FURUKAWA ELECTRIC GROUPSUSTAINABILITY BOOK

2021

C ON T E NT S

Editorial Policy …………………………………… 1
Company Proﬁle………………………………… 2

Basic Approach
Top Message ………………………………………… 3

FURUKAWA ELECTRIC GROUPSUSTAINABILITY BOOK 2021

Labour Practices

The Environment

Fair Operating Practices

Occupational Health and Safety ………… 29

Environmental Policy and Purpose …… 53

Supply Chain ……………………………………… 79

Human Resources Management

Management Policy ……………………… 33

Corporate Philosophy …………………………… 4

Human Resources Development andRecruitment ………………………………… 34

Materiality …………………………………………… 8Labor-management consultation …… 38

Sustainability Policy / Committee ………… 6
Furukawa Electric Group’s eﬀorts towards
the SDGs …………………………………………… 11

Organizational GovernanceCorporate Governance ……………………… 15

Risk Management ……………………………… 19

Compliance ……………………………………… 24

Human Rights

Welfare ………………………………………… 37
Goals and Achievements ……………… 39

Work Style Reform ………………………… 40

Diversity & Inclusion

Diversity & Inclusion Promosion …… 42

Initiatives Promoting the Employment ofPeople with Disabilities ………………… 45
The Activity to Promote Women’s Careers…………………………………………………… 49

In-Company System for Fexible Working
Styles …………………………………………… 51

Environmental Vision ………………………… 54

Environmental Management

Environmental Management ………… 55
Material Flow ………………………………… 58

Targets and Performance of Environmental
Conservation Activities …………………… 59
International standards of the environmental
management (ISO14001) …………………… 61

Environmentally Friendly Products …… 63

Climate Change ………………………………… 67

Water Resources ………………………………… 71

Consumer Issues
Quality ……………………………………………… 85

Community Involvement
Local Community Contribution,
Social Contribution ……………………… 87

Reducing Waste ………………………………… 72

ESG Data …………………………………………… 93

Environmental Risk Management ……… 75

Participation in Initiatives ………………… 112

Chemical Substance Management …… 73
Biodiversity Conservation ………………… 76

External Evaluation …………………………… 107
Reference data …………………………………… 114

Human Rights …………………………………… 27

The cover expresses that Furukawa Electric Groupruns business activities and social contribution to
FURUKAWA ELECTRIC GROUPSUSTAINABILITY BOOK

2021

build a sustainable world and make people’s life
safe, peaceful and rewarding. Through these

activities, we aim to achieve Furukawa ElectricGroup’s Corporate Philosophy which is “contribution
to the realization of a sustainable society.”

BasicApproach

Organizational
Governance

Human Rights

LabourPractices

Editorial Policy

Since ﬁscal 2012, the Group has been publishing Sustainability

The
Environment

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

Company ProﬁleCompany Name

Furukawa Electric Co., Ltd.

President

Keiichi Kobayashi

Founded1884

Established

June 25th, 1896

Paid-in Capital¥69,395 million

Reports, which provide non-ﬁnancial information, including
environmental, social and governance information, and ﬁnancial
information, including operating results and strategies. We havechanged the content of the Sustainability Report and concisely state
important ﬁnancial and non-ﬁnancial information about our initiatives
to enhance corporate value in the medium to long term. We changed
the name of the report to Furukawa Electric Group Integrated Report2020. With the change to the Sustainability Report, we have decided to
publish a Sustainability Book, which primarily provides stakeholders(As of March 31, 2021)

with types of non-ﬁnancial information that were included in the
Sustainability Report, but are not included in the Integrated Report. We
would be delighted if the Sustainability Book helps you understand the

Net sales¥811,600 million (Consolidated)(Years ended March 31, 2021)¥392,616 million (Non-Consolidated)

Number of Employees

48,449 (Consolidated)(As of March 31, 2021)

4,084 (Non-Consolidated)

Group's environmental, social and governance activities.
Guidelines Referenced
ISO26000Head Oﬃce

Tokiwabashi Tower,
2-6-4, Otemachi, Chiyodaku, Tokyo 100-8322, JapanGRI Standards
Environmental Reporting Guidelines 2018 issued

TEL+81-3-6281-8500

Period Covered
Fiscal 2020, from April 1, 2020 to March 31, 2021）(note) Includes selected information on past initiatives and activities during ﬁscal 2021.
Organizations Covered
This book covers Furukawa Electric Co., Ltd. and group companies in Japan and overseas. Where activities are limited to
speciﬁc regions or companies, this fact has been clearly indicated in this book.
Publication Timeframe
Publication date: December 15, 2020
Planned publication of next edition: September 2022
Editing and Publication
Furukawa Electric Co., Ltd
Corporate Sustainability Oﬃce Administration & CSR Division Furukawa Electric Co., Ltd.Tokiwabashi Tower,
2-6-4, Otemachi, Chiyodaku, Tokyo 100-8322, Japan
Inquiry form
https://www.furukawa.co.jp/en/inquiry/

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Top Message

Corporate Philosophy

Top Message

CORPORATE PHILOSOPHY

By continuing to adhere to the founder's belief and driving the Group enthusiastically and energetically, we contribute to asustainable society.

Community
Involvement

ConsumerIssuesDrawing on more than a century of expertise in the development and fabrication of advanced
materials, we will contribute to the realization of a sustainable society through continuous
technological innovation.

Ichibei Furukawa, the founder of Furukawa Group, left words "Value employees.
Value customers. Value new technologies. And contribute to society."We haveinherited the founder's belief as the genes of the Group. For 137 years since

MANAGEMENT PHILOSOPHY

the foundation, we have worked to "protect human health and the health of thesocial infrastructure, and support growth."The founder's belief has a lot inWith an eye to the future, the Furukawa Electric Group management team pledges to:common with the Sustainable Development Goals (SDGs) adopted by the United
Nations. As a member of society responsible for the future, we will continue toLive up to the expectations and trust invested in us by society, with fairness and integrity.

adhere to this belief.

Apply the sum total of our expertise to satisfy our customers and grow with them.
Based on the founder's belief and the SDGs, the Furukawa Electric Group has
formulated the “Furukawa Electric Group Vision 2030” which sets the year 2030
as its target in a backcasting.I ﬁrmly believe that accelerating our eﬀorts to

Keiichi Kobayashi

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 and creative organization.

achieve Vision 2030 and implementing ESG management will become thefoundation on which the Group contributes to the sustainability of society.For
achieving Vision 2030, we concluded that the important management issues(materiality) for the Group were the “Creating of businesses that solve socialCore ValueFURUKAWA ELECTRIC Group Vision 2030

issues”,“Developing of business activities that consider climate change,”“Strengthening human capital management and organizational execution

In order to build a sustainable world and make peopleʼsabilities,” and “Building a governance system to strengthen risk management.”

life safe, peaceful and rewarding, Furukawa Electric

Therefore we intend to promote “Open, Agile, Innovative” and “Building

Group will create solutions for the new generation ofpartnerships with various stakeholders” as the action principles of the Group.

global infrastructure combining information, energy andmobility.

In a world that is shifting rapidly including the crisis caused by the newcoronavirus infection, the Group will continue to change to become asustainable corporate group to provide safety and expectations to all
stakeholders. We will develop the Group enthusiastically and energetically with"passion, persistence, and pride" to contribute to achieving a truly aﬄuent,sustainable society.
We hope that we can count on your continued support.

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LabourPracticesThe
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Basic Policy and CSR Code of Conduct

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

Sustainability Policy / Committee

Each of the companies in Furukawa Electric Group develops CSR activities in line with the following Group basic policy.
In order to follow in conducting corporate activities based on Furukawa Electric Group Philosophy and Core Value, the CSR
Code of Conduct deﬁnes fundamental rules of behavior for Furukawa Electric Group executives and employees from theperspective of corporate social responsibility.

About the Sustainability Policy
The Furukawa Electric Groupʼs mission as set out in its Corporate Philosophy is to contribute to the realization of a truly

Furukawa Electric Group CSR Code of Conduct (Revised April, 2019)
1. Human rights

aﬄuent and sustainable society. This policy clariﬁes our basic concept for ensuring environmental, social, and economic
sustainability for the medium-to-long term and achieving sustainable growth while improving our medium-to-long-term
corporate value.

2. Labor practices
3. Environment
4. Products and services

Furukawa Electric Group Basic Policy on Sustainability
The Furukawa Electric Group will:

5. International businesses and transactions
in line with its mission of contributing to the realization of a truly aﬄuent and sustainable society, tackle important
6. Fair competition

management issues (materiality) from the perspectives of both revenue opportunities and risks, while focusing on

7. Relations with customers, partners, and society

the future of people and the planet.

8. Management and preservation of Company assets

in order to have sustainable growth and contribute to the achievement of SDGs (sustainable development goals),

9. Disclosure of information
10. Duties and obligations of senior management and employees

strengthen and create businesses that solve social issues, while focusing on capital eﬃciency and continuing totransform its business through continuous technological innovation centered on material technologies andcollaboration with various stakeholders.
contribute to the sustainable development of society by maintaining and improving sound and positive
relationships with all stakeholders through appropriate information disclosure and active communication, while
complying with laws, regulations, social norms and ethics in Japan and overseas.

The Furukawa Electric Group Philosophy comprises of the
Corporate Philosophy and the Management Philosophy and explicitly
explains what we aim to become in order to help realize asustainable society.
The Core Value shows the ﬁve values that we wish to particularly
emphasize and enhance even more, for the achievement of theGroup Philosophy and the sustainable growth of the Group.
The Furukawa Electric Group Vision 2030」clariﬁes the targetedtime frame and business domains, aimed by the Group to beachieved by 2030.
The Furukawa Electric Group CSR Code of Conduct sets the basic
code of conduct to be followed by the officers and employees of
the the Group from the perspective of corporate social
responsibility in conducting corporate activities based on theGroup's philosophy and Core Value.

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About the Sustainability Committee

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

Materiality

The Sustainability Committee was established to consolidate discussions on sustainability within the Furukawa ElectricGroup and further enhance the quality and speed of implementation thereof.
The committee is chaired by the President, vice-chaired by the General Manager of the Business Basis Transformation

Furukawa Electric Group, Vision 2030 and Important Management Issues

Division, and composed of members of top management. It meets to discuss sustainability issues that concern the
Furukawa Electric Group and makes proposals and reports to the Board of Directors. The Corporate Sustainability Oﬃce
serves as the secretariat, and the committee will generally meet twice a year.

The Group deﬁned “materiality” as important management issues that the Group should address in order to achieve Vision
2030, and we determined materiality in terms of both revenue opportunities and risks, in accordance with the process ofidentifying important management issues.

The Sustainability Committee focuses on the following items:
the Sustainability Policy
basic matters and current progress on materiality related to revenue opportunities and risks
disclosure of basic information related to sustainability
SDG activities and community/social activities
other important sustainability issues
Additionally, as risk materiality matters are closely related to risk items concerning management of the Group, they are
therefore handled in coordination with the Risk Management Committee.

In order to solve various social issues through the business activities of the Group, we changed the conventional productout way of thinking and adopted the “creation of businesses that solve social issues” based on outside-in thinking in SDGs
as materiality. In addition, we also deﬁned materiality as “Open, Agile, Innovative,” which reﬂects the aspiration included in
Vision 2030, namely, the desire to become a company that actively transforms itself, and the “Building partnerships withvarious stakeholders,” focusing on breaking away from self-reliance and building partnerships with outside parties to create
friends. We are currently carrying out initiatives to materialize businesses that solve social issues. These include “creating
businesses that support next-generation infrastructure,” which will be the foundation of the integrated society, and“creating environment-friendly businesses” that contribute to a decarbonized society and a sound material-cycle society.
On the other hand, from a risk perspective, in order to achieve sustainable growth, it is essential that companies develop
business activities that consider climate change, and we see this as materiality. In addition, in order to become a company
that actively transforms itself, we will strengthen the foundation of ESG management by focusing on the materiality of“strengthening human capital management and organizational execution abilities” and “building a governance system forstrengthening risk management” including corporate governance.
The SDGs that are highly relevant to identiﬁed materiality are associated with multiple SDG targets. By working onmateriality, the Group will achieve Vision 2030 and contribute to the achievement of the United Nations SDGs.

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Step 3：Identiﬁcation of materiality
High-priority items are categorized by revenue opportunity and risk aspects and identiﬁed as materiality items. The
identiﬁed materiality items are categorized and rearranged as important issues for achieving Vision 2030, and expressedas the materiality of three revenue opportunities and the materiality of the E, S, and G risks.

Process of Identifying Important Management Issues
We determined materiality in the following steps 1-3.

Step 1：Understanding and organizing social issues
In identifying materiality, we identiﬁed social issues by referring to “external factors” and“internal factors,” adjusted
duplicate items, and created a list of 29 items.
External factors
17 SDG goals and 169 targets
FTSE, MSCI and DJSI ESG evaluation items, etc.
Internal factors
Important measures of Furukawa G Plan 2020
Values of the Furukawa Electric Group
Important Companywide risks, etc.

Step 2：Materiality map evaluation
The two axes of “importance to shareholders and investors” and “importance to achieving Vision 2030” are evaluated forimportance (high, medium, low) and prioritized.
Importance to shareholders and investors
Interviews with institutional investors
Impact on ESG rating assessment
Importance to achieving Vision 2030
Management and executive oﬃcers gather together regularly to discuss materialization of Vision 2030
Discussions of CSR and Risk Management Committee reﬂected

9

Furukawa Electric Groupʼs eﬀorts towards the SDGs
FURUKAWA ELECTRIC GROUP INTEGRATED REPORT

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Based on the “SDGs”, the Furukawa Electric Group has formulated the “Furukawa Electric Group Vision 2030” which sets

Furukawa Electric Groupʼs eﬀorts towards the SDGs

the year 2030 as its target and is advancing eﬀorts with the aim to “Build a sustainable world and make peopleʼs life safe,
peaceful and rewarding, Furukawa Electric Group will create solutions for the new generation of global infrastructure
combining information, energy and mobility.” Toward the achievement of our Vision 2030, we will take open, agile, andinnovative approaches to promote ESG management that that aims to increase corporate value over the medium to long

Sustainable Development Goals (SDGs)
The 2030 Agenda for Sustainable Development (the 2030 Agenda) is a set of international development goals from 2016
to 2030, which was adopted by the UN Sustainable Development Summit held in September 2015 building on the successof Millennium Development Goals (MDGs).
The 2030 Agenda listed “Sustainable Development Goals” consisting of 17 goals and 169 targets in order to eradicate
poverty and realize a sustainable world. The SDGs are universal goals applicable, not only to developing countries but also
developed countries, and pledge “Leave no one behind.” through the implementation process.

term and will contribute to the achievement of the SDGs.

Important Management Issues (Materiality) and Corporate ValueThe SDGs that are highly relevant to identiﬁed materiality are associated with multiple SDG targets. We deﬁned “materiality”
as important management issues that the Group should address in order to achieve Vision 2030. The materiarities that we
identiﬁed in terms of both revenue opportunities and risks are associated with the corporate value. From the perspectiveof revenue opportunities, we will tackle the “Creating businesses that solve social issues” through both the “Open, Agile,
Innovative,” which reﬂects the desire to become a company that actively transforms itself, and the “Building partnerships

SDGs and the Furukawa Electric Group

with various stakeholders,” focusing on collabolation with outside partners. Then, we will improve capital eﬃciency including
cost of capital. On the other hand, from a risk perspective, we will "develop business activities that consider climatechange," because it is essential for companies to achieve sustainable growth. In addition, in order to become a company
that actively transforms itself, we will "strengthen human capital management and organizational execution abilities."
Furthermore, we will "build a governance system to strengthen risk management” including corporate governance. Throughthose materialities of risk, we will strengthen the foundation of ESG management, and then we will reduce our cost ofcapital.

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Consideration of SDGs Priority Issues Based on Value Chain Mapping

Fair Operating
PracticesElectronics Component Materials

ConsumerIssuesCommunity
Involvement

Oxygen-free copper wire

〈Increasing positive impacts〉
Using the value chain mapping of the SDG compass, we examine whether the Groupʼs current major products contribute to

Oxygen-free copper wire is used in drive motors for electric vehicles andthe 17 goals and 169 targets of the SDGs, and we are proceeding to identify the Consideration of SDGs Priority Issues

hybrid vehicles. The use of this product improves the eﬃciency of clean

Based on Value Chain Mapping SDGs that the Group should prioritize. Here, we would like to introduce the results ofenergy utilization and contributes to the realization of a decarbonizeddiscussions by all of our executive oﬃcers and senior fellows that have distinctive eﬀects and impacts.

society.

Communications Solutions Optical ﬁber & cable products〈Minimizing negative impacts〉
In the manufacturing process, we will increase the percentage of recycled〈Increasing positive impacts〉

copper and make eﬀective use of natural resources.

Optical ﬁber and cable products will contribute to the development andexpansion of sustainable and robust communication infrastructure, as well
as safe and resilient urban development, in light of the progress of 5G and
the further increase in communication traﬃc caused by the COVID-19
crisis.

Functional Products

Thermal products〈Increasing positive impacts〉
Thermal products with high-performance heat dissipation and coolingmechanisms improve the eﬃciency of energy consumptionand reduce〈Minimizing negative impacts〉

running costs at datacenters.

As we recognize that reducing greenhouse gas (GHG) emissions in theThis is one of the applications of these products and this positive impact inmanufacturing process is an important issue, we are promoting various

terms of power consumption volume has attracted worldwide attention.

measures such as energy saving at manufacturing plants.

They also contribute to high-speed and high-capacity

Energy Infrastructure Submarine transmission cables foroﬀshore wind power generation〈Increasing positive impacts〉〈Minimizing negative impacts〉
With regard to energy use in the manufacturing process, we are promoting
an improvement in energy saving and the ratio of renewable energy use atmanufacturing subsidiaries.

We will contribute to the realization of a decarbonized society by supplying
and laying submarine and underground cables, which are indispensable forbuilding interconnections between renewable energy power sources such

Activities for in-house penetration

as oﬀshore wind power generation and power grids.
〈Minimizing negative impacts〉
In the process of laying submarine cables, we are taking care to minimize

the Group is promoting eﬀorts to help employees understand the connection between the SDGs and thetheir services. While promoting businesses that start with social issues, the Group is promoting activities so that employees
can develop activities with an awareness of the SDGs in their own work.

the impact on the marine environment.

Automotive Products Aluminum wire harnesses

Related videos〈Increasing positive impacts〉
The use of wire harnesses that use aluminum wires, which are lighter
than copper, contributes to the realization of a decarbonized society
by reducing the weight of automobiles and improving energy
consumption through an improvement in fuel eﬃciency.
〈Minimizing negative impacts〉
With regard to energy use in the manufacturing process, we arepromoting an improvement in the ratio of renewable energy use, in
addition to energy saving at manufacturing plants.
Environmental Vision 2050

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Corporate Governance Organization Chart

Corporate Governance1．Basic Views and Guidelines on Corporate Governance
Basic Views on Corporate Governance
Based on the "Furukawa Electric Group Corporate Philosophy", we enhance our management performance responding
appropriately to changes in the business and market environment by prompt business decision making as well as withtransparency and fairness. At the same time, we ensure sound management by developing and establishing an eﬀective
internal control system. With these, we will expand and develop our business on a sustainable basis and increase ourcorporate value. Furthermore, we seek to strengthen and enhance our corporate governance, in accordance with thefollowings:
1. We secure the rights and equal treatment of shareholders;
2. We consider interests of stakeholders including shareholders, and cooperate appropriately with them;
3. We ensure appropriate information disclosure and transparency;
4. Given its ﬁduciary responsibility and accountability to shareholders, the board of directors carries out eﬀective
oversight of management from objective standpoint, respecting the independent directors' role for the oversight;
5. We engage in constructive dialogue with shareholders who have investment policies in accordance with interests ofmid- to long-term shareholders.

Guidelines on Corporate Governance
Based on "Basic Views on Corporate Governance", we adopted "Guidelines on Corporate Governance" as a policy forenhancing our corporate governance.

2. Overview of Corporate Governance System
We adopt the "Audit and Supervisory Board" type of governance organization under the Japanese Companies Act taking
account of the importance of maintaining the independence of the statutory audit function. And we have a"Nominating/Compensation Committee", which consists of majority of committee members and is chaired by outside
director to complement oversight function of the board.
As of June 24, 2021.

（note） CSR and Risk Management Committee changed its committee name to Risk Management Committee. The Sustainability Committee
was also established to consolidate discussions on sustainability within the Furukawa Electric Group and further enhance the quality
and speed of implementation thereof.

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Oversight and Supervising

Board of Directors
Given its ﬁduciary responsibility and accountability to shareholders, the board is responsible for promoting sustainablecorporate growth and the increase of corporate value over the mid- to long-term and enhancing earnings capability andcapital eﬃciency. The board oversights and determines the matters listed below:
1. Determination of corporate governance-related matters;

Fair Operating
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ConsumerIssuesCommunity
Involvement

Audit & Supervisory Board
Audit & Supervisory Board and each its member auditor collect information about management under statutory
investigation authority and report and express their views to the board meetings and the management from an
independent and objective standpoint as a ﬁduciary to shareholders.
Auditors ensure coordination with internal audit department through regular meetings, and report the policy, plan andresult of auditing to the board regularly.
Full-time auditors attend the meetings such as Management Committee which decides major business matters, and theyreport information obtained from these audit activities to the non-Full-time and outside auditors.
We strengthen our audit function by appointing an assistant staﬀ to the auditors who is dependent of management.

