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Furukawa Electric Group Sustainability Report 2016 Editorial Policy Furukawa Electric Group Sustainability Report 2016 Editorial Policy This report aims to inform all stakeholders about the philosophy and measures of Furukawa Electric Group in relation to its business activities, management, the environment and its relationship with society. Our goal is to report on our CSR philosophy and efforts and gain the understanding of our stakeholders. Scope of This Report Accuracy of the Data Disclosed in This Report In order to maintain accuracy in data disclosure, the information Period Covered provided in this report has been vetted by the divisions in charge of Fiscal 2015, from April 1, 2015 to March 31, 2016 the relevant information, the Investor & Public Relations Department (note) I ncludes selected information on past initiatives and and the CSR Department, which is in charge of editing this report. activities during fiscal 2016. We have also provided a third-party opinion so as to offer the point of view of an outside expert. Organizations Covered This report covers Furukawa Electric Co., Ltd. and group Information Disclosure System companies in Japan and overseas. Where activities are Furukawa Electric is fully aware that the timely and appropriate limited to specific regions or companies, this fact has disclosure of corporate information to investors is essential to a been clearly indicated in the reporting. healthy stock market. We take a serious approach to providing timely and appropriate corporate information to investors, including through the development of internal systems that allow us to Publication Timeframe disclose rapid, accurate and fair corporate information in a way that Publication date: September 14, 2016 always keeps investors’ perspective in mind. Planned publication of next edition: September 2017 Moreover, in order to increase the understanding of all stakeholders in respect to our company, we try to provide information through a variety of media, including non-financial information. Editing and Publication C SR Department, Administration & CSR Division, Furukawa Electric Co., Ltd. Non-financial Financial M arunouchi Nakadori Bldg., 2-3, Marunouchi 2-chome, - IR website Chiyoda-ku, Tokyo 100-8322, Japan - CSR website - Financial statements - Sustainability reports - Securities reports/Quarterly - Corporate governance reports reports - Summary of accounts, etc. Sustainability Report https://www.furukawa.co.jp/en/csr/report/ 2 FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016 History of Furukawa Electric's CSR Activities 1972 Companywide Rules for Pollution Prevention formulated 2008 Furukawa Electric Basic Policy on Pandemic Influenza Preparedness formulated 1974 Environmental Control Department established Compliance pledge introduced Energy Conservation Team established e-Friendly mark (environmentally harmonious product) certification 1989 Team for Reduction in Use of Specified CFCs established system started 1992 Anti-Monopoly Act Guidelines issued 2009 Furukawa Electric Group Green Procurement Activity Guidelines published 1993 Basic Framework for Protecting the Global Environment formulated Basic Policy on BCM (Business Continuity Management) formulated (Furukawa Electric's voluntary environmental preservation plan) Compliance awareness survey covering all employees conducted A CSR award newly established as a part of the Outstanding Affiliated 1996 Use of specified CFCs and trichloroethane discontinued Company Awards 1997 Team for Promotion of Reduction in Industrial Waste established Medium-term management plan, New Frontier 2012, formulated 1998 Furukawa Electric Basic Environmental Policy formulated 2010 Acquisition of ISO 14001 certification commenced CSR Deployment Guideline for Business Partners issued Companywide Regulations for Pollution Prevention revised to create “Heart-to-heart communication between president and employees” and the Companywide Regulations for Environmental Management “Compliance Roundtables” initiated Compliance Months introduced 2000 First Environmental Report published Compliance awareness surveys for affiliated companies conducted 2001 Environmental accounting started Information security and personal information protection months introduced Zero-emissions activities commenced 2011 Furukawa Electric Group Basic Policy on CSR revised 2002 Anti-Monopoly Law manual published ¥250 million donated for reconstruction support for the region affected Furukawa Survival Plan announced 2003 by the Great East Japan Earthquake (Groupwide) Executive Officer System introduced Furukawa Electric Group CSR Code of Conduct revised, and Furukawa Furukawa Electric Basic Environmental Policy revised Electric Group Action Guidelines accordingly eliminated Company system and chief officer system introduced 2004 