

2009 2010 2011 2012 2013 2014 2015 2016 2017 (FY)FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201839

Work style reform
From both aspects of “work style change” and“organizational culture reform”, we are promoting activities
aiming at balancing “sustainable growth of the company”
and “enhancement of individual lifestyles (life)”. In fiscal
2017, in addition to encouraging executive officers andFurukawa New Leaf employees at work

department heads to take the initiative, we implemented acampaign called “Working Style Reform Challenge Month”
and accelerated efforts in each department.
Furthermore, in order to achieve results, we believe that
it is important to work together on a team as “anReal employment rate
(From our employment status report on disabled persons)
（％）

2.5

organization where everyone can share own ideas openly”.

2.0

We conducted a “dialogue party” between the president

1.5

and the department/section managers at eight locations
nationwide to deepen their understanding of the

1.83%

0.5

Diversity in Hiring

0.0
2013

business, Furukawa Electric Group has come together to

2.31%

2015

2016

2.23%

1.0

importance of interactive leadership.

In order to respond to the global development of our

2.32%
2.04%

2014

2017

(FY)

Internships

implement a variety of initiatives with the aim of securing

Ever since the Japanese government introduced ahuman resources. In addition to information exchanges tosystem of internships in 1997 as part of an industry-

share know-how on hiring within Furukawa Electric Group,

academia-government collaboration, in our role as awe held Furukawa Electric Group Forum in Tokyo, at which

manufacturer Furukawa Electric has taken on numerous

actively appealed our attractiveness to students.

science and engineering interns with the aim ofcontributing to the fostering of Japanese technicians of the

Recruitment figures by gender (Number of employees)
MaleFemaleSpecialized
Total
staff
Foreignnationals
Male
Professional
Femalestaff
Total

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
21
28
45
61
73
5
8
15
31
31
26
36
60
92
104
1

0

0

1

0

0
0
0

0
0
0

0
0
0

15
0
15

46
0
46

Encouraging Employment of Disabled People
Furukawa Electric has established special subsidiary
Furukawa New Leaf in fiscal 2004 for the purpose of
improving our employment rate of disabled people. As of

future. We have already taken on more than 200 students
across our various workplaces.

Internship training

Improving the Working Environment throughLabor-Management Opinion Exchanges

March 31st 2018, Furukawa New Leaf employs 41

Furukawa Electric maintains a basic position that bothpeople who are intellectually challenged. As of Marchlabor and management should endeavor to engage in15th 2018, Furukawa Electric has an overall disabled

sincere discussions, and therefore we focus on issue

employment rate of 2.13%.

resolution and deepening mutual understanding.

Furukawa New Leaf is doing its bushiness at Hiratsuka

We hold our Central Management Briefings twice

Works, Chiba Works and Mie Works, to further increase

annually for public exchanges of opinion between labor

our disabled employment rate.

and management. We have conducted such meetingsfor 66 years from fiscal 1952. As of May 2018 we had
held these briefings 131 times. Representatives from40

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Societylabor and management exchange frank opinions andlead to improvements in various systems and strengthenshare information about a broad spectrum of items atmonitoring functions, such as compliance response andthese briefings, such as the business environment,

the implementation status of other CSR activities.

management, and topical matters.
We also have in place various committees such as the

Employee Data Book
Please see the URL below for Employee Data Book.

Personnel System Exploratory Committee and theCommittee for Studying Shorter Hours that are designed

CSR

to improve the working environment, which management

http://www.furukawa.co.jp/en/csr/report/

and labor discuss on a daily basis. These discussions
Targets and Results (Personnel Development and Working Environment)

Achieved

FY 2017

Partially achieved

Not achieved

FY 2018

Targets

Results

Strengthening of global human- Training menu is to be revised forthe penetration of “One Furukawa
Mind” and the awareness of “Core
Value”- Continuous implementation of GCP-3 0 participants from 15 countries participatedfrom 8/28 to 9/2 Implemented GDP-R eview the content of the training, based onCore Value after reviewing their thoughts
and actions, formulating action plan-O ne participant in the GCP-One-Furukawa
course Addition (dispatch from the Legal
Department to OFS for 3 months)

Strengthening of global human- Implementation of OneFurukawa
Mind Penetration and “Core Value”
conscious GDP training- Continued dispatch of GCP

Reinforcement of Monozukuri
capability
 uilding an educational system to-Bstrengthen “ Monozukuri capabilities”- Implementation of GENBARYOKU
strengthening activities for affiliatedcompanies (Japan and overseas)(ongoing)- Monozukuri education system created- As a support for strengthening“Monozukuri capabilities” of affiliatedcompanies, local on-site field training
was conducted at affiliated companies inJapan (KANZACC Co., Ltd.)

Reinforcement of Monozukuri
capability- I mplementation of “Monozukuri
capabilities” Education-C ontinue to strengthen“Monozukuri capabilities” ofaffiliated companies (Japan andoverseas) (ongoing)

Support for diverse ways ofworking, and work-life balance-P romotion of birth and child careparticipation of father, awarenessof our system, support for infertility
treatment hour-2
 7 people with male childcare leave,
Increased by 20 people over the previous
year-U pdated in-house site to inform worklife balance related system and publishedguidebook for male childcare participation- Introduction of leave system for infertility
treatment

Support for diverse ways ofworking, and work-life balance- The number of people with annual
regular vacation acquisition lessthan 5 days shall be zero
- Introduce a seminar as a careerdevelopment support to parents
who take childcare leave

Achievement

Targets

Messagefrom

the General
Managers

Continue to challenge change based on“Carefully take advantage of the people”
Masako Tanaka
Corporate Vice President, Deputy General Manager,
Strategy Division and General Manager, Human Resources Department

Challenges for the Human resources Dept. are getting
more sophisticated, such as the rapidly progressing low
birthrate and the aging population, the diversification ofwork and work styles based on the technological innovationand the lack of human resources to support the global
business development. It is not an exaggeration to say that“the strategy of the human resources and the organization”
is the most important factor affecting the competitivenessof the company and for the business continuity.
For its history of more than 130 years, “Carefully takeadvantage of the people” has been the DNA of Furukawa

Electric Group. As a person in charge of Human Resources
Dept. I am dedicating with courage more efforts for the newchallenges by taking heed of its origin, in order to survive
this era, and by changing Human Resources Dept. itself.
“A new value is created by a cooperation and by thediversity of human resources taking the advantages of theindividual strengths”, “To grow individuals and enrich theirlives autonomously, it is also essential for the growth of acompany”, I would like to sympathize with these ideas, andincrease the people who make consideration and practice
together.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201841

Occupational Health and Safety
Basic approach to occupational health and safety management
In addition to basic legal compliance, Furukawa Electric Group prioritizes initiatives that promote “becoming a safety
conscious person” and “realizing fundamental safety”. Our basic approach is to aim for zero accidents and zero illness.

Basic policy on health and safety management•E ndeavor to eradicate accidents by inspections and management in accordance with the Industrial Safety and Health Act.
•P
 romote the realization of “fundamental safety” with a goal of achieving Stage III or higher in separating pedestrians andvehicles and separating people and equipment.
• Improve “safety consciousness” through practical education and risk prediction to encourage employees to become safety
conscious person. (* “Safety consciousness” : (1) Ability to identify points of risk (2) Ability to propose improvements)• Improve Safety and health management systems with a medium-term goal of achieving Stage IV or higher.
•P romote mental and physical health improvement by Furukawa Electric group’s health management activities.

Promotion System
Furukawa Electric Group has

Promotion Framework

established the Furukawa Electric Group

President

Occupational Health & Safety

Furukawa Electric Group Occupational
Health and Safety Committee

Committee (on which the President
serves as committee chairman) as theCommittee chair : President
Committee members : Management
Organizer : General Manager,
Safety and Environment
Promotion Department
General Manager,
HR Department

highest body for promoting occupational
health and safety at a group level. The
committee membership is composedof executives, and carries out deliberation, decision-making and follow-up

General managers of each business division

activities for Furukawa Electric group as

Representative Safety and Health Meeting
Chair :

General Manager of
MONOZUKURI Innovation Division

Members:
Division general managers
Divisional Representative Safety and HealthWorks General Managers
Safety and Environment Promotion Department
Health Promotion Center, HR Department

Affiliated companies

Representative safety and healtha whole in respect to policies andDivisional occupational health and safety committees

initiatives in health and safety.

