CSR

CSR Integrated Report

Fujikura Group CSR Integrated Report 2016

Fujikura Group's CSR

Concept and Initiatives for CSR

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. We regard CSR as one of the key pillars of our business activities and are actively implementing measures to fulfill CSR.

ISO 26000:Basis for our CSR activities

To earn trust from society, we are conducting CSR activities based on ISO 26000, which is the international standard on social responsibility.

[The Seven key principles and seven core subjects of ISO 26000]

ISO 26000 was officially released in November 2010 after the end of an examination period that lasted for 10 years. During this period, a range of stakeholders, including both developed and developing countries, examined the drafts of the standard from various aspects. The final version is based on seven key principles and seven core subjects. The Fujikura Group regards the internationally recognized ISO 26000 as important guidelines that effectively help the Group fulfill its social responsibility across the organization.

General approach

Fujikura Group CSR Philosophy, Basic Policy, Activity Guidelines

Our Group started CSR activities in April 2009. Along with this, we have established the following: “Fujikura Group CSR Philosophy", "Fujikura Group CSR Basic Policy ", and "Fujikura Group CSR Activity Guidelines". We determined "four priority areas" (materiality) when establishing the CSR basic policy.

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]

1.Sincere corporate activities
2.Concern for the environment
3.Respect for people
4.In harmony with society

Fujikura Group Activity Guidelines

1.Sincere corporate activities

(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)We work on maintaining and improving customer satisfaction by providing useful, safe and high-quality products and solutions from the viewpoint of customers.
(3)We conduct fair and transparent transactions in free and open competition.
(4)We maintain a healthy and normal relationship with politics, governments, citizens and various organizations.
(5)We manage and protect thoroughly information related to the Fujikura Group and its customers.

2.Consideration of the environment

(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.
(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.
(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.
(9)We contribute to society widely, actively participating in environmental preservation activities in the various countries and regions we operate in.
(10)We work on preserving the ecosystems, recognizing the importance of biodiversity in the global environment.

3.Respect for human beings

(11)We secure the safety of all people involved in corporate activities of the Fujikura Group to maintain and improve the working environment.
(12)We aim to create a comfortable workplace, where all employees can fully demonstrate their initiatives and creativity, without discrimination.
(13)We work on providing employees with opportunities equally and do all we can to assist them in maintaining their work-life balance.
(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

(15)We make social contribution actively, respecting the cultures and customs of the various countries and regions we operate in.
(16)We work on maintaining and developing healthy relationship with all stakeholders by broadly communicating with them.
(17)We disclose corporate information actively on a timely and appropriate basis.

Fujikura Group CSR Promotion System

At the Fujikura Group, the CSR Committee takes the leadership in fostering CSR-oriented management under the in-house company system. Under the four in-house companies, the business/sales bases and domestic and overseas subsidiaries of Fujikura Ltd. foster activities to fulfill their corporate responsibilities in cooperation with local communities in each country and region.
We also foster the sharing of CSR-related information by Group employees through the CSR website on the intranet and the internal CSR newsletter, CSR World (published in Japanese, English and other languages), aiming to encourage them to conduct CSR activities in their countries and regions on an equally high level. Through these activities, the Fujikura Group will be able to contribute to the creation of a society that is friendly to both people and the environment and "become a corporate group that is appreciated by customers and highly evaluated by society."

Measures for Our Stakeholders

In starting CSR activities in 2009, the Fujikura Group clarified the relationships between the Group and society (its stakeholders) based on the following idea of the Fujikura Group CSR Committee chaired by the president of Fujikura Ltd.: “Companies cannot survive on their own without society. We need to detect and respond to social changes toward the future through communication with society.” Specifically, the CSR Committee and the working teams under the Committee discussed the Group-stakeholder relationships and, as a result, we classified stakeholders who were strongly related to our corporate activities into the following six categories: customers; employees including their families; shareholders and investors; business partners (suppliers); local communities; and governments and the environment. For the fulfillment of our CSR, it is indeed essential for us to disseminate information about our corporate activities in a timely manner to these important stakeholders and incorporate their expectations and opinions into the management of the Group.

Accordingly, the Group will globally dispatch information mainly about its responsibilities and tasks to be fulfilled for its stakeholders. We will also foster new measures for our management priorities and CSR activities, while checking whether we are making appropriate responses to the opinions and ideas expressed by individual stakeholders.

