Initiatives for the Environment
The Furukawa Electric Group is striving to reduce its environmental impact
throughout the product lifecycle.

Special Feature 1

17

Energy / Smart Grid Development

19

Environmental Management

20

Environmental Education

21

Material Flow

22

Targets and Performance

23

Environmentally Sound Products

24

Biodiversity Preservation

25

Environmentally Conscious Production

26

Chemical Substance Management Activities

27

Environmental Risk Management

List of companies participatingin the liaison meeting forconsolidated environmental
management(Fiscal 2011)
Access Cable Company
Asahi Electric Works Co., Ltd.
Inoue Manufacturing Co., Ltd.
NTEC Ltd.
FCM Co., Ltd.
Okano Electric Wire Co., Ltd.
Okumura Metals Co., Ltd.
Kyowa Electric Wire Co., Ltd.
Furukawa Electric Ecotec Co., Ltd.
Shodensha Co., Ltd.
Seiwa Giken Inc.
Totoku Electric Co., Ltd.
FITEC Corporation
Furukawa Automotive Systems Inc.
Furukawa Sangyo Kaisha Ltd.
Furukawa C&B Co., Ltd.
Furukawa Industrial Plastics Co., Ltd.
Furukawa-Sky Aluminum Corporation
Furukawa Precision Engineering Co., Ltd.
Furukawa Techno Material Co., Ltd.
Furukawa Electric Advanced
Engineering Service Co., Ltd.
Furukawa Electric Industrial Cable Co., Ltd.
The Furukawa Battery Co., Ltd.
Furukawa Logistics Corporation
Furukawa Life Service Inc.
Miharu Communications Inc.
Riken Electric Wire Co., Ltd.
Furukawa Magnet Wire Co., Ltd.

Detailed data is provided in our Data Book (PDF).
http://www.furukawa.co.jp/english/csr/report/index.htm
Furukawa Electric Group CSR Report 201116

Initiatives for the Environment
Special Feature 1 Energy / Smart Grid Development

Developing Smart Grid Technology
to Bring About a Low-Carbon Society

Furukawa Electric Industrial Cable, Furukawa Battery,
Furukawa Power Components, and VISCAS Corporation,
are engaged in developing and marketing smart
grid-related equipment.
Nonetheless, in the past there was no structure for
integrating and fusing the technologies dispersed among
the divisions of Furukawa Electric and our affiliates. This
made it impossible to fully utilize the technologies we had
worked so hard to develop. Therefore, we established the
Smart Grid Business Development Department, whichanswers directly to the President, so as to integrate theefforts of each Furukawa Electric division and our affiliates
and fully exploit the potential of the Group. Henceforth, theSmart Grid Business Development Department will be at
the center of our efforts to bring together our Group’s
technologies so as to offer comprehensive solutions andrealize a low-carbon society.

Smart grids employ IT technology to efficiently control andadapt different power sources for use in next-generation
power grids and technologies. This means enabling the
combination of renewable power sources, such as solar
and wind, with power from sources used up to now, suchas fossil fuels and nuclear, as well as with the surplus
power generated through home solar power systems.
Large-scale investment in smart grid-related businessbegan with the Green New Deal launched by the US
government in 2008. There is a growing trend forlarge-scale projects worldwide, such as the massive
DESERTEC solar power project for sending power from the
Sahara to Europe, as well as major power grid investment
in China conducted by the State Grid Corporation of China.
The Furukawa Electric Group brings together a wide
variety of smart grid technologies, such as powertransmission, superconductivity, data transmission, andpower storage, which we are developing in accordance withsociety’s needs so as to bring about a low-carbon society.

Smart Grid Business Development Structure
Smart Grid Business Development Department General Manager

Newly-Established Smart Grid Business
Development Department

Secretariat
CMO Division

The Furukawa Electric Group offers a wide variety oftechnologies useful in building smart grids, such as powertransmission, superconductivity, data transmission, power
storage, thermal management, sensor, power electronics,
EV charging station, and other technologies. The various
Furukawa Electric companies and laboratories, as well as
our affiliates such as Asahi Electric, Inoue Manufacturing,

Next-Generation Power Supply System

Products

CorebusinessesCore
Organizations

Power
distribution

Energy andIndustrial
Products
Company

Flow of electricity

Superconducting
fault current limiter

17 Furukawa Electric Group CSR Report 2011

Superconductive cables

Power &
SystemLaboratories
VISCAS

EV

Automotive Parts Business
Division Technology Department
R&D Center for Automotive
Systems & Devices
Next-Generation Vehicle Pj Team

Next-generation automatic meter reading
Radio antenna

Information control

Electricity sensor using
optical technologies

The
Furukawa
Battery

Superconductors

Flow of information

Electric vehicle

HousesSuperconductivity fault
current limiter

Batteries for power storage

Telecommunication
Company

Batteries

Optical transmission devices and cables fornext-generation power distribution automation
Power electronics equipment

Offices
StorageTransmission

VISCAS

Aerial line
Power cables

Mega solar (photovoltaic system)• Information on electricity supply
is transmitted

Research & Development Division Planning Department

Fuel cells
Household photovoltaic
systemIndustrial plants
PlantsConcentrated
power supply