Safety and Health Activities Presentation Meetings

Site inspections by officers

We have been holding presentation meetings on

Furukawa Electric’s safety

Furukawa Electric Group’s safety and health activities andofficers make site inspections atawarding the best with

Furukawa Electric Co., Ltd. andcommendations. In fiscal

group companies whenever an

2017, fourteen teams wereaccident occurs and inselected from the SBUs

accordance with performance in(including five teams fromthe previous fiscal year. They

group companies) to givepresentations and receive
awards from the president.

Furukawa Magnet Wire (Japan)
giving a presentation

Site inspections by officers
at Yokohama Drum
Manufacturing (Japan)

confirm how appropriate the safety measures are, andcheck the extent to which these measures have become
firmly established. In addition, they exchange opinionswith a view to achieving fundamental safety, and work

Targets and Results (Accidents)

Achieved

Partially achieved

FY 2017
Targets

Zero “accidents withworking loss days”

42

Not achieved
FY 2018

Results

Achievement

Five “accidents withworking loss days”

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Targets

Zero “accidents withworking loss days”

hard to prevent any recurrences.
They also conduct visits todomestic and overseas groupcompanies, and exchanged
opinions with 10 companies infiscal 2017.

Society

Work Accident Occurrence Status

Strengthening Smoking Measures

In terms of its performance in fiscal 2017, Furukawa

Since fiscal 2003, the Company have been

Electric recorded five “accidents with working loss days”,

making the full-scale efforts on smoke curbing

and failed to meet its target of “zero accidents withand implementing the actions for theworking loss days”. The frequency rate of accidents

prevention of secondhand smoke and non-resulting in time off work (note 1) increased to 0.63 in

smoking promotion. As a result of these

Furukawa Electric only but decreased to 0.3 among all
Group companies in Japan (note 2).

activities, the smoking rate of the employees(male) has decreased from 53.3% in 2002 to Non-smoking poster

Frequency rate of accidents resulting in time off work

28.9% in 2017, and in fiscal 2017, non-smoking within

（％）

2.0

All industries (note 2)
Whole Group in Japan

Frequency rate (note 1)

1.58

Whole manufacturing industry (note 3)
Furukawa Electric

1.66“The Company will welcome the 2020 Tokyo Olympic with

1.02

efforts of the triad (information provision, non-smoking

0.72

0.63

support, non-smoking environment maintaining).

0.29

0.28

0.30

2015

2016

2017

1.66

1.61

1.63

1.06

1.06

1.15

0.77

0.51

0.28
2014

full non-smoking!!”, we will continue the multidirectional

1.5
1.0
0.5

0.94
0.71
0.40

0.0

2013

working hours was achieved. In order to achieve the full
non-smoking all over the Company, under the slogan of

Measures to Prevent Falling Accidents(FY)(note 1) Frequency rate = (No. of casualties / Total actual work hours) x 1,000,000(note 2) The calculation for fiscal 2017 covered full-time employees andtemporary staff at Furukawa Electric and 36 Group companies in Japan.
See page 59 for companies included in the calculation.
(note 3) Data on all industries and the whole manufacturing industry is from
Ministry of Health, Labor and Welfare survey results

The falling accident increases with age, even in the
Company, as its members are aging, as the increase offalling accident (including commuting injuries during
walking) is a serious concern, the preventive education

Meanwhile, the 2017 accident frequency rate for thefor the falling accidents and fitness exercises (muscle

whole Group including overseas Group companies wastraining) were introduced from fiscal 2016. In addition, in

0.8. This included accidents both resulting in and notfiscal 2016 the physical function check-ups has been

resulting in time off work.

implemented for employees over 50s, and from fiscal

Healthcare for Employees Working Long Hours
In accordance with the Guidelines issued by the Labor
Standards Bureau entitled “Measures to be Taken by

2017, it was expanded to over 40s.

The Health management declaration and certificatedas the Health management superior corporation 2018

Employers to Prevent Health Impairment Due to Overwork”,

The Company was certified for two

we strive to manage the health of employees who work longconsecutive years as a “Health management

hours by implementing strict limitations on working hours

superior corporation 2018 (White 500)”

based on the results of health checkups and by arranging

which is practicing excellent healthconsultations for such workers with industrial physicians.

management, by the Health Management

Mental Health Education

superior corporation certification system of
the Ministry of Economy, Trade and Industry.

White 500 certificate

We began conducting mental health measures in fiscal 2002, In

In addition, on May 15, 2017, from the managerial view

the past, stress control training, workplace mental health training

point, “Furukawa Electric Group Health Managementwith a focus on Work Engagement, and Pleasant Workplace

Declaration” was enacted, in order to promote “Health

Discussion Sessions aimed at improving the workplace

Management” which strategically strives for the healthenvironment have been implemented across the company.

management and the health promotion of the employees.

In fiscal 2014 and fiscal 2015, we promoted self-care

In order to “aim to become a creative and full of vitality

training and line care training for all employees in theircorporate group by taking advantage of the diverse

early 40s and all middle-ranking managers in order tohuman resources”, we will keep making “a company

improve their ability to respond to various changes. In

where everyone works vigorously, keeps growing and is

fiscal 2016 or later, in addition to continuing to implement

proud” by prioritizing safety and health to everything,these trainings, we will introduce a stress check systempromoting various activities mindful of health managementin accordance with legal revisions.

throughout the Company.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201843

Relations with Communities
Basic Policy
Furukawa Electric Group has continued to conduct social contribution activities that are rooted in the local community.
Going forward, we will strengthen these actions further along the three dimensions of nurturing future generations,promoting sport and culture, and living in harmony with the natural environment and local communities.

Furukawa Electric Group Basic Policy on Social Contribution Activities（Revised March, 2011）
Furukawa Electric Group will continuously undertake social contribution activities focusing on nurturing future
generations, promoting sport and culture, and living in harmony with the natural environment and local
communities, in addition to its business-related activities, in order to maintain and strengthen community ties
built over centuries and create a better tomorrow for future generations.

Efforts of career education “Hamakko Future
Supporter” in Yokohama city
The Company participates in the efforts of “Self-

Implementation of the private companies
training for teachers.
From 1st to 3rd August, hosted by the general

Development Education” promoted by Yokohama city,

incorporation foundation of Keizai Koho Center (Japanand carrying out the work experience learning and theInstitute for Social and Economic Affairs) the privatedelivery classes for elementary and junior high school

companies training was conducted for teachers, and 10

students.

teachers from elementary schools and junior high schools

At Yokohama Works in fiscal 2017, in order to convey

in Chuo-ku and Shinjyuku-ku participated. While valuingthe excitement of the basic research, a group work on

the pleasure of awareness and the sense of

the world in the next 100 years and conducted aaccomplishment with the themes of “Social responsibility

simulated running experiment of a linear motor car usingof schools and corporates”, “Safety and environmental

the superconductive technology. From the participatedactivities” and “What is human resources development”,

junior high school students, we received a comment

we learned together through the exercises, factory tours“What kind of society will be in the future, I am looking

and companies training.

forward to creating it together.”
As a friendly Furukawa Electric and as a dream inspiring
Furukawa Electric, we will continue to work closely andto contribute to the local community.

Group exercise

Work experience learning by junior high school students
at Yokohama Works44

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Practicing at “Anzen Dojo”

Society

CSR Awards
Ninth CSR Awards
The Company established the CSR Awards to make honorable recognition of the outstanding social contribution
activities and the environmental preservation activities of Furukawa Electric group companies. The CSR Award winningcompanies are devising their activities and continuously contributing to society every day.

Social Contribution Award

Furukawa New Leaf Co., Ltd.

Environmental Preservation Award

The Furukawa Battery Co., Ltd.

