Environmental Performance

Furukawa Electric
Basic Environmental Policy

Furukawa Electric recognizes that the preservation of the global
Basicenvironment is a critical issue for society and takes the environment

Philosophy

into consideration in every aspect of its corporate activities to help
create a sustainable, happy and prosperous society.

ActionGuidelines

11

l We shall maintain a constant awareness of the impact of our corporate activities on theenvironment, with each and every employee involved in environmental preservation
activities.
l In addition to complying with environmental laws and regulations and withrequirements from our customers and other sources, we shall also set out voluntarystandards to establish greater levels of control.
l We shall set out environmental targets and objectives and systematically carry out
activities accordingly to continuously improve our efforts to protect the environment.
l Environmental concerns shall be taken into consideration at every phase of our work,from the R&D and design stages onwards, to supply environmentally friendly products.
l We shall strive to reduce consumption of resources and energy, to promote recycling,
to reduce waste and to minimize environmental impact at every stage of our activities,
from procurement and manufacturing to distribution and customer service.
l We shall conduct environmental audits and review our environmental management
system and environmental preservation activities to make continuous improvements.
l In addition to raising employee awareness through environmental education, we shallpromote the disclosure of information and communication with the public and play anactive part in community activities.

Environmental Management Targets and Performance
Having devised a set of targets for the four year period from fiscal 2006 to fiscal 2009 in the form of the 2009 MediumTerm Plan for Environmental Preservation Activities, Furukawa Electric continues to promote environmental activities
accordingly. We also set out annual Priority Environmental Preservation Activity Targets, based on which we map out
objectives, targets and action plans as part of the environmental management systems at each of our bases. On a Groupbasis, we formulate common activity targets as part of consolidated environmental management, with each individualcompany setting their own annual targets and carrying out activities accordingly.

Furukawa Electric Annual Targets and Performance for Fiscal 2006
Activities

Priority Environmental Preservation Activity
Targets for Fiscal 2006

Performance in
Fiscal 2006

RatingPriority Environmental Preservation Activity
Targets for Fiscal 2007

Waste reduction
activities

20% reduction in the volume of outsourced waste
59% reduction
disposal compared with fiscal 2004 level◎

30% reduction in the volume of outsourced waste
disposal compared with fiscal 2004 level

Zero emission activities

20% reduction in direct landfill disposal
compared with fiscal 2004 level

65% reduction◎

30% reduction in direct landfill disposal
compared with fiscal 2004 level

Activities to prevent
global warming

22% reduction in greenhouse gas emissions
compared with fiscal 2000 level

17% reduction△

23% reduction in greenhouse gas emissions
compared with fiscal 2000 level

Chemical substancemanagement activities

12% reduction in emissions of volatile organic
compounds compared with fiscal 2004 level

18% reduction◎

18% reduction in emissions of volatile organic
compounds compared with fiscal 2004 level

100% procurement rate for 50 general purpose
items

97%

△

100% procurement rate for green products)(general purpose items)

Establishment of the FGM system* at all plants
subject to the RoHS Directive

System established○Establishment of the FGM system at major supply
chain operators△

1) Sales of environmentally friendly products
amongst new products 100%
2) Examining environmental performance indicesGreen activities

Eco-design activities

Increase sales percentage of environmentally67%
friendly products amongst new products to 100%

Evaluation ratings:◎ Easily achieved; ○ Achieved; △ Almost achieved; × Unachieved*The FGM system is a mechanism designed to manage the content of regulated hazardous substances in Furukawa Electric products.

Furukawa Electric Consolidated Environmental Management Medium-Term Targets
Activities

Furukawa Electric 2009 Medium-Term Plan forEnvironmental Preservation Activities

2009 Consolidated Environmental Management
Common Activity Targets

Waste reduction
activities

50% reduction in the volume of outsourced waste disposal
compared with fiscal 2004 level

50% reduction in the volume of outsourced waste disposal
compared with fiscal 2004 level

Zero emission activities

50% reduction in direct landfill disposal compared with fiscal 2004 50% reduction in direct landfill disposal compared with fiscal 2004
level
level

Activities to prevent
global warming

25% reduction in greenhouse gas emissions compared with fiscal
2000 level

Chemical substancemanagement activities

30% reduction in emissions of volatile organic compounds
compared with fiscal 2004 level

Green activities

Eco-design activities

Expansion of the range of products subject to green procurement(general purpose items) and introduction into Furukawa ElectricGroup

10% reduction in greenhouse gas emissions compared with fiscal
2000 level
30% reduction in emissions of volatile organic compounds
compared with fiscal 2004 level
Eliminating the use of chlorinated organic compounds by fiscal
2008
100% procurement rate for items subject to green procurement(general purpose items)

Promotion and improvement of green product management
Promotion and improvement of green product management○ Establishment of the FGM system at supply chain operators by○ Establishment of the FGM system at supply chain operators by
the end of 2007 for full-scale operation by the end of fiscal 2008
the end of 2007 for full-scale operation by the end of fiscal 2008
Promotion of improved environmental performance of products○ Increased percentage of environmentally friendly products
amongst new products○ Introduction of environmental performance indices

Promotion of improved environmental performance of products○ Increase sales percentage of environmentally friendly products
amongst new products to 100%

12

Environmental Performance

Environmental Management System

Environmental Management Organization
We at Furukawa Electric promote environmental preservation activities on acompanywide basis via our Central Committee for Environmental Management,
which is chaired by the Chief Social
Responsibility Officer (CSRO). We also
promote Group environmental activities
in conjunction with our affiliated companies via the Liaison Meeting for Consolidated Environmental Management. All of
Furukawa Electric’s business bases andconsolidated environmental companies
have been granted ISO 14001 certification.

