Fujikura Ltd.

Fujikura Group annually checks the progress of each item set out in its Sustainability Goals 2025. These goals are linked to Fujikura Group Long-Term Environmental Vision 2050, and priority measures include targets for reducing GHG (greenhouse gas) emissions and responding to the TCFD (Task Force on Climate-related Financial Disclosures). By checking progress annually and considering future measures, we have established a system that enables appropriate responses.

Identifying and responding to climate change risks and opportunities

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.

risk

Classification	Climate change risks		Future Actions
2°C scenario (Transition risk) Short term/medium term	Policy and legal risks	Strengthening of CO2 emission regulations in each country and region, such as the introduction of carbon taxes ─Estimating the financial impact of a carbon tax Obligations from customer and operating countries to reduce greenhouse gas emissions and carbon footprints	Based on the long-term environmental vision 2050, we will promote thorough energy conservation, introduction of renewable energy, and utilization of credits, etc., through a roadmap to 100% renewable energy. Promote the use of renewable energy in business activities (head office, factories, etc.) Strengthening response to joining RE100 and supporting TCFD; Regular monitoring and response to ESG evaluation indicators
	Technology Risk	Disrupting existing technology Demands for minimizing energy consumption during product manufacturing and using renewable energy
	Market Risk	Changes in demand for products and services Temporary increases in capital investment costs due to climate change countermeasures from customer and society Increases in raw material prices and divergence of suppliers due to climate change-related factors
	Reputation risk	Requests for disclosure of information and responses to climate change from customer, investors, and various rating agencies
4°C scenario (physical risk) Medium term/long term	Acute risks	Impact of natural disasters such as floods and major typhoons on operations ─ If production facilities are damaged, there will be an impact on business performance, such as reduced production capacity and the need to repair facilities. ─ Impact of supply chain disruptions on production plans → In 2011, Fujikura Group 's group companies suffered severe damage from the floods Kingdom of Thailand, and it took five years for the company to recover.	Disaster prevention measures at target bases Learning from the lessons of the 2011 flood damage, the company has decentralized its bases and constructed waterproof walls around business from a BCP perspective. Slope preparation for business sites and storm surge and tsunami response for factories near the sea ─Domestic bases affected by flooding and rising sea levels: Head office, Fujikura High Opt (Kiba, Koto-ku, Tokyo), Numazu Copper Melting (Kanaya Izumicho, Shimada City, Shizuoka Prefecture), Nishi Nippon Electric Wire (Kasugaura, Oita City, Oita Prefecture) *Investigate hazard maps from each government
4°C scenario (physical risk) Medium term/long term	Chronic Risk	Consideration of the health of Fujikura employee working in areas where we operate due to rising temperatures, etc. Ensuring employee safety due to increased rainfall Impact of future sea level rise on operations

opportunity

Each business	Social Trends	opportunity
Telecommunication Systems	With the advancement of digitalization, the amount of data distributed, accumulated, and analyzed is increasing exponentially New service business utilizing digital technologies such as big data, IoT, 5G, and AI are expanding rapidly Progress of CASE/MaaS Millimeter Wave (wireless communication) Concerns over natural disaster response under the 4°C scenario	Development of solutions centered on Wrapping Tube Cable (WTC) (SWR^™ / WTC^™) Expansion of green related products Highly efficient IT system related products Promoting the use of digital technology Strengthening the resilience of communication lines as social infrastructure
Electronics	The rise of industrial robots Entry into medical products Increase in automotive electronic components Increasing number of mmWave compatible components	Promoting CASE-compatible research and development Promoting the use of digital technology Expand green products Increasing demand for industrial and automotive connectors
Automotive Products	CASE Progression Increase in Wire harness due to increase in electronic components Progress of EV adoption in the 2°C scenario Increasing demand for lightweight Wire harness	Lightweight Wire harness Promoting CASE-compatible research and development Combining knowledge of the automotive business with information and communications, energy, and other business to create new EV-related business Strengthening support for automotive parts other than Wire harness and EVs Expand green products
Power Systems	Economic growth, urbanization, and population growth are driving increased demand for energy, especially electricity, primarily in developing countries. Utilizing digital technology to stabilize and streamline power supply and promote energy conservation under the 2°C scenario Diversification of both energy supply and demand among companies and individuals, and increase in renewable energy in the 2°C scenario Concerns over an increase in natural disasters under the 4°C scenario Compliance with the Law to Promote the Elimination of Utility Poles (disaster prevention, etc.)	Expanding the use of renewable energy Expand green products High-efficiency power system related products Promoting the use of digital technology • Strengthening the resilience of social infrastructure such as electric wires and cables
Real Estate	Promoting the use of digital technology Needs for environmental considerations such as ZEB	Attracting and retaining environmentally-conscious tenants