Furukawa New Leaf Co., Ltd. Hiratsuka Branch office

With the global consensus on the climate change

provides the opportunities for employment experiences

measures and the goal setting, the interest in the global

for students in the neighboring school for handicappedenvironment is increasing more and more. The storage

person and support education school. Focusing on highbatteries are indispensable for the environmentally friendly

school second and third graders, we enroll one student

vehicles. The Furukawa Battery Co., Ltd. co-sponsors

for one to two weeks. The student engages in cleanup

World Econo Move (WEM), which is an energy saving

activities with our employees, while communicating withrace for the electric vehicles, as a part of efforts towards

seniors employed from the school and receiving guidance

the environmental activities.

on the work methods. Thus, a place to actually

WEM is a competition being held since 1995. It is anexperience the daily life as a social occupant is provided.

energy conservation race competing for a driving

In the six years, from fiscal 2012 to fiscal 2017, total 46

distance within a certain time using the same battery forstudents had the experience.

the convention (made by Furukawa Battery) supplied by

In the first work experience, spending time with people

the host. Through this co-sponsorship, we wish thein different ages is accompanied by huge anxiety andpeople in wide range of generation to be continuously

stress, it is a valuable experience for the students aiming

interested in the global environment.

to work.

Thailand Competition(August 2007 in
Bangkok)Start in Chiba
Competition (Nihon
Automobile College,
October 2010 in Narita)Awards ceremonyin Akita competition(May 2017 in Ogata
Village)Work experience of cleaning activities
Furukawa Battery
members in Indonesia
team (May 2018 in
Ogata Village)
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201845

Activities

in each region

Activity
topicsFurukawa Electric Group conducts
various activities in each region.

Living in harmony with
the natural environment■ Participated in local environment
beautification campaign◦F urukawa Electric(Chiba Works, Nikko Works, Hiratsuka Works, Mie Works,
Copper Tube Division, Copper Foil Division)◦NTEC ◦ Okano Electric Wire ◦ TOTOKU Electric

Nurturing future generations■ Supported and cooperated on work
experience for schoolchildren of all ages

◦Furukawa Automotive Systems ◦Furukawa Sangyo Kaisha◦Furukawa Precision Engineering ◦Furukawa Techno Material◦Furukawa Electric Ecotec◦Furukawa Logistics◦Riken Electric Wire

◦Furukawa Electric Industrial Cable◦Furukawa Magnet Wire◦F
 urukawa Nikko Power Generation◦F urukawa Electric(Chiba Works, Nikko Works, Yokohama Works)◦Furukawa Sangyo Kaisha

Living side by sidewith local communities◦Furukawa Electric Power Systems◦Furukawa Logistics■ Supporting and working withNPOs and special-needs schools◦F urukawa Electric (Nikko Works, Copper Foil Division)◦Furukawa Sangyo Kaisha

Social experience learning by Nikko Junior High school(Nikko Works, Furukawa Electric)

Factory tour by the local
elementary school(Chiba Works,
Furukawa Electric,
Furukawa Logistics)

Regional exchange volunteer meeting with NPO Habataki(Copper Foil Division, Furukawa Electric)■ Cooperated with the patrol in the region◦Furukawa Electric Power Systems■ Supported private sector training for teachers◦Furukawa Logistics◦Furukawa Electric (Hiratsuka Works)■ Held a fishing event◦Furukawa Nikko Power Generation

Promotion sports and culture■ Participated in, sponsored, and provided
a venue for sporting events◦F urukawa Electric (Nikko Works, Hiratsuka Works,
Mie Works, Copper Tube Division)◦Furukawa Automotive Systems ◦Furukawa Sangyo Kaisha◦Furukawa Electric Power Systems◦Foam Kasei ◦Furukawa Nikko Power Generation46

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

■ Hosted, participated in, and supported festivals◦F urukawa Electric (Nikko Works, Hiratsuka Works,
Mie Works, Copper Foil Division)◦NTEC ◦Furukawa Precision Engineering◦Furukawa Electric Power Systems◦Furukawa Magnet Wire ◦Miharu Communications◦Furukawa Nikko Power Generation

Society

Other activities■ Donation to the Kumamoto earthquake◦Furukawa Electric (Yokohama Works)

Watarase drainage basin “Clean Operation” (Furukawa Logistics)■ Donated and raised funds for charities◦Furukawa Electric (Nikko Works, Yokohama Works)◦Miharu Communications◦Furukawa Nikko Power Generation■ Donated blood◦F urukawa Electric (Chiba Works, Hiratsuka Works,
Yokohama Works, Copper Foil Division)◦F urukawa Precision Engineering◦F urukawa Logistics ◦ F urukawa Magnet Wire

Miho pond parkland “Removal of Sicyos angulatus”(TOTOKU Electric)■ Conducted factory tours
for employees’ families◦F urukawa Electric (Hiratsuka Works)◦F urukawa Automotive Systems

Cutting grass in neighboring children’s playground
together with Hosoo Resident’s Association(Furukawa Precision Engineering)■ Conducted beautification activities
outside premises◦F urukawa Electric (Chiba Works, Nikko Works,
Hiratsuka Works, Mie Works, Yokohama Works,
Copper Tube Division, Copper Foil Division)◦NTEC ◦ TOTOKU Electric◦Furukawa Automotive Systems“Open Office” for employee families(Furukawa Automotive Systems)■ Supported the restoration of
the Tohoku region◦F urukawa Electric (Chiba Works, Hiratsuka Works)◦F urukawa Sangyo Kaisha◦Furukawa Electric Industrial Cable◦Furukawa Logistics ◦Furukawa Magnet Wire

Challenges and Future Policy
Furukawa Electric’s works, branch offices, and Group companies are implementing community-based activities
with ingenuity. We will continue investigating programs and other measures which can apply our unique company
characteristics in accordance with the Furukawa Electric Group Basic Policy on Social Contribution Activities.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201847

Environment
Environmental Management
Furukawa Electric Group Basic Environmental Policy
Basic Philosophy
   We, the employees of the Furukawa Electric Group, recognize that conservation of the global environment is aserious issue confronting the international community, and we pledge to contribute to a sustainable future for theworld through technological innovation that utilizes our strength in advanced materials.

Action Guidelines
1.	
We shall comply with environmental laws and regulations as well as the demands of our customers and others, setting
ever higher environmental targets as we continuously improve our global environmental conservation efforts.
2. W
 e shall strive to develop products that are friendly to the Earth, and create new environmental businesses.
3.	We shall strive to reduce environmental risk by incorporating anti-climate change and resource
conservation/recycling considerations, as well as a reduction in the use of environmental impact-causing
substances, across the entire product lifecycle.
4.	We shall evaluate the ecological impact of all of our businesses, and strive for the conservation of
biodiversity and sustainable use of resources.
5.	
We will seek harmony with the natural environment and local communities through dialogue with our stakeholders.

Environmental Management Organization
Furukawa Electric Group promotes environmental
activities based on the basic environmental philosophy. In

Environmental Education
Environmental Education System andEnvironmental Education Programs

April 2013, we underwent organizational restructuring,

Furukawa Electric Group is engaged in a variety oftransitioning to a strategic business unit system. We also

environmental education activities in order to raise

named our highest-level advisory body related to theenvironmental awareness among its employees and help

environmental management; the Furukawa Electric Groupthem to gain information necessary to conduct theEnvironment Committee and promoted the environmental

environmental activities of Furukawa Electric Group.

management. The “Council of Environmental Managers”

From fiscal 2016, we have been proceeding to train thewas set up under the Committee in order to promote theISO14001: 2015 version of the internal environmentalsmooth development of the decision making in theauditors, in fiscal 2017 37 employees attended theenvironmental management and a variety of specialclasses for the newly appointed ISO14001 internal

committees were consolidated and merged.

environmental auditors. Also, in order to notify thequalified staffs about the revised contents covering thePromotion Frameworkentire Furukawa Electric, a total of 98 inter nal

President

environmental auditors participated in training courses at
each site, including 35 at the Copper Foil Division, 32 at

Furukawa Electric Group
Environment Committee
Committee chair:
General Manager of the MONOZUKURI Innovation Division
Committee members: Management
Organizer: General Manager, Safety & Environment Promotion
Department, Production Technology Division
Technology & Engineering Division
Planning Department Manager

Committee for Development ofEnvironmentally Friendly Products

appointed section managers and middle-ranking
Monozukuri staff.

