Komatsu ESG Databook

2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planetSocialData

contribution
activities

Index

ESG Databook 2023
Message from the President
Sustainability policy

003

Activities to eﬀectively utilize resources in production(1. waste)

171

003

Activities to eﬀectively utilize resources in production(2. water resources)173

Environmental initiatives at sales and service companies

174

Promoting legal compliance, and pollution mitigationand prevention

177

Management of chemical substances and pollution prevention

178

Reducing the use of substances of environmental concern
and complying with the EU REACH and SCIP regulation

180

Management of sustainability
Materiality analysis005

Our system to promote sustainability009

Dialogue with our stakeholders

010

Major achievements

017

External recognition

022

Comparison with global principles

027

Green bond030

Sustainability-linked bond033

Komatsu's eﬀorts regarding water

182

Compliance and risk audit at overseas group companies

185

Biodiversity Initiatives

186

Data

With people
The Komatsu Way and policy on human resource development

036

Promoting diversity and inclusion

045

Oﬀering of a variety of talent development opportunities
and improvement of employee engagement057

Develop digital and open innovation promotion human resources064

Occupational safety and health066

Human rights policy

076

Business and human rights

079

With business
Improving safety of products and solutions

086

Quality assurance - Our responsibility to customers -090

Outline of procurement policy and supply chain

095

Overview of supply chain management processes

103

Komatsu group's supply chain management andpromotion of CSR procurement

108

Support for member companies of the Komatsu Midori-kai(management and society)

Environmental data

191

Amount of CO2 emissions by scope3

197

SBT (Science-Based Targets) approved

198

Environmental education

199

Environmental accounting

202

Major environmental achievements in FY2022

204

Scope of environmental data/calculation standards

209

Independent practitioner's assurance

213

Other CSR data

214

Social Contribution Activities
Accomplishments and approaches for social contribution activities

216

Nurturing the next generation

219

Developing people needed by the community

220

Clearing anti-personnel landmines andcommunity development support

224

Disaster relief

115

233

Komatsu's initiatives for the social issues

235

Support for member companies of the Komatsu Midori-kai（environment）

124

An employee-participatory social contribution program"One World One Komatsu"

237

Corporate governance129

Promoting sports̶the Komatsu women's judo club

241

Corporate governance indicators

131

Compliance

134

Index

Risk management

139

Information security

146

GRI content index

246

SASB content index

254
Editorial Policy

With the planet

This publication is the compiled PDF version of Komatsu's webpage "ESG

Our concept of environmental activities and promotion system

149

Organizational chart of the environmental management structure

152

Setting mid- and long-term targets and progress

154

Acquiring ISO14001

156

Relationship between business activities and the environment

158

Mitigating climate change through products and service

160

Reducing CO2 emissions in manufacturing operations

163

Reduction CO2 emissions in logistics

166

Development of our “Reman” remanufacturing business

168

Databook", as of July 20,2023

The reports principally cover all our domestic and overseas consolidated Group
companies and if the scope is diﬀerent from the above, we stated the scope ofreport in each page.

The date of the previous report is July 2022. We publish these reports every July,and the next issue will be published in July 2024.

Please use this form to send us any questions regarding our reports.

The reports contain Standard Disclosures from the GRI Sustainability ReportingStandards. You can see a list of the Standard Disclosures and their location in ourreport here.

Komatsu has received an independent practitioner's assurance on important
quantitative data in environmental reporting, which can be viewed here.

1

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Message from the President

003

Sustainability policy

003

2

Data

Socialcontribution
activities

Index

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Message from the President

Our priority on sustainability management aims to generate apositive cycle for resolution of ESG issues and improvement of
earnings to achieve sustainable growth.
With our “Sustainability policy” serving as a guideline for theachievement of a sustainable society and business growth, weare committed to meeting the challenge of climate change andother social issues, and we will fulfill our social andenvironmental responsibilities as a global company throughour business activities.
Hiroyuki Ogawa
President and CEO
Representative Director

Sustainability policy
Since Komatsu's founding, we have always pursued "Quality and Reliability", and have made e orts to build strong relationships of trust with our
stakeholders based on our "Management Principle" of maximizing the total sum of trust from all stakeholders, including society.
Our pursuit of coexistence has been handed down through generations, and our basic stance is to contribute to society through business activities.
Our purpose is "Creating value through manufacturing and technology innovation to empower a sustainable future where people, businesses, andour planet thrive together".
We will continue to address issues that are important to both a sustainable society and our business, grow as a corporate group that can exibly
respond to changes in society and the external environment, further enhance our corporate governance, and contribute to society with our
stakeholders.

What we do to empower a sustainable future where people, businesses, and our planet thrive together
With people

With businessWith the planet

We provide an environment where
diverse and global employees can worksafely and healthily as one team, withrespect for each individual, and withsatisfaction and pride.
We nurture employees who can take onchallenges in various jobsites andregions, create new value together withcustomers, and contribute to therealization of a sustainable society.
As Komatsu Group, we shall respecthuman rights related to all of ourbusiness activities.

We contribute to society through ourbusiness activities by providing ourcustomers with safe and highly
productive products, services andsolutions that realize sustainableinfrastructure development, resource
development and a recycling-oriented
society.
We build relationships with ourbusiness partners and local
communities that enable mutual trust,fairness, co-existence and coprosperity.
We comply with the rules of society,including laws and regulations, andstrive to respond sincerely to therequests and expectations of all
stakeholders, including society.

Through all of our business activities,
we strive to reduce our environmental
impact and preserve the global
environment through the use ofadvanced technologies.
We strive to increase both global
environmental conservation andbusiness growth throughmanufacturing and technologicalinnovation.
We pursue collaboration and value
creation with our stakeholders towards
a sustainable planet and future.

Komatsu Ltd.
President and Chief Executive Officer
3

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Management of sustainability

Materiality analysis005

Our system to promote sustainability009

Dialogue with our stakeholders

010

Major achievements

017

External recognition

022

Comparison with global principles

027

Green bond030

Sustainability-linked bond

033

4

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Materiality analysis
In recent years, our external environment has undergone intense change and there is more and more
uncertainty. We need to enhance our foundation for sustainable growth, taking trends like digitaltransformation, carbon neutrality as well as diversity and inclusion as business opportunities, and to resolve
social challenges through our business activities.
In recognition of these issues, we reviewed the materiality from November 2020 to February 2021, before thedevelopment of our current mid-term management plan, to strengthen our ability to respond to changes inthe external environment and business risks.
In order to create a positive cycle of ESG issue resolution and earnings improvements in accordance with thegrowth strategy in the mid-term management plan, we will also reflect our materiality initiatives into our
growth strategies.

Komatsu's procedure to identify material issues
In the process of developing the materiality, we took the following steps with support from a third party,
namely, Business for Social Responsibility (BSR), a US non-profit.

１．Identification of sustainability issues
We identified 46 sustainability issues that have a significant impact on corporate value creation and businessperformance in the medium to long term using past materiality analysis, international targets and standards,
reporting frameworks, management philosophy and strategy, key stakeholder issues, and so on.

２．Evaluation of issue items
We interviewed internal and external stakeholders regarding the sustainability issues identified andevaluated and mapped them from two perspectives: business importance and impact on sustainability(importance to stakeholders + environmental, social, and economic impact).
* External interviews : institutional investors, WBCSD, environmental organization (WWF), human rights NPO (BHRRC), customers, andsuppliers.
* Internal interviews : worldwide executives (directors, executive officers including global officers).

３．Identification of materiality
From this analysis, we selected areas of particular significance to both business importance and impact onsustainability. We subsequently identified the following six areas of materiality: [Employees], [Human rights],[Customers], [Ethics/Governance], [Communities], and [Environment].

5

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Materiality[Employees]

Occupational safety and health and wellbeing
Employee engagement and job satisfaction
Diversity and Inclusion
Skills development and workplace retention[Human rights]

Respect for human rights[Customers]

Provision of solutions
Product safety and quality[Ethics /Governance]

GovernanceCompliance[Communities]

Contributions to local communities[Environment]

Development of low-carbon/low-emissions
products, solutions and business models
Resource recycling and remanufacturing
Reduction of energy usage and GHG emissions
Forest conservation through business activities

Additionally, we have identified [Environment], [Customers], [Employees] and [Ethics/Governance] as ourpriority issues given their business importance and high impact on sustainability. To create a virtuous cycle ofprofit improvement and ESG issue resolution, we reflect the activities of these four areas in our growthstrategy.

6

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

４．Relationship between materiality, sustainability policy, and the SDGs
We will continue to contribute to society through our business activities per our sustainability policy
established in 2021.
In identifying materiality, in addition to consistency with the sustainability policy, we have also verified
consistency with the Sustainable Development Goals (SDGs), and have selected 10 goals from the 17 SDGs
that are particularly relevant to Komatsu Group's materiality.
Sustainability
policyRelationship with SDGs

Materiality[Employees] [Human rights]

With people

Gender equality Decent work andeconomic growth

Reduced Partnerships for theinequalities
goals

With businessIndustry,
Sustainable cities
innovation and and communities
infrastructure

Responsible Partnerships for the
consumption andgoals
production

Affordable andclean energy

With thePlanetIndustry,
innovation andinfrastructure

Responsible Climate action
consumption andproduction

Diversity and Inclusion
Skills development and workplaceretention
Employee engagement and job
satisfaction
Occupational safety and health andwellbeing
Respect for human rights[Customers][Ethics / Governance][Communities]
Provision of solutions
Product safety and quality
GovernanceComplianceContributions to local communities[Environment]

Development of low-carbon/lowemissions products, solutions andbusiness models
Resource recycling andremanufacturing
Forest conservation through businessactivities
Reduction of energy usage and GHG
emissionsLife on land Partnerships for the
goals

7

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

5. Resolution by the Board of Directors as a mid-term management plan
The above materiality was reviewed for consistency with our sustainability policy and the SDGs. The Board of
Directors then resolved to address materiality through growth strategies in order to create a positive cycle ofresolving ESG issues and improving earnings.
In order to ensure to resolve ESG issues steadily through our growth strategies, we have set KPIs for key
initiative activities and monitored their achievement. The progresses of these activities is disclosed in the
Komatsu Report (Integrated report).
Furthermore, to respond flexibly to changes in the business and management environment, we will continue
to regularly conduct materiality analysis regularly (at least once every three years) to reflect company-widebusiness risks and opportunities n our management.

8

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Our system to promote sustainability
In April 2021, Komatsu established the Sustainability Promotion Division under direct control of President tosupervise activities relating to the promotion of the Komatsu Group’s sustainability-oriented management.
The Sustainability Promotion Division enhances the commitment of the entire Komatsu Group to ESGoriented management with the goal of building an environment for formulating policies and plans regarding
two major areas of ESG management, the environment and society, to ensure the divisions and companies of
the Group are able to maintain their commitment to sustainability.
The Sustainability Promotion Committee, chaired by the President, is held annually (and at other times asneeded) to discuss and decide on the planning and promotion of sustainability measures for the KomatsuGroup, environmental and CSR policies, and important measures and activities and to support theirimplementation.
Furthermore, we regularly report to the Board of Directors and seek its deliberations on the discussion of the
Sustainability Promotion Committee.

Global information sharing
We provide opportunities for people to exchange opinions and frequently share information regarding thethings that Komatsu believes is the CSR of today. For example, global CSR meetings and virtual meetings are
regularly convened including about 30 managers and other people in charge of CSR activities from ouroverseas subsidiaries. In the future, by collecting various opinions from various areas of the world, we will
create a system to comprehensively understand and share what is required on the front lines of the businesssites.

9

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

Dialogue with our stakeholders
Creating a variety of opportunities for dialogue
Engaging in dialogues with our stakeholders is essential for determining the relative effectiveness ofKomatsu's management and business operations in terms of meeting social needs. Every department thathas direct contact with our stakeholders strives to create an environment of transparency and integrity bydetailing our company’s current situation, receiving feedback, and engaging in effective discussions.
Stakeholders

Examples of meetings andactivities

Purposes

Collaborate to realize
Brand Management
customers' goals and fulfill
Activities
corporate responsibility
Customers
Collaborate to resolve issues
in society and in the regions
where we operate, andparticipate in local activities
President explains business
Various meetings withperformances, policies andMidori-kai
strategies
Business partners Conduct safety patrols andprovide opportunities such as
for support of efforts for
obtaining certification
Explanation by the President
Distributor meetings in eachDistributors
on business performance,
regionpolicies and strategies
Meeting with the President
Explanation by the President
Sharing Q&A session
business performance,
content with global
policies and strategies
employees via the intranet
Employees
Dialogue with the labor unionand employee representatives Regular Meetings between
Management and Labor
to improve the workplace
Union
environment

10Frequency
Daily
Daily
2 times a year
As needed
5 times a year
2 times a year
As needed
As needed

ESG Databook 2023

Sustainability policy

Management ofsustainability

Stakeholders

Local community

With people

With businessWith the planet

Activities to resolve local
issues based on employee
suggestions
Exchange of ideas andIndustry-academia opinions between
representatives such as
collaboration
university professors and ourpartners
Chief Technology Officer
CEO and CFO explanation ofbusiness performance,
policies and strategies
Investors
Respond to inquiries and SRI
surveys
Individual
shareholders

SocialIndex

contribution
activities

Examples of meetings andactivities

Purposes
Explanation of initiatives
related to operations, theenvironment and safety

Data

Frequency

Meetings with residents of the As needed
local community near theplant
Voluntary activities by
employees

Daily

Komatsu Science andTechnology Collaboration
Council

Biannually

IR Meetings

Japan: Daily
USA and Europe:
Annually

SRI Surveys

Daily

2 times a year, heldin Japan
Shareholders Meetings(held online since
FY2020)dozen
Plant tours and explanation of Plant tours for shareholders Abouttimes
ayear inoperations
Japan
CEO and CFO explanation ofbusiness performance,
policies and strategies

11

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Communication with shareholders and investors
Operating within our commitment to high managerial transparency, Komatsu discloses information in aproper and timely manner through interactive dialogue and constructive approaches to investor relations on
a global scale.

1. Activities for corporate investors and securities analysts
On the same day that quarterly business results are announced, the company holds explanatory sessions forcorporate investors and securities analysts (we also release this information on our website). Overseas, we
provide institutional investors, primarily those in North America, Europe, and Asia, with explanations about
our business performance and other information by sending representatives or holding online meetings.

2. Informational meeting for individual shareholders
Komatsu periodically holds shareholders’ meetings to explain the current status and future prospects of theKomatsu Group and the progress of the mid-term management plan to our shareholders. Since its inception
in 1997, we have held 53 shareholder meetings, attended by about 17,000 shareholders in total. In FY2022,
we held a face-to-face meeting in Tokushima City in August for the first time in three years, as such meetings
had been postponed due to COVID-19, as well as an online meeting in December. Senior management
provided an overview of the company’s business and engaged in communication with shareholders. We havereceived many questions from shareholders regarding the development status of electrified construction
machinery towards carbon neutrality, the impact of soaring raw material costs, supply chain disruptions, theeffect of yen depreciation on our business performance, and our efforts to develop human resources forsustainable growth.

Shareholders’ meeting held in Tokushima City

Online shareholder meeting

12

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

3. Plant tours for individual shareholders
Komatsu holds plant tours for individual shareholders and Techno Center tours for children to deepen theirunderstanding of our business activities. The tours were held for a total of 16 days at the Awazu Plant(Ishikawa Prefecture), Osaka Plant (Osaka Prefecture), Ibaraki Plant (Ibaraki Prefecture), Oyama Plant(Tochigi Prefecture), and Techno Center (Shizuoka Prefecture).

Tour held at Awazu Plant

Tour held at Ibaraki Plant

Tour held at Techno Center

4. Meetings for individual investors
Komatsu holds meetings for individual investors to explain the current
status and future prospects of the Komatsu Group and the progress ofthe mid-term management plan. In FY2022, we had five online meetings
for individual investors.
A shot from an online meeting forindividual investors

13

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planetSocialData

contribution
activities

Index

DATA

Major IR activities in FY2022
Financial results
briefing
Small meetings

For corporate investors
and securities analysts

Venue / Number of
events held
４
７

Theme
1. Growth strategy of
１ Gigaphoton
2. Komatsu's efforts topromote sustainability
Ibaraki Plant: 1
Awazu Plant: 1
Asia: 1
Of which, one was held
North America: 3
online in Asia and one inEurope: 2
EuropeBusiness and ESG
briefing
Plant tours
Overseas IR
Respond tointerviews
Shareholder
meeting

For individual investors
and shareholders

Plant tours
Meeting forindividual
investors:

Reference information:
Number of participants, etc.

293
Tokushima City,
Tokushima Prefecture: 1
Online: 1
Awazu Plant: 4
Osaka Plant: 4
Ibaraki Plant: 4
Oyama/Tochigi Plant: 2
Techno Center: 2298 people in total
595 people in total

or on demand by
Online: 5 Viewedalive
total of 9,053 people

Documents and other materials used in the meetings can be viewed on the following site. (Available
only in Japanese)
The events are held only in Japan.
Website "Investor relations"

14

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Communication with employees
Within Komatsu, the President convenes a “Meeting with the President” periodically at each business site inJapan. At these meetings, the president directly explains the business environment and related issues, andalso takes part in a Q&A session held for employees and upper management. These meetings held at ourheadquarters in Tokyo are simultaneously streamed online over other business units in Japan and are alsotranslated into English for sharing among the Komatsu Group employees around the world.
In addition to these measures, we launched an intranet bulletin board, entitled “Virtual Office of President,”in January 2014 to share the questions and answers exchanged during the meeting with the President with
employees around the world. The site is updated every other week with new questions, and as of March 31,
2023, a cumulative total of 387 questions on specific topics, along with the president's answers, explanations
and messages to employees, have been published in Japanese and English.

