Furukawa Electric Group
Sustainability Report

2014
DigestContents
03 Group Overview

18 Initiatives for the Environment

		Company Profile
		Global Network

		Environmental Management

04 Top Message
06

Special Feature 130th Anniversary Special Edition		

Across the Centuries		-130 Years of Contributing to Society

10 Consolidated financial key indicators				

Non-financial key indicators

12 Business Report		TOPIC… Recovery and Lessons Learned
		…
from the Nikko Snow Damage

16 Management
		CSR Management

2

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

19 Initiatives for Society
		
		
		
		
		

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

23
Major Products and Services
23
Furukawa Electric Group Philosophy
24
Third-Party Opinion
25
Furukawa Electric 130th anniversary logo
26
Scope of This Report
		Editorial Policy

Group Overview
Company Profile
Company Name

Furukawa Electric Co., Ltd.

President

Mitsuyoshi Shibata

Founded1884

Established

1896

Paid-in Capital¥69,395 million (As of March 31, 2014)

Net sales		¥931,781 million (Consolidated)(Years ended March 31, 2014)¥428,301 million (Non-Consolidated)

Number of Employees

47,045 (Consolidated)(As of March 31, 2014)

3,590 (Non-Consolidated)

Head Office

Marunouchi Nakadori Bldg., 2-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8322, JapanTEL.

+81-3-3286-3001

Global Network
As of June 30, 2014

Europe12
North America
Asia 71

4

Japan 42

Latin America 10

Total

139

(note) Main subsidiaries and equity-method affiliates

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

3

Top Message
Focusing Our Efforts on Creating More Valuefor Society Based on the Materials Technology
We Have Developed Over the Centuries- In 2014, Furukawa Electric is celebrating the 130th
anniversary of its establishment. What are thereasons behind its long success as one of Japan’s
top companies?
Since our establishment in 1884, the main focus ofour business has been on building infrastructure (which
provides the foundations for both society and industry)
as a cable and non-ferrous metals manufacturer usingmaterials technologies in a wide range of fields, including
copper, aluminum and resin. Our products and services
have been recognized by society and gained an excellent
reputation because all of our employees have kept theireyes focused firmly on the future no matter what businessenvironment they have faced. We have also continued tolisten to the expectations and demands of society, whichchange on a daily basis, and maintained an approachof continuously trying to create new business throughtechnological innovation. The fact that we have continued
to receive the support of our stakeholders is another reason
for our success.

- So it’s extremely important to maintain an
attitude of wanting to contribute to society and tocontinue taking on the challenges of technologicalinnovation. In addition to making a social
contribution by providing services, do you think
there have been any environmental reasons why
the company has continued to flourish?
The fact that Furukawa Electric has been able to securea continuous supply of the mineral resources used in manyof our products, including raw materials such as copper, isa major reason why our company has been able to continue
in business for such a long time. In other words, we havecontinued to enjoy the benefits of our ecosystem for the

Mitsuyoshi Shibata
President
Furukawa Electric Co., Ltd.

4FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

past 130 years. For this reason we have carried out therecovery and recycling of resources from an early stage.
For example, we have recovered the copper wires used inscrapped electric cables and used them in manufacturing;
we have recovered and reused offcuts arising in the
manufacturing of processed copper products; and wehave carried out recycling as a matter of course sincelong before the word “recycling” came to be widely used.
We have also recycled waste plastic and used it in cablepipe products.

- Could you tell us about the important challenges
faced by Furukawa Electric in ensuring that thebusiness continues to flourish in the future andthe measures you are planning in order to achieve
this?
As set out in the medium-term management plan
concept, we will focus on the infrastructure andautomotive markets, which are expected to see significant
growth in global terms and for which there is a strong
need for technological innovation. We believe it isimportant to develop new next-generation business.
These initiatives are founded in an approach of “wanting
to use Furukawa Electric business to help solve society’s
problems around the world”.
In the infrastructure market, our challenges lie in
how to use energy as efficiently as possible given
the global energy problems, and in doing so how to
produce smart infrastructure that can be controlled as
intelligently as possible. Major challenges include using
optical telecommunications (a field in which Furukawa
Electric excels) to create systems that use electric power
efficiently. We also need to unite as a group in order totake on the challenge of creating the new technologies
that will allow us to achieve this.
In the automotive field, improving the efficiency
of fossil fuels and electric power (energy) andachieving energy savings are global challenges. An
important challenge for Furukawa Electric Group is
to integrate optical telecommunications and electric

power technologies into the automotive parts-related
technologies that we have built up over many years, andto incorporate this as new technology.

- Lastly, above all else what do you think will
provide the foundations for the company tocontinue succeeding in business?
The foundations for the company’s business activities
can be found in the attitude of each and every employee,
and the basic premise of safety, quality and compliance.
Furukawa Electric Group has set down the behavior
it expects from its officers and employees regarding
corporate social responsibility in our “Furukawa ElectricGroup CSR Code of Conduct”. In addition to legal
compliance, this requires that officers and employees act
in accordance with social norms and corporate ethics,
and improve their awareness and practice of safety andquality.
Over the past few years, our whole group has worked
together to prevent any recurrences of competition law
violations, and we have developed a system to handle
international regulations governing bribery. Moreover,
our efforts to recover from the snow damage that
occurred at Nikko Works in February this year (2014)
gave us practical experience of BCM (business continuity
management), and we have launched initiatives to makeuse of this experience as a way of strengthening BCM
across the group. Moving forward, we intend to monitor
the status of our organizational platform from a global
perspective and to help solve global problems throughour business activities as we focus our efforts on creating
more value for society.
Lastly, please allow me to express my hope that as
many people as possible read this report so that Furukawa
Electric becomes even more widely known.

- Thank you for your answers.

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5

130thAnniversary
SpecialEditionAcross the Centuries

The Path of Our Founder
In 1884, 130 years ago, our company began smelting copperin Honjo, Tokyo and manufacturing electric wires in Takashimacho, Yokohama. This is regarded as the foundation of ourcompany.
Ichibei Furukawa, the founder of Furukawa Group, was bornin Kyoto in 1832. His natural ability in business helped him rise
to a senior position at Ono Group, a wealthy merchant group atthat time. When Ono Group became bankrupt he became
penniless. However, he received encouragement fromacquaintance such as Eiichi Shibusawa and Munemitsu Mutsu,
and in 1877 he began operating the Ashio Copper Mine. He

overcame several crises to help the mine
become the largest copper mine inJapan.
The Yamaichi logo, which is the
Furukawa Electric company logo, wasCompany logo/
first registered in 1877 under the slogan
Yamaichi markKogyo Sen-itsu (“Mining Above All”).
He introduced state-of-the-art Western technology to expand
the company’s industrial capacity, including the construction ofJapan’s first full-scale hydroelectric power plant in 1890, andbuilt the foundations for Furukawa Group.