2. Establishment and amendment of business strategies and oversight of execution of such strategies and plans bymanagement;

At present, the Audit & Supervisory Board consists of 6 members (3 members are outside and independent).

3. Setting capital allocation policy;
4. Appointment and dismissal of executives including representative director and corporate vice president, andBusiness Operation

determination of the remuneration of them (including delegating these to Nominating/Compensation Committee);
5. Establishment of an internal control system relating to compliance and ﬁnancial reporting and risk management
systems, and oversight of them;President is responsible for management of our whole business operation as a chief executive under the boardʼs oversight.
Our business consists of 12 business divisions, and General Managers of each division are responsible for leading eachbusiness operation including subsidiaries and aﬃliated companies management.

6. Decision on important business matters;

We also appoint General Managers of Communications Solutions Division, Energy Infrastructure Division, Electronics

7. Others prescribed by the applicable laws and regulations etc.

Component Material Division, Functional Products Division and Automotive products Division in order to supervise closely
related business divisions.

At present, the board consists of 11 directors with 5 outside and independent directors in order to enhance transparency

In addition, we appoint General Manager of Global Marketing Sales Division that are responsible for our groupʼs sales andin decision-making and strengthen its oversight functions over the management taking outside directors' advice andmarketing entirely, and General Managers of Corporate Divisions that are responsible for planning group strategy andopinion.

assisting operation.
These oﬃcers are members of the Management Committee, which is the highest decision-making body of businessOutside directors have rich management experiences in ﬁnancial institutions, trading companies or manufacturing

operation.

companies, and expertise in the ﬁeld of legal, ﬁnance/accounting or industrial governmental policy etc., in addition to theManagement Committee, held 3 times a month basically, deliberates and determines major operational matters. Further,knowledge of our business area. The board respects their views and opinions based on their variety of experiences intheir business aﬀairs and operation are quarterly reported to the Committee to foster common understanding of company

making its decision.

business among them and integrated business operation as a whole.
These business aﬀairs and operation are also quarterly reported to the board.

Evaluation on the eﬀectiveness of the Board of Directors
We conducts an annual evaluation of the eﬀectiveness of the Board of Directors and publishes a summary of the

3. Reinforcing Internal Control

results.
Furukawa Electric establishes, develops and operates its internal control for the purpose of eﬃcient execution of
responsibilities, compliance, risk management, information management and group company management.

Nominating/Compensation Committee
We established the Nominating/Compensation Committee, replacing the former Compensation Committee in May 2015.

For further details, please refer to "Systems for ensuring compliance of directors' execution of duties with laws, regulations
and the Articles of Incorporation and soundness of other operations" (PDF 197MB).

The committee's aim is to enhance our corporate governance securing the objectivity and transparency as to nominating
and compensation for directors etc. The committee consists of 5 or more members, majority of which shall be outside
directors, appointed from directors by board resolution. In principle, the chairperson of the committee is selected fromamong the outside directors by mutual election of the committee members.
At present, the committee consists of 7 members (5 outside directors).

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Important Companywide Risks

Risk Management

Compliance

Quality control

Large-scale disasters, such as earthquakes

Information security

Aﬃliated company controls

Risk Management Committee
The Furukawa Electric Group has established the Risk Management Committee, which comprises management as
members, with the President as chair and the General Manager of the Administration & CSR Department as vice chair. The

In the event a large-scale disaster occurs or other such risk materializes, Furukawa Electric Group will establish Emergency

committee is structured to supervise and promote CSR activities of the Group, including risk management, internal control,

Response Headquarters, headed by the president, and Site Response Headquarters that deﬁnes each department's roles

compliance, and social contribution. The committee has also established special committees, each of which focuses onand clariﬁes them ahead of time. We also conduct regular exercises on preparing initial action manuals, stockpilingmanaging high-priority risks, such as quality control, occupational health and safety, and the environment.

necessary supplies, and setting up communication structures and systems to conﬁrm people's safety.

The Furukawa Electric Groupʼs Risk Management Committee conducts regular risk assessment to determine what risks
exist, deﬁne important risks that require a companywide response, and prioritize measures to counter these risks. Throughspecialized committee activities in segment-speciﬁc areas̶occupational health and safety, quality control, the environment,
and disaster prevention and business continuity management̶we are enhancing our system to manage risks related toour business activities. In addition to this system, important decision making is conducted by the Board of Directors andthe Management Committee or through the approval processing system, after the expected risks based on each case havebeen clearly presented and acknowledged.

BCM (Business Continuity Management) activities
Furukawa Electric Group, fully aware of its social responsibility, has formulated a Business Continuity Plan (BCP) and will
work on Business Continuity Management (BCM) based on the following basic policy in order to minimize damage andcontinue business activities even in the event of unforeseen risks such as natural disasters and infectious diseases, etc.

Furukawa Electric Group BCM Basic Policy, established in June, 2009
1. Respect for human life
We place the highest priority on ensuring the lives and physical safety of all employees, their families, local
society, customers and all other stakeholders.
2. Prevention of the expansion of damage
We will strive to prevent the occurrence of secondary disasters (ﬁre at company facilities, environmental
pollution, etc.).
3. Continuity and early restoration of important businessAs a socially useful company, we will aim to continue important business as far as possible and even if it issuspended, to restore it at an early date.
4. Local contributions
As a company trusted by society, we will strive to cooperate with local residents and local authorities.
5. Implementation of business continuity management
We will constantly review and improve our business continuity plan, aimed at becoming a company that istrusted by stakeholders and resistant to risk.
Promotion Framework

Overview of the Risk Management and its Structure
Our Risk Management Committee conducts regular risk assessments to determine what risks exist, deﬁne important risks
that require a companywide response and prioritize measures to counter these risks. Through specialized committee
activities in segment-speciﬁc areas̶environment, quality, safety, disaster prevention̶we are working to manage the risks
that relate to our business activities.

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Promotion in obtaining ISO certiﬁcation

Fair Operating
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ConsumerIssuesCommunity
Involvement

Cyber security

In order to strengthen the business continuity activities, we are actively working to obtain ISO22301 certiﬁcation, theAs an initiative based on the Ministry of Economy, Trade and Industry's "Cyber Security Management Guidelines" ininternational standard for the business continuity management systems (BCMS). In addition to the already certiﬁed “laser

response to cyber security risks that are becoming more sophisticated and serious year by year, we have started thediode products business” (Chiba Works) and “copper wire products business” (Mie Works) and “copper and copper alloy"Cyber Security Special Subcommittee" that consists of departments that operate mission-critical business systems fromproducts (the original products) business” (Nikko Works) obtained the certiﬁcation.

the end of 2017. And we have started the activity of "Furukawa Electric CSIRT Note 1)" that respond promptly when an
incident occurs. Through these activities, we respond promptly to large and small incidents of the Group.
In preparation for the situation where group companies and supply chains are targeted and the damage spreads, we arelooking for ways to respond to incidents including group companies. As a trial, we supported organization of a cybersecurity system at domestic aﬃliated companies in the automobile parts business last year. In the future, we will expand togroup companies in other business areas and aim to build a group global cyber security system.

FY2019 BCM exercise (Mie Works)

Response to COVID-19 infections
As a countermeasure against the new coronavirus (COVID-19) infectious disease that expanded in February 2020, we haveestablished our new coronavirus response policy and guidelines in accordance with the instructions and policies of thePrivate information protection

government and Keidanren, and we have established three measures to prevent denseness in the workplace. We
thoroughly manage people who are in poor physical condition and strive to maximize the safety and health of employees,

Following the revision of the Personal Information Protection Law in June 2020, educational materials reﬂecting the revised

their families, and other related people.

points were made known to employees during "Information Security Month (February 2021)".

In addition, taking the opportunity of promoting remote work, we are promoting various measures aimed at instilling and

In addition, as the use of SNS Note 2) services by individuals and corporate accounts increases, personal information andestablishing new work styles for after-corona. As a result, it has led to improvements such as the introduction of an

conﬁdential information are leaked, and the risk of causing so-called "ﬂaming" and damaging the company's credibility iselectronic signature system and the penetration of team learning that enhances teamwork between employees.

increasing. We have established "SNS Usage Standards" and are working to promote safe use of SNS by providing
checklists to prevent information leakage and burning.

Information Security
Information security is considered one of the highest priority risks Furukawa Electric Group has to handle. Therefore, we(note 1) CSIRT: The abbreviation of “Computer Security Incident Response Team”. The team is prepared to cope with the occurrence ofcyber incidents.
(note 2) SNS: Abbreviation for Social Networking Service. A service that enables the construction of communication networks (social
networks) between individuals on the Internet.

promote various countermeasures through intergroup collaboration by exchanging information among the related
divisions, from the perspectives of protecting information systems and intellectual property as well as information
management.

Intellectual Property Risks
The Company aims to stabilize the management by strategically creating the intellectual property rights based on thepatent portfolio management that grasps the trends in the other companies, also by decreasing the intellectual property
risks.
The intellectual property risks are divided into four categories: “Rights infringement risks”, “Counterfeit products risks”,“Contract risks” and “Technology leakage risks” and continuously arousing risk responses. For example, against the“Technology leakage risks”, the following measures are taken: “Technology concealment of the development site and the
production site”, “Information maintenance strengthening with the time stamp system”, etc.
We also develop the intellectual risk reduction activity in Furukawa Electric group globally, based on the implementation of
the systematic training of Furukawa Electric Group in domestically and internationally, the regular issuance of thenewsletters introducing eﬀorts to reduce intellectual property risks, by the President awards for excellent inventions andactivities, etc.

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ComplianceFollowing our international business development, risks that Furukawa Electric Group faces are becoming more diversiﬁed
and complicated each year. We particularly recognize that risks inherent in overseas operations― mainly in emerging
countries―and risks from the supply chain standpoint are our top priority issues, and we will be strengthening our

Basic Approachcountermeasures against them.
Especially, we established an emergency response systen in the Furukawa Electric Group and has been striving to minimize
adverse eﬀects of COVID-19 on the Group. While assessing changes in the environment in the future, we will implement

Furukawa Electric Group regards compliance as "not only observing laws and regulations, but also as acting in accordancenecessary countermeasures in a prompt and ﬂexible manner.

with the values and ethics required of the company and its employees as responsible members of society". Each and every
employee is encouraged to perform day-to-day compliance activities in line with our three musts for compliance activities:to "be aware", "speak" and "rectify".

Targets and Results (Risk Management / Internal Controls / Compliance)：Achieved：Partially achieved

1. Be aware：Not achieved

Is this in line with the philosophy and CSR Code of Conduct?
FY 2020

FY 2021Is this an improper practice?
Targets

Results

Thorough Complianceincluding World Trade andCommerce

Conducted compliance training forAchievement

Targets

Does this run counter to society's requirements and expectations?

Thorough Compliance2．Speakgroup company staﬀ twice atremote meetings in Singapore.

Compliance seminar focused on
Anti-Bribery and Competition law

Compliance seminar focused on

will be planned at China and South-

Anti-Bribery and Competition law

east Asia area by using the on-line

will be planned at South-east Asia

meeting.

Do not neglect it.
Three Musts for Compliance Activities

Talk about it openly.
If still not sure, take it to your boss.

area by using the on-line meeting.

3. Rectify
Conducting a general risk
assessment for the entiregroup
Conduct a general riskquestionnaire for the groupcompanies, check the results on

Conduct questionnaires, visualize
results using risk maps, andimplement and report risk
management activities by eachcompetent headquarters based on
the results.

Advanced risk management
for the entire group

As soon as you become aware of it, ﬁx it.

PDCA will be achieved by fusing

Always improve.

top-down management perspective
and bottom-up risk recognition
through questionnaires.

the Risk Map, and will make the risk

Training and Raising Awareness among Employees

reduction PDCA cycle.

We conduct a host of training and awareness activities in the aim of instilling compliance awareness among all employees.
Strengthening cooperationof cyber security measures
Establish the cooperation systemamong the group companies, theircontrol departments of FEC andCSIRT(Note)”.

CSIRT promptly responds toincidents such as malware
infections within the group andalerts them.
At CSIRT, consider what theincident response scheme for theentire group should be.

Strengthening cybersecurity measures

Our primary shared educational materials are the Furukawa Electric Group CSR Code of Conduct and its corresponding
Furukawa Electric Group CSR Compliance Handbook. We distribute this handbook to Furukawa Electric Group employees

Co-create with aﬃliated companies

and take many opportunities to make use of it. We conduct compliance education for employees at every level of theand departments under theCompany, from new recruits to directors. At the same time, we hold theme-based group training and e-learning courses,

jurisdiction of our company

and conduct groupwide compliance education.

regarding the implementation of
education and training and the
response to audits.

Initiatives in Compliance Months(Note) CSIRT: The abbreviation of “Computer Security Incident Response Team”.
The team is prepared to cope with the occurrence of cyber incidents.

Furukawa Electric Group has designated October and November as Compliance Months, during which we implement
measures aimed at tackling the variety of compliance issues faced by companies across our Group.

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Employee Compliance Awareness Surveys
We have biannually continued to implement compliance awareness surveys at Furukawa Electric and aﬃliates in Japan.
Designed to gauge employee awareness and understanding of compliance, these surveys aim to encourage recognition ofcompliance. Feedback is given on the results of the survey to our Group companies and Furukawa Electric divisions, andthe results are used to make proposals for compliance measures at each organization. In ﬁscal 2018, we conductedcompliance awareness survey from a view point of understanding of CSR Code of Conduct.

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

Anti-Bribery
Furukawa Electric Group formulated the Furukawa Electric Group Anti-Bribery Statement in April 2012. In December, we
published the Furukawa Electric Group Anti-Bribery Guide (revised to the second edition in May 2018), and we arepromoting activities toward creating a groupwide bribery risk management system.
Furukawa Electric Group Anti-Bribery Statement (English)
古河ऄ工集֝禁止行受带基本方୓（中文）Internal Reporting System
Furukawa Electric Group has introduced an internal reporting system to earlier detect and correct illegal acts. The

Requirements of Furukawa Electric Group Anti-Bribery Statement

Company has in place an internal reporting desk as well as an external reporting desk that makes use of outside thirdparty institutions (the Furukawa Electric Group Hotline), both of which allow employees to make reports anonymously. An

1. Do not give, oﬀer, promise, accept or demand, directly or indirectly, anyone a bribe.

internal reporting secretariat manages the content of such reports stringently, taking ample care to prevent people making
such reports from suﬀering any negative impacts, looking into issues swiftly and taking appropriate action. In ﬁscal 2016,
we newly set up external reporting desks for oversea aﬃliates. By the end of ﬁscal 2017, we have set them up in 10
countries and 40 aﬃliates.

2. Ensure that payments to Government Oﬃcials are made according to adequate approval procedures and are reviewed
appropriately.
3. Are fully aware of, and comply with the applicable anti-bribery laws and the Furukawa policy through training
programs and communication of the policy. Employees, agents and Business Partners are furthermore required toSecurity Trade Control

declare compliance to applicable anti-bribery laws and the Furukawa Electric Group policy.
4. Engage only with legitimate and transparent Agents and Business Partners, after performing adequate due diligence

Furukawa Electric Group considers security trade control to be one of its most important responsibilities as a company
with global business operations. In accordance with the laws and regulations that make up the international framework on
security trade control (the export control regime), we have improved and strengthened our management systems forcargoes and technologies that can be converted to weapons or military uses. In exporting products and providing
technology, we conduct transaction screenings based on our Security Trade Control Regulations to ensure compliance with
relevant legislation and are careful to prevent circumvent to countries of concern.

procedures on the Agent or the Business Partner.
5. Regularly assess Bribery Risks concerning the business of the company.
6. Maintain record keepings and ﬁnancial controls to enable demonstration of compliance with anti-bribery laws and the
Furukawa Electric Group policy.
7. Regularly review and update its policy and controls where necessary to prevent bribery.
8. Promptly report any suspected violations of the applicable anti-bribery laws or the Furukawa Electric Group policy by
any of the Groupʼs Employees, Agents or Business Partners, so that any violations or suspected violations are dealt
with timely.

Challenges and Future Policy
Regarding the various legal compliance measures wehave taken to date, we recognize as a Group that ourtask is to expand
the scope of participation of Groupcompanies. Going forward, we will try to raise complianceawareness by focusing on
more eﬀective educationcontent with a Group perspective and enhancing its globalimplementation system. We will also
hold more compliance seminars taking account of local laws, languagesand customs, encouraging individual initiative undertheslogan “Think and conduct compliance together”.

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Human rights
violations

TargetBasic Policy on Human Rights

Actions of Furukawa Electric/Furukawa Electric Group
Actions promoted by the Furukawa Electric Group Safety and Health Committee
Safety and health activities at each site of the Company and Group companies

Under the Furukawa Electric Group Philosophy, the Group understands that the human rights of everyone aﬀected by its
globally expanding business activities must be respected. The Group will respects human dignity and all human rights thatare recognized internationally.

Inadequacies inPeople in the Group who

Occupational Healthare involved in safety andand Safety

health management

Achievement of Occupational Safety and Health Management System (OSHMS)
certiﬁcation
Safety and health education according to rank
Holding presentations about safety and health activities and sharing bestpractices

Furukawa Electric Group Human Rights Policy

Exchanges of views between labor and management
Education on the Basic Policy on CSR and CSR Code of Conduct, and making

In 2015, the United Nations (UN) adopted the Sustainable Development Goals (SDGs). Recently, social conditions and thebusiness environment are changing dramatically. In this environment, companies are increasingly receiving diverse requests
from stakeholders related to environmental, social, and governance (ESG) criteria, including respect for human rights.
Considering the situation, the Group established the Furukawa Electric Group Human Rights Policy on January 27, 2020, to

All people who work for theForced andGroupthem known to all
Making the whistleblowing system known to all
Education on the human rights policy and making it known to allcompulsory labor,
Slave labor

Making the CSR Deployment Guidelines for Business Partners known torespect the human rights of all stakeholders aﬀected by its business activities.
Business partners

partners
Partners meetings and dialogues with partners

Furukawa Electric Group Human Rights Policy established on January 27, 2020（PDF 402KB）
All people who work for theGroup

Whistleblowing System

Education on the Basic Policy on CSR and CSR Code of Conduct, and making
them known to all
Making the whistleblowing system known to allChild labor
Making the CSR Deployment Guidelines for Business Partners known to

In order to address violations of the Furukawa Electric Group CSR Code of Conduct, which includes provisions related toBusiness partners

human rights, and concern over potential violations in the Group's business activities, the Group established an internal

partners
Partners meetings and dialogues with partners

whistleblower desk and an external whistleblower desk, which uses an outside independent organization. Based on
information obtained through the system, the Group takes steps to mitigate any negative eﬀects by following appropriate

Education on the Basic Policy on CSR and CSR Code of Conduct, and making

procedures.

them known to all
Education on Furukawa Electric Group People Vision and making it known to all
Discrimination

Participating in the UN Global Compact

All people who work for theGroup

Education according to rank (newcomer education and training for managers)
Promotion of diversity
Promotion of employment of people with disabilities

The 10 principles of the UN Global Compact include principles related to human rights, such as support and respect forE-learning on LGBT issues and the SDGs

the protection of human rights, not being complicit in human rights abuses, elimination of forced and compulsory labor andabolition of child labor. The Group company supports the UN Global Compact and has participated in it since February
2020.

Human rights initiatives, including the supply chain

This ﬁscal year, the Company participates in the human rights subcommittees of Global Compact Network Japan, as below.
Subcommittees of Human Rights Due Diligence
Subcommittees of Supply chain

There is growing concern about human rights risks throughout the supply chain, including forced labor, child labor, anddiscrimination.In response to these changes and growing social demands for human rights, the Group revised the
Furukawa Electric Group CSR Code of Conduct in April 2019 and established the Furukawa Electric Group Human Rights
Policy in January 2020. At present, we have begun efforts to implement human rights due diligence.
In the future, we will conduct a Self-Assessment Questionnaire (SAQ) survey based on the CSR Procurement Guidelines
with Group companies and partners to assess human rights and promote activities to reduce the negative impact of theGroup's business activities.In fiscal 2021, we will conduct a survey of 79 domestic and overseas Group companies and 50
major partners, and plan to gradually expand the scope of the survey.

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ConsumerIssuesSafety and Health Activities Presentation Meetings
We have been holding presentation meetings on Furukawa Electric Groupʼssafety and health activities and awarding the best with commendations. In ﬁscal

Basic Approach to Occupational Health and Safety Management

2020, to prevent the spread of COVID-19, we held the presentation meetings
online. And eleven teams were selected from the SBUs (including three teams
from group companies) to give presentations and receive awards from theIn addition to basic legal compliance, Furukawa Electric Group prioritized initiatives that promote "becoming a safety

president.

conscious person" and "realizing fundamental safety." Our basic approach is to aim for zero accidents and zero illness
through safety activities focusing on three initiatives, that is, safety management in addition to the abovementioned two

Safety and Health Activities Presentation at an online
meeting

initiatives.

