Furukawa Electric Group has established the Furukawa Electric Group Procurement Policy, and contributes to realizing a sustainable society through co-creation with our partners^*.

Under the Medium-term Management Plan 2022–2025 (the 2025 Medium-term Plan), we set the “ratio of SAQ implementation for major suppliers” as a sustainability indicator, worked toward achieving a 100% implementation rate, and achieved this target in FY2025. From FY2026 onward, we will continue conducting SAQs while adopting the “completion ratio of responses to procurement risks for critical components” as an indicator for strengthening supply chain business continuity management (BCM).

To promote CSR procurement activities that prioritize environmental and social considerations, the 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, understanding and compliance with the CSR Procurement Guidelines are mandatory requirements. We also use questionnaires toconfirm their compliance with the Guidelines and begin business only with partners whose assessment results are satisfactory.

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 have conducted SAQs for major partners in accordance with the contents of the CSR Procurement Guidelines since FY2021. The scope was expanded from major Furukawa Electric’s partners to include partners of group companies in Japan and Asia in FY2022, and to cover partners of group companies in Europe and the United States in FY2023.

For partners falling under the categories of any of the survey items that we have identified as high-risk (key items), we conduct interviews, etc. and reconfirm their situation through dialogue, and encourage them to correct the situation as necessary. In FY2025, we engaged in dialogue with five companies, bringing the cumulative total from FY2022 to 152 companies.

In the FY2025 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 feedback on the results provided through interviews. Additionally, we engage in discussions on the evaluation results to align perspectives on procurement activities and continuously request cooperation to ensure business continuity and stable supply.

In FY2025, we evaluated 212 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 facts described in that report, undertake appropriate responses such as an investigation, and provide feedback to the whistleblower as necessary.

The Group is promoting and implementing environmental conservation activities and green procurement. Our fundamental approach is to continuously procure environmentally conscious products with priority from partners who are positive about environmental conservation activities. These procurement requirements have been summarized in the Furukawa Electric Group Green Procurement Guideline.

In September 2025, we revised the Guideline to the 3.1 Edition, and in April 2026, to the 3.2 Edition. The 3.1 Edition reflects the revisions to the Furukawa Electric Group Environmental Vision 2050, which newly sets the goal of aiming for net zero greenhouse gas emissions across the entire value chain. In the 3.2 Edition, to ensure consistency with the Furukawa Electric Group Purpose, we incorporated the content of the Furukawa Electric Group Basic Environmental Policy—which was revised in December 2025—into the Guideline and more clearly outlined specific requests for our partners.

The 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.

The Group continuously provides training on legal compliance and CSR procurement to implement fair and responsible procurement practices, working to deepen understanding and strengthen practical implementation capabilities across the Group.