Climate Change Data

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• Resource Efficiency
• Water Management
• Biodiversity
• Human Resource Development
• Corporate Governance
• Supply Chain Management

Environmental Achievements

• Achieved an 18.4% reduction in emissions vs. FY2018 (compared to a 4% reduction target).
• Developed environmentally friendly optical termination cabinets and high-density optical cables (SWR®/WTC®) contributing to resource conservation.
• Registered 60 or more Green products or Green Mind products annually.

Social Achievements

• Employment rate for people with disabilities: 2.5% (vs. a statutory rate of 2.3%).
• Provided opportunities for employee growth (expanded seminars on promotion requirements, strengthened open participation in external seminars, began online English conversation sessions, etc.).
• Supported Fujikura Gakuen, a special facility for mentally-challenged children.

Governance Achievements

• Strengthened corporate governance through management restructuring, establishing the positions of CEO, CFO, and CTO.
• Switched to a corporate structure with an Audit & Supervisory Committee.
• Increased the number of outside directors.

Climate Goals & Targets

Environmental Challenges

• Steep increases in raw material prices and stable supply.
• Impact on operations from flooding, a large typhoon, or other natural disaster.
• Health considerations for employees who work in the area of operation due to a rise in the temperature, or other changes.

Mitigation Strategies

• Disaster preparedness/prevention response for affected locations.
• Diversifying locations and building a flood wall near the business.
• Slope face maintenance around office sites and response to high tides and tsunami at plants near the ocean.

Supply Chain Management

Supplier Audits: 27 suppliers/year

Responsible Procurement

• e-learning on SDGs and CSR procurement

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Typhoons
• Rise in sea level

Transition Risks

• Stricter CO2 emissions regulations
• Changes in demand for products and services
• Rising raw material prices

Opportunities

• Increase in demand for power, especially electric power demand
• Proliferation and expansion of renewable energy
• Exponential growth in data distribution, storage, and analysis volume

Reporting Standards

Frameworks Used: IIRC International Integrated Reporting Framework, GRI Sustainability Reporting Standard, TCFD

Certifications: ISO 45001-2018, ISO 9001:2015

Sustainable Products & Innovation

• SWR®/WTC® optical cables
• Environmentally friendly optical termination cabinets
• Heat pipe module to cool power electronics in vehicles

Awards & Recognition

• Award of Excellence in the 2020 Environmental Human Resource Development Company Awards

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Financial/Future

Environmental Achievements

• Achieved a 24% reduction in emissions vs. FY2018, compared to the 8% reduction target (for the Group)
• Achieved extensive energy savings and reduction in electricity use
• Explored and implemented innovative manufacturing that minimizes energy consumption
• Used in-house power generation, purchased electric power derived from renewable energy sources, and proceeded with environmental value on a cost-minimum basis

Social Achievements

• Drafted a revised version of the HRM Vision through a process that involved employees in roundtables with the labor union, etc.
• Held career design seminars focused on specific age ranges
• Introduced video learning services for gaining knowledge and expertise in business skills, in addition to making the online English conversation program permanent

Governance Achievements

• Established and are implementing an educational program for the management-track pool of human resources
• Produced managers from the management-track pool of human resources
• Strengthened supply chain management
• Comprehensive security export control

Climate Goals & Targets

Environmental Challenges

• Supply chain disruption due to heightened geopolitical risk
• Continual surge in the cost of energy and materials
• Difficulty in securing human resources due to an aging society with fewer children being born
• Companies in emerging countries entering competition
• Global supply chain issues
• Division of the international community due to prolonged conflicts
• Switch to economic blocks
• Deterioration in profitability due to a decline in the level of rental rates
• Impact on operations from flooding, a large typhoon, or other natural disaster
• Impact on business results if a production facility is damaged and this reduces operating capacity or requires equipment restoration, etc.
• Impact on production plans due to partial severance of the supply chain
• Health considerations for employees who work in the area of operation due to a rise in the temperature, or other changes
• Securing the safety of employees due to an increase in the amount of rainfall
• Impact on operations from a future rise in sea level
• Deficiencies in the internal controls of America Fujikura Ltd. (AFL Group)