Environmental activity award system

Council of Environmental
Managers

48

Divisional Environment
Committees

Special Committee

Affiliated Group Companies
in Japan and Overseas

Environmental training is also implemented on an
ongoing basis as part of training for staff, such as newly-

Safety and Environmental
Promotion Department

Environment
Committee of Works

the Nikko Works and 31 at the Chiba Works.

Subcommittee
Meeting

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Since fiscal 2010, Furukawa Electric Group has beenpresenting environmental activities awards in the following
three fields with the aims of improving the environmental

Environment

awareness and raising the level of the environmentalof environmental conservation costs and effects.

activities, “the sales promotion activities for the environ

Collation is implemented in reference to the Ministry of thementally friendly products”, “the global warming prevention

Environment’s “Environmental Accounting Guidelines 2005”

activities” and “Furukawa Electric Group environmental

and covers Furukawa Electric Co., Ltd. and 21 domestic

activities”. The award system was combined into a single

group companies.

category in fiscal 2014 under the “environmental

The costs of environmental conservation activities in fiscal

contribution awards”. In fiscal 2017, one Excellent Award

2017 were 2.70 billion yen in expenses and 1.40 billion yen

and two Effort Awards were awarded at the “MONOZKURIin investments. This represents a 0.18 billion yen fall inpresentation” in early July. The project chosen for the

expenses and a 0.40 billion yen increase in investments

Excellent Award was the Waste Reduction Activity which

against the previous fiscal year.

achieved a great resulting in the waste emission by the

Please see P.59 for details of the companies included

domestic group being reduced by about 20%.

in the scope of data collation. Please see below for thecollated results of environmental accounting.

Environmental Accounting
Furukawa Electric Group has introduced environmental

CSR

accounting and works hard to promote efficient and effective

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

environmental activities through the quantitative identification
Environmental education programs
Category of educational
training

New recruits

Content

Education for new recruits(once a year, mandatory)

General environmental conservation activities

EMS activities (asneeded, mandatory)

Environmental Policy and purpose, goals andgeneral knowledge pertaining to the environment

Generalemployees

Mid-career
employees

Newly appointed
Management
section managers

Training for new recruits

ISO14001-related education Requirements of ISO standards, environment(two-day course)(twice a
regulations, procedures for internal environment
year, voluntary)
audits, various drills
One-day brushup course(once a year, voluntary)
Environmental subjects(as needed, voluntary)

Trends in environmental regulations, various drills
to brush up auditing skills
Environmentally considerate design
Environmental regulations
Control of chemical substances contained in products

Consolidated environmental
Seminars by experts on priority issues
management seminars

Messagefrom

the General
Managers

We will actively use the renewable energy andpromote the environmentally friendly manufacturing
Tsutomu Fujinuma
General Manager, Safety & Environment Promotion Department,
MONOZUKURI Innovation Division

After the Paris Agreement which is considered theframework of the climate change measures, the activity on
the greenhouse gas reduction is accelerated globally, andthe significant reduction of the environmental burdens isurgently required. The Nikko Works operates a hydroelectric
power generation at Furukawa Nikko Power Generation
Inc. and the clean energy has been used for to manufacture
products including the copper products. We will continue topromote the active use of other renewable energies
including a photovoltaic power generation as well. Furthermore, in order to enhance the manufacturing capability, we

believe that the promotion of the manufacturing with lessenvironmental impact is also important based on thereconsideration of the energy balance and the materialbalance of the material and the waste. In fiscal 2017, wehave greatly reduced waste.
We will work with our colleagues around the world todevelop products that contribute to the environment andcreate environmentally friendly products.
We will continue our efforts to earn the trust of our
stakeholders.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201849

Material Flow
Environmental Impact of the Furukawa Electric Group in Fiscal 2017
We tallied data for Furukawa Electric, 34 Group companies in Japan, and 54 Group companies overseas—a total of
89 companies.
Siam Furukawa Co., an overseas group company, was added to the aggregation of fiscal 2017. The greenhouse gas
emissions and the energy consumption were retroactively adjusted to the base year.
Please refer to page 59 for a list of all applicable companies.

INPUT
Category

OUTPUT

Domestic Overseas

Unit

Category

Raw materials
CopperAluminum
Iron
Other metals
Glass
Plastic

EnergyElectricity(purchased electricity)
Electricity(hydroelectric electricity)
Electricity (solar electricity)
City gas
LPG
Heavy fuel oil A+ Kerosene + Light oil

Water
Industrial water
Groundwater
Tap water

Unit

Waste (note 3)
177.8
6.7
2.2
5.3
33.2

180.4
39.3
9.7
0.9
3.8
41.7

1000t
1000t
1000t
1000t
1000t
1000t

Furukawa Electric
7 works,
34 Group companies
in Japanand
54 Group companies
overseas

Total waste
generated (note 4)
Final waste disposal
Recycling amount

28.1

17.4

1000t

0.4
26.8

12.0
5.2

1000t
1000t

353
85
1
55
4

460
-

1000t-CO2
1000t-CO2
t
t
t

200
343

-

9,494

1,715

1000 m3

8,754
7,789
949
17
740

417
108
0
309
1,298

1000 m3
1000 m3
1000 m3
1000 m3
1000 m3

32
33
38

-

1,113

37,121

Atmospheric emissions

7,685

8,566

TJ

534.8

743.0

GWh

109.5

-

GWh

21.6
5,914
18.6
5,036

657.3
5,142
3.6
930

MWh
1000 m3
1000 tkl

Chemical substances

10,3622,651

1000 m3

Wastewater

7,016
2,677
670

69
322
2,250

1000 m3
1000 m3
1000 m3

Public waterways
Rivers
Sea
Other
Sewer

49.1

-

1000t

BOD
COD
SS

2.0

8.7

1000t

0.1

0.4

1000t

Volume of water
recycled and reused

Chemical substances
Volume handled (note 1)

Domestic Overseas

CO2
SF6
SOx
NOx
Soot

Volume emitted
Volume transferred

t
t

t
t
t

Packaging (note 2)
Cardboard+ Wood + Paper
Plastic(note 1) PRTR-listed substances(note 2) Cardboard, wood, paper, and plastic used in product shipping(note 3) Including valuable resources (Japan)(note 4) Emissions off-site

50

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

m3

Environment

Targets and Performance of Environmental Conservation Activities
Achieved

Activity

Partially achieved

Not achieved

Furukawa Electric Group (Domestic and overseas)
Base year

Targets for fiscal 2017

Fiscal 2017 results

Evaluation

Target for fiscal 2018
Domestic : 5% or more

Reduction of greenhouse gas
emissions (Scope1&2) (note 1)

2013

Domestic : 4% or more

reduced 17.9%

2015

Overseas : 2% or more
(greenhouse gas emission per sales)

reduced 12.4%

Reduce greenhouse gas emissions (Scope3) (note 2)

Overseas : 3% or more
(greenhouse gas emission per sales)

We plan to set targets by fiscal 2018.

2013

Domestic : 8% or more
(production energy per sales)

reduced 16.4%

Domestic : 10% or more
(production energy per sales)

2015

overseas : 2% or more
(production energy per sales)

reduced 9.1%

overseas : 3% or more
(production energy per sales)

Reduce transportation energy

2015

Domestic : 2% or more
reduced 3.7%
(transportation energy per ton-kilometers)

Domestic : 3% or more(transportation energy per ton-kilometers)

Reduce office energy

2015

Domestic : 2% or more(energy per floor area in office)reduced 6.1%

This item was integrated into
production energy.

