CSR Basic Principles

Fujikura Group 's Corporate Philosophy MVCV states, "Fujikura Group creates value for customer and contributes to society through its "Tsunagu" Technology™," and bases its sustainability activities on ISO 26000, the international standard for social responsibility.

Fujikura Group 's CSR Philosophy, Basic Principle, and Activity guidelines

Fujikura Group CSR Philosophy

Fujikura Group believes that the corporate social responsibilities the Group should follow are comprised of activities required for sustainable corporate management and activities for the establishment of a sustainable society, based on Fujikura Group's Corporate Philosophy (MVCV).

Fujikura Group CSR Basic Principles

フジクラグループは、「社会」から成長・発展を望まれ、期待される企業となるため、"つなぐ"テクノロジー™を通じて、人、社会、地球環境の豊かな未来への架け橋となることを目指します。そのために私たちは、企業活動のあらゆる面において社会的責任を果すために4つの重点分野を定め、各国・各地域の法令・国際的なルールとその精神を遵守すると共に、社員一人ひとりが「社会」の一員として自分達の役割を自覚し、社会的良識をもって行動します。

[Four Focus Areas]

Sincere corporate activities
Concern for the environment
Respect for people
In harmony with society

Fujikura Group Activity Guideline

1. Sincere Corporate Activities
1. (1) We conduct corporate activities sincerely, complying with all relevant laws and regulations in the various counties and regions we operate in good faith. We conduct ourselves with a sense of ethics and social decency, recognizing ourselves as members of society.
2. (2) We work on maintaining and improving customer satisfaction by providing useful, safe and high-quality products and solutions from the viewpoint of customers.
3. (3) We conduct fair and transparent transactions in free and open competition.
4. (4) We maintain a healthy and normal relationship with politics, governments, citizens and various organizations.
5. (5) We manage and protect thoroughly information related to the Fujikura Group and its customers.
2.Consideration of the Environment
1. (6) We set voluntary management standards and work on maintaining and improving them, while complying with environmental regulations of the various countries and regions we operate in.
2. (7) We promote reducing our environmental burden in all business activities ranging from developing, designing, procuring, manufacturing, constructing to selling, distributing and disposing products, aiming to develop a sustainable society in harmony with the global environment.
3. (8) We promote environmentally friendly technological innovations and manufacture environmentally friendly products, while providing customers with information on appropriate ways of use, recycling and disposal of products.
4. (9) We contribute to society widely, actively participating in environmental preservation activities in the various countries and regions we operate in.
5. (10) We work on preserving the ecosystems, recognizing the importance of biodiversity in the global environment.
3.Respect for Human Beings
1. (11) We secure the safety of all people involved in corporate activities of the Fujikura Group to maintain and improve the working environment.
2. (12) We aim to create a comfortable workplace, where all employees can fully demonstrate their initiatives and creativity, without discrimination.
3. (13) We work on providing employees with opportunities equally and do all we can to assist them in maintaining their work-life balance.
4. (14) We respect the rights of all people and never allow human rights violation, including forced labor and child labor.
4.In Harmony with Society
1. (15) We make social contribution actively, respecting the cultures and customs of the various countries and regions we operate in.
2. (16) We work on maintaining and developing healthy relationship with all stakeholders by broadly communicating with them.
3. (17) We disclose corporate information actively on a timely and appropriate basis.

Sustainability Management System

Since fiscal 2009, Fujikura Group has been promoting CSR under a management system centered around Fujikura Group CSR committee.
In recent years, as society has increasingly called for action on climate change, and ESG investment by institutional investors has become mainstream, it has become increasingly important for corporate activities to not only fulfill corporate social responsibility (CSR), but also to aim for sustainable growth (sustainability) based on ESG activities.
In order to incorporate this ESG perspective into our management plans and achieve increased corporate value and sustainable growth (sustainability), we have established a new Sustainability Promotion committee (hereinafter referred to as the "committee"), an extension of our previous CSR committee. We are promoting the development of sustainability governance in accordance with Internal rule. The committee reports, discusses, and shares information to formulate sustainability strategy that incorporate ESG perspectives as requested by stakeholder and monitor and supervise the execution of those strategies. committee is chaired by Director, President and CEO and is comprised of directors (excluding some directors and outside officers) and Corporate Officer.

