Furukawa Electric : Integrated Report, Sustainability Book (2025en)

‌FURUKAWA ELECTRIC GROUP SUSTAINABILITY BOOK

2025

‌FURUKAWA ELECTRIC GROUP SUSTAINABILITY BOOK 2025

CONTENTS

Editorial Policy 3

Social

Furukawa Electric Group's Sustainability

Top Message 4

Corporate Philosophy Structure 7

Basic Approach to Sustainability 9

Material Issues 13

Value Creation Process 16

Indicators and Targets 18

Relationship with Stakeholders 19

Initiatives regarding ESG Management and Sustainability until Now 21

Contribution to the SDGs 25

Human Rights 71

Human Resources Management 76

Talent Acquisition and Development 84

Employee Engagement 90

Diversity & Inclusion 93

Promoting Women's Careers 98

Promoting Employment

of People with Disabilities 102

Work-style Reform 105

Occupational Health and Safety 109

Health and Productivity Management 112

Quality 119

Supply Chain 121

Local Community Contribution,

Social Contribution 125

Environment

Environmental Policy/

Medium- to Long-term Vision and Targets 28

Environmental Management 30

Performance Data 34

Our efforts on the products 38

Contribution to a Carbon-Free Society

Response to Climate Change 42

Information Disclosure Based

on the TCFD Recommendations 48

Governance

Corporate Governance 130

Risk Management 142

Compliance 147

Contribution to a Society in Harmony with Nature Chemical Substance Management 64

Biodiversity Conservation 66

Initiatives Based

on the TNFD Recommendations 69

External Evaluation and Certification 170

Participation in Initiatives 174

‌Editorial Policy

Furukawa Electric Group discloses important sustainability information (both financial and non-financial) that contributes to future value in its Annual Securities Report. Additionally, the Integrated Report targets investors as its primary audience and serves as a supplementary medium to the Annual Securities Report, conveying the value creation story in a more accessible manner.

In contrast, this Sustainability Book provides a comprehensive overview of the Group's sustainability information, focusing on

detailed ESG activities and various data, aimed at a diverse range of stakeholders.

We encourage you to use this Sustainability Book in conjunction with the Annual Securities Report and Integrated Report. We hope it will serve as a valuable resource for gaining a deeper understanding of the Furukawa Electric Group's commitment to sustainable growth and medium- to long-term enhancement of corporate value.

Other Reports

• Corporate Governance Report:https://www.furukawa.co.jp/en/company/governance.html

• Intellectual Property Report: https://www.furukawa.co.jp/en/rd/ip-report/

• Furukawa Electric Review:

https://www.furukawa.co.jp/en/rd/review/

Reference Guidelines

Scope and Coverage

ISO26000

GRI Standards

SASB Standards

Environmental Reporting Guidelines 2018

Period Covered: April 1, 2024 - March 31, 2025

(Some activities from before FY2024 or after April 2025 are also included.)

Organizations Covered: Furukawa Electric Co., Ltd. and its domestic and overseas group companies

(When reporting matters limited to specific regions or entities, the scope will be clearly specified.)

Publication Date: November 28, 2025

Editing and Publication

Furukawa Electric Co., Ltd

Corporate Sustainability Office, Strategy Division, Furukawa Electric Co., Ltd. Tokiwabashi Tower, 6-4, Otemachi 2-chome, Chiyoda-ku, Tokyo 100-8322, Japan

Inquiry form

https://inquiry-fec-form.spiral-site.com/encsr

‌Top Message

Leveraging our core technologies to promote Purpose-driven management

Originating in copper smelting and electric wire manufacturing, the Group has continued developing a diverse range of products. Over the years, we have added insulating materials for electric wires, optical fibers, and wireless technologies, leading to the establishment of four core technologies-metals, polymers, photonics, and high-frequency. With this technological foundation as a strength, we have continued growing our businesses in step with the changing times.

On the other hand, it is also true that this diverse range of business activities has made it difficult for people to understand what kind of company we are. Within this context, we established the Furukawa Electric Group Purpose in March 2024 to clearly define our reason for being. With our Purpose-"Composing the core of a brighter world"-at the core, we aim to evolve into an indispensable corporate group by promoting management that helps realize a truly prosperous and sustainable society.

