Feature

Initiatives forPreventing Global
Warming
Clearly recognizing the need for a low-carbon society and acknowledging the importanceof responding to this need through a group-wide effort, the Furukawa Electric Group istaking action to prevent global warming throughout the entire lifecycle of its products,
including production and logistics, toward the creation of a genuinely successful andsustainable society. In fiscal 2009, we will include initiatives for preventing global
warming in our medium- and long-term plans and reinforce additional efforts in the fourareas of production, products and services, logistics and non-production activities.

7 Furukawa Electric Group CSR Report 2009

Furukawa Electric Group in a united effort
to prevent global warmingPolicies• Reducing greenhouse gases• Promoting energy savings• Switching fuels and using clean energy sources• Reducing transportation energy consumption

Initiatives
Product DevelopmentProduction

Logistics• Development of• Converting to• Implementing

environmentallyfriendly products• Hydroelectric power• Recycling system of
Furukawa ElectricEcotec

energy saving
facilities• Switching fuels

modal shift• Improvingloading rates

Furukawa Electric Group CSR Report 20098Feature: Initiatives for Preventing Global Warming

Product Development Initiatives

We are Aggressively Developing Products thatReduce Greenhouse Gases
The Furukawa Electric Group is pursuing the development
and popularization of environmentally-friendly products infour areas: prevention of global warming; zero emissions;elimination of substances that harm the environment, andenergy saving. We renewed our environmental mark in fiscal
2008 to deploy the “e-Friendly” mark throughout the Group.

Four Areas for Developing and Popularizing Environmentally-Friendly Products

Prevention ofglobal warming

Energy saving

Zero emissions

Elimination ofsubstances that
harm theenvironment

Major environmentally-friendly products related to these four areas• MCPET • Lead batteries for automobiles • Green trough• Environmentally-friendly wires and cables • Easy-to-dissemble optical fiber cables

Environmentally-Friendly Products

World’s top-class light reflexivity for saving energy
MCPET® (Microcellular reflective sheet)

Delivering the world’s top-class light reflexivity
with microcellular foaming technology
MCPET is a microcellular foamed sheet of PET resin with airbubbles smaller than 10 µm. Due to this structure, MCPETboasts the world’s top light reflexive performance. It has arelative reflexivity of 99% and is used as backlight for LCD
and reflective sheets for such uses as convenience storesigns. Applications have recently expanded to include lighting
equipment such as LED downlights.

Reduction in ﬂuorescent lamps by corporate
customers that have adopted MCPET (Our research)

Reduced byan average of50

Before%After

A Word from Sales

We hope to make MCPET an even more satisfying productfor our customers by standardizing its energy saving method
so that the benefits of economizing on energy are easily
understood by customers and by seeking to balance flame
resistance and processability. We are also planning toship MCPET as an end-product inaddition to supplying it as a material.

Applications

Koji Katsura
Foamed Products Division
Industrial Product Division
Energy and Industrial Products Company

9 Furukawa Electric Group CSR Report 2009

Illuminated signboard type 1

Illuminated signboard type 2

Environmentally-Friendly Products

Improving automobile mileage with high-performance batteries
Commercial lead batteries for automobiles (The Furukawa Battery Co., Ltd.)Eco battery reduces CO2 emissions and saves energy
Many of the latest fuel-efficient cars carry charge control
systems for lowering fuel consumption. This is enabled bycomputerized control of the alternator to reduce burden on
the engine when the car battery is charged to a certain level.
While this system effectively lowers fuel consumption, therepeated charging and discharging of the battery requires highcharge acceptance for efficient charging over short periods oftime. Through improvements such as optimizing the designof negative and positive plates as well as the ratio of active
A Word from one of our Engineers

Reducing battery weight significantly contributes to boosting
automobile mileage, and in turn reduces CO2 emissions byapproximately 3%. We will seek to further reduce battery
weight while enhancing
performance factors, such as
charge acceptance.

