Environment Preservation Initiative
Energy-Conservation and Global Warming
Prevention
Progress, Organization and Targets ofEnergy-Conservation Activity
In view of the revision of the Law Concerning the Rational Use ofEnergy (Energy Conservation Law) in 1993, the Committee forCompany-Wide Promotion of Energy Conservation was foundedin April 1994 initiating company-wide activities under theparticipation of all plants involving those that are not designatedas the energy management factory. In 1997 the company-wide
energy conservation index was changed to EIPUP specified
in the law, and the target was set to "1 % reduction over theprevious year in terms of EIPUP".

use of energy in compliance with such standards.
Some Works failed to achieve an annual reduction of 1 % in
EIPUP, because product segmentation changed to increase inenergy-intensive products.
Hereafter, we will enrich the items and contents of thesestandards, thereby making efforts to promote effective use ofenergy.
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Changes in Global Warming Gas Impact
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Fu r u k a w a E l e c t r i c ' s p r o d u c t i o n v o l u m e d e c r e a s e d
substantially last fiscal year. The production volume of eightout of nine Works that are designated as Type 1 DesignatedEnergy Management Factory decreased to 71~94 %. In termsof EIPUP, six Works declined by 1.4~15 %. Although efforts
were made to save energy by such measures as improvementin air-mixing ratio for combustion, reduction of queuing time loss
and productivity improvement, the weighted average of EIPUP of
the entire company degraded by 1.47 % over the previous year.
With reference to fiscal 1995, however, the current EIPUP is 89.8
% showing an annual improvement rate of 1.8 % on average.

Results of Energy-Conservation Activities in
Fiscal 2001
Nine Works underwent plant inspection by the field offices of
the Regional Bureaus of Economy, Trade and Industry as Type
1 Designated Energy Management Factory. The inspection was
carried out for the performance of fiscal 2000, and an evaluation
was made respectively as to "improvement in EIPUP", "if it
deteriorated, was attribution analysis appropriately done?" and"whether or not energy was used in compliance with the criterion
judgement in the Energy Conservation Law?".
As a result, all the nine Works passed the inspection asshown in the table below. We think the implementation of energy
conservation measures and the formulation of management
standards per each facility were appreciated together with theCO2 emission converted by the carbon scale for fiscal 2001
decreased considerably to 93 % of fiscal 1990.
This is due to the decrease in the energy use caused byproduction reduction, and to the energy-conserving measures
promoted heretofore.
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The carbon conversion scale used is the one announced by the Japan
Business Federation. The scale for fiscal 2000 is used since a new scale forfiscal 2001 is not announced yet.

Energy-Conservation Activities in Future
We intend to achieve saving of EIPUP by 1 % or more every
year, through promoting energy-conservation activities such asprovision of management standards and the like that conform to
the judgement of the Energy Conservation Law.

7

Environment Preservation Initiative

Reduction of Organic Chlorides
In fiscal 2001, in succession to fiscal 2000, we exercised
self-imposed control to reduce the atmospheric emission oforganic chlorides by 80 % compared to fiscal 1995.
Replacement of cleaners by their substitutes was delayed
due to quality problems, so that the reduction for fiscal 2001
was 40 %, which was insufficient to achieve the target. But
trichloroethylene was eliminated in December 2001 following
the elimination of tetrachloroethylene in fiscal 2000, leaving only
dichloromethane for elimination.
For fiscal 2002, considering the working environment andthe importance of environmental influences of using theseorganic chlorides, reduction activities will be promoted aiming atcomplete elimination of these substances by the end of the fiscal
year, as was scheduled in the initial plan.

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Control of Chemical Substances
Recently, the extensive regional pollution by chemical
substances has become a matter of public concern such asacid rain, ozone layer depletion, global warming and endocrine
disrupters. In view of the importance of controlling chemical
substances, Furukawa Electric has long introduced appropriate
in-house controls on chemicals, thereby promoting toxic
chemical substance reduction activities including eliminationof ozone layer depletion substances and reduction of organic
chlorides.
Beginning in fiscal 2001, we have formulated administrative
provisions for chemicals to consolidate the management of
the company-wide use of chemicals, whereby a scheme wasestablished for managing the kind, handling volume, releaseand transfer volume of chemicals used in the entire company,
and its supporting system was configured. This made it possible
for everyone in the company to search and browse the material
safety data sheet (MSDS) of chemicals in use, thus allowing
for appropriate treatment of a given substance. Using thecomponent-based management of chemicals enabled by thisscheme, in addition to the risk evaluation of chemicals, we will
promote further the reduction activities of toxic chemicals.