Fujikura Group’s Communication with Stakeholders

Our major stakeholders		Our responsibilities and tasks	Communication methods
Customers	The Fujikura Group has been manufacturing electric wires and cables, optical telecommunications devices, electronic wiring components, and automotive components for 130 years since its foundation in 1885. As a global corporate group, we have customers across the world, including commercial enterprises and governments.	・Provision of safe products and services ・Manufacturing from customers' viewpoints ・Assurance of quality ・Provision of eco-friendly products ・Management for higher CS ・Protection of personal information	・Website (production and technological information) ・News releases ・Responses to CSR questionnaire surveys and audits ・Publication of newsletters on new products and technologies ・Display of products at showrooms and exhibitions ・Contact for inquiries
Employees	The Fujikura Group has 94 consolidated subsidiaries (21 in Japan and 73 abroad) and about 53,000 employees (about 6,000 in Japan, 32,000 in other Asian countries, 11,000 in the United States and 3,000 in Europe), who are conducting business activities globally across the world.	・Respect for human rights ・Respect for diversity ・Provision of equal employment opportunities ・Respect for work-life balance ・Human resource development ・Fair evaluation and treatment ・Occupational health and safety ・Comfortable workplaces	・In-house magazines of each company and the Group ・Intranet ・Publication of CSR newsletters ・Invitation of employees' children and families to the workplaces ・Internal whistle-blowing system ・Discussion-oriented labor-management relationship ・Management of employees' health and safety ・Employees' awareness surveys
Shareholders and investors	Fujikura Ltd. has paid-in capital of 53 billion yen and is listed on the first section of the Tokyo Stock Exchange. The number of outstanding shares totals about 360 million and the number of shareholders totals 23,101, of whom 23.75% are foreign nationals (as of the end of March 2015).	・Appropriate return of profit through dividends ・Timely and proper information disclosure ・IR communication ・Enhancement of the auditing function ・Communication about eco-funds and SRI ・Increase of corporate value	・In-house magazines of each company and the Group ・Intranet ・Publication of CSR newsletters ・Invitation of employees' children and families to the workplaces ・Internal whistle-blowing system ・Discussion-oriented labor-management relationship ・Management of employees' health and safety ・Employees' awareness surveys
Business partners	The Fujikura Group manufactures and sells products in more than 20 countries and regions in the world. In the course of our business activities, we procure materials, parts and equipment from local suppliers. They are our business partners with whom we strive to build win-win relationships.	・CSR-oriented procurement criteria ・Fair and appropriate trading ・Green procurement ・Supply chain management ・CSR-related support across the supply chain	・Partners' meetings ・CSR questionnaire surveys targeting suppliers ・Website for exclusive use by suppliers ・Daily discussion with suppliers ・Contact for inquiries
Local communities	The Fujikura Group has 99 consolidated subsidiaries across the world. These bases are engaged in production and sales activities, while respecting the local culture, customs, tradition and history of the area they operate in. They also conduct various activities with local residents for the development of their community.	・Local social contribution activities ・Volunteer activities and collaboration with NGOs ・Dialogue and collaboration with local inhabitants ・Community investment ・Respect for local culture and customs ・Environmental protection ・Safety and prevention of accidents	・Factory tours and open access to the corporate facilities ・Local volunteer activities ・Regular meetings with local governments ・Disaster support agreements with local governments and others ・Support to local cultural and traditional events ・Participation in and support for activities to revitalize local industries ・Support for school education (through the dispatch of lecturers)
Governments and the environment	The Groups' business sites are regulated by local governments and administrative organizations. These sites conduct activities and exchange information also in their capacity as members of related business associations. For environmental conservation, the sites are proactively conducting activities in line with the Group's environmental policies and guidelines and based on the environmental policies of local governments.	・Tax payment ・Formulation of environmental protection policies ・Collaboration with NGOs ・Biodiversity conservation ・Zero emissions and recycling ・Anti-global warming measures and energy conservation activities ・Management and reduction of the use of hazardous chemicals	・Participation in economic and industrial associations ・Discussions with and requests to the governmental authorities ・Submission of various notifications and questionnaire replies ・Compliance with legal regulations ・Responses to environmental authorities and regulations ・Public disclosure of the environmental policies and activities

Materiality and the related activities

Issues of materiality

The Fujikura Group formulated the Fujikura Group CSR Basic Principles in 2009 and designated the following four items ("four focus areas") set under the principles as the "issues of materiality" for the Fujikura Group.

Four focus areas

1.Sincere corporate activities: As a corporate citizen, we conduct corporate activities sincerely, complying with all the relevant laws and regulations of each country and region; provide products and services from the viewpoint of customers; conduct fair and transparent tractions, maintain a healthy and normal relationship with governments and various organizations; and manage and protect information in a thorough manner.
2.Concern for environment: We set voluntary management standards and work on maintaining and improving them, while complying with environmental regulations of each country and region; reduce our environmental burden in all business activities; manufacture environmentally friendly products and provide customers with relevant information; participate in environmental activities in each country and region; and work on preserving the ecosystems.
3.Respect for human beings: We ensure the safety of all employees and create a comfortable workplace where all employees can work without discrimination; provide employees with equal opportunities and assist them in maintaining their work-life balance; and respect human rights and never allow forced or child labor.
4.In harmony with society: We make active contributions to society, respecting the culture and customs of each country and region we operate in; communicate widely with all stakeholders; and disclose corporate information proactively and appropriately on a timely basis.

Process leading to the selection of issues of materiality

We designated the aforementioned "four focus areas" as "issues of materiality" based on internal discussions made in reference to the comments and viewpoints offered by a range of stakeholders including experts, customers, advanced companies, business partners, the environment, governments and employees. The Fujikura Group is committed to making its sustainable growth compatible with the creation of a sustainable society through its corporate activities as its CSR, and we at the Group believe that the "four focus areas" will and should continue to be the "issues of materiality" for the Group, even if the social environment surrounding our business changes in the future.

Initiatives related to the issues of materiality

The Fujikura Group has been fostering its CSR initiatives based on the "four focus areas," which the Group has clarified as the "issues of materiality" We specified the stakeholders for the four areas and also clarified the relationship between the areas and the core subjects of ISO 26000 after this international standard on social responsibility was issued in 2010. Moreover, we conducted a materiality matrix analysis to select specific "areas of activity" and examine them from the viewpoint of stakeholders ("interest of stakeholders" - external factor) and in consideration of the impact of the areas on our business management ("degree of impact on the business" - internal factor). Further, we incorporated the opinions given by third-party experts and our stakeholders in setting the CSR goal in the 2015 Mid-Term Business Plan, formulating the priority CSR measures to achieve the goals, and in selecting the annual targets for the achievement of the medium-term goal. We have thus implemented initiatives related to "issues of materiality" one by one and we report on their progress and results in our CSR report.

Relationship with the issues of materiality

In the following table, we show the relationship of the "four focus areas," which are the "issues of materiality" for the Group, to the "areas of activity" for the fulfillment of CSR, the targeted stakeholders and with the ISO 26000 international standard on social responsibility.

