Environmental Report2004ごあいさつ環境報告

古河電工の事業概要

社会性報告

社会への姿勢関連会社の環境活動

中期2005年

環境への歩みTable of Contents
Message01

Summary of Business

02

Furukawa Electric’s Approach to Society

03

Medium-Term Plan for Environmental Preservation Activities 200504

Our Environmental Report
・Performance in Fiscal 2003 and Targets in Fiscal 2004
・Environmental Management Activities
・Impact on the Environment by Furukawa Electric・Reduction of Industrial Waste and Zero-Emission Activities
・Reduction of Organic Chlorine Compounds and Reduction of Chemical Substances
・Prevention of Global Warming and Energy Conservation
・Green Activities and Green Logistics
・Eco-Design Activities
・Environmental Risk Management
・Environmental Preservation Performance Indicators
・Environmental Accounting

Editorial Policy
05
06
07
08
09
10
12
13
16
18
20

Social Performance Report
・Awareness Activities and Social Contribution Activities
・Safety, Health and Human Resources
・Environmental Activities of the Works

21
22
24

Environmental Activities of Affiliated Companies
・Overview of Consolidated Environmental Activities

・Activities of Affiliated Companies

27
29
30

Progress in Environmental Management

33

・Environmental Impact Data of Affiliated Companies

This brochure reports on the environmental
preservation activities of Furukawa Electric in fiscal 2003. In addition to the articles covered lastyear, this report will include human resource
activities for better disclosure of our initiatives insociety. We also tried to make this report clearer
and more reader-friendly.
In compiling this report, we made reference toEnvironmental Reporting Guidelines (Fiscal Year
2003 Version) published by the Ministry of theEnvironment as well as Sustainability Reporting
Guidelines 2000 by Global Reporting Initiative.

Covered business bases
1. All the business bases of Furukawa Electric(1) Chiba Works(2) Nikko Works(3) Hiratsuka Works(4) Oyama Works(5) Mie Works(6) Osaka Works(7) Fukui Works(8) Shiga Works(9) Kambara Works(10) Shinagawa Works(11) Yokohama R&D Laboratories
Sheet plant of Nikko Works, Oyama Works,
Fukui Works and Shiga Works became a manufacturing base related to Furukawa-Sky
Aluminum Corp. on October 1, 2003. However,in this report, we include them on a parent basis,using their former names as of April 2003.
2．Affiliated companies
Nippon Foil Mfg.
FURUKAWA AUTOMOTIVE PARTS
Riken Electric Wire and 37 other companies（Refer to page 27 for environmental activities ofaffiliated companies）

For Furukawa-Sky Aluminum Corp. which commenced operations during fiscal 2004

Period Covered
From April 1, 2003 to March 31, 2004

The light metals division of The Furukawa Electric Co., Ltd. integrated with SKY Aluminum Co., Ltd. on
October 1, 2003 to commence as Furukawa-Sky Aluminum Corp. and it is currently an affiliated company on consolidated account. The environmental impact from this division is extremely huge and thus
the impact on data collection given by the division is significant, thus we have collected and compiled
data of the division on a full year basis in order to secure continuity of data from activities of the year.

Enquiries and further information
Safety, Environment & Quality Promotion Dept
The Furukawa Electric Co., Ltd.
TEL +81-3-3286-3090
FAX +81-3-3286-3540

Message

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

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

Activities of the Furukawa Electric groupworking
on the realization of "sustainable society"
Furukawa Electric has proactively engaged in activities aiming to realize a sustainable
society that reduces environmental impact and increases resource capabilities in order torealize a"resource-recycling society", and has continuously disclosed the outcomes ofsuch activities to society.
We finally began seeing bright signs in the overall domestic economy as a result of thereceding financial crisis and deflationary concerns in fiscal 2003. Meanwhile, although
the Company’s business environment has significantly improved since the year before
last, IT investment in Japan and overseas has not yet smoothly expanded and thus thebusiness situation still remains harsh. However, one of the most important assignmentson the management agenda is actively striving to solve various issues related to preservation of the environment with the aim of achieving a sustainable society. This is being
undertaken by Furukawa Electric’s parent company, working in cooperation with all our
corporate groups. In terms of concrete actions related to the environment, we specified
target levels and time frames that must be achieved in each target group.
Furukawa Electric and its group are involved in a number of core businesses including
Telecommunications, Plastic, Cables and Wires, Nonferrous Products, Electronics-related
Products and others. We have a long time involvement in proactive recycling of copperand aluminum, and recovery and reuse of plastics, while focusing on developing environmentally friendly products.
From fiscal 2003, in particular, we developed a number of new environmentally friendly
products under the name of ECOLINK, such as environmentally friendly optical cables
that are halogen- and lead- free, new type of cable troughs for which disposed cables
were recycled, and partial-stripe precious metals for which the use of these precious
metals are minimized. We also intend, through development of sophisticated recycling
technologies and environmentally friendly products, to make a contribution to preserve
the global environment and conserve its resources.
For promoting the procurement of green supplies, we believe that we have also won ourcustomers’ trust by meeting their requirements for environmental investigations and plant
audits. Meanwhile, we have clearly specified company-wide standards in order to purchase products for which greenness is well assured.
In fiscal 2002, we acquired ISO14001 certification, which had been an important
objective in the area of environmental preservation, for 11 works, that are all production
bases of Furukawa Electric. 33 out of 40 affiliated companies, which participate in consolidated environmental management, acquired certification in fiscal 2003. We willcontinue pursuing active programs on environmental preservation through co-sharing
environmental preservation data, exchanging information regarding concrete environmental actions, and holding seminars, targeting the acquisition of ISO14001 certification by all affiliated companies.
We had promoted environment preservation activities based on each operational basein the past. However, recently we have received a variety of requests in broader areasfrom society, including customers and local communities. We intend to further strengthen our activities to improve these environmental issues.
Here we present a report summarizing our environmental preservation actions in fiscal
2003. It is our hope that readers will reach some understanding of the activities of
Furukawa Electric and its associated group of companies and that you will pass onto us
your frank opinions and suggestions.

Hiroshi Ishihara,President

01

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

Summary of Business

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

Company Profile
Since its establishment more than a century ago, Furukawa Electric has kept pace with the progress intechnology which has shaped the foundations of Japanese industry. Originally fostered by electric cables
and non-ferrous metals, the Company’s advanced technologies have steadily expanded in response to theneeds of the times and still continue to challenge new possibilities with innovation and creativity.
Head Office6-1, Marunouchi 2-Chome, Chiyoda-ku, Tokyo 100-8322 JapanFounded1884

Changed firm name

1920

Paid-in Capital

59.2 billion yen

Number of employees 5,777■Head office●Works：Chiba Works, Nikko Works, Hiratsuka Works, Mie Works, Osaka Works, Kambara
Works, Shinagawa Works, Yokohama R&D Laboratories●Sales Offices：Kansai Branch Office, Chubu Branch Office,Kyushu Branch Office,Chugoku
Branch Office,Tohoku Branch Office,Hokkaido Branch Office●Research Laboratories：Yokohama R&D Laboratories, Metal Research Center, Ecology &※We have split the light metals division in October 2003 to begin operationsof Furukawa-Sky. Fukui, Oyama and Nikko works (Nikko Sheet Plant) and
Shiga works ,in this report, are now part of the manufacturing base of
Furukawa-Sky.

Energy Laboratory, FITEL Network Laboratory, FITEL Photonics
Laboratory, Automotive Technology Center（As of March 31, 2004）

Consolidated Business Performance

Summary of Business

Consolidated sales increased to 789,867 million yen (up 4.1% year on year)
due to expansion in sales in all divisions except the Telecommunications division and the expanded scope of consolidation, as a result of enhancing
group management. However we incurred net losses of 140,128 million yen
due to asset disposal reduction of the US subsidiary OFS and assets disposal
losses for business restructuring.

Major market products, ranging from raw materials to various systems in thefour business areas supported by the advanced technology of Furukawa
Electric are summarized here together with their environmental aspects.

■ Total Sales■ Net income(Billion yen)(Billion yen)

Major Products

200

900
800

150

700

Plastic,
Cables and Wires

Nonferrous
Products

Electronics-related
Products
and Others

Optical fibers andcables, Optical components, Optical fiber
cable accessories andinstallations, andNetwork equipment

Bare wires, Aluminum
wires, Coated wire,
Winding wire, Power
cables, Power transmission cable accessories
and installations, Plastic
products such as power
cable conduit material
and foam sheets, andThermoelectric products

Copper pipes androds, Electrolytic copper foils, Shapememory alloys,
Aluminum sheets,
Extruded aluminumproducts, and Castand forged products

Automotive components and electric
wirings, Heat pipes,
Aluminum circuitboards for memory
discs and Electronic
component materials

100

600
500

50

400

0

300

18%

25%

37%

20%

-50

Chiba

○

○

―

○

-100

Nikko
（Kiyotaki District）

―

○

○

○

-150

Nikko
（Sheet Plant）

―

―

○

○

Hiratsuka

○

○

―

○

Oyama

―

―

○

―

Mie

○

○

○

○

Osaka

―

―

○

○

Fukui

―

―

○

―

Shiga

―

―

○

―

Kambara

―

○

―

―

Shinagawa

○

○

―

―

Yokohama R&D

○

―

―

○

Laboratories

―

○

○

―

Energy conservation
Global warming

―

○

○

―

Resource saving

○

○

○

○

Recycling

○

○

○

―

Hazardous
substance elimination

○

○

―

○

Sales Composition Ratio

200
100
0
1999

2000

2001

2002

1999

2003

2000

2001

2002

2003

■ Total assets■ Number of employees(Billion yen)(Thousand people)

30

1600
1400

Production Bases(fiscal year)(fiscal year)

25

1200
20

1000

15

800

Environmental aspects

600

10

400
5

200

0

0
1999

2000

2001

2002

2003
(fiscal year)

02

Telecommunications

1999

2000

2001

2002

2003
(fiscal year)

Furukawa Electric’s Approachto Society

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

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

Company Policy of Furukawa Electric (group)
Basic Management Policy

Furukawa Electric
Basic Environmental Policy

・Have a high regard for our customers
・Value and bring out the best of our employees
・Proactively adopt new technologies that harness
creativity

Basic Policy

Our Vision
Pursuing technology innovation andaiming for a creative and highly profitable company with stronger global
presence

Furukawa Electric recognizes that preservation of the global environment is a critical issue for society, and shallincorporate consideration of environmental preservation
issues into every phase of corporate activity,
to contribute to advancement of a sustainable,
happy and prosperous society.

Action Guidelines● All activities shall be based on an awareness of its effect on the global environment, and environmental preservation
activities shall be pursued by all employees.

● We shall observe environmental laws and regulations and requirements from our customers, and set up voluntary standards to upgrade control levels.

● We shall define environmental targets and objectives, and carry out activities according to this plan, thereby continuously improving environmental preservation activities.

● Environmental concerns shall be taken into consideration in every phase of our work from the R&D and design stages
to supply environmentally friendly products.

● In every phase of procurement, manufacturing, distribution and customer service we shall work to reduce consumptionof resources and energy, to promote recycling, and to reduce waste materials and the impact on the environment.

● We shall carry out environmental audits, and review our environmental management system and environmental
preservation activities for continuous improvement.

● We shall educate all employees to enhance their environmental awareness, and promote disclosure of information andsocial communication, thereby actively contributing to community activities.

