Environmental Performance

Targets and Performance of Environmental Management
Furukawa Electric has set the Medium-Term Plan for Environmental Preservation Activities 2005 and implemented environmental preservation activities from fiscal 2003 to fiscal 2005. In addition, Furukawa Electricand its group have set common activity targets for consolidated environmental management to promote these
activities. For the performance for fiscal 2005, the final fiscal year of the plan, although the targets for the
reduction of the emission of greenhouse gases were not satisfied, we were able to attain the general targets.
Building upon these, we have formulated the Medium-Term Plan for Environmental Preservation Activities 2009as our next medium-term targets.
TargetTargets and Performance of Furukawa Electric

Performance

Targets and Performance of Consolidated Environmental Management

Waste reduction activities

Targets and performance for the reduction of the amount of waste outsourced for processing
2005 Target
50% reduction
compared tofiscal 2000

2009 Target
50% reduction
compared tofiscal 2004

2005 Target
30% reduction
compared tofiscal 2000

2009 Target
50% reduction
compared tofiscal 2004

2006 Target
20% reduction
compared tofiscal 2004
Evaluation

Evaluation（→ P9）(fiscal year)

Zero-emission activities

Targets and performance for the reduction of the amount of direct landfill processing
2005 Target
60% reduction
compared tofiscal 2000

2009 Target
50% reduction
compared tofiscal 2004

2005 Target
50% reduction
compared tofiscal 2000

2009 Target
50% reduction
compared tofiscal 2004

2006 Target
20% reduction
compared tofiscal 2004
Evaluation

Evaluation（→ P9）(fiscal year)

Activities to prevent global
warming

Targets and performance for the reduction of greenhouse gas emissions
2005 Target
5% reduction
compared to
Evaluation fiscal 2000
increase2005 Target
19% reduction
compared tofiscal 2000

Evaluation

2006 Target
22% reduction
compared to 2009 Target
fiscal 2000 25% reduction
compared tofiscal 2000（→ P10）2005

2009 Target
10% reduction
compared tofiscal 2000
(fiscal year)

Use of HFC, PFC

2005 Target
Eliminate use of
HFC, PFC
Marginal use in someof our products
Evaluation

Fiscal Year Targets
Furukawa Electric set the annual target of “Priority Environmental Preservation Activity
Targets,” and these targets were employed in the objective, targets and implementation
programs under the environmental management system for the individual business bases
to promote these activities. Our affiliated companies also set their unique targets with respect to the common activity targets of the consolidated environmental management andpromoted their activities.
Evaluation Standards : ◎Substantially achieved ○Achieved △Slightly underachieved ×Underachieved

Targets and Performance of Furukawa Electric

Targets and Performance of Consolidated Environmental Management

Chemical substancecontrol activities

Targets and performance for the reduction of chemical substance emissions
Emissions of specific substances

Emissions of volatile organic compounds

2005 Target
54% reduction
compared tofiscal 2000

2006 Target
12% reduction
compared tofiscal 2004 2009 Target

30% reduction
compared tofiscal 2004

Evaluation

Emissions of chlorinated organic compounds

Emissions of volatile organic compounds

2009 Target
30% reduction
compared tofiscal 2004
2005 Target
50% reduction
compared tofiscal 2000 Evaluation（→ P11）(fiscal year)

Use of chlorinated organic compounds

Medium-term 2009 target
Eliminate use by fiscal
2008

目標

Green activities

TargetTargetTargetTargetMake procurement rate
to 100% for 23 general
purpose items including
office supplies

1. Make procurement rate
100% for 50 general
purpose items
2.Build the FGM system
for all factories subject
to RoHS Directive

Expansion of the number of
items under green procurement(general purpose items) and rollout to the Group Companies

Make procurement rate to 100%for items under green procurement (general purpose items)

Strengthen promotion of green
product management

Strengthen promotion of green
product management

Performance

Evaluation

○

100％

Build FGM system and roll out to the
supply chain by the end of 2007, establish by the end of 2008

Build FGM system by the end of 2007,
establish by the end of 2008（→ P12）*The FGM system is a mechanism to manage the content of regulated hazardous substances for Furukawa Electric products.

Eco-design activities

TargetTargetTargetTargetCreate models in preparation for the introduction of LCA

Make the sales percentage of environmentally friendly products
among new products to100%

Promotethe increased environ製品の環境性能向上の促進
mental performance of products
・新製品に置ける環境調和
Increase the percentage of environmentallyfriendly
products among new products
製品比率を向上する
Introduce environmental performance
・環境性能指標を導入する
indices

Promote the increased environmental performance of products

Performance

Evaluation△

Implement evaluationof telecommunication
cables, power cables
and automotive parts at
the production stage（→ P13）



Make the sales percentage of environmentally friendly products to 100%

Environmental Performance

Environmental Management System
Environmental Management Organization
At Furukawa Electric, the Director in chargeof the environment acts as the Chairman of theCentral Committee for Environmental Management, which has been set up to promote environmental preservation activities for the entire
company. In addition, Furukawa Electric is promoting the Group’s environmental preservation
activities in conjunction with its affiliated companies at the Liaison Meeting for Consolidated
Environmental Management. As we believethat schemes based on ISO14001 would be
effective for carrying out environmental preservation activities at the individual businessbases of Furukawa Electric and its affiliatedcompanies, we have been working towards acquiring certification. Of our affiliated companies, two companies newly acquired certification (Sunsunny Industry in December 2005 andOrganization Chart for Company-Wide Environmental Management
President

Committee for Company-Wide Promotion ofEnergy Conservation

Central Committee forEnvironmental Management

Committee for Development ofEnvironmentally-Friendly Products

Safety, Environment and Quality Promotion Dept.
Environment Committee of Works

Divisional Environment Committee

Expert Committee
Energy Conservation Committee,
Industrial Waste Committee

Furukawa Precision Engineering in July 2006),
and all of Furukawa Electric’s business bases
and consolidated environmental companies

Committee for Green Product Management
Environmental Personnel Meeting
Liaison Meeting for
Consolidated Environmental Management

have acquired ISO14001 certification.