Company-wide Environmental Management Organization Chart
Committee for Company-wide
Promotion of Energy Conservation

Central Committee forEnvironmental Management

Committee for Development ofEnvironmentally-Friendly Products
Safety and Environment
Promotion Department

Environment Committeeof Works

Divisional Environment
Committee

Expert Committees

Energy Conservation Committee,
Waste Committee,
Chemical Substance Committee, etc.

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

Environmental Education
The Furukawa Electric Group runs avariety of educational initiatives designed
to raise levels of environmental awareness amongst our employees.

ISO 14001 Related Education
We organized two Internal Environmental Auditor Training Seminars led
by company instructors in fiscal 2006,
with participants including members ofstaff from affiliated companies. This year,
we trained a total of 49 internal auditors
through such seminars. We also organized internal auditor refresher seminars
aimed at our affiliated companies.

Environment-Related Education
We organized education sessions onenvironmental issues in general for a totalof 91 new employees and second-year employees this year. We also conducted educational activities on an ongoing basis at eachof our works and workplaces to coincidewith employees being assigned to new divisions, including both general environmental education sessions and special education
sessions geared towards specific duties.

Internal Environmental Auditor Training Seminar

Group training for new employees

Initiatives Based on Positive Environmental Impacts
In addition to negative environmental
impact, ISO 14001 also covers impacts
that have beneficial effects on the environment (positive environmental impacts). As well as our ongoing efforts to13

prevent pollution, we at the Furukawa
Electric Group continue to get involvedin proactive activities designed to have apositive impact on the environment. For
instance, we are currently working on

improving the linear speed of coil manufacturing, increasing usage of lead-freesoldering and developing environmentally friendly electric wire.

Environmental Risk Management

Soil and Groundwater Pollution Counter-Measures
In recognition of the fact that soil andgroundwater pollution is an important issue
for the health and safety of local residents
and employees, the Furukawa ElectricGroup actively engages in related risk management activities.
In addition to taking action promptly assoon as investigations detect soil or groundwater pollution, we make every effort tosecure the health and safety of all residents
living in the local area. We automatically report the status of any pollution and detailsof measures to prevent the spread of pollution to the local authorities and release relevant information to local residents, relatedorganizations, the media and any other concerned parties as necessary.
In an effort to prevent any negative impact on the local environment as a resultof soil or groundwater pollution, we implement a range of pollution risk avoidance
initiatives on an ongoing basis, including
conducting regular inspections to checkfor leakages of specific harmful substances,taking steps to prevent leakages and promoting the use of alternative substances.
During the period to fiscal 2005, wecompleted a review of records of specificharmful substances used at our works andaffiliated companies and conducted risk assessments to evaluate the risk of soil andgroundwater pollution at our works. Basedon the findings, in fiscal 2006 we voluntarily
carried out studies into the status of soil pollution in high-risk areas.
We have conducted soil pollution studies and implemented cleanup measures at
a total of nine company-owned offsite locations of our Nikko Works since fiscal 2003.
Of these, we had completed improvement
work at eight locations by the end of fiscal
2006. Work at the remaining location wascompleted on June 2007.

Improvement Work at Offsite Locations of our Nikko Worksl Arasawa Uodome

BeforeAfterl Grounds of the former Mizusawa Skating Rink

BeforeAfterl North Side of Tanze-so Housing

BeforeAfter

14

Environmental Performance

Environmental Risk Management

PCB Management
The quantity of instruments containing PCB is monitored at each of ourworks so that storage and management
operations can be carried out appropriately. In line with the start of processing
operations by the likes of the Japan Environmental Safety Corporation, we intend
to continue to commission processing on
an ongoing basis.

Quantity of PCB Stored
Works(Already processed)

Chiba Works(Unprocessed)

Unit: instruments

In storage
88

In use

Total
0

88

11

0

11

Nikko Works

324

30

354

Hiratsuka Works

47

11

58

Mie Works

126

0

126

Osaka Works

66

0

66

Yokohama Works
Total

9

0

9

671

41

712

Addressing Asbestos Issues
Use of Asbestos in Products
Although we do not currently manufacture or import products containing asbestos, we have manufactured and soldsuch products for industrial use in thepast. Relevant products include electric
wires for use on ships and fire prevention
products for use in construction to installelectric wires for telecommunication andelectricity. Details relating to these products are featured on our website.

Use of Asbestos in Buildings andPlant Facilities(1) Buildings
We have discovered asbestos spraymaterials in company-owned buildings
and plants. Although investigations into
the extent of dispersal have confirmedthat the asbestos is stable, we decided
to remove it anyway to safeguard against
the risk of dispersal in the future. Removal work was completed during fiscal
2006.

(2) Facilities and equipment
We have replaced all asbestos in cases
whereby viable alternatives are available.
In cases where asbestos is embedded
within insulation and other such materials and therefore not dispersed, we plan
to replace them with alternative materials that do not contain asbestos at a later
date, to coincide with scheduled inspections.

Compliance with Environmental Laws and Regulations and Other Compliance Requirements
We check environmental laws andregulations and any other compliancerequirements on a regular basis andmake every effort to ensure compliance,

15

including patrolling our sites to confirm
that measures are being properly implemented.
We monitor the latest information via

the Official Gazette and other sources tokeep track of revisions to environmental
laws and regulations and ensure that wehave taken all possible measures.

Business Activities andtheir Environmental Impact
In the process of providing Furukawa Electric products, we purchase a variety of components and raw materials,
consume water, electric power and other forms of energy and use chemical substances. We continue to work on
reducing the adverse impact that these activities have on the environment.