03

Medium-Term Plan For Environmental
Preservation Activities 2005

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

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

Review of Medium-Term Plan for Environmental
Preservation Activities 2005
We had previously set activity items and target standards in the Medium-Term Plan for Environmental Preservation Activities
2005. However, the impact on the environmental by Furukawa Electric group including industrial waste and emissions ofchemical substances have changed accordingly with the commencement of operations of Furukawa-Sky in fiscal 2003.
Viewing this as an opportunity, we have reviewed the results of our previous activities and revised the Medium-Term Plan※（）are the values before the revision.
with higher targets, for further improvement.

2. Effluent Reductionof Chemical Substances

1. Reduction of Industrial Waste

50% LESS

Industrial Waste

Landfill Quantity

ChemicalSubstances

60% LESS

54% LESS

Reduction of industrial waste

Zero-emission activities

Effluent reduction of chemical substances

50% reduction over fiscal 2000 in fiscal 2005.

60% reduction of landfill quantity over fiscal 2000
in fiscal 2005

54% reduction over fiscal 2000 in fiscal 2005

(our previous plan: 30% reduction)(our previous plan: 50% reduction)

Targeted substances：Toluene, Xylene, Ethylbenzene(our previous plan: 40% reduction)

3. Reduction of Greenhouse Gases

CO2

5% LESS

SF6

50% LESS

Energy1% LESS

Reduction of CO2 emission

Reduction of SF6 emission

Energy conservation

5% reduction over fiscal 2000 in fiscal 2005

50% reduction over fiscal 2000 in fiscal 2005

1% reduction over previous year in terms of EIPUP

4. Promotion of Green Activities / Procurement of Green Supplies
Procurement ratio for 23 general supplies including stationery
Achievement ratio for investigation of purchased products from major vendors

100% in fiscal 2005
100% in fiscal 2004

5. Eco-design Activities
Development of environmentally friendly products
Evaluation of environmental impact Investigation and examination of industry trends and necessity of products by fiscal 200404

6. Reinforcementof Environmental Management Organizations

7. Promotion of Consolidated
Environmental Management

Establishment of environmental management organizations in the head and branch offices by fiscal 2005

Promotion of environmental activities in affiliated companies.

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

Our Environmental Report

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

Performance in Fiscal 2003 and Targets in Fiscal 2004
Targets and achievement report for the Medium-Term Plan for Environmental Preservation Activities in fiscal 2003 are shown as follows.

Priority Environmental Preservation Activity Targets and Performance in Fiscal 2003
TargetChange overfiscal 2000
18% reduction

TargetChange overfiscal 2000
30% reduction

Industrial Waste

34% LESS

40% LESS

34% LESS

Evaluation ◎Evaluation ○Evaluation ○Zero-emission activities

P8

34% reduction over fiscal 2000

34% reduction over fiscal 2000

40% reduction of landfill quantity over fiscal 2000

TargetEIPUP
Change overfiscal 2003
1% reduction

Greenhouse Gases

8% LESS

1% increase

Evaluation ◎Evaluation ×

P10◎ : Achieved beyond target○ : Achieved△ : Slightly under-achieved
× : Considerably

under-achieved

Promotion of energy-conservation activities
1% increase over the previous year in EIPUP

Promotion of procuring green products and supplies
TargetPerformance

Evaluation

・Designing evaluation measures
・Establishing a systemfor procuring green products and supplies
・Enhancing response to customers

・Set standards and revised regulations and rules
・Established a systemfor procuring green products and supplies
・Already responded to customers○○○

Promotion of consolidated pro-environmental management
Performance

Evaluation

・Co-sharing of information and promotion of education ○P10

Priority Environmental Preservation
Activity Targets for Fiscal 2004
The table here shows activity items and targets for fiscal 2004 of the revised
Medium-Term Plan for Environment Preservation Activities 2005. Individual
business bases will adopt these targets into their environmental management
activities and plan to promote their own activities.

Priority Environmental Preservation
Activity targets for fiscal 2004
● Reduction of industrial waste
40% reduction over fiscal 2000

Eco-design activities
Target・Developmentof environmentally friendly products・Investigation of LCA case examples● Zero-emission activities

Performance
・Attained 39% new product sales ratio
・Completed investigation of industry casesand existing LCA tolls

Evaluation○△

Reinforcement of environmental management organizations

50% reduction over fiscal 2000

● Promotion of procuring green products
Promotion of procuring of 23
general commodity items including
stationery
Attained 100% of investigation onpurchased products from major
vendors in fiscal 2004

Target・Establishment of environmental
management organizations

P9

Evaluation
standards

EnergyReduction of greenhouse gases

・Establishment of promotion framework

Effluent reduction of chemical substances

P8

TargetChange overfiscal 2000
4% reduction

TargetChemical Substances

Landfill Quantity

Reduction of industrial waste

8% reduction over fiscal 2000

TargetChange overfiscal 2000
30% reduction

Performance
・Promotion of environmental education
for management

Evaluation○● Reduction of greenhouse gases
Greenhouse gases emission:
Attained the same

performance as the previous year

● Energy-conservation activities
EIPUP：1% reduction over theprevious year

● Effluent reductionof chemical substances
52% reduction over fiscal 2000

● Reinforcement of consolidated
environmental management
Formulating and activating policies
for group activities● Eco-design activities
Development of models towards
introduction of LCA

05

Our Environmental Report

Environmental Management Activities
Organization Chart for Company-Wide Environmental Management
The Chart here shows the environmental management organization of the company. Central Committee for Environmental Management, in which the Director in
charge of the environment comes in as Chairman, has been set up to carry out environmental management under direct control of the President, thereby promoting environmental preservation activities of the entire company.

President

Committee for Company-Wide Promotion of Energy Conservation

Chairman: Executive Environmental Director
Members: Division Managers, Managers of Works
Role: Discussion on company-wide environmental standards
and company-wide activity targets
Secretariat: Safety, Environment and Quality Promotion Dept

Central Committee
for Environmental Management

Chairman: Executive in charge of Production Technology &Engineering division
Members: Managers of Manufacturing division,
Production Technology & Engineering division

Committee for Developmentof Environmentally-Friendly Products

Safety, Environment and Quality Promotion Dept. ※Chairman: Manger of Planning Dept., R&D Div.
Members: R&D departments, Business divisions
Safety, Environment and Quality Promotion Dept.

Divisional Environment Committee
Chairman: Division Managers
Members: Environmental personnel, Managers of plants

Environment Committee of Works
Chairman: Manager of Works
Members: EMR, Managers of plants

Expert Committee
Energy Conservation Committee, Industrial Waste
Committee, Chemical Substance Committee, Others

Procurement of Green Supplies
Executive Committee

Chairman: Manager of Safety, Environment and Quality Promotion Dept.
Members: Purchasing Dept., Business divisions, related divisions

Environment Personnel Meeting

Chairman: Manager of Safety, Environment and Quality Promotion Dept.
Members: Environmental personnel of works, Environmental personnelof business divisions

Liaison Meeting for Consolidated
Environmental Management

Chairman: Manager of Safety, Environment and Quality Promotion Dept.
Members. Secretariat and environmental personnel of affiliated companies※Former name : Safety, Environment and Health Promotion Dept.

ISO14001 Certification

Education and Training

Considering that ISO14001 would be a very effective scheme for environ-1

mental preservation, we have been pursuing certification acquisition since fis-

Educational courses for internal auditors were given in June and Augustcal 1998, and all the Works achieved this goal in fiscal 2002. Hereafter, we

and we trained a total of 40, 23 and 17 employees of Furukawa Electric

will proceed to improve our environmental performance. Moreover, we will

and affiliated companies, respectively.

support the environmental management of affiliated companies, thus promoting preservation of the global environment from the standpoint of consolidat-

Education of Internal Auditor2

ed environmental management.

Skill Upgrade Seminar for Internal Auditor
We invited lecturers from outside and held a two-day skill-upgrade seminar for Internal Auditor to operate environmental management system

Works

Date of Acquisition

Certifying
Organization

Chiba
Mie
Hiratsuka
Osaka
Kambara
Shinagawa

June 18, 1998
November 24, 1998
September 1, 2000
December 19, 2000
December 25, 2000
November 2, 2001

DNV
JACO
DNV
DNV
JSA
DNV

EMSC-1208
EC98J1097
EMSC-1699
EMSC-1114
JSAE31500372-2001-AE-KOB-RvA

Nikko

March 14, 2002

DNV

1851-2002-AE-KOB-RvA/JAB

Fukui

April 19, 2002

DNV

00484-2002-AE-KOB-RvA

Yokohama R&D
Laboratories

June 14, 2002

DNV

1849-2002-AE-KOB-RvA

September 27, 2002

DNV

00583-2002-AE-KOB-RvA

March 14, 2003

DNV

Expansion of Nikko Works（Kiyotaki District）

Oyama
Shiga
Nikko
（Sheet Plant)06

more effectively in March. 17 staff from our facilities attended the semi-

Certification Number

nar to enhance their skill.
3

Environmental Education

Company-wide education was given to 30 new recruits in April, to 41
second-year administrative employees in June and to a total of 122 second year technical employees over three sessions from October toDecember. In addition, general and special environmental education wasprovided for all employees at their works and worksites.

4

Educational Support for Affiliated Companies
Education of ISO standards, environment related registration and others
was provided to 57 management level employees of affiliated companies
in August and November. The request for management education wasmade by affiliated companies.

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

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

Impact on the Environment by Furukawa Electric
Furukawa Electric provides products by procuring a variety of parts and raw materials, andby using energy including water and electric
power and chemical substances. We areworking on reducing the adverse impact on theenvironment produced by these activities.

OUTPUT
Atmospheric environmental impact substanceCO2590,638 CO2-t/yearNOx 624 t/year
SOx
96 t/year

INPUT
Energy327,000kl/ year

INPUT

(Electric power: 58%, Fuel: 42%)Water
25,000 K.t/ year

OUTPUTOUTPUT

Wastewater
21,100 K.t/ year

Chemical substances
Released volume 315 t/year
Transfer volume 268 t/year(PRTR targeted substances)

INPUT

Facility/Research laboratories
laboratories
Facility/Research

Chemical substances handled
6,317 t/year(PRTR targeted substances)INPUT
OUTPUT
Industrial waste
10,739 t/year
Recycled volume24,382 t/year
Recycle ratio
69%

Raw materials
Copper174,000 t/year
Aluminum 284,000 t/year

77

7

07

Our Environmental Report

Reduction of Industrial Waste
and Zero-Emission Activities
Reduction Activities of Industrial Waste
We began activities to reduce outsourced industrial waste disposal in 1993. Since then we
have been continuously pursuing reduction activities, and consequently made great progress inrecycling and reduction of oil, plastic and alkali
wastes, sludge, wood and paper waste, andreduced outsorced industrial waste disposal.
In addition, we set up a medium term target of"reducing industrial waste by 30% over fiscal
2000 in fiscal 2005" in fiscal 2002. Based on
this target, plants, which are maufacturingbases, established their environmental purpose
and target, and are pursuing these activities.
We have already attained our target of reduction of outsourced industrial waste disposal by
34% over fiscal 2000 in fiscal 2003. This waspartly affected by a slowdown in operations dueto the sluggish economy. We will continue
reducing waste in the process of manufacturing
and recycling, ensuring that outsourced industrial waste disposal volume exceeds the target,
even after the recovery of operations.