We are also actively promoting awareness about our Purpose to ensure it forms the basis of our management. Internally, we held workshops to deepen awareness, understanding, and empathy for the Purpose. We are creating more opportunities for employees to embrace the Purpose as their own and to see how it connects to their daily work. We will continue to promote such initiatives going forward.

Achieving the 2025 Medium-term Plan and Vision 2030

Since FY2022, the Group has pursued initiatives under its Medium-term Management Plan 2022-2025 (2025 Mid-term Plan) aimed at enhancing corporate value over the medium to long term. In FY2022 and FY2023, we faced difficult external conditions, including sluggish automotive business performance caused by semiconductor shortages and a slowdown in the telecommunications carrier market, particularly in Europe and the United States. We also struggled to assess growth markets, which further compounded these difficulties. In contrast, FY2024 marked an important step toward achieving the targets of the 2025 Mid-term Plan. Revenue increased in both the Functional Products business-which includes data center-related products-and the Automotive Products business, while the Communications Solutions business restored its profitability. The data center market

is particularly strong. Our data center heat radiation and cooling systems have become key drivers of business growth.

In FY2025, the final year of the 2025 Mid-term Plan, we aim to not only firmly achieve our numerical targets but also lay the

strategic groundwork for the Furukawa Electric Group Vision 2030. We are rebuilding our business portfolio with a view to the future. We believe that these medium- to long-term actions will lead to further growth going forward.

Initiatives to maximize profits in existing businesses and create new businesses

We view our business portfolio not as something fixed but as a "dynamic" entity that we must continually review in response to changing external settings and social needs. Because optimal conditions change with circumstances, it is important to continually maintain an optimal state. To this end, we need to continuously generate new business opportunities while scaling down or withdrawing from product groups that have fulfilled their roles. To keep this cycle of renewal running in a healthy way, we have been working to build a management structure that balances the need for both "maximizing profits in existing businesses" and "building a foundation for creating new businesses" as stated under 2025 Medium-term Plan.

Maximizing profits in existing businesses

We place the highest priority on improving the profitability of optical fiber and cable and optical components in the Communications Solutions business. In April 2025, we reorganized the optical fiber and cable business, and the Communications Solutions business is showing improving profitability backed by steady demand related to data centers. Our challenge now is to firmly chart a path to growth as we look toward FY2026 and beyond.

Building a foundation for creating new businesses

We have positioned life sciences, laser applications, superconductors, and green LPG as priority domains, and our efforts are now beginning to deliver tangible results. To accelerate new business creation, we established the Social Design & New Business Development Department as a new organization and have been strengthening it. The Group, which had traditionally been strongly product- and technology-oriented, is now responding to social and market needs with technology through a market-driven approach. This shift has begun to generate and activate seeds of new businesses.

Strengthening the foundation for ESG management and leveraging intangible assets

Under the 2025 Medium-term Plan, we set "strengthening the foundation for ESG management" as a priority measure. To this end, we have sought to address climate change, strengthen human capital, and reinforce governance by transitioning to a company with an Audit & Supervisory Committee. Leveraging intangible assets is also critically important because such assets serve as a key driving force in promoting ESG management and transforming our business portfolio.

Visualize and utilize intellectual property

Because intangible assets are invisible, they are difficult to grasp, therefore making them "visible" is the first step toward their effective utilization. We are promoting the use of "IP landscaping" as one method of visualizing such assets. Visualizing intangible assets and using them as intellectual property or industrial property rights, such as patents, is not a new concept, and turning visualization into an effective strategy and maintaining and strengthening it to build a competitive advantage is not easy. This activity has no end and requires ongoing efforts. We regard it as an ongoing endeavor of "composing the core."

Advance human capital and corporate culture

It is the potential of people that supports sustainable corporate growth. In this sense, enhancing employee engagement is a major priority for management. We see our Purpose, mentioned at the outset, as a driver of employee engagement. By fostering a culture where individuals empathize with the Company's reason for being and its direction and can act proactively by leveraging their strengths, we aim to cultivate talent and build an environment where they can make a contribution.

I joined the Company as a process engineer at a time when optical fiber development was accelerating and demand was expanding. Within our open culture, I gained experience by identifying challenges independently and collaborating with colleagues to resolve them. Even before establishing its Purpose, the Group had long embraced a culture of trusting people and empowering them with responsibility. I believe that strengthening human resources requires developing people who can independently pursue their ambitions. Equally important are fostering open dialogue and creating an environment that encourages collaboration.

