Four Focus Areas (Materiality) Views on Sustainability Targets 2025 We need to engage in two types of activities to achieve sustainability based on the Fujikura Group Corporate Philosophy (MVCV): Activities necessary for sustainable corporate management and activities that facilitate building a sustainable society. Up to this point, we have specified the five-year CSR Priority Measures 2020 (FY2015 to FY2020) as environmental and social materialities and pursued each measure in cooperation with the relevant divisions. However, rapid social changes after establishing targets have necessitated radical revisions. We therefore established targets that also added the perspective of financial materialities to environmental and social materialities in our new 5-year Sustainability Targets 2025 (FY2021 to FY2025), beginning in FY2021. We have set more future-oriented goals by linking this to the long-term visions the Fujikura Group has established (the 2030 Vision and Fujikura Group Long-term Environmental Vision 2050). Sustainability Targets 2025 was deliberated and approved by the Sustainability Strategy Council (chaired by the president). Introduced double materiality perspectives When establishing Sustainability Targets 2025, we verified the results of CSR Priority Measures 2020 and sorted out the new perspectives that should be incorporated based on the latest trends. To ascertain the latest trends, we referenced domestic and international issues and international guidelines, the elements rated by ESG rating institutions, and comments from stakeholders. We also added the perspective of F (Finance & Future), incorporated the impact of environmental and social aspects on corporate performance, and considered achievement of the 2030 Vision and other long-term visions of the Company in Sustainability Targets 2025. Created a materiality matrix The Fujikura Group created a materiality matrix specifying the themes of Sustainability Targets 2025 based on the Fujikura Group CSR Basic Principles and the four focus areas. We performed a materiality matrix analysis with stakeholder inclusiveness in mind, and evaluated and verified materiality from the two perspectives of the degree of stakeholder concern and degree of impact on Fujikura’s business. This resulted in establishment of three items in F (Finance & Future), five items in E (Environment), three items in S (Social), and five items in G (Governance). The targets and results are evaluated annually with the goal of achieving them by FY2025. Progress on the targets is disclosed in the Integrated Report and on the corporate website every year. Added new targets When establishing Sustainability Targets 2025, we verified the results of CSR Priority Measures 2020 and sorted out the new perspectives that should be incorporated based the latest trends. To ascertain the latest trends, we referenced domestic and international issues and international guidelines, the elements rated by ESG rating institutions, and comments from stakeholders. We also added the perspective of F (Finance & Future), incorporated the impact of environmental and social aspects on corporate performance, and considered achievement of the 2030 Vision and other long-term visions of the Company in Sustainability Targets 2025. Deliberated in Sustainability Strategy Council The administrative office first produced a draft proposal and discussed it with each division when establishing the priority measures, targets to achieve, and measures and indicators for achieving the targets in Sustainability Targets 2025. Progress reports were subsequently presented and deliberated in Sustainability Strategy Council meetings, and Sustainability Targets 2025 was approved in August 2021 at the second Sustainability Strategy Council meeting in FY2021. Sustainability Targets 2025 List Theme Priority Measure Target to Achieve in FY2025 Finance & Future (F) Solve problems in a comfortable and sustainable “Mirai” (future) society by providing “tsunagu” (connecting) solutions and thereby continuously enhances corporate value Find new businesses in the four areas envisioned in the 2030 Vision 1.Evolve and develop core technologies in existing businesses ・Expand core technologies and develop products and services that add high value ・Sell products and services for which there is a high willingness to pay (WTP) 2.Find new technologies and business areas ・Also consider open innovation ・Find businesses through the sale of information as well as the sale of goods Develop products that are friendly to the global environment and can be used with confidence 1.Replace all Fujikura products with environmentally friendly products (Green-related products) by 2050. ・FY2020 results: Approx. 