■ Changes in Disposal of Outsourced Industrial Waste
（％）

(ton)

30000
Reduction ratio over fiscal 2000

0%
0

25000

-10

20000

-12%

-20

15000

-30

10000
-34%

-34%
-40

5000

0

1995

1996

1997

1998

2000

1999

2001

2002

-50
2003 (fiscal year)

Zero-Emission Activities
In fiscal 2001, as the first-step of zero-emission activities, Furukawa Electric formulated thedefinition of zero-emission activities, and established reduction targets for each plant, as
well as the entire company.
In fiscal 2002, while all the plants have acquired ISO14001 certification, they incorporate
zero-emission activities into the targets of their environmental management systems. As aresult of promotion of zero-emission activities, we have successfully reduced industrial waste
by 40% over fiscal 2000, in fiscal 2003. We intend to develop this across the board, using
the Chiba plant as a role model for the rest of the company,as its zero-emission activities
are the most advanced, in order to further pursue zero-emission activities.

■ Changes in Direct Landfill Disposal Volume
(ton)

（％）

7000
Reduction ratio over fiscal 2000

-0%
6000

0

-8%

5000

-29%
-40%

4000

-50

3000
2000
1000
0
2000

2001

2002

-100
2003 (fiscal year)

Definition of Zero-Emission Activities of Furukawa Electric
Activities to reduce the industrial waste commissioned to outsourced disposition that is transported from plants directly into landfill spots for
final disposition.

First-Step Target of Zero-Emission Activities
To reduce by fiscal 2005 the volume of industrial waste that is outsourced for final disposition by 50% over fiscal 2000.

08

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

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

Reduction of Organic Chlorine Compounds
and Reduction of Chemical Substances
Reduction of Organic Chlorine Compounds
In an effort to reduce the use of organic chlorine compounds, we,along with the company’s environmental principle and customers’
green procurement requirement, have been developing pollution-freecleansing techniques that are consistent with required product quality.
At the initial stage, we planned, in fiscal 2002, to completely eliminate
atmospheric emission of organic chlorine compounds.
Tetrachloroethylene and trichloroethylene were completely eliminatedin fiscal 2002 as planned. Although dichloromethane was still used at
two works at the beginning of fiscal 2003, we eliminated it at one of
the works in the first half of fiscal 2003 and at two out of three facilities of the other works within the closing of fiscal 2003. However,dichloromethane was still used at one facility for cleansing productswith special shapes and we have delayed complete elimination partly
because of the customers’ strict requirement of production operations.
We have postponed our elimination plan to fiscal 2004 and plan to
apply the acquired cleansing technologies, thereby achieving complete elimination of organic chlorine compounds.

■ Atmospheric Emission of Organic Chlorides
(ton)

250
Tetrachloroethylene
Trichloroethylene

200

Dichloromethane

150

100

50

0
1995

1996

1997

1998

1999

2000

2001

2003 (fiscal year)

2002

Reduction of Chemical Substances
In addtion to reducing organic chlorine compounds, we have long
been pursuing activities to reduce use and emission of ozone layer
depletion substances. We have greatly succeeded in reduction ofthese substances.
In fiscal 2003, we planned to reduce additional chemical substances, focusing on PRTR※ targeted substances with large emission volume. We have set a target of reducing four substancessuch as toluene, xylene, ethylbenzene and trimethylbenzene by
40% over fiscal 2000 in fiscal 2005 in the Medium-Term Plan forEnvironmental Preservation Activities, and pursuing reduction byshifting to water based paints, recovering volatile solvents and disposal by incineration. From fiscal 2004, we have again revised
our target to 54% reduction, due to changes in operations derivingfrom the move of part of the wrought copper division to China.

■ Handling, Release and Transfer Volume of PRTR Targeted Substances
Substance
No.

Name of substance(ton/year)

Handling
volumeReleasevolumeTransfer Neutralized
volumeVolume

191.7

0.0

3.6

8.0

7.2

0.1

0.4

25

Antimony and its compounds

40

Ethylbenzene

63

Xylene

362.3

22.4

8.8

202.8

67

Cresol

321.0

0.9

1.1

319.0

68

Chromium and trivalent chromium compounds

72.7

0.0

6.7

0.0

69

Hexavalent chromium compounds

6.7

0.0

0.0

0.0

108

Inorganic cyanide compounds

5.5

0.0

0.0

5.5

145

Dichloromethane

77.8

64.3

13.5

0.0

172

N,N-dimethyl formamide

69.3

0.7

0.2

68.5

197

Decabormo-diphenylether

143.9

0.0

10.1

0.0

※ : Pollutant Release and Transfer Law in Japan.

224

Trimethylbenzene

21.9

19.1

1.1

0.2

■ Changes in Released Volume of Chemical Substances

227

Toluene

591.1

199.3

205.5

66.5

230

Lead and its compounds

3,166.9

0.0

0.0

0.0

231

Nickel

9.6

0.0

0.0

0.0

232

Nickel compounds

5.5

0.0

0.1

0.0

253

Hydrazine

15.7

0.0

0.0

15.7

266

Phenol

193.2

0.4

0.3

192.5

272

Bis (2-ethylhexyl) phthalate

11.9

0.0

0.0

0.0

283

Hydrogen fluoride and its water-soluble salts

16.4

0.1

13.1

2.2

308

Polyoxyethylene-octylphenylether

1.6

0.0

1.6

0.0

311

Manganese and its compounds

1,116.7

0.0

1.4

0.0

312

Phthalic anhydride

3.8

0.0

0.0

3.4

Release volume
(ton)
0%

（％）

500

0
-18%

Reduction ratio over fiscal 2000

-20

400

-35%

-38%

300

-40

200

-60

-80

100

-100

0
2000

0.0

2001

2002

2003 (fiscal year)

Substances targeted for
reduction
Four substances such as
toluene, xylene, ethylbenzene and trimethylbenzene※Targeting substances of handling volume of above 1 ton at plants (more than 0.5 ton for specific substances)09

Our Environmental Report

Prevention of Global Warming and Energy Conservat
Prevention of Global Warming
In response to the ratification of the Kyoto
Protocol by the Japanese Government in June
2002, Furukawa Electric has established medium to long term targets for reduction of greenhouse gases, which has been authorized by theCentral Committee for Environmental
Management. Based on these medium to longterm reduction targets, each business division
has developed its own specific reduction plan
after fiscal 2003, and begun reduction activities.
The graphs here show changes in the emissionof greenhouse gases (CO 2 basis) after fiscal
1990, indicating that the emission in fiscal 2003
was 94% over fiscal 1990. Emission volume
after fiscal 2000 reduced due to declines in production volume. We will further strengthen our
activities whereby emission is reduced even uponrecovery of production volume.

■ Changes in Emission of Greenhouse Gases(CO2-1000 t)

（％）

1000
Ratio over fiscal 1990

104%

100%

98%

800

99%

102%
96%

100%
93%

95%

94%

100

600

75

400

50

200

25

0
1995

1990

1996

1997

1998

1999

2000

2001

2002

0
2003 (fiscal year)

Energy Conservation Activities
1

Progress of Energy Conservation Activities, Organization and Targets

In view of the revision of the Law Concerning the Rational Use ofEnergy (Energy Conservation Law) in 1993, a Committee forCompany Wide Promotion of Energy Conservation was established in
April 1994, thus initiating company-wide activities with the participation of all works, including those that are not designated as an"Energy Management Factory". In 1997 the company wide energy■ Changes in EIPUPs of Eight Works(1000KL)（％）

600
Long-term target

100%
500

99.2%

99%

Ratio over fiscal 1995

98.9%

100
83.9%

400

74.9%

77%
72.8%

77.9%

80

300

60

200

40

conservation index was changed to energy intensity per unit product(EIPUP) specified in the Energy Conservation Law, and the target was
set to "1% reduction over the previous year in terms of EIPUP".
In fiscal 2003, the production volume of two of the eight works thatare designated as "Class 1 Energy Management Factories" fell to arange from 74 to 91% total production,and the resulting EIPUP index
registered levels between 4.6 and 17.2% .
For Energy Conservation, we improved EIPUP, focusing on "enhancing
efficiency" and "reducing waste". In spite of the activities, the weighted EIPUP average of the eight works worsened by 1.2% over fiscal
2002. This value corresponds to 77.9% over fiscal 1995 in terms of
the previous index, representing a 2.7% improvement in yearly average.
2

Major items of energy conservation include: regenerative burner ofmelting furnace, inverter control of cooling water pumps, dispersion ofboilers, conservation oriented operation of air conditioners, energy
saving of lighting, improvement in gas emission of scrubber, suspension of use or sealing of facilities, and improvement in yield. These
measures resulted in energy conservation (crude oil basis) of
5,310kl/year.
3

100

20

0
1995

10

1996

1997

1998

1999

2000

2001

2002

0
2003 (fiscal year)

Case Examples of Energy Conservation Activities in Fiscal 2003

Energy Conservation Activities in the Future

We will promote various energy conservation activities including
development of management standards that are in compliance with
the Energy Conservation Law, thereby striving to reduce the EIPUP by
1% or more on average annually.

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

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

ion
Prevention of Global Warming and Energy Conservation - Case Examples

Environmental Improvement and Energy Conservation
Through Changing Fuels to LNG in the Nikko Sheet Plant
Nikko Works (Sheet Plant) has long used grade C crude oil as fuelfor the casting process and treated SOx in emission gases by smokeextraction desulphurization equipment. The equipment has deteriorated significantly as a result of use over the long period and is inneed of renewal. Meanwhile, we have received complaints fromneighboring residents about odor, smoke and soot deriving fromextracted smoke from the equipment.
Therefore, rather than simply renewing the equipment, upon discussion, we have decided to carry out measures which meet the following conditions in order to solve the problem fundamentally.
1

2

3

Regenerative burnerEmit clean gases to meet environmental conditions
Control CO2 emission and reduce running costs
through energy saving.
Implement measures with minimum CAPEX

Consequently, we have decided to adopt LNG as fuel, which is pollution-free and is significantly effective in CO2 reduction, and regenerative as a burner for incineration, which is more effective for energy saving.
Construction for replacing fuel and incineration equipment commenced in fiscal 2003 and is scheduled to be completed in fiscal
2005.

Smoke-extraction desulphurization equipment

Affiliating Hydraulic Power Generation Station in the Nikko District
Furukawa Nikko Power Generation Inc. is a hydraulic power generation company that previously belonged to Furukawa Co., Ltd.
one of Furukawa group companies but was transferred to be anaffiliated company of Furukawa Electric in September 2003.
Construction of the power station began in 1906, and the station
provided electricity to Nikko works (Kiyotaki District) and Ashio
District that had the Ashio copper mine, contributing to development of the region. With transfer of the business to Furukawa
Electric, the station now also supplies power to the Nikko
Works(Sheet Plant).
Furukawa Nikko Power Generation Inc. maintains four hydraulicpower stations that use natural water falls including Kegon-notaki water fall that runs down from Lake Chuzenji and other surrounding water falls as water supply sources. By utilizing this feature, there is no concern of water volume fluctuation, thus
enabling efficient and stable power generation. The four power
stations are located from upstream to downstream in sequence,using the water supply efficiently.
The stations that generate power using natural forces, do not emit
any greenhouse gases. Furukawa Electric intends to make themost of clean energy resources and maintain power generating
facilities located in the national park without harming the environment.

11

Our Environmental Report

Green Activities and Green Logistics
We are pursuing environmental preservation activities by promoting "green procurement" in which we purchase environmentlly friendly parts and materials together with the cooperation of customers.

Green Activities
Furukawa Electric has been promoting green procurement since
enforcement of the Green Purchasing Law in April 2001. From
August 2002, customer’s demands to cooperate on green procurement
suddenly increased. Therefore, we took a position to respond to thecustomer’s demands on product inspections and internal audits as themost important objective.