Responding to risks

Responses to identified risks and future considerations are approval and decided by the Global Environment committee, chaired by the the chairperson of the committee in charge of the Environment. Along with reporting on the results of action plans established in the CSR priority measures, the 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 the Global Environment committee confirms results and reviews plans twice a year.

Investing in opportunities

Demand Fiber Optic Cable, Fujikura Group's main product, is expected to increase due to the increase in global information and communication traffic. In addition, due to the growing demand for reducing greenhouse gas emissions triggered by global warming, it is expected that customer will demand products with lower greenhouse gas emissions during manufacturing. Seeing this as an important opportunity for Fujikura Group, we have constructed and started operation of a new SWR^™ factory at our Sakura business. This new factory has installed rooftop solar panels, making it carbon neutral.

Sakura business SWR® New Factory — Sakura business SWR^™ New Factory

Financial impact

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).

West Japan Electric Cable's Tsunami Evacuation Tower

CO2 Emissions Reduction policy and guideline

フジクラグループは、2025環境管理活動指針を定めました。RE100目標値として、「2030年度において再エネ率45%達成」として、CO₂削減量を定め、海外拠点も共通した目標としました。
CO₂総排出量の削減として、2023年7月、SBTの認定を取得し、Scope1, 2を2030年度33%削減（2020年度比）、Scope3を2030年度15%削減（2020年度比）を目標としています。

Calculation method for CO2 emissions

フジクラグループのCO₂排出量は、年度ごとのエネルギー別消費量に、エネルギー種類ごとのCO₂排出係数を乗じて算出
Compliant with the market-based method outlined in the GHG Protocol's Scope 2 guidance
Base year Domestic and overseas: Fiscal year 2020
Emission Factor
Domestic electricity: Adjusted emission factors by electricity business for the most recent fiscal year published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry
Overseas electricity: Residual mix emission factor for the most recent fiscal year by country and grid. If no applicable factor exists, average emission factor.
Domestic and overseas fuels: Emission coefficients for the most recent fiscal year published by the Ministry of the Environment

Total GHG emissions

A total of 217,000 tons
Domestic emissions: 103,000 tons
Overseas emissions: 114,000 tons
CO₂ offset amount using non-fossil fuel certificates domestically and internationally
Domestic: FIT non-fossil fuel certificates: 21,000 tons
Overseas: (Kingdom of Thailand) I-REC 96,000 tons; (China) Green electricity certificates 4,000 tons

組織境界にGHGプロトコルの支配力基準の考え方を適用し、これまでAFLグループのScope1, 2の排出量を含めてきませんでしたが、排出量削減活動についてもフジクラグループとして進めていくために2025年度の排出量からAFLグループのScope1, 2も統合していくことにしました。AFLグループはアメリカで光ケーブルや光部品製造を行うグループ会社で連結対象になります。今後は、SBT認定バウンダリの排出量とは別に、連結グループのバウンダリでの排出量についても開示していきます。

Supply chain emissions (Scope 3): Calculation in progress for FY2025

フジクラグループでは2023年7月のSBT認定取得を機に、Scope3の算定・開示範囲を国内グループから海外グループにまで拡大しました（SBT認定バウンダリ）。しかしながら、その中にはAFLグループが含まれていなかったため、改めて同グループのScope3排出量の算定を行い、2025年度の排出量から、AFLグループを含めた連結グループでの開示を分けて行うことにしました。
「カテゴリ11　販売した製品の使用*3」が最も排出量が大きくなっていますが、これはフジクラグループ会社が販売した電線・ケーブルの送電損失による排出になります。2025年度はフジクラグループの電線が使用される国内の排出係数が良化し、前年度から約6.5万トンの削減となりました。フジクラグループはRE100での活動を通して、日本における再エネ普及に貢献していきます。
カテゴリ1に関しては、引き続き銅やアルミのリサイクル促進、パートナー企業様との連携を深化していくことで、削減を進めていきます。2025年度は約14万トンの削減となりました。

