Under the Furukawa Electric Group Procurement Policy, our Group will contribute to realize a sustainable society through co-creation with our partners*.

We are advancing the implementation of the Self-Assessment Questionnaire (SAQ) based on the Furukawa Electric Group CSR Procurement Guidelines for major suppliers, aiming for 100% completion. These efforts are designated as sustainability indicators and targets under the Furukawa Electric Group Vision 2030 and the 2025 Medium-term Management Plan.

To promote CSR procurement activities that prioritize environmental and social considerations, Furukawa Electric Group has issued the Furukawa Electric Group CSR Procurement Guidelines. In August 2024, we revised these guidelines to the Furukawa Electric Group CSR Procurement Guidelines (4th Edition), incorporating references such as the RBA Code of Conduct 8.0.

Based on these CSR Procurement Guidelines, we collaborate with our partners to uphold “strict compliance with laws and regulations and fair trade,” “consideration for human rights, safety, and the environment,” “reduction of environmental impact,” and “responsible minerals sourcing” in our procurement activities. Additionally, when initiating transactions with new partners, agreement to comply with the CSR Procurement Guidelines is a mandatory requirement, and partner selection is conducted following appropriate risk assessments.

Furthermore, we directly explain the contents of the CSR Procurement Guidelines to our partners at the annual Partners Meeting, fostering ongoing engagement and commitment.

As a risk survey for existing partners, in addition to the conventional questionnaire, we also issued a self-assessment questionnaire (SAQ) for major partners in accordance with the contents of the CSR Procurement Guidelines in FY2021. The scope was expanded from major Furukawa Electric’s partners to include partners of group companies in Japan and Asia in FY2022, and in FY2023, to cover partners of group companies in Europe and the United States.

For partners falling under the categories of any of the survey items that we have identified as high-risk, we reconfirm the situation through interviews and other means, and encourage the partner(s) in question to correct the situation as necessary. In FY2024, we engaged in dialogue with 50 companies, bringing the cumulative total since FY2022 to 147 companies.

In the FY2024 survey results, no significant issues or violations were identified.

We conduct evaluations (environmental and social monitoring) of major partners selected based on purchase volume (80% of material procurement spend) and strategic importance. These evaluations assess partners’ quality, technology, pricing, delivery systems, social and environmental contributions, and credit status, with results provided through feedback during interviews. Additionally, we engage in discussions to align perspectives on procurement activities and continuously request cooperation to ensure business continuity and stable supply.

In FY2024, we evaluated 249 major partners.

The Company steadily advances CSR procurement activities through co-creation with partners, in alignment with the Furukawa Electric Group CSR Procurement Guidelines.

We have established contact points for inquiries about compliance and inquiries about human rights (JaCERʼs Grievance Form) on our website for the acceptance of reports on non-compliance and suspicious activities taking place within the context of our procurement activities. When a report has been received, we will check the described facts of that report, undertake a response such as an investigation, and provide feedback to whistleblower as deemed necessary.

Furukawa Electric Group promotes environmental conservation activities and green procurement throughout the Furukawa Electric Group. We intend to procure environmentally conscious products continuously and with priority from partners who are positive about environmental conservation activities. This way of thinking has been brought together in the Green Procurement Guideline as the procurement requirements.

In July 2023, we revised our Furukawa Electric Group Green Procurement Guideline to the 3rd Edition as we look to achieve our Furukawa Electric Group Environmental Vision 2050. We have incorporated the contents of our Environmental Vision 2050 in our Green Procurement Guidelines and presented them as concrete requests to our partners.

Furukawa Electric Group has clearly stated its approach to responsible minerals sourcing in the CSR Procurement Guidelines and has made it known to group companies and business partners. Additionally, to advance responsible minerals sourcing, we have established the Furukawa Electric Group Responsible Minerals Sourcing Policy. Under this policy, we promote initiatives in compliance with the OECD Due Diligence Guidance, conduct surveys on the use of target metals in major products of our company and group companies, and actively promote procurement from smelters certified under the Conflict-Free Smelter Program of the Responsible Minerals Initiative (RMI).

To prevent and mitigate adverse impacts associated with mineral extraction in conflict-affected or high-risk areas, we not only implement our own initiatives but also participate in the Japan Electronics and Information Technology Industries Association (JEITA) Responsible Minerals Trade Working Group. Through this, we contribute to addressing global conflict minerals issues and improving conflict minerals survey activities in the supply chain through industry collaboration.

We conduct a questionnaire-based survey on Business Continuity Management (BCM) initiatives for major partners. By compiling the survey results into a database, we have established a system to quickly identify partners likely to be affected during disasters, while implementing measures such as diversifying procurement sources for critical products.

In order to build sound relationships with our partners through fair transactions based on compliance with laws and regulations, our Group reviews our internal systems for subcontracting and implements thorough employee training. In FY2024, we conducted e-learning training program on the Subcontract Act for employees of the Group, with a total of 4,608 participants.