Fujikura Ltd.

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ESG

Fujikura Group CSR

Four Focus Areas (Materiality)

Four Focus Areas

Process Leading to the Selection of Four Focus Areas

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.

Setting CSR Priority Measureas

Based on the Fujikura Group CSR Basic Policy and the Four Priority Issues, the Fujikura Group has established a CSR priority messure with the fiscal year 2020 as the final year as well as the medium-term management plan in order to link with the management strategy I will. We conducted "materiality matrix analysis" with stakeholders inclusive in mind, and evaluated and verified it from two perspectives, "interests of stakeholders" and "degree of influence on our business".

As a result, we set 12 CSR priority mesuares and 11 follow-up items, and evaluate targets and results each year to achieve the target of FY 2020. Progress to the target is published annually on the CSR website.

Materiality Matrix Analysis

Materiality Matrix Analysis

Relationship Between CSR Priority Measures and Focused SDGs

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

Relation with focused SDGs

Targets and Plans for CSR Priority Measures

ESG Themes CSR Priority Measures FY2020 Goal
Environmental Themes
(E)
1. CO2 Emissions Reduction
1. CO2 Emissions Reduction
(1) Fujikura and affiliated domestic companies:
More than 3% reduction (compared to 2013)
(Long-term goals for FY2030: more than ▲6.5% reduction compared to 2013)
(2) Overseas affiliated companies (Mid-term goals: under consideration)
2. Water Risks 1. Setting goals and implementing improvements for the amount of water used.
2. Implementing water risk valuation and risk minimization.
3. Reply to "CDP Water," received evaluation.
3. Biodiversity Conservation
1. The on-premises green activities of the Kiba Millennium Woods, Sakura Millennium Woods, and Suzuka Millennium Woods are popular among employees.
2. The preparations to open to neighboring citizens finished at Sakura and Suzuka, and the plan for communicating with those citizens was completed.
Social Themes
(S)
4. Respecting Human Rights 1. Becoming a company where personnel from varied nationalities, races, genders, religions, ages, and origins can work and excel.
2. Entire Fujikura group holds proper understanding of harassment, fostering non-permissive/non-harassment culture.
5. Diversity 1. Create human rights guidelines and distribute in English as well.
2. Implement new general training and e-learning, distribute harassment articles through company newsletter.
6. Global Personnel Growth 1. The "Fujikura Group HRM Vision" is jointly created and shared by the group to work toward common goals.
2. We are becoming a "company with a dream" as we respect employees and develop appealing personnel globally.
7. Work-Life Balance 1. Various personnel contribute to the company in many ways and accomplish their roles through various work styles.
2. Development of an air of contributing to the company by working efficiently in a limited amount of time.
8. CSR Supply Chain Management 1. Partners' meetings are underway between Fujikura and key group companies to ensure appropriate administration.
2. Surveys to partners are being implemented and reviewed appropriately.
3. Fujikura group CSR procurement guidelines respected.
4. Risks ascertained and managed at Fujikura and group companies.
9. Local Community Coordination and Contribution 1. Become the pride of the local area with people thinking, "I'm glad it's Fujikura."
2. Become the business that represents the community and receive high regard.
3. Employees to be proud members of the Fujikura group.
Management (Governance) Themes
(G)
10. Group Management Philosophy MVCV 1. Sharing of information with the entire group (Japanese and English).
(1) MVCV textbook + overseas access on the intranet.
(2) Introduce the Fujikura Odyssey to group companies.
2. Fulfillment of MVCV training: Vitalization of permeation investigation and actions.
3. Link to the Fujikura brand.
11. Collaboration with Society 1. Quick CSR response to initiative information, etc.
2. Respond speedily to regulations and principles of governments and ministries, etc.
3. Respond speedily to information from affiliates or customers, etc.
4. Quickly display information on efforts requests from SDGs, etc.
12. Disclosure and Communication 1. Able to post information highly valued by international society.
2. Stable selection as a global index brand.
3. Disclosure of information in response to stake holders' expectations.
4. Able to regularly communicate with stake holders.

