Environmental Policy and Targets
Global Environmental Charter
We established the Fujikura Global Environment Charter in 1992 and revised it in April 2013, adding the conservation of biodiversity as an important environmental issue to address.
Fujikura Group Global Environmental Charter
Established: April 1992 / Revised: November 2020
- Foreword
- With the rapid developments in science and technology, human civilization is making dramatic leaps forward, and we have become able to enjoy affluent lives. On the other hand, however, we have seen progress in environmental destruction on a global scale, such as global warming, destruction of the ozone layer, acid rain, depletion of rainforests, desertification and marine pollution, and we have reached the stage where the existence on the earth not only of mankind but of life itself is in serious peril. Increasingly complex and diversified social systems are deeply involved with these global environmental problems, and corporate activities are undeniably one of the major factors behind these problems. At Fujikura Group we are strongly aware that our operations are closely related to the global environment, and are making the utmost effort to protect the global environment.
- Basic Philosophy
- Fujikura is expanding its basic policy of "establishing affluent and cheerful lifestyles through the efforts of all employees of the Fujikura Group"
on a global scale, and is committed to company-wide activities to protect the earth as one of management's top priorities.
- Action Guidelines
- In all areas of corporate activities, each individual must act giving priority to conserving the global environment.
- 1. Organization and Administration
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Put in place internal organizations and administrative systems for environmental conservation which relevant directors will be responsible for.
Each organization must clarify its environmental goals and promote planned and sustained improvements. - 2. Improve Environmental Management Standards and the Level of Environmental Management
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In addition to observing the environmental regulations of the government and local governments, establish voluntary management standards
in an effort to further improve the level of environmental management. Carry out environmental audits regularly and attempt to maintain
and improve self-management. - 3. In Operations
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Endeavor to conserve the environment in all stages of operations, to encompass development, design, purchasing, production, execution, sales, distribution and disposal. Furthermore, tackle energy saving, conservation of resources, promotion of recycling, and reductions in waste and substances that place a load on the environment, and work to prevent environmental pollution.
- 4. Appropriate Provision of Information to Customers
- Provide users of products with information, such as instructions for appropriate use, recycling and disposal.
- 5. Contribution to the Local Community
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By actively participating in conservation activities for the local environment, work to bolster mutual understanding and relationships of cooperation,
and make a contribution as a member of the local community. - 6. Overseas Operations
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While observing environmental standards in the countries we operate in goes without saying, also set our own voluntary management standards
in a bid to conserve the environment. In addition to actively utilizing the technology and know-how for environmental conservation, work to develop personnel involved in environmental management. - 7. Public Relations and Educational Activities
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Carry out educational and PR activities for all employees in a bid to promote understanding of conservation of the global environment,
and to improve environmental awareness. - 8. Preservation of Biodiversity
- Recognize the importance of biodiversity in the global environment and work to preserve the world’s ecosystems.
Fujikura Group Environment Long-term Vision 2050
We established the Fujikura Group Environment Long-term Vision 2050 in 2016, taking into account the adoption of the Paris Agreement at the 2015 United Nations Climate Change Conference (COP 21) and the goal to reduce CO2 emissions 80% by 2050 (compared to 2015) in Japan’s Plan for Global Warming Countermeasures released in March 2016.
Fujikura Group Environmental Challenge 2050
Enacted: July 19, 2016
- [Preface] Four Challenges for 2050
Since its founding in 1885, the Fujikura Group has created value for customers and contributed to society through its "Tsunagu" technologies, including power cables, electric wiring parts, and automotive parts. In addition, as a corporate group that is friendly to people as well as the global environment, we began rolling out CSR initiatives in 2009 to achieve a sustainable society.
According to forecasts by international institutions, including the OECD, the Earth is currently heading in a dangerous direction. Weather anomalies, due to climate changes triggered by greenhouse gases, are threatening our everyday lives. In addition, environmental issues, including a shortage of useable water, depletion of resources, serious air pollution, and destruction of biodiversity in tandem with an increase in population and economic activities, are becoming widespread and severe on a global scale.
The Fujikura Group is a global citizen that conducts operations globally. In light of the aforementioned trends, looking toward the future in 2050, the Fujikura Group plans to undertake four challenges to minimize its impact on the environment.
Furthermore, once the Group reduces its environmental burden to zero, in 2065, the year in which Fujikura will mark the company's Fourth Founding, the Group will embark on measures to bring about positive benefit to the global environment.