40% 2.Expand green product creation activities to the entire Group in 2030. ・FY2020 results: One company in Japan (Nishi Nippon Electric Wire & Cable Co., Ltd.) Use data and digital technologies to improve the efficiency of existing businesses and create new business models 1.DX at manufacturing sites (conversion to smart factories and use of AI) 2.DX in the Sales & Marketing Unit (digital marketing) Environment(E) [Challenge 1] Zero CO2 emissions at plants by 2050 1.Reduction in total CO2 emissions ・FY2025 target: Reduction of at least 20% compared to FY2018 (to 350,000 tons/year or less) ・FY2030 target: Reduction of at least 40% compared to FY2018 ・FY2050 target: Net zero CO2 emissions at plants 2.Improve production efficiency (pursue energy conservation) ・Intensity of energy used for production (versus net sales): Improvement of at least 10% in FY2025, compared to FY2020 3.Improve product distribution efficiency ・Intensity of energy for product distribution: Improvement of at least 5% in FY2025, compared to FY2020 [Challenge 2] Minimize use of water at plants and wastewater management 1.Contribute to reduction in water risks ・Water usage intensity: Improvement of at least 5% in FY2025, compared to FY2020 [Challenge 3] Symbiosis between plant workers and nature 1.Effectively utilize nature at business sites and contribute to expansion of biodiversity 2.Pursue local activities to preserve the natural environment [Challenge 4] Effectively use resources and resource cycle 1.Reduce resource inputs and promote efficient use of resources 2.Reduce amount of waste generated in business activities ・Intensity of waste generated: Improvement of at least 5% in FY2025, compared to FY2020 3.Achieve net zero waste generation Build climate change governance system (response to TCFD) 1.Ascertain risks and opportunities of climate change 2.Ascertain impact on strategy and finance Social(S) Implement workstyle reform (strengthen engagement) Ensure that employees grow as a person through self-actualization in both their public and private lives ・Increase the motivation of employees to contribute independently ・Establish an environment where people can work anywhere, at any time ・Improve motivation through health management ・Improve labor productivity Develop globally versatile human resources Diversity & inclusion(Respecting the human rights of employees) 1.All Fujikura Group employees acting from a global perspective ・Create a corporate culture in which the growth of employees is synchronized with the growth of the company ・Develop, find, and acquire human resources to lead innovation ・Support independent career development and provide opportunities for growth ・Create an organization in which employees mutually recognize and improve one another (individual respect and trust) 2.Active contribution by human resources who possess diverse backgrounds and views ・An environment where diverse individuals can actively contribute ・Provide career opportunities regardless of nationality, ethnicity, gender, religion, age, or other attributes ・Consider physical or sexual minorities Governance(G) Maintain Board of Directors functions 1.Enhance medium and long-term corporate value ・Improve effectiveness of the Board of Directors and strengthen the supervisory function ・Increase transparency and impartiality in management and strive for swift decision-making ・Ensure diversity of the Board of Directors 2.Growing the leaders who will become the CEOs and other leaders of the next generation ・Formulate and employ successor plans ・Appropriately supervise development plans Put the Fujikura Group Corporate Philosophy (MVCV) into practice 1.Each of us must follow an ethical path as a member of society. ・Implement a new code of conduct for putting the Fujikura Group Corporate Philosophy (MVCV) into practice. Build Group Governance (Strengthen the risk management structure) 1.Build a risk management structure that facilitates strategic management and control risks (PDCA) 2.Strengthen investment management Supply chain management (including responsible mineral sourcing) 1.Establish supply chain management that addresses social issues (child labor, forced labor, etc.) 2.Establish a system of responsible mineral sourcing (a system for performing due diligence, mainly on the 3TG minerals (Tin, Tantalum, Tungsten and Gold), as well as cobalt, mica, and other minerals 3.Zero findings by NGOs and other external organizations (or rapid correction when there are findings) 4.Cooperate with other companies (learn from the initiatives of other companies and use such lessons in Fujikura's own initiatives) Comprehensive security export control 1.Comply with export control laws and regulations ・Number of serious legal violations:0 incidents/year 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