Four focus areas	Core subjects of ISO 26000	Areas of activity	Priority measures (medium-term/annual)	Major stakeholders
1. Sincere corporate activity	1 Organizational governance	Corporate philosophy CSR CSR management Information disclosure and communication Compliance	(1) (2)(3)(4)(5) (6)(7)	・Investors ・Shareholders ・Customers ・Business partners ・The environment and governments ・Employees ・Local communities
1. Sincere corporate activity	5 Fair operating practices	Risk management Business continuity plan (BCP) Procurement activities	(19) (18) (20)
2. Concern for environment	4 The environment	Fujikura Environmental Action Guidelines, Version 4 (2011-2015)	(15)(17) (16)
3. Respect for human beings	2 Human rights	Provision of safe and healthy work environments	(8)(9)
	3 Labour practices	Diversity (provision of equal opportunities)	(10)(11)
		Employment of diverse human resources	(12)
		Work-life balance	(13)(14)
4. In harmony with society	6 Consumer issues	Quality management and quality assurance	(21)
	7 Community involvement and development	Enhancement of cooperation with local communities	(22)(23)
	7 Community involvement and development	Social contribution activities	(24)(25)

Relationship between the issues of materiality ISO26000

Relationship between the issues of materiality and ISO26000

Toward the formulation of the new "CSR Priority Measures 2020”

The Fujikura Group's medium-term business plan, which began in the 2015 financial year, has now started for the 2016 financial year. The Fujikura Group CSR Committee set the theme for the new CSR priority issues for the 5 years until 2020 as "CSR Priority Measures III" (now stage 3).

However, the CSR situation we are dealing with is in the midst of internationalization and diversification. Problems such as climate change due to global warming, and increased extinction of species are examples of this. Furthermore, there are social issues such as human rights and diversity. Many international issues and requests from society have also been raised, such as governance efforts against corruption, and socially responsible investment. In pursuing CSR, it was difficult to determine how to tackle what aspects of these issues and requests by 2020. For that purpose, the committee has formulated the “CSR Priority Measures III” for CSR prioritized by 2020, which will reference recommendations from a CSR expert in their review, as well as make predictions from various aspects related to the medium to long term.

2020 Medium-term Fujikura Group CSR Targets and Priority Measures

[Target] "Making the Fujikura Group highly valued by the international community, including investors”

[Priority Measures]

Formulation policy and formulation process

Formulation of New Priority CSR measures for 2020

2020 Mid-term Business Vision

1.Basic Policy

We will basically succeed the 2015 Mid-term Business Plan's basic policy.

“Utmost importance on profitability” to ensure sound growth.
Build a company that creates value for customers by accelerating “metabolism”.
To secure sustainability, establish corporate governance, enhance reputations of environment and social aspects.
Share the objectives and aim at the goal by “team” having broad-minded and free in the disposition.

Targets and plans for CSR priority measures

ESG themes	CSR priority measures	Measures for 2020	Promoting plan for 2016
Environmental Themes（E）	1. CO₂emissions reduction	1. Reduction of CO₂ emissions ① Domestic consolidated subsidiary: 3% or more reduction (compared with 2013) (Long-term target by 2030: 6.5% or more compared with 2013) ② Overseas consolidated subsidiary (Medium term target: under consideration)	1. Reduction of total CO₂ emissions ・ Domestic consolidated subsidiary: 0.6% or more reduction (compared to 2013) ・ Overseas consolidated subsidiary: Target value: under consideration
	2. Water-related risks	1. Establishing improvement targets for water consumption, and implementing improvements. 2. Implementing water risk assessment, implementing risk reduction. 3. Respond to and be evaluated by CDP Water.	1. Improve by more than 1% (compared to 2015) 2. Survey of water risk
	3. Activities to conserve biodiversity	1. Utilizing the green area of the premises: Kiba Millennium Woods, Sakura Millennium Woods and Suzuka Millennium Woods are all familiar to employees. 2. Complete preparations to open Sakura and Suzuka to neighboring residents, and complete communication plans with neighboring residents.	1. Setting and promotion of 2020 medium-term goal 2. Making road map 2030 known 3. Promotion of Satoyama office concept
Social Themes（S）	4. Respecting human rights	1. For the company to have human resources, diverse in areas such as nationality, race, sex, religion, age, birthplace, etc., actively working together. 2. For the entire group to have the correct awareness of harassment, and nurture a habitual climate in which harassment is neither done nor tolerated.	1. Formulation of human rights policy 2. Human rights awareness activities
	5. Diversity and inclusion	1. Share Fujikura Group HRM Vision with all domestic and overseas groups, and grow together towards the goal. 2. Have diverse personnel, with a high consciousness that "everyone is a protagonist", who are "connected", becoming a company that produces creative ideas.	1. HRM vision / system construction 2. Employment of diverse human resources 3. Promotion of successful working women 4. Employment of people with disabilities * HRM: Human Resource Management
	6. Development of global human resources	1. For the Fujikura Group HRM Vision to be shared by all groups, and grow together towards a common goal. 2. Employees are respected, creating desirable human resources globally, becoming a "company with dreams".	1. Continuation of overseas trainee system 2. National staff support
	7. Work-life balance	1. Various human resources contribute to the company, according to their respective roles. 2. Fostering a climate where high productivity work is conducted in a limited time, and contributions are made to the company.	1. Realization of a flexible work system 2. Work style changes
	8. CSR in supply chain management	1. For company and major group companies to hold partner meetings, and for them to be appropriately managed. 2. Conduct surveys with partners and evaluate appropriately. 3. Have the group CSR procurement guidelines be observed. 4. Recognize risk, and manage it by company and group.	1. Group expansion of partner meetings 2. Promotion of partner CSR 3. Securing human rights 4. Risk extraction and PDCA by supply chain phase
	9. Working with and contributing to local communities	1. To be the pride of the region, and for them to be glad to have Fujikura. 2. To become a company that represents the region and is highly regarded. 3. For our employees are proud of being Fujikura Group employees.	1. Promotion of regional cooperation 2. Review of volunteer system
Management (Governance) Themes（G）	10. Group Corporate Philosophy (MVCV)	1. Information sharing in all groups (Japanese / English) ① MVCV textbook for intranet + overseas access ② Introduction of Fujikura Odyssey to group companies 2. Enhancement of MVCV training: Survey penetration and starting up of activities 3. Link with Fujikura brand	1. Training workplace missionaries 2. MVCV training for hierarchical training 3. MVCV enlightenment for all participants 4. Expansion to overseas groups
	11. Connection to the community	1. For CSR to respond quickly to information such as initiatives. 2. To respond quickly to regulations and policies of countries, ministries and agencies. 3. To respond quickly to information on related organizations and customers. 4. To disclose information promptly to requests by SDGs, etc.	1. Respond to changes in society 2. Cooperate with domestic and international societies
	12. Information disclosure and communication	1. To be able to disclose information highly appreciated by the international community. 2. Stable selection for global index brands. 3. To disclose information that meets the expectation of stakeholders. 4. To be able to communicate regularly with stakeholders.	1. Respond to investor's ESG information 2. Enhancement of integrated report contents, etc.