Mitigation Strategies

• Developed human resources by introducing an educational system to strengthen ties with suppliers and overseas locations
• Disaster preparedness/prevention response for affected locations
• Slope face maintenance around office sites and response to high tides and tsunami at plants near the ocean
• Trial calculation of financial impact from a carbon tax
• Following the roadmap to 100% renewable energy, move forward with extensive use of energy savings, introduction of renewable energy, credits, and other tools based on Fujikura Group Environmental Long-term Vision 2050
• Pursuing use of renewable energy in business activities (at head office, plants, etc.)
• Strengthening response by joining the RE100 and affirming TCFD recommendations, and regularly monitoring and responding to ESG rating indicators
• Investment in automating wiring harness assembly work to adapt to the decline in the labor force
• Development of versatile human resources capable to respond business globalization
• Strengthening Group governance
• Creating a system and organization with functioning governance at subsidiaries to achieve improvement
• Creating an organization which establishes checks and balances for the entire Group and can guarantee the independence of each officer as well as a system in which head office audits function properly

Supply Chain Management

Responsible Procurement

• Fujikura Group Basic Procurement Policy
• Fujikura Group Procurement Purchasing Division Code of Conduct
• CSR procurement self-assessment questionnaire
• Procurement department survey

Climate-Related Risks & Opportunities

Physical Risks

• Impact on operations from flooding, a large typhoon, or other natural disaster
• Impact on operations from a future rise in sea level

Transition Risks

• Stricter CO2 emissions regulations in various countries through the introduction of a carbon tax, etc.
• Demands from customers and the countries Fujikura operates in and obligation to reduce greenhouse gas emissions and our carbon footprint
• Disruption of existing technology
• Changes in demand for products and services
• Temporary increase in capital investment cost from climate change countermeasures requested by customers or the community
• Rising raw material prices and diversification of suppliers from climate change-related factors
• Demands for information disclosure on and response to climate change by customers, investors, and various rating organizations

Opportunities

• Increase in demand for power, especially electric power demand, mainly in developing countries due to economic growth, urbanization, population growth, and other factors
• Power supply stabilization, increased efficiency, and progress on energy savings under the 2º C scenario through the use of digital technology
• Diversification of both power supply and demand for companies, individuals, etc., and increase in renewable energy use under the 2º C scenario
• Promotion of digital technology use
• Expansion of Green-related products
• Products related to highly efficient electrical power systems
• Roll out of solutions mainly for high density, small-diameter optical cable (SWR®/WTC®)
• Products for highly efficient IT systems
• Strengthening the resilience of social infrastructure such as electrical wire and cable
• Increase in demand for lighter wiring harnesses
• Combining knowledge of the automotive products business with the telecommunication systems, energy, and other businesses to generate new businesses related to electric vehicles
• Strengthening response to automotive components other than wiring harnesses and electric vehicles
• Expansion of Green-related products
• Need to consider the positive environmental impact of ZEB and other measures, etc.
• Securing and maintaining tenants that demand environmental friendliness

Reporting Standards

Frameworks Used: IFRS Foundation International Integrated Reporting Framework, GRI (Global Reporting Initiative) Sustainability Reporting Standard, METI (Ministry of Economy, Trade and Industry) Guidance for Integrated Corporate Disclosure and Company-Investor Dialog for Collaborative Value Creation

Sustainable Products & Innovation

• SWR®/WTC® optical cable
• High-temperature superconducting wire rod
• Fiber lasers
• Super fast EV charging technology

Awards & Recognition

• Award of Excellence (large company division) in the 2020 Environmental Human Resource Development Company Awards
• APMC Prize at the Asia-Pacific Microwave Conference, APMC 2022