The Founder’s Philosophy
Ichibei set down a management philosophy - “Value people,” “Valuecustomers and society” and “Incorporate the latest technology” - and used
his enthusiasm and his ability to get things done to open the way to a newera. In today’s terms, his philosophy equates to fostering human resources
who value health, safety and compliance and contributing to customers andsociety through the main business. This means we need to take on every
challenge we are faced with in order to achieve our goals. This approachhas been handed down through the long history of companies that havemade up Furukawa Group, and our repeated efforts to value all people,
including customers and employees, at the same time as taking on new
challenges without fear of failure, have created the companies we have
today. This is also reflected in Furukawa Electric Group’s corporate
philosophy: “Drawing on more than a century of expertise in thedevelopment and fabrication of advanced materials, we will contribute to therealization of a sustainable society through continuous technologicalinnovation.”
Ichibei left us with the memorable phrase Un-Don-Kon. He said that inorder to achieve big things people need “Un” (good luck), “Don”(stubbornness), and “Kon” (perseverance). “Don” in particular refers to being
stubbornly honest in your work. In other words, this means refusing toaccept other people’s opinions too easily; the more people think you arewrong, the more you need to carry out what you are doing with strong belief.
This philosophy can be clearly seen in Ichibei’s approach to his own life.

Ichibei Furukawa

Social Contributions in Addition to Our Main Business
Since our foundation, Furukawa Electric has sought to contribute tosociety in ways other than just through our main business. For
example, to commemorate the visit of Emperor Taishoō and Empress
Teimei to the Nikko Works in September 1913, the Nikko Waraku-odori
festival has been held ever since 1914. The festival started out as away of recognizing the hard work of the employees. However, it hascontinued for over 100 years and has now become an establishedfeature of the lively summer festival season in Nikko and numerous
local people take part.
Furukawa Electric is also active in sports, and in 1955 it namedsoccer, ice hockey, volleyball and rowing as the official company
sports with the aim of improving employee morale and contributing tolocal society. Furukawa Electric Soccer Club continues to this day as
J-League team JEF Chiba.

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FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

Nikko Waraku-odori

130 Years of Contributing to Society

Across the Centuries
Contributing to the Development ofSocial Infrastructure
Contributing to broadcasting infrastructure
by installing the antenna on Tokyo Tower
Furukawa Electric installed the antenna on Tokyo Tower during its constructionin 1958. This led to the start of a fully-fledged age of television broadcasting.
The decade after 1955 was a time when Japan achieved rapid development
through strong economic growth and recovery from World War II.
In 1964, the Tokyo Olympics were held. People were in exuberant spirits
thanks to the information they received via television. Living standards improved
and Japan accelerated towards modernization. The Tokyo Tower antenna
continues to tower majestically over its surroundings and has made a significant
mark on Furukawa Electric’s broadcasting business.
Furukawa Electric’s technology has continued to be used in later years,
including during installation of the antenna on the Tokyo Skytree.

Developing Overseas Business and Promoting Major Projects

Developing and Expanding
the Telecommunications Network in Bangkok
In 1968, a plan was set out by Telephone Organization of Thailand operator
to upgrade the telephone network in the metropolitan region of Bangkok.
Furukawa Electric succeeded in receiving the order for the project despite
competition from leading companies around the world. The project involved
installing 21 telephone exchanges and 122,500 terminals throughout the cityof Bangkok and was the largest project in the history of telecommunications
cable exports. What’s more, we accumulated know-how in relation to
overseas projects and accelerated our business in developing countries.

Power Transmission Line Installation in IranThe biggest overseas projects Furukawa Electric has taken on was a large
order we received from the Iran organization for electric power affairs for the
installation of power transmission lines. This was a huge project. During the four
years between signing the contract in 1978 and completion of the work in 1982
we overcame numerous difficulties and trials, including a revolution in the Iranianpolitical system and the chaos brought about by the Iran-Iraq War. Moreover, theroute for installation traversed paddy field zones, forest zones and desert zones,
and we had to cross the Alborz Mountains to the north of Tehran, which contains
a series of mountains above 4,000 m.
The companies that were working together on the project finally managed to complete the installation of power transmission
lines with a total length of 449 km despite the harsh environmental conditions.
The technological prowess of Furukawa Electric was highly regarded by the Iran organization for electric power affairs and the
project made a major contribution to our future overseas power transmission line installation projects.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

7

130thAnniversary
SpecialEditionAcross the Centuries
Contributing to the Realization ofa Safe and Comfortable Society

Contributing to the Construction and Developmentof Telecommunications Infrastructure
Improvements in internet technology have made a large contribution to theglobalization of corporate activities and the safety of society, including crisis
management in times of disaster, as well as the collection of big data that
contributes to marketing, and improvements in convenience brought about by
smartphones.
In the pioneering days of optical fibers, Furukawa Electric was the first company
in the world to produce long-distance optical fiber cables, opening the way to therealization of optical telecommunications infrastructure. In addition to optical fiber
Optical amplifiers
cables, Furukawa Electric has developed a succession of peripheral technologies
that are required to build infrastructure, including the optical amplifier pumping lasers that are essential to longdistance telecommunications, frequency-division multiplexing that is necessary to expand telecommunications
capacity, improvements in installation efficiency and innovations in connections technology. In this way,
Furukawa Electric has supported to develop telecommunications infrastructure with advanced technologies.

Contributing to the Safety and Ecology
in Cars

SRC (Steering roll connectors)

SRC (Steering roll connectors) are a core component of airbag
systems, which protect passengers from impact during accidents.
Furukawa Electric’s SRCs maintain reliable operational
performance in vehicle conditions ranging from below freezing incold regions to above 50°C at the height of summer. This reliability
has been recognized in our top share of the global market.
There is a constant demand to make cars lighter. Furukawa
Electric supports improvements in fuel efficiency and comfortable
driving by maintaining the reliability of wire harnesses, which haveincreasingly complicated signal paths for vehicle computers, whileachieving the required weight specifications by reducing every
gram wherever possible.