Conducting Environment Related Education
The Furukawa Electric Group is conducting
a variety of educational sessions to heighten
awareness of the environment among our employees.
●ISO14001 Related Education
Two seminars were conducted by the company's instructors to train internal environmental auditors, which included participants from
our affiliated companies. 45 internal auditors were trained at these seminars. We also
held two instructional seminars on the revised
version of ISO14001. In addition, we held aseminar on positive environmental aspects
conducted by external instructors. There were
27 participants at this seminar, mainly from the
EMS Office of the individual business bases andaffiliated companies. Brush-up seminars forinternal auditors aimed at our affiliated companies were also held.
●Environment-related Education
We conducted education sessions on environmental problems in general for a total of 50
of our new employees and second-year employees. In addition, at each works and workplace, we conducted as necessary a generalenvironmental education session at the time
when employees are assigned to a division, andconducted special education sessions relatingto specific work.

●Environmental Seminar for Managers
In order to further promote awareness among
managers about environmental activities, we
held an environmental seminar for managers ofconsolidated companies (the third such seminar). As instructors, we invited the managers of
the environmental divisions of major domestic
companies to lecture on the topic of “Environmental Management of Leading Global Companies.” A total of 85 top officials, including thePresident, executive directors, members of theCentral Committee for Environmental Management and personnel in charge of environmental
management at works of Furukawa Electric,
and presidents and other managers of affiliatedcompanies participated in this lecture.

Business Activities and Their Impact on the Environment
Furukawa Electric provides products by purchasing a variety of parts and raw materials, and by using energy,
including water and electric power, and chemical substances. We are working on reducing the adverse impact
on the environment produced by these activities.

Impact on the environment by the six production base works
Emissions into
the atmosphere

INPUT
Raw materials
CopperEnergyOUTPUT(*1)

Water
Chemical
substances(*2)

186,000 t

CO2

212,000 t−CO

NOx

126 t

SOx

12 t

Soot

11 t

124,000 kl

Wastewater

17 million t

Waste
Industrial waste(*3)
Recycled materials

1,516 t2

15.8 million t

2,119 t15,851 t

Chemical substances(*2)(*1)Amount of electric power, fuel oil and fuel gas used(*2)PRTR targeted substances(*3)Outsourced industrial waste disposal, excluding recycled materials

Emitted volume

188 tTransferred volume

295 t

Impact on the environment by non-production bases
Furukawa Electric has grasped the impact on the environment caused by the non-production bases of its Head
Office and three Branch Offices.

Amount of electric power

1,070,651 kWh

Amount of water used

273 m

3

Amount of paper used
Photocopier paper

28,836 kg

Newspaper

4,044 kgThe non-production bases of our Head Officeand Branch Offices are promoting power savings
and resource savings. As power saving measures, lights in rooms such as unused conference rooms are turned off and air conditioning
units are set at an appropriate temperature. As
resource saving measures, we promote the sorting of waste and the reuse of items such as photocopier paper and files, but due to the heightening of operations this year, the amount of paper
used has increased from the previous year.

Environmental PerformanceZero-Emission Activities
The Furukawa Electric Group has started its activities to reduce outsourced industrial waste disposal from1993, and has promoted zero-emission activities of waste since 2001. At the Furukawa Electric Group, zeroemission activities are defined as “activities to reduce the industrial waste commissioned to outsourced disposal that is transported from plants directly to landfill spots for final disposal.” We have promoted the recyclingof waste acid and sewage as well as the reuse of cleaning liquids.
●Performance in Fiscal 2005
Furukawa Electric We reduced outsourced industrial waste disposal by 77% compared to fiscal 2000,
attaining the fiscal target of a 50% reduction. In addition, we reduced the volume of direct land disposal by
94% compared to fiscal 2000, substantially exceeding
the fiscal target of a 60% reduction.
Affiliated Companies We reduced outsourced industrial waste disposal by 52% compared to fiscal 2000,
attaining the fiscal target of a 30% reduction. In addition, we reduced the volume of direct land disposal by
52% compared to fiscal 2000, attaining the fiscal targetof a 50% reduction.

Outsourced Disposal of Industrial Waste

Direct Landfill Disposal(tons)(tons)

8000

30000

Other affiliated companies
Furukawa-Sky

25000
20000

5000

7592

15000

7959

8452

6840

10000

5494

5000

9131

0

4934

2001

5974

6018

2002

2003

3243

3816
2004

4879

2000

3689

1000

2119
2005 (Fiscal year)

0

Furukawa Electric

1872
2543

3000

5777

Furukawa-Sky

1639

4000

5220

8274

2000

5551

Other affiliated companies

1442

6000

Furukawa Electric

9334

7000

2002
2567

3022

2000

2974
2001

1889

1657

1812

1634

2002

2003

2232

1481

504
2004

2005 (Fiscal year)

750 176

Activities of QC Circle
At the production sites, we have made environmental efforts as one of our objectives
through our QC Circle activities. The circle atthe Mie Optical Fiber Plant has undertaken toincrease the percentage of bobbin reuse andhave seen a positive effect. In the past, bobbins have been discarded, and they pinpointed
the cause to develop appropriate measures. In

uncovering the cause, they utilized the “ Repetitive why analytical Method,” and all of themembers of the circle put their heads together.
As a result of their efforts, the percentage ofreuse increased to approximately 80% fromapproximately 20%. This effort was awarded
the gold prize at the company-wide QC Circle
presentation.

Reducing Waste Disposal Costs
As part of the Furukawa Survival Plan, we
consider it crucial that environmental preservation activities directly contribute to management, and we have taken the reduction ofwaste disposal costs as an activity target. In
fiscal 2001, there was an expenditure of over
300 million yen for landfill and intermediate disposal. While decreasing the volume ofwaste itself by promoting reuse and eliminating wastefulness on the line, we emphasized

Waste Disposal Costs(Fiscal year)

50 Income

43

0
-75

-50 Expenditure
-100
-150

-252

-200

-187

-238

the thorough sorting of waste to create value,
making it possible to sell it for value. We saw a
profit of 43 million yen due in part to the influence of the heightened price of scrap copper in
addition to these effects.

