Furukawa Electric Group
Sustainability Report2015

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

Scope of This Report
Period Covered
Fiscal 2014, from April 1, 2014 to March 31, 2015
(note) Includes selected information on past initiatives andactivities during fiscal 2015.

Organizations Covered
This report covers Furukawa Electric Co., Ltd. andaffiliated companies in Japan and overseas. Where
activities are limited to specific regions or companies, thisfact has been clearly indicated in the reporting.

Publication Timeframe
Publication date: September 7, 2015
Planned publication of next edition: September 2016

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

Inquiries about CSR
https://www.furukawa.co.jp/cgi-bin/inquiry.cgi?id=csr_en

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 charge ofthe relevant information, the Investor & Public Relations Department
and the CSR Department, which is in charge of editing this report.
We have also provided a third-party opinion so as to offer the pointof 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 todisclose rapid, accurate and fair corporate information in a way thatalways 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 avariety 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.

Source Guideline
We referred to the GRI “Sustainability Reporting Guidelines
2006 (3rd Edition)” in composing this report.

Sustainability Report
http://www.furukawa.co.jp/english/csr/report/index.htm

2

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

History of Furukawa Electric's CSR Activities
1972

Companywide Rules for Pollution Prevention formulated

1974

2008

Environmental Control Department established

1989

Team for Reduction in Use of Specified CFCs establishedCompliance pledge introduced
	e-Friendly mark (environmentally harmonious product) certification
system started

Energy Conservation Team established1992

Anti-Monopoly Act Guidelines issued

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

Acquisition of ISO 14001 certification commenced	Companywide Regulations for Pollution Prevention revised to create
the Companywide Regulations for Environmental Management
2000

First Environmental Report published2001

Environmental accounting started

2002

Anti-Monopoly Law manual publishedZero-emissions activities commenced
2003

Furukawa Survival Plan announced

Executive Officer System introduced
Furukawa Electric Basic Environmental Policy revised
2004

Company system and chief officer system introduced

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	Report published under the revised title “Environmental and Social
Report”
2007

CSR Division established

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

Furukawa Electric Basic Policy on Pandemic Influenza Preparedness formulated

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 AffiliatedCompany 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 affectedby the Great East Japan Earthquake (Groupwide)	Furukawa Electric Group CSR Code of Conduct revised, and Furukawa
Electric Group Action Guidelines accordingly eliminatedCompetition Laws Compliance Guide published2012	BCAO Award 2011, the “Award for Practical Excellence”, received from theBusiness 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 a systemof 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

Contents
32

Initiatives for Society

Top Message

32
34
36
38
44

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

Special Feature 1

48

Initiatives for Environment

02
03
03

Editorial Policy
History of Furukawa Electric's CSR Activities
Contents

04

Group Profile

06
08

		Renewable Energies

		- Contributing to society with solution products and systems -10Special Feature 2
		Efforts of FISA, Our South American Hub

12

Financial and Non-financial Highlights

14

Business Report				

Telecommunications / Energy and Industrial Products /Electronics and Automotive Systems / Metals / R&D

20

Management

20
24
26
28
30

Corporate Governance
CSR Management
Stakeholder Relations
Risk Management
Compliance		 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
58

Third-Party Opinion

59

List of all applicable companies

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20153

Group Profile
Company Profile

Percentage of net sales by segment

Company Name

Furukawa Electric Co., Ltd.

Services and Others

President

Mitsuyoshi Shibata

Founded1884

Established

1896

Paid-in Capital¥69,395 million(As of March 31, 2015)

Net sales¥867,817 million (Consolidated)(Years ended March 31, 2015)	¥417,426 million

		(Non-Consolidated)

Number of Employees

46,134 (Consolidated)(As of March 31, 2015)

3,435 (Non-Consolidated)

Head OfficeM arunouchi Nakadori Bldg., 2-3,

5.7 % 53.5 Billion yen

Telecommunications

16.4 %
155.2 Billion yen

Metals

14.2 %
133.7 Billion yen

Total

867.8

(note)

Billion yen

Electronics andAutomotive Systems

32.7 %
308.2 Billion yen

Energy andIndustrial Products

31.1 %
293.2 Billion yen(note) Figures excludes intersegment transactions

Percentage of overseas sales
South-East Asia, Korea,
Taiwan, India 19.2%

Overseas (Total) 44.4%

Marunouchi 2-chome, Chiyodaku, Tokyo 100-8322, JapanTEL.

China 9.0%

+81-3-3286-3001

Japan

North America 6.7％

55.6%

Others 9.5％

Major Products and Services
Telecommunications
Optical fiber cables / Metal
communication cables / Semiconductor
optical devices / Electronic appliancewires / Optical components / Network
equipment / Optical fiber cable
accessories and installations / CATV
system / Radio products, etc.

Energy and Industrial Products
Copper wires and Aluminum wires / Powertransmission cable / Insulated wires / Powertransmission cable accessories andinstallations / Cable conduits / Water-feeding
pipe materials / Foam products / UV tapes forsemiconductor manufacturing / ElectricalInsulation Tape / Electric material products, etc.

Electronics and Automotive Systems
Automotive components and wiring
harness / Magnet wires / Electronic
component materials / Heatsinks /Hard disc drive (HDD) aluminum
substrates / Battery products, etc.

4

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Metals
Copper and copper alloy products (plates,
strips, pipes, rods, foils, and wires) / Functionalsurface products (plating)/ Electrodeposited
copper foil / Processed products for electronicparts / Superconducting products / Special
metal materials (Shape-memory and superelastic alloys), etc.

Services and Others
Logistics / Information processing
service / Software development /Service business (real-estate leasing,hydraulic power generation and so on),etc.

Global Network
As of June 30, 2015

Europe12
North America
Asia 75

5Japan 41

Latin America 10

Total

143

Domestic Locations (Furukawa Electric Co., Ltd.)As of June 30, 2015
Hokkaido Branch

Tohoku Branch
Nikko Works
Copper Foil Division

Okinawa
Sub Branch

Hokuriku
Sub Branch

Chiba Works,
Telecommunications & Energy Laboratories

Chugoku Branch

Kyushu Branch

Shikoku
Sub Branch

Head Office(Chiba, Hiratsuka)

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 2015

5

Top Message

Enhancing social value throughmaterial technologies tobrighten the world

Mitsuyoshi Shibata
President
Furukawa Electric Co., Ltd.

- What are your thoughts on sustainability inthe daily running of a company?
Companies have a responsibility not only toserve their stakeholders by maintaining robust
business activities that create profit, but also tobuild a better society by helping to resolve issues
in our areas of expertise, thereby contributing toenvironmental and social sustainability.
Companies that develop their businessglobally have to meet this responsibility on aworldwide scale. As Furukawa Electric expands
internationally, we too seek solutions to global
problems to serve our constantly diversifying
stakeholders and achieve sustainability.
- What do you think is important in serving
your stakeholders and meeting social
responsibilities?
The environment surrounding our businesshas repeatedly and significantly changed over

6

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

the 130 years since our foundation. During thattime, our main business area has been the creationof infrastructure underpinning society and industry,
but the key factors have always been manufacturing
and providing service from the customer’s point ofview, conducting ceaseless technical innovation, andsecuring the personnel and materials to make all thishappen.

- In regard to those key factors, what steps
are you currently taking with your customers,
products, and technologies?
First of all, how can our products and services
help to resolve any issues our customers have,and how would that contribute to society andthe global environment? What we do is consider
various business situations in which the products
and services of our entire group could help ourcustomers, and then offer diverse and comprehensive
proposals.
These proposals are built on the research we
do to enhance our accumulated technologies,
and the development of new technologies throughunconventional approaches. For example, we havedeveloped more efficient control systems to help
resolve the energy issues within smart infrastructures,and integrated optical telecommunication technology
and electric power technology into the existing
technologies of automotive products to create newtechnologies that support the evolution of safer, morereliable vehicles.
- What measures are you taking at present inregard to personnel and resources?
In the area of personnel, we are implementing
global-minded training, such as international coursesthat bring together our local staff from different
countries to raise their skill levels, and challenge
programs that promote overseas experience among
our young Japanese employees. As president, I havealso conducted a “The Honki (earnest effort) Tour”
around our business locations nationwide to meet
employees in person and exchange frank opinions.
Through such measures, our aim is to harness

various human resources around the world andbecome a creative, dynamic business entity.
Moving on to resources, in an industry concernedwith materials such as ours, we need to remain
conscious of the product cycle of raw material
supply, manufacturing and processing, delivery andutilization, and disposal, recovery and recycling. For
more than a century, Furukawa Electric has beenreusing offcuts and other waste generated in our
manufacturing process, and recycling products
discarded after many years of use. We are also
addressing environmental conservation in a variety
of ways, and our hydroelectric power plant in Nikko,
Tochigi Prefecture, delivers clean, stable power
not only to our own factories but also outside thecompany.

- Lastly, what are your thoughts on businessgrowth from the perspective of sustainability?
2014 was the halfway point of our mid-termbusiness plan, and 2015 is the final year, with ourgoals being to focus on the infrastructure andautomotive markets, build a platform for sustainablegrowth, and achieve improved financial strength.
Now that our Nikko Works has been completely
restored after last year’s snow damage, we havebeen made aware of several things, such as thestrength of our customer links resulting from ourrenewed efforts in the material industry, and somepoints within our business continuity plan that should
be reinforced. This experience has made us very
conscious of being a responsible partner to many
companies in different industrial fields, and having
inherited the desire of our founder Ichibei Furukawa
to “brighten Japan”, we are committed to creating
further social value and growing our business so that
we can “brighten the world”.
Finally, I hope as many people as possible will readthrough this report and learn more about Furukawa
Electric.
Thank you very much.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20157

Special Feature

1

Renewable Energies
Contributing to society withsolution products and systems
Furukawa Electric Group’s efforts

Kegon Falls, Nikko

plant constructed at Nikko in 1906, theelectric power of which was used in the
Nikko Copper Electrolyzing Refinery which
conducted the electrorefining of copper,
and others. Our group has also used its
accumulated technology to create
problem-solving products and systems.
Examples include power storage systems
to control fluctuations in power output,
and power cables that resist evenundersea tidal currents.
Recently, in collaboration with theRailway Technical Research Institute andothers, Furukawa Electric is participatingin the world’s largest superconducting
flywheel energy storage system projectby supplying our superconducting wirerods. This system is showing promise asa lossless storage battery, rotating ahuge flywheel to store electric power as
kinetic energy and converting the torqueback into electric power as required.

Renewable energies such ashydropower, wind power and solar power
have attracted more attention since the2011 Great East Japan Earthquake asclean, non-depletable energies to replacefossil fuels.
The Japanese government is trying toincrease the proportion of power
generated by renewable energies fromthe present 10% or so to equal to or
more than 20% by 2030. There havebeen previous attempts to increase thisrate, such as by introducing the Act on
Special Measures Concerning
Procurement of Electricity from Renewable
Energy Sources by Electricity Utilities(RPS Act) and the Feed-in Tariff system,
but they have faced big problems suchas unstable power output and highinstallation costs.
The history of Furukawa ElectricGroup’s use of renewable energies can betraced all the way back to the hydropower

Furukawa Nikko Power Generation Inc. providing 100% of Nikko Works’ energy
Ichibei Furukawa, founder of the Furukawa Group,
began to develop the Ashio Copper Mine in 1877. As thecopper mine expanded rapidly, he needed an abundant
water supply to meet the electrical demands of the Nikko
Copper Electrolyzing Refinery, and in 1906 constructed
the Hosoo Power Plant No.1 (2,000 kW) in Hosoo-machi,
Nikko, the origin of the present-day Furukawa Nikko
Power Generation Inc. That company has four power
plants downstream of Kegon Falls flowing from Lake
Chuzenji, namely, Umamichi, Setoyama, Hosoo, andKaminoshiro, generating a total output of 29,890 kW.
Hydropower has long contributed to the regional
community as a clean energy source that emits no carbon
dioxide, and currently meets 100% of the power demandat our Nikko Works as well as supplying power to ouraffiliates, Furukawa Co., Ltd., Ashio Power Plant, andTEPCO.
Of all the renewable energies that show promise for the
future, hydropower delivers the most stable power supply.
Amid the various challenges facing Japan’s energy policy,
Furukawa Nikko Power Generation Inc. will continue tosupply clean, stable power.

8

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Mount Nantai
Chuzenji Dam

Lake
ChuzenjiHakuun Falls
Irohazaka
1 routeHodo Falls
Hannya Falls

Kegon Falls

UmamichiPower Plant
Irohazaka 2 route

Setoyama
Power Plant

Hosoo Power Plant

Daiya River

Hosoo Reservoir

Furukawa Nikko Power Generation,
Hosoo Power Plant

Furukawa Electric,
Nikko Works

Furukawa Precision
Engineering

Furukawa Precision
Engineering,
Kiyotaki Plant

To Nikko
Kaminoshiro
Reservoir

Kaminoshiro
Sedimentation Basin

UACJ
Nikko Works

Kaminoshiro Tunnel

Kaminoshiro
Tank

Kaminoshiro
Power Plant

Fukushima floating offshore wind power station, contributing to earthquake restoration
Furukawa Electric is participating in “Fukushima Experimental
Offshore Floating Wind Farm Project”, one of the region’s restoration
projects, having endorsed Fukushima Prefecture’s proposal to “be apioneering place for renewal energies”. Utilizing offshore energy isvital for a country surrounded by water like Japan, and in thisexperimental study we have established a business model for a
floating offshore wind power station, which we hope will help tomake full-scale floating offshore wind farms a reality.
In this experimental study, we have built and verified a powertransmission system that securely delivers control signals andpower output from a floating offshore wind power station along
submarine cables. The floating offshore wind power turbines
oscillate due to the force of the waves and tide and, in this harshenvironment, the submarine cables also need to be able to move
dynamically in response. By bringing all Furukawa Electric’s
accumulated cable technologies to bear, we have developed theworld’s first 66kV ultra-high voltage riser cable system. As theexperimental study project enters its second phase of construction,
we have delivered the special high-voltage riser cable manufactured
at our Chiba Works. Operation of the third generation facility is due
to begin in fiscal 2015.

Offshorewind turbine
Landing point

Marine substation

Intermediarybuoy

Submarine cables

Riser cable

Floating wind tower

Cable laying diagram

V2B power storage system, resolving unstable power output
Ever since the 2011 Great East Japan Earthquake,
electric power generation and transmission systems
that remain strong and self-sustaining even during alarge-scale disaster have been examined nationwide.
In an industry-academic-government collaboration
with the University of Tokyo and others, Furukawa
Electric is part of an innovation model creation projectto accelerate the sustainable development of disasteraffected under-populated areas, and in March 2015
conducted a demonstration test of our V2B (Vehicle to
Building) power storage system in the devastated townof Otsuchi, Iwate Prefecture.
We installed a power storage system at Otsuchi
Community Place and supplied it with electricity fromsolar panels and electric cars, and conducted ademonstration test assuming a 72-hour power outage.
We s i m u l a t e d t h e e x p e r i e n c e o f u s i n g a T V,
smartphone, etc. to be able to get accurate up-to-date
information, using LED lights and oil heaters to ensure
safety and security, and using monitors and computersat town meetings to help people in the community.

V2B system
visualization
screenSolar panels

Features of V2B power storage system – Self-sustained operation mode
V2B power storage system
Furukawa Electric

Solar power generation & charging
Simulated power
outageEV stand

Otsuchi Community Place

EV carStorage batteries used on rainy days or at nightV2B power storage
system (with built-in
storage battery)Can supply electricity day and night!

Get
accurate
information

Successful
demonstration test

Obtaining information from radio announcements(emergency power sockets)
Ensuresafety &security

Otsuchi Community Place and V2B power storage system

Using home appliances(emergency power sockets)

Help thecommunity

Town meeting during rain(storage battery)

Understandhow much solar
generated powerand storage battery
power is left

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 20159

Special Feature2

PalmiraColombia
SorocabaBrazil

Sao Paulo

Argentina

Curitiba
Berazategui

Efforts of FISA,Our South American Hub
Head plant

Main sales offices and plants

ProfileFurukawa Industrial S. A. Produtos Electricos, or FISA, Furukawa
Electric Group’s Brazilian arm established in 1974, has consistently
in v e s t e d h e a v il y in R & D a n d d e li v e re d t e l e c o m m u ni c a t i o n s
infrastructure and IT solutions. A front-runner in South America instructured cabling and optical network infrastructure, FISA has fivefactories in the region (three in Brazil and one each in Argentina andColombia) and its business is growing.

Sustainability-oriented product development
and environmental management
FISA pays attention to environmental
issues from the first stage of its productdevelopment, creating new products
based on the Restriction of Hazardous
Substances (RoHS), Low Smoke Zero
Halogen (LSZH), life cycle analysis, energy
and water saving, reduced emission ofgreenhouse gases, and its “MOTTAINAI”
waste-reduction concept of the 5 R’s —Recycle, Reduce, Reuse, Repair andRethink.
FISA’s own “Green IT” program also
p l a y s a v i t a l ro l e i n e n v i ro n m e n t a lconservation. Through the program, much

Latin American Economic Mission (August 2014)
From left: Mr. Kawazoe (then-Chairman of FISA), Mr.
Yoshida (Chairman of Furukawa Electric), Prime Minister
Abe, and Mr. Otake (Director of Furukawa Electric)o f t h e w a s t e p r o d u c e d b y F I S A’s
customers is disposed of properly,
preventing environmental and humancontamination by heavy metals anddioxins.
The program contributes to the threemain pillars of sustainability — Environment,
Society and Economy — and provides
benefits to participating customers too,
thereby generating new business
opportunities for FISA. By 2014, thep ro g r a m h a d e x p a n d e d t o i n c l u d ecustomers in Argentina and Chile.