Contributing to the Discovery of the Higgs
Boson through Superconductivity Technology
In the 1960s Furukawa Electric worked on developing superconducting
wires, and in the 1980s we became one of the world’s few manufacturersof low-temperature superconducting wires. Experiments to confirm theexistence of the Higgs boson at CERN in Europe (which has beenreferred to as the “discovery of the century”) required a hugesuperconducting magnet. Furukawa Electric was presented with theGolden Hadron Award in recognition of its efforts in supplying the hugevolume of superconducting wires needed for this magnet.
Furukawa Electric is currently working on the development of thirdgeneration yttrium high-temperature superconducting wires and cables,
and in Shenyang, China in 2013 we succeeded in carrying out theequivalent of 30 years of current testing on superconducting cables
capable of transmitting 275kV for 1,500,000 kVA, which was the highest
standard ever achieved in the world at the time.

8

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST©CERN

Inside the Large Hadron Collider (LHC)Across the Centuries
Contributing to the Realization ofa Sustainable Society
In the future, Furukawa Electric aims to expand its business in the infrastructure (telecommunications and energy) andautomotive markets, in which we can make full use of the knowledge acquired by Furukawa Electric Group, and at thesame time contribute to the realization of a truly rich and sustainable society by strengthening Group Global management.

Growth Strategies in the Telecommunications
Infrastructure Market
Global telecommunications traffic is expected to continue increasing dramatically,
particularly in newly-emerging economies. Furukawa Electric Group is making fulluse of the optical fiber photonics technologies it has accumulated in order todevelop products capable of contributing to an increase in capacity. Overseas, weare using single management at our global bases in order to capture demand ingrowth markets efficiently. In Japan, we have reorganized our production bases,
established a supply system to match demand and promoted cost reductions.

Growth Strategies in the Energy
Infrastructure Market
Over many years, Furukawa Electric Group has contributed to theconstruction of the energy network. We intend to make full use of theknow-how accumulated during this time to handle burgeoning
infrastructure demand, particularly in Asia, while also contributing to
the realization of a smart-grid society that uses energy efficiently.
For example, we are promoting the development of hightemperature superconducting power cables, which make major
reductions in transmission losses, as well as products for use invarious superconducting applications, such as coils.
High-temperature super-conducting power cables

Growth Strategies in the Automotive Market
Furukawa Electric Group will utilize its unique materials technologies tocontribute to more environmentally-friendly cars, including through thedevelopment of lighter car parts and improvements in energy efficient,in order to help realize a low-carbon society.
We will strengthen our sales and design capabilities at overseas
bases, expand our production bases, particularly in Southeast Asia andCentral and South America, and expand the size of our trading area inoverseas markets. Furthermore, we will strengthen our procurement
function, and work to make thorough reductions in cost prices, including
the cost of materials, processing costs and fixed costs.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

9

Consolidated financial key indicators(Years ended March 31)■ Net sales■ Operating income（Billions of yen）

（Billions of yen）

60

1,200
900

809.7

925.8

918.8

924.7

931.8
40

600
20

300
0

2010

2011

2012

2013

2014

■ Operating income (Ratio to net sales)

25.5

20.3

2010

2011

2012

2013

2014

（Billions of yen）
20

3.8

4

10

2.7

2.5
1.7

2

1.9

9.7

12.2
3.6

－10

2010

2011

2012

2013

2014

－20

－11.1
2010

2011

■ Return on equity

（Yen）

（％）

75

20

6.3

50

13.80

17.30
－15.75

0

5.07

7.94

5.6

0

■ Net income per common share

25

15.9

17.8

■ Net income

（％）
6

0

0

35.1

2012

7.4

2013

2014

2.3

3.3

2013

2014

－7.2

0

－20

－25
－50
－75

2010

2011

2012

2013

2014

■ Cash flows（Billions of yen）
75
50
25

54.9
37.1
36.7
30.8
11.6
15.7
10.5

10.0

18.9

0
－25
－50
－75

－25.1

－21.4

－20.3

－21.4
－40.3
－44.9

2010

2011

2012

2013

2014

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

10

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

－40

2010

2011

2012

Non-financial key indicators
Number of Group Employees by Region (Consolidated)(Number of employees)

29,76430000

As of March 31, 2014
North/SouthAmerica
7,900

27,85325,44925000

21,094

Europe, other
462
Japan
10,83020000
14,21415000

13,905

Total

10,830

10000

14,046
5,239

5000
0

6,181

47,045

7,900

3,673

539

523

3/2011 3/2012 3/2013 3/2014

3/2011 3/2012 3/2013 3/2014

3/2011 3/2012 3/2013 3/2014

Japan

Asia

North/SouthAmerica

Europe,other

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

5,000

4,000

19
2％

2,000

3,653

93％
3/20123/2013

98％

700

92％

0

3/201498％

3/20113/2012

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

100

60

20

23.9
23.9

19.7
19.7

14.4

91
91

73
73
20.9

44
44

42.2
42.2

11.3
11.3

12
12

14
14

16
16

FY2010FY2011FY201250 （％）
40

85
85

67
67

40

0

40.2
40.2

40.0
40.0

80

17
17
FY2013

24.3
24.3

25
25
FY2014

30
20
10

1

97％

0.6

3/2013

0.71

0.93
0.52

2010 2011 2012 2013 2014

3/20141.35

1.33

2010 2011 2012 2013 2014 (FY)

CO2 emissions
Furukawa ElectricGroup Companies (Domestic)(104 tons-CO2)

50
40
30

14.0

13.7

13.0

15.5

16.5

26.1

24.6

24.4

24.9

24.7

FY2010FY2011FY2012FY2013

FY201420
100(note 1) The amount of power consumed is calculated using the emission factorof each power company.
(note 2) Assuming that hydroelectric power produces zero CO2 emissions.
(note 3) UACJ Corporation was transferred to other related companies in fiscal 2014
and so the figures for past fiscal years have been retroactively adjusted.