“Virtual office of President”heonintranett

Employee meeting held at the head officeCommunication with local communities (efforts in Japan)
We regularly hold "Plant Fairs" to deepen understanding of our business activities among local residents andfamily members of employees. In FY2022, the events were held at six plants, mainly for employees and theirfamily members, and were attended by about 23,000 people.
The Kanazawa Plant held the "Kanazawa Plant Festa" in collaboration with "Port Festa Kanazawa 2022" atthe Kanazawa Port, offering test rides of wheel loaders and mini hydraulic excavators, as well as tours of theassembly plant for large hydraulic excavators and press machines. The event was attended by the Governorof Ishikawa Prefecture and the Mayor and Deputy Mayor of Kanazawa City, allowing for a lively event.
Date

Plant

July 16

Kanazawa Plant

October 16

Shonan Plant

October 30

Awazu Plant

Number of visitors (approx.)
Local residents*, employees and theirfamilies, totaling 10,000 people
Employees and their families, totaling
200 people
Employees and their families, totaling
4,200 people

15

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With business

Date

Plant

November 12

Oyama/Tochigi Plant

November 13

Osaka Plant

December 18

Ibaraki Plant

With the planet

Data

Socialcontribution
activities

Index

Number of visitors (approx.)
Employees and their families, totaling
4,000 people
Employees and their families, totaling
2,000 people
Business partners, employees and theirfamilies, totaling 2,500 people* Held as part of "Port Festa Kanazawa 2022" at Kanazawa Port16

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Major achievements
Sustainability policy and KPls of New Mid-term Management Plan
Based on its Sustainability Policy, Komatsu seeks to contribute to society through its business.
The new Mid-term management plan calls on us to generate a positive cycle for resolving environmental,social, and governance (ESG) issues and improving earnings to achieve sustainable growth. Measuresprescribed to this end include reducing environment impacts to combat climate change; providing safe,
high-quality, high-performance products, services, and solutions; and promoting diversity, equity, andinclusion. Moreover, key performance indicators (KPls) have been defined to guide efforts for resolving ESG
issues through growth strategies, and progress toward accomplishing the targets for these KPls will be
disclosed through the Company's integrated reports. Moreover, we have clarified the relationships between
our defined material issues, KPls, and highly relevant targets of the United Nations Sustainable Development
Goals (SDGs).

elpoep htiW

Sustainability Policy

Materiality
Occupational safety and health andwell-being
Employee engagement and job
Employees satisfaction
Diversity and Inclusion
Skills development
Human Respect for human rights
RightsWe provide an environment where diverse and global
employees can work safely and healthily as one team,with respect for each individual, and with satisfaction
and pride.
We nurture employees who can take on challenges atvarious job sites and in different regions, create newvalue together with customers, and contribute to therealization of a sustainable society.
As the Komatsu Group, we shall respect human rights
related to all of our business activities.

Materiality Key activity themes

No.

KPI

1

Frequency rate of lostwork time accidents（per 1 million hours）

Employees
Occupational safety and health and well-being
Build workplaces thatare safe and secure

FY2024 Targets

Employee engagement and job satisfaction

Increase employee
engagement

2

Engagement survey
scores17

SDGs

FY2022 KPI Performance

Ongoing decrease fromthree-year averagefrequency rate of 0.65 from 0.80
period of previous mid-term
management plan
(Performance disclosed)
1. Domestic score :75 or more (69 inFY2021)
2. Global score :85 or more (79 inFY2021)
Notes: 1. Score represents rate offavorable responses.
2. Global engagement
surveys are conducted
once every two years(next survey to be
conducted in FY2023).

Implementation of action
plan based on FY2021
survey results

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

Materiality Key activity themes

Diversity and Inclusion

Promote diversity andinclusion

With business

No.

3

4
Skills development
5

Develop individuals'
skills and achievebusiness growth

67

Human Rights
Respect for human rights

Promote human rights
due diligence

8With the planet

KPI

Data

FY2024 Targets

Indicators related tofemale employees
1. Ratio of full-time
female employees(consolidated)
2. Ratio of female
managers(consolidated)
Ratio of employees withdisabilities(surpassing legally
mandated rate)

Socialcontribution
activities

Index

FY2022 KPI Performance

1. 17.0% or more
14.1%(on March 31,(13.9% on March 31, 2022) 1.2023)
2. 10.3%(on March
2. 13.0% or more
31,
2023)
(10.0% on March 31, 2022)
2.5% or more (domestic,
single fiscal year basis,
legally mandated level of
2.3%)

2.42%

Increased succession
Definition of global key
planning for senior
and formulation
management positions at positions
ofsuccessionplans
overseas Group companies
1.Digital
Three-year aggregatetransformation:
numbers of training
5,341 for entry level* , 44
recipientsfor practical
Development of human 1. Digital
2.AI:
resources with digitaltransformation :30 for entry level, 10 fortransformation and Al
900 for entry level, 180 for practicalskillspractical
Notes: * Entry level digital
2. Al :
transformation course
90 for entry level, 30 for
administered to wider
range of employees via
practical
Succession plans

Cultivation of Smart
Construction consultants 1,000 (aggregate)

1.lnternal
2.Procurement supply
chain
3.Sales

Human rights due
diligence activities

18

video lectures867

1. Internal:
survey targeting all Group
companies
2. Procurement
supply chain:
Online survey targeting
major suppliers
3. Sales:On-site impact
assessment in South
AfricaESG Databook 2023

ssenisub htiW

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Sustainability Policy
Materiality
We contribute to society through our business activities
Product safety and quality
by providing our customers with safe and highly
productive products, services, and solutions that realize Customers Provision of solutions
sustainable infrastructure development, resource
development, and a recycling-oriented society.
Ethics /We build relationships with our business partners andlocal communities that enable mutual trust, fairness, co- Governance Governance / Complianceexistence, and co-prosperity.
We comply with the rules of society, including laws andregulations, and strive to respond sincerely to theto localrequests and expectations of all stakeholders, including Communities Contributions
communities
society.

Materiality Key activity themes

Customers
Product safety and quality
Provision of solutions
Enhancement of
product safety

No.

9
10

Improve productivity of
construction
11
workplaces bypromoting Smart
Construction
12
13
14
Provision of products
and solutions thatenable sustainable
resource development(mining equipment)

15

16

KPI

FY2024 Targets

Index

SDGs

FY2022 KPI Performance

Development of safety
devices and expansion of Expansion of range ofCompletion of introduction
range of marketedmarketedmodelsequippedin three small sized wheel
models equipped with with safety devices
loader models
safety devices(KomVision, etc.)
Overseas sales of ICT2,700 units (single year)
2,448
intensive models
Number of workplaces 13,000 workplaces (single
8,955
using Smart Construction year)(global total)
Ratio of workplaces using
Enhancement andSmart Construction that
optimization of processes employ Solution Level 3 or 20%
higher: 15%(single year)
units (aggregate,
Aggregate number of AHS 790
upwardrevision from prior 643
units deployedtarget of 740 units)
Completion of phase 1
andOptimization of mining Introduction
development andpromotion of open
operationscommencement of trials at
technology platforms
customer workplaces
Load haul dump
machines: Completion ofdevelopment of one
model
Expansion of productMechanical cutters:
Augmentation of hard lineup and execution ofAdvancement of trials atrock mining producttrials including those forworkplaces andlineupnew methods (mechanical customer
launchtargetingspecific
cutting)
customers
Mining Tunnel Boring
Machine: Production of
trial units underway
Expansion of hard rock Net sales: US$ 300 million Net sales: US$100 million
mining business(threefold increase)19

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

Materiality Key activity themes

With businessNo.

Solutions for improving
safety and productivity
at customer workplaces 17(automation,
autonomous operation,
remote operation)

Building of value chain
adaptable toenvironmental anddemand changes

18
19

Ethics / Governance
Governance / Compliance

Strengthen governanceand ensure thorough 20
complianceWith the planet

Data

21

Index

activities

KPI

FY2024 Targets

Development of
automated construction
and mining equipment

Expansion of number ofmarketed models(including new
developments)

Expansion of aftermarket
business(pursuit of businessgrowth and response tovolatility)
Multi-sourcing ratio(Implementation ofbusiness continuity
measures across supply
chain)

Sales growth rate: 15%(compared with FY2021,
foreign exchange rates
fixed)FY2022 KPI Performance
Hydraulic excavators:
Tests conducted on
equipment jointly
developed withcustomers
Mining bulldozers:
Remote controls trials at
customer workplacescompleted, automatedoperation trials
underway
Sales growth rate: 13.5%(compared with FY2021,
foreign exchange rates
fixed)

92% (82% in FY2021)

85%

Disclosure of initiative
results

Enhancement of
disclosure based onJapan's Corporate
Governance Code（business portfolio, skill
matrixGlobal e-learning
program on Komatsu’sWorldwide Code ofBusiness Conduct(conducted in 12
languages )Disclosure of activity
results

Continuation of demining
project
Provision of ￥30million
in relief support following
earthquake in Turkey and
Syria
Continuation of forest
restoration projects atformer mine sites inNorth America
Ongoing provision of
support for regional
human resource
development programswith Cummins Inc. (Chile,Peru, South Africa, andAustralia)

Enhancement ofgovernance andentrenchment ofcompliance

Communities
Contributions to local communities

Contributions tocommunities throughbusiness and disaster
relief support

Socialcontribution

Ongoing social
contribution activities

20

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Sustainability Policy

Socialcontribution
activities

Index

Materiality

SDGs

tenalp eht htiW

Reduction of energy usage and
GHG emissions
Through all of our business activities, we strive to reduce
Development of low-carbon / lowour environmental impact and preserve the global
emissions products, solutions,environment through the use of advanced technologies.
and business models
We strive to increase both global environmental
Environment
conservation and business growth throughmanufacturing and technological innovation.
Forest conservation throughWe pursue collaboration and value creation with ourbusiness activities
stakeholders toward a sustainable planet and future.
Resource recycling andremanufacturing
Materiality Key activity themes

No.

KPI

FY2024 Targets

FY2022 KPI Performance

Environment
Development of low-carbon/low-emissions products, solutions, and business models
2 emissions from
45% reduction (compared 43％ reduction
22 CO
production
with FY2010)
Plants with zeroenvironmental impacts 23
24

Water consumption

70% reduction (compared 69％ reduction
with FY2010)

Rate of renewable energy 20%
use

17％

Resource recycling and remanufacturing
CO2 emissions from product 24% reduction (compared 21％ reduction
25 usewith FY2010)
Reduction of CO2
Launch of one model
emissions at customer
Electrification of
Expansion of models inworkplacesof
26 construction and mining development phase and on Completion
developmentof oneequipment
marketmodel
Reduction of energy usage and GHG emissions27

1. Sales growth rate : 50%(compared with FY2021, １．Sales growth rate:
Growth of forestry
foreign exchange rates 22.1％（compared withmachine businessfixed)
foreign exchange(process mechanization) 2. Number of tree planting FY2021,
rates
fixed)
2. 5 units
machines introduced : 30
(single year)

28

Promotion of forest
management solutions(Development of business Forest area : 60,000ha
model combining forestry
and decarbonization)

Provision of solutions
that support
sustainable, cyclic
forestry businesses

Forest conservation through business activities
Promotion of recycling- 29
oriented business

Expansion of Remanbusiness
21

Sales growth rate: 25%(compared with FY2021,
foreign exchange rates
fixed)

Completion of remotecontrol sensing solution
proof of concept test andselection of partners
Sales growth rate: 16.5%(compared with FY2021,
foreign exchange rates
fixed)ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

External recognition

With businessWith the planet

Data

Socialcontribution
activities

Index(as of August, 2023)(1) External recognitions for CSR activities (Recognitions for SRI)
[Global][CDP]An NPO that was established in the United Kingdom in 2000 and engages in thesurveying and global disclosure of corporate initiatives with respect to carbon
dioxide emissions and climate change, while simultaneously analyzing andevaluating the surveyed details. In 2016, it started to run a system aimed atselecting A-list companies, or companies recognized by the organization as
global leaders in terms of the implementation of action on climate change.
One of the ESG management goals set by Komatsu in “DANTOTSU Value FORWARD Together for Sustainable Growth,” the new Mid-Term Management
Plan that has been carried out since fiscal 2019, is to be selected as an A-list
company in reference to CDP’s areas of focus—climate change and water.
[Trends in the selection of the company over the last three years]
2020
2021
2022
CDP Climate Change
A
AA
CDP Water Security
A
A
A[Dow Jones Sustainability Indices (DJSI)]
The sustainability indices were provided by U.S.-based S&P Global Inc. They
analyze and evaluate corporate sustainability from the three perspectives of thegovernance & economic, the environment and the society to select high-ranking
companies in each industrial sector.
One of the ESG management goals set by Komatsu in “DANTOTSU Value FORWARD Together for Sustainable Growth,” the new Mid-Term Management
Plan that has been carried out since fiscal 2019, is to be included in DJSI World.
[Trends in the selection of the Company over the last three years]
Komatsu has been selected as a component of the “World Index” forconsecutive years since 2006.
2020
2021
2022
DJSI
DJSI WorldDJSI WorldDJSI World

22

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index[MSCI global sustainability indexes*]
The Socially Responsible Investment indexes were developed by U.S.-based
MSCI (Morgan Stanley Capital International), Inc.
[Trends in the selection of the company over the last three years]
Komatsu has been selected for consecutive years.
[ISS-Oekom]
The corporate sustainability rating indexes were developed by German-based
ISS-Oekom.
[Trends in the selection of the company over the last three years]
Komatsu has been consecutively awarded "Prime" status in the machinery
sector.
[EURONEXT VigeoEIRIS]
V.E, an affiliate of Moody’s, is a global leader in ESG assessments, data, research
and analytics.
[Trends in the selection of the company over the last three years]
Komatsu has been selected for consecutive years.

[Japan][FTSE Blossom Japan index]
The index, which was established by U.K.-based FTSE Russell, selects Japanesecompanies that implement excellent programs to facilitate ESG.
[Trends in the selection of the company over the last three years]
Komatsu has been selected for consecutive years.
* FTSE Russell confirms that Komatsu has been independently assessed according to the index criteria, and has satisfied the requirements to become a constituent of
the FTSE Blossom Japan Index. Created by the global index and data provider FTSE Russell, the FTSE Blossom Japan Index is designed to measure the performance ofcompanies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE Blossom Japan Index is used by a wide variety of market
participants to create and assess responsible investment funds and other products.

[MSCI Japan ESG select leaders index*]
The index is part of those established by U.S.-based MSCI Inc., aimed atselecting listed Japanese companies with high ESG ratings.
[Trends in the selection of the company over the last three years]
Komatsu has been selected for consecutive years.

23

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index[MSCI Japan empowering women index*]
The index is part of those established by U.S.-based MSCI Inc., aimed at selecting
listed Japanese companies that promote a high level of gender diversity.
[Trends in the selection of the company over the last three years]
Komatsu has been selected for consecutive years.
* THE INCLUSION OF KOMATSU LTD IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HERIN, DO NOT CONSTITUTE ASPONSORSHIP, ENDORSEMENT OR PROMOTION OF KOMATSU LTD BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI.
MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

[S&P/JPX carbon efficient index]
The index is offered by S&P Dow Jones Indices and the Tokyo Stock Exchange
for member companies in the Tokyo Stock Price Index (TOPIX). It decides on theinvestment weights to be applied to such member companies with a focus on
the disclosure of environmental information and level of carbon efficiency(carbon emissions per sales).
[Trends in the selection of the company over the last three years]
Komatsu has been selected as index component for consecutive years.
[iSTOXX MUTB Japan Platinum Career 150 Index]
The index was jointly developed by Mitsubishi UFJ Trust and Banking
Corporation and STOXX, a global index provider of the Deutsche Boerse Group. It
consists of 150 Japanese companies that are active in building careers for theiremployees.

[Certifications][SBT]
SBT (Science based targets, namely, science-based emission reduction targets)is an initiative advocated by the CDP, the United Nations Global Compact, theWorld Wildlife Fund and the World Resources Institute. It certifies companies
that have established reduction targets compatible with scientific knowledge
aiming to achieve the target established under the Paris Agreement of keeping
the average rise in global temperature due to climate change below two degrees
from the pre-Industrial Revolution levels in the worst-case scenario.
Komatsu’s CO2 reduction targets were certified as SBT in April 2017.
Please click here for further details about Komatsu's CO2 reduction and SBT.

24

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index[DX Platinum Companies 2023-2025]
The Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange(TSE) select certain companies listed on TSE as “Digital Transformation (DX)
Stocks Selection” for their accomplishments achieved by creating internal
systems for promoting digital transformation (DX)* and excellent use of digitaltechnologies leading to the enhancement of corporate value.
In FY2023, the company was selected as one of the newly established "DX
Platinum Companies 2023-2025" as "a company that has continued to makeparticularly outstanding efforts since the program's inception."* Digital transformation: A company establishing a competitive advantage by utilizing data and digitaltechnology in response to intense changes in the business environment to transform products services andbusiness models based on the needs of customers and society, and transform operations themselves,organizations, processes and corporate culture.

[Nadeshiko Brand]
Nadeshiko Brand is selected and publicized by the Ministry of Economy, Tradeand Industry and the Tokyo Stock Exchange jointly. The purpose of the programis to promote investment in companies and accelerate their efforts by selecting
companies that are outstanding in terms of encouraging women's success in theworkplace and introducing them as attractive stock for investors who place
importance on mid- and long-term improvement of corporate value.

