CSR Basic Principles

The Fujikura Group conducts its CSR activities based on its mission statement in the Corporate Philosophy MVCV, which is to help customers create value and contribute to society through its "Tsunagu" technologies. To earn trust from society, we are conducting CSR activities based on ISO 26000, which is the international standard on 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

Fujikura Group aims to serve as a bridge to an affluent future for people, society and the global environment through "Tsunagu" Technologies by becoming a company that serves the anticipated growth and development of society. We have established the following four focus areas to fulfill our social responsibilities in all aspects of our corporate activities so that each and every employees will comply with the relevant laws and regulations of every country or region we operate in as well as international rules and social norms; become aware of his or her own role as a member of society, and act according to good social sense.

[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 2009, the Fujikura Group has mainly pursued sustainability through a management structure centered on the Group's CSR Committee.
In recent years, striving for sustainable growth based in ESG activities, rather than corporate social responsibility (CSR) alone, is being viewed as important, in an era where society is demanding response to climate change issues and institutional investors are basing investments on ESG. The existing CSR Committee established the new Sustainability Strategy Council meetings to incorporate the ESG perspective into business plans, enhance corporate value, and achieve sustained growth (sustainability).
The Sustainability Promotion Committee (hereinafter “the Committee”) reports, discusses and shares information. The Fujikura Group has set the Sustainability Targets 2025 (targets on the page on the right) as a strategy for sustainability. Adding F (finance or future) to ESG, we have established four themes and set 16 priority measures for these targets. We referred to domestic and foreign social issues, international guidelines, evaluation items of ESG to devise sustainability strategies incorporating ESG perspectives as requested by our stakeholders and to monitor and supervise the execution of those strategies. With the Director, President & CEO serving as the Chairperson, the Committee is comprised of the directors (excluding some directors and outside officers) and corporate officers.

Views on Sustainability Targets 2025

We need to engage in two types of activities to achieve sustainability based on the Fujikura Group Corporate Philosophy (MVCV): Activities necessary for sustainable corporate management and activities that facilitate building a sustainable society.
Up to this point, we have specified the five-year CSR Priority Measures 2020 (FY2015 to FY2020) as environmental and social materialities and pursued each measure in cooperation with the relevant divisions. However, rapid social changes after establishing targets have necessitated radical revisions. We therefore established targets that also added the perspective of financial materialities to environmental and social materialities in our new 5-year Sustainability Targets 2025 (FY2021 to FY2025), beginning in FY2021. We have set more future-oriented goals by linking this to the long-term visions the Fujikura Group has established (the 2030 Vision and Fujikura Group Long-term Environmental Vision 2050).
Sustainability Targets 2025 was deliberated and approved by the Sustainability Strategy Council (chaired by the president).

Sustainability Goal Setting Process

Introducing double materiality perspectives

When establishing Sustainability Targets 2025, we verified the results of CSR Priority Measures 2020 and sorted out the new perspectives that should be incorporated based on the latest trends. To ascertain the latest trends, we referenced domestic and international issues and international guidelines, the elements rated by ESG rating institutions, and comments from stakeholders.
We also added the perspective of F (Finance & Future), incorporated the impact of environmental and social aspects on corporate performance, and considered achievement of the 2030 Vision and other long-term visions of the Company in Sustainability Targets 2025.

Formulation of a materiality matrix

The Fujikura Group created a materiality matrix specifying the themes of Sustainability Targets 2025 based on the Fujikura Group CSR Basic Principles and the four focus areas. We performed a materiality matrix analysis with stakeholder inclusiveness in mind, and evaluated and verified materiality from the two perspectives of the degree of stakeholder concern and degree of impact on Fujikura’s business.
This resulted in establishment of three items in F (Finance & Future), five items in E (Environment), three items in S (Social), and five items in G (Governance). The targets and results are evaluated annually with the goal of achieving them by FY2025. Progress on the targets is disclosed in the Integrated Report and on the corporate website every year.

Added New Targets

When establishing Sustainability Targets 2025, we verified the results of CSR Priority Measures 2020 and sorted out the new perspectives that should be incorporated based the latest trends. To ascertain the latest trends, we referenced domestic and international issues and international guidelines, the elements rated by ESG rating institutions, and comments from stakeholders.
We also added the perspective of F (Finance & Future), incorporated the impact of environmental and social aspects on corporate performance, and considered achievement of the 2030 Vision and other long-term visions of the Company in Sustainability Targets 2025.