Furukawa ElectricGroup Companies (Domestic)(Tons)

272

269

267

84

79

76

264

261

250

5,000
4,000

76

150

76

3,000

3,363
2,841

2,000

163

165

163

149

137

50
0

97％

1.68

812

Down 1％ year on year

(1,000kℓ)

100

2

846

3.18

Processing volume of non-recyclable waste

Furukawa ElectricGroup Companies (Domestic)

200

3.68

3.08

3

3％

0

Energy consumption

300

23

Female0

Environmentally friendly products as a percentage of sales(No. registerd)

3％

Male

4

935

924
3,307

5

Female26

800

Employee turnover rate by gender (Furukawa Electric)

Male

2％

8％

3,857

Asia
27,853(%)

900

7％ 28393％

3/201119

Female8％ 318

92％

0

1,000

Male

335

7％

3,931
3,000

462

3/2011 3/2012 3/2013 3/2014

Gender ratio of Employees (Furukawa Electric)

296

492

FY2010FY2011FY2012FY2013

FY2014(note) UACJ Corporation was transferred to other related companies in fiscal 2014
and so the figures for past fiscal years have been retroactively adjusted.

1,000
0

2,080
1,252
FY2010

1,882

1,887

863

749

401

299

FY2011FY2012FY2013

FY2014(note) UACJ Corporation was transferred to other related companies in fiscal 2014
and so the figures for past fiscal years have been retroactively adjusted.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

11

Business Report
Net sales by Main Business Segment (Consolidated, fiscal year 2014)
Others

4.3 % 43.8 billion yen

Telecommunications

15.2 %

Light Metals

9.5 %
96.6 billion yen
Metals12.9 %
130.7 billion yen

154.0 billion yen
Total

931.8

billion yen

Energy andIndustrial Products

29.4 %
298.9 billion yen＊1

Electronics andAutomotive Systems

28.7 % 291.0 billion yen＊1 Figures excludes intersegment transactions

At a Glance
Telecommunications
Optical Fiber and CableNet Sales（Billions of yen）

200
150

135.5

149.3 144.5 146.1 154.0 155.0

100
50
0
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015（Forecast）

Operating Income（Billions of yen）

10

9.8

9.6
7.2

8

Japan:		We have achieved effects from structural reforms bymerging production bases.
Europe and United States:	Cuts to fixed costs during the second half of FY2014 madea full contribution and the market is continues to movetowards recovery.
Brazil: LAN solutions and fiber optic business expanded.

Optical Parts and Networking Equipment
Japan, China and United States:	D emand for new products (ITLA/ integrated signal
light sources) to supply next-generation high-speed
telecommunications (digital coherent telecommunications)
expanded.

6.5

6
4
2

4.1
1.9

0
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015（Forecast）

Factory of FISA (Brazil)

12

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

Conventionally sized ITLA (top) andmicro ITLA (bottom)

Energy and Industrial Products
Ultrahigh-Voltage Transmission Cables

Net Sales（Billions of yen）

300
250

253.0

272.2 265.7

298.9 290.0

208.8

200
150

Japan:		Submarine power cables for offshore wind power
generation were developed.
China: 	A Chinese subsidiary improved its cost structure
and promoted sales expansion in overseas
markets.

100

Industrial Products

50

Europe:	
Improvements were achieved through the sale ofunprofitable Russian bases, etc.
Japan:		Strong demand is expected to continue for cableprotecting conduit line materials in mega-solar
applications.

0
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015（Forecast）

Operating Income（Billions of yen）

4

4.0

3.7

3

2.0

2

1.7

0.9

1

-0.8

0
-1

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015（Forecast）

Shenyang Furukawa Cable Co.,
Ltd. (China)

Laying a submarine transmission
cableElectronics and Automotive Systems
Automotive Parts

Net Sales（Billions of yen）

350

291.0

300
250
200

177.2

209.6 212.0

310.0

243.7

150
100
50
0

Japan:		Despite an expected fall in demand caused by theincrease in consumption tax and other factors,
strong sales of wire harness for new models
are expected to cover the impact of reduced
production in Japan.
Overseas: We have begun to achieve the potential of new wire
harness bases in Asia and Mexico and promoted
an expansion in SRC sales in South America.

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015（Forecast）

Operating Income（Billions of yen）

200

140

150
100
50

72

155

93

78
51

0
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015（Forecast）

Wire Harness factory (China)（中国）

SRC (Steering Roll Connector)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

13

Metals
Copper foil

Net Sales（Billions of yen）

200

152.9
150

141.6

119.6

129.4 130.7 120.0

100
50
0

Japan:		Conditions are expected to improve after realizing
the effects of production base centralization andcompleting the transfer of manufacturing to Taiwan.
Taiwan:	Battery foil business is expected to grow,particularly in automotive applications, and circuit
foil volumes are expected to recover.

Copper strips
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015（Forecast）

Operating Income（Billions of yen）

4

Japan:		A fall in operating income of 3.6 billion yen is
forecast as a result of the impact of snow damage
in February at Nikko Works. We plan to achievecomplete restoration by the end of the year.

3.2

3
2
1

0

0
-1
-2
-3

-1.3
-2.2
-3.1

-4

-4.0

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015（Forecast）

Electrodeposited copper foil

Furukawa Electric Copper Foil
Taiwan Co., Ltd.

Light Metals
Net Sales（Billions of yen）

250
200

188.1

209.0

195.6

Rolled Aluminum Products
185.0

150

96.6

100

Only the first-half operating income was recorded in FY2014
because of the inauguration of UACJ in October 2013.
In the second half of FY2014, operating income was recorded as“equity in net income of affiliates” under non-operating income.

50
0

FY2010 FY2011 FY2012 FY2013 FY2014

Operating Income（Billions of yen）

12

11.5

10
8

5.7

6

4.4

4.4

4
2
0
-2

14

-0.2

*Since the second half of fiscal 2014 and fiscal 2015 it has
been recorded in equity in net income of affiliates

FY2010 FY2011 FY2012 FY2013 FY2014FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGESTTOPIC

Recovery and Lessons Learned
from the Nikko Snow Damage
Nikko Works suffered serious damage as a result of record snowfallin the Kanto Region in February this year (2014), including thecollapse of roofing on some factory buildings such as wrought copper
products buildings, and we were forced to suspend operations. We
have since made good progress with restoration work and are
gradually recovering normal operations. However, major works arescheduled to continue until the end of the year, including thereconstruction of buildings, as we work towards a full recovery.
Our conventional BCP (business continuity plan) was drafted on theassumption of a major earthquake or similar disaster, and it was not
sufficient for handling the recent snow damage. We are extremely
regretful about the disruption we have caused in the supply chain,both to our direct customers and to the customers of our customers.
In future, we will improve our awareness of the supply chain andmake full use of our recent experiences in order to promote activities
that allow us to minimize any impact on our customers. This
experience has reconfirmed for us the importance of Furukawa
Electric products for our customers. We will take the positives fromour experiences by gaining an understanding of specific areas where
we can improve and using this as an opportunity to build anenhanced business continuity management. Moreover, we plan to
combine this new knowledge with the knowledge we haveaccumulated in our optical semiconductor devices business, forwhich we gained ISO22301 certification in February last year, and topromote business continuity management in other business fields.