New initiatives in the 2015 financial year

There were three main categories to the Group's activities that were newly initiated in the 2015 financial year: Environmental (E), Society (S), and Governance (G). In terms of the environment, activities included the establishment of the "Fujikura Group Environmental Long-term Vision 2050", and the new "Fujikura Group Environmental Management Activity Guidelines". In terms of society, the establishment of a special subsidiary, "Fujikura Cube", and the opening of a healthy, active space for employees were key points.For governance, as with the group's "medium-term business plan" for the 2020 financial year, it was the formulation of the new "CSR Priority Measures" for the 2020 financial year. The main items from these efforts are summarized below as a list.

Quantitative reporting of the Group's CSR activities

Since the Fujikura Group launched its group-wide CSR activities in 2009, the CSR Committee has been proactively working to establish the Group's CSR philosophy and basic principles while implementing measures for priority CSR issues. In 2015, the Committee also began quantifying the entire Group's CSR activities in an intelligible manner for its multiple stakeholders. In this section, we quantitatively report the CSR activities conducted by 54 major Group companies in fiscal 2015. To calculate the monetary value of these activities, we referred to the unit prices used in the social contribution questionnaire survey conducted by the Japan Business Federation (KEIDANREN).

[Group companies included in the data tabulation]

(1) 15 major bases of Fujikura Ltd.
(2) 24 major Group companies in Japan
(3) 29 major Group companies outside Japan

The above 54 Group companies together account for 95% or more of the total number of employees.

■Fujikura Group's Social and Local Community Contribution Activities

Fujikura Group's Social and Local Community Contribution Activities

■Fujikura Group's Global Environment Protection Activities

Fujikura Group's Global Environment Protection Activities

■Fujikura Group's safety and sanitation activities and worker-friendly workplace creation activities

Fujikura Group's safety and sanitation activities and worker-friendly workplace creation activities

New initiatives in the 2015 financial year

There were three main categories to the Group's activities that were newly initiated in the 2015 financial year: Environmental(E), Society(S), and Governance(G). In terms of the environment, activities included the establishment of the "Fujikura Group Environmental Long-term Vision 2050", and the new "Fujikura Group Environmental Management Activity Guidelines". In terms of society, the establishment of a special subsidiary, "Fujikura Cube", and the opening of a healthy, active space for employees were key points. For governance, as with the group's "medium-term business plan" for the 2020 financial year, it was the formulation of the new "CSR Priority Measures" for the 2020 financial year. The main items from these efforts are summarized below as list.

ESG Theme

Subject

New initiatives in the 2015 financial year

Environmental	Environmental Vision	Establishment of Fujikura Group Long-term Environmental Vision
	Guideline	New Fujikura Group Environmental Management Action Guidelines
	Collaboration each society	Promote "COOL CHOICE" with the Ministry of the Environment
	Information disclosure	Expansion of third party assurance (environmental data including scope 3)
	Biodiversity	Preservation of biodiversity (start of activities for Satoyama Park offices)
	Social evaluation	Certification of Fukagawa Gatharia’s greenspace as an Urban Oasis

Society	Diversity	Special subsidiary "Fujikura Cube" Action plan for the promotion of successful, working women
	Respect for human rights	Fujikura group harassment prevention policy and efforts UN Guiding Principles on Business and Human Rights
	Ease of work	Appropriate working hours, efforts to reform working methods Work-life balance support system (list) Activities to raise employee incentives (list)
	Human resource development	Group training and seminar activities
	Health and Productivity management activities	Healthy, active space FHAB opens Started exercise function test Development of standing work model for workplace Started bicycle commuting program "Jitetsuu"
	Occupational Health and Safety	Nordic walking experience meeting Introduction and utilization of Presentism
	Responsibility to society	Actions for quality management (quality policy revision, start of CQO activity, etc.)
	Cooperation with society	Events in support of 2011 Tohoku earthquake and tsunami reconstruction
	Cooperation with society	Collaboration with NPO / NGO etc.
	Social evaluation	Certification by the Tokyo Metropolitan Government as a Tokyo Sports Promotion Company

Governance	Aiming management	2020 Medium-term Business Plan
	Responsibility to society	Establishment of new 2020 Medium-term CSR Priority Measures
	International collaboration	UN Sustainable Development Goals (SDGs) Incorporating OECD international taxation rules
	Partner Collaboration	Fujikura Group Procurement Guidelines
	Social evaluation	External evaluation (FTSE4Good, Morningstar Socially Responsible Funds)
	Governance	Governance system Outside director and outside corporate auditor
	Risk management	Intellectual property strategy Kumamoto earthquake and BCP
	Compliance	OECD Guidelines for Multinational Enterprises response table

The 4th Stakeholder Dialogue

Theme: A consideration of Fujikura Group CSR medium-term issues

Date of dialogue: August 7, 2015 (Fri.)