The MOTTAINAI mark is FISA’s
original concept

Global strategy and business growth
FISA’s communications solutions are not only easy to install, theyalso exceed customer expectations by delivering optimum
performance and prompt service. This is verified by surveys
conducted among customers in Central and South America suchas Brazil, and leads to increased business profit. In this business

10

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

model, a series of partners including distributor, integrator, reseller,
installer, designer, and others all work together to provide thecustomer with the best possible communications solution, fromproject proposal to products, distribution, service and warranty.

Product Development and Environmental
Management considering Sustainability
Linking to the future

Raised Awareness and Satisfaction
among Employees

Circulating product life cycle

Driving Green IT Program- Environmental Quality Certification- Prevailing eco Products- MOTTAINAI Action

Global Strategy and Business
Growth In Global Market

Betterment of working environment
From satisfaction to commitment to engagement

Driving Solution Business around the world(Latin America, South-eastern Asia, Europe, North America)

Contribution to Society andProtection of Environment
Improving job satisfaction

Educational Activities for children inlocal society Reduction of greenhouse gases

Giving back profits to society

Expanding Global Business
FISA business cycle model

Contribution to society and protection of environment

FISA’s social contribution activities

The FISA program “Preparing Children for the Future” is not simply aboutteaching. It conducts activities that enable a better future for underprivilegedchildren by educating, guiding and giving them hope. Some of the children
living nearby work at FISA and other companies as trainees while still minors
and as full-time employees later. Of these youngsters, some receive an annual
scholarship to help them through technical school.
Apart from this program, FISA also conducts cultural-type social
contribution activities such as supporting books, stage plays and sports
events or providing backing for athletes. It has also conducted campaigns topromote and raise funds for blood donation and bone marrow donation
organizations. Another globally important contribution it makes is to manage agreenhouse gas emission inventory and conduct activities to contain andreduce such emissions.

Raised awareness and satisfaction among employees
Employees who feel satisfied at their company engage enthusiastically intheir work, enabling the company to conduct its day-to-day operations
more efficiently and deliver better quality products and services tocustomers, which all results in improved corporate performance. FISA
stresses the importance of satisfaction levels among its employees and has
developed and implemented employee satisfaction surveys since 2005.
Having identified where improvements are needed, it then introduces any
required measures throughout the company. It even repeats surveys
according to a PDCA cycle, calculating and analyzing the results before
taking further new measures. For the health of its employees, FISA
supports a street running team and swimming team and provides the latest
infrastructure for workers to enjoy doing sports. It also encourages
employees to take part in its choir and volunteer activities, part of its“Preparing Children for the Future” program.

Trend in results of employee satisfaction surveys(Average level of sense of achievement toward commitments
and level of participation)
（％）
90
80
70
60

63％

66％

72％

77％

76％

79％

79％

81％

55％

50
40
30
20
10
0

2005 2006 2007 2008 2009 2010 2011 2012 2014
*No survey done in 2013

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201511

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

（Billions of yen）
40

1,200
925.8
900

918.8

924.7

931.8

867.8

30

600

20

300

10

0

35.1
25.5
15.9

17.9

17.8

0
2010

2011

2012

2013

2010

2014 (FY)■ Operating income (Ratio to net sales)

2011

2012

2013

2014 (FY)■ Net income（Billions of yen）

（％）
6.0

20
12.2

4.0

10

3.8

3.6
2.7
1.7

2.0

0

－10

2010

2011

2012

2013

2014

(FY)

－20

－11.1
2010

2011

■ Net income per common share■ Return on equity

（Yen）

（％）
20

50

2012

7.4
25

17.30
5.07

10.42

7.94

0

－15.75

2010

2011

2012

2014 (FY)2013（Billions of yen）
75

54.9
37.1

41.5

30.8

15.7

10.5

－21.4

－20.3

18.9
18.0

10.0

0
－25
－50
－75

2010

2011

－21.4
－44.9

－40.3

2012

2013

－23.5

2014 (FY)

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

12

3.3

4.0

－20

■ Cash flows

252014 (FY)

－7.2

－25

50

2013

2.3

0

－50

7.4

0

2.1

1.9

5.6

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

－40

2010

2011

2012

2013

2014 (FY)Number of Group employees by region (Consolidated)(Number of employees)

29,76430,00027,853
27,76025,44925,000

As of March 31, 2015
North/SouthAmerica
7,179

Europe, other
493
Japan
10,70220,00015,00014,214 13,905

Total

10,83010,00046,134

6,181 7,900 7,179

10,702
5,239

5,000

523 492 462 493

02011 2012 2013 20142011 2012 2013 20142011 2012 2013 20142011 2012 2013 2014

Japan

Asia

North/SouthAmerica

Europe,other

Gender ratio of employees (Furukawa Electric)

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

5,000

1,000

335
4,000

Male
Female8% 318

7% 283

281

8%
3,000

3,653

2,000

92%

93%
0

2011

2012

2013

26

3%

700

92%

0

2014 (FY)

846

812

2012

2013

97%

97%

2014

1.68
0.93
0.71
0.52

2010 2011 2012 2013 2014

1.48

1.35

1.09

2010 2011 2012 2013 2014 (FY)Group companies in Japan
Furukawa ElectricGroup companies overseas(104 tons-CO2)(No. registered)

100

40.0

80

67
20.9

73

40.2
85

19.7

14

16
14

17

2010

2011

2012

50

100

40

80

30

60

20

40

35

10

20

2014

0
(FY)

0

42.2

43.1

91

97
24.3

23.9

11.3

20
0

(FY)

3.18

CO2 emissions

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

40

1
0

2011

Environmentally friendly products as a percentage of sales

60

2

828

97%

3.68
3.08

3

3%

3%

Male
Female

4

22

23

935
98%

3,307 3,154

5

MaleFemale8%800

Employee turnover rate by gender (Furukawa Electric)
(%)

2%

900

3,857

92%

19

Asia
27,760

(FY)

25
2013

24.2

41.8

43.2

45.2

13.7

13.0

15.5

16.5

16.2

24.6

24.4

24.9

24.7

21.8

2010

2011

2012

2013

2014

(FY)

(note) For the overseas CO2 emission coefficient, the coefficient for eachcountry under the GHG Protocol is used for purchased electricity,while the Japanese emission coefficient is used otherwise.

Total amount of waste matter generated

Energy consumption(1,000 kℓ)

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

450

80

400

70

350

184

300
250
200

79

76

194

76

76

150
100
50
0

Furukawa Electric & Group companies in Japan
Group companies overseas

60

201

50

23

32

31

38
23

40

74

30
20

165

163

149

137

119

2010

2011

2012

2013

2014

36

39

2010

2011

34

34

34

2012

2013

2014 (FY)

10
(FY)

0

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

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201513

Business Report
Percentage of net sales by segment (As of March 2015)
Services and Others

5.7 % 53.5 Billion yen

Telecommunications

16.4 %

155.2 Billion yen

Metals

14.2 %
133.7 Billion yen

Total

867.8

Energy andIndustrial Products(note 1)

Billion yen

Electronics andAutomotive Systems

31.1 %

293.2 Billion yen

32.7 %
308.2 Billion yen(note 1) Figures excludes intersegment transactions■ Net sales(Billion yen)

FY 2010

FY 2011

FY 2012FY 2013

FY 2014

Telecommunications

149.3

144.5

146.1

153.9

155.2

Energy and Industrial Products

253.0

272.2

265.7

298.9

293.2

Electronics and Automotive Systems

209.6

212.0

243.7

291.0

308.2

Metals

152.9

141.6

129.4

130.7

133.7

Light Metals (note 2)

209.0

195.6

185.0

96.6

0

Services and Others

37.6

36.5

37.0

44.1

53.5

Eliminations

-85.8

-83.6

-82.3

-83.4

-76.0

Total

925.8

918.8

924.7

931.8

867.8

FY 2010

FY 2011

FY 2012FY 2013

FY 2014■ Operating income(Billion yen)

Telecommunications

9.6

4.1

1.9

7.8

5.7

Energy and Industrial Products

0.9

-0.8

2.0

1.7

4.3

Electronics and Automotive Systems

7.8

5.1

9.3

14.0

12.9

Metals

3.2

-0

-1.3

-3.1

-4.9

Light Metals (note 2)

11.5

5.7

4.4

4.4

0

Services and Others

2.3

1.7

1.5

0.4

-0.1

Eliminations

-0.1

0.2

-0

0.2

0.1

Total

35.1

15.9

17.8

25.5

17.9

FY 2011

FY 2012FY 2013

FY 2014■ Operating income (Ratio to net sales)
FY 2010
Telecommunications

6.4%

2.8%

1.3%

5.1%

3.6%

Energy and Industrial Products

0.3%

-0.3%

0.7%

0.6%

1.5%

Electronics and Automotive Systems

3.7%

2.4%

3.8%

4.8%

4.2%

Metals

2.1%

0.0%

-1.0%

-2.3%

-3.7%

Light Metals (note 2)

5.5%

2.9%

2.4%

4.6%

-

Services and Others

6.2%

4.7%

4.1%

0.9%

-0.2%

Total

3.8%

1.7%

1.9%

2.7%

2.1%

(note 2) Light Metals: Transferred to “profit/loss in equity method affiliates” under nonoperating income from the second half of FY2013 as aresult of the inauguration of UACJ in October 2013.

14

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Business Report

Telecommunications
Optical Communication is an Advanced Technology that Meets the Needs of the Communication
Age. Furukawa Electric Provides Diversified Support for Information-oriented Society.
Currently, the Internet Links the entire world, allowing
information from overseas to be obtained in real time,
not only in offices but also at home.
In this advanced information-oriented society, optical

Fiscal 2014 Main Topics
Apr.

Started demonstration tests on passive sensors
for disaster mitigation

communication systems are a key technology for(collaboration with NTT Data Chugoku and Nippon

enabling people to access important information easily.

COMSYS, Chugoku Branch)

Furukawa Electric is firmly supporting an ideal base forDeveloped and began to test new disastermitigating system that measures river water levels
and rain levels with sensors that use opticalfibers.
Cost is reduced to about 1/5 compared withexisting electrical sensor systems.

communication by providing various technologies andproducts that realize the “FTTH” project, in which
optical fiber networks are provided to homes.

■ Fiscal 2014 Settlement of Accounts

Kagamino Town Hall

Optical rain gauge

Consolidated sales
155.2 billion yen (0.9% up year-on-year)
Monitoring device

Consolidated operational profit
5.7 billion yen (27.6% down year-on-year)◆ Trends in overseas business and high-performance
products remain generally favorable•R enewed demand for optical fiber cables in North America
and Europe• Earnings
recovery in optical fiber exports due toweakening yen• Mobile
phone related construction in Thailand continues
to be lively• Growingsales of digital coherent products, the next
generation in optical communications

Optical water-level gauge

Measure and monitor
data collected by
optical rain gauges &optical water-level gaugesAug.

Established supplierof LAN solutions
products in Mexico-C ontributing to demandfor communications
infrastructure in Latin
America -◆ Tougher domestic competition in optical cables◆ Sluggish demand for network related products

Optical fiber cablemanufacturer started
operation in Colombia(Billions of yen)(Billions of yen)

144.5
144.5

146.1
146.1

153.9
153.9

MexicoMexico City

Cali

Colombia
Sao Paulo
Curitiba (Head plant)

BrazilBuenos Aires-C ontributing to communications infrastructure inAndes and Central America -

200
200

149.3
149.3

Measures water levels
in real time

Argentina■ Net sales

150
150

Measures rainfall
in real time

Optical fiber
network

155.2
155.2

*Also see Special Feature 2 “Efforts of FISA, Our
South American Hub”

100
100
50
50
0
0

2010
2010

2011
2011

2012
2012

2013
2013

2014
2014

(FY)
(FY)

10
10

9.6
9.6
7.8
7.8

8
8

5.7
5.7

6
6

4.1
4.1

4
4

1.9
1.9

2
2
0
0

Started production of small ITLA for ultrafast
400Gbps optical digital coherent transmission-L ess than half the size of existing type, reduced
power consumption -■ Operating income(Billions of yen)(Billions of yen)

Sep.

2010
2010

2011
2011

2012
2012

2013
2013

2014
2014

(FY)
(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201515

Business Report

Energy and Industrial Products
Using Total Technologies to Construct Advanced Power Networks while Meeting
the Needs for Energy Saving and Environmental Preservation.
Few things are as essential for our daily lives andindustries as electric power. Furukawa Electric has been
meeting the increasing electric power demand through“power transmission systems” and “power distribution

Fiscal 2014 Main Topics
Jun.

Package order for large-scale OPGW (opticalfiber composite overhead ground wire) project in
Newfoundland, CanadaAug.

Completion of ultra-high voltage riser cableinstallation for experimental studies of thefloating ocean wind farm for Fukushima

cables”. We are also actively responding to thedemands of the times for resource saving andenvironmental preservation. Furukawa Electric is
contributing to society by providing various leadingedge technologies such as superconductors and solar
generation systems, which are the focus of wide spreadattention as energy sources for the next generation.

■ Fiscal 2014 Settlement of Accounts
Consolidated sales
293.2 billion yen (1.9% down year-on-year)
Consolidated operational profit
4.3 billion yen (158.2% up year-on-year)◆F avorable sales of tape for manufacturing
semiconductors◆P ower cable business subsidiary in China received
increased orders for domestic use and for export. Profits
also improved in response to structural reforms■ Net sales*Also see Special Feature 1 “Renewable Energies”(Billions of yen)(Billions of yen)

300
300
250
250

253.0
253.0

272.2
272.2

265.7
265.7

298.9
298.9

293.2
293.2

Feb.

200
200
150
150
100
100
50
50
0
0

2010
2010

2011
2011

2012
2012

2013
2013

2014
2014

(FY)
(FY)

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

5
5

4.3
4.3

4
4
3
3
2
2
1
1

2
2
0.9
0.9

0
0
-10
-10

16

2010
2010

1.7
1.7

-0.8
-0.8
2011
2011

2012
2012

2013
2013

2014
2014

(FY)
(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Reorganization and reinforcement of overseas
power cable business
Basic agreement with Fujikura Ltd. and Viscas
Corporation to take over the underground power
cable and submarine power cable business from theoverseas operations of Viscas (investment ratio: 50%
Furukawa Electric, 50% Fujikura)

Business ReportElectronics and Automotive Systems
Themes Are Safety, Comfort, and Harmony with Environments. Furukawa Electric is
Challenging Transportation Possibilities Using Total Technologies.
In the field of transportation including automobiles,
trains, ships, airplanes, and H II rockets, Furukawa
Electric combines its proprietary material, electronics,
and mechatronics technologies to develop various
p ro d u c t s f o r m i n g c o m f o r t a b l e t r a n s p o r t a t i o nenvironments.

Fiscal 2014 Main Topics
Jun.

Established wire harness plant in Wuhan, China

Jul.

Company controlling SE Asia launched in
Bangkok, Thailand

In particular, in the field of automobiles, we offer
various electronic components and aluminum body

Established supplier of connectors for airbags in
Brazilmaterials including wire harnesses. Furthermore, we arechallenging advanced technologies such as ITS* )systems and has established a firm status as an
indispensable supplier for the automobile industry.
*) ITS: Intelligent Transport Systems■ Fiscal 2014 Settlement of Accounts
Consolidated sales
308.2 billion yen (5.9% up year-on-year)
Consolidated operational profit
12.9 billion yen (7.7% down year-on-year)◆G rowing sales of aluminum substrate materials for harddisks and heat exchanger parts for electronic devices
and rail cars
◆ In automotive components business, increased cost of
reimporting products from overseas plants due to impact
of weakening yen

SRC

Dec.

Jointly established lead storage battery plant inIndonesia

Jan.

Established supplier and developer of blanks foraluminum memory disks, basic agreement with
UACJ (April 1, 2015)◆R ising price of lead, a principle raw material of automobile
batteries, pushing down profits■ Net sales(Billions of yen)

350

291.0

300
250

308.2

243.7
209.6

212.0
Inside an HDD (Disk is shown circled in red)

200
150
100
50
0

2010

2011

2012

2013

2014

(FY)

■ Operating income(Billions of yen)

14.0

15

12.9

12
9

9.3

7.8
5.1

6
3
0

2010

2011

2012

2013

2014

(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201517

Business Report

MetalsConstant Challenges to Material Renovation and Development of New Materials are
Facilitating Unlimited Extension of Applications in Every Industry.

Over 130 years since its establishment, Furukawa
Electric has been constantly offering advanced
materials ranging from copper and aluminum materials
to wires and cables, as well as various related materials.

Fiscal 2014 Main Topics
Oct.

Constant challenges to material innovation are

Received order for superconducting cables for
ITER (International Thermonuclear Experimental
Reactor)facilitating creation of materials with new potentiality andunlimited extension of applications from familiar products
to the high technology field. These materials dramaticallychange our lives and the foundation of the industries.