Four sustainability themes based on ESG+F

Sustainability Theme		Results of CSR Priority Measures 2020	Additions to Sustainability Goals 2025
F	Finances and Future	Promoting CSV as strategy to contribute to achieving the SDGs while also growing the company's profits, and organizing internal awareness-raising and specific initiatives	Newly incorporate the impact of environmental and social factors on business performance In the four market sectors defined in the 2030 Vision, the company will develop existing business and search for new business segments. DX Promotion has been newly added
E	Environment	_CO2 emissions and water usage reductions were mostly achieved Biodiversity conservation activities continue with a focus on the Fujikura-Kiba Millennium Woods	A long-term perspective toward achieving carbon neutrality (linked with Fujikura Group Long-Term Environmental Vision 2050) TCFD Compliance (Consideration of economic rationality in terms of CO ₂ emissions and business performance)
S	society	As a consideration for human rights in society, we implement measures such as work hour management and harassment education, improve the telework environment, and encourage men to take childcare leave. Regarding the supply chain, we will continue to hold opportunities for communication such as nurses' meetings to request consideration for the human rights of part-time workers, and will also communicate requests for consideration for human rights through the CSR Procurement guideline.	Strengthening the perspective of "business and human rights" and incorporating Fujikura employee engagement, human resource development linked to Corporate Strategy, and diversity and inclusion Supply chains will shift to governance (G) in the Sustainability Goals 2025
G	Governance	Fujikura Group Corporate Philosophy MVCV, will continue to strengthen its efforts by implementing interpretation workshops and promoting awareness through the MVCVBOOK. In terms of information disclosure and communication, we will strengthen our efforts by continuing to include EDG indexes and holding ESG meetings with institutional investors.	Following revision corporate governance, the new system includes the functional facilities of Board of Directors' Meeting, the implementation of Fujikura Group Corporate Philosophy, and strengthening of supply chain management.

Deliberations at the Sustainability strategy Meeting

Overview of Sustainability Targets 2025

Sustainability Goals 2025 Overall Presentation

List of Sustainability Targets 2025

Sustainability Theme		Priority Measures	Major achievements in FY2023 (excerpts)
F	2030 Vision Realization of CSV and business Opportunities Maximize	By providing "Tsunagu" solutions, we aim to resolve issues facing a comfortable and sustainable "future" society and continuously increase corporate value.	Started collaboration with Kyoto Fusioneering on a research promotion project for the UK Atomic Energy Authority (UKAEA) in the field of high-temperature superconducting magnets for fusion power reactors Participated in NTT East's IOWN Lab as a PoC activity with customer using 60 GHz mmWave Wireless Communications Module
		Development of environmentally friendly products that are safe to use	FY2023 sales ratio of green-related products is expected to be 62% (Fujikura) ・ establishment a new certification system, Green PLUS, for products that have an impact on not only the environment but also society. Certification procedures have begun. Establish a system to calculate the CO2 reduction effect of registered Green Mind products Launch of certification system for environmentally friendly products at domestic group companies
		Utilizing data and digital technologies to improve the efficiency of existing business and create new business models	Completed introduction of AI inspection to membrane circuit inspection process Sim2Real and reinforcement learning-based AI model implemented in collimator lens alignment process and put into operation
E	Fujikura Group Long-term Environmental Vision Achieving 2050	[Challenge 1] Total factory CO2 emissions "Zero by 2050 Challenge"	Reduction of CO2 emissions (SBT certified boundary) [Scope 1+2] 247,000 tons-CO2, a 28.6% reduction compared to fiscal 2020 [Scope 3] 17,879 thousand tons of CO2, a reduction of 18.6% compared to fiscal 2020 *When SBT certification was obtained in July 2023, Scope 3 targets were added to the scope.
S	Globally applicable Talented human resource	Developing human resource who can thrive globally	Permanently hold "Career Design Training for People in Their 30s" aimed at fostering independent career awareness Introduction of an online education platform that allows employees to learn IT skills independently. Total number of employees taking voluntary training/exams (taking TOEIC and other exams, online English conversation/learning tools) External courses, correspondence courses, etc.): 1,327 people (Fujikura) *1,233 students in 2022 Promoting the use of AI to improve business efficiency and generate new ideas, while also avoiding the risk of information leaks due to the introduction of AI
S	Globally applicable Talented human resource	Diversity & Inclusion	Ratio of women among new graduate hires (general employees): 31% (75% administrative, 15% technical) (Fujikura) Ratio of female managers: 4.5% (3.9% in FY2022) Employment rate handicapped person: 2.7% (domestic)
G	Corporate Strengthening governance	Realizing management that considers transparency and value creation	Reconstruction of management human resource pool and reselection for new pool Outside directors, CxOs, and Corporate Officer attended training presentations by management human resource (3 pools)
		Building group governance	Group Governance Basic Policy was formulated in January 2024. This policy applies to management and business execution throughout the Group.
		Supply Chain Management (including responsible mineral sourcing)	Fujikura Group Partners Meeting held in Tokyo and Shanghai FY2023 results: 146 companies and 221 participants Explanation of Fujikura Group 's management plan, procurement policy, and CSR procurement guideline Provided information on the importance of human rights due diligence in the supply chain, including responsible mineral sourcing, and on responding to climate change Implemented CSR procurement self-assessment questionnaire and Procurement Division survey