Location: Head office conference room, Fujikura Ltd.

Guest:Hiro Motoki (President and Representative Director, E-Square Inc.)

Fujikura: Akio Miyagi (Director and Managing Executive Officer)
Akira Wada (Director and Managing Executive Officer, Environment Division Head)
Takashi Takizawa (Managing Executive Officer, Director of the Corporate Planning Office)
Yukihiro Nakayama (Director of Human Resources/General Manager)
Hiroyuki Miyata (Director of Quality and Environmental Management)
*Title held at time of dialogue Titles and suffixes have been omitted in the text.

Dialogue:: Environment; ・ Climate change issues; ⇒ Global warming countermeasures centering on the United Nations COP
⇒New legally binding framework in COP 21; ・ Water risk; ⇒The amount of water that humans can use on earth is 0.01%
⇒It will be in 1st place for “Global risks with the greatest potential impact”
⇒How to solve the water issue will be a big theme in future Global Consortiums; Social; ・ Human rights; ⇒According to US Department of State evaluation, Japan is on par with developing countries
⇒Human rights issues in Japan receiving international criticism from United Nations, etc.; ・ Diversity; ⇒In the report on gender gap, Japan ranked 104th (from a total of 142 countries), on par with developing countries
⇒Promotion of successful, working women is being progressed through international measures from UN, etc; Governance; ・ View of strengthening investors; ⇒CSR gives competitive edge for sustainable growth, and incentive for growth; ・CSR Communication; Company value is strengthened by stakeholder expected value and requests for information disclosure
⇒Crucial for information disclosure feedback to reflect company management; ・CSR Supply chain Management; ⇒Reduction of business risks, improvement of operation efficiency, results in creation of business opportunities
⇒Risk extraction and PDCA development by supply chain

Fujikura Group's priority CSR measures and initiatives and evaluation of the results

The Fujikura Group aims to become a company advanced in CSR, and its CSR goal has accordingly been set to be attained by the end of fiscal 2015. In order to achieve this goal, we set 25 items within the priority CSR measures along with annual targets to be achieved through a PDCA cycle.
In fiscal 2015, we conducted activities designed to achieve the annual targets under the leadership of the supervising departments. The results and evaluation of the activities are shown in the following table.