[EcoVadis]
EcoVadis, a French company, evaluates the sustainability of global suppliercompanies from four perspectives: environment, labor & human rights, ethics,
and Sustainable Procurement impacts.
Komatsu has achieved the "Silver" rating in the latest survey.

(2) Recognitions of IR activities[Excellent Disclosure Companies by The Securities Analysts Association ofJapan]
Securities analysts developed objective evaluation criteria to decide on the
ranking of companies in terms of its quality, quantity, timing and other factors ofcorporate disclosures, and based on which established the Award for Excellencein Corporate Disclosure from the Securities Analysts program. The program has
been implemented since 1955.
Komatsu received the 2022 Award for Excellence in Corporate Disclosure (firstplace in the machinery section).
The award is given every other year and this is the 13th time Komatsu hasreceived the award.

25

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index[2020 best IR award]
The Japan Investor Relations Association selects member companies that haveconducted excellent IR activities and provides them with the Best IR Awards. In
addition, it gives the IR Grand Prix Award to companies that have received theBest IR Award for the third time.
In 2020, Komatsu received the Best IR Award.
This is the seventh time it has received the award, in addition to 2007, 2008,2010, 2013, 2016 and 2017. Also we have received the IR Grand Prix Award twice
in 2010 and 2017.
[Tokyo Stock Exchange (TSE) “the corporate value improvement award”
grand prix]
TSE created the Award program in FY2012, designed to annually award thecompanies which have achieved high corporate value by practicing
management of improving corporate value through initiatives that consider
capital cost and other investor concerns.
Komatsu was selected for the Grand Prix award of the 8th Corporate Value
Improvement Award (FY2019) from all listed companies (about 3,650).

(3) Endorsement of initiatives[UN Global Compact]
The Global Compact, which is an initiative advocated at the World Economic
Forum in 1999, requests that companies comply with and practice 10 principles
with respect to human rights, labor, the environment and anti-corruption.
Komatsu expressed its support for the United Nations Global Compact inNovember 2008.
[WBCSD]
The World Business Council for Sustainable Development (WBCSD), whose
members include more than 200 companies worldwide, is an organization thatcreates surveys and proposals on the economy, the environment and society
with a focus on sustainable development. In addition, it works actively to
implement SDGs.
Komatsu decided to support WBCSD in 2010 and has been cooperating in its
activities.
[TCFD]The Task Force on Climate-Related Financial Disclosures (TCFD), which is an
initiative established by the Financial Stability Board in June 2017, requests thatcompanies disclose climate-related information that may affect financial
matters from the four perspectives of governance, strategy, risk management
and metrics/targets.
Komatsu expressed its support for TCFD in April 2019 and has been preparing
information disclosures in compliance with the request.

26

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Comparison with global principles
What Komatsu considers to be material issues are listed in our CSR Priorities, each of which are in line withinternational standards such as the ISO26000 and the United Nations Global Compact.
Details on these standards can be found in “Komatsu's Worldwide Code of Business Conduct” and the “CSR
Procurement Guidelines,”.
ISO26000 core UNGC 10
subjects
principles/issues

Komatsu's materiality

Organizational
governance[Ethics / Governance]
Corporate GovernanceCompliance

Human
Human rights Rights
Principle 1
Principle 2[Human rights]
Respect for human rights[Communities]
Contributions to local
communities

LabourPrinciple 3
Principle 4
Principle 5
Principle 6[Employees]
Diversity and Inclusion
Skills development andworkplace retention
Employee engagement andjob satisfaction
Occupational safety andhealth and wellbeing[Human rights]
Respect for human rights

Labourpractices27

Incorporation into Komatsu's internal
guidelines■: Items of Komatsu's worldwide codeof business conduct●: Items of Komatsu group CSR
procurement guidelines■●“Quality and Reliability” oforganizational structure, business
operations, employees andmanagement■●Emphasis on corporate
governance■●Compliance with the Rules
Respect for human rights■●Due consideration to work-lifebalance■●Conversations or discussions with
employees or their representatives■●Zero tolerance for child labor andforced labor■●Promotion of equal opportunities
for employment, with zerotolerance for discrimination andany kind of harassment■●Ensuring a safe and comfortable
work environment■●Human resources management infair and impartial manner■●

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Incorporation into Komatsu's internal
guidelines
ISO26000 core UNGC 10■: Items of Komatsu's worldwide code
subjects
Komatsu's materiality
principles
of business conduct/issues●: Items of Komatsu group CSR
procurement guidelines■●Providing products, services and[Environment]
systems that are environmentallyDevelopment of lowconscious
carbon/low-emissions■●Environmental protection
products, solutions and■Komatsu Earth Environmental
Environment business models
The
Principle 7
Charter
Resource
recyclingandenvironment Principle 8■Declaration of Conservation ofremanufacturing
Principle 9
Biodiversity
Forest conservation throughbusiness activities●Reducing environmental impact,
managing chemical substances
Reduction of energy usage
and building up environmental
and GHG emissions
management systems■●Fair and appropriate business
operations●Fair and proper relationship with
[Ethics / Governance]
Antigovernmental bodies and agencies
Fair operating Corruption Governancepractices■●Never providing, offering or
Principle 10 Compliancepromising inappropriate money,
goods or favors

Consumerissues[Customers]
Provision of solutions
Product safety and quality[Environment]
Development of lowcarbon/low-emissions
products, solutions andbusiness models
Resource recycling andremanufacturing
Forest conservation throughbusiness activities
Reduction of energy usage
and GHG emissions

28

Providing customers with suitable
solutions and striving to deliverproducts, services and systems
that are safe, environmentallyconscious and innovative■●Environmental protection■●Reducing environmental impact,
managing chemical substancesand building up environmental
management systems■

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

ISO26000 core UNGC 10
subjects
principles/issues

Community
involvement
anddevelopment

With businessWith the planet

Komatsu's materiality[Communities]
Contributions to local
communities

29

Data

Socialcontribution
activities

Index

Incorporation into Komatsu's internal
guidelines■: Items of Komatsu's worldwide codeof business conduct●: Items of Komatsu group CSR
procurement guidelines■●To fully understand its social
responsibilities as a corporate
citizen■Groupwide social contribution (5Basic Principles for Social
Contribution)■●Good harmony with local
communities

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Green bond
Komatsu issued a “green bond”, an unsecured straight bond, through a public offering on the Japanesemarket. Green bonds are designed to raise funds for exclusive use in business which works to help solve
environmental problems.
Under the three-year mid-term management plan, “DANTOTSU Value – Together, to “The Next” forsustainable growth” to be completed in the fiscal year ending March 31, 2025, Komatsu is making efforts forsustainable growth through a positive cycle of improving earnings and solving ESG issues.
With the proceeds from the green bond, Komatsu is going to further accelerate its efforts to help realize adecarbonized society by reducing our environmental impact and providing high-quality, highly efficient
products, services, and solutions.

Outline of the green bondIssuerPricing dateIssue date
Maturity
Issue amountInterest rate

Use of proceeds

Komatsu Ltd.
July 10, 2020
July 16, 2020
5 years
JPY10.0 billion
0.130%
Applicable to the following projects:
Project A: Responses to environmental problems resulting from the use of
products
Efforts designed to help reduce CO2 emissions from products in use to 50% by
2030 from 2010 (Specifically, R&D, the provision and wide use of products,
services and solutions).
1) Products: hybrid hydraulic excavators, (applicable for low carbon-type
construction equipment certification by Japan's Ministry of Land,
Infrastructure, Transport and Tourism) and electric construction equipment.
2) Service: Support for fuel-economy machine operation by using IoT.
3) Solutions: Reduction of CO2 emissions by promoting wide use of ICTintensive construction equipment and providing applications which support
optimization of construction as a whole.

30

ESG Databook 2023

Sustainability policy

Management ofsustainability

Use of proceeds

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Project B: Responses to environmental problems resulting frommanufacturing.
Efforts designed to help reduce CO2 emissions in manufacturing to 50% andincrease the ratio of using renewal energy to 50% of total energy use, both by2030 from 2010 (capital investment in facilities and equipment, etc.).
(1) Energy-savings of factories and equipment in plants.
(2) Power generation by using solar panels and biomass as well as purchase ofrenewable energies.
Nomura Securities Co.,Ltd.

Lead manager
Green bond structuring Nomura Securities Co.,Ltd.
agent*
Rating"AA-" from Rating and Investment Information, Inc.
[Reference]Press release (Komatsu website released on July 10th, 2020)* This organization supports the issuance of green bonds by giving advice regarding the formulation of green bond frameworks and on
obtaining second-party opinions.

Komatsu's green bond frameworks（216KB）

Second-party opinion of green bond eligibility
With respect to eligibility against the 2018 Green Bond Principles and the Green Bond Guidelines, 2020,
Komatsu has obtained a second-party opinion from DNV GL BUSINESS ASSURANCE JAPAN K.K. (hereafter“DNV GL”), an internationally recognized third-party organization with expertise in this field.
Second-party opinion（956KB）
The cost of obtaining an independent assessment related to the green bond is subsidized by Japan’s Ministryof the Environment in its 2020 assistance project to promote the issuance of green bonds.

31

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

List of investors who expressed their intention to invest
Asset Management One Co., Ltd.
OMUTA YANAGAWA SHINKIN BANKThe Kita Osaka Shinkin Bank
The 77 Bank, Ltd.
THE JUROKU BANK,LTD
SUMITOMO LIFE INSURANCE COMPANY
Zentouei Shinyokumiai
Daitokyo Shinkumi Credit Cooperative
NAGANO SHINKIN BANKThe Bank of Nagoya, Ltd.
Nippon Life Insurance Company
THE HIGASHI‐NIPPON BANK,LIMITED
Hiratsuka SHINKIN BANK
Fukushima Shinkin Bank
Sumitomo Mitsui Trust Asset Management Co., Ltd.

Reporting
Komatsu reports on the allocation and environmental and social impacts of the proceeds on an annual basis.
In addition, the external review is attached.
[Green bond reporting]
Komatsu green bond reporting 2021（260KB）
Komatsu green bond reporting 2022（251KB）[Green bond periodic review]
Green bond periodic review 2021（960KB）
Green bond periodic review 2022（530KB）

32

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Sustainability-linked bond
Komatsu issued Sustainability-Linked Bonds (USD-Denominated Senior Unsecured Straight
Bonds) (hereafter “SLBs”) .
SLBs are bonds the terms and condition of which are subject to changes depending on the achievement
status of the KPIs(*1) predetermined by the issuer.
Under Komatsu’s three-year mid-term management plan to be completed in the fiscal year ending March 31,
2025, “DANTOTSU Value - Together, to ‘The Next’ for sustainable growth”, Komatsu aims to create customer
value that will contribute to ESG solutions and earnings growth through its growth strategies and intends toaccelerate sustainability management targeting achievement of sustainable growth by this issuance of SLBs.
*1: KPI: Key performance indicators

Outline of the Bonds
Sustainability-Linked Bonds(USD Denominated Senior Unsecured Straight Bonds)
1. Issuer
Komatsu Finance America Inc.
2. Guarantor
Komatsu Ltd.
3. Issuance amountUSD 600 million
SPT1.1: 45% reduction of the Scope 1+2 CO2 emissions (Intensity) (KPI1) fromproduction by March 31, 2025 from 2010 baseline
4. KPI/SPT *2
SPT2.1: 24% reduction of the Scope 3 CO2 emissions (Intensity) (KPI2) from useof products by March 31, 2025 from 2010 baseline
5.499% per year during the period from and including October 6, 2022
until October 5, 2025
5. Interest rate
From and including October 6, 2025, the interest rate shall be increased by 10
bps if SPT 1.1 has not been satisfied and increased by 15 bps if SPT 2.1 has notbeen satisfied as of March 31, 2025
6. Interest payment date April 6 and October 6 every year from and including April 6, 2023
7. Term
5 years
8. Maturity date
October 6, 2027
9. Payment date
October 6, 2022
To be allocated for the redemption of outstanding bonds and general business
10. Use of proceeds
purposes33

ESG Databook 2023

Sustainability policy

Management ofsustainability

11. Offering method
12. Market
13. Credit RatingWith people

With businessWith the planet

Data

Socialcontribution
activities

Index

Offerings in overseas markets, primarily in the U.S., Europe and Asia
(In the U.S., however, sales are solely for Qualified Institutional Buyers inaccordance with Rule 144A under the U.S. Securities Act of 1933)
Singapore Exchange Securities Trading Limited
A2 (Moody’s)
A (S&P)*2 SPT:
Sustainability performance targets, which are measurable target figures of KPIs over the specific time period
as stated by the issuer
Komatsu Sustainability-Linked Bond Framework（1.78MB）

Second party opinion of Sustainability-Linked Bond eligibility
With respect to eligibility against the Sustainability-Linked Bond Principles 2020 and the SustainabilityLinked Bond Guidelines (2022), Komatsu has obtained a second party opinion from DNV Business Assurance
Japan K.K. , an internationally recognized third-party organization with expertise in this field.
Second party opinion（1.53MB）

34

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

With people
The Komatsu Way and policy on human resource
development

036

Promoting diversity and inclusion

045

Oﬀering of a variety of talent development
opportunities and improvement of employee
engagement057

Develop digital and open innovation promotion
human resources064

Occupational safety and health066

Human rights policy

076

Business and human rights

079

35

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

The Komatsu Way and policy on human resource
development
Komatsu regards human resources as one of the most important management resources for creating newvalue, and thus we are continuously investing in human resources. Specifically, we invest in human resources
through wages, allowances, bonuses, benefits, and the expansion of human resource development
programs. By continuously engaging in these activities, we aim to achieve sustainable growth anddevelopment for both the company and its employees, while also being aware of the changes in the internaland external environment and their connection with management policies.
In 2006, Komatsu formulated the Komatsu Way as a shared set of values for its employees worldwide topromote global development and sustainable growth. We are now working to disseminate the Komatsu Way
to employees of diverse cultures and customs. We are continuing our human resource development efforts
based on these activities.
In its mid-term management plan, Komatsu has set "enrich human resources base with diversity" as a key
part of its growth strategy and to achieve it the company is developing various measures that focus on the"enhancement of diversity and inclusion," "offering a variety of talent development opportunities andimprovement of employee engagement," and "human resources development for digital applications andopen-innovation.”

Promotion system for various policies and measures
The Komatsu Way Committee, chaired by the President, is held twice a year (or more as necessary) todeliberate, decide on, and promote the execution of policies and important measures regarding humanresources, labor affairs, education and human resources development, employee benefits, and occupationalsafety and health management for the Komatsu Group. Furthermore, the content of the deliberations of theKomatsu Way Committee is reported to the Board of Directors for consideration.

Global personnel policy
Komatsu Group companies have established a personnel management system that can be tailored to theunique needs and circumstances of each region based on the following basic policy, with the aim of realizing
an environment in which diverse human resources worldwide can contribute to business growth as a team.
1. We shall respect each employee’s human rights, personality, individuality and legally-protectedprivacy;
2. We shall respect diversity and treat and appraise each and every employee in a fair and impartial
manner. We shall not discriminate against any employee on the basis of race, ethnicity, color, sex,
sexual orientation, gender identity, age, religion, national ancestry, disability, marital status orother legally protected status. We shall vigorously promote equal opportunities for employment*;

36

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

3. We shall give due consideration to work-life balance and physical/mental health, and endeavor toprovide the employees with workplaces where they can effectively accomplish their tasks withsatisfaction and pride;
4. We will not tolerate inappropriate behavior and speech which prevents employees from working
effectively and comfortably. In particular, all Komatsu employees must not do any type ofharassment including harassment of subordinate personnel, sexual harassment, or harassment
related to pregnancy, childbirth, parenting, or nursing care, in and outside of workplace;
5. In designing and implementing Komatsu policies on employment conditions (such as wages,
fringe benefits, performance appraisal, promotions), we shall assure that such policies are, andare understood to be, fairly and clearly implemented. Such policies shall be accurately
communicated to employees and, to the extent practicable, made open and accessible;
6. We shall comply with all applicable laws and regulations governing employees’ rights andfaithfully accommodate, whenever applicable, conversations or discussions with employees ortheir representatives;
7. We shall not tolerate child labor or forced labor; and8. We shall offer terms and conditions of employment that are sufficiently competitive in theirrespective regions.
* "Any action violating human rights (harassment of subordinate personnel, sexual harassment or other harassment related topregnancy, childbirth, parenting or nursing care)" is specified as grounds for disciplinary action.

About the Komatsu Way
The Komatsu Way is a statement of values and standards that all workers at every level of the Komatsu Groupare expected to meet and uphold. The Komatsu Way is a written statement of our corporate strengths, beliefs
that support those strengths, the basic attitude of mind and perspective, and a manner of action (style),
which our predecessors created based on the founder’s spirit, throughout the history of our growth anddevelopment. We aim to spread this knowledge to all employees and maintain it into the future.

