Responding to Climate Changes

Fujikura has made it a part of risk management to annually check the progress of each item listed in its Sustainability Goals 2025. These goals are linked to Fujikura Group Long-Term Environmental Vision 2050, and priority measures include reducing GHG (greenhouse gas) emissions and responding to the Task Force on Climate-related Financial Disclosures (TCFD). We have established a system that allows us to take appropriate action by checking progress every year and considering future measures.

We are identifying potential risks and opportunities in the transition to a low-carbon economy.
In order to analyze how climate change will affect business growth of Fujikura Group, we take into account long-term predictions from international research organizations (OECD, IPCC) and other sources, as well as societal concerns and customer requests for responses to climate change.
Identified risks are reviewed appropriately.

Responses to identified risks and future considerations are approval and decided by Fujikura Group Global Environment committee the chairperson of the committee by the Managing Director in charge of the environment. Along with reporting on the results of action plans set out in CSR priority measures, Fujikura Group Global Environment committee shares information, considers and approval response plans, and reports to the Sustainability strategy Meeting. In addition, environmental data such as electricity usage, water, and disposal from each Fujikura Group site is entered, evaluated, and analyzed, and Fujikura Group Global Environment committee confirms results and reviews plans twice a year.

Demand for Optcal Fiber cables, Fujikura Group 's main product, is expected to increase due to the increase in the amount of information and communication worldwide. In addition, due to the growing demand for reducing greenhouse gas emissions triggered by global warming, it is expected that customer will demand products that emit less greenhouse gas during manufacturing. Seeing this as an important opportunity for Fujikura Group, we have constructed and started operation of a new ^SWR® factory at the Sakura business. This new factory will be equipped with rooftop solar panels to make it a carbon neutral factory.

Fujikura Group has made the following investments to date in preparation for future disaster risks.
Fujikura Sakura business has experienced a slope collapse accident caused by heavy rain in the past. In recent years, the frequency of heavy rain has increased due to climate change, so the plant has been working on slope improvement from 2016 to 2019 (cost: 580 million yen).
Nishi Nippon Electric Wire's Oita Factory faces Oita Bay and is at risk of damage from storm surges and tsunamis during typhoons. In response to this, in fiscal 2017 we constructed a new office building where 500 employees can take refuge (cost: 460 million yen).

Fujikura Group has established its Environmental Management Action guideline for 2025. As a RE100 target, the Group has set a CO2 reduction target of "achieving a renewable energy rate of 45% by fiscal 2030," and has set this as a common target for its overseas bases as well.
To reduce total CO2 emissions, we will obtain SBT certification in July 2023, with targets of reducing Scope 1 and 2 emissions by 33% by fiscal year 2030 (compared to fiscal year 2020), and reducing Scope 3 emissions by 15% by fiscal year 2030 (compared to fiscal year 2020).

The total amount of GHG emissions in fiscal year 2023 will be 247,000 tons, all CO2. Of this, domestic emissions were 111,000 tons, and overseas emissions were 136,000 tons. The amount of CO2 offset by non-fossil certificates both domestically and overseas is as follows:

Taking advantage of the opportunity of obtaining SBT certification in July 2023, Fujikura expanded the scope of Scope 3 calculation and disclosure from the domestic group to the overseas group*1. We have reviewed the classification of categories and are also calculating emissions in downstream categories that could not be calculated until now. "Category 11: Use of sales products*2" is the largest, but this is emissions due to transmission losses of electric wires and cables sales by Fujikura Group companies. Scope 3 in fiscal 2023 has decreased significantly, clearing Fujikura Group 's SBT target of a 15% reduction compared to fiscal 2020. We believe that this is largely due to the decrease in the number of electric wires shipped that are subject to Category 11. Therefore, we plan to continue monitoring the results for fiscal 2024 before re-setting the target.

Fujikura Group Scope 1, 2, 3 calculation results

Calculation results including category 11

Calculation results excluding category 11

As part of Fujikura Group 2025 Environmental Management Action guideline (25 Environmental guideline), in fiscal 2023 we worked towards the goal of "reducing CO2 emissions by 9.9% or more compared to fiscal 2020." Energy-saving activities are ongoing across the entire company, contributing to reducing emissions. For measures that result in particularly large reductions, we are promoting information sharing and application at other bases to maximize the reduction effect. Fujikura Group 's overall CO2 emissions, including offsets through non-fossil certificates, were 247,000 tons, a 29% decrease compared to fiscal 2020.

Trends in domestic and overseas CO2 emissions and production energy intensity

*CO2 emission coefficient for electricity
[Japan] Adjusted emission factors by electric business published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry (using the factor for each fiscal year)

Reuse of packaging materials and wooden drums

To address water risks, Fujikura Group has set "minimizing water usage in factories and managing wastewater" as a challenge item in its Long-Term Environmental Vision 2050. Regarding minimizing water usage in factories, we are working under the slogan "Don't use it, use it repeatedly, clean it and return it to nature." Regarding wastewater management, we recommend that domestic manufacturing sites install constant monitoring systems for "pH," "oil content," and "turbidity" in the final wastewater basin.
In addition, in Fujikura Group 2025 Environmental Management Action guideline, which are based on the Long-Term Environmental Vision 2050, we have set a target of improving water usage per unit of production by 5% or more in fiscal 2025 compared to fiscal 2020 at consolidated company in Japan and overseas, and are working toward this goal.

At the United Nations Water Conference held in March 2023, discussions were held to "urgently scale up efforts to ensure equitable access to water for all." The resulting "Water Action Agenda" included more than 700 commitments to drive the transformation from a water-crisis world to a water-secure world.
In its 2021 report*, the United Nations Water committee (UN-Water) noted that there have been significant changes in surface water in one-fifth of the world's river basins over the past five years, and pointed out that one of the factors contributing to this is the impact of climate change, such as the drying of lakes in arid regions and the expansion of lakes due to melting glaciers and permafrost.
In addition, the World Meteorological Organization has identified northern China, South Asia, and the Mediterranean coastal region as hotspots of water stress in its 2021 report**. Fujikura Group business in China, India, and Europe, and continues to recognize the need to address water risks. In response, we have set a goal of reducing water usage intensity by 1% or more compared to fiscal 2020 (5% reduction by 2025) as guideline for Fujikura Group in Japan.

* Progress on Freshwater Ecosystems 2021:
https://www.unwater.org/sites/default/files/app/uploads/2021/09/SDG6_Indicator_Report_661_Progress-on-Water-related-Ecosystems_2021_EN.pdf 
**2021 STATE OF CLIMATE SERVICES
https://library.wmo.int/doc_num.php?explnum_id=10826
***Water stress: The amount of water resources required for agriculture, industry, energy, and the environment is said to be 1,700 m3 per person per year. When the amount of available water falls below 1,700 m3, it is considered to be in a state of "water stress," when it falls below 1,000 m3, it is in a state of "water shortage," and when it falls below 500 m3, it is in a state of "absolute water shortage."

Total water withdrawals in Japan and overseas, and water withdrawals and usage by water resource

Fujikura Group maintains that the amount of water withdrawn and used in its business activities is equal.
Regarding water intake, there is no water stress due to drought in Japan, but preventive measures against flooding are being taken, such as improving slopes, strengthening storm water gutters, and strengthening seawalls.
Water usage in FY2023 will increase in Japan and decrease overseas compared to FY2022, resulting in a 1.64% increase in total for both Japan and overseas. By water source, tap water will decrease, while industrial water and well water will increase.

Water withdrawal by source

Total water withdrawal

Domestic emissions