Environmental Impact of our Six Production Base WorksOUTPUT
INPUT

Atmospheric emissions
CO2
228,000 t - CO2

Raw materials
Copper

192,000 t

NOx

137 t

SOx

21 t
12 t

Soot

Energy(*1)

132,000 kl

Wastewater

Water

18.7 million t

Waste

Chemical
substances(*2)

Waste(*3)

1,443 tRecycled materials

17 million t

1,552 t18,348 t

Chemical substances(*2)
Volume emitted
181 t
Volume transferred
259 t(*1) Amount of electric power, fuel oil and fuel gas consumed(*2) PRTR targeted substances(*3) Outsourced waste disposal, excluding recycled materials

Environmental Impact of our Non-production Bases
We have identified the environmental impact of activities at our non-production bases, namely Furukawa Electric’s Head Office andthree Branch Offices.

Amount of electric
power consumed

956,843 kWh

Amount of water used

256 t

(362 t - CO2)

Amount of paper used
Photocopier paper
Newspaper
Cardboard

21,603 kg
3,653 kg
1 kg

We promote power and resource saving measures at our Head Office andBranch Offices, the company’s non-production bases.
Examples of such power saving measures include turning off lighting in conference rooms not in use and adjusting
air conditioning to appropriate temperatures. In terms of resource saving measures, we promote activities such as sorting waste and reusing resources such as
photocopier paper and files.

16

Environmental Performance

Environmental Accounting
In an effort to quantitatively assess our environmental costs and benefits, we have compiled tables outlining our“environmental conservation cost,” “economic benefit associated with environmental conservation activities” and the“environmental conservation benefit (material benefit).” All data has been compiled in accordance with environmental
accounting guidelines published by the Ministry of the Environment. Data on affiliated companies was collected for a totalof 22 companies.
Furukawa Electric’s environmental
conservation costs for fiscal 2006 came
to 5.1 billion yen in expenses and 200 million yen in investment. Expenses fell by
70 million yen compared to the previous

year (fiscal 2005). Overall economic benefits remained at 40 million yen, due inpart to increased energy costs.
Environmental conservation costs forour affiliated companies came to 3.3 bil-lion yen in expenses and 1.9 billion yen
in investment. Overall economic benefitsrose by approximately 300 million yen
due to increased energy costs.

Environmental Conservation Costs

Unit: million yen

Category

Key activity and the outcome(1) Business area cost(2) Upstream/downstream cost(3) Administration cost(4) Research and development cost(5) Social activity cost(6) Environmental remediation cost

Furukawa Electric
Total costs
Year-on-year

Pollution prevention (air pollution, etc.), energy conservation, waste
disposal, etc.
Recovery of packaging, drums, etc.
Environmental management system auditing, environmental impact
monitoring, etc.
Development of environmentally friendly products, research into
alternatives for harmful substances
Tree planting, local community cleaning activities, donations, etc.
Environmental impact assessments, cleanup of polluted soil, etc.
Total

Affiliated companies
Total costs

1,515

114

2,220

667

156

209

428

25

214

1,184

82

557

4
1,260
5,058

-86
-358
-67

5
58
3,262

Year-on-year figures have not been calculated for affiliated companies due to differences in the companies covered compared to last year.

Environmental Conservation Benefit
Emissions causing
environmental impact

Unit

Waste disposal*t

Furukawa
Electric

Affiliatedcompanies

Reduction

Reduction

667

310

Energy consumption(crude oil equivalent)

1,000 kl

-8

14

Water consumption

1,000 t-1,722

-764

t

74

1

CO2 emissions

1,000 t - CO2-16

8

SOx emissions

t

-9

82

NOx emissions

t

-11

-160

Soot emissions

t

-1

58

Emissions of volatile organic
chemical compounds* Excludes recycled waste

Unit: million yen

Furukawa
Electric
Total benefit
448
-13
-393
-1
41

Revenue from recycling

Reduction in waste disposal costs
Reduction in energy costs
Reduction in water purchase costs
Total

Affiliatedcompanies
Total benefit
740-13-1,02417-280

Minus figures indicate an increase

Investment and Research Costs
Investment and research costs

Unit: million yen

Furukawa
Electric
Total costs
186
11,9009,969

Environment-related investment
Total investment
Total research costs

Affiliatedcompanies
Total costs
1,850
22,511
5,299

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

60

12
49.5

50

53.0

51.3

43.6
40

50.6

Environmental remediation costSocial activity cost
Research and development cost
Administration cost

36.8

Upstream/downstream cost
30

Business area cost

Revenue from recycling

11.0
10

Reduction in waste disposal costs
Reduction in energy costs

8

Reduction in water purchase costs
Total revenue and expenditure

6
4

20

4.0
4.1

2.6

3.2

2

10

17

Details of benefits

Minus figures indicate an increase

Environmental Conservation Costs

0

Economic Benefit Associated withEnvironmental Conservation Activities

0.4
0
2001

2002

2003

2004

2005

2006 (Fiscal year)

-4

2001

2002

2003

2004

2005

2006

(Fiscal year)

Producing Environmentally Friendly Products
In order to produce environmentally friendly products, we at Furukawa Electric undertake measures such as purchasing
items via green procurement, green product management and environmentally friendly product development.

Green Product Activities
Green Product Management Activities
Having set up a Committee for Green
Product Management in 2005, we are currently working on the establishment of amanagement system to control chemical
substances contained in our products,
whilst also furthering the sharing of information between business divisions.
In an effort to prevent any infringements upon environmental regulations
in relation to chemical substances, westudied the content of regulated harmful
substances in every one of our Furukawa
Electric brand products in fiscal 2005 andcompiled a “Registration Master for all
Green Products and Plants.”
In fiscal 2006, we decided to proceedwith measures based on the aforementioned master in phases, starting withplant divisions responsible for producing
high-priority regulated products. In viewof requirements regarding the management of chemical substances containedin products issued by the Japan Green
Procurement Survey Standardization Initiative (JGPSSI) and requests from major
customers, we compiled a new system configuration check sheet (FGM Self-check
Sheet), conducted voluntary inspections
unique to Furukawa Electric, ran management system inspections and rectified
any issues. We have now completed theestablishment of a management system

spanning four in-house companies and 12
manufacturing divisions. On other fronts,
we have undergone and performed wellin supplier audits conducted by two of ourmajor customers and have started workon the establishment of management systems at our affiliated companies as well.
In addition to all this, we have organized Auditor Training Seminars led bycompany instructors and outside specialists to improve auditors’ understandingof how to manage chemical substances
contained in products. As a result wehave trained at least two auditors in eachbusiness division and at least one at eachaffiliated company.

