Initiatives for the Environment
The Furukawa Electric Group is striving to reduce its environmental impact
throughout the product lifecycle.

Basic Environmental Policy

17

Environmental Management

18

Material Flow

20

Targets and Performance

21

Environmentally Sound Products

23

Environmentally Conscious
Production

24

Chemical Substance Management

26

Environmental Risk Management

27

Environmental Accounting

28

Furukawa Electric Group CSR Report 201016

Basic Environmental Policy
Initiatives
for theEnvironment

The Furukawa Electric Group established its basic environmental philosophy and action
guidelines to unite environmental action across the Group.

Basic Philosophy
The Furukawa Electric Group recognizes that the preservation of the global environment is a critical issue
for society and takes the environment into consideration in every aspect of its corporate activities to help
create a sustainable, happy and prosperous society.

Action Guidelines• We shall maintain a constant awareness of the impact of our corporate activities on the environment, witheach and every employee involved in environmental preservation activities.
• In addition to complying with environmental laws and regulations and with requirements from our customers
and other sources, we shall also set out voluntary standards to establish greater levels of control.
• We shall set out environmental targets and objectives and systematically carry out activities accordingly tocontinuously improve our efforts to protect the environment.
• Environmental concerns shall be taken into consideration at every phase of our work, from the R&D anddesign stages onwards, to supply environmentally sound products.
• We shall strive to reduce consumption of resources and energy, to promote recycling, to reduce waste andto minimize environmental impact at every stage of our activities, from procurement and manufacturing to
distribution and customer service.
• We shall conduct environmental audits and review our environmental management system andenvironmental preservation activities to make continuous improvements.
• We shall raise employee awareness through environmental education.
• We shall promote the disclosure of information and communication with the public and play an active partin community activities.

List of companies participating in the liaison meeting for consolidated environmental management
Company name

Environmental
accounting

Company name

Environmental
accounting

Company name

Access Cable Company

Shodensha Co., Ltd.

Furukawa Precision Engineering Co., Ltd.

Asahi Electric Works Co., Ltd.

Seiwa Giken Inc.

Furukawa Techno Material Co., Ltd.

Inoue Manufacturing Co., Ltd

Totoku Electric Co., Ltd.

Furukawa Electric Advanced Engineering
Service Co., Ltd.

NTEC Ltd.

FITEC Corporation

Furukawa Electric Industrial Cable Co.,Ltd.

FCM Co., Ltd.

Furukawa Automotive Systems Inc.

The Furukawa Battery Co. Ltd.

Okano Electric Wire Co., Ltd.

Furukawa Sangyo Kaisha Ltd.

Furukawa Logistics Corporation

Okumura Metals Co., Ltd.

Furukawa C&B Co., Ltd.

Furukawa Life Service Inc.

Kyowa Electric Wire Co., Ltd.

Furukawa Industrial Plastics Co., Ltd.

Miharu Communications Inc.

Furukawa Electric Ecotec Co., Ltd.

Furukawa-Sky Aluminum Corporation

Riken Electric Wire Co., Ltd.

Environmental
accounting

Companies marked with “ ” in the Environmental Accounting column implement environmental accounting.
*1 Furukawa Circuit Foil Co., Ltd. became the Copper Foil Division of the Metals Company of Furukawa Electric Co., Ltd. in October 2008.
*2 F-CO Co., Ltd. became the F-CO Products Department of the Energy and Industrial Products Division of Furukawa Electric Co., Ltd. in April 2009.
*3 Furukawa Electric Engineering Service Co., Ltd. merged with FI-Techno Co., Ltd. and became Furukawa Electric Advanced Engineering Service Co., Ltd. in April 2009.
*4 Furukawa Engineering & Construction Inc. was merged with Fuji Furukawa Engineering & Construction Co., Ltd. in October 2009.

17 Furukawa Electric Group CSR Report 2010

Environmental Management
Initiatives
for theEnvironment

The Furukawa Electric Group has developed a system of centralized control for Group-wide
environmental activities based on the Furukawa Electric Group Basic Environmental Policy.

Environmental Management Promotion Organization
The Furukawa Electric Group has established the Central
Committee for Environmental Management. This committee
formulates the environmental management targets for theentire Group and conducts quarterly follow-ups on the statusof implementation.
The Company adopted the life cycle assessment (LCA)
method as an initiative to “visualize the amount of CO2
emitted throughout the lifecycle of its products” from fiscal
2009. The Working Group for the Promotion of Environmental
Performance Indices was then newly established to develop
indices that measure the environmental contribution of
products across their entire lifecycle from raw material
procurement through manufacture to disposal. This working
group was reorganized as the Central Committee forEnvironmental Management, with plans to operate andmanage established index policies and guidelines. The
Company’s seven works and domestic affiliates participatingin consolidated environmental management have obtained

ISO 14001 certification. We are also promoting environmental
management and initiatives at our overseas affiliates as part of
the related activities undertaken by each business division.
Environmental management organization
President
Central Committee forEnvironmental Management
CSRO:Chairperson

Committee for Reductionof GHG Emissions

Committee for Development ofEnvironmentally Sound ProductsWorking Group for Reducing
GHG Emissions

Working Group for Promoting Sales ofEnvironmentally Sound Products

Safety and Environment Promotion Department, CSR Division
Environment Committeeof Works
Energy Conservation
Committee,
Waste Committee,
Chemical SubstanceCommittee,
etc. Expert Committees

Environment
Committees
of companies andbusiness divisions

Environmental Personnel Meeting
Transport Energy Reduction Committee
Committee for Green Product Management

Liaison Meeting for
Domestic andOverseas Group
Affiliates

Liaison Meeting for Consolidated
Environmental Management
Committee for Consolidated Environmental
and Green Product Management
Working Group for the Promotion ofEnvironmental Performance Indices

Environmental Education
In fiscal 2009, the Company held two ISO 14001-related
internal environmental auditor training sessions attended by
39 participants. In addition, 18 employees took part in FGMS*

training seminars.
* FGMS is the acronym for the Furukawa branding Green product Management System.