● Responding to Customers’ Demands for Green Activities
It has become clearer that Japanese customers require us to correspond with the EU
regulations which enforce total exclusion of toxic substances in products. As
Furukawa Electric provides a wide range of parts and materials used in a variety ofindustries, it has not been so easy to have a comprehensive labeling of productgreenness, in regard to substances that have an adverse impact on the environment(such as toxic chemical substances), so that we had initially responded to customer’s
demands individually.
Since fiscal 2003, we have developed a company wide environmental information
management system in order to respond to customers across the board comprehensively. Divisions of the entire company such as materials procurement, manufacturingand marketing divisions promote activities and expand the range of activities beyond
the company, to customers and suppliers. The environmental Promotion division of
Furukawa Electric responded to customers who are related to several business divisions and bases. The following are case examples of responses to customers on
green activities in fiscal 2003 .
1

For Fujitsu, 8 divisions made an agreement on submission of a Non-Inclusion
Guarantee Statement corresponding to the EU regulations and promotion in activities
for total elimination of hazardous chemical substances.

2

For Sony, corresponding to Sony Green Partner Environmental Quality Approval, an
environmental audit was carried out in 10 plants and 2 affiliated companies of the 7divisions which supply products to Sony, and an agreement was concluded.

3

We have responded to many customer’s demands on green procurement inspections.

Yokohama R&D Laboratories Analysis Technology Center
Analysis technology center supports the business activities of Furukawa Electricgroup with evaluation technologies. The center has a long history and has highanalysis technologies fostered through tireless efforts for improving them. The
center evaluates even the smallest amount of contamination of environmental
impact substances in the Furukawa Electric products precisely. It also applies
the analysis technology for developing environmentally friendly products.

Green procurement /development of ECO products・ Designing products using substitute environmentally friendly substances

・ Complying environment usage with required
specifications

・ Certifying non-inclusion of hazardous chemi-

12

Development evaluation method● Promotion of Green Activities
1

Promotion of green procurement for "general commodities"
In the category of "general commodities" of non-manufacturing-oriented materials
such as office supplies, in order to utilize a new purchasing system aiming for efficient procurement, we have registered products that meet green procurement
requirements in the master database system.

2

Promotion of green procurement for "purchased products"
In the category of "purchased products" which are used as materials in the processof manufacturing products, we have developed regulations and guidelines to evaluate commodities. We have also established a support system for environmental
investigation on green procurement. Through these actions, we could standardize
investigation and compile a database, realizing unbiased and efficient inspection.

Green Logistcs
We are also pursuing rationalization of logistics while securing reduction of environmental impact and energy conservation.

● Reduction of Packaging Material
We reduce the use of packaging paper and wood by promoting package-free ofdrum-wound products and bundled products.

● Promotion of Reusable Drum Program
TEPCO LOGISTICS Co., LTD., an affiliated company of Tokyo Electric Power
Company (TEPCO) has established an environment-conscious recycling system fordrums used in the delivery of aerial power distribution wire and cable. In this system,
conventional wooden drums are replaced by plastic drums made of recycled sheathing material of retrieved wire. We support their rental business of reused drums thatcomprises the recycling system, in terms of developing the recycled material, as well
as operational aspects including manufacture, delivery, retrieval, repair and maintenance of drums.

● Recycling of Disposed Drums
680 tons of retrieved wooden drums and skids in the distribution centers are disposed without being reused. We have realized 99.85% recycling of such unusedmaterials, by producing fuel-use wood chips and bedding materials for cattle, we
are aiming for effective utilization of limited resources.

● Shared Transportation and Delivery
We have participated in the project introduced by the Japanese Electric Wire &Cable Makers’ association (JCMA) to support environmental preservation. We haveparticipated in a joint transportation (delivery) program of cable to large scale construction sites in the metropolitan areas, aiming to reduce the number of delivery
vehicles. We also participate in the joint transportation program using ships directedto Hokkaido, thus being engaged in contributing to a modal shift to coastal shippingtransportation, as well as energy conservation.

cals in ECO products● Reduction in NOx Emission Through Improvement of Loading Efficiency

We are examining prior processing methods todetermine the most suitable method for eachspecimen in order to quantify data precisely.

In order to improve loading efficiency, we have promoted reducing the number ofdelivery vehicles, by expanding mixed loading and the use of large-sized vehicles,
achieving 4% reduction in NOx emission volume related to product delivery vehicles
in the first half of fiscal 2001. Our target is 6% reduction in NOx emission in fiscal
2004.

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

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

Eco-Design Activities
Recycling Technologies
In the material recycling area, we are not only developing various recycling technologies but also developing and commercializing products using disposed plastics, aiming at recycling of disposed plastics using our technologies built up through the development of polymer products.

Electric wireand cable

Production

Aluminum canTroughTroughconduitTroughconduit
conduitRecycling Technology Aiming for a
Resource-Recycling Society

Use

Collection ofused products

Thermal Recycling
Recycled
aluminum

RecycleRecycled plastic

Natural resources

Dismantling andgrinding

Material Recycling

Copper/Aluminum
Oil (Plastic)
RubberFlow of Recycling

Dismantling and grinding

Sorting
Recycled
copper1

Reuse for electric wire andcable, and others

Recycling System for Electric Wires and Cables

We established a recycling system in which used power and communication cables are retrieved from customers and almost 100% of copper and aluminum used in cables is recycled. Covering materials arealso recycled as cables, recycled plastics or fuel.

Separation
2

National Project for Development of Recycling Technology

Material recycling technology of cross-linked polyethylene was put topractical use under the support of the New Energy and Industrial
Technology Development Organization (NEDO).
It has been difficult to recycle cross-linked polyethylene but we developed the recycling technology in which cross-linked polyethylene isplasticized with the appropriate thermal treatment and shearing. It isthen reused for electric wire insular as recycled pellets using a similar
molding process as polyethylene before the cross-linkage.

Disposed cross-linked polyethylene

Recycled pellet
3

Thermoplastic treatment equipment

LCA Assessment

Furukawa Electric implements life cycle assessment (LCA) for electric
wires and cables, and metal materials and in the future will also
implement LCA for other products.
13

Our Environmental Report
Environmentally Friendly Products
Furukawa Electric recognizes that "the 21st century is the century of theenvironment" and is actively working on development of environmentallyfriendly products and technologies by consultation and collaboration withcustomers.
We develop a range of commercially viable products under the name of"environmentally friendly products (environmental logo: ECOLINK)" that, atevery stage, from materials selection, manufacture, use, distribution anddisposal, will be safe and of low environmental impact.
In addition, we have established a company-wide organization, Committee
for Development of Environmentally
Friendly Products, in which companywide strategies are formulated to promote the development of products andtechnologies.

1 Products for Reduction of Environmental Impact

2 Products for Realization of Recycle-Oriented Society

We are developing and commercializing products that do not create environmental problems when they are in use and do not discharge any toxic
by-products or leave residual waste products during biodegradation,
incineration treatment or landfill disposal after they are discarded.

We are developing and commercializing recycling-conscious products
which, reuse industrial waste materials, use recyclable materials, reduce thevariety of materials, reduce the number of parts and are easily degradable.
Use

Use

●ECO Electrical Wire (ECO-ACE.ECOBEAMEX)Home appliances, Power distribution
and Communication

Halogen-free, lead-free●Halogen-free Wire Harness

Automobile

Halogen-free, lead-free●Zero-Halogen Optical Fiber Cable

Communication

Halogen-free, lead-free●Lead-Free Plating for Electronic Components

Electronic components

Lead-free●Protective Casing Using Recycled Plastics●Biodegradable Resin Foam (BIO ACE)

Packaging material

Biodegradability●Weed Barrier Sheet

Indoor electrical wire laying

Halogen-free, lead-free● Insulated Wire and Cable Using Recycled PVC●Indoor Cable-Protection Conduit Made of

Flame-Retardant Resin (ECO-PLAFLEKY)

FeatureProduct

Product

These wires and cables do not use any toxic
substances such as PVC or lead, permitting
recycling and disposal by incineration. ECO
ACE, general cables for indoor electricity
supply, ECO-BEAMX, wires for electronics
and electric equipment, ECO wires for automobiles and highly flame retardant opticalcables are already in practical use.

●Insulated Wire and Cable Using Recycled PVC

Electrical wire

Recycling●Recycled Aluminum Can StockCan

Recycling

Electrical wire Laying

Reuse of materials/Lightweight

Sheet

Reuse of materials●Underground Cable Duct Made of Cable Waste(KOHTA KUN.KOICHI KUN.Green Trough)Most of the copper and aluminum conductors
used for electric power cables and communication
cables are retrieved and recycled.
Plastic insulators such as polyvinylchloride andpolyethylene resin are also recycled as insulated
electrical wire and cable sheath.
We are seeking to use recycled cross-linked polyethylene, which was previously disposed of only
by incineration.

● ECO Electrical Wire

Zero-Halogen Oprical Fiber Cable

ECOBEAMEX● Lead-Free Plating for Electronic Components
We have eliminated the use of lead by shiftingfrom Sn-Pb plating, which was used as electrode-use solder for ICs, capacitors, connectors, printed circuit boards, etc., to Sn-Bi plating.
We promote measures to eliminate the use oflead from customers’ mounting processes.

● Biodegradable Resin Foam (BIO ACE)
BIO ACE is broken down into water and CO2
by the action of microorganisms in the environment. CO2, an environmentally friendly substance, is used as a foaming agent and the
product is lightweight, has excellent machinability and buffering feature (foam expansion
ratio: 10-15X). Combustion heat of BIO ACE
is only half of that of polyethylene and thus less damaging during incineration.

14

Electrical Cable● KOHTA KUN
KOHTA KUN is a synthetic resin cable duct withmultiple bores that use recycled plastics. The
product is light in weight and high in strength,
most suitable for underground laying. This product contributes to energy conservation during construction and shortens construction periods. The
product acquired the ECO certification mark.

Halogen Free Wire Harness

FeatureCommunication Cable● Green TroughThe product is made of plastic waste from electrical wires and cables with reinforcing materials. Compared to conventional concrete
troughs, this product has higher strength andlighter weight (around a quarter of the weightof a conventional trough), permitting easytransportation and construction.

● Protective Casing Using Recycled Plastics

Examples where
where green
green troughtroughExamplesExamples
where
green
troughis usedused asas railway
railway cable
cable
is
is
used
as
railway
cable
troughtroughtroughThis is the product developed in cooperation with NTT, in which retrieved opticalcables are recycled. The product contributes to energy saving for construction ofshared trenches of electrical wires.

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

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

3 Products for Prevention of Global Warming

4 Products for Prevention of Ozone Layer Depletion

We are developing and commercializing products that contribute toenergy conservation such as products of lightweight and higher energyefficiency, and products and systems in which clean energy is commercially viable.

We develop and commercialize devices and processes that do not use
CFCs, together with products compatible with CFC substitutes.

Product

Use

Feature●High-Reflectivity Foamed sheet (MCPET)

Lighting

Energy saving●Rainwater Recycling System (HYDROSTAFF)

Rainwater recycling

Resource saving●Micro Heat Pipe

Electronic equipment

Energy conservation●Solar Photovoltaic System

Electrical power

Clean energy●Partial-stripe Precious Metal for Electric Components

Electronic components Resource and energy saving●Aluminum alloys for Vehicles

Automobiles

Lightweight and energy saving● High-Reflectivity Foamed sheet (MCPET)MCPET has excellent light reflectivity resulting in extremely bright sheet surface.
this product has a total reflection rate of 99%, diffused reflection rate of 96%
and reflects light with uniform optical wavelengths. It is effective to enhancebrightness or conserve energy and provides a solution to unbalanced brightness.