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The PRTR Law came into force in April 2000, strengthening
the control on chemical substances. In fiscal 2001, notificationof release and transfer volume of target substances became
compulsory. The table below shows the annual summations of
release and transfer volume of major substances, covering all
the Works. It should be noted that in reality they are controlled
for each Works respectively in compliance with the PRTR Law.
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* The method of summation for fiscal 2001 is different from that of fiscal 2000
and before in that:
1. Summation for fiscal 2000 and before involves 172 substances that theJapan Business Federation defined on a self-imposed basis. For fiscal
2001, 435 substances specified in the law as the first and second kind
are involved.
2. Summation for fiscal 2000 and before excludes the transfer volume ofindustrial wastes that were reused.

Environment Preservation Initiative

Reduction of Industrial Wastes andZero-Emission Activities
Industrial Wastes[Example of Recycling]

We have been pursuing reduction activities of outsourced
disposal of industrial wastes since 1993. In 1996 a strengthened
interim goal was formulated to reduce the volume by 40 % withreference to fiscal 1995 by fiscal 2002, and in accordance with
this, the target for fiscal 2001 was set as a 35 % reduction.
The target for fiscal 2001 has been achieved due to theimproved recycling ratio and the decreased production volume.
Because the latter factor contributed to the target fulfillment to agreat degree, we will promote reduction activities further taking
into account possible recovery of production volume in the
future.

Below is described a recycling process for rolling oil.
Because modern high-performance rolling oil for aluminumis excellently emulsified, it hardly separates into oil and water
when it is left at rest. Thus, most of the rolling oil waste areusually disposed of as industrial waste. Furukawa Electric has
succeeded in developing a process where the emulsified oil
waste is disaggregated to yield oil scum using an acid-assisted
cracking apparatus that is based on the company's proprietary
technology. The process is patented. The separated oil scum isdisposed of as industrial waste, on an outsourcing basis, to berecycled as fuel. Hereafter, we plan to refine the oil scum within
the company to use it as fuel.

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The recycling ratio satisfactorily improved to about 70 %in fiscal 2001, which results from the successful recyclingof sludge, alkali waste and wood and paper waste. On theother hand, recycling of oil waste and plastic waste is seeing
limited success due to low oil fraction or concern about dioxin
production.
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Zero-Emission Activities
The first stage of Zero-Emission Activities begins from fiscal
2002.
The first stage of Zero-Emission Activities:
To reduce the volume of industrial waste that istransported from the Works directly to the landfill lots
by half with reference to fiscal 2000 by fiscal 2005.
The following activities were carried out in fiscal 2001 in
preparation for launching on the Zero-Emission Activities forfiscal 2002.
* Definition of Zero Emission* Target setting of each Works' reduction and that of entire
company* Consciousness raising of employees
At the Chiba Works, slogans forthe activity are printed on the paper
cups used throughout the Works inan effort to raise the consciousnessof employees.

Paper cup made of non-wood
paper

9

Environment Preservation Initiative

Situation of Soil and Water Pollution andCountermeasures
Furukawa Electric has been conducting soil and subsoil waterpollution investigations, which are aimed at those Works where
heavy metals or organic chlorides had been used before.
As a result, it was found that the soil in the premises of the
Nikko Works and its company-owned peripheral areas waspolluted by selenium, arsenic, lead and cadmium; and thesubsoil water in the Works' premises by selenium, arsenic
and lead. These facts have been reported to the public
administration, and are under in-depth examination. These casesof pollution evidently remain within the Works premises or its
company-owned peripheral lands, having no influence on theoutskirts. Moreover, this heavy metal pollution was apparently
caused by leakage from the facility for a silver gathering processof copper refinery business that was discontinued in 1988.
Therefore, there are no possibilities of new pollution. We willcontinue to disclose the situation of the pollution at our website.