Target, Result and Evaluation of CSR Priority Measures

[Standard]◎: Progressed further than goals / ○: Progressed in line with goals / △: Some goals not met / X: Goals not met

ESG Themes CSR Priority Measures FY2020 Goal FY2017 Goals Activity Results Evaluation
Environmental Themes
(E)
1. CO2 Emissions Reduction
1. CO2 Emissions Reduction
(1) Fujikura and affiliated domestic companies:
More than 3% reduction (compared to 2013)
(Long-term goals for FY2030: more than ▲6.5% reduction compared to 2013)
(2) Overseas affiliated companies (Mid-term goals: under consideration)
Reduction of Total CO2 Emissions:
(Domestic) 1.2% reduct compared to fiscal 2013
(Overseas) 1.3% improvement compared to fiscal 2014

(Domestic) In comparison with fiscal year 2013 (base year), increase by 1.0% on a non-consolidated basis, 6.5% increase at domestic group companies.

(Overseas group) Improved 12.9% per unit consumption compared to 2014.

X
2. Water Risks 1. Setting goals and implementing improvements for the amount of water used.
2. Implementing water risk valuation and risk minimization.
3. Reply to "CDP Water," received evaluation.
Improvement intensity of water usage (versus net sales):
(Domestic) 1% or more improvement compared to fiscal 2016
(Domestic) Unit of water consumption (Contrast with sales)
1.6% increase over the previous year.
X
3. Biodiversity Conservation
1. The on-premises green activities of the Kiba Millennium Woods, Sakura Millennium Woods, and Suzuka Millennium Woods are popular among employees.
2. The preparations to open to neighboring citizens finished at Sakura and Suzuka, and the plan for communicating with those citizens was completed.
Effective Use of Nature in the Workplace. 1. Drawn up a maintenance plan that emphasizes rare species protection etc. at the Sakura Millennium Forest Project.
2. Kiba Millennium Forest is the first registered in Tokyo in the Tokyo Metropolitan Register Green Region.
Social Themes
(S)
4. Respecting Human Rights 1. Becoming a company where personnel from varied nationalities, races, genders, religions, ages, and origins can work and excel.
2. Entire Fujikura group holds proper understanding of harassment, fostering non-permissive/non-harassment culture.
1. Establish HRM and promote diversified human resource utilization
2. Strengthen development for harassment compliant group companies
1. Establish HRM and promote diversified human resource utilization
2. Strengthen development for harassment compliant group companies
5. Diversity 1. Create human rights guidelines and distribute in English as well.
2. Implement new general training and e-learning, distribute harassment articles through company newsletter.
1. Established HRM vision
2. Hiring diverse human resources
3. Promote employment of people with disabilities
1. Established HRM, declared both inside and outside the company
2. Hiring diverse human resources (international students, foreigners, women)
3. Promote employment of people with disabilities as a group
6. Global Personnel Growth 1. The "Fujikura Group HRM Vision" is jointly created and shared by the group to work toward common goals.
2. We are becoming a "company with a dream" as we respect employees and develop appealing personnel globally.
1. Introduction of overseas language training system
2. Introduction of common personnel system to group
3. ASEAN district human resources strategy meeting held
1. Introduction of overseas language training system
2. Introduction of common personnel system to group
3. ASEAN district human resources strategy meeting held
7. Work-Life Balance 1. Various personnel contribute to the company in many ways and accomplish their roles through various work styles.
2. Development of an air of contributing to the company by working efficiently in a limited amount of time.
1. Full-scale operation of teleworking system
2. Started a review committee for labor-management WLB promotion
3. Employee survey
1. Full-scale operation of teleworking system started
2. Started a review committee for labor-management WLB promotion
3. Implementation of actual situation survey for compatibility between life event and career
8. CSR Supply Chain Management 1. Partners' meetings are underway between Fujikura and key group companies to ensure appropriate administration.
2. Surveys to partners are being implemented and reviewed appropriately.
3. Fujikura group CSR procurement guidelines respected.
4. Risks ascertained and managed at Fujikura and group companies.
1. Implemented in Japan and China
2. Questionnaire conducted in Japan and China
3. CSR procurement guidelines between Japan and Thailand
Request compliance at Partners' meeting (continued)
4. Audit trial conducted at overseas group companies and others
Questionnaire for group companies in Japan and overseas
1. Implemented in Japan and China
2. Questionnaire conducted in Japan and China
3. CSR procurement guidelines between Japan and Thailand
Request compliance at Partners' meeting (continued)
4. Audit trial conducted at overseas group companies and others
Questionnaire for group companies in Japan and overseas
9. Local Community Coordination and Contribution 1. Become the pride of the local area with people thinking, "I'm glad it's Fujikura."
2. Become the business that represents the community and receive high regard.
3. Employees to be proud members of the Fujikura group.
1. Participate in administrative sponsored events
2. Joint event with regional organization (environmental NPO)
3. Promote collaboration with other companies
1. Participate in administrative sponsored events
2. Joint event with regional organization (environmental NPO)
3. Promote collaboration with other companies
Governance Themes
(G)
10. Group Management Philosophy MVCV 1. Sharing of information with the entire group (Japanese and English).
(1) MVCV textbook + overseas access on the intranet.
(2) Introduce the Fujikura Odyssey to group companies.
2. Fulfillment of MVCV training: Vitalization of permeation investigation and actions.
3. Link to the Fujikura brand.
1. Conduct Philosophy Training and Information Exchange Meeting
2. Training by level
3. Enlightenment strengthening month implemented
4. Actual training of ideals for overseas group companies began
5. Management philosophy HP renewal and multilingualization
1. Conduct Philosophy Training and Information Exchange Meeting
2. Training by level
3. Enlightenment strengthening month implemented
4. Actual training of ideals for overseas group companies began
5. Management philosophy HP renewal and multilingualization
11. Collaboration with Society 1. Quick CSR response to initiative information, etc.
2. Respond speedily to regulations and principles of governments and ministries, etc.
3. Respond speedily to information from affiliates or customers, etc.
4. Quickly display information on efforts requests from SDGs, etc.
1. Participated in the United Nations Global Compact Subcommittee
2. Promote SDGs and CSV
Dialogue with experts (Professor Nawa)
1. Participated in the United Nations Global Compact Subcommittee
2. Promote SDGs and CSV
Dialogue with experts (Professor Nawa)
12. Disclosure and Communication 1. Able to post information highly valued by international society.
2. Stable selection as a global index brand.
3. Disclosure of information in response to stake holders' expectations.
4. Able to regularly communicate with stake holders.
1. Continued incorporation of FTSE 4 GOOD and Blossom Japan Index
2. Explain to ESG institutional investors
3. At the seminar organized by the municipality
1. Continued incorporation of FTSE 4 GOOD and Blossom Japan Index
2. Explain to ESG institutional investors
3. At the seminar organized by the municipality

