FURUKAWA ELECTRIC

CORPORATE PHILOSOPHY
Drawing on more than a century of expertise in the development and fabrication of advanced materials, we will contribute to the realization of a sustainable society through continuous technological innovation.
MANAGEMENT PHILOSOPHY
With an eye to the future, we at the Furukawa Electric Group pledge to: • Live up to the expectations and trust invested in us by society, with fairness and integrity. • Apply the sum total of our expertise to satisfy our customers and grow with them. • Continuously strive to achieve world-class technological innovation, and transform ourselves in every area of endeavor. • Nurture human resources at every level, so that we can become a more diverse and creative organization.
The Furukawa Electric Group Credo
1. Maintain high ethical standards, and value honesty and integrity above all. 2. Continually improve, innovate, and lead, in every area of endeavor. 3. Take a hands-on approach that addresses the reality of every situation—in the office, at the factory, and on site. 4. Be proactive—take the initiative and work with others, persevering until a solution is found. 5. Maintain open channels of communication between departments and divisions, so that we can share ideals and help each other grow.
Furukawa Electric Group Action Guidelines
The officials and employees of the Furukawa Electric Group will perform their duties in accordance with the following action guidelines. We, the Company officials and employees of the Furukawa Electric Group, will: 1. Fully recognize the responsibilities of the Furukawa Electric Group to society and strive to maintain and improve on solid, friendly relationships with all of our stakeholders and contribute to the sustainable development of society through corporate, environmental and social activities. 2. Aim to create a company that is useful to society by developing products designed to aid the development of society and by providing reliable products and services. 3. Comply with domestic and international laws and regulations and act in accordance with internal regulations and other rules such as social norms and ethics. 4. Properly display and adequately disclose financial statements and other corporate information. 5. Deal with antisocial groups in a resolute manner. 6. Strive to act with consideration for the protection of the global environment. 7. Respect human rights, cultures and traditions as a member of the international community. 8. Create a company whose employees feel motivated, comfortable and fulfilled. 9. Continuously strive to undertake social contribution activities based around the core aims of nurturing future generations, promoting sport and culture and living in harmony with local communities, as well as business-related activities, in order to maintain and strengthen community ties built up over centuries and create a better tomorrow for future generations.
Following organizational reforms in February 2007, the Furukawa Electric Group established a CSR Division to step up its CSR management activities. We consequently changed the name of the publication titled, "Environmental and Social Report," in 2007 to "CSR Report," and we have expanded the range of information covered by the report to include both social and financial aspects. This 2009 report features initiatives the Furukawa Electric Group is pursuing to prevent global warming, the most pressing task in achieving a genuinely successful and sustainable society.
Scope of this Report
• Organizations Covered This report covers Furukawa Electric Co., Ltd. and all members of the Furukawa Electric Group, including affiliated companies.
• Scope of Themes Covered
This report covers Furukawa Electric Co., Ltd. and its 107 consolidated subsidiaries. Exceptions to the scope of the data collected have been clearly stated.
• Period Covered
From April 1, 2008 to March 31, 2009 Includes selected information on past initiatives and activities during fiscal 2009.
• Source Guideline
Environmental Reporting Guidelines (fiscal 2007 version) published by the Ministry of the Environment
• Website
http://furukawa.co.jp/english/csr/ ...
Inquiries
Administration Department, CSR Division Furukawa Electric Co., Ltd. TEL: +81-3-3286-3044   FAX: +81-3-3286-3920 ...
Contents
1 Furukawa Electric Group Philosophy / Editorial Policy 3 5 Furukawa Electric Group Overview Messages from Management 7
Feature
Initiatives for Preventing
Global Warming
9 Product Development Initiatives 11 12 Initiatives in Production Initiatives in Logistics
Management
13 13 14 Corporate Governance CSR Management
Initiatives for the Environment
16 17 Basic Environmental Policy Environmental Management Material Flow 18 19 20 21 Targets and Performance Activities for Promoting Environmentally-Friendly Products 22 24 25 Chemical Substance Management Environmental Risk Management 26 Environmental Accounting
Initiatives for Society
28 Relationship with our Customers Relations with our Shareholders and Investors 30 Relations with our Suppliers 31 35 Relations with our Employees Involvement with Society and Local Communities 39 Initiatives at Overseas Group Companies 41 Third-Party Opinion 42 History of Furukawa Electric's CSR Activities Environmentally Conscious Production Activities 27 29

Furukawa Electric Group Profile
Sales 1,032.8 billion yen (Consolidated, fiscal year 2008) Number of employees 37,427 (as of March 31, 2009) Number of companies 123 (107 subsidiaries and 16 affiliates accounted for using the equity method)
Results (Consolidated)
Main Business Segments
Three Core Materials Business Segments Main Customers • Communications • Communication equipment • Can manufacturing • Shipbuilding • Aircraft • Electrical machinery
Furukawa Electric Group Corporate Profile

Strengthening compliance and enhancing corporate value Masao Yoshida President A firm commitment to compliance The Furukawa Electric Group celebrated its 125th anniversary this year. Our philosophy of living up to the expectation and trust invested in us by society, with fairness and integrity, as declared in the Furukawa Electric Group Philosophy formulated in August 2007, has represented the backbone of the Group for well over a century. Yet despite this legacy, a regrettable series of compliance violations occurred over the course of the previous fiscal year, including the cancellation of our JIS mark certification for wrought copper products at Osaka Works, a cease- and-desist order for violating the Antimonopoly Act in relation to cross-linked polyethylene foam, and an onsite inspection in June this year by the Fair Trade Commission in connection with optical fiber cables. I would like to take this opportunity to once again express our sincere apologies for having caused significant distress and concern among all our stakeholders, including shareholders and customers. We intend to implement a group-wide effort to strengthen compliance and ensure that such incidents will never be repeated. On July 29, we set up a third-party investigation committee on the antimonopoly act violation issue, primarily comprising outside experts with a fair and neutral perspective to thoroughly determine the causes and consider measures for preventing any recurrence. We are resolved to use this crisis as an opportunity to eradicate antimonopoly act violations and reform our corporate culture and constitution by breaking away from past business practices. We intend to effect a complete transformation—a rebirth of Furukawa Electric as an enterprise that thrives on the unique added value of our products and services.
Capitalizing on the power of materials
to differentiate products and strengthen
manufacturing capabilities
As a result of the worldwide recession triggered by the collapse of a U.S. financial institution in 2008, the Furukawa Electric Group finds itself in a severe management environment with the urgent need to bolster our financial performance. Under these circumstances, we will review our conventional business model to fundamentally reinforce compliance and strive to offer products and services that are genuinely valued by society. To this end, we will pursue our transmission infrastructure business, primarily in the high-growth regions of BRICs and ASEAN, and discern customer needs in relation to the key concepts of the environment, energy conservation and cost reduction. We will also seek to fully leverage our expertise in materials cultivated by the Group over the years to differentiate our products, thoroughly eliminate waste, and reduce costs by strengthening our manufacturing capabilities to further reinforce our foundational capabilities for responding to the dramatic changes taking place today.
Enhancing comprehensive initiatives for the
environment
Electricity used at our Nikko Works is primarily generated by a hydroelectric power station owned by Furukawa Electric, and we are therefore able to manufacture our copper strips and aluminum memory disk products with low CO2 emission levels. The Furukawa Electric Group is pursuing comprehensive environmental initiatives, from the use of responsible energy sources and the development of environmentally sound products that utilize our competence in materials, to measures for reducing environmental impact throughout the design, production and distribution process, Team Minus 6% activities at our offices, and actions to protect local ecosystems. In 2008, we participated in a government-sponsored pilot program on emissions trading to increase our own knowledge base. We also reviewed our programs and systems and added environmental targets to the performance assessment of business segments, introduced a program to ensure achievement of those targets, and established an “e-friendly” logo system, through which a logo is displayed on products that meet given standards at each stage of materials procurement, manufacturing, use, distribution and disposal. We will seek further progress in fiscal 2009 through measures such as developing our own methods for assessing environmental performance.
Consistent social contribution rooted in the
local community
With respect to social contribution, we uphold the Furukawa Electric Group's Action Guidelines on Social Contribution to contribute to society not only through our business operations but also through activities for achieving a sustainable society by utilizing the human resources and business sites of the Furukawa Electric Group to strengthen the bonds with society we have cultivated for over a century. This requires the development of a system that encourages the participation of many employees, such as the establishing of a corporate culture of social contribution as well as considering new measures including educational activities, work-leave programs and citation programs. In fiscal 2009, we will seek to further enhance our system in addition to the ongoing social contribution activities rooted in the local community that are being undertaken at each works. Our goal is to develop our business by placing high value on communication with all our stakeholders, including customers, employees, shareholders and residents of local communities. We look forward to receiving your honest feedback on all these initiatives. Expanding our CSR activities and enhancing communication with stakeholders Tetsuya Sato tor, Member of the Board, Chief Social Responsibility Officer
Renewal of the CSR Report
In fiscal 2008, we requested a third-party opinion from Mariko Kawaguchi, General Manager of the Management Strategy Research Department at Daiwa Institute of Research Ltd., to evaluate and provide advice for our CSR Report. We have been seeking to creatively transform the format of our report from one that had traditionally focused on explaining in-house systems and programs and sharing the results of in-house targets into one that adopts the stakeholders' perspective and includes content that is easier to understand and more familiar to readers while also communicating the unique character of the Furukawa Electric Group and its concrete activities. While many tasks remain, we hope to further enhance this report over time through dedicated efforts that incorporate a broad range of comments from our stakeholders, including third-party opinions.
Expanding our CSR activities
As addressed in the President's Message, our response to compliance issues became an urgent task following events in the past fiscal year. Since the establishment of the CSR Division in 2007, we have sought to develop our system of compliance and internal control and to improve our programs. The results, however, indicate these programs were not functioning adequately in some respects. After earnestly reflecting on this situation, we intend to conduct a full-fledged effort to ensure compliance with renewed conviction. We will endeavor to establish a thorough awareness across the Company on the need to maintain clarity on our internal ethical framework and practices as well as the evolution of societal expectations by continuously reviewing our activities and steadfastly pursuing improvement. This report features an article on our environmental initiatives. We have also established a new "e-friendly" logo system, set up a committee to promote reductions in CO2 emissions and launched a life cycle assessment (LCA) initiative for quantitatively assessing our environmental impact. In addition, we are conducting a sustained effort to establish CSR Procurement Guidelines for suppliers, develop countermeasures against the new strain of influenza virus and formulate business contingency plans (BCP) for the eventuality of a major earthquake. We intend to enhance and expand our CSR activities based on the concept that corporate value is determined by the balance between the three aspects of economics, environmental protection and social contribution. Feature
Initiatives for
Preventing Global
Warming
Clearly recognizing the need for a low-carbon society and acknowledging the importance of responding to this need through a group-wide effort, the Furukawa Electric Group is taking action to prevent global warming throughout the entire lifecycle of its products, including production and logistics, toward the creation of a genuinely successful and sustainable 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 four areas of production, products and services, logistics and non-production activities.
Policies
Initiatives
Product Development

