Furukawa Electric Group
Sustainability Report2013Furukawa Electric Group
Sustainability Report 2013

Contents
Initiatives for the Environment ............. 35
President Message ................................ 3

Environmental Management ................................ 35
Related Data ........................................................... 39
Material Flow ........................................................... 40
Targets and Performance ................................... 41
Environmentally Friendly Products ................... 42
Preventing Global Warming ................................. 46
Reducing Waste ...................................................... 47
Chemical Substance Management .................... 48
Environmental Risk Management ...................... 49
Biodiversity Conservation ................................... 51

Group Overview and Business Report........... 5
Company Profile....................................................... 5
Global Network ......................................................... 6
R&D Laboratories, developer and producer ..... 7
Business Field........................................................... 8
Key Indicators......................................................... 10
AT A GLANCE ........................................................ 11

Initiatives for Society .............................. 52

Special Feature:

Developing Next-Generation Businesses ...... 14

Relations with Our Customers........................... 52
Relations with Our Shareholders ...................... 55
Relations with Business Partners ..................... 56
Relations with Our Employees ........................... 57
Relations with Communities ............................... 68

Management............................................... 23
Management ............................................................ 23
CSR Management .................................................. 23
Corporate Governance......................................... 26
Risk Management................................................... 27
Compliance .............................................................. 28
Targets and Results.............................................. 32
Initiatives for the Environment .......................... 35

Editorial Policy........................................................ 73
Third-Party Opinion .............................................. 75
History of Furukawa Electric's CSR Activities .... 76
GRI Guideline Table of Contents ...................... 77

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Furukawa Electric Group Sustainability Report 2013

Furukawa Electric was founded in 1884 as a manufacturer of power cables and nonferrous metals. In the more than acentury that has elapsed since that time, we have moved forward in our principal business domains, creating theinfrastructure that forms the foundations for society and industry. Based on materials technology in a broad range offields that include copper, aluminum and plastic, through continuous technological innovation we have provided thetechnologies and businesses that society requires. Even amid today's rapidly changing management environment, we
keep our eyes fixed firmly on the future while paying close attention to the needs and expectations of society, which arechanging on a daily basis. By providing products and services that leverage the Furukawa Electric Group's distinctive
technologies, we aim to fulfill the Group's mission to contribute to the realization of a sustainable society.

Review of Fiscal 2013
Looking back on the global economy during fiscal 2013, ended March 31, 2013, the U.S. economy showed signs of a
gradual recovery, but Europe remained in the doldrums owing to the protracted debt crisis, while growth slowed in Asia,
Central and South America and other emerging markets. In Japan, conditions were characterized by yen appreciationand deflation until around the end of 2012. At that point, a change in administration coincided with a shift toward yen
depreciation and stock price increases, encouraging signs that the economy might be moving toward recovery. Under
these conditions, the Furukawa Electric Group's performance in fiscal 2013 was affected by lackluster demand in someparts of the metals and light metal segments, but recovery in the auto parts business contributed to higher sales andprofits for the Group as a whole.
As a medium- to long-term initiative to respond to the changes taking place in the markets in which the Furukawa
Electric Group operates, we restructured our power components business and consolidated our manufacturing sites forelectrical conducting materials and optical cables, proceeding with structural reforms in Japan. Overseas, we expanded
our electrodeposited copper foil manufacturing site in Taiwan, and established a new production site for optical fiber
compound overhead ground wires (OPGW) in Brazil. In these ways, we made steady progress on measures to accelerate
our overseas development, centering on emerging markets.

Building a Business Foundation That is Strong in the Face of Change and Aiming for Global Growth
In April 2013, the Furukawa Electric Group launched a new medium-term management plan, Furukawa G Plan 2015. The “G” in thisname refers to “group global growth,” expressing our intent to work together throughout the Group to achieve growth
globally. The concepts behind this plan are to “focus on infrastructure and automotive markets” and “build the basis forsustainable growth.”
Our reasons for focusing on the infrastructure and automotive markets are that these are areas in which we anticipate
market growth and believe that the need for technological innovation is increasing. We see energy as an issue facing allof humankind, and believe that there are major problems to address in terms of how to use energy efficiently and how tocontrol this use in an intelligent manner. For example, smart grids depend on control from telecommunication
technologies to use electricity efficiently—they are therefore a combination of light (communication) and electricity(energy). Businesses that make use of communication and energy are Furukawa Electric's forte. Automobiles, forexample, are a microcosm for infrastructure; here we are focusing on dramatically improving the efficiency of fossil fuels
and electricity (energy) to conserve on energy use. In other words, the Furukawa Electric Group should be able tocontribute the technological expertise it has cultivated over the years to resolve global-scale issues involving electricity
and communications infrastructure and the automotive markets.

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Furukawa Electric Group Sustainability Report 2013

Meanwhile, to “build the basis of sustainable growth,” the Furukawa Electric Group will conduct management to bestrong in the face of change. Our framework for growth is to “implement structural reform, “develop new,next-generation businesses” and “strengthen the Group's global management.” Our organizational system forstrengthening the Group's global management involves changing our previous company structure to introduce a business
unit system (strategic business units) and group the businesses that share strategies (including affiliates) to bolster
responsibilities and actions. We have also established groupwide sales and marketing functions to strengthen our
responses to markets and customers. While exerting the collective strength of the Group, we will make further progresson global development, centering on emerging markets.
The Furukawa Electric Group launched a new medium-term management plan, Furukawa G Plan 2015.
http://www.furukawa.co.jp/english/ir/feature/index.htm

The Furukawa Electric Group's Medium-term management plan

Develop New, Next-Generation Businesses with an Eye to Environmental Conservation
One of our initiatives to “build the basis of sustainable growth” is to develop new, next-generation businesses.
Environmental conservation is part of our responsibility to the next generation, and we view this as one of the topmost
priorities facing humankind. The Furukawa Electric Group's R&D orientation involves three themes aimed at the efficientuse of environment-friendly energy: “build high-capacity telecommunication infrastructure,” “create a smart electric
power infrastructure” and “make cars greener.” Each of these themes involves contributing to the efficient use ofenergy resources by combining material technologies, one of Furukawa Electric's major strengths. For details aboutdeveloping new, next-generation businesses, please refer to the special feature section of this report.

Remaining an Indispensible Corporate Citizen
Safety, quality and compliance are preconditions to any business activities. From the standpoint of corporate social
responsibility, we have formulated the Furukawa Electric Group CSR Code of Conduct, which defines core behaviors
for executives and employees. In addition to compliance, the code calls for behavior that reflects social norms andcorporate ethics and demonstrates a heightened awareness of safety and quality. Over the past several years, wehave made a thorough effort to prevent any recurrence of breaches of competition laws, and last year we put inplace a structure for complying with international bribery regulations, as well as competition laws. We are stepping
up our business continuity management activities each year, as well, and in February 2013 we acquired
certification under the ISO 22301 international standard covering the optical semiconductor business.
Going forward, we will concentrate in particular on understanding and responding to risks overseas, particularly inemerging markets, and putting appropriate structures in place.
The Furukawa Electric Group aims to strengthen communications with a host of stakeholders and make steady progressin contributing to a sustainable society. It is my sincere hope that we may continue to enjoy the support of our
stakeholders.
President
Mitsuyoshi Shibata

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Furukawa Electric Group Sustainability Report 2013

Group Overview and Business ReportCompany Profile

Company Name

Furukawa Electric Co., Ltd.

President

Mitsuyoshi Shibata

Founded1884

Established

1896

Paid-in Capital(As of March 31, 2013)¥69,395 million

Net sales¥924,717 million (Consolidated)(Years ended March 31, 2013) ¥396,154 million (Non-Consolidated)
Number of Employees(As of March 31, 2013)

50,342 (Consolidated)
3,971 (Non-Consolidated)

Head Office

Marunouchi Nakadori Bldg., 2-3, Marunouchi 2-chome, Chiyodaku, Tokyo 100-8322, JapanTEL+81-3-3286-3001

Major Products and Services
1.

2.

3.

4.

5.

6.

Telecommunications
Optical fiber cables / Metal communication cables / Semiconductor optical devices / Electronic appliance wires /Optical components / Network equipments / Optical fiber cable accessories and installations / CATV system /Radio products, etc.
Energy and Industrial Products
Copper wires and Aluminum wires / Power transmission cable / Insulated wires / Power transmission cable
accessories and installations / Cable conduits / Water-feeding pipe materials / Foam products / UV tapes forsemiconductor manufacturing / Electrical Insulation 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.
Metals
Copper and copper alloy products (plates, strips, pipes, rods, foils, and wires) / Functional surface products (plating)/
Electrodeposited copper foil / Pocessed products for electronic parts / Superconducting products / Special metalmaterials (Shape-memory and super-elastic alloys), etc.
Light Metals
Aluminum plates / Extruded aluminum products / Casting products / Forged products / Processed light metal
products, etc.
Services and Others
Logistics / Information processing service / Software development / Service business (real-estate leasing, hydraulicpower generation and so on), etc.

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Furukawa Electric Group Sustainability Report 2013

Global Network
As of July, 2013

(note) Main subsidiaries and equity-method affiliates

6Furukawa Electric Group Sustainability Report 2013

R&D Laboratories, developer and producer

FETI: Furukawa Electric
Institute of Technology(Hungary)

OFS Labs. (USA)SuperPower (USA)

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

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

ng/profile/ofs.htm

ai/eng/profile/superpower.htm

http://www.furukawa.co.jp/kenkai/eng- Fibers- Components- 2G HTS wire

/profile/feti.htm- Simulation development- Algorithm development- Process optimization

Metal ResearchLaboratories (Nikko)

Power & System
Laboratories (Chiba)

Polymer Materials R&D
Laboratories (Hiratsuka)

Yokohama R&D
Laboratories (Yokohama)

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

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

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

http://www.furukawa.co.jp/kekenkai/eng/profile/metakenenkai/eng/profile/powerandeng/profile/kankyoelec.htm

nkai/eng/profile/yokoken.htm.htm

sys.htm

FITEL Photonics
Laboratories (Chiba)
http://www.furukawa.co.jp/kPower & System Laboratories(Hiratsuka)
http://www.furukawa.co.jp/kenkai/
eng/profile/powerandsys.htm

enkai/eng/profile/hikaken.htmAutomotive System & Device
Laboratories(Hiratsuka)
http://www.furukawa.co.jp/kenkai/
eng/profile/densou.htm

7Furukawa Electric Group Sustainability Report 2013

Business Field

Telecommunication
Optical communication is an advanced technology that meets the needs of the communication age,
Furukawa Electric provides diversified support for information-oriented society.
We are living in an age of global communication. Currently, the Internet Links the entire world, allowing information fromoverseas to be obtained in real time, not only in offices but also at home. In this advanced information-oriented society,optical communication systems are a key technology for enabling people to access important information easily.
Furukawa Electric is firmly supporting an ideal base for communication by providing various technologies and productsthat realize the "FTTH" project, in which optical fiber networks are provided to homes.
Electronics Products
http://www.furukawa.co.jp/english/seihin/it.htm

Electronics
Ever-evolving Semiconductors and their Peripheral Technologies Amplify
New Possibilities for the Electronics Industry.
Semiconductors are the basis on which electronic products are continually decreasing in size, and increasing infunctional capability at a rapid pace. In LSIs, several hundred thousand to tens of millions of electronic components areincorporated on a chip in an area of several square mm, to process large amounts of information. In the field ofsemiconductors, Furukawa Electric has developed many products ranging from compound semiconductors to complete
devices. It has also provided various other products that are densely mounted in the periphery of semiconductors; reflow
ovens for mounting these products; and heat pipes essential for cooling microprocessors. Each of these products isbacked by reliable, established technologies.
Electronics Products
http://www.furukawa.co.jp/english/seihin/electronics.htm

Automobile
Themes Are Safety, Comfort, and Harmony with Environments. Furukawa 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 products forming comfortabletransportation environments. In particular, in the field of automobiles, we offer various electronic components andaluminum body materials including wire harnesses. Furthermore, we are challenging advanced technologies such as ITS
systems and has established a firm status as an indispensable supplier for the automobile industry.
Automobile Products
http://www.furukawa.co.jp/english/seihin/car.htm

8Furukawa Electric Group Sustainability Report 2013

EnergyUsing 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 and industries as electric power. Furukawa Electric has been meeting theincreasing electric power demand through "power transmission systems" and "power distribution cables". We are also
actively responding to the demands of the times for resource saving and environmental preservation. Furukawa is
contributing to society by providing various leading-edge technologies such as superconductors and solar generation
systems, which are the focus of wide spread attention as energy sources for the next generation.
Energy Products
http://www.furukawa.co.jp/english/seihin/energy.htm

Construction
Unifying Advanced Material and Processing Technologies Together While Creating Amenity
Environments for Cities, Buildings, and Housings
What is a comfortable space? Whether it is required in a city or a building, constructing such a space requires
correct perspective and advanced technologies for achieving ideals. While applying the accumulated technologies,
Furukawa Electric has been developing various products supporting comfortable lives. Our objective for pursuing
harmony between the functions of peoples' lives and environments is found in each of our products ranging fromconstruction materials through wire materials and fire prevention products to housing facilities.
Construction Products
http://www.furukawa.co.jp/english/seihin/construction.htm

Material
Constant Challenges to Material Renovation and Development of New Materials Are Facilitating
Unlimited Extension of Applications in Every Industry.
Over 120 years since its establishment, Furukawa Electric has been constantly offering advanced materials ranging fromcopper and aluminum materials to wires and cables, as well as various related materials. Constant challenges to material
innovation are facilitating creation of materials with new potentiality and unlimited extension of applications from familiar
products to the high technology field. These materials dramatically change our lives and the foundation of the industries.
Material Products
http://www.furukawa.co.jp/english/seihin/material.htm

9Furukawa Electric Group Sustainability Report 2013

Key Indicators
Net sales

Operating income (loss)

Operating income (loss)

Net income (loss)(Ratio to net sales)

Net income per common share

Return on equity(note) Shareholders' equity excludes minority interest and gain andloss on deferred hedge.

Cash flows

10Furukawa Electric Group Sustainability Report 2013

AT A GLANCE
Net sales by Main Business Segment

Telecommunications
Optical Fiber and Cable

Streamline global sites and expanding sales routes ingrowth markets
Brazil: Reinforce optical cable production capacity
Japan: Consolidate optical cable operations at the Mie
Plant.

Brazil investing
aggressively ininfrastructure inpreparation for the
Soccer World Cup
and the Olympics

Optical Parts and Networking Equipment

Introduce new products for next-generation high-speedtransmission (digital coherent communication)
Develop narrow linewidth micro ITLA (opticaltransmission modules)
Overview for the Year Ended March 31, 2013
http://www.furukawa.co.jp/english/ir/achiev
ements/seg_jyotsu.htm(To “For Investors” content)

11

Conventionally sized
ITLA (top) and micro
ITLA (bottom)

Furukawa Electric Group Sustainability Report 2013

Energy and Industrial products
Ultrahigh-Voltage Transmission Cables

Double the capacity of submarine transmission cables
Complete large-scale vertical lay-up machine by end of fiscal
year

Laying a submarinetransmission cable

Commence full-scale operation in FY2015 (VISCAS, anaffiliated company)

Power Supply and Distribution Cables

Respond to demand for new energies (wind power, solar
power, etc.)