- Goals & Main Activities of the Four Challenges
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[Challenge 1] Zero CO2 emissions at plant by 2050 ⇔ Climate change
We aim to reduce our CO2 emissions by 2030 by an amount that surpasses the level required of the industry by the government (versus FY2013).- [Main activities]
(1) Improve environmental performance of products
(2) Use renewable energies
(3) Employ hydrogen energy
These are Fujikura’s three pillars for reducing CO2 emissions
-Do not use, reuse, and return to nature clean-- [Main activities]
(1) Minimize water use during the production process and reuse water
(2) Recycle plant wastewater, including the use of rainwater
(3) Treat wastewater to a level of quality that is safe and sufficient for its return to nature, etc.
- [Main activities]
(1) Enrich and use the Millennium Woods biotope garden at Fujikura sites around the world
(2) Promote regional activities to preserve the natural environment
(3) Promote natural environment education for future generations, etc.
- [Main activities]
(1) Use eco-materials
(2) Environmentally-friendly and long-life product manufacturing
(3) Develop recycling technologies, etc.
- [Main activities]
- Challenge for the 4th 60 Years of Leadership
- Furthermore, once the Group reduces its environmental burden to zero, in 2065, the year in which Fujikura will mark the company’s Fourth Founding, the Group will embark on measures to bring about positive benefit to the global environment.
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Roadmap for Zero CO2 Emissions
The first challenge found in the Fujikura Group Environment Long-term Vision 2050 is to achieve carbon neutral plants by 2050. We have established the following roadmap to reduce our carbon footprint aimed at meeting this challenge. Toward this end, we will implement specific measures that include promoting energy conservation, using non-fossil fuels, certifying carbon neutral plants, and establishing an energy conservation fund in-house, among others.
CO2 targets established for each fiscal year
- FY2020: Reduce emissions at least 3% compared to FY2013
- FY2030: Reduce emissions at least 6.5% compared to FY2013
- FY2050: Eliminate emissions from plants
Roadmap for Reducing Total CO2 Emissions (Japan)
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Initiatives to achieve the roadmap
The Fujikura Head Office Building and R & D Center started using Aqua Premium Power in September 2017, and the Fujikura Diamond Cable Fukui Plant began using renewable power in April 2018. Overseas, FETL's Kabin Buri plant in the Kingdom of Thailand installed a floating solar panel in the pond of the factory and started supplying electricity in 2019.
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Identification of Climate Change Related Risk
We analyzed the impacts that climate change will have on the Fujikura Group’s business growth based on the long-term forecasts of the OECD and IPCC, along with the interests of society, resulting in the identification of transition risks and physical risks. In recent years, there are growing requests from customers for our response to climate change, and we are working on analyzing climate change related risks together with suppliers.
Main Risks and Responses Identified
Type | Main Risks | Main Response |
Transition Risks | ・Increase in capital investment, depreciation,and operating costs from stricter regulations on reducing emissions, ・Increased payment of taxes from the introduction of a carbon tax and other measures ・Deterioration in competitiveness in the event that the Fujikura Group cannot meet customer demands on climate change ・Reputational risk in the event we cannot meet the disclosure demands of investors and rating institutions |
・Promote use of renewable energy in business activities (at headquarters, plants, and elsewhere). ・Collect information and strengthen initiatives by joining external initiatives. ・Regularly monitor and respond to ESG rating indicators. |
Physical Risks | ・Risk of impacts on the Fujikura Group’s production system, financial standing, and performance, such as decreased production capacity from operational shutdowns and added costs for restoration of facilities, in case of damages to production facilities arising from natural disasters caused by climate change ・Risk to employee health due to rising temperatures, etc. in regions where the company has operations ・Impact on production plans from interruptions in the supply chain caused by natural disasters resulting from climate change |
・Maintain slopes near offices and prepare response to high tide and tsunami at plants that are near the ocean shore. ・FETL in Thailand used the lessons learned from the 2011 floods and diversified locations, built water retaining walls near offices, and took other steps from the perspective of BCP. |
Strategy
The Fujikura Group targets increasing corporate value from a perspective of enhancing our reputation in environmental and social aspects as one of its basic policies in the 2020 Mid-term Business Plan. As a result, we are expanding our ESG initiatives including response to climate change.
We are developing environmentally friendly products (green products) in order to contribute to lessening carbon in society through resource and energy conservation that contributes to profitability. We have established a target to registered more than 60 green products per year, and in FY2019, we registered 60 green products that accounted for 40% of sales.
External Collaboration
The Fujikura Group engages in various kinds of communications about response to climate change with outside experts and is using this information in future initiatives. We continue to respond to the CDP (Carbon Disclosure Project) climate change Program, and in fiscal 2019 we received an A- evaluation and are using it to strengthen our internal response. |
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Statement of Support for TCFD*1 Recommendations and Participation in RE100*2
The Fujikura Group signed the statement of support for the recommendations published by the Task Force on Climate-related Financial Disclosures (TFCD) in 2017. We will contribute to the realization of a sustainable society by analyzing the risks and opportunities posed by climate change and disclosing relevant information to stakeholders.
