Furukawa Electric selected for the first time as a constituent of the “FTSE4Good Index Series” and “FTSE Blossom Japan Index”
- High scores received for ESG-conscious business activities and management strengthening initiatives -
- Selected for the first time as a constituent of two representative ESG indexes: “FTSE4Good Index Series” and “FTSE Blossom Japan Index”
- Recognized for initiatives related to “Climate Change,” “Corporate Governance,” and “Human Rights and Community”
- Continued promotion of ESG management in order to help achieve the SDGs and fulfill “Furukawa Electric Group Vision 2030”
Furukawa Electric Co., Ltd. (Head Office: 2-2-3, Marunouchi, Chiyoda-ku, Tokyo, President: Keiichi Kobayashi) was selected for the first time as a constituent of the “FTSE4Good Index Series” and “FTSE Blossom Japan Index,” both of which serve as representative stock indexes for ESG (Environment, Social, Governance) investments.
Background
The Furukawa Electric Group aims to realize sustainable growth in order to help achieve the Sustainable Development Goals (SDGs) and fulfill “Furukawa Electric Group Vision 2030.” Following our establishment of the “Corporate Sustainability Office” under the Administration & CSR Division in 2019, ESG has played a central role in working to strengthen ESG management in a way that raises enterprise value for the Group over the medium - to long - term.
Content
Recently, we were selected for the first time as a constituent of the “FTSE4Good Index Series” and “FTSE Blossom Japan Index.”.
E (Environment) Initiatives
We have continued to receive high scores for recognizing the risks and opportunities that climate change presents as critical management issues and for accelerating efforts related to “Climate Change.” In August 2019, our goal of reducing greenhouse gas emissions from business activities 26% compared with FY2017 by FY2030 led to SBT(note 1) certification. We also announced our support for the TCFD(note 2) recommendations in March 2020.
S (Social) Initiatives
We received an improved score as a result of formulating the “Furukawa Electric Group Human Rights Policy,” which is based on the “Furukawa Electric Group Philosophy” and stipulates respect for the human rights of all people involved in our business activities, in January 2020.
G (Governance) Initiatives
We are particularly focusing on strengthening corporate governance. Likewise, we received a high score for “Corporate Governance” as a result of reviewing the Board of Directors’ composition during the Ordinary General Meeting of Shareholders in June 2019 from the perspectives of strengthening the independence and diversity of the outside directors. In addition, we signed the United Nations Global Compact(note 3), a precondition for SDGs initiatives, in February 2020 and announced our support for the Ten Principles in the areas of “Human Rights, Labour, Environment, and Anti-Corruption” advocated by the United Nations, thereby accelerating the strengthening of ESG management.
(note 1)The Science Based Targets initiative (SBTi) requires companies to set reduction targets that are consistent with scientific knowledge for the purpose of keeping average global temperature increases below 2°C compared with pre-industrial levels.
(note 2)The Task Force on Climate-related Financial Disclosures (TCFD) is a private-sector led task force that encourages companies and other organizations to make financial disclosures related to climate change-related risks and opportunities. The final report (referred to as the TCFD recommendations) was published in June 2017.
(note 3)The United Nations Global Compact (UNGC) is a voluntary initiative in which companies and organizations act as good members of society and participate in the creation of a global framework for sustainable growth by demonstrating responsible and creative leadership.
About the “FTSE4Good Index Series” and “FTSE Blossom Japan Index”
Created by the global index and data provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. Also developed by FTSE Russell, the “FTSE Blossom Japan Index” reflects the performance of Japanese companies that implement outstanding ESG initiatives, and is one of the indexes used by the Government Pension Investment Fund (GPIF) to make ESG investments.
Furukawa Electric Group’s efforts towards the SDGs
Based on the corporate philosophy of “Drawing on more than a century of expertise in the development and fabrication of advanced materials to contribute to the realization of a sustainable society through continuous technological innovation,” the Furukawa Electric Group is conducting business activities centered on four core technological capabilities (metals, polymers, photonics and high frequency). Moreover, keeping in mind the “Sustainable Development Goals (SDGs)” adopted by the UN, we formulated the “Furukawa Electric Group Vision 2030,” which clarified the business areas of the Furukawa Electric Group, and are advancing efforts aimed at “creating solutions for the new generation of global infrastructure combining information, energy, and mobility to build a sustainable world and make people’s life safe, peaceful, and rewarding.
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