Thermal generation system• Controlled to meet demand• Covers deficiency in new energySmart Grid Business Development Department

Power & System Laboratories, R&D Division

When considering smart grids it isnecessary to remain conscious of boththe “high” and “low” perspectives. The“high” perspective means taking thepoint of view of humanity and theplanet. I view “smart grids” as the key
phrase for altering the relationship
Kazunori Nakamura
between humanity and the energy it
Corporate Senior Vice
President & Chief
consumes. When we consider theTechnology Officer
issues and measures for dealing withthem that have arisen over mankind’s
history of energy acquisition, we canforecast future trends.
On the other hand, the “low” perspective means
matching actual needs with our activities, so as to unearth
issues that won’t be found by taking the long or bird’s-eye
view. These issues can be matched up with our Group’sbusiness by taking a flexible approach to them. I believe weshould create a strategy that considers both the “current
issues” and the “forecast for the future” that we discover.

The PS Labs (Power & System
Laboratories) were established in
2010, and are the newest labs at
Furukawa Electric. We engage in thefollowing at the PS Labs: 1. Offer
solutions using world-leading
technologies such as
Yusei Shirasaka
superconductivity and storage
General Manager,
Power & Systemsystems; 2. “Visualize” smart grids
Laboratories,and smart cities using fiber optic
R&D Division
networks; 3. Contribute to realizing a
low-carbon society by developing
various kinds of cables and parts corresponding toresource conservation and new kinds of energy. Smartgrids match up with the geopolitical environment, and arebeing developed in a variety of forms geared toward
particular countries and regions, such as wind power,
geothermal, photovoltaic, and solar heat. At the PS Labs
we work every day to unearth unique technologies, taking a
global perspective in offering the world systems that meetthe particular needs of each country and region.

Development of ultra-high voltage
cables (Shenyang Furukawa Cable)

Battery development (Furukawa Battery)

Superconductive cable development(Power & System Laboratories)

Furukawa Electric Group CSR Report 201118

Initiatives for the Environment

Environmental Management
The Furukawa Electric Group will engage in comprehensive environmental conservation, including biodiversity
preservation, as provided in the Basic Environmental Policy (revised in April 2011).

Basic Philosophy

Furukawa Electric Basic Environmental Policy

We, the employees of the Furukawa Electric Group, recognize that preservation of the global environment is a serious
issue confronting the international community, and we pledge to contribute to a sustainable future for the world
through technological innovation that utilizes our strength in advanced materials.

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

Environmental Management
Promotion Organization
The Furukawa Electric Group has established the Central
Committee for Environmental Management. The Committee,
which is headed by the Chief Social Responsibility Officer(CSRO) and answers directly to the President, is convened fourtimes annually to formulate the environmental managementtargets for the entire Group and follow up on their status.
The key measure for the prevention of global warming is the
reduction of CO2 emissions. Therefore, we have established theCommittee for Reduction of GHG Emissions and the Working
Environmental management promotion organization
President

CSRO: Chairperson
Central Committee forEnvironmental Management

Committee for Reductionof GHG Emissions

Committee for Development ofEnvironmentally Sound ProductsGroup for Reducing GHG Emissions under the auspices of
the Central Committee for Environmental Management. We
have also created the Working Group for the Promotion ofEnvironmental Performance Indices, which uses life-cycle
assessments (LCA) to make product CO2 emissions visible.
Also, in April 2011 we consolidated the bi-annual Liaison
Meeting of Consolidated Environmental Management foraffiliates and the Committee for Consolidated Environmental
and Green Product Management to form the Group
Environmental Committee. This Committee meets quarterly
to conduct target management and share information, withthe goal of integrating and strengthening activities for unifying
Group targets.
Each of Furukawa Electric’s seven manufacturing
Works and all of our domestic affiliates that participate inconsolidated environmental management are in the process ofacquiring ISO14001 international environmental management
certification. Our overseas affiliates are also proceeding tocollect data and construct management systems under theguidance of their controlling companies and business divisions.

Working Group for Reducing
GHG Emissions
Safety and Environment Promotion Department,
CSR Division

Environment Committeeof Works

Environment Committees
of companies andbusiness divisions

Environmental Personnel Meeting
Transport Energy Reduction Committee

Energy Conservation
Committee,
Waste Committee,
Chemical SubstanceCommittee,
Other Expert Committees

Liaison Meeting for
Domestic andOverseas Group Affiliates

Committee forGreen Product Management
Group Environmental Committee
Working Group for the Promotion ofEnvironmental Performance Indices

19

Furukawa Electric Group CSR Report 2011

Environmental Accounting
The Furukawa Electric Group conducts environmental
accounting in conformance with the environmental accounting
guidelines published by the Ministry of the Environment. The
Furukawa Electric Group’s overall environmental conservation
costs in fiscal 2011 came to ¥2.2 billion in investment and¥6.6 billion in expenses.
For details please visit our homepage.
WEB

http://www.furukawa.co.jp/english/csr/enviroment/
accounts.htm

Initiatives for the Environment

Environmental Education
The Furukawa Electric Group seeks to increase employee awareness of environmental conservation through measures
such as environmental education and the Environmental Awards System.