-353

-250
-300
-350
-400

million yen

Reducing the Percentage of Final Disposal
At the Chiba Works, we have undertaken afive-year plan from fiscal 2002 with the targetof “achieving zero-emission by reducing landfill
waste.” Zero-emission is defined as the state
where “the percentage of waste for final disposal (final disposal percentage) to the total

waste volume is less than 1%.” We have thoroughly implemented simple and steady measures such as promoting the through management of waste sorting, promoting the creationof value, reducing the amount of office paper(going paperless, using backing paper) and

campaigns to encourage employees to takehome their personal garbage. As a result, thefinal disposal percentage dropped to 0.2%, andthe target was achieved one year ahead of theoriginal schedule.

Efforts to Prevent Global Warming
The Furukawa Electric Group has been taking part in energy conservation activities for some time in order toprevent global warming. At our plants, we have been reevaluating lighting, installing energy conservation equipment and switching fuels. We have also been turning off unnecessary lighting and reevaluating the temperature
settings for our air conditioning and heating systems in our offices.
●Performance in Fiscal 2005

Emission of Greenhouse Gases(10,000 tons-CO2)

Furukawa Electric Emissions of greenhouse gases
were reduced by 22% compared to fiscal 2000,
attaining the target of a 19% reduction.

120
100

Other affiliated companies

20.3

80

Affiliated Companies Emissions of greenhousegases were increased by 2% compared to fiscal
2000, failing to attain the target of a 5% reduction.

60

54.9

Furukawa-Sky

Furukawa Electric

19.4

22.0

22.8

23.0

24.3

51.7

53.9

54.3

52.2

52.2

40
20
0

27.3

25.4

23.3

22.9

22.4

21.2

2000

2001

2002

2003

2004

2005 (Fiscal year)

Reducing the Amount of Heavy Oil Used
Furukawa Nikko Power Generation Inc., oneof our consolidated companies, uses hydraulicpower to generate electricity, supplying it to the
Nikko Works. Furukawa Nikko Power Generation was handed over from Furukawa Co., Ltd.
in September 2003. Prior to the handover, the
Nikko Works were supplied with electricity fromthis electric power plant, but they were also using electricity purchased from Tokyo ElectricPower Company and diesel generators within
the works. On the occasion of the handoverin 2003, the mode of electricity being used
was reviewed, and it was decided that externalsources of electricity would be used during periods of water shortage; diesel generators would
be used in emergency situations; and only theelectricity from the hydraulic power of Furukawa Nikko Power Generation would be used under normal circumstances. As diesel generators were discontinued, the heavy oil necessary
to operate them were no longer used, and theresulting reduction in CO2 emissions amounted

to a reduction of 16,000 tons per year. Further,
we also began supplying electricity to Furukawa-Sky’s Nikko plant, which has not been supplied with this electricity prior to the handover,
newly laying down power lines.

ide than LPG when it is burned. If it is possible
to get a supply of gas through pipes from Tokyo Gas Co., Ltd., it would be possible to safely
change the fuel with only a slight investment,
and we considered switching to city gas. We
implemented the switching as city gas pipes
had been set up close to the works and it was
not necessary to make any major renovationsin the production facilities. As a result, there

has been a 448 ton reduction in carbon dioxide
per year. In addition, we have seen benefits
for managerial aspects, as there is no longer
any need for storage tanks or vaporizers, there
are no transfers from lorries, and we have beenable to decrease the risk of leakage when thevalves are not operating well.

tempted to reduce CO2 and NOx emissions fromvehicles by increasing the use of mixed loads
and large vehicles and reducing the number ofvehicles used.
With the revision of the Law Concerning the
Rational Use of Energy, new responsibilities
have been included for shippers. In preparation for the law taking effect from April 2006,
we made preparations to get a grasp on our ton

kilo data including our affiliated companies. At
Furukawa Electric and Furukawa-Sky, we areproceeding with the task of computing the necessary volume of energy use, as they are designated as specified shippers with a transportvolume of over 30 million ton kilos a year.

* V alues calculated by multiplying the total amount ofelectricity including this amount due to hydraulic power
generation by the CO 2 conversion factor are used as indicators of the volume of greenhouse gas emissions.

Switching to City Gas
At the Hiratsuka Works, we had traditionallybeen using liquefied petroleum gas (LPG). LPG
was supplied by a tank lorry and then sent to
the production facilities from a storage tank set
up within the works. This required consideration for safety and environmental issues under
the regulations of the High Pressure Gas Safety
Law. Meanwhile, city gas (liquefied natural gas)
has the benefit of producing less carbon diox-

Efforts in Logistics
The Furukawa Electric Group has worked toreduce the impact on the environment due tologistics-related matters, reducing the amountof packaging material, reusing and recycling
cable drums and using joint transport.
Following upon fiscal 2004, we have continued to conduct activities to reduce the emissions coefficients per transported product ton
kilo for automobile NOx emissions. We have at-10

Environmental Performance

Chemical Substance Management
At the Furukawa Electric Group, we are aiming to eliminate the use of three substances among chlorinatedorganic compounds, tetrachloroethylene, trichloroethylene and dichloromethane. As Furukawa Electric hasachieved excellent results, the Company is also working on reducing emissions of three substances (Furukawa
Electric’s specific chemical substances) that are volatile organic compounds: toluene, xylene, and ethylbenzene.
●Performance in Fiscal 2005
Furukawa Electric Emissions of Furukawa Electric’s
specific chemical substances were reduced by 47%
compared to fiscal 2000, slightly less than the fiscal
target of a 54% reduction.
Affiliated Companies Emissions of chlorinated organic
compounds were reduced by 54% compared to fiscal
2000, achieving the fiscal target of a 50% reduction.
At the start of fiscal 2005, eight companies wereusing these substances, but two companies eliminated their use of these substances during the year,
presently leaving six companies.