■ Fiscal 2014 Settlement of Accounts
Consolidated sales
133.7 billion yen (2.3% up year-on-year)(Provided by ITER organization)
Top: Superconducting
material
Bottom: Cross-section ofsuperconducting cable

Consolidated operational profit-4.9 billion yen (¥1.9 billion worse year-on-year)◆ Improved productivity at Taiwan subsidiary in copper foil
business◆ At domestic copper foil plant, declining operations incopper foil for automobile lithium ion batteries due tosluggish demand for electric vehicles◆ Worsening profits in copper strip products due to impactof partial shutdown of operations at Nikko Works■ Net sales

Jan.

Restarted full production of copper strip products
at Nikko Works
Furukawa Electric’s Nikko Works suffereddamage, including a collapsed roof at partof its production plant, due to record
snowfalls in Nikko, Tochigi Prefecture in
February 2014. A partial shutdown of its
copper strip product operations was
unavoidable.
In spite of the heavy damage, they wereable to restart full operations within just 10.5
months thanks to the support and efforts ofvarious related parties.

(Billions of yen)

200

152.9
150

141.6

129.4

130.7

133.7

100

Copper strip products

50
0

2010

2011

2012

2013

2014

(FY)

■ Operating income(Billions of yen)

4
3

3.2

2
1

0

0
-1

-1.3

-2
-3

New raw strip plant

-3.1

-4
-5

-4.9
2010

18

2011

2012

2013

2014

(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Lead frames for electronic
devices

Business Report

R&D
Furukawa Electric Group will Mobilize the Group’s Abilities and Contribute to Society with
its Material Technology Based Around the Theme of “Using Technology Acquired Throughour Material Capabilities to Help Realize a Society that is Comfortable for Living.”
Our R&D division, to activate our development capabilities, will concentrate and integrate various technologies now
scattered among different departments and subsidiaries and affiliates. By using our research laboratories in the UnitedStates and European Union as a foothold, we will promote the internationalization of our research and development
projects.
In addition to such activities, we will aggressively promote Open Innovation by cooperation not only with universities
and public research institutes, but also with industrial companies.

■ New R&D organization on Nov.16, 2014C
 hange from classification by products to classification by research stages (basic research / development of essential
technologies / product development

New materials and new technologies
Advanced Technologies
R&D Laboratories (Yokohama)Core technologies
Highfrequency
electronics

Research on advanced technologies
Carry out research on advanced technologies with great
hidden potential even if there are risks involved, and prepare
for future growth in new business domains.

Laser
OpticsLaboratories for Fusion of Core Technologies (Yokohama)

Research on fusion of technologies
Create new value through the fusion of coretechnologies.
Apply technologies with distinctive
characteristics to a wide variety of businesses,
without being limited by current business areas.

Polymers

Automotive
technologies

MetalsInfrastructure technologies

Automotive Products & Electronics Laboratories(Hiratsuka / Nikko / Shiga)

Telecommunications & Energy Laboratories(Chiba / Hiratsuka)

Research on focused businesses
Focus on research and development in current target areas (automotive / infrastructure)

OFS laboratories (USA: optical fibers)
FETI (Hungary: analysis)
SuperPower Inc. (USA: superconductivity)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201519

Management

Corporate Governance
Basic Views on Corporate GovernanceFurukawa Electric has established the following basic views on corporate governance.

Based on the “Furukawa Electric Group Corporate Philosophy”, Furukawa Electric Co.,
Ltd. and the Furukawa Electric Group secure the transparency and fairness and strive toenhance its performance by promptly responding to changes in the business environment
and the market through efficient management based on prompt decision making. At thesame time, 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 throughthese efforts. In accordance with the following views, we seek to strengthen and enhance
our corporate 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 roles of independent directors important and carries out effective oversight ofoperation from objective standpoint.
v.	We engage in constructive dialogue with shareholders who have investment policies
in accordance with interests of mid- to long-term shareholders.

20

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Management

Corporate governance organization chart
Shareholders’ Meeting

Monitoring and Supervising

Appoints

Audits account

Board of Directors

Submits reports

12 Directors(4 outside directors including 2 independent directors)

Consults andCommits
Submits
proposals
andreports

Nominating /Compensation
Committee

CSR and Risk
Management Committee

Appoints

Appoints

Audit & Supervisory
Board

Submits reports,
attends meetings
and audits

Accounting
Auditors

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 Group Management Division ・Finance & Procurement Division
・Strategy Division
・Research & Development Division
・Administration & CSR Division ・Production Technology Division

Provides support and guidance

Operations
Telecommunication
Solution Div.
・Optical Fiber & Cable
Products Div.
・FITEL Products Div.
・Broadband Products Div.

Automotive & Electronics
Material Business・Electric Conductor Div.
・Magnet Wire Div.
・Copper & High Performance
Material Products Div.
Functional Component Business

・Automotive Products Div.
・Power Cable Div.
・Industrial Cable & Power
Cable Accessories Div.
・Copper Foil Div.

・Functional Plastics Div.
・Thermal Management
Solution & Products Div.
・Memory Disk Div.
・Copper Tube Div.

・Sales & Marketing Div.
・Global Business Strategic
Initiatives Div.

Affiliate companies

As of June 24, 2015

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201521

Management

Process of Determining Officers’ Remuneration
and Avoiding Conflict of Interests

1) Efficient Execution of Responsibilities
After setting concrete management goals for the
Medium-Term Management Plan and over the course of

At Furukawa Electric, the policy on officers’

the fiscal year, all those responsible for operational

remuneration and details of each officer's remuneration

performance execute their responsibilities toward

are determined by the Nominating/Compensationachieving these goals and regularly report their progress

Committee consisted the majority of the committee

to the Board of Directors.

comprising outside directors, based on the delegationfrom the Board of Directors in order to ensure objectivity
and transparency of the decision-making process.

2) Compliance System
Upholding the basic philosophy of compliance with

In addition, in the case where Directors conduct

ethics and prevailing laws as laid out in the “Furukawa

transactions involving a conflict of interests, they must

Electric Group Philosophy” and the “Furukawa Electric

be based on approval at the Board of Directors’ meetingGroup CSR Code of Conduct”, we, with the President

as required by law.

assuming the highest responsibility, promote complianceactivities including in-house education and efforts toprevent and detect legal violations through our CSR and

Remuneration policy of Company’s officers
T h e re m u n e r a t i o n o f o ff i c e r s s h a l l b e
determined in a way that encourages each
officer to exert his/her abilities to the maximum
level and proactively fulfill his/her duties, sothat the Company Group will increase its
corporate value and achieve sustainablegrowth while contributing to society through its
business activities.
 irectors excluding outside directors are paid-Dmonthly remuneration and performancelinked remuneration. Monthly remuneration isa monthly cash payment of an amountdetermined according to contribution to theCompany, etc. based on a standard amountfor each title. Performance linked
remuneration is an annual cash payment of
an individually specific amount determined byallocationg the total amount to be paid
calculated based on consolidated net income
each fiscal year according to position. In
addition, according to Company's situation,
they are paid bonus based on a resolution ofshareholders’ meeting.
-O utside directors and Audit & Supervisory
Board Members are paid a certain monthly
remuneration depending on their titles, etc.

Risk Management Committee, which is under theimmediate control of the Board of Directors, and theAdministration & CSR Division. We also have an Internal
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 management method in the “Basic Regulations on
Risk Management and Internal Control”. In addition, we
have established a system in which the CSR and Risk
Management Committee, chaired by the President,
grasps an overall picture of the risks associated with thebusiness operations of Furukawa Electric Group anddetermines effective methods for evaluating andmanaging these risks.
4) Information Management System
We appropriately manage and store records anddocuments related to important decisions, in compliancewith prevailing laws and internal rules. With respect toother information related to our operations, theInformation Security Committee establishes uniform
standards and operates an information management
system.
5) Group Company Management

Reinforcing Internal Controls
Furukawa Electric establishes, develops and operates
its internal controls based on the following principles:

In accordance with the “Regulations on GroupManagement Control”, administrative managers ofindividual subsidiaries shall be appointed, and they shallrequire own subsidiaries reporting subsidiaries’ businessconditions on a regular basis, and offer management
guidance to subsidiaries. Predetermined matters shall

22

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Management

require approval of us. We also carry out a mid-term
management plan and budgets for single fiscal years,
risk management, and compliance as Furukawa ElectricStrengthening of Corporate GovernanceWe invite outside officers from different business areasin the hope of obtaining contributions to management

Group.

based on their diverse knowledge, experience and6) Securing Appropriateness of Financial Reporting

capacities. We also established a compensation

Based on the “Basic Regulations on Risk

committee comprised of four members including two

Management and Internal Control”, we will establish theoutside officers in May 2010 to deliberate and decide on“Furukawa Electric Group Basic Philosophy for the

remuneration for directors, etc. In this way, we havedevelopment and evaluation of an internal control

been implementing corporate governance as our

system, to ensure the appropriateness of financial

priority. To strengthen these systems, we establishedreporting (J-SOX Core Policies)”. At the same time, thethe Nominating/Compensation Committee, replacing thesystem and responsibilities shall be clarified for theformer Compensation Committee upon our board's

system’s construction, development, operation, anddecision on May 11 2015. Through the majority of themonitoring.

committee comprising outside directors, we secure theobjectivity and transparency as to nominating andremuneration for directors. In addition, we established

Takeover Defense Measurescriteria for an independent officer. Going forward, toward

Following the approval by the 191 ordinary generalstmanagement focusing on capital efficiency, our board,

meeting of shareholders held on June 25, 2013, Furukawa

with input from outside directors, will continue to discuss

Electric Co., Ltd. has renewed its countermeasureson our capital policy balancing among growth and future(takeover defense) against large-scale purchases of the

new business investments, improvement of balanceits shares. The term of this takeover defense will expire

sheet and returns to our shareholders and we will reflectin three years at the conclusion of the ordinary generalthe discussion in the next mid-term management planmeeting of shareholders to be held in June 2016.

s t a r t i n g f ro m f i s c a l y e a r 2 0 16 . W i t h t h e f u l l y

For further details, please refer to “the Notice of theunderstanding of the aim and spirit of the corporate

Renewal of Countermeasures (Takeover Defense)

governance code, we will further strengthen our

Against Large-Scale Purchases of the Company's

corporate governance.

Shares” (PDF file) the news release published on thecorporate governance of the company’s website on
April 11, 2013.

Corporate governancehttp://www.furukawa.co.jp/english/kaisya/management/governance.htm

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201523

Management

CSR Management
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 will continue
to keep our eyes on the future as we work to live up to the expectations and trust invested in us by 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.

Basic Policy and CSR Code of Conduct
Each of the companies in Furukawa Electric Group develops CSR activities in line with the following Groupbasic policy.

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 and endeavor tocreate social value through technological innovation, complying with laws, social norms, andethics as a member of the international community.
・We will strive to maintain and build sound and friendly relationships with all of our stakeholders
and contribute to the sustainable development of society.

24

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Management

The CSR Code of Conduct defines fundamental rules

The Furukawa Electric Group CSR Code of Conductof behavior for Furukawa Electric Group executives and（Revised March, 2011）

employees to follow in conducting corporate activities
based on the Group philosophy and from the

1. Human rights

perspective of corporate social responsibility.

2. Working conditions and environment
3. Environment
4. Products and services
5. International businesses and transactions
6. Fair competition
7. Relations with customers, partners, and society
8. Management and preservation of Company assets
9. Disclosure of information
10.	Duties and obligations of senior management
and employees(Japanese)(English)(Chinese)
CSR Compliance Handbook

CSR
http://www.furukawa.co.jp/english/csr/index.htm

Basic Approach

CSR Promotion Framework

In order to contribute to the realization of a truly rich

Furukawa Electric Group has established the CSR

and sustainable society, we need to understand theand Risk Management Committee, which comprisessocial responsibilities of Furukawa Electric Group andmembers of management, as the structure for

implement policies in line with the Basic CSR Policy. We

supervising and promoting CSR activities throughout thewill 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 promotes CSR by facilitating
communication among various committees andcorporate departments.

Promotion
Framework

Board of Directors
Submit proposals and reports

President

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

Each corporate
department

Promotion / Support

other

Business divisions (internal + Group companies)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201525

Management

Stakeholder Relations
Environment

F u r u k a w a E l e c t r i c G ro u p p ro p e r l y

Customers

monitors our business practices andendeavors to establish structures for
improving them even more, so as to steadily

Localcommunities

Furukawa
ElectricGroup

meet our responsibilities to our various
stakeholders, who view us from differing
perspectives.

Employees

Main Stakeholders

Main Responsibilities

Environment-R educe emission of gases that contribute to global
warming- Promote
energy conservation and recycling-P rotect biodiversity-C urtail industrial waste- Manageand reduce harmful chemical substances

Customers

Suppliers

Suppliers

Shareholders

Means of Communication-C ompliance with laws and regulations- Compliancewith the Kyoto Protocol and the
Nagoya Protocol on biodiversity-R esponse to environmental activities of the
Ministry of the Environment and other governmentorgans-R esearch and information exchange on
biodiversity preservation through JBIB (note 1)-M aintain and improve the quality of products,
operations and services-O ffer products and services that are useful tosociety-D ialogue through regular business-P rovide solutions to issues confronting customers
through a broad array of technologies and knowhow-D ialogue at technology exhibitions, trade shows-E stablish a sound relationship founded on fairtrading in compliance with laws and regulations-P artner Meetings-R ealize CSR throughout the supply chain byimplementing CSR Deployment Guideline for
Business Partners-C SR surveys-W ebsite, Sustainability Reports-D ialogue through regular business- Feedbackinterviews on results of partner
evaluations-S ustainability Reports

Shareholders-P rovide appropriate returns-E nsure timely and appropriate disclosure-E nhance corporate value- Generalmeetings of shareholders, shareholder
reports-M anagement briefings and results presentations- I nvestor visits-S hareholder plant tours

Employees-R espect human rights-C ultivate and appropriately value and reward
human resources-P romote health, including occupational health andsafety, as well as mental health- I nternal newsletter, intranet-M anagement briefings- Support
diverse workstyles and work/life balance

Localcommunities-F actory tours-N urture future generation-P romote sporting and cultural activities- Cooperatewith and sponsor sports and traditional
events-L ive in harmony with the natural environment andlocal communities- Support
the activities of and collaborate with local
NPOs-P reserve the Satoyama Environment(note 1) JBIB:Japan Business Initiative for Biodiversity. Founded in 2008, the JBIB is a joint effort by Japanese companies to act on behalf of biodiversity preservation.

26

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Management

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

Achieved

FY2014

Not achieved

FY2015

Targets

Promotion of global compliance-D evelop training content
targeting the whole group, etc.

Partially achieved

Results / Achievement

Targets- Integrated the anti-monopoly act manualfor Japan into our Group’s Competition
Law Compliance Guide and distributed it
to each company
1

Confidential

FEG Competition Laws Compliance Guide Second Edition

1

对外

版

保密

ド第２

スガイ
イアン

ンプラ

古河

争法コ

电工

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竞争

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规指

古河電

南第

Furukawa Electric Group

社外秘

古河

競争

ープ

プライ

アン

Competition Laws
Compliance Guide

イド
スガ

法遵

守の

ため

の４

竞争

Competition Laws Compliance Policy

原則

(2014

数量

年8

など

月改

の情

訂)

遵守

1. Never exchange information on sales price, output or othercommercially sensitive information with competitors.

換をRightsReserved, Copyri

ght© FURU

KAWA

ELECT

RIC

CO.,

LTD.

集团

规指

版

南

法的

4 原则
不与
同行
(201
方面
业企
4年
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8 月修
息。
间交
订)
２．
换任
不与
何有
同行
关销
接触
业企
售价
。
业进
格和
行可
３．
数量
能被
需要
等
认为
出席
违反
申请
与同
竞争
和事
行业
法的
后的
企业
４．
会面
聚会
高管
聚会
与
内容
的聚
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报告
会时
表明
如发
制度
，严
不参
生可
。
报告
格遵
与的
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。
守事
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前
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及串
出，
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行为
法务
时，
及合
规部
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3. If you need to attend a meeting with competitors, obtain
permission to attend the meeting from appropriate authorities
within your company in advance and report the result thoroughly.
4. If any improper discussion which you suspect as cartel or bid
rigging is initiated at the meeting, explicitly state that you have nointention to participate in such conduct and leave the meeting
immediately. Such "solicitation to participate in a cartel" must bereported immediately to your company’s Compliance Department
and the Legal Department.

古河

All Rights Reserved, Copyright © FURUKAWA ELECTRIC CO., LTD. 2015

All

竞争

１．

2. Do not have meeting or communication with competitors where
violations of Competition Laws may be speculated.

格・
接触
売価
会・
、販
の面
間で
社と
との
業他
。
他社
る同
ない
同業
た
たれ
行わ
生じ
が持
一切
要が する。
疑い
る必
反の
徹底
席す
法違
告を
に出
の
い。
競争
後報
会合
それ
わな
の事
との
るお
は行
内容
職員
ない
当す
に
及び
加し
の役
に該
部門
に参
申請
他社
談合
ル・
それ イアンス
事前
同業
は、
は、
ルテ
３．
プラ
、カ したとき
場合
いて
・コン
ようと
にお
し、法務
われ
など
退席
が行
会合
ちに
行為 、直
４．
ある
告げ
。
旨を
する
報告

２．

电工

法合

第２

(Revised in August 2014)

報交

2版

1

古河

Second Edition

法コン 第２版

競争
１．

電工

グル

电气

2015

All

RightsReserved, Copyri

ght

工业

© FURU

KAWA

株式

ELECT

RIC

CO.,

会社

LTD.

