CSR

Third-Party Opinion/Response to the Third-Party Opinion / Assurance by Third-Party

For me, this is the fourth review of Fujikura's annual CSR report. Reading this year's report left me with the impression that the scope of the information disclosed has increased both quantitatively and qualitatively. Activities and their reporting represent a "pair of wheels," and indeed this report demonstrates the progress of the Fujikura Group's CSR activities. Below, I will list the three points that I expect the Group to further improve regarding their annual CSR report.

According to the report, 2015 is the final year of the Group's medium-term CSR plan for 2015, and examinations are being conducted on the formulation of the next CSR plan. The business environment is constantly changing and it is critical for companies to identify and respond to international challenges and social needs with high sensitivity. The Fujikura Group CSR Committee is planning to collect a range of information and identify important CSR themes in a systematic manner, which is highly commendable. I expect the Group to show more specific targets in the next CSR plan. I also hope that the Group will foster the following process: clarify on a medium- to long-term basis what type of corporate entity the Group plans to become and what challenges it will address in each priority CSR field along with what actions it will take to meet these challenges; and then annually report on the progress of these plans. By disclosing information in a proactive manner that goes beyond the simple reporting of its activities, the Group will be able to communicate its sincere attitude to those who read its CSR report, and encourage employees, who also read the report, to take actions more proactively.

In the report, the Group states that it has been sincerely working to disclose corporate governance-related information within this year under the leadership of the department in charge. The number of institutional investors who consider nonfinancial information known as "ESG (environment, society and governance) information" in making decisions and engaging in investment activities has been increasing around the globe, with governance in particular being highly valued. Governance-related problems could have an enormous impact on companies and society, and companies are therefore required by society to establish a governance system and explain how it functions. I expect the Fujikura Group to establish a robust governance system and enhance the disclosure of related information.

In the feature article pages, the 130-year history of the Fujikura Group, which now operates in more than 20 countries, was summarized. Presently, 22 Group companies operate in Japan and 77 outside the country, and thus, overseas Group companies account for a much larger share of the Group.
The Group's presence will further increase outside of Japan, and accordingly, it will be required to give greater consideration to stakeholders on a global scale with regard to its management. In the present CSR report, focus is still being placed on activities in Japan, although some overseas initiatives are introduced in the sections on the Group's social contribution activities. I expect the Group to focus more on its overseas challenges and initiatives in its future annual CSR reports.
Additionally, when reading the report, I sometimes wondered whether "Group companies" referred only to Fujikura's subsidiaries in Japan or also included its overseas subsidiaries. It would be more intelligible for readers, and in particular overseas readers, if the reporting scope is more clearly described in future reports.

Our society is undergoing great changes and is facing a range of challenges. These include global warming, climate change, an increase in the number of endangered species, water-related risks, natural disasters that are causing ever-greater damage, increased population, poverty, human rights-related problems, and population aging. We need to address these problems on a global scale. The Fujikura Group CSR Committee is now examining the medium-term CSR targets for 2020 and the CSR themes that the Group will address far into the future. As a global corporate group, we will steadily implement measures to help create a sustainable society based on the medium- to long-term CSR targets that are now under examination and through daily corporate activities conducted responsibly by individual employees. Specifically, we will address each social challenge, cooperate with other members of society, and collaborate with our stakeholders to create new value for society.

We received a third-party opinion from Ms. Keiko Omori, who took a broader view of our report in her capacity as a third-party expert. Regarding the CSR activities and their reporting, which Ms. Omori compared to a "pair of wheels," we will further implement measures and make efforts to be highly evaluated as an advanced company in the field.
Ms. Omori also made recommendations regarding (1) formulation of new CSR priority measures for 2020, (2) enhancement of corporate governance-related information disclosure, and (3) the global viewpoint. Taking these recommendations seriously, the Fujikura Group CSR Committee and each of the study groups will work to improve the Fujikura Group CSR Integrated Report and enhance Group employees' daily CSR activities.

We have received a third-party review of the environmental performance data disclosed in the Fujikura Group CSR Integrated Report 2015 in order to increase the reliability of the data.　

The third-party verification report shows the results of the review conducted by Bureau Veritas Japan* concerning how the 2014 data on the amount of CO2 emitted from the use of energy (Scopes 1 and 2) and on the use of water were collected, calculated and reported in the Report.

*As a certification body, Bureau Veritas Japan engages in the testing, assessment, inspection and analysis of buildings, systems, consumer goods, as well as ship classification.