(tons)

400

Emission of Furukawa Electric’s
Specific Chemical Substances

Emission of Chlorinated Organic Compounds(tons)

400

366

Other affiliated companies
Furukawa-Sky

296

300

300

228
200

206

198

193

Furukawa Electric

231
201

200

114
100

0

100

2000

2001

2002

2003

2004

2005 (Fiscal year)

0

73

94
62

67

48

44

2000

2001

34
2002

63
2003

97

78
3

48

1

2004

44
2005 (Fiscal year)

Appropriate Management of Chemical Substances
For chemical substances used in the production process, we manage them according
to their toxicity, checking the characteristicsof the substances and applicable laws on the
MSDS (Material Safety Data Sheet). We also
get a grasp on the amount of these substancesthat is used and report these amounts in accordance with the PRTR Law *.
* L aw Concerning Reporting, etc. of Releases to theEnvironment of Specific Chemical Substances andPromoting Improvements in Their Management

Release and Transfer Volume of PRTR Substances
Substance
No.

Name of substance

Unit: tons
Handling volume Emitted volume

Transferred
volumeNeutralized
volumeAntimony and its compounds
66.4
0.0
4.8
0.0
25
Ethylbenzene
8.6
0.0
0.0
8.6
40
Xylene
22.5
5.7
2.5
14.3
63
Silver and its water-soluble compounds
1.2
0.0
0.0
0.0
64
Cresol
324.6
0.2
0.2
323.8
67
Inorganic cyanide compounds
19.9
0.0
0.0
19.9
108
N, N-dimethylformamide
86.8
0.6
0.2
85.3
172
Decabromodiphenyl ether
199.6
0.0
14.4
0.0
197
Copper salts (water-soluble)
13.0
0.0
0.3
0.0
207
Toluene
538.4
181.1
269.3
85.6
227
Lead and its compounds
14.2
0.0
0.0
0.0
230
Nickel
3.2
0.0
0.0
0.0
23 1
Nickel compounds
8.7
0.0
0.1
5.2
232
Hydrazine
5.2
0.0
0.0
5.2
253
Phenol
196.7
0.0
0.1
196.1
266
bis (2-ethylhexyl) phthalate
3.0
0.1
0.1
0.0
272
Hydrogen fluoride and its water-soluble salts
2.4
0.0
2.1
0.1
283
*Targeting substances with a handling volume of 1 ton or more at the Furukawa Electric works (0.5 tons or more for specificfirst category chemical substances)

Responding to Regulations Concerning the Emissions of Volatile Organic Compounds
Furukawa Electric has conducted activities
to reduce the volume of emissions of Furukawa Electric’s specific chemical substances
since fiscal 2003. Toluene accounts for 95%
of these targeted substances, and is used as a
product cleanser and in floor paints. As reduction measures, we have implemented a reviewof the content of cleaning agents, improved ourwashing tanks, and switched to using watersoluble paints. In addition, improvements inquality have reduced the number of times that
repeated cleansing has been needed. Mean-

while, Air Pollution Control Law was revised inAugust 2005, and new regulations concerning all volatile organic compounds (hereinafter VOC) were incorporated. These were put
into effect from April 2006. Furukawa Electric does not currently have any facilities thatfall under these legal regulations, but we willconduct reduction activities in accordance withthe self-imposed regulations of The JapaneseElectric Wire & Cable Makers’ Association and
the Japan Copper and Brass Association withwhich we are affiliated. When we surveyed the11

use of VOC, we found that toluene emissions,which we have traditionally set as the target ofour efforts, account for 59% of the total VOC
emissions, and emissions of isopropyl alcohol,
which were not targeted, account for a large
percentage at 33%. As these two substances
combined account for 92%, we drew up a plan
to conduct measures particularly centered on
the processes that handle these two substances and incorporated it into our mid-term targets(please refer to page 6 for target values).

Creating Environmentally Friendly Products
Aiming for the creation of environmentally friendly products, Furukawa Electric is carrying out the green
procurement of purchases, green product management, and the development of environmentally friendly products.
Green Product Management Activities
With the strengthening of environmental laws
and regulations regarding toxic and harmful
substances, customers not only are demandinga guarantee that we do not use regulated harmful substances or use products that containthem, but also are strongly requesting that wewould establish a control system to oversee thechemical substances included in products aswell as the presentation of evidence based on
analyzed data. Furukawa Electric established
the Committee for Green Product Management
in February 2005, conducting the cross development of customer requests to each businessdivision, and furthering the sharing of information across divisions. Each committee member
took on a central role in the effort to construct amanagement system.
In fiscal 2005, we studied the content ofregulated harmful substances for all Furukawa
Electric brand products, and created a “Registration Master for all Green Products andPlants.” Each business division developed an
execution plan for constructing a management
system, and it was decided that these would
move forward in phases starting with plant
divisions that produce high priority regulated
products.
At plant divisions, the mechanisms of theexisting ISO9001 and ISO14001 were utilized
and improvements were made such as the introduction of tests using analytical instruments
to ensure that regulated harmful substanceswere not mixed in or distributed at the respective stages from the receiving of raw materials and parts, assembly and production, andproduct shipment. We also received requests

from our main customers to check the control system via document examination, and we
conducted an internal audit of target plants forthree business divisions and two companies.
For the other business divisions, we conductedindividual informative sessions and interviews
to increase the awareness of the importance ofcontrolling the chemical substances included in
products and the thorough application of company-wide targets.
In the future, we will continue to fully respond to customer audits and conduct internal
audits of Furukawa Electric’s individual business divisions. We will also continuously conduct information sessions, instruction, and audits for constructing a management system inorder to develop it for our affiliated companies
and business clients.

Activities of the Automotive Products Division
The Automotive Products Division of theElectronics and Automotive Systems Company
is continuously working on establishing an environmental impact substance management
system in response to requests from automotive manufacturers.
In order to meet customer needs that are
increasing yearly, we must respond promptlywith increased accuracy, and we have been
undertaking the development of an “Environmental Management System” with the objective of making operations more efficient within
the company.