Environmental Education System
and Environmental Education Programs
The Furukawa Electric Group conducts a variety ofenvironmental training programs so as to improve theenvironmental awareness of employees and provide theknowledge and skills necessary to EMS activities. Our
environmental education also offers the latest information
about environmental regulations.
In fiscal 2011, 38 employees attended our ISO14001
Internal Environmental Auditor Course, 22 attended ourFGMS* Auditor Course, and 36 participated in our EMS
Upgrade Seminar.
* Furukawa branding Green products Management System

Environmental education programs
Category ofeducational
training

Content

Education for new
General environmental
recruits (once a
protection activities
year, mandatory)
EMS activities(as needed,
mandatory)

New
Generalrecruits employees

MidManagecareer
ment
employees

Training for
new recruits

Environmental Policy andpurpose, goals and generalknowledge pertaining to theenvironment

Requirements of ISO
ISO14001-related
standards, environmental
education (two-day
regulations, procedures
course) (twice afor internal environmental
year, voluntary)
audits, various drills
One-day brushup course (once a
year, mandatory)

Trends in environmental
regulations, various drills tobrush up auditing skills
Environmentallysound design

Environmental
Environmental regulations
subjects (asneeded, voluntary) Control of chemical
substances contained in
products
Consolidated
environmental
management
seminars

Seminars by experts onpriority issues

New Environmental
Awards System
The Environmental Awards System was newly establishedin fiscal 2011 to increase employee motivation concerning
environmental conservation efforts. There are three award
categories within Furukawa Electric itself: Products, Activities,
and Anti-Global Warming Efforts. Our affiliates also provide
commendations for comprehensive environmental activities.

Award for Efforts to Increase Sales ofEnvironmentally Sound Products
We started the Award for Efforts to Increase Sales ofEnvironmentally Sound Products in recognition of theimportance of environmentally sound product sales and topromote their expansion. Each company is ranked according
to the annual number of registrations and average sales ratioof environmentally sound products, with the top-ranking
companies each year receiving awards.
In fiscal 2012 we examined the fiscal 2011 results, anda telecommunications company was selected. The award
ceremony was held in July.

Anti-Global Warming Award
In recognition of the importance of environmentally soundbusiness practices, we promote global warming initiatives bypresenting awards for the best of the efforts made among thebusiness divisions. There was little change in the amount ofinvestment expenditure or the scale of the initiatives, and wecontinued to execute a variety of activities on a continuous
planned basis. We put out a call for superior results among thecompanies, business departments, manufacturing departments,
worksites, project teams, etc. in the following five categories: 1.
Technology development; 2. Introduction of anti-global warming
technology; 3. Practical measures; 4. Environmental education /awareness promotion; 5. Global contribution. The Environmental
Award Examination Committee quantifies the results for those
activities over the most recent one-year period as a rule, anddetermines the recipients of the Superior Excellence Award,
the Excellence Award, and Strong Effort Award while also
considering degree of difficulty and sustainability.
There were eight entrants in fiscal 2012, with two granted
the Excellence Award and two the Strong Effort Award. The
award ceremony was conducted in July.

Environmental Group Activity
Presentation Meetings
We began holding our Environmental Group Activity
Presentation Meetings in December 2010 to promote a varietyof environmental activities. This is a venue not only for awarding
large-scale activities involving facility investment, but also thedaily efforts made throughout the Group and innovative,
unique efforts.
The first Environmental Group Activity Presentation
Meeting was held at the Head Office, with presentations
made by seven groups selected from seven manufacturing
facilities: Nikko, Copper Foil, Chiba, Yokohama, Hiratsuka,
Mie, and Copper Pipe. As
a result of strictly impartial
judging by the 10-person
committee, the Copper Foil
Manufacturing Works won
the Superior ExcellenceAward for its CO2 emissions
Environmental Group Activity
Presentation Meeting
reduction efforts.

Furukawa Electric Group CSR Report 201120

Initiatives for the Environment

Material Flow
The Furukawa Electric Group strives to reduce various kinds of environmental impact, resource use and energy
consumption in the course of conducting business.

Environmental Impact of the Furukawa Electric Group in Fiscal 2011
The Furukawa Electric Group has been expanding our environmental impact data collection range since fiscal 2011, adding 39
overseas affiliates along with Furukawa Electric and 28 domestic affiliates.

Furukawa Electric

INPUT
Category

Domestic

Overseas

Raw materials

Seven works,

Copper

256,164

139,592

tons

Aluminum

313,507

28,545

tons

Iron

5,801

6,801

tons

Nickel

973

—

tons

Chromium

191

—

tons

Manganese

1,543

—

tons

Magnesium
Other metals

5,396
49,929OUTPUT
Category

Unit

Domestic Overseas

Unit

Waste
23,351 tons

Total waste generated

61,555

Final waste disposal

1,359

5,052 tons

Recycling amount55,78813,293 tons

CO2

846,552

448,323 tons-CO2

tons

SOx

110

— tons

—

tons

XOx

690

— tonsSoot

47— tonsVolume emitted

218— tonsVolume transferred

246— tons—28 domestic
affiliated companies
and39 overseas
affiliates

Atmospheric emissions

Rubber

51

—

tons

Glass

142

623

tons

Plastic

34,76828,497

tons

Energy18,838

6,712

TJElectricity (purchased electricity)