Practice execution-focused management to become a corporate group that consistently generates profits

I believe we need to clearly demonstrate our ability to continue generating profits in excess of capital costs, so that we can consistently create value as a corporation. To this end, we introduced an indicator called Furukawa Value Added (FVA), which serves as a gauge for deciding whether to continue, scale down, or withdraw from a business. Our FVA has now shifted into positive territory overall, giving us confidence that the initiatives undertaken so far are beginning to show numerical results.

In addition to discussions about capital efficiency, it is naturally important to take the simpler perspective of whether we are properly generating profits. Our current operating margin is still only 3%-4%, but we are working to raise it toward double digits. In terms of operating income, we first aim to consistently exceed ¥50 billion annually, with ¥100 billion also in our sights thereafter. We will become a resilient corporate group that consistently generates profits above a certain level. We have set this vision as our goal for 2030 and, above all, are driving execution-focused management that will make that goal fully achievable.

Please also refer to the Integrated Report 2025 for details.

October 2025

Furukawa Electric Group established the Furukawa Electric Group Purpose in March 2024 and reviewed the structure of the Group's Corporate Philosophy.

The Furukawa Electric Group Purpose (hereinafter, the "Purpose") is a statement of the Group's reason for being, which has been established to ensure that the Group is recognized by its diverse stakeholders as a corporate group that contributes to creating a truly prosperous and sustainable society, to serve as the basis for management decisions and to ensure that its employees continue to take on challenges with pride.

With the Purpose at the top of structure of the Group's corporate philosophy, it is composed of as follows: "Core Values," a set of values that each and every employee should value; "the Furukawa Electric Group Vision 2030," our ideal state in 2030; "the Medium-term Management Plan 2022-2025 (2025 Medium-term Plan)," a milestone for achieving the Vision 2030; and "the Furukawa Electric Group CSR Code of Conduct," which defines the basic code of conduct we should follow. Under this new philosophy structure, our Group will contribute to the realization of a sustainable society as a member of society that creates the future.

Furukawa Electric Group Purpose

Furukawa Electric Group Purpose

Core Values

Furukawa Electric Group Vision 2030

In order to build a sustainable world and make people's life safe, peaceful and rewarding, Furukawa Electric Group will create solutions for the new generation of global infrastructure combining information, energy and mobility.

Furukawa Electric Group Vision 2030

Medium-term Management Plan

Furukawa Electric Group Medium-term Management Plan 2022-2025 (2025 Medium-term Plan)

Furukawa Electric Group CSR Code of Conduct

Revised June 2025

1.Human rights

6.Fair competition

2.Labor practices

7.Relations with customers, partners, and society

3.Environment

8.Management and preservation of Company assets

4.Products and services

9.Disclosure of information

5.International businesses and transactions

10.Duties and obligations of senior management and

employees

The Furukawa Electric Group CSR Code of Conduct

Basic Policy on Sustainability

Under the Furukawa Electric Group Purpose, we are implementing initiatives aimed at achieving Vision 2030, with the goal of realizing sustainable growth and enhancing the Group's corporate value over the medium to long term. We have also established this fundamental approach as the Furukawa Electric Group Basic Policy on Sustainability.

Furukawa Electric Group Basic Policy on Sustainability （Revised in April 2024）

Furukawa Electric Group will:

tackle important management issues, or material issues, from the perspectives of both revenue opportunities and risks based on the Furukawa Electric Group Purpose, thereby aiming for sustainable growth and contributing to the achievement of the SDGs (Sustainable Development Goals).

continue to transform its business through constant innovation based on our technological prowess and proposal capability as well as co-creation with diverse stakeholders, while focusing on capital efficiency, in order to strengthen and create businesses that solve social issues.

contribute to the sustainable development of society by maintaining and improving sound and positive relationships with all stakeholders through appropriate information disclosure and active communication, while complying with laws, regulations, social norms and ethics in Japan and overseas.