Overview for the Year Ended
March 31, 2013
http://www.furukawa.co.jp/english/ir/achievements/seg_energy.htm(To “For Investors” content)

Double production of flexible plastic pipe to meet increased
megasolar demandConceptual image of theoffshore wind farmproject in Fukushima
Prefecture

Proceed with offshore wind farm project in Fukushima
Prefecture

Electronics and Automotive systems
Automotive Parts

Establish regional headquarters to be in charge of sales, design
and procurement
China: Establish regional headquarters in Shanghai in July 2013
Cultivate demand from local automakers

Wire harness factory in
China

Expand production bases, focused on Southeast Asia andCentral and South America
Mexico: Establish new company, scheduled to commence
operations in January 2014
Philippines: Expand new factory, scheduled to go on line in
January 2014

Overview for the Year Ended
March 31, 2013hhttp://www.furukawa.co.jp/englis
h/ir/achievements/seg_electronics.htm(To “For Investors” content)

Maintain or increase share for SRC (automotive airbag parts)

Brazil, India: Prepare for local production in anticipation that
airbags will become mandatory (operational in FY2015)12

SCR connector

Furukawa Electric Group Sustainability Report 2013

MetalsElectrodeposited Copper Foil

Develop the hybrid automobile market
Shift production to Taiwan, where electricity costs are low

New factory in Taiwan

Overview for the Year Ended March
31, 2013
http://www.furukawa.co.jp/english/ir/
achievements/seg_material.htm(To “For Investors” content)

Light metals
Rolled Aluminum Products

Become a major globally competitive aluminum company
Through the business integration of Furukawa-Sky and Sumitomo Light Metal
Industries, become No. 3 in the world in terms of production capacity (including
overseas plants that are under construction)

Logo of the merged company

Overview for the Year Ended March
31, 2013
http://www.furukawa.co.jp/english/ir/
achievements/seg_lightmetals.htm(To “For Investors” content)(note) In line with a management integration on October 1, 2013, the integrated company(UACJ) will become an equity-method affiliate. Consequently, net sales and operating income areexcluded from October 1, 2013.

13

Furukawa Electric Group Sustainability Report 2013

International society is facing a number of issues in the energy sector. With the balance
between natural resource supply and demand growing tighter, demand for energy continues
to grow. Environmental risks due to fuel consumption are increasing. Furukawa Electric ismaking a proactive effort to address international environmental issues by pursuing theefficient use of energy resources.
In April 2013, we announced Furukawa G Plan 2015, the medium-term management plan for
the Furukawa Electric Group. This plan calls for the promotion of businesses that use
energy efficiently and in an environmentally friendly manner in the three essential
consumer categories of energy, telecommunications and automobiles. We have set “createa smart electric power infrastructure, “build high-capacity telecommunication
infrastructure” and “make cars greener” as shared goals for the Group going forward, and
our R&D, production and sales functions will work together to achieve these goals.
Furukawa Electric has developed a host of products processed from diverse materials,
including copper, aluminum and plastic. By deepening, broadening and combining material
technologies at Furukawa Electric, we aim to pursue the groupwide development ofinnovative new products and technologies on global scale. We have identified three sectorsthat are closely related to everyday life; by making use of products in these areas, we aim
to promote the efficient use of energy resources and contribute to ongoing environmental
improvements.

14

Hisaharu Yanagawa
General Manager ofResearch andDevelopment DivisionCorporate Senior Vice
President

Furukawa Electric Group Sustainability Report 2013

The volume of global data traffic is projected to increase at an annual rate of 40%, highlighting the need for high-capacity
telecommunication networks that take advantage of advances in optical communication technology. The Furukawa
Electric Group contributes to bringing high-capacity telecommunication infrastructure into practical use by using
advanced functional optical components developed through its leading-edge photonics technology.
In addition to some of the world's most advanced optical fiber cables, Furukawa Electric supplies such opticalcomponents as semiconductor lasers, optical waveguides and optical switches, as well as optical fiber amplifiers, routersand other optical transmission equipment. In recent years, attention has focused on the development of lasers andrelated devices that are used in digital coherent communication systems to realize higher volumes of data transmission
than conventional systems. As devices become compact in size and advanced in functionality, a huge volume of
information can be communicated with lower power consumption.
We will utilize the expertise we have built up in optical communications to increase data center capacity while reducing
their power consumption and pursuing space savings. At the same time, we are undertaking R&D initiatives toward more
efficient network operation and ultrahigh-capacity communications.

•

Digital coherent communication•

Integrated signal light source•

High-density optical wiring•

Spatial multiplexing•

Optical engine•

Ultrahigh-speed wireless communication•

Optical communication with high spectral
efficiency

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Furukawa Electric Group Sustainability Report 2013

Pick upHigh Speed and Quality
Digital Coherent Communication
Given the demand to communicate increasing volumes of data at high speed, digital coherent communication is garnering
attention for its ability to handle higher capacity by utilizing optical phase and polarization.
The Furukawa Electric Group has developed
some of the elemental technologies neededfor digital coherent communication, such as
sophisticated optical waveguide technology
for controlling phases and polarization,
contributing to its practical realization.

Pick upUsing Optical Wiring to Achieve Ultrahigh-Speed Transmission and Reduce Power
Consumption
Optical Interconnection
In recent years, dramatic increases in the volume of information handled by networks and data centers has highlighted
the limitations inherent in using electrical wiring to connect massive computers. Optical interconnection, using opticalconnectors and wiring, is heralded as an alternative approach.
This new technology overcomes the distance and speed limitations of electrical wiring transmission capacity. The
technology is also environmentally friendly, as it consumes less electric power.
The Furukawa Electric Group is developing elemental technologies for optical interconnection, such as optical modules,
optical connectors and optical fibers.

Ultrahigh-speed optical interconnection

Pick up

Optical Fiber That Enables Spatial Multiplexed Optical Transmission
Multicore Fiber:
Current optical fibers have a single “core” where optical signals propagate. Multicore fiber, as its name suggests, hasmore than one core.
As the transmission capacity of existing optical fiber transmission lines is predicted to become insufficient in the near
future, expectations for the introduction of innovative technologies are growing. For example,
spatial multiplexed optical transmission technology can be used to substantially increase thevolume of data handled by transmission networks made of existing optical fiber.
In addition to multicore fiber, the Furukawa Electyric Group is promoting R&D on incidental
technology, such as multicore amplifiers and connectors, aiming for commercial production in 2020or later.
Multicore fiber:

16
Multicore fiberFurukawa Electric Group Sustainability Report 2013

The Furukawa Electric Group boasts a long history in the development of power transmission technologies that provide
the basic infrastructure for today's society. We are leveraging the technologies we have cultivated in the power
infrastructure business to contribute to the realization of a society that employs smart grids to use energy efficiently.
We already contribute the efficient supply of electricity by providing low-, medium- and ultrahigh-voltage cables andcomponents. In addition, we are developing high-temperature superconducting power cables that are expected totransmit electricity efficiently and greatly reduce power loss during transmission. Furthermore, we are targeting thenatural supply of stable energies by participating in an offshore floating wind farm project and developing an energy
storage system to improve the efficiency of energy use.

•

Energy storage system•

EV charger connectors and devices•

Automatic control systems for power•

V2H/V2G system

distribution•

High-temperature superconducting cables•

Power cables•

High-temperature superconducting devices•

Terminations

17

Furukawa Electric Group Sustainability Report 2013

Pick up

Reducing Peak Power Consumption and Making Efficient Use of Nighttime Power
Package-Type Energy Storage System
The importance of storage batteries has attracted more widespread recognition in the aftermath of the Great East
Japan Earthquake.
Furukawa Electric's package-type energy storage system serves as an emergency power source to sustain operationsof a limited amount of essential electrical equipment in the event of a power outage. This system uses electricity
efficiently by reducing consumption during times of peak power demand and making use of nighttime power generation.
For customers, reduced peak electricity consumption translates to lower base rates and allows for the installation ofequipment to ensure safe and stable operation, enabling a partial recovery of capital investment.

Peak power reduction

Package-type energy storage system

Pick up

Participating in the Experimental Offshore Floating Wind Farm Project
Riser Cables, Terminations
Furukawa Electric is in charge of the power supply for the experimental project. We are building and testing a power
supply system capable of securely delivering control signals and power generated at the offshore floating wind farm to
the shore through submarine cables. Since the force of waves and tides cause floating wind farms to constantly pitch,
the submarine cables are also required to track dynamic movement under severe conditions. We are helping to realize
the world's largest offshore floating wind farm by developing an ultrahigh-voltage riser cable system that mobilizes the
dynamic cable technology cultivated at Furukawa Electric.
Schematic diagram of the power supply system at offshore floating wind farms

18

Furukawa Electric Group Sustainability Report 2013

Pick up

The World's Most Advanced 275kV-3kA High-Temperature Superconducting Cables
High-Temperature Superconducting Cables
Technology is needed to ensure the stable supply of power, which underpins economic society, as is highly efficienttransmission technology to send this power without waste from its source of generation.
In the past, 66kV was mainstream in the development of superconductive transmission cable technologies, but in recent
years demand for transmission cables with even higher voltage has emerged, particularly overseas. As this technology
takes hold, it is likely to be introduced into new infrastructure in Japan, as well as in other parts of Asia.

30m 275kV superconducting cable verification test (Shenyang)

19

Furukawa Electric Group Sustainability Report 2013

To resolve issues in the field of transportation equipment, including energy problems and rising CO2 emissions, theFurukawa Electric Group is utilizing its proprietary materials capabilities to make cars greener, such as by making
automotive parts more lightweight to improve energy efficiency.
For example, we use our metal structure control technology and property modification and processing technologies forplastics to make automotive parts (aluminum body materials that are highly rigid and conduct heat well, highly conductive
and rigid aluminum wire harnesses, and high-strength foamed materials used in electronic components) more lightweight,
improving fuel efficiency and leading to CO2 reductions. We also employ our technologies for designing plastics andmaking wiring thinner to make highly compact and reliable windings for alternators, which contributes to higher energy
efficiency on electric and hybrid vehicles (EVs/HVs). Going forward, in addition to making parts more compact and lightweight, we aim to become involved in overall energy management efficiency for automobiles.

•

High-strength foam components•

Thick insulation film rectangular wire•

High-strength aluminum alloys•

Energy management system•

Thin insulation film enameled wire•

Thermal energy control

20

Furukawa Electric Group Sustainability Report 2013

Pick upAchieving Lighter Weight by Changing the Conductor Material from Copper to Aluminum
Aluminum Wire, Wire Harnesses
Wire harnesses are the tied bunches of automobile electric cables, or wires, that provide electrical connections to avehicle's electronic components.
The weight of wire harnesses has grown in recent years, as vehicles include more electronics and automakers pursue
higher levels of functionality to make automobiles safer and more comfortable. Wiring accounts for around 60% of theweight of wire harnesses. We are taking a variety of approaches to reduce their weight, such as by making insulative
coatings thinner and employing smaller-diameter wires.
As another method for making wiring lighter weight, we have developed alloy-based aluminum wire for conducting
electricity in place of copper. Using this aluminum wire in some locations makes the harness more lightweight.
By making wires thinner and using improved anticorrosion technology, we plan to increase the scope of application foraluminum wires and help to make automobiles even more lightweight.

Wire harness

Aluminum wire

Pick up

Making EV/HV Drive Motors More Highly Efficient and Compact
High-Withstand Voltage Rectangular Wires
Making EV/HV drive motors more compact requires highly insulative and reliable windings.
High-withstand voltage rectangular wires comprise a rectangular conductor, an enamel layer and an extruded resin layer.
In addition to being highly insulative, the rectangular shape of these wires gives them a high space factor, and their
enamel layer enables them to withstand heat and contributes to reliability. As a result, these wires help to make EV/HV
drive motors more compact.

Rectangular wire for EV/HV drive motors

21Furukawa Electric Group Sustainability Report 2013

Pick up

Monitoring the Degradation in Lead Battery Discharge Performance
On-Board Lead Battery Status Detection Sensors
A battery's internal resistance (note 1) is an extremely important factor for determining its discharging performance anddegree of depletion. However, using conventional methods does not allow the internal resistance of lead batteries could
to be measured when the engine is turned off or on EVs/HVs not equipped with starter motors.
Furukawa Electric has developed the technologies to install a discharging circuit in the sensor and calculate the internal
resistance based on current and voltage response. For the first time in the world, using this sensor allows continuous
monitoring of a lead battery's status, even when the engine is turned off and on EVs/HVs without starter motors. Thisaddition helps to improve automotive fuel performance and reduce CO2.
(note 1) Internal resistance refers to the electrical resistance within a battery. The higher the internal resistance, the lower the voltage will
be when discharging takes place. In general, internal resistance goes up as a battery deteriorates.

Lead battery status detection sensor installed in a vehicle

22

Furukawa Electric Group Sustainability Report 2013

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

Furukawa Electric Group Philosophy (Revised August, 2007)
Corporate Philosophy
Drawing on more than a century of expertise in the development and fabrication of advanced materials, we willcontribute to the realization of a sustainable society through continuous technological innovation.
Management Philosophy
With an eye to the future, 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 areaof endeavor.
Nurture human resources at every level, so that we can become a more diverse and creative organization.
The Furukawa Electric Group Credo
1. Maintain high ethical standards, and value honesty and integrity above all.
2. Continually improve, innovate, and lead, in every area of endeavor.
3. Take a hands-on approach that addresses the reality of every situation-in the office, at the factory,
and on site.
4. Be proactive-take the initiative and work with others, persevering until a solution is found.
5. Maintain open channels of communication between departments and divisions, so that we can shareideals and help each other grow.

Basic Policy and CSR Code of Conduct
Each of the companies in the Furukawa Electric Group develops CSR activities in line with the following Group basic
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, and ethics asa member of the international community.
・We will strive to maintain and build sound and friendly relationships with all of our stakeholders andcontribute to the sustainable development of society.
The CSR Code of Conduct defines fundamental rules of behavior for Furukawa Electric executives and employees tofollow in conducting corporate activities based on the Group philosophy and from the perspective of corporate social
responsibility.

