Four Focus Areas (Materiality)

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 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

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: 1.3% improvement compared to fiscal 2014)
	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	FY2019 Goals	Activity Results	Evaluation
Environmental Themes (E)	1. CO₂ Emissions Reduction	1. CO₂ Emissions Reduction (1) Fujikura and affiliated domestic companies: Reduction of 3% or more (compared to FY2013) (FY2030 Long-term goal: Reduction of 6.5% or more) (2) Overseas affiliated companies: Improvement of 1.3% or more per year in CO2 emissions intensity per base unit (compared to FY2014)	Reduction of Total CO₂ Emissions: (Domestic) 2.4% or more compared to FY2013 (Overseas) Improvement of 3.9% or more per year in CO2 emissions intensity per base unit (compared to FY2014)	(Domestic) Fujikura: 18.9% reduction (emissions volume, 80,900 tons of CO2) Domestic Group: 5.9% reduction (emissions volume, 63,400 tons of CO2) (Overseas group) Intensity per base unit: 9.2% improvement (emissions volume, 257,000 tons of CO2)	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 in water usage per base unit: (Domestic Group) 1% or more compared to FY2018:	(Domestic) 20.1% improvement in water usage per base unit (net sales) compared to previous fiscal year Confirmed risks by checking government hazard maps, and produced a flooding/high tide risk list for domestic locations CDP water score: B	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.	1.Effective use of nature in the business premises 2.Pursuit of initiatives in biodiversity 3.Pursue the concept of a satoyama natural area on business premises	1.Began Kiba Millennium Woods “Create a 1,000-year forest” campaign, raised awareness among employees, and posted the activities in a series of workplaces each month on the company intranet (12 times) 2.Completed the Sakura Millennium Woods Project, continued maintenance activities, and continued to provide recreation activities with employees	○
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. Enhancement of harassment education 2．Enhance management of working hours	1．Made sure that everyone understands the laws on harassment and revised e-learning content 2．Introduced a variable working hours system and worked to respond to laws related to workstyle reform	○
	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. Environmental maintenance, etc. 2. Hiring diverse human resources 3. Promote employment of people with disabilities	1．Multilingualization of rules 2．Hiring diverse human resources (international students, foreigners, women) 3．Achieved legal employment rate	○
	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. Overseas language training program 2. Build a Group human resource platform	1．None in this fiscal year 2．Introduction of the system to overseas Group companies continues	○
	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．Telecommuting system 2．Review of work systems 3．Support measures for balancing work and nursing care 4. Employee survey	1．Consideration for increasing users 2．Consultation with labor and management for review 3．Review of nursing work system 4. Introduction of a nursing care concierge service based on the survey results	○
	8. CSR Supply Chain Management	1. The Partners Meetings in in-house companies and main Group companies are held and managed appropriately 2. A partner survey is conducted and appropriately evaluated 3. Fujikura group CSR procurement guidelines are being complied with 4. Risks are recognized and successfully managed in in-house companies and Group companies	1. Hold Group Partners Meetings 2. Promote partner CSR 3. Promote ensuring human rights in the global supply chain 4. Consider CSR/SCM audits 5. Consider introducing a supplier portal	1. Ongoing in Japan, China, and Thailand 2. Ongoing surveys in Japan and China 3. CSR Procurement Guidelines revised and continue to request compliance with human rights policy at Partners Meetings 4. A survey of Group companies in Japan was conducted but the SCM audit has not been completed 5. Introduced according to plan	○
	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．Building relationships with government, regional organizations, and 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．Training for the trainers 2．MVCV training by grade level 3．MVCV enlightenment with all participants 4. Expansion to overseas group companies 5. Dissemination and sharing of information	1．Continue philosophy training and information exchange meetings 2．Implement new program 3．MVCV Award for Excellence 4. Continue philosophy training for overseas group companies 5. Continue to introduce penetration activities at each workplace	○
	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．Obtain domestic and overseas CSR information 2．Promotion of SDGs and CSV Dialogue with experts (Professor Nawa)	1．Continued participation in UN Global Compact Subcommittee Invite an international environmental NGO to collect the latest environmental information 2．Dialogue on SDGs held at new employee training and CSR Working Committee	○
	12. Disclosure and Communication	1.Be able to provide information disclosure that is highly rated by the international community 2.Be consistently selected as a stock component of global indexes 3.Provide information disclosure that meets the expectations of stakeholders 4.Regularly engage in communication with stakeholders	1.Survey & analyze ESG information content 2.Provide information to shareholders and investors 3.Enhance Integrated Report contents 4.Devise ways to communicate information internally and externally	1.Continue to be included in the FTSE4Good and Blossom Japan Indexes 2.Continue to hold ESG meetings with institutional investors 3.Continue to submit an Integrated Report showing a high degree of improvement, to be selected for this by GPIF (Government Pension Investment Fund) asset management institutions 4.Hold CSR briefings for Group companies	○

Self-Evaluation of the Activities Conducted in line with the Priority CSR Measures in FY2019

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

(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 members of the Sustainability Strategy Committee; and
(3) the final evaluation of the analysis results by the director in charge.

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
	CO₂ Emissions Reduction	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
	Global Personnel Growth	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