Basic Policy on Health and Safety Management
Endeavor to eradicate accidents by inspections and management in accordance with the Industrial Safety and
Health Act.

Site Inspections by Oﬃcers
Furukawa Electricʼs safety oﬃcers make site inspections at Furukawa ElectricCo., Ltd. and group companies whenever an accident occur s and in accordance

Nurture safety conscious persons that can avoid danger by pointing & calling and by complying with rules.
Realize “fundamental safety” in which people and facilities are separated to eliminate unsafe conditions.
Raise the quality of safety management by implementing SIDIS cycle based dialogue, empathy and standardization.
Promote mental and physical health improvement by Furukawa Electric groupʼs health management activities.

with performance in the previous ﬁscal year. They conﬁrm how appropriate thesafety measures are, and check the extent to which these measures havebecome ﬁrmly established. In addition, they exchange opinions with a view toachieving fundamental safety, and work hard to prevent any recurrences.
However, to prevent the spread of COVID-19, we only conducted site inspectionsof two group companies in ﬁscal 2020. Also, instead of site inspections, we
broadcasted video of the site and held online meetings to exchange opinions.

Promotion System
FURUKAWA ELECTRIC CO., LTD.

Furukawa Electric Group has established the Furukawa Electric Group Occupational Health & Safety Committee (on which
the President serves as committee chairman) as the highest body for promoting occupational health and safety at a grouplevel. The committee membership is composed of executives, and carries out deliberation, decision-making and follow-up

Work Accident Occurrence Status

activities for Furukawa Electric group as a whole in respect to policies and initiatives in health and safety.
In terms of its performance in ﬁscal 2020, Furukawa Electric recorded one “accidents with working loss days”, and failed tomeet its target of “zero accidents with working loss days”. The frequency rate of accidents resulting in time oﬀ work (note1) decreased to 0.11 in Furukawa Electric only and decreased to 0.21 among all Group companies in Japan (note 2).

(note 1) Frequency rate = (No. of casualties / Total actual work
hours) x 1,000,000(note 2) The calculation for ﬁscal 2020 covered full-time
employees and temporary staﬀ at Furukawa Electricand 33 Group companies in Japan.
(note 3) Data on all industries and the whole manufacturingindustry is from Ministry of Health, Labor and Welfare
survey results

Promotion Framework

Frequency rate of accidents resulting in time oﬀ work

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Meanwhile, the 2020 accident frequency rate for the whole Group including overseas Group companies was 0.55. This
included accidents both resulting in and not resulting in time oﬀ work.

Fair Operating
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ConsumerIssuesCommunity
Involvement

Strengthening Passive Smoking Measures
Since ﬁscal 2003, the Company has fully embraced eﬀorts to curb the smoking of tobaccoand taken steps to prevent exposure to secondhand smoke and promote non-smoking

Please see below for companies included in the calculation.

lifestyles. We have achieved the Company-wide goals of no smoking during working hours

List of all applicable companies：Occupational Health and Safety - Scope of the frequency rate of accidents(FY2017) and no smoking on the premises (FY2020). The smoking rate of male employees

resulting in time oﬀ work

decreased from 53.3% in ﬁscal 2002 to 22.5% in ﬁscal 2020, an indicator that our initiatives
have had a positive impact on the lifestyles and habits of our employees. We will continue toassist smokers as they work to quit smoking.

Targets and Results (Accidents)：Achieved：Partially achieved

FY 2020
Targets：Not achieved

FY 2021
Results

Achievement

Non-smoking poster

Targets

Initiatives to Improve Health Literacy and Presenteeism
Zero “accidents with working lossdays”

One “accidents with working loss

Zero “accidents with working loss

days”

days”

Improvements in the health consciousness of employees are an important part of improving their health. Since ﬁscal 2018,
we have had each employee state their health goals in a short health declaration. In ﬁscal 2020, to improve presenteeism,
we introduced a stiﬀ shoulder and lower back pain prevention app and provided videos that demonstrate stretches toprevent stiﬀ shoulders and lower back pain.

Healthcare for Employees Working Long Hours
In accordance with the Guidelines issued by the Labor Standards Bureau entitled “Measures to be Taken by Employers to

Measures to Prevent Falling Accidents

Prevent Health Impairment Due to Overwork”, we strive to manage the health of employees who work long hours byimplementing strict limitations on working hours based on the results of health checkups and by arranging consultations

The falling accident increases with age. Even in the Company, where its members are aging, as the increase of falling
accident (including commuting injuries during walking) is a serious concern, the preventive education for the fallingfor such workers with industrial physicians.

accidents and ﬁtness exercises (muscle training) were introduced from ﬁscal 2016. In addition, in ﬁscal 2016 the physicalfunction check-ups has been implemented for employees over 50s, and since ﬁscal 2017, it has been expanded to over
40s.

Mental Health Education
We have been taking steps to safeguard the mental health of our employees since ﬁscal 2002. We have introduced acounseling system based on an external employee assistance program (EAP) and Company-wide mental health education

Certificated as “Health Management Brand” and ”Health Management Superior Corporation”

programs, including line-care, and self-care training. In ﬁscal 2016, we brought in a system to investigate the stressexperienced by our employees following a revision of Japanese law. We also provide the opportunity for employees to

From 2017 to 2021, 5 years in a row, The Company was certiﬁed as “Health Management

consult with a doctor.

Superior Corporation ” which practiced good health management under the METI's healthmanagement excellent corporation certiﬁcation system. In addition the Company was certiﬁed＜Mental health education programs＞
Listener training

as “Health Management Brand 2019” selected by Ministry of Economy, Trade and Industry
Stress control training using cognitive behavioral
therapy

Mental health training focusing on work engagement

Comfortable workplace study meetings(METI) and Tokyo Stock Exchange.
In addition, on May 15, 2017, from the managerial viewpoint, “Furukawa Electric Group HealthManagement Declaration” was enacted, in order to promote “Health Management” which
strategically strives for the health management and the health promotion of the employees. In
order to “aim to become a creative and full of vitality corporate group by taking advantage ofthe diverse human resources”, we will keep making “a company where everyone works
vigorously, keeps growing and is proud” by prioritizing safety and health to everything,promoting various activities mindful of health management throughout the Company.

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Human Resources Management

Human Resources Management

Management Policy

Human Resources Development and Recruitment

Management Policy

Human Resources Development

The Furukawa Electric Group maintains a basic policy of securing diverse human resources and supporting the growth of

In accordance with “Furukawa Electric Group Vision for Our People”,

people who continue to take on challenges, and believes that strengthening human capital management and organizational

we are training human resources who have rich humanity and strong

execution abilities is the most important challenge (material issue) the group faces for the realization of the Furukawa

challenge spirit, for the sake of our group development. The state ofElectric Group Vision 2030.

our leaders aﬀects corporate culture and reﬂects in our business

Based on the Furukawa Electric Group People Vision, the group strives to share an ideal of human resources within the

results, which is why we give training at each level to develop

group, construct a personnel management system based on common guidelines, and take individual measures (i.e., training

leadership, and construct relationships between people by “dialogue”

systems, consultation systems, and compensation and beneﬁt plans) to ensure that diverse human resources are able toamong all our employees. We work hard to instill a mind that iswork autonomously and successfully.

interested in people and respects others.
We started our Global Business Leader (GBL) training in 2006 in orderto develop personnel who will take on the role of management in the

Furukawa Electric Group Vision for Our People

future. Since ﬁscal 2013 this has been reformed to Global Mindset
Program (GMP), with its extra emphasis on global human resource
education. We have also operated a Global Development
Program(GDP) for overseas local employees since 2010 with the aimof strengthening links within Furukawa Electric Group, the curriculum
being partly shared with the GMP. Furthermore, in ﬁscal 2014 welaunched the Global Challenge Program (GCP), which dispatches young
employees to foreign countries. We are working to align these various
programs to develop human resources who can play a dynamic role on
the global stage.

Development of management personnel (succession planning)
Furukawa Electric's management personnel development system ensures that candidate human resources are selected andgiven opportunities to develop in the following two tiers:
1) The manager and pre-manager tier2) The general manager tier for corporate vice president candidates
Selection is based on internal and external assessments.
To help candidates develop, we provide individual internal training programs and personnel transfer plans and promote
their participation in external training.
We also prepare succession plans for important positions within Furukawa Electric Group and supervise successor
development and preparation. We systematically position human resources in coordination with management personnel
development plans.
The Nominating/Compensation Committee, mainly consisting of outside directors, monitors the appropriateness and theoperations of the management personnel development system. The committee also discusses the appointments ofcorporate vice presidents and selects personnel for the CEO succession plan.

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Training system (tiered training)
Tiered training begins with introductory training for new employees, which includes training about the Vision and Values ofFair Operating
Practices

ConsumerIssuesCommunity
Involvement

Internships
Ever since the Japanese government introduced a system of inter nships in 1997 as part of an industryacademia-

the group, basic rules, and the basic knowledge necessary for business, including business etiquette, communications, andgovernment collaboration, in our role as a manufacturer Furukawa Electric has taken on numerous science and engineering

how to manage stress. Higher-level new employee training takes place at the six-month mark. It provides knowledge

interns with the aim of contributing to the fostering of Japanese technicians of the future. We have already taken on morenecessary for business, such as information about marketing and cost accounting. After new employee training, employees

than 200 students across our various workplaces.

acquire the knowledge and skills required for each position as they are promoted (e.g., logical thinking is a part of training
for new supervisors, and problem solving is a part of training for new secretaries). We provide employees with training by
age as an opportunity for them to think about their career at Furukawa Electric and enable them to develop independently.

Training for managerial positions
We provide the following three types of training when employees are appointed as managers.
1) Training about management regulations such as labor, health and safety, risk management, and trade control as well as
the required mindset conscious of human rights, the prevention of harassment and understanding diversity.
2) Training for thinking about reliable leadership based on their and the organization's values as the head of the front-line
organization.
3) Training on methods of setting and assessing subordinates' goals and skills relating to providing feedback for personnel
development.
The new training for general managers was introduced in the previous ﬁscal year. It gives them the opportunity to discuss

Internship training

indirect leadership intended to favorably impact the organization through the managers who are the directors'
subordinates.

Reinforcement of MONOZUKURI power
Furukawa Electric Group is trying to reinforce MONOZUKURI power as part of its creation of a corporate culture thatallows manufacturing site employees and other employees to share goals and execute tasks to realize competitive
MONOZUKURI power. In ﬁscal 2020, the initiative was carried out in the form of smaller-scale training at each plant ande-learning due to the COVID-19 pandemic.
Additionally, we planned and tested e-learning to develop the technical capabilities of the people in charge of production
control, who are a kind of MONOZUKURI control center. We will expand the e-learning program to more employees toenhance the MONOZUKURI power of the entire group.

Diversity in Hiring
In order to respond to the global development of our business, Furukawa Electric Group has come together to implement avariety of initiatives with the aim of securing human resources. In addition to information exchanges to share know-how onhiring within Furukawa Electric Group, we held Furukawa Electric Group Forum in Tokyo, at which actively appealed ourattractiveness to students.

Encouraging Employment of Disabled People
Diversity & Inclusion Activities

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Human Resources Management

WelfareLabor-management consultation

About welfare facilities

Improving the Working Environment through Labor-Management Opinion Exchanges

Furukawa Electric supports the health and lives of its employees by establishing a variety of welfare facilities and systems

Furukawa Electric maintains the basic position that both labor and management should endeavor to engage in sincere

to create an environment that enable employees to work without anxiety.

discussions, and therefore we focus on issue resolution and deepening mutual understanding. We hold our Central

Company cafeterias:

such meetings for the 69 years since ﬁscal 1952. As of May 2021, we had held these brieﬁngs 136 times. Representatives

We support employees in the maintenance of their health, operating company cafeterias in our plants.

from labor and management exchange frank opinions and share information about a broad spectrum of items at theseManagement Brieﬁngs twice annually for public exchanges of opinion between labor and management. We have conducted

We work to ensure the cafeterias are highly satisfactory and appealing through discussions and reviews of the menus thatbrieﬁngs, such as the business environment, management, and topical matters. We also have in place various committees

include exchanges of opinions with the labor union, the health nurse, and the nutritionist.

such as the Personnel System Exploratory Committee and the Committee for Studying Shorter Hours that are designed to
improve the working environment, which management and labor discuss on a daily basis. These discussions lead toCompany housing and dormitories:

improvements in various systems and strengthen monitoring functions, such as compliance response and the

We prepare housing and dormitories owned or leased by the company near our business locations to reduce the expenses

implementation status of other CSR activities.

borne by and secure housing for our young employees and employees who have needed to move due to a personnel
transfer.
Company-owned dormitories include a dining room and a meeting space where employees can mingle and communicate
with other employees of diﬀerent departments outside working hours.

About the pension and retirement allowance system
Furukawa Electric has a point system that awards points based on the annual performance reviews and roles of each
employee. The point total is used to calculate the employee's retirement allowance. Employees can choose to receive theirretirement allowance as a pension or a lump sum, according to their own lifestyles.
We have introduced the deﬁned contribution pension system as part of the retirement allowance for managerial positions.
While deﬁned contributions are basically operated in speciﬁed pension products, employees can choose to receive them asa prepaid retirement allowance without being managed by an investment fund.

The employee stock ownership scheme
The Furukawa Employee Shareholding Association system for Furukawa Electric employees aims to support the mediumand long-term asset accumulation of employees who pay in small amounts of money over time.
Since its establishment in 1970, the Furukawa Employee Shareholding Association has showed stable growth, holding
834,883 shares as of the end of March 2021.

37

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Organizational
GovernanceLabourPractices

Human Rights

The
Environment

Fair Operating
Practices

Human Resources Management

Human Resources Management

Goals and Achievements

Work Style Reform

ConsumerIssuesCommunity
Involvement

Our company established a specialized organization for "work style reform" in May 2015 and began related initiatives withTargets and Results：Achieved：Partially achieved：Not achieved

the aim of balancing sustainable corporate growth with the enhancement of the individual lifestyles(lives) of our employees.
We are promoting a variety of measures from both the perspectives of "reforming work styke", with the objective of

FY 2020

FY 2021

improving both productivity and job satisfaction, and "reforming our organizational culture", whose goals are to reinforce
the core values of our company Group:"innovation", "ownership and speed", and "collaboration".

Targets

Results

Strengthening leadership of
the general managers andabove

Establishing Furukawa Electricʼs
the Workplace (Furukawa Seven)

Reinforcement of theexecution capabilities ofindividuals and organization

Establishing attitudes andExpanding the key mindsets toExpanding the Furukawa

principles of conduct as thethe corporate vice president andElectricʼs 7 Key Mindsets forgroupʼs manager.

general manager tiers across theSuperiors in the Workplacegroup, including domestic group(Furukawa Seven) to thecompanies

manager tier across the entire

Expanding leadership of generalmanagers and above to lead the

7 Key Mindsets for Superiors inAchievement

Targetsgroup in Japan

entire Group

Expanding the basic thinking andproblem-solving methods forpromoting daily tasks to thedomestic group companies

Reinforcement ofMonozukuri capabilities

Organizing the contents ofeducation from a class

Reinforcement ofMonozukuri capabilities

perspective in addition to a tier
Reviewing the contents ofperspective

education by rank

Expanding the scope of coverage
from skilled workers to staﬀ,

Providing training upon request
Continue to strengthen thereviewing professional trainingof the domestic group

Monozukuri capabilities of

educationcompanies

aﬃliated companies (Japan andContinuation of educationaloverseas)

support for domestic groupcompanies

Support for diverse ways ofworking, and work-lifebalanceExpansion of telework system
Continue education for raisingawareness of acceptance ofdiverse human resources andways of working

Enabling an on-site working
percentage of around 30% at
the head oﬃce and branchoﬃces by providing teleworking
allowances and establishingother systems and rules
Trial introduction of the in-housesecondary job system (to berealized by the 7 Project)

Promotion of new ways ofworking with diverse ways ofworking including remote
working
Promoting new ways of working
that start with the relocation of
the head oﬃce
Online and hybrid
education/training and a varietyof events

39

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BasicApproach

Organizational
Governance

Human Rights

LabourPracticesThe
Environment

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

In-house System for Fexible Working Styles
Diversity & Inclusion
In January 2017, we introduced a "telework system". By removing restrictions on work locations, this system will enable
employees to perform their conventional duties more eﬃciently and focus on creative work. This is expected to bring

Diversity & Inclusion Promosion

about improved productivity per hour and other enhancements to work quality and performance.
Furthermore, allowing work in hourly units at locations perform work at speciﬁc times due to personal aﬀairs, has the goal
diﬀerently from the existing "home work system"(introduced in FY2012) which is intended to support child care andnursing care, as it is usable by anyone meeting certain conditions such as appkication of the ﬂex-time system.

Basic Approach
Although we have taken continuing actions toward arranging better working conditions for women and promoting

Topics: "IkuBoss" Enterprise Alliance
Furukawa Electric Co., Ltd. has recently become a member of the “IkuBoss
Corporate Alliance” sponsored by Speciﬁed NPO Fathering Japan(Representative Director: Tetsuya Ando).

employee work-life balance since the 2005 ﬁscal year, we are also proceeding with a wide range of other measures toaccelerate the creation of working environments which can allow our diverse human resources to be fully active. These
measures include the establishment of a Diversity Promotion Oﬃce in April 2014, activities to enhance the awareness ofdiversity and inclusion, measures to promote the activity of women, and advancement of autonomous work-life
management by employees.

Human Resource Management Policy
News release: Accession to "Iku-Boss" enterprise alliance
The Furukawa Electric Group aims to make use of a diverse range of talented people all over the world to become acorporate group overﬂowing with creativity and dynamism. Continually developing human resources who are truly capableof embodying our group philosophy is the key principle behind how we manage human resources.

Go to Human Resources Management Policy page

Previous Measures
Awareness of diversity and inclusion
Embrace diverse human resources and foster a culture in which each of our strengths can be demonstrated.
The transmission from the top management
Top Message
Consciousness and behavioral change of management layer
implementation of e-learning about D&I, penetration of "IkuBoss" in cooperation with the work Style reform project, etc.
Awareness raising for employees
Implementation of human rights education for new oﬃcers, new managers and new employees
Publication of company Newsletters
Implementation of Employee Awareness surveys
Holding the event throughout the company
Companywide awareness-raising event (V Challenge Forum)

41

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BasicApproach

Organizational
Governance

Human Rights

LabourPracticesThe
Environment

Measuress too promotee women'ss careerss [promotion
n off managementt positions,, careerr developmentt support,
recruitmentt enhancement,, etc.]
Deepen individual engagement and strategically foster female managers

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

Topic:: Lecturerr sentt too a seminarr forr highh schooll studentss taughtt byy peoplee workingg inn science.
In July 2021, we sent a female engineer to a seminar taught by people working in science held for ﬁrst year students at a
girls' prefectural high school in Kanagawa.

Mentorr program
Dispatchh off female
e employeess too externall programs

The students enthusiastically listened to the lecturer who talked about her job as an employee in charge of scientiﬁc work,
her daily schedule, and the reasons that she chose her job. In a questionnaire about the seminar, one student commented
that the seminar led her to deeply think about what she wanted to do in the future.

Supportt forr individuall developmentt off female
e manageriall candidates
Internall andd externall networking
g activitiess off female
e employees
Introduction
n off seminars
s andd interview
w sheetss forr employeess who
o takee childcare
e leave

Supportt diverse
e humann resourcess andd theirr activities
Employmentt off people
e withh disabilities
Initiatives promoting the employment of people with disabilities
Employmentt off elderly
y peopleThee activitiess off globall humann resources
Initiatives
s forr understandingg LGBTQ
Q issues

Topics: Holding a Diversity Forum

Provision of e-learning programs promoting all employees' understanding of LGBTQ issues
Harassmentt prevention
n initiatives

Initiatives
s off Groupp Companies

Provision of e-learning programs about the prevention of harassment to all employees

This is a message video from the Furukawa Electric Group's Furukawa Electric LATAM S.A., which promotes the
Promotingg autonomouss work-lifee management

advancement of women.

Support the flexible working style of employees and aim to improve job satisfaction and work styles Promotion of malechild-rearing participation (creation of child care brochure)Compatibility between work and nursing care.

Supportt forr ﬂexible
e workingg styless (promotion
n off variouss supportt systemss suchh ass telework,, etc)
n off thee involvementt off fatherss inn childcare
Promotion
Creating a childcare handbook for male employees and holding round-table meetings about fathers' involvement inchildcare
Supportt forr balancing
g workk andd childcare
Holding seminars for employees taking childcare leave, and the introduction of an interview form
Holding seminars for employees who return to work after childcare leave, and the introduction of interviews before andafter maternity/paternity/childcare leave
Supportt forr balancing
g workk andd nursingg careHolding seminars on nursing care

Furukawa Electric LATAM S.A. Productions Video (YouTube)

43

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BasicApproach

Organizational
Governance

Human Rights

LabourPracticesThe
Environment

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

PlantsDiversity & Inclusion

Initiatives Promoting the Employment of People with Disabilities

Hiratsuka Branch Oﬃce
5-1-9 Higashiyawata, Hiratsuka-shi, Kanagawa 254-0016 (within Furukawa Electric's Hiratsuka

Address

Through the employment of people with disabilities, we promote diversity and inclusion.
Furukawa Electric established special subsidiary Furukawa New Leaf in ﬁscal 2004 to create an environment where more

Plant)

TEL

0463-24-8001

FAX

0463-24-8002

people with disabilities are able to work in a better setting, provide a place for them in society so that they are able securestability and peace of mind, and develop independent workers who follow rules and actively participate in society.