Construction site of the passageway to Tokyo Opera City
(New Keio Line Hatsudai Station)

Product

Use

FeatureHome appliances,automobiles

Compatibility with
CFC substitutes

Home appliances

Compatibility with
CFC substitutes●Nitrogen-Atmosphere Reflow Oven (SALAMANDER)

Electronic equipment

Elimination of CFCs

●Functional Resin-Coated Aluminum sheets (FUSCOAT)

Electronic equipment

High lubrication,
elimination of cleansing●CFC-Substitutes Compatible Magnet Wire (HPWR II )●Copper Tube for Use with CFC-Substitutes(Furukawa Multi-Grooved Tube (FMGT),
Furukawa Super Clean Tube)● CFC-Substitutes Compatible Magnet Wire (HPWR II)
These heat- and freeze-resistantmagnet wires are compatible foruse with refrigerating systems
using CFC-substitute refrigerants(HFC-R407C, R410A andR134a). They are used for thecompressor motors of air-conditioning and refrigerating systems.

● Copper Tube for Use with CFC-Substitutes(Furukawa Multi-Grooved Tube (FMGT),
Furukawa Super Clean Tube)● Rainwater Recycling System (HYDROSTAFF)The system aims at making effective use of sunshine and rainwater, which are
gifts of nature. It serves to provide an emergency reservoir against disasters andto suppress rainwater flooding in watershed areas.

These are copper tubes compatible with
CFC-substitute refrigerants to reduce thedepletion of the ozone layer. These tubes
reduced oil residuals in the tube’s innersurface and have internal grooves toimprove heat exchange performance.

● Nitrogen-Atmosphere Reflow Oven (SALAMANDER)
This reflow oven carries out the reflow soldering process during
the mounting of electronic components in a nitrogen atmosphere.
This system eliminates the need to cleanse completed circuitboards, obviating the use of CFCs.

● Micro Heat Pipe

Furukawa Electric’s micro heat pipe is aheat dissipation/cooling device for electronic equipment such as computers. This
helps reduce the size of equipment andsaves energy.

● FUSCOAT● Partial-stripe Precious Metal for Electric
Components
Precious metal plating strips with highconnection reliability are used for electrical contact materials or connectors.
Furukawa Electric manufactures and sells
precious metal stripe plating strips that
reduce use of precious metals, keeping in
mind the impact on the environment.

These functional resin coatedaluminum sheets provide
enhanced formability, corrosion
resistance, scuff- and fingerprintresistance, resistance to chemicals, electrical conductivity, easeof printing, and anti-bacterial
and anti-mold properties. They
are also self-lubricating, so that
disposal of the lubricants andcleansers formerly used in the stamping process are eliminated.

15

Our Environmental Report

Environmental Risk Management
Countermeasures Regarding Pollution of Soil and Groundwater
We have been conducting soil and groundwater pollution investigations at Facilities thathave a history of use of toxic substances. We
promptly take actions against the pollution ofsoil and groundwater that are found during
investigations, to secure the health and safetyof the local community.
We also report to the administration about theenvironmental conditions and measures to be
adopted to clean the environment and disclose
the information to local residents, related institutions and media according to the content.
In fiscal 2003, we have formulated "SoilEnvironmental Risk Management
Guidelines" in order to restrict and thoroughly control handling of specific toxic substances that cause pollution of soil and groundwater, and we are carrying out activities
according to these guidelines.

Outline of Soil Environment Risk Management Guidelines
1) We shall restrict handling of specific toxic substances specified in Soil Contamination Countermeasures Law.
Construction of new storage facilities and piping shall be positioned above the ground in principle when they are
newly installed. Underground construction shall be prohibited.

2) We shall thoroughly manage use, storage and disposal of hazardous substances and seek to shift to substitute substances.
(1) For specific hazardous substances which are currently used, spots with possible risk of leakage of these hazardous substances into soil and groundwater shall be checked and recorded.
(2) We shall review processes where hazardous substances are used and seek to reduce usage volume of such substances. We shall also shift to substitute substances.

3) We shall implement investigation of the usage record of specific hazardous substances at all Plants and Facilities.
(1) We shall investigate the record of usage of specific hazardous substances tracking back to around 30 years ago
and shall continue monitoring the usage of hazardous substances.
(2) The record of usage of specific hazardous substances shall be investigated according to written materials andshall record the periods and volume of purchase, use, storage, and disposal. The locations where each of theseprocesses is carried out shall be recorded on a diagram or others and these records shall be stored.

Situation and Countermeasures Regarding Pollution of Soil and Groundwater
1

Situation and Countermeasures at Furukawa Electric---- Nikko Works

It was discovered that the soil on the premises of the works and company owned peripheral areas was contaminated with selenium,
arsenic, lead and cadmium; and the groundwater on the Works'
premises was contaminated with selenium, arsenic and lead.
Investigations, however, found that groundwater, in areas near theborder of the premises and company owned peripheral areas, was notpolluted.
The copper refinery business which apparently caused this heavy
metal contamination was discontinued in 1988 and thus there is no
possibility of new pollution.
With respect to purification of the soil in the company-owned peripheral areas, we held a briefing session in March 2003 for local residents about the countermeasures adopted. After installation work for
purification of the facilities was carried out in April and May, we started the decontamination work in June. We applied the method inwhich the polluted soil is transported out of the premises and iscleansed.
Cleansing work for the entire company owned areas is scheduled tobe completed in 2007.
2

Situation and Countermeasures at Affiliated Companies of
Furukawa Electric

Furukawa Electric advises its affiliated companies to respond appropriately to local residents, the government administration and otherparties involved.
Affiliated companies of Furukawa Electric that were found to havewater and soil pollution in fiscal 2003 and their contamination situations are as follows.
16① TOHTOKU ELECTRIC (Disclosure: December 2003)
Contaminant

PCB/dioxin

Location

Former Nagato Works(Nagato Town, Chiisagata County, Nagano)Situation

Soil and ground water pollution on the premises of the company.

Countermeasures

Drilling and storage of contaminated soil, monitoring of groundwater② KYOWA ELECTRIC WIRE (Disclosure: January 2004)
Contaminant

Pb/cyanogens/B/F/dichloromethane

Location

Former Osaka Works (Neyagawa City, Osaka)

Situation

Soil and ground water pollution on the premises of the company

Countermeasures

Pumping and purifying groundwater③ FURUKAWA COLOR ALMINUM (Disclosure: March 2004)
Contaminant

Cr (hexavalent)/F

Location

Main Works (Utsunomiya City, Tochigi)

Situation

Soil pollution on the premises of the company, groundwater in thecompany owned areas and near-border areas

Countermeasures

Pumping and purifying groundwater

Furukawa Electric’s Safety, Environment and Quality Control
Department and relevant divisions support affiliated companies so thatthey can take actions against contamination promptly, from planningof pollution investigation to developing countermeasures.

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

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

Storage of PCB
Concerning PCB, which had been used as insulation oil for electricalequipment, transformers, electrical capacitors and stabilizers for fluorescent light, volume is controlled and managed at each works of
Furukawa Electric.
The table here shows the status of use and storage of PCB at each
works and it remained unchanged from fiscal 2002.

■ PCB Storage Status

No.

Name of works
Chiba Works(Processed)

1

Unit: Number of equipment

Removed andstoredIn use

86

Total
86

0

Chiba Works(Unprocessed)

36

0

36

2

Nikko Works (Kiyotaki District)

182

140

322

3

Nikko Works (Sheet Plant)

7

44

51

4

Hiratsuka Works

40

3

43

5

Oyama Works

14

36

50

6

Mie Works

53

73

126

7

Osaka Works

55

11

66

8

Fukui Works

0

0

0

9

Shiga Works

9

0

9

10 Kambara Works

0

3

3

11 Shinagawa Works(Stabilizer only)

12 Yokohama R&D Laboratories
Total

0 (Stabilizer only)

9

0

9

491

310

801

PCB Storage Status

Compliance with Laws and Regulations
We are regularly confirming laws and regulations to be observed,
making efforts for compliance by patrolling sites to check implementation status.
We keep track of revisions of laws and regulations, by closely following the latest information in government gazettes. There was one caseof infringement of prefectural ordinances at Hiratsuka Works, and we
immediately remedied the situation.

Ammonia Gas Treatment at Hiratsuka Works
Ammonia gas concentration at the emission outlet for someplastics manufacturing equipment is restricted by "Ordinances
concerning safety of living environment of Kanagawa prefecture". We regularly measured gas concentration at the outlet
and found that gas concentration sometimes exceeded the limits, depending on some manufacturing conditions. Upon
reporting the case to the administration, we were advised to
improve and we devised measures to improve the situation.
We have decided to reduce gas concentration by installingammonia gas treatment equipment and submitted the"Proposals of Ammonia Gas Treatment" to the administration.
The proposal was accepted and thus we commenced construction of gas treatment equipment in October 2003. It is scheduled to be completed in the first half of 2004.
Furthermore, we measured ammonia gas concentration levels
at near-boundary locations of the works' premises. No tracesof ammonia were detected near the boundary and no impact
to the surrounding areas of the works was found.

Environmental patrol

17

Our Environmental Report

Environmental Preservation Performance Indicators
Below, the data for atmospheric emissions and wastewater quality including NOx, SOx and soot for atmospheric emissions,and pH, COD (or BOD), SS and n-h (mineral oil) for wastewater quality; of six Works that are registered as specialized
plants are presented.
■ Atmospheric Indicators
Item

Equipment

Legal Standards

Self-imposed Standards

Average Value

Maximum Value

NOx (Nm3/Hr)

BoilerMelting furnace

0.45
1.77

82 (ppm)
63 (ppm)

50 (ppm)
24 (ppm)

66 (ppm)
25 (ppm)

Soot (g/Nm3)

BoilerMelting furnace

0.05
0.39

0.010
0.065

0.004
0.020

0.009
0.026

NOx (ppm)

BoilerMelting furnace

180
180

140
140

54
9

54
9

SOx (Nm3/Hr)

BoilerMelting furnace

0.6
41.6

0.5
33.3

0
0

0
0

Soot (g/Nm3)

BoilerMelting furnace

0.3
0.3

0.24
0.24

＜0.005＜0.003＜0.005＜0.003NOx (ppm)

BoilerMelting furnace
Dryer furnace

180
200
300

180
200
250

81
32
28

110
44
29

SOx (K value)

BoilerMelting furnace
Dryer furnace

17.5
17.5
17.5

17.5
17.5
17.5

0.51
1.2
0.18

0.62
1.7
0.18

Soot (g/Nm3)

BoilerMelting furnace
Dryer furnace

0.3
0.2
0.5

0.3
0.2
0.2

0.003
0.003
0.002

0.006
0.012
0.016

NOx (ppm)

BoilerMelting furnace
Heating furnace

230
180
200

230
150
160

51
46
74

52
47
89

SOx (K value)

BoilerMelting furnace
Heating furnace

17.5
17.5
17.5

14.5
14.5
14.5

0.03
1.10
0.10

0.03
2.00
0.11

Soot (g/Nm3)

BoilerMelting furnace
Heating furnace

0.25
0.30
0.25

0.25
0.25
0.25

0.005
0.007
0.009

0.006
0.012
0.016

NOx (ppm)