1,098,223

462,780

MWhElectricity (hydroelectric power)

159,731

22,063

MWh

Wastewater

23,6871,084 1,000 m3

Electricity (solar power)

11

—

MWh

Public waterways

22,498507 1,000 m3

44,261

1,532

1,000 m3

Rivers

20,828282 1,000 m3

1,666

0 1,000 m3

3

225 1,000 m3

Sewer

1,189

577 1,000 m3

City gas

Chemical substances

LPG

40,962

1,648

tons

Sea

Heavy fuel oil A

11,249

1,153

kl

Other

Kerosene

17,744

6

kl

Light oil

624

357

kl

BOD

46

— tonsWater

26,1962,240

1,000 m3

COD

33

— tonsSS

34— tons

Product shipping volume894,370— tons

Product collection volume

5,483— tonsType of cable

4,963— tonsPlastics

438— tons

Metals82— tons44,526

166,746 tons

Industrial water

19,42972

1,000 m3

Groundwater

5,563

592

1,000 m3

Tap water

1,204

1,576

1,000 m3

60,169—Chemical substances
Volume handled*1

tons

Packaging*2
Cardboard

822

—

tons

Wood

49,279

5,562

tons

Plastic

399

—

tons

Paper

379

621

tons

84

—

tons

Paper

*3

*1 PRTR-listed substances*2 Cardboard, wood, plastic, and paper used in product shipping*3 OA paper, copy paper, etc. used at plants and offices

21

Furukawa Electric Group CSR Report 2011

Volume of water
recycled and reused

Initiatives for the Environment

Targets and Performance
The Furukawa Electric Group is proceeding with environmental conservation activities such as the 2012 Medium-Term
Plan for Environmental Preservation Activities and the annual plan based upon it.

The Furukawa Electric Group Annual Targets and Performance for Fiscal 2011
The Furukawa Electric Group set annual targets for activities
in fiscal 2011 as well in accordance with the 2012 MediumTerm Plan for Environmental Preservation Activities. In
addition to developing these activities at all of the Furukawa
Electric Works, we also made progress in consolidating theoverall Group targets and activities by reflecting them in theenvironmental management systems at each affiliate throughthe efforts of the Group Environmental Committee.
The Group hit or exceeded many of our targets as a resultof these activities, such as achieving a 17% reductionof greenhouse gas emissions in comparison to the benchmark
year of fiscal 2001 for the Group overall, beating our 13%
reduction target. Nevertheless, we failed to hit our targets in a
number of categories, and we will redouble our efforts to do sofrom fiscal 2012 on, with the goal of fulfilling our 2012 MediumTerm Plan for Environmental Preservation Activities for theGroup overall.

The Furukawa Electric Group Annual Targets and Performance for Fiscal 2011
Activities

Environmental preservation activity targets for fiscal 2011

Waste reduction activities

Activities to prevent
global warming

Chemical substancemanagement activities
Green activities
Eco-design activities
Biodiversity preservation

95% or more recycling rate
13% reduction in greenhouse gas emissions compared with fiscal 2001 level
3% reduction in energy consumption compared with fiscal 2008 level
1% reduction in specific energy consumption for manufacturing compared withthe previous fiscal year
4% reduction in specific energy consumption for transportation compared withfiscal 2007 level (1% reduction at affiliates compared to the previous fiscal year)
36% reduction in emissions of volatile organic compounds compared with fiscal
2005 level
Procurement rate for 60 general-purpose products: 100%
Target number of affiliates for expansion: 5
Sales percentage of environmentally sound products: 20% or more
Formulation of the Furukawa Electric Group policy
Development of a Companywide activity system and formulation of guidelines

Performance in fiscal 2011
Furukawa Electric
Rating Affiliated companies

Rating96%
17.9% reduction
7.7% reduction

A
A
A

88%
17.2% reduction
4% reduction

CA
A

Achieved at 8/16 Divisions

C

Achieved at 12/16 Works

C

10.5% reduction

A

Achieved at 6/11 Works

C

43% reduction

A

37% reduction

A
*2

99%
A
Achieved at 8/9 companies
A—
Expanded to 9 affiliates*1
20.9%
A
Underway at 5 companies
Policy formulated and posted on our Webpage
Under examination

A
—
A
A
B

*1 Companies that use their own methods for data compilation are also included in the count as of fiscal 2011.
*2 Including affiliates that have set their own targets.

The Furukawa Electric Group Annual Targets for Fiscal 2012
Fiscal 2012 is seen as the year for “laying the groundwork”
for fulfilling the 2012 Medium-Term Plan for Environmental
Preservation Activities. Therefore, we newly established the“zero emissions achievement ratio” for detailed categories
of waste reduction activities and have moved forward withzero emissions activities, setting 80% or better as our zero
emissions target for all affiliates.

Also, we designated all VOCs as subject to our chemical
substance management activities (VOC emissions volume),
and also revised our targets by making hydrocarbon-based
detergent subject to data compilation. We also plan to examine
action models for biodiversity preservation as well as settingout guidelines for biodiversity impact assessment.