Full view of PCB disposal facility at Chiba Works

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Disposition and Storage Situation of PCB
Furukawa Electric has been notifying and storing polychlorinatedbiphenyl (PCB) waste appropriately in compliance with the law,in which high-temperature incineration has hitherto been the only
disposal method approved for the material.
New detoxifying disposal methods other than the hightemperature incineration method were approved afterward,
followed by the enforcement of the Law Concerning Special
Measures against PCB in July 2001, whereby it became
compulsory to detoxify and dispose of PCB waste in fifteen
years.
From December 2001 through February 2002, the Chiba
Works detoxified, under permission of the authorities concerned,
1,500 liter of PCB insulation oil that had been stored in the Works
using a new chemical process. The chemical process is called"Ontario Hydro Technologies' Sodium Dispersion method" (OSD
method) and is held by Nuclear Fuel Industries, Ltd., an affiliatedcompany of Furukawa Electric. It does not emit any wastewater
nor waste gas associated with the treatment, thus giving low
environmental impact. The PCB waste in the other Works will
be properly stored and controlled until facilities for disposal are
ready.

10

Appearance of storage container

Storage situation of PCB

Green Purchasing
Green purchasing is being implemented in the three fields asfollows:
1. With respect to the raw material, parts and subsidiarymaterial which constitute major environmental impacts in theframework of the Environmental Management System of eachWorks, we ask the supplier of these materials reduction of
toxic substances, simplification of packages, improvement inrecyclability and strengthening environmental management.
2. In order to purchase and use such raw material, partsand subsidiary material with reduced environmental
impact, Furukawa Electric has been implementing process
improvement and product development such as:* Fuel for melting furnace or boiler has been shifted fromheavy fuel oil to diesel oil* Detergents for metal products have been changed fromorganic chlorides to hydrocarbon detergents or ionizedalkaline water* Offer of products using recycled plastics or halogen-freeplastics
3. We are promoting vigorous purchase of the 150 procurement
items specified in the Law on Promoting Green Purchasing.

Environment Preservation Initiative

Initiatives in Logistics
We are addressing the issue of upgrading logistics in view of
reducing environmental impact and energy conservation.

Promotion of Recycling and Reuse
TEPCO LOGISTICS CO., LTD., an affiliated company ofTokyo Electric Power Company (TEPCO), has established anenvironment-conscious recycling system. In the system, cabledrums used in the delivery of aerial power distribution wireand cable were changed from conventional wooden drums toplastics drums made of recycled sheathing material of retrieved
wire. TEPCO LOGISTICS also operates a rental businessof reused drums that comprises this recycling system, andFurukawa Electric and its affiliated companies support the drum
rental business in terms of the development of recycled material
as well as its operational aspects including the manufacture,delivery, retrieval, repair and keeping of drums.
Furukawa Electric has developed further an environmentconscious cable delivery drum named "KANTAN KUN". The
drum is designed essentially based on the concept of 3Rs, i.e.,
Recycle --steel is used to permit easy recycling of resource;
Reuse --ease of assembly and disassembly enables repeateduse; and Reduce --being comprised of minimal parts, thedrum can reduce space in keeping and transportation whendisassembled after use. More specifically, the cable drum
reduces to one fifth of its original volume when disassembled,
permitting single-handed carry and ease of transportation andhandling together with efficient storage and keeping. Thus it
may be said this cable drum is, along with the plastic drum
mentioned above, a new type of drum that can contribute toresource and energy conservation.

Joint Transportation and Delivery
The Japanese Electric Wire & Cable Makers' Association (JCMA)
has introduced a joint transportation and delivery programof cable aimed at large-scaled construction sites in the core
metropolitan areas, in which we participate to reduce the numberof delivery vehicles to the sites. In fiscal 2001, we covered fivesites including ongoing ones mainly in the Tokyo area, and it
is estimated that the number of delivery vehicles was saved by
40~50 % compared to conventional cases. Major sites covered
include "Marunouchi Building" and "Shiodome D Minami-Gaiku
Mansion".
We also participate in the joint transportation program thatis promoted by JCMA using ships directed to Hokkaido, thus
being engaged in contributing modal shift as well as energy
conservation.

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Improvement of loading efficiency
Expansion of mixed loading and use of large-sized cars
is promoted to reduce the number of delivery vehicles by
upgrading loading efficiency. In this program, a target is set to
reduce the NOx emission volume due to product transportation
cars in terms of ton-by-kilometer by 10 % in fiscal 2002 withrespect to the first half of fiscal 2001.

Reduction of Packaging Material
Packaging-less delivery of products at the logistics center in theform of drum or bundle is promoted to reduce the volume of
packaging paper and wood.

Reusable cable delivery drum made of recycled cable material11