Chiba Branch Oﬃce

The subsidiary employs 43 people with disabilities at three locations. They engage in cleaning and electric wire disassembly.
Furukawa New Leaf is proactively contributing to the community, focusing on recruitment and training and increasing theAddress

6 Yawata-kaigan-dori, Ichihara-shi, Chiba 290-8555 (within Furukawa Electric's Chiba Plant)

TEL

0436-42-1826

FAX

0436-42-1840

number of jobs it provides by introducing new businesses.

Introduction to Furukawa New Leaf
Company outline

Mie Branch Oﬃce

Company name

Furukawa New Leaf Co., Ltd.

Address

20-16 Nobono-cho, Kameyama-shi, Mie 519-0292 (within Furukawa Electric's Mie Plant)

Capital10 million yen (fully owned subsidiary of Furukawa Electric Co., Ltd.)TEL／FAX

0595-85-2659

EstablishedMay 26, 2004

Business

Consigned cleaning of plant premises, dormitories and other activities

Representative

Shigeru Endo, President & Representative Director

Employees with disabilities
Average age of employees: 33.4 (as of November 30, 2020)
Average years of service: 9.9 years (as of November 30, 2020)

We prioritize safety and health with the goal of completely preventing accidents

We move around by bicycle when working at large sites.

and disease.

For inquiries about job opportunities at Furukawa New Leaf, call any of the branch oﬃces.

45

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BasicApproach

Organizational
Governance

Human Rights

LabourPracticesThe
Environment

Daily eﬀorts

Fair Operating
Practices

Community
Involvement

ConsumerIssuesComments from a senior employee and an instructor

1. Considerations for safety and health
2. Cooperative sharing of medical check-up results with guardians/supportingorganizations

Comment from the senior

Comment from the instructor

3. Promotion of speaking with employees to detect changes
I joined Furukawa New Leaf on April 1, 2019. As a

The employees ride bicycles to worksites whilecleaner, you have to learn many things and use

ensuring they are safe within the plants, where

diﬀerent tools for the diﬀerent places that are

there are many trucks and forklifts. You are notcleaned. Although it is a hard job, I am very happy

allowed to go to a worksite if you do not observe

5. Evaluation and follow-up activities for basic actions and fundamental work usinga skill map

after cleaning. I would like to be capable of doing

traﬃc rules and other regulations. Safety comes

more to please people. I can buy books about trains,ﬁrst.

6. Setting individual goals and reﬂecting on results

my favorite, with my wage and talk to the employees

4. Understanding the changes experienced by individual employees throughmeetings in morning, during the day and at the end of the day, and daily work
reports, and acting promptly to ensure employee safety and healthmore senior than I. It is very nice.
7. Introduction of performance review meetings

The photo shows employees who are sorting fruit.
They remove foreign matter so that only goodquality fruit is delivered to customers. Customers

8. Interviews with individual guardians

will complain if there is any foreign matter in their

9. Cooperation with employment and livelihood support centers to assist persons
with disabilities

shipments. This is why employees work carefully inthe sorting process.

10. Welcoming visitors (students and teachers) from schools for students withdisabilities and special schools nearby to contribute to the community
11. Participation in the Abilympics, the vocational skills competition for people withdisabilities
An employee participating in the Abilympics

Business description
Cleaning plants, dormitories for single employees, and for aﬃliates of the Furukawa Electric Group
Cleaning full body safety harnesses
Electric wire disassembly and document shredding
Other

Beneﬁt package
The company-run resort house, contracted resort houses around Japan, and company cafeterias
A variety of events such as a friendly bowling competition and a party on the last working day of the year

Cleaning under Japanese plum trees in the business oﬃce site

Cleaning windows at the oﬃce
Company cafeteria in the Chiba Plant

Company cafeteria in the Mie Plant

Friendly bowling competition

Kinugawa-so, the company-run resort
house

47

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Governance

Human Rights

LabourPracticesThe
Environment

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

Objectives related to support the success of women in the workplace
Diversity & Inclusion

The Activity to Promote Women's Careers

1. We aim for 7% of females in managerial positions by ﬁscal 2025.
2. We aim for 15% of females in chief positions by ﬁscal 2025.
3. We aim for 40% of females in university graduates rectuits by ﬁscal 2025.

In September 2014, we launched our activities, "Furukawa 'V' Challenge!!" , to promote women's careers and we haveadopter a comprehensive approach to implementing initiatives.

(Note) A summary of our companyʼs initiatives is available on the Ministry of Health, Labour and Welfareʼs “Enterprise database promoting
womenʼs success”"Enterprise database promoting womenʼs success" by Ministry of Health, Labour and welfare (Japanese)
Action Plan period: April 1, 2014-March 31, 2026

Support for "Declartion on Action by A Group of Male Leaders Who will Create a Society in Which Women Shine."- Enhance women's motivation and maximize their abilitiesEnhance women's motivation and maximize their abilities June 13, 2017

Keiichi Kobayashi, President of Furukawa Electric Co., Ltd., has endorsed the “Declaration on Action by a Group of Male
Leaders Who Will Create a Society in which Women Shine”, an initiative backed by the Cabinet Oﬃce of Japan.
Based on the items indicated in this declaration, which consist of “Taking action and sending messages ourselves”,“Disrupting the status quo”, and “Developing networking”, our company will take action in coordination with the “IkuBoss
Corporate Alliance”, which we became a member of on June 7 of this year, to raise the motivation of women and make itpossible for them to utilize their abilities maximally.

About the “Declaration on Action by a Group of Male Leaders Who Will Create a Society in which
Women Shine”
Utilizing the opportunities provided by the “Kick Oﬀ Meeting for Supporting
Women to Shine” held at the oﬃce of the Prime Minister on March 28, 2014,
movements conducted by leaders in various ﬁelds to support women who willand do shine with outstanding ability have been spreading.
As part of these movements, a “Declaration on Action by a Group of Male
Leaders Who Will Create a Society in which Women Shine”ʼ has beencoordinated, made up of male leaders from companies working to actively
promote the success of women.
Responding to the Act on Promotion of Women's Participation and Advancement in the Workplace
In April 2016, we acquired Level Three(the highest level) of the "L-Mark", which isan accreditation for outstanding companies in the implementation of initiatives
related to the promotion of women's careers.
In ﬁscal 2018, we will develop and promote new targets and action plans.

Homepage for the “Declaration on Action by a Group of Male Leaders Who Will Create a Society
in which Women Shine”“Declaration on Action by a Group of Male Leaders Who Will Create a Society in which Women Shine”(Gender Equality
Bureau Cabinet Oﬃce)

4950

BasicApproach

Organizational
Governance

Human Rights

LabourPracticesThe
Environment

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

Diversity & Inclusion

In-Company System for Fexible Working Styles

We set up a system for various life events such as pregnancy, childbirth, childcare, and nursing care, a variety of leavesystems, Flextime system and telework, and aim to improve the work-life balance of employees.

Birthday leave

In-house system that birthday becomes holiday

Accumulated leave

Up to ten days of annual paid leave can be accumulated, for up to ﬁve years.

Consecutive leave

Refresh leave
Volunteer leaveFlex-time system

Employees are able to take three consecutive holidays once a year and ﬁve consecutive holidays every ﬁve
years so that they can enjoy well planned holidays and refresh their mind and body.
Employees in their 25th year of employment are able to take from 14 through 31 consecutive leave days per
year.
Employees are able to take vacations up to 10 days for disaster support etc.
We adopt ﬂexible working hours system which enables employees to work eﬃciently according to thebusiness demand.

Telework

Usable by anyone meeting certain conditions such as application of the ﬂex-time system.

Hourly annual leave

Employees can take annual leave on an hourly basis for up to ﬁve of their annual leave days every year.

system51

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Organizational
Governance

Human Rights

LabourPracticesThe
Environment

Environmental Policy and Purpose

Furukawa Electric Group Basic Environmental Policy

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

Environmental Vision

In the "Furukawa Electric Group Environmental Vision 2050", while continuing themeasures based on the "Environmental Goal 2030", "Creation of Environmentally
Friendly Business" and "Creation of Environmentally Friendly Business", which are

Basic Philosophy

important management issues (materiality) of the "Furukawa Electric Group Vision
2030"

We, the employees of the Furukawa Electric Group, recognize that conservation of the global environment is a serious

We will strengthen the development of business activities that take climate change into

issue confronting the international community, and we pledge to contribute to a sustainable future for the world throughconsideration.

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

Environmental Vision 2050

eﬀorts.
2. We shall strive to develop products that are friendly to the Earth, and create new environmental businesses.

Through the provision of environmentally friendly products and services and recycling-based production activities,
contribute to the realization of a sustainable society throughout the value chain

3. 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 impactcausing

Contribute to realizing a carbon-free society

substances, across the entire product lifecycle.

Aim to reduce greenhouse gas emissions throughout the value chain

4. We shall evaluate the ecological impact of all of our businesses, and strive for the conservation of biodiversity
and sustainable use of resources.
5. We will seek harmony with the natural environment and local communities through dialogue with our
stakeholders.

(Greenhouse gas emissions from business activities (Scope 1 & 2): Challenge target of zero emissions in 2050)
Contribute to realizing a recycling-based society for water & resources
Minimize water usage, and promote the use of recycled materials, including waste plastic, throughout the value chain
Contribute to society in harmony with nature
Minimize the impact on ecosystems through value chain management that includes raw materials
Scope 1: Direct emissions from the companyʼ s plants and oﬃces
Scope 2: Indirect emissions from the electrical power and heat paid by the company

53

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BasicApproach

Organizational
Governance

Human Rights

LabourPracticesThe
Environment

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

Environmental Education

Environmental Management

Environmental Management

Environmental Education System and Environmental Education Programs
Furukawa Electric Group conducts environmental education to raise the environmental awareness of employees and toshare the necessary knowledge for our environmental activities.

Environmental Management Organization

In ﬁscal 2020, the ISO 14001 internal environmental auditor training course for newly appointed personnel was held online
as a social distancing measure, with 21 employees participating. At the beginning of the ﬁscal year, we carry out training

Furukawa Electric Group promotes environmental activities based on the basic environmental philosophy. The supremefor each level of the hierarchy, including new employee training, training for newly appointed managers, and Monozukuri

advisory body in charge of the environment who is called the “Furukawa Electric Group Environmental Committee” isstaﬀ training for mid-level staﬀ.

promoting the environmental management. The Corporate Vice President, who is also General Manager of the Risk

During Environment Month in June 2020, each employee watched environment-related videos, discussed the environment

Management Division , serves as the chairperson, and the committee consists of the General Managers from each businesswith family and co-workers, and carried out activities to raise awareness of promotion of environmental initiatives based ondivision and each corporate division responsible for management. The progress is reported quarterly to the Board ofwhat they could contribute themselves.

Directors level.
In order to ensure that the environmental management can be implemented smoothly, the environmental issues are
speciﬁcally examined cross-departmentally in the “Council of Environmental Managers” which is consisting of theenvironmental manager of each business division and corporate division.

Environmental education programs

Environmental activity award system
Promotion Framework

Furukawa Electric Group started the Environmental Activity Awards in ﬁscal 2010. In ﬁscal 2018, the name was changed to
the ESG Commendations "Environmental Contribution Award", aiming to raise environmental awareness and improve theEnvironmental management international standard (ISO 14001)

standard of our environmental activities.
In ﬁscal 2020, one excellence award and three eﬀort awards were awarded through a screening committee. The excellence

Each Group site has developed an environmental management system that is ISO 14001

award was given to FALP*, an overseas group member under the Automotive Products Division, in recognition of "energy

compliant and promotes environmental activities.

conservation activities and introduction of renewable energy" for a project that contributes to reduced power consumption

We have achieved ISO 14001 certiﬁcation.

and CO₂ emissions.
*FALP: Furukawa Automotive Systems Lima Philippines, Inc.

Our works, domestic group companies, overseas group companies that haveacquired ISO14001

Furukawa Electric Co., Ltd. Mie Works
Certiﬁcate

55

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BasicApproach

Organizational
Governance

Human Rights

LabourPractices

Fair Operating
PracticesThe
Environment

Environmental Accounting

Community
Involvement

ConsumerIssuesEnvironmental Management

Material Flow

Furukawa Electric Group has introduced environmental accounting to quantitatively grasp the costs and eﬀects ofenvironmental conservation activities, and is striving for eﬃcient and eﬀective environmental activities. Our calculations are
based on "Environmental Accounting Guidelines 2005", published by the Ministry of the Environment, and these cover
Furukawa Electric and 20 Japan group companies.

Environmental Impact of the Furukawa Electric Group in Fiscal 2020

In ﬁscal 2020, environmental conservation costs totaled 2.57 billion yen in expenses and 1.12 billion yen in environmentrelated investments. Compared with the previous year, expenses decreased by 280 million yen and investments decreased

We tallied data for Furukawa Electric 31 domestic group companies, and 58 overseas group companies̶a total of 89 companies.

by 250 million yen.
Please see below for a list of all applicable companies.
List of all applicable companies：Environmental Management - Scope of the environmental management

List of all applicable companies：Environmental Management - Scope of the environmental accounting

INPUT
Category

OUTPUT
Domestic

Overseas

Unit

Raw materials

Category

Domestic

Overseas

Unit

24.3

17.5

1000t

Waste （note 3）

Copper

124.0

119.3

1000t

Total waste generated

Aluminum

8.1

12.5

1000t

（note 4）

Iron

4.1

9.0

1000t

Final waste disposal

0.4

12.0

1000t

Other metals

4.4

0.04

1000t

Recycling amount

22.7

7.1

1000t

Glass

−

2.5

1000t

Atmospheric emissions

Plastic

32.9

48.1

1000t

CO₂

288

331

1000t-CO₂

Energy

6,850

6,793

TJ

SF6

28

―

1000t-CO₂

470

608

GWh

SOx

2

―

t

NOx

61

―

t

12

―

t

Volume emitted

53

―

t

Volume transferred

214

―

t

Wastewater

9,439

1,850

1000m³

Wastewater Public

8,803

711

1000m³1000m³

Electricity (purchased
electricity)
Electricity (hydroelectric

92

−

GWh

Soot

700

2,008

MWh

Chemical substances

16,551

4,527

1000m³

0

12,6171000m³

electricity)
Electricity (solar
electricity)
City gas
Natural gas
LPG

9.2

0.4

1000t

3,519

233

kℓ

Rivers

7,869

330

Water

9,602

2,197

1000m³

Sea

906

0

1000m³

Surface water

6,644

53

1000m³

Other

28

381

1000m³Groundwater

2,381

42

1000m³

Sewer

636

1,139

1000m³577

2,096

1000m³

BOD

28

―

t

COD

37

―

t

SS

46

―

t

1,100

59

1000m³Heavy fuel oil A +waterways

Kerosene + Light oil

Tap water
Chemical substances
Volume handled （note

47.5

―

1000t

1）

Volume of water
recycled and reused

Packaging （note 2）
Cardboard + Wood +

2.2

12.6

1000t

0.26

5.93

1000t

Paper
Plastic(note1) PRTR-listed substances(note2) Cardboard, wood, paper, and plastic used in product shipping(note3) Including valuable resources (Japan)

57(note4) Emissions oﬀ-site

58BasicApproach

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Fair Operating
PracticesThe
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Community
Involvement

ConsumerIssuesTargets and Performance (Environment)：Achieved

Environmental Management：Partially achieved：Not achieved

Furukawa Electric Group (Domestic and overseas)

Targets and Performance of Environmental Conservation Activities

Activity
Targets for FY 2020

FY 2020 results

CO₂+SF6

6.7% or more

Reduced 28.3%

CO₂

5.0% or more

Reduced 23.8%

Evaluation

Targets for FY 2021

Medium-term target
for FY 2025

8.9% or more

17%

6.6% or moreー1.5% or more

3%

2% or moreー

1% or more

5%

1% or more

5%

Reduction of greenhouse gas emissions(Scope1&2)(note 1)

Environmental Targets 2030

Base year
2017年

1. Contribution to the decarbonized society: Aiming for zero emissions over the long term.
Improvement ratio of renewable energy

1% or more

Environmental

Reduction of greenhouse gas emissions

Start of reduction

Scenario

impact reduction(Scope3)(note 2)

scenariodevelopment:done

Reduce water withdrawal

3% or more

Increased 8.1%

Reduce production energy

3% or more

Reduced 1.0%

I. The greenhouse gas emissions in the business activities: Reduce absolute scope 1 and 2 GHG emissions 26% by
FY2030 from a FY2017 base year.
II. The greenhouse gas emissions in the value chain: Reduce absolute scope 3 GHG emissions 20% by FY2030 froma FY2017 base year.

Increased 2.3%

Base year
2017年

2. Contribution to the sound material-cycle society: Promote of the recycled materials usages aiming at the soundmaterial-cycle society.
3. Contribution to the circular & ecological sphere society: Minimize the impact on the ecological system through theBase year
2020

provision of the environmental activities and products / services.

Reduce transportation energy

3% or more

Reduced 2.1%

Reduce total waste

3% or more

Increased 1.2%

60% or more

58.2%

100,000 ton-CO₂ or

157,000 ton-CO₂ or

more

more

Zero

domestic：1% ormore

In ﬁscal 2018, Furukawa Electric Group has set the Environmental Targets 2030 and applied for SBT(note) and got certiﬁed
in ﬁscal 2019.
(note) SBT: Science Based Target.

Improvement sales of environmentally friendly
products

domestic：1% or
more

5%

5%

62% or moreー

110,000 ton-CO₂ or more

ー

0

Zero

ー

3 or less1

3 or lessー

Score B or higher

A

Score Aー

Environment
Business promotion
Contribution of products to avoided environmental
impactNumberofContamination
prevention

accidents
Prevention of environmental accidents
Numberof smallaccidents

CDP(note 3) SCORE UP (Climate Change)(notes 1, 2) Scopes 1, 2, and 3
Scope 1: Direct emissions from works resulting from the use of fossil fuels, etc.
Scope 2: Indirect emissions resulting from the use of electricity, steam, and heat supplied from outside of works
Scope 3: Other indirect emissions, such as purchased products and services, business trip, commuting, and upstream transportation(note 3) CDP: An organization through which institutional investors cooperate to run projects that require companies to disclose their strategies on climate change and speciﬁcgreenhouse gas emissions.

Activities Targets and Performance in Fiscal 2020
The total amount of greenhouse gas emissions in ﬁscal 2020 was 28.3% lower than in ﬁscal 2017, due in part to theimpact of economic stagnation. As a measure against climate change, we are promoting energy conservation at our plants,
installing solar power generation systems, and switching purchased electricity to renewable energy. Furthermore, weestablished the new “Furukawa Electric Group Vision 2050”, an environmental vision looking ahead to 2050, in order totake measures aimed at the awareness of ultra-long-term issues and their resolution from 2030 on.

Activity Targets in Fiscal 2021
The entire group will work to achieve the environmental targets for 2030. In terms of climate change measures, we will
promote energy conservation activities, promote plans to introduce solar power generation, and switch purchased
electricity to renewable energy, in line with long-term greenhouse gas reduction targets (SBT).
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Overseas group companies
Environmental Management
Chongqing Changhua Automobile

Furukawa Auto Parts (Huizhou)

Furukawa Automotive Parts

Harness Co., Ltd.

Ltd.

(Dongguan) Ltd.

Furukawa Automotive

Furukawa Automotive Systems

Furukawa Automotive Systems

Parts(Vietnam) Inc.

(Thailand) Co., Ltd.

Lima Philippines, Inc.

Furukawa Automotive Systems

Furukawa AVC Electronics

Furukawa Circuit Foil Taiwan(Vietnam) Inc.

(Suzhou) Co., Ltd.

Corporation

Furukawa Electric Autoparts

Furukawa Electric Copper Foil

Furukawa Electric LatAm S.A.

Philippines, Inc.

Taiwan Co., Ltd.

function, of Furukawa Electric and 25 domestic group companies. ISO14001 is also acquired at 32 oversea group

Furukawa FITEL (Thailand) Co.,

Furukawa FITEL Opticalcompanies. (As of July 2021)

Ltd.

Products(Shanghai) Co., LTD.

Furukawa Minda Electric Pvt. Ltd.

Furukawa Precision (Thailand) Co.,International standards of the environmental management(ISO14001)

International standards of the environmental management (ISO14001)
International standards of the environmental management, ISO 14001 are acquired at 6 works, which have the production

Furukawa Electric Co., Ltd.

Furukawa Mexico S.A. de C.V.

OFS Fitel Deutschland GmbHLtd.

Chiba Works

Nikko Works

Hiratsuka Works

Mie Works

Yokohama Works

Copper Foil Division

Domestic group companies

OFS FITEL, LLC

OFS RUS Fiber Optic Cable

Permintex Furukawa Autoparts

Company

Malaysia Sdn. Bhd.