Reduce total waste

2015

Domestic : 2% or more(volume per sales)

reduced 25.6%

Domestic : 3% or more(volume per sales)

Reduce production energylll

Improve ratio of renewable energy for total
electric energy in Japan : 1% or more

Improvement of zero emission ratio

Domestic : 0.3% or less

0.03%

Domestic : 0.3% or less

Reduce water withdrawal

Domestic and overseas :2% or more (volume per sales)

Domestic : reduced 13.5%
Overseas : reduced 7.4%

Domestic and overseas :3% or more (volume per sales)

Improvement sales of environmentallyfriendly products

Sales ratio : 35% or more

32.4%

Sales ratio : 40% or more

Contribution of products to avoided
environmental impact

70,000 ton-CO2 or more

107,000 ton-CO2

80,000 ton-CO2 or more

Score B or more

Score C2015

CDP (note 3) SCORE UP (Climate Change)

lll Prevention of environmental accidents

Number of accidents : Zeroaccidents 2
Number of small accidents : 3 or less small accidents 2

Score B or more
Number of accidents : Zero
Number of small accidents : 3 or less(note 1, 2)

Scope 1: D
 irect emissions from business sites through the use of fossil fuels, etc.
Scope 2: Indirect emissions through the use of electricity, steam and heat supplied from outside of business sites
Scope 3: O ther emissions include indirect emissions such as purchased products and services, business trips, commuting, upstream transport.
(note 3)	CDP: C
 DP is an organization formed from institutional investors for the purpose of managing a project requiring companies to disclose their strategies forclimate change and the specific amount of greenhouse gases they generate.

Activities Targets and Performance in Fiscal 2017

From fiscal 2018, the improvement of the renewable

Furukawa Electric Group sets out environmental

energy ratio was added to our efforts. At Furukawa Nikko

conservation activities targets for each fiscal year inPower Generation Inc. possesses a hydroelectric power

accordance with the three-yearly mid-term environmental

generation and we will make efforts to maximize its usage.

targets. In fiscal 2017, we carried out initiatives to achieve
the targets in the middle year of the three-year plan.

Midium and Long Term Targets

As a climate change measurement, the integrating andFurukawa Electric Group has identified three items (thethe consolidating of the manufacturing sites of the various

greenhouse gas measures, the efficient use of the

products were implemented through the business structure

resources, and the biodiversity conservation), and willreformation, achieving 2.3% of reduction in CO2 emissions

design the medium to long-term targets by 2020.

for the domestic and overseas group compared to fiscal
2015.

Activity Targets in Fiscal 2018

The medium to long term target of the climate change
measures is aiming at 50% or more reduction ingreenhouse gas emissions by 2050, referring to theIntergovernmental Panel on Climate Change, The Fifth

In fiscal 2018, which is the last year of the three-year

Assessment Report (IPCC AR5), and we are formulating

medium term environmental plan, we will thoroughly

the concrete medium to long term reduction plans to

implement initiatives on a Group-wide basis to achieve thereach this goal. Also, since fiscal 2017, We are discussing

targets. We will aim to improve our CDP climate change

the medium to long term scenario analysis, the concretescore as a form of the external evaluation and will takemeasures and the methodologies and we are compilingaction to reduce emissions of chlorofluorocarbon and otherplans in conscious of the Science Based Target (SBT) (note 4).

greenhouse gases through CO2 reduction measures as a(note 4) S BT: To formulate reduction targets consistent with
scientific knowledge.

part of the climate change measurement activities.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201851

Environmentally Friendly Products
Environmentally Friendly Products and thee-Friendly Accreditation System

Environmentally friendly products as a percentage of sales
Cumulative number of registered items (Furukawa Electric)
Cumulative number of registered items (Consolidated)
Percentage of sales on a single-year basis (Furukawa Electric)
Percentage of sales on a single-year basis (Consolidated)

Furukawa Electric Group certifies and registers asenvironmentally friendly products those products withimproved performance compared to existing products in(No. registered)（％）(104 tons-CO

120

60

100

the categories of materials and parts purchasing and100

manufacture, use, distribution and disposal.

80
60

48.3
42.6
91
24.5

40
20

The e-friendly mark0

We have created the “e-Friendly” environmental markto identify such environmentally friendly products. This
mark is placed on those products.

Categories of Environmentally Friendly Products
Furukawa Electric Group's environmentally friendly pro-

50

116

43.4 106

112

30.6

32.0

32.6

75

83

92

40

97
24.4

2013

2014

2015

2016

60

30
20

35

25

80

40

10

20

0

0

2017 (FY)(note

Efforts to Contribute to the Environmental
Impact Reduction by the Products
Furukawa Electric Group is working to visualize the
Furukawa Electric& Groupcompanies at
in Japan2 emission
the final stage ofreductionamountof CO(1,000 kℓ)(1,000 tons)

ducts belong to one of four categories described below.

the500usage after our components are installed in the80

Environmentally friendly product categories

customer's
products, based on the calculation result of400

Category

Content

Prevention of
global warming

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

Zero emission

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

Elimination ofmaterials that havean impact on theenvironment

Products that do not lead to an increase in
the use of ozone-depletive substances during
the manufacturing process, do not containharmful substances above regulatory limits
and do not generate harmful substances
above these limits during use or disposal.

Resource savings

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 easier product and component
maintenance, and reducing the use forresources in packaging.

Group companies overseas

the CO2 emissions “visualization” of the main products by
205

300

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

200 estimation, the new addition of the aluminum2017

harnesses
to the threemain
productsof the213
198copper foils,
100
193
188
192

the rectangular magnet wires and the semiconductor0

lasers, based
the number
products
2013 on 20142015 of the2016
2017sold(FY) mainlyin the domestic market, the estimated total reduction
amount was approximately 110,000 tons CO2/year.
Taking into account the strengthening of the vehicle
electrification regulation of the automotive field where thedemands of the climate change measures are strong in
the global market, Furukawa Electric Group will work on
expanding the sales of our products and to expand theenvironmentally friendly products and will challenge global
environmental issues through our products.
Contribution of products avoided CO2 emissions

Expanding Environmentally Friendly Products
We are working to increase our overall percentage ofenvironmentally friendly products. We set targets basedon percentage of sales, and confirm our progress andsuccess on this basis.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018(104 tons-CO2e)

aluminum wire harnesses
Copper foil for electrode material of lithium-ion batteries
Rectangular wire for HV motors
Narrow-bandwidth-FBT (tunable wavelength laser)

12

0.7

10

0.6

8
6

6.9
4.8

4.2

4
2
0

60

221

223
220
213
utilizing the Life Cycle
Assessment(LCA). In the fiscal

Environmentally Friendly Products

52

51.1

50.0

0.8

1.1

1.2

1.8

2.0

1.8

2015

2016

2017

(FY)

40

20

0

(note

EnvironmentR eduction of CO2 emissions using copper foil
for lithium-ion batteries in electric vehicles.
Copper foils contribution
to electric cars

Lithium ion battery

Positive
electrode

Negative
electrodeterminal
Separator
Negative
electrodeplate
Separator

Electrodeposited
copper foil for
lithium-ion battery:“NC-WS”

Positive
electrodeplate

Climate change measures
Efforts to Reduce Greenhouse Gas Emissions
Furukawa Electric Group's greenhouse gas emissions
are mainly CO2 by combustion.
CO2 emissions of Furukawa Electric domestic Group in
fiscal 2017 were 353,000 tons CO2/year, decreased by
1.2% in comparison with fiscal 2016. Although this was adecrease of 19.7% in comparison with fiscal 2000 (thesame level of CO2 emissions of Furukawa Electric Groupin fiscal 1990). CO 2 emissions of Furukawa ElectricR eduction of CO2 emissions by the narrow
beam linewidth and high power compact
Integrated Tunable Laser Assembly (ITLA).

overseas group were 460,000 tons CO2/year, a decreaseof 0.1% in comparison with fiscal 2016.
Mie Factory plans to change to LNG with less CO2
emissions than LPG from fiscal 2019.
Furukawa Electric Group plan to change energy withless CO2 emissions.
Greenhouse gas emissions(104 tons-CO2e)R eduction of CO2 emissions by the HV
rectangular wire for the drive motor inelectric vehicles.