Competition Laws Compliance Guide published Furukawa Electric Group Action Guidelines formulated 2012 BCAO Award 2011, the “Award for Practical Excellence”, received from the Furukawa New Leaf established as a special subsidiary offering Business Continuity Advancement Organization (BCAO) employment to people with disabilities Report name revised to Sustainability Report and issued Internal reporting system introduced and internal and external reporting 2005 Furukawa Electric Group Anti-Bribery Statement and Bribery Prevention desks established Guide formulated Compliance Handbook published 2013 Medium-term management plan, Furukawa G Plan 2015, announced Medium-term management plan Innovation 09 announced 2006 Transitioned from company system and chief officer system to a system Report published under the revised title “Environmental and Social of strategic business units and head office divisions Report” Administration & CSR Division inaugurated 2007 CSR Division established 2014 One domestic SBU conducted EICC audit Chief Social Responsibility Officer (CSRO) appointed Implementation of private sector training for public school teachers Report published under the revised title “CSR Report” Jointly conducted employee awareness surveys with Group companies Corporate philosophy and corporate message of the Furukawa Electric in Japan Group formulated Published 2nd edition of competition law compliance guide (Japanese, 2008 Furukawa Electric Basic Environmental Policy formulated English and Chinese common edition) Furukawa Electric Group Basic Policy on Social Contribution Activities Began compliance education for local employees of Chinese affiliate formulated companies 2015 Visiting elementary school to give classes Contents 02 Editorial Policy 26 Stakeholder Relations 03 History of Furukawa Electric's CSR Activities 28 Risk Management 03 Contents 30 Compliance 04 Group Profile 32 Initiatives for Society 32 Relations with Our Customers 06 Top Message 34 Relations with Business Partners 36 Relations with Shareholders Special Feature 1 08 38 Relations with Employees Laying the Foundation for the Future of 44 Relations with Communities Renewable Energy 48 Initiatives for Environment Special Feature 2 10 Environmental Management / Material Flow/ Contributing on a Global Scale with Targets and Performance of Environmental/ Furukawa Electric Group’s Infrastructure Conservation Activities / Business and Green Products Environmentally Friendly Products / Preventing Global Warming/Reducing Waste / 1 2 Financial and Non-financial Highlights Water Resources / Chemical Substance Management / Environmental Risk Management / 1 4 Business Report Biodiversity Conservation Telecommunications / Energy and Industrial Products / Electronics and Automotive Systems / Metals / R&D 58 Third-Party Opinion 2 0 Management 59 List of all applicable companies 20 Corporate Governance 24 CSR Management FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016 3 Group Profile Company Profile Percentage of net sales by segment Company Name Furukawa Electric Co., Ltd. Services and Others 5.7 % 54.2 Billion yen Telecommunications President Mitsuyoshi Shibata 16.8 % Metals Founded 1884 159.2 Billion yen 12.9 % Total Established 1896 122.4 Billion yen 874.9 Energy and (note) Paid-in Capital ¥69,395 million Billion yen Industrial Products Electronics and (As of March 31, 2016) Automotive Systems 29.7 % 34.9 % 281.3 Billion yen Net sales ¥874,879 million (Consolidated) 331.1 Billion yen (Years ended March 31, 2016) ¥398,851 million (note) Figures excludes intersegment transactions (Non-Consolidated) Number of Employees 49,826 (Consolidated) Percentage of overseas sales (As of March 31, 2016) 3,232 (Non-Consolidated) South-East Asia, Korea, Overseas (Total) 46.3% Head Office M arunouchi Nakadori Bldg., 2-3, Taiwan, India 19.0% Marunouchi 2-chome, Chiyoda- China 10.3% ku, Tokyo 100-8322, Japan North America 8.5％ TEL. +81-3-3286-3001 Japan 53.7% Others 8.5％ Major Products and Services Telecommunications Metals Optical fiber cables / Metal communication Copper and copper alloy products cables / Semiconductor optical devices / (plates, strips, pipes, rods, foils, and Fusion Splicer / Electronic appliance wires wires) / Functional surface products / Optical components / Network (plating)/ Electrodeposited copper foil / equipment / Optical fiber cable Processed products for electronic accessories and installations / LAN Cable parts / Superconducting products / / LAN Solution Systems / CATV system / Special metal materials (Shape- Radio products, etc. memory and super-elastic alloys), etc. Energy and Industrial Products Services and Others Copper wires and Aluminum wires / Power Logistics / Information processing transmission cable / Insulated wires / Power service / Software development / transmission
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