POLIFOAM

PT. Furukawa Automotive Systems

PT. Furukawa Optical Solutions

MUANYAGFELDOLGOZO KFT

Indonesia

Indonesia

PT. Tembaga Mulia Semanan, Tbk

Shenyang Furukawa Cable Co.,

Siam Furukawa Co., Ltd.

NTEC Ltd.

Okano Electric Wire Co., Ltd.

KANZACC Co., Ltd.

Shoden Seiwa Co., Ltd.

TOTOKU Electric Co., Ltd.

Foam Kasei Co., Ltd.

Suzhou Furukawa Power Optic

Taiwan Furukawa Magnet Wire

Furukawa Automotive Systems

Furukawa FITEL Optical Device

Furukawa Sangyo Kaisha, Ltd.

Cable Co., Ltd.

Co., Ltd.

Inc.

Co., Ltd.

Totoku (Zhejiang) Co., Ltd.

Wuhan Furukawa Automotive

Furukawa Communication and

Furukawa Industrial Plastics Co.,

Furukawa Precision Engineering

Broadcasting Co., Ltd.（note）

Ltd.

Co., Ltd.

Furukawa Techno Material Co.,

Furukawa Electric Advanced

Furukawa Electric Ecotec Co., Ltd.

Ltd.

Engineering Co., Ltd.（note）（note）

Furukawa Electric Industrial Cable

Furukawa Electric Power Systems

The Furukawa Battery Co., Ltd.

Co., Ltd.

Co., Ltd.

Furukawa Nikko Power Generation

Furukawa Network Solution Corp.

Inc.

（note）

Furukawa Magnet Wire Co., Ltd.

Miharu Communications Inc.

Ltd.
Thai Fiber Optics Co., Ltd.

Systems Co.,Ltd.
(note)Included in the Furukawa Electric Co., Ltd. business site

Furukawa Logistics Corp.

Riken Electric Wire Co., Ltd.

Furukawa Electric Business & Life
Support Inc.（note）

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From Application to Registration: The Registration of Environmentally Friendly Products

Environmentally Friendly Products

To register products as environmentally friendly, products must go through anapplication and examination process in their business division and then be

Environmentally Friendly Products and the e-Friendly Accreditation System

examined by the Environmentally Friendly Product Committee.
The criteria that products have to meet to be registered as an environmentallyfriendly product is an overall improvement of environmental performance when

The Group deﬁnes environmentally friendly products as products (and services) thatcompared with existing products based on established evaluation criteria at eachcontribute to reducing environmental impact or have positive eﬀect on the environment

stage of the productʼs lifecycle: the purchase of raw materials and parts,

throughout the entire product lifecycle.

production, use, distribution and disposal.

For the products compatible with the environmentally friendly products, the environmental
mark “e-Friendly” is displayed on the exterior and the catalogues to encourage theiradoption.

Categories of Environmentally Friendly Products
Expanding Environmentally Friendly Products
Furukawa Electric Group's environmentally friendly products belong to one of four categories described below.
In order to increase the ratio of the environmentally friendly products in all the products of Furukawa Electric Group, we
Category

Prevention of global warming(Only available in Japanese)

Content

set targets based on percentage of sales, and conﬁrm our progress and success on this basis.

Products with functions that contribute to the reduction or absorption / ﬁxation of
the greenhouse gas (GHG) emissions through the entire life cycle, or products thathave reduced the greenhouse gas in its manufacturing processes.
Products made from recycled materials, products designed with easy to-recycle
components, products made from materials or with design facilitating volume

Zero emission

reduction for lowering waste volume, products designed to share common(Only available in Japanese)components with other products or products designed as common components,
products that have reduced waste volume in any one of all manufacturing
processes.
The products that meet one of the followings.
1. Products that do not use the ozone-depleting substances in all its fabrication

Elimination of materials that have an impact on
the environment(Only available in Japanese)

processes.
2. Products that contain environmentally hazardous substances less than theregulation stated value.
3. Products that do not generate the environmentally hazardous substances
exceeding the regulation stated values on using or disposing.
Products that result in overall energy savings by such means as reducing the use

Resource savingsof raw materials and components as well as scarce resources, featuring enhanced(Only available in Japanese)

longevity, allowing easier product and component maintenance, and reducing theEnvironmentally friendly products as a percentage of sales (note)use for resources in packaging.

(note) In ﬁscal 2018, the rule for the environmentally friendly products was revised (The products that reduced the greenhouse gas (GHG) in
the manufacturing process, etc.) and was reﬂected in the aggregate calculation.

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Eﬀorts to Contribute to the Environmental Impact Reduction by the Products
We are using life-cycle assessments (LCA) to visualize the reduction of CO₂ emissions generated during the use phase of
Furukawa Electric Group products by customers based on the results of calculations made when visualizing the CO₂
emissions of our core products.
In terms of the Furukawa Electric Group's core products, reductions for semiconductor lasers for optical communications
are calculated based on number of units sold, while reductions for copper foil, rectangular magnet wire, and aluminum
harnesses for the automotive sector are calculated based on the number of new vehicles equipped with these products
sold in the market in Japan. In ﬁscal 2020, rectangular magnet wire (EV/HV drive motors) was excluded from this productgroup due to transfer of business. After including Green Trough®, a recyclable resin trough product used in the ﬁelds ofrailways, roads, and renewable energy, total emissions stood at approximately 157,000 tons-CO₂/year, a slight decrease
compared to the previous year.
Looking forward, we will continue to monitor trends in global markets, expand sales and broaden the range of productlines/types that contribute to the creation of a social infrastructure that integrates information, energy, and mobility, andwiden our eﬀorts to address global ecological issues through our products.

Contribution of products avoided CO₂ emissions

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Use of the Renewable Energy

Climate Change

Furukawa Electric Group member Furukawa Nikko Power Generation Inc. owns four power plants and supplies hydroelectric
power. This provides 100% of the electricity consumed by the Nikko Works, which uses hydroelectric power to produce
copper strip products.

Eﬀorts to Reduce Greenhouse Gas Emissions

In ﬁscal 2020, renewable energy accounted for 16.5% of the Japan groupʼs consumption and 10.3% of the overseas
groupʼs consumption. The renewable energy ratio in ﬁscal 2020 declined primarily due to the renewal of power generators

The greenhouse gas emissions of Furukawa Electric Group are mainly energy originated CO₂ emissions and the sulfur

and waterways started in January 2021. We will continue our eﬀorts to increase the ratio of renewable energy use by

hexaﬂuoride emissions.

implementing proper conservation measures through ﬁscal 2022.

In ﬁscal 2020, the CO₂ emissions of the Japan group companies totaled 288,000 tons-CO₂e, an 18.3% decrease from ﬁscal
2017. CO₂ emissions of the overseas group companies totaled 331,000 tons-CO₂e, a decrease of 26.5% from ﬁscal 2017.
In addition, sulfur hexaﬂuoride emissions were reduced compared to ﬁscal 2017 through progress made in theestablishment of test facilities etc., and total greenhouse gas emissions were reduced by 249,000 tons compared to ﬁscal
2017.
Furukawa Electric Group has established "Furukawa Electric Group Environmental Vision 2050" for 2050, aiming tocontribute to a decarbonized society by reducing greenhouse gases along the entire value chain and promoting the use ofrenewable energy such as hydroelectric power and solar power throughout the group, both in Japan and overseas. Solar
power generation facilities have been installed at Furukawa Electric's Copper Foil Division and Mie Works, at the Japan
group company Totoku Electric Co., Ltd., and at overseas group companies including manufacturing bases in Mexico,
China, and India. Additionally, we also use electricity generated by geothermal power at our manufacturing bases in thePhilippines. In April 2021, the Hiratsuka Works began using green power generated by hydroelectric power plants.
Furukawa Electric will reduce CO₂ emissions during the manufacturing process of our products and contribute to the
reduction of greenhouse gases throughout the value chain.

Renewable energy ratio (Furukawa Electric and domestic group companies)(note1) For the overseas CO₂ emission coeﬃcient, the coeﬃcient foreach country according to the IEA (International Energy
Agency) is used for purchased electricity, while the domestic

Eﬀorts on Energy Saving in Factories

CO₂ emission coeﬃcient is used for non-purchased
electricity.
(note2) Emissions of greenhouse gases other than CO₂ are

Furukawa Electric Group's energy usage rate was about 20% for fuel and about 80% for electricity. In particular, weachieved energy saving in the manu facturing process with high energy usage ratio. We replaced conventional equipment

converted to CO₂ equivalent emissions using Global

with more eﬃcient production process and higher eﬃciency equipment. We implemented measures such as heat insulation

Warming Potential (GWP).

of the high temperature section of equipment considering energy balance. Also, the factory building LED lighting is
proceeding in accordance with the schedule.。

Greenhouse gas emissions

67

Solar power panels installed by Mie Works

Solar power panels installed by TOTOKU Electric Co., Ltd.

(started operation in April 2021)(started operation in January 2021)

Energy consumption

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Measures to Disclose Environmental Information

Initiatives in Logistics
In ﬁscal 2020, the Japan groupʼs freight transport volume was 187 million ton-kilometers.

Furukawa Electric Group answers questionnaires from the CDP group of institutional investors, responding to the CDP

Furukawa Electric accounted for 118 million ton-kilometers of the total, down 15.6% from ﬁscal 2017, and CO₂ emissions

Climate Change questionnaire since ﬁscal 2008 and the CDP Water questionnaire since ﬁscal 2013. In ﬁscal 2020, we

fell 15% to 13,700 tons-CO₂. Freight energy intensity increased 0.5% from ﬁscal 2017. We will continue to promotereceived a CDP Climate Change rating of A, and a CDP Water rating of B.

modal shifts, improve loading ratios, and promote joint distribution.

In order to support customers making use of CDP supply chain programs, we will participate in explanatory meetings andworkshops, and to maintain and improve our CDP score, we will continue to expand the scope of environmental data werelease and enhance our reliability. In ﬁscal 2020, we received a score of A in the CDP Supplier Engagement Rating for two
consecutive years, thanks to the cooperative eﬀorts of all relevant parties. We also participate in the Ministry of theEnvironmentʼs Environmental Reporting Platform Development Pilot Project and collaborate with The Japanese Electric
Wire & Cable Makersʼ Association and the Japan Copper and Brass Association.

CO₂emissions and energy intensity related to transportation (Furukawa Electric)

Internal Carbon Pricing
Internal Carbon Pricing In ﬁscal 2019, we began estimating internal carbon pricing. By making the prices in each businessGreenhouse gas emissions of CDP disclosure (103 tons-CO₂e/year)

division visible, we are preparing for decarbonization and working to avoid climate change risks.
In the third-party veriﬁcation of greenhouse gas emissions in ﬁscal 2020, compared to ﬁscal 2017 (the base year), we
carried out veriﬁcation of Scope 1 sulfur hexaﬂuoride emissions and Categories 1‒3, 6, and 7 of Scope 3 emissions toreport on the ﬁscal 2020 results. All energy and some water resources have also been veriﬁed.
Third Party Veriﬁcation Statement "GHG Report 2021"
Third Party Veriﬁcation Statement "Energy Consumption Report 2021"
Third Party Veriﬁcation Statement "Water Data Report 2021"

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Water Resources

Reducing Waste

Eﬀective Utilization of Water

Initiatives in the Waste Reduction

ConsumerIssuesCommunity
Involvement

As of ﬁscal 2013, Furukawa Electric Group has added eﬃcient use of water to its environmental activities and works to

Furukawa Electric Group began activities to reduce the amount of non-recyclable waste in ﬁscal 1993. Since ﬁscal 2001,

identify the amounts of water used and wastewater produced at each base. Since ﬁscal 2015, we have been working to

we have been promoting zero emission activities. As of ﬁscal 2014, we have been promoting activities to reduce the total

reduce the intensity of water consumption per net sales. While the total amount of water resources used decreased inamount of waste generated, including valuable resources.

ﬁscal 2020, the intensity of water consumption increased. The intensity of water consumption per unit of production was

In ﬁscal 2020, the intensity per net sales for Japan group companies increased by 1.2% compared to ﬁscal 2017. We are

1,450m3 /100 million yen, an increase of 8.1% from ﬁscal 2017. While we will continue to use the water resources

working to reduce the generation of waste in the production process, such as by introducing waste liquid treatment

necessary for production processes, etc., we will also continue our eﬀorts to conserve and recycle water, and manage

facilities to reduce waste liquid.

water quality and wastewater volume.

We will continue to work on the eﬃcient use and recycling of raw materials and other resources with the aim of sustainable

The CDP Water assessment used the World Resources Institute (WRI) Aqueduct tools to identify water risks at major bases

resource recycling.

within Furukawa Electric Group, and two bases at risk (Hiratsuka Works and Indonesia) were identiﬁed.
We will conduct a risk assessment that includes water resources each year and incorporate the results into BCM plans tomake improvements.

Use of water resources
Total amount of waste generated

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Chemical Substance Management

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Chemical Substance Management Activities
Furukawa Electric Group is working to reduce emissions of hazardous chemical substances, and in particular is voluntarily
reducing emissions of volatile organic compounds (VOC), which are thought to be one of the causes of photochemical

Green Activities

smog.
In ﬁscal 2020, emissions by Japan group companies decreased by 11.4% from the previous year. We will continue to takeaction to suppress emissions in our production processes and other activities, as well as reduce the use of target

Response to Customer Requests

substances.

Furukawa Electric Group has participated in JAMP (note 1) since 2009, and is implementing group-wide environmental
inspections based on the latest information from the JAMP chemSHERPA (note 2) management target substance list, which

Appropriate Management of Chemical Substances

concerns management of chemical substances contained in products. 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

We conﬁrm the handling precautions and applicable laws and regulations for chemical substances used in Furukawa

to respond promptly to customer requests.

Electric Group manufacturing processes using GHS labels and SDS (safety data sheets), and manage these substances
accordingly. Additionally, in accordance with the PRTR Law (note 2), we are working to ascertain the amounts of substances
handled, transferred, and released.

Response to Overseas Regulations and Management of Chemical Substances Contained in Products(note1) JAMP: Joint Article Management Promotion-consortium

Furukawa Electric Group has established a system for managing chemical substances contained in products at its majorbases and group companies, and is strengthening environmental product regulations, identifying environmental risks thatmust be reduced, and implementing measures according to the signiﬁcance of the risks.
Regarding compliance with the EU REACH environmental product regulations
In ﬁscal 2020, we conducted product environmental inspections of 211 substances that are candidates for approval up to(note2) PRTR Law: Law Concerning Reporting, etc. of Releases to the Environment of Speciﬁc Chemical Substances and Promoting
Improvements in Their Management.
(note3) chemSHERPA stands for "chemical information SHaring and Exchange under Reporting PArtnership in supply chain". This is a joint
communication scheme currently operated by JAMP that communicates information on chemical substances contained in products
throughout the supply chain, from upstream companies to downstream companies.

the 24th SVHC list of the EU REACH product environmental laws and regulations.

Green Procurement Activities
With regards to procurement of raw materials, components, and intermediate products used in Furukawa Electric Group
products, we conﬁrm that suppliers have established management systems for chemical substances contained in products
and evaluate how these systems are being operated, based on business division Green Procurement Guidelines. We also
conﬁrm the survey data of chemical products contained in products based on updated information regarding productenvironmental laws and regulations in order to purchase appropriate products.

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Environmental Risk Management

Biodiversity Conservation

Preventing Soil and Groundwater Pollution

Biodiversity Conservation Initiatives

Furukawa Electric Group conducts regular inspections of facilities and equipment that handle speciﬁc toxic substances toConsumerIssuesCommunity
Involvement

Furukawa Electric Group includes biodiversity conservation measures in its Basic Environment Policy. Throughout our

prevent the pollution of soil and groundwater. We reduce the risk of pollution through measures to prevent leaks ofactivities, we are applying Furukawa Electric Groupʼs comprehensive guidelines in relation to initiatives aimed at protecting

speciﬁc toxic substances and underground seepage, as well as through ongoing eﬀorts to switch to substitute substances.

biodiversity.
We have registered with the JBIB (note 1) (Japan Business Initiative for Biodiversity) to further develop our understanding of
biodiversity. Additionally, the group company Furukawa Research Inc. launched activities in ﬁscal 2015 to cultivate the class

PCB Management

II endangered species (note 2) of ﬂower Pulsatilla cernua within the grounds of Furukawa Electric Co. Ltd.ʼs Yokohama
Works, as part of our eﬀorts to contribute to local society. From ﬁscal 2016, cultivation activities have also been taking

Furukawa Electric Group identiﬁes the volume of highconcentration PCB-containing equipment at Furukawa Electric Co.,

place at Hiratsuka Works and Chiba Works, growing new plants cultivated from the roots of existing plants. In ﬁscal 2020,

Ltd.ʼs works and at the bases of our group companies, and carries out appropriate storage and management.

we began to share plant roots with group company Furukawa Automotive Systems to further expand cultivation of

Currently, the processing is sequentially carried out according to the plan of Japan Environmental Storage & Safety

Pulsatilla cernua. Based in Shiga Prefecture, Furukawa Automotive Systems received recognition for its cultivation of the

Corporation, and the processing has been com pleted at some of our business sites. We are conducting the analysis andclass II endangered species Pulsatilla cernua and cleaning activities in the local community conducted through its ISO

the surveys of the equipment that have the potential to contain a low concentration PCB, and those found to be the low

14001-based environmental management systems in the "Shiga Biodiversity Initiatives Certiﬁcation 2020" (note 3) program,concentration PCB contained equipment shall be properly kept, managed and disposed of while making consideration forearning the highest rating of three stars.

storage-related risks. Furthermore, we will proceed the disposal at an early stage according to the equipment updatingschedule.

(note 1) JBIB: Japan Business Initiative for Biodiversity. Established in 2008, this is a group of companies that are actively working toconserve biodiversity.
(note 2) “Class II endangered species” refers to species with an increased risk of extinction.

Compliance with Environmental Laws and Other Regulations(note 3) In 2015, Shiga Prefecture established the Biodiversity Shiga Strategy, which is based on the philosophy of “utilizing the inherent
strength of nature and protecting life across generations”. Since 2018, the Shiga Biodiversity Initiatives Certiﬁcation program has

Furukawa Elect r ic Group regula r ly conf i rms environmental laws and other regulations to determine items requiring

been used to evaluate the eﬀorts of businesses to conserve biodiversity.

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.

Cultivation activity of Pulsatilla cernua

We maintain voluntary control limits and manage operations appropriately to ensure compliance with the Air Pollution
Control Law and the Water Pollution Control Law.

Yokohama Works

We also conduct annual checks for conceivable, clear environmental impact to prevent environmental accidents or prevent
widespread impact in the event of an accident.
According to our survey on the status of our regulatory compliance, we were not in material violation of any
regulations (air, water quality, etc.).

Please see below for our response to the asbestos problem.
Response to Asbestos Concerns

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Chiba Works

Hiratsuka Works

Furukawa Automotive Systems Inc.（Headquarters / Shiga）

Furukawa Electric Group Biodiversity Conservation Guidelines
1. Evaluate the eﬀects that our business activities have on the ecosystem, and minimize the harmful eﬀects while
maximizing the beneﬁcial ones
2. To sustainably use resources and conserve biodiversity, consider more than ever the need to carry out
measures against climate change, conserve resources, recycle and reduce environmentally hazardous
substances
3. Carry out activities in collaboration with local communities to conserve biodiversity

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Green Procurement Guideline

Supply Chain

Here shows the Green Procurement Guideline to procure environment-friendly products
preferentially and continuously from our business partners who are active in the environmental
conservation activities.

Basic approach to procurement
We contribute to create the social infrastructure combining information, energy, and mobility through the relationship andco-creation with our partners. In order to realize a truly aﬄuent and sustainable society, we have been conducting fair andsincere procurement activities to take the consideration about the safety and environment, under the Furukawa ElectricGroup Procurement Policy.

1. Introduction
2. Scope of Application
3. Term Definition
4. Request to the Partners

Furukawa Electric Group Procurement Policy

5. Furukawa Electric Group Green Procurement (Imperative)
6. Operation of the Green Procurement Guideline

1. Fairness and Integrity
We are open to any and all business partners in accordance with the principle of free competition and we all act

Green Procurement Guideline (PDF 175KB)

with fairness and integrity.
2. Compliance with Laws and Regulations and CSR Procurement
Toward the realization of a sustainable society, we conduct our procurement activities considering environment

Quality Assurance Guideline

preservation and safe operation in comply with all applicable laws and regulations and we do fulﬁll our

Here shows the Quality Assurance guidelines established for understanding of the stance ofCorporate Social Responsibility.

Furukawa Electric Group.

3. Partnership
We always value relationships of mutual trust with our business partners to create new values by collaboration.
We pursue to optimize our procurement conditions from the viewpoint of quality, cost, delivery, technological

1. Requirements with Respect to Quality Assurance
2. Securing Resources

capabilities and CSR activities.

3. Ordering Process(note) In the Group, we call our business suppliers as the “Partners” to collaborate the value creation.

