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

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 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

Based on the Group's Corporate Philosophy, MVCV, Fujikura Group believes that achieving sustainability requires both activities necessary for "sustainable corporate management" and activities that help build a "sustainable society."
Until now, we have established five-year CSR Priority Measures 2020 (fiscal 2015-2020) based on environmental and social materiality, and promoted each measure in cooperation with relevant unit. However, society has changed rapidly since the goals were set, making a fundamental review necessary. Therefore, for the new five-year Sustainability Goals 2025 (fiscal 2021-2025), starting in fiscal 2021, we have set goals that take into account environmental and social materiality while also taking into account financial materiality. In addition, by linking these goals with Fujikura Group 's long-term visions (Vision 2030 and Fujikura Group Long-Term Environmental Vision 2050), we have created goals that look more toward the future.
The Sustainability Goals 2025 were discussed and approval by the Sustainability Promotion committee (formerly the Sustainability strategy Council).

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.

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

The Sustainability Goals 2025 add F (finance/future) to the ESG perspective, newly incorporating the impact of the environment and society on corporate performance, and also taking into consideration the achievement of the company's long-term vision, such as the 2030 vision.

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.	In order to quickly commercialize fusion energy (fusion energy power generation), we will strengthen the production capacity of high-temperature superconducting wires, which are important parts. In the midst of international efforts, we will contribute to the development of high-temperature superconducting wires by responding to their increasing demand and leading to new business as a Fujikura.
	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)	Establishment of supply chain management that takes social issues (child labor, forced labor, etc.) into consideration Establish a system for responsible mineral procurement (due diligence system for cobalt, mica, etc., focusing on 3TG) Zero complaints from external parties such as NGOs (or prompt corrections when complaints are received) Collaboration with other companies (learning from other companies' efforts and applying them to our own)			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