Green Product Activities at our Telecommunications Company
With its wide range of products, including optical fibers, optical and communication cables, optical connectors, wiring forelectric and electronic equipment, opticalcomponents, fiber optic amplifiers, laser
modules, optical system products, network equipment and fusion splicers, themarket covered by Furukawa Electric’s
Telecommunications Company stretches
all the way around the world. Such a widearray of products results in an equallywide variety of requests from customers
regarding the management of chemical substances contained in products.
On the whole, our Telecommunications
Company is working on establishing amanagement structure from the following
perspectives.
(1) We are compiling a set of green product management regulations that canbe applied to each individual productcategory and are working on standard
system requirements for each productcategory, with the relevant regulations
set as the upper standard.
(2) We have continued to devise mechanisms to retrieve data and promoterecord management to enable us torespond quickly to inquiries from ourcustomers regarding the six substances listed under the RoHS Directive, the24 JIG substances and other chemical
substances contained in our products.
(3) We have installed X-ray fluorescence
spectrometers and are using them on
externally purchased items.

We are also working on the development and launch of the following new
products designed to contribute to theenvironment.
(1) Easy-recycle optical cables are opticalcables that can be recycled efficiently
once recovered. By carrying out reviews right from the design stages,
we have successfully developed andlaunched products whose structure
can be easily separated, thereby making it possible to recycle a large number of their composite components.
(2) We are already 100% compliant with
the RoHS Directive in the field of
equipment wiring. We have launched
and are currently focusing on the promotion of Eco-Wire, which is free from
halogen as well as the six substances
under the RoHS Directive. Eco-Wiresales in fiscal 2006 accounted for approximately 30% of our overall equipment wiring sales.

18Environmental Performance

Producing Environmentally Friendly Products

Eco-Design Activities
Environmentally Friendly Products
At Furukawa Electric, we use theterm “environmentally friendly products”
to refer to products that are harmless at
every stage of the process from production and distribution through to usage
and disposal and that have a minimal impact on the environment. We even have

our own unique environmental labelingsystem for such products. Our environmentally friendly product percentage,
namely the percentage of total sales of
new product accounted for by environmentally friendly products, came to 67%
in fiscal 2006.

* Further details of our environmentally friendly
products are available at the following addresson the Furukawa Electric website.
http://www.furukawa.co.jp/enviro/pro/index.htm

Environmentally Friendly Product Development
In an effort to combat the various effects of global warming on society in recent
years, the development of environmentallyfriendly products is becoming an increasingly urgent issue. Although environmentally friendly products obviously need tohave minimal impact on the environment,
they also need to offer benefits to thepeople who use them, in terms of areas
such as price, performance, safety and reliability, if they are to take them on board.
Similarly, unless products find widespread
application, it is impossible for companies
to generate cost benefits. We therefore focus on activities designed to get people toselect and use our environmentally friendly products as much as, if not more than,technical development itself.
Based on the notion that it is important first and foremost for us to select anduse our products ourselves, we introduce
products under development into our own
works in an effort to show our customers
the effects and benefits that they offer andgive them a real feel for our products.
The heat island effect in urban areas
is a particularly tricky issue, plagued by avicious circle whereby using air conditioning as a solution results in the consumption of even more energy, thereby driving

We aim to develop products in linewith our customers’ needs
Hideto Nakamura
Eco-Products Department, Ecology & Energy Laboratory,
R&D Division

No matter how environmentally friendly a product is, people will only take it
on board if they think that the benefits it offers balance out the cost.
I worked on the development of Hydrostaff, a plastic underground storage
and permeation tank that offers outstanding performance as well as the advantage of quicker installation compared to conventional concrete storage tanks.
With a plastic storage tank consisting of a block-shaped structure, you always
face the issue of how to remove sand that flows into the tank along with rainwater and forms as sediment inside the tank. We have resolved this issue however
by also developing a Sediment Control System, which can really be a great help
to our customers from the point of view of maintenance.
We will continue to make every effort to develop products that offer as many
benefits as possible in line with our customers’ needs in the future.

19

the temperature up even higher.
To combat the heat island effect, wehave developed a system that, rather
than consuming additional energy, stores
naturally occurring rainwater and uses theprocess of evaporation to generate a cooling effect. We have also launched a project
to install the relevant system at our works
to verify its effectiveness. We hope to giveeveryone the chance to experience the effects of this system in 2007.
We intend to continue to actively develop environmentally friendly productsthat enable us to really feel the effects andbenefits first hand.

Hydrostaff
Made from a combination of polypropylene resin-based units and sheeting,the Hydrostaff system stores rainwater underground or allows it to permeate aspart of the creation of rainwater usage or rainwater runoff-prevention facilities.
Its features include easy assembly, a reduced construction period and outstanding
water storage efficiency, with a storage rateof at least 95%.

Sediment Control System
Consisting of a partitioned unit and a series of manholes for inspection or
cleaning purposes, the Sediment Control System significantly reduces the diffusion and accumulation of sand inside water tanks. The inspection holes enable
a person to get inside and clean up sand that has formed into sediment, makInspection/cleaning holeing maintenance easy
Rainwater inlet
and enabling tanks to
Partitioned unit
maintain their storage
volumes over a longer
Sediment Control System
period of time.