Collapsed roofing immediately after the snow
damageWork continues at the factory with the aim ofachieving a full recovery

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

15

Management
CSR Management
In order to contribute to the realization of a truly rich and sustainable society, weneed to understand the social responsibilities of Furukawa Electric Group andimplement policies in line with the Basic CSR Policy. We will promote CSR initiatives
alongside our business activities so that each and every Group employee is able totake the lead in putting CSR initiatives into practice.

Achieved
Partially achieved

Targets and Results (Risk Management / Internal Controls / Compliance)
FY2014
Targets

Continue complianceeducation-C ontinue rank-based andtheme-specific group training

Not achieved
FY2015Results / Achievement-W e held theme-based joint training sessions atfive bases in Japan, covering competition law
and anti-bribery regulations.
-W e held compliance training by job grade,including training for newly-appointed
management candidates and manager training.

Strengthen business
continuity management (BCM)-S
 trengthen relations withbusiness partners in regard to
BCM activities-C ontinue BCM drills, andstrengthen review activities-W e carried out a reappraisal of importantbusiness after switching to the business divisionsystem, and strengthened BCM activities with
an awareness of the supply chain.
-W e formulated business continuity plans(BCPs) for all business divisions and moved on
to BCM activities.

Strengthen emerging market
risk checks and support foroverseas subsidiaries-H old risk management
seminars in Southeast Asia
and China-W e held risk management seminars in theSoutheast Asia Region and China Region.
-W e established the Group Global Management
Division and strengthened support for
subsidiaries.

Enhance global compliancefoundations-E nsure thorough compliancewith competition laws andcreate anti- bribery systems-W e continued training related to competition law,and anti-bribery compliance through e-learning.
- In partnership with the Auditing Department,
we carried out monitoring of efforts to build
systems to prevent bribery.

Targets

Promotion of global compliance-D evelop training content targeting
the whole group, etc.
Strengthen business continuity
management (BCM)-B
 ased on the lessons learned
from the Nikko snow damage,switch from existing BCM
activities, which focus on our own
company, to activities that focus
on the customer’s perspective.
Respond to risks in newlyemerging economies andstrengthen support for overseas
subsidiaries-S trengthen training in countries
with newly-emerging economies
and provide management
support tools to affiliatedcompanies.
Give direction to priority fields in
CSR activities- Hold stakeholder communication

Message from the General Managers
Takashi Fukuda

General Manager, CSR Department, Administration & CSR Division

Nowadays, companies are required torespond to a rapidly changing world
with a variety of stakeholders in mind.
As Furukawa Electric Group sets about
this task, CSR activities are an essential
part of our survival as a business.
Furukawa Electric Group has set out abasic policy and code of conduct for
C SR in accordance with a groupphilosophy that seeks to meet the
expectations of our founder, in addition
to developing a variety of related

16

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

systems and mechanisms. The
management report contains
information on a variety of initiatives,with a focus on the platform of CSR
activities, including risk management
and compliance.
In the medium-term, we aim to
examine ways of narrowing downpriority fields in CSR for Furukawa
Electric Group and promoting policies
that strengthen communication with our
stakeholders.

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

Main Responsibilities

Means of Communication

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

Customers-M aintain and improve the quality of products,
operations and services-O ffer products and services that are useful tosociety

Suppliers-C ompliance with laws and regulations- Compliancewith the Kyoto Protocol and the
Nagoya Protocol on biodiversity-R esponse to environmental activities of the Ministryof the Environment and other government organs-R esearch and information exchange on biodiversity
preservation through JBIB (note 1)- Dialoguethrough regular business- Website, Sustainability Reports-P rovide solutions to issues confronting customers
through a broad array of technologies and knowhow-D ialogue at technology exhibitions, trade shows-E stablish a sound relationship founded on fairtrading in compliance with laws and regulations-P artner Meetings-R ealize CSR throughout the supply chain byimplementing CSR Deployment Guideline for
Business Partners-C SR surveys

Shareholders-D ialogue through regular business- Feedbackinterviews on results of partner
evaluations-S ustainability Reports-P rovide appropriate returns-E nsure timely and appropriate disclosure-E nhance corporate value- Generalmeetings of shareholders, shareholder
reports-M anagement briefings and results presentations- Investor
visits-S hareholder plant tours

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

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

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

17

Initiatives for Environment
Environmental Management
Furukawa Electric Group is working on the conservation of the global environment
through technological innovation that utilizes our strength in advanced materials inorder to contribute to a sustainable future for the world. Furukawa Electric Groupalso establishes five guidelines for action.

Targets and Results (Environment)

Achieved

Partially achieved

FY2014
Targets

Not achieved

FY2015Results / Achievement

Implement initiatives aimed atpromoting effective utilizationof water (new)

We identified the volume of water
usage for each water source andhave set reduction targets with theaim of using water effectively.

Take part in activities
conservation of biodiversity(new)

We took part in local activities
in areas around our sites anddomestic group companies (river
basin cleaning activities, etc.).

Promote development at groupcompanies in Japan (priority)→E xpand to domestic groupcompanies, and activate
green activities

At domestic group companies,
we expanded green procurement
activities for general-purpose
products and carried out LCA for
our main products.

Targets-T ake initiatives aimed at reducing the overall
volume of waste (new)-E xpand to overseas group companies, andpromote environmental activities (new)-S trengthen activities aimed at promoting
environmental management (priority)-E stablish targets under the basic policyon environmental activities and carry out
environmental activities continuously: I.
Social contributions; II. Pollution prevention;
III. Saving energy and resources

Message from the General Managers
Hisashi Iwama

General Manager, Safety & Environment Promotion Department, Production Technology Division

Since FY2014, we have carried out a reconstruction of
our management system with a view to environmental
conservation activities on a
global scale, in response to ourGroup Management Policy. The
basic policy for environmental
activities has been set out in aclear order as follows: I. Social
c on t r ibu t ions; II. Pollu t ion
prevention; III. Saving energy
and resources. Firstly, as amanufacturer it is our social
responsibility to make sure that
our customers can use our
products and services with18

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

safety and peace of mind. We also need to carry out
business activities that allow society to use our products
and services in way that contributes to the conservationof the global environment (design and development →procurement and production → supply and recovery).
Secondly, as we develop products and carry out
production activities, we need to manage chemical andother substances in an appropriate way, and work hardto prevent pollution. Thirdly, by manufacturing in a waythat makes efficient use of limited resources and energy,
we need to leave a beautiful natural environment tofuture generations and carry out environmental
management activities that allow us to contribute to therealization of a rich society.