In fiscal 2015，Fujikura Group's priority CSR measures evaluation of the results

[Evaluation]○：Attained as planned △：Attained later than planned Ｘ：Not attained

Core subjects of ISO 26000	FY2015
Core subjects of ISO 26000	Priority measures	Plans	Activity results	Evaluation	Task
1.Organizational governance	(1)Implementation of the Corporate Philosophy MVCV	1.MVCV training as part of stratified training 2.Enlightenment through the awareness month 3.Enhancement of internal information dispatch	・ Management philosophy training: 93 people attended ・ 340 workplace penetration activities and 11 excellent elections ・ Creation of overseas textbooks (Japanese / English edition)	○	・ Penetration into overseas group
	(2)Enhancement of the CSR-related campaigns	1.CSR related briefing session: 5 times 2.Number of CSR campaigns: 20 3.Dispatch of the Millennium Woods information: 30 times	・ Biotope briefing sessions etc. : 7 times a year ・ CSR campaigns: 42 times per year ・ Millennium Woods Diary on HP: sent out 35 times	◎	・ Penetration to employees
	(3)Organization of a stakeholder dialogue meeting	1.Examinations to decide on the theme 2.Holding of a dialogue meeting 3.Content is published in the report	・ Held: August 7 "Considering CSR medium-term tasks” ・ Publication in the report	○	・ Implemented with international important themes to which society is paying attention
	(4)Independent Assurance Report in the CSR report	1.Review the evaluation company 2.Determine the inspection details with the evaluation company 3.Verification acquisition and reporting	・ Verification acceptance date: May 26th ・ Acceptance items: CO2 emissions, water consumption volume ・ Validation receipt, posted in the report	○	・ Items subject for acceptance and expansion of bases
	(5)Use of ISO 26000	1.Confirm the position of CSR activities 2.Group CSR activity survey 3.Concentration of CSR activities	・ Association analysis with materiality ・ Group activity survey ・ Published in CSR report	○	・ Employees’ understanding and penetration of the social responsibility international standard (ISO 26000)
	(6)Promotion of the disclosure of CSR information	1.Provide more CSR information on the intranet 2.Millennium Woods Four Seasons Information: once a week 3.Frequency of CSR information dispatches to employees:105 times	・ New theme of the report: 80 items ・ Millennium Woods Four Seasons Information: 35 times ・ Company intranet CSR information: 110 times	◎	・ Further disclosure of information on Society and Governance themes
	(7)Enhancement of external communications	1.Exchange information with advanced companies 2.Hold a dialogue meeting 3.Participate in regional community activities	・ Participated in the JEITA Conflict Minerals Committee ・ Dialogue at regional culture course ・ Dialogue at Biotope Briefing Session: 280 people	○	・ Implementation of international efforts as new fields and groups
2.Human rights 3.Labour practices	(8)Steady implementation and promotion of OSHMS within the Group	Foster implementation at overseas Group companies as well	・ Domestic safety patrols: 11 companies / bases New group company: 1 company	△	・ Expanding to overseas group companies
	(9)Mental healthcare system	1.Implement mental health measures to prevent illness ・Improvement and implementation of stress check 2.Implement a workplace revitalization program	・ Stress check by medical examination ・ Collection and analysis of activation program and data	△	・ Clarification of issues
	(10)Personnel management of global human resources	1.Enhance the employment of non-Japanese workers 2.Improve the public solicitation system 3.Operation of international trainee system	・ Hiring engineers from India and China ・ Internal recruitment: conducted 4 times ・ Implementation: FFC, FETL	△	・ Progress of initiatives
	(11)Employment of more people with disabilities	1. Increase the employment of people with minor disabilities 2. Establish a special subsidiary and begin employing people with intellectual disabilities	・ People with disabilities target employment rate: achieved 2.0% ・ Establishment of special subsidiary (11/2), recruitment of 5 people with disabilities	◎	・ Improve employment rate for people with disabilities
	(12)Percentage of female managers	1.Decrease the turnover rate through the career counseling service 2.Employment rate of women in office work: 50% of the total	・ Hearing and extracting issues with counsel ・ 2016 new female graduates hired for office work: 50% ・ Successful working women promotion plan	△	・ Progress of initiatives
	(13)Steady use of the parental leave system by men (on an unconsolidated basis)	1.Continue the enlightenment activities ・Brief on the system in educational seminars	・ Male persons who took childcare leave: 1 additional person ・ Explanation of system at newly appointed training	△	・ Promoting workplace understanding
	(14)Examination of various working styles	1.Examine working styles 2.Conduct feasibility studies	・ Survey, interview etc. for at-home work ・ Investigation and examination of issues for short working hours	△	・ Progress of initiatives
4.The environment	(15)-(17): As described in the environmental section of the Fujikura Environmental Management Action Guidelines (2011-2015)
5.Fair operating practices	(18)Enhancement and expansion of BCP to BCM	1.Promote BCP at in-house companies 2.Foster BCP at Group companies' bases 3.Maintain the BCP system	・ Building of BCM domestic bases: 3 companies Overseas bases: 1 company in China ・ Training at headquarters / offices and other locations	○	・ Sharing employee BCM information
	(19)Examination of information security management (based on the ISMS)	1.Continue monitoring and examining the trends 2.Enhance information leakage prevention measures	・ Trend survey etc. on the number of organizations acquiring ISMS	○	・ Clarification of future issues
	(20)CSR-oriented supply chain management	1. Continue holding a partners' meeting 2. Continue conducting the supply chain CSR survey 3. Examine how to evaluate suppliers	・ Tokyo: 65 companies / 104 people; China: 28 companies / 57 people ・ Started preparing CSR Procurement guidelines	○	・ Responding to initiatives such as human rights issues in the supply chain
6.Consumer issues	(21)Increase in customer satisfaction (CS)	Share quality information for higher CS 1.Continue operation and foster management	・ Developed to connector company companies ・ Examining utilization of existing DDK system	○	・ Continuation of initiatives
7.Community involvement and development	(22)Enhancement of cooperation with local communities	1.Respond to local stakeholders 2. Cooperate with local stakeholders	・ Provide local kindergarten with potato digging location ・ Support local town magazines ・ Sponsor and participate in local cinema festivals	○	・ Increase number of participating staff and revitalize activities
	(23)Support to employees working as volunteers	1."Biological wonder land" for children 2.Seminars on biotopes at "Fujikura-Kiba Millennium Woods 3.Support for Fujikura Gakuen	・ Create 3 themes ・ 40 employees at Biotope Briefing Session ・ Support the Fujikura Gakuen’s product sales	○	・ Improve employees’ awareness of volunteer works
	(24)Formulation of the basic policies on social contribution	1.Foster enlightenment through policy announcement 2.Review the activities conducted by Group companies	・ Publication in the report ・ Approximately 300 posts from 55 group companies ・ Information sharing by group	○	・ Penetration of policies to the entire group
	(25)Expansion of the Fujikura Gakuen Support Group activity	1.Conduct enlightenment activities 2.Implement a campaign to collect more support money	・ Lecture at induction training ・ Visiting new employees ・ Fujikura Gakuen Product Sale (twice)	○	・・Penetration to further employees・ Penetration to further employees

Self-evaluation of the activities conducted in line with the priority CSR measures in fiscal 2015

The Fujikura Group made a self-evaluation of the activities conducted in line with the 25 items of the priority CSR measures in fiscal 2015, Self-assessment as a whole for CSR activities in the 2015 financial year was evaluated with 2015 being the final year of the four-year plan, and it was concluded that we have achieved almost 15 medium-term CSR targets, though issues do still remain.

Self-evaluation method

Fujikura Group disclose the self-evaluation results of the activities in the CSR report. We ensure the integrity of the self-evaluation by taking the following steps: (1) supervising departments implement a four-grade self-evaluation for each item of the priority CSR measures; (2) a four-grade "peer evaluation" is made by each of the 20 members of the CSR Committee; and (3) comprehensive analysis of the evaluations is undertaken by the 20 parties, and the final evaluation of the analysis results by the director in charge.

Introduction and Utilization of International Initiatives and Guidelines

The Fujikura Group regards it as the Group's corporate social responsibility (CSR) to make the creation of a sustainable society and the sustainable development of the Group compatible. Based on this recognition, we are fostering a range of CSR activities in line with the Group's philosophy, basic policies and action guidelines on CSR.
We are accelerating our global business activities in more than 20 countries and regions toward the achievement of the highly ambitious targets set in the Group's 2015 Mid-Term Business Plan. In the process, we are receiving more expectations and requests from society and stakeholders regarding our CSR activities. In our effort to firmly meet these expectations and requests, which are increasing in depth and complexity, we are proactively introducing the relevant international initiatives and guidelines.
The Fujikura Group is mainly fostering the introduction and use of the following international initiatives and guidelines in the globalization of its business.