We have created a mechanism to conduct
environmental assessments at the respective
stages of vehicle development from development, design, to mass production. In addition,
we have collected the material data and analytical data for the products of our respective
suppliers as well as that used in our production
process, and we havestrengthened our activities to eliminate or
reduce the environmental impact subMeasurement using fluores- stances according tocent X-ray analysis

requests from automotive manufacturers.
In order to verify the absence of lead, mercury, cadmium, and hexavalent chromium ascommissioned in EU’s Directive on End of Life
Vehicles, we have installed analytical instruments in all of our plants and have started toanalyze the products and materials for on-going and under-development products.

fall under green products, we will expand ourpurchasing system to our affiliated companies.
Our company’s green products are products
recommended by the Green Purchasing Net-

work and products with environmental labels.
For products and materials (purchased products) involved with the manufacturing process,we are conducting surveys on the state of environmental management of our suppliers andwhether their products contain environmentally
regulated substances. We are also checking for the level of environmentally regulated
substances in products using MSDS, ingredient charts, and in certain cases using analyzed
data.

Environmental management system screen

Green Procurement
23 items were selected from office supplies and materials for general use (general
purpose items), and we decided to purchasegreen products for the subject items. After
strict evaluation by the purchasing division, we
registered only green products into our company purchasing system. It became possible forpurchase originators to easily purchase green
products, and by the end of fiscal 2005, the rateof procurement was 100%. In the future, in addition to increasing the number of items that

Examples of the environmental labels used

12

Environmental Performance

Environmentally Friendly Products
At Furukawa Electric, we call products thatare harmless at the respective stages fromproduction, use, distribution, and disposal andthat have a minimal impact on the environment “environmentally friendly products.” We
use our own unique environmental label forthese products. Further, we have designatedthe percentage of sales from environmentallyfriendly products out of the total sales from new
products as the environmentally friendly product percentage. The percentage for fiscal 2005
was 69%.

For specifics on environmentally friendly products, pleaserefer to the following page on the Furukawa Electric website.

http://www.furukawa.co.jp/enviro/pro/index.htm

Halogen-free electric wires with major increases
in strength due to new cross-linking technology
A new type of halogen-free electric wire
The Eco-Ace Plus Series
We have developed a new cross-linking
technique in order to meet the customer needs
and demands for a major increase in strength
while still maintaining a high level of flame retardant and processing capabilities. With thiscross-linking technique, we have created aneven stronger bond than before between thebase resin and the metal hydrate flame retardant material. While continuing to maintain theflexibility and flame retardant capabilities, wewere able to give it a high power that was notpossible with prior technology.
In terms of the pressure welding and crimping to the connector when it is used as a wire
harness, we have confirmed that it has an equal
finish and is on par with PVC electric wires,
which have superior processing capabilities.
Characteristics●They are highly resistant to external damage.
●They are as easy to process as PVC electric
wires.

Developing Environmentally Friendly Products
Eco-design is a design that minimizes the environmental impact of products at all stages, fromthe raw materials to production, use, and final
disposal. Specifically, it is conducted according
to the concept and methods of LCA (Life Cycle
Assessment).
In addition to designing materials that satisfy
the various regulations that have recently been
spreading (like the RoHS Directive), we are promoting development of environmentally friendly
products with the following points.
●F or electric wires and cables, we are implementing designs that have a minimal environmental impact while reflecting customer
demands. Specifically, we are creating themto meet various international regulations anddesigning them so that they are functionallyeasy to recycle and reuse. By designing electric wires and cables collected from the market
so that they can be disassembled, sorted, andreused with the least impact on the environment, we are contributing to the evaluation at
the final stage of LCA.

Voices of the development staff
Yusuke Kuwasaki
Eco-Products Department,
Ecology & Energy Laboratory,
R&D Division

Since 2000, environmentally friendly products
have been the focus of much attention, and mostof these are related to energy conservation andare mainly products where the benefits are actually returned to the consumers. When I actu-●T hey do not contain the six substances
specified in RoHS Directive, halogen substances, antimony, nor phosphorous.
●T hey meet UL standards and CSA standards.
Recycled bobbins using optical fiber cables scraps
Product characteristics
Recycled bobbins contain over 40% discarded polyethylene collected from removed optical fiber cables for environmental purposes.
Normal plastic bobbins use new polypropylenematerials, but recycled bobbins use discarded
polyethylene to effectively utilize waste materials.
13●T he cycle of collection and effective use for
conductors (copper, aluminum) has alreadybeen established. For the accompanying resinmaterials, however, after first considering theiruse for their former purposes, if these areinappropriate, we will develop the optimal purpose and application and attempt to put themto effective use.
●In the future, we will seek to develop materials derived from plants to replace materials
derived from petroleum that is expected to be
exhausted in the future. We will also seek tointegrate our unique technology that we havedeveloped and accumulated until now, contributing in a real sense to reducing the impact on
the earth’s environment.
●We will promote the development of products
and technologies that meet the requirements
for the suppression of gas emissions that leadto global warming based on the Kyoto Protocol
as a top priority in all areas. We have actively
cooperated with our works (plants) and affiliated companies in their energy conservation,
rainwater use, and heat island measures.
After establishing the measures on our ground,
we will proceed to make proposals to our customers.
ally think from the perspective of a consumer,
the reality is that I would make a purchase based
more on price than the environment.
In the future, in addition to promoting thedevelopment of environmentally friendly products
where consumers can receive the benefits, I
would like to devote my efforts to create a society where products that are made with the environment in mind can be appreciated as benefits
in and of themselves.

Further, in order to make it possible to reuse
them, we have created them with the strength
to withstand repeated use and a light weight(half the mass of wood drums) to make transport easier.
Bobbins that can no longer be used due todamage can be crushed and reused as recycled bobbins.

