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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: April 2013

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

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.

Fujikura Group Long-term Vision 2050

four challenges

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)

roadmap

Use of Renewable Energy

The Fujikura head office and R&D Center began using ‘aqua premium electricity’ supplied by Tokyo Electric Power Company on September 1, 2018. In addition, the Fukui Plant of Fujikura Dia Cable Ltd. began using renewable electricity supplied by Hokuriku Electric Power Company on April 1, 2018. As a result, the business sites noted above are now powered 100% by renewable energy.

Furthermore, photovoltaic panels have been installed on the rooftop of buildings near the Fujikura-Kiba Millennium Woods, which was created as a biotope garden for local communities adjacent to the head office. All of the electricity used inside the biotope garden is supplied from these panels.

fujikura ltd

fukui

Thailand Factory

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 floating solar panels installed in a pond inside the plant.

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 FY2018, we registered 61 green products that accounted for 37% of sales.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 FY2018, we registered 61 green products that accounted for 37% 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 Climate Change Questionnaire, which we are using to reinforce our response inside the company. In FY2018, we held dialogue between members of the Global Environment Committee and the President of Conservation International Japan, an international environmental NGO.

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.

*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

FY2018 Activity Targets and Results as well as FY2019 Targets

The Fujikura Group formulated the 2020 Mid-term Business Plan that starts in FY2016 and ends in FY2020. Based on this plan, we drew up the Fujikura Group Environmental Management Activity Guidelines, under which we are working to implement environmental management activities.

In FY2017, we formally established targets for CO2 reduction at overseas business sites, which were under consideration in FY2016.

2020 Mid-term Targets

Subjects Target for the Period from Fiscal 2016 to 2020
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
Improvements in energy consumption associated with logistics
Domestic product logistics energy consumption rate: at least 1.0% average improvement annually
Promote introduction of renewable energy
Water Risks Reduction of volume of water used
Domestic consolidated target companies consumption rate: at least 1% improvement annually
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
Zero waste emission*
Domestic consolidated target companies: continuance of zero waste emission
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
Reduction of volatile organic compounds (VOC) emissions
Reduce atmospheric emissions of primary VOCs by at least 1% annually compared to 2015
Products, Green Procurement Expansion of environmentally-friendly products
At least 60 environmentally-friendly products to be registered annually
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.

FY2018 Targets and Results

[Values] ○…Achieved / △…Unachieved items present / ×…Unachieved
Subjects FY2018 Goals FY2018 Results Values
CO2 Emissions Reduction
Reduction of Total CO2 Emissions:
(Japan consolidated) At least 1.8% compared to FY 2013

(Domestic Consolidated) Total CO2 emissions: 0.1% reduction compared to FY2013
The domestic group has steadily achieved results in energy saving activities. In addition, the number of domestic bases decreased due to business restructuring

(Overseas consolidated) Improve intensity of CO2 emissions at least 2.6% compared to FY 2014 (Overseas consolidated) Intensity of CO2 emissions: 7.2% improvement compared to fiscal 2014
Improve intensity of energy used for production (versus net sales):
(Japan consolidated) At least 1.3% compared to FY 2017
(Japan consolidated) 2.0% improvement compared to fiscal 2017
(Overseas consolidated) Same as above (Overseas consolidated) 0.3% improvement compared to fiscal 2017
Improve intensity of energy for product distribution:
(Japan consolidated) At least 1% compared to FY 2017
(Japan consolidated) 0.9% improvement compared to fiscal 2017
Introduction of renewable energy Fujikura Dia Cable(group campany of Fujikura)'s Fukui Plant introduced Hokuriku Electric Power's renewable electricity, achieving zero CO2 emissions from electricity
Water Risks Improve waster usage intensity:
(Japan consolidated) At lease 1% compared to FY 2017
(Japan consolidated)
Intensity of water usage (versus net sales):
13.7% improvement compared to fiscal 2017
Biodiversity Conservation
Effective use of nature at business sites Promotion of Sakura Millennium Forest PJ activities
-Review pond installation (postponement of installation this year) and formulate overall forest concept
-Promote maintenance in the park (spray wood chips on the promenade, update stairs and earth retaining materials, etc.)
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: 13,100 tons (deemed amount)
Improve intensity of waste emissions associated with production:
(Japan consolidated) At least 1% compared to FY 2017
Intensity of waste emissions (versus net sales):
8.6% increasing compared to fiscal 2017
Net-zero waste emissions (*):
(Japan consolidated) Net-zero waste emissions
Landfill rate 0.37%
Landfill waste generated, zero emissions not achieved
Direct landfill treatment increased due to lack of domestic recycling capacity due to suspension of waste plastics acceptance in China
Chemical Substances Reduce emissions and transfer of main environmental pollutants:
(Japan consolidated) Intensity: at least 3% compared to FY 2015
Intensity (compared to sales): 39.5% improvement from FY2015
Due to cancellation of orders for products that use the target substance
Reduce airborne emissions of main VOCs:
(Japan consolidated) Intensity: at least 3% compared to FY 2015
Intensity (compared to sales): 3.2% worse than FY2015
In recent years, both unit consumption and emissions have been declining.
×
Products, Green Procurement Registration of environmentally-friendly products: at least 60 for the year Green Mind Product registration: 61
Green Product registration: 1 (included above)
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 substances

*Definition of Zero Waste Emission: No direct placement in landfills or simple burning of waste.

FY2019 Targets

Subjects FY2019 Targets
CO2Emissions Reduction
-Reduction of total CO2 emissions:
(Japan consolidated) At least 2.4% compared to FY2013
(Overseas consolidated) Improve intensity of CO2 emissions at least 3.9% compared to FY2014
-Improve intensity of energy used for production (versus net sales):
(Japan consolidated) At least 1.3% compared to FY2017
(Overseas consolidated) Same as above
-Improve intensity of energy for product distribution:
(Japan consolidated) At least 1% compared to FY2017
-Consider installation of PV system
Water Risks -Improve waster usage intensity:
(Japan consolidated) At lease 1% compared to FY2017
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 FY2017
Net-zero waste emissions (*):
(Japan consolidated) Net-zero waste emissions
Chemical Substances Reduce emissions and transfer of main environmental pollutants:
(Japan consolidated) Intensity: at least 4% compared to FY2015
Reduce airborne emissions of main VOCs:
(Japan consolidated) Intensity: at least 4% compared to FY2015
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 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 FY2018, 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 FY2018

  • Boundary: Fujikura and 20 consolidated production sites in Japan
  • Period of data: April 1, 2018 to March 31, 2019
  • 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.


Summary of Third-Party Inspection to FY2017 Image1

Summary of Third-Party Inspection to FY2017 Image2

Summary of Third-Party Inspection to FY2017 Image3

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, maintenance costs of around 200 million yen are expected 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)

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