4. Design, Development and Change Processes
5. Purchase Process

Procurement

6. Manufacturing Process
7. Audits and Management of Nonconforming Products by Partners

CSR Procurement Guideline

Quality Assurance Guidelines for Partners (PDF 255KB)

Here shows the basic idea of deployment in CSR procurement in Furukawa Electric Group
Business partners.
1. Labor

2. Health and Safety

3. Environment

4. Ethics

5. Product Quality and Safety

6. Information Security

7. Business Continuity Plans

8. Management Systems

合作䫊伴ૅ量保ચ指南(PDF 312KB)

9. Contribution to Society
CSR Procurement Guideline 3rd edition (PDF 171KB)

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Conducting Training on Subcontracting Transactions

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Conﬂict Minerals (note)

In order to forge sound relationships with business partners through fair transactions that comply with rules andRegarding the action associated with the conﬂict minerals, we have established the group policy as a part of complianceregulations, Furukawa Electric Group provides training for employees on subcontracting transactions. In ﬁscal 2020, theactivities of RBA (Responsible Business Alliance) Code of Conduct, in the “Responsible Mineral Procurement Initiatives” andemployee education which incorporates e-learning were conducted, and we aimed to make thoroughly known the contents

making eﬀorts to inform the group companies and the business partners.

of the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors and management practice of mold.

In ﬁscal 2020, we continued the surveys on the usage status of the conﬂict minerals for the main products of Furukawa
Electric and the group companies. At the same time, we are actively promoting the procurement from the smelters

Partners Meeting and Partners Evaluation Scheme

certiﬁed by the RBA conﬂict-free smelter program.
Going forward, in addition to requesting the cooperation of group companies and our business partners in the responsible
sourcing of minerals, we will work with the Japan Electronics and Information Industries Association (JEITA), an industry

We carry out partner evaluations for partners (80% of materials and equipment purchase amount) selected based onorganization, on initiatives targeting the responsible sourcing of minerals.

purchase amount and importance. The ﬁscal 2020 partners meeting was cancelled in consideration of the COVID-19
pandemic. This year, we established the SDGs Award for the evaluation of proactive SDG-related eﬀorts in addition to theexisting Excellent Partner Awards, Group Global Partner Awards, Best Eﬀort Partner Award and Best Performance Award.

(note) Deﬁned as minerals (tantalum, tin, gold, tungsten or their derivatives) that originate in or near the Democratic Republic of the Congo
that may help to ﬁnance armed conﬂict.

We also evaluate main business partners on the basis of quality, technology, price, delivery system, degree of social
contribution and credit condition, and then, we provide feedback on our ﬁndings, in partners meeting. In addition, we
discuss the results of our evaluations with them to more closely align our awareness of procurement activities. As part of

Challenges and Future Policy

that, we accelerated the activities of Procurement Logistics in ﬁscal 2020. By selec ting the best means of thetransportation within the value chain, such as the eﬀective use of the returning vehicles, we are continuing to deal with the

We want to fully grasp the state of our CSR activities along the value chain by regularly asking our partners to complete a

cost reductions, CO₂ reductions during procurements, and “the risks of the soaring logistics costs and becoming diﬃcult toquestionnaire on their understanding of our CSR Deployment Guideline for Business Partners. We will also seek to deepentransport”.

BCM by giving encouragement to partners based on the results of our BCM questionnaire and manufacturing site survey,

In fiscal 2020, we evaluated 198 business partners and provided feedback to them. Furthermore, we requested ongoingwith the aim of improving crisis response levels along the entire value chain. Internally, we have held exercise and seminars

cooperation from business partners on business continuity and stable supply initiatives.

on the handling of BCM in order to raise our awareness. In addition, we are implementing the work style reform throughthe RPA (Robotic Process Automation) and also making eﬀorts to reduce internal risks through the standardization andduplication of the procurement operations.

Promoting CSR in procurement activities
We are promoting the CSR procurement activities in mindful of the “Environment” and the “Social” issues. Based on our
CSR Deployment Guideline for Business Partners, Existing partner and we are working together to engage in procurement
activities with “full legal compliance and fair trading practices”, “conside ration for human rights, safety and theenvironment”, “reduction of an environmental impact” and “elimination of conﬂict minerals”(note). We are also continuallyproviding encouragement at partners meeting by explaining the state of our eﬀorts to our business partners, asking fortheir cooperation with our activities, and so on.We encourage new partners to comply with the CSR Promotion Guidelines
at the start of transactions with us. Furukawa Electric Group CSR Procurement Guideline 3rd edition We published the CSR
Procurement Guidelines (third edition) at the end of ﬁscal 2020 with reference to the RBA Code of Conduct, the JEITA
guidelines and other materials, and fully informed all of our partners of the guidelines. We will eﬀectively use the CSR
Procurement Guidelines (third edition) which include additional provisions regarding the current requirements of society
when carrying out initiatives.

Value chain BCM (Business Continuity Management)
Furukawa Electric conducts regular questionnaire surveys on its main partners about their BCM measures. In ﬁscal 2020,
we held questionnaire surveys for main partners and placed the results we received from our business partners onto a
database. In this way, we have become able to quickly identify which partners are mostly likely to be aﬀected during anatural disaster.

81

82

BasicApproach

Organizational
Governance

Human Rights

Targets and Results (Procurement)：Achieved

LabourPractices：Partially achieved

FY 2020
Targets

The
Environment

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement：Not achieved

FY 2021
Results

Performance of the partners
evaluation and theenhancement of CSR
procurement questionnaire
surveysAchievement

Targets

Promotion of procurement
activities that fulﬁll social
responsibility to solve theSDGs

Ongoing implementation of the・We evaluated 198 key partners.

・Continue partner evaluation

partner assessment system andTo prevent infection, the Partners

systemutilization of feedback discussions

Meeting was canceled, andfeedback on evaluation results andan outline of the company andexplanations of its procurement
policy were provided throughindividual meetings with eachpartner.

Continue to inform partners about

・We published the CSR・Continue to fully inform all of ourthe "CSR Deployment Guidelines"

Procurement Guidelines (thirdpartners of our CSR Procurement

edition) with reference to the RBA

Guidelines. Perform SAQ for key

Code of Conduct and otherpartners.

materials and fully informed all
people concerned.
Examination and implementation of・Reviewed and increased the・Discuss measures to reinforce

measures to strengthen the value

number of supply points (andthe value chain based on the

chain by utilizing BCM

sometimes recommended to holdresults of the BCP questionnaire,questionnaire surveys and siteinventory) for important products

such as having multiple

surveys results

procurement partners.

Carry out conﬂict minerals survey

・A conﬂict materials surveys (data・Conﬂict minerals survey (data(data update survey)

update surveys) was done

update survey)

Promotion of the strategic

・CO₂ reductions during

・Promotion of the strategic“Purchasing process” activities inprocurements“Purchasing process” activities inconsideration of the value chain.

Number of partners 24 companies

consideration of

in 2019the value chain.

㱺 25 companies in 2020

83

84

BasicApproach

Organizational
Governance

Human Rights

LabourPracticesThe
Environment

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

Risk Free Design (RFD) Project

Quality

In order to achieve the quality expected by customers, it is important to identify problems at the design anddevelopment stage and to take appropriate measures before starting the production.
In this project, we are working to improve the ability in identifying problems and in solving it by the designing and

Basic Approachdeveloping engineers, also improving the process for its eﬀective implementation.

Each of the Companyʼs divisions has acquired ISO 9001 certiﬁcation. We have been contributing to the society by

In ﬁscal year of 2020, we continued to hold the training sessions to improve our ability to promote this concept andintroducing the processes of ISO9001, and constantly striving to improve quality by standardizing operations in order toexpanded divisions to learn this methods. Furthermore, we strived to deepen this concept using methods which they

provide good products and services from the customersʼ prospects.

learnd at training sessions.

Going forward, we will continue endeavoring to further enhance “MONOZUKURI ability” throughout Furukawa Electric

The proces followings this concept is shown in the "Guidelines" regarding the design and development that the Group

Group by achieving the quality expected by customers, based on a policy of Group-focused management.

has independently established. In accordance with these guidelines, each business division is promoting thestandardization that is appropriate for each business and continue to improve ﬁnding problems after using thisQuality Management Policy

guidelines.

At every stage of our operations, from research and development to manufacturing, sales, customer service andmanagement, in all sections and all hierarchies, we always strive to adhere to a PDCA management cycle based on
actual facts, maintain and improve our products, customer services and the quality of our operations and put ourmanagement policies into practice.

Issues and the future policy
In light of the recent quality irregularities in Japanʼs manufacturing industry, Furukawa Electric Group will continue tostrengthen “quality compliance” and “quality governance” by setting “guidelines” which prescribed what shall be followed
and improving their ability of auditors in quality management system.

Organizations for Improving Quality

And, in order to achieve the quality expected by customers, two projects will be continuing.

Furukawa Electric has established Furukawa Electric Group Quality Management Committee, which is chaired by the

The Quality Enhancement Project does not simply address quality improvement themes on a superﬁcial level. The project

president, as the topmost body for promoting quality management at Furukawa Electric Group level. Directed by thisdetermines the root causes of problems to improve technology in our ﬁelds of business and continues to cultivate humancommittee, Divisional Quality Management Committees led by divisional heads promote ongoing eﬀorts to maintain or

resources who excel at solving problems.

improve the quality of our products, customer services and operations.

The Risk-Free Design (RFD) project continues to promote training that empowers employees to identify potential problems
and issues in the market, and conduct MIZENBOUSHI(resolve and prevent problems) at the design and development proccess mainly, before customers use the product. The
RFD project is also working on the introduction of new systems to prevent problems.

Targets and Results (Quality)：Achieved：Partially achieved

FY 2020：Not achieved

FY 2021

Targets

Results

Strengthening offundamental Quality PowerWe have strived to conduct mutual

Achievement

Targets

Promotion Framework

Quality Enhancement Project

Reduce “failure costs” by 10% fromﬁscal 2019

For the purpose of improving the manufacturing ability,obtaining the technically valuable knowledge and reducing thestudy on how to proceed withproblem solving and its activities
and expand and deepen theactivities of the RFD Project

Committed to achieving thequality expected bycustomers!
Reduce “failure costs” by 10% fromﬁscal 2020

failure cost, we select the important issues in all business divisions and proceed the eﬀort to solve the issues. We also
aim to develop human resources with high issues-solving power in this activities.
At the end of the ﬁscal year, the report meeting on online was held to listen to each activity reports and to conductmutual study on how to proceed with problem solving.

85

86BasicApproach

Organizational
Governance

Human Rights

LabourPracticesThe
Environment

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

Activities in diﬀerent regions

Local Community Contribution, Social Contribution

The Group conducts a variety of social contribution activities in diﬀerent regions.
Activities in diﬀerent regions

Basic Policy

Going forward, we will strengthen these actions further along the three dimensions of nurturing future generations,promoting sport and culture, and living in harmony with the natural environment and local communities.

Furukawa Electric Group Basic Policy on Social Contribution Activities (Revised March, 2011)
Furukawa Electric Group will continuously undertake social contribution activities focusing on nurturing future
generations, promoting sport and culture, and living in harmony with the natural environment and local communities,
in addition to its business-related activities, in order to maintain and strengthen community ties built over centuries
and create a better tomorrow for future generations.

Furukawa Electric Co., Ltd. Locations and Divisions

Furukawa Electric Group has continued to conduct social contribution activities that are rooted in the local community.

Chiba

Encouragement of sports

Harmony with nature andgenerationand culturecommunities

●

●

●

●

●

●

●

Nikko

●

●

●

●

●

●

●

●

Yokohama

●

Tokyo

●

Copper foi

Ltd. (ELECOM)

Co., Ltd.

●

●

●

●

●

●

●

●

●

●

Generation Inc.

Foam Kasei Co., Ltd.
Furukawa Research Inc.

●

●

●

●

●

●

Memory Disk Co., Ltd.

and enhance social contribution activities within the Group, targeting the social contribution activities of our Group●●

Furukawa UACJ

companies and our bases in Japan and overseas.

activities●●

Manufacturing Co.,Ltd.
Furukawa Nikko Power

Other social contribution●

Yokohama Drumthe environmental conservation activities of the group companies, and award them every year. We are working to expandof outside organizations,external commendations

Mie

Furukawa Magnet Wire

Furukawa Electric has established the “ESG Awards”, which commends the outstanding social contribution activities andSupport and cooperation

Hiratsuka

Furukawa Elecom Co.,

ESG awards Social Contribution Award

Evaluation and opinions

Cultivation of the next●●

Myojodenki Co., Ltd.

●
●

●

●

●

●

●

●

●

●

Furukawa Electric

OFS Fitel LLC
Requests to local employment opportunities groups for people with disabilities and safety reviews to the groups
Furukawa Electric Co., Ltd.
Free evacuation mats for areas aﬀected by torrential rain in southern Kyushu
Excellent Award

Domestic subsidiaries and aﬃliates

Outstanding Performance Award

Advanced Engineering
Co., Ltd.
TOTOKU Electric Co,
Ltd.

Power Systems Co.,OFS Fitel LLC
In the early stages of corona expansion, masks, face shields, etc. were manufactured with a 3D printer and donatedto facilities for the elderly●

Miharu●Communications Inc.
The Furukawa Battery

The Furukawa BatteryCo., Ltd. (Imaichi)

●

●

●

●

●

●

●

●

●

Communication and

●

●

●

●

●

●

Broadcasting Co., Ltd.
Furukawa Precision
Engineering Co.,Ltd.
Okano Cable Co., Ltd.

Providing work guidance to outsourced facilities for people with disabilities to achieve stable sharing, cost reduction,

Kyusyu Network Cable●

Ibaragi Okano Cable
Co., Ltd.

Ltd.

●
●

Co., Ltd.

Okano Electronics Co.,

87

●

●

Furukawa

Furukawa Electric Power Systems Co., Ltd. (FEPS)
and increase in purchasing volume●

Ltd. (FEPS)

Co., Ltd. (Iwaki)

Excellent Award●

Furukawa Electric

●

●

●

●

●

●

●

●

●

88

BasicApproach

Organizational
GovernanceLabourPractices

Human Rights

The
Environment

Activities in diﬀerent regions
Cultivation of the next

Encouragement of sports

Harmony with nature andgenerationand culturecommunities●●

KANZACC
Furukawa Fitel Optical

Evaluation and opinions ofSupport and cooperation

outside organizations,external commendations●

Fair Operating
Practices

Device CO.,LTD

●

Corp.
FESZ

Promoting sport and culture
Other social contribution
activities

●

●

●

FFT

●

●

●

Tianjin Jinhe ElectricEngineering Co., Ltd.

●The Company is an oﬃcial partner of the professional soccer team JEF United

The Company supports the activities of the professional ice hockey team H.C.

Ichihara Chiba.

Tochigi Nikko Icebucks.

(TJHE)
FAPV

●

TFOC

●

FASW

●

●

●

●

（Germany）
Trocellen
Overseas subsidiaries and aﬃliates（Italy）
Trocellen（Hungary）

●

●

●

●

●

●

●

●

●

●

TSEA

●

●

●

●
●

FTC

The Company donated the former Shigenobu Okuma House and the former Munemitsu Mutsu House, which the Company maintained and managed as reception

FETI

●

●

TFU

●

●

FAST

●

●

FALP

●
●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

AFI

●

FURMEX

●

●

●

●

●

SFPOC

●

●

●

●

●

●

●

FECT

●

●

TMS

●
●

●

PFAM
FPT

●

●

●

●

●

●

●

●
●

Living in harmony with the natural environment and local communities

●

●

FCFT

facilities in Meiji Memorial Oiso House and Garden, to the national government in ﬁscal 2018.

●

●

FEL

FME

Community
Involvement●

Furukawa Logistics

Trocellen

ConsumerIssuesThe Group has conducted a variety of social contribution activities that contribute tocoexistence with local communities, including the following.

●●●

Nurturing future generations

Held a Nikko Waraku Odori danceSupported the "Let's create recycled

Providing sanitary facilities toevent (Furukawa Electric).

artwork" workshop for neighborhood

schools（Furukawa Minda Electric

sanitizers to the local(Canceled in 2020 due to the spreadelementary school students

Private LTD. ）community（Permintex Furukawa

of new coronavirus infection)(Furukawa Electric PowerDistribute face masks and hand

Autoparts Malaysia Sdn.Bhd.）

Systems).）

The Group has conducted the following activities to nurture the future generation.
Biodiversity Conservation（Harmony with nature）

The Group has made various biodiversity initiatives in each region.

The Company's Yokohama Works

In order to cultivate human

The Company donated computers

Christmas support for district

has provided work experience tours

resources who are responsible forfor local children.（Thai Furukawa

kindergartens（Trocellen）

for elementary school and junior

the future, the Company provided

Unicomm Engineering Co,, Ltd.）high school students since 2017.

workplace experience to andaccepted company visits from ﬁrstyear students at prefectural highschools in Ibaraki at the head oﬃce.

89

Participated in Furukawa-no-mori tree planting organized by the Tochigi

Monitoring and control of treated wastewater discharge parameters to ensure

Furukawa Association (Furukawa Precision Metal Industrial).

the natural state of the river（Furukawa Electric LatAm S.A.）

90

BasicApproach

Organizational
GovernanceLabourPractices

Human Rights

The
Environment

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

In ﬁscal 2020, we conducted the activities of biodiversity conservation listed below.
Nurturing future generations
Restoring the
Cooperation

Conservation ofConservation ofloss of theforest resources

rivers andecosystem duewith othersuch as tree

marineto laying work

companies /planting inresources inand factoryorganizations

consideration of

consideration of

construction inand external

the local

the local

theorganizations

ecosystem

ecosystemneighborhood orsuch as NPOs

Request forconsideration of
biodiversity
from suppliers

Survey of
biodiversity
conservation
status of
suppliers

Explanation of
the company's
biodiversity
conservation
policy to

Other activities

Customerto consider therequirements

ecosystem

for biodiversity

suppliers

another place

Furukawa Electric Co., Ltd. Locations and Divisions

Chiba

●

Hiratsuka

●

Mie

●

●

●

●

●

●

●

Yokohama

Copper foi●

Yokohama Drum●

Manufacturing Co.,Ltd.
Furukawa Research
Inc.

●

●

Furukawa Electric
Advanced Engineering●

Domestic subsidiaries and aﬃliates

Co., Ltd.
TOTOKU Electric Co,●

Ltd.
Furukawa
Communication and●●Broadcasting Co., Ltd.
Furukawa Precision
Engineering Co.,Ltd.
Okano Cable Co., Ltd.
Ibaragi Okano Cable
Co., Ltd.

●
●

●
●

●

●

●

●

●

●

Okano Electronics Co.,●

Device CO.,LTD
●

●

FASW
Overseas subsidiaries and aﬃliates

Trocellen（Germany）

91

●

●

●

●

●

●

●

●

Trocellen●（Italy）
Trocellen●（Hungary）
FTC

●

FEL

●

TMS

●

FME;

●

FPT

●

●

Ltd.
Furukawa Fitel Optical

TFOC

●

●

●

●

●

●

●

●

●

●

●

●

●

92

BasicApproach

Organizational
GovernanceLabourPractices

Human Rights

The
Environment

Fair Operating
Practices

Community
Involvement

ConsumerIssuesEconomic beneﬁts associated with environmental conservation activities (Unit: million yen) Reduction amountcompared to previous year, Minus ﬁgures indicate an increase

ESG Data

Furukawa Electric
Details of beneﬁts

FY 2016

Revenue from recycling

Environment revised at August 2021

FY 2017

Environmental conservation costs(Unit: million yen)

FY 2020

159

248

-4

-54

-117

-150

24

1,089

-925

-531

64

1,057

Reduction in water purchase costs
Total

FY 2019296

Reduction in waste disposal costs
Reduction in energy costs(note)

FY 2018

474

244

18

4

3

8

23

1,577

-680

-252

171

1,348

Furukawa Electric
Category

Business area costs
Upstream/ downstream costs
Administration costs

Research and development costs

Key activity and the outcome
Pollution prevention (air pollution, etc) energy conservation, waste

Domestic group companies

FY

FY

FY

FY

FY

2016

2017

2018

2019

2020

1,133

1,191

1,180

1,145

1,144

disposal, etc.
Recovery of packaging, drums, etc.

163

152

175

175

156

Environmental management system auditing, environmental impact

332

354

331

329

340

278

171

286

281

260

monitoring, etc.
Dvelopment of environmentally friendry products, research into
alternatives for harmful substances
2

2

2

2

0

Environmental remediation costs

Environmental impact assessments, cleanup of polluted soil, etc.

1

1

3

1

0

1,909

1,871

1,977

1,933

1,900

Total

Administration costs

Research and development costs

FY

FY

FY

FY

2017

2018

2019

2020

510

492

476

535

348

Recovery of packaging, drums, etc.

243

245

210

211

145

Environmental management system auditing, environmental impact

117

138

136

128

80

93

62

60

46

97

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

alternatives for harmful substances
43

1

Environmental remediation costs

Environmental impact assessments, cleanup of polluted soil, etc.

4

8

0

0

0

972

950

886

924

673

FY

FY

FY

FY

FY

2016

2017

2018

2019

2020

Total

Furukawa Electric + Domestic group companies
Category

Key activity and the outcome
Pollution prevention (air pollution, etc) energy conservation, waste

1,643

1,683

1,656

1,681

1,493

Recovery of packaging, drums, etc.

406

397

385

386

301

Environmental management system auditing, environmental impact

449

492

467

457

420

371

233

346

327

358

1

disposal, etc.