2015

Strengthen business continuity
management (BCM)-B
 ased on the lessons learned
from the Nikko snow damage,switch from existing BCM
activities, which focus on ourown company, to activities
that focus on the customer’s
perspective.

-R eviewed the existing BCP with a focus
on divisions that suffered snow damage
in Nikko

Respond to risks in newlyemerging economies andstrengthen support for overseas
subsidiaries-S trengthen training in countries
with newly-emerging economies
and provide management
support tools to affiliatedcompanies.

-C onducted compliance seminars for local
affiliate managers in Southeast (Thailand)
and China (Shanghai)

Give direction to priority fields
in CSR activities- Hold stakeholder
communication

Develop a system for the
globalization of legal andcompliance functions-W ith a scenario of unforeseen events notdescribed in the BCP, implemented an
emergency headquarters drill with thepresident as headquarters manager, andreconfirmed the roles of each division-C onducted local law complianceseminars for local staff in China (Tianjin
and Shenzhen)-U pgraded the Furukawa Electric Group
Business Management Handbook forGroup companies-R eview and implement
compliance education in China
and Southeast Asia

Reconstruct business continuity
management (BCM)-S upport the construction of abusiness environment-based
practical structure

Support the improved
effectiveness of internal control
in overseas affiliates- I mplement J-SOX re-educationand help to set up effective
internal control in Southeast Asia-C
 onducted discussions with local affiliate
managers and employees on CSR (inconjunction with compliance) activities
taking advantage of sustainability reports
and group training

Message from the General Managers
Takashi Fukuda
General Manager, CSR Department,
Administration & CSR Division

Nowadays, companies are
required to respond to a
rapidly changing world with avariety of stakeholders in
mind. As Furukawa ElectricGroup sets about this task,
CSR activities are an essential
par t of our sur vival as abusiness. Furukawa ElectricGroup has set out a basic
policy and code of conduct
for CSR in accordance with agroup philosophy that seeks
to meet the expectations of
our founder, in addition todeveloping a variety of related
systems and mechanisms. In
future, we will check that
updated systems arefunctioning effectively in theworkplace while supporting
improvements to operational
problems.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201527

Management

Risk Management
Overview of the Risk Management Structuremaps. Preparing emergency route maps for employees
to get home after an earthquake becomes clear as a

Our CSR and Risk Management Committee conducts

problem, so we introduced emergency route map-

regular risk assessments to determine what risks exist,

making software and are asking all employees to create

define important risks that require a companywide

their own emergency route map, and carry them at all

response and prioritize measures to counter these risks.

times.

Through specialized committee activities in segmentspecific areas—environment, quality, safety, disasterprevention—we are working to manage the risks that
relate to our business activities.

Important Companywide Risks• Compliance• Quality control•L arge-scale disasters, such as earthquakes• Information security• Affiliated company controls

Setup training of the emergency headquarter(Instruction of emergency headquarters manager Shibata)In the event a large-scale disaster occurs or othersuch risk materializes, the Group will establish
Emergency Response Headquarters, headed by thepresident, and Site Response Headquarters that defines
each department's roles and clarifies them ahead oftime. We also conduct regular exercises on preparing
initial action manuals, stockpiling necessary supplies,
and setting up communication structures and systems
to confirm people's safety.

Setup training of the emergency headquarter(Information control at headquarters secretariat)

BCM (Business Continuity Management)
Having reflected on the inadequate handling of the28

Information Security

snow damage that occurred at Nikko Works in February,

Information security is considered one of the highest-

2014, we conducted BCM drills in 2014 on the theme ofpriority risks the Group has to handle. Therefore we

revealing risks not described in the BCP (Businesspromote various countermeasures through intergroupContinuity Plan). After setup training of the emergency

collaboration by exchanging information among the related

headquarter, president and emergency headquarters

divisions, from the perspectives of protecting information

manager Mitsuyoshi Shibata told headquarters

systems and intellectual property as well as information

employees to “act with more initiative so that they canmanagement. We continue our efforts to prevent

conduct better and quicker communication andinformation leaks by focusing on the management of

information sharing,” and improvements are made to

hardware (mainly mobile devices) taken outside the office

BCM activities to address this task. In the disasterand to manage IT assets through such measures ascontrol headquarters drill at Head Office, where mostsoftware license management. We provide Furukawa

employees would have difficulties in returning home after

Electric Group with educational materials and informationa large-scale earthquake, we conducted a DIG (Disasteron the revisions of information security-related laws such

Imaginating Game) using commercially available street

as the Act on Prohibition of Unauthorized Computer

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Management

Access, the Unfair Competition Prevention Act (namely

extending our intellectual property activities worldwide,

trade secrets) , and the Act on the Protection of Personalpromoting intellectual property awareness within the

Information. In our aim for ongoing improvement, we solicit

Group through education on intellectual property rights

feedback from divisions promoting these activities. In fiscal

and information on intellectual property risks.

2014 we reviewed our security policy on information
systems for Group companies, and are conducting Groupwide upgrade activities including diagnostic visits fornecessary companies.

Challenges and Future Policy
Following our international business development, risks
that Furukawa Electric Group faces are becoming more

Protection of Intellectual Property

diversified and complicated each year. We particularly
recognize that risks inherent in overseas operations―

Furukawa Electric conducts strategic and efficient

mainly in emerging countries―and risks from the supply

intellectual activities in line with our business andchain standpoint are our top priority issues, and we willdevelopment strategies. As well as strategicallybe strengthening our countermeasures against them. For

developing intellectual property rights based on patentexample, our Global Group Management Division

portfolio management that recognizes trends among rival

provides support and information for Group companies

companies, we also encourage risk hedging such as

including creating the Furukawa Electric Group Businesspreventing technical leaks by technology confidentiality

Management Handbook for them in order to reinforce

and protecting our prior user rights. We are also

global risk management.

EICC Code of Conduct Audit
The EICC (Electronic Industry
C i t i z e n s hip C o a li t i o n ) w a s
founded by a group of leading
electronics companies, and its
EICC Code of Conduct is used
as a global CSR code of
conduct by many corporate
customers in Japan andoverseas. Furukawa Electric has
Keita Yoshimura,
been promoting company-wide
Assistant Manager
Production Dept., Memory activities toward compliancewith this code of conduct, theDisk Division
Memory Disk Division also has
been pushing forward the activities in an own section.
Nevertheless, the memory disks manufactured by this division
eventually find their way into computers and other devices allover the world, and demands regarding CSR management
activities from customers who have been directly supplied byour company are increasing year by year. To respond to suchdemands, it has become necessary to make the PDCA cyclein our CSR management activities more reliable by undergoinga third-party audit, our division performed first in the Furukawa
Electric Group in August 2014.
The audit targeted an extremely broad range of fields: labor,
health and safety, environmental, ethics, and management
system. The audit also included some requirements that were
so strict as to be beyond the general norm for Japanesecompanies, and even we were initially puzzled and wondered
whether global standards were really that demanding.
Nevertheless, by communicating closely with the related
divisions, affiliate companies, and partner companies, wemanaged to complete the audit without a big trouble. We are
currently conducting ongoing improvement activities related tothe audit findings. In future, we expect a further rise in demand
for CSR management with a more reliable PDCA cycle in our
CSR activities. In our division, we intend to deal with this byfurther upgrading our own activities. We also hope tocontribute to raising the standard of CSR management
activities throughout the entire company by proactively passing
on information about CSR audit experiences to other related
divisions who are expanding globally.

Members who received the EICC audit

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201529

Management

Complianceconduct groupwide compliance education.

Basic Approach
Furukawa Electric Group regards compliance as “notEducation Results (fiscal 2014)

only observing laws and regulations, but also as acting in

Course Name

TargetParticipants

accordance with the values and ethics required of theTraining forexecutives

Newly appointed
executives

30

Training for
managers

Newly appointed
managers

61

Training for
managers
and assistantmanagers

Newly appointed
managers
and assistantmanagers

85

Training for new
employees

New employees

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

About 360

Subcontractor Law

About 360

Security trade control

About 800

company and its employees as responsible members ofsociety”. Each and every employee is encouraged toperform day-to-day compliance activities in line with ourthree musts for compliance activities: to “be aware”,

Hierarchybased
education(note 1)

“speak” and “rectify”.

Three Musts for Compliance Activities

Speak
Be aware
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
requirements and expectations?
2) Speak・Do not neglect it.
・Talk about it openly.
・If still not sure, take it to your boss.
3) Rectify
・As soon as you become aware of it, fix it.
・Always improve.

Themespecificeducation(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.

Initiatives in Compliance Months
Furukawa Electric Group has designated October andNovember as Compliance Months, during which we
implement measures aimed at tackling the variety ofcompliance issues faced by companies across our Group.
Principal Initiatives during Fiscal 2014 Compliance Months
Main Initiatives at Furukawa Electric
1C
 onduct workplace self-checks according tosection-specific checklist<Section-Specific Checklist>
1) Anti- Monopoly Act, 2) Worker Dispatching Act
3) Subcontracting transactions, 4) Occupational safety
5) Asset protection, 6) Information security
2 Conduct workplace meetings

Training and Raising Awareness among
Employees

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

We conduct a host of training and awareness activities
in the aim of instilling compliance awareness among all
employees. Our primary shared educational materials are
the Furukawa Electric Group CSR Code of Conduct and30

Employee Compliance Awareness Surveys
We have continued to implement compliance awarenessits corresponding Furukawa Electric Group CSR

surveys at Furukawa Electric and affiliates in Japan.

Compliance Handbook. We distribute this handbook to

Designed to gauge employee awareness andFurukawa Electric Group employees and take many

understanding of compliance, these surveys aim toopportunities to make use of it. We conduct complianceencourage recognition of compliance. Feedback is given

education for employees at every level of the Company,on the results of the survey to our Group companies andfrom new recruits to directors. At the same time, we holdFurukawa Electric divisions, and the results are used totheme-based group training and e-learning courses, andmake proposals for compliance measures at each

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Management

organization. In fiscal 2014, we made improvements
such as adding questions related to personnel measuresand conducted the survey as an “employee survey”.

Internal Reporting System
Furukawa Electric Group has introduced an internalreporting system and works toward the early detection
and correction of incidents of corruption. The Company

China compliance seminar
In fiscal 2014, we conducted group-type complianceeducation to teach about local laws and customs. We
held seminars in December at Tianjin and Shenzhen on
the themes of competition law and corruption controls.
About 60 staff, mostly Chinese, attended lectures bylawyers in Chinese and Japanese and took part indiscussions on compliance.

has in place an internal reporting desk as well as anexternal reporting desk that makes use of outside thirdparty institutions (the Furukawa Electric Group Hotline),
both of which allow employees to make reports

Challenges and Future Policy

anonymously. An internal reporting secretariat manages

Regarding the various legal compliance measures wethe content of such reports stringently, taking ample

have taken to date, we recognize as a Group that ourcare to prevent people making such reports fromtask is to expand the scope of participation of Groupsuffering any negative impacts, looking into issues swiftlycompanies. To this end, we will try to raise complianceand taking appropriate action.

awareness by focusing on more effective education
content with a Group perspective and enhancing its

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

global implementation system. We will also resume more
compliance seminars on local laws, languages andcustoms, while encouraging individual initiative under theslogan “Think and conduct compliance together”.

company with global business operations. In accordancewith the laws and regulations that make up the internationalframework on security trade control (the export control

Non-compliance and corrective action

regime), we have improved and strengthened our

Furukawa Electric Group has since 2008 incorporated
the opinions of external experts in an attempt toeradicate violations of the anti-monopoly law andcompetition law. In April 2014, we and VISCAS
Corporation, one of our equity method affiliates, filed arequest to the European General Court to revoke orreduce the penalty previously imposed on us by theEuropean Commission for a violation of EU competition
law in the electric cable business.
We apologize deeply to everyone concerned for theconsiderable worry and inconvenience caused by thiscartel issue.
In January 2015, we revised our Competition Law
Compliance Guide (English, Chinese, and Japaneseedition), which is used as education material for
promoting global compliance, and distributed it to allcompanies in our Group. In response to the recent
tightening of regulations in various countries and regions,
including not only anti-monopoly laws and competition
laws but also anti-bribery and other legal areas, we will
work toward full compliance and the restoration of trust
by expanding activities throughout the Group such asenhanced training for executives and employees andstricter monitoring by our Internal Auditing Division.

management systems for cargoes and technologies thatcan be converted to weapons or military uses. In exporting
products and providing technology, we conducttransaction screenings based on our Security Trade
Control Regulations to ensure compliance with relevant
legislation and are careful to prevent circumvent tocountries of concern.

Anti-Bribery
Furukawa Electric Group formulated the Furukawa
Electric Group Anti-Bribery Statement in April 2012. In
December, we published the Furukawa Electric Group
Anti-Bribery Guide, and we are promoting activities toward
creating a groupwide bribery risk management system.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201531

Initiatives for 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 Groupby 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 ouroperations and put our management policies into practice.

Organizations for Improving Quality
Furukawa Electric has established Furukawa Electric Group Quality Management Committee, which is chaired by thepresident, as the topmost body for promoting quality management at the Group level. Directed by this committee,
Divisional Quality Management Committees led by divisional heads promote ongoing efforts to maintain or improve thequality of our products, customer services and operations.
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 Production Technology Division
Members :Quality Promotion Department
Divisional Representative Quality Management

General managers of each business division

Affiliated companies

Representative Quality Management
Divisional Quality Management Committees

Targets and Results (Quality)

Achieved
FY2014

Targets

Strengthening of fundamental
Quality Power-R
 educe “failure costs” by 10%
from fiscal 2013

Not achieved

FY2015Results / Achievement-S tarted a Quality Strengthening Project toselect and promote key themes from thequality improvement activities previously
done by divisions.
-D id not achieve objective in the end, but
took significant measures equivalent to
7% of Furukawa Electric’s own internal
failure costs for fiscal 201432

Partially achieved

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Targets

Strengthening of fundamental
Quality Power- R
 educe “failure costs” by 10%
from fiscal 2014

Initiatives for Society

Efforts to Reduce Failure Costs
The Quality Strengthening Project activities started
in fiscal 2014 are team activities conducted on key
themes related to failure costs selected by divisions
and the Quality Promotion Department.
There were a total of 16 themes in fiscal 2014, with
24 events for executives held to promote activities.
At the end of the fiscal year, we also held a factfinding presentation event in Quality Strengthening

Letter of thanks received from Central
Japan Railway Company (JR Central)F

urukawa Electric received a certificate ofappreciation from the Central Japan Railway
Company (JR Central) at its ceremony marking the50th anniversary (on October 28, 2014) of the Tokaido
Shinkansen in recognition of our significant contribution
to the safe and stable operation of that line.

Projects in order to share examples of improvements
within the whole Group, including our affiliatedcompanies.

Challenges and Future Policy
In fiscal 2014, we engaged in strengthening our monozukuri (manufacturing) capability and set about reducing ourGroup-wide failure costs as a priority goal. Our fiscal 2014 objective was the assessment of Furukawa Electric’s
separate “failure costs” (= failure costs/sales ratio), but we did not achieve this objective.
Meanwhile, collating and studying the results of our Quality Strengthening Project activities has highlighted our shared
weaknesses.
With the strengthening of these weaknesses in mind, we intend to continue our Quality Strengthening Project
activities and subsequently develop a Group-wide plan (or concept) for resolving quality problems.

Message from the General Managers
Kazuhisa Kashihara
General Manager, Quality Promotion
Department, Production Technology Division

In accordance with our basic
policy on quality control, we
promote a continuous factbased management cycle atevery stage from research anddevelopment to production,
sales, service, and administrative
work, in every division, and at
every level, thereby maintaining
and improving quality.
To be able to create productsthat are attractive to customers,
we make thorough checks atevery process from productplanning through to the point ofsale.
Also, in order to put quality
into our products from the very
beginning and enhance ourability to complete production,
we promote activities that willraise quality throughout thewhole Group and strive toimprove the production processitself including the developmentof our own original technologies.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201533

Initiatives for Society

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

on the results of these evaluations and lessons learned
through our experience of the Great East Japan

In order to forge sound relationships with business

Earthquake, we requested ongoing cooperation frompartners through fair transactions that comply with rules

certain business partners on business continuity andand regulations, Furukawa Electric Group provides

stable supply initiatives.

training for employees on subcontracting transactions.
In fiscal 2014, in addition to continuing with the courses

In fiscal 2014, we evaluated some 150 business
partners and provided feedback to them.

we have conducted to date, we sought to ensure
thorough awareness of the content of the Act against
Delay in Payment of Subcontract Proceeds, Etc., to
Subcontractors (Subcontract Law).