Governance Promotion System

The Group has established the Sustainability Committee to consolidate discussions on sustainability within Furukawa Electric Group and further enhance the quality and speed of implementation thereof. Sustainability Committee, chaired by the President, vice-chaired by the General Manager of Strategy Division, and composed of members of top management, deliberates on issues on sustainability within Furukawa Electric Group, including sustainability-related basic policy, basic matters on material issues related to revenue opportunities and risks, and disclosure of basic information related to sustainability; checks on progress on such matters; and submits proposals and reports to the Board of Directors. The Corporate Sustainability Office serves as the secretariat, and the committee will generally meet twice a year. As risk-related material issues are closely related to management strategy risks of Furukawa Electric Group, they are therefore handled in collaboration with Risk Management Committee.

The status of operations related to sustainability, including climate change, human capital, and intellectual property, is reported and shared to the Board of Directors on a quarterly basis. The agenda for the Sustainability Committee and the Management Committee is set based on, amongst other things, the results of the evaluation of the effectiveness of the Board of Directors and feedback from shareholders and institutional investors.

Sustainability Promotion System

＜Key Discussions on Sustainability within Furukawa Electric Group (FEG)＞

The Remuneration System for Directors - ESG-linked Remuneration

In the Company's executive remuneration system, we have introduced ESG-linked remuneration for Directors, etc., other than Outside Directors, with the aim of more directly reflecting the results of initiatives toward ESG-related matters.

The elements of remuneration include base salary, short-term performance-linked remuneration (individual), short-term

performance-linked remuneration (company level), ESG-linked remuneration, and medium-to-long-term performance-linked remuneration. The ESG-linked remuneration is based on the achievement status of sustainability targets in the material issues of the Group. When the total of the standard remuneration levels set for each remuneration element is 100%, the proportion of the ESG-linked remuneration to the total remuneration is set at 2-3% depending on the post.

In FY2024, the evaluation item was set as the achievement of FY2023 targets concerning "GHG emissions reduction rate (Scopes 1&2)"-a 21.2% reduction compared with FY2017. The evaluation metrics used to determine ESG-linked remuneration are periodically confirmed and reviewed by the Nominating/Compensation Committee. From FY2025, the "employee engagement score" will be added to the evaluation items.

Corporate Governance

Risk Management

In the 2025 Medium-term Plan, the Group has set sustainability indicators (KPIs) and sustainability targets for FY2025 to realize our ideal state in FY2025 in each material issue.

The handling status of material issues on revenue opportunities and risks and the progress on sustainability indicators are reported and shared to the Board of Directors and Sustainability Committee semiannually. In addition, the General Manager of the Corporate Sustainability Office regularly (twice a year in principle) holds a dialogue on the progress of material issues and sustainability indicators, the validity of sustainability indicators and targets, and other issues with each division in charge, and encourages a division that is not expected to meet the target to set and implement handling measures and improvement measures.

Material Issues

Sustainability Indicators and Targets

Integration into the company-wide management strategy (under 2025 Medium-term Plan) and company-wide risk management

We have also steadily advanced initiatives to integrate sustainability-related opportunities and risks into the Group's overall management strategy and enterprise risk management.

Establishment of the Business Portfolio Review Committee

We established the Business Portfolio Review Committee as an organization to promote the transformation of the business portfolio with an emphasis on capital efficiency since FY2022. Business Portfolio Review Committee, composed of the General Manager of Strategy Division (chaired), the General Manager of Finance & Accounting Division (vice-chaired), and the General Manager of Global Marketing Sales Division. This committee deliberates key matters related to the transformation of our business portfolio, including the positioning of each business under the 2025 Medium-Term Plan, and reports or makes proposals to the Management Committee. The General Manager of Corporate Planning Department serves as the secretariat/organizer, and the committee generally meets three times a year.

Introduction of Management Indicators (ROIC, FVA)

In order to promote management that emphasizes capital efficiency, we have introduced return on invested capital (ROIC) and Furukawa Value Added (FVA* ) as management indicators to evaluate each business starting in 2022. Toward optimizing the business portfolio, we assess the current positioning of each business based on growth potential (average sales growth rate) and profitability (ROIC spread), and further consider future growth potential, competitiveness, and carbon efficiency (GHG emissions per unit of sales) to swiftly take necessary actions, such as exploring growth opportunities (including M&A) and determining whether or not to withdraw from certain businesses. Furthermore, to calculate the cost of FVA for each business, we have also incorporated ESG factors such as "climate change" and "human rights and labor practices" in addition to financial factors. FVA of each business is reviewed and revised annually and reported to the Management Committee, where it is utilized for business portfolio optimization and allocation of management resources.