Recycled bobbin

Recycled duct guard
Traditionally, optical fiber cables have been
disposed of as landfill waste after removal, but
we discussed recycling discarded optical fiber
cables jointly with Nippon Telegraph and Telephone East Corporation and Nippon Telegraphand Telephone West Corporation, making recycled duct guards into a product.
Generally, the recycling of optical fiber cables has not been promoted because of theircompound nature with fibers, resin, and metals, making sorting difficult and expensive.
We were able to simplify the sorting process,establishing a production method where raw
materials with a variety of substances mixed
in could still be molded, making them possible
to recycle.
The recycled duct guard protects ducts fromthe weight of vehicles at the shallowest part ofthe buried ducts that contain cables. Conventionally, the ducts were guarded by laying concrete on the ducts. Yet it required a great dealof time to lay the concrete and age it, making
the construction period long and causing problems such as traffic jams from being unable tofree the roads. The recycled duct guard is a
product that replaces this concrete guard, andas it can be guarded simply by covering theducts with the guard, the construction period isgreatly reduced as is the total cost.

Example of the construction of a recycled duct guard

Micro-cellular foamed light reflecting
sheet “MCPET”
MCPET is a foam that includes numerous
superfine bubbles of less than 10μm, and thisstructure makes it a plastic light reflecting
sheet with an extremely high reflection rate forvisible light of over 99%.
Making use of this high reflection rate, wehave realized energy conserving effects suchas increasing the average lighting intensity ofelectric signboards (increased by approximately
1.6 times), or maintaining the lighting intensity
while decreasing the number of lamps. MCPET

also has the property of highly diffusive reflectance and can contribute to thin and sleek lighting and to the improvement of uneven lighting
in signs. Meanwhile, it also has the propertyof small wavelength dependence (it can recreate primary colors) and is being used in disEnlarged figure of a crosssection of the reflecting
sheetHigh reflection rateof over 99%

play showcases and optical displays. In recent
years, it is also being used as a reflecting sheet
for the backlight of LCD television sets. Thisis a product that is expected to contribute tomeeting the demands for further energy conservation in the areas of lighting and signs.

Front panel(liquid crystal panels, signboards)
Cold cathode tube lightsource, fluorescent light
MCPET reflecting sheet

No MCPET

With MCPET

Recycling Activities
The Furukawa Electric Group promotes therecycling of waste material by establishing a collection network and recycling system. Throughthe collection networks at nine bases throughout Japan, we collect removed electric wires
and cables, recycling 100% of the conducting
materials like copper and aluminum. Insulationmaterials are also recycled as recycled plastic
and fuel. In addition, used plastic waste materials and plant loss materials are recycled on therecycling line, and the resulting recycled pellets
are put to a wide variety of uses, from being recycled as products to being used as materials
for injection molding and extrusion molding.

For specifics on our recycling technology,
please refer to the following page on the Furukawa Electric website.
http://www.furukawa.co.jp/enviro/
tech/index.htm

Synthetic resin trough(GreenTrough)●Recycled products

Recycled electric wires(Telecommunication cables)

Recycled electric wires(Power cables)
Cable duct for underground laying (KOTA-KUN)

14

Environmental Performance

Environmental Risk Management
Countermeasures Regarding Pollution of Soil and Groundwater
The Furukawa Electric Group recognizes
that the pollution of soil and groundwater is an
important issue in terms of safety and healthfor local residents and employees, and we areworking to grasp the state of pollution. This is
not something that is required of us throughlegal regulations, but measures that we haveundertaken voluntarily.
If the soil or groundwater is found to be polluted during investigations, we take a prompt
action. We also report to the adiministrative
organs about these polluted conditions andmeasures to be adopted to clean the environment, and disclose this information to the lo-

cal residents, related institutions and media asnecessary.
We are also conducting pollution risk avoidance activities at the works and business bases
to implement appropriate cleaning measures
so that soil pollution will not negatively affectsurrounding areas. In fiscal 2005, we completed the harmful substance history review at theworks and affiliated companies. Each of theworks completed the risk assessment, and a
portion of the works began investigations into
the state of soil pollution based on this assessment.

Key Points of the Pollution Risk
Avoidance Activities■P rohibit the laying underground of new reservoir facilities and pipes for harmful substances.
■Inspect for the leakage of harmful substances, prevent leakages, and switch to substitute substances.
■Study the history of use of harmful substances, the records, and continue storage
management.

Situation and Countermeasures Regarding Pollution of Soil and Groundwater
Situation of Furukawa Electric
LocationContaminantNikko-shi, Tochigi Prefecture(Company owned areas in Uwanoshiro, Arasawa
Uodome, Kiyotaki 4-chome, and the grounds ofthe former Mizusawa skating rink)

Selenium, arsenic, lead, cadmium,fluorine

Name of Works

Nikko Works*

Cleansing method
Cleansing and recycling into cement materials, after the
excavating and removal of contaminated soil

We are also planning to conduct pollution investigations and cleansing measures in seven other company owned areas, expecting to complete them infiscal 2006.

Former Kambara Works

Lead, fluorine, arsenic,
tetrachloroethylene

Shizuoka-shi, Shizuoka Prefecture

Cleansing and recycling into cement materials, after the
excavating and removal of contaminated soil

Situation of Affiliated Companies
Company Name

LocationContaminant

Cleansing method

Totoku Electric

Nagawa-machi, Chiisagata-gun, Nagano Prefecture (Former Nagato Works)

PCB, dioxine

Storage and control after the excavating and removal ofcontaminated soil

Former Tochigi Metal

Nikko-shi, Tochigi Prefecture

Hexavalent chromium, lead,tetrachloroethylene

Excavating and removal of contaminated soil, replacingwith clean soil, vapor suction, and cleaning of original sitewith a chemical treatment

Former Furukawa Altec

Hiratsuka-shi, Kanagawa Prefecture

Fluorine

Cleansing and recycling into cement materials, after the
excavating and removal of contaminated soil

Kyowa Electric Wire*

Neyagawa-shi, Osaka Prefecture(Former Osaka Works)

Lead, cyanogens, boron, fluorine,
dichloromethane

Pumping and cleansing of groundwater

Furukawa Color
Aluminum*

Utsunomiya-shi, Tochigi Prefecture(Head Works)

Hexavalent chromium, fluorine

Pumping and cleansing of groundwater

Furukawa-Sky*

Oyama-shi, Tochigi Prefecture(Oyama Plant)

Tetrachloroethylene

Pumping and cleansing of groundwater

The * indicates a continuation from fiscal 2004

15

PCB Management

Compliance with Laws and Regulations and Other Items to be Observed

The quantity of PCB instruments is recognized on every works and appropriate storage
management is conducted, and with the startof processing operations by Japan Environmental Safety Corporation, we will successively commission processing.