Environmental education program
Category of educational training

Content

New recruits

General employees

Mid-career
employees

Management

Training for new recruits

Education for new recruits (once a year, mandatory)

General environmental protection activities

EMS activities (as needed, mandatory)

Environmental Policy and purpose, goals and generalknowledge pertaining to the environment

ISO 14001-related education (two-day course) (twice ayear, voluntary)

Requirements of ISO standards, environmental regulations,procedures for internal environmental audits, various drills

One-day brush-up course (once a year, mandatory)

Trends in environmental regulations, various drills to brush
up auditing skills
Environmentally sound design

Environmental subjects (as needed, voluntary)

Environmental regulations
Control of chemical substances contained in products

Consolidated environmental management seminars

Seminars by experts on priority issues

ColumnParticipation in the Challenge 25 Campaign
Promoted by Japan’s Ministry of the Environment, Team Minus
6%, a national movement aimed at preventing global warming
was recast as the Challenge 25 Campaign. Furukawa Electric
re-launched its activities on April 1, 2010 under the revised
Challenge 25 name. Encouraged by the keywords “universal

practice,” the Company is proposing low CO2 emission lifestyles
both at home and in the office. Through such measures as theprovision of Challenge 25-related policy data, Furukawa Electric
is committed to further boosting its in-house campaign.

Furukawa Electric Group CSR Report 201018

Initiatives
for theEnvironment

Environmental Management

Initiating Biodiversity Measures
Participation in the Japan Business Initiative forConservation and Sustainable Use of Biodiversity (JBIB)Taking into consideration the tenth meeting of the Conferenceof the Parties (COP 10) held in Nagoya, Aichi Prefecture, in
October, 2010 represents a most important year during which
steps must be taken to review the level of achievement withrespect to targets adopted at COP 6 in April 2002, and todeliberate on the setting of new targets in the post 2010 era.
Furukawa Electric joined JBIB* as a network member from
July 2009. While engaging in research and the collation of
information relating to biodiversity activities, the Company’s
policy is to draw on the knowledge gained through its network
as well as trends following the conclusion of COP 10 toproactively address the issue of biodiversity conservation.
* JBIB, an organization comprised of Japan’s leading private companies, isdedicated to the promotion of activities that facilitate biodiversity conservation.
Engaged in joint research that takes into account international perspectives, JBIB
draws on the results of studies to initiate dialogue with other companies andstakeholders in an effort to ensure a genuine contribution. Totaling 34 members
as of May 2010, JBIB is attracting attention through its ability to ignite new
momentum in biodiversity conservation.

Seminars on Biodiversity Initiatives Held
To improve the skills of employees, a series of half-day
seminars on biodiversity were held in fiscal 2009. The seminar
was divided into two parts, beginning with an explanationon the basics of biodiversity by external experts followed bypresentations focusing on group sessions. Drawing mainly
from the EMS Office, a total of 24 employees from nineGroup companies attended. Introduced as a new theme togroup sessions, discussions were held on the relationshipbetween and the impact of the Group’s business activities on
biodiversity. Participants commented that they were aware of
biodiversity, but were unclear as to how and where it figures intheir individual company activities. Participation in the seminar
therefore served to highlight the importance of obtaining aproper understanding. The fruits of seminar discussions will beshared among as many employees as possible with plans toreflect relevant aspects in future business activities.

Furukawa Electric Group Technology
Exchange Meeting Held
Over a two-day period from June 11 to 12, 2009, theFurukawa Electric Group held its sixth Technology Exchange
meeting at the Company’s Yokohama Works. 198 Furukawa
Electric and 155 affiliated company employees attended. The
first day was taken up with several themes that transcend
the Group including the use of simulation testing, analyticaltechniques, innovative technologies designed to curtail CO2
emissions and the application of intellectual property rights,
which were discussed among small groups. Supplementing
the day’s activities, participants were asked to dismantle
commercially sold environmental products and to assess eachproduct from both the sales and development perspectives.
The second day focused more on the sharing of initiatives andinformation relating to the environment and energy utilizing
a seminar format. Each division and affiliated company
also conducted presentations as well as exhibitions. During
small group meetings, discussions among administrative
departments within the Group were lively, The two-day event
was also an excellent forum through which Group companies
and divisions were able to deepen exchange.

Brush-up seminar “Biodiversity Initiatives”

Furukawa Electric Group technology exchange meeting

19 Furukawa Electric Group CSR Report 2010

Material Flow
Initiatives
for theEnvironment

We purchase raw materials and chemical substances and use fuel and electricity energy as well as water
resources to provide our products and services while endeavoring to reduce their environmental impact.