* Furukawa Value Added (FVA): EVA was customized for our company and introduced as an internal management indicator.

Establishment of Company-wide Risk Management System

As for the Group-wide risk management, we have established the Risk Management Committee, which comprises senior management as members, with the President as chair and the General Manager of the Risk Management Division as vice chair. The committee is structured to deliberate on, supervise and promote risk management, internal control and compliance. Each department responsible for risk items, including those identified as risk-related material issues, submits a semi-annual report to the Risk Management Committee outlining its annual action plans and actual activities. The Risk Management Committee evaluates whether appropriate risk controls are being implemented and provides guidance as necessary.

Risk Management

Related Data

The Furukawa Electric Group CSR Code of Conduct

Furukawa Electric Group's ESG Management and Material Issues

In order to achieve Furukawa Electric Group's Vision 2030, we are promoting ESG management, which aims sustainable growth of the Group and medium- to long-term growth of corporate value.

We have defined material issues* as important management issues that the Group should address in order to achieve the Vision 2030, and we defined material issues in terms of both revenue opportunities and risks, in accordance with the process of identifying material issues as mentioned below. We aim to achieve the Vision 2030 by working on the material issues we have identified, considering that addressing the material issues in terms of revenue opportunities help improve capital efficiency whereas addressing the material issues on risks help reduce the cost of capital. We will also contribute to the achievement of the SDGs, which are closely related to the material issues.

* In Furukawa Electric Group's ESG management, "material issues" are defined as important management issues that Furukawa Electric Group must address in order to achieve the Vision 2030, and are used as a term with a meaning different from those used in the finance and accounting context, which are issues that may have an impact on business performance, financial position, etc.

Identifying Material Issues

From the perspective of revenue opportunities, in order to help solve various social issues through the business activities of Furukawa Electric Group, we found it indispensable to devise a transformation from the emphasis on "product-out" to the "market-in" and further to the "outside-in" approach, and identified the "Creating of businesses that solve social issues" as a material issue. Examples of these include the "Creating of businesses that support the next-generation infrastructure," which will serve as the foundation of the society anticipated in the Vision 2030, and the "Creating of environment-friendly businesses," which contribute to the realization of a carbon-free society and a recycling-based society. We are focusing on the two kinds of examples as sub-material issues of the material issues on revenue opportunities. In addition, we have identified as material issues the slogan "Open, Agile, Innovative," which reflects the desire to become a company that actively transforms itself and the creation of continuous innovation through utilizing intellectual property and other measures, and the "Building partnerships with various stakeholders," focusing on co-creation with others, as key management issues toward creating businesses that solve social issues.

On the other hand, from a risk perspective, in order to achieve sustainable growth, it is essential that companies develop business

activities that take into account climate change, and we see this as a material issue for environment (E) risks. In addition, in order to become a company that actively transforms itself, we set the "strengthening human capital and organizational execution abilities" as a material issue for social (S) risks. As for material issues of governance (G) risks, we focus on "building a governance system to strengthen risk management" including corporate governance, group governance, supply chain management as well as human rights and labor practices as sub-material issues.

Process of Identifying Material Issues

Identification and review of material issues was conducted through a process of Step 1 through Step 3. First, in Step 1, we identified social issues by referring to "external factors" and "internal factors," adjusted duplicate items, and created a list of items (currently organized into 29 items). In Step 2, the two axes of "importance to shareholders and investors" and "importance to achieving the Vision 2030" are evaluated for importance (high, medium, low) and prioritized. In Step 3, high-priority items are identified as material issues. The identified material issues are categorized by revenue opportunity and risk aspects and rearranged as important issues for achieving the Vision 2030, and expressed as the material issues in terms of revenue opportunities and the material issues in terms of the E (Environmental), S (Social) and G (Governance) risks.

Value Creation Process Directed at Achieving the Vision 2030

Furukawa Electric Group conducts corporate activities based on the Furukawa Electric Group Purpose, the Core Values, and the Furukawa Electric Group CSR Code of Conduct. We are implementing the Medium-term Management Plan 2022-2025 (the "2025 Medium-term Plan"), formulated with a forward-looking approach toward achieving our ideal state for 2025, a milestone defined through backcasting from the Furukawa Electric Group Vision 2030, which outlines our ideal state in 2030.