Furukawa Electric Group in a united effort to prevent global warming • Reducing greenhouse gases • Promoting energy savings • Switching fuels and using clean energy sources • Reducing transportation energy consumption Production Logistics • Converting to energy saving facilities • Development of environmentally- friendly products • Hydroelectric power • Recycling system of Furukawa Electric Ecotec • Switching fuels 12009
The Furukawa Electric Group is pursuing the development and popularization of environmentally-friendly products in four areas: prevention of global warming; zero emissions; elimination of substances that harm the environment, and energy 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 Major environmentally-friendly products related to these four areas • Lead batteries for automobiles • MCPET • 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 air bubbles smaller than 10 μm. Due to this structure, MCPET boasts the world's top light reflexive performance. It has a relative reflexivity of 99% and is used as backlight for LCD and reflective sheets for such uses as convenience store signs. Applications have recently expanded to include lighting equipment such as LED downlights.
A Word from Sales
We hope to make MCPET an even more satisfying product for 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 to ship MCPET as an end-product in addition to supplying it as a material. Koji Katsura Foamed Products Division Industrial Product Division Energy and Industrial Products Company Reduction in fluorescent lamps by corporate customers that have adopted MCPET (Our research)
Environmentally-Friendly Products
Improving automobile mileage with high-performance batteries Commercial lead batteries for automobiles (The Furukawa Battery Co., Ltd.)
Eco battery reduces CO 2 emissions and saves energy
Many of the latest fuel-efficient cars carry charge control systems for lowering fuel consumption. This is enabled by computerized 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, the repeated charging and discharging of the battery requires high charge acceptance for efficient charging over short periods of time. Through improvements such as optimizing the design of 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 CO 2 emissions by approximately 3%. We will seek to further reduce battery weight while enhancing performance factors, such as charge acceptance. materials, we were able to improve charge acceptance by 15% over conventional products. We are also pursuing green procurement with consideration to the environment by developing a car battery recycling system that uses recycled material for the package, lead and battery case, making the FB (FURUKAWA BATTERY) an environmentally- friendly battery from several perspectives. Our flagship model that reduces fluid loss to quarantee non ration through our newly developed double-lid structure. Comparison with conventional products Increases automobile mileage and energy savings Data from The Furukawa Battery; compared with its own conventional products Takashi Mizuno Technical Service Section Technical Department The Furukawa Battery Co., Ltd.
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 as well 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 the fact that over 90% of the energy used by the Group is generated by hydroelectric power from Furukawa Nikko Power Generation Inc., accounting for a 112,000-ton reduction in annual CO 2 emissions. In addition, we drew attention to our participation in the Lake Toya Summit in Hokkaido, where we exhibited our superconducting cable, expected to achieve energy savings of 3,120 GWh and reduce CO 2 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's largest 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 has pursued activities for reducing CO 2 emissions 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 of the works along with other members to further reduce CO2 emissions. The Furukawa Electric Group is also focusing on utilizing renewable energy sources. Priorities for Preventing Global Warming Associated with Production Operations for Fiscal 2008
Major Initiatives in Fiscal 2008
Fuel conversion at the Chiba Works The use of electricity at Chiba Works accounts for 70% of the location'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 CO 2 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 on fuel 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 the conversion 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 the use of kerosene over the coming years. We reduced CO 2 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. Concentration of the cable manufacturing process Domestic demand for optical fiber cables is expected to remain stagnant for some time, and we have been looking into a number of activities for increasing profit at a lower level of operations. After recognizing that improving the production processes within each work would not lead to significant results, we decided to pursue full-scale improvement in capacity utilization by integrating and reorganizing production across several sites. At the same time, we factored in environmental considerations such as reduced CO2 emissions and achieved considerable decreases in utility costs, such as for air conditioning and lighting, which had been generated as a 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, we intend to continue making further reductions.
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
Major Initiatives in Fiscal 2008
Eco-driving seminars in eastern and western Japan Training sessions on energy saving driving, or eco-driving seminars, were held for drivers of partner transportation companies at the Shiga Branch, Oyama Branch and Oyama Center of Furukawa Logistics. We intend to continue our support for energy saving driving, which is friendly to the environment and also encourages safe driving. (Cooperation: Hino Motors, Ltd.)
Promotion of modal shift
In our effort to promote a modal shift for cargo shipped from the Nikko area to customers in the Shikoku area, we are striving to reduce CO 2 emission as much as possible on a daily basis by choosing transportation by truck and by 5-ton JR freight containers depending on the monthly volume of cargo.
Logistics Environmental Conservation Award
Our Nikko-Osaka 31-foot Container Round-trip Transportation project, launched in cooperation with Sumitomo Electric Industries, Ltd. in October 2008, was a joint recipient of the Logistics Environmental Conservation Award from the Japan 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 Electric Industries, 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 was replaced 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 the industry 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 CO 2 emissions by approximately 242 tons. Round-trip transportation between Nikko and Osaka using 31-foot containers
Furukawa Electric raises its management efficiency through timely decision-making to quickly respond to changes in the business environment and markets, thereby also improving its performance. At the same time, we strive to maintain sound management by building and upgrading our internal control systems.
Board of Directors and Board of
Corporate Auditors
Board of Directors
To accelerate decision-making, Furukawa Electric exercises flexibility by convening extraordinary board meetings as necessary in addition to the regular monthly board meetings. And to facilitate the effective functioning of the Board of Directors in monitoring operational performance as the cornerstone of corporate governance, we have established a support structure to ensure outside directors sufficiently understand the issues being discussed, and the opinions of outside directors are respected as part of the decision-making process. We have also set up a CSR and Risk Management Committee under the supervision of the Board of Directors, consisting of the Chairman, President, Company Presidents and Chief Officers. This acts as a framework for the promotion of CSR and risk management activities from an overall groupwide perspective.
Board of Corporate Auditors
Furukawa Electric has incorporated the establishment of a Board of Auditors into the institutional design of the Company itself. We place great importance on the function performed by our Corporate Auditors and Board of Corporate Auditors, which are independent of the Board of Directors. And we continue to make every effort to strengthen our auditing capabilities based on close collaboration between our Corporate Auditors, Accounting Auditors and the CSR Division, which acts as our auditing department, including sharing information and exchanging opinions.
Operational Performance
Furukawa Electric's operational structure is based on a company system and a chief officer system. Under the supervision of the President, who is responsible for overall operational performance, operations are run by the Company Presidents, and operations relating to matters such as groupwide strategies, resource allocation and administration are handled by the relevant Chief Officer. Details of such operations are then reported back to the Board of Directors on a quarterly basis.
Internal Control
The internal control system of Furukawa Electric and its Group companies has been established and implemented with the understanding that the objectives of internal control are to maintain and enhance the efficiency of operational performance, ensure compliance, manage risk and information, and oversee Group companies. With respect to the Internal Control Reports as mandated under the Financial Instruments and Exchange Act, which went into effect during the fiscal year ended March 2009, the Group J-SOX Committee and the CSR Division are responsible for maintaining and enhancing the credibility of Furukawa Electric's financial reports.
CSR Management
The Furukawa Electric Group is bolstering its monitoring of all corporate activities by establishing a specialized division for promoting CSR activities and appointing an officer to supervise its operations.
CSR Promotion Framework
The Furukawa Electric Group established the CSR Division as a specialized unit for strengthening and improving CSR activities and appointed a Chief Social Responsibility Officer (CSRO) to supervise its operations. The CSR Division consists of an Internal Auditing Department, an Administration Office on Security Trade Control, a Safety and Environment Promotion Department and an Administration Department. We are stepping up all-round monitoring of corporate activities from the standpoint of CSR, encompassing areas from internal control, compliance and risk management to safety, environmental protection and social contributions, and undertaking CSR activities on a standardized basis. In addition, we maintain a framework for taking any necessary action should problems arise, for example investigating allegations and the causes of problems, instituting remedial or preventive measures and releasing statements, to deal with all eventualities quickly and appropriately.
CSR Basic Policy
We fully recognize the responsibilities of the Furukawa Electric Group to society and will strive to maintain and improve on solid, friendly relationships with all of our stakeholders and contribute to the sustainable development of society through corporate, environmental and social activities.