Dvelopment of environmentally friendry products, research into

-46

244
33

420

274

-80

77

1,072

-9

39

-16

-32

63

633

528

183

237

1,412

Details of beneﬁts

FY 2016

Revenue from recycling

FY 2017

FY 2019

FY 2020

580

493

487

5

-123

62

-196

57

1,509

-651

-611

141

2,129

Reduction in waste disposal costs

Total

FY 2018

687

488

9

43

-13

-24

86

2,210

-152

-69

408

2,674

since 2016.

Environmental conservation beneﬁts

Environmental impact

Unit

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Volume of indusrial waste disposal processed(note 1)

tons

351

115

336

369

532

Energy consumption (crude oil equivalent)

1,000 kℓ

128

137

139

139

129
7,871

Water consumption(note 2)

1,000 tons

8,304

8,175

8,427

8,987

Emissions of volatile orgainc chemical compounds

tons

196

210

203

236

236

CO₂ emissions

1,000 tons-CO₂

217

229

226

213

197

SOx emissions

tons

14

1

1

4

3

NOx emissions

tons

45

32

56

47

73

Soot emissions

tons

5

3

12

3

1

alternatives for harmful substances
Tree planting, local community cleaning activities, donations, etc.

7

7

6

5

Environmental remediation costs

Environmental impact assessments, cleanup of polluted soil, etc.

5

9

3

1

0

2,881

2,821

2,863

2,857

2,573

93

-55

monitoring, etc.

Social activity costs

Total

-69

Furukawa Electric5

Research and development costs

9monitoring, etc.
Dvelopment of environmentally friendry products, research into5

Administration costs

FY 2020239(note) It was aﬀected by the partial transfer of the business of VISCAS Co., Ltd. in October 2016 and the impact of energy price increases

disposal, etc.

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

Upstream/ downstream costs

FY 2019
334

Reduction in water purchase costs
Total

FY 2018
284

Reduction in water purchase costs

FY
2016

Key activity and the outcome

Social activity costs

Business area costs

Reduction in energy costs

Reduction in energy costs

Domestic group companies
Category

FY 2017
213

Furukawa Electric + Domestic group companies

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

Upstream/ downstream costs

FY 2016

Reduction in waste disposal costs

Social activity costs

Business area costs

Details of beneﬁts
Revenue from recycling

94

BasicApproach

Organizational
GovernanceLabourPractices

Human Rights

The
Environment

Domestic group companies
Unit

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Volume of indusrial waste disposal processed(note1)

tons

1,444

1,170

1,943

1,106

1,106

Energy consumption (crude oil equivalent)

1,000 kℓ

64

61

58

52

47

Water consumption(note2)

1,000 tons

1,985

2,187

2,088

1,878

1,507

Emissions of volatile orgainc chemical compounds

tons

108

120

115

120

79

CO₂ emissions

1,000 tons-CO₂

140

123

112

97

90

SOx emissions

tons

1

0

0

0

0

NOx emissions

tons

10

22

20

20

20

Soot emissions

tons

2

1

0

0

0

FY 2016

Environmental impact

Unit

FY 2016

FY 2017

1,795

tons

FY 2018

1,285

FY 2019

2,279

1,474

1,000 kℓ

192

198

197

191

176

1,000 tons

10,28910,362

10,516

9,865

9,378

Emissions of volatile orgainc chemical compounds

tons

304

330

318

356

315

CO₂ emissions

1,000 tons-CO₂

357

352

338

310

287

SOx emissions

tons

15

1

2

4

3

NOx emissions

tons

55

54

76

67

93

Soot emissions

tons

7

4

12

3

2

(note 1) Excluding recycled wastes

126

130

Percentage of sales on a one-year basis

50.0

51.1

64.8

66.4

68.4

Furukawa Electric
Cumulative number of registered items

83

92

105

137

149

Percentage of sales on a one-year basis

32.0

32.6

40.5

56.2

58.2

Furukawa Electric (consolidated)(note) In ﬁscal 2018, the rule for the nvironmentally friendly products was revised (The products that reduced the greenhouse gas (GHG) in
the manufacturing process, etc.) and was reﬂected in the aggregate calculation.

FY 2016

Investment and research costs (Unit: million yen)
Furukawa Electric
FY 20178,490

Of which, environment-related investment

11,919FY 2018
14,775FY 2019
18,736

FY 2020
14,195

658

1,055

571

1,139

985

7,507

8,780

9,367

10,455

9,799

Domestic group companies

Of which, environment-related investment
Total research costs

FY 2016

FY 2017

FY 2018

FY 2019

Investment and research costs

3,403

4,873

6,231

7,004

8,325

338

390

332

234

137

1,967

2,245

2,371

1,974

1,799

Of which, environment-related investment
Total research costs

95

FY 2016

FY 2017

FY 2018

FY 2019

FY 2019

FY 2020

10,362

10,516

9,912

Overseas Group Companies

2,579

2,652

2,624

2,623

9,602
2,197

Total

12,86813,014

13,14012,535

11,799Amount of wastewater discharged (Unit: 1,000 m³)
FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

9,095

9,494

9,272

8,591

8,491

8,754

8,630

7,978

8,305
7,793

Rivers

7,684

7,789

7,678

7,138

7,069
710

Oceans

787

949

934

821

Other

20

17

17

19

14

Sewerage

604

740

642

613

512

1,913

1,715

1,983

1,871

1,850

379

417

513

729

711

105

108

110

350

330

Public water area
Rivers
Oceans

0

0

0

0

0

Other

274

309

403

378

381

Sewerage

1,534

1,298

1,470

1,142

1,139

FY 2020

Furukawa Electric + Domestic group companies

Total investment

FY 2018

10,289Overseas Group Companies
FY 2016

FY 2017

Furukawa Electric＋domestic group companies

Public water area

(note 2) From FY2015, the method of counting water usage was reviewed.

Total investment

FY 2020

121

Furukawa Electric + domestic group companies

Investment and research costs

FY 2019

116

1,538

Energy consumption (crude oil equivalent)

Total research costs

FY 2018

112

FY 2020

Water consumption(note2)

Total investment

FY 2017

Cumulative number of registered items

Use of water resources (Unit: 1,000 m³)

Furukawa Electric + Domestic group companies

Investment and research costs

Community
Involvement

ConsumerIssuesEnvironmentally-friendly products Cumulative number of registered items and percentage of sales

Environmental impact

Volume of indusrial waste disposal processed(note1)

Fair Operating
Practices

FY 2020

11,893

16,79221,00625,740

996

1,445

903

1,374

1,122

9,474

11,025

11,73812,429

11,578Amount of water recycled and reused (Unit: 1,000 m³)
FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Furukawa Electric + domestic group companies

1,118

1,113

1,113

1,111

1,100

Overseas Group Companies

31,70337,121

53,837

57,77558,76822,52096

BasicApproach

Organizational
GovernanceLabourPractices

Human Rights

The
Environment

Raw materials (Unit: 1,000 Tons)

Fair Operating
Practices

Community
Involvement

ConsumerIssuesAmount of recycled resources (Unit: 1,000 Tons)
FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Copper

168.5

177.8

145.6

135.2

124.0

Aluminum

7.0

6.7

7.6

13.7

8.1

Steel

2.5

2.2

2.6

2.9

4.1
4.4

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Furukawa Electric + domestic group companies

30.5

26.8

26.1

26.6

22.7

Overseas Group Companies

5.2

5.2

5.3

6.1

7.1

Furukawa Electric + domestic group companies
Other metals

4.8

5.3

5.9

7.1

Glass

0.0

0.0

0.0

0.0

0.0

Plastics

32.7

33.2

33.7

34.1

32.9

Copper

167.6

180.4

188.5

161.5

119.3

Furukawa Electric + domestic group companies

33

30

31

30

Aluminum

30.0

39.3

56.9

32.9

12.5

Overseas Group Companies

18

17

16

19

18

Steel

11.4

9.7

9.4

9.6

9.0

Total

51

47

47

49

45

0.04

Overseas Group Companies
Other metals

1.1

0.9

0.8

0.6

Glass

3.4

3.8

3.6

3.4

2.5

Plastics

40.5

41.7

54.1

52.2

48.1

Total amount of waste generated (Unit: 1,000 Tons)
FY 2016

FY 2017

FY 2018

FY 2019

FY 2020
27(note) Total amount of waste generated in Japan includes valuable resources

NOx and SOx emissions (Unit: Tons)
Greenhouse gas emissions (Unit: x104 tons CO₂e)

FY 2016

FY 2016

FY 2017

FY 2018

FY 2019

FY 2017

FY 2018

FY 2019

FY 2020

NOx

55

55

76

60

61

SOx

15

1

2

2

2

Furukawa Electric + domestic group companies

FY 2020

CO₂ (Furukawa Electric + domestic group companies)

35.7

35.3

33.8

31.0

28.8
33.1

CO₂ (Overseas Group Companies)

46.1

46.0

45.6

40.0

SF₆ (Furukawa Electric)(note)

6.3

9.0

4.9

3.2

2.8

Total

88.1

90.3

84.3

74.2

64.8

(note) According to a partial transfer of the business of VISCAS Corporation in October 2016, SF₆ (sulfur hexaﬂuoride) emissions wereadded on this values.。

Emissions of volatile organic compounds (VOC) (Unit: Tons)
FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Furukawa Electric

196

210

203

236

Domestic group companies

108

120

115

120

236
79

Total

304

330

318

356

315

Renewable energy ratio (Furukawa Electric + domestic group companies) (Unit: GWh)
FY 2016

FY 2016

FY 2018

FY 2019

FY 2020

Renewable energy ratio (Hydroelectric power generations and others)

105

110

109

113

94

Electric power consumption

619

644

643

613

569

Renewable energy ratio (％)

17.0

17.1

17.0

18.5

16.5

Renewable energy ratio (Furukawa Electric +domestic group companies＋ overseas group companies) (Unit: GWh)
FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Renewable energy ratio (Hydroelectric power generations and others)

105

110

123

142

121

Electric power consumption

1323

1387

1379

1293

1179

Renewable energy ratio (％)

7.9

7.9

8.9

11.0

10.3

Amount of ﬁnal disposal (Unit: 1,000 Tons)
FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Furukawa Electric + domestic group companies

0.3

0.4

0.4

0.4

0.4

Overseas Group Companies

9.2

12.0

11.0

12.8

12.0

97

98

BasicApproach

Organizational
GovernanceLabourPractices

Human Rights

The
Environment

Greenhouse gas emissions disclosed to CDP (1,000 tons of CO₂ e/ year)

Scope1(note1)
Scope2
Scope3(note2)

Community
Involvement

ConsumerIssues

GHG emissions per unit of sales (ton-CO₂ / 1 million yen)

FY

FY

FY

FY

FY

FY

2015

2016

2017

2018

2019

2020

155

209

238

197

172

FY 2016

143

676

671

665

646

570

504

1,649

1,584

1,636

1,689

1,764

1,410

FY 2017

FY 2018

FY 2019

FY 2020

Furukawa Electric + domestic group companies

0.793

0.702

0.678

0.660

0.660

Overseas Group Companies

1.173

0.991

0.924

0.897

0.883

(note3)Category 1：Purchased goods and services

999

Category 2：Capital goods

140

Category 3：Fuel- and energy-related activities

94

Category 4：Upstream transportation and distribution

118

Category 5：Waste generated in operations

21

Category 6：Business travel

6

Category 7：Employee commuting

23

Category 8：Upstream leased assets

6

Furukawa ElectricGroup

Fair Operating
Practices

Category 9：Downstream transportation and distribution-

List of PRTR compatible materials (Furukawa Electric and Domestic group companies) (Unit: Tons)
Volume contained
Substance

Substance

No.

Volume handled

Volume released

Volumein products/

transferreddisappeared by
combustion

1

Zinc and its compounds

31

4.1

0.0

0.4

3.7

Antimony and its compounds

362.9

0.2

15.4

347.3

53

Ethylbenzene

73.2

0.4

19.0

53.8

71

Ferric chlorides

32.2

0.0

0.0

32.2

75

Cadmium and its compounds

85.8

0.0

22.8

63.0

80

Xylene

88.9

2.2

23.6

63.2

2.1

0.0

0.8

1.4

212.8

0.2

27.7

184.9

*Consolidated into Category 4
Category 10：Processing of sold products-

Category 11：Use of sold products (note3)

1,940

Category 12：End-of-life treatment of sold products (note3)

61

Category 13：Downstream leased assets

3
2,480

Total

2,464

2,539

2,532

2,506

(note3)

2,058

82

Silver and its water-soluble compounds

86

Cresol87

Chromium and trivalent chromium compounds

8.8

0.0

0.0

8.8

88

Hexavalent chromium compounds

5.1

0.0

4.0

1.1

132

Cobalt and its compounds

3.5

0.0

0.3

3.2

Inorganic cyanide compounds (Excluding complex salt and

2.2

0.5

0.7

1.1

329.9

144

(note1) According to a partial transfer of the business of VISCAS Corporation in October 2016, SF₆ (sulfur hexaﬂuoride) emissions wereadded on this values.
(note2) Reviewed retrospectively to FY2017 based on FY2019 third-party veriﬁcation.
(note3) From FY2020, we have started calculating categories 11 and 12 of Scope 3. In FY2020, categories 11 and 12 are not includedin the total value of Scope 3 and the total value of Scope 1, 2, and 3 so that they can be compared with the previous Scope 3.

Energy consumption (Unit: 1,000 kℓ)
FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Furukawa Electric + domestic group companies

192

198

198

191

176

Overseas Group Companies

220

221

226

205

175

Total

412

419

424

396

351

CO₂ emission and energy intensity related to transportation
FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Furukawa

CO₂ emissions（1,000 tons-CO₂e）

14.9

16.1

15.5

14.9

13.7

Electric

Energy intensity（MJ/t-km)

1.66

1.69

1.68

1.70

1.70

cyanate)213

N,N-dimethylacetamide

330.2

0.1

0.1

255

Decabromodiphenyl ether

60.6

0.0

0.1

60.5

272

Copper salts (water-soluble)

4,408.3

0.1

15.9

4,392.3

296

1,2,4-trimethylbenzene

300

Toluene

9.4

0.1

0.0

9.3

159.7

46.3

34.2

79.2

304

Lead

8,876.7

0.1

0.4

8,876.2

305

Lead compounds

31,946.9

0.1

5.1

31,941.7

308

Nickel

348.8

0.0

5.3

343.5

309

Nickel compounds

83.2

0.0

16.1

67.1

332

Arsenic and its inorganic compounds

13.5

0.0

0.0

13.5

333

Hydrazine

6.8

0.0

0.0

6.8

349

Phenol

150.1

0.2

19.5

130.4

355

Bis (2-ethylhexyl) phthalate

105.0

0.0

0.0

105.0

374

Hydrogen ﬂuoride and its water-soluble compounds

19.5

0.0

2.1

17.4

384

N-propyl bromide

1.5

1.5

0.0

0.0

405

Boron and its compounds

14.0

0.5

0.6

12.9

412

Manganese and its compounds

8.4

0.0

0.0

8.4

413

Phthalic anhydride

6.4

0.0

0.0

6.4

438

Methylnaphthalene

Total

22.0

0.0

0.0

22.0

47,452.8

52.6

214.0

47,186.2(note) This list is target for substances with a transaction volume of 1 tons or more (0.5 tons or more for Class 1 Designated Chemical
Substances) for the entire Group.

99

100

BasicApproachSocialOrganizational
GovernanceLabourPractices

Human Rights

The
Environment

Fair Operating
Practices

Community
Involvement

ConsumerIssuesPeople taking volunteer leave (Number of employees)

revised at August 2021

FY 2016

Employee turnover rate by gender (Unit: %)FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Male

1.16

1.02

1.17

1.80

1.60

Female

1.79

0.86

1.62

0.83

1.50

Total

1.22

1.01

1.21

1.71

1.60

FY 2017

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

Male

45

61

73

80

86

Female

15

31

31

31

33

21

Total

60

92

104

111

119

115

FY 2019

FY 2020

2

0

0

1

Female

0

0

0

0

0

Total

2

0

0

1

0

0

People taking refresh leave (Number of employees)
FY 2016

Number of new graduate recruits by gender (Unit: People)

FY 2018

Male

FY 2017

FY 2018

FY 2019

FY 2020

Male

125

152

178

161

Female

16

15

25

17

124
26

Total

141

167

203

178

150

94

(note) “Refresh leave” is a system that allows employees with 25 years of continuous service to take 14 or more days of leave.

Clerical and technical staﬀ

Manufacturing worker

Foreign nationals

0

1

0

0

0

0

Male

0

15

46

49

53

52

Female

0

0

0

1

2

1

Total

0

15

46

50

55

53

People taking maternity/paternity leave (Number of employees)
FY 2016
Male
Ratio of employees returning to work (%)

Ratio of mid-career hires to new hires (overall) （Unit：％）2016年度
Ratio of mid-career hires to new hires (overall)

2017年度−

2018年度−

2019年度
38

2020年度33

27

FY 2017

FY 2018

FY 2019

FY 2019

FY 2020

21

25

31

100

100

100

100

100

Female

28

12

10

10

12

Ratio of employees returning to work (%)

100

100

100

90

100

Total

35

39

31

35

43

Ratio of employees returning to work (%)

100

100

100

97

100

FY 2016

FY 2020

Male

99.7

98.5

97.4

97.6

99.0

Female

97.8

98.3

99.4

99.3

97.0

Total

99.5

98.5

99.1

99.1

99.0

Overtime work hours per person (Unit: Hours per month)
FY 2016

FY 201827

People taking nursing care leave (Number of employees)

Ratio of labor union membership (Unit: %)FY 2016

FY 20177

FY 2017

FY 2018

FY 2019

FY 2017

FY 2018

FY 2019

FY 2020

Male

0

0

0

1

0

Ratio of employees returning to work (%)

−

−

−

100

−

Female

0

0

0

1

0

Ratio of employees returning to work (%)

−

−

−

100

−

Total

0

0

0

2

0

Ratio of employees returning to work (%)

−

−

−

100

−

FY 2020

Direct work

24.86

27.97

27.19

26.04

20.10

Indirect work

19.66

19.25

19.33

20.95

22.95

Total

22.47

23.50

23.17

23.18

21.19

Ratio of non-regular employees (unit: %) ((1): re-employed, part timers, term-limited employees) / ((1) + Regular
employees)
FY 2016
Furukawa Electric

FY 2017
2.77

FY 2018
3.38

FY 2019
4.04

FY 2020
4.30

7.40

Regular annual leave (Unit: Days)
FY 2016

FY 2017

FY 2018

FY 2019

Ratio of employees subject to HR evaluation (Unit: %)FY 2020

Days carried over per person (A)

22.6

20.8

18.3

21.5

20.7

Days granted per person (B)

24.1

24.3

24.0

23.9

23.8

FY 2016
Days acquired per person (C)Acquisition rate (C B) (%)

101

13.9
57.7

14.7
60.3

15.2
63.2

15.4
64.4

13.1

FY 2017

FY 2018

FY 2019

FY 2020

Target control system

42

42

41

39

54

Absolute and relative evaluations based on ranking

100

100

100

100

100

Furukawa Electric

55.2

102

BasicApproach

Organizational
GovernanceLabourPractices

Human Rights

The
Environment

Training costs per employee (Unit: 1,000 yen)
FY 2016

Community
Involvement

ConsumerIssuesFrequency rate of accidents resulting in time oﬀ work
FY 2017

Furukawa Electric

Fair Operating
Practices

FY 2018−

FY 2019

109

FY 2020

114

FY 201672

72(note) Calculated from FY2017

FY 2017

FY 2018

FY 2019

FY 2020

Furukawa Electric

0.28

0.63

0.48

0.59

0.11

Domestic group companies

0.72

0.30

0.56

0.32

0.21

(note) Frequency rate = (No. of casualties / Total actual work hours) x 1,000,000

Number of male and female employees
Number of deaths among regular employees
FY 2016
Number of people

FY 2017

FY 2018

FY 2019

FY 2020

3,338

3,350

3,465

3,548

3,599

Percentage (%)

91

91

91

90

88

Number of people

313

335

351

377

485

9

9

9

10

12

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Male
Furukawa Electric

0

0

0

0

0

Furukawa Electric
FemalePercentage (%)(note) Personal injury and disease not included

Number of deaths among non-regular employees
Number and percentage of managers by gender
FY 2016
FY 2016
Number of people

FY 2017911

FY 2018

905

FY 2019

929

FY 2020

Furukawa Electric

908

931

Male
Percentage (%)

97

97

97

97

97

Number of people

26

31

31

32

33

Percentage (%)

3

3

3

3

3

FY 2017

FY 2018

0

FY 2019

0

FY 20200

00(note) Contractors not included

Furukawa Electric
FemaleNumber of employees receiving GENBA-RYOKU reinforcement training (Unit: People)(note) Key employees or higher

FY 2016

Employment rate of disabled persons (Unit: %)FY 2016
Real employment rate

FY 2017
2.31

FY 2018
2.23

FY 2019
2.12

FY 2017

FY 2018

FY 2019

FY 2020

Furukawa Electric

215

184

305

302

71

Domestic group companies

265

121

101

95

12

Total

480

305

406

397

83

FY 2020
2.14

2.09

Number of complaints regarding products and services
Ratio of the Works certiﬁed by OSHMS (Unit: %)FY 2016
Furukawa Electric

FY 2016
Furukawa Electric

FY 2017

FY 2018

83

83

FY 2019
83

FY 2017
0.89

FY 2018
0.79

FY 2019
0.63

FY 20200.58

0.41

FY202083

80(note) Ratio in the case where FY2015 results are taken as 1.00

(note) Works having production departments

Number of suppliers who conducted monitoring (environmental and social aspects) (Unit: Companies)
Occupational Health and Safety training
Furukawa Electric

Number of employees receiving safety training (Total number of people per year)
FY 2016
Furukawa Electric

FY 2017979

FY 2018
1,001

FY 2019
1,345

FY 2016

FY 2017

FY 2018

FY 2019

Number of evaluated suppliers（Main Suppliers)

196

199

213

199

Number of suppliers attended at the Partners Meeting

57

55

57

59

Number of suppliers tried CO₂ reduction by Procurement logistics

4

7

20

24

FY 2020
198−(note)

25

FY 2020
1,890

1,490

(note) From the perspective of preventing new coronavirus infections, we have canceled the Partners Meeting.