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

Targets and Results (Quality)

Achieved
FY2014

Targets*3H products:
Hajimete (first manufactured products)H enkou ( modification of producing method,
process or design, etc.)H isashiburi (products not manufactured foran extended period of time)

Not achieved
FY2015Results / Achievement

Strengthening fundamental “quality power”-Z ero complaint from customers of 3H
products

Partially achieved-W e carried out audit of Strategic
Business Units and promoted thehorizontal penetration of good
examples as part of our activities in
our first year of aiming to achieve
zero complaints from customers of
3H products.

Targets

Strengthening fundamental“quality power”-D ecreasing 10% “Failurecost” compare with FY2014-B ased on the above results,
we released guidelines for the
management of 3H products.

Message from the General Managers
Kazuhisa Kashihara

General Manager, Quality Promotion Department, Production Technology Division

As set out in the basic policy on quality
management, we promote a management
cycle that is always based on facts andseek to maintain and improve quality at allstages of our work (including research,development, manufacturing, sales,s e r v ic e s a n d m a n a ge me n t ), a t a ll
divisions and across all job grades.
As we seek to produce products thatare attractive to our customers, we carryout thorough checks of all processes
prior to delivery to the customer, fromproduct planning through to completionof the final product. Moreover, in order toimprove our ability to complete
manufacturing products with meticulous
assurance of quality from the start, we willcontinue to make improvements to the
production process itself, including
attempts to create intrinsic technologies.
Furthermore, we have already started
to carry out customer satisfaction surveys
at some Strategic Business Unit and wewill examine ways of using customers’
opinions to achieve further improvements.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

19

Relations with Business Partners
Furukawa Electric's Group purchasing policy is to establish strategic relationships with business partners to ensure
optimum purchasing on a steady, ongoing basis. Based on this policy, Furukawa Electric strives to create cooperative
relationships based on mutual trust with its business partners, thereby contributing to sustainable future development.
Targets and Results (Procurement)

Achieved

Partially achieved

FY2014
Targets

Strengthen strategic relationships
with business partners

Not achieved

FY2015Results / Achievement- C ontinue t o c onduc t par tner
assessments and feedback
consultations-W e carried out partner
assessments and gave
feedback meetings toapproximately 300 of our
suppliers.

-N otify business partners of
CSR Deployment Guidelines for
Business Partners with updated
version describing response toconflict minerals-W e carried out questionnaire
surveys of approximately 300
of our largest suppliers in
relation to CSR Deployment
Guidelines and BCP status.

Targets

Strengthen strategic relationships withpartners (suppliers)- Continue to conduct partner assessments-P romote awareness of CSR Deployment
Guidelines among suppliers-E xamine specific measures aimed atstrengthening the supply chain based on the
results of BCP surveys carried out at suppliers-C arry out conflict minerals survey (survey forthe purposes of updating data)

Satoshi Tosaka

Message from the General Managers

General Manager, Procurement Department, Finance & Procurement Division

Ever since its foundation, Furukawa Electric has
stayed in business by supplying people with social
infrastructure and contributing to society as asupplier of products. However, our success is notjust the result of hard works at our company. It isalso thanks to the steady delivery by our suppliersof the raw materials we use to create products.

circumstances, we will need to strengthen our
supply chains further in order to continue
contributing to society. We intend to use partners’
meetings and partners’ assessments to improvethe mutual understanding we have with our
suppliers, and to continue contributing to society
through measures such as the promotion of CSR

In the future, our business environment is likely
to change even more rapidly. Under these

activities and strengthening of BCP.

Relations with Our Shareholders
The Furukawa Electric Group Basic Policy on CSR requires that the Group seeks to improve upon the sound, friendly
relationships we maintain with all of our stakeholders. Our Own Regulations on the Timely Disclosure of Corporate
Information meanwhile set out a framework for the disclosure of appropriate information at the appropriate time.

Message from the General Managers
Furukawa Electric’s business began withcopper smelting and the manufacture of electric
wires. One hundred and thirty years later, thenumerous products that we manufacture basedon our materials technology support the lives ofpeople around the world in a wide variety offields, including telecommunications, electric
power infrastructure and automobile.
However, because we often work behind the20

Osamu Suzuki

General Manager, Investor & Public Relations Department, Finance & Procurement Division

scenes, shareholders and investors often tellus that they feel unfamiliar with the content ofour business.
We will continue to work hard to host events
such as factory tours, in addition to making
regular news releases and developing thewebsite, so that people can clearly understandand feel more familiar with our business. Your
continued support is greatly appreciated.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

Relations with Our Employees
Our basic personnel management policy focuses on continuously creating human resources who are capable ofputting the Five Principles of the Furukawa Electric Group Credo into practice on their own initiative.

Achieved
Partially achieved

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

Fostering and strengthening
global human resources- I m p l e m e n t a t i o n o f G l o b a l
Deveropment Program (GDP)FY2015Results / Achievement-W e carried out GDP training andnewly designed training programs inaccordance with the plan.

- Conduct newly designed training

Strengthening Monozukuri
capabilities- Visualization of plans to strengthen
Genba-ryoku capabilities-R oll out genba-ryoku reinforcement
training to manufacturing staff- Increasetraining participation rate
at Group companies

Supporting diverse ways ofworking and work-life balance・- F ormally introduce system offlextime without core hours

Not achieved-W e completed formulation of aplan to strengthen Genba-ryoku
capabilities for all business divisions.
- T he attendance rate for Genbaryoku training at Furukawa ElectricCo., Ltd. was 56.5%, which met ourtarget.
- S taff training was completed asplanned for junior and middleranking staff.
- Genba-ryoku training for affiliatedcompanies started at FEIC Kyushu(Note).

-W e completed introduction of thecoreless flextime system.