Quantity of PCB Stored

We are regularly confirming other items to beobserved, and making efforts for compliance bypatrolling our sites to check the implementation
status.
We keep track of revisions of laws and regulations, by closely following the latest informationin the Official Gazette.

Unit: item

Name of Works(Already processed)(Unprocessed)

Chiba Works
Nikko Works
Hiratsuka Works
Mie Works
Osaka Works
Yokohama Works
Total

In storage

In use

Total

86
39
182
40
53
55
9
464

0
0
140
3
73
11
0
227

86
39
322
43
126
66
9
691

Responding to the Asbestos Problem
The Furukawa Electric Group has establishedan “Asbestos Problem Task Force” with the CAO
as its director to respond in this problem. We
have investigated the health problems, its actual use in products, and the state of buildings
and facilities owned by our company.
●Actual Use in Products
We investigated the history of asbestos use
including the products of affiliated companies.
Currently, products containing asbestos are
not manufactured nor imported, but there areproducts that were manufactured and sold forindustrial use in the past. Targeted products
include electric wires for ships and fire prevention products for use in construction to installelectric wires for telecommunication and elec-

tricity. We are disclosing information on theseissues through industry associations like The
Japanese Electric Wire & Cable Makers’ Association and Cable Firestop systems Associationof Japan, and we are also responding to customers by providing information and responding to inquiries.
●Actual Use in Buildings and Plant Facilities
1.Company housing, company-owned buildings
and plant buildings
 We did not discover any signs of asbestos
use in company housing, but there was spraymaterial in a portion of the company-ownedbuildings and plants. After investigating thestate of diffusion of the asbestos, we confirmed that it was stable. In expectation of

the risk of future scattering and diffusion,
we decided to remove it. We are conducting
these removal procedures in succession, andexpect to complete them during fiscal 2006.
2.Facilities and equipment
 Some of them contained asbestos, and for
those where there were substitutes, we exchanged them. In cases where the asbestos
was embedded in insulating materials, we
confirmed that it had not scattered. For these,
we will switch them with materials that do
not contain asbestos in the future. Until then,we will oversee the safety conditions.
*For health problems, please refer to the hygiene column
on page 24.

List of Products Containing Asbestos
Classification by Use(As of August 31, 2006)

Product Name

Used regio

Production Period

Type of Asbestos Used

State of Countermeasures

Asbestos sheath

MI cable sheath1969 to 1989

Chrysotile

Use glass wool after 1989

Pipe flange packing

Water cooling equipment pipe joint

1977 to 1997

Chrysotile

Use non-asbestos product after 1997

Braided asbestos thread

Cabtire cable sheathing

1977 to 1987

Chrysotile

Stop production in 1987

Asbestos

Heat resistant layer of the rubber spacer for wa- 1976 to 1983
ter cooled cables

Chrysotile

Stop production in 1983

Asbestos tape

Assembly parts of the FRP spacer for water cooled 1976 to 1995
cablesChrysotile

Stop production in 1995

Epoxy putty

1980 to 2004

Chrysotile

Stop production in 2004

Waterproofed parts of the splice

to 1988

Chrysotile

Changed to non-asbestos product after 1988

Waterproofed parts

to 1988

Chrysotile

Changed to non-asbestos product after 1988

22/33kV air terminal box

Waterproofed parts of the joint

to 1988

Chrysotile

Changed to non-asbestos product after 1988

Termination

Terminal parts (epoxy putty)

to 2004

Changed from chrysotile to Changed to non-asbestos product after 2004
tremolite in 2000

Danseal P

1978 to 1984

Chrysotile

Non-asbestos after 1984

Keikalite S, SG

1976 to 1985

AmositeNon-asbestos after 1985

Dannekka

1973 to 1982

Chrysotile

Non-asbestos after 1982

Keikalite H

1976 to 1987

AmositeNon-asbestos after 1987

1983 to 1989

Chrysotile

Stop production in 1989

Electric wires, cables, 22/33 kV prefabricated joint
and accessories
Pipe line waterproofing device

Automobile related Wire harness for engines
products
Asbestos sheet

Wound on the harness

16

Environmental Performance

Environmental Accounting
We compiled “environmental conservation cost,” “economic benefit associated with environmental conservation activities” and “environmental conservation benefit (material benefit)” to quantitatively grasp the resultsof environmental costs and benefits. This data is collected in conformity with the environmental accounting
guidelines published by the Ministry of the Environment. For affiliated companies, the data is collected for the
21 companies listed on page 2.
Environmental conservation costs for Furukawa Electric were 5.1 billion yen for expenses and 400 million yen
for capital expenditure. Expenses decreased by 200 million yen compared to the previous year (fiscal 2004).
The financial benefit amounted to 320 million yen.
Data of 10 more affiliated companies were collected. Environmental conservation costs were 3.3 billion yen
for expenses and 1 billion yen for expenditure. The financial benefit increased by 1.5 billion yen due to an increase in energy consumption accompanying heightened operations.
Environmental Conservation Cost

Unit: million yen
Furukawa Electric

Category

Key activity and the outcome

AmountAffiliated companies

Compared to the previous year

Amount1,401 

−205

1,980

Retrieval of containers, drums, etc.

511 

103

192 

（3）Administration cost

Audit of environmental management system, monitoring of environmental impact, etc.

403

−67 

276

（4）Research and development cost

Development of environmentally friendly products, research in substitutes for toxic substances, etc.

1,102 

−32 713（5）Social activity cost

Tree planting, cleaning in local communities, donations, etc.

89

85

22 

（6）Environmental remediation cost

Assessment for environmental impact, cleanup of polluted soil, etc.

1,619

−65

149

Total
5,125
For affiliated companies, a comparison with the previous year has not been calculated as the target companies differ from the previous fiscal year.

