Furukawa Electric Group Sustainability Report 2013

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

2.
3.

4.
5.

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

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

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Furukawa Electric Group Sustainability Report 2013

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

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

Furukawa branding Green products Management System

Environmental education programs

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

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Furukawa Electric Group Sustainability Report 2013

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

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

Affiliatedcompanies

Key activity and the outcome
Total costs

Year onyear

Total costs(1)Business area costs

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

1,263

224

1,854

(2)Upstream/downstream costs

Recovery of packaging, drums, etc.

453

-64

576

(3)Administration costs

Environmental management system auditing,environmental impact monitoring, etc.

344

-26

176

(4)Research and development
costs

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

972

-18

787

(5)Social activity cost

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

2

-3

5

(6)Environmental remediation
costs

Environmental impact assessments, cleanup ofpolluted soil, etc.

1

-0

24

3,035

112

3,422

Total

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

Environmental conservation benefits
Reduction
Emissions causing environmental impact

Unit
Furukawa Electric

Affiliated companies

Volume of industrial waste disposal processed(note 2)

tons

348

664

Energy consumption (crude oil equivalent)

1,000 kl

14

15

Water consumption

1,000 tons

-306

186

tons

16

0

CO2 emissions

1,000 tons-CO2

-6

-69

SOx emissions

tons

15

9

Emissions of volatile organic chemical compounds

37Furukawa Electric Group Sustainability Report 2013

NOx emissions

tons

85

-117

Soot emissions

tons

1

-41

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

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

Affiliated companies

Revenue from recycling

291

460

Reduction in waste disposal costs

-2

45

-314

-436

6

26

-19

95

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

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

Affiliated companies

Environment-related investment

358

669

Total investment

4,408

25,750Total research costs

8,812

6,611

Environmental conservation costs (Furukawa Electric)

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Furukawa Electric Group Sustainability Report 2013

Economic benefits (Furukawa Electric)

Environment-Related Investment and Expenditures

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

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Furukawa Electric Group Sustainability Report 2013

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

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

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Furukawa Electric Group Sustainability Report 2013

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

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

Activities

Activities toprevent global
warming

Environmental
conservation activity
targets for fiscal 2013

Furukawa
Electric

Achievement

Affiliatedcompanies

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

Achieved

11.0% reduction

Energyconsumption

Reduce by 5% comparedto fiscal 2008

21.9% reduction

Achieved

13.1% reduction

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

Achieved at
10/21 Divisions

Not achieved

Achieved at
6/15 Works

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

Waste reduction
activities

Achieved-

98.0%

Not achieved

92.0%

Achievement

Achieved-

Group zero
emissionsachievement
ratio

Affiliates zero emissions
achievement ratio: 90%

-

-

90.9%

Achieved

-

-

-

-

-

Achieved---

0.3% reduction

Not achieved

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

41

Reduce by 6%
compared to fiscal
2008

Reduce by 1%
Not achieved compared to theprevious fiscal year

99% or more (97% ormore for affiliates)

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

Furukawa ElectricGroup (Japan)

Reduce by 1%
Not achieved compared to theprevious fiscal year

Recycling rate

Effective use of water

Chemical
substance
management
activities

Environmental
conservation activity
targets for fiscal 2014

Performance in fiscal 2013

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

Not achieved 94% or more-

Consider reducing
volume of water
withdrawn

Reduce by 1%
compared to theprevious fiscal year

Furukawa Electric Group Sustainability Report 2013
year (note 1)

Green activities

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

Eco-design activities

Biodiversity conservation

100%

-

Expand to Group
companies--

15 companies

Achieved

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

40.2%

Not achieved--

30% or more

Conduct of LCA for allimportant products:100%

100%

Achieved--

Roll out to Group
companies

Formulation of
biodiversity guidelines
and creation of
structures

Creation of guidelines-(note 1)

Achieved

Formulation ofguidelines and
Not achieved
establishments ofsystems-

Participation inregional biodiversity
conservation activities

Targets all surveyed VOCs

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

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

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

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Furukawa Electric Group Sustainability Report 2013

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

Content

Prevention of global warming

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

Zero emission

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

Elimination of materials that havean impact on the environment

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

Resource savings

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

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

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Furukawa Electric Group Sustainability Report 2013

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

Implementation of LCA evaluations on product lines
Business Division

Fiscal 2011

Fiscal 2012

Fiscal 2013

Cumulative total

Energy and Industrial Products

4

5

6

15

Telecommunication

9

11

11

31

Electronics and Automotive Systems

4

3

4

11

Metals

1

3

3

7

Total

18

22

24

64

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

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

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

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Furukawa Electric Group Sustainability Report 2013

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

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

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Furukawa Electric Group Sustainability Report 2013

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

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

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

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Furukawa Electric Group Sustainability Report 2013

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

Modal shift and specific consumption (Furukawa Electric)

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

Topics

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

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

Processing volume of non-recyclable waste

Direct landfill disposal

Waste disposal costs (Furukawa Electric)

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

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

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Furukawa Electric Group Sustainability Report 2013

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

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

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

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

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

Environmental Risk Management
Preventing Soil and Groundwater Pollution
The Furukawa Electric Group conducts regular inspections of facilities and equipment that handle specific toxic
substances to prevent the pollution of soil and groundwater. We reduce the risk of pollution through measures to prevent
leaks of specific toxic substances and underground seepage, as well as through ongoing efforts to switch to substitutesubstances.
In fiscal 2011, we began proper disposal of the slag stored in the Oyama area (a plant site of the former Furukawa
Magnesium Co., Ltd.) and conducted soil remediation where underground soil was contaminated. Work on part of thepremises is now complete. At affiliated companies, we completed additional measures to address groundwater pollution
at the Ibaraki Factory of the former Aoyama Kinsho Co., Ltd.
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Furukawa Electric Group Sustainability Report 2013

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

Works

In storage

In useTotal

Chiba Works

104

0

104

Nikko Works

353

60

413

Hiratsuka Works

83

143

226

Mie Works

107

11

118

Yokohama Works

19

1

20

Copper Tube Division

48

12

60

Copper Foil Division

16

49

65

Total

730

276

1,006

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

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

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Furukawa Electric Group Sustainability Report 2013

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

Biodiversity Conservation: Three Important Categories
1.

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

2.

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

3.

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

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

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