23

Furukawa Electric Group Sustainability Report 2013

The Furukawa Electric Group CSR Code of Conduct (Revised March, 2011)
1. Human rights
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
CSR Code of Conduct
http://www.furukawa.co.jp/english/csr/management/csr_manage_conduct.htm

CSR Promotion Framework
The Furukawa Electric Group has established the CSR and Risk Management Committee, which comprises members ofmanagement, as the structure for supervising and promoting CSR activities throughout the Group, including risk
management, internal control, compliance and social contribution. We have set up the CSR Department within our
Administration & CSR Division. This department promotes CSR by facilitating communication among various committees
and corporate departments.
CSR Promotion Framework

24Furukawa Electric Group Sustainability Report 2013

Stakeholder Relations
The Furukawa Electric Group properly monitors our business practices and endeavors to establish structures for
improving them even more, so as to steadily meet our responsibilities to our various stakeholders, who view us fromdiffering perspectives.
Main Stakeholders and Main Responsibilities

Main
Stakeholders
Environment

Customers

Suppliers

Shareholders

Employees

Local
communities

Main Responsibilities

Means of Communication• Reduce emission of gases that contribute to
global warming• Promote energy conservation and recycling• Protect biodiversity• Curtail industrial waste• Manage and reduce harmful chemical
substances• Compliance with laws and regulations• Compliance with the Kyoto Protocol and the
Nagoya Protocol on biodiversity• Response to environmental activities of the
Ministry of the Environment and othergovernment organs• Research and information exchange on(Note 1)
biodiversity preservation through JBIB

• Maintain and improve the quality of products,
operations and services• Offer products and services that are useful tosociety• Provide solutions to issues confronting
customers through a broad array oftechnologies and know-how• Dialogue through regular business• Website, Sustainability Reports• Dialogue at technology exhibitions, trade shows• Establish a sound relationship founded on fairtrading in compliance with laws andregulations• Realize CSR throughout the supply chain byimplementing CSR Deployment Guideline for
Business Partners• Partner Meetings• Dialogue through regular business• CSR surveys• Feedback interviews on results of partner
evaluations• Provide appropriate returns• Ensure timely and appropriate disclosure• Enhance corporate value• Sustainability Reports• General meetings of shareholders, shareholder
reports• Management briefings and results presentations• Investor visits• Shareholder plant tours• Respect human rights• Cultivate and appropriately value and reward
human resources• Promote health, including occupational healthand safety, as well as mental health• Support diverse workstyles and work/lifebalance• Internal newsletter, intranet• Management briefings• Nurture future generation• Promote sporting and cultural activities• Live in harmony with the natural environment
and local
communities• Factory tours• Cooperate with and sponsor sports andtraditional events• Support the activities of and collaborate withlocal NPOs
• Preserve 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 behalfof biodiversity preservation.

25

Furukawa Electric Group Sustainability Report 2013

Corporate Governance
Basic Philosophy
Based on the Furukawa Electric Group Corporate Philosophy, Furukawa Electric and the Furukawa Electric Group strives toenhance its performance by promptly responding to changes in the business environment and the market through efficientmanagement based on prompt decision making . At the same time, we ensure sound management by developing andestablishing an internal control system and applying it effectively. We uphold the basic policy of seeking to expand and develop
our operations on a sustainable basis and to raise corporate value through these efforts.
We operate our businesses in harmony with society and the environment in accordance with appropriate corporate information
disclosure, compliance, and risk management, so we strive to maintain and build sound and friendly relationships with all of our
stakeholders, including shareholders, business partners, local communities and employees, and contribute to the sustainable
development of society.
Corporate governance organization chart

26

Furukawa Electric Group Sustainability Report 2013

Risk Management
Overview of the Risk Management Structure
Our CSR and Risk Management Committee conducts regular risk assessments to determine what risks exist, define
important risks that require a companywide response and prioritize measures to counter these risks. Through specializedcommittee activities in segment-specific areas—environment, quality, safety, disaster prevention—we are working tomanage the risks that relate to our business activities.
To CSR Management “CSR Promotion Framework”
http://www.furukawa.co.jp/english/csr/management/csr_manage.htm#manage03

In line with the Group's development of business in global markets, the risks that it faces grow more diverse and complex
each year. Going forward, we will focus in particular on risks related to business activities overseas, centered on
emerging markets, and strive to reinforce risk management from a supply chain perspective.
Important Companywide Risks•

Compliance•

Information security•

Quality control•

Affiliated company controls•

Large-scale disasters, such as earthquakes

In the event a large-scale disaster occurs or other such risk materializes, the Group will establish Emergency Response
Headquarters, headed by the president, and Site Response Headquarters that defines each department's roles andclarifies them ahead of time. We also conduct regular drills on preparating initial action manuals, stockpiling necessary
supplies, and setting up communication structures and systems to confirm people's safety.

Business Continuity Management (BCM)
Promoting Disaster Countermeasures and Crisis Management
In March 2012, the Cabinet Office revised its outlook on the risk of tsunamis accompanying large-scale earthquakes,
such as one in the Tonankai region. Based on this assessment, Furukawa Electric has introduced disastercountermeasures at its domestic sites that take this risk into account. To prevent damage to customers and employees,
we have created tsunami evacuation maps for each works and erected instruction boards showing tsunami evacuationroutes along major hallways and facilities.
Based on our experience of the flooding in Thailand in October 2011, we have consolidated the crisis management
regulations and manuals that had been produced independently by domestic and overseas operations, publicizing themthroughout the Group in July 2012.

Instruction board showing tsunami evacuation route27

Furukawa Electric Group Sustainability Report 2013

Acquiring ISO 22301 Certification
The international ISO 22301 standard for business continuity management systems (BCMS) was formally issued in May
2012. In response to customer requests from a global perspective, we obtained ISO 22301 system certification in
February 2013 (scope of application: optical semiconductor business). We were the first Japanese integrated
manufacturer of power cables and non-ferrous metals to obtain this certification.
As part of our efforts to put in place structures in order to obtain this certification, in September 2012 we conductededucation for internal auditors on ISO 22301, attended by 14 people at the heads of business divisions.

ISO 22301 certification award ceremony

BCMS internal auditor training

Information Security
The Furukawa Electric Group is pursuing one of the highest-priority risks it faces, in the area of information security, byundertaking measures from multiple perspectives. From the standpoint of protecting intellectual property, we conducthearings at overseas sites and other activities to strengthen measures for countering leaks of intangible assets. From an
information system perspective, we have measures to prevent information leaks that focus on the management of
hardware (mainly mobile devices) taken outside the Company. We also promote the management of IT assets throughmeasures such as software license management. We have distributed to all departments self-check lists related to the
Act on the Prohibition of Unauthorized Computer Access, the Unfair Competition Protection Act (trade secrets) and the
Act on the Protection of Personal Information. In our aim for ongoing improvement, we solicit feedback from divisions
promoting these activities.

Compliance
Basic Stance
The Furukawa Electric Group regards compliance as “not only observing laws and regulations, but also as acting inaccordance with the values and ethics required of the company and its employees as responsible members of society.”
Accordingly, we perform our compliance activities in line with three promises: to be aware, speak and rectify.
Three Musts for Compliance Activities
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 andexpectations?
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.

28

Furukawa Electric Group Sustainability Report 2013

Compliance Activities
We conduct a host of training and awareness activities in the aim of instilling compliance awareness among all employees

Compliance Education
Our primary shared educational materials are the Furukawa Electric Group CSR Code of Conduct and its corresponding
Furukawa Electric Group CSR Compliance Handbook. We distribute this handbook to Furukawa Electric Group
employees and take many opportunities to make use of it. The Furukawa Electric Group conducts compliance educationfor employees at every level of the Company, from new recruits to directors. At the same time, we hold theme-based
group training such as seminars related to the Anti-Monopoly Act and e-learning courses, and conduct groupwide
compliance education.
Education Results (fiscal 2013)

Course Name

Rank-based
education(note 1)

TargetTraining for

Newly apointed

executives

executives

Training for
managers

Participants

Furukawa
Electric

Group

21

Yes

Yes

Newly apointed
managers

48

Yes

Yes

Training for
managers andassistant managers

Newly apointed
managers and assistantmanagers

83

Yes

Yes

Training for chief
operators

Chief operators

36

Yes

No

Training for new
employees

New employees

59

Yes

Yes

Courses related to

Executives

About 80Yes

Yesregulations

Employees

About 480

Yes

Yes

Course on
Subcontractor Law

Procurement
departments,
manufacturing
departments

About 330

Yes

Yes

e-learning on
Subcontractor Law

Procurement
departments,
manufacturing
departments

About 960

YesNo

e-learning onexport control

Employees(note 2)

About 2,500

Yes

No

competition laws
and bribery

Theme-specificeducation(note 1) In rank-based education, manager training and new employee training includes education on human rights.
(note 2) In direct departments, conducted for chief operators and above.

29

Furukawa Electric Group Sustainability Report 2013

Initiatives in Compliance Months
Furukawa Electric has designed October and November as compliance months. All employees conduct joint activities
related to compliance, confirming core items and performing self-checks to develop their compliance awareness.

Principal Initiatives during Fiscal 2013 Compliance Months
1. Conduct workplace self-checks according to section-specific checklist<Section-Specific Checklist>
1) Anti- Monopoly Act
2) Worker Dispatching Act
3) Subcontracting transactions4) Occupational safety
5) Asset protection6) Information security
2. Conduct workplace meetings
3. Courses on competition laws and bribery regulations
4. Submission of Compliance Pledge (for assistant managers, managers and above)
People at Group companies also conducted activities involving the section-specific checklist and participated in Groupcourses. This sharing of information is designed to raise the level of awareness throughout the Group.

Employee Compliance Awareness Surveys
We conduct compliance awareness surveys targeting the employees of Furukawa Electric and affiliated companies inalternate years. Designed to gauge employee awareness and understanding of compliance, these surveys aim toencourage recognition of compliance. In fiscal 2013, we conducted surveys of employees from 21 Group companies,
receiving questionnaire responses from 2,660. As a result, we were able to confirm that the degree of compliancepenetration has improved since the previous survey, taken in fiscal 2011.

Internal Reporting System
The Furukawa Electric Group has introduced an internal reporting system and works toward the early detection andcorrection of incidents of corruption. The Company has in place an internal reporting desk as well as an externalreporting desk that makes use of outside third-party institutions (the Furukawa Electric Group Hotline), both of whichallow employees to make reports anonymously. An internal reporting secretariat manages the content of such reports
stringently, taking ample care to prevent people making such reports from suffering any negative impacts, looking into
issues swiftly and taking appropriate action.

Security Trade Control
Furukawa Electric's export transactions tend to increase every year. In response to this trend, we are stepping up ourefforts to put in place and continually reinforce our management systems that comply with international regimes related
to weapons of mass destruction and civilian products that can be converted to weapons.
In exporting products, we conduct transaction screenings based on our Security Trade Control Regulations to ensurecompliance with relevant legislation and are careful to prevent roundabout exports to countries of concern.
In fiscal 2013, we conducted employee education via e-learning on our export controls, involving some 2,500 people.

Creating an Anti-Bribery System
Anti-bribery laws, including but not limited to the U.S. Foreign Corrupt Practices Act and the UK Bribery Act haverecently being strengthened, and government agencies are increasingly active on their enforcement. Accordingly, theFurukawa Electric group is continuously determined that the groupwide management of bribery risks is of the utmost
importance.
The 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 Anti-Bribery Statement (PDF 29KB)
http://www.furukawa.co.jp/english/csr/management/anti-bribery_e.pdf

30Furukawa Electric Group Sustainability Report 2013

Group Company Initiatives (Fiscal 2013)
1. Publicizing policies and guidelines
2. Selecting people to be in charge of setting up systems
3. Creating operational regulations and processes
4. Conducting internal education
In addition to conducting anti-bribery education at each company, we conduct
e-learning by distributing video and text lessons to employees, providing
educational content that is common throughout the Group for individualcompanies to use.
In fiscal 2014, we will create a monitoring system to determine the state ofoperation at each company in an effort to reinforce the management systemfurther.

Competition and anti-bribery compliance training
materials (English, Chinese, Japanese)

Anti-Monopoly Act Violations and Initiatives to Prevent Recurrence
The Company has been investigated by overseas authorities in regard to an auto parts cartel in the past. In April 2013,
we were ordered by the Canadian authorities to C$5 million fine, and in July 2013, we were assessed a penalty of €4,015
thousand. Also, in November 2012 we became subject to an investigation by the Japan Fair Trade Commission fortransactions related to overhead power transmission line construction. This investigation is currently ongoing.
We would like to humbly ask the forgiveness of our stakeholders for any distress or trouble this series of cartel-related
incidents may have caused.
Furukawa Electric set up a third-party investigation committee centering on outside experts with regard to violations of
the Anti-Monopoly Act. This committee submitted its report to the Board of Directors in December 2009, along withrecommendations on preventing recurrence. Based on this report, management took the lead on efforts to more firmly
instill corporate ethics, including compliance. At the same time, internal rules and procedures involving contact withother companies in the same industry and in relation to price determination were formulated and improved. We
conducted thorough compliance training, strengthened monitoring by the internal auditing department and steadily
introduced other measures to prevent recurrence. Going forward, we will be mindful of compliance with competition laws,
bribery legislation and other laws and risks as our business develops globally, working to ensure thorough compliance at
Furukawa Electric and Group companies in Japan and overseas.

31

Furukawa Electric Group Sustainability Report 2013

Targets and Results
Risk Management / Internal Controls / Compliance[Achievement]

FY2013
Targets

A: Achieved
B: Partially achieved
C: Not achieved

FY2014

Results / Achievement

Targets• Conducted e-learning on security trade control
Enhance complianceeducation

management (approximately 2,500 participants), conducted
Continue compliance education
training for people in charge of export controls at Group• Continue rank-based andAcompanies and divisions
theme-specific group training• Conducted group training and distributed e-learningmaterials on competition laws and bribery regulations• In addition to ensuring that related regulations andStrengthen business
continuity
management (BCM)

Strengthen business continuity
management (BCM)
manuals conform to international standards, conducted• Strengthen relations withtraining on new regulations and manuals and obtained ISO
business partners in regard to22301 certification(note 1)A
BCM activities• Held internal auditor training for 14 participants in chargeof activity desks at all business sites and related business• Continue BCM drills, anddivisions, and conferred internal certifications
strengthen review activities• Held exchanges of ideas at three principal sites in China
Instill thoroughcomplianceawareness

Strengthen emerging market risk checks
regarding the creation of anti-bribery systems
and support for overseas subsidiaries• Conducted compliance awareness surveys at GroupA• Hold risk management seminars
companies in Japan (21 companies), and confirmed increase
in Southeast Asia and China
in compliance awareness compared with previous survey(2010)• In line with the formulation of the Furukawa Electric Group
Promote global
compliance

Anti-Bribery Statement and dissemination of anti-bribery
guide, supported creation of anti-bribery systems at eachGroup company• Conducted training for employees prior to overseas
assignments according to the Checklist for Managers andsupported risk management at overseas Group companies

Enhance global compliance foundations• Ensure thorough complianceAwith competition laws andcreate anti- bribery systems(note 1) The international standard for business continuity management systems (BCMSs)

Quality
FY2013
Targets

FY2014

Results / Achievement

Reduce quality complaints•

Reduce by 10% incomparison withfiscal 2012

• Reduced number of quality complaints by 15% frompreceding fiscal year

32

Targets
Dramatically strengthen quality
capabilities• Achieve zero complaints on 3H
products (3H products: Products
Athat are being manufactured for the
first time, being changed or being
produced for the first time in a longwhile)

Furukawa Electric Group Sustainability Report 2013

Procurement
FY2013
Targets

FY2014
Results / Achievement• Conducted partner assessments and feedback
Forge strategic relationships
with business partners

consultations for approximately 300 partnercompanies• Conducted questionnaire survey primarily
concerning state of response to CSR Deployment
Guideline for Business Partners for 343 partnercompanies

Targets
Strengthen strategic relationships withbusiness partners• Continue to conduct partner
assessments and feedback
consultations
A• Notify business partners of CSR
Deployment Guideline for
Business Partners with updated
version describing response toconflict minerals

Personnel Development and Working Environment
FY2013
Targets

FY2014
Results / Achievement

Targets• Continued Global Development Program (GDP)Train human resources who
can be active on a global stage

Reinforce training of global humantraining targeting section managers
resources• Reconfigured system for training global human A• Implement GDP
resources, and completed design of training in line
• Conduct newly designed training
with this system• Determined current level of manufacturing staff
Bolster manufacturing
capabilities

Support diverse working styles
and work-life balanceand conducted training• Conducted training three times to raise
instructor levels• Completed rollout of basic program at fivebusiness sites• Introduced system of flex-time without core
hours on a trial basis

33

Bolster manufacturing capabilities• Make genba-ryoku
reinforcement plans visible• Roll out genba-ryoku
Areinforcement training to
manufacturing staff• Increase training participation
rate at Group companies
Support diverse working styles andwork-life balance
B• Formally introduce system offlex-time without core hours

Furukawa Electric Group Sustainability Report 2013

Occupational Health and Safety
FY2013
Targets
Achieve zero serious
accidents, and reduce
number of accidents
requiring leave to one or
fewer

FY2014

Results / Achievement• Achieved zero serious accidents and four accidents
requiring leave

Targets

C Reduce number of accidents requireingleave• Reduce accidents requireing
leave to one or fewer

Promote acquisition of• Copper Tube Division received JISHA OSHMS(note 2) A
occupational health andsafety management system(note 2) The Japan Industrial Safety & Health Association (JISHA) certifies business sites according to OSHMS standards.The Japan
Industrial Safety & Health Association (JISHA) certifies business sites according to OSHMS standards.