Environmental Impact of the Furukawa Electric GroupINPUTOUTPUT
Waste

Raw materials
CopperAluminum
Iron
NickelChromium
Manganese
Magnesium
Other metals
Glass
Plastic

221,809 tons
231,023 tons
5,231 tons
965 tons
168 tons
1,446 tons
5,249 tons
9,119 tons
157 tons
30,873 tons

Energy(crude oil equivalent)

Total waste generated

56,543 tons

Gross energy input

Final waste disposal

504,464 kl

1,783 tons
Recycling amount 49,492 tons

Electricity(purchased electricity)

287,311 kl
Electricity (hydroelectric power)

38,256 kl
Electricity(solar power)
3 kl
City gas
47,335 kl
LPG
54,501 kl
Heavy fuel oil A
12,967 kl
Kerosene
17,150 kl
Light oil
570 klCO2
Furukawa
Electric’s sevenworks and 27
domestic
affiliated companies

Atmosphericemissions

860,000 tons of CO2
SOX
123 tons
NOX
736 tons
Soot
59 tons
Chemical
substances

Water
Tap waterIndustrial water
Groundwater

Volume emitted 156 tons
Volume transferred 279 tons

Chemical substances

1.03 million tons
23.45 million tons
3.49 million tons

Volume handled*56,324 tons

Wastewater

274.55million tons

* PRTR targeted substances

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,six branch offices, three branches and one sales office.
We promote power and resource saving measures at our head
office and branch offices, the Company’s non-production bases.
Examples of such power saving measures include turning off
lights in conference rooms not in use and adjusting air
conditioning to appropriate temperatures. In terms of resourcesaving measures, we promote activities such as sorting waste
and reusing resources such as photocopier paper and files.

OUTPUT
Amount of electric
power consumed

1,681 MWh
Amount of waterused

1,364 m3

Furukawa Electric’s
non-production
bases

Amount of paper
usedPhotocopier paper 21.0 tons
Newspaper
3.6 tons
Cardboard
0.4 tons

Volume of waste

17.8 tons

Furukawa Electric Group CSR Report 201020

Targets and Performance
Initiatives
for theEnvironment

The Furukawa Electric Group sets medium-term targets every three years and also develops annual plans forpromoting environmental protection efforts toward accomplishing the targets set out in these plans.

Furukawa Electric Group Annual Targets and Performance for Fiscal 2009
The Furukawa Electric Group promotes its environmental
protection activities by formulating Group-wide
Environmental Preservation Activity Targets for fiscal
2009 based on medium-term targets laid out in the2009 Medium-Term Plan for Environmental Preservation
Activities. It applies them to environmental management
systems at Furukawa Electric and affiliated companies.
Fiscal 2009 marked the final year of the Plan during
which steps were taken to consolidate activities. On a
non-consolidated basis, Furukawa Electric was unable tomeet its established targets for waste reduction and zero
emissions. From April 2010 the Company is redoublingits efforts to substantially reduce direct landfill disposal
through recycling. Similarly, the Company did not achieve

its greenhouse gas emission target due to the integrationof businesses within the Group. The target for reductionin specific energy consumption for transportation on theother hand was met. While in overall terms the Company
fell slightly short of its targets, every effort will bemade to bolster activities to achieve newly establishedmedium-term goals.
Affiliated companies did not quite reach their targets
for waste reduction but successfully achieved establishedbenchmarks for zero emissions and global warming
prevention. Chlorinated organic compounds are still usedat one company. Plans are place to totally eliminate its
use during fiscal 2010.

Furukawa Electric Annual Targets and Performance for Fiscal 2009
Activities
Waste reduction activities
Zero emission activities
Activities to prevent global warming

Chemical substance management activities

Green activities

Priority environmental preservation activity targets for fiscal 2009

Performance in fiscal 2009

75% reduction in the volume of outsourced waste disposal compared withfiscal 2004 level

67% reduction

RatingB

80% reduction in direct landfill disposal compared with fiscal 2004 level

67% reduction

B

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

21% reductionB

3% reduction in specific energy consumption for transportation compared withfiscal 2006 level

8% reduction

A+

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

45% reductionA+

60 general-purpose green products—expansion target at affiliatedcompanies: 552 products* (99.4%)
Expanded to two companies

B

Establishment of FGMS: regular audit for fiscal 2009

Audit scope: implemented at all eight works

A

Target for registration of environmentally sound products: 40

Target registration results: 36 of 40 (90%)

B

Environmental performance indices for main products

Implemented LCA evaluation for four main productsA

Performance in fiscal 2009

Rating

Improvement in environmental performance of products
Eco-design activities

Affiliated Group Company Annual Targets and Performance for Fiscal 2009
Activities

Priority environmental preservation activity targets for fiscal 2009

Waste reduction activities

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

48% reduction

B

Zero emission activities

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

61% reduction

A+

10% reduction in greenhouse gas emissions compared with fiscal 2000 level

18% reduction

A+

Specific energy consumption for transportation: ascertain current status

Status of specific energy consumption ascertained
at 18 of 24 companies

B

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

45% reductionA+

Complete elimination of the use of chlorinated organic compounds

Use at one company

B

100% procurement rate for 60 general purpose products

Achieved a 96.2% procurement rate for 52 items*
subject to green procurement

B

Establishment of FGMS

Implementation completed at 26 company and nine
supplier works

A

Improvement in environmental performance of products

e-Friendly mark registration of seven items

A

Activities to prevent global warming

Chemical substance management activities

Green activities

Eco-design activities

Evaluation ratings: A+:Greatly achieved A:Achieved B:Almost achieved ---:Unachieved* Scope and evaluation limited to 52 items due to alleged issues relating to recycled wastepaper.