The Komatsu Way promotion activities
To disseminate and practice the Komatsu Way at all Komatsu Group companies around the world, we areconducting various promotion activities and human resource development programs. Employees’
understanding of the Komatsu Way is deepened via training sessions and the creation of opportunities for
exposition and group debates. We foster interpersonal communication between employees at such sessions
to minimize generational gaps, allowing for a more effective "trickle-down" spread of this knowledge. Since
2007, Komatsu has been engaged in brand management activities to "be indispensable to our customers andcontinue to be their partner of choice". This objective is accomplished by visiting customer workplaces tounderstand their ideals and to build relationships that enable us to work together with them to help achieve
their goals through concerted efforts by Komatsu Group and its distributors. In addition, the third edition of
the Komatsu Way has been translated into 13 languages so that employees can read and understand it intheir native languages. We have also considered the intrinsic differences between foreign cultures, and haveworked to craft the Komatsu Way in a manner that is both easy to understand and relevant to theinternational community at large. This allows us to promote the Komatsu Way in domestic and foreignsettings, allowing for uniformity across the group.
37

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

The Komatsu Way and Total Quality Management (TQM) training for FY2022 took place overseas, mainly inNorth America through online training under consideration of time differences. In Japan, in addition to grouptraining and online training, we are providing an e-learning program to enhance understanding in jobspecific training.
We will stay committed to the development of human resources and will strive to systematically ensure thespread of the KOMATSU Way and TQM so that they take root globally.
We believe that through these activities, we will be able to foster employees who practice the KOMATSU Way
and pass it on to the next generation, leading to the sustainable growth of the entire Komatsu Group.

Brand management initiatives

What are brand management initiatives?

Becoming invaluable to our customers, who both create and assess our corporate value
Komatsu embodies this concept in our statement "our corporate value is the total sum of trust given to us bysociety and all stakeholders." With this in mind, Komatsu's basic management policy is focused on increasing
our corporate value through customer engagement initiatives.
Having grouped our various stakeholders into two distinct categories, while the former is responsible for
employees, affiliate companies, sales / service shops, etc., the latter includes society, shareholders, investors,
media, etc. We have come to the conclusion that it is only our customers who take on both of these roles.
Customers create corporate value by purchasing our products, and assess our corporate value through theuse and evaluation of our products (which returns to us via feedback).
We have thus redefined the meaning of "heightening the trust placed in us from our customers", into acommitment to "increase the trust placed in us to a degree at which our company is indispensable to ourcustomers, in order to guarantee complete customer loyalty and retention". As of FY 2007, we have begun
initiatives designed to mold our brand into one that conceptualizes this vision.

Realizing our customers' vision and mission "from the customer's perspective"
Our brand management (BM) activities are built on the fundamental principle of "from the customer's
perspective". One of the most common misconceptions regarding marketing activities is that such initiatives
involve finding means to differentiate a product from the competition, or about finding a unique position
within the market. Komatsu believes, however, that the crux of marketing involves working from thecustomer's perspective, discovering what customers want and responding specifically to those needs.
To realize this grand vision, we are engaged in activities designed to create sustained development andrefinement in our management resources and capabilities. In the past, these initiatives tended to rely on
experience and intuition, but in the context of Komatsu's BM activities, we have replaced them with a variety
of tools and methods designed to develop case studies and accumulate validated experience that can bedisseminated to a new generation of employees.

38

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Recent activities and future plans
In addition to the initial activities in Japan, North America, Chile, South Africa and Australia, we have
expanded these activities to include China, Southeast Asia, Europe, South America, Oman, theCommonwealth of Independent States and the forestry businesses. In the process, we have incorporated theabove ideas into KOMATSU Way, which is a value that all KOMATSU Group employees should inherit
permanently in the field and workplace, compiling the "KOMATSU Way of Brand Management."
In FY 2021, the competition was held online due to the COVID-19 situation, with more members from all over
the world participating than in previous years.
Brand management activities that began with a focus on stakeholders by our marketing department have
expanded to a cumulative total of more than 150 users in 18 regions, and have developed into company-wide
activities that involve our production and development divisions. Owing to the positive strengthening effects
it has on our various departments and human resource development circles, Komatsu will continue topromote brand management activities for the foreseeable future.

Global BM workshop (Komatsu in Japan, October 2019)39

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

DATA(1) Educational training that pertains to Komatsu Way in FY2022
Name of training
courseCourseparticipants

Education for
management
Management
candidates ofcandidates ofoverseas subsidiaries overseas(Globalsubsidiaries
management seminar)

Targets

Number ofTraining dates participants/cases(in FY2022)(in FY2022)

To train global
management
candidates who
have aMarch 2023
comprehensive
understanding of
the Komatsu Way

9

Septemberand October
2022 (heldonline)57

Mid-level
managers of
To train up local
overseas
leaders who
subsidiaries
understand andexpected to betheresponsible for the practice
Komatsu Way
corebusiness/functions
Employees of
To promote
understanding
TQM beginner training overseas
subsidiaries with at our overseas
aptitudesubsidiaries
New employees, To promote theassistant
Training by job level managers, newly understanding
and practice of
appointed
the Komatsu Way
managers, etc.
To present
Selected from the improvement
as OJT
All Komatsu QC
Komatsu Group in activities
and strengthen
convention
Japan andawareness of theoverseas
Komatsu Way
practices
Education for midlevel managers ofoverseas subsidiaries(Komatsu Way
leadershipdevelopment
program)40

September 2022 24(held online)
Year round

1,229

94 presentations
35 from
November 2022 (including
overseas)(held group
Group: Approx. 300
and online)
Online: Approx.
7,000 access

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities(2) The Komatsu Way-history of dissemination activities

Other data on human resources(1) Number of employees (Non-consolidated basis)(2) Number of employees (Consolidated basis) (3) Average age(4) Years of continuous employment (5) Number of employees by age(6) Annual total remuneration (average)(7) New graduates employment (8) Mid-career employment (9) Employee turnover(10) Retention of new employees* Above data are on the non-consolidated basis except item (2).
Numbers of employees and all other numbers shown are as of the end of each fiscal year, except as otherwise noted.

(1) Number of employees (Non-consolidated basis)
Total

FY2020Male
FemaleFY2021

11,795
10,404
1,391

11,927
10,5171,410

FY2022

12,208
10,7601,448(2) Number of employees (Consolidated basis)
Total
Non-Japanese

FY2020

FY2021

61,564
41,57341

62,77442,502

FY202264,34344,040ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index(3) Average age
Total

FY2020Male
FemaleFY2021

39.8
39.8
39.2

40.4
40.5
39.7

FY2022

40.9
41.0
39.9

(4) Years of continuous employment
Total

FY2020Male
FemaleFY2021

15.3
15.6
12.8

15.9
16.3
13.5

FY2022

16.4
16.7
13.9

(5) Number of employees by age
Total

Total
Over 60
50-59
40-49
30-39
Under 30

Male

12,208
457
2,595
3,380
3,765
2,011

10,760
416
2,209
3,066
3,450
1,619

Female

1,448
41
386
314
315
392

(6) Annual total remuneration (average)
FY2022

Total
7,809,998(Yen)Male8,055,296(Yen)

Female6,166,302(Yen)* Minimum wages set by age* There are no wage rules or other institutional differences based on gender. The above gender differences are due to differences in laborcomposition, such as the percentage of women in management positions and job levels, and length of service.

42

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index(7) New graduates employment
Total

FY2021
FY2022
FY2023

Employment category
High-school
Junior college
Excluding College graduate
graduate
graduate
blue-collar
work
Male Female
Male Female
Male Female
254
180 157 135
22 16 14
2 81 6219254
169 155 104
51 11
92 88 7315
290
192 161 109
52 15 123 114 88
26

* Number for FY2023 is as of April 1, 2023

(8) Mid-career employment (As of July 20th, 2023)
Total

FY2020
FY2021
FY2022Mid-career
employment ratio

Employment category
College graduate
OthersExcludingExcluding
Total blue-collar
blue-collar Total Male Female Total Male Female
work
work
57
31 14%
11％ 19 14
5 38 30824
23 9%
11％ 17 12
5 7 6
1
87
42 26%
20％ 40 32
8 47 443(9) Employee turnover
FY2019FY2020
FY2021
FY2022

Total
167(1.29%/0.99%)
147(1.08％/0.86％)
200(1.54％/1.31％)
200(1.53％/1.36％)

Male

135
122
160
163

Female

32
19
40
37

* The figures in parentheses in the table are (total turnover rate/voluntary turnover rate). The voluntary turnover rate does not include
those who retire at retirement age.
* Period covered: April to March of each fiscal year

43

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index(10) Retention of new employees
New employees(FY2020)
Enrollment (FY2023)
Employee turnover［for3 years］(Turnover rate)

Total

Male

Female

362

298

64

344

283

61

18
(5.0%)

15

3* Enrollment for FY2023 is as of April 1, 2023

44

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Promoting diversity and inclusion
In growth strategies of the mid-term management plan, Komatsu set "enrich human resources base withdiversity" as a priority activity, alongside promoting the "enhancement of diversity & inclusion" initiatives.
We believe it is possible to create an environment where diverse employees can benefit from identifying eachcolleague’s individuality and abilities. Doing so will enable teams to maximize each other’s abilities toachieve a collaborative atmosphere where everyone plays an active role in enhancing systems to support
diverse work styles and work-life balance. Ultimately, this will lead to the realization of a workplace where
employees can feel secure and be innovative as they make contributions to company growth, so we continue
to promote these initiatives.

Global human resource development and promotion
With foreign employees accounting for approximately 70% of our workforce, Komatsu has been promoting
the localization of management. Among them, we have appointed the heads of major overseas subsidiaries
as Global Officers, who are responsible not only as regional heads but also as executives of the KomatsuGroup. Plus, we have also appointed those employees tasked with facilitating the management of theKomatsu Group as executive officers. Komatsu has created approximately 750 "Global Key Positions" inJapan and overseas and developed a succession plan for these positions. We are also aiming to foster thesystematic cultivation of next-generation leaders who will be responsible for global management throughprograms such as the “Global Management Seminar” for management-level employees and candidates, and“KOMATSU Way Leadership Development Training” for mid-level employees.
Additionally, Komatsu trains engineers who provide continuous product support at customers’ sites aroundthe world. The Komatsu Philippines Corporation, a specialized educational institution, has trained over 200
engineers. Graduates of the training program, which lasts about six years, are subsequently employed as“global engineers” and work around the world.

Promoting gender diversity
As part of our gender diversity initiatives, we have set a global KPI (ratio of women employed: 17.0%; ratio of
women in management positions: 13.0% on a global consolidated basis by the end of FY2024) for our midterm management plan. Also, we are proactively recruiting women, providing training programs for theirsystematic development, creating favorable environments for continuous career development, and actively
supporting appointments to more responsible positions of high authority. As various measures to promote
the advancement of women will lead to the creation of environments where all employees can work
comfortably and feel empowered to maximize their abilities, we will continue to promote group-wide
activities.

45

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Status in FY2022
Our strategy also includes working on "D&I literacy improvement
activities" to foster employees' awareness, which incorporates the
conducting of promotional activities via the distribution of videos andcolumns on D&I. Additionally, to encourage female employees toimprove their career aspirations, a "D&I Talk Event" has been held since
FY2022, which allows for posing direct questions to management and,for the first time, has included interactions with the president andScene from the first D&I talk event
female executives. The event received high satisfaction ratings from
employees who benefitted from the opportunity to hear the thoughts
and encouragement of management as they considered their own
career pathways. We will continue to implement our existing measures
for female employees, which will include career plan training,
networking workshops, external training, and the Diversity & Inclusion
Development Seminar (DIDS: a seminar for female managers at
Komatsu and its overseas subsidiaries focused on developing female
executives capable of implementing managerial decisions rooted in the Scene of DIDS training
Komatsu Way, at the same time as promoting gender diversity among
future senior management). In recognition of these efforts, Komatsu
was selected as one of the Nadeshiko Brand for FY2022 by the Ministryof Economy, Trade and Industry in collaboration with the Tokyo Stock
Exchange – these organizations jointly select companies that excel inpromoting women's activities. (One company from each industry is
selected from approximately 3,700 listed companies of 17 industries.)

DATA(1) Diversity of management
Femaleemployees(Femaleemployees
percentage)
64

NonJapanese employees(NonJapanese employees
percentage)2
19(3.1%)(29.7%)

30

2(6.7%)

Total

Directors and Global
officers
Executive
officers(Domestic)

46

0(0.0%)

Mid-career
employees(Mid-career
employees
percentage)
14(21.9%)
2(6.7%)ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

1,854

Generalmanagers

403

Socialcontribution
activities

FemaleNonemployees Japanese employees(Female(Nonemployees Japanese employees
percentage)
percentage)149
13(8.0%)(0.7%)
120(3.0%)(0.0%)

Total
Management position

Data

Index

Mid-career
employees(Mid-career
employees
percentage)361(19.5%)
44(10.9%)* Komatsu’s non-consolidated data as of the end of each fiscal year.
* Directors and global officers exclude outside directors and outside auditors.
* Percentage of director and global officer posts filled by internal personnel: 100%
* Management positions include executive officers.

(2) Women employees
Global (Consolidated)
Ratio of women employed
Ratio of women in management
positions
Komatsu Ltd. (Non-consolidated)
Number (ratio) of women employed
Number (ratio) of women in
management positions
Number (ratio) of women managers
Number (ratio) of women juniormanagers

FY2020

FY2021

FY2022

13.6%

13.9%

14.1％

9.5%

10.0%

10.3％

1,443
（12.3%）
300（9.3%）
128（7.5％）
172（11.2％）

1,451（12.4％）
312（9.2%）
135（7.8％）
177（10.8%）

1,507（12.3％）
341（9.5％）
149（8.0％）
192（11.0％）* Data as of the end of each fiscal year.
* Management positions include executive officers.

47

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Support for LGBTQ
In "KOMATSU'S WORLDWIDE CODE OF BUSINESS CONDUCT" October
2017 revision, we stipulated the prohibition of unfair discrimination
against sexual minorities (not only nationality, race, religion, age, sex,
presence or absence of disability, but also sexual orientation and gender
identity) as sexual harassment including discriminatory remarks subject
to disciplinary action. In addition to implementing a number of
e-learning
initiatives – such as the setting up of an in-house counseling desk for
LGBTQ individuals, the certification of same-sex partnerships, and the
expansion of welfare benefits – we are also working to promote anunderstanding of LGBTQ issues and to create a comfortable work
environment for everyone that utilizes e-learning, online seminars for
managers, and the distribution of training videos to all employees.
LGBTQ video

Harassment prevention initiative
At Komatsu Group, we are committed to eliminating and preventing all forms of discrimination andharassment. Each of our business locations has a designated harassment consultation desk, and we haveestablished a system to promptly address issues as they arise. When consultations are received, we conduct
investigations with utmost respect for the privacy of the individual seeking guidance, implement any
necessary corrective measures, and take action to prevent recurrence, while also providing follow-up
support to the person who raised the concern. Additionally, we regularly conduct anti-discrimination andharassment prevention training for employees at all levels. This fosters a deeper understanding of
discrimination and harassment issues among our staff, encouraging empathy and consideration for eachother’s positions, and contributing to the creation of a safe and healthy work environment.

Facts about the initiative in FY2022
Number of harassment-related reports received (in Japan)

Anti-discrimination and harassment prevention training (inJapan)(e-learning and group learning)

48

40
Basic education
Stratified training
Managerial-level refresher training
New managerial-level employee
training
Assistant manager training
Third- and seventh-year employee
training
New employee training

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Employing persons with disabilities
Komatsu actively seeks to employ persons with disabilities across the Group. Our goal of a KPI in the midterm management plan is to achieve the employment ratio of 2.5% on a consolidated basis by 2024 for theGroup in Japan.
In March 2008, Komatsu established the Business Creation Center (BCC) within the Human Resources
Department in Japan as a dedicated organizational entity for promoting the hiring of persons withdisabilities. Persons with mental or developmental disabilities are employed by the BCC in eleven business
units in Japan. By having BCC perform previously outsourced operations and desk work, BCC can expand its
job scope and improve the efficiency of the company as a whole. Advisors are assigned to each business unit
to provide training and advice on daily tasks. Each BCC staff member meets with an advisor every six months
to discuss goals, instead of simply handling a delimited set of tasks. Linking salary to individual performanceassessments, we encourage employees with disabilities to work on their goals toward achieving
independence and self-reliance. Through these efforts Komatsu is not merely focused on achieving atargeted employment ratio. Rather, it is seeking to create a workplace that provides a sense of fulfillment for
all individuals, where employees with disabilities work alongside other staff members.

DATA
Employment ratio of
persons with disabilities
Number of BCC
locations
Number of BCC staff
members

FY2020

FY2021

FY2022

2.82％

2.84%

2.73%

11

11

11

144

156

165

* The data for Komatsu Ltd. (non-consolidated). As of June 1st of each fiscal year.

Promoting hiring of retired employees
As Japan’s birthrate declines and its population ages, we believe that efforts to improve employee
productivity across all generations and to strengthen our older workforce are not only a response to societal
realities but also a way to ensure our sustainable growth. Komatsu has been promoting initiatives to achieve
the above, including the introduction of a post-retirement reemployment system in 2006 and thereemployment of all applicants up to the age of 65 (for general employees) since 2013. In 2021, Komatsu
implemented an optional retirement age system for the entire Komatsu Group in Japan, which allows
employees to choose the maximum retirement age of 65. Moreover, Komatsu is expanding its support
framework to enable employees to continue to work at Komatsu and realize their optimal work styles basedon their values by providing training opportunities for employees to reflect on their career and life, a paid
leave system for skills development, and a financial aid system.