Social Contribution
FY2013
Targets

FY2014

Results / Achievement

Targets• Reviewed volunteer leave system that was limited toInvigorate social
contribution activities

Invigorate social contribution activities
supporting reconstruction following the Great East
Japan Earthquake, improving system to make• Introduce activity case studies
A
leave-taking easierand continue to provide
information• Introduced volunteer activities in internal newsletterand Furukawa Electric website

Environment
To the Targets and Performance page of the Environmental Report
http://www.furukawa.co.jp/english/csr/enviroment/aim.htm

34

Furukawa Electric Group Sustainability Report 2013

Initiatives for the Environment
Environmental Management
Furukawa Electric Basic Environmental Policy
Basic Philosophy
We, the employees of the Furukawa Electric Group, recognize that conservation of the global
environment is a serious issue confronting the international community, and we pledge to contributeto a sustainable future for the world through technological innovation that utilizes our strength inadvanced materials.
Action Guidelines
1.

2.
3.

4.
5.

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

Environmental Management
Environmental Management Organization
In April 2013, we underwent organizational restructuring, transitioning to a strategic business unit system. We alsorenamed our highest-level advisory body related to environmental management the Furukawa Electric Group
Environment Committee and promoted environmental management under a new structure. We established the newCouncil of Environmental Managers to facilitate smooth decision making on environmental management and consolidated
the special committees that have performed these functions in past.
Environmental management promotion organization

35

Furukawa Electric Group Sustainability Report 2013

Receiving Third-Party Verification
Furukawa Electric and the domestic affiliated companies that participate in environmental management are acquiring
ISO 14001 certification for consolidated environmental management. Our overseas affiliates are collecting data andconstructing management systems to this end.

Environmental Education
Environmental Education System and Environmental Education Programs
The Furukawa Electric Group conducts various types of environmental education to cultivate among employees theunderstanding that is necessary to conduct environmental activities and raise their environmental consciousness. In
fiscal 2013, 44 employees attended our ISO 14001 Internal Environmental Auditor Course, 22 attended our FGMS（note 1）
Auditor Course, and 16 participated in our EMS Upgrade Seminar.
(note 1)

Furukawa branding Green products Management System

Environmental education programs

Environmental Awards System
To ramp up our environmental activities, in fiscal 2011 we introduced an environmental awards system. There are three
award categories for Furukawa Electric on a standalone basis: expanding sales of environmentally Friendly products,
global warming prevention activities, and group activities. Affiliated companies are awarded for overall environmental
activities.

36

Furukawa Electric Group Sustainability Report 2013

Environmental Accounting
The Furukawa Electric Group has introduced environmental accounting to gain a quantitative understanding of costs andconduct its environmental activities efficiently and effectively.
All data is compiled in accordance with the Environmental Accounting Guidelines (2005 edition) published by the Ministryof the Environment.
Data on affiliated companies is compiled for 18 companies in Japan.
Environmental conservation costs for the Group during fiscal 2013 came to ¥6.5 billion in expenses, and investment
amounted to ¥1.0 billion. Compared with the preceding fiscal year, Furukawa Electric increased its expenses ¥0.1 billion
and reduced investment by ¥0.1 billion. Owing in part to an increase in electricity rates, energy expenses for the entire
Group increased approximately ¥0.75 billion.

Environmental conservation costs (Unit: million yen)
Furukawa
Electric
Category

Affiliatedcompanies

Key activity and the outcome
Total costs

Year onyear

Total costs(1)Business area costs

Pollution prevention (air pollution, etc.), energy
conservation, waste disposal, etc.

1,263

224

1,854

(2)Upstream/downstream costs

Recovery of packaging, drums, etc.

453

-64

576

(3)Administration costs

Environmental management system auditing,environmental impact monitoring, etc.

344

-26

176

(4)Research and development
costs

Development of environmentally friendly products,
research into alternatives for harmful substances

972

-18

787

(5)Social activity cost

Tree planting, local community cleaning activities,
donations, etc.

2

-3

5

(6)Environmental remediation
costs

Environmental impact assessments, cleanup ofpolluted soil, etc.

1

-0

24

3,035

112

3,422

Total

(note) Year-on-year comparative data regarding the environmental conservation costs for affiliated companies has not been provided due tochanges in the scope of affiliated companies (18 companies).

Environmental conservation benefits
Reduction
Emissions causing environmental impact

Unit
Furukawa Electric

Affiliated companies

Volume of industrial waste disposal processed(note 2)

tons

348

664

Energy consumption (crude oil equivalent)

1,000 kl

14

15

Water consumption

1,000 tons

-306

186

tons

16

0

CO2 emissions

1,000 tons-CO2

-6

-69

SOx emissions

tons

15

9

Emissions of volatile organic chemical compounds

37Furukawa Electric Group Sustainability Report 2013

NOx emissions

tons

85

-117

Soot emissions

tons

1

-41

(note 2) Excluding recycled waste.
(note) Minus figures indicate an increase.

Economic benefits associated with environmental conservation activities (Unit: million yen)
Total benefit
Details of benefits
Furukawa Electric

Affiliated companies

Revenue from recycling

291

460

Reduction in waste disposal costs

-2

45

-314

-436

6

26

-19

95

Reduction in energy costs
Reduction in water purchase costs
Total(note) Minus figures indicate an increase.

Investment and research costs (Unit: million yen)
Total costs
Investment and research costs
Furukawa Electric

Affiliated companies

Environment-related investment

358

669

Total investment

4,408

25,750Total research costs

8,812

6,611

Environmental conservation costs (Furukawa Electric)

38

Furukawa Electric Group Sustainability Report 2013

Economic benefits (Furukawa Electric)

Environment-Related Investment and Expenditures

Related Data
Affiliated companies in Japan that participate in environmental management (fiscal 2013, 27
companies)
Affiliated companies in Japan that participate in environmental management
http://www.furukawa.co.jp/english/csr/enviroment/management.htm#management05

39

Furukawa Electric Group Sustainability Report 2013

Material Flow
Environmental Impact of the Furukawa Electric Group in Fiscal 2013
Data has been compiled for Furukawa Electric, its 27 affiliated companies in Japan（note1） and 48 affiliated companies
overseas.

(note 1) The 27 affiliated companies in Japan are the same as those companies participating in consolidated environmental management.
(note 2) PRTR-listed substances(note 3) Cardboard, wood, plastic, and paper used in product shipping(note 4) OA paper, copy paper, etc. used at plants and offices

40

Furukawa Electric Group Sustainability Report 2013

Targets and Performance
Activity Targets and Performance in Fiscal 2013
The Furukawa Electric Group defines medium-term environmental targets every three years. Each year, we establish
targets for environmental conservation activities based on these plans. We reflect these targets at affiliated companies
in Japan and overseas, ensure that targets are consistent throughout the global Group and work together to achievethem.
Regarding the emission of gases that cause global warming, one of our global warming prevention activities, affiliatedcompanies fell short of their targets, partly because emissions coefficients worsened as a result of the nuclear accident
that accompanied the Great East Japan Earthquake. However, Furukawa Electric on a non-consolidated basis met its
energy consumption targets, as did affiliated companies.

Fiscal 2014 Activity Targets
For fiscal 2014, we have set new activity targets on the effective use of water and, in the biodiversity conservation
category, “participation in regional biodiversity conservation activities.” We have also made targets consistentthroughout the Group for chemical substance management activities, green procurement activities and eco-design
activities.
We will make every effort throughout the Group to achieve these targets.

Activities

Activities toprevent global
warming

Environmental
conservation activity
targets for fiscal 2013

Furukawa
Electric

Achievement

Affiliatedcompanies

Greenhouse gas Reduce by 15% compared
16.7% reduction
emissions
to fiscal 2001

Achieved

11.0% reduction

Energyconsumption

Reduce by 5% comparedto fiscal 2008

21.9% reduction

Achieved

13.1% reduction

Specific energy Reduce by 1% compared
consumption for to the previous fiscal
year
production

Achieved at
10/21 Divisions

Not achieved

Achieved at
6/15 Works

Specific energy Reduce by 6% compared
consumption for to fiscal 2007 (Furukawa 16.7% reduction
transportation
Electric only)

Waste reduction
activities

Achieved-

98.0%

Not achieved

92.0%

Achievement

Achieved-

Group zero
emissionsachievement
ratio

Affiliates zero emissions
achievement ratio: 90%

-

-

90.9%

Achieved

-

-

-

-

-

Achieved---

0.3% reduction

Not achieved

VOC emissions
volumeAffiliated companies:
Reduce by 1% comparedto the previous fiscal-

41

Reduce by 6%
compared to fiscal
2008

Reduce by 1%
Not achieved compared to theprevious fiscal year

99% or more (97% ormore for affiliates)

Furukawa Electric:
Reduce by 15% compared 33.1% reduction
to fiscal 2008

Furukawa ElectricGroup (Japan)

Reduce by 1%
Not achieved compared to theprevious fiscal year

Recycling rate

Effective use of water

Chemical
substance
management
activities

Environmental
conservation activity
targets for fiscal 2014

Performance in fiscal 2013

Reduce by 7%
compared to fiscal
2007 (Furukawa
Electric only)

Not achieved 94% or more-

Consider reducing
volume of water
withdrawn

Reduce by 1%
compared to theprevious fiscal year

Furukawa Electric Group Sustainability Report 2013
year (note 1)

Green activities

Procurement rate for 52
general-purpose
products: 100%
Expand to Group
companies

Eco-design activities

Biodiversity conservation

100%

-

Expand to Group
companies--

15 companies

Achieved

Sales ratio forenvironmentally friendly
products: 45% or greater(Furukawa Electric only)

40.2%

Not achieved--

30% or more

Conduct of LCA for allimportant products:100%

100%

Achieved--

Roll out to Group
companies

Formulation of
biodiversity guidelines
and creation of
structures

Creation of guidelines-(note 1)

Achieved

Formulation ofguidelines and
Not achieved
establishments ofsystems-

Participation inregional biodiversity
conservation activities

Targets all surveyed VOCs

Environmentally Friendly Products
Environmentally Friendly Products and the e-Friendly Accreditation System

The Furukawa Electric Group certifies and registers as environmentally friendly products those products with improved
performance compared to existing products in the categories of materials and parts purchasing and manufacture, use,
distribution and disposal.
We have created the “e-Friendly” environmental mark to identify such environmentally friendly products. This mark isplaced on those products,

Application and Registration of Environmentally Friendly Products
The criteria for an environmentally friendly product are met when it offers an overall improvement from an environmental
standpoint when compared with existing products and based on predetermined standards at each stage, from thepurchasing of raw materials and components, manufacturing and use to distribution and disposal.
Following application and screening by the business division, products that pass the screening conducted by theCommittee for Development of Environmentally Friendly Products, a cross-functional organization of the Group, areregistered as environmentally friendly products.

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Furukawa Electric Group Sustainability Report 2013

Categories of Environmentally Friendly Products
The Group's environmentally friendly products belong to one of four categories described below.
Environmentally friendly product categories
Category

Content

Prevention of global warming

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

Zero emission

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

Elimination of materials that havean impact on the environment

Products that do not lead to an increase in the use of ozone-depletive substances during the
manufacturing process, do not contain harmful 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 for resources in packaging.

Expanding Environmentally Friendly Products
We are working to increase our overall percentage of environmentally friendly products. We set targets based on
percentage of sales, and confirm our progress and success on this basis.
Environmentally friendly products as a percentage of sales

43

Furukawa Electric Group Sustainability Report 2013

Environmental Performance Indicator “Visualization”
As part of its efforts to “visualize” environmental performance indicators, the Furukawa Electric Group is promoting theuse of life-cycle assessment (LCA) to “visualize” CO2 emissions.
By the end of fiscal 2013, we had completed LCA evaluations on a total of 64 product groups, covering more than 80% of
all the principal products we sell. We also deploy the results of these calculations toward the development of theGreenhouse Gas (GHG) Protocol(note 1), as well as technical materials and sales promotion pamphlets, aiming to make useof this information for R&D on future environmentally friendly products.
（note1）GHG Protocol: An international guidelines for the method of calculating corporate greenhouse gas emissions.

Implementation of LCA evaluations on product lines
Business Division

Fiscal 2011

Fiscal 2012

Fiscal 2013

Cumulative total

Energy and Industrial Products

4

5

6

15

Telecommunication

9

11

11

31

Electronics and Automotive Systems

4

3

4

11

Metals

1

3

3

7

Total

18

22

24

64

Initiatives to Reduce CO2 Emissions from Products during Use
Based on our environmental performance indicator initiatives, we calculate the approximate contribution toward reducing
CO2 emissions that can be made by the Group's products during use.

CO2 reduction of enameled extruded rectangular wire
Rectangular wire for HV motors

Approximately 110,000 tons of CO2 per year
(Reduction throughout Japan)

44

Furukawa Electric Group Sustainability Report 2013

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

1,192 tons of CO2 per year
(Reduction throughout the world)

45

Furukawa Electric Group Sustainability Report 2013

Preventing Global Warming
Reducing Greenhouse Gas Emissions
Initiatives at Works
The majority of the Group's greenhouse gas emissions consist of CO2 generated from electricity, fuel and other energy
sources. As emissions from manufacturing processes account for a large proportion, we work on reducing emissions byincreasing the efficiency of production processes, switching fuels, replacing equipment with more efficient alternatives,
insulating hot areas and other measures.
Total Group GHG emissions came to 895,000 tons of CO2 in fiscal 2013, a reduction of 12.7% against fiscal 2001 levels.
CO2 emissionｓ

CO2 emissions (fuel/electricity)(note) The emissions coefficients of the respective power companies
are used to convert power use volumes.
(note) CO2 emissions attributable to hydroelectric power are deemed
to be zero.

Energy consumption(note) When compiling data for fiscal 2013, an error was discovered in
the calculation of past data. Accordingly, figures for fiscal 2012 andprevious years have been retroactively adjusted.