Promoting CSR in Procurement Activities
Based on our CSR Deployment Guideline for Business
Partners, we engage in procurement activities with “fullPartners Meeting and Partner Evaluation Scheme

legal compliance and fair trading practices” and“consideration for human rights, safety and the

Furukawa Electric seeks to deepen awareness among

environment”. We are also continually providing

our business partners through regularly held Partners

encouragement at partners’ meetings by explaining theMeeting, where we explain the state of the Company,

state of our efforts to our trade partners, asking for their

our procurement policy and individual company

cooperation with our activities, and so on. In fiscal 2014,

management strategies. For fiscal 2014, this meeting

we expanded our CSR response questionnaire

was held in June and was attended by 90 main

conducted at companies undergoing partner evaluations

business partners.

to include trade partners undergoing our manufacturing

We also evaluate main business partners on the basis

site survey, mentioned below. As a result, about 650

of quality, technology, price, delivery system, degree ofcompanies responded that they had understandings ofsocial contribution and financial condition, and then holdthe activities of Furukawa Electric.

meetings to provide feedback on our findings. In
addition, we discuss
the results of our34

Supply Chain BCM (Business Continuity Management)

evaluations with them

Furukawa Electric conducts regular questionnaire

to more closely alignsurveys on its main partners about their BCM measures.

our awareness of

In fiscal 2014, we conducted our usual questionnaire

procurement activities.

along with a manufacturing site survey about where the

Furthermore, basedmaterials and parts delivered from our partners are

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Initiatives for Society

made. By entering the results received from our partners

sourcing of minerals, we will work with the Japan

into a database, we have become able to quickly

Electronics and Information Industries Association (JEITA),

identify which partners are mostly likely to be affected

an industry organization, on initiatives targeting theduring a natural disaster.

responsible sourcing of minerals.

Conflict Minerals (note)(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.

Regarding the handling of conflict minerals, ourapproach to responsible mineral procurement has been

Challenges and Future Policy

to comply with the code of conduct of the EICC

We want to fully grasp the state of our CSR activities(Electronics Industry Citizenship Coalition), including

along the supply chain by regularly asking our partners

setting a Group policy and informing other Groupto complete a questionnaire on their understanding ofcompanies and partners.

our CSR Deployment Guideline for Business Partners.

In fiscal 2014, we updated our data by repeating theWe will also seek to deepen BCM by giving

fiscal 2013 survey targeting the leading products ofencouragement to partners based on the results of our

Furukawa Electric and our Group companies. Going

BCM questionnaire and manufacturing site survey, withforward, in addition to requesting the cooperation of Groupthe aim of improving crisis response levels along thecompanies and our business partners in the responsible

entire supply chain.

Targets and Results (Procurement)

Achieved
FY2014

Targets

Strengthen strategic relationships
with partners (suppliers)-C ontinue to conduct partner
assessments-P romote awareness of CSR
Deployment Guidelines amongsuppliers-E xamine specific measures aimed
at strengthening the supply chain
based on the results of BCP surveys
carried out at suppliers-C arry out conflict minerals survey(survey for the purposes of updating
data)

-C
 onducted partner
evaluations of about 150
main partner companies, held
partners’ meetings-C onducted CSR response
questionnaire, received
answers from about 650
companies-C onducted surveys

General Manager, Procurement Department,
Finance & Procurement Division

Targets

Strengthen strategic relationships withpartners-C ontinue partner evaluation system andutilize feedback interviews-C ontinue to inform partners about CSR
Implementation Deployment Guidelines-R eviewed and increased
the number of procurement
points (and sometimes
recommended inventory) for
principle products

Satoshi Tosaka

Not achieved

FY2015Results / Achievement

Message from the General Managers

Partially achieved

Ever since its foundation,
Furukawa Electric has stayed inbusiness by supplying people
with social infrastructure andcontributing to society as asupplier of products. However,
our success is not just the resultof hard works at our company. It
is also thanks to the steadydelivery by our suppliers of the
raw materials we use to create
products.
In the future, our businessenvironment is likely to change-U se the results of the BCM questionnaire
and manufacturing site survey to review
and implement supply chain reinforcement
measures such as increasing the numberof procurement points-C onflict mineral survey (data update
survey)even more rapidly. Under thesecircumstances, we will need tostrengthen our supply chains
further in order to continue
contributing to society. We
intend to use partners' meetingsand partners’ assessments toimprove the mutual
understanding we have with our
supplier s, and to continue
contributing to society throughmeasures such as the promotionof CSR activities andstrengthening of BCM.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201535

Initiatives for Society

Relations with Shareholders
Information Disclosure Policy and IR Framework

Relations with Individual Investors

Furukawa Electric Group Basic Policy on CSR

In October 2014, we held our 7th plant tour forrequires that the Group seeks to improve upon theindividual investors. Visitors were selected by lottery

sound, friendly relationships we maintain with all of ourfrom among those who responded to an open invitation,

stakeholders. Our Own Regulations on the Timely

with 42 people invited to attend out of the 227 who

Disclosure of Corporate Information meanwhile set out a

responded. During the tour, we offered participants aframework for the disclosure of appropriate information

number of opportunities to get a feel for Furukawa

at the appropriate time.

Electric. We introduced our production processes for

Based on this policy, all IR activities are conducted by

optical fiber cables and automotive parts. The tour also

the Investor & Public Relations Department andfeatured a simple explanation on the phenomenon ofoverseen by the director in charge of IR, who is Generalsuperconductivity.

Manager of the Finance & Procurement Division.

Relations with Institutional Investors andSecurities Analysts
In addition to holding management briefings(covering interim and year-end results and mid-termplans when announced) for institutional investors andsecurities analysts, we actively encouragecommunication all year round.
Optical fiber cable plant

Briefing for institutional investors

Message from the General Managers

Furukawa Electric’s businessbegan with copper smelting andOsamu Suzuki
General Manager, Investor & Public Relations the manufacture of electric
Department, Finance & Procurement Division wires. Through more than 130
years, the numerous productsthat we manufacture based on
our materials technology
support the lives of people
around the world in a wide
v arie t y o f fields, including
telecommunications, electric
power infrastructure andautomobile.
However, because we often

36

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Automotive components plant

work behind the scenes,
shareholders and investors
often tell us that they feel
unfamiliar with the content ofour business.
We will continue to work hardto host events such as factory
tours, in addition to making
regular ne ws releases anddeveloping the website, so thatpeople can clearly understandand feel more familiar with ourb u s i n e s s . Yo u r c o n t i n u e dsupport is greatly appreciated.

Initiatives for Societyt h e f in a n c i a l s t r u c t ure, m a k e gro w t h s t r a t e g y

Returning Profits to Shareholders

investments with a focus on the infrastructure andFurukawa Electric considers the appropriate return ofautomotive markets and make investments aimed at

profits to our shareholders to be one of our mostdeveloping the next generation of business to build aimportant policies. Our basic policy is to continue

platform for sustainable growth, the Company decided

making steady dividend payments in consideration of

to award a year-end dividend of ¥3.0 per share.

future business developments and in anticipation of theRegarding dividend payments in the fiscal year ended

Company’s future profitability trends and financial status

March 31, 2016, the Company expects to forgo thefrom a long-term perspective.

interim dividend and award a year-end dividend of ¥4.0

Regarding dividend payments in the fiscal year ended

per share.

March 31, 2015, in consideration of the need to improve

Stock Information and Dividends
General stock information (as of March 31, 2015)

Distribution of ordinary stock among shareholders

Stock Code on theTokyo Stock Exchange

5801

Domestic companies, others

Stock Exchange
Listings

Tokyo Stock Exchange, First Section(as of March 31, 2015)

0.06 %
458,728 shares

7.34%
51,869,711 shares

Individuals,
others2,596,000,000 shares

Common Stock

2,500,000,000 shares

Preferred Stock

50,000,000 shares

Foreign corporations

Deferred Stock

46,000,000 shares

14.90%
105,272,850 shares

Common stock issued

Common Stock706,669,179 shares

Minimum trading units

1,000 shares

Shareholder register
agent

2-1 Yaesu 1-chome, Chuo-ku, Tokyo, Japan
Mizuho Trust & Banking Co., Ltd.

6

Fiscal year

From April 1 to March 31

4

Shareholders’ meeting

June each year

38.55%
272,416,111 shares

Financial
Institutions

Total number ofshares issued andoutstanding

Total
Number of sharesauthorizedTreasury stock

35.58%
251,460,690 shares

706,669,179

Securities
companies
3.56%
25,191,089 shares

Cash dividends per common share (including forecast)(Yen)
InterimYear-end

4.0
2.5

3.0

3.0

3.0

2012

2013

2014

2

0

2011

2015

(FY)

Major top 10 shareholders of the Company and the Company’s capital contributions to such shareholders
Number of shares

Shareholding
ratioJapan Trustee Services Bank, Ltd. (Trust Account 4)

33,511,000

4.75%

The Master Trust Bank of Japan,Ltd. (Trust Account)

31,148,000

4.41%Japan Trustee Services Bank, Ltd. (Trust Account)

25,028,000

3.54%

Trust & Custody Services Bank, Ltd. (Mizuho Trust & Banking; Employee
Retirement Benefit Trust, Mizuho Bank Account)

24,135,000

3.42%Asahi Mutual Life Insurance Co.

13,650,500

1.93%

FURUKAWA CO., LTD.

13,290,455

1.88%

Name of major shareholders

Japan Trustee Services Bank, Ltd. (Trust Account 9)

11,997,000

1.70%

Fuji Electric Co., Ltd.

11,000,000

1.56%

Trust & Custody Services Bank, Ltd. (Mizuho Trust & Banking; Employee
Retirement Benefit Trust, FURUKAWA CO., LTD. Account)

10,919,000

1.55%

Trust & Custody Services Bank, Ltd. (Mizuho Trust & Banking; Employee
Retirement Benefit Trust, Asahi Mutual Life Insurance Co.Account)

10,500,000

1.49%

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201537

Initiatives for Society

Relations with Employees
Personnel Management

Main measures contributing to the Group’s global management
Top management reinforcement measures

Personnel Management Policy
Our basic personnel management policy focuses oncontinuously creating human resources who are capableof putting the Five Principles of the Furukawa ElectricGroup Credo into practice on their own initiative.

1R eview of our performance evaluation systemand compensation structure (for executive andmanagement levels)2D evelopment of a personnel database and realizationof strategic placement etc. through the introduction ofa succession plan.

Corporate culture reform and personnel bottom-up measures

Please refer to page 24 for “Furukawa Electric Group
Corporate Philosophy”.

Basic Approach
We believe that a workplace environment thatencourages among all employees compliance andconsideration for human rights serves as the foundation

1 Introduction of the “Shared Human Resource Vision& Mission for One Furukawa”, and formulation andimplementation of FM-Career Design (our newplacement standard)
2P romotion of mutual personnel exchanges throughreviewing our training curriculum, and the overseas
deployment of young employees, etc.
3F
 ull-scale diversity management (policy to promote
active participation by women)

upon which employees can maximize their capabilities.
On this basis, we are devising and introducing apersonnel system that will harness employees' diverse
abilities and personalities. This should encourage
employee creativity, setting the cornerstone for“continuous technological innovation”.

Human Resources Development
Enhancement of Education Program
We are training human resources who can implement
innovation that managements seek. Our aim is to

Challenges and Future Policy
In our 2015 Mid-term Management Plan, in order todevelop “sensitive personnel who can think and act on
their own initiative” as we maximize our organizational
strength and spread our Group management thinking.

build a solid footing to deal with major changes in the

The state of our leaders affects corporate culture andbusiness environment and to grow as one Group, we

reflects in our business results, which is why we givestate our mission to foster tough human resource who

training at each level to develop leadership and thecan survive the harsh global competition and to build ahuman qualities, especially sensitivity, among all ourcollaborative environment including our affiliates in Japan

employees. We work hard to cultivate an interest in

and overseas, and we emphasize “top management

people and a sense of respect for others.

reinforcement measures” and “corporate culture reformand personnel bottom-up measures” to contribute to
the Group’s global management. Specifically, we will

Nurturing Leaders Adapted to the Global Scene

carry out individual policy measures from the aspect of

We started our Global Business Leader (GBL) training“ability development” that focus mainly on strengthening

in 2006 in order to develop personnel who will take on

global human resource training, such as our new

the role of management in the future. Since fiscal 2013

“Shared Human Resource Vision & Mission for One

this has been reformed to Global Mindset Program

Furukawa”, a uniform code of values for formulating(GMP), with its extra emphasis on global human resource

personnel strategy and personnel measures in eacheducation. We have also operated a Global Development

Group company.

Program (GDP) for overseas local employees since 2010
with the aim of strengthening links within the Group, thecurriculum being par tly shared with the GMP.
Furthermore, in fiscal 2014 we launched the Global
Challenge Program (GCP), which dispatches young
employees to foreign countries. We are working to align38

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Initiatives for Society

these various programs to develop human resources whowhich production workers and staff conduct their duties

can play a dynamic role on the global stage.

under the common buzzword of “genba-ryoku
improvement”. In fiscal 2014, as the number of affiliatecompanies participating in the training exceeded 20, it

Global Human Resources Training System
Training global human resources

Global Development
Program

GMP

GDP

Assistant Diversity
Global Mind Set
managers Global Leadership Mini MBA
・Accounting
Recommend key Business Situation
・Strategy, etc.
people in eachdepartment fortraining as
global humanresources

Global Challenge
Program(For local
employees)

GCP

Region-specific training

Global Mindset
Program

Personnel management training

Data Base(Conducted throughfiscal 2013)

Training just prior to overseas assignment

GBL

Sectionmanagers

Training in basic management knowledge

Global Business Leader

Generalmanagers

Expatriates

Teamwork
improvement
workshops atoverseas sites

was also launched at overseas plants. Whether in Japanor abroa d, w e are enga ged in reinf orcing ourmonozukuri capability.
People Undergoing Genba-ryoku Reinforcement Training（No. of genba-ryoku trainees）

600

Affiliates

Furukawa Electric

500

88

400

183

43

300

423

200
100
0

24

42

75

76

2009

2010

292

344

159
156

2011

2012

2013

2014

(FY)

Using Diverse Human Resources
Project to Improve Genba-Ryoku Capabilities

One of our Group’s management philosophy is to

In fiscal 2009, we began genba-ryoku training for all“nurture human resources at every level, so that we canmanufacturing on-site employees at our factories. To

become a more diverse and creative organization”. It isdate, the training has consisted of foreman training, mid-essential for the progress of our Group’s global

level worker training, and basic program, with the aim ofmanagement to create a corporate culture in which

cultivating “genba-ryoku”, the ability to think and act for

more diverse personnel can succeed.

oneself, and boosting the monozukuri capability of theworkplace.

In April 2014, we set up a Diversity Promotion Section
to accelerate the creation of a work environment thatgives a greater active role to more diverse personnel.

Activities to Support the Success of
Women in the Workplace
Furukawa Electric has continually addressed theimprovement of women’s work environment and workMid-level workers attending a classlife balance from fiscal 2005, and since September 2014
we launched “Furukawa “V” Challenge!!”, our campaign
to support the success of women. We have brought in arange of integrated measures to encourage careerdevelopment among women and create a more
pleasant workplace and greater job satisfaction, with thefollowing objectives.

Monozukuri staff undergoing genba-ryoku training (group work)[Objectives related to support the success of
women in the workplace](1) W e aim to double the number of female in the

Genba-ryoku training for monozukuri staff (production
division employees providing on-site support) was also

managerial posts by 2018.
(2) We aim to double the proportion of females hired by 2018.

started in fiscal 2013 to promote a corporate culture in

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201539

Initiatives for Society

information exchanges to share know-how on hiring

Diversity in Hiring

within the Group, we hold Furukawa Electric Group

Furukawa Electric is actively recruiting international

Forum held in Tokyo and Osaka, at which we conductpersonnel and international students to support thebriefings in conjunction with Group affiliates, and work

globalization of our business.

proactively demonstrate the appeal of Furukawa Electric

Furukawa Electric Group has a number of initiatives

Group to students.

underway to recruit talented personnel. In addition to
Recruitment figures by gender (Number of employees)

Specialized
staff
Professional
staff

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015

84
17
101
1
86
1
87

79
13
92
4
44
0
44

73
9
82
4
15
0
15

66
12
78
2
21
1
22

49
10
59
3
2
0
2

26
6
32
0
0
0
0

21
5
26
1
0
0
0

28
7
35
1
0
0
0

Male
FemaleTotal
Foreign nationals
Male
FemaleTotal

Encouraging Employment of Disabled People

Internships

Furukawa Electric has established special subsidiary

Ever since the Japanese government introduced a

Furukawa New Leaf in fiscal 2004 for the purpose of

system of internships in 1997 as part of an industry-

improving our employment rate of disabled people. As of

academia-government collaboration, in our role as a

March 31st 2015, Furukawa New Leaf employs 39 people

manufacturer Furukawa Electric has taken on numerous

who are intellectually challenged, and Furukawa Electricscience and engineering interns with the aim of

has an overall disabled employment rate of 2.29%.

contributing to the fostering of Japanese technicians of

Furukawa New Leaf opened a new operating base in

the future. We have already taken on more than 200

fiscal 2013 at Mie Works, in addition to those already atstudents across our various workplaces. In recent years,

Hiratsuka Works and Chiba Works, to further increase

we have also actively sought to accept students fromour disabled employment rate.

o v er s e a s uni v er si tie s in a ddi tion t o Ja p a ne s euniversities.

Furukawa New Leaf employees at work

Ratio of employees with disabilities (Furukawa Electric)

Internship training at Nikko Works

（％）
2.4

2.29％

2.3

Improving the Working Environment throughLabor-Management Opinion Exchanges

2.2

Furukawa Electric maintains a basic position that both

2.1
2.0

1.95％

1.94％

1.94％

labor and management should endeavor to engage insincere discussions, and therefore we focus on issue

1.9

resolution and deepening mutual understanding.