BoilerMelting furnace
Heating furnace

150
200
170

120
160
144

2.0
2.0
2.0

2.0
2.0
2.0

SOx (K value)

BoilerMelting furnace
Heating furnace

1.17
1.17
1.17

1.17
1.17
1.17

0
0
0

0
0
0

Soot (g/Nm3)

BoilerMelting furnace
Heating furnace

0.10
0.20
0.25

0.08
0.16
0.20

0.002
0.001
0.001

0.002
0.002
0.001

NOx (ppm)

BoilerMelting furnace
Heating furnace
Dryer furnace

120
120
120
110

110
110
110
100

74
74
31
30

87
85
50
50

SOx (ppm)

BoilerMelting furnace

380
160

50
130

5
23

5
76

Soot (g/Nm3)

BoilerMelting furnace
Heating furnace
Dryer furnace

0.10
0.20
0.12
0.12

0.05
0.16
0.10
0.08

0.005
0.019
0.005
0.007

0.006
0.047
0.006
0.009

NOx (ppm)

BoilerMelting furnace
Heating furnace

150
180
130

180
120
120

70
115
56

78
155
65

SOx (K value)

BoilerMelting furnace
Heating furnace

7
7
7

1
1
1

0.03
0.08
0.07

0.03
0.10
0.07

Soot (g/Nm3)

BoilerMelting furnace
Heating furnace

0.3
0.2
0.2

0.1
0.1
0.1

0.004
0.021
0.003

0.006
0.035
0.003

Chiba Works

Mie Works

Kiyotaki District

Nikko Works

Sheet Plant

Osaka Works

Fukui Works

Oyama Works

18

Message
Summary of Business
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Medium-Term Plan for Environmental Preservation Activities 2005

Our Environmental ReportSocial Performance Report
Environmental Activities of Affiliated Companies
Progress in Environmental Management■ Water Quality Indicators
Item

Unit

pH

Chiba Works

Legal Standards

Self imposed Standards

Average Value

Maximum Value

5.0〜9.0

5.0〜9.0

7.9

8.2

COD

(mg/l)

15

15

5.5

9.3

SS

(mg/l)

20

20

4.4

9.2

n-h (mineral oil)

(mg/l)

2

2

0.2

0.2

5.8〜8.6

6.5〜8.5

7.4

7.8

pH
BOD

(mg/l)

10

4

2.0

9.0

SS

(mg/l)

25

6

0.9

1.9

n-h (mineral oil)

(mg/l)

1

0.7

0.1

0.3

5.8〜8.6

6.0〜8.5

7.4

7.8

Mie Works

pH

Kiyotaki District

Nikko Works

BOD(mg/l)

25

16

3.4

5.1

SS

(mg/l)

50

20

1.4

4.8

n-h (mineral oil)

(mg/l)

5

0.5

0.2

0.2

5.8〜8.6

6.5〜8.5

7.2

7.6

pH

Sheet Plant

BOD(mg/l)

25

10

1.1

1.6

SS

(mg/l)

50

25

2.8

9.5

n-h (mineral oil)

(mg/l)

5

2.5

＜1

＜1

5.7〜8.7

5.7〜8.7

7.6

7.8

pH
BOD

(mg/l)

300

10

2.5

3.5

SS

(mg/l)

300

50

12

28

n-h (mineral oil)

(mg/l)

5

2

1.4

2.0

5.0〜9.0

5.5〜8.8

7.5

8.1

Osaka WorkspH
COD(mg/l)

600

250

42

118

SS

(mg/l)

600

250

29

89

n-h (mineral oil)

(mg/l)

5

4.5

0.5

1.2

5.8〜8.6

6.0〜8.0

7.3

7.7

Fukui WorkspH

Oyama Works

BOD(mg/l)

25

20

3.0

4.9

SS

(mg/l)

50

30

11

17

n-h (mineral oil)

(mg/l)

5

2

＜0.5

＜0.5

19

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

Our Environmental Report

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

Environmental Accounting
We compiled 'environmental preservation costs', "economic benefits associated with environmental preservation measures" and"physical benefits associated with environmental preservation measures" for fiscal 2003 to grasp the results of environmental
costs and benefits quantitatively. The data is collected in conformity with the environmental accounting guidelines published by
the Ministry of the Environment. (Please see the other page for environmental accounting of our affiliated companies.)
Environmental preservation costs in fiscal 2003 were: expenses of 6.2 billion yen and CAPEX of 600 million yen. Economic
benefits were 400 million yen. Expenses increased by 1.5 billion yen from fiscal 2003, due to increases in soil pollution treatment costs and development costs for environmentally friendly products.
Scope of data collection: All the works of Furukawa Electric

Period of data collection: From April 1, 2003 to March 31, 2004

■ Environmental Preservation Costs

Unit: million yen

Category(1) Business area costs

Pollution prevention, global environmental preservation, resource recycling, etc.

(2) Upstream/downstream costs

2,648

46

Retrieval and recycling of containers, packaging, drums, etc.

429

-100

(3) Administration costs

Establishment, maintenance for pro-environmental management systems;
maintenance for environmental preservation, measurement of environmental impact

598

61

(4) Research and development costs

R&D of environmentally friendly products, research in substitutes for toxic substances,
R&D of environmental impact reduction in manufacturing processes, etc.

1,503

616

(5) Social activity costs

Disclosure of information, greening, etc.

145(6) Environmental remediation costs

Assessment for environmental impact, investigationand measures for soil and groundwater pollution, etc.

1,046

857

6,238

1,485

AmountChange over theprevious year

Total

■ Investment and Research Costs
Investment and Research Costs
Environment-related investment
Total investment costs
Total research costs

Unit: million yen

Change over theprevious year

Amount■ Economic Benefits Associatedwith Environmental Preservation Activities
Content

Unit: million yen

649

-157

11,600-300(1) Revenues gained by recycling-2,300(2) Reduction in waste disposal costs

26

148

(3) Reduction in energy expenses

175

-339

(4) Reduction in water purchase costs

29

-36

372

-210

11,900Total■ Physical Benefits Associated with Environmental Preservation Activities

20

Change over theprevious year

AmountMajor Contents of Activities

Reduced amount

Discharged amount of environmentally harmful materials

Unit

Impact on theenvironment(Change over the previous year )Industrial waste (excluding waste from recycling)ton

10,739-82

Energy consumed (crude oil basis)KL

327,000-1,645

Water consumed

K.ton

25,0002,700

Emission of volatile organic chemical compounds

ton

67

34

590,638

6,394

CO2 emission

CO2-tonSOx emission

ton

96

-4

NOx emission

ton

624

363

Soot emission

ton

44

16

142

17

Social Performance Report

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

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

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

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

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

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

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

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

Cleaning activities near Kambara Works

Cleaning
activities near
Shinagawa
Works
Exhibit at Eco-Fair Ichihara

We invite primary school students to visit the works during the month of environmental preservation
21

Social Performance Report

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

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

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

14
12
10
8
6
4
2
0

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

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

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

3. "Safety and health education for all workers"

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

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

● Safety Education

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

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

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

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

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

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

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

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

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

● Placement, Evaluation and Job Conditions

Personnel Affairs
Investigation Chart

New University Graduate Recruits

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

Holiday Accumulation

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

Maternity/Paternity Leave

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

Nursing Care Leave
Retirement Seminar

Follow-up Education Plan

Step-up Interview System

Rotation/Temporary Transfer to Domestic or Overseas Affiliates

Training for

Language Education

SeminarLong Distance Education Course

Incentives System for Acquisition of Qualification

Healthcare

Information Literacy Education Program

Business Promotion Course

Raw Material Trend Lecture

Safety and Health

Promotion for Production Efficiency

Quality Auditor Seminar
SQC Basic

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

Section Managers

Training for
Basic Level
Intellectual
Properties
Patent Search
Practical Training

Resource System
Interview System

Educational Courses forTraining for Intermediate

Refresh Holiday

Training for Top Level

Flexible Working Hours

Young Employee Work Shop

Various systems

Level Intellectual Properties

New Recruit
Group Education ProgramIntellectual Properties

Mid level employees
Training

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

Training for
key employees

Mid-Level

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

Training for
managers

Collaboration with Human

Training

Department Support

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

Self-enlightenment

Practical Training by

Training by Position

Key Employees

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

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

23

Social Performance Report

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

Nikko Workss

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

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

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

Looking forwards to reform environmental
awareness of each employee

Manager of Nikko Works

Toshihisa Tagashira24

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

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

Nikko Works

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

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

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

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

Realizing environmental preservation
rooted in local community

Manager of Hiratsuka Works

Toshio Kikuta

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

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

Hiratsuka Works

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

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

25

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

Social Performance Report

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

Fukui Works
A Multi-dimensional Approach
to Environmental Preservation
Activities
Fukui Works, which is located in the Fukui
Coastal Industrial Region on the shore adjacent to scenic TOJINBO, provides aluminumproducts to many industrial areas, from thicksheets with the largest width in Japan of 4,000mm which are used for LNG tanks to thinsheets for beverage cans and foil materials.
The works is the largest aluminum rolling plant
to be located near a tourist area. Ever since
1983, when we launched this works, we havebeen actively engaged in pollution prevention
activities in order to comply with pollution
thresholds regarding wastewater and gas
emissions which we concluded with the local
government.
We acquired ISO14001 certification in April
2002, and are continuously pursuing improvement of environmental preservation activities
based on an environmental management system.

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

Before improvement
12Completion ofdemolition

Furukawa-Sky Aluminum Corp.
Manager of Fukui Works

Suketoki Ooya

26

▲Planting commemorative trees

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

Fukui Works

After improvement

Demolition work

3

4

Square timbermade fromprocessed waste

Square timbermade from waste

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

A company striving to leadthe local community

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

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

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

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

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

Environmental Activitiesof Affiliated Companies

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

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

Overview of Consolidated Environmental Activities
Furukawa Electric has strengthened its environmental preservation activities togeth-

Environmental Management. This committee is used by the environmental adminis-

er with affiliated companies as a corporate group. In fiscal 2002, we establishedtrators of affiliated companies not only to promote and support environmental

the Liaison Meeting of Affiliated Companies and engaged in environmental preser-

activities but also to exchange information. We started compiling group-wide envi-

vation activities with the slogan, "We, as a corporate group, shall promote envi-

ronmental data and reflecting the results of group activities. In addition, group’s

ronmental preservation activities, aiming for reduction of environmental risks, andmanagers held seminars to improve employees’ environmental awareness.

thereby contributing to society and improving the evaluation of our activities by

Coordinated efforts from all the affiliated companies for environmental preserva-

society". In fiscal 2003, we established the Liaison Meeting for Consolidated

tion helped us achieve encouraging results.

No.

Names of 40 affiliated companies

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

Company Name

ISO14001

Handling
volumeSystemSoil temperature

Soil

PRTR

Organic
chemicalsIndustrial
waste

○

○

Access Cable Company

○

○

○

○

○

Asahi Electric Works, Ltd.

○

○

○

○

○

INOUE MANUFACTURING CO., LTD.

○

○

○

○

○

○

○

○

NTEC LIMITED○○○

F-CO CO., LTD.

○

○

○

○

FCM CO., LTD.

○

○

○

○

Okano Electric Wire Co., Ltd.

○

○

○

○

OKUMURA METALS CO., Ltd.

○

○

○

○

○

○

○

The Kyusyu Furukawa Electric Co., Ltd.

○

○

○

○

○

○

○

KYOWA ELECTRIC WIRE CO., LTD.

