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Environment

Climate Change

Efforts to Reduce Greenhouse Gas Emissions

Basic Approach to 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.  We also take 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 raised the 2030 greenhouse gas emissions reduction target to SBT1.5℃ in November 2022, and obtained SBT1.5℃ certification in July 2023. We will continue our efforts to further reduce greenhouse gas emissions.

Targets and Performances

The Group sets annual targets and addresses reducing greenhouse gas emissions, increasing the ratio of renewable energy, and reducing unit energy consumption.  

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(SF6).
The CO2 emissions of the group companies in Japan in FY2022 totaled 218,000 tons-CO2e, which was 38.3% decrease from FY2017. CO2 emissions of the overseas group companies totaled 316,000 tons-CO2e in FY2022, which was a decrease of 31.6% from FY2017. In addition, sulfur hexafluoride emissions of CO2 equivalent in FY2022 were temporarily increased, due to the update of test facilities etc., but we will continue to work to reduce emissions. Total greenhouse gas emissions in FY2022 were reduced by 332,000 tons-CO2e compared to FY2017(base year).

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

*1 For the overseas CO2 emission factor, purchased electricity uses emission factors published by the authorities in each country or International Energy Agency (IEA) data, and the other energy uses domestic CO2 emission factors.

*2 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)

In Scope 3, categories 1-8 are upstream, and categories 9-15 are downstream. Up to FY2018, downstream of Scope 3 is not calculated. The downstream of Scope 3 has been calculated and the latest emission factors have been used since FY2019.

Use of the Renewable Energy

Usage of hydroelectric and solar power:
The subsidiary of Furukawa Electric, Furukawa Nikko Power Generation Inc. owns four power plants and supplies electricity generated by hydroelectric power. It covers 100% of the electricity for Nikko Works, and copper strip products are produced using hydroelectric power. In addition, solar power systems are installed for utilization in Copper Foil Div., Mie Works, domestic Group companies such as Furukawa Automotive Systems Inc., The Furukawa Battery Co., Ltd., and production sites at overseas Group companies in Mexico, China, India, and Brazil. Out of these, Mie Works installed the system of on-site PPA. We will continuously move ahead on the installation of the solar power system.

 

Introduction of electricity derived from renewable energy:
At overseas group companies, electricity derived from renewable energy is used at production sites in Germany, Italy, Hungary, and the Philippines. Also in Japan, from April 2021, Hiratsuka Works partially started introducing electricity derived from renewable energy. From April 2022 onwards domestic production sites in Copper Foil Div., Chiba Works, Mie Works, and four domestic group companies have been partially using electricity derived from renewable energy.

The ratio of renewable energy use to total consumption in FY2022 was 36.0% for the domestic group companies and 20.2% combined with the overseas group companies. We will continue to work on increasing the ratio of renewable energy usage. 

Renewable Energy Ratio (Furukawa Electric and Domestic Group Companies)

Solar power panels installed
in Furukawa Automotive Systems Inc. headquarters
(started operation in January 2022)

Solar power panels installed
in The Furukawa Battery Co., Ltd.

(started operation in April 2022)

Hydroelectric power generation
in Furukawa Nikko Power Generation Inc.

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 manufacturing 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. We switch to the use of LED for the plant buildings’ lighting as planned. In FY2022, we worked on the efficient operation of electric facilities, including the efficient use of heat (improvement of thermal insulation of furnaces and updating of facilities), the introduction of high-efficiency equipment (updating of transformers and introducing inverters ), and the shutdown of equipment that did not operate.

Energy consumption

Reduction of CO2 Emissions in Logistics

The domestic group’s freight transport volume was 177 million ton-kilometers in FY2022.
Furukawa Electric accounted for 112 million ton-kilometers of the total, reduced 5.2% from FY2020, and related CO2 emissions reduced 2.9% to 13,300 tons -CO2e. Freight energy intensity increased 2.5% from FY2020. We will continue to promote modal shifts, improve loading ratios, and promote joint distribution.


COemissions and energy intensity related to transportation (Furukawa Electric)

Internal Carbon Pricing

Internal carbon pricing (using a shadow price) has been calculated since FY 2019. By visualizing the amount of CO2 emissions for each division using carbon prices, we encourage preparation to avoid climate change risks toward decarbonization. For example, a division that cannot meet its reduction target will have a negative shadow price and will incur a hypothetical loss. Conversely, a division that meets the target will have a positive shadow price and will bring hypothetical profit. Based on the quarterly evaluation and posting effects, a renewable energy introduction plan is promoted for any division that does not meet the target.

Measures Against the Physical Risks of Climate Change

The Group takes appropriate management and preventive measures against physical risks related to climate change (heavy rain, heavy snow, etc.). Each works take measures for air-conditioning to cope with global warming. The following is initiatives Hiratsuka and Nikko Works have taken. 

Works 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

Our group companies located in Japan belong to two industry associations, the Japanese Electric Wire & Cable Makers' Association and Japan Copper and Brass Association. In the Carbon Neutral Action Plan of each association, we set targets for each association and work to ensure that our policies and strategies are consistent with those of the associations as a group.In the worst case scenario, the association's policies are significantly weaker or inconsistent with the Group's strategy, we will encourage the associations to align their policies with those of the Group. If such alignment is difficult, we will take appropriate action considering withdrawal from the associations. 

Consistency with Japanese Government Policy

In order to accelerate our efforts to reduce greenhouse gas emissions to achieve the Environmental Vision 2050, we have revised the Environmental Target 2030. This content is also in line with  Global Warming Countermeasure Plan, 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, External Evaluation and Certification

The Group has been responding to CDP's questionnaire on climate change, which represents institutional investors, since FY2008. In order to support customers making use of CDP supply chain programs, we participated in explanatory meetings and attended seminars. We will continue to expand the scope of environmental data we disclose and enhance our reliability. 
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., サステナビリティ推進室, 環境部