Compliance
Promotion of Compliance
The Furukawa Electric Group defines compliance as "going beyond simply abiding by laws and regulations by acting in accordance with the values and ethics required of the Company and its employees as responsible members of society." We continue to promote in-house education and inspections to prevent any violations of the law as well as a range of other compliance-related activities within the framework of the Furukawa Electric Group Action Guideline as our basic philosophy on ethical and legal compliance, which is expressed more concretely in the CSR Code of Conduct. Several serious compliance incidents occurred in fiscal 2008, including the cancellation of our JIS mark certification for wrought copper products at Osaka Works and a violation of the Antimonopoly Act in relation to cross-linked polyethylene foam. In response to these incidents, we held compliance briefings for employees above the managerial level at our head office, branches and works, and distributed a message from the President titled, "Promotion of Compliance Management." We also instituted a compliance pledge to be signed by all Furukawa Electric employees at or above the level of directors, general managers and managers as well as executive officers at affiliated companies. In fiscal 2009, we plan to improve our compliance training, expand the scope of the compliance pledge and conduct an employee survey.
Risk Management
Risk Management Each year, the CSR and Risk Management Committee conducts risk assessments targeting general managers at Furukawa Electric Co., Ltd. and representatives of affiliated companies both in Japan and abroad in order to identify any potential risks. The CSR and Risk Management Committee devises response plans for major groupwide risks and monitors progress accordingly in an effort to minimize risks. The following four issues were identified in fiscal 2008 as major risks for Furukawa Electric, and concrete actions undertaken by related departments to address these issues were monitored.

Internal Reporting System
To enable early detection of compliance violations and corrective measures, we operate a system whereby company officials and employees can either openly or anonymously file reports directly with the Central Compliance Committee (namely, an internal reporting system.) Sufficient care is taken to ensure whistleblowers are not subject to any negative impact as a result of filing an internal report.
Compliance Education
We provide education based on rank, from new recruits to directors, and conduct training in the workplace using the CSR Compliance Handbook to establish a thorough awareness of compliance among all employees.

Business Contingency Plan
Fully recognizing the social responsibility of the Group, we formulated a business contingency plan (BCP) based on our BCP policy described below, assuming an intensity 6 (Japanese scale) epicentral earthquake hit the Tokyo metropolitan area, to minimize the impact of unforeseeable risks and to ensure the continuation of business operations. Starting with the current fiscal year, we plan to upgrade our BCP to include additional risks, such as the pandemic influenza virus, and make the transition into a business continuity management (BCM) phase by applying the PDCA cycle.
5. Implementation of business continuation management The Furukawa Electric Group uses hydroelectric power generated by Furukawa Nikko Power Generation Inc. for most of the electricity needed for production operations in the Nikko area. The annual volume of hydroelectric power accounts for 14% of all electricity used by the Furukawa Electric Group each year (26% for Furukawa Electric alone).
The Furukawa Electric Group is striving to reduce its environmental impact throughout the product lifecycle. 17   Basic Environmental Policy 18 Environmental Management 19   Material Flow 20 Targets and Performance 21   Activities for Promoting Environmentally-Friendly Products 22   Environmentally Conscious Production Activities 24  Chemical Substance Management 25 / Environmental Risk Management 26   Environmental Accounting
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, with each 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 to continuously improve our efforts to protect the environment. • 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. • 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. • We shall conduct environmental audits and review our environmental management system and environmental 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 part in community activities.
The Furukawa Electric Group has developed a system of centralized control for groupwide environmental activities based on the Furukawa Electric Group Basic Environmental Policy.
Environmental Management Promotion
Organization
At the Furukawa Electric Group, the Central Committee for Environmental Management, chaired by the Chief Social Responsibility Officer under the supervision of the President, meets four times a year to formulate and manage the environmental management targets of the entire Group. To reinforce our GHG (greenhouse gas) reduction initiatives for preventing global warming, the Committee for Company- wide Promotion of Energy Conservation was renamed the Committee for Reduction of GHG Emissions in fiscal 2008, and the Working Group for Reducing GHG Emissions was newly established under it. At Furukawa Electric, to raise awareness and motivate independent initiatives for reinforcing and innovating environment-related technology and products in each business division, we developed a system in fiscal 2008 for evaluating the achievement of sales targets for environmentally-friendly products and measures for reducing GHG formulated by each business division and to incorporate these factors into their performance reviews. The Company's six works and domestic affiliates participating in 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.
Participating in Team Minus 6%
Furukawa Electric participates in Team Minus 6%, a national movement to prevent global warming sponsored by the Ministry of the Environment. Under Team Minus 6%, Furukawa Electric has identified seven action items that it will implement at the head office, branches and other locations. In fiscal 2008, informative articles on Team Minus 6% were included three times in an in-house publication to encourage action and participation in activities at work and home.
Environmental Education
The Furukawa Electric Group runs a variety of educational training initiatives designed to raise the level of environmental awareness among our employees and cultivate required knowledge and skills.

|| Education on Environmental Subjects
In fiscal 2008, we held seminars on tools provided by industry association JAMP*, with 28 participants in attendance. We also held seminars on the REACH environmental regulations, attended by 36 participants. * JAMP: Joint Article Management Promotion-consortium || Consolidated Environmental Management Seminar Held in fiscal 2008 was a lecture by Mariko Kawaguchi, General Manager of the Management Strategy Department of Daiwa Institute of Research Ltd., entitled, "Significance of CSR for Companies—Initiatives Toward Sustainability." According to the results of a questionnaire, participants received the seminar favorably, commenting that it was an easy-to-understand presentation on how companies could concretely address various issues from a CSR perspective. Consolidated Environmental Management Seminar
Material Flow
Furukawa Electric purchases various raw materials and chemical substances and uses energy resources such as fuel and electricity as well as water resources to provide our products and services. At the same time, the Company endeavors to reduce the environmental impact generated by these activities. Environmental Impact of our Six Production Base Works "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 and nine branch offices. 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 resource saving measures, we promote activities such as sorting waste and reusing resources such as photocopier paper and files.
The Furukawa Electric Group defines medium-term targets every three years in the form of the Medium-Term Plan for Environmental Preservation Activities and also develops annual plans for promoting environmental protection efforts toward accomplishing the targets set out in these plans.
Furukawa Electric Group Annual Targets and Performance for Fiscal 2008
The Furukawa Electric Group promotes its environmental protection activities by defining groupwide Environmental Preservation Activity Targets for fiscal 2008 based on medium-term targets laid out in the 2009 Medium-Term Plan for Environmental Preservation Activities. It applies them to environmental management systems at Furukawa Electric and affiliated companies under consolidated environmental management. The current fiscal year marks the final year of the 2009 Medium-Term Plan, and in this important year we are making preparations for the formulation of the 2012 Medium-Term Plan for Environmental Preservation Activities and the 2020 Long-term Targets for Environmental Preservation Activities by identifying priority issues and setting targets.
*2 Five of the six works achieved zero-waste and one has yet to achieve the target. (Definition of zero-waste: both direct landfil volume and total disposal of less than 1%)
The Furukawa Electric Group develops environmentally-friendly products designed to have less of an environmental impact for its customers.
e-Friendly—Our New Environmental
Designation Mark
The Furukawa Electric Group changed the name of its environmental designation mark from “ECOLINK” to "e-Friendly" to more effectively popularize environmentally- friendly products, including those produced by overseas affiliates. The mark is displayed on the boxes in which Furukawa Electric Group's environmentally-friendly products are packaged and is also printed in catalogs. Following the mark's name change, we established a new e-Friendly accreditation ample of display in a product cata system. The e-Friendly mark
Category of Environmentally-Friendly
Products
The Furukawa Electric Group's environmentally-friendly products belong to one of four categories described below.