100

CO2 (Furukawa Electric & Group companies in Japan)
CO2 (Group companies overseas)
SF6 (Furukawa Electric)

6.3

8.7

80
60

45.5

47.5

48.1

46.1

46.0

41.3

38.0

35.1

35.7

35.3

2013

2014

2015

2016

2017 (FY)40
Extruded resin layer
Enamel layer
Rectangular conductor

20
0(note) For the overseas CO2 emission coefficient, the coefficient for each country
according to the IEA (International Energy Agency) is used for purchased
electricity, while the Japanese emission coefficient is used otherwise.
Emissions of greenhouse gases other than CO2 are converted to CO2
equivalent emissions using Global Warming Potential (GWP).

R
 eduction of CO2 emissions by aluminum
harnesses for automobiles.

Furukawa Electric added SF6 emissions from October
2016. Because we added part of the business of
VISCAS Co., Ltd.

Hydroelectric power of Furukawa Nikko Power
Generation Inc. (Hosoo Power Plant)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201853

kilometers which was increased by 14.2% in comparison

Use of the Renewable Energy

with fiscal 2015, and the CO2 emissions were increased

Furukawa Nikko Power Generation Inc. of Furukawa

by 12.6% which is 16,100 tons-CO2. The specific con-Electric Group possesses the four power plants and is

sumption showed a 1.1% of reduction in comparison

supplying the hydroelectric power. It covers 100% of thewith fiscal 2015. We will continue to promote modal shift,power used in Nikko Works and the copper strips are

increase loading ratios and encourage the joint shipping.

manufactured using the hydroelectric power.
Xin Furukawa Metal (Wuxi) in Furukawa Electric
overseas group, has been using photovoltaic power
generation since September 2017.

CO2 emissions and energy intensity related totransportation (Furukawa Electric)(1,000 tons-CO2e)

In fiscal 2017, the ratio of the renewable energy was

20

17.0% in Furukawa Electric domestic group. We will

15

promote the use of renewable energy from fiscal 2018.
Renewable energy ratio (Furukawa Electric domestic group)
(GWh)

800

Renewable energy (Hydroelectric power generation and others)
Electric power consumption
Ratio

20.0%

CO2 emissions

energy intensity

25(MJ/t·km)

2.00

1.64

1.71

1.66

1.67

1.69

1.60
1.20

10

15.3

14.8

5

14.3

14.9

2015

2016

15.9

0.80
0.40
0.00

0

2013

2014

2017 (FY)

600

15.0%

Measures to Disclose Environmental Information

400

10.0%

enquiries from CDP, which is representing our institutional

200

5.0%

0

0.0%
(FY)

Furukawa Electric Group has been answering toinvestors, on CDP climate change since fiscal 2008 andon CDP water since fiscal 2013. In fiscal 2017, our CDP
2013

2014

2015

2016

2017

Efforts on Energy Saving in Factories

As a response to the customers utilizing the CDP
supply chain program, in order to maintain and improve

Furukawa Electric Group's energy usage rate wasabout 20% for fuel and about 80% for electricity.
In particular, we achieved energy saving in the
manufacturing process with high energy usage ratio.
We replaced conventional equipment with more efficient
production process and higher efficiency equipment.
We implemented measures such as heat insulation of
the high temperature section of equipment considering
energy balance.

the CDP scores, we will continue to expand theenvironmental information disclosure contents and makethe reliability higher. We also continue our participation in
the environmental information disclosure infrastructuredevelopment project of the Ministry of the Environmentand continue our collaboration with The JapaneseElectric Wire & Cable Makers’ Association and the Japan
Copper and Brass Association.
Greenhouse gas emissions of CDP disclosure (103 tons-CO2e /year)

Energy consumption(1,000 kℓ)

climate change score was C and CDP water score was B.

(1,000 tons-CO2e)

Furukawa Electric & Group companies in Japan
Group companies overseas

500

2,500

400

2,000

300

205

213

223

220

221

Scope1

Scope2

Scope3

3,000

1,500

1,649

1,584

676
155

671

665

209

235

2015

2016

2017

1,622

1,000
200
100
0

500

213
2013

193
2014

188
2015

192
2016

198
2017 (FY)

Initiatives in Logistics
The transportation amount in Furukawa Electric Groupwas 237million ton-kilometers during fiscal 2017. Among
this amount, the Company transported 140 million ton-

54

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

0

(FY)

In order to improve the reliability of environmental data,
Furukawa Electric Group conducted independent
verification by a third party.
In addition to Scope 1, Scope 2, the greenhouse gas
emissions targeted part of the category of Scope 3.

Environment

water intake and wastewater for each site. Since fiscal
2015, we have taken action for the reduction of the water
intake amount per sales unit. In fiscal 2017, the water
intake amount per sales unit of Furukawa Electric
domestic group was 2,100 m3/100 million yen, decreased
by 13.5% compared with fiscal 2015. The reason is that
we grasped the water intake at Nikko Works. For
Furukawa Electric overseas group, the water intake persales unit was reduced by 8.3% compared with fiscal
Verification Statementof Greenhouse Gas
Assertions

2015. Furukawa Electric Group will continue to makeefforts for water saving and recycling and for the
management of the water quality, the water intake, andthe wastewater volumes.
In order to release information on water resource

Reducing Waste

management for the CDP supply chain program, the risk
assessment including water has been implemented in

Initiatives in the Waste Reduction

every year in the major sites of Furukawa Electric Group,

In fiscal 1993 Furukawa Electric Group started theefforts to increase the waste recycling, and since fiscal

and improvement is progressing with incorporating it in
the Business Continuity Plan (BCP).

2001 the zero emissions activities have been promoted.
In fiscal 2014, the activities aiming at the total waste
Volume of water intake(water source)

output reduction, including the valuable resources werestarted. In fiscal 2017, we achieved the reduction of
25.6%, against 2% of the reduction in per sales unit

Inside Furukawa
Electric Group

compared to the domestic group target for fiscal 2015.
We will continue our efforts to the effective use and theVolume ofrainwater use

recycling of the resources including the raw materials
aiming at the sustainable resource flow.
Total amount of waste matter generated
Furukawa Electric & Group companies in Japan
Group companies overseas(1,000 tons)

Volume of recycled water

80

60

38
23

18

18

34

34

34

33

30

2013

2014

2015

2016

2017 (FY)

40

20

0

17

(note) Valuable resources are included in total waste generated for Japan only.

Volume of wastewater (drainage)

Water usage(1,000 m3)

Furukawa Electric & Group companies in Japan
Group companies overseas

20,000

Water Resources
Effective Utilization of Water
Since fiscal 2013, Furukawa Electric Group has
promoted effective water utilization as one of the activities
targets and making efforts to grasp the amounts of the

15,000

2,621

2,579

2,652

10,715

10,28910,362

2015

2016

2017

10,000

5,000

0

(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201855

Chemical Substance Management

emissions of volatile organic compounds (VOC), one
cause of photochemical smog. In fiscal 2017, theGreen Activities

emission amount of Furukawa Electric domestic group

Response to Customer Requests
Furukawa Electric Group has participated in JAMP

was increased by 9% compared with fiscal 2012. We will(note 1)

continue our efforts to reduce the usage amount of thesince 2009, and is implementing simultaneoustargeted substances along with the suppression of theenvironmental examinations based on the latest

emissions from the production processes and others.

information from the JAMP management target
substance list related to management of chemical
substances contained in products. We also monitor
trends in laws and regulations covering the chemical

Emissions of volatile organic compounds(Group Companies in Japan)(tons)

Furukawa ElectricGroup companies

400

substances contained in products and compile andupdate data as it becomes available, allowing us torespond promptly to customer requests.