49

ESG Databook 2023

Management of

Sustainability policy

sustainability

With people

With businessWith the planetSocialData

contribution
activities

Index

Systems and measures of employment and career support for the elderly
Systems and Measures

Content
Employees can choose to retire at age 60, 62 (management), or 65
employees).
Selective Retirement System (general
Employees who choose to retire at age 62 or 65 receive the same benefits
as those who retire before age 60.
This system allows employees to work part-time when they choose to
retire at age 60 or 62 and are rehired after retirement.
Part-time Work System
Working hours can be set from 1/2 to 3/4 those of full-time employees andworking hours per day and working days per week can be decided.
Part-time employees who have been rehired after retirement can work a
Second Job Systemsecond job under certain conditions to support their careers.
(1) Career Life Plan SeminarAll employees aged 45 and older are encouraged to develop an
independent and autonomous career vision by considering their work
prospects, work style, lifestyle, and financial plan.
Career Support System(2) Outplacement Support System
A skills development leave system and outplacement services for
employees aged 50 and over who want to progress their careers outside
the company.

DATA
Reached age 60
Continued employment
after age 60
Chose to retire at age 62
or 65
Rehired after retirement
at age 60
Retired at age 60(Retirement rate at age 60)

FY2020201

FY2021252

FY2022

355

174

216

325

－

202

292

174

14

33

27
(13.4％)

36(14.3％)

30(8.5%)* Data for Komatsu Ltd. (non-consolidated).
* Selective retirement system applies to employees who reached the age of 60 in FY2021 or later.
* People rehired after retirement include those rehired within the Komatsu Group.

50

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Realization of diverse work styles
To support employees to pursue diverse work styles, we promote flexible and autonomous working that is
not restricted by location or time. This includes the expansion of the “telework system” in FY2020 to allow
employees to continue their careers and improve productivity and the abolition of core hours in the “flextime
system” in FY2021.

Main system and measure
Main System and Measures

Flextime system
Creation of Discretionary work
diverse work systemstylesTelework system

Content
Flexible work hours (5:00~22:00) with flexible start and end
times (no core time).
A work system for employees who engage in highly
discretionary work, such as R&D. Under this system,
employees can execute their work at their discretion.
Work from home as often as desired to support career
continuity and increased productivity. Telework allowance
paid.

Promotion of work-life balance and support for childcare, family care, andmedical treatment
Komatsu promotes work-life balance among its employees by reducing total working hours and establishingvarious support systems. To reduce working hours, Komatsu has worked with the labor union to set thetargets of “less than 2,100 working hours per year and at least 20 days of annual paid leave for all employees”
based on the 36 Agreement. Moreover in the development of our employee systems, we promote initiatives
to not only help employees achieve a work-life balance but also safe and healthy work styles, for example,
using the “Interval System” between workdays.
We have also expanded our safety net by providing more leave and leave of absence than legally required tocover childcare, family care, and personal injury or illness. Furthermore, we have implemented, a “Life
Support Leave” system that can be used for various life events in addition to annual paid leave. To
complement these efforts, we have implemented support measures to create an environment that allows
employees to use our systems and measures easily according to their circumstances.

51

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Main systems and programs
Systems and ProgramsChild-care leave

Part-time work
Child-caresystemPaternity leave

Content
Available for a maximum of three years from the birth of thechild to the time the child enters nursery school (the statutory
leave period is up to 18 months without pay). Also available fora maximum of three years for children up to the third grade ofelementary school in cases where a spouse is transferred, etc.
Paid leave is available until the child is 2 years old and can betaken in installments.
Shortening of working hours by a maximum of three hours per
day to allow for the care of children until the child graduatesfrom elementary school (statute allows this only for children
under three years old). Split-time acquisition is possible.
Up to 4 weeks (28 days) within 8 weeks after the birth of a childis available and can be taken in installments. Paid leave isavailable until the child is 2 years old.

Allowance toward the Allowance toward the cost of childcare for infants up to age
cost of using child-care two before entering nursery school (10,000 yen/month).
services
Five days for the nursing care of one child up to the third gradeof elementary school and ten days for the second child onward
Child-care leave(paid leave). (statute allows this only for children up to the first
grade of elementary school.)
A nursery school fee subsidy system, childcare services, andChildcare facilities and on-site day-care facilities are available. Additionally, healthallowance
management rooms located at each site offer private rooms forchildcare and multipurpose use such as freezing breast milk.
A maximum of three years is available for employees taking
Family-care leavecare of family members, which can be taken in installments.
programPaid leave is available for a total of 93 days. (the statutory leave
period is a total of 93 days without pay).
Family-care
Shortening of working hours by a maximum of three hours per
Part-time workday, which can be taken for up to three years in total and cansystembe taken in installments.
Five days per year for attending to one family member in need
Family-care leaveof nursing care, and ten days for the second family member
onward (paid leave).

52

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With business

Systems and Programs

Paid vacation

Life support leave

Other typesof leavesystemFlexible leave forrefreshment
Interval system
Volunteer incentive
programSpousal transfer
occupational leavesystemLeave for infertility
treatment

With the planet

Data

Socialcontribution
activities

Index

Content
Statutory annual paid leave is granted for 10 days per year if
the attendance rate is 80% or more at the end of the first 6
months of employment Komatsu grants 20 days per year fromthe time of joining the company (in principle). Leave can betaken in half-day increments.
Can be used as sick leave, pregnancy leave, child-care leave orfor care of family members. An employee may add five newdays of accumulated leave per year. A maximum of 40 days ofunused annual leave may be accumulated. Child-care leave
may be used for school events for children aged up to third
grade in junior high school.
Provided to encourage employees to take five consecutive
days of leave for mental and physical refreshment.
Employees receive an additional five days of annual leave anda travel voucher upon completion of their 15th, 25th and 35th
year of continued service.
To provide rest time after the end of the workday to ensurethat employees can sleep and enjoy personal time. Provisions
to ensure at least 10 hours between shifts (interval).
Long-term paid leave of up to two years, or short-term paid
leave of 12 days per year.
Acquisition for up to three years per spousal transfer(Acquisition up to one per employee).

Each employee is permitted leave of up to a whole year for
infertility treatment.
Up to 3 hours per day (up to 5 hours per day if approved by thePart-time work forcompany under special circumstances) for periodic hospital
personal injury or illness visits due to personal injury or illness; these can be taken for
up to 6 months.

53

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Main support and measures
Support and Measures

Contentof childcare services during in-house training at theChildcare service Provision
Komatsu
Way
Center (Komatsu City, Ishikawa Prefecture), a
during in-house training facilityTrainingthat serves as a human resources developmenttraining
facility for Komatsu Group employees globally.
a monthly "Childcare Day" and holding a social event toChild-care “Childcare Day” Setting
provide a place for communication among employees raisingsocial event
supportchildren.
Childcare support seminars for men, to foster awareness of the needChildcare support for active participation in childcare among male employees withseminar for men children and to change the perceptions of their bosses and coworkers.
Seminar held by experts to provide opportunities for employees tothink about how to prepare for family-care and how to balance their
Family-carework and personal lives. From FY 2020, the seminar has been held
Family-care seminar
online to increase awareness of family-care among a wide range of
supportemployees across Japan.
Individual
Individual consultations with external experts have been held
monthly to provide tailored for employees.
consultation
Consultation
To support employees’ health and safety, a consultation desk hasforbeen set up at each site for those wanting to discuss balancing their
Treatment service
balancing
medical treatment and work. We have also introduced various
supporttreatment andsystems including fertility treatment leave to create a safe andwork
secure working environment for those needing medical treatment.

54

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

DATA

* Data for Komatsu Ltd. on a non-consolidated basis (full-time employees)(1) Parental leave
Number of employees
taking childcare leave(total)*1
Paternal leave
Maternal leave
Percentage of
employees taking
childcare leave (total)*1
Paternal leave
Maternal leave
Return rate of
employees fromchildcare leave
Number and percentageof employees taking
leave or leave ofabsence, including thosetaking childcare-related
leave other thanchildcare leave*2

FY2020

FY2021

FY2022

83

91

184

36
47

49
42

121
63

15.7%

16.7％

34.5％

7.5％
100%

9.7%
100%

25.7％
100%

98.8％

98.4%

99.9%

337（70.3％）

338（67.4％）361（76.9％）*1 Employees who had a child within each fiscal year.
*2 In addition to childcare leave, we have a system that grants necessary leave for childcare, childbirth, nursing care, injury or illness,etc.
Male employees who had a child within each fiscal year (acquisition percentage in parentheses).

55

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index(2) Family-care leave
Family-care leaves

FY2020

FY2021

7

3

FY2022

7(3) Paid vacation
Average days granted
Average days taken
Average ratio

FY2020

FY2021

20.0
19.8
98.8%

20.0
19.9
99.5％

FY2022

20.0
20.8
104%

(4) Volunteer time off (VTO)
Number of VTO users
VTO in long-term

FY2020

FY2021

14
0

56

27
0

FY2022

32
0

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Offering of a variety of talent development opportunities
and improvement of employee engagement
Improving employee engagement is essential for the company's sustainable growth. We have conducted a
global engagement survey of our employees worldwide, and are working to develop human resource policies
that reflect the strengths and challenges of each region and organization. We will continue to monitor andanalyze employee engagement and respond to ever-changing challenges to create an environment in which
each and every one of our employees can work with more vitality and enthusiasm.
We are also working to provide a variety of skill development opportunities, including training for employees
to become professionals in their fields and support for the acquisition of the knowledge and skills required ateach level. Furthermore, to support employees' proactive challenges and autonomous career development,
we will roll out the Career Development Program (CDP) from FY2023 and strengthen the connection between
personnel policies and support for employees' career development.

Improvement of employee engagement
In 2021, Komatsu conducted a global engagement survey of its domestic and overseas Group companies.
Each division has since formulated an action plan to address the issues raised in the survey, and is steadily
taking action in accordance with these plans. The second survey has been conducted in 2023, and we willcontinue to conduct the survey regularly. Moreover, we will focus on employees’ needs and motivation andreflect these in initiatives to expand voluntary and autonomous challenges.

Overview of global engagement survey in FY2021
Number of
respondent
Objectives
Survey overview
Methodology
Results

72% of the Employees (about 63,000 employees) of Komatsu and its Group
companies in Japan and other countries responded
To regularly identify and analyze employee engagement, clarify our strengths andchallenges at that time and take them into consideration when discussing anddeciding plans for the future
60 questions related to employee engagement and the factors that influence it,
including vision (values, management policies), strategy and competitive
advantages (goals, policy initiatives), leadership, and well-being (organizational
culture, work environment, aspects related to satisfaction, happiness, and mental
and physical health).
Anonymous online survey
Engagement Score Overseas: 79, Japan: 69 (Score is the percentage of positive
responses)

57

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index* The second survey has been conducted in FY2023.
* Engagement score KPI set in the mid-term management plan (target for FY2023)
Overseas: 85 or higher; Japan: 75 or higher

Fair and appropriate evaluation / Personnel system that accurately
recognizes employee abilities and achievements
The most important aspect in the creation of a workplace that promotes wellbeing and effective working is
the fair treatment of employees. Komatsu's personnel management system accurately evaluates our
employees, granting recompense based solely on merit. This system of assessment is enforced throughmultiple channels, such as evaluation training for both management and lower-level employees. An
evaluation committee has also been established that works closely with labor unions in order to confirm that
evaluations are fair and appropriately conducted. Finally, Komatsu provides individual feedback on
evaluations to employees at both management and non-management positions, and has set up a
consultation office through which employees can express complaints and concerns.

Target management system
Overview

Frequency
TargetInterviews are conducted between supervisors and employees to establish workgoals at the start of the period and conduct a retrospective review at the end of theperiod. Based on the primary evaluation by the direct supervisor, an Evaluation andDevelopment Committee is convened at the departmental level. The final evaluation
is determined through a multi-person, multi-faceted assessment and relativeevaluation.
General employees are evaluated twice a year, while managers are evaluated once
per fiscal year.
Regardless of this schedule, continuous dialogue and feedback between supervisorsand subordinates is encouraged to promote talent development and to manage andimprove work processes. Additionally, interviews for target management are
conducted on a case-by-case basis in the event of changes in targets due to transfers
or alterations in job responsibilities.
Full-time employees (general employees and managers)

Condition of labor unions
Having signed the United Nations Global Compact, Komatsu recognizes that freedom of association and theright to collective bargaining are intrinsic human rights that must be respected. Our engagements with labor
unions thus reflect this commitment, showcasing our dedication to ensuring the best for our people. We
have a labor contract with the Komatsu Labor Union, which is organized by approximately 11,300 of ouremployees across 8 of our Japanese branches. The Union employs a union-shop system, and the percentageof employees who are union members (number of unionized employees / total number of employees
including management and other non-unionized employees) is 77.2%.

58

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

The Komatsu Labor Union is a member of its superior body, the All Komatsu Workers Union and a superiorindustry labor union, the Japanese Association of Metal, Machinery, and Manufacturing Workers. 11 of ourconsolidated subsidiaries and affiliates in Japan have labor contracts with a labor union that has joined the"All Komatsu Workers Union", making up a total of approximately 6,500 employees.
In addition to this, Komatsu continues to comply with legislation related to labor rights, while responding inan honest and transparent manner to all dialogues and discussions with individual employees and theirrepresentatives.

Support for autonomous career development
To achieve sustainable growth in a rapidly-changing business context and an increasingly uncertain social
environment, we must acquire, develop and increase the engagement of “human resources who break
conventional methods and the status quo and create new things and services” and “human resources who
can take on challenges autonomously and proactively." To this end, we will promote a variety of measures torealize a positive cycle of sustainable growth for both employees and the company.

Main system and measures
Main System and Measures

Content
who pass technical skills tests (national certifications)
Subsidizing certifications Employees
receive partial or full subsidies for the examination cost.
Posts of the "Challenge Support Type" for taking on challenges innew business areas and "Hometown Personnel Type" for pursuing
Job posting systema new career due to family circumstances. If the employee meetsthe application and personnel specifications set by the relevant
department, they can apply to transfer to other departments.
Designed to help employees acquire skills and knowledge
beneficial to their work in an intensive, formal setting. If theStudy programs
employee meets the application requirements, they can apply to
Support forstudy at universities and research institutes in Japan and abroad.
careerdevelopment Employee award
Various award programs, including performance improvement
programs foraward, project award, individual merit award, health and safety
distinguishedaward, technical merit award, and volunteer award.
achievement
Career development
In-house language classes and subsidized correspondence
training courses
courses and examinations as determined by the company.
Once a year, supervisors and subordinates meet to share careergoals and other aspects of their work. We do this to promote theCareer Development
right person for the right job, provide suitable growth
Program（CDP）
opportunities for employees, and support proactive challenges
and autonomous career development.

59

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planetSocial

Data

Index

contribution
activities

Provide various opportunities for skill development
Employee training is based on the principle of training according to job function and department, and ourprimary aim is to develop professionals in their field.
The knowledge required at all levels (The KOMATSU Way, TQM, etc.) is transmitted through compulsory
training by job rank and is implemented across functions and departments.

DATA

Training hours and costs per employee

Average hours per FTE

Average spent per FTE

Nonlectures
consolidated Includes
delivered by inhouse instructors.
Consolidated Includes lecturesdelivered by inhouse instructors.
Nonconsolidated
Consolidated

60

FY202051

FY202149

FY2022
54

54

52

57

41

40

46

45

41

47

JPY197,000 JPY215,000 JPY230,000
JPY71,000 JPY72,000 JPY108,000

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

Enhancing the technical capabilities of our manufacturing operations
Komatsu has divided the techniques and skills that we have judged to be worth passing on into 11 fields,
each comprising 24 specific competencies, and has established a Technical Skills Improvement Committee
for each field. Komatsu plans and operates activities to improve the skills of employees at all levels, fromnew recruits to highly skilled technicians.
In FY2006, Komatsu established the Meister system to pass down technical know-how at manufacturing sites.
Since then, highly skilled technicians in each field have been certified as Meisters, and are tasked withguiding and training engineers at domestic plants, overseas subsidiaries as well as business partners.
We have designated the third Saturday of every October as "Technical Day", holding technical competitions
for employees from all areas of Komatsu. These include personnel from overseas subsidiaries and businessassociates, who come together to maintain and improve the overall technical capabilities of the KomatsuGroup through mutual dedication to studying.

DATA

All-Komatsu technology olympics participation results
Number of participants
From overseas

FY2020

FY2021

195
55(2 countries)360
199(4 countries)

FY2022181
21(7 countries)* No contestants were sent to Japan due to COVID-19 pandemic. Regional competitions were held in the following three regions.
Southeast Asia: Thailand and Indonesia
North America: Chattanooga, Peoria, and Newberry (the U.S. subsidiaries)
Europe: England, Germany, and Italy

Service personnel human resource development

Framework Promoted by Department for Promotion of Distributor HR Development
Our service personnel, who support the operation of our products delivered to customers, take essential
responsibility for the Komatsu values of “Quality and Reliability.” Komatsu thus has established specialized
Department for Promotion of Distributor HR Development, which focuses on the human resource
development of employees in the company and of our distributor service personnel.
As means for internal training and the service personnel development, we established the “Techno Service
School” for training our Japanese staff, and the “ the Komatsu Philippines” for training our Filipino staff, toconduct planned training by applying a job rotation system within the company including our overseas
offices.

61

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

We have established training centers in 21 locations in 15 countries worldwide to support the developmentof our distributor's sales and service personnel, not only in marketing, service, and operator skills but also inmanagement development and training for improvement activities.
The human resource development programs conducted at each training center are planned or supported by
Komatsu, depending on the content. Komatsu provides curricula and training materials for basic training
courses on products and services, and the local companies (Komatsu subsidiaries or distributors) conduct
actual training. We also provide advanced training courses by inviting managers and senior service personnel
to Japan, as well as special technical training courses provided by the training centers (mother training
centers) which have specialized skills.
Having set up these training environments and assessing the quality of our distributors through small exams
sometimes, we have been providing practical training opportunities that bring synergy to sales promotion
activities.
In FY2022, we further strengthened our online training program, conducting more than 400 training sessions
worldwide, with more than 5,000 service staffs in attendance.