Targets

Fostering and strengthening global
human resources- Implementation of GDP-E xecut ion of Global Challenge Program(GCP) for dispatching junior employees
overseas
Strengthening Monozukuri capabilities- V isualization of plans to strengthen
Genba-ryoku capabilities-D evelopment of training for Monozukuri
staff-D evelopment of Genba-ryoku training
at affiliated companies
Supporting diverse ways of working
and work-life balance- Introduction of system to allow nursing
leave to be taken in half-day units.
- In t r o d u c t i o n o f s y s t e m t o a l l o w
accumulated leave to be taken in halfday units for the purposes of nursing
children(Note) FEIC: Furukawa Electric Industrial Cable Co., Ltd.

Message from the General Managers
Taizo Matsumura

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

In order for Furukawa Electric Group to succeed andachieve sustainable growth in a rapidly-changing andglobally-competitive landscape, it is important that we“foster tough human resources” capableof overcoming numerous challenges
and “build a collaborativeenvironment” with a view toenhancing our cross-organizational
strength.
For this reason, we have
implemented new initiatives,
including FM-Career
Design (a personnel
system that encourage
individuals with the skills
and desire to take on

new challenge by using career-building throughsystematic placements and fluidity in human resourcesin order to promote the revitalization of organizations
which can enhance the creation of innovation ideas) and
the Global Challenge Program (GCP; a program thataims to promote overseas experience among junioremployees).
As we seek to strengthen Group Global management,
it is essential that individual employees with diverse waysof thinking, skills and backgrounds exchange honest
opinions in a free and open manner, irrespective of traits
such as age, gender or nationality, and that they act withtrue motivation. Moving forward, by actively promoting
diversity management we intend to accelerate efforts tobuild an atmosphere and culture that allow diverse
human resources to display their true strengths.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

21

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

Targets and Results (Social Contribution)

Achieved

Partially achieved

FY2014
Targets

Not achieved

FY2015Results / Achievement

Invigorate social contribution
activities-W e introduced case studies and provided
information via the intranet and website.

・- In t r o d u c e a c t i v i t y c a s e
studies and continue toprovide information-W e recognized Furukawa Electric groupcompanies’ social contribution activities
by presenting the CSR Awards.

Targets

Implement new programs that can beutilized on a continuous basis.

The Message from the GM (of CSR Department) can be found in the CSR Management section.

CSR Award (FEAP)

Plant tour for neighborhood
residents

Trout fishing festival

Plant tour for shareholders

Furukawa Innovation Expo 2013 (Brazil)

Please visit our website for more information.
http://www.furukawa.co.jp/english/csr/index.htm

22

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

Major Products and Services
Telecommunications

Metals

Optical fiber cables / Metal communication
cables / Semiconductor optical devices/ Electronic appliance wires / Opticalcomponents / Network equipment /Optical fiber cable accessories andinstallations / CATV system / Radio
products, etc.

Energy and Industrial Products

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

Light Metals

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

Electronics and Automotive Systems

Aluminum plates / Extruded aluminumproducts / Casting products / Forgedproducts / Processed light metal
products, etc.

Services and Others

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

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

Since our founding in 1884, we have worked to create the technologies and products that society requires. We consider it our
mission to contribute to the realization of a sustainable society. We will continue to keep our eyes on the future as we work to live
up to the expectations and trust invested in us by society.

Furukawa Electric Group Philosophy
Corporate
Philosophy

Drawing on more than a century of expertise in the development andManagement
Philosophy

With an eye to the future, the Furukawa Electric Group management team pledges to:fabrication of advanced materials, we will contribute to the realization of asustainable society through continuous technological innovation.

- Live up to the expectations and trust invested in us by society, with fairness and integrity.
-A pply the sum total of our expertise to satisfy our customers and grow with them.
- Continuously strive to achieve world-class technological innovation, and transform
ourselves in every area of endeavor.
- Nurture human resources at every level, so that we can become a more diverse andcreative organization.

Group Credo

1. Maintain high ethical standards, and value honesty and integrity above all.
2. Continually improve, innovate, and lead, in every area of endeavor.
3.	Take a hands-on approach that addresses the reality of every situation - in the office,at the factory, and on site.
4.	Be proactive - take the initiative and work with others, persevering until a solution isfound.
5.	Maintain open channels of communication between departments and divisions, sothat we can share ideals and help each other grow.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

23

Third-Party Opinion
Mr. Toshihiko Goto
Chief Executive Officer, Sustainability Forum Japan
Board Member, Global Compact Network Japan, Founder, Japan Sustainable Investment Forum.
Also, Chairman, Sustainable Management Forum of Japan, Senior executive director, The Japan Society for
Global System and Ethics, and a member of some other academic societies.
National committee member for ISO/TC207, SCI, SC4, A judge for the Environmental Communication Awardby the Ministry of the Environment, Japan Government (MoE) and a member or the convener of some othercommittees of MoE. He wrote many books and articles.
He had graduated from the Tokyo University, Faculty of Law.

Over almost a decade Furukawa Electric has been beset

version of the Stewardship Code 4). I will omit the details, but

by a number of problems that might have damaged its

essentially these developments are linked by the need for a

reputation in society or caused its employees to lose heart.

long-term perspective and long-term success. In the world ofHowever, the company has succeeded in business for 130

investment, outside Japan there has already been a major

years because the hard work of its managers and employees

shift towards ESG investment 5) from a long-term perspective.

has allowed it to continue providing added value to society in

From this perspective, the latest report could be seen as asome shape or form, supported by some good luck along

conservative CSR report and from next year onwards there is

the way, such as a steady supply of raw materials.

a need to incorporate a new direction with a focus on a long-

The 21st century has been referred to as the post-industrial

term perspective and long-time success. This would also

age 1) and the focus now has switched to knowledge. Rather

assist the disclosure of information targeting ESG investment,

than depending on a steady supply of raw materials, thewhich prioritizes a long-term perspective.

foundations for the next giant leap forward will be built
Incorporating a long-term perspective into the report isthrough continued creativity and innovation.
I believe that “proactive CSR” involves revitalizing andreforming these foundations and management systems.
In 2010, Keidanren made a major revision to its Charter for“easy to say”. However, it is not easy to incorporate
perspectives from 2030 or 2050. However, I am convincedthat taking on this challenge will lead to corporate innovation.