46

Furukawa Electric Group Sustainability Report 2013

Initiatives in Logistics
In fiscal 2013, total transportation volume for the Furukawa Electric Group amounted to 461 million ton-kilometers, up
0.2% from the figure in fiscal 2012. Of this total, Furukawa Electric alone accounted for 134 million ton-kilometers, up
0.8% from fiscal 2012. CO2 emissions fell 2.7% year on year, to 14,500 tons, due largely to improved loading rates. In
addition, specific consumption was down 16.7%, compared with fiscal 2007. The modal shift rate (note 1) was slightly up year
on year. We will continue with initiatives to promote modal shift, increase loading rates and encourage joint shipping.

Modal shift and specific consumption (Furukawa Electric)

CO2 emissions related to transportation (Furukawa
Electric)(note 1) Modal shift rate: Percentage of total transportation that uses rail- or ship-based transportation.

Topics

Receiving the Kanagawa Global Environment Award 2012 Energy Saving Prize
The Company's Yokohama Works received the Kanagawa Global Environment
Award 2012 Energy Saving Prize. Sponsored by the Kanagawa Global
Environment Conservation Promotion Forum and Kanagawa Prefecture, thisaward is bestowed on individuals and organizations whose environmental
conservation efforts have demonstrated remarkable results. The Yokohama
Works was cited for electricity conservation measures enacted after theGreat East Japan Earthquake, including the real-time visualization of electric
power usage and making effective use of thermal storage tanks to reducesummertime peak electricity consumption. As a result, the facility reduced
its maximum operating power (contract power) from 1,096kW to 850kW.

Reducing Waste
Waste Reduction Initiatives
The Furukawa Electric Group began taking action to reduce non-recyclable waste in 1993. Since fiscal 2002, we haveconducted zero-emissions activities, defined as “reducing the volume of direct landfill disposal to less than 1% of thetotal volume of industrial waste emitted.”
As a result of our efforts to meticulously sort waste and recycle waste acid and sludge into useful resources, the total
amount of non-recyclable waste for the Group in Japan amounted to 3,304 tons in fiscal 2013, down 77.7% comparedwith fiscal 2005. Furthermore, the volume of waste directly sent to landfills was down 83.0% against fiscal 2005 levels, to
786 tons for the Group in Japan; disposal for Furukawa Electric alone remained zero.
Also, in fiscal 2013 the target waste recycling rate (the ratio of recycled waste compared to total waste volume) was 97%
or more for affiliated companies in Japan and 99% or more for Furukawa Electric on a standalone basis. Although we
exceeded the previous year's figures, we fell short of our targets, at 92.0% and 98.0%, respectively.
47

Furukawa Electric Group Sustainability Report 2013

Processing volume of non-recyclable waste

Direct landfill disposal

Waste disposal costs (Furukawa Electric)

Chemical Substance Management
Green Activities
Response to Customer Requests
When the Group receives a request from a customer for information concerning chemical substances in our products, it
conducts a thorough environmental examination. We also monitor trends in laws and regulations covering the chemical
substances contained in products and compile and update data as it becomes available, allowing us to respond promptly
to customer requests. Furthermore, by collecting information from industrial organizations and conducting seminars, aswell as participating in research groups, we can monitor environmental regulations and standards and social issues/itemsof concern. This enables us to incorporate customer needs in our environmental conservation targets.

Response to Overseas Regulations (REACH Regulations, RoHS Directive)
Substances of very high concern (SVHCs)(note 1) that are included in the Candidate List under the REACH regulations are
updated twice each year. Each time additional SVHCs are published, the Furukawa Electric Group researches the statusof its use of such substances. As of the end of fiscal 2013, we had conducted checks on 136 substances.
(note 1）Substance of Very High Concern : Use or marketing of SVHCs requires approval, and manufacturers are liable to submit notification
if an SVHC exceeds 0.1% weight content.

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Furukawa Electric Group Sustainability Report 2013

Regular Auditing under the Furukawa Branding Green Products Management System (FGMS)
Our FGMS Regular Auditing in fiscal 2013 was conducted through self-checking and auditing at three factories of
Furukawa Electric, six factories of affiliate companies, and 29 factories of affiliates' suppliers. To control chemical
substances contained in products, we will continue to monitor environmental risks, and expand and implement auditing
according to degree of importance.

Expansion of Green Procurement (General-Purpose Products) to Group Companies
We encourage the purchasing of OA equipment, office supplies and other items that conform to the Green Purchasing
Law. Extending these activities to include affiliated companies, in fiscal 2013 we also designed items for conformance at
15 affiliated companies. We continue to purchase conforming items. Also, purchases of items for use in our products are
made based on our Green Procurement Guidelines, with the selection of appropriate items based on the FGMS systemat the supplier and confirmation of data on chemical substances contained in the products.

Chemical Substance Management Activities
The Group undertakes voluntary initiatives to reduce
emissions of harmful chemical substances. In particular,
we make every effort to actively reduce emissions ofvolatile organic compounds, one cause of photochemicalsmog. In fiscal 2013, Furukawa Electric reached its targets
on a non-consolidated basis and worked to reduce
emissions further. Furthermore, all domestic Group
companies have ceased the use of organic chlorinecompounds.

Emissions of volatile organic compounds(Furukawa Electric)(note) Volatile organic compounds are the 118 substances specified
by The Japanese Electric Wire & Cable Makers' Association (January
2012 edition).
(note) From fiscal 2008, n-decane has been added.

Appropriate Management of Chemical Substances
At the Furukawa Electric Group, we confirm the properties and applicable laws and regulations regarding all chemical
substances we use during the manufacturing process on their Safety Data Sheets (SDSs) and administrate them. We
also monitor the usage volume of chemical substances listed in the PRTR Law(note 2).
(note2) Law Concerning Reporting, Etc. of Releases to the Environment of Specific Chemical Substances and Promoting Improvements in
Their Management
PRTR Substances
http://www.furukawa.co.jp/english/csr/enviroment/chemical_prtr.htm

Environmental Risk Management
Preventing Soil and Groundwater Pollution
The Furukawa Electric Group conducts regular inspections of facilities and equipment that handle specific toxic
substances to prevent the pollution of soil and groundwater. We reduce the risk of pollution through measures to prevent
leaks of specific toxic substances and underground seepage, as well as through ongoing efforts to switch to substitutesubstances.
In fiscal 2011, we began proper disposal of the slag stored in the Oyama area (a plant site of the former Furukawa
Magnesium Co., Ltd.) and conducted soil remediation where underground soil was contaminated. Work on part of thepremises is now complete. At affiliated companies, we completed additional measures to address groundwater pollution
at the Ibaraki Factory of the former Aoyama Kinsho Co., Ltd.
49

Furukawa Electric Group Sustainability Report 2013

PCB Management
The Furukawa Electric Group monitors the amount of PCB-containing equipment at each of our Works and affiliatecompany sites, and conducts proper storage and management. Based on this information, we register with the Japan
Environmental Safety Corporation and entrust waste processing in accordance with plans. We began processing
managed substances in fiscal 2012. Also, we conducted analyses on equipment that could contain trace amounts of PCB.
We plan to address this situation systematically going forward.
PCB amounts contained in equipment
As of March 31, 2013

Works

In storage

In useTotal

Chiba Works

104

0

104

Nikko Works

353

60

413

Hiratsuka Works

83

143

226

Mie Works

107

11

118

Yokohama Works

19

1

20

Copper Tube Division

48

12

60

Copper Foil Division

16

49

65

Total

730

276

1,006

Response to Asbestos Concerns
Although the Furukawa Electric Group does not currently produce or import any products containing asbestos, some of
the industrial-use products we made and sold in the past contained asbestos. These include electrical wiring for ships,
and fire-resistant products for constructing telecommunications and electrical power facilities, etc.
In addition, we are currently examining the buildings and plants of Furukawa Electric and our affiliates to determine if
asbestos-containing building materials have been used. Inspections for asbestos dispersal in buildings in which spray-on
materials had been used have confirmed the presence of asbestos, and removal work or containment measures havebeen taken to prevent future dispersal. We have also proceeded to replace equipment and fixtures in which asbestos
insulation has been used so as to prevent dispersal, with planned replacements of all items which are currently notdispersing asbestos with items not containing it. For other items, we conduct regular inspections and introduce
alternates during facility renewals.

Compliance with Environmental Laws and Other Regulations
The Furukawa Electric Group regularly confirms environmental laws and other regulations to determine items requiring
compliance. We ensure compliance in a number of ways, such as by conducting on-site patrols to check the state ofcompliance. We follow official journals and other sources of information to stay updated on revisions to environmental
legislation and ensure that our response is thorough.
We maintain voluntary control limits and manage operations appropriately to ensure compliance with the Air Pollution
Control Law and the Water Pollution Control Law. As a revised Water Pollution Control Law was enacted in fiscal 2013,
we performed checks at target facilities based on structural criteria.
We also conduct annual checks for conceivable, clear environmental impact to prevent environmental accidents or
prevent widespread impact in the event of an accident.
Our checks into the status of legal compliance.
According to our survey on the status of our regulatory compliance, we were not in material violation of any regulations.

50

Furukawa Electric Group Sustainability Report 2013

Biodiversity Conservation
Three Important Categories of Biodiversity Conservation Effort
In April 2011, we began providing information on our website about the biodiversity efforts we are conducting as part ofour Basic Environmental Policy. We established the following three important biodiversity categories to specify Group
biodiversity efforts, in recognition of the fact that our business, products and services are the result of biodiversity, andof our impact, whether positive or negative, on eco-systems.

Biodiversity Conservation: Three Important Categories
1.

Assess the impact of business practices on ecosystems and work to minimize the negative impact andmaximize the positive.

2.

Promote sustainable resource use in consideration of biodiversity conservation through anti-climatechange measures, resource conservation, and resource re-use, as well increasing efforts to reduce theuse of environmental impact-causing substances.

3.

By raising the consciousness of each individual, we actively promote biodiversity conservation intandem with society.

Beginning in fiscal 2014, we plan to conduct a fact-finding survey of community activities related to biodiversity andsupport key regional initiatives such as those targeting forest preservation and the elimination of invasive species.

51

Furukawa Electric Group Sustainability Report 2013

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
excellent-quality products and services from a customer perspective.
Going forward, we will continue endeavoring to further enhance “quality power” throughout the 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 toa PDCA management cycle based on actual facts, maintain and improve our products, customer
services and the quality of our operations and put our management policies into practice.

Organizations for Improving Quality
Furukawa Electric has established the 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, services and operations.
Promotion Framework

Activities in Fiscal 2013: Reducing Customer Complaints
In fiscal 2013, we continued activities that place the utmost emphasis on quality while endeavoring to manufacture
excellent products from the customer's perspective. As a result, we achieved our objective of reducing the number ofcustomer complaints throughout the Company by 10% or more compared with the previous year. At this point, we have
reduced the number by 93% compared with their level of 10 years ago.

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Furukawa Electric Group Sustainability Report 2013

Customer complaints (Furukawa Electric)(note) The figures show the percentage of customer complaints, taking fiscal 2002 levels as 100%.

Fiscal 2014 Initiative: Strengthen Fundamental “Quality Power”
In fiscal 2014, we have introduced the Furukawa Electric Group Quality Policy, which calls for the strengthening offundamental “Quality Power” to enable the “materialization of attractive products for customers”. We have introduced
three measures for realizing this policy.

Three Measures•

Strive to “put quality into our products during the designing process” and “thoroughly complete our
products’ quality activities during the manufacturing process”•

Distribution of various quality information such as customer information, corrective action andimplementation of solutions equally among the Furukawa Electric Group•

Decrease quality risk of “3H” products (3H products: Products that are being manufactured for the firsttime, being changed or being produced for the first time in a long while)

Ongoing Improvement Activities at Individual Worksites
The Furukawa Electric Group conducts bottom-up quality improvement
activities, forming its worksite employees into circles and promoting“QC Circle Activities” that seek to resolve a variety of problems. The
results of these activities are shared at Groupwide competitions held
once per year.
In fiscal 2013, this competition convened at the Company’s Nikko
Works. Eight circles from Japan and three from overseas reported on
their activities. The circle from Furukawa FITEL (Thailand) Co., Ltd.
(FFT), our affiliated company in Thailand, received the gold award for its
activities, indicating that QC Circle Activities are also becoming
entrenched at overseas worksites and helping to raise the quality level
throughout the Group.

53

FFT (Thailand) QC Circle receiving the gold award

Furukawa Electric Group Sustainability Report 2013

TOPICSFURUKAWA Innovation Expo 2012 Held in Jakarta, Indonesia
The Furukawa Electric Group aims to expand its trade area in growing global markets, working to increase its overseas
sales ratio to 50%. To accelerate our developments in overseas markets, particularly emerging markets, since 2009 wehave held Furukawa Group technology exhibitions in Bangkok, Thailand, and in Shenzhen and Shanghai, China, topromote our technologies and products.

In fiscal 2013, we held the FURUKAWA Innovation Expo 2012 in Jakarta in July 2012. This comprehensive technology
exhibition of the Furukawa Group was aimed at expanding our trade area and heightening our presence in emerging
markets, notably in Indonesia and the ASEAN region. Taking part were PT SUCACO Tbk. (Supreme Cable Manufacturing& Commerce), an important partner we have been working with for some 40 years, and 27 Group companies, including six
local entities. We exhibited 56 products and technologies in the three categories of environment/energy,
automobiles/car electronics and communications.
Going forward, we will continue to reinforce our overseas marketing function across the Group, based on our policy ofstrengthening global Group management. By focusing on the proposal of solutions, we will strive to showcase thecomprehensive power of our group and enhance customer satisfaction levels.

FURUKAWA Innovation Expo 2012②FURUKAWA Innovation Expo 2012①

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Furukawa Electric Group Sustainability Report 2013

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

Relations with Institutional Investors and Securities Analysts
In addition to holding management briefings (covering interim and year-end
results and mid-term plans when announced) for institutional investors andsecurities analysts, we actively encourage communication all year round.

Briefing for institutional investors

Relations with Individual Investors
In October 2012, we held our fifth plant tour for individual investors. Visitors were selected by lottery from among those
who responded to an open invitation, with 84 people invited to attend out of the 1,295 who responded. During the tour,
we offered participants a number of opportunities to get a feel for Furukawa Electric. We introduced our production
processes for copper products and visited a hydroelectric power station. The tour also featured a simple explanation on
the phenomenon of superconductivity.
[Related Information] IR Calendars
http://www.furukawa.co.jp/english/ir/event/index.htm

Superconductivity experiment (Explanation including experience ofthe phenomenon of superconductivity)

Copper rolling plant (A close-up look at the hot-rolling process)

Returning Profits to Shareholders
The basic policy of the Company is to pay stable dividends and, at the same time, distribute profits to shareholders
commensurate to its future business operations, with an eye on future income trends from a long-term perspective.
During the fiscal year ended March 31, 2013, the Company elected to forgo the interim dividend in order to recover its
operating performance and improve its financial constitution. The Company awarded a year-end dividend of ¥3.0 per
share.
[Related Information] Stock and Dividends Information
http://www.furukawa.co.jp/english/ir/stock/index.htm

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Furukawa Electric Group Sustainability Report 2013

Relations with Business Partners
Optimum Purchasing on a Steady, Ongoing Basis
Furukawa Electric's Group purchasing policy is to establish strategic relationships with business partners to ensure
optimum purchasing on a steady, ongoing basis. Based on this policy, Furukawa Electric strives to create cooperative
relationships based on mutual trust with its business partners, thereby contributing to sustainable future development.
[Related Information] Furukawa Electric Group Procurement Policy
http://www.furukawa.co.jp/sizai/english/std.htm

Conducting Training on Subcontracting Transactions
In order to forge sound relationships with business partners through fair transactions that comply with rules andregulations, the Furukawa Electric Group provides training for employees on subcontracting transactions.
In fiscal 2013, in addition to continuing with the courses we have conducted to date, we introduced the second segmentof an e-learning series. This program is aimed at ensuring thorough awareness of the content of the Act against Delay inPayment of Subcontract Proceeds, Etc., to Subcontractors (Subcontract Law).