Takashi Mizuno
Technical Service Section
Technical Department
The Furukawa Battery Co., Ltd.

materials, we were able to improve charge acceptance by
15% over conventional products. We are also pursuinggreen procurement with consideration to the environment by
developing a car battery recycling systemthat uses recycled material for the package,lead and battery case, making the FB(FURUKAWA BATTERY) an environmentallyfriendly battery from several perspectives.
Our flagship model that reduces fluid loss to guarantee nonrehydration through our newly developed double-lid structure.

Comparison with conventional products
Chargeacceptanceup by approx.

15%

Weightdown by approx.

2%

Longevity
up by approx.

1.2times

Increases automobile mileage andenergy savings
Data from The Furukawa Battery;compared with its own conventional products

Our Exhibit at Eco-Products 2008
The Furukawa Electric Group exhibited at Eco-Products 2008,
held from December 11 to 13, 2008, at Tokyo Big Sight.
At our booth, we introduced our initiatives for promoting
environmentally-friendly products and the new “e-Friendly”
mark. We also showcased our own related products aswell as a series of products manufactured with a recycling
technology for used wires and cables.
We also showcased the Furukawa Electric Group’s
environmental initiatives
and highlighted thefact that over 90% of
the energy used by theGroup is generated byhydroelectric powerfrom Furukawa Nikko
Power GenerationInc., accounting for aFurukawa Electric booth

112,000-ton reduction in annual CO2 emissions.
In addition, we drew attention to our participation in theLake Toya Summit in Hokkaido, where we exhibited oursuperconducting cable, expected to achieve energy savingsof 3,120 GWh and reduce CO2 emissions by 1,060,000 tons
per year after it replaces the existing 4,000-kilometer cable
network. We were able to share the Furukawa Electric Group’s
environmental initiatives with many visitors.
Overview of Eco-Products 2008
Dates: December 11 to 13, 2008

Venue: Tokyo Big Sight

This was the tenth Eco-Products exhibition, one of Japan’slargest environmental trade shows. Reflecting strong interest in
the environment over recent years, many companies took part in
the event, which was deemed a great success and drew 173,917
visitors over the three-day period including businesspersons,students and the general public.

Furukawa Electric Group CSR Report 200910

Feature: Initiatives for Preventing Global Warming

Initiatives in Production

We are Working to Utilize Renewable Energy
in Addition to Improving Our Production
Facilities and Manufacturing Processes
Furukawa Electric has pursued activities for reducing CO2emissions under our 2009 Mid-Term Plan for Environmental
Preservation Activities. To further strengthen these efforts
in fiscal 2008, we set up a CO2 Emissions Reduction
Committee chaired by the Chief Social Responsibility

Officer and comprising Company Presidents and heads ofthe works along with other members to further reduce CO2emissions.
The Furukawa Electric Group is also focusing on utilizing
renewable energy sources.

Priorities for Preventing Global Warming Associated with Production Operations for Fiscal 2008

Efficient useof energy

Renewableenergy sources

Creation ofgroundbreaking
plan forreducing CO2emissions

Switching fuelMajor Initiatives in Fiscal 2008Fuel conversion at the Chiba Works

Concentration of the cable manufacturing process

The use of electricity at Chiba Works accounts for 70% of thelocation’s CO2 emissions, whereas the consumption of fossil
fuels such as gas and oil account for 30%. While electricity is
procured through an electric power company and thus CO2
emissions cannot be directly reduced, fossil fuel consumption
can be reduced by converting to fuels that release less CO2
during combustion. We have been systematically working onfuel conversion since 2008. Specifically, we are laying a main
2,000-meter pipeline inside the Works to convert from LPG,
heavy fuel oil A and kerosene to city gas. We completed theconversion to city gas for the LPG-based copper melting
furnace in 2008 and plan to change fuel sources for boilers
currently burning heavy fuel oil A in 2009 and to replace theuse of kerosene over the coming years. We reduced CO2
emissions by approximately 2% in 2008 through an upgrade
to energy-saving combustion burners and boilers and intend
to achieve our goal of reduction by another 2% in 2009.