The Furukawa Electric Group Annual Targets for Fiscal 2012
Activities
Waste reduction
activities
Activities to prevent
global warming

Recycling rate
Group zero emissions achievement ratio
Greenhouse gas emissions
Energy consumption
Specific energy consumption for production
Specific energy consumption for transportation

Chemical substance
VOC emissions volume
management activities
Green activities

Eco-design activities

Environmental preservation activity targets
for fiscal 20122012 Medium-Term Plan for Environmental
Preservation Activities

97% or more (95% or more for affiliates)
Affiliates zero emissions achievement ratio: 80%
Reduce by 14% compared to fiscal 2001
Reduce by 4% compared to fiscal 2008
Reduce by 1% compared to the previous fiscal year
Reduce by 5% compared to fiscal 2007 (Furukawa Electric only)
Furukawa Electric: Reduce by 10% compared to fiscal 2008*1
Affiliated companies: Reduce by 42% compared to fiscal 2005*2
Procurement rate for 60 general-purpose products: 100%
Expand to affiliates
Sales ratio for environmentally sound products:
25% or greater (Furukawa Electric only)

99% or more recycling rate
Affiliates zero emissions achievement ratio: 90%
Reduce by 15% compared to fiscal 2001
Reduce by 5% compared to fiscal 2008
Reduce by 1% compared to the previous fiscal year
Reduce by 6% compared to fiscal 2007 (standalone only)

Conduct LCA for all important products
Biodiversity preservation

Establish biodiversity impact guideline
Examine models for biodiversity action

Optimal management of the quantity of chemical
substances consumed
Expansion of general purpose green products
Increase in the development and sale of environmentallysound products
Improvement in product environmental performanceindices and increase in sales
Formulation of guidelines and establishments of systems*1 Revised by adding “NS Clean” (hydrocarbon-based detergent ) (Subject: All VOCs)*2 As has been the case up to now, mainly two substances (toluene and xylene)
Furukawa Electric Group CSR Report 201122

Initiatives for the Environment

Environmentally Sound Products
The Furukawa Electric Group certifies and registers low-environmental impact products as “environmentally soundproducts,” and promotes their use.

Environmentally Sound Products
and the e-Friendly Accreditation System

Visualization of Environmental
Performance (Performance Indexing)

The Furukawa Electric Group certifies and registers as“environmentally sound products” those products withimproved performance compared to existing products in the
categories of materials and parts purchasing and manufacture,use, distribution and disposal.
In addition, we have created an “environmental mark,”
e-Friendly, which is placed on those products and as well as incatalogues, so our customers
can easily recognize
environmentally
The e-Friendly marksound products.

The Furukawa Electric Group has introduced Life-Cycle
Assessments (LCA) to provide “visualization” indicators forthe environmental performance of our main products, for CO2
emissions and other factors.
We calculated the CO2 emissions for 17 product linesof each division in fiscal 2011, and worked on establishinga Product Category Rules (PCR) Guideline and setting up
an assessment system. We plan to do calculations for an
additional 35 product lines in fiscal 2012, and establish the
PCR Guideline. This will be expanded to all of our main
products by fiscal 2013, and incorporated in our management
indicators and results assessments, as well as in numericalindicators used in the next Medium-Term Plan and R&D.

Environmentally sound product categories

Data Book

Category

Content

Prevention of global
warming

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

Zero emission

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

Elimination ofmaterials that havean impact on
the environment

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

Energy savings

Products that result in overall energy savings by such means as
reducing the use of raw materials and components as well as
scarce resources, featuring enhanced longevity, allowing easierproduct and component maintenance, and reducing the use forresources in packaging.

Ex.: LCA Calculation

Semiconductor laser
module used in opticalcommunications
Product type/use

980 nm wavelength and1,480 nm wavelength opticalcommunications pumping
laser module

Calculation range

Results and Future Targets forEnvironmentally Sound Products

Our LCA calculation covers every stage of product life, fromsubstrate wafer procurement through laser module
manufacturing, distribution, use, and disposal.

Our Group calculates the ratio of total sales of environmentallysound products each year as we seek to expand their sales.
Our target for fiscal 2011 was 20% or better, which we
exceeded at 20.9%. Our goal for fiscal 2012 is 25% or better.

Calculation Results

Number of environmentally sound products registered andratio of total sales (Group overall)

Ratio of CO2 emissions at procurement andmanufacturing stages

No. registered

100

20.9

80

20
0

23

81

6

56
2010

Furukawa Electric Group CSR Report 2011

Manufacturing (Plant C)

25

33%

2011

Material procurement
8%

15

Manufacturing (Plant A)

10

26%

5

16
2009

(%)

20

14.4

60
40

Sales ratio

Our trial calculations showed that 92% of the total impact
occurs at the manufacturing stage, so our future CO2 emissions
reduction efforts will include measures such as saving energy
during the manufacturing stage.

(FY)

0

Manufacturing (Plant B)
33%

Initiatives for the Environment

Biodiversity Preservation
The Furukawa Electric Group has established biodiversity preservation as a new environmental theme which we are
actively promoting.