Partner Meetings and Partner Evaluation Scheme
The Company seeks to deepen awareness among our business partners through regularly held Partner Meetings, where
we explain the state of the Company, our purchasing policy and individual company management strategies. For fiscal
2013, this meeting was held in June and was attended by 92 key business partners.
We also evaluate key business partners on the basis of quality, technology, price,delivery system, degree of social contribution and financial condition, and then holdmeetings to provide feedback on our findings. In addition, we discuss the results of ourevaluations with them to more closely align our awareness of procurement activities.
Furthermore, based on the results of these evaluations and lessons learned throughour experience of the Great East Japan Earthquake, we requested ongoingcooperation from certain business partners on business continuity and stable supply
initiatives.
In fiscal 2013, we evaluated some 300 business partners and provided feedback to them.

Partner Meeting

Promoting CSR through Procurement Activities
Based on our CSR Deployment Guideline for Business Partners, we work with our business partners on an ongoing basis
on initiatives to ensure that our procurement activities involve thoroughly compliant and fair transactions and take into
account human rights and safety, and consideration for the environment.
[Related Information] CSR Deployment Guideline for Business Partners
http://www.furukawa.co.jp/sizai/english/guide.htm

Conflict Minerals(note1）
We have addressed the issue of conflict minerals by formulating a Group policy entitled the Responsible Sourcing ofMinerals and updated our CSR Deployment Guideline for Business Partners. We distribute these to Group companies
and business partners to ensure their awareness.
Going forward, in addition to requesting the cooperation of Group companies and our business partners on these efforts,
we will work with the Japan Electronics and Information Industries Association (JEITA), an industry organization, on
initiatives targeting the responsible sourcing of minerals.
(note 1) Defined as minerals (tantalum, tin, gold, tungsten or their derivatives) that originate in or near the Democratic Republic of the Congo
that may help to finance armed conflict.

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Furukawa Electric Group Sustainability Report 2013

Relations with Our Employees

Personnel Management Policy/Human Resources Development

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

THE FURUKAWA ELECTRIC GROUP CREDO
1. Maintain high ethical standards, and value honesty and integrity above all.
2. Continually improve, innovate, and lead, in every area of endeavor.
3. Take a hands-on approach that addresses the reality of every situation - in the office, at the factory,
and on site.
4. Be proactive - take the initiative and work with others, persevering until a solution is found.
5. Maintain open channels of communication between departments and divisions, so that we can shareideals and help each other grow.
In other words, we believe that a workplace environment that encourages among all employees compliance andconsideration for human rights serves as the foundation upon which employees can maximize their capabilities. On thisbasis, we are devising and introducing a personnel system that will harness employees' diverse abilities and personalities.
This should encourage employee creativity, setting the cornerstone for “continuous technological innovation.”
As part of this initiative, we are cultivating a powerful workforce that will enable us to emerge victorious amid stringent
global competition. We are raising this as a constructive mission for building collaborative ties with affiliates in Japan andoverseas, and are augmenting current measures and putting new ones in place accordingly.
The new medium-term management plan, which commences in fiscal 2014, focuses on measures to strengthen top
management and improve the corporate culture and bottom-up human resource measures, with the aim of shoring up
our base in preparation for groupwide growth in a fast-changing operating environment. Specifically, we will clarify with
employees their skill development directions, introducing individual measures from two main perspectives: the humanresource system categories of recruiting and assignment, evaluation and compensation, as well as the category of skill
development, involving redoubled training of global human resources.
Principal Measures Pertaining to the Group's Global Management
1.
Measures to Strengthen Top Management

Measures to Improve the Corporate Cultureand Bottom-up Human Resource Measures

3.

Review performance evaluation structures and compensation systems (directors andmanagers)
Introduce succession plans to create a human resources database and assign personnel
strategically
Implement a strategic execution support program for top management, etc.

1.
2.
3.

Formulate and execute a basic policy on skills development and new assignment standards
Conduct training to expand the pool of employee candidates to be stationed overseas
Establish sites to handle management of overseas bases (Asia, China, etc.), etc.

2.

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Furukawa Electric Group Sustainability Report 2013

Human Resources Development
Enhancing Educational Programs
We are undertaking initiatives that further management's aim of training human resources suited to steadily execute
Furukawa Electric Group reforms. We have prepared a number of learning opportunities, including conducting training
courses and e-learning and supporting efforts to earn qualifications, in our bid to cultivate human resources who canthink and act for themselves. In this manner, we are working to encourage personal growth and maximize ourorganizational capabilities, while at the same time promoting a mindset that emphasizes Group management.
Training system [Furukawa Electric recruiting page] (PDF 1,604KB)
http://www.furukawa.co.jp/english/csr/social/training.pdf

In rank-based training, we hold workplace discussions and strive to link observations to actions, rather than conducting
one-off training. Our OJT Leader System seeks to go beyond differences in age and rank in promoting a sharedawareness of issues, targeting organizational reform through the practice of operating an organization and cultivating a
sense of cooperation. For middle-ranking leaders, we conduct training designed to help them analyze situations logically,
identify issues and plan measures to resolve them, as well as honing the sensitivity that leadership requires. We include
employees of affiliated companies in each of these training programs to foster a sense of group among our humanresources.

Training Leaders Suited for the Global Environment
We launched the Global Business Leader Training Program in fiscal 2007 for the training of future management personnel.
More than 100 graduates of this program are currently at important posts in Furukawa Electric and at our affiliates inJapan and overseas.
In fiscal 2014, we have launched the Global Mindset Program (GMP) to cultivate human resources capable of operating
on a global stage. This program hones global awareness and an understanding of diversity, as well as training participantsin identifying and resolving issues on their own. We are expanding the program, focusing in particular on global training forpeople assigned to overseas positions and in roles that support overseas operations.
Among our training programs for local employees of overseas affiliated companies, in fiscal 2011 we began conducting
the Global Development Program (GDP) in Japan for leaders at overseas companies. The program aims to deepen theirunderstanding of the Furukawa Electric Group and encourage their interaction with Japanese employees, energizing bothgroups and cultivating an international sense.
Global Human Resources Training System

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Furukawa Electric Group Sustainability Report 2013

Among our training programs for local employees of overseas affiliated companies, in fiscal 2011 we began conducting
the Global Development Program (GDP) in Japan for leaders at overseas companies. The program aims to deepen theirunderstanding of the Furukawa Electric Group and encourage their interaction with Japanese employees, energizing bothgroups and cultivating an international sense.

Global Development Program presentation

Group photo

Strengthening the Genba-Ryoku Project
Since fiscal 2009, Furukawa Electric has been pursuing initiatives to bolster the manufacturing capabilities of its
production sites. These activities focus on cultivating genba-ryoku (worksite capabilities) by encouraging people at its
production sites to think for themselves and act on their own initiative for the good of the customer.
We established the Genba-Ryoku Enhancement Training Center at the Yokohama Works in September 2010 for a variety
of Group training programs. Specifically for new recruits, we conduct programs for both technical and businessemployees. These include the Joy of Manufacturing, which provides onsite experience, and Craftsmanship Training,which fosters recognition of the dangers of the production site.
In fiscal 2012, we set rank-specific goals for employees at production sites and commenced a Basic Program aimed atraising skill levels for all these employees. We put up posters and distributed “genba-ryoku” badges to employees
undergoing training, encouraging them to put into practice the things that they had learned.
At each manufacturing works, we also conduct Chief Operator Training, as well as training for mid-level operators andyounger staff. This training helps to transmit core knowledge at production sites, raise worksite awareness andencourage people to pass on technologies and skills by providing an opportunity for headquarters and Group company
employees to interact without regard to affiliation, these efforts support the sharing of expertise. Personnel fromdomestic affiliated companies also participated in this training, which was part of an initiative to enhance “genba-ryoku”
throughout the Group. This initiative is already underway at some overseas affiliated companies, as well.
People Undergoing Genba-Ryoku Reinforcement Training
Fiscal Year

Participants

FY201087 people

FY2011

121 people

FY2012346 people

FY2013511 people(note) Includes participants from Group companies

Experiencing dangers during
monozukuri (manufacturing)training

Basic Program training underway

Badges with the “genba-ryoku”
logo distributed to trainees

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2S drills at China FAZ

Furukawa Electric Group Sustainability Report 2013

Relations with Our Employees

Diversity
Diversity in Hiring
Furukawa Electric is actively recruiting non-Japanese personnel and international
students to support the globalization of our business. We also host students on
internships from overseas universities.
The Furukawa Electric Group has a number of initiatives underway to recruit talented
personnel. In addition to information exchanges to share know-how on hiring within theGroup, we hold the Furukawa Electric Group Forum, at which we conduct briefings inconjunction with Group affiliates, and work proactively to demonstrate to students the
Furukawa Electric Group's appeal.

Explaining the content of ourbusiness to international students

Hiring the Disabled
Furukawa Electric established Furukawa Newleaf Co., Ltd. as a special subsidiary in 2004 to actively employ people withlearning disabilities. This is one of our efforts to increase the percentage of people with disabilities that we employ.
The company handles cleaning operations at the compounds of our works and currently employs a total of 32 people withdisabilities, 11 at the Hiratsuka Works and 21 at the Chiba Works. The company also provides individualized guidance on
everything from matters of daily conduct in the company through the building of good human relationships to assist
people with learning disabilities in becoming independent members of society.
We also invite caregivers with children with no work experience to tour our work and guidance sites, so as to better
understand our efforts involving the employment of people with disabilities.
Although our employment ratio of people with disabilities was 1.94% in fiscal 2012, exceeding the statutory target, we areworking to increase this employment ratio further by expanding the operations conducted by our special subsidiary,complying with revisions to the law in April 2013.
Ratio of employees with disabilities (Furukawa Electric)

Furukawa Newleaf Co., Ltd., employees in action60

Furukawa Electric Group Sustainability Report 2013

Relations with Our Employees

Upgrading and Enhancing Workplace Environments
Volunteer Leave System, Refresh Leave System
To support individual employees' efforts to participate in social contribution activities, we have in place a Volunteer
Leave system for people who have been employed for one year or more. When we introduced this system in 2011, it waslimited to volunteers in support of restoration and reconstruction activities following the Great East Japan Earthquake.
We lifted this restriction in May 2012, expanding its use to uncompensated social contribution activities. Going forward,
we plan to continue supporting employee participation in social contribution activities.
Also, in 2011 we inaugurated a Refresh Leave System whereby employees with at least 25 years of experience can takefrom 14 through 31 consecutive leave days per year. Taking this sort of leave is designed to help workers enliven theirperformance, give them an opportunity to review work we handle as an organization and enhance their work life balance(the balance between work and home life).
My Volunteer Activity Report

I participated in the 2013 Reconstruction Support Soccer
Festival.
Masayuki Hanamitsu
Production Department, Fitel Products Division

I took four days of volunteer leave from March 25 to take part in the 2013
Reconstruction Support Soccer Festival (Shisui, Chiba Prefecture)
This seven-team interleague series included two high school teams from Fukushima
Prefecture that were invited to take part, as well as five other teams from Chiba and other prefectures. Our goal was tobring smiles back to the faces of people from Fukushima through soccer. Although I think they enjoyed the matches, you
could see from their eyes that they are still battling uncertainties. But at the same time, their struggles gave me thestrength to persevere in a forward-looking way.
I believe that expanding the Volunteer Leave System to allow a wide variety of volunteer activities in addition to support
reconstruction will enable us to play at least a small role in expanding the circle of support to the workplace andthroughout the Company.
My Refresh Leave

I came back refreshed in body and spirit!
Yasuhiro Tanaka
Strip Manufacturing Section, Production Department, Copper and High
Performance Material Products Division

I took refresh leave for about three weeks, starting April 20. During my time off, I joined neighborhood families inbarbecues, attended a class observation day at my children's school and enjoyed an outing with my family to Kawachi inthe city of Sakura. This leave was an extremely meaningful time for me.
During the days when the rest of my family was out, I took my car for a drive, washed it and caught up on my hobbies.
Sometimes I just relaxed, watched television and enjoyed having some time to myself. The refresh leave allowed me todo things with my family that I don't often have time for, and I came back refreshed in mind and spirit.
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Human Rights Awareness
The Furukawa Electric Group CSR Code of Conduct stipulates that we work to respect human rights, prohibiting
discriminatory treatment and human rights infringement as well as prohibiting harassment. We have also established aconsultation desk concerning human rights concerns that can be accessed from within or outside the company, andconsultations by employees are promptly responded to jointly by the HR & Administration Department and the CSR
Department in the event that issues are reported. As of the end of fiscal 2013 there had been no cases of involving
human rights concerns within Furukawa Electric.
Furthermore, from the perspective of prevention, we have in place a rank-based training curriculum, including executives
and managers at affiliated companies. The curriculum centers on raising awareness, covering such matters as prohibitionof discrimination against female employees, promoting employment of seniors and people with disabilities, and improved
understanding of Japanese social integration issues.

Improving the Working Environment through Labor-Management Opinion Exchanges
Furukawa Electric maintains a basic position that both labor and management should endeavor to engage in sincere
discussions, and therefore we focus on issue resolution and deepening mutual understanding.
We hold our Central Management Briefings twice annually for public exchanges of opinion between labor andmanagement. We have conducted such meetings for 61 years, since 1952. As of May 2013 we had held these briefings
121 times. Representatives from labor and management exchange frank opinions and share information about a broad
spectrum of items at these briefings, such as the business environment, management, and topical matters.
We also have in place various committees such as the Personnel System Exploratory Committee and the Committee forStudying Shorter Hours that are designed to improve the working environment, which management and labor discuss ona daily basis. These discussions lead to improvements in various systems and strengthen monitoring functions, such ascompliance response and the implementation status of other CSR activities.