Fujikura Group 's Scope 3 emissions

Calculation results including category 11

Calculation results excluding category 11

*1　SBT認定バウンダリ

*2　連結グループ

*3　カテゴリ11の送電損失による排出は、ジュール熱の発生による電力損失から計算を行っています。算定にあたって、ケーブルの使用率のデータ入手が困難であるため推定値を使用しています。フジクラのScope1, 2と主カテゴリの排出量の変遷が見やすいようにカテゴリ11を含めたグラフと除外したグラフを作成しています。

Activity results for fiscal year 2025

フジクラグループ2025環境管理活動指針（25環境指針）として2024年度は「CO₂排出量を2020年度比13.2%以上削減」を目標に活動を行いました。省エネでは全社における継続した活動を展開しており、排出削減に貢献しています。特に削減量が大きい施策は、情報の共有化や他拠点での適用を進め、最大限に削減効果が出るようにしています。フジクラグループ全体でCO₂排出量（マーケット基準）は、非化石証書によるオフセットを含め23万6千トンで2020年度対比31%減少となりました。

Main initiatives for fiscal year 2025

1. Reduction of CO₂ emissions from Fujikura
- Energy conservation: Develop innovative Monodukuri to improve productivity and business competitiveness, and actively promote conventional energy conservation activities
- Energy creation: Promoting the introduction of renewable energy using solar power generation.
  Operation started: 1 (Sakura business Office Parking Lot)
  Currently in use: 2 (Fujikura Electronic Components (Thailand) Ltd., Fujikura Conec (THAILAND) LTD.)
- Energy Procurement: Procurement of appropriate environmental certificates and renewable energy that meet the requirements of RE100, etc.
2Reducing CO2 emissions in the supply chain
- Promoting resource reuse
- Strengthening collaboration with suppliers to reduce Category 1 products.

Transportation and mobility activities

物流活動に伴うエネルギー原単位改善について、2020年度実績値41.2KL/キロトンに対して2025年度は5%改善を目標としていましたが、比率の高いグループ会社の移管に伴いその影響を除いた24年度比で1%減の60.3KL/キロトンとしました。これに対し、2025年度実績値については58.7KL/キロトンとなり3.6%改善で目標を達成しました。
また、資源の効率的な利用促進を継続しており、梱包材・木製ドラムの再利用を進めています。さらには、積載率向上のために開発した2段積用治具（正式名称：電線ドラムパレット）について、利用を積極的に推進しています。

Reuse of packaging materials and wooden drums

Energy saving initiatives

Promotion of Cool Biz and Warm Biz

As an environmentally friendly corporate group, Fujikura Group promotes Cool Biz in the summer and Warm Biz in the winter, striving to achieve both seasonal comfort and energy conservation.

Updated air conditioners, updated lighting to LED

2025年度は継続して「空調機更新」「照明LED化更新」を進めています。
新たな試みとして、フジクラグループ内の「省エネ診断」を開始しています。2拠点について、コンプレッサーや空調設備の省エネ化を進めています。
照明LED化については複数の拠点で展開が進み始めていますが、特に佐倉事業所の照明LED化を前倒しして進めています。

グループ会社での取り組み

Our domestic and overseas group companies are actively working to eliminate unnecessary energy use by adjusting working hours (from a 3-shift system to a 2-shift system), implementing a holiday mode (a mode that reduces equipment power consumption on holidays), reducing the size of air-conditioned areas through partitions, creating downtime for equipment through production adjustments, shortening idle time, and changing operating conditions.