Application and Registration of
Environmentally-Friendly Products
The criteria for an environmentally-friendly product is met when it offers an overall improvement from an environmental standpoint when compared with existing products and based on predetermined standards at each stage, from the purchasing of raw materials and components, manufacturing and use to distribution and disposal. Following application and screening by the business division, products that pass the screening conducted by the Committee for Development of Environmentally-Friendly Products, a cross-functional organization of the Furukawa Electric Group, are registered as environmentally-friendly products. The system was established in September 2008, and 16 items were registered within the first six months. products
Future Policy
In addition to increasing the number of our environmentally- friendly products, we are currently establishing indices that enable the visualization of environmental performance. Environmental performance is an index that quantifies product improvement compared with a standard model and expresses a product's contribution to the environment by comparing its functional index and environmental impact over its life cycle using predetermined standards. By clarifying indices and standards in this manner, we intend to produce innovative environmentally-friendly products that exceed standards and help achieve greater affluence in a sustainable, recycling-oriented society.
The Furukawa Electric Group is pursuing various environmental protection efforts to reduce the environmental impact of its production and distribution processes.
Actions for Reducing GHG Emissions
Initiatives at Works
The majority of the Furukawa Electric Group's greenhouse gas emissions consists of CO2 generated from electricity, fuel and other energy sources. As emissions from manufacturing processes in particular account for a large proportion, we continue to work on reducing emissions through energy saving measures such as increasing the efficiency of production processes, switching fuels, replacing equipment with more efficient alternatives, meticulously turning off lights when not in use and insulating hot areas. Total GHG emissions for the Group as a whole came to 860,000 tons of CO 2 in fiscal 2008, a reduction of 18% compared to levels in fiscal 2000. On a non-consolidated basis, Furukawa Electric achieved an equivalent of 200,000 tons of CO 2 , a reduction of 26% compared to fiscal 2000. Initiatives in Logistics In fiscal 2008, total transportation volume for the Furukawa Electric Group as a whole fell 9.5% from the previous fiscal year to 468 million ton-kilometers, while transportation volume at Furukawa Electric fell 14% year-on-year to 126 million ton¬ kilometers, due in part to cutbacks resulting from the global recession. Furukawa Electric's CO2 emissions decreased 16% year-on-year to 15,800 tons and specific consumption (denominator: ton-kilometers) also fell 3.4% due to further improvement in the modal shift rate and other factors. We will continue to promote modal shift, increase loading rates and promote joint deliveries to reduce transportation energy consumption.
Green Procurement Activities
Establishment of the Furukawa Electric Group Green Procurement Guidelines In March 2009, the Furukawa Electric Group unified the green procurement standards previously defined for each business area into Group guidelines. This has enabled us to procure everything from general purpose items such as office supplies to production materials in accordance with an efficient, consistent green procurement standard. || Office Supplies and Other General Purpose Items With respect to general purpose items, Furukawa Electric has been registering products as stated in the Green Procurement Guidelines using environmental labels in a catalog for our purchasing system and recommending them to the divisions that use these products. As a result, the green purchasing rate for registered items was approximately 99% in fiscal 2008. Looking ahead, we will request suppliers of general purpose items to deliver products that have environmental labels to increase the number of such items. || Products and Manufacturing Process Components Furukawa Electric's purchasing system enables its suppliers to provide and update information with regard to the status of their environmental management activities (including ISO 14001) and systems for controlling the chemical content of the materials they supply. This enables us to assess the current situation and share information. We will continue to ask our suppliers to enter this information in an effort to monitor the status on an ongoing basis.
Green Product Management System
The Furukawa Electric Group has been conducting voluntary inspections using our own assessment sheet, which corresponds to the guidelines for managing chemical content in products established by JAMP. The rate of voluntary inspections was 74% in fiscal 2008. We are also seeking to manage our targets, conduct environmental inspections and exchange the latest information on related regulations through bi-monthly meetings of the Green Product Management Committee and bi-annual meetings of the Committee for Consolidated Environmental Management and Green Product Management. In response to customer audits, we are currently conducting voluntary inspections at our major suppliers. We intend to continue these efforts by further expanding the scope of the inspections and by conducting regular audits at plants and suppliers that have established their management systems.
The Furukawa Electric Group began taking action to reduce levels of outsourced waste disposal in 1993, and launched zero emission efforts in 2001 for reducing the volume of waste commissioned for final disposal to less than 1% of the total volume of waste by directly transporting waste from each works to the landfill site. As a result of our efforts to meticulously sort waste and recycle waste acid and sludge into useful resources, the overall level of outsourced waste disposal for the Group for fiscal 2008 fell by 39% compared to fiscal 2004 to 8,984 tons. Furukawa Electric achieved an equivalent reduction of 70% on a standalone basis and our affiliated companies a reduction of 29% (both compared to fiscal 2004 levels). The overall level of direct landfill disposal for the Group also fell by 54% compared to fiscal 2004 to 2,105 tons. Furukawa Electric achieved an equivalent reduction of 49% on a standalone basis and our affiliated companies a reduction of 55% (both compared to fiscal 2004 levels).
Zero Emission Activities
Reducing Waste Disposal Costs Furukawa Electric is targeting reductions in waste disposal costs. 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, we achieved approximately 250 million yen in profit in fiscal 2006 and 2007 on the back of soaring copper prices, and about 120 million yen in fiscal 2008 despite the decline in copper prices. Introduction of the Electronic Manifest System 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 Works in February 2009, followed by Chiba Works in July 2009. In 2008, the annual rate of usage of the electronic manifest for all companies was 52% (total manifest transactions: 3,617; electronic manifest transactions: 1,897). We intend to focus on expanding its use to all our works in the future.
Recycling Foliage Generated by Pruning
In the past, Furukawa Electric contracted Hiratsuka City for the incineration disposal of approximately 80 tons each year. Branches and leaves from pruning trees within our compounds totaled approximately 50 tons, representing approximately 60% of the total. Since Hiratsuka City's incineration capacity was approaching its limit, we began seeking alternative disposal methods from the standpoint of recycling, and in December 2007 we switched to a method by which the foliage is crushed for either dispersal or composting. In fiscal 2008, we crushed 43 tons of foliage, dispersed part of the resulting chips in an orchard and composted the rest. As a result, the volume of waste outsourced to Hiratsuka City for incineration decreased to approximately 30 tons, helping to reduce CO 2 emissions as well as cutting disposal costs by approximately half.
The Furukawa Electric Group promotes efforts to appropriately manage and reduce the use of harmful chemical substances.
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 35% compared to levels in fiscal 2004. Three of the four affiliated companies that were using organic chlorine compounds completely phased out their use during fiscal 2008. Appropriate Management of Chemical Substances At Furukawa Electric, we confirm the properties and applicable laws and regulations regarding all chemical substances we use during the manufacturing process on their Material Safety Data Sheets and administrate them. We also monitor the volumes 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
(or 0.5 tons or more in the case of specific first category chemical substances)
Activities for Reducing Emission 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 reduced the volume of toluene that we use mainly to degrease copper strips by switching to a hydrocarbon-based detergent and implemented measures to prevent leaks and dispersal of IPA, which is used to reduce copper wire when it comes out of the melting furnaces. In fiscal 2008, we installed an IPA recovery apparatus at our Chiba Works in an effort to achieve further reductions.
System for Analysis, Assessment and
Management
Our analysis division has developed an assessment method using the chemical analysis of environmental impact materials, which enables us to supply customers with factual evidence (analytical data) about our products. The division also supports the construction of systems for managing environmental impact materials at our plants. As an example of this assessment and management approach, we developed and constructed a system of phased assessment and management for environmental impact materials, as shown in the diagram below. A preliminary screening is conducted at the plant using energy dispersive fluorescent X-ray analysis equipment for a brief assessment. For situations requiring a more detailed analysis, a secondary screening is conducted using more accurate wavelength-dispersive fluorescent X-ray analysis equipment installed in the analysis division. Chemical analysis is conducted as a method of final determination. Management system for environmental impact materials contained in products
The Furukawa Electric Group recognizes the environmental risks associated with its business operations and therefore develops and implements countermeasures for each risk.
Soil and Groundwater Pollution
Countermeasures
The Furukawa Electric Group conducts strong risk management recognizing that soil and groundwater pollution are vital health and safety concerns for local residents and employees. We promptly disclose the discovery of any soil or groundwater pollution and take action. 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 2008, 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 began examining slag deposit volume and ground pollution. Remedial work for removing affiliate Kyowa Electric Wire's former Osaka Plant from the list of contaminated areas under the Soil Contamination Countermeasures Law and soil and groundwater countermeasures at the Ibaraki Plant owned by Aoyama Kinsho Co., Ltd. are also underway.
Effort to Prevent Atmospheric and
Wastewater Pollution
Every Furukawa Electric works maintains voluntary control limits and manages operations to avoid exceeding regulatory limits for atmospheric and wastewater quality. In fiscal 2008, suspended solids (SS) temporarily exceeded regulatory limits at Chiba Works due to an inflow of muddy water from torrential rainfall. The situation, which was reported to the regulatory authorities, has since returned to normal. Otherwise, all works controlled atmospheric and wastewater quality within regulatory limits. * See our website for detailed data for the Chiba, Nikko, Mie and Osaka works.
effects of torrential rainfall.
PCB Management
The number of instruments containing PCB is monitored at each works and business base of affiliated companies to facilitate effective storage and management operations. We will commission processing on an ongoing basis once the Japan Environmental Safety Corporation has started PCB waste processing operations. Condensers and transformers removed due to the scrapping of buildings or renovation of facilities are examined for PCB content on a case-by-case basis. In fiscal 2008, the number of instruments containing low levels of PCB under storage increased. Regulatory authorities were notified and appropriate storage established.