Easily Dismantled Recyclable Optical Fiber Cables
With conventional optical fiber cables,
it takes effort to separate binder tapefrom the optical fibers when dismantlingcables. There are also issues with thebinder tape becoming contaminated with
impurities in the form of cable sheaths,
making the process of dismantling andseparating cables a costly one. In conjunction with Tokyo Electric Power
Company, we at Furukawa Electric are
addressing the issue of recycling opticalfiber cables and have developed easily
dismantled recyclable optical fiber cables
that can reduce the cost of dismantlingand separating cables.
This product’s features include thefollowing.
(1) By using polyethylene tape for thebinder tape, the sheath and the binder
tape melt together during sheathingas part of the manufacturing process
and become integrated with one an-other. Consequently, when the sheathis removed, the cable can be dismantled as if there wasn’t any binder tape.
This makes it possible to significantly
reduce the time taken to dismantle
cables.
(2) As the binder tape is made from polyethylene, the same material as thesheath, there are no impurities even
if the two are mixed together.
(3) Making it easier to dismantle cables
also makes it easier to remove thesheath and take out the optical fibers
inside when installing or connecting
optical fiber cables.
As the introduction of cables such asthese can cut dismantling and separation
costs by 50%, it is possible to dismantle
and separate cables for the same cost as
industrial waste disposal via landfill sites
or incineration.

The Structure of an Optical Fiber Cable
Optical fibers
Binder tape
Moisture barrier tapeTension member*
Slots*
Sheath** denotes components made from recyclable materials.

A Dismantled Cablel Traces of melted binder tapel No binder tape

Fire Retardant Cable Sheets
PROTECO Sheet P2-eco and PROTECO Sheet P2DX-eco
Fire retardant cable sheets are highly
flame resistant sheets that are wrappedaround power or communication cables
inside a cable tunnel or on a cable rack,either directly or on top of the rack, toprevent fire from spreading.
Until now, fire retardant sheets havetended to be made from halogen-based
fire retardant materials to give them theirhighly fire retardant properties. Through
F-CO and Furukawa Techno Material
however, we have managed to achieve an
oxygen index of 50 and limit the volume

Cables wrapped in
PROTECO Sheet
P2-ecoof hydrogen halide generated upon combustion to a mere 1mg/g via highly fire
retardant technology using halogen-freeresin, rubber and fire retardant. We havealso managed to minimize smoke emission, keeping it down to one quarter ofconventional levels (based on our findings). By maintaining outstanding levelsof fire retardant performance (including
passing IEEE Std. 383-compliant vertical tray combustion testing), eliminating
halogen and minimizing smoke, we haveachieved a substantial reduction in envi-

ronmental impact compared to conventional fire retardant sheets.
Our sheets also offer superior mildew
resistance, making them ideally suited
to locations susceptible to mildew inside
cable tunnels.
In recent years, our sheets have comeinto wide use in cable tunnels at substations, various different plants, airports,
railway facilities, power companies and arange of other locations.

Attachment belts
PROTECO Sheet P2-eco (power cables)
Thermal Expansion Liner
PROTECO Sheet T (communication cables)

Cable racks wrappedin PROTECO Sheet
P2-ecoPROTECO Sheet P2DX-eco (power cables)

20Environmental Performance

Producing Environmentally Friendly Products

Recycled Insulated OC Wire
Of all the sheathing materials used inelectric wiring and cables, cross-linked
polyethylene cannot be heated up andmelted. This has always posed problems
in terms of material recycling, resulting
in cross-linked polyethylene being almost
entirely recycled into fuel via thermal recycling. However, Furukawa Electric hasdeveloped unique material recycling technology capable of recycling cross-linked
polyethylene via thermoplastic processing. In conjunction with Tokyo ElectricPower Company and VISCAS Corporation, we have successfully developed
technology that enables waste sheathingmaterials from used outdoor cross-linked
polyethylene insulated wire (OC wire) tobe reused as new sheathing material for
OC wire and have released recycled insulated OC wire as a commercial product.
Our recycled insulated OC wires contain approximately 25% recycled thermoplastic-processed waste sheathing material, making this the world’s first case ofcross-linked polyethylene being recycled
for the same purpose via material recycling.

Green Procurement
Office Supplies and Other General Purpose Items
We promote the purchase of green
products via our purchasing division byregistering such products exclusively on
our purchasing system. We stepped up
our activities even further in fiscal 2006,
increasing the total number of products
covered by 27, taking last year’s total of
23 up to 50. The term “green products”
refers to products recommended by theGreen Purchasing Network and products
bearing environmental labels. As a resultof our efforts, we managed to achieve a
procurement rate of 97% by the end of
fiscal 2006. Our affiliated company Furukawa-Sky is also implementing similar
activities and has reached a procurement
rate almost on par with ourselves. In addition to increasing the number of products covered in the future, we also intend
to get more of our affiliated companies toengage in green procurement.

Examples of Environmental
Labels Used

Eco Mark Program

Compliant with
the Law on Promoting
Green Purchasing

Green MarkGreen Purchasing
Network

The R100 mark (recycled
paper with a recycled
paper ratio of 100)

Energy-Saving Labeling
Program

Products and Manufacturing Process Components
We verify the status of products andmaterials purchased for manufacturing
processes through measures such as
conducting individual interviews and investigations, covering areas such as our

suppliers’ environmental management
systems and levels of environmentally
regulated substances contained in theirproducts, and ordering MSDS and otherdocuments.