Water Risk Management policy and guideline

To address water risks, Fujikura Group has set "Minimizing water use and managing wastewater in its factories" as a challenge item in its long-term environmental vision 2050. Regarding minimizing water use in factories, the company is working under the motto "Don't use it, reuse it, and clean it and return it to nature." Regarding wastewater management, the company is recommending the installation of continuous monitoring systems for "pH," "oil content," and "turbidity" at final wastewater treatment tanks at its domestic manufacturing sites.

Understanding water risk areas and their relationship to Fujikura Group 's business development

2023年3月に開催された国連水会議（United Nations Water Conference）では、"すべての人々に公平な水へのアクセスを確保する活動を緊急に拡大する"ために議論がなされました。その成果である「水行動アジェンダ」には、水危機にある世界から水が確保された世界への変革を推進するための700を超えるコミットメントが盛り込まれました。国連水関連機関調整委員会（UN-Water）は2021年度の報告書*で、地表水の変化について、過去5年間に世界の河川流域の1/5に大きな変化があり、乾燥地域の湖の乾燥や、氷河の融解や永久凍土の融解による湖の拡大などの気候変動に起因する影響を、要因の一つとして指摘しました。また、世界気象機関（World Meteorological Organization）は、2021年の報告書**の中で、中国北部地域、南アジア地域、地中海沿岸地域などを水ストレス***のホットスポットとしています。フジクラグループは、中国、東南アジア、ヨーロッパ、北米、南米に事業展開しており、引き続き、水リスクへの対応の必要性を認識しています。

国内の各拠点では、ハザードマップの確認や、過去の災害状況も踏まえ、洪水・内水・津波の水災害リスクおよび渇水リスクの評価を行い対応策の検討、実施をしています。具体的には、フジクラ物流西日本流通センターでは緊急排水ポンプ、西日本電線大分事業所・挾間事業所では止水板を所持するなど、比較的リスクの大きい拠点では水災害に備えています。

また、海外の製造拠点では、河川洪水、沿岸洪水、渇水それぞれについて、****Aqueductを確認した上で実際のリスク評価を行っています。洪水リスクが高いと判断したFujikura Electronics Vietnam Ltd.（FEVL）とFujikura Conec (THAILAND) LTD. （FCTL）では緊急時対策を整備し、止水や避難などの方針を明確にして災害に備えています。

* 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
***水ストレス：農業、工業、エネルギー及び環境に要する水資源量は年間一人当たり1,700㎥とされ、利用可能な水の量が1,700㎥を下回る場合は「水ストレス下にある」状態、1,000㎥を下回る場合は「水不足」の状態、500㎥を下回る場合は「絶対的な水不足」の状態を表すとされている。
****Aqueduct：世界資源研究所（WRI）が提供する水リスク評価ツール。水ストレス、洪水、干ばつなど水関連リスクを地域別に評価・可視化できる。

Past water risks that occurred at Group sites

In 2011, Fujikura Group's manufacturing bases in the Kingdom of Kingdom of Thailand suffered major damage (water damage) from a flood that occurred in Kingdom of Thailand, said to be a once-in-50-year event. Although the company declared recovery from the flood in 2016, the experience has led to the decentralization of manufacturing bases to neighboring countries and the installation of waterproof walls. Since then, the company has been working on flood and drought as part of its BCP activities in Thailand. In addition, the selection of new bases is decided after thorough research into past floods and altitude.

Initiatives for Fiscal Year 2025

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

Fujikura Group maintains that the amount of water taken in and used for business activities are equal.
Regarding water intake, there is no water stress due to drought in Japan, but as a preventative measure against floods, we are implementing measures such as slope improvement, reinforcement of rainwater drainage channels, and strengthening of seawalls.
Total water usage in fiscal year 2025 increased compared to fiscal year 2024, both domestically and internationally, due to increased production. By water source, tap water usage increased, while industrial water and well water usage saw slight increases.

Domestic wastewater volume

Domestic wastewater volume for fiscal year 2025 is projected to increase slightly by 1.2% compared to fiscal year 2024. Regarding wastewater from domestic facilities, automatic monitoring of pH, turbidity, and oil content is implemented at the final wastewater collection points at almost all locations.

Responding to Climate Changes