TOPICS
Development of a simulator
Ensuring safety, training operators, and maximizing productivity are top priority issues at customer
worksites, which are always associated with a certain risk of accidents. Komatsu is working to help
solve these issues at worksites by utilizing simulators. The Department for the Promotion ofDistributor HR Development has developed a simulator that enables training in a virtual reality (VR)space using pedals and controllers installed in the same manner as in actual machines. By providing
training for operators using this simulator, we are helping to develop human resources for customers
and distributors, improve safety at work sites, and enhance construction efficiency.

Simulator developed62

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Training Filipino engineers at KPC
Komatsu Philippines Corporation (KPC), formerly known as Komatsu Human Resources Development
Center, is now in its 15th year since its establishment in the Philippines. KPC recruits Filipino students
who have graduated from science and engineering universities in the Philippines and trains them over
six years to become engineers who can work globally. Most recently, we established a new training
facility (see photo below) in 2021 to strengthen our human resource development function. We willcontinue to utilize the new training facility to further enhance our training, and we are committed to
expanding our business by developing our human resources.

63

ESG Databook 2023

Sustainability policy

Management ofWith people

sustainability

With businessWith the planet

Data

Socialcontribution
activities

Index

Develop digital and open innovation promotion humanresources
In growth strategies of the mid-term management plan, "human resources development for digitalapplications and open-innovation" represents one of the key initiatives underpinning the "enrich humanresources base with diversity". In addition to the AI Human Resource Education launched in FY2019, we
initiated the DX Human Resource Education in Japan in FY2022. This project aims to promote thedevelopment of digital human resources by establishing a curriculum that is tailored to each employee's
level, from entry level (aimed at acquiring basic knowledge) to practical level (aimed at solving problems
through practical application in business and projects). For the DX Human Resource Education entry level,
we are developing initiatives to offer DX overview lecture videos to all employees. It is anticipated thisstrategy will lead to the reskilling of a wider range of employees. To develop human resources for openinnovation, we are conducting and utilizing both internal and external programs to accelerate collaboration
with government and academic institutions. From FY2023, we plan to dispatch employees, including thosefrom overseas subsidiaries, to programs conducted by outside companies that enable them to learn design
thinking, a thinking process necessary for innovation creation.
To create customer value that generates a virtuous cycle of solving ESG issues and improving profitability,
promoting digital transformation (DX) across all areas is essential. Programs to foster the human resources
needed to supply customers with DANTOTSU Products, DANTOTSU Services, and DANTOTSU Solutions willcontinue to be implemented going forward.

Program overview
Education overview
Type of education
DX HumanResource
Education

AI HumanResource
Education(Entrylevel)

Objective

Cultivating talents
who can adapt todigitaltransformation in(Practice various fields.
level)

Curriculum outline andobjectives
1. Acquire DX concepts andbasic knowledge
2. Acquire data literacy
skills that form thefoundation of data science
Improve ICT planning andsystem development
management skills

Acquire problem-solving
In addition toprocess methodology
acquiring knowledge using AI
and skills related toAI, we aim to develop Develop AI design,talents who can solve(Practice customers' business problem-solving
and concretelevel) challenges using AI. processes,
proposals for businessdevelopment(Entrylevel)

64

Course participants

Start
year

All employees
including Komatsu FY2022
Group companies inJapan
Selection ofengineers and
FY2022
professionals
All employees
including Komatsu FY2019
Group companies inJapan
Selection ofengineers andprofessionals

FY2019ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

DATA

Number of participantsType of education

DX Human Resource Education
AI Human Resource Education(Entry level)(Practice level)(Entry level)(Practice level)

FY2019 FY2020 FY2021 FY2022 Total- 5,341 5,341
44 44
30
30
30
30 120
10
10
10
10 40

* Set KPI of cumulative number of participants for 3 years from FY2022 to FY2024 in the mid-term management plan.
DX Human Resource Education: 900 participants in the entry level, 180 participants in the practice level
AI Human Resource Education: 30 participants in the entry level, 90 participants in the practice level* For entry-level DX Human Resource Education, we released DX overview lecture videos to all employees more widely than originallyplanned.

65

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Occupational safety and healthOccupational safety and health is a core component in Komatsu's business operations. In line with thiscommitment, Komatsu thus enhances safety at the workplace for our employees and business partners.

Safety, health, and health management promotion structure
Organization

The Komatsu Group promotes safety, health, and health management as per the following structure.

66

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Meeting committee structure
The Komatsu Group holds various meetings to discuss and share information on safety, health, and healthmanagement, including the following:Group Safety and Health Conference (Safety conferences at Group companies, presentations bysmall groups which implement “zero accidents” activities, etc.)
This conference convenes with the aim to increase awareness regarding Safety and Health for employees of
the Komatsu Group and partner companies while raising the level of Safety and Health activities. The
conference engages in activities that help all the participants to share the policy, priorities and best practices
of Safety and Health activities, and incorporate these practices into the daily operations at other divisions.
This is also the administration of presidential awards related to Safety and Health.
Group safety and health committee (Safety and health committees at group companies, Plants
and operation sites)
This committee was formed to enhance cooperation between labor and management to examine, discussand make decisions on measures aimed at eliminating risks in workplaces and preventing health risks. This
committee formulates regulations concerning Safety and Health, examines, debates and decides on related
policies for the fiscal year. This is also the occasion to manage the progress of these activities.
Major items to be examined and discussed:
Formulation of safety and health regulations
Action plan for the fiscal year and activity progress management
Conference for safety and health in the community
We shall share and discuss information on safety, health, and the environment in each region globally,leading it to the safe and healthy activities of each overseas subsidiary. In FY2022, we held the conferences inNorth America, Latin America, Europe, Asia and China.
Group health representatives meeting
Formulates and makes proposals for all company policies related with safety and health practices.
Promotes and implements practices based on company policies in locations of each business operation.
Health Promotion Committee
This committee consists of business owners and employees (organized by Komatsu Union) as well as the
Health Insurance Society. This occasion affirms a common recognition of "Health", and formulates measuresand policies aimed to enhance the health care for employees and their families.

67

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Basic policy on safety, health, and health management
Komatsu communicates the message of “Safety First” to the Komatsu Group and addresses occupationalsafety and works on mental and physical health care to create a safe and comfortable work environment.

Considering our obligation to occupational safety and health, we have implemented the following guideline:
All the Komatsu Group companies, including all top managers and employees, shall promote occupationalsafety and health activities so that everyone can work in a safe and comfortable work environment inaccordance with the policies described below.

Occupational safety and health policies
1. Observe the laws and regulations concerning occupational safety and health as well as internal rules, key
items common to the Komatsu Group about occupational safety and health, and particularly items agreed asa result of labor-management consultations in each workplace.
2. Set up targets for activities based on occupational safety and health policies, review their progress, andendeavor to continuously improve and enhance occupational safety and health activities.
3. Carry out occupational safety and health activities in management-and-labor partnership on a fullparticipation basis and keep good communication with stakeholders with regard to occupational safety andhealth.
4. Identify and evaluate the risk for occupational safety and health of a workplace and take appropriate actions
accordingly.
5. Actively promote employees' healthcare management and support the maintenance and promotion of
employees' health.
6. Actively promote education, training and qualification acquisition necessary for employees' occupationalsafety and health activities, and endeavor to develop human resources for safely carrying out their
responsibilities in the workplace.
7. Subject to appropriate protection of personal information, publicly offer the knowledge and information
about occupational safety and health activities obtained through the business activities in order to securesafety and health in society.

68

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

In addition to our existing health management programs, the Komatsu Group strives to create a corporate
Health Culture and has been promoting its Five-Year Health Development Plan, a medium-term healthdevelopment plan that was established in FY2014 and the Second Health Development Plan which wasestablished in FY2019. The goal of the Health Culture is: to look after one's own health and the health of one's
colleagues, and to consider and take action on what is necessary for leading a better life. The president
announced the Komatsu Health Declaration in June 2014 to e ectively promote this goal. The declaration
was revised in April 2019.

Safety, health, and health management initiatives
Safety and health key initiatives of Komatsu group in FY2022

We set key activity items and our target values and are promoting the following activities throughout
the Komatsu Group.
[Safety and health management]
Major disaster elimination activities
Enhancement of compliance risk management.
Elimination of accidents involving inexperienced workers
Activities to maintain and improve occupational safety and health management systems.
[Health management]
Improvement of employees’ health literacy
Extension of healthy life expectancy
Tobacco-related diseases▷ Lifestyle improvement
Mental healthWorking to achieve a mid-term health development plan
In FY2022, the Komatsu Group has promoted activities under the Five-Year Health Development Plan
(FY2014) and the Second Health Development Plan (FY2019) to “implement outstanding healthmanagement” and “improve employees’ health literacy*.”
For the Second Heath Development Plan, while continuing the activities related to the previous mid-term
plan, we have promoted the creation of a lifelong culture of health by strengthening support for work-lifebalance, primary preventative actions (lifestyle improvements), and by establishing systems andenvironments to “improve employees’ health literacy,” such as the introduction of ICT tools.
* Capability of voluntarily practicing healthy actions (lifestyle improvement/maintaining an appropriate exercise regimen and diet, etc.)

69

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

Major accomplishments in FY2022 are listed below:
Item

Cancer andlifestylediseases

Tobaccorelateddiseases

Initiative

KPI

Regular check-up
percentage
Increase the percentage of(Reference) Secondary
employees using the various
check-uphealth checkup consultations for healthpercentage
the early detection and treatmentof cancer and lifestyle diseases
Milestone checkup
and the prevention of severe
consultation percentage
diseases
Female cancer checkup
consultation percentage
Reduce secondary exposure tocigarette smoke and smoking
percentage

Percent of the KomatsuGroup in Japan thatsmokesEstablish a system or environmentthat leads to the improvement of Percent of employees
Lifestyleto improve or promote with Healthy Action
improvement motivation
the healthy lifestyles of employees Competency*(e.g. diet and exercise)
Percentage responding toour recommendation toemployees
Reduce the number of individuals interview
under
high
stresswith mental disorders, providecare, appropriately support
Mental health earlyStress checktheir return to workplaces, and (Reference)
implementation
create a happy and vigorous
percentage
workplace
Percentage responding tohigh-stress workplaces

FY2021 FY2022
result result
100%

100%

Goals
(FY2022FY2024)-

98.2% 98.5%

100%

85.4% 88.2％ 95% or more
61.1% 56.9％ 80% or more
28.3％ 28.4%

Not morethan thenational
average ofsmokers(16.7%)

51.4% 52.7％ 60% or more
99.9％ 99.0％
99.8% 99.1%
97.6％ 97.0％

100%
100%

(Scope of aggregation: All employees of the Komatsu Group in Japan)* Capability of voluntarily practicing healthy actions (lifestyle improvement/maintaining an appropriate exercise regimen and diet, etc.)

Introduction of the Komatsu health promotion 100 (KHP100)
As part of the "Lifestyle Improvement Promotion" of the "Second Health Promotion Plan," in FY 2021, welaunched the Komatsu Health Promotion 100 (KHP100) in cooperation with the Komatsu Health Insurance
Association to further promote employees’ health and health literacy.
Under KHP100, we distribute wearable devices to employees who wish to use them to visualize their physicalactivity and exercise. We also offer walking and other health events on a health portal that can be linked tothe device, providing employees with opportunities to change their health-related behavior.
70

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Komatsu receives the "Sports Yell Company 2023" award
Komatsu has received the "Sports Yell Company 2023" award sponsoredby the Japan Sports Agency in recognition of its efforts in KHP100.
The "Sports Yell Company" is a system that recognizes companies thatare actively engaged in promoting sporting activities to enhance
employees’ health, encourage hard-working people to play sports, andfoster social momentum for sports.

Supporting supplier's safety activities
For details on the safety activities for the member companies of Midori-kai, an organization made up of ourbusiness partners (suppliers), please click "Support for Member Companies of the Komatsu Midori-kai" .

Status in FY2022

Educational training for occupational safety and health (in Japan)
Education regarding mental healthContents

FY2022 PracticeStress tests/awareness training
implemented in 13 companies, with approximately
22,837 employees“Support Letter for the Heart”, which is motivational
material for management personnel, is distributed
every other month (even months) to management
personnel within the Group.

Based on the rules of the Industrial Safety and Health Act,
educational training for mental health is conducted.
Stress tests were started in FY2006, and stress awarenesstraining were started in FY2007 and is being held for theemployees of all Group companies in Japan.

71

ESG Databook 2023

Management of

Sustainability policy

sustainability

With people

With businessWith the planetSocial

Data

Index

contribution
activities

Education based on job levels
Contents

FY2022 Practice
New Employees (285 people)*
3rd year of employment with the company (448 people)
Safety and Health education and mental health education 7th year of employment with the company (30 people)
is provided to each level of Komatsu Group companies in Mid-career recruitment (107 people)
Japan including new employees.
New Assistant Managers (351 people)
Foremen/Senior Foremen (132 people)
New Managers (215 people)* Total for head office employees

Education based on Function
Contents

FY2022 Practice
Safety and health practical training for production
managers (15 trainees)
Education for production engineers (47 trainees)
ISO 45001 standards understanding training (58 trainees)
ISO 45001 internal auditor development training (45trainees)
ISO 45001 internal auditor level-up training (33 trainees)

Safety and health education is provided according tofunction to the production managers, Production
Engineering Division, and workplace safety and healthpromotors of Komatsu group companies in Japan.

Number of major work-related accidents (fatal)
Komatsu groupconsolidated companies
Non-consolidated sales
companies
Contractors
Total

SubtotalJapan
Overseas
SubtotalJapan
Overseas
SubtotalJapan
Overseas

FY2017

1
0
1
0
0
0
0
0
0
1

FY2018

3
0
3
0
0
0
0
0
0
3

FY2019

1
0
1
0
0
0
0
0
0
1

FY2020

3
0
3
1
1
0
1
0
1
5

FY2021

0
0
0
0
0
0
0
0
0
0

FY2022

2
0
2
0
0
0
1
0
1
3

We take these accidents very seriously, and will continue to actively engage in appropriate safety and healthactivities to ensure that such accidents will not occur again.

72

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Data

Incidence rate of occupational accidents (Frequency rate of lost worktime)

1. The data for all industries (Japan) and construction and mining equipment manufacturing industry(Japan) are provided by the Ministry of Health, Labour and Welfare.
2. The scope of the Komatsu Group (Japan) includes Komatsu Ltd. and group companies in Japan.
（Excluding Komatsu Safety Training Center, KCS and KBS)
3. The scope of the Komatsu Group (global) includes "Komatsu Group (Japan)" and overseas production
plants.
4. Some data has been revised due to reviewing the past data.

Frequency of occupational accidents (occupational illness frequency rate)

1. Occupational illness frequency rate (OIFR): Number of occupational illness absences (times) / Total ofworking hours (hours) x 1,000,0000
2. Occupational illness: Back problems, heat illnesses, chemical poisonings, infection, etc. specified by the
Ministry of Health, Labour and Welfare
3. Komatsu Group (Japan): Komatsu alone + group companies in Japan（Excluding Komatsu Safety
Training Center, KCS and KBS)73

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planetSocial

Data

Index

contribution
activities

Occupational Safety and Health Management System ceritification and renewal of certification
Since FY2007, in Japan, the Komatsu Group has taken steps to acquire or renew OSHMS certification at eachbusiness site and has been working to obtain ISO 45001 integrated international standards certification since
FY2018. The Osaka Plant acquired ISO 45001 integrated international standards certification for the first timein April 2019 and other divisions and Group companies acquired this certification in April 2020. We have also
taken steps to acquire or renew OHSAS 18001 certification for our overseas facilities and have been working
to obtain ISO 45001 certification since FY2019.
ISO 45001 certification requires the following activities to be properly managed by the company's
occupational safety and health management system:
Occupational safety and health risks and hazards assessments to identify potential hazards in theworkplace.
Prioritization and integration of action plans with quantitative targets to address occupational safety andhealth risks.
Actions to prepare for and respond to emergencies.
Assessment of progress toward goals for reducing and preventing health risks.
Internal audit.
Investigation of occupational injuries, illnesses, and accidents.
Occupational safety and health activities for employees and other stakeholders to raise awareness andreduce occupational safety and health accidents.
Introduction of occupational safety and health standards in procurement and contractual requirements.
In Japan

KomatsuGroup Company(The legends: ◇JISHA OSHMS ●ISO 45001 OSHMS Certification and Renewal)

FYOsaka Plant
Head Office
Awazu Plant
Kanazawa Plant
Ibaraki Plant
Oyama Plant
Tochigi Plant
Koriyama Plant
Shonan Plant
Himi Plant
Shiga Plant
Field Testing
Department
GIGAPHOTON
KELK
Komatsu NTC

~2018

2019

2020

2021

2022

◇

●

●

●

●

●

●

●

◇

●

●

●

◇

●

●

●

◇

●

●

●

◇

●

●

●

○

●

●

●

◇

●

●

●

◇

●

●

●

◇

●

●

●

◇

●

●

●

●

●

●

◇

●

●

●

◇

●

●

●

◇

●

●

●

* Integrated international standards certification acquired for FY2020 onward.
74

ESG Databook 2023

Sustainability policy

Management ofsustainability

OverseasWith people

With business

FY
Komatsu America Chattanooga Manufacturing
Operation
Komatsu America Peoria Manufacturing
Operation
Komatsu America Newberry Manufacturing
Operation
Komatsu Mining Longview
Komatsu Mining Peru
Komatsu Mining Wadeville
Komatsu Mining Tianjin
Hensley Industries, Inc.
Komatsu do Brasil Ltda.
Desarrollos Technologicos S.A.
Komatsu UK
Komatsu Germany (Construction Division)
Komatsu Germany (Mining Division)
Komatsu Italia Manufacturing
Komasu Manufacturing Rus LLC
Komatsu South Africa (Remanufacturing
center)Bangkok Komatsu
PT Komatsu Indonesia
PT Komatsu Undercarriage Indonesia
Komatsu Changzhou Construction Machinery
Corp.
Komatsu Shantui Construction Machinery Co.,Ltd.
Komatsu Shandong Construction Machinery
Corp.
Hensley Lingfeng Co., Ltd.
Komatsu Dalian Machine Tool

With the planetSocial

Data

Index

contribution
activities(The legends: ◇JISHA OSHMS ●ISO 45001 OSHMS Certification and Renewal)

~2018

2019

2020

2021

2022

□

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

□
●

;

●
●
●

●

●

●

□

●

●

●

□

●

●

●

●

●

●

●

●
●
□

●

●

●

●

□

●

●

●

□

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

* OSHMS: Occupational safety and health management systems* OHSAS 18001: Occupational health and safety assessment series

75

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Human rights policy
In September 2019, Komatsu established our Human Rights Policy and declared that we endeavor to conduct
our business respecting human rights in compliance with the United Nations Guiding Principles on Businessand Human Rights, and to apply respect for human rights in accordance with international standards
throughout our global organization. Based on this policy, Komatsu develops and implements measures toprevent and mitigate negative impacts on the Group and our business partners' human rights, including
suppliers, sales and service distributors, and further improves its processes to correct potential negative
impacts on human rights.
This human rights policy has been incorporated into the Komatsu Code of Conduct (revised in 2021) and isthoroughly communicated by all Komatsu Group employees worldwide.