1.8
2011

40

2012

2013

2014

(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

We hold our Central Management Briefings twice

Initiatives for Society

annually for public exchanges of opinion between labor

Personnel System Exploratory Committee and theand management. We have conducted such meetings

Committee for Studying Shorter Hours that are designed

for 63 years from fiscal 1952. As of May 2015 we had

to improve the working environment, which

held these briefings 125 times. Representatives frommanagement and labor discuss on a daily basis. Theselabor and management exchange frank opinions anddiscussions lead to improvements in various systems

share information about a broad spectrum of items at

and strengthen monitoring functions, such asthese briefings, such as the business environment,compliance response and the implementation status ofmanagement, and topical matters.

other CSR activities.

We also have in place various committees such as thePartially achieved

Targets and Results (Personnel Development and Working Environment)
FY2014
Targets

Strengthening of global humanresource training-C onduct Global Development
Program (GDP)FY2015Results / Achievement- Visualize genba-ryoku
improvement plan-E
 xpand monozukuri staff training-E xpand genba-ryoku training toaffiliates

Support for diverse work styles
and work-life balance- Introduce half-day units of leave
for nursing care

Targets- Conducted GDP training- In GCP, assigned 4 people to OneFurukawa course and 1 person to
Frontier course (Mexico)- Implement Global Challenge
Program (GCP)
Reinforcement of monozukuri
capability

Not achieved

Achieved

Strengthening of global humanresource training-C onduct GDP- Implement GCP-D rew up genba-ryoku improvement planfor two affiliates (FEIC Kyushu (note 1) ,FMGW Shirone (note 2)), conducted genbaryoku training (basic program)

Reinforcement of monozukuri
capability-B egan training for monozukuri staff(production division employees
providing on-site support), 7 divisions
from Furukawa Electric and 10 affiliatecompanies took part-S tart genba-ryoku training ataffiliates- Introduced half-day units of leave fornursing care and half-day units ofaccumulated leave for childcare- Introduce half-day units ofaccumulated leave for childcare-S et “ideals” and “targets” fordifferent levels and different duties

Support for diverse ways ofworking, and work-life balance-E xpand congratulatory/
condolence leave to include
spousal childbirth-R educe no. of people taking
extremely little annual leave(note 1) FEIC: Furukawa Electric Industrial Cable Co., Ltd.
(note 2) FMGW: Furukawa Magnet Wire Co., Ltd.)

Message from the General Managers
Taizo Matsumura

For the Furukawa
Electric Group to
survive andachieve continuous
growth in the faceof serious global
competition, it isessential that all
employees withdiverse views,
abilities, andbackgrounds andregardless of characteristics such as age, gender or
nationality, openly share their opinions and act withsincerity.
To strengthen our Group’s global management, thecompany set up a Diversity Promotion Section in April

General Manager, HR & Administration
Department, Administration & CSR
Division

2014 to engage more actively in diversity
management. In particular, we see the pressing issue
in supporting the success of women as a top priority,and have set ourselves quantitative targets.
To raise the overall strength of the Group, we aredeveloping tough human resource and a morecollaborative environment by making career formationand human resources more fluid through planned
allocation. We have done this with the introduction of
FM Career Design, a personnel system that stimulates
the ability and desire to face challenges in individuals
and the generation of innovative ideas inorganizations, and the Global Challenge Program(GCP) that aims to give overseas experience to young
employees.
We will continue to actively take the above and othermeasures in future in order to accelerate the creation ofan environment and corporate culture where morediverse human resources play an active role.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201541

Initiatives for Society

Occupational Health and Safety
Occupational Health and Safety Management Promotion System
In line with the 2015 medium-term plan's policy of strengthening Group management, we have revised our activity
promotion structure. To this end, in fiscal 2013 we have established Furukawa Electric Group Occupational Health and Safety
Committee, chaired by the president. This committee, comprising members of management, deliberates, determines andfollows up on policies and measures related to occupational health and safety activities throughout the Group.
Promotion
Framework

President
Furukawa Electric Group Occupational
Health and Safety Committee

Representative Safety and Health Meeting

Committee chair : President
Committee members : Management
Organizer : General Manager,
Safety and Environment
Promotion Department
General Manager,
HR & Administration
Department

Chair :
General Manager of the Production
Technology Division
Members:
Divisional Representative Safety and HealthWorks general managers
Safety and Environment Promotion Department
HR & Administration Department

General managers of each business division

Affiliated companies

Representative safety and health
Divisional occupational health and safety committees

Status of Activities and Future Initiatives

Safety and Health Activities Presentation Meetings

Looking at our safety record during fiscal 2014, we

We have been holding presentation meetings on thefailed to reach our target of one or fewer accidents

Group’s safety and health activities and awarding therequiring leave, as two occurred. As a result, we havebest with commendations. In fiscal 2014, we turned

set about reforming our corporate culture to keep fromthese meetings into a conference in which Grouptaking a backward step on our safety record andcompanies participated for the first time. A total of 13

strengthening initiatives toward our goal of zeroteams selected from various divisions (including four

accidents and zero hospitalizations.

teams from GroupThe core tenets of our basic policy for fiscal 2015

companies) gavenaturally include legal compliance, as well as content

presentations andlinked to reforming the corporate culture, such asreceived commendations“Becoming a Safety Conscious Person” and “Realizing

from our company

Fundamental Safety”.

president.

Specifically, we have set forth the following five items.
1. E
 ndeavor to eradicate accidents in accordance withthe objectives of the Industrial Safety and Health Act.
2. R
 educe accident risks by realizing “fundamental
safety”.
3. D e v elop “sa f e t y conscious per son” throughcommunications and using the 5S.
4. A im at self-management through self-checks,
maintenance and improvement.
5. P ractice Group health management activities throughmental and physical health improvement.

Educating Employees at “Anzen Dojos”
Furukawa Electric has placed “Anzen Dojos” (safety
education centers) at manufacturing sites to enable
employees to get a sense of the dangers. These centers
are designed as educational facilities where employees
can experience various dangers, such as heavy items,
edged tools, work inhigh places, revolving
equipment andelectricity, to raise their
sensitivity to danger.

42

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Initiatives for Society

Executive Follow-up on Accidents

Mental Health Education

We conduct a follow-up of Furukawa Electric and our

We began conducting mental health measures inGroup companies by our executive in charge of safety

fiscal 2002, In the past, stress control training,when an accident occurs or according to the previous

workplace mental health training with a focus on Work

year’s performance. We seek to prevent a recurrence byEngagement, and Pleasant Workplace Discussion

checking the suitability

Sessions aimed at improving the workplace environmentand retention rate ofhave been implemented across the company.

countermeasures,

In fiscal 2014 and fiscal 2015, Self-care Training and Line

engaging in dialog toCare Training programs will be implemented with the aim

make things intrinsicallyof helping all employees in their early forties and middle-

safe, and so on.

ranking managers to respond to all types of change.

Work Accident Occurrence Status

Strengthening Smoking Measures

The frequency rate of accidents resulting in time off

In fiscal 2003, we commenced measures to counter

work (note 1) (from April 2014 to March 2015) decreased tosmoking in earnest, introducing programs to prevent

0.28 in Furukawa Electric only but increased to 0.77

exposure to passive smoke and encourage quitting

among all Group companies in Japan.

smoking. As a result of such activities, the percentage of(note 2)

smokers among male employees has fallen by
Frequency rate of accidents resulting in time off work(%)

Frequency rate (note 1)

2.0

All industries
Whole Group in Japan(note 2)

1.61

1.62

Whole manufacturing industry
Furukawa Electric

1.59

1.58

(note 3)fiscal 2020 at the latest, and have continued to adopt a
multifaceted approach with the following three main

0.98
0.58

0.5

0.37
0.0

aim to switch to a smoking ban during working hours infiscal 2017 and to an entirely smoke-free workplace by

1.66

1.5
1.0

approximately 20 percentage points over 10 years. We

2010

1.05

1.00

0.94

0.72
0.53
0.49
2011

0.71

0.37

0.40

2012

2013

1.06

approaches: sharing information, supporting efforts to

0.77

quit smoking and creating a smoke-free environment.

0.28

Responding to Asbestos-Related Health Issues
2014

(FY)

(note 1) Frequency rate = (No. of casualties / Total actual work hours) x 1,000,000(note 2) The calculation for fiscal 2014 covered full-time employees andtemporary staff at Furukawa Electric and 37 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

During the period from fiscal 2005 to 2006, we once
again investigated workplaces that previously handledasbestos products and we organized medical
examinations focused on asbestos for all relevant

Meanwhile, the 2014 accident frequency rate for theemployees. We also sent out notices urging retired

whole Group including overseas Group companies was

employees who worked at the relevant sites to undergo

1.65. This included accidents both resulting in and not

medical examinations.

resulting in time off work.

As of March 31, 2014, three people have been
confirmed as being involved in industrial accidents（anyHealthcare for Employees Working Long Hours

person also died）, and symptoms have been detected
in nine（all retired）.

In accordance with the Guidelines issued by the Labor
Standards Bureau entitled “Measures to be Taken by
Employers to Prevent Health Impairment Due toOverwork”, we strive to manage the health of employees

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

who work long hours by implementing strict limitations
on working hours based on the results of healthcheckups and by arranging consultations for such

CSR
http://www.furukawa.co.jp/english/csr/index.htm

workers with industrial physicians.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201543

Initiatives for Society

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 andlocal communities, in addition to its business-related activities, in order to maintain and strengthencommunity ties built over centuries and create a better tomorrow for future generations.

Implementation of Private Sector Training
for Teachers (note)
From July 30 to August 1, 2014, nine teachers from

Main programs
Day 1 (Theme: Social Responsibility)

sector training. Throughout the three days of exercises,

1. Group philosophy, CSR initiatives
2. Business continuity management
3. G roup’s safety & environment initiatives, safety
activities

factory visits, and educational training experience, theyDay 2 (Theme: Safety & Environment)

appreciated the pleasure and sense of achievement thatenvironmental activities, human resource development

1. Involvement with safety, environment, communities
2. Practice in safety education center
3. Factory visit
4. Visit to special subsidiary Furukawa New Leafand so on.

Day 3 (Theme: Education)

elementary schools, high schools and special-needs
schools in Tokyo and Yokohama underwent privateawareness gives as they learned about the social
responsibility of schools and companies, safety and1. Overview of CSR education
2. Overview & experience of in-house employee training
3. Review

Practical experience in “Anzen Dojo”(safety education center)(note) S ponsored by the Japan Institute for Social and Economic
Affairs. The aim is to deepen the teachers’ understandingof things such as the ideas behind corporate activities,
approaches to human resource training, approaches tosocial responsibility obligations and environmental issues.
It is hoped that teachers will then pass on their experienceto their pupils during lessons, and also apply them to theirschools’ management in future.

Most lasting impression (Selected from post-training
questionnaire) etting targets, conducting verification, and★S
improving operations are similar, albeit done indifferent ways, in both schools and companies.
 ompanies have an attitude of striving for★Cthoroughness.
“Pointing and naming out loud” at street crossing

44

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

★ I realized again that every small thing leads tosomething very large.

Initiatives for Society

CSR Awards
Sixth CSR Awards
Furukawa Electric established the CSR Awards torecognize the social contribution or environmental
preservation efforts of our subsidiaries that notablySocial Contribution Award
Furukawa Electric Autoparts Central Europe,s. r. o. (FACE), Czech Republic

exceed their regular business. CSR Award-winning

FACE has been continually supporting Slunickoc omp a ni e s w or k on a d a il y b a s is t o c on tinue(Czech for sunlight), an organization that helps disabledcontributing to society through these activities.

young people, since 2004. FACE and its employees
purchase handmade products from Slunicko including

Social Contribution Award
Furukawa New Leaf Co., Ltd. (note)

Christmas cards, floral pillows, and scarves. It also
donated money to buy a car specially customized fortaking disabled children to and from school. In 2014, theFurukawa New Leaf has three branches in Hiratsuka,

company also started to commission the children to

Chiba, and Mie to promote the employment of disabled

conduct simple tasks at its plant. The idea is to provide

people. It employs 50 people in all, including 39 disabled

them with a place to work and gives them confidence,people of whom 31 are severely disabled. It has

which will have a positive effect in future. In addition, theprovided support and cooperation for various plants

company employs six full-time staff with disabilities.

since its establishment in 2004, with a focus on in-plant

FACE believes these activities blend in with the local

cleaning. The company’s main duties are cleaning

community and will transform the lives of these people

meeting rooms, lobbies, corridors, staircases,in future.

bathrooms, and on-site and external roads. Recently,
however, they are taking on new duties that evend i s a b l e d p e o p l e c a n d o, s u c h a s d i s m a n t l i n gcommunications equipment parts and wires, shredding
document, and so on. The company also supports the
future employment of disabled children by receiving
pupils from a neighboring school for the disabled to takepart in work experience training.
(note) Special subsidiary of Furukawa Electric Co., Ltd.
Specially customized car bought with donations(with the Furukawa logo on the rear door)

Cleaning inside a plant (Hiratsuka Works)

Working inside the Slunicko facility

Practicing for the Abilympics, a national workskills competition fordisabled people (Mie Works)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201545

Initiatives for Society

ach
e
n
i
s
e
i
t
i
v
i
t
Ac
re g i o n
Activity topics

Furukawa Electric Group
conducts various activities ineach region.

Nuturing future generations
Supported and cooperated on work
experience for schoolchildren of all ages
•Furukawa Electric (Chiba Works, Hiratsuka
Works, Mie Works, Nikko Works)•Furukawa Electric Power Systems•Furukawa Logistics•Okano Electric Wire

Living in harmony with thenatural environment
Participated in local environment
beautification campaign•Furukawa Electric (Chiba Works, Hiratsuka
Works, Mie Works, Copper Tube Division)•Tohoku Access Cable •KANZACC•SHODENSHA •Furukawa Sangyo•Furukawa Precision Engineering•Furukawa Logistics•FURUKAWA TECHNO MATERIAL•FURUKAWA ELECTRIC ECOTEC•Furukawa Magnet Wire
•Furukawa Nikko Power Generation

Cutting grass in neighboring children’s playground together with
Hoso Resident’s Association (Furukawa Precision Engineering)

Parent-child environmental class of the
Yamato Friends of the Environment Group(Okano Electric Wire)
Shonan Coast Cleanup Campaign run by the Labor Union Young
Women’s Association (Hiratsuka Works, Furukawa Electric)

Promotion sports and culture
Participated in, sponsored, andprovided a venue for sporting events•Furukawa Electric (Hiratsuka Works, Mie
Works, Nikko Works, Copper Foil Division,
Copper Tube Division)•The Furukawa Battery

Hosted, participated in, and supported
festivals

Entered two teams in Kameyama City longdistance relay race (Mie Works, Furukawa Electric)•Furukawa Electric (Hiratsuka Works, Mie Works, Copper Foil Division)•Furukawa Electric Power Systems •Furukawa Nikko Power Generation•KANZACC •Furukawa Magnet Wire
•Tohoku Access Cable •The Furukawa Battery

46

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Initiatives for Society

Living side by side with local communities
Conducted beautification activities
outside premises

Supporting and working with NPOs
and special-needs schools•Furukawa Electric (Nikko Works, Copper
Foil Division)•Furukawa Electric (Chiba Works,
Hiratsuka Works, Mie Works, Nikko Works,
Copper Foil Division, Copper Tube Division)•NTEC •Okano Electric Wire
•Furukawa Electric Industrial Cable•FURUKAWA AUTOMOTIVE SYSTEMS•FURUKAWA C&B •Furukawa Logistics•FURUKAWA ELECTRIC ECOTEC•Furukawa Magnet Wire

Regional exchange meeting with NPO Habataki(Copper Foil Division, Furukawa Electric)

Participated in regional exhibition•Furukawa Electric (Chiba Works,
Hiratsuka Works)

Off-site cleanup activities (Mie Works, Furukawa
Electric & Furukawa Magnet Wire)

Eco Messe 2014 in Chiba (Chiba Works,
Furukawa Electric)

Other activities
Donated and raised funds for charities•Furukawa Electric (Nikko Works) •Okano Electric Wire
•The Furukawa Battery •Furukawa Nikko Power Generation•Miharu Communications

Alongside our Group’s basic social
contribution policy, Furukawa Electric has
given much consideration to programs thattake advantage of our uniqueness, onthemes that are of deep concern to ourDonated blood•Furukawa Electric (Yokohama Works, Hiratsuka Works)•Furukawa Precision Engineering •The Furukawa Battery

employees.
As well as various ingenious communitybased activities by our Group companies
and Furukawa Electric’s various works,

Conducted factory
tours for employees’
families•Furukawa Electric(Chiba Works, Copper
Tube Division)•Furukawa Magnet
Wire

Challenges and Future Policy

research laboratories, and branches, in fiscal
2014 we implemented private sector training
for public school teachers. We are also
progressing toward the creation of a scienceeducation program with visits to schools
using our company’s unique technologies as
Employees’ families touring a factory(Chiba Works, Furukawa Electric)a teaching resource.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201547

Initiatives for 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 andothers, 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 impactcausing 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

Scope of the Environmental Management

I n A p r i l 2 0 13 , w e u n d e r w e n t o r g a n i z a t i o n a l

F u r u k a w a E l e c t r i c G r o u p ’s e n v i r o n m e n t a l

restructuring, transitioning to a strategic business unit

management covers 34 Group companies in Japan andsystem. We also renamed our highest-level advisory

57 Group companies overseas. One Group company inbody related to environmental management theJapan changed its name to Tohoku Access Cable

Furukawa Electric Group Environment Committee andCompany. One Group company overseas merged withpromoted environmental management under a new

another company in a related industry, while anothers truc ture. We es tablished the ne w Council of

was excluded from the scope of our environmental

Environmental Managers to facilitate smooth decision

management as its stockholding ratio was reduced.

making on environmental management andconsolidated the special committees that have

Please refer to page 59 for a list of all applicable
companies.

performed these functions in past.