International
Energy Star Program21

Environmentally Friendly Products
Products that help prevent global warming
We are working on the development and commercialization of
products designed to help save energy, such as lightweight products or products with improved energy efficiency, and products
and systems that use clean energy.
• Microcellular reflective sheet (MCPET)• Rainwater storage and permeation
systems (Hydrostaff)• High-performance corrugated fins• High-performance heat exchangematerials• Advanced, stable performance
extruded aluminum materials• Aluminum alloys to enable lightweightvehicle development• Applied micro heat pipe products

Automobile panels

MCPET

Products free from substances that cause environmental impact
We are working on the development and commercializationof products that do not cause any environmental issues whenused or produce harmful substances when incinerated or sent toa landfill site after use and biodegradable products that do notleave behind any waste products.
• Eco-wires for electronic and electric
equipment (ECOACE plus, ECOBEAMEX)• Fire retardant insulated copper sheath
piping (THERMO-IN BIRUMEITO Tube)• High-performance copper alloys forconnectors (beryllium-alternative
copper alloys)• Protective indoor wire tubing
made from fire retardant resin(ECOPLAFLEKY)• Lead-free plated components forelectronic equipment

ECOBEAMEXTHERMO-IN BIRUMEITO Tube

Products that help create a recycling-oriented society
We are working on the development and commercialization ofrecycling-oriented products, including products made from reused
waste products, products made from recyclable materials, products made from fewer materials or containing fewer components
and easily degradable products.
• Underground cable ducts (KOTA-KUN,
KOICHI-KUN)• Biodegradable thermoplastic form
(BIOACE)• Synthetic resin troughs (Green Trough)• Recycled aluminum cans
• Weed barrier sheets• Watering hoses

Green Trough

KOTA-KUN

HPWR IIFUSCOAT

Products that help protect the ozone layer
We are working on the development and commercializationof apparatus and processes that do not use chlorofluorocarbons(CFCs), one of the main substances harmful to the ozone layer,
and products compatible with CFC alternatives.
• CFC alternative-compatible magnet
wires (HPWR II)• High-performance resin sheathingaluminum sheets (FUSCOAT)• CFC alternative-compatible copper
piping (FMGT)

22

Environmental Performance

Zero Emission Activities

The Furukawa Electric Group has been involved in efforts to reduce levels of outsourced
waste disposal ever since 1993. We have also
continued to promote zero emission activities,
which we define as “activities designed toreduce outsourced industrial waste disposal
whereby waste is transported directly from ourworks to landfill sites for permanent disposal,”
since 2001. This year, we have been promoting efforts to improve waste sorting and torecycle waste acid and sludge. The overall levelof outsourced waste disposal for the Group
as a whole fell by 28% compared with fiscal
2004 level to 10,600 tons. Furukawa Electricachieved an equivalent reduction of 59% andour affiliated companies a reduction of 18%(both compared with fiscal 2004 level levels).

a reduction of 24% (both compared with fiscal
2004 level levels). At Furukawa Electric’s Chiba
and Hiratsuka Works, we have reduced the rateof landfill disposal to no more than 1% of total
emissions.

Outsourced Waste Disposal

Direct Landfill Disposal(Tons)(Tons)

30,00020,00015,000

9,344

8,452

0

6,840

5,551

5,494 4,934
9,131 8,274
2000

2001

5,974 6,018
2002

2003

5,220
3,816

5,016 5,274

2,000

3,689 3,767

1,000

2,119 1,552(Fiscal2004 2005 2006 year)

We at Furukawa Electric are also working towards targets for the reduction ofwaste disposal costs. Spending on landfill
and intermediate disposal in fiscal 2001 totaled more than 300 million yen. In addition
to reducing levels of waste through initiatives such as promoting reuse and eliminating waste along our production lines,
we have continued to implement measures
such as carefully sorting waste to generatevalue since then, making it possible to sell
our waste products for profit. In addition to
the effects of activities such as these, soaring scrap copper prices following on fromthe previous year have enabled us to achieve
a profit of approximately 250 million yen.

As we have a wide range of manufacturing plants at our Hiratsuka Works, covering everything from construction materials to optical communication equipment
and electrical and electronic products
and materials, our operations generate
an equally wide range of waste products.
With this in mind, we decided to use ouraccreditation under ISO 14001 in 2000 as
an opportunity to launch full-scale waste
reduction activities.
As part of our waste reduction activities, we have been focusing on carefully
sorting waste based on a philosophy of
cutting overheads wherever possible. Specific measures such as stepping up waste

Income

249

2002
2002

2003
2003

2004
2004
-75

2005
43
2005

2006
(Fiscal2006 year)

-100
-200
-300
-400

-238

-252

80

50

300

70

Landfill

Emissions

2001
2001

Intermediate processing

30

Total waste generated 150

20

-187

100

10

-353
Expenditure

0

200

2000

2001

2002

2003

2004

2005

(Fiscal2006 year)2001

1,812 1,634
2002

2003

504
2004

1,504

1,825

750 1,288
176
177(Fiscal2005 2006 year)

100%
90%

60
50

Outsourced

40

Rate of recycling

80%
70%

30
20

50

10

0

0

60%

2000

2001

2002

2003

2004

2005

(Fiscal 50%

2006 year)

Rate of recycling

2000
2000

350

250

2000

2,232

(Tons/month)

60

40

1,657
3,022 2,974

Rate of Recycling (Hiratsuka Works)(Tons/month)

Total waste generated

100

1,889

2,567

sorting education, conducting waste andemissions checks at strategic waste collection points and recycling landfill waste
have consistently produced results year
after year. As such results tend to motivate employees to try and make further
reductions, we have made rapid progresswith improvement measures.
Having previously reduced levels of
landfill waste from around 55 tons permonth in fiscal 2000 to 10 tons per monthby fiscal 2004, we have now cut landfill waste to a mere 1.1 tons per month.
Equivalent to 0.3% of our total emissions,this signifies that we have successfully
achieved our zero emissions target.