Views on Sustainability Targets 2025

フジクラグループは、グループ経営理念MVCVに基づき、サステナビリティ実現のためには「持続可能な企業経営」のために必要とされる活動と、「持続可能な社会」の構築に役立つ活動の両輪が必要と考えています。
これまでは、環境・社会マテリアリティとして5か年のCSR重点方策2020（2015〜2020年度）を定め、各方策を関係部門と連携しながら推進してきました。しかし、目標設定時より社会の変化が早く、抜本的な見直しが必要となりました。そこで2021年度から始まる新たな5か年のサステナビリティ目標2025（2021〜2025年度）では、環境・社会マテリアリティを踏まえつつ、財務マテリアリティの視点も加味した目標設定としました。また、フジクラグループが定める長期ビジョン（2030年ビジョンやフジクラグループ環境長期ビジョン2050）と連動させることで、より将来を見据えた目標にしました。
サステナビリティ目標2025は、サステナビリティ推進委員会（旧サステナビリティ戦略会議）で審議・承認を得ました。

Sustainability Goal Setting Process

Introducing double materiality perspectives

サステナビリティ目標2025の設定にあたり、CSR重点方策2020の結果を検証するとともに、最新トレンドを踏まえ新たに盛り込むべき観点を整理しました。最新トレンドの把握では、国内外の社会課題や国際的なガイドライン、ESG評価機関の評価項目やステークホルダーからの声を参考にしました。
また、サステナビリティ目標2025ではESGの観点にF（財務・将来）を加え、環境・社会が企業業績に与える影響を新たに盛り込むとともに、2030年ビジョンなどフジクラの長期ビジョンの達成を考慮しました。

Formulation of a materiality matrix

フジクラグループは、「フジクラグループCSR基本方針｣と「4つの重点課題」をベースに、サステナビリティ目標2025のテーマを定めるためにマテリアリティマップを策定しました。これは、ステークホルダーインクルーシブを念頭に「マテリアリティマップ分析」を行い、「ステークホルダーの関心事」と「フジクラ事業への影響度」の2つの視点から評価・検証を行いました。
その結果、F（財務・将来）で3項目、E（環境）で5項目、S（社会）で3項目、G（ガバナンス）で5項目設定し、2025年度の目標達成へ向けて、毎年目標と実績を評価しています。目標に対する進捗は毎年統合報告書やESGウェブサイトで公開します。

Deliberations at the Sustainability Promotion committee (formerly the Sustainability strategy Council)

サステナビリティ目標2025ではESGの観点にF（財務・将来）を加え、環境・社会が企業業績に与える影響を新たに盛り込むとともに、2030年ビジョンなどフジクラの長期ビジョンの達成を考慮しました。