○

○

○

○

○

○

○

○

○

○
○

○

○

○

○

○

○

SUNSUNNY INDUSTRY CO., LTD.
SHODENSHA CO., LTD.

○

○

○

○

SEIWA GIKEN INC.

○

○

○

○

TOTOKU ELECTRIC CO., LTD.

○

○

○

○

T.H. FURUKAWA ELECTRIC CO., LTD.

○

○

○

○

Nikkei Kakoh Co .,LTD.

○

○

○

○

Nippon Foil Mfg. Co., Ltd.

○

○

○

○

Higashi Nihon Tanzou Co., Ltd.

○

○

○

○

○

○

○

○

○

FURUKAWA ALTEC Co., Ltd.
FURUKAWA INDUSTRIAL CABLE CO.,LTD.

○

○

○

○

FURUKAWA INFONET PRODUCTS CO., LTD.

○

○

○

○

FITEC Corp.

○

○

○

○

○

○

○

Furukawa Elecom Co., Ltd.

○
○

○

○

○

○
○

○

○

○

○

○

○

○

The Furukawa Electric Engineering Service Co., Ltd.

○

○

○

○

FURUKAWA AUTOMOTIVE PARTS INC.

○

○

○

○

○

○

FURUKAWA COLOR ALUMINUM CO., LTD.

○

○

○

○

○

○

Furukawa Circuit Foil Co., Ltd.

○

○

○

○

○

○

Furukawa Sangyo Kaisha, Ltd.

○

○

○

○

○

Broad Wireless Corporation

○

○

○

○

○

FURUKAWA INDUSTRIAL PLASTICS CO., LTD.

○

○

○

○

○

○

○

○

○

Furukawa Precision Engineering Co., LTD.
FURUKAWA ENGINEERING & CONSTRUCTION INC.

○

○

○

○

○

The Furukawa Battery Co., Ltd.

○

○

○

○

○

FURUKAWA LOGISTICS CORP.

○

○

○

○

FURUKAWA TECHNO MATERIAL CO., LTD.

○

○

○

○

FURUKAWA LIFE SERVICE Inc.

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

MIHARU COMMUNICATIONS INC.
Yamada Keikinzoku Co., Ltd.

○

Riken Electric Wire Co., Ltd.

○

Riken Fitel Co., Ltd.

○

○

○

○

○

○

○

○

○

○

※Commenced operations in April 2004. Former name: Furukawa C&B

Environmental Management Activities○…… ISO14001 : Acquiring certification
Global warming…… Plans for reducing/eliminating
Environmental accounting : Executing environmental accountgreenhouse gases
ing and publishing its results in this reportIndustrial waste…… Compiling industrial waste data
System : Establishing an environmental management system
Organic chlorine compounds……
Plans for reducing/eliminating organic chlorine compounds

PRTR…… Reporting to PRTR／listing chemical substances
Soil…… Investigating soil and groundwater pollution

27

Environmental Activitiesof Affiliated Companies
Common Targets on Consolidated Environmental Management Activities
We have formulated common targets
on consolidated environmental management activities and have been collectively pursuing these targets as
Furukawa Electric group since fiscal
2003. Of the seven targets we marked
in fiscal 2003, we have alreadyachieved three. We will continue working on these activities to attain the otherfour targets in the coming years.

(Common targets)

Item

TargetTarget year

Referencepage

1

Acquiring ISO14001 certification

Acquiring ISO14001 certification

Fiscal 2005

27

2

Reduction of industrial waste

Zero emissions activities: reducing waste directly disposed at reclamation sites by 50% over fiscal 2000

Fiscal 2005
Fiscal 2005

29

3

Reduction of greenhouse gases

Fiscal 2005
Fiscal 2008
Fiscal 2005

29

Fiscal 2005
Fiscal 2008

29

Reducing industrial waste (except for the recycled portion) by 30%over fiscal 2000
Reducing CO2 emissions by 5% over fiscal 2000
Reducing CO2 emissions by 10% over fiscal 2000
Totally discontinuing the use of HFC and PFC, and reducing SF6 atmospheric emissions by 50% over fiscal 2000

4
(Items for which targets were achieved)

Strengthening control and reduction of chemical substances

Item

Reducing effluence of organic chlorine compounds by 50% over fiscal 2000
Total elimination of effluent organic chlorine compounds

TargetPerformance1

Indexing the progress ofenvironmental management

Executing environmental accounting (for fiscal 2002)

Introduced environmental accounting on five affiliated companies and reported their results inthe Environmental Report 2003.

2

Establishing an environmental
management system

Clarifying persons responsible for activities and organizationof environmental management, and administrating data

Launched Liaison Meeting for Consolidated Environmental Management
Collecting and compiling data for each company (see page 29)

3Issuing environmental reports

Reporting information of the group's activities in fiscal 2002,
in the Environmental Report 2003

Introducing summaries of business and activities of four affiliated companies on the page
"Environmental Activities of Affiliated Companies"

Environmental Accounting
We collected data from eight companies, five of which were listed in fiscal 2003
and have added three other companies this year. Like Furukawa Electric, the environmental accounting of the affiliated companies is also carried out in accordanceCompanies newly

Scope of datacollection

included in present data

F-CO, Broad Wireless and FURUKAWA SANGYO KAISYA

Companies included in

TOTOKU ELETRIC, Nippon Foil Mfg. Furukawa Engineering &Costs and investment amounts for environmental preservation in fiscal 2003

previous and present data

Construction, Furukawa Battery and Riken Electric Wire

totaled 500 million yen and 160 million yen respectively. Economic effects

Data collection April 1, 2003 to March 31, 2004
period fromwith Environmental Accounting Guidelines by the Ministry of Environment.

amounted to 170 million yen.

■ Environmental Preservation Cost

Unit: million yen

Category

313(1) Business area costs

Pollution prevention, global environment preservation, resource recycling, etc.

(2) Upstream/downstream costs

Retrieval and recycling of containers, packages and plastic products, etc.

78(3) Administration costs

Establishment and maintenance of environmental management systems, maintenance for environmental preservation and measurement of environmental impact, etc.

83(4) Research and development costs

Development of environmentally friendly products, etc.

49(5) Social activity costs

Participation in official events for beautifying the environment, etc.

(6) Environmental remediation costs

Repair of corrosion-induced damages to underground wastewater piping

19

Total

543

■ Investment and Research Costs
Investment and Research Costs

Unit: million yen

Amount163

Environment-related investment
Total investment cost

2,000

Total research cost

2,000

■ Economic Benefits Associated with Environmental Preservation Activities
Unit: million yen

Content(1) Income from recycling(2) Reduction in waste disposal costs
through recycling(3) Reduction in energy costs throughenergy conservation

28

Costs

Major Activities

Amount113-2474(4) Reduction in water purchase costs

11

Total

174

1

■ Physical Benefits Associated with Environmental Preservation Activities
Discharge of Substances Having an Adverse Environmental
ImpactUnit

Industrial waste (excluding waste from recycled resources)

ton

902

285

Energy consumed (crude oil basis)KL

55,598-2,915

Water consumed

K.ton

980

-47

Emissions of volatile organic compounds

ton

0.4

2.7

Reduction Volume
Impact on the Environment (Change over previous year)

CO2 emissions

CO2-ton87,667-4,532

SOx emissions

ton

22

-4

NOx emissions

ton

387

-36

Soot emissions

ton

1.6

0.8

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

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

Environmental Impact Data of Affiliated Companies(affiliated companies: 40 [63 sites])

In fiscal 2003, we compiled data on the reduction of environmental
impact generated by the activities of the Furukawa Electric group semiannually. Environmental administrators from affiliated companies met toreport progress and exchange information regarding environment
improvement activities. The companies discussed trends regarding theenvironment in Japan and overseas and the latest revision of laws andregulations, ensuring compliance with these laws.
Furukawa Electric group has set common targets for the reduction of environmental impact. We have successfully reduced organic chlorine compounds such as trichloroethylene by 60% in fiscal 2003 compared to fiscal 2000. Unfortunately, volatile organic solvent waste volume directly
disposed at reclamation sites and emissions of greenhouse gases are having an increasing trend in affiliated companies compared to Furukawa
Electric where reduction of these pollutants progressed smoothly. Thiswas mainly due to an increase in operations owing to economic recovery
in Japan. Another reason is the shift of operations from Furukawa Electricto the affiliated companies. Thus, we believe that we should manage andimprove the overall environmental preservation activities of the group.

Emissions of Greenhouse Gases
Emissions volume(ton)

250000200000150000100000
50000
0

2000

2001

2002

2003 (fiscal year)

Discharge of Industrial Waste
Discharge volume

(ton)

2500

8000

2000

6000

1500

4000

1000

2000

500

0

2000

2001

2002

Waste Volume Directly Disposed at Reclamation Sites

(ton)

10000

2003 (fiscal year)

0

2000

2001

2002

2003 (fiscal year)

Reduction of Organic Chlorine Compounds (target substances: trichloroethylene, Tetrachloroethylene, Dichloromethane)
Handling Volume(ton)Release Volume

(ton)

300

250

250

200

200

150

150
100

100

50

50
0

2000

2001

2002

2003 (fiscal year)

0

2000

2001

2002

2003 (fiscal year)

Reduction of Specific Chemical Substances (volatile organic solvents) (target substances: Xylene, Toluene)
Handling Volume(ton)Release Volume

(ton)

900
800

60

600

40

50

30

400

20
200
0

10
2001

2002

2003 (fiscal year)

0

2001

2002

2003 (fiscal year)

29

Environmental Activitiesof Affiliated Companies

Activities of Affiliated Companies
The followings are initiatives for environmental preservation taken by companies related to Furukawa Electric.

Nippon Foil Mfg. Co., Ltd.
History

Reduction of Waste

Since its establishment in 1933 as a comprehensive metal foil maker, Nippon Foil Mfg. has
manufactured and sold aluminum and copper
foil products and other products made out offoils.
Our aluminum foil products are used as packaging materials in the food and pharmaceuticals industries. Miscellaneous goods mainly
kitchen utensils, building and electronic materials are also manufactured from foils. In addition, our copper foil products are also used forbatteries and shielding materials.
The plants are located in Nogi, Tochigi andKusatsu, Shiga. We adopt every possible
measure for water treatment at Shiga plant,
particularly because Lake Biwa, the reservoir
for the Kinki region, is located downstream
from the plant.

Discharge of industrial waste increased temporarily due to the elimination of incinerators
at the two plants, but we reduced the amountof waste discharged waste at reclamation sites
and from intermediate disposal treatment as aresult of sorting and retrieval of waste andselection of destination for recycled resources,
attaining a rise in the recycling ratio from 67%
in fiscal 2000 to 78%.

Environmental Preservation Activities
Company Wide Environment Committee,
which is a company wide organization, formulates environmental policies for the whole company and follows up all environmental activities. Each plant of Nippon foil Mfg also has
an environmental committee, which engages in
activities and sets its targets based on the company’s policies.
We promote environmental activities focusing
not only on compliance with laws and regulations, but also on reduction of industrial waste,energy conservation, sales of environmentallyfriendly products and environmental education.
The Shiga Plant acquired ISO14001 certification in October 1999 and the Nogi
Plant acquired it in June 2000.
A Combined audit of the two plants isscheduled to take place in 2004.

Sales of Productswith Reduced Environmental Impact
We are selling packaging materials, using
ECOCE, a Biomas Film Composite.
We are also promoting chloroethylene-free
and toluene-free products and are shifting towater based ink.