The 2025 Medium-term Plan defines our ideal state in FY2025 for each identified material issue, formulated measures to realize

them, and set sustainability indicators/targets to measure the progress. For realizing sustainable growth of Furukawa Electric Group and medium- to long-term growth of corporate value, we will strengthen and create businesses mindful of capital efficiency and strengthen the management foundation directed at reducing capital costs.

Furukawa Electric Group's Strengths and Business Model

Furukawa Electric Group has enhanced capabilities for development and making proposals, without being limited to specific markets and with its four core technologies-metals, polymers, photonics and high-frequency-centered on capabilities to handle materials. Through these capabilities, we have gained the trust of customers. In an "Open, Agile, Innovative" manner, we will promote to build a new business model by enhancing our strengths, including utilization of intellectual property, and co-creating with our partners.

Revenue Opportunities（Strengthen and Create Businesses）

Toward 2025, we are stabilizing earnings in the information, energy, and mobility sectors, and are growing through the strengthening of businesses that solve social issues, thereby contributing to a society combining information, energy and mobility. To achieve the goals of the "2025 Medium-term Plan" (the "2025 Medium-term Plan"), we are optimizing investment allocation for each business's profit expansion from the perspectives of profitability, growth potential, and other factors, while accelerating business management and decision-making, including a review of our business portfolio, with a stronger focus on capital costs. In addition, toward 2030, we realize a leap through creating of businesses that solve the social issues including the "creating of businesses that support the next-generation infrastructure," which would serve as the foundation of the integrated society of the Vision 2030, and the "creation of environment-friendly businesses," which contributes to the realization of carbon neutrality and a circular economy.

Risks（Strengthen the Management Foundation）

As for "developing business activities that consider climate change," we formulate a climate transition plan which is a series of targets and actions to support the transition to a low-carbon economy. Based on the plan, we will accelerate initiatives toward the carbon neutrality.

As for "strengthening of human capital and organizational execution abilities, we will strengthen our efforts of human capital management not only through activities to instill the Purpose, but also based on the Furukawa Electric Group People Vision-a shared belief on human capital at both Group and global levels.

As for "Building a governance system to strengthen risk management," we will strengthen the initiatives related to not only the Furukawa Electric Group's overall risk management, but also human rights management including supply chain management.

Furukawa Electric Group Vision 2030

Furukawa Electric Group Medium-term Management Plan 2022~2025（2025 Mid-term Plan）

‌Indicators and Targets

Sustainability Indicators and Targets

In order to achieve Furukawa Electric Group's Vision 2030 and Medium-term Management Plan 2022-2025 (the "2025 Medium-term Plan"), we set sustainability indicators and targets in each material issue, and aim to increase corporate value in terms of both revenue opportunities and risks.

*1 This means that all projects have been implemented with respect to the business enhancement and new business creation themes set as of 2022.

*2 The target was achieved ahead of schedule in FY2024. In FY2025, we will shift our focus to applying the results in specific business activities.

*3 Base year in and after FY2024 was updated to FY2021; the reduction target value when applied to the former base year of FY2017 is also shown for reference purposes.

*4 The scope was expanded to cover all group companies in Japan and abroad in FY2023, and the target was changed from Furukawa Electric's target to Furukawa Electric Group's target.

*5 New hires represent new graduates and mid-career hires, covering managerial positions, career-track, and clerical positions.

*6 This means that about 30% will be maintained in each fiscal year.

*7 This means that 100% globally for each fiscal year will be continued.

‌Relationship with Stakeholders

Relationship Between Stakeholders and Material Issues

Furukawa Electric Group aims to achieve sustainable growth of Furukawa Electric Group and medium- to long-term growth of corporate value through collaboration with various stakeholders. In addition, through appropriate information disclosure and proactive communication, we will maintain and improve sound and positive relationships with all stakeholders, and contribute to the sustainable development of society.

This page summarizes Furukawa Electric Group's initiatives regarding sustainability to date as it promotes ESG management.

ESG Management in General

*1 Combined the FEG Action Guidelines (formulated in 2004) with the CSR Code of Conduct

*2 Corporate Philosophy of the Group Philosophy is included in the Purpose, and Management Philosophy is consolidated into Core Values.

