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Environment

Climate Change

Efforts to Reduce Greenhouse Gas Emissions

Basic Concept of Climate Change

Furukawa Electric Group has formulated the Furukawa Electric Group Environmental Vision 2050, which looks ahead to the year 2050, and has been working to reduce greenhouse gases throughout the value chain as a contribution to a carbon-free society.In particular, we have been working to reduce greenhouse gas emissions (Scope 1 and 2) in our business activities, use renewable energy, save energy at our plants, and reduce CO₂ emissions in our logistics. To avoid the effects of climate change, we have also taken appropriate preventive measures against physical risks, such as heavy rainfall. In order to accelerate our efforts to reduce greenhouse gas emissions toward carbon neutrality, which is the goal of our Environmental Vision 2050, we revised our Environmental Targets 2030 in February 2022, setting stricter and more ambitious reduction targets than before.We will continue our efforts to further reduce greenhouse gas emissions.

Targets and Performance

As targets for FY2020, Furukawa Electric group worked to reduce greenhouse gas emissions, increase the ratio of renewable energy, and reduce unit energy consumption.Targets and performance for FY 2020 are shown in "Targets and Performance of Environmental Conservation Activities".

Initiatives

Reduction of Greenhouse Gas Emissions

The greenhouse gas emissions of Furukawa Electric Group are mainly energy originated CO₂ emissions and the sulfur hexafluoride emissions. In FY 2020, the CO₂ emissions of the group companies in Japan totaled 288,000 tons-CO₂e, whichi was 18.3% decrease from FY 2017. CO₂ emissions of the overseas group companies totaled 331,000 tons-CO₂e, which was decrease of 26.5% from FY 2017. In addition, sulfur hexafluoride emissions of FY 2020 were reduced compared to FY 2017, due to the improvement of test facilities etc., and total greenhouse gas emissions were reduced by 249,000 tons compared to FY 2017.

Greenhouse gas emissions in our business activities (Scope 1,2)

(note1) For the overseas CO₂ emission coefficient, the coefficient for each country according to the IEA (International Energy Agency) is used for purchased electricity, while the domestic CO₂ emission coefficient is used for non-purchased electricity.

(note2) Emissions of greenhouse gases other than CO₂ are converted to CO₂ equivalent emissions using Global Warming Potential (GWP).

Greenhouse gas emissions (Scope 1,2,3)

(note) In Scope 3, categories 1-8 are upstream, and categories 9-15 are downstream.
The downstream of Scope 3 has been calculated and the latest emission factors have been used since FY2019.

Use of the Renewable Energy

Furukawa Nikko Power Generation Inc., a Furukawa Electric Group company, owns four power plants and supplies hydroelectric power. The company provides 100% of the electricity consumed by the Nikko Works, which uses hydroelectric power to produce copper strip products.In addition, Solar power generation facilities have been installed at Furukawa Electric's Copper Foil Division and Mie Works, at the Japan group company Totoku Electric Co., Ltd., and at overseas group companies including manufacturing bases in Mexico, China, and India. Additionally, we also use electricity generated by geothermal power at our manufacturing bases in the Philippines. In April 2021, the Hiratsuka Works began using green power generated by hydroelectric power plants. 

In FY 2020, renewable energy accounted for 16.5% of the Japan group’s consumption and 10.3% of the overseas group’s consumption. The renewable energy ratio in FY 2020 declined primarily due to the renewal of power generators and waterways started in January 2021. We will continue our efforts to increase the ratio of renewable energy use by implementing proper conservation measures through FY 2022.

Renewable Energy Ratio (Furukawa Electric and Domestic Group Companies)

Solar power panels installed by Mie Works (started operation in April 2021)

Solar power panels installed by TOTOKU Electric Co., Ltd. (started operation in January 2021)

Energy Conservation at Factories

Furukawa Electric Group's energy usage rate was about 20% for fuel and about 80% for electricity. In particular, we achieved energy saving in the manu facturing process with high energy usage ratio. We replaced conventional equipment with more efficient production process and higher efficiency equipment. We implemented measures such as heat insulation of the high temperature section of equipment considering energy balance. Also, the factory building LED lighting is proceeding in accordance with the schedule.