30

Examples of Energy Conservation and
Improvement of VOC Treatment Facilities

Cleansing liquid is one of the items in which
we have made an improvement from fiscal
2003 and have changed the type of cleansing liquids. We have also generated
reusable resources by sorting aluminum
trash and paper trash attached to plastics.

■ Waste volume/Reusable resources volume
（％）

(ton)

1600

100
Total waste volume

1400
1200

Waste for landfills/
Intermediate treatment disposal
Recycling ratio

90

78%

80

1000
800
74%

600

▲Deodorizing treatment equipment

VOC emission will be restricted due to a revision of the Clean Air Act but we have long
strived for the air emitted from the plant to be
free of harmful agents and for this purpose wehave used a direct incineration method toprocess organic solvents discharged in theprinting process and others, since 1976.
In 2003, we rebuilt our treatment equipment toutilize a heat storage incineration method, as
one of the energy conservation measures. As
a result, while electric power consumptionslightly increased, we reduced gas consumption dramatically, thereby reducing energy
costs by around 60 million yen per year.

73%

Nippon Foil Mfg. Co., Ltd.
67%

400

70

200
0

2000

2001

2002

60
2003 (fiscal year)

Reduction of waste at user level
Reduction measures at user level

Discontinue cardboard packaging andreuse pallets by promoting group
packaging
2 Plastic core wrappers are promoted
instead of conventional core wrappers
to promote reuse.
1

Through the above measures, we help toreduce waste disposal at user level. Use ofplastic cores, in particular, for 21 items, hasreduced waste by around 36 tons per year.

Osaka head office : 1-1 Nishinakajima 4-Chome,
Yodogawa-ku, Osaka City,Nisshin
Food Products building
Tokyo head office : 8-3 Higashi-Nihonbashi 2-Chome,
Chuo-ku, Tokyo
Higashi-Nihonbashi green building
Number of employees : 270
U R L : http://www.nihonseihaku.co.jp/

Enquiries
Company Wide Environmental Committee
Secretariat
TEL +81-3-5835-2071 FAX +81-3-3865-3457

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

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

Furukawa Automotive Parts Inc.
History
The company was established in 1946 as a
subcontractor of Furukawa Electric and manufactures cotton wrapping wires, bind wires andinsulated cables and was reorganized as
Oumi Electric Wire Co.,Ltd. in 1950.
The Company joined Furukawa Electric in
1960 in a technical alliance to produce wire
harnesses for automobiles. Since then the company has developed into a leading manufacturer of wire harnesses for the automotive
industry. In 2000, the company changed its
name to Furukawa Automotive Parts INC.

Environmental Preservation Activities
The Company acquired ISO14001 certificationin September 2002.
It is located east of Lake Biwa, at the so called"east-lake" area. This area requires special
environmental preservation consideration toprotect Lake Biwa.

kerosene, and in recycling activities by mainly
targeting copy papers.
We are saving energy, by temperature controlof air conditioners and heaters, encouraging
turning off of PCs and lightings when they are
not used. We also applied insulation coatingon the roof of the head office, and shiftedsome compressors to inverters.
We are also striving to reduce the amount ofcopy papers by using the unused side of usedpapers and encouraging double sided copying.
3

Reduction of Industrial Waste

We reduced industrial waste by around 54%
over three years by curtailing waste generationin the manufacturing process and administrative work as much as possible, and recycling
papers, metals and cardboard through thorough sorting.
The chart below shows our performance of
reduction in industrial waste.
■ Waste generation trends

Under the environmental policy of "We shallincorporate environmental preservation initiatives into every phase of corporate activity, tocontribute to a sustainable, happy and prosperous society", we engage in environmental
management activities at all three of our business establishments, the head office, Toyosato
factory and Hatasho factory, to achieve environmental targets.

(ton)

500
400

4

Contributions Activities to Local Community and Society

Every March, Inukami River Cleaning Activities
are carried out in the town of Koura where ourhead office is located. In May Uso River andStreet Clean-up Activities are carried out in the
town of Toyosato where Toyosato factory is
located. In August, Echi Refreshing Activities arecarried out in the town of Hatasho where theHatasho factory is located to keep the local areaclean. We participate in these events, assist in
local activities and interact with the local people.

Our Future Activities
We will further improve the environmental
management system as well as promote environmental preservation by continuing thealready, ongoing activities.
In the future, we will develop green procurement schemes which Furukawa Electric is currently promoting. In addition, we aim to establish a system for implementation and management of IMDS (International Material Data
System) and LCA (Life Cycle Assessment) as
requested by automobile manufacturers under
instruction of the Safety, Environment andQuality Promotion Department and theAutomotive Products Division.

Furukawa Automotive Parts Inc.

300
200
100

Priority Items
1

Environmentally Friendly Products

0

2001

2002

2003 (fiscal year)

Each of our customers, the automobile manufacturers, demands we stop using substanceswith adverse environmental impact and develop alternatives for these substances. We wereable to meet these requirements by discontinuing the use of these substances and using alternative substances, thus producing halogen-free
polyvinyl insulated cables.
2

Head Office :1000 Amago, Koura Town, Inukami County, Shiga
Number of Employees : 635
Factory : Toyosato Factory
380 Takanose, Toyosato Town, Inukami County,
Shiga
Hatasho Factory
416 Higashide, Hatasho Town, Echi County,
Shiga
U R L : http://www.furukawaap.co.jp/

Enquiries
Head office ISO Promotion Department(EMS Secretariat)

Energy Conservation and Recycling

We engage in energy conservation activities
by targeting electric power, crude oil andTEL +81-749-38-4817 FAX +81-749-38-4180▲Echi Clean-up Activities : events at Hatasho town.

31

Environmental Activitiesof Affiliated Companies

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

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

Activities of Affiliated Companies
Riken Electric Wire Co.,Ltd
History
We started operations under the name of
Riken upon the acquisition of a license to use
patents concerning enameled insulated wires
in 1934. Since then we have developed businesses centering on magnetic wires, various
cables, stainless steel wires, processing of coils
and solder plated wires. We are currently
developing products that meet this age’s
demands, such as optical electronics components and electronics components. We haveexhibited solid performance in home appliances, electronics and information equipment,
communication equipment and their infrastructure business.

engage in environmental preservation activities. The basic aim is that we use resources
effectively for improvement of current life standards of mankind and its future, with the visionof making the company an environmentallyfriendly company.
Ichikawa Factory, Shirane Factory and Ichijima
Factory acquired ISO14001 certifications inMarch 2000, August 2000 and February
2004, respectively. For external issues, wehave concluded an environmental agreementwith local governments and received certification of green procurement from customers. We
are pursuing improvement in the following
areas at each site and product level.

3

Eco-Product Development

In the cable division, we have shifted almost
100% to NF, succeeding in eliminating lead inalmost all products. In addition, we have realized high quality and low price in solder-plated wires for electronic components through a
hot-solder-dipped coating method which is ourown development. We are also the first tocommercialize lead-free solder plated wires,
attaining almost a 70% shift to NF.

Priority Items
Environmental Preservation Activities
We develop our business, with the recognition
that preservation of the global environment is
the most important aspect in our society and

1 Energy Conservation

We installed a cogeneration system at the
Shirane Factory, which provides around 70%
of total electric power from 1989. We also
use steam, generated from boilers, for ventilation inside the factory. In this system, steam isused as a cooler using an absorption chiller inthe summer and as a hot water heater in thewinter.

▲Lead-free solder-plated wires

Riken Electric Wire Co.,Ltd

2 Reduction of Waste and Promotion of Recycling

We have pursued reduction of waste and promoted recycling in all factories, which resulted
in waste reduction by around 15% andattained 130% in recycling rate in actual
achievement for the past three years.
▲Commemorative plating to acquire incentives on
use of patents■ Yearly Trends of Waste Amount and Recycling Amount
(ton)

100
90

Industrial waste
Recycling amount

80
70
60
50
40
30
20

Enquiries and further information
Ichikawa Factory Environmental Committee

10▲Planting lawn on the parking area in front of themain gate of Shirane Factory

32

0

Head Office : 12-22 Tsukiji 1-Chome, Chuo-ku,
Tokyo
Number of employees: 294
Factory : Shirone Factory
840-1 Kamihachimai, Shirone City, Niigata
Ichikawa Factory
17-12 Shiohama 3-Chome, Ichikawa City,
Chiba
Ichijima Factory
387-1 Aza Tsujinokai, Chokushi, Ichijima
Town, Hikami County, Hyogo
Electronics Components Division
357 Oaza Kosudo, Kosudo Town,
Nakakanbara County, Niigata
URL : http://www.rikensen.co.jp/

TEL +81-47-397-2131 FAX+81-47-396-7572

2000

2001

2002

2003 (fiscal year)

Progress inEnvironmental Management

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

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

1972"Company-Wide Regulations for Pollution Prevention" formulated

1974

Environmental Control Department established
Energy-conservation Team started

1989Team for Reduction in use of specified CFCs started

1992

Renamed "Team for Reduction in Use of Specified CFCs" to "Team for Reduction in Use of Ozone Layer Depletion Substances"

1993"Basic Framework for Protecting the Global Environment" formulated (Furukawa Electric's voluntary plan for environmental preservation)

1994

Committee for Company-Wide Promotion of Energy Conservation established

1996

Specified CFCs and trichloroethane completely eliminated from the company

1997

Team for Promotion of Reduction in Industrial Waste started

1998"Furukawa Electric Basic Environmental Policy" formulated
Central Committee for Environment Management established
Committee for the Development of Environmentally Friendly Products established
Chiba Works acquired ISO14001 certification
Display at Eco-Fair Ichihara
Mie Works acquired ISO14001 certification"Company-Wide Regulations for Environment Management" formulated revising "Company-Wide Regulations for Pollution Prevention"

1999

Safety, Environment and Health Promotion Department started incorporating Environment Control Department and Safety Control Divisions

2000

Ecology and Energy Laboratory established
Liaison Meeting with Affiliated Companies started
Environmental Report began to be issued
Meeting of Environmental Personnel started
Hiratsuka Works acquired ISO14001 certification
Osaka Works acquired ISO14001 certification
Kambara Works acquired ISO14001 certification

2001

Medium-Term Plan for Environment Preservation Activities 2002 formulated (for 2001-2002)
Shinagawa Works acquired ISO14001 certification
Environmental Accounting started to be disclosed

2002

Nikko Works(Kiyotaki District) acquired ISO14001 certification
Fukui Works acquired ISO14001 certification
Yokohama Laboratories acquired ISO14001 certification
Oyama and Shiga Works acquired ISO14001 certification
Green Procurement Preparation Committee established2003"Furukawa Electric Basic Environmental Policy" revised
Medium-Term Plan for Environment Preservation Activities 2005 formulated (for 2003-2005)
Green Procurement Executive Committee established
All Works including The Nikko Works (Sheet Plant) acquired ISO14001 certification
Liaison Meeting of Consolidated Environmental Management started
The first seminar for executives of consolidated companies

Booth at Yawata Coastal Area Fair

Ecology and Energy Laboratory

33

Environmental Report

2004

About a cover
We imagine harmony with nature and the establishment of a recycling society. In order to be a reputable company in society, Furukawa Electric aims forthe realization of a sustainable society.

Safety, Environment and Quality Promotion Department
6-1, Marunouchi 2-Chome, Chiyoda-ku, Tokyo 100-8322 Japan
TEL : +81-3-3286-3090
FAX : +81-3-3286-3540
http://www.furukawa.co.jp/
Published in October, 2004

This report is printed on 100% recycled paper with soybean oil ink,
by a waterless printing method that generates no wastewater.

IE-102 1F10 TR 50