Governance

*3 Aimed for supervising execution by the management, including the President, from a non-executive position

Social

Environment

SDGs and the Furukawa Electric Group Vision 2030

The DNA of the Group is based on the words of the founder Mr. Ichibei Furukawa: "Value employees, value customers, value new technology, and contribute to society." We believe this philosophy aligns with the Sustainable Development Goals (SDGs) adopted by the United Nations and ESG management. With these thoughts of the founder and the SDGs in mind, we have formulated the Furukawa Electric Group Vision 2030. Vision 2030 shows the ideal state of the Group in 2030 when the SDGs are achieved, considering that we aim to solve international and regional social issues associated with the Group. By tackling the key management issues (material issues) that the Group must address, the Furukawa Electric Group aims to achieve Vision 2030 while contributing to the achievement of the SDGs.

Furukawa Electric Group's ESG Management and Material Issues

Consideration of SDGs Priority Issues Based on Value Chain Mapping

We proceed and identify what SDGs we should focus on to deal with. In order to do that, we examine which part our current major products contribute to the 17 goals and 169 targets of the SDGs using the value chain mapping of the SDG Compass. Here are some examples of the results of identification with significant impacts or distinctive characteristics.

Infrastructure/Information and communication Solutions - Optical Fiber and Cable

〈Increasing positive impacts〉

Optical fiber and cable products will contribute to the development and expansion of sustainable and robust communication infrastructure, as well as safe and resilient urban development, in light of the progress of 5G technology and the further increase in communication traffic caused by the COVID-19 crisis.

〈Minimizing negative impacts〉

As we recognize that reducing greenhouse gas (GHG) emissions in the manufacturing process is an important issue, we promote various measures such as energy saving at manufacturing plants.

Infrastructure/Energy Infrastructure - Submarine Power Transmission Cables for Offshore Wind Power Generation

〈Increasing positive impacts〉

We will contribute to the realization of a decarbonized society by supplying and laying submarine and underground cables, which are indispensable for building interconnections between renewable energy power sources such as offshore wind power generation and power grids.

〈Minimizing negative impacts〉

In the process of laying submarine cables, we take care to minimize the impact on the marine environment.

Electrical Equipment & Electronics/Automotive Parts - Aluminum Wire Harnesses

〈Increasing positive impacts〉

The use of wire harnesses that use aluminum wires, which are lighter than copper, contributes to the realization of a decarbonized society by reducing the weight of automobiles and improving energy consumption through an improvement in fuel efficiency.

〈Minimizing negative impacts〉

With regard to energy use in the manufacturing process, we promote an improvement in the ratio of renewable energy use, in addition to energy saving at manufacturing plants.

Electrical Equipment & Electronics/Electrical Equipment & Electronics Materials - Oxygen-Free Copper Wire

〈Increasing positive impacts〉

Oxygen-free copper wire is used in drive motors for electric and hybrid vehicles. The use of this product improves the efficiency of clean energy utilization and contributes to the realization of a decarbonized society.

〈Minimizing negative impacts〉

In the manufacturing process, we increase the percentage of recycled copper and make effective use of natural resources.

Functional Products - Thermal products

〈Increasing positive impacts〉

Thermal products with high-performance heat dissipation and cooling mechanisms improve the efficiency of energy consumption and reduce running costs at data centers. This is one of the applications of these products and the positive impact in terms of power consumption has attracted worldwide attention. They also contribute to high-speed and high-capacity communication.

〈Minimizing negative impacts〉

With regard to energy use in the manufacturing process, we promote an improvement in energy saving and the ratio of renewable energy use at manufacturing subsidiaries.

Working with Local Communities to Achieve SDGs

Furukawa Electric promotes the following initiatives.

Registration with the Japanese Cabinet Office's "Public-Private Partnership Platform for Local SDGs"

Registration as the Tochigi Prefecture SDGs Promotion Company

Registration as the Kanagawa Prefecture SDGs Partner

Registration as the Mie Prefecture SDGs Partner

Furukawa Electric Group Basic Environmental Policy

Basic Philosophy

We, the employees of the Furukawa Electric Group, recognize that conservation of the global environment is a serious issue confronting the international community, and we pledge to contribute to a sustainable future for the world through technological innovation that utilizes our strength in advanced materials.