Self-Evaluation of the Activities Conducted in line with the Priority CSR Measures in FY2017

The results of self-evaluation of activities of FY2017 are as indicated in the above table. "Self-evaluation" as a whole CSR activity in FY2017 evaluated that "we achieved the target in general."

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:

Organization of GRI standard aspects

Based on the CSR priority measures, we are organizing the GRI standards aspect with strong relevance. In the "Sustainability Reporting Guidelines GRI Standard Comparison Table", it is limited to items related to the strong GRI Standard aspect.

Category CSR Prioritiy Measures GRI Standard Aspects
Environment (E) CO2 Emissions Reduction 302 Energy
305 Emissions
Water Risks 303 Water
Biodiversity Conservation 304 Biodiversity
Social
(S)
Respecting Human Rights 406 Non-discrimination
407 Freedom of Association and Collective Bargaining
408 Child Labor
409 Forced or Compulsory Labor
412 Human Rights Assessment
Diversity 405 Diversity and Equal Opportunity
Global Personnel Growth 404 Training and Education
202 Market Presence
Work-Life Balance 401 Employment
402 Labor Management Relations
403 Occupational Health and Safety
CSR Supply Chain Management 204 Procurement Practices
308 Supplier Environmental Assessment
414 Supplier Social Assessment
Local Community Coordination and Contribution 413 Local Communities
Governance (G) Group Management Philosophy MVCV 205 Anti-corruption
206 Anti-competitive Behavior
419 Socioeconomic Compliance
Collaboration with Society None
Disclosure and Communication 201 Economic Performance
203 Indirect Economic Impacts
307 Environmental Compliance
416 Customer Health and Safety
417 Marketing and Labeling

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