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 industrial use. Relevant products include electric wires for use on ships and fire prevention products for electric wire installation for telecommunications and electricity. Full details are featured on our website.
Use of Asbestos in Buildings and Plant Facilities
|| Plants and buildings
A fiscal 2005 investigation to ascertain the extent to which asbestos spray materials discovered in one building and a part of one plant on Company-owned properties may have dispersed confirmed the asbestos was stable. Given the risk of future dispersal, however, we removed or contained the materials at our plant buildings in fiscal 2006.
|| Facilities and equipment
Insofar as possible, all asbestos subject to dispersal has been removed and replaced with viable alternatives. Where asbestos is embedded in insulation or other materials and not dispersed, we will later install non-asbestos containing materials during scheduled inspections.
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
In an effort to quantitatively assess our environmental costs and benefits, we have compiled tables outlining our environmental conservation costs, economic benefits associated with environmental conservation activities and 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 total of 19 companies. Furukawa Electric's environmental conservation costs for fiscal 2008 came to 3.7 billion yen in expenses and 400 million yen in investment. Expenses fell by 500 million yen compared to the previous year (fiscal 2008). Overall economic benefits decreased by 440 million yen. Environmental conservation costs for our affiliated companies came to 4.8 billion yen in expenses and 4.2 billion yen in investment. Overall economic benefits rose by approximately 400 million yen due to increased energy costs.
*2 Minus figures indicate an increase Economic benefit associated with environmental conservation activities

Society
The Furukawa Electric Group values communication with all stakeholders throughout its corporate operations. 28   Relationship with our Customers 29 Relations with our Shareholders and Investors 30. Relations with/our Suppliers 31 Relations with our Employees 35 Involvement with Society and Local Communities 27 Furukawa Electric Group CSR Report 2009
Furukawa Electric responds to the diverse needs of its customers by maintaining and improving the quality of its services and operations through an unceasing effort for technological innovation and effective quality control.
Furukawa Electric Quality Control Activities
The Organization for Improving Quality Levels To ensure consistency in quality across the Company, we have established the Central Quality Control Committee to oversee quality management groupwide under the direction of the President. We have also set up Divisional Quality Control Committees with direct links to the heads of each division and make every effort to maintain and improve the quality of our products, services and operations so as to offer continual quality assurance.
Quality Control Policy
At every stage of our operations, from research and development to manufacturing, sales, customer service and management, in all sections and all hierarchies, we always strive to adhere to a PDCA management cycle based on actual facts, maintain and improve our products, customer services and the quality of our operations and put our management policies into practice. Quality control organizational structure QC Circle Activities and FR Proposal Activities We seek to continuously improve our quality control techniques through QC Circles, small group-based activities involving all employees that harness QC (quality control) techniques. Debriefing sessions are held at individual works as well as on a company-wide basis to report the result of activities. Such sessions have grown substantially in recent years due to the inclusion of overseas affiliate companies. FR proposal activities involve employees submitting ideas on how to improve operations. Proposals are then implemented and improvements made in an effort to fundamentally strengthen the Company's business. Such activities continue to yield substantial results each year. FR proposal was coined from the "F" of Furukawa Electric and the "R" of renewal, reform and rationalization.
Results of Quality Improvement
Activities for Fiscal 2008
As part of the ongoing range of quality improvement activities we are currently undertaking, we have managed to significantly reduce customer complaints. We have successfully reduced complaints to 18% of levels in fiscal 2001 (as of fiscal 2008). Demand from customers for more diverse and sophisticated decryption has led Furukawa Electric to mobilize a wide range of technology and know- how, enabling us to create value for customers. We have received glowing feedback from our customers for these activities and their results, and have even received awards from numerous clients, including a certificate of appreciation from Toyota Motor Corporation for our quality control activities related to products such as wire harnesses for automobiles.
Reacquisition of JIS Mark Certification
Considering a case that occured in another industry, Furukawa Electric conducted a complete inspection of the current status of performance tests required under the Japan Industrial Standards (JIS standard). The results revealed that testing methods other than those designated by the JIS standard were being used to calculate performance data for some of our copper and copper alloy sheet and tube products. We voluntarily reported this finding to the certification organization and had our JIS mark certification revoked in August 2008. We subsequently reinforced our testing and assessment facilities, reviewed the management system of the relevant division, and completed internal corrective measures by September 2008. Following the six-month performance period designated by the JIS standard, we underwent a certification audit in March 2009 and re-obtained certification in April 2009. We extend our deepest apologies for any concerns we may have caused during this period to our direct customers and their customers as well as other stakeholders.
Furukawa Electric engages in IR (investor relations) activities based on two-way communication with our shareholders and investors in an effort to contribute to society and enhance our value as a company.
Information Disclosure Policy and IR
Framework
Furukawa Electric discloses information in a timely and appropriate manner in compliance with the Timely Disclosure Rules set forth by the Tokyo Stock Exchange. We have established our own Regulations on the Timely Disclosure of Corporate Information, and any decision on or occurrence of important corporate information requiring timely disclosure is promptly reported to the manager of the Investor & Public Relations Unit, which serves as a liaison office for disclosure. In turn, the manager discloses information after obtaining internal approval required under the Regulations.
Relations with Institutional Investors
and Securities Analysts
In addition to holding management briefings (covering interim and year-end results and medium-term plans) for institutional investors and securities analysts, we actively encourage communication all year round. Through results briefings, overseas roadshows and other activities, we engaged in communication with a total of 1,076 institutional investors and securities analysts over the course of fiscal 2008 (an increase of 27% compared to fiscal 2007).

Relations with Individual Investors
In fiscal 2008, we held plant tours for individual investors for the first time. A total of 168 investors chosen by lot from 1,570 applicants experienced Furukawa Electric's current and future technologies by observing the manufacturing of optical fibers and electric cables and experiments on superconductivity. We also participated in company briefings for individual shareholders organized by the Nagoya Stock Exchange and presented our outlook on corporate performance. As of the end of March 2009, we had a total of 69,549 individual shareholders (an increase of 578 on the previous year), accounting for 29.06% of company shares.
Returning Profits to Shareholders
Our basic policy is to pay stable dividends without regard to changes in the business environment. In fiscal 2008, we upheld our basic policy despite the harsh environment of the global recession and paid an interim dividend of 3.5 yen per share and a year-end dividend of 2.5 yen per share, which added up to an annual dividend of 6.0 yen per share and represented a year-on-year decrease of 1.0 yen per share.
Furukawa Electric strives to maintain cooperative relationships based on mutual trust with suppliers through enhanced communication.
Striving to Ensure Optimum Purchasing
on a Steady, Ongoing Basis
Furukawa Electric's purchasing policy is to establish strategic relationships with suppliers to ensure optimum purchasing on a steady, ongoing basis. We believe that cooperative relationships with our suppliers will become even more important for achieving sustainable growth. Furukawa Electric has always sought to forge cooperative relationships based on trust with each supplier by communicating our status and policies through Supplier Meetings and a Supplier Evaluation Scheme. In addition to these efforts we are working on the following initiatives.
ll Study Group on Subcontracting Transactions
We believe today's severe economic conditions make it even more important to forge sound relationships with our suppliers through fair transactions that comply with rules and regulations. As part of this effort, we have held Study Groups on Subcontracting Transactions for the Furukawa Electric Group aimed at legal compliance as a training focus for the entire Group. We intend to continue similar efforts in the future.
|| Formulation of BCP in Procurement Activities
We have started developing a BCP (business continuation plan) for our procurement operations that is based on the assumption of a major disaster. We are setting up a systematic framework for compiling data from all suppliers on their situations, which we currently obtain from them separately, to quickly discern the overall picture in the event of a disaster and to update our risk management system and minimize obstacles in maintaining procurement operations under the worst-case scenario.
Furukawa Electric Purchasing Policy (Outline)
• We will establish strategic relationships with suppliers to ensure optimum purchasing • We will guarantee the reliability and safety of materials and supplies and their steady procurement • We will employ purchasing methods closely linked to production methods • We will implement global procurement • We will engage in green procurement and enforce compliance
Supplier Meetings and Supplier
Evaluation Scheme
Furukawa Electric strives to forge cooperative relationships with suppliers by regularly holding Supplier Meetings, by evaluating the status of transactions under the Supplier Evaluation Scheme and by providing feedback on the results. At the Supplier Meetings, we provide an overview of the Company, outline our purchasing policy and explain the management strategy of each company to enable suppliers to gain a deeper understanding of our operations. In the Supplier Evaluation Scheme, we evaluate suppliers on the basis of quality, technology, price, delivery system, degree of social contribution and financial condition, and then hold meetings to provide feedback on our findings. We explain and discuss results during these meetings to more closely align our awareness of procurement activities. In fiscal 2008, we held a Supplier Meeting in September, which was attended by 100 of our major suppliers. We also evaluated approximately 430 companies under the Supplier Evaluation Scheme and conducted feedback meetings. We intend to further strengthen our relationships in the future.
Promoting CSR Activities in Relation to
Procurement
Furukawa Electric has been promoting compliance initiatives as part of the procurement of materials and supplies in accordance with the Furukawa Electric Group Action Guidelines. Work is currently underway to organize past initiatives and policies toward developing CSR Procurement Guidelines. Looking ahead, we plan to expand internal CSR procurement operations into activities that regard the entire supply chain. Furthermore, we will respond to customer requests to avoid using resources produced by mines that disregard human rights and the environment, or "dirty mining," by continuing efforts such as requiring refiners to demonstrate ethical judgment in selecting mines.
The Furukawa Electric Group strives to create a varied personnel system and pursues health and safety activities to remain a corporate group that motivates its employees and fills them with pride.
Personnel Management Policy
Our basic personnel management policy is geared toward creating human resources who are capable of putting five principles set out in the Furukawa Electric Group Credo into practice. If individual employees abide by applicable laws and rules, act in accordance with their social and moral responsibilities and interact with others fairly and honestly, we will be able to establish safe, healthy working environments and workplaces that are free from irrational discrimination and harassment. We believe that this is crucial in order to get the most out of the abilities that our employees have to offer. Based on these foundations, we are aiming to bring out employees' creativity by devising a personnel system that will harness employees' various abilities and individual personalities, through initiatives such as equal treatment irrespective of age or gender, and support schemes to enable employees to achieve a work-life balance. By combining all of our employees' individual abilities, creating jobs suited to current needs and providing safe products, we are striving to contribute to a sustainable society and create a company that both motivates its employees and fills them with pride. Overview of personnel system
Status of Employment
Recruitment
The following table summarizes the number of employees Furukawa Electric has recruited over the past five years. We strive to secure personnel who will serve as the driving force for sustaining and developing our business into the future. We therefore seek highly creative people who demonstrate a strong ethical foundation and the ability to deliver results. We are also actively recruiting foreign citizens to support the globalization of our business.