In addition, we are a member to RE100, an initiative of companies with the goal of procuring 100% of electricity for business activities from renewable energy. We have created and are implementing a roadmap for achieving the goal of zero total CO2 emissions from our plants by 2050.As part of this, we are aiming for 100% renewable energy by 2050, and have set an intermediate target of 45% in 2030 and 90% in 2040.
*1 TFCD: An acronym for Task Force on Climate-related Financial Disclosures, an organization established by the Financial Services Board with the participation of the central banks and financial regulators of major countries. TFCD has announced guidelines on disclosures based on predictions of how climate change will affect corporate finance.
*2 RE100: An initiative launched in 2014 by The Climate Group (TCG), an international environmental NGO. The name RE100 stands for Renewable Energy 100%.
Fujikura Group Environmental Management Activity Guidelines
FY2019 Activity Targets and Results as well as FY2020 Targets
The Fujikura Group formulated the Fujikura Group Environmental Management Activity Guidelines, under which we are working to implement environmental management activities.
Fujikura Group Environmental Management Activity Guidelines
Subjects | Fujikura Group Environmental Management Activity Guidelines | |
CSR Priority Measures | CO2 Emissions Reduction | Reduction of total CO2 emissions Domestic consolidated target companies: reduce emissions by at least 3% by 2020 compared to 2013 (Long-term target by 2030: 6.5% or more compared with 2013) Overseas consolidated subsidiary: Target value: under consideration |
Energy conservation: improvements in energy consumption rate Domestic/overseas consolidated target companies: at least 1.3% improvement annually |
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Improvements in energy consumption associated with logistics Domestic product logistics energy consumption rate: at least 1.0% average improvement annually |
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Promote introduction of renewable energy | ||
Water Risks | Reduction of volume of water used Domestic consolidated target companies consumption rate: at least 1% improvement annually |
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Biodiversity Conservation |
Contribute to biodiversity through effective utilization of nature on business premises | |
Management Items | Resources | Reduce input resources and promote efficient use of resources |
Reduction of waste emissions associated with production Domestic consolidated target companies consumption rate: at least 1% improvement annually |
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Zero waste emission* Domestic consolidated target companies: continuance of zero waste emission |
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Chemical Substances | Reduction of substances of environmental concern Domestic consolidated target companies: reduce emissions/transfersfor primary substances of environmental concern by at least 1% annually compared to 2015 |
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Reduction of volatile organic compounds (VOC) emissions Reduce atmospheric emissions of primary VOCs by at least 1% annually compared to 2015 |
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Products, Green Procurement | Expansion of environmentally-friendly products At least 60 environmentally-friendly products to be registered annually |
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Promote management of chemical substances contained in products within the supply chain (Thoroughness in green procurement and management of prohibited substances) |
*Definition of Zero Waste Emissions: The complete elimination of waste sent to landfills or waste processed using simple incineration.
FY2019 Targets and Results
Subjects | FY2019 Goals | FY2019 Results | Values |
CO2 Emissions Reduction |
Reduction of Total CO2 Emissions: (Japan consolidated) At least 2.4% compared to FY 2013 |
(Domestic Consolidated) Total CO2 emissions: 0.1% reduction compared to FY2013 |
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(Overseas consolidated) Improve intensity of CO2 emissions at least 3.9% compared to FY 2014 | (Overseas consolidated) Intensity of CO2 emissions: 9.2% improvement compared to fiscal 2014 | ○ | |
Improve intensity of energy used for production (versus net sales): (Japan consolidated) At least 1.3% compared to FY 2018 |
(Japan consolidated) 3.4% deterioration compared to fiscal 2018 | X | |
(Overseas consolidated) Same as above | (Overseas consolidated) 6.5% deterioration compared to fiscal 2018 | X | |
Improve intensity of energy for product distribution: (Japan consolidated) At least 1% compared to FY 2018 |
(Japan consolidated) 8.0% improvement compared to fiscal 2018 | ○ | |
Introduction of renewable energy | Introduced floating solar power at the FETL Kabinburi plant of Thai Gr company, and started power transmission in February 2020 | ○ | |
Water Risks | Improve waster usage intensity: (Japan consolidated) At lease 1% compared to FY 2018 |
(Japan consolidated) Intensity of water usage (versus net sales): 23.4% improvement compared to fiscal 2018 |
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Biodiversity Conservation |
Effective use of nature at business sites | Completed "Sakura Millennium Forest" project activity -Debranching of trees in the garden was carried out to protect rare plants -Actively carried out recovery from the large-scale disaster caused by Typhoon No. 15 |
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Resources | Reduce resource inputs and promote efficient use of resources Reduce weight of packaging material used (usage of recycled products): (Japan consolidated) Reduce at least 7,000 tons |