Sustainability Reporting Guidelines of the GRI
ISO 26000: Guidance on Social Responsibility by the ISO
The Ten Principles of the United Nations Global Compact
United Nations Guiding Principles on Business and Human Rights
OECD Guidelines for Multinational Enterprises
ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy

etc

Status of introduction and utilization

The following shows the status of introduction and utilization of the initiatives and guidelines.

Initiatives/guidelines	Status of utilization
Initiatives/guidelines	Introduction to CSR activities	Used as the CSR report creation criteria	Inclusion of a comparison table in the report	Introduction and utilization on the intranet	Creation of a yearly report
Sustainability Reporting Guidelines of the GRI		○	○
ISO 26000: Guidance on Social Responsibility by the ISO	○	○	○	○
The Ten Principles of the United Nations Global Compact	○		○	○	○
United Nations Guiding Principles on Business and Human Rights	○			○
OECD Guidelines for Multinational Enterprises	○			○
ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy	○			○
Version 1.0 of the International Integrated Reporting Framework, IIRC		○	○
UK Stewardship Code, Financial Reporting Council	○
Japan's Stewardship Code, Financial Services Agency	○
Japan's Corporate Governance Code, Tokyo Stock Exchange and Financial Services Agency	○				○
FTSE4Good Index Series, London Stock Exchange	○
Revised EICC Code of Conduct (v.5.0), Electronic Industry Citizenship Coalition (EICC)	○		○
Third UN World Conference on Disaster Risk Reduction, Sendai Framework for Disaster Risk Reduction, and the Sendai Declaration	○
Gender equality-related ideas and measures implemented in the EU	○
United Nations Principles for Responsible Investment (PRI)	○
United Nations Women's Empowerment Principles (WEPs) (seven principles)	○
Nairobi Forward-looking Strategies for the Advancement of Women, United	○
Environmental Reporting Guidelines 2012, Japanese Ministry of the Environment		○	○
Carbon Disclosure Project (CDP) (Non-governmental organization)	○				○
United Nations Climate Change Conference in Paris (COP21)	○
United Nations Intergovernmental Panel on Climate Change (IPCC)	○
OECD Environmental Outlook to 2050	○
BLUE Map Scenario, International Energy Agency (IEA)	○
United Nations Millennium Ecosystem Assessment	○
Convention on Biological Biodiversity, United Nations Conference on Environment and Development (UNCED, Earth Summit)	○
National Biodiversity Strategy of Japan 2012-2020National Biodiversity Strategy of Japan 2012-2020	○
Global Risks Report 2015, World Economic Forum	○
GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard, World Resources Institute and World Business Council for Sustainable Development	○
UN "SDGs"	○	○
OECD"BEPS"	○

Activities to help establish an international framework

Fujikura became a signatory to the United Nations Global Compact (UNGC) on September 3, 2013, expressing support for the universal and international principles advocated by the United Nations on human rights, labor, the environment and anti-corruption. By participating in the UNGC activities, the company is helping the United Nations build up an international framework beyond national and regional boundaries. Under the leadership of the United Nations and the Global Compact Network Japan (GC-NJ), the Fujikura Group is conducting activities for the establishment of the framework.

[Major activities]

To implement the specific measures for our Roadmap 2030 long-term vision for biodiversity, we held a dialogue meeting with an expert in biodiversity. In the meeting, we discussed the direction that about 100 Fujikura Group companies located across more than 20 countries should move toward based on the Millennium Ecosystem Assessment and the Convention on Biological Diversity fostered by the United Nations.
In Japan, in China and also in Thailand, the Fujikura Group held a partners’ meeting by inviting its suppliers and other parties as part of its CSR-oriented supply chain management activity. In the meeting, we asked participating suppliers to conduct CSR activities themselves and cooperate with our own CSR activities based on the Ten Principles of the UN Global Compact, which addresses human rights, anti-corruption, and other issues.
On September 26, 2015, the United Nations Summit(hosted by the UN) adopted the 2030 Agenda for Sustainable Development (17 goals and 169 targets) for sustainable development goals [SDGs] *) with international issues that must be addressed by countries, municipalities, businesses, and organizations. Our Group, which promotes CSR, carries out campaigns to spread this, whilst clarifying our own position on these 17 goals and 169 targets established as development targets, with the following categories:"what we are doing/have done", "future efforts", and "objects that are not targeted”. Using the matrix method, we have identified areas and themes to be proactively pursued in the future (priority issues), and we aim to overcome the issues by 2030, by cooperating with international society.

*SDGs：Sustainable Development Goals

Activities supporting the UN Global Compact

Following a decision made by its CSR Committee (Management Committee) in July 2013, Fujikura Ltd. announced its support to the United Nations Global Compact (UNGC), which outlines the universal and international principles on human rights, labor, the environment and anti-corruption. Subsequently, on September 13, 2013, the company became a signatory to the UNGC and also joined the Global Compact Network Japan (GC-NJ). The UNGC, which is based on the Ten Principles, provides a global framework for companies and other organizations to act as good corporate citizens for the creation of a sustainable society by displaying leadership in a responsible manner. Fujikura is conducting activities under this framework.

President Nagahama

President Nagahama signed the Global Compact
(in Sept. 2013)

Introduction of the Global Compact in the president's speeches

Campaign poster

■Awareness-raising activities conducted to steadily implement the UNGC

Actor	Description of the activity
President of Fujikura	The president explains the significance of the UNGC in the following speeches: - Speeches made in educational seminars for new employees - Speeches addressed to employees of Fujikura and other Group companies - Speeches addressed to suppliers
CSR Committee	The CSR Committee is working to raise employees' awareness through the following: - Educational seminars for new employees - CSR education provided to employees -Awareness-raising campaign held every September - Dispatch of information to employees on the intranet - Creation of a comparison table between the Ten Principles and the Group's activities
Procurement department	At the partners' meeting held by the procurement department, participating suppliers are briefed on the UNGC. - The president and director in charge formulate explanations about the UNGC in the meeting.