Employment for People with Disabilities
To increase its employment ratio of people with disabilities, Furukawa Electric established Furukawa New Leaf Co., Ltd. as a special subsidiary in 2004 to actively employ people with learning disabilities. The company handles cleaning operations within the compounds of our works and currently employs a total of 23 people with disabilities, 10 at Hiratsuka Works and 13 at Chiba Works. The company also provides detailed guidance to assist people with disabilities in becoming independent members of society. Although our employment ratio of people with disabilities was 1.86% in the previous fiscal year, exceeding the statutory target, we intend to work on further expanding this group of employees, primarily through our special subsidiary. (Fiscal year) 2004 2007 2008 2005 2006 * In April 2004, the exclusion rate set out when the rate of employment was calculated was lowered, reducing the rate of employment. Average rate of employment for people with disabilities on the first of each month from April to the following March.
Employment of the Elderly
We operate a reemployment scheme for any employees aged 60 or over who are in good health and wish to remain in work. The duration of reemployment is being increased in phases, with employees entitled to be reemployed up to the age of 65. In fiscal 2008, 28 people (48% of employees who had reached the retirement age of 60) applied for this program, and a cumulative total of 74 had been reemployed as of the end of fiscal 2008.
Fair Evaluation, Human Resource
Development and Treatment
Employee Assignment Evaluation and Treatment We make every effort to assign employees and place them in positions based on their individual motivation and abilities under the concept of equal opportunity. As part of such efforts, we operate a range of consultation schemes and offer opportunities for employees to reflect on their career goals. In terms of employee evaluation and treatment, we have introduced a personnel incentive scheme to enable employees to be evaluated and treated fairly depending on the abilities that they display and their performance. We are also training mangers in performance evaluation and are working on ways for improving the way in which the system is run. Human Resource Development, Education and Training Furukawa Electric believes that our strength as a company stems from the synergy of the abilities of each and every one of our employees and that their abilities improve on a practical level through their day-to-day work. In addition to giving individuals the chance to grow and develop through their work, we encourage enthusiastic employees to develop their own skills by providing training, distance learning and support to help them obtain qualifications. In fiscal 2006, we launched the Global Business Leader training program to aid the development of personnel and thus carry our business forward into the future. The program has produced workers who are demonstrating their abilities in key positions at affiliated companies in Japan and overseas. Also in fiscal 2008, we implemented a 360-degree evaluation and follow-up training for employees in middle-management positions. And we are working to enhance the abilities of our mid-career employees by analyzing middle-management characteristics and applying them to various training programs. We intend to bolster the capabilities of the manufacturing worksite through the Conference for Worksite Innovation and reinforcing initiatives for effectively and efficiently creating human resource development programs and training curricula as well as identifying and solving problems.
Diverse Work Patterns and Work-Life
Balance Support Initiatives
As well as striving to enhance our employees' working lives, Furukawa Electric cooperates with labor unions to actively support their personal lifestyles and help them stay in good health through educational and other initiatives. In fiscal 2007, Furukawa Electric was accredited as a company that actively supports the development of the next generation. In line with our second phase action plan (fiscal 2007-09), we significantly relaxed requirements to make it easier for employees to take maternity/paternity leave. We also established a system for the provision of financial support whereby employees can use carried-over leaves in place of maternity/paternity leave or for the purpose of looking after their children. We intend to implement the second phase action "Kurumin"—Certification mark of an accredited company plan step by step. that actively supports the development of the next In addition, during fiscal 2008 we generation established a new program for a mandatory two-day annual leave assigned by the Company (simultaneous leave) to reinforce our efforts to reduce total work hours while also pursuing other initiatives to promote diversity (human resource strategy for benefiting from diversity) by becoming a member of the nonprofit organization J-Win and actively participating in external networks.

Occupational Health and Safety Activities
Furukawa Electric System for Promoting Health and Safety Furukawa Electric pursues health and safety activities, recognizing our social responsibility to make the utmost effort in these areas and to develop a comfortable working environment. The Central Health and Safety Committee chaired by the Company's Chief Social Responsibility Officer, the officer in charge of safety, formulated the Company-wide Health and Safety Management Guidelines and promotes health and safety activities on a company-wide basis. Individual Health and Safety Committees chaired by the head of the respective works are also in place at each works to implement programs based on the Guidelines as well as independent works' activities. We strive to raise the level of safety standards at each works by establishing and following up on standardized company-wide priority safety targets under the Guidelines. In addition, we established the Safety Management Liaison Meeting in July 2007 to oversee safety issues at Furukawa Electric Group manufacturing companies to secure safety across the Group.
Industrial Accidents
In fiscal 2008 (January to December 2008), the frequency of accidents resulting in the suspension of operations was 0.14 for Furukawa Electric on a standalone basis and 0.65 for the entire Group.