−180

3,331 

（1）Business area cost

Pollution prevention such as air pollution, energy conservation, waste disposal, etc.

（2）Upstream / downstream cost

Environmental Conservation Benefit

Economic Benefit Associated with Environmental Conservation Activities Unit: million yen

Environmental impact emissions

Unit

Industrial waste disposal amount *ｔ

Energy consumed(crude oil basis)

Furukawa Electric

Affiliatedcompanies

Reduction

Reduction

1,597 

1,000 kl
1,000ｔWater consumed

−300

266

1 

−2 

CO2 emission

1,000 t-CO2

11 

−10

SOx emission

ｔ

0

−21 

NOx emission

ｔ

33

9

ｔ

Soot emission

−1 

396

61

−21 

Reduction in energy costs

30−1,882 Reduction in water purchase costs−2−4

Investment and Research Cost

Unit: million yen
Furukawa Electric

Affiliatedcompanies

AmountAmountInvestment and Research Cost

424

979

Total investment cost

8,826

17,699Total research cost

9,480

5,612 

Environment-related investment−1 Environmental Conservation Cost

Economic Benefit(100 million yen)(100 million yen)

60

12
49.5

50

53.0

51.3

43.6
37.2

11.0

Environmental remediation cost

8

Administration cost

30

Reduction in waste disposal costs
Reduction in energy costs

Research and development cost

36.8

Revenues gained by recycling

10

Social activity cost

Upstream / downstream cost

Reduction in water purchase costs
Amount of revenues and expenses

6

Business area cost

4.0

4

20

2

10
0

317 
−1,511 * – (minus) represents an increase.

* – (minus) represents an increase.

* Amount excluding recycled industrial waste

40

Amount228

Reduction in waste disposal costs

7 ｔ

AmountRevenues gained by recycling

Total
Emission of volatile organic chemicalcompounds

Affiliatedcompanies

Contents of Benefits

1,786

16

Furukawa Electric

4.1

2.6

2003

2004

3.2

1.2

0
2000

2001

2002

2003

2004

2005 (Fiscal year)

-2

17

2000

2001

2002

2005

(Fiscal year)

Environmental Preservation Performance Indicators
Of the works of Furukawa Electric, the data for air and water quality of four Works that are registered as specialized plants are reported below.
● Chiba Works
Atmospheric Indicators

Wastewater quality indicators

Item

Unit

Equipment

Legal Standards

Self-ImposedStandards

Average Value

Maximum
Value

Measurement Item

NOx

（ppm）

180

180

31

51

pH

Soot

（g/Nm3）

Melting
furnace
Melting
furnace

0.1

0.1

0.033

0.048

COD
SS
n-h (mineral oil)

Legal Standards

Self-Imposed Average Value
Standards

5.0～9.0

5.0～9.0

7.8（mg/l）

15

15

4.6

9.6

（mg/l）

20

20

3.9

10.9

（mg/l）

2

2

0.2

0.4

Legal Standards

Self-ImposedStandards

Average Value

Maximum
Value

Unit

Maximum
Value

8.3● Nikko Works
Wastewater quality indicators

Atmospheric Indicators
Item

NOx

SOx

Soot

Unit

（ppm）

（K value）（g/Nm3）Equipment

Legal Standards

Self-ImposedStandards

Average Value

Maximum
Value

Boiler

180

180

120

120

pH

5.8～8.6

6.0～8.5

7.1

7.6

Melting
furnaceDryerfurnace

200

200

39

39

BOD

（mg/l）

25

16

5.0

5.1

300

250

47

47

SS

（mg/l）

50

20

1.2

3.2

n-h (mineral oil)

（mg/l）

5

0.5

0.2

0.2

Legal Standards

Self-ImposedStandards

Average Value

Maximum
Value

7.8

Boiler

17.5

17.5

0.39

0.39

Melting
furnaceDryerfurnace

17.5

17.5

0.26

0.26

17.5

17.5

0.16

0.16

Measurement Item

Unit

Boiler

0.3

0.3

0.0

0.0

Melting
furnaceDryerfurnace

0.2

0.2

0.0

0.0

0.5

0.2

0.0

0.0

Equipment

Legal Standards

Self-ImposedStandards

Average Value

Maximum
Value

Measurement Item

Boiler

180

140

54

54

pH

5.8～8.6

6.5～8.5

7.6

Melting
furnace

180

140

17

17

BOD

（mg/l）

10

4

3.0

5.0

（mg/l）

25

6

1.5

2.1

（mg/l）

1

0.7

0.10

0.15

Legal Standards

Self-ImposedStandards

Average Value

Maximum
Value● Mie Works
Wastewater quality indicators

Atmospheric Indicators
Item

Unit

NOx

（ppm）

SOx

（Nm3/Hr）

Soot（g/Nm3）

Boiler

0.6

0.5

0.00

0.00

SS

Melting
furnace

41.6

33.3

0.13

0.13

n-h (mineral oil)

Boiler

0.3

0.24

0.005

0.005

Melting
furnace

0.3

0.24

0.004

0.004

Equipment

Legal Standards

Self-ImposedStandards

Average Value

Maximum
Value

Unit

● Osaka Works
Atmospheric Indicators
Item

NOx

SOx

Soot

Unit

（ppm）

（K value）（g/Nm3）

Wastewater quality indicators
Measurement Item

Unit

Boiler

150

120

2.0

2.0

pH

5.7～8.7

5.7～8.7

7.6

7.9

Melting
furnace
Heating
furnace

200

160

2.0

2.0

BOD

（mg/l）

300

10

5.0

9.0

4.0

SS

（mg/l）

300

50

11.0

25.0

Boiler

1.17 

1.17 

0.00

0.00

n-h (mineral oil)

（mg/l）

5

2

1.0

2.0

Melting
furnace
Heating
furnace

1.17 

1.17 

0.00

0.00

1.17 

1.17 

0.18

0.29

Boiler

0.10

0.08

0.00

0.00

Melting
furnace
Heating
furnace

0.20

0.16

0.00

0.00

0.25

0.20

0.00

0.00

170

144

3.0

18