Reduction of resource inputs: 13,800 tons (deemed amount) | ○ |
Improve intensity of waste emissions associated with production: (Japan consolidated) At least 1% compared to FY 2018 |
Intensity of waste emissions (versus net sales): 3.0% improvement compared to fiscal 2018 |
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Net-zero waste emissions (*): (Japan consolidated) Net-zero waste emissions |
Non-recycling rate 0.67% Zero emissions not achieved Direct landfill treatment increased due to lack of domestic recycling capacity due to suspension of waste plastics acceptance in China |
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Chemical Substances | Reduce emissions and transfer of main environmental pollutants: (Japan consolidated) Intensity: at least 4% compared to FY 2015 |
Intensity (compared to sales): 40.5% improvement from FY2015 Due to cancellation of orders for products that use the target substance |
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Reduce airborne emissions of main VOCs: (Japan consolidated) Intensity: at least 4% compared to FY 2015 |
Intensity (compared to sales): 2.4% improvement from FY2015 In recent years, both unit consumption and emissions have been declining. |
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Products, Green Procurement | Registration of environmentally-friendly products: at least 60 for the year | Green Mind Product registration: 60 Green Product registration: 0 |
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Promote controls in the supply chain for chemical substances used in products | -Partners meeting held (Fukagawa, China) -Distributed CSR procurement guidelines and requested continued implementation of management of contained chemical, set consent form submission as an evaluation item |
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*Definition of Zero Waste Emission: Not direct final disposal and simple incineration of waste
FY2020 Targets
Subjects | FY2020 Targets |
CO2Emissions Reduction |
-Reduction of total CO2 emissions: (Japan consolidated) At least 3.0% compared to FY2014 (Overseas consolidated) Improve intensity of CO2 emissions at least 5.2% compared to FY2014 |
-Improve intensity of energy used for production (versus net sales): (Japan consolidated) At least 1.3% compared to FY2019 (Overseas consolidated) Same as above |
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-Improve intensity of energy for product distribution: (Japan consolidated) At least 1% compared to FY2019 |
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-Consider installation of PV system | |
Water Risks | -Improve waster usage intensity: (Japan consolidated) At lease 1% compared to FY2019 |
Biodiversity Conservation |
-Effective use of nature at business sites |
Resources | Reduce resource inputs and promote efficient use of resources Reduce weight of packaging material used (usage of recycled products): (Japan consolidated) Reduce at least 7,000 tons |
Improve intensity of waste emissions associated with production: (Japan consolidated) At least 1% compared to FY2019 |
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Net-zero waste emissions (*): (Japan consolidated) Net-zero waste emissions |
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Chemical Substances | Reduce emissions and transfer of main environmental pollutants: (Japan consolidated) Intensity: at least 5% compared to FY2015 |
Reduce airborne emissions of main VOCs: (Japan consolidated) Intensity: at least 5% compared to FY2015 |
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Products, Green Procurement | Registration of environmentally-friendly products: at least 60 for the year |
Promote controls in the supply chain for chemical substances used in products |
*Definition of zero waste emissions: The complete elimination of waste sent to landfills(direct final disposal) or waste processed using simple incineration.
Enhancing and Expanding Third-party Verification of Environmental Performance Data
The Fujikura Group requests an independent third-party to verify its environmental performance data every year in order to increase the reliability of its CSR integrated report. In FY2020, the boundary was expanded to 20 production sites in Japan, while detailed checks were also performed on our data management system and the status of its use. The results showed no outstanding issues. Furthermore, the boundary of the verification covers more than 95% of our CO2 emissions and water usage in Japan.
Summary of Third-Party Inspection to FY2020
- Boundary: Fujikura and 20 consolidated production sites in Japan
- Period of data: April 1, 2019 to March 31, 2020
- Scope: (1) Scope 1 & 2 energy-derived CO2 emissions, (2) Scope 3 and CAT 3 CO2 emissions, and (3) water usage, associated with business activities
- Verifying company: Bureau Veritas Japan Co., Ltd.
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Understanding the Impacts on Financial Standing Caused by Climate Change
In fiscal 2018, there was no direct impact on business due to phenomena that could be attributed to climate change. The following investments were made in preparation for future disaster risks.
Fujikura Sakura Works experienced a slope collapse accident due to heavy rain in the past. In preparation for heavy rains, which have been increasing due to climate change in recent years, we have been improving the slopes from FY2016 to FY2018 (cost: 380 million yen). In addition, implemented an additional maintenance costs of about 200 million yen are in FY2019.
NISHI NIPPON ELECTRIC WIRE & CABLE Oita Plant faces Oita Bay and is at risk of being damaged by storm surges and tsunamis during typhoons. In response, in fiscal 2017 we built a new office building where 500 employees can evacuate. (Cost: 460 million yen)