Furukawa Electric Safety Activities
ll Anzen Dojo
We installed an “Anzen Dojo” (safety education center) at all the works. These facilities include displays of basic safety knowledge and examples of accidents as well as equipment and facilities for simulating dangerous situations, helping employees to master safe behavior through experience. We are training all employees including new recruits.
Company-wide Health and Safety Group Activities
Presentation Meeting
Every year, the manufacturing division undertakes health and safety improvement activities at each workplace. The 37th Company-wide Health and Safety Group Activities Presentation Meeting was held at Nikko Works in July. Eleven groups representing each work presented the results of their activities. Special recognition was awarded to the team that improved copper processing by applying risk assessment methods and the group that improved facility maintenance by analyzing "hiyari-hatto" (close call) incidents during maintenance work.
Obtained Certification from the Japan Industrial
Safety & Health Association (JISHA)
We are engaged in a group-wide effort to establish management systems related to industrial health and safety. In January 2009, Chiba Works was first in the Company to obtain JISHA- compliant OSHMS certification from the Japan Industrial Safety & Health Association. We aim for certification at other works over the next three years.
| Safety Management Liaison Meeting
The Safety Management Liaison Meeting is held twice a year as a forum for the exchange of information, during which the status of safety activities at each company is reported. It also facilitates the timely exchange of information on the nature of accidents and countermeasures for accidents that occur at Group companies. In fiscal 2008, we conducted plant tours at Furukawa Electric's Nikko Works and Furukawa-Sky's Fukui Plant, held safety seminars led by safety consultants and
Furukawa Electric Initiatives on Health
l Mental Health Education
Our company-wide mental health measures have been promoted since 2002 and are based on the Guidelines for Promoting Mental Healthcare in the Workplace issued by the Ministry of Health, Labor and Welfare. Furthermore, we have been holding lectures by outside experts since 2005 in addition to basic education provided by industrial physicians and management staff. We also conducted advanced training courses for management staff in fiscal 2005 and 2006 as well as stress control seminars as stress prevention support in fiscal 2007 and 2008 for employees between the ages of 30 and 35.
|| Responding to the Pandemic Influenza Virus
Furukawa Electric's Health Management Center took the initiative in formulating a manual concerning the pandemic influenza virus, implemented preventive training at each work, and stocked hygienic and medical supplies. The manual was translated into English, Chinese and Spanish and distributed to overseas Group companies. We also implemented measures in response to the advancing phase of the pandemic such as by providing information and precautions through the publication of "Influenza Headlines."
|| Healthcare for Employees Working Long Hours
In line with the Labor Standards Bureau's guidelines, Measures to be Taken by Employers to Prevent Health Impairment Due to Overwork, we are focusing on efforts to ensure that any of our employees working long hours stay in good health, through measures such as (1) enforcing strict work restrictions based on the results of medical examinations and (2) operating a consultation system whereby employees working long hours are seen by an industrial physician.
|| Promoting Separate Smoking Areas
In accordance with a 2003 notification, Concerning the Guidelines for Measures on Smoking in the Workplace, issued by the Director-General of the Labor Standards Bureau, we designated more than 70 smoking rooms in fiscal 2004 in an effort to isolate smoking areas. As a result, the percentage of smokers among male employees on a company-wide basis fell from 53.3% in fiscal 2002 to 40.6% by fiscal 2008. We intend to continue to make every effort to prevent passive smoking in the future, as well as actively promoting non-smoking.
|| Responding to Asbestos-Related Health Issues
During the period from fiscal 2005 to 2006, we once again investigated workplaces that previously handled asbestos products and we organized medical examinations focused on asbestos for all relevant employees. We also sent out notices urging retired employees who worked at the relevant sites to undergo medical examinations. So far, symptoms have been detected in one current employee and nine retired employees. Also, a retired employee who had worked laying underground cables died from mesothelioma, and in 2006 this was confirmed to be an industrial accident. We have notified retired employees who worked at the relevant site regarding changes to the requirements for issuing health cards in the wake of revisions to Occupational Health and Safety Regulations in October 2007 and will continue to monitor the situation.
The Furukawa Electric Group is strengthening its actions under the Furukawa Electric Group Basic Policy on Social Contribution Activities along the three dimensions of nurturing future generations, promoting sport and culture and living side by side with local communities.
Basic Policy on Social Contribution Activities
In May 2008, we set out the Furukawa Electric Group Basic Policy on Social Contribution Activities. Furukawa Electric Group Basic Policy on Social Contribution Activities The Furukawa Electric Group will uphold and strengthen the bonds built up with local communities over more than a century and consistently and tirelessly undertake social contribution activities, focusing on nurturing future generations, promoting sport and culture and living side by side with local communities as well as contributing to society through its core operations, to help create a better world for future generations.
Communicating with the Local Community
Participation in Environmental Events || Eco-Messe 2008 in Chiba (September 2008, Makuhari Messe) We participated in Eco-Messe 2008 in Chiba, a trade show on environmental efforts under the theme of preventing global warming and preserving biodiversity for a sustainable society. We offered exhibits and presentations on optical fiber cables and related products that are indispensable for superconducting cables used in superconducting power transmission and high-speed, broadband communications. Current power cables account for as much as 5% of all electric power generation, and our products reduce transmission loss by up to 25%. In our superconductivity experiment exhibit area, we performed experiments to demonstrate how electric resistance falls to zero in liquid nitrogen and how air contained in a balloon turns into a liquid state. The experiments stimulated the curiosity of children, our future leaders, and generated significant enthusiasm. We goods related to the JEF United Chiba soccer team, which we sponsor. We donated the money collected to the Chiba Environmental Regeneration Fund. | Hiratsuka Environmental Fair (February 2008, Education Center, Hiratsuka City) The Hiratsuka Environmental Fair was held to present awards to citizens and businesses who had engaged in outstanding environmental efforts and to introduce the activities of environmental groups and others through a panel presentation. Furukawa Electric provided exhibits and presentations on environmentally-friendly products, such as the Eco-Ace Plus halogen-free wires and the MC-PET (micro-foamed PET) ultra-high reflexivity material, which can reduce the number of fluorescent tubes and save energy when used for lighting in
Interaction with Local Citizens
‖ Plum Festival in Kouracho, Shiga Prefecture (Furukawa AS) On March 15, 40 Vietnamese women from FAPV (Furukawa Automotive Parts (Vietnam)) who were training at Furukawa AS participated in the annual plum festival organized by the Kuretake Area Village Development Committee and communicated a joyful message through their songs. The event was well-received by the people of Kouracho and provided a valuable experience for the trainees as well. *Practice was hard, but I was very glad we were able to give our performance. It was a great experience to enjoy the plum blossoms, which we do not have in Vietnam, listen to the residents of Kouracho sing Japanese songs and experience Japanese culture."
| Summer Festival (Mie Works)
Every year on the last Sunday of summer vacation, Mie Works invites families of employees and local citizens to a summer festival. This year's festival featured booths run by staff and employees at affiliated companies, a Suzuka Drum performance by the Suzuka Drum Preservation Association, and other events, such as the Yosakoi Soran Dance and fireworks. The drum ensemble raised the festive mood through performances such as the "Sound of Suzuka," based on images from the Suzuka Racing Circuit, and a work based on the story of Daikokuya Kodayu, a boatman from Shiroko, lse, who washed ashore in Russia during the Edo era and later contributed to the spread of Western learning in Japan
Local Community Clean-up Activities
We actively engage in clean-up activities in the local communities in the vicinity of each of our works and plants, as well as nearby coastal and riverside areas and other locations. Clean-up Campaign Along Route 25 (Furukawa Electric, Furukawa Logistics, Kameyama City, Mie Prefecture) Kameyama City organizes clean-up campaigns in various locations around town to preserve the natural environment and raise awareness of town beautification. Furukawa Electric participates as a corporate supporter of the Route 25, Suzuka River and the Route 1 clean-up campaigns.
Nikko Ancient Cedar-Lined Road Clean-up Campaign
(Furukawa Battery, Nikko City, Tochigi Prefecture)
Furukawa Battery's Imaichi Plant participates in the Nikko Ancient Cedar-Lined Road Clean-up Campaign to preserve the cedar-lined road, which is a precious cultural asset and the only location that has received a dual national designation as a Special Historic Spot and a Special Natural Treasure.
Yamato Clean-up Campaign (Okano Electric Wire,
Yamato City, Kanagawa Prefecture)
We participated in the Yamato Clean-up Campaign, "Day for beautification and clean-up," on November 21, 2008, mainly cleaning the streets around the plant and head office of Okano