Waste Generated (Hiratsuka Works)(Tons/month)

200

0

0

2,002

2,543

3,000

Reducing Landfill Waste

300

1,872
3,242

4,000

5,777

Reducing Waste Disposal Costs(Million yen)

1,639

6,000
5,000

7,959

Other affiliated companies
Furukawa-Sky
Furukawa Electric

7,000 1,442

7,592

10,000
5,000

8,000

Other affiliated companies
Furukawa-Sky
Furukawa Electric

25,000Waste Disposal Costs

23

The overall level of direct landfill disposal
for the Group as a whole also fell by 28%
compared with fiscal 2004 level to 3,322 tons.
Furukawa Electric achieved an equivalent reduction of 65% and our affiliated companies

Efforts to Prevent Global Warming

The Furukawa Electric Group has continued
to engage in activities designed to help prevent
global warming in conjunction with our energy
conservation initiatives. We are implementing awide range of measures at our plants, including
installing a range of energy conservation equipment such as cooling water pumps and inverter
cooling fans, running equipment efficiently(consolidating and cutting back on compressors, etc.), reusing hot air from exhaust fumes
and fuel conversion. At our offices meanwhile,
we are implementing measures such as turning
off unnecessary lighting and adjusting air con-ditioning temperature settings as appropriate.
Our total greenhouse gas emissions for theGroup as a whole came to 960,000 tons CO2
in fiscal 2006, a reduction of 6% compared tolevels in fiscal 2000. Furukawa Electric achieved
an equivalent reduction of 17% and our affiliated companies a reduction of 3% (both compared with fiscal 2000 level levels).

Greenhouse Gas Emissions(Tons CO2)

120
100

Furukawa
Electric

20.4

80
60

55.0

Furukawa-Sky

Other affiliatedcompanies

19.4

22.0

22.8

23.0

24.3

23.0

51.7

53.9

54.3

52.2

52.2

49.7

40

* For the purposes of this report, greenhouse gas
emissions are calculated based on uniform round-theclock CO2 equivalents.

20

We have installed NAS batteries atour Hiratsuka Works in an effort tomake effective use of nighttime power,
which uses a lower percentage of fossil
fuels, thereby enabling us to help prevent
global warming. Whereas our Hiratsuka
Works and affiliated companies in the
nearby area used to receive power fromseparate sources, the installation of NAS
batteries has enabled us to standardize
power sources and share the benefits
with our affiliated companies as well.

ters). The overall total for the Furukawa
Electric Group as a whole came to 504
million ton-kilometers. In an effort to cut
back on energy used on transportation,
we are working with Furukawa Logistics
to implement measures such as promoting modal shift, increasing loading rates
and making joint deliveries.
Furukawa Logistics asks the truck
haulage operators it deals with to obtain
Green Management Certification andhas continued to provide the necessary

support to enable us to remain an environmentally friendly logistics company,
through measures such as reducing fuelconsumption. Over the course of fiscal
2006, Furukawa Logistics’ major haulage
operators have more or less completed
the Green Management Certification
process. To cut CO2 emissions, there areplans for fiscal 2007 to get individual haulage operators to work together to ascertain fuel consumption for major routes.

0

27.3

25.4

23.3

22.9

22.4

21.3

22.8

2000

2001

2002

2003

2004

2005

2006

(Fiscalyear)

Installing NAS Batteries

Installed NAS batteries

Logistics-Related Initiatives
In accordance with newly introduced
regulations governing shippers under
the Revised Energy Conservation Law,
we have been working on monitoring
ton-kilometer data, including for our affiliated companies. Furukawa Electricrecorded a total of 148 million ton-kilometers in fiscal 2006. The only otherGroup companies recording 30 million
ton-kilometers or more were FurukawaSky (220 million ton-kilometers) and The
Furukawa Battery (46 million ton-kilome-

Example of Energy conservation Activities on the Shop Floor
At our Mie Works, we have fitted insulating jackets to molding machine heating cylinders in an effort to save energy
in the form of electricity used for heating.
Whilst upgrading kerosene oil boilers at
our Nikko Works, we took the opportuni-

ty to install new LPG fuel boilers capableof reducing CO2 emissions, enabling us
to achieve an annual reduction of approximately 600 tons (estimated CO2
equivalent).
An insulating jacket on a molding machine24

Environmental Performance

Chemical Substance Management

The Furukawa Electric Group promotes
efforts to reduce the use of harmful chemical
substances. In particular, we make every effort
to actively reduce emissions of volatile organic
compounds, which are regarded as one of

the causes of photochemical smog. Furukawa
Electric’s emissions have fallen 18% comparedwith levels in fiscal 2004, with organic chlorinecompounds now only used by six of our affiliated companies.

Emissions of Volatile Organic Compounds(Tons)

400
300* Furukawa Electric only

327

310

253

200
100
0

2004

2005

2006

(Fiscal year)

Appropriate Management of Chemical Substances
We check the properties of and laws
and regulations applicable to all chemical substances that we use as part of the
manufacturing process against Material
Safety Data Sheets (MSDS) and manage
substances accordingly. We also monitor
the volumes of each substance used andreport the relevant details in accordancewith the PRTR Law*.
* PRTR Law: Law Concerning Reporting, etc. of
Releases to the Environment of Specific Chemical Substances and Promoting Improvements in
Their Management

Volume of PRTR Substances Released and Transferred
Substance
No.
25
40
63
64
67
108
172
197
207
227
230
231
232
253
266
272
283

Name of substance
Antimony and its compounds
Ethylbenzene
XyleneSilver and its water-soluble compounds
CresolInorganic cyanide compounds
N, N-dimethylformamide
Decabromodiphenyl ether
Copper salts (water-soluble)
TolueneLead and its compounds
NickelNickel compounds
Hydrazine
PhenolBis (2-ethylhexyl) phthalate
Hydrogen fluoride and its water-soluble salts

Volumehandled
75.6
8.3
24.3
2.5
275.1
22.4
78.8
227.2
15.2
509.0
2.2
3.6
9.6
7.7
175.9
2.9
2.2

Volumereleased
0.0
0.0
8.2
0.0
0.7
0.0
0.3
0.0
0.0
170.7
0.0
0.0
0.0
0.0
0.3
0.2
0.0

(Unit: Ton)