Environmental Education

Promotion Framework

Environmental Education System and Environmental

President

Education Programs
Furukawa Electric Group
Environment Committee
Committee chair:
General Manager of the Production Technology 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

help them to gain information necessary to conduct theenvironmental activities of the Group.
During fiscal 2014, 40 employees attended ISO14001
internal environmental auditor training, while 25

Council of Environmental
Managers

48

Divisional Environment
Committees

Special Committee

Affiliated Group Companies
in Japan and Overseas

environmental education activities in order to raise
environmental awareness among its employees andSafety and Environmental
Promotion Department

Environment
Committee of Works

Furukawa Electric Group is engaged in a variety of

employees attended FGMS (note) auditor training. Since
Subcommittee
Meeting

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

fiscal 2013 the Group has conducted environmental
training for newly appointed section managers in order toenhance the education of key managers in each division.

Initiatives for Environment

In fiscal 2014, 41 employees attended this training.

understanding of costs and conduct its environmental(note) Furukawa branding Green products Management System

activities efficiently and effectively. Totals are based on
the “Environmental Accounting Guidelines 2005”

Environmental activity award systempublished by the Ministry of the Environment. GroupIn an attempt to improve environmental awarenesscompany totals were based on 24 Group companies inand enhance our environmental activities, in fiscal 2010

Japan. During fiscal 2014, environmental conservation

Furukawa Electric established environmental awards in

expenses totaled 3.4 billion yen, while a total of 700

three areas: “sales promotion for environmentally friendly

million yen was invested. Compared with the previous

products,” “prevention of global warming,” and “Group

year, this was a decrease of 300 million yen in expenses

activities.” However, the Group revised the award

and an increase of 100 million yen in investments.

system in fiscal 2014, bringing all awards together undera single category (“environmental contribution award”)
and holding a single Excellence in Environmental Activity
Presentation each year.

A dditionally, sno w dama ge c ause d reduc e doperability, and energy costs fell around 1.5 billion yen.
Please refer to page 59 for a list of all applicable
companies. Please see the URL below for environmental
accounting aggregate results.

Environmental Accounting

CSR

Furukawa Electric Group has introduced

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

environmental accounting to gain a quantitative
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

Message from the General Managers During fiscal 2014, we once again
Hisashi Iwama
General Manager, Safety & Environment
Promotion Department, Production
Technology Division

worked together with ourcolleagues all over the world topromote environmental preservation
activities in accordance with the
management policies of the Group.
The three main aspects of our basic
environmental activity policy are I.
Social contribution, II. Prevention ofpollution, and III. Energy andresource conservation. The first
aspect means exercising our social
responsibility as a manufacturer toensure that customers can use our
products and services safely andsecurely. This also refers operating
our business in such a way that
customers using our products andservices make overall society“brighter and more enjoyable,” andin a manner that allows us tocontribute to the conservation of
the global environment. In addition
to properly managing chemical
substances and preventing
pollution when we develop andproduce products, the second
aspect means paying consideration
to biodiversity. The third aspectmeans manufacturing in a mannerthat efficiently utilizes our limited
natural resources and energy.
E s p e c i a l l y, N i k k o Wo r k s
manufactures products usinghydroelectric power, which does not
generate greenhouse gases. We
would like to connect all of this with
our environmental management
activities, in order to leave abeautiful environment to future
generations and contribute torealizing a truly abundant society.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

49

Initiatives for Environment

Material Flow
Environmental Impact of the Furukawa Electric Group in Fiscal 2014
We tallied data for Furukawa Electric, 34 Group companies in Japan, and 57 Group companies overseas—a total of
92 companies.
Please refer to page 59 for a list of all applicable companies.

INPUT
Category

OUTPUT

Domestic Overseas

Unit

Category

Raw materials
150,189
8,045
2,178
549
27
8
0
936
44
0
37,373

191,730
20,5737,610
3,529
39,529

t
t
t
t
t
t
t
t
t
t
t

Energy

7,376

7,222

TJ

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

537,262

628,032MWh

76,053

26,525

MWh

9
5,845
16,196
7,689
1,939
248

18,554
2,025
287
65
49

MWh
1000 m3
t
kl
kl
kl

Water

20,9832,732

1000 m3

17,377
2,809
797

50
314
2,368

1000 m3
1000 m3
1000 m3

40,593-

Furukawa Electric
7 works,
34 Group companies

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

Paper

t

573
1,549
190
53

11,336
831
941

t
t
t
t

60

-

t

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

50

23,424t267
31,141

15,2898,135

t
t451,938
-

t-CO2
t
t
t

2

Chemical substances

Packaging (note 2)
Cardboard
Wood
Plastic
Paper

33,002

Atmospheric emissions
in JapanCO
380,323
and
SOx
28
108
57 Group companies NOx
Soot
4
overseas

Volume emitted
Volume transferred

164
157

-

17,9981,5441000 m3

17,448
16,203
1,218
20
550

608
365
0
243
937

1000 m3
1000 m3
1000 m3
1000 m3
1000 m3

39
30
35

-

t
t
t

Product shipping volume

315,556―t

Product collection volume

8,830

―

t

7,156
705
348
621

-

t
t
t
t

1,126

10,631

Wastewater
Public waterways
Rivers
Sea
Other
Sewer
BOD
COD
SS

Chemical substances
Volume handled (note 1)

Unit

Waste (note 3)

CopperAluminum
Iron
NickelChromium
Manganese
Magnesium
Other metals
RubberGlass
Plastic

Industrial water
Groundwater
Tap water

Domestic Overseas

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Type of cable
Plastics
MetalsOther

Volume of water
recycled and reusedtt1000 m3

Initiatives for Environment

Targets and Performance of Environmental Conservation Activities
Targets and Performance (Environment)

Achieved

Partially achieved

Not achieved

Furukawa Electric Group (Japan)
Activity

Fiscal 2015environmental
conservation activity
goals

Fiscal 2014 activity goal

Fiscal 2014
results

Reduction of absoluteamount of waste

2% reduction from fiscal 2012

1.2% increase

3% reduction from fiscal 2012

Decrease zero emissions
rate

0.3% or less

0.13%
(achieved)

Zero emissions rate of 0.3%
or less

Reduction of water
consumption

1% decrease in energy
consumption rate year-on-year

4.2% increase

2% decrease in energy
consumption rate year-on-year

Greenhouse gas emissions

2% reduction from fiscal 2012

6.2%
reduction

3% reduction from fiscal 2012

Energy consumption

2% reduction from fiscal 2012

14.1%
reduction

3% reduction from fiscal 2012

Energy consumption rateduring production (sales)

4% decrease from fiscal 201222.7%
reduction

6% decrease from fiscal 2012

Energy consumption rateduring transport

2% reduction from fiscal 2012

14.6%
increase

3% reduction from fiscal 2012

Energy consumption rate in
offices

2% reduction from fiscal 2012

3.4%
reduction

3% reduction from fiscal 2012

Conservation of biodiversity

Participation in regional
biodiversity conservation

Implemented

Participation in regional
biodiversity conservation

Environmentally friendly design activities

Sales ratio of environmentallyfriendly products
35% or higher
Contribution to reducing
environmental burden
CO2 reduction of 30,000 tons
or higher

Waste reduction
activities
Efficient utilizationof water

Activities for theprevention of
global warming

Activities for the
managementof chemical
substances

Sales ratio of environmentallyfriendly products 30% or
higherContribution to reducing
environmental burden
CO2 reduction of 50,000 tons
or higher

24.2%

59,000 tons

VOC emissions

2% reduction from fiscal 201217.2%
reduction

Products containing
chemical substances

Suitable management

Noabnormalities--

No. of environmental accidents/abnormal incidents

Evaluation

3% reduction from fiscal 2012-

Suitable management of
products containing chemical
substances
0 accidents, 3 or lessabnormal incidents

30 of our overseas Group companies have already obtained ISO14001 certification. These companies have set goals according to their unique circumstances for five
shared environmental conservation activities for fiscal 2014 (reduced waste, reduced water consumption, reduced greenhouse gas emissions, reduced energy consumption
rates, and management of chemical substances), and are working toward achieving these goals.

Activities Targets and Performance in Fiscal 2014

Activity Targets in Fiscal 2015

Furukawa Electric Group defines medium-term

During fiscal 2015, we will continue to work toward

environmental targets every three years. Each year, we

reducing our absolute amount of waste and water

establish targets for environmental conservation

consumption rate—two new goals added to those ofactivities based on these plans. We reflect these targets

fiscal 2014. Fiscal 2015 is the final year of the standard

at affiliated companies in Japan and overseas, ensure

three year plan we began in fiscal 2012, so the entire

that targets are consistent throughout the global Group

Group is putting all effort into achieving our goals. In

and work together to achieve them.

fiscal 2015, our overseas Group companies have set as

The entire Group has achieved its goals fortheir goal a reduction of at least 1% (consumption rate)

greenhouse gas emissions in its activities for theover fiscal 2014 with regard to four shared goals

prevention of global warming, through such means as(absolute amount of waste, water consumption,

aggregating its manufacturing bases for each productgreenhouse gas emissions, and energy consumption),under the Structural Reform Plan. The snow damage at

toward setting consistent goals throughout the Group

Furukawa Electric’s Nikko Works also had an impact.

inside and outside of Japan, as a part of next term’s

Both Furukawa Electric and the Group have achieved

medium-term management plan.

their energy consumption goals.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

51

Initiatives for Environment

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 (Group Companies)
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)100

the categories of materials and parts purchasing and80

manufacture, use, distribution and disposal.

60
40

40.0
67
20.9

0

We have created the “e-Friendly” environmental markto identify such environmentally friendly products. This

85
19.7

23.9

42.2

43.1

91

97
24.3

50
40

24.2

30
20

11.3

20

The e-friendly mark

73

40.2

14

16
14

17

2010

2011

2012

25
2013

35

10

2014

0
(FY)

Environmental Performance Indicator “Visualization”
As a part of initiatives to visualize environmental

mark is placed on those products.

performance indices, the Group promotes theCategories of Environmentally Friendly Products
The Group's environmentally friendly products belong
to one of four categories described below.

visualization of CO 2 emissions using life cycle
assessment (LCA).
Based on the consumption unit of CO2 emissions
established for each product by fiscal 2012, we have set
a target to spread the initiative to the affiliatedEnvironmentally friendly product categories

companies in fiscal 2013 and conducted an LCA

Content

calculation of major products at 12 of the 21 subject

Prevention of
global warming

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

companies. We also deploy the results of theseGas (GHG) Protocol (note), as well as technical materials

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.

Category

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.

calculations toward the development of the Greenhouseand sales promotion pamphlets, aiming to make use ofthis information for R&D on future environmentallyfriendly products.
(note) G HG Protocol: An international guidelines for the method of
calculating corporate greenhouse gas emissions

Initiatives to Reduce CO2 Emissions from
Products during Use
B a s e d o n i t s t r a c k re c o rd i n e n v i ro n m e n t a lperformance indexing, we are working to visualize thereduction of CO2 which is emitted when our products
are at the stage of being used. According to theestimate for fiscal 2014, total emission volume in thedomestic market of our mainstay products, copper foil,

Expanding Environmentally Friendly Products

52

rectangular magnet wire and semiconductor laser,
amounted to 59,000 tons - CO2/year. Going forward, we

We are working to increase our overall percentage ofwill try to expand sales of each product category andenvironmentally friendly products. We set targets based

increase the number of contributing products, so thaton percentage of sales, and confirm our progress andwe can develop our activities to tackle environmental

success on this basis.

issues through our products.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Initiatives for Environment

Reduction of CO2 emissions throughCO2 reduction of enameled extruded rectangular wire

copper foil for electric car batteries

Rectangular wire for HV motors

Copper foil for electrode material of lithium-ion batteries

Copper foils contribution to electric cars

Extruded resin layer
Enamel layer
Rectangular conductor

Lithium ion battery
Negative
electrodeterminal

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

Separator
Negative
electrode
plate

Preventing Global Warming

Separator
Positive
electrode

Positive
electrode
plate

Reducing CO2 Emissions
Initiatives at Works
The majority of the Group's greenhouse gas emissions
consist of CO2 generated from electricity, fuel and other

CO2 reduction of semiconductor lasers
Narrow-bandwidth-FBT (tunable wavelength laser)

energy sources. As emissions from manufacturing
processes account for a large proportion, we work on
reducing emissions by increasing the efficiency of
production processes, switching fuels, replacing

2600 μm
Tunablewavelength
laser chip

500 μmequipment with more efficient alternatives, insulating hot
areas and other measures.
CO2 emissions for the entire Group in Japan totaled
380,000 tons/year during fiscal 2014—a reduction of
13.4% from fiscal 2000. CO2 emissions for all overseas
Group companies totaled 452,000 tons/year during
fiscal 2014. The entire Group will continue its efforts to
reduce emissions.

30 mm

Tunable wavelength laser assembly(with control circuit)
75 mm

CO2 emissions
Group companies in Japan
Furukawa ElectricGroup companies overseas(104 tons-CO2)

Tunable wavelength laser module30.5 mm

100
80
60
40
20
0

Transponder(optical transceiver)

Wavelength division multiplexing(WDM) transmission system

41.8

43.2

45.2

13.7

13.0

15.5

16.5

16.2

24.6

24.4

24.9

24.7

21.8

2010

2011

2012

2013

2014

(FY)

(note) For the overseas CO2 emission coefficient, the coefficient for eachcountry under the GHG Protocol is used for purchased electricity,while the Japanese emission coefficient is used otherwise.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

53

Initiatives for Environment

CO2 emissions (Scope 1, Scope 2) (Domestic)(104 tons-CO2)

Scope 1

Scope 2

1.9

40

27.5
27.1

0

31.7

30.2

26.6

29.0

10

9.1

6.6

1.7

3.6

1.6

(%)

9.0

1.90

1.8

20
10

Specific consumption
Rate of modal shift(MJ/ton-kilometers)

50

30

Modal shift (note) and specific consumption (Furukawa Electric)

9.7
8

7.4

6

1.70
1.64

1.64

1.66

4

1.58

16.4
2000

11.2

10.7

10.2

9.5

9.0

2010

2011

2012

2013

2014 (FY)

2

1.5

0

1.4

2006

2010

2011

2012

2013

2014 (FY)(note) Modal shift rate: Percentage of total transportation thatuses rail-or ship-based transportation

CO2 emissions (Scope 1, Scope 2) (Overseas)(104 tons-CO2)

Scope 1CO2 emissions related to transportation (Furukawa Electric)

Scope 250

(t-CO2)40

20,00019,100

30

37.9

36.4

20

15,30014,90015,00040.4

15,30014,80014,50010,000

10
0

5.4

5.3

4.8

2012

2013

2014

5,000

(FY)
0

Energy consumption(1,000 kℓ)

2006

2010

2011

2012

2013

2014 (FY)

Environmental disclosure efforts

Group companies in Japan
Furukawa ElectricGroup companies overseas

Furukawa Electric Group responds to requests by

500

e x t er na l ins ti tu tions t o pro v ide e n v ironme n t a l

400

information. Since fiscal 2008, we have answered

300

184

194

76

76

201

inquiries from CDP (note 1), the largest such organization in
the world. Since fiscal 2013 we have also responded to

200

79

100

165

163

149

137

119

2014 we have increased the amount of information we

2010

2011

2012

2013

2014 (FY)collect and continue to enhance the environmental

0

76

74

supply chain program requests from customers in thecommunications and automotive fields. Since fiscal

information management system used throughout
Furukawa Electric Group, with the ultimate goal of
disclosing environmental information throughout theInitiatives in Logistics

Group on a global scale.

The entire Furukawa Electric Group transported
227,000,000 ton-kilometers during fiscal 2014—a

Greenhouse emission burden for CDP disclosure (1,000 t-CO2e/year)

decrease of 4.3% from fiscal 2013. Of this, Furukawa
Electric itself transported 130,000,000 ton-kilometers,

Scope 1 (direct emissions)138

which was a decrease of 4.9% from fiscal 2013. As a

Scope 2 (indirect emissions)

result, we were able to keep CO2 emissions down to

Scope 3 (other)

14,800 tons—3.6% down from fiscal 2013.

(note 1) C DP: CDP is an organization formed from institutional
investors for the purpose of managing a project requiring
companies to disclose their strategies for climate change
and the specific amount of greenhouse gases they generate.
(note 2) Scopes 1, 2, and 3
Scope 1: D
 irect emissions (including SF6, etc.) from offices
caused by the use of fossil fuels, etc.
Scope 2: Indirect emissions from outside offices caused by theuse of electricity and steam
Scope 3: Indirect emissions from purchased product services,business trips, commuting, and upstream shipping, etc.

Unfortunately, our output rate rose 5.1% since fiscal
2012, our base year for this goal. We will continue withinitiatives to promote modal shift, increase loading rates
and encourage joint shipping.