Domestic demand for optical fiber cables is expected toremain stagnant for some time, and we have been looking
into a number of activities for increasing profit at a lower levelof operations. After recognizing that improving the production
processes within each work would not lead to significant
results, we decided to pursue full-scale improvement incapacity utilization by integrating and reorganizing production
across several sites. At the same time, we factored inenvironmental considerations such as reduced CO2 emissions
and achieved considerable decreases in utility costs, such as
for air conditioning and lighting, which had been generated asa fixed cost from each site. As a result, we reduced electricity
use by 5,231 MWh per year and LPG by 151 tons per year,
roughly equivalent to 2,179 t-CO2 per year in CO2 emissions.
While these efforts have achieved some success in reducing
CO2 emissions, a priority issue for the global environment, weintend to continue making further reductions.

Laying a 2,000-meter city gas pipeline for switching fuelTape slot-type optical fiber cable

11 Furukawa Electric Group CSR Report 2009

Feature: Initiatives for Preventing Global WarmingInitiatives in Logistics

Constructing an Efficient Logistics System

In our logistics activities, we set up a Transport Energy
Reduction Committee in 2007, chaired by the Chief Social
Responsibility Officer. Responsible employees at affiliate
Furukawa Logistics Corporation and each work have led
the effort to promote a modal shift and enhance loading

rates (transport energy reduction activities). In the latter
half of fiscal 2008, Nikko Works began round-trip transport
between Utsunomiya and Osaka using 31-foot containers
in cooperation with Sumitomo Electric Industries, Ltd.,
thereby reducing CO2 emissions.

Priorities for Preventing Global Warming Related to Logistics for Fiscal 2008

Modal shift

Eco-driving

Reducedtransportdistance

Improvedloading rates

Major Initiatives in Fiscal 2008
Eco-driving seminars in eastern and western Japan

Logistics Environmental Conservation Award

Training sessions on energy saving driving, or eco-driving
seminars, were held for drivers of partner transportationcompanies at the Shiga Branch, Oyama Branch and Oyama
Center of Furukawa Logistics. We intend to continue oursupport for energy
saving driving,which is friendly tothe environment andalso encouragessafe driving.
(Cooperation: HinoMotors, Ltd.)Our Nikko-Osaka 31-foot Container Round-trip Transportation
project, launched in cooperation with Sumitomo ElectricIndustries, Ltd. in October 2008, was a joint recipient ofthe Logistics Environmental Conservation Award from theJapan Federation of Freight Industries along with the Modal
Shift Solution Team (members: Japan Electric Wire & Cable
Makers’ Association, Japan Freight Railway Company, Gotsu
Co., Ltd., Tobu Transportation Co., Ltd., Sumitomo ElectricIndustries, Ltd., SEI Loginet Co., Ltd., Furukawa Electric,
Furukawa Logistics). This award was one of several presented
at the 10th Logistics Environment Award. In this project, truck
transportation operated separately by the two companies wasreplaced by round-trip rail transport and the shared use of two
freight containers. Furukawa Electric transports its cargo from
Utsunomiya to Osaka, and Sumitomo Electric uses the same
container for the return trip. This was the first case in theindustry of a joint modal shift undertaken between companies
in the same industry, and the two companies won recognition
for the project’s impact, reducing annual CO2 emissions byapproximately 242 tons.

Practical skills training for eco-driving

Promotion of modal shift
In our effort to promote a modal shift for cargo shipped fromthe Nikko area to customers in the Shikoku area, we are
striving to reduce CO2 emission as much as possible on adaily basis by choosing transportation by truck and by 5-ton
JR freight containers
depending on themonthly volume ofcargo.

Loading cargo into a container

Round-trip transportation between Nikko and Osaka using 31-foot containers

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