21 Furukawa Electric Group CSR Report 2010

Medium-Term Targets of the Furukawa Electric Group
Steps have been taken to unify the Group’s targets
under the 2012 Medium-Term Plan for Environmental
Preservation Activities. While incorporating the additional
theme of biodiversity, the Group has consolidated indicesfor the existing activity themes of zero emission and waste

reduction. At the same time, a new recycling rate index has
been established. The Furukawa Electric Group is unified
in its commitment to achieving the targets of the MediumTerm Plan.

The Furukawa Electric Group’s 2012 Medium-Term and 2010 Targets
Activities
Waste reduction activities

2012 Medium-Term Plan for Environmental Preservation Activities

Environmental preservation activity targets for fiscal 2010

99% or more recycling rate

95% or more recycling rate

15% reduction in greenhouse gas emissions compared with fiscal 2000 level

13% reduction in greenhouse gas emissions compared with fiscal
2000 level

5% reduction in energy consumption compared with fiscal 2007 level

3% reduction in energy consumption compared with fiscal 2007 level

1% reductions in specific energy consumption for production andtransportation

1% reductions in specific energy consumption for production andtransportation
4% reduction in specific energy consumption for transportationcompared with fiscal 2006 level(Applicable to Furukawa Electric only. 1% reduction compared withfiscal 2009 level for the Group)

Chemical substance management activities

Optimal management of the quantity of chemical substances consumed

36% reduction in emissions of volatile organic compounds comparedwith fiscal 2004 level

Green activities

Expansion of general purpose green products

60 general-purpose products—expansion target at Group
companies: 5

Eco-design activities

Increase in the development and sale of environmentally sound products
Improvement in product environmental performance indices and increase insales

Sales percentage of environmentally sound products: 20% or more
(Applicable to Furukawa Electric only)

Biodiversity preservation

Formulation of guidelines and establishments of systems

Formulation of the Furukawa Electric Group policy
Development of a Companywide activity system and formulation ofguidelines

Zero emission activities
Activities to prevent global warming

ColumnResponse to the Revised Energy Conservation Law
In estimating the CO2 emission equivalent of electricity
consumed, the Furukawa Electric Group has historically applied
a fixed emission factor value of 0.378kg CO2/ kWh. This is
the nationwide fiscal 2000 average coefficient for Japan’s 10
major utility companies. The rationale behind adopting a fixedvalue can be attributed to the difficulties involved in evaluating
the energy conservation effects of the Group’s activities. This
reflects the impact of changes in utility company emissions
factors when CO2 emissions are calculated using factors foreach utility company at each works.
However, with the revision to the Energy Conservation
Law, the Company has decided to apply the emission factorsof each utility company in line with the generally accepted
evaluation practice. In formulating the 2012 Medium-Term Plan,
we have reviewed CO2 emission going back to fiscal 2000
using individual utility company emission factors for each year.
On this basis, a 2012 Medium-Term Plan reduction target of
15% has been set compared with fiscal 2000 level.

CO2 emission
104 tons
CO2

120
90
70.8

60
30

68.8

67.7

65.1

60.3

64.2

27.6

31.6

30.5

30.1

28.9

28.1

0
2000

2005

2006

2007

2008

2009

Affiliatedcompanies
Furukawa
Electric(Fiscal year)

Notes:
1. The emission factors of each utility company have been used in the conversionof power consumption.
2. CO2 emissions attributable to hydroelectric power are identified as zero.
3. Group-wide hydroelectric power consumption totaled 148,700MWh in fiscal
2009 (12% of total power consumption).

Furukawa Electric Group CSR Report 201022

Environmentally Sound Products
Initiatives
for theEnvironment

The Furukawa Electric Group develops environmentally friendly products that help to reduce environmental impact
while promoting their increased use through the e-Friendly accreditation system.

e-Friendly Accreditation System
The criteria for an environmentally sound product is met
when it offers an overall improvement from an environmental
standpoint when compared with existing products andbased on predetermined standards at each stage , from thepurchasing of raw materials and components, manufacturing
and use to distribution and disposal.
The e-Friendly mark has been introduced to indicate thata product is environmentally sound. The mark is displayed on
external packaging and used as a sales promotional tool.
Targeting 40 or more items, Furukawa Electric registered
36 environmentally sound products on a non-consolidated
basis in fiscal 2009. This represented an achievement rateof 90%.
Turning to the Group as whole, 40 items were registered fora cumulative total of 56 items.
Plans are in place to adopt an easier-to-understand index
and to target an environmentally sound product to total sales
ratio of 20% or more in fiscal 2010.

Application and Registration ofEnvironmentally Sound Products
Following application and screening by the business division,
products that pass the screening conducted by the Committee
for Development of Environmentally Sound Products, a crossfunctional organization of the Furukawa Electric Group, areregistered as environmentally sound products.
Registration process for environmentally sound products
Business division
Application

Screening by the business division
Pass

Screening by the Committee for Development ofEnvironmentally Sound Products
Pass

Registration

Environmental Performance Index and LCA
The e-Friendly markCategory of Environmentally Sound
Products
The Furukawa Electric Group’s environmentally soundproducts belong to one of four categories described below.
Environmentally sound product categories
Category

Content

Prevention of global
warming

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

Zero emission

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

Elimination materials thathave an impact on theenvironment

Energy savings

Products that do not lead to an increase in the use of ozonedepletive substances during the manufacturing process, do notcontain harmful substances above regulatory limits and do not
generate harmful substances above these limits during use ordisposal.
Products that result in overall energy savings by such means as
reducing the use of raw materials and components as well as
scarce resources, featuring enhanced longevity, allowing easierproduct and component maintenance, and reducing the use forresources in packaging.