Overview of Sustainability Targets 2025

Sustainability Goals 2025 Overall Presentation

List of Sustainability Targets 2025

theme	Priority Measures	FY2025 and future goals			Main achievements for fiscal 2024
F = Financial Future	"Tsunagu" Solution By providing Comfortable and sustainable "Future" society Resolve issues and Continuous Increase corporate value	Explore new business in the four areas envisioned in the 2030 Vision	① Evolution and development of core technologies in existing business	Developing products and services with high social value by advancing core technologies sales products and services with high WTP (Willingness To Pay)	We are working closely with customer to develop multi-core fibers and fiber lasers. For fiber lasers, we have begun exploring new applications together with customer, such as processing difficult-to-process materials.
			②Exploring new technologies and business fields	Considering open innovation In addition to selling products, we are exploring business that sell services.	フュージョンエネルギー（核融合発電）の早期実用化に向けて、重要パーツである高温超電導線材の生産力を強化。国際的な取り組みの中で高温超電導線材の需要増に対応することでその開発に貢献し、フジクラとして新たな事業につなげる
	To the global environment Considered Safe to use Product Development	By 2050, replace all Fujikura products with environmentally friendly products (green products)			Achieve a sales ratio of environmentally friendly products of 67%
		Expand green product creation activities to all group companies by 2030			Discussions have begun in the Global Environment committee. We have begun to grasp the current situation and identify issues in preparation for institutionalization.
	Data and Digital technology Utilized Improving the efficiency of existing business and New Business Model Creation	DX at manufacturing sites (smart factories, AI utilization)			In order to expand the scope of application of AI testing, we will expand existing AI testing to new models and continue developing the AI testing system for SWR®.
	[Challenge 1] Total CO₂ emissions from factories “2050 Zero Challenge"	Reducing CO₂ emissions	Scope: SBT certified boundary	FY2025 target: Reduce by 16.5% or more compared to FY2020 (289,000 tons/year or less) FY2030 target: 2050 target: Factory	31% reduction (compared to fiscal 2020) against the fiscal 2024 target of at least 13.2% reduction
		Improving production efficiency (promoting energy conservation)	Scope: Fujikura Group (domestic and overseas)	Energy consumption: Improve by 5% or more compared to fiscal 2020 by fiscal 2025	7.7% improvement from last year, but still falls short of target
		Improving product Butsuryu efficiency	Scope: Fujikura Group (domestic)	Energy intensity in product Butsuryu: Improve by 5% or more compared to fiscal 2020 by fiscal 2025	The target for fiscal 2024 intensity was achieved at 60.9, a 1% decrease from the previous fiscal year.
	[Challenge 2] Engineering Minimize water use on site and drainage pipes	Contributing to reducing water risks	Water usage per unit: Improve by 5% or more compared to fiscal 2020 by fiscal 2025		Due to increased water usage resulting from increased production, the target of 4% improvement for fiscal 2024 (compared to fiscal 2020) was not achieved, with an improvement of 0.1% (Japan).
	[Challenge 3] Engineering Coexistence of people and nature raw	Make effective use of the natural environment within business premises and contribute to the expansion of biodiversity			No environmental accidents occurred Started collecting information from overseas bases Environmental audits were conducted at 16 domestic bases.
		Promoting local natural environment conservation activities
	[Challenge 4] Capital Effective use of resources and Source circulation	Reduce resource input and promote efficient use of resources	Scope: Fujikura Group (domestic and overseas)		Amount of recycled materials used: Achieved 10,759 tons compared to the target of 10,000 tons (domestic)
		Reducing disposal generated from business activities	Scope: Fujikura Group (domestic)	disposal emissions per unit: Improve by 5% or more compared to fiscal 2020 by fiscal 2025	Achieved 11.5% improvement compared to the target of 4% improvement (compared to fiscal 2020) (domestic)
		Achieving zero disposal emissions	Scope: Fujikura Group (domestic)		The landfill rate was 0.8%, failing to achieve the goal of zero landfill and simple incineration (domestic)
	Climate Change Governance Construction of a system (TCFD correspondence)	Understanding climate change risks and opportunities Understand strategy and financial impact			Disclosure of information in accordance with the TCFD framework in securities reports and integrated reports strategy analysis of each business has been conducted, and quantitative financial impact is currently being considered.
S = society	Workplace satisfaction reform ( Strong engagement )	Each Fujikura employee grows as a person through self-actualization and is fulfilled both personally and professionally.		Improving Fujikura employee' willingness to contribute voluntarily Creating an environment for work styles that are not bound by time or place Improving motivation through health management Improving labor productivity	Telework usage rate: 43.8% (Fujikura) Certified as a 2025 Health and Productivity Management Excellent Corporation (large corporation unit)
	Globally Can be active Human Resource Development	All Fujikura Group Fujikura employee are active with a global perspective		organization culture where the growth of the company and Fujikura employee are synchronized Developing, discovering, and acquiring human resource to lead innovation Support for independent career development and provision of growth opportunities organization Fujikura employee recognize and encourage each other (respect for individuals and trust)	Percentage of employees with overseas experience among general employees: 19.7% (Fujikura) Voluntary training attendance: Total number of test takers (taking TOEIC and other tests, online English conversation/video learning services, external courses, correspondence courses, etc.): 1,534 (Fujikura) *1,327 in FY2023
	Diversity & Inclusion (Consideration for Fujikura employee human rights)	human resource with diverse backgrounds and ways of thinking are active		Goals (by fiscal 2025) Ratio of female managers: 5.6% or more (Fujikura) Ratio of female section chiefs: 16.0% or more (Fujikura)	Ratio of female managers: 5.1% (Fujikura) Ratio of female section chiefs: 19.5% (Fujikura) Employment rate handicapped person: 2.74% (domestic)
G= governance	Improving the effectiveness of Board of Directors' Meeting	Improving the effectiveness of Board of Directors' Meeting and strengthening its supervisory function To increase transparency and fairness in management and to promote swift decision-making Ensuring diversity on Board of Directors' Meeting Overseeing the formulation and implementation of succession plans Appropriate supervision of development plans			Conducted analysis and evaluation of Board of Directors' Meeting effectiveness evaluation survey by a third-party organization Management human resource pool operation: 136 people participated in the management human resource development program (Fujikura) *Cumulative total number of people who have taken this program since 2020
	Group Corporate Philosophy MVCV in practice	Realizing the Group Corporate Philosophy through the implementation of the new Standards of Conduct			In fiscal 2024, we will continue to develop workplace evangelists and provide training for each employee level, with the aim of implementing MVCV with the participation of all Fujikura employee. Also implemented at domestic group companies and FEL
	Group governance Building a (risk management Strengthening)	Establishing a risk management system that contributes to strategy management and risk control (PDCA) Strengthening investment management			Implement the "Group Governance Basic Policy" established in fiscal 2023 to major group companies
	supply chain Management (Responsibility) Responsible mineral sourcing nothing)	社会課題（児童労働や強制労働など）に配慮したサプライチェーンマネジメントの確立責任ある鉱物調達の体制確立（3TGを中心にコバルト、マイカなどのデューデリジェンスシステム） NGOなど外部からの指摘ゼロ（または指摘があった際の早期の是正）他社との連携（他社の取り組みを学びフジクラの取り組みに活かす）			Conducted a supply chain survey of 114 suppliers and provided feedback to business partners Partners meetings held in Tokyo, Shanghai, and Bangkok with a total of 351 companies participating revision CSR Procurement guideline to comply with RBA Code of Conduct ver. 8 and notified business partners
	security export control Thorough	Enhanced Export Control compliance Compliance		Improving the effectiveness of export control audits	No serious breach of laws and regulations Conducting export control audits including domestic and overseas group companies