Human rights policy
1. Scope of application
This policy applies to all business activities and all employees of the Group worldwide.
Furthermore, our business partners including suppliers and distributors are also expected andencouraged to comply with the policy in their own operations.
2. Respect for human rights
Our purpose is “Creating value through manufacturing and technology innovation to empower asustainable future where people, businesses and our planet thrive together.” The sustainability
policy based on this purpose advocates the realization of a sustainable society and growth ofbusiness, and clearly declares that as Komatsu Group, we shall respect human rights related to allof our business activities.
We believe that it is essential to ensure that respect for human rights is firmly embedded within
our company and therefore applies the human rights policy to Komatsu’s worldwide operations
to conduct its business. This policy is formulated based on international human rights principles
encompassed by the Universal Declaration of Human Rights. In addition to promoting businessactivities in line with this philosophy, we promote activities that respect human rights inaccordance with the “United Nations (UN) Guiding Principles on Business and Human Rights” andthe “ILO Core Labour Standards”. Komatsu Group will comply with the laws and regulations of all
countries where it conducts its business activities. Where established international human rights
norm exists as well as national laws, we will follow the higher standard; where they are in conflict
and will seek ways to respect internationally recognized human rights to the greatest extent
possible.
Health safety
We will, first of all, strive to “ensure a safe and comfortable work environment” and “maintainand promote employees’ health”, aiming to create a bright and vibrant work environment
ensuring mental and physical health.

76

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Prohibition of discrimination and harassment
We shall respect diversity and treat and appraise each and every employee in a fair andimpartial manner. We shall not discriminate against any employee on the basis of race, ethnicity,
color, sex, sexual orientation, gender identity, age, religion, national ancestry, disability, marital
status or other legally protected status. We shall vigorously promote equal opportunities for
employment. We shall not tolerate inappropriate behavior and speech which prevents
employees from working effectively and comfortably, or any type of harassment includingharassment towards subordinate personnel, sexual harassment, or harassment related topregnancy, childbirth, parenting, or nursing care, in and outside of workplace.
Prohibition of child labor
We shall not tolerate all forms of child labor. Furthermore, we will not assign young workers tolate-night or overtime work, or to tasks that threaten their health or safety.
Prohibition of forced labor
We shall not tolerate all forms of forced labor including bonded labor and human trafficking.
Freedom of association and right to collective bargaining
We respect the rights of workers concerning activities related to freedom of association andcollective bargaining in accordance with the laws and regulations applicable to the countries
and regions where it conducts business activities. Even in cases where freedom of associationand the right to collective bargaining are restricted by the laws and regulations of each country
or region, we will faithfully accommodate, whenever applicable, dialogue and discussion with
employees or their representatives.
Working hours and wages
We comply with all the laws and regulations on working hours and wages applicable to thecountries and regions where it conducts business activities and pays wages above the level atwhich employees can fulfill a minimum level of living. Furthermore, we set working conditions
including wage levels that are competitive in each region.
3. Stakeholder engagement
When we talk about “stakeholders”, we refer collectively to all parties that are affected by ourbusiness activities. Stakeholders include customers, shareholders, investors, distributors,
suppliers, local communities and employees. We will consult with independent external
knowledge on human rights issues and respect dialogue and discussions with internal andexternal stakeholders to understand human rights related issues. We will regularly and publicly
communicate our activities on human rights based on this policy through our reports and/orGroup website.
4. Local communities
Companies cannot continue to exist without maintaining good harmony with the local
community. We wish to be the most transparent company which actively seeks harmonious
balance of interests with the local communities through close communication and contributes tothe local communities as a valued corporate citizen.
5. Human rights due diligence
We conduct human rights risk assessments for our existing and new construction/mining
equipment and forestry machinery businesses worldwide based on international norms such as
the “UN Guiding Principles on Business and Human Rights” with the help of external experts. In
addition to risk assessments, we will conduct CSR procurement assessments for suppliers andpromote CSR procurement through improvement activities based on the results of theassessments. We will also perform risk assessments downstream in the value chain with the aimof proceeding with dialogue with all relevant stakeholders including distributors, and building anapproach directed at responsible sales.
77

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

6. Guidance for employees
In order to ensure the effectiveness of this policy, we will conduct appropriate training andactivities to raise awareness in employees throughout the Group.
7. Remedy
We have established and maintained a Global Compliance Hotline at our headquarters to takereports relating to non-compliance, including regarding human rights issues and make thisHotline number known to all Komatsu Group employees. Any employee who believes a conflictarises between this policy and the laws, customs, or practices of the place where they work, or
who has questions about this policy or would like to confidentially report a potential violation ofthis policy, should raise those questions and concerns with the Hotline anonymously. In addition
to the Hotline for Komatsu Group employees, anyone other than Komatsu Group employees who
become aware of any circumstance or action that violates or appears to violate this policy orapplicable law with respect to human rights, can file a report anonymously. They can contact us
at https://www.komatsu.jp/en/inquiry/ or call at +81-3-5561-4711.
Established: September 2019
Revised: September 2023
* This policy has been approved by the Sustainability Promotion Committee, chaired by the president.

78

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Business and human rights
We respect the human rights related to our business activities in accordance with international human rights
principles, including the United Nations’ Guiding Principles on Business and Human Rights. We also preventand mitigate the occurrence of negative human rights impacts and establish following processes forcorrective action when it becomes clear that we have caused or been involved in such impacts.
【Komatsu Group Human Rights Management System】

Assessment of human rights risks: Identi cation of potential risks based on the requirements of nationallaws and international human rights laws and regulations.
Main human rights issues covered in risk assessment: Prohibition of child labor, forced labor, andoverwork; freedom of association; collective bargaining rights; prohibition of discrimination andharassment; minimum wage; occupational safety and health, etc.
Key stakeholders in risk assessment: Komatsu Group companies, suppliers, distributors, business
partners, local communities, etc.
Integration into internal divisions and procedures, and appropriate measures: Adoption of improvement
activities based on risk assessment evaluation results (appropriate actions to prevent or reduce identi edrisks and integration of these actions into internal divisions and procedures).
Follow-up survey (Monitoring): Monitoring of the status and e ectiveness of risk prevention/mitigation
measures and the prevention of the recurrence of incidents.
Information disclosure: Disclosure of information on web pages and in reports to provide an overview ofrisk assessment e orts and the actions taken to address identi ed risks.

79

ESG Databook 2023

Management of

Sustainability policy

sustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

1. Formulation of human rights policy
In September 2019, Komatsu established its Human Rights Policy and declared that it endeavors to conduct
its business respecting human rights in accordance with international standards throughout its global base,both in the Group and with its business partners, including suppliers and sales and service distributors.
This human rights policy has been incorporated into the Komatsu Code of Conduct (revised in 2021) and isthoroughly communicated by all Komatsu Group employees worldwide.
(Reference) Policies and guidelines related to human rights
TargetGroup employees
Suppliers

Policies and guidelines
Global personnel policy
CSR procurement guidelines
Green Procurement Guidelines

2. Promotion structure
Since human rights management activities are closely related to the operations of each department,
including human resources, procurement, occupational safety, and marketing, the Sustainability Promotion
Division serves as the secretariat and promotes human rights management in cooperation with eachdepartment.
Human rights policies, measures, and activities are discussed and decided by the Sustainability Promotion
Committee, and the discussions are reported to the Board of Directors at least once a year.

3. Human rights due diligence
We conduct ongoing due diligence to identify, prevent, and mitigate any human rights abuses and explain
how we address human rights issues in our business activities.
【Summary of human rights due diligence conducted to date】
2014
2017

With the support of BSR (Business for Social Responsibility), an external expert, we conducted arisk assessment of human rights issues for our global construction, mining, and forestry
equipment business.
Conducted the second human rights risk assessment with the cooperation of BSR. In
conducting the assessment, we referred to the Universal Declaration of Human Rights and the
UN Guiding Principles on Business and Human Rights.

80

ESG Databook 2023

Sustainability policy

2020

2021
2022

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

With the support of an external expert, CSR Europe, a Belgian business network, we conducteda systematic global human rights risk assessment of our downstream business (sales ofequipment and spare parts) in construction, mining, and forestry equipment business. Basedon the characteristics of our business, we assessed and prioritized risks from multiple
perspectives, including discrimination based on race, ethnicity, and country of origin, andforced labor, freedom of association, and fair labor conditions to identify and prioritised
potential issues for each business sector and region.
Prioritized how Komatsu’s human rights issues should be addressed and decided to conduct asurvey of suppliers and Komatsu Group companies, as well as an on-site impact assessment indownstream businesses.
- Conducted a human rights web survey of the Komatsu Group companies and major supplierswith support from external consultants.
- Conducted an on-site impact assessment of downstream businesses in South Africa with thesupport of CSR Europe.

We will strengthen the identi cation of human rights risks and issues by conducting constant risk
assessments throughout our business.

a. Internal and supply chain human rights due diligence(1) Human rights risk assessment and impact assessment
Assessment of Komatsu Group and the supply chain
From FY2020 to FY2021, we have conductedan Self-Assessment Questionnaire (SAQ) on CSR activities,
including human rights, among 156 Midori-kai supplier companies in order to further promote CSR in our
supply chain and recon rm that all parties remain fully aware of the guidelines. We con rmed theirrecognition of the CSR procurement guidelines and the status of their CSR activities, and followed up on thesurvey results on an individual basis.
* Midori-kai: A supplier organization that is considered particularly important to our business and has been established in Japan, theU.S., Europe, China, and Thailand. The amount procured from Midori-kai accounts for approximately 70% of the total.

In FY2022, we conducted a web-based human rights survey of all Group companies and Midori-kai suppliercompanies in Japan and overseas. To ensure objectivity in this survey, we received support from an external
consultant to create questions and analyze the results based on the UN Guiding Principles on Business andHuman Rights and other international rules.
Although no serious human rights violations were found, some challenges such as insu cient awareness ofthe human rights policies and grievance mechanisms were identi ed. To mitigate these risks, a feedback
report was distributed to all respondents and the results were shared.

81

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

DATA Human rights assessment results for group companies and suppliers
Human rights web survey in FY2022
From October 2022 to February 2023
Content
11 categories, 106 questions in total
84 Komatsu Group sites in 48 countries*1
Number of respondents (all Komatsu Group companies)
Total 376
Response rate
100% (total 84)
PeriodMidori-kai suppliers 292 companies in 4 countries*2
72.9% (total 213)

*1 All consolidated companies are aggregated to 84 for the survey, depending on the country/region and the business.
*2 As the European Union is planning to enact human rights due diligence legislation, the survey was not conducted this year so that it
could be conducted in accordance with the legislation in the future.

Screening
In our global operations, we have established a screening system to check and regulate transactions withpartners designated speci ed in our sanction lists and other documents. We are ensuring compliance withinternational laws and regulations (such as embargoes).
Response to con ict minerals
In line with our corporate social responsibilities, Komatsu is continuing its e orts to avoid using con ict
materials produced in the Democratic Republic of Congo (DRC) or its neighbors, as these pose a human risk
when mined. We have informed our business partners of this policy through the Komatsu Green
Procurement Guidelines. Working hand-in-hand with suppliers, we conducted a country-of-origin survey todetermine the location of origin of our materials. Komatsu continuously investigates the subject minerals
using the RMAP* and other processes. As the number of minerals of concern is increasing, we are taking
action while monitoring the laws and regulations of each country.
* RMAP (Responsible Minerals Assurance Process): A process proposed by the Responsible Minerals Initiative (RMI), an internationalorganization.

Komatsu Green Procurement Guidelines
Response to UK modern slavery act
In response to the "Modern Slavery Act 2015" being enacted by the UK in October 2015, Komatsu UK Ltd.
revised its “Slavery and Human Tra cking Statement for the Financial Year 2015.” disclosed on the web site.
Recognizing the possibility of the risk of human rights violations occurring in Komatsu's business operations
and its supply chains, this statement reports how such an issue will be properly managed.
Komatsu UK Ltd. website

82

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index(2) Follow-up surveys
We have repeatedly conducted risk assessments and followed up all identi ed risks. We plan to follow up on
issues in our upcoming survey in scal year 2022.

(3) Disclosure of information
In the "Komatsu Code of Conduct," we declare that we shall disclose appropriate information on Komatsu's
business operations to our shareholders, investors and other stakeholders to the extent permissible under
the relevant laws, regulations and contracts with third parties, and subject to appropriate protection of trade
secrets and other con dential information. We will also proactively disclose relevant information on humanrights issues to improve transparency and fairness.

b. Human rights due diligence in downstream businessWe continue our e orts to establish a "responsible sales" approach, considering human rights in ourdownstream business, i.e., sales and service of products and spare parts.
[Activities in 2022] On-site impact assessment in South Africa
Based on the results of the risk assessment conducted in the previous year, we have started an on-site impact
assessment on our business impact on human rights from 2022.
In September this year, we conducted an on-site impact assessment in South Africa with the support of CSR
Europe. The assessment was conducted in cooperation with Komatsu Ltd. and Komatsu South Africa (Pty)Ltd., which oversees sales and services in South Africa. Based on desk research conducted in advance, theon-site impact assessment was carried out to hold dialogues with stakeholders involved in our business inSouth Africa. No major human rights risks were identi ed, and intensive discussions on human rights were
held, enabling us and our customers to share awareness and deepen the understanding of issues and values.
Komatsu will continue to conduct such on-site impact assessments on sales and services sectors to deepen
communication in each region, while accumulating operational methods and know-how of impact
assessments to standardize them.
DATA Downstream impact assessment results
Country
Number ofinterviews

FY2022South Africa
Individual interviews: 7 companies/organizations(customers: 5, NGOs: 2)
Dialogue with stakeholders: 12 companies/organizations(customers, potential customers, NGOs, mining industry associations, chambers of commerce, vocational
training institutions, university associate professors, etc.)

83

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

4．Correction and grievance mechanisms
Komatsu has established a "Global Compliance Hotline" at its head o ce, which can be used to report any
violation of human rights issues, and has made this hotline known to all Komatsu Group employees. The
hotline also accepts reports of violations or suspected violations of human rights policies and laws, as well asreports of non-compliance or suspected non-compliance in procurement activities, to whom anyone cancontact anonymously if he or she becomes aware of facts that may indicate a violation or suspectedviolation.
The "Five Principles of Compliance," which all Komatsu Group companies and their employees must follow,
making it clear that employees who use the system for appropriate reporting will not be treated unfairly in
any way as a result of their action.
Compliance
Revitalization of local communities (social contribution activities)
We believe that revitalizing the local economy will also help solving potential human rights issues. Throughhuman resource development utilizing our core skills, we continue to focus on education at training centersaround the world, and support regional vocational training schools through our social contribution programsin ways such as providing curriculums and training tools. This will also support the safe deployment of themachines and reduces further the risks for accidents and misuse.
Examples of speci c human rights due diligence activities
Since 2019, we have conducted due diligence on Myanmar with the support of external experts, to identify
the issues and discuss how we approach those issues. As a result, we made a decision in 2019 to terminate
sales of mining equipment to the jade mining market in Myanmar. We also terminated the operations of"Komatsu Manufacturing Myanmar", our subsidiary engaging in mining equipment maintenance. We havesince been in the process of liquidating the company. We will continue to work further with our distributors
and external experts in Myanmar to take e ective measures to strengthen respect for human rights in ouroperations.

84

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

With business

Improving safety of products and solutions

086

Quality assurance- Our responsibility to customers

090

Outline of procurement policy and supply chain

095

Overview of supply chain management processes

103

Komatsu group's supply chain management andpromotion of CSR procurement

108

Support for member companies of the Komatsu Midori-kai(management and society)115

Support for member companies of the Komatsu Midori-kai（environment）

124

Corporate governance129

Corporate governance indicators

131

Compliance

134

Risk management

139

Information security

146

85

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Improving safety of products and solutions
Our innovative processes afford us the ability to consistently conceive valuable ideas in multiple fields, suchas environmental design and economic efficiency. Out of these areas, the one which we consider to be of themost importance is that of “Safety”.
From providing safe products to the overall safety of our automatic operational systems, we persistently
utilize the full scope of our innovation capabilities to find ways in which safety is used to maximize the valueof our products to our customers.