Action Guidelines

1. We shall comply with environmental laws and regulations as well as the demands of our customers and others, setting ever higher environmental targets as we continuously improve our global environmental conservation efforts.

2. We shall strive to develop products that are friendly to the Earth, and create new environmental businesses.

3. We shall strive to reduce environmental risk by incorporating anti-climate change and resource conservation/recycling considerations, as well as a reduction in the use of environmental impact-causing substances, across the entire product lifecycle.

4. We shall evaluate the ecological impact of all of our businesses, and strive for the conservation of biodiversity and sustainable use of resources.

5. We will seek harmony with the natural environment and local communities through dialogue with our stakeholders.

‌Furukawa Electric Group Environmental Vision 2050

Furukawa Electric Group has established the Furukawa Electric Group Environmental Vision 2050, which looks ahead to the year 2050, in order to recognize long-term environmental issues and promote initiatives to solve them. (established in February 2021, partially revised in November 2024)

Environmental Vision 2050

Through the provision of environmentally friendly products and services and recycling-based production activities, contribute to the realization of a sustainable society throughout the value chain.

Contribute to realizing a carbon-free society

Aiming for net zero greenhouse gas emissions across its entire value chain

Contribute to realizing a recycling-based society for water & resources

Minimize water usage, and promote the use of recycled materials, including waste plastic, throughout the value chain

Contribute to society in harmony with nature

Minimize the impact on ecosystems through value chain management that includes raw materials

Environmental Targets 2030

Furukawa Electric Group set Environmental Targets 2030 and makes efforts to contribute to a carbon-free society, a recycling-based society for water and resources, and a society in harmony with nature. In order to accelerate our efforts to achieve the Environmental Vision 2050, the Group raised our 2030 target to the SBT 1.5°C in November 2022 as the contribution to a carbon free society.

Environmental Targets 2030

1. Contribute to a carbon-free society

   1. Greenhouse gas emissions from business activities (Scope 1 & Scope 2): Reduce by at least 42% compared to FY2021

   2. Greenhouse gas emissions in the value chain (Scope 3): Reduce by at least 25% compared to FY2021

2. Contribute to realizing a recycling-based society for water and resources/Contribute to society in harmony with nature

   1. Efficient use of water resource

      ・Water usage: Reduce by at least 10% compared to FY2020 (per unit of net sales)

   2. Efficient use of metals and plastics

・New material*1 consumption: Reduce by at least 10% compared to FY2020 (per unit of net sales)

・Single-use plastic*2 consumption: Reduce by at least 25% compared to FY2020 (total volume)

Note: SBT*3 1.5°C certification was obtained for 1 (1) and (2) in July, 2023.

*1 New material: virgin materials for electrolytic copper, new aluminum ingots, and plastics, etc.

*2 Single-use plastic: disposable plastics used in containers, plastic bags, etc.

*3 SBT: Science Based Target

Promotion System

Furukawa Electric Group has established the Furukawa Electric Group Environmental Committee to deliberate, decide, promote, evaluate, and provide instructions for improvement on matters related to environmental conservation activities. The committee is chaired by the General Manager of the Risk Management Division and its members consist of the general managers of each business division and each corporate division, who are members of the management. The progress is reported quarterly to the Board of Directors.

Furthermore, in order to facilitate smooth decision-making on environmental conservation activities, we have established the Subcommittee of Environmental Managers, consisting of the environmental managers of each business division and corporate division, to discuss environmental issues cross-departmentally and specifically.

Scope of the environmental management

Environmental Management Promotion System

ISO14001 Certification Status (as of June 2025)

The Group has been working on activities to achieve environmental targets while establishing an environmental management system at each site. As part of these efforts, domestic and overseas production sites have acquired the international standard ISO14001 certification.

Domestic: 100% (all 6 Works of Furukawa Electric, all 23 domestic group companies)

Overseas: 77% (34 out of 44 overseas group companies)

ISO 14001-certified Sites

Targets

Furukawa Electric Group set Environmental Vision 2050 and Environmental Targets 2030 and makes efforts to contribute to a carbon-free society, a recycling based society for water and resources, and a society in harmony with nature.

Furukawa Electric Group Environmental Vision 2050, Environmental Targets 2030

Results of Environmental Activities