23 Furukawa Electric Group CSR Report 2010

Furukawa Electric took steps to apply environmental
performance indices to its products from fiscal 2009.
The environmental performance index quantifies productimprovement against a standard model and expresses
a product’s environmental contribution by comparing its
functional index (for example intensity etc.) and environmental
impact (including CO2 emissions) over its life cycle.
We will compile index guidelines and an evaluation systemfor 16 or more products for each business division in thecurrent fiscal year. In fiscal 2011, we will formulate proprietaryproduct category rules (PCRs), from the following fiscal year
and beyond. In addition to their use as a management index
and display on product catalogues, we will incorporate PCRs
into the next medium-term plan as well as R&D activities.
List of products subject to LCA in fiscal 2010
Company business division

Products subject to PCRs

Energy and Industrial Products Company• Green troughs • EFLEX• EFCELL • AT tapes

Telecommunications Company• Optical cables • Fusion splicers• Optical amplifiers • Optical delay devices• Optical connectors• Semiconductor laser modules• Optical network equipment

Electronics and Automotive Systems
Company• Enameled wires • TEX (insulated wires)• Heat pipes • Memory discs• Automotive terminal components

Metals Company• Copper foil products • Copper strip products

Environmentally Conscious Production
Initiatives
for theEnvironment

The Furukawa Electric Group is pursuing various environmental protection efforts to reduce theenvironmental impact of its production and distribution processes.

Reducing Greenhouse Gas Emissions

Green Procurement

Initiatives at Works

Increasing purchasing rates and expanding
efforts at affiliated companies

The majority of the Group’s greenhouse gas emissions consistof CO2 generated from electricity, fuel and other energy
sources. As emissions from manufacturing processes accountfor a large proportion, we work on reducing emissions byincreasing the efficiency of production processes, switchingfuels, replacing equipment with more efficient alternatives,
meticulously turning off lights when not in use, insulating hot
areas and other measures. Total Group GHG emissions cameto 860,000 tons of CO2 in fiscal 2009, a reduction of 19%
against fiscal 2000 levels. On a non-consolidated basis, weachieved an equivalent of 290,000 tons of CO2, a reduction of
21% compared to fiscal 2000.

The main components that go into the manufacture of theCompany’s products are purchased in accordance with the
Furukawa Electric Group Green Procurement Guidelines. In
this manner, steps are taken to ensure that components meetcertain predetermined requirements with respect to chemical
content. Furukawa Electric will systematically extend thisprocess to cover all components. Turning to office supplies
and related products, the number of items compliant with thecriteria for specified procurement stipulated under the Law
on Promoting Green Purchasing totaled 52 as of the end of
fiscal 2009. We will continue to expand the number of certified
items and extend activities to cover affiliated companies.

Greenhouse gas emission

Developing a green product management
system supply chain

104 tons
CO2

120
90
69.3

65.0

65.2

60

62.5

57.0 Affiliated57.3

companies

30
36.6

33.2

32.4

32.8

29.0 Furukawa

29.2

Electric

0
2000

2005

2006

2007

2008

2009

(Fiscal year)

Initiatives in Logistics
In fiscal 2009, total transportation volume for Group fell 5.6%
year on year to 442 million ton-kilometers. Of this total, Furukawa
Electric accounts for 135 million ton-kilometers. While thisis 7% higher than the fiscal 2008 level, the Company held theincrease in CO2 emission to 2.5% due largely to enhancements inloading rates. In addition, Furukawa Electric achieved a reductionof 8% in specific consumption (denominator: ton-kilometers)from fiscal 2006. We will continue to promote a modal shift,increase loading rates and promote joint deliveries to reducetransportation energy consumption.
Modal shift and specific consumption (Furukawa Electric only)
(%)

12.0

MJ/tonkilometers

1.897

1.9
1.869

9.0

1.833

6.0

10.7

9.9

1.742

8.5
3.0

Rate ofmodal shift

1.8

Specific
consumption

1.7

3.6
0

0
2006

2007

2008

2009

(Fiscal year)

The Furukawa Electric Group strives to collect information
on environmental regulatory requirements in a timely manner.
At the same time, the Group is working to establish a green
product management system for Furukawa Electric brandproducts and to improve activities prerequisite to plant as wellas principal supply chain management including procurement
oversight, the prevention of pollution attributable to processes
and the control of loss during shipment. All 12 eligible plants
renewed their qualifications as green partners in fiscal 2009
under Sony Corporation’s environmentally friendly system
and material procurement campaign. Moreover, we conduct
regular audits from a sampling of eight plants, 26 affiliatedcompany and nine supplier plants.