Three Important Biodiversity
Effort Categories
The Furukawa Electric Group is promoting biodiversity as oneof our new environmental themes.
The subject of biodiversity was taken up at the Liaison
Meeting for Consolidated Environmental Management held in
November 2010. We established the Biodiversity Promotion
Working Group composed of Headquarters divisions such as
the Management Planning Department, Materials Procurement
Division, Human Resource Development Unit, R&D Division,
Manufacturing Technology Unit, and the CSR Division.
The Working Group proceeded to reformulate our Basic
Environmental Policy to include serious biodiversity efforts.
This Basic Policy was approved by the Central Committee forEnvironmental Management in December, and subsequently
at the Board of Directors meeting. We disclosed it on our
homepage in April 2011.
We also established the following three importantbiodiversity categories to specify our biodiversity efforts, inrecognition of the fact that our business, products and services
are the result of biodiversity, and of our impact, whether
positive or negative, on eco-systems.

Biodiversity Preservation:
Three Important Categories
1. A
 ssess the impact of business practices on ecosystems, and work to minimize the negative
impact and maximize the positive.
2. Promote sustainable resource use in considerationof biodiversity preservation through anti-climatechange measures, resource conservation, andresource re-use, as well increasing efforts to
reduce the use of environmental impact-causing
substances.
3. B
 y raising the consciousness of each individual,
we actively promote biodiversity preservation intandem with society.

Biodiversity-Themed Consolidated
Environmental Management Seminars
There were 39 participants at the Consolidated Environmental
Management Seminar conducted in November 2010, including
27 from Furukawa Electric and 12 from our affiliates. The firsthalf of the seminar consisted in a lecture by a professor entitled“Corporate Biodiversity Efforts from a COP10 Perspective.” In
the second half we held talks with that professor and Furukawa
Electric’s CSRO.

A survey conducted afterward showed that the majorityof participants felt that while the biodiversity theme itself isdifficult to comprehend, they were able to understand thesignificance and importance of the subject, as well as theglobal biodiversity trend. They also felt that the professor gave
easily understood replies with examples in response to theclear questions with deep connections to business practices
asked by CSRO. We will use these results in planning effectivemeans for participants to learn and become more aware of
the environment.

Dr. Naoki Adachi of JBIB discussing “Corporate Biodiversity Efforts from a
COP10 Perspective” with CSRO Sato of Furukawa Electric

Participation in Eco-Products 2010
Furukawa Electric exhibited at the Eco-Products 2010environmental trade show, the largest of its kind in Japan, in
December 2010.
On the day of the show our booth, which was based on ourplastic Hydro-Staff rainwater reserve system, displayed panels
focusing on three sectors and environmental activities: Smart grids,
ultra-high-capacity optical communications, and next-generation
vehicles. In our environmental activities corner we conducted
special PR concerning our environmentally sound products,
recycling technologies, and environmental performance indexingof products using LCA. We also provided demonstrations of ourlatest technologies, such as superconductivity on the trade show
stage. There were many visitors to our booth who showed theirappreciation by pointing out that they gained an understanding of
our environmental efforts.

Hydro-Staff

Furukawa Electric Booth at
Eco-Products 2010

Furukawa Electric Group CSR Report 201124

Initiatives for the Environment

Environmentally Conscious Production
The Furukawa Electric Group is engaging in variety of efforts to reduce the environmental impact caused by our
manufacturing and distribution processes.

Zero Emission Activities

Reducing Greenhouse Gas
Emissions
Initiatives at Works
The majority of the Group’s greenhouse gas emissions consistof CO2 generated from electricity, fuel and other energy
sources. As emissions from manufacturing processes accountfor a large proportion, we work on reducing emissions byincreasing the efficiency of production processes, switchingfuels, replacing equipment with more efficient alternatives,
insulating hot areas and other measures.
Total Group GHG emissions came to 847,000 tons of CO2
in fiscal 2011, a reduction of 17.4% against fiscal 2001 levels.
On a non-consolidated basis, we achieved an equivalent of
246,000 tons of CO2, a reduction of 17.9% compared tofiscal 2001. Data Book
Greenhouse gas emissions
Furukawa Electric(104 tons CO2)120

Affiliated companies

Non-recycled processed waste volumes

90
60

72.5

(Tons)

67.6

70.4

73.3

75.6

26.7

26.6

28.3

28.6

70.6

69.6

66.9

65.7

28.7

28.2

27.1

26.5

Affiliated companies

61.6 60.0
10,00030.0

Furukawa Electric

15,00030
0The Furukawa Electric Group began taking action to reduce
outsourced waste disposal in fiscal 1994, and launched zero
emission efforts in fiscal 2002 for reducing the volume of final
disposal to less than 1% of the total volume of waste by directlytransporting waste from each works to final disposal sites.
As a result of our efforts to meticulously sort waste andrecycle waste acid and sludge into useful resources, the overalllevel of outsourced waste (which was not recycled) disposal
for the Group for fiscal 2011 fell by 61% compared with fiscal
2005 to 5,766 tons. Also, the volume of waste directly sent tolandfills fell by 71% (to 1,359 tons) in comparison to fiscal 2005
for the Group overall, and by 99% for Furukawa Electric alone.
Under the 2012 Medium-Term Plan for Environmental
Preservation Activities, a waste recycling rate (the ratio ofrecycled waste compared to total waste volume) target will be
added beginning in fiscal 2012. Data Book

25.9 24.6
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

(FY)

Note: 1. The emissions coefficients of the respective power companies areused to convert power use volumes.
2. CO2 emissions attributable to hydroelectric power are deemed to
be zero.
3. The portion for the Furukawa Magnet Wire Co., Ltd. Mie Works is
excluded retroactively in 2000, and is included in that for affiliates.