Environmental and Social Contribution Activities
Activities for Preserving the Satoyama Environment ll Preservation of the Kameyama Eco Forest (Mie Works) In Kameyama City, Mie Prefecture, citizens, businesses and local government are collaborating in a five-year plan launched in 2008 to develop a forest that enables people to walk, play and experience nature, based on the Kameyama Eco Forest Environmental Improvement Vision. Furukawa Electric's Mie Works is participating in realizing this vision. During the Forest Development Experience held on March 8, employees of Mie Works and their families participated as volunteers and planted 14 types of trees, including bayberry, Japanese maple and wild cherry blossom.
| Preservation of Satoyama—Oyama General Park,
House of Fireflies (Furukawa Logistics Oyama Branch) Local citizens, the general public, corporations and the local government are working together to revive the historic firefly region of western Oyama City so that fireflies will once again return to the area from the historic site of Washi Castle and Activities for Preserving the Ecosystem ‖ Extermination of Bur Cucumber (Totoku Electric) Bur cucumbers, which grow rapidly, destroying native ecosystems and affecting animals and plants, have been designated as an Invasive Alien Species by the Ministry of the Environment. In Nagano Prefecture, private organizations, municipalities and the prefectural government are cooperating to exterminate bur cucumbers in local areas. Totoku Electric exterminated the plant in the neighboring biotope-style citizen's green park (Mihogaike Green Park).
Initiative for Supporting Career Education
—Expressing the Appeal of Manufacturing Companies The Furukawa Electric Group implemented an initiative for supporting career education at a local high school to nurture future generations—one focus of the Group's social contribution activities. The project is also intended to foster skills and know-how for explaining the Group's technology and products in a way that is easy for the general public to understand. In March 2008, Naohiro Seki, Manager of the Human Resource Development Unit of the Personnel and General Affairs Department, visited a high school in Kanagawa Prefecture, his own alma mater, to present a lecture on the benefits of working for a manufacturing company. He described how students were connected to manufacturing companies, introduced our main products and noted that graduates of literature and science are engaged at manufacturing companies. He offered an explanation of nanotechnology and the thinness of optical fibers and their transmission distances. The most popular parts of his presentation were when students could touch our copper foil products, optical fiber preform and cable core and observe an experiment using shape-memory alloy. He expressed the special appeal of manufacturing companies in an enjoyable way that contributes significantly to supporting career education.
Promotion of Sports and Culture
| Supporting the Imaichi Youth Sports Cadet Relay
Competition
Each year, Furukawa Circuit Foil (Copper Foil Division of the Metals Company of Furukawa Electric Co., Ltd. since October 2008) voluntarily participates in the annual Imaichi Youth Sports Cadet Relay Competition. We also provide prizes for participants.
Others
ll Supporting Special-Needs Schools
Furukawa Circuit Foil receives students from the Imaichi Special-Needs School for active learning programs. We also participate on a voluntary basis in barbecue parties, nagashi somen (flowing somen noodle) events, sports festivals and educational presentations organized by the parents.
Furukawa Circuit Foil Social Contribution
Initiatives
Furukawa Circuit Foil organized a CSR Promotion Team in February 2005 and appointed social contribution leaders. Under the basic principle of contributing to the revitalization and development of the local community through the cooperation of the company and employees, we have mainly been offering support to welfare institutions and people with disabilities as well as undertaking projects in cooperation with the local community. To encourage employee participation in volunteer activities, we invite lecturers from the social welfare council and local nonprofit organizations twice a year in an effort to raise employee awareness. We established the Volunteer Card System and Volunteer Award System to encourage voluntary activities by employees and support individual activities by presenting awards once a year to employees who are actively engaged in social contribution efforts.
Awards from Outside Sources
Railway 2007 Technology Development and Purchasing Award for the Green Trough from East Japan Railway Company For the first time, we received the Railway 2007 Technology Development and Purchasing Award from the financial division (materials purchasing section) of East Japan Railway. The award recognized our contribution to global environmental preservation and enhancing the safety of trough work by developing a method by which PET bottle caps collected at stations are used as materials for green troughs (cable casings used in railways, etc.) in a two-year project with East Japan
The Furukawa Electric Group is working across the world to protect the environment and contribute to society in the context of local needs.
Initiatives at Shenyang Furukawa Cable
Environmental Preservation Initiatives
Environmental issues associated with economic development have become a major concern in China, and the Chinese government is developing regulations and reinforcing onsite company inspections as well as environmental guidelines. In response, Furukawa Electric designated 2008 as preparation year toward obtaining ISO 14001 certification by the end of 2009 and began installing facilities designed to reduce our environmental impact.
(1) Adoption of heat pumps
Hydronic heating using coal boilers, which is common in Shenyang, is associated with atmospheric pollution from coal combustion. Therefore, upon construction of a new cable plant in 2008, we adopted heat pump equipment that uses temperature differences in the groundwater for heating. Through this method, the use of coal resources is reduced and atmospheric pollution as well as the emission of greenhouse gases are prevented. It also allows for a more comfortable workplace in the plant by enabling climate control in winter and summer. (2) Installation of wastewater disposal facility We installed a facility for wastewater disposal at the newly constructed plant. Although water use has increased in step with our operations, the new facility has enabled us to satisfy requirements for COD, SS and oil content when discharging wastewater.
(3) Outdoor waste management
Waste generated by the plant had previously been left in piles that were subject to problems such as outflow during rainfall. To address this issue, we created a roofed waste storage area and at the same time managed to reduce the volume of waste by sorting valuable resources and reducing storage space. (4) Environmental education To raise employee awareness of the environment, we invite outside experts to provide training mainly for environmental committee members selected from each department.
Social Contribution Activities
Activities undertaken in 2008 include helping to remove snow on neighboring roads, collecting donations from all employees for areas afflicted by the Great Sichuan Earthquake in May 2008, and planting trees on both sides of neighboring roads at the request of the local district. In addition, Japanese employees as well as local Chinese employees participated as volunteers in the Shenyang Japanese Speech Contest and the Japan-China friendship marathon sponsored by the Shenyang Japanese Society. Overview Shenyang Furukawa Cable Co., Ltd. Location: Hujiadian Dashubu Village, Sujiatun District, Shenyang, P.R. China Workforce: 400 employees (including 4 Japanese) Website: http://www.sf-cable.com Inquiries: Administration and Personnel Management Department Fax: +86-24-8942-8954 Tel: +86-24-8942-8599
History
Established as Shenyang Furukawa Cable Co., Ltd. in 1995 in a joint venture between Furukawa Electric Co., Ltd., Shenyang Cable Co., Ltd., and Itochu Corporation; became a wholly owned company in 2003 through full capital participation by Furukawa Electric Co., Ltd., and in 2006 celebrated ten years of operation, which continues to this day. Business includes the manufacturing and sales of ultra- high voltage cables above 66 kV and mechanical parts such as joints, construction work for cable joints and supportive services for cabling technology. atmospheric pollution
Initiatives at Thai Furukawa Unicomm Engineering
Donations to the Local Community
Thailand is a Buddhist country in which donating to those in need and making offerings to temples are deeply rooted in daily life as right action. While Thai Furukawa Unicomm Engineering had also been making donations to the local community every August to commemorate the anniversary of its foundation, today it has moved beyond offering cash donations in order to construct facilities such as for child welfare institutions and public schools that do not have sufficient funding for implementing their improvement plans. In 2008 we contributed to four projects: installing playground equipment at a child welfare institution; laying tiles in a school auditorium; installing toilets and a hand-washing station for tooth brushing at a school and donating computers for occupational training to a juvenile correction facility. Donations are determined each year in June by an employee committee to review recipients and program content. We also conduct site visits to encourage personal interaction, which we believe adds an element of employee education to our social contribution activities.
Initiatives at Tembaga Mulia Semanan
Measures against Influenza
Over the past two years, we organized six, two-session seminars on avian influenza for all employees. Executives above the unit manager level are deepening their understanding by receiving explanations of draft documents for countermeasures and business continuity plans (BCP) during Management Committee meetings and other discussions. We held joint conferences with other Furukawa Electric Group companies to review countermeasures presented by each company. The head office also dispatched employees responsible for avian influenza countermeasures and contracted with doctors twice to provide support. As of May 20, 2009, we have been monitoring the body temperature of all employees every Monday at the entrance to our plant. We ask that everyone entering the Company wash their hands with alcohol on a daily basis. We have also placed alcohol-based disinfectants at major indoor locations to encourage daily hand washing and strongly suggest doing so before lunch. These measures are conducted in line with the document for countermeasures for avian influenza and were launched on the day a Phase 4 alert was declared by
Overview
Thai Furukawa Unicomm Engineering Co., Ltd. Location: 68Moo-5, Soi Sangsri, Phayasuren Road, Bangchan Khlongsamwa, Bangkok, Thailand Establishment: 1983 Business: Construction of telecommunication facilities Workforce: 143 employees Website: http://www.tfu.co.th/ the WHO for the pandemic influenza virus. We also maintain a stock of masks, soap and gloves.
Overview
P.T. Tembaga Mulia Semanan Location: Jalan Daan Mogot. KM. 16, Desa Semanan P.O. Box 31/JKT, Jakarta-Barat, Indonesia Establishment: 1977 Business: Manufacturing copper and aluminum wires Workforce: 320 employees
Mariko Kawaguchi General Manager of the Management Strategy Department of Daiwa Institute of Research Ltd. Graduated with a master's degree from Hitotsubashi University Graduate School in 1986. Joined Daiwa Securities in 1986. Transferred to Daiwa Institute of Research in 1994. Had a number of roles, including analyst, leading to her present assignment. Her research subjects include socially responsible investment and corporate social responsibility. Co-author of Guide to Socially Responsible Investment and CSR Management . Part-Time Instructor at Aoyama Gakuin University. This is my second opportunity to offer a third-party opinion. Last year, I pointed out that the report seemed very much like a CSR operational report for internal use. That is, the stakeholder's perspective was not reflected in the report. My impression this year is that the Company's message has been more sharply defined, making the report much easier to understand. Particularly with respect to the prevention of global warming, this report offers a broad overview that includes unique environmentally sound products, such as reflective sheets with high light reflexivity, production site initiatives such as fuel conversion and the concentration of processes, and distribution site initiatives. It is thus far easier to understand exactly what the Company is doing. Furthermore, the report describes how the Company has traditionally used electricity from a company-owned hydroelectric power station in the Nikko area, which accounts for 14% of the electricity used by the entire Group. I learned about this last year during my interview with Chief Social Responsibility Officer Tetsuya Sato. Hydroelectric power generation was not new to Furukawa Electric; the Company, however, became more aware of how society is increasingly paying attention today to the volume of CO 2 emitted, referred to as the carbon footprint, during manufacturing and transportation. Therefore, production based on hydroelectric power generation, which has an extremely light carbon footprint, represents a major strength in sales strategy. From this viewpoint, it was desirable from the perspective of CSR as well as from sales strategy for the Company to reconfirm the significance of hydroelectric power generation and to emphasize this point in the President's Message. In a similar light, the Company should be highly commended for its active stance of considering the use of renewable energy sources in the production line apart from conventional hydroelectric power. The report also states that the Company has developed a system for incorporating the sales of environmentally- friendly products and the reduction of CO2 emissions into the performance assessment of each department to promote environmental management. The best yardstick for measuring the sincerity of a company's environmental management is to have it reflected in performance assessment. From this viewpoint, we understand that Furukawa Electric is genuinely pursuing environmental management, which creates a favorable impression. I encourage the Company to provide status reports on this effort in the future. This year's report also contains a status report on the issue of dirty mining that I pointed out last year. While major progress seems yet to be made, companies are expected to come under even greater scrutiny over dirty mining as biodiversity becomes a focal issue second in importance to global warming. I recommend that the Company continue its efforts as an important aspect of supply chain management. On personnel issues, the status of work-life balance—the number of paid leaves and childcare leaves taken by employees—was disclosed in small print inside the chart. However, the current trend is to disclose annual figures related to personnel by chronology. I hope that data related to work- life balance will be disclosed on a multi-year basis, particularly in view of the fact that the Company is a designated Provider of Support for Raising Next-Generation Children. I also expect similar disclosures on the state of diversity, such as the ratio of female executives and the status of locally hired employees at overseas bases. Finally, in this year's message from the President, significant weight has been placed on explaining initiatives related to compliance violations. We naturally hope the Company will establish an ethical framework based on this corporate stance. On the other hand, we are facing a situation that urgently requires calls for the development of a low-carbon society. I would like to reiterate a point I made last year: copper wires lie behind every product using electricity. That is, Furukawa Electric acts as a stage assistant in the drive for electrification. Bearing this in mind, I strongly request that the Company put together a more comprehensive and organic long-term vision concerning viewpoints from which the Furukawa Electric Group can contribute to the development of a low-carbon society by utilizing all its management resources.

Information available via our website
Our website features details of progress with our CSR initiatives and PDF versions of this report and other previously published environmental reports. The relevant materials can be accessed via the following page on the Furukawa Electric website. http://www.furukawa.co.jp/english/csr/
Administration Department, CSR Division 2-3 Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8322, Japan Tel: +81-3-3286-3044  Fax: +3-3286-3920 http://www.furukawa.co.jp/english/ Export Control Regulations The products and/or technical information presented in this publication may be subject to the application of the Foreign Exchange and Foreign Trade Act and other related laws and regulations in Japan. In addition, the Export Administration Regulations (EAR) of the United States may be applicable. In cases where exporting or reexporting the products and/or technical information presented in this publication, customers are requested to follow the necessary procedures at their own responsibility and cost. Please contact the Ministry of Economy, Trade and Industry of Japan or the Department of Commerce of the United States for details about procedures.みんなで止めよう温暖化「古河電工」チーム・マイナス6 ※ This brochure is printed on FSC-accredited paper with pure plant oil ink, which contains no volatile organic composition and in a dry printing process that uses no water, th All company and product names featured in this report are trademarks, registered or otherwise, belonging to the relevant company.