Adopting a Green Product Management System
The Fitel Products Division of Furukawa Electric’s
Telecommunications Company has adopted a green
product management system in order to comply with EURoHS directives and REACH regulations and to better
secure a supply chain that remains conducive to the smoothdissemination of chemical substance information in tune withchanges to regulatory requirements.
In employing this system together with the Company’s
assessment sheet, which corresponds to JAMP*1 and JGPSSI*2
information distribution specifications and standards, Furukawa
Electric is efficiently managing the collection of information andhistorical records. We are selecting products that comply withregulations at the early stages of design and endeavoring toenhance product environmental risk management.
*1 Joint Article Management Promotion consortium*2 Japan Green Procurement Survey Standardization Initiative

Furukawa Electric Group CSR Report 201024

Initiatives
for theEnvironment

Environmentally Conscious Production

Green product management system

Direct landfill disposal(Tons)

5,000
AIS
research request

Furukawa Electric: Green product management system

MSDSplus
research request(Components)
Content
management(Products)
Collation

In-house products
Chemical substances(DB)

JGPSSI
submission

Customers

Suppliers

Response

AIS
submission

Response

4,000
3,000

4,121

2,000

504

0
2004

Zero Emission Activities

3,113

2,254

1,000

176
2005

2,124

177
2006

1,847

271
2007

1,619 Affiliatedcompanies
Furukawa

164 Electric

258
2008

2009

(Fiscal year)

Reducing Waste Disposal Costs

The Furukawa Electric Group began taking action to reduce
outsourced waste disposal in 1993, and launched zero
emission efforts in 2001 for reducing the volume of final
disposal to less than 1% of the total volume of waste bydirectly transporting waste from each works to final disposalsites. As a result of our efforts to meticulously sort waste
and recycle waste acid and sludge into useful resources, theoverall level of outsourced waste disposal for the Group forfiscal 2009 fell by 53% compared with fiscal 2004 to 7,005
tons. Furukawa Electric achieved an equivalent reduction of
67% on a standalone basis and our affiliated companies a
reduction of 48% (both compared with fiscal 2004 levels).
The overall level of direct landfill disposal for the Group also
fell by 61.4% compared with fiscal 2004 to 1,783 tons.
Furukawa Electric achieved an equivalent reduction of 67% on
a standalone basis and our affiliated companies a reduction of
61% (both compared with fiscal 2004 levels).

In fiscal 2001, spending on landfill and intermediate disposal
cost more than 300 million yen. Since then, we have promoted
reuse, reduced the levels of waste and carefully sorted waste
to generate value from it. As a result, the Company maintained
positive benefits from 120 million yen to around 250 million yen
between fiscal 2006 and 2008 on the back of soaring copper
prices. In fiscal 2009, however, we incurred a negative impactof 29 million yen due to the decline in copper prices, recycling
market saturation and other factors.
Trends in waste disposal costs(Million yen)

300

249

249

200
124
100
43
0
-29
-100

-75
2004

2005

2006

2007

2008

2009

(Fiscal year)

Outsourced waste disposal

Introduction of the Electronic Manifest System(Tons)

Furukawa Electric has also introduced the electronic manifest
system. We commenced operations at our Hiratsuka and
Mie Works in April 2008. Operations began at Nikko Worksin February 2009, followed by Chiba Works in July 2009. In
2009, the annual rate of usage of the electronic manifest for
all companies was 64.5% (total manifest transactions: 3,616;
electronic manifest transactions: 2,332). We intend to focus
on expanding its use to all our works in the future.

15,00010,00010,997
8,705

8,600

9,041

7,824

5,000

5,753 Affiliatedcompanies

3,816

2,119

1,839

1,552

1,160

0
2004

2005

2006

2007

1,252 Furukawa
Electric

2008

2009

Electronic manifest transactions and transaction ratios(Transactions)

(%)

4,000

75

64.5

(Fiscal year)

3,000

52.4

2,000

1,897

50

2,332

25
1,000
0

0
2008

25 Furukawa Electric Group CSR Report 2010

2009

(Fiscal year)

Chemical Substance Management
Initiatives
for theEnvironment

The Furukawa Electric Group promotes efforts to appropriately manage and reduce the use ofharmful chemical substances.

Activities for Reducing Emission of Volatile
Organic Compounds

Chemical Substance Management
The Furukawa Electric Group promotes efforts to reduce theuse of harmful chemical substances. In particular, we makeevery effort to actively reduce emissions of volatile organic
compounds, which are regarded as one of the causes ofphotochemical smog. Furukawa Electric’s emissions havefallen 45% compared to levels in fiscal 2004. Three of thefour affiliated companies that were using organic chlorinecompounds completely phased out their use during fiscal 2008.
Emissions of volatile organic compounds

Although Furukawa Electric does not currently own any facilities
that fall under regulations set out in accordance with the Air
Pollution Control Law, we are nonetheless working to reduce
emissions. The main types of volatile organic compounds (VOC)
that we handle are toluene and isopropyl alcohol (IPA). We
switched from toluene to a hydrocarbon-based detergent in the
degreasing of copper strips and installed recovery apparatus for
IPA, which is used to reduce copper wire when it comes out of
the melting furnace, in efforts to achieve reductions. Moreover,
we are considering process improvement to further reduce
emissions.

(Tons)

400
300

Column

327

310

253

252

203

200

Developing analytical techniques that lead tofurther advancements in eco wires

170

100
0
2004

2005

2006

2007

2008

2009

(Fiscal year)

Appropriate Management of Chemical
Substances
At Furukawa Electric, we confirm the properties and applicablelaws and regulations regarding all chemical substances we
use during the manufacturing process on their Material Safety
Data Sheets and administrate them. We also monitor thevolumes of each substance used and report the relevant
details in accordance with the PRTR Law*.
* Law Concerning Reporting, Etc. of Releases to the Environment of Specific Chemical
Substances and Promoting Improvements in Their Management

List of PRTR substances (Furukawa Electric only)(Unit: ton)

Substance
No.