Corporate Behavior and removed the description of

I believe it is important to think about how your own

corporations as “economic entities designed to pursue

company will develop by 2030 and 2050 and to imagine theprofits”, which had been an ever-present concept until that

ideal future vision for your company under the following

time. It replaced this with the role of creating added value

environmental restrictions: by around 2030, procurement ofand generating employment. Creating profits is essential tomineral resources will become difficult and by 2050 mineralachieving this role, but profits are the means and not theresources will be almost depleted or extremely expensive;
Japan will need to have made CO2 reductions of at least

ultimate goal.
Happily, Furukawa Electric’s founding spirit, basic

80%; the population of Japan will fall below 100 million andphilosophy, management philosophy and action guidelines

Japan will become a super-aged society; South Korea andare all in agreement with the revised Charter for Corporate

China will also become aged societies.

Behavior. The challenge lies in making this part and parcel of

For this reason, I believe it is necessary to carry out athe company’s organization and corporate culture, and I“backcast” from these dates and consider what needs to bebelieve innovation is necessary to achieve this.

achieved by 2030 or 2020. In the medium-term management
plan for next three years, it will be essential to draft a target

The Sustainability Report could be described as a finishedversion of what previous reports have aimed for. Its focus isplan that includes not only forecasts but also “backcasts”
from the long-term vision.

on the company’s track record and its aims and goals overthe next year or two. However, during FY2014 four major

When we consider the long-term vision, it goes without

developments occurred in relation to the report, as follows:

saying that some items require long-term policies and plans.

the EU issued a revised directive draft strengthening

For example, when procuring raw materials there is a need tocompanies’ obligation to disclose non-financial information;

consider CSR from the highest point upstream, in other

GRI issued the G4 Sustainability Reporting Guidelines ; thewords excavation. In order to do this, there is a need for

IIRC announced its Integrated Reporting Framework 3); andpolicies and plans that take into account matters such as

the Financial Services Agency published the Japanesebiodiversity and human rights.

2)

24

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

There is also a need to develop long-term policies andcurrently being discussed require business solutions, andplans for the development of alternative raw materials, andthis will also lead to opportunities for business. This requires

for reuse and recycling. When we consider Japan’s

a long-term and broad perspective.

population trends, diversity policies are an essential part ofhuman resource policies. Without long-term policies andLuckily, I have learned from seeing the commitments madeplans, devotion and hard work alone will not be enough to

by Furukawa Electric’s top executives and from attending

impress investors.

hearings that the company recognizes the issues I have

Companies around the world have shown a great deal ofraised here and is making efforts to make the necessaryinterest in the United Nations’ Post-2015 Development

preparations. All that is left now is to put this into practice.

Agenda 6). All of the twenty or so targets to 2030 that are1) Industrial capitalism	This refers to capitalism that creates profits through industrial
activities based largely on the industries established as a resultof the industrial revolution. It is widely argued that in future thesource of profits will shift away from “goods” and towards “people(knowledge)”.

4) Financial Services Agency’s Japanese version of the Stewardship Code	This is the name given to the Principles for Responsible Institutional Investors
published by the Financial Services Agency in February 2014. The Principles
have been given the subheading “to promote the sustainable growth ofcompanies through investment and dialogue”.
http://www.fsa.go.jp/en/refer/councils/stewardship/20140407.html

2) GRI’s G4
	The fourth version (G4) of the globally applied CSR reporting
guidelines published by GRI (Global Reporting Initiative).
https://www.globalreporting.org/

5) ESG investment
	This is a form of investment that prioritizes non-financial information, including
E (Environment), S (Society) and G (Governance), as a way of measuring ofcorporate value in addition to financial information. It is a form of investment
based on the idea that ESG is a risk factor for companies and at the same time it
can provide returns by improving corporate value in the long-term.

3) IIRC Integrated Reporting Framework
	The Integrated Reporting Framework was published in December
2013 by the IIRC (The International Integrated Reporting Council)
after many years of discussions. The framework encourages
reporting on long-term development using integrated financial
and non-financial information.
http://www.theiirc.org/

6) United Nations’ Post-2015 Development Agenda	As the deadline for achieving the United Nations Millennium Development Goals(MDGs) approaches, a broad debate has begun with a view to formulatinginternational development targets after 2015 (post-2015). Discussions havebeen carried out not only at the United Nations but also involving industry andNGOs. The plan is to adopt the goals at the United Nations General Assembly in
September 2015.
http://www.mofa.go.jp/policy/oda/mdg/

Furukawa Electric 130th anniversary logo

I

n 1884, 130 years ago, the company began smelting copper in Honjo, Tokyo and manufacturing
electric cables in Takashima-cho, Yokohama. In that same year Japan’s first ever light-bulb was lit. It

was truly the dawn of the age of electricity.
Furukawa Group's founder, Ichibei Furukawa, was very friendly with Eiichi Shibusawa, known as thefather of Japanese industry. They are said to have worked together to build Japan with the shared aim of“making Japan brighter”.
We have inherited this mission from them and we will continue seeking to “make the world brighter” as aunique player with diverse material technologies in fields such as infrastructure and motor vehicles.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST25

Scope of This Report
Period Covered

Source Guideline

Fiscal 2014, from April 1, 2013 to March 31, 2014
(note) Includes selected information on past initiatives andactivities during fiscal 2015.

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

Publication Timeframe

Accuracy of the Data Disclosed in This Report

Publication date: August 8, 2014
Planned publication of next edition: August 2015

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

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

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

Sustainability Report(Digest version)
Nonfinancial

Financial- CSR website- IR website- Sustainability reports- Financial statements- Corporate governance reports- Securities reports/ quarterly reports- Summary of accounts, etc.

Details

Editorial Policy
This report aims to inform all stakeholders about the philosophy
and measures of Furukawa Electric Group in relation to its businessactivities, management, the environment and its relationship withsociety. What’s more, this year we have compiled a digest version
containing a collection of articles with strong and importantmessages. When editing the digest version, we have tried to provide
information in a concise and clear manner, in a way that targets as
broad a readership as possible.
We have been disclosing the report under the CSR section of the
Furukawa Electric website instead of publishing a booklet for it. We
also provide the digest version (PDF file) on the website so that you
can download it.

Long-term perspective

Digest version
PDF file
StrongmessageComprehensive
coverage

Full report(Website)

Annual perspective

To the Sustainability Report 2014 page
http://www.furukawa.co.jp/english/csr/report/index.htm

Contact us
https://www.furukawa.co.jp/cgi-bin/inquiry.cgi?id=csr_en(Inquiries about CSR)26

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2014 DIGEST

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