Initiatives of SDGs

Fujikura Group initiative to SDGs

*SDGs（Sustainable Development Goals）

Fujikura Group Initiatives

Our Group utilizes the "five steps" of SDG Compass to promote SDGs efforts, and as of June 2016, we are in step 2, "Determine Priority Issues". The efforts to determine the "priority issues" of the SDGs were decided through the following three analyzes:

(1) Relationship between SDGs and the Group's "Materiality" and "2020 Medium-term CSR Priority Measures”

Our Group CSR Committee has confirmed that there is a relationship between the 4 Priority Areas (Materialities) established in the Fujikura Group CSR Basic Policy, and the 17 SDGs . We have also confirmed that all themes of the 17 SDGs relate to the 4 Materialities Areas”. In addition, we have verified the correlation between the 17 SDGs and the12 themes of the medium-term targets for the CSR Priority Measures that the Group will complete the 2020 financial year. As a result, many themes are related to each other, and we found that contribution to SDGs is also possible within our CSR medium-term targets. This also corresponds to Step 4 - Integrate into Management, which is one of the five steps for the SDG Compass.

(2) Matrix Analysis and Analysis by Number of High Evaluations for the 17 SDGs

We used the materiality matrix method in accordance with the guidelines of the SDG Compass to decide on priority issues for us to address first from the 17 SDGs. The 17 SDGs are evaluated in four stages by the members of the CSR Committee on the two axes of "degree of interest by society" and "degree of influence by company's business". The theme is narrowed down using the Point Matrix Analysis, based on the distribution of the average points [Figure 4]. In addition, an analysis method was also conducted to tabulate the numbers that each committee member evaluated as "very high" or "high" in judging importance.

Matrix analysis

(2)Supply chain mapping analysis

Determining SDG priority issues

In order to decide "priority issues" from the 17 SDGs, we comprehensively analyzed and evaluated using the following three methods: (1) "Matrix Analysis"; (2) “High (Important) Number Analysis”, with those that the committee members considered to have a high degree of interest / influence; and (3) "Supply Chain SDGs Mapping Analysis". As a result, we selected the following six items as Priority SDG Issues. This also corresponds to the 2020 Medium-term CSR Priority Measures, as well as "Integrate into Management" of step 4 of the SDG Compass, which is the guideline for SDGs.

Our priority SDG issues are the six goals as follows.

Response to the United Nations International Strategy for Disaster Reduction "Sendai Framework for Disaster Risk Reduction”

■ Fujikura Group's response to priority actions of the "Sendai Framework for Disaster Risk Reduction”

Four priority actions	Response table of our group	2015 financial year
1. Understanding disaster risk	・ Do not forget the experiences of the Great East Japan Earthquake and the Thailand floods in 2011	◎
	・ On March 11 every year, send a top message regarding disaster reduction to all group employees	◎
	・ Continue to send information on expected damages for the Nankai megathrust earthquakes and earthquakes immediately below the capital city.	◎
2. Disaster risk management governance	・ Establishment of Fujikura Group disaster preparedness guidelines	◎
	・ Group risk management	◎
	・ Creation of business continuity plan BCP and BCM for all groups	○
3. Investment for strengthening disaster prevention	・ Earthquake resistant structuring for domestic group bases (completed)	◎
	・ Preparation of headquarters function maintenance system for disasters (completed)	◎
	・ "Disaster Card" that employees always carry, emergency contact network, safety confirmation system (completed)	◎
	・ Installation of stairs evacuation equipment for wheelchair employees (completed)	◎
	・ Thailand flood countermeasure (waterproof wall installation, relocation of power supply equipment to a high location, factory relocation etc. completed)	◎
4. Strengthen preparation for effective response and reconstruction	・ Training of management council members, group disaster prevention drills, disaster prevention drills at each base	◎
	・ Tsunami target area bases implement tsunami countermeasures each year	◎
	・ Reconstruction of group companies afflicted by the Kumamoto earthquake (May 2016)	◎

*◎:Done, Continuation
○:Expanding

[Cooperation with society]

Collaborate with Koto Ward (Tokyo) to release our multi-story parking lot in the event of a disaster (security agreement)
Stockpiling emergency supplies to be offered to local communities in the event of a disaster
Maintain, and share disaster prevention network with regional administration, etc.

Promotion of CSR activities

Dialogue with CSR experts and CSR committee members

In November 2015, 30 members of the Fujikura Group CSR Committee participated in a dialogue on CSR Medium-term Issues with President Hiro Motoki of E-Square, a specialized CSR consultancy company. Currently, CSR is internationalizing and globalizing rapidly, and it is extremely difficult to judge how companies should proceed with CSR in the future. Future activities will be determined by how accurately the medium-term CSR issues and social trends are grasped . President Motoki gave a clear, easy-to-understand speech on these complicated social issues, from his position as an expert, and conducted a discussion afterwards.

Based on this dialogue, the CSR Committee is promoting efforts towards 2020.

CSR website

We dispatch information to employees twice a week and more than 110 times a year via the CSR website on the intranet. This site provides information on the range of CSR campaigns, biodiversity conservation initiatives and local community activities conducted by the Fujikura Group, and has already attracted more than 60,000 hits per year.

CSR newsletter "CSR World"

Since July 2011, this monthly newsletter has been sent to employees working at all business sites and manufacturing facilities of Fujikura Ltd. and to about 70 Group companies in Japan and abroad for the promotion of CSR activities across the Group. The newsletter is issued in Japanese and English and is also translated into Thai, Spanish, Chinese and other languages used at overseas Group companies.