Substance

Volume handled

Volumereleased

1
31
53
80
82
86
88
144
232
272
300
304
305
308
309
332
333
349
355
374

Zinc and its compounds
Antimony and its compounds
Ethylbenzene
XyleneSilver and its water-soluble compounds
CresolHexavalent chromium compounds
Inorganic cyanide compounds
N,N-dimethylformamide
Copper salts (water-soluble)
TolueneLead
Lead compounds
NickelNickel compounds
Arsenic and its inorganic compounds
Hydrazine
PhenolBis (2-ethylhexyl) phthalate
Hydrogen fluoride and its water-solublecompounds
Boron compounds
Molybdenum and its compounds

7.7
6.4
6.7
17.7
2.4
177.1
9.9
4.7
53.3
15,913.7
246.2
1.5
3.7
2.2
22.9
1.2
10.6
121.7
3.8
2.2

0.1
0.0
0.0
8.0
0.0
0.0
0.0
0.0
0.0
0.4
86.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
0.0

0.7
0.5
0.0
0.9
0.0
0.0
7.8
0.0
0.0
39.8
52.1
0.0
0.1
0.0
1.2
0.1
0.0
0.1
0.2
2.2

0.0
0.0
6.7
8.6
0.0
176.7
2.1
4.7
52.9
5.2
106.4
0.1
0.0
2.2
5.8
0.0
10.6
121.4
0.0
0.0

3.7
1.1

0.8
0.0

0.1
0.2

0.0
0.0

16,620.4

96.3

106.0

503.4

405
453

Total

VolumeVolumetransferred neutralized

Furukawa Electric sells such environmentally soundproducts as ECOACEPLUS, an eco wire that does notuse either harmful heavy metals or halogen as sheathingmaterials. At each lifecycle stage, from receipt of raw
materials to product shipment, high levels of management
are required in product inspection to avoid quality
deficiencies attributable to harmful element contamination.
While nondestructive fluorescent X-ray (XRF) inspection
methods are employed, standard sampling of similarlycomposed products is critical to ensuring accurate
measurements. We have already developed proprietary
standard sampling techniques for such heavy metals as
lead, cadmium and hexavalent chromium and halogens
including chlorine and bromine, substances prohibited
under RoHS directives.
Moving forward, we established standard samplingtechniques for heavy metals that could shortly be expected
to fall within the scope of regulation. These included
arsenic, bismuth, selenium and antimony. Through thesemeans, we have implemented systems for the managementof harmful substances that extend beyond the scope ofcurrent regulation. Looking ahead, we will engage in strict
eco wire quality management and inspection to ensure
higher levels of product safety and reliability.

ECOACEPLUS ®

Furukawa Electric Group CSR Report 201026

Environmental Risk Management
Initiatives
for theEnvironment

The Furukawa Electric Group recognizes the environmental risks associated with its business
operations and therefore develops and implements countermeasures for each risk.

PCB Management

Preventing Soil and
Groundwater Pollution
The Furukawa Electric Group conducts strong risk
management recognizing that soil and groundwater pollution
are vital health and safety concerns for local residents andemployees. We take prompt action upon the discovery of any
soil or groundwater pollution. Every effort is made to secure
the health and safety of local residents. We report to local
authorities on the status of any pollution and actions to prevent
its spread, and we release information to local residents,
related organizations and the media as necessary. We
implement a range of actions to protect the local environment
from soil or groundwater pollution, including regularly
inspecting for leakages of specific harmful substances,preventing leakages and using alternative substances.
In fiscal 2009, we conducted remedial work on land we own
in the Yokohama area, developed a slag treatment plan for the
Oyama area (a plant site of the former Furukawa Magnesium Co.,
Ltd.) and undertook an examination of slag deposit volume andground pollution. Having confirmed the presence of groundwaterin excess of standards at a portion of the site, work is being
undertaken to prevent its spread. Running parallel with this work,
we are pursuing the appropriate treatment of slag together withsoil remedial work. Turning to affiliated companies, soil remedial
work for removing Kyowa Electric Wire’s former Osaka Plant
from the list of contaminated areas under the Soil Contamination
Countermeasures Law and at the Ibaraki Plant owned by
Aoyama Kinsho Co., Ltd. has been completed.

Effort to Prevent Atmospheric andWastewater Pollution
Every Furukawa Electric works maintains voluntary control
limits and manages operations to avoid exceeding regulatory
limits for atmospheric and wastewater quality.
Atmospheric and wastewater quality data was all managed
within regulatory limits at each works in fiscal 2009.
* See our website for detailed data for the Chiba, Nikko, Mie works as well as the
Copper Tube and Copper Foil divisions.

Management status at works
Measured
item

Chiba
Works

Atmospheric NOx,SOx,
data
dust
pH,BOD,n-h
Wastewater (mineral oil)
quality dataSS

27 Furukawa Electric Group CSR Report 2010

: within regulatory limits

Nikko
Works

Mie
Works

Copper Copper
Tube Div. Foil Div.