On-site operational safety
All manufacturers’ primary responsibility is to provide products that are safe and compliant with the latest
international regulations and standards. In our mid-term management plan, we aim to "develop safe, highly
productive, smart, and clean workplaces of the future with customers." We also aim to create new customer
value (DANTOTSU Value) by integrating DANTOTSU Products (advancement of machines), DANTOTSU
Services (advancement of machine operation), and DANTOTSU Solutions (advancement of workplace
operations) to generate a positive cycle to resolve ESG issues, including worksite safety, and improveearnings.

In 2013 and 2014, Komatsu introduced the ICT Bulldozer and ICT Hydraulic Excavator respectively, aninnovation that made possible the automatic control of blades and buckets. These systems by-pass the needfor manual experience, allowing even fresh or less-experienced workers to perfectly reproduce the samehigh-level precision construction work of a skilled worker. This has eliminated the past need for ancillary
workers and guiding processes, thus enabling our customers to make huge savings on labor costs andimproving general safety.

86

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

The pinnacle of our safety innovations has birthed a fully automated operational system, known as theAutonomous Haulage System (AHS). This ingenious system has been fully-established in certain major minesin Australia and Chile, which involves the unmanned operation of giant dump trucks that carry over 300 tonsof soil and minerals. The mine is an often harsh environment which requires constant vigilance and safety
protocols, having multiple construction machines and vehicles that operate around the clock on a 24 hourbasis. The AHS system utilizes cutting-edge technologies like satellite communication and various radars andsensors to create a useful system that meets this need in its entirety, responding to the diverse nature of ourcustomer's safety requirements.
Despite these significant achievements, we are fully aware that there is always room for amelioration. We willcontinue to innovate and improve, furthering the evolution of such safety systems in order to realize theoptimal safety environment that our customers require in their respective sites of operation.

Example of safety activities

Introducing “KomVision Human Detection & Collision Mitigation System” to the JapaneseMarketKomatsu has launched hydraulic excavators*1
equipped with the in-house developed KomVision
Human Detection & Collision Mitigation System as astandard feature for the first time in the industry in
the Japanese market in 2020.
Komatsu has developed this system by upgrading
the “KomVision” bird’s eye view camera systemequipped with conventional models as standard in
the Japanese market. The system prevents the
motion of the excavator when the camera detects
people when the excavator starts to travel or swing.
The system also stops the excavator when it detects
The PC490LC-11 equipped with KomVision Human Detection
humans while the excavator is traveling at slow
speeds. With these functions, the system helps curb & Collision Warning System (since 2022)
the possibility of collisions between the excavator and people.
This system comes standard on the PC200-11 model, which Komatsu began selling in December 2019.
Concerning the conventional models already equipped with KomVision as a standard feature, customers canupdate the software and retrofit their existing machines*2. With this new system, Komatsu will continue toexpand support for workplace safety as its goal.
We have expanded the number of models equipped with the “KomVision Human Detection & Collision
Mitigation System” and started to install the system as a standard feature on new 7-ton and 30-ton classhydraulic excavators in 2022.

87

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

The “KomVision” bird’s-eye-view camera system isused globally for hydraulic excavators, dump
trucks, wheel loaders, and motor graders. In 2023,
we launched the PC950-11, a large hydraulicexcavator equipped with this system.

PC950-11 with the “KomVision” bird’s-eye-view camera
system as a standard feature.

Human detection structure of KomVision]
1.All-around machine monitoring with 4 cameras and a monitor
Four monocular cameras capture all-around views of the machine, which are shown on the monitor. The
operator can select right, right front, left or rear views.

2. Alerting with buzzer and stopping the machine when people are detected
When human are detected inside the detection or stop-controlled area, the system not only displays markers(yellow or red circles) on the monitor, but also alerts the operator with a buzzer.

*1 Equipped as standard on the PC200/200LC-11, PC210/210LC-11*2 Limited to the models equipped with KomVision for hydraulic excavators. Changing both cameras and software may be needed insome cases.
88

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

This system is not a device designed to mitigate collisions or detect human under all conditions.
There are limitations on the performance. Accidents are possible when the operator depends too heavily on the system or relies upon
it in inappropriate situations. Never rely solely on this system to avoid collisions.
Before using this system, be sure to read the operator’s manual, and understand and use the system correctly.
This system is not a device to prevent the operator from careless operations, such as operating while looking aside.
This system does not stop the machine’s operation when the machine is travelling or swinging at a high or medium speed, or when thework equipment is in operation.
The system does not work when work-intended human are located in front or in the working area of work equipment or outside ofcamera-detectable areas.
The system may not be able to correctly detect people, depending on the conditions of the detection-intended object (e.g., running,squatted, wearing clothes in colors and tones which are not distinguishable from the surroundings), the conditions of the cameras(something attached on the lens, foggy, etc.) and the conditions of worksites (bad weather, dark, against the light, at night, steamy
and smokey, etc.).
Ensure a safe working area around the machine first and then operate the machine, because the system might stop the machinesuddenly and put the machine in unstable positions when it is engaged in lifting and traveling, working on steep slopes, or working on
slippery surfaces or soft ground. Turn off this system before loading on or unloading from trailers, because the system might stop themachine suddenly, putting the machine in unstable positions.

Improved safety through automation, autonomous operation, and remote control
The acceleration of growth through innovation is one of the key activities of Komatsu’s mid-term
management plan. In this area, we engaged in automation, autonomous operation, electrification, andremote controlling of construction, mining and utility equipment (small machinery), while also working torealize digital transformation of construction through both physical aspects (increased automation andsophistication of construction machinery) and non-physical aspects (optimization of customers’ construction
operations), thereby realizing safe, highly productive, smart and clean workplaces of the future withcustomers. The Autonomous Haulage System (AHS) for unmanned dump truck operation has alreadylaunched in the market, and a cumulative total of 43 units of the AHS are in operation as of March 31, 2022. In
addition, we are promoting remote control operation of the PC7000-11 hydraulic excavator for mining sites.

PC7000-11 hydraulic excavator performs loading
operations to Innovative Autonomous Haulage Vehicle

Console for remote operations

89

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Quality assurance - Our responsibility to customers Komatsu's commitment to quality and reliability is encapsulated within the fundamental principle of“Monozukuri” (manufacturing competitiveness). With this in mind, we are dedicated to maintaining aportfolio of first-class products-both hardware and software−that builds on customer satisfaction. Our basic
managerial policies have a strong focus on customer-centricity, creating a manufacturing ecosystem thatplaces customer satisfaction at the forefront of its priorities. We maintain the standards of quality that havebecome an integral part of our organizational culture through a continuous process of assessment andrefinement that takes place across all areas of our production process.
Our quality management systems touch on a number of specific fields, such as the global environment,
quality assurance, and the education and training of our personnel. We also evaluate our performance inthese areas using a number of key performance indicators.

Our basic approach to quality assurance
We ensure user satisfaction by providing products that meet user needs and effectively conducting support
activities to make sure that such products fully function, in cooperation with affiliates, cooperatingcompanies, distributors, dealers, and all other Komatsu entities across all activities from planning,development, production, sales, to after-sales service.

Mechanisms for quality assurance
Komatsu employees across all areas of our operations, from product planning to development,
manufacturing, sales, and after-sales service, work together as a single cohesive unit to ensure that the
products we develop are safe, innovative, and of high quality. Our unique “monozukuri” system enables thecreation and subsequent introduction of highly competitive DANTOTSU products into the market, whilst
maintaining our significant competitive advantage through goods and services with a wide array of
substantial features.
Keeping in line with our commitment to product quality and innovation, a variety of meetings are held at
each stage of the development and manufacturing process in order to ensure that our offerings are of thehighest possible quality. Through this meticulous step-by-step process, the product's features are enhanced
and refined until it meets the high standards that we adhere to.
Through such approaches, the company is able to strengthen safety assurance and satisfaction for customers
while simultaneously providing products and services that take the global environment into account andcomply with both international specifications and the regulatory requirements of individual countries.

90

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Structure for quality assurance
The majority of Komatsu's product portfolio is made up of manufacturing equipment (construction andmining equipment, utility equipment (compact machines), forest machines, industrial machinery and others)
that lend value to customer enterprises through enhanced rates of operation and productivity. In order toensure optimal user experience, Komatsu sales agents engage with customers on both a pre-sale and postsale basis to provide advice, conduct maintenance, and collect feedback. This collated information is thenrelated back to the relevant Komatsu divisions for evaluation and, if it should be needed, subsequent followups or remedial actions.
Komatsu also maintains comprehensive databases on market information regarding product quality.
Company staff are able to utilize this wealth of information to ensure the rapid resolution of quality-related
issues, should they be raised.

Using ICT to support customers throughout the product lifecycle
Komatsu uses ICT-based remote vehicle management systems in order to track the current status of avehicle's “health”, its operating status, and other relevant information metrics. The Komatsu Tracking System(Komatrax) is used for conventional construction equipment, while the Komatsu Tracking System Plus
(Komtrax Plus) is used in relation with larger mining equipment.

Quality assurance activities at the global level
By fully implementing our quality assurance systems on a global level, Komatsu is able to ensure that its
products meet a standardized level of high quality across all countries of operation. Regardless ofgeographical location, our products are subject to strict, uniform standards in relation to technical drawings,
manufacturing systems, inspection methods, information collection, and quality management.

91

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Komatsu has a number of manufacturing facilities that it refers to as “Mother plants”. These plants haveproduct development capabilities and serve as the central hub for global product development initiatives
using cutting-edge technologies and techniques. Any form of progress or advancement that is conceived at a
“Mother plant” is immediately disseminated to other Komatsu manufacturing locations around the world,
creating a uniform ecosystem that promotes technological development and enhances product quality.

DATA
Trends in the claim expenses to sales ratio

Standards for product safety
Safety and customer trust are at the forefront of all our quality assurance activities. In line with thisdedication, Komatsu has formulated a number of Product Safety Standards and associated principles that all
employees are expected to comply with in the execution of their duties. This enables us to live up to ourestablished reputation by delivering products that exceed customer expectations in terms of safety, quality,
and longevity.

Information system for product safety
While we have utmost confidence in the safety of our products, Komatsu is nonetheless aware of the fact that
potential issues could arise in the course of their usage. In order to facilitate a rapid response to any
problems that occur, we have established an information system that deals exclusively with product safetyconcerns.
The system executes a consistent process of education and refinement, making constant improvements andallowing employees at all levels to respond quickly to problems without delay. Using the system,
the company-wide product safety committee is able to (1) assess the cause of the accident and subsequent
procedures to be taken, (2) contact the relevant governing authorities, and (3) establish a system thatenables the best course of action, including decisions on remedial measures, such as product recalls, to be
carried out promptly by top management and other relevant personnel.

92

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Providing product safety information to customers
Komatsu meets legal requirements for the provision of safety information through (1) information on
products or in user manuals, (2) direct explanations by pre-sale and post-sale by sales dealer personnel, and(3) consultations with pre-sale and post-sale service dealer. In addition to this, we provide further
engagement on a case-by-case basis, with engineers or upper-management visiting customers whennecessary.

System for dealing with recalls
Komatsu strictly oversees compliance with legal requirements. Should a defect be found in its products, thecompany initiates prompt correction measures and moves forward with proactive information disclosure,and strive to ensure safety in the market.

Procedure regarding recalls

1. Obtain defect information from the market
2. Proposal for rectification of the situation based on information regarding the defect; decision regarding
what measures the company will take toward the market
3. File a notice with relevant authorities as provided under the law
4. Inform customers through appropriate channels
5. Take appropriate corrective measures including, for example, repairs, replacements
6. Grasp the progress situation of the corrective measures
93

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

System to deal with recalls appropriately

1. Strengthening of information collecting systems on product quality in the market
2. Promotion of technical verification of the problem involved in the recall and timely decision making
3. Promotion of early resolution in compliance with laws and regulations (notification to authorities,
information disclosure, recall collection, etc.)
4. Grasp the progress situation of the corrective measures
5. Regular auditing of recall-related operations
Komatsu strictly oversees compliance with legal requirements. Should a defect be found in its products orservices, the company initiates prompt correction measures and moves forward with proactive information
disclosure.

94

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Outline of procurement policy and supply chain
Our business partners are important members of our value chain, who supply the materials, parts andcomponents necessary for the continued operation of our manufacturing enterprise. At Komatsu, we aim tobuild a Win-Win relationship with our business partners by making interactive efforts under a relationship ofmutual trust. Along with the expansion of our global operation, our supply chain has also been expanding allover the world. Taking seriously the recent gain of momentum for the spread of CSR in the overall supply
chain, we are working to realize CSR procurement globally by being proactive in providing intense support
for the CSR initiatives of our business partners.

1. Basic policy for procurement
Komatsu's procurement policy is based on the philosophy of aiming to build a Win-Win relationship with ourbusiness partners, who are on an equal footing with us, and encouraging each other. The policy aims toevaluate and select suppliers in a fair and equitable manner from a SLQDC (Occupational health & Safety,
Compliance with the Law, Quality, Production capacity & delivery and Cost competitiveness) and ESG
perspective.
Komatsu has established CSR Procurement Guidelines and Green Procurement Guidelines to serve as
evaluation criteria for selecting suppliers and evaluating ongoing transactions. These guidelines have beenposted on our website. In addition to making these guidelines known to our suppliers, we provide thenecessary support and guidance to ensure their business activities align with our requirements. Our support
and guidance include the following examples:
Providing employee education curriculum and training on relevant laws and international rules.
Offering support to help suppliers build a promotion system (e.g., formulating operation rules), auditing
and advising on the operation status.
Awarding prizes and rewards to business partners that have made significant progress in CSR activities.

2. CSR procurement guidelines
To promote CSR activities in the supply chain, we established and released the CSR Procurement Guidelines
in 2011. In accordance with international guidelines such as ISO 26000 and the 10 principles of the United
Nations Global Compact, the guidelines specify the items we would like our business partners to address,
while reflecting the concepts of Komatsu's Worldwide Code of Business Conduct and the Komatsu Way.
The guidelines cover various ESG issues, including corporate governance, compliance, environmental
protection, human rights and labor, corporate ethics and social contribution, and coexistence with local
communities. Efforts to comply with these guidelines are incorporated into the business contracts weestablish with our business partners. In the unlikely event a clear violation of these guidelines is discoveredat a partner company, and appropriate corrective measures are not taken within a reasonable period of time,
we may suspend or terminate our business with that company.
95

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Request to business partners regarding the guidelines
In accordance with the Komatsu Code of Worldwide Business Conduct (established in 1988), all companies of
the Komatsu Group have worked together in pursuit of thorough compliance. Moreover, Komatsu has
focused on corporate social responsibility (CSR) in its business management with the aim of coexisting withsociety and achieving sustainable growth. As part of this effort, Komatsu has participated in the Global
Compact, a voluntary principle of action in relation to “human rights, labor, environment and prevention ofcorruption” advocated by the United Nations, since November 2008 and has also expressed its position as a
global enterprise on critical issues confronting international society faces.
Against this backdrop, ISO26000 was officially issued in November 2010 to provide international guidance onsocial responsibility. Komatsu sincerely reacts to the issues set forth in ISO26000 and will exercise leadershipso that social responsibility will be borne throughout the entire value chain.
According to the Komatsu Code of Worldwide Business Conduct, we shall “seek to establish long-lasting
stable relationships on the basis of mutual trust” by considering business partners to be important partnersof the Komatsu Group. The revision in April 2011 added statements that we shall encourage business
partners to follow the spirit of Komatsu Code of Worldwide Business Conduct and that the criteria for theselection of business partners shall include their compliance with rules of business society.
The CSR Procurement Guidelines contain a list of practices recommended for our business partners in linewith the basic policy above, covering compliance and CSR. Since its establishment in 2011, we have revised it
to address new issues that meet the social needs. Companies of the Komatsu Group are kindly requested totake note of and incorporate the guidelines into their management principles and unfailingly promote CSR.
Moreover, we hope that these companies make similar requests to their suppliers.
April 1, 2021
Goro Senda, President of Komatsu Procurement Division

Komatsu group CSR procurement guidelines(Established on August 30, 2011; Revised on April 1, 2019 and on April 1, 2021)

1. Operations for sound management(1) Build a system or operational structure designed to meet various risks.
(2) Establish legal and transparent decision-making processes concerning management.
(3) Conduct appropriate accounting procedures, tax filing and settlement of accounts.
(4) Place importance on communication with stakeholders (customers, shareholders, business partners,
employees, etc.).
(5) Ensure that top management will be notified promptly when any abnormal condition develops and thatyour company will be able to promptly and accurately respond to the situation(s).
(6) Fulfill accountability to society through active disclosure of corporate information.
(7) Properly handle the personal information of customers, business partners and employees. Take
appropriate measures for information security to ensure that the confidential business information
provided by Komatsu or by business partners will not be leaked, lost or destroyed.
(8) Create an effective BCP so that, even in the event of large-scale natural disaster, infectious disease
pandemic or any other emergency, we can appropriately take initial measures to ensure the safety of
employees, quickly restore business operations and fulfill our responsibility to supply customers withproducts.
96

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

2. Thorough enforcement of compliance(1) Engage in business operations while complying with the laws and regulations, as well as