Relations with Our Employees

Occupational Health and Safety
Occupational Health and Safety Management Promotion System
In line with the new medium-term plan's policy of strengthening Group management, we have revised our activity
promotion structure. To this end, in fiscal 2014 we have established the Furukawa Electric Group Occupational Healthand Safety Committee, chaired by the president. This committee, comprising members of management, deliberates,
determines and follows up on policies and measures related to occupational health and safety activities throughout theGroup.
Promotion Framework

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Status of Activities and Future Initiatives
Looking at our safety record during fiscal 2013, we failed to reach our target of one or fewer accidents requiring leave, as
four occurred. As a result, we have set about reforming our corporate culture to keep from taking a backward step on
our safety record and strengthening initiatives toward our goal of zero accidents and zero hospitalizations.
The core tenets of our basic policy for fiscal 2014 naturally include legal compliance, focusing as well on content linked
with reforming the corporate culture, such as ensuring human and essential safety.
Specifically, we have set forth the following six items.
1. Work to eradicate accidents by following the spirit of occupational health and safety laws
2. Lower disaster risk by ensuring essential safety
3. Cultivate safety human through communication and the 5Ss
4. Employ a health and safety management system, and achieve independence through self-diagnosis,
maintenance and improvement
5. Target health and a pleasant workplace through mental health measures and measures to counter
metabolic syndrome
6. Introduce smoking measures aimed at stopping smoking during working hours

Acquisition of Occupational Safety and Health Management System (OSHMS) Accreditation
The system that Furukawa Electric Group has constructed has demonstrated its effectiveness in preventing labor
accidents. We are promoting the creation of this system and its third-party accreditation.
As of March 31, 2013, we had acquired management system accreditation (note 1) at the following sites.
Company

Site

Date acquired

Furukawa Electric Co., Ltd.

Chiba Works

January 13, 2009

Furukawa Electric Co., Ltd.

Hiratsuka Works

November 15, 2010

Furukawa Electric Co., Ltd.

Mie Works

November 15, 2010

Furukawa Electric Co., Ltd.

Nikko WorksMarch 23, 2012

Furukawa Electric Co., Ltd.

Copper Tube DivisionDecember 20, 2012

Furukawa Magnet Wire Co., Ltd.

Mie Plants

November 15, 2010

Furukawa-Sky Aluminum Corporation

Fukui Plants

November 29, 2012

Furukawa-Sky Aluminum Corporation

Oyama Plants

December 20, 2012

(note 1) Organizations covered by the Occupational Safety and Health Management System are certified as meeting JISHA standards.

Presentation on Health and Safety Activities
Furukawa Electric holds presentations to showcase its health and safety activities,
honoring those of particular merit. Each works conducts its own presentations, withselected groups announcing their activities at the companywide presentation.

Forklift Truck Safety Skills Competition
Forklift accidents tend to cause serious injury. Furthermore, the cause of such
accidents can often be traced to insufficiently safe driving skills on the part of theoperator. Therefore, we hold our Forklift Truck Safety Skills Competition, so as toimprove awareness and operator skills.

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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 in high places, revolving equipment andelectricity, to raise their sensitivity to danger.

Manufacturing Works Patrols/Factory Checks
Each month, patrols are conducted at our manufacturing works to identify sources of danger and make improvements. In
addition, once each year a person in charge of health and safety at another manufacturing works performs a factorycheck, conducting inspections from a different point of view to confirm that no dangers have been overlooked.
We also conduct factory safety checks at Group companies, thereby extending the effectiveness of these activities
throughout the Group.

Labor Accidents
In 2012, the frequency rate of accidents requiring leave(note 2) was down, both for Furukawa Electric on a standalone basis
and for the domestic Group as a whole (note 3) pointing to year-on-year improvements.

(note 2) Frequency = (Accidents resulting in injury or death / total working hours) x 1 million(note 3) The scope of data collection for 2012 encompassed employees and temporary workers at Furukawa Electric andcompanies in Japan.
http://www.furukawa.co.jp/english/csr/social/employee_safe.pdf

24 affiliatedHealthcare for Employees Working Long Hours
In accordance with the Guideline issued by the Labor Standards Bureau entitled “Measures to be Taken by Employers toPrevent Health Impairment Due to Overwork,” we are focusing on managing the health of employees who work longhours by implementing strict limitations on worktime based on health checkups and arranging consultations by such
workers with industrial physicians.

64Furukawa Electric Group Sustainability Report 2013

Mental Health Education
We began conducting mental health measures in fiscal 2003. We invite industrial physicians and nurses to take part as
lecturers in education and training programs targeting managerial and general employees. In the past, such training has
focused on stress control for employees aged 30-35, as well as approaching mental health in terms of “work engagement(note 4)”In fiscal 2012, we also held Pleasant Workplace Discussion Groups for workplace environment improvement throughout
the Company to invigorate both individuals and worksites.
(note 4) A mental health concept pertaining to motivation, devotion, and energy regarding work.

Strengthening Smoking Measures
In fiscal 2004, we commenced measures to counter smoking in earnest, introducing programs to prevent exposure topassive smoke and encourage quitting smoking. As a result of such activities, the percentage of smokers among male
employees has fallen by approximately 20 percentage points over 10 years. As we plan to go to an entirely smoke-freeworkplace by fiscal 2021 at the latest, we are taking a multifaceted approach with three main thrusts: sharing information,
supporting efforts to quit smoking and creating a smoke-free environment.
Smoking rates among Furukawa Electric employees (male)

Responding to Asbestos-Related Health Issues
During the period from fiscal 2005 to 2006, we once again investigated workplaces that previously handled asbestos
products and we organized medical examinations focused on asbestos for all relevant employees. We also sent out
notices urging retired employees who worked at the relevant sites to undergo medical examinations.
As of March 31, 2013, three people have been confirmed as being involved in industrial accidents, and symptoms havebeen detected in nine.
Results of Medical Examinations
・People confirmed as having been in industrial accidents: Three (of whom one died of mesothelioma and one
died of lung cancer)
・People in whom symptoms detected: Nine (of whom one currently in employment and eight retired)65

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Relations with Our Employees

Employee Data Book
Group Data (Consolidated)
Number of Group Employees by Region

Furukawa Electric Data
Gender ratio of employees (As of March 31, 2013)

Recruitment figures by genderFiscal2009
MaleSpecialized
staff

Fiscal
2010

Fiscal
2011

84

79

Female

17

Total

101

Fiscal
2012

Fiscal
2013

Fiscal
2014

73

66

49

26

13

9

12

10

6

92

82

78

59

32

Foreign nationals

1

4

4

2

3

0

Male

86

44

15

21

2

0

Professional
Female
staff
Total

1

0

0

1

0

0

87

44

15

22

2

0

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Furukawa Electric Group Sustainability Report 2013

Overtime(Unit: Average hours per month)Fiscal 2009

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Direct work

21.62

23.36

24.15

23.84

24.33

Indirect work

18.44

14.06

17.03

17.45

18.14

Average

20.1

17.75

19.72

19.85

20.46

Fiscal
2008

Fiscal2009

Regular annual leave
Item

Fiscal
2010

Fiscal
2011

Fiscal2012

Unit

Days carried over per person
(A)

22.8

22.5

22.0

22.6

21.8 Days

Days granted per person (B)

24.1

24.0

23.9

23.9

23.6 Days

Days acquired per person (C)

12.1

13.6

13.3

13.1

13.0 Days

Acquisition rate (C÷B)

50.2

56.7

55.6

54.8

55.1 %(note) Regular annual leave is calculated as leave taken between September 16 and September 15 of the following year. Figures for fiscal 2013
are calculated for the annual leave year that has not yet concluded.

People taking volunteer leave

People taking refresh leave

Fiscal 2012

Fiscal 2013

2011

2012

Female00Female

1

4

Male

1

5

Male

63

77

Total

1

5

Total

64

81

(note)Five people took advantage of this leave, bringing the total
number to date to nine.

(note) 1 Refresh leave is calculated on a calendar basis (January 1 to
December 31)
2 Refresh leave is a system that accords employees who haveworked for 25 years continuous leave of between 14 and 31 days.

People taking maternity/paternity leave
FemaleFiscal 2009

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

45

39

35

35

33

Male

2

4

4

10

7

Total

47

43

39

45

40

Fiscal 2009

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Female

0

0

0

0

0

Male

0

0

1

2

2

Total

0

0

1

2

2

People taking nursing care leave

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Relations with Communities

Furukawa Electric Group Basic Policy on Social Contribution Activities
Furukawa Electric and the Furukawa Electric Group have continued to conduct social contribution activities that arerooted 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)
The Furukawa Electric Group will continuously undertake social contribution activities focusing on
nurturing future generations, promoting sport and culture, and living in harmony with the naturalenvironment and local communities, in addition to its business-related activities, in order tomaintain and strengthen community ties built over centuries and create a better tomorrow for
future generations.

Relations with Communities

CSR Awards
Fourth CSR Awards
Furukawa Electric established the CSR Awards to recognize the social contribution or environmental preservation
efforts of our subsidiaries that notably exceed their regular business. CSR Award-winning companies work on a daily
basis to continue contributing to society through these activities.

Social Contribution Award
Furukawa-Sky Aluminum Corp. (Japan)
Furukawa-Sky's Guiding Principles state that “As a good corporate citizen, we
proactively promote and sponsor social action programs,” and the company
conducts activities that are based in the local community on this basis. One of
Furukawa-Sky's particular points of focus is on welfare for people withdisabilities. Since the establishment in 2007 of the City of Fukaya
Furukawa-Sky Disabled Welfare Fund with donations from Furukawa-Sky, eachyear in addition to providing funds Furukawa-Sky sends two employees to join
as committee members of a subsidized project commission, where they
deliberate and make decisions on aid activities. The Fukui Works also works
with the city of Sakai's project to create a town that is friendly toward people
with disabilities, operates a care facility commuter bus and takes part in other Gingago (Donated in 2012, this bus
transports children to the Reihoku School
initiatives to enhance welfare facilities for people with disabilities. The
company also conducts a wide range of other activities. For example, each of for Children with Special Needs in the city of
Sakai.)
Furukawa-Sky's factories hosts plant tours for special-needs schools'
instructors and their students to support the employment of people with disabilities.

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Environmental Preservation Award
The Furukawa Battery Co., Ltd. (Japan)
End-of-life automobile batteries should be managed properly, but instead they are sometimes dumped illegally or thrownout along with general waste. Given this situation, ensuring that batteries are always managed safely and appropriately
could help to prevent the spread of harmful substances and preserve the natural environment and link with resource
recycling and the curtailment of resource depletion. In 2007, Furukawa Battery created a structure for managing
automobile batteries that, with the cooperation of various partners, the company operates as a proprietary recycling
system. Each year, this system is used to collect more than 200,000 batteries a year, which are converted to resources
and returned to the marketplace in the form of recycled products. Going forward, Furukawa Battery plans to continue
providing customers with products that they can have peace of mind in using, while preserving the environment andcontributing to society.
The Car Battery Recycling Flow

CSR Awards Topics

FMT, Winner of the Third CSR Award, Earns a Silver This Year for Its Anti-Drug Campaigning
Furukawa Metal (Thailand) Public Co., Ltd. (FMT), which received the Third CSR Award for its “To Be Number One”
(http://www.furukawa.co.jp/english/csr/social/region_affiliated03.htm#fmt) anti-drug campaign, received a silver award
last year at an event held to commemorate its 10th year of “To Be Number One” activities.

Furukawa Metal (Thailand) Public Co., Ltd. (FMT)
ThailandSince 2004, FMT has participated in Thailand's “To Be Number One” anti-drug campaign, of which Princess Ubolratana
Rajakanya is project leader. The company received a silver award last year at an event held to commemorate its 10thyear of these activities. FMT plans to continue visiting the villages nearby its Saraburi Plant, eliciting the cooperation of
the region's government institutions, local residents and schools in its efforts to raise youth awareness of drugs and theterror they wreak.

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Commemorative photo with Princess Ubolratana
Rajakanya at the event to commemorate the 10th
anniversary of the campaign

Commemorative photo of cooperative activities
undertaken with government institutions and schools in
the Saraburi area

Planting trees around Saraburi

Distributing flyers and sweets as part of a publicity
campaign in villages around Saraburi

Relations with Communities

Activities in Each Region
Providing Acorns to Nearby Elementary Schools (Hiratsuka, Furukawa Electric)
The site of the Hiratsuka Works houses trees that produce acorns, and in autumn the trees are filled with these nuts.
Around 2005, we began providing acorns from around our works to the Hachiman Elementary School in Hiratsuka, whichuses them as educational tools. Furukawa Life Service, which is in charge of the site's greenery, gathers acorns eachyear, and Furukawa Electric's General Affairs Section provides them to the principal, vice-principal and first-year
students of Hachiman Elementary School. The children receive the acorns with smiles on their faces, which makes us
happy, too. We plan to continue delivering joy to children in the form of acorns.

A poster received from the children, expressing their thanks

Lithocarbus edulus, which produces many acorns

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Contributing to Local Communities (Imaich, Copper Foil Division, Furukawa Electric)
The Copper Foil Division has made social contributions to the local community for some time. The division is inagreement with the activity policies of NPOs and special needs schools, among others, and has supported their efforts
for many years through voluntary participation in their functions and events. For example, once each week the division
sets up a bread-selling stall in its cafeteria for Fureai no Mori, an NPO. The stall provides work opportunities for people
with disabilities, who staff the stall. The division also contracts out the task of sorting packaging materials returned bycustomers and cleaning activities to Social Welfare Corporation Habataki Welfare Project (Habataki), another NPO. The
division provides the NPO's members with a workplace and participates actively in regional networking events that
Habataki organizes. In these ways, the division works to increase its interaction with special needs people.

December soba festival (Social Welfare
Corporation Habataki Welfare Project)
Fureai no Mori: This NPO seeks to provide relaxed workplaces for individuals who find work difficult due to mental and other disabilities or atendency to withdraw from society. The NPO conducts bread sales and offers instruction on acquiring certifications.
Social Welfare Corporation Habataki Welfare Project: This work support and welfare institution provides assistance to people with disabilities
by providing them with outsourced work.
Sales underway (Fureai no Mori)

July Tanabata festival (Habataki)

Small Acts of Volunteer WorkEvent at Head Office to Support Tohoku's Reconstruction—Demonstrating Our Preparedness (Head
Office, Furukawa Electric)
Last fiscal year and this fiscal year, workers and management again joined in an event held at Furukawa
Electric's head office to support Tohoku's reconstruction. We heard about initiatives being undertaken by the fishermenon the Karakuwa Peninsula in Miyagi Prefecture and learned from an industrial physician how to use automated external
defibrillators (AEDs). In addition to confirming our preparedness, this participation-style event was aimed at aiding
Tohoku's reconstruction, if only in a small way. On the day, numerous executives and employees took time from theirbusy year-end schedules to join the event. Donations collected there were donated to Higashi Nihon Daishinsai Kodomo
Mirai Kikin (the Fund for the Future of Children affected by the Great East Japan Earthquake), which provides monthly
scholarships to elementary, junior high and high school children who lost one or more parents in the earthquake.

Hearing about the activities of fisherman in
Karakuwa Peninsula, Miyagi Prefecture

Display of items stockpiled in preparation
for disaster

Training on AED use

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Relations with Communities

Awards from Outside Sources
2013
PeriodSubject / Implementing organization

Feb.

Technical Committee of Optical Fiber Technologies
Encouragement Award 2012:
Analyzing a New Mechanism of Air Holes to Suppress Micro-bending Loss inLarge-mode-area Optical Fibers
Implementing organization Technical Committee of Optical Fiber Technologies,
the Institute of Electronics, Information and Communication Engineers

Winning organization

Yukihiro Tsuchida
FITEL Photonics Laboratory, Furukawa
Electric

The Kanagawa Global Environment Award 2012 Energy Saving
Prize
Feb.