10,997
7,951

5,000
0

3,816
2005

9,041

5,753

4,903

Direct landfill disposal
Furukawa Electric

5,000

In fiscal 2011, total transportation volume for the Furukawa
Electric Group increased 7.7% year-on-year to 476 million tonkilometers. Of this total, Furukawa Electric alone accounts for
135 million ton-kilometers. While this is roughly the same as infiscal 2010, the Company decreased CO2 emissions by 5.6%
year-on-year to 15,300 tons, due largely to enhancements
in loading rates. In addition, Furukawa Electric achieved a
reduction of 10.5% in specific consumption from fiscal 2007.
Long-distance shipping is decreasing and the modal shift
rate is on a downward trend, but we will continue to promote
modal shifts, increased loading rates, joint shipping and similar
measures to decrease the energy used in shipping. Data Book

7,824

2,119
1,552
1,839
863
1,160
1,252
2006
2007
2008
2009
2010
2011
(FY)

(Tons)

Initiatives in Logistics

8,573

Affiliated companies

4,000
3,000

4,121

2,000
1,000
0

2,254

3,113

2,124

1,818

1,619

1,355
504
176
177
271
258
164
4
2005
2006
2007
2008
2009
2010
2011 (FY)Green Activities
Response to Customer Requests

Modal shift and specific consumption (Furukawa Electric only)
Specific consumption(MJ/ton-kilometers)

1.9

10.7

8.5
1.8
1.7

0

25

Rate of modal shift

9.9
9.0

8.0

1.897
1.869

1.833

3.6

2007

4.0

1.742

2008

2009

Furukawa Electric Group CSR Report 2011

(%)

12.0

2010

1.698

2011

(FY)

0

When the Furukawa Electric Group receives a request from acustomer for information concerning chemical substances in our
products, the Group, including affiliates, conducts a thoroughenvironmental examination. We also monitor trends in laws
and regulations covering the chemical substances contained in
products and compile data as it becomes available, allowing us
to respond promptly to customer requests.
Furthermore, by collecting information from each industrialorganization and conducting seminars, as well as participating inresearch groups, we can monitor environmental regulations andsocial issues/items of concern. This enables us to incorporate
customer needs in our environmental conservation targets.

monitor environmental risks that must be reduced, and expand
and implement auditing according to degree of importance.

Expanding Green Procurement toInclude Affiliates

Response to Overseas Regulations(REACH Regulations, RoHS Directive)
SVHCs* in the REACH regulations will henceforth beannounced every six months, with one hundred and several
tens of substances subject to regulation.
In regard to the 31 SVHCs announced in fiscal 2011, theGroup conducted a total of three environmental inspections
corresponding to each announcement.
* Substance of Very High Concern. Use or marketing of SVHCs requires
approval, and manufacturers are liable to submit notification if an SVHC
exceeds 0.1% weight content.

FGMS Regular Auditing
Our FGMS Regular Auditing (control of chemical substances
contained in products) in fiscal 2011 was conducted throughself-checking and examination at 12 supplier plants, five affiliate
plants, and three plants of affiliates’ suppliers. We will continue toWhen the Green Purchasing Law was amended (re-certificationof compliant products) at the end of fiscal 2010, 52 of the 60
categories of general-purpose products purchased for use inGroup offices were compliant with the law. We are currently
engaged in efforts to make all of the products we purchasecompliant with the law, with similar efforts underway at our affiliates.
Also, purchases of items for use in our products are
made based on our Green Procurement Guidelines, with theselection of appropriate items based on the establishment andimplementation status of the FGMS system at the supplierand assessment of data on chemical substances contained in
the products. We continue to implement Green Procurement
in regard to our main suppliers and products purchased, andhenceforth aim to expand it for application to all components.

Initiatives for the Environment

Chemical Substance Management Activities
The Furukawa Electric Group strives for proper management of chemical substances, and conducts planned actions
such as eliminating, reducing, or finding substitutes for chemicals.
during fiscal 2011, while the remaining affiliate is looking into
discontinuing their use. Data Book

Chemical SubstanceManagement Activities
The Furukawa Electric Group promotes efforts to reduce theuse of harmful chemical substances. In particular, we makeevery effort to actively reduce emissions of volatile organic
compounds, which are regarded as one of the causes ofphotochemical smog.
Overall Group emissions (of toluene and xylene) in fiscal
2011 were down 52% compared to fiscal 2005. The emissionsof Furukawa Electric alone (including substances other than
toluene and xylene) had been reduced 43% in comparison to
fiscal 2005. Also, three of the four affiliates that had been usingorganochlorine compounds completely phased out their use(Tons)