Response to Overseas Regulations and Managementof Chemical Substances Contained in Products
Furukawa Electric Group establishes a management
system for chemical substances contained in products for
major operational bases and affiliated companies,

300

107

103

200

100

0

196

192

2012

2013

99

100

108

120

152

172

196

210

2014

2015

2016

2017 (FY)(note) Volatile organic compounds are the 118 substances specified by
The Japanese Electric Wire & Cable Makers’ Association(January 2012 edition).

strengthens the environmental product regulations andgrasps the environmental risk that should be lowered, andimplements measures depending on their importance.

Appropriate Management of Chemical Substances
At Furukawa Electric Group, we confirm the properties

Regarding the Registration, Evaluation, Authorization

and applicable laws and regulations regarding all chemical

and Restriction of CHemicals (REACH) compliance, which

substances we use during the manufacturing process on

is the environmental products regulation in EU, in fiscal

their Safety Data Sheets (SDSs) and administrate them.

2017, the environmental inspection was implemented on

We also monitor the usage volume of chemical

181 substances up to 18th Substance of Very Highsubstances listed in the PRTR Law (note 2).

Concern (SVHC) REACH. In order to respond to the(note 1) JAMP: Joint Article Management Promotion-consortium(note 2) Act on Confirmation, etc. of Release Amounts of SpecificChemical Substances in the Environment and Promotion of
Improvements to the Management Thereof

customer's request, we will proceed to shift to theChemical information SHaring and Exchange under
Reporting Partnership in supply chain (chemSHERPA)
which is the information transmission scheme of chemical

56

substances contained in products.

Environmental Risk Management

Green Procurement Activities

Preventing Soil and Groundwater Pollution

Items that will be used in our products are purchased

Furukawa Electric Group conducts regular inspections

adequately based on the Green Procurement Guidelines

of facilities and equipment that handle specific toxic

of our operational division, by evaluating the suppliers’

substances to prevent the pollution of soil andsystem on the management of chemical substances

groundwater. We reduce the risk of pollution throughcontained in products and its management status as wellmeasures to prevent leaks of specific toxic substances

as by confirming the data of chemical substances

and underground seepage, as well as through ongoing

contained in products.

efforts to switch to substitute substances.

Chemical Substance Management Activities

PCB Management

Furukawa Electric Group undertakes voluntary initiatives

Furukawa Electric Group identifies the volume of high-to reduce emissions of harmful chemical substances. In

concentration PCB-containing equipment at Furukawa

particular, we make every effort to actively reduce

Electric Co., Ltd.’s works and at the bases of our group

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Environment

companies, and carries out appropriate storage andmanagement. We have been gradually disposing of thisequipment in accordance with a plan set out by the

Biodiversity Conservation
Biodiversity Conservation Initiatives

Japan Environmental Storage & Safety Corporation. We

Furukawa Electric Group has included biodiversity

are conducting the analysis and the surveys of theconservation measures in our Basic Environment Policy.

equipment that have the potential to contain a low

We have formulated and are applying Furukawa Electric

concentration PCB, and those found to be the low

Group comprehensive guidelines in relation to initiatives

concentration PCB contained equipment shall be

aimed at protecting biodiversity.

properly kept, managed and disposed of while making

While registering with the JBIB (Japan Businessconsideration for storage-related risks. Furthermore, we

Initiative for Biodiversity) and gaining a better under-

will proceed the disposal at an early stage according tostanding, our Group company Furukawa Research, Inc.

the equipment updating schedule.

started the cultivation activity of Pulsatilla cernua

Compliance with Environmental Laws and Other
Regulations
Furukawa Electric Group regularly confirms
environmental laws and other regulations to determine
items requiring compliance. We ensure compliance in a
number of ways, such as by conducting on-site patrols
to check the state of compliance. We follow official

designated as an Endangered Species ll (note 1), on apremise of Yokohama Works. In fiscal 2016, the plant
was provided to Hirastuka Works and Chiba Works andthe cultivation activities are also implemented.
(note 1) E ndangered Species II is a category of species for which
the danger of extinction is becoming more serious.

Cultivation activity of Pulsatilla cernua

journals and other sources of information to stay updated
on revisions to environmental legislation and ensure that
our response is thorough.
We maintain voluntary control limits and manage
operations appropriately to ensure compliance with the Air
Pollution Control Law and the Water Pollution Control Law.
In fiscal 2017, in order to prevent environmental
accidents, we conducted the self-diagnosis by the“Environmental accident management level check”, in

Hiratsuka Works

Chiba Works

addition to recognizing the past environmental accidents
and abnormalities. We will continue to appropriately
manage the hazardous chemical substances.
We also conduct annual checks for conceivable, clear
environmental impact to prevent environmental accidents
or prevent widespread impact in the event of an accident.

Yokohama
Works

According to our survey on the status of our regulatorycompliance, we were not in material violation of any
regulations.
Please see the URL below for our response to theasbestos problem, and a list of PRTR compatible materials.

CSR
http://www.furukawa.co.jp/en/csr/risk/

Furukawa Electric Group Biodiversity
Conservation Guidelines
1.	Evaluate the effects that our business activities
have on the ecosystem, and minimize the harmful
effects while maximizing the beneficial ones
2.	To sustainably use resources and conserve
biodiversity, consider more than ever the need tocarry out measures against climate change,
conserve resources, recycle and reduce
environmentally hazardous substances
3.	Carry out activities in collaboration with local
communities to conserve biodiversity
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201857

Third-Party Opinion
Takehiko Mizukami
Fellow, Business Ethic Research Center (BERC)
Vice chairman, Japan CSV Business Development Organization
Tokyo Institute of Technology and graduate school completed, Harvard University Kennedy School
completed.
After being in charge of major air policies such as the airline deregulation, Japan-U.S. civil aviation
talks at the former Ministry of Transport (presently Ministry of Land, Infrastructure, Transport andTourism), Mr. Mizukami was mainly engaged in business strategy planning project focusing on the
manufacturing industry at Arthur D. Little Japan Inc. a management consulting company.
Joint article author: Hikaru Kobayashi, “Green growth and innovation: creating shared value”,
Manabu Akaike, “CSV Management”, Blog “CSV/Shared value management theory”

Based on the information described in “Furukawa Electric Sustainability Report 2018” I would like to present thethird party opinion on the Company’s CSR efforts from the stand point of a CSR expert.

58

The Company is developing CSR activities

promote ESG management based on the robust

according to Furukawa Electric Group CSR basic

governance, here, it can be appreciated to bringpolicy revised in 2011. In the CSR policy, it is

the corporate governance, in which Japanese

stipulated that the business activities in harmony

companies are considered to be weak, to the front

with the society and the global environments shallof communication.

be carried out in compliance with domestic andRegarding concrete CSR activities, I think that

foreign laws, social norms and ethics. On the otherdealing with the Paris Agreement and SDGs are

hand, currently, the Company does not always

required in the future. In light of the Paris

promote CSR activities and information disclosure

Agreement, it will be necessary to fully examine

in a form explicitly based on inter national

what opportunities and risks exist in the relation

guidelines.

between the climate change and the business ofIn the Top Message, it is declared that ESG

the Company, and it will be required to establish amanagement is being promoted in various ways

long term vision. With respect to SDGs, as shown

based on the basic philosophy of Furukawa

in the Top Message, we will be required to deal inElectric Group, and I understand that necessary

such a manner as “ensure sustainable

efforts are carried out in practical ways, however,consumption and production patterns” includingin the days when global and wide range ofthe viewpoint of stable procurement of raw

investors are interested in ESG, it is desirable tomaterials based on a company which has a strong

work on CSR in an easy understandable mannercore expertise in materials.

based on the common platform of a language

There are various activities regarding corporate

which is global and to continue communication.

response to social issues. I expect that theI think that this point should be re-considered.

Company will continue to have a higher sensitivity

In this report, “Fun Lab” and “Efforts toto these activities and to further enhance CSR

strengthen corporate governance” are regarded

management in a manner integrated within theas special features. The Company intends tobusiness.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

List of all applicable companies
Page.