Furukawa Electric Yokohama Works
Implementing organization the Kanagawa Global Environment Conservation
Promotion Forum and the Kanagawa Prefectural Government

2012
PeriodNov.

Subject / Implementing organization
Japan Institute of Copper, 46th Research Association Award:
Effect of Crystal Orientation Distribution on Young's Modulus in Cu-Ni-Si
Alloy Strip
Implementing organization Japan Institute of Copper

May.

Yttrium-based superconducting wire for high magnetic fields
Implementing organization R&D Magazine

Japan Institute of Electronics Packaging, Technology Award:
Low power Consumption 1060nm 10Gb/s x 12-Channel Parallel-Optical
Modules
Implementing organization Japan Institute of Electronics Packaging

Apr.

Hiroshi Kaneko
Metal Research Center, Furukawa ElectricSuperPower Inc. of the United States, asubsidiary of Furukawa Electric

2012R&D 100Awards
Jun.

Winning organization- Winning the award together with the
University of Houston as co-developers of
the Oak Ridge National Laboratory Hideyuki Nasu and six others
FITEL Photonics Laboratory, Furukawa
Electric

The Laser Society of Japan, Laser Industry Encouragement
Hiroshi MatsuuraAward 2012: 555nm Green Laser Using Fiber Laser as Fundamental Wave for
FITEL Photonics Laboratory, Furukawa
Confocal Laser Scanning Microscope for Biotechnology
Electric
Implementing organization The Laser Society of JapanBCAO Award, Award for Practical Excellence

Apr.

Promotion of BCM activities throughout the Furukawa Electric Group
Implementing organization Business Continuity Advancement Organization(BCAO)

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Furukawa ElectricFurukawa Electric Group Sustainability Report 2013

Editorial Policy
Editing This Report
This report is intended to provide an easy-to-understand account to enhance understanding among all stakeholders of
the Furukawa Electric Group's business activities, as well as its CSR-related perspectives and initiatives. We selected
items of particularly high importance for inclusion in this report, after considering priority issues from society's
perspective and from the viewpoint of the Furukawa Electric Group.
In the fiscal 2014 edition of this report, the president's message provides an overview of Furukawa G Plan 2015, our
medium-term management plan. The special feature highlights one of the priority measures of this plan, namely todevelop new, next-generation businesses. This section describes the Group's aim of conserving the environment bypromoting the efficient use of energy.
• The Furukawa Electric Group has produced an Environmental Report, Environmental and Social Report, or CSR
Report each year since 2000. In fiscal 2013, its title was changed to the Sustainability Report and included
business and financial information, as well.
• The current report is not available as a printed edition. Rather, it is provided for viewing on the CSR activities
section of our corporate website. This information on this site can also be downloaded in PDF format.
To the Sustainability Report 2013 page
http://www.furukawa.co.jp/english/csr/report/index.htm

Scope of This Report
PeriodCoveredFiscal 2013, from April 1, 2012 to March 31, 2013
(note) Includes selected information on past initiatives and activities during fiscal 2014.

Publication
Timeframe

Publication date: August 30, 2013
Planned publication of next edition: August 2014 (previous edition published in September
2012)

Organizations
CoveredThis report covers Furukawa Electric Co., Ltd. and affiliated companies in Japan andoverseas. Where activities are limited to specific regions or companies, this fact has beenclearly indicated in the reporting.

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

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 of the relevant information, the Investor & Public Relations Department and the CSR Department, which is incharge of editing this report. We have also provided a third-party opinion so as to offer the point of view of an outside
expert.

Editing and Publication
CSR Department, Administration & CSR Division, Furukawa Electric Co., Ltd.
Marunouchi Nakadori Bldg., 2-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8322, Japan
TEL:+81-3-3286-3044
FAX:+81-3-3286-3920

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Furukawa Electric Group Sustainability Report 2013

Inquiries
Please direct general inquiries about this report to:
CSR Department, Administration & CSR Division, Furukawa Electric Co., Ltd.
TEL: +81-03-3286-3044
FAX: +81-03-3286-3920

Please direct inquiries about environmental reporting to:
Safety and Environment Promotion Department, Production Technology Division, Furukawa Electric Co., Ltd.
TEL:+81-45-311-1334
FAX:+81-45-311-1931

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Furukawa Electric Group Sustainability Report 2013

Third-Party Opinion
Mr. Koichi Ikeda
Visiting Professor, Ritsumeikan University Management School

Career Summary
Graduated from the Faculty of Law at Kyoto University in 1971 and joined
Matsushita Electric Industrial Co., Ltd. (now Panasonic Corporation). As the firsthead of the company's business ethics department and its risk management office,conducted initiatives related to CSR, compliance and risk management. Left thecompany in 2007 to serve as Professor at the Rikkyo University Graduate Schoolof Business Design (2007 - 2012), after which he assumed his current position.
Also holds positions as Trustee of the Association of Certified Business Ethics
Expert JAPAN and Standing Director of the Business Ethics Research Center, andserves as Chair of the Compliance and Advisory Committee for the Ministry ofLand, Infrastructure, Transport and Tourism (Kanto Regional Development Bureau)
The number of companies taking a proactive stance toward CSR has grown in Japan as well as throughout the world. I findslightly unfortunate, however, the tendency for companies to think of CSR as something separate from their businesses and an
added activity. ISO 26000, the International Organization for Standardization's social responsibility standard, defines CSR as
being something that “is integrated throughout the organization and practiced.” True CSR is connected directly withmanagement activities, and should play a central role in operational execution. Particularly for this reason, CSR activities that
increase the sustainability of society should also enhance corporate sustainability.
From the Furukawa Electric Group Sustainability Report 2013, I get the sense that the Company is making a diligent effort tolink CSR initiatives directly with its management activities and conduct such initiatives as part of its operations. The
perspicuous wording of the message from the president expresses the Group's business and CSR directions based on deep
insight into the operating environment and the current status and essence of the Group. In this message, the president
indicates that through the Furukawa G Plan 2015, the medium-term management plan that the Group launched this year, theGroup will make a steady effort to contribute to a sustainable society. For example, the president emphatically outlines theGroup's aspiration to help resolve global-scale issues involving electricity and communications infrastructure and theautomobile markets, as well as to develop new, next-generation businesses with an eye to environmental conservation. The
special feature section introduces the groupwide orientation on initiatives to develop new, next-generation businesses such as
high-capacity communications infrastructure. These fields are truly essential to the social infrastructure that supports asustainable society.
Broadly divided into operations, management, the environment and sociality (centered mainly on involvement withstakeholders), this report comprehensively expresses policy -- organizational system -- specific initiatives. Furthermore,
reporting is consistent. From my perspective, the most distinguishing characteristic of this report is its broad-based yet
careful attention to diverse CSR issues, addressed systematically. Also, it is clear that Furukawa Electric is working to extend
these efforts to Group companies. For example, looking at the targets and performance in the environmental report section,
the tables there make it easy to see at a glance the state of Furukawa Electric's and its Group companies' initiatives on
individual themes and their results. It would not be a stretch to say that the Group is making a concerted effort to review thestatus of themes that are particularly noteworthy.
There are other important facets of CSR in addition to a company's contribution to society. These include the innovations thata company generates in response to society's expectations. Improving or transforming its operations from a CSR perspective
and initiatives will lead to the transformation of corporate culture. For example, enhancing communications with diverse
stakeholders and strengthening cross-organizational monitoring is useful in a number of ways. It is important to make efforts todescribe to various stakeholders in plain language and with clear images some of the Group's specialized technologies andproducts described in this report's special feature. This sort of approach may appear trivial, but it will lead to corporate culturethat gives priority to complex thoughts and overall optimization. I look forward to seeing the Group's efforts toward tirelessdevelopment through innovation arising from CSR perspectives and initiatives.

75Furukawa Electric Group Sustainability Report 2013

History of Furukawa Electric's CSR Activities
1972
1974
1989
1992
1993

1996
1997
1998

2000
2001
2002
2003

2004

2005

2006

2007

2008

Companywide Rules for Pollution Prevention
formulated
Environmental Control Department established
Energy Conservation Team establishedTeam for Reduction in Use of Specified CFCs
establishedAnti-Monopoly Act Guidelines issued

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
Compliance pledge introduced
e-Friendly mark (environmentally harmonious
product) certification system started

Basic Framework for Protecting the Global
Environment formulated(Furukawa Electric's voluntary environmental
preservation plan)
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 certificationcommenced
Companywide Regulations for Pollution
Prevention revised to create the Companywide
Regulations for Environmental Management
First Environmental Report published
Environmental accounting started
Zero-emissions activities commenced
Anti-Monopoly Law manual published
Furukawa Survival Plan announced
Executive Officer System introduced
Furukawa Electric Basic Environmental Policy
revisedCompany system and chief officer system
introduced
Furukawa Electric Group Action Guidelines
formulated
Furukawa New Leaf established as a special
subsidiary offering employment to people withdisabilities
Internal reporting system introduced andinternal and external reporting desks
establishedCompliance Handbook published
Medium-term management plan Innovation 09
announced
Report published under the revised title“Environmental and Social Report”
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 Electric Group 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 Affiliated Company Awards

2010

Medium-term management plan, New Frontier
2012, formulated
CSR Deployment Guideline for Business
Partners issued“Heart-to-heart communication between
president and employees” and “Compliance
Roundtables” initiatedCompliance Months introduced
Compliance awareness surveys for affiliatedcompanies conducted
Information security and personal information
protection months introduced
Furukawa Electric Group Basic Policy on CSR
revised¥250 million donated for reconstruction support
for the region affected by the Great East Japan
Earthquake (Groupwide)
Furukawa Electric Group CSR Code of Conduct
revised, and Furukawa Electric Group Action
Guidelines accordingly eliminatedCompetition Laws Compliance Guide published
BCAO Award 2011, the “Award for Practical
Excellence,” received from the BusinessContinuity Advancement Organization (BCAO)
Report name revised to Sustainability Reportand issued
Furukawa Electric Group Anti-Bribery
Statement and Bribery Prevention Guide
formulated
Medium-term management plan, Furukawa G
Plan 2015, announced
Transitioned from company system and chief
officer system to a system of strategic
business units and head office divisions
Administration & CSR Division inaugurated

2011

2012

2013

76

Furukawa Electric Group Sustainability Report 2013

GRI Guideline Table of Contents
No.

Indicators

Page

1. Strategy and Analysis
1.1Statement from the most senior decisionmaker of the organization about the relevancePresident Message
of sustainability to the organization and its strategy

1.2

Description of key impacts, risks, and opportunities

President Message
Special Feature

2. Organizational Profile

2.1-2.8

Organizational profile

Company Profile
Business Field
Global Network
AT A GLANCE
Employee Data Book

2.9

Significant changes during the reporting period regarding size, structure, or ownership

No major changes

2.10

Awards received in the reporting periodAwards from Outside
Sources

3. Report Parameters3.1-3.3

Report Outline

Editorial Policy

3.4

Contact point for questions regarding the report or its contents

Editorial Policy

3.5

Process for defining report content

Editorial Policy
CSR Management

3.6-3.8

Boundaries and scope of the report

Editorial Policy

3.9

Data measurement techniques and the bases of calculations, including assumptions andtechniques underlying estimations applied to the compilation of the Indicators and other Data page
information in the report

3.10-3.11

The reasons for and effects of restatements of information provided in earlier reports,
as well as significant changes since the previous reporting period

No repetition from theprevious report's content nor
major changes

3.12

Table identifying the location of the Standard Disclosures in the reportGRI Guideline Table ofContents

3.13

Policy and current practice with regard to seeking external assurance for the report

Editorial Policy
Third-Party Opinion

4. Governance, Commitments, and Engagement
4.1-4.3

Outline of corporate governanceCorporate Governance

4.4

Mechanisms for shareholders and employees to provide recommendations or direction
to the highest governance body

Corporate Governance
Upgrading and Enhancing
Workplace Environments

4.5-4.7

Corporate governance details

Corporate Governance

4.8

Internally developed statements of mission or values, codes of conduct, and principles。

CSR Management
CSR Code of Conduct

4.9-4.10

Process whereby the highest governance body oversees the organization's
CSR Management
identification and management of economic, environmental, and that body's process for
Corporate Governanceevaluating social performance

4.11

Explanation of whether and how the precautionary approach or principle is addressedby the organization

Risk Management
Compliance

4.12

Externally developed economic, environmental, and social charters, principles, or otherinitiatives to which the organization subscribes or endorses

Biodiversity Conservation
CSR Management

4.13

Memberships in associations (such as industry associations) and/or
national/international advocacy organizations

Not indicated (JapaneseElectric Wire & Cable Makers'
Association, etc.)

4.14-4.17

Stakeholder engagement

CSR Management
77

Furukawa Electric Group Sustainability Report 2013

5. Performance Indicators

Economic

Management approach

AT A GLANCE
President Message

EC8

Development and impact of infrastructure investments and services provided primarily
for public benefit through commercial, inkind, or pro bono engagement

CSR Awards
Activities in Each Region

Environmen
Management approachtal

President Message
Environmental Management

EN1

Materials used by weight or volume

Material Flow

EN3

Direct energy consumption by primary energy source

Material Flow

EN5

Energy saved due to conservation and efficiency improvements

Preventing Global Warming

EN6

Initiatives to provide energy-efficient or renewable energy based products andservices, and reductions in energy requirements as a result of these initiatives

Environmentally Friendly
Products

EN7

Initiatives to reduce indirect energy consumption and reductions achieved

Preventing Global Warming

EN8

Total water withdrawal by source

Material Flow

EN14

Strategies, current actions, and future plans for managing impacts on biodiversity

Biodiversity Conservation

EN16

Total direct and indirect greenhouse gas emissions by weight

Preventing Global Warming

EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved

Preventing Global Warming

EN20

NO, SO, and other significant air emissions by type and weightMaterial Flow
Chemical SubstanceManagement

EN22

Total weight of waste by type and disposal method

Material Flow
Reducing Waste

EN26

Initiatives to mitigate environmental impacts of products and services, and extent of
impact mitigation

Environmentally Friendly
Products

EN30

Total environmental protection expenditures and investments by typeEnvironmental Management

Labor

Management approach

Occupational Health and
SafetyLA1

Total workforce by employment type, employment contract, and region

Employee Data Book

LA8

Education, training, counseling, prevention, and risk-control programs in place to assist Occupational Health andworkforce members, their families, or community members regarding serious diseases Safety

LA11

Programs for skills management and lifelong learning that support the continued
employability of employees and assist them in managing career endings

Personnel Management
Policy/Human Resources
Development

Human rights

Management approach

Personnel Management
Policy/Human Resources
Development

HR3

Total hours of employee training on policies and procedures concerning aspects ofhuman rights that are relevant to operations, including the percentage of employees
trainedComplianceSociety

Management approach

CSR Management

SO3

Percentage of employees trained in organization's anti-corruption policies andprocedures

CSR Code of Conduct
ComplianceSO7

Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly
practices and their outcomes

Compliance
Relations with Our
Customers
Environmentally Friendly
Products

Product
Management approach
Responsibility

PR3

Type of product and service information required by procedures, and percentage ofsignificant products and services subject to such information requirements.

78

Environmentally Friendly
Products