Effective Use of Materials and Reduction of Waste Materials Policy and Guidelines We promote the efficient use of resources and work to reduce waste emissions from production, based on the target of zero emissions set forth in the Fujikura Group Guidelines for Environmental Management Activity and the goal of effective utilization of resources and resource recycling in the Fujikura Group Long-term Environmental Vision 2050. The Fujikura Group defines zero waste emissions as the elimination of the final disposal amount of waste emitted from production activities. Target At our consolidated companies in Japan, we are working toward the two targets of (1) lower the basic unit of waste emissions by at least 1% per year compared to fiscal 2020 and (2) sustain zero waste emissions. Initiatives in FY 2021 Reduction of waste emissions Increase the yield (ratio of products to raw materials) in the production process to reduce the amount of waste generated (Reduce). Collect and reuse wooden drums and pallets used for transporting products (Reuse). Trying to reduce the amount of waste by selling (Recycle) iron, aluminum metal scraps, plastic scraps, etc. that are possible as valuable resources. Zero Emissions of Waste We are working to achieve zero emissions by energetically carrying out waste separation activities at each base to directly promote the reduction of final disposal amount and recycling. In addition, when disposing of waste, we select a disposal company that can recycle as much as possible and strive to reduce the amount of non-recycled waste (total amount of direct final disposal and simple incineration). Total emissions and recycling in Japan Total waste including valuable resources generated by the Fujikura amounted to 14,978 tons, a increase of 106 tons from the previous year. Of this amount, 14,841 tons were recycled and 138 tons were sent to landfills or incinerated for final disposal (a increase of 72 tons compared to last year), for a final disposal rate of 0.92% (a recycling rate of 99.08%), a decrease from 0.45% in the previous fiscal year. Waste reduction activities targeted zero waste generation. However, as was the case last year, foreign governments established policies prohibiting the import of plastic waste, and this forced Group companies to resort to final disposal or simple incineration of some plastic waste due to insufficient recycling capacity in Japan. *The number of bases has increased since FY2016 due to group reorganization.