The number of instruments containing PCB is monitored ateach affiliated company to facilitate effective storage andmanagement operations. Steps are being taken to pursue
early registration with the Japan Environmental Safety
Corporation and the commissioning of PCB waste processing
on an ongoing basis in accordance with plans.
Condensers and transformers removed from our facilities
are examined for PCB content on a case-by-case basis.
As was the case in the previous fiscal year, the numberof instruments containing PCB under storage was also
confirmed in fiscal 2009. Regulatory authorities were notified
and appropriate storage established.
Number of instruments containing PCB
Works

In storage

In useTotal

Already processed

88

0

88

Unprocessed

15

23

38

Nikko Works

385

12

397

Hiratsuka Works

883

10

893

Mie Works

131

3

134

Copper Tube Division

65

0

65

Yokohama Works

22

0

22

Copper Foil Division

16

2

18

1,605

50

1,655

Chiba Works

Total

Response to Asbestos Concerns
Use of Asbestos in Products
Although we no longer manufacture or import products
containing asbestos, we have previously done so for industrialuse. Relevant products include electric wires for use on ships
and fire prevention products for electric wire installation fortelecommunications and electricity.

Use of Asbestos in Buildings and Plant Facilities
Plants and buildings
A fiscal 2005 investigation to ascertain the extent to whichasbestos spray materials discovered in Company-owned
properties may have dispersed confirmed that asbestos
was stable. Given the risk of future dispersal, we removed
or contained the materials at plant buildings in fiscal 2006.
Investigation is ongoing at one tenanted building. As old
tenants vacate and new tenants enter the building, work is
being undertaken to remove asbestos materials.
Facilities and equipment
Insofar as possible, asbestos subject to dispersal has
been replaced with viable alternatives. Where asbestos is
not dispersed, we will later install non-asbestos containing
materials during scheduled inspections.

Environmental Accounting
Initiatives
for theEnvironment

The Furukawa Electric Group has introduced environmental accounting to gain a quantitative
understanding of costs and proceed efficiently and effectively in its environmental activities.

Environmental Accounting
We have compiled tables outlining our environmental
conservation costs, economic benefits associated withenvironmental conservation activities and environmental
conservation benefit (material benefit).
Furukawa Electric’s environmental conservation costs forfiscal 2009 came to about 3.4 billion yen in expenses. Investment
totaled around 1.1 billion yen of which more than 0.8 billion yen
was largely allocated to such environmental pollution control

measures as the renewal of dust collectors at Mie works. Taking
into account contributions to the reduction of energy costs, theeconomic benefit was around 1,960 million yen.
Environmental conservation costs for our affiliated companies
came to 4.9 billion yen in expenses and about 900 million yen in
investment. The economic benefit was approximately 4.4 billion
yen due to cutbacks in energy costs.

Environmental conservation costs(Unit: million yen)

Category

Key activity and the outcome

Total costs
Furukawa Electric (Year on year)

Affiliated companies

1,382 (47)2,030Pollution 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 sound products, research into
alternatives for harmful substances
Tree planting, local community cleaning activities, donations, etc.
Environmental impact assessments, cleanup of polluted soil, etc.

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

Total

696 (59)

1,638

393 (−22)598

824 (−396)620

4 (−33)130 (53)425

3,429 (−292)

4,915

Note: 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 total of 14 companies.Year-on-year comparative data has not been provided due to changes in the scope of affiliated companies.

Environmental conservation benefit
Reduction
Furukawa
AffiliatedElectric
companies

Economic benefit associated with environmental
conservation activities(Unit: million yen)

Emissions causing environmental
impact

Unit

Volume of industrial waste disposal
processed*1

tons

−98

1,666

Energy consumption (crude oil
equivalent)

1,000 kl

680

Water consumption

1,000 tons

9,722

1,122

tons

33

48

* Minus figures indicate an increase

1,000 tons-CO22

3

Investment and research costs

Emissions of volatile organic chemicalcompounds
CO2 emissions
SOx emissions

tons

−30

65

NOx emissions

tons

−19

2

Soot emissions

tons

5

78

Total benefit
Furukawa
AffiliatedElectric
companies

Details of benefits
Revenue from recycling
Reduction in waste disposal costs
Reduction in energy costs
Reduction in water purchase costs

Total

Environmental conservation costs

Economic benefit(Million yen)

6,000

2,000

5,000

1,600

4
1,184

3,000

89
1,102

2,000

403
511

428
667

1,401

1,515

1,000

130

1,260

1,618

4,000

77
37
1,219

514
3
1,091

4
824
393
696

415
637

454
567

1,382

1,335

1,127

Environmental
remediation cost

1,200

Social activity cost
Research anddevelopment cost
Administration cost
Upstream/
downstream cost

800
400

Business area cost

-400

0

0

1,964

4,462

(Unit: million yen)

Environment-related investment
Total investment
Total research costs(Million yen)

568
175
3,721
−2

Total costs
Furukawa
AffiliatedElectric
companies

Investment and research costs*1 Excluding recycled waste*2 Minus figures indicate an increase

217
0
1,715
33

1,098
6,753
9,457

1,965

2006

2007

2008

2009

(Fiscal year)

Total revenue andexpenditure

1,715

Reduction in energy
costs

448

317
228
61 30

338
41 -1

-2

25

349
-3

440

19 66 6217
0Reduction in water
purchase costs

33 Reduction in waste-13

disposal costs

-393

-352

-712

Revenue from recycling

-800
2005

892
6,079
3,454

2005

2006

2007

2008

2009

(Fiscal year)

Furukawa Electric Group CSR Report 201028