43

Occupational Health and Safety
1 NTEC Ltd.
2 FCM Co., Ltd.
3 Okano Electric Wire Co., Ltd.
4 Okumura Metals Co., Ltd.
5 KANZACC Co., Ltd.
6 Shodensha Co., Ltd.
7 Seiwa Giken Inc.
8 TOTOKU Electric Co., Ltd.
9 Foam Kasei Co., Ltd.
10 Furukawa Automotive Systems Inc.
11 Furukawa S and D Co., Ltd.
12 Furukawa Elecom Co., Ltd.
13 Furukawa Sangyo Kaisha, Ltd.

Page.

48

Scope of the frequency rate of accidents resulting in time off work

36 Group companies in Japan

Environmental Management

14	Furukawa Communication andBroadcasting Co., Ltd.
15 Furukawa Industrial Plastics Co., Ltd.
16 Furukawa Precision Engineering Co., Ltd.
17 Furukawa Techno Material Co., Ltd.
18 Furukawa Research Inc.
19 Furukawa Electric Advanced Engineering Co., Ltd.
20 Furukawa Electric Ecotec Co., Ltd.
21 Furukawa Electric Industrial Cable Co., Ltd.
22 Furukawa Electric Power Systems Co., Ltd.
23 The Furukawa Battery Co., Ltd.
24 Furukawa Nikko Power Generation Inc.
25 Furukawa New Leaf Co., Ltd.

26 Furukawa Network Solution Corp.
27	Furukawa FITEL Optical Device Co., Ltd.
28	The Furukawa Finance and BusinessSupport Co., Ltd.
29 Furukawa Logistics Corp.
30 Furukawa Magnet Wire Co., Ltd.
31 Furukawa UACJ Memory Disk Co., Ltd.
32 Furukawa Life Service Inc.
33 Miharu Communications Inc.
34 Myojodenki Co., Ltd.
35 Yokohama Drum Manufacturing Co., Ltd.
36 Riken Electric Wire Co., Ltd.

Scope of the environmental management

34 Group companies in Japan
1 NTEC Ltd.
2 FCM Co., Ltd.
3 Okano Electric Wire Co., Ltd.
4 Okumura Metals Co., Ltd.
5 KANZACC Co., Ltd.
6 Shodensha Co., Ltd.
7 Seiwa Giken Inc.
8 TOTOKU Electric Co., Ltd.
9 FITEC Corp.
10 Furukawa Automotive Systems Inc.
11 Furukawa Sangyo Kaisha, Ltd.
12	Furukawa Communication andBroadcasting Co., Ltd.

13 Furukawa Industrial Plastics Co., Ltd.
14 Furukawa Precision Engineering Co.,Ltd.
15 Furukawa Techno Material Co., Ltd.
16 Furukawa Electric Advanced Engineering Co., Ltd.
17 Furukawa Electric Ecotec Co., Ltd.
18 Furukawa Electric Industrial Cable Co., Ltd.
19 Furukawa Electric Power Systems Co., Ltd.
20 The Furukawa Battery Co., Ltd.
21 Furukawa Logistics Corp.
22 Furukawa Magnet Wire Co., Ltd.
23 Furukawa Life Service Inc.
24 Miharu Communications Inc.
25 Riken Electric Wire Co., Ltd.

26 Furukawa Network Solution Corp.
27	The Furukawa Finance and BusinessSupport Co., Ltd.
28 Furukawa New Leaf Co., Ltd.
29 Furukawa Research Inc.
30 Foam Kasei Co., Ltd.
31 Furukawa Nikko Power Generation Inc.
32 Furukawa Elecom Co., Ltd.
33 Myojodenki Co., Ltd.
34 Furukawa FITEL Optical Device Co., Ltd.

54 Group companies overseas
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

Shenyang Furukawa Cable Co., Ltd.
Suzhou Furukawa Power Optic Cable Co., Ltd.
P.T. Tembaga Mulia Semanan Tbk.
Trocellen GmbH
Polifoam Plastic Processing Co., Ltd.
HT Italia Holding S.r.l.
Trocellen Italy S.p.A.
Trocellen S.E.A. Sdn Bhd
Furukawa Electric LatAm S.A.
Furukawa Industrial S.A. Sucursal Argentina
Furukawa Cabos e Acessorios Ltda.
OFS Fitel, LLC
OFS Fitel Denmark Aps
OFS FITEL Deutschland GmbH
Thai Fiber Optics Co., Ltd.
Bangkok Telecom Co., Ltd.
P. T. Furukawa Optical Solutions Indonesia
Furukawa FITEL (Thailand) Co., Ltd.
Furukawa FITEL Optical Products (Shanghai) Co., Ltd.
Thai Furukawa Unicomm Engineering Co., Ltd.
FE Magnet Wire (Malaysia) Sdn. Bhd.
Taiwan Furukawa Magnet Wire Co., Ltd.
Taiwan Furukawa Electric Co., Ltd.
Furukawa AVC Electronics (Suzhou) Co., Ltd.
Furukawa Automotive Systems (Thailand) Co., Ltd.
Furukawa Wiring Systems Mexico, S.A. de C.V.
P.T. Furukawa Automotive Systems Indonesia

28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54

Furukawa Electric (Shenzhen) Co., Ltd.
Furukawa Automotive Systems Vietnam Inc.
Furukawa Electric Autoparts Philippines Inc.
Permintex Furukawa Autoparts Malaysia Sdn. Bhd.
Furukawa Electric Autoparts Central Europe, s.r.o
Furukawa Automotive Parts (Vietnam) Inc.
Furukawa Automotive Parts (Dong Guan) Ltd.
Furukawa Auto Parts (Huizhou) Co. Ltd.
Furukawa Mexico S.A. De C.V.
American Furukawa, Inc.
Tianjin Jinhe Electric Engineering Co., Ltd.
Furukawa Automotive Systems Lima Philippines, Inc.
Wuhan Furukawa Automotive Systems Co., Ltd.
Chongqing Changhua Automobile Harness Co., Ltd.
Furukawa Precision (Thailand) Co., Ltd.
Xin Furukawa Metal (Wuxi) Co., Ltd.
Furukawa Metal (Thailand) Public Co., Ltd.
Furukawa Electric Copper Foil Taiwan Co., Ltd.
Furukawa Circuit Foil Taiwan Corporation
Furukawa Electric Institute of Technology Ltd.
SuperPower Inc.
Furukawa Electric Europe Ltd.
Furukawa Electric Singapore Pte. Ltd.
Furukawa Shanghai, Ltd.
Furukawa (Thailand) Co., Ltd.
Furukawa Electric Hong Kong Ltd.
Siam Furukawa Co., Ltd.

Furukawa Electric and Furukawa Electric Group companies in Japan engaged in the production activities acquired ISO14001 certification pertaining
to environmental management. The construction of environmental management systems according to standards such as ISO14001 is proceeding inoverseas Group companies as well, with 70% of overseas Group companies successfully certified.
Page.

49

Environmental Management

Scope of the environmental accounting

21 Group companies in Japan
1
2
3
4
5
6
7
8

FCM Co., Ltd.
Okano Electric Wire Co., Ltd.
Okumura Metals Co., Ltd.
KANZACC Co., Ltd.
Shodensha Co., Ltd.
Seiwa Giken Inc.
TOTOKU Electric Co, Ltd.
NTEC Co, Ltd.

19 Furukawa Automotive Systems Inc.
10	Furukawa Communication andBroadcasting Co., Ltd.
11 Furukawa Industrial Plastics Co., Ltd.
12 Furukawa Precision Engineering Co., Ltd.
13 Furukawa Techno Material Co., Ltd.
14	Furukawa Electric Advanced Engineering
Co., Ltd.

15 Furukawa Electric Industrial Cable Co., Ltd.
16 Furukawa Electric Power Systems Co., Ltd.
17 The Furukawa Battery Co., Ltd.
18 Furukawa Magnet Wire Co., Ltd.
19 Miharu Communications Inc.
20 Riken Electric Wire Co., Ltd.
21 Furukawa Sangyo Kaisha, Ltd.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201859

Furukawa Electric Group Sustainability Report 2018

Furukawa Electric Group
Sustainability Report2018

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

Furukawa Electric Co., Ltd.

IE-133 3J9 TR 50