261

241

237

200

206
138

122

125

2009

2010

2011

100
0

2005

2006

2007

2008

At the Furukawa Electric Group, we confirm the properties
and applicable laws and regulations regarding all chemical
substances we use during the manufacturing process on theirMaterial Safety Data Sheets and administrate them. We also
monitor the usage volume of chemical substances listed in the
PRTR Law*. Data Book
* Law Concerning Reporting, Etc. of Releases to the Environment of SpecificChemical Substances and Promoting Improvements in Their Management

Reducing Emission of Volatile
Organic Compounds

Emissions of volatile organic compounds(For the overall Group, toluene and xylene)
300

Appropriate Management ofChemical Substances(FY)

Our Group is voluntarily working to reduce emissions of VOCs.
At Furukawa Electric we mainly focus on toluene andisopropyl alcohol (IPA), and have hit our target for toluene
reduction by substituting low-toxicity hydrocarbon-based
detergent for toluene in the copper strip degreasing process.
From now on we will also include hydrocarbon-based detergent
in our VOC reduction control efforts, and seek to reduce its use.

Furukawa Electric Group CSR Report 201126

Initiatives for the Environment

Environmental Risk Management
The Furukawa Electric Group seeks to prevent pollution, properly handle environmental accidents, and reduce latentenvironmental risk in our operations.

Preventing Soil and Groundwater
Pollution
The Furukawa Electric Group engages in the management ofspecific toxic substances and conducts regular inspections
for leaks so as to have no harmful impact on the soil orgroundwater in our communities. We continuously seek toreduce the risk of pollution by preventing leaks and switching
to substitute substances.
In fiscal 2011, we began proper disposal of the slag
stored in the Oyama area (a plant site of the former Furukawa
Magnesium Co., Ltd.). Soil remediation through excavation
and removal has been conducted at locations where siteexaminations have found contamination. Also, we haveexecuted measures for soil remediation and prevention ofgroundwater diffusion at some sites where groundwater
has been found to exceed contamination standards. We willcontinue to implement measures as we monitor progress.
Among our affiliates, groundwater measures begun in theprevious fiscal year were ongoing at the Ibaraki Plant owned by
Aoyama Kinsho Co., Ltd.

Effort to Prevent Atmospheric andWastewater Pollution
Every Furukawa Electric works maintains voluntary control
limits and manages operations to avoid exceeding regulatory
limits for atmospheric and wastewater quality.
In fiscal 2011, due to the impact of the Great East Japan
Earthquake, COD (chemical oxygen demand) temporarily
exceeded regulatory limits at our Chiba Works, but afterward
returned to normal. With the exception of that incident, the air
and water quality data at all of our manufacturing works waswithin the regulatory limits.
WEB

Management status at works

http://www.furukawa.co.jp/english/csr/enviroment/risk.htm

PCB Management
The Furukawa Electric Group monitors the amount of
PCB-containing equipment at each of our Works andaffiliate company sites, and conducts proper storage andmanagement. PCB waste is registered promptly with theJapan Environmental Safety Corporation, which we contract
for planned, sequential PCB disposal. Also, condensers andtransformers removed from our facilities are examined for PCB
content on a case-by-case basis. We are also proceeding

27

Furukawa Electric Group CSR Report 2011

with planned examination of equipment containing even small
amounts of PCB, with all examinations slated for completionby fiscal 2013.
WEB

Number of instruments containing PCB

http://www.furukawa.co.jp/english/csr/enviroment/risk.htm

Response to Asbestos Concerns
Although our company does not currently produce or importany products containing asbestos, some of the industrial-use
products we made and sold in the past did contain asbestos.
These include electrical wiring for ships, and fire-resistantproducts for constructing telecommunications and electrical
power facilities, etc. For details please visit our homepage.
We are currently examining the buildings and plants of
Furukawa Electric and our affiliates to determine if asbestoscontaining building materials have been used. Inspections forasbestos dispersal in buildings in which spray-on materials
had been used have confirmed the presence of asbestos, andremoval work or containment measures have been taken toprevent future dispersal. We have also proceeded to replaceequipment and fixtures in which asbestos insulation has beenused so as to prevent dispersal, with planned replacements ofitems which are currently not dispersing asbestos with items
not containing it timed to coincide with regular inspections or
facility renewal.
WEB

Response to Asbestos Concerns (Details)

http://www.furukawa.co.jp/english/csr/enviroment/risk.htm

Environmental Accident Response
Emergency situations such as environmental accidents canimpact the surrounding area, sometimes seriously.
At the Furukawa Electric Group, we conduct annual
checks for conceivable, clear environmental impact so as toprevent environmental accidents or prevent widespread impact
in the event of an accident. We also conduct simulation drills
that presuppose post-accident responses.
Nonetheless, in fiscal 2011 an operational error at anaffiliate in Kita-Kyushu City caused an accident resulting in
COD (chemical oxygen demand) exceeding standard levels.
The incident was immediately reported, and recurrence
prevention methods were taken. The authorities conducted
an on-site inspection related to this incident, and served theaffiliate with a cautionary notice.