54

FY2014(note 2)FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

694
2,034

Initiatives for Environment

Reducing Waste

Water Resources

Waste Reduction Initiatives

Effective Utilization of Water

In 1993 Furukawa Electric Group began its efforts toFurukawa Electric Group has been making efforts toincrease waste recycling, and since fiscal 2001 has

utilize water effectively since fiscal 2013 by grasping

continued its zero emissions activities with the goal of

the amount of water intake and wastewater and setting

reducing total emissions of industrial waste disposed ina consumption unit reduction target for fiscal 2014.

landfills to less than 0.3% (the base value was cut in

The consumption rate of drawn water throughout the

fiscal 2014 from 1% to 0.3%).

entire Furukawa Electric Group rose to 23 m3/ million

Due to our efforts to thoroughly separate garbage andyen in fiscal 2014, a 4.2% increase from fiscal 2013.

promote recycling, the entire Japanese Group reduced

Our consumption rate of drainage also rose to 19 m3/

its amount of non-recycled waste to 1,324 tons in fiscal

million yen, a slight increase of 0.3% from fiscal 2013.

2014, an 81% reduction from fiscal 2004. The entire

We will continue our water conservation and cyclic

Japanese Group also reduced the amount of waste

usage efforts, and will manage both our water quality

disposed in landfills to 37 tons, a 98% reduction fromand the amount of drainage we generate.

fiscal 2004 (this excludes waste disposal companies
within the Group).
We also began efforts in fiscal 2014 to reduce theVolume of water intake (water source)

total amount of waste we generate (including valuable
resources). However, due to snow damage and theimpact of restructuring, the Japanese Group was unable

Inside Furukawa
Electric Groupto achieve its goal, with a 1.2% increase in contrast with
its goal of a 2% decrease from fiscal 2012—an increase

Volume ofrainwater useof 7.8% across the entire Group, and a decrease of
2.2% for Furukawa Electric (this excludes waste
disposal companies within the Group).

Total amount of waste matter generated
Furukawa Electric & Group companies in Japan
Group companies overseas(1,000 tons)

80

Volume of recycled water

70
60
50

23

32

31

38
23

40
30
20

36

36

39

2004

2010

2011

34

34

34

2012

2013

2014 (FY)100Volume of wastewater (drainage)(note) Valuable resources are included in total waste generated forJapan only.

Consumption unit of water intake and wastewater

Direct landfill disposal(m3/million yen)

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

25

20

15.3
15

15

10

7.2
5.1

5

0

20

2.4
2004

0.9
2010

8.6

10

Water intake consumption unit
Reduce by 1% compared to the previous fiscal year

5.6
5

0.9
2011

0.7
2012

0.4

0.3

2013

2014 (FY)0

Wastewater consumption unit
Reduce by 1% compared to the previous fiscal year

2011

2012

2013

2014

(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

55

Initiatives for Environment

Chemical Substance Management
Green Activities
Response to Customer Requests
When Furukawa Electric Group receives a request

chemical substances contained in products and its
management status as well as by confirming the data ofchemical substances contained in products.

Chemical Substance Management Activities

from a customer for information concerning chemical

Furukawa Electric Group undertakes voluntary

substances in our products, it conducts a thoroughinitiatives to reduce emissions of harmful chemical

environmental examination. We also monitor trends insubstances. In particular, we make every effort tolaws and regulations covering the chemical substances

actively reduce emissions of volatile organic compounds

contained in products and compile and update data as(VOC), one cause of photochemical smog. In fiscal 2014

it becomes available, allowing us to respond promptly to

we achieved a reduction of 17.2%—far surpassing ourcustomer requests. Furthermore, by collecting

goal of a 2% reduction from fiscal 2012.

information from industrial organizations and conducting
seminars, as well as participating in research groups, we
can monitor environmental regulations and standards
and social issues/items of concern. This enables us toincorporate customer needs in our environmental
conservation targets.

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,
strengthens the environmental product regulations andgrasps the environmental risk that should be lowered,

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

Furukawa ElectricGroup companies

400

300

303

295

107

103

200

100

0

196

192

2012

2013

251
99

152
2014

(FY)

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

and implements measures depending on theirimportance. Each time a new SVHC (Substance of Very

Appropriate Management of Chemical SubstancesHigh Concern) (note 1) is added to the candidate list of an

At Furukawa Electric Group, we confirm the properties

environmental product regulation named the EU REACH

and applicable laws and regulations regarding all

regulation, we investigate the status of its usage. In

chemical substances we use during the manufacturing

fiscal 2014, we conducted an environmental inspection

process on their Safety Data Sheets (SDSs) andon 161 substances, covering up to the 12th SVHC list

administrate them. We also monitor the usage volumeof the REACH regulations.

of chemical substances listed in the PRTR Law (note 2).

(note 1) S ubstance of Very High Concern:U se or marketing of SVHCs requires approval, andmanufacturers are liable to submit notification if an SVHC
exceeds 0.1% weight content.

(note 2) Act on Confirmation, etc. of Release Amounts of SpecificChemical Substances in the Environment and Promotionof Improvements to the Management Thereof

Expansion of Green Procurement (GeneralPurpose Products) to Group Companies
Furukawa Electric encourage the purchasing of OA
equipment, office supplies and other items that conform

56

Environmental Risk Management
Preventing Soil and Groundwater Pollution

to the Green Purchasing Law. In an effort to spread

Furukawa Electric Group conducts regular inspections

these activities within the Group, 19 affiliated companies

of facilities and equipment that handle specific toxic

designated conforming items in fiscal 2014 andsubstances to prevent the pollution of soil andpurchased them. Also, items that will be used in our

groundwater. We reduce the risk of pollution throughproducts are purchased adequately based on the Greenmeasures to prevent leaks of specific toxic substances

Procurement Guidelines of our operational division, by

and underground seepage, as well as through ongoingevaluating the suppliers’ system on the management ofefforts to switch to substitute substances.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Initiatives for Environment

PCB Management

Biodiversity Conservation

Furukawa Electric Group monitors the amount of highconcentration PCB-containing equipment at each of our

Biodiversity Conservation Initiatives

Works and affiliate company sites, and conducts proper

In April 2011, we began providing information on ourstorage and management. Based on the said information,

website about the biodiversity efforts we are conducting

we have been registered with Japan Environmental

as part of our Basic Environmental Policy. With a view to

Storage & Safety Corporation and started disposing ofspecifying the Group's biodiversity efforts, we compiled

them step by step in accordance with the plan. In

significant targets in fiscal 2013 into the comprehensive

addition, Furukawa Electric analyzes equipment thatguideline of the Furukawa Electric Group concerning

could contain low concentration PCB, and has begun tobiodiversity. We did this in recognition of the fact that

dispose of some of them. We will continue to dispose of

our business, products and services are the result ofsuch devices in an even more systematic manner.

biodiversity, and that our operation has an impact,whether positive or negative, on eco-systems.
Also, following a major organizational reform in fiscal

Compliance with Environmental Laws andOther Regulations

2013, we integrated our biodiversity conservation

F u r u k a w a E l e c t r i c G ro u p re g u l a r l y c o n f i r m s

forward, we will be modeling our regional activities

system into the Environmental Committee. Going

environmental laws and other regulations to determine

centering on land utilization and procurement under theitems requiring compliance. We ensure compliance in a

new structure at each operational unit, in order tonumber of ways, such as by conducting on-site patrols

spread the activities horizontally within our Group. We

to check the state of compliance. We follow official

also use the “Office for the Coexistence of Living Things_

journals and other sources of information to stay

Promotion Guidelines” coordinated by JBIB (note), which

updated on revisions to environmental legislation and

we currently participate in. In fiscal 2014, we took a trial

ensure that our response is thorough.

run of the “land usage report card” in Yokohama Works.

We maintain voluntary control limits and manage
operations appropriately to ensure compliance with the
Air Pollution Control Law and the Water Pollution(note) JBIB : Japan Business Initiative for Biodiversity. 		
F ounded in 2008, the JBIB is a joint effort by Japanesecompanies to act on behalf of biodiversity preservation.

Control Law.
In f is c al 2013, w e c on tinue d t o c onduc t a nenvironmental check-up in our domestic affiliatedFurukawa Electric Group

companies by performing the said check-up at seven

Biodiversity Conservation Guidelines

operational units of the Company while responding to
the revised clean water act.
In fiscal 2014, our Japanese Group companies widely
implemented environmental law inspections (such as fordangerous goods under the Fire Services Act), including
support for the revised Water Pollution Prevention Law.
We also conduct annual checks for conceivable, clear
environmental impact to prevent environmental
accidents or prevent widespread impact in the event ofan accident.
According to our survey on the status of ourregulatory compliance, we were not in material violationof any regulations.

1.	Evaluate the effects that our businessactivities have on the ecosystem, andminimize the harmful effects while
maximizing the beneficial ones
2.	To sustainably use resources and conserve
biodiversity, consider more than ever theneed to carry out measures against
climate change, conserve resources,
recycle and reduce environmentallyhazardous substances
3.	Carry out activities in collaboration withlocal communities to conserve biodiversity

Please see the URL below for our response to theasbestos problem, and a list of PRTR compatible
materials.
CSR
http://www.furukawa.co.jp/english/csr/index.htm
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201557

Third-Party Opinion

Junichi Mizuo Ph. D. (Business Administration)
Professor, Faculty of Economics and Management, Surugadai
University: Outside Director of Aderans
In 1999, Changed from Shiseido to Surugadai University. Deputy Chairman, Japan Societyof Business Ethics Study; Head Researcher, Business Ethics Research Center; Outside
member of Business Ethics Committee, Seibu Holdings; In 2010, Visiting Scholar, Universityof London; Books: Marketing Ethics save The Company, Seisansei Pub., and others.

As a person who has promoted “the fusion of CSR theory and practice” by conducting CSR activities inbusiness while theorizing about CSR at university, I would like to give my impartial opinion here about the
Furukawa Electric Group’s Sustainability Report 2015.

Commendable points:

Expectations for the future:

In line with its Basic CSR Policy, Furukawa

My hope is that the employees and leaders will,

Electric has fully disclosed the manner in which

as one, aim to be an organization that grows

it steadily implements its CSR activities.

together.

One of the objectives of issuing a sustainability

It is the employees who actually conduct CSR

report is to contribute to business innovation

activities. The growth of employees will bring about

through CSR activities.

the development of the company and, in turn,

When a company clarifies its CSR principles andsociety. I hope these men and women will desire toenhances what I call the “think-and-act ability” of allgrow and, in the process of their endeavor, increase

its employees to independently think and act toward

the “capacity of humankind”.

a common goal, the seeds of new innovation areborn.
In this report, through the Special Feature articles

subordinates) and who promote the growth of theirat the beginning, Furukawa Electric is helping to“fellow employees” will enhance the company andcreate innovation by reporting on its pursuit oflead to a more advanced society.

renewable energies and new global-level measures.

In that sense, “The Honki Tour” being conducted

It has also built a management cycle for the

by Furukawa Electric’s president is just such asustainability activities given throughout the report,

servant-leader’s activity. I sincerely hope that thisconsisting of a basic concept (Plan), performance

activity spreads throughout the company and that

(Do), and new challenges and future policies (Check

all managers incorporate such tours into their regular+ Act), which has led to continual improvements.

workplace activities. This will motivate their fellow

Undertaking company-wide activities via this

employees and form a starting point from which an

PDCA cycle greatly helps to create innovation. Thiseven more creative and vibrant organization can

is precisely the kind of activity that “contributes toemerge.

the realization of a sustainable society,” as stated in
the company’s Corporate Philosophy.

58

Furthermore, acting as one with managers whoare servant-leaders (i.e. leaders who support theirFURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

List of all applicable companies
Page.

43

Occupational Health and Safety

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

37 Group companies in Japan
1 Tohoku Access Cable Company
2 FCM Co., Ltd.
3 Okano Electric Wire Co., Ltd.
4 Okumura Metals Co., Ltd.
5 NTEC Ltd.
6 KANZCC Co., Ltd.
7 Shodensha Co., Ltd.
8 Seiwa Giken Inc.
9 VISCAS Corp.
10 Foam Kasei Co., Ltd.
11 Furukawa S and D Co., Ltd.
12 Furukawa Techno Material Co., Ltd.
13 Furukawa Electric Advanced Engineering Co., Ltd.

Page.

48

Environmental Management

14 Myojodenki Co., Ltd.
15 Yokohama Drum Manufacturing Co., Ltd.
16 TOTOKU Electric Co., Ltd.
17 FITEC Corp.
18 Furukawa Automotive Systems Inc.
19 Furukawa Elecom Co., Ltd.
20 Furukawa Sangyo Kaisha, Ltd.
21	Furukawa Communication andBroadcasting Co., Ltd.
22 Furukawa Industrial Plastics Co., Ltd.
23 Furukawa Precision Engineering Co., Ltd.
24 Furukawa Research Inc.
25 Furukawa Electric Ecotec Co., Ltd.

26 Furukawa Electric Industrial Cable Co., Ltd.
27 Furukawa Electric Power Systems Co., Ltd.
28 The Furukawa Battery Co., Ltd.
29 Furukawa Nikko Power Generation Inc.
30 Furukawa New Leaf Co., Ltd.
31 Furukawa Network Solution Corp.
32	The Furukawa Finance and BusinessSupport Co., Ltd.
33 Furukawa Logistics Corp.
34 Furukawa Magnet Wire Co., Ltd.
35 Furukawa Life Service Inc.
36 Miharu Communications Inc.
37 Riken Electric Wire Co., Ltd.

Scope of the environmental management

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

13	Furukawa Communication andBroadcasting Co., Ltd.
14 Furukawa Industrial Plastics Co., Ltd.
15 Furukawa Precision Engineering Co.,Ltd.
16 Furukawa Techno Material Co., Ltd.
17 Furukawa Electric Advanced Engineering Co., Ltd.
18 Furukawa Electric Ecotec Co., Ltd.
19 Furukawa Electric Industrial Cable Co., Ltd.
20 Furukawa Electric Power Systems Co., Ltd.
21 The Furukawa Battery Co., Ltd.
22 Furukawa Logistics Corp.
23 Furukawa Magnet Wire Co., Ltd.

24 Furukawa Life Service Inc.
25 Miharu Communications Inc.
26 Riken Electric Wire Co., Ltd.
27 Furukawa Network Solution Corp.
28	The Furukawa Finance and BusinessSupport Co., Ltd.
29 Furukawa New Leaf Co., Ltd.
30 Furukawa Research Inc.
31. Foam Kasei Co., Ltd.
32. Furukawa Nikko Power Generation Inc.
33. Furukawa Elecom Co., Ltd.
34. Myojodenki Co., Ltd.

57 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
28
29

SHENYANG FURUKAWA CABLE CO., LTD.
Suzhou Furukawa Power Optic Cable Co., Ltd.
P. T. Tembaga Mulia Semanan
Trocellen GmbHPOLIFOAM MUANYAGFELDOLGOZO KFT
Trocellen Italia Holding S. r. l.
Trocellen Italy S. p. A.
Trocellen S. E. A. Sdn Bhd
Furukawa Industrial S. A. Produtos Eletricos
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.
DONGGUAN FURUKAWA TOTOKU OPT ELECTRONICS CO., LTD.
FURUKAWA TOTOKU (HONG KONG) LIMITED
Thai Furukawa Unicomm Engineering Co., Ltd.
FE Magnet Wire (Malaysia) Sdn. Bhd.
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.
PT. Furukawa Automotive Systems Indonesia
Furukawa Electric (Shenzhen) Co., Ltd.

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
55
56
57

Changchun Furukawa Automobil Harness 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) Ltd.
Furukawa Mexico S. A. De C.V.
American Furukawa, Inc.
Tianjin Jinhe Electric Engineering Co., Ltd.
Furukawa Automotive Systems Lima Philippines, Inc.
Furukawa Precision （Thailand） Co., Ltd.
Xin Furukawa Metal (Wuxi) Co., Ltd.
Furukawa Metal (Thailand) Public Co., Ltd.
SHANGHAI KORYU METALS CO., LTD.
Okumura Metals Malaysia Sdn. Bhd.
GUANGZHOU AUTOM AIRCONDITIONER PARTS CO., LTD.
OKUMURA METALS THAILAND 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 Limited
Furukawa Electric Singapore Pte. Ltd.
FURUKAWA SHIANHAI, LTD.
Furukawa (Thailand) Co., Ltd.
Furukawa Electric Hong Kong Limited

Furukawa Electric and the Group companies in Japan engaged in the production activities acquired ISO14001 certification pertaining toenvironmental management. We are also working to establish an environmental management structure that meets the requirement of ISO 14001,
etc., at overseas, and about 70% of Group companies overseas acquired the said certification.
Page.

49

Environmental Management

Scope of the environmental accounting

24 Group companies in Japan
1
2
3
4
5
6
7
8
9

Tohoku Access Cable Company
NTEC Ltd.
Okano Electric Wire Co., Ltd.
Okumura Metals Co., Ltd.
KANZCC Co., Ltd.
Shodensha Co., Ltd.
Seiwa Giken Inc.
TOTOKU Electric Co, Ltd.
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 The Furukawa Battery Co., Ltd.
20 Furukawa Magnet Wire Co., Ltd.
21 Miharu Communications Inc.
22 Riken Electric Wire Co., Ltd.
23 Foam Kasei Co., Ltd.
24 Furukawa Nikko Power Generation Inc.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201559

http://www.furukawa.co.jp/english/®

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