Volumetransferred
5.4
0.0
3.2
0.0
0.0
0.0
0.0
16.4
0.0
232.7
0.0
0.0
0.0
0.0
0.0
0.2
1.2

Volumeneutralized
0.0
8.3
10.9
0.0
273.9
22.4
77.8
0.0
15.2
103.4
0.0
0.0
9.6
7.7
175.2
0.0
0.0

* Applicable to substances that are handled in volumes of one ton or more at Furukawa Electric works (or 0.5 tons or more in the case of
specific first category chemical substances)

Reducing Emissions of Volatile Organic Compounds
Emissions of volatile organic compounds (VOC) became subject to emissions regulations in April 2006 with theenactment of the Revised Air Pollution
Control Law. Although Furukawa Electricdoes not currently own any facilities thatfall under the relevant regulations, we arevoluntarily working to reduce emissions
anyway. The main types of VOC handled
by Furukawa Electric are toluene and isopropyl alcohol (IPA). We are looking into
switching to an alternative to toluene,

which we use to clean copper strips, andupgrading our facilities to do so. We arealso examining the possibility of installing equipment to recover evaporated IPA,
which is used to reduce copper wire as itcomes out of the melting furnaces.

Example of Chemical Substance Reduction Activities
At our Mie Works, we are working on reducing VOC through QC Circle activities.
As part of the optical fiber manufacturing
process, large quantities of fluid consisting
mainly of ethyl alcohol are used to clean
jigs. The QC Circle for the relevant department set out to achieve a reduction in thevolume of fluid used. Although cleaning
fluid was already recovered and reused
repeatedly, the recovery rate was just 36%,

25

meaning that the remaining 64% was released into the atmosphere. The membersof the QC Circle closely monitored how
the fluid was used, identified points where
it was being released and came up withsolutions. Their solutions included changing the recovery method used so that fluid
comes out of the bottom of cleaning tanks
rather than being pumped out from thetop, raising awareness to ensure that allteam members check lids frequently andmodifying the equipment itself by fitting
covers to enable released alcohol to be
recovered in the cleaning tanks. As a result, the recovery rate has improved from
36% to 80%, thereby cutting atmosphericemissions considerably. The QC Circle’s
efforts have also helped cut costs by enabling a reduction in the volume of fluid
purchased.

Environmental Preservation Data
Of the works operated by Furukawa Electric, we collect air and wastewater quality data at the four works that areregistered as specialized plants.

l Chiba Works
Atmospheric Indicators

Wastewater Quality Indicators

NOx

(ppm)

Legal Self-imposed
Facilities
Average Maximum
standard standard
Melting furnace
180
180
30
51

Soot

(g/Nm3)

Melting furnace

Item

Unit

0.1

0.1

0.027

0.048

Item measured

Unit

pH

Legal
standard

Self-imposed
Average Maximum
standard

5.0 to 9.0

5.5 to 8.5

7.9

8.4

COD

(mg/l)

15

10

3.2

11.3

SS

(mg/l)

20

10

3.9

9.5

n-h (mineral oil)

(mg/l)

2

1

0.3

1.2

l Nikko Works
Atmospheric Indicators

Wastewater Quality Indicators
Legal Self-imposed
Average Maximum
standard standard

Self-imposed
Average Maximum
standard

5.8 to 8.6

6.0 to 8.5

7.3

7.5

25

16

3.2

4.4

(mg/l)

50

20

1.2

2.8

(mg/l)

5

0.5

0.2

0.2

Unit

Facilities
Boiler

180

180

81

89

pH

NOx

(ppm)

Melting furnace

200

200

27

28

BOD

(mg/l)

Dryer furnace

300

250

45

52

SS

Boiler

17.5

17.5

0.47

0.55

n-h (mineral oil)

Melting furnace

17.5

17.5

0.37

0.42

Dryer furnace

17.5

17.5

0.13

0.14

Boiler

0.3

0.3

0.00

0.00

Melting furnace

0.2

0.2

0.03

0.03

Dryer furnace

0.5

0.2

0.00

0.00

SOx

Soot

(K value)(g/Nm3)Item measured

Legalstandard

Item

Unit

l Mie Works
Atmospheric Indicators
Item

Unit

NOx

(ppm)

SOx
Soot

(Nm3/Hr)(g/Nm3)

Wastewater Quality Indicators

Facilities

Legal Self-imposed
Average Maximum
standard standard

Item measured

Unit

Legal
standard

Self-imposed
Average Maximum
standard

Boiler

180

140

64

65

pH

5.8 to 8.6

6.5 to 8.5

7.8

8.0

Melting furnace

180

140

43

49

BOD

(mg/l)

10

4

1.5

5.0

Boiler

0.6

0.5

0.00

0.00

SS

(mg/l)

25

6

1.1

2.1

Melting furnace

41.6

33.3

0.13

0.13

n-h (mineral oil)

(mg/l)

1

0.7

0.10

0.10

Boiler

0.3

0.24

0.005

0.005

Melting furnace

0.3

0.24

0.057

0.077

l Osaka Works
Atmospheric Indicators

Wastewater Quality Indicators
Legal Self-imposed
Average Maximum
standard standard

Legal
standard

Self-imposed
Average Maximum
standard

5.7 to 8.7

5.7 to 8.7

7.7

8.2

300

10

5.7

10.0

(mg/l)

300

50

11.8

25.0

(mg/l)

5

2

1.3

2.9

Item

Unit

Facilities
Boiler

150

120

2.0

2.0

pH

NOx

(ppm)

Melting furnace

200

160

2.0

2.0

BOD

(mg/l)

Heating furnace

170

144

3.0

4.0

SS
n-h (mineral oil)Soot

(g/Nm3)

Boiler

0.1

0.08

0.001

0.001

Melting furnace

0.2

0.16

0.001

0.001

Heating furnace

0.25

0.2

0.001

0.001

Item measured

Unit26