Number of employees receiving health training
FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Total number of people

2,073

3,707

7,109

6,271

7,391

Total time (Unit: Hour)

2,451

3,111

3,584

2,929

2,803

Furukawa Electric

103

104

BasicApproach

Organizational
GovernanceLabourPractices

Human Rights

The
Environment

Education by hierarchy (Units: Person)
LectureOthersTargetFY 2016

FY 2017

FY 2018

FY 2019

Fair Operating
Practices

Revised August 2021

FY 2020

Executive training

Newly appointed oﬃcers (full-time, part-time) (note 1)

23

18

6

9

6

Training for section managers

New section managers and managers (note 2) (note 3)

52

79

69

93

88

Training for key employees

Newly appointed managers and full-time employees (note 2)

42

49

53

65

0(note 4)

New employee training

New employees (note 2) (note 3)

57

92

104

109

108

Sales by region and overseas sales ratio （Unit: million yen）
FY 2016

Sales by region(note 1) Furukawa Electric(note 2) Furukawa Electricand employees dispatched to other companies(note 3) Human rights education included in the lecture(note 4) It will be postponed for one year to review the training, and will be held all at once in 2021.

FY 2016
Number of participants togroup companies

seminars in Japan

Overseas Group Companies

FY 2017306

Number of participants to

FY 2018
246

FY 2019

FY 2020510,663521,281495,658

China

82,03996,911

94,00675,059435,195
82,777

Asia (except Japan,China)

155,983

193,059

213,260

183,033

141,029

North and Central America

82,302

84,746

72,67778,302

78,179South America,Europe and others

69,701

81,95290,364

82,386

74,418

Consolidated sales

843,344967,333

991,590

914,439

811,600

Overseas sales

390,027456,669

470,309418,781

376,403

46.2

47.2

47.4

45.8

46.4

FY 2020
709

654

40

38

128

44

12

(Bangkok)(Jakarta)(Philippines,(Vietnam)(Singapore)

Tianjin,seminars overseas

FY 2018

453,317(note) Sales are classiﬁed into countries or regions based on the location of customers

FY 2019541

FY 2017Japan

Overseas sales ratio (%)

Number of employees trained in competition law compliance and bribery regulations (Units: Person)

Furukawa Electric + Japan

Community
Involvement

ConsumerIssuesNumber of patent rights （Unit: patents）
FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Domestic patents

4,619

4,644

4,605

4,523

4,388

Overseas patents

2,289

2,507

2,712

2,910

2,976

6,908

7,151

7,317

7,433

7,367

Furukawa Electric

Shenzhen andShanghai)

Total

Number of employees trained in the Subcontract Act and security trade control (Units: Person)
FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020Subcontract Act

505

670

627

532

557

1,176

Security trade control

594

671

853

1,125

997

1,255

Furukawa Electric + Japan group companies

Governancerevised at August 2021

Number of directors (Units: Person)
FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

Directors

12

12

12

12

12

Outside directors

5

5

5

5

5

11
5

Independent directors

3

3

3

5

5

5

Female directors

0

0

0

1

1

1

Furukawa Electric(note) As of the end of the ﬁscal year, however, as of June 24, 2021 in ﬁscal 2021

105

106

BasicApproach

Organizational
Governance

Human Rights

LabourPracticesThe
Environment

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

Environmental (GHG Reduction)

External Evaluation
S&P/JPX Carbon Eﬃcient Index
Furukawa Electric is selected as a constituent of the S&P/JPX Carbon Eﬃcient Index. The
Company's decile classiﬁcation in the capital goods category, which is in the mid impact group,

SRI Index・ESG Index

is 8. The carbon disclosure status is "Disclosed." (As of April 2021)
The index of the S&P Dow Jones Indices focuses on the E (environmental) in ESG. It is

Environmental, Social and Governance Practices

selected as an index for ESG investment by the Government Pension Investment Fund (GPIF).

FTSE4Good Index Series／FTSE Blossom Japan Index
Furukawa Electric was selected as a constituent of the FTSE4Good Index Series and the FTSE Blossom Japan Index (As ofJune 2021)
S&P/JPX Carbon Eﬃcient Index

The FTSE4Good Index Series is a stock index consisting of stocks demonstrating

2018

2019

2020

2021

●

●

●

●

strong ESG (Environmental, Social and Governance) practices as deﬁned by
FTSE Russell. The FTSE Blossom Japan Index, which has also been developed byEnvironmental, Social and Governance Practices

FTSE Russell, reﬂects the performance of Japanese companies that demonstratestrong environmental, social and governance (ESG) practices. The FTSE Blossom

SOMPO Sustainability Index

Japan Index is an ESG index used by the Government Pension Investment Fund(GPIF). It is one of the leading indices for ESG investment.

Furukawa Electric is selected as a constituent of the SOMPO Sustainability Index
2018

2019

2020
●

FTSE4Good Index SeriesFirst time●

FTSE Blossom Japan Index

First time2021

of SOMPO Asset Management Co., Ltd. (As of June 2021)●●

ESG evaluation, certiﬁcation

Social (Empowerment of Women)

Environment (climate change, Media Surveywater security and supply chain)

MSCI Japan Empowering Women Index (WIN)Furukawa Electric is selected as a constituent of the MSCI Japan Empowering Women Index (WIN). (As of June 2021)

CDP

The index of MSCI focuses on the S (social) in ESG and is an ESG index

Furukawa Electric has responded to the CDP questionnaire about climate change

composed of Japanese stocks demonstrating good gender diversity practices. It

since ﬁscal 2008 and has responded to the questionnaire about water security

is selected as an index for ESG investment by the Government Pension

since ﬁscal 2013. Below are the respective assessments of CDP Climate Change,

Investment Fund (GPIF).

Water Security surveys and CDP Supplier Engagement Rating (SER).

THE INCLUSION OF Furukawa Electric Co., Ltd. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS,SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF
2017

2018

2019

2020

MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS

Climate change

C

B-

B

A

AFFILIATES.

Water security

B

B-

B

B

Supply chain

B-

A-

A

A

Furukawa Electric Co., Ltd. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF

2018
MSCI Japan Empowering Women Index (WIN)

107

2019

2020

2021

●

●

●

※ We have been responding to the climate change survey since 2008 and responding to the water security survey since 2013.。

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Organizational
GovernanceLabourPractices

Human Rights

The
Environment

Environmental (GHG Reduction)

Fair Operating
Practices

Community
Involvement

ConsumerIssuesSocial (Health Management)

SBT (Science Based Targets)

Health Management Brand of the Ministry of Economy, Trade andIndustry

In ﬁscal 2018, Furukawa Electric Group has set the Environmental Targets 2030
Furukawa Electric was selected as a Health Management Brand in the non-ferrous metal

and applied for SBT(note) and got certiﬁed in ﬁscal 2019.

industry for the ﬁrst time in 2019 as a listed company that strategically promotes
Please see the press release here (Only Available in Japanese)

employees' health management in relation to the management of the company. The HealthManagement Brand is created jointly by the Ministry of Economy, Trade and Industry and
the Tokyo Stock Exchange to showcase excellent listed companies in terms of healthmanagement that are appealing to investors that emphasize an increase in corporate value

Social (Empowerment of Women)in the medium to long term.

The Nadeshiko Brand of the Ministry of Economy, Trade and Industry

2017

In 2018 and 2020, Furukawa Electric was selected as a Nadeshiko Brand in non-ferrous

2018

2019

Health Management

2021

First time

metal as an excellent listed company in terms of the empowerment of women. The
Nadeshiko Brand has been created jointly by the Ministry of Economy, Trade and

2020

●

Health & Productivity Management Organization of the Ministry of
Economy, Trade and Industry

Industry and the Tokyo Stock Exchange to show excellent listed companies in terms of
the empowerment of women as companies appealing to investors that emphasize an
increase in corporate value over the medium to long terms.

Furukawa Electric was certiﬁed by the Ministry of Economy, Trade and Industry as one of
the Health & Productivity Management Organizations.

2017
The Nadeshiko

2018

2019

●
First time

2020

2021

●

Certiﬁed as an Excellent Eruboshi Company under the Female
Participation Promotion Act

2017

2018

2019

2020

2021

○

○

○

●／○

●

Health & Productivity Management
Organization, White 500

Furukawa Electric has developed a plan of action for general employers under the Act on the
Promotion of Female Participation and Career Advancement in the Workplace, which came

※ ● Health & Productivity Management Organization

into force in April 2016 and has achieved Eruboshi (L star; L stands for lady, labor and※ 〇 White 500

laudable) third stage (highest rating) certiﬁcation as an excellent company in terms of theempowerment of women.
Other (Intellectual Property)

Clarivate Top 100 Global Innovators 2021
Social (Cultivation of the Next Generation)

Kurumin Certiﬁcation from the Ministry of Health, Labour and Welfare
Achieved as a Company Cultivating the Next Generation

Furukawa Electric was included in the list of Clarivate Top 100 Global Innovators 2021 selected by
Clarivate Analytics. The Company was listed for the fourth consecutive period out of six total listings(2014, 2015, 2017, 2018-2019,2020 and 2021).

Furukawa Electric has achieved Kurumin certiﬁcation three times (2007, 2010 and 2015)
under the Act on Advancement of Measures to Support Raising Next-Generation Children. Asa certiﬁed employer, the Company is actively supporting child rearing.

2014
Clarivate Top 100●

Global Innovators

First time

2015
●

2016

2017

2018-19

2020

2021

●

●

●

●

Furukawa Electric Awarded “Top 100 Global Innovators 2018-19” - Selected in the Top 100 Global Innovative Companies
and Research Organizations in Strategic Intellectual Property Activities -

109

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Organizational
GovernanceLabourPractices

Human Rights

The
Environment

Media Survey

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

Participation in Initiatives

Toyo Keizai CSR Ranking

2021 CSR Ranking

Participation in Initiatives

Toyo Keizai CSR Ranking is based on the evaluation of CSR and ﬁnancial performance interms of the use of human resources, the environment, governance and sociality, proﬁtability,

Environment, Social, Governancesafety and scale.
(Source: Toyo Keizai Inc. 2021 CSR Ranking (16th) Report)

United Nations Global Compact
Furukawa Electric has been involved the United Nations Global Compact since February 24,
2020. The Group believes that respecting and fulﬁlling the ten principles of the United Nations
Global Compact will lead to the strengthening of the management base in order to continue
sustainable growth as a global company.

The Sustainable Development Goals (SDGs)“Furukawa Electric Group Vision 2030” was formulated to provide clarity for thegroupʼs business domains based on the “Sustainable Development Goals(SDGs)”.
The Sustainable Development Goals (SDGs), set in 2015 by the United Nations
Summit and intended to be achieved by the year 2030, are a collection of 17

Toyo Keizai CSR Ranking

2015

2016

2017

2018

2019

2020

222

160

185

159

165

138

NIKKEI management survey

3th NIKKEI SDGs management survey
The Company was received “3.5 stars” in the 3th NIKKEI SDGs management survey. And, theCompany was rated at “A++”in SDGs Strategy and Economic Value, “A+”in Social Value , “S”in
Environmental Value , and “S”in Governance.

global goals and 169 targets.

Environment

Task Force on Climate related Financial Disclosure TCFD
Furukawa Electric has agreed with the recommendations of the Task Force on
Climate related Financial Disclosures (TCFD) on January, 2020. At the same time,
Furukawa Electric has been involved the TCFD Consortium.
News Release

5th NIKKEI Smart Work management survey
The Company was received “3.5 stars” in the 5th NIKKEI Smart Workmanagement survey. And, the Company was rated at “A++”in Human Resources
Utilization , “A++”in Innovation Capability , and “A”in Market Development
Capability.

111

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Organizational
Governance

Human Rights

LabourPracticesThe
Environment

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement

The Ministry of the Environment ”COOL CHOICE”
Furukawa Electric supports COOL CHOICE, an initiative of the Ministry of theReference data

Environment to encourage wise choices to mitigate global warming, including
buying products, using services and choosing lifestyles that contribute to acarbon-free society, to achieve the target of a 26% reduction in greenhouse gas
emissions in ﬁscal 2030 from ﬁscal 2017.

Occupational Health and Safety Scope of the frequency rate of accidents resulting in time oﬀ
work (FY2020, as of March 2021)
34 Domestic group companies

SocialNational Federation of UNESCO Associations in Japan
Furukawa Electric is a supporting member of the National Federation of UNESCONTEC Ltd.

Okano Electric Wire Co., Ltd.

Okumura Metals Co., Ltd.

KANZACC Co., Ltd.

Shoden Seiwa Co., Ltd.

TOTOKU Electric Co., Ltd.

Foam Kasei Co., Ltd.

Furukawa Automotive Systems Inc.

Furukawa S and D Co., Ltd.

Furukawa Elecom Co., Ltd.

Furukawa Sangyo Kaisha, Ltd.

Furukawa Communication and Broadcasting

Furukawa Industrial Plastics Co., Ltd.

Furukawa Precision Engineering Co., Ltd.

Furukawa Techno Material Co., Ltd.

Furukawa Electric Advanced Engineering

Furukawa Electric Ecotec Co., Ltd.

Associations in Japan, which works in Japan and overseas primarily in the ﬁeld of
education.

Co., Ltd.

Furukawa Research Inc.

Co., Ltd.
Furukawa Electric Industrial Cable Co., Ltd.

Furukawa Electric Power Systems Co., Ltd.

The Furukawa Battery Co., Ltd.

Furukawa Nikko Power Generation Inc.

Furukawa New Leaf Co., Ltd.

Furukawa Network Solution Corp.

The Furukawa Finance and Business Support

Furukawa Logistics Corp.

Furukawa FITEL Optical Device Co., Ltd.

Co., Ltd.

Main participating organizations
Corporate members of Keidanren (Japan Business Federation)
Chairman of the Japan Copper and Brass Association(As of 1 June 2021)

Furukawa Magnet Wire Co., Ltd.

Furukawa UACJ Memory Disk Co., Ltd.

Furukawa Life Service Inc.

Miharu Communications Inc.

Myojodenki Co., Ltd.

Yokohama Drum Manufacturing Co., Ltd.

Riken Electric Wire Co., Ltd.

(As of 26 May 2021)

Director of the Japanese Electric Wire & Cable Makers' Association(As of 4 June 2021)

Environmental Management Scope of the environmental management (FY2020, as of March
2021)

Councilor of the National Federation of UNESCO Associations in Japan (As of 12 June 2021)
30 Domestic group companies
NTEC Ltd.

Okano Electric Wire Co., Ltd.

KANZACC Co., Ltd.

Shoden Seiwa Co., Ltd.

TOTOKU Electric Co., Ltd.

FITEC Corp.

Furukawa Automotive Systems Inc.

Furukawa Sangyo Kaisha, Ltd.

Furukawa Communication and BroadcastingCo., Ltd.

Furukawa Industrial Plastics Co., Ltd.

Furukawa Precision Engineering Co., Ltd.

Furukawa Techno Material Co., Ltd.

Furukawa Electric Advanced Engineering

Furukawa Electric Ecotec Co., Ltd.

Furukawa Electric Industrial Cable Co., Ltd.

Furukawa Electric Power Systems Co., Ltd.

The Furukawa Battery Co., Ltd.

Furukawa Logistics Corp.

Furukawa Magnet Wire Co., Ltd.

The Furukawa Finance and Business Support

Miharu Communications Inc.

Co., Ltd.

Co., Ltd.

113

Riken Electric Wire Co., Ltd.

Furukawa Network Solution Corp.

Furukawa New Leaf Co., Ltd.

Furukawa Research Inc.

Foam Kasei Co., Ltd.

Furukawa Nikko Power Generation Inc.

Furukawa Elecom Co., Ltd.

Myojodenki Co., Ltd.

Furukawa FITEL Optical Device Co., Ltd.

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Organizational
GovernanceLabourPractices

Human Rights

58 Overseas group companies
American Furukawa, Inc.

Chongqing Changhua Automobile Harness Co., Ltd.

FE Magnet Wire (Malaysia) Sdn. Bhd.

Furukawa (Thailand) Co., Ltd.

Furukawa Auto Parts (Huizhou) Co., Ltd.

Furukawa Automotive Parts (Dongguan) Ltd.

Furukawa Automotive Parts (Vietnam) Inc.

Furukawa Automotive Systems (Thailand) Co., Ltd.

Furukawa Automotive Systems Lima Philippines, Inc.

Furukawa Automotive Systems Mexico S.A. de C.V.

Furukawa Automotive Systems Vietnam Inc.

Furukawa AVC Electronics (Suzhou) Co., Ltd.

Furukawa Cabos e Acessorios Ltda.

Furukawa Circuit Foil Taiwan Corporation

Furukawa Electric (Shenzhen) Co., Ltd.

Furukawa Electric Autoparts Central Europe s.r.o.

Furukawa Electric Autoparts Philippines Inc.

Furukawa Electric Copper Foil Taiwan Co., Ltd.

Furukawa Electric Europe Ltd.

Furukawa Electric Hong Kong Ltd.

Furukawa Electric Institute of Technology Ltd.

Furukawa Electric LatAm S.A.

Furukawa Electric Morocco SARL

Furukawa Electric Singapore Pte. Ltd.

Furukawa FITEL (Thailand) Co., Ltd.

Furukawa FITEL Optical Products (Shanghai) Co., Ltd.

Furukawa Industrial S.A. Sucursal Argentina

Furukawa Metal (Thailand) Public Co., Ltd.

Furukawa Mexico S.A. De C.V.

Furukawa Minda Electric Pvt. Ltd.

Furukawa Precision (Thailand) Co., Ltd.

Furukawa Shanghai, Ltd.

Furukawa Wiring Systems Mexico S.A. de C.V.

HT Italia Holding S.r.l.

Jiangsu OFS Hengtong Optical Technology Co., Ltd.

OFS Fitel Denmark Aps

OFS FITEL Deutschland GmbHOFS Fitel, LLC

OFS RUS Fiber Optic Cable Company

P.T. Furukawa Automotive Systems Indonesia

P.T. Furukawa Optical Solutions Indonesia

P.T. Tembaga Mulia Semanan, Tbk.

Permintex Furukawa Autoparts Malaysia Sdn.Bhd.

POLIFOAM MUANYAGFELDOLGOZO KFT

Shenyang Furukawa Cable Co., Ltd.

Siam Furukawa Co., Ltd.

SuperPower Inc.

Suzhou Furukawa Power Optic Cable Co., Ltd.

Taiwan Furukawa Electric Co., Ltd.

Taiwan Furukawa Magnet Wire Co., Ltd.

Thai Fiber Optics Co., Ltd.

Thai Furukawa Unicomm Engineering Co., Ltd.

Tianjin Jinhe Electric Engineering Co., Ltd.

Trocellen GmbH

Trocellen Italy S.p.A.

Trocellen S.E.A. Sdn. Bhd.

Wuhan Furukawa Automotive Systems Co., Ltd.

Xin Furukawa Metal (Wuxi) Co., Ltd.

Environmental Management Scope of the environmental accounting (FY2020, as of March 2021)
20 Domestic group companies
Okano Electric Wire Co., Ltd.

KANZACC Co., Ltd.

Shoden Seiwa Co., Ltd.

TOTOKU Electric Co., Ltd.

Furukawa Automotive Systems Inc.

Furukawa Sangyo Kaisha, Ltd.

Furukawa Communication and Broadcasting

Furukawa Industrial Plastics Co., Ltd.

Furukawa Precision Engineering Co., Ltd.

Furukawa Electric Advanced Engineering

Furukawa Electric Industrial Cable Co., Ltd.

Co., Ltd.
Furukawa Techno Material Co., Ltd.

Co., Ltd.
Furukawa Electric Power Systems Co., Ltd.

The Furukawa Battery Co., Ltd.

Furukawa Magnet Wire Co., Ltd.

Miharu Communications Inc.

Riken Electric Wire Co., Ltd.

Foam Kasei Co., Ltd.

Furukawa FITEL Optical Device Co., Ltd.

NTEC Ltd.

115

The
Environment

Fair Operating
Practices

ConsumerIssuesCommunity
Involvementhttps : / / www. fur ukawa. co . jp/ en/