Energy consumption

Reduction of CO2 Emissions in Logistics

In FY 2020, the Japan group’s freight transport volume was 187 million ton-kilometers.
Furukawa Electric accounted for 118 million ton-kilometers of the total, down 15.6% from FY 2017, and CO₂ emissions fell 15% to 13,700 tons-CO₂. Freight energy intensity increased 0.5% from FY 2017. We will continue to promote modal shifts, improve loading ratios, and promote joint distribution.

CO₂emissions and energy intensity related to transportation (Furukawa Electric)

Internal Carbon Pricing

From FY 2019, Furukawa Electric began estimating internal carbon pricing. By making the prices in each business division visible, we are preparing for decarbonization and working to avoid climate change risks.

Measures Against the Physical Risks of Climate Change

Furukawa Electric Group takes appropriate management and preventive measures against physical risks related to climate change (heavy rain, heavy snow, etc.). The following is an introduction to the initiatives of the Hiratsuka and Nikko Works.

Work Target Measures
Hiratsuka heavy rain
  • Development of stormwater reservoirs
  • Regular cleaning of drainage systems and installation of bypasses to increase drainage capacity
  • Waterproofing of factory roofs to prevent flooding in the factory
Nikko heavy snowfall
  • Reinforcement work to prevent damage to factory buildings
  • Installation of snow-melting equipment such as electric heaters to prevent snow accumulation on factory roofs

External Collaboration

Participation in Initiatives

Furukawa Electric Group participates in the following initiatives to realize a carbon-free society.

  • Task Force on Climate related Financial Disclosure (TCFD)
  • Japan Climate Initiative (JCI)
  • COOL CHOICE, an initiative by the Ministry of the Environment to reduce greenhouse gas emissions
  • Challenge Zero, an initiative by Keidanren for a decarbonized society

Collaboration with Industry Associations

Furukawa Electric and some of our domestic group companies belong to two industry associations, the Japan Electric Wire & Cable Makers' Association and the Japan Copper Brass Association. As the executive company of the two associations, we are involved in the formulation of their plans and ensure that policies and strategies are consistent with those of the industry associations and our own. In addition, we are working as a leading company toward the action plans of the respective industry associations to reduce greenhouse gas emissions. In the unlikely event of a conflict in our positions, we coordinate with each other to ensure consistency in our policies.

Consistency with Japanese Government Policy

In order to accelerate our efforts to reduce greenhouse gas emissions to achieve our Environmental Vision 2050, We have revised our Environmental Target 2030. This content is also in line with the Plan for Global Warming Countermeasures, a comprehensive plan for the implementation of Japan’s emissions reduction goal for the year 2030, presented by the Japanese government in October 2021.

Information Disclosure and External Evaluation

Furukawa Electric Group answers questionnaires from the CDP group of institutional investors, responding to the CDP Climate Change questionnaire since fiscal 2008. In order to support customers making use of CDP supply chain programs, we will participate in explanatory meetings and workshops, and to maintain and improve our CDP score, we will continue to expand the scope of environmental data we release and enhance our reliability.  We also participate in the Ministry of the Environment’s Environmental Reporting Platform Development Pilot Project and collaborate with The Japanese Electric Wire & Cable Makers’ Association and the Japan Copper and Brass Association.
The Group has received the following external evaluations and certifications.

  • CDP
  • SBT
  • Zero-Emissions Challenge Company of the Ministry of Economy, Trade and Industry

Data

DFF Inc., ビジネス基盤変革本部 サステナビリティ推進室, ものづくり改革本部 安全推進室, ものづくり改革本部 資材部, ものづくり改革本部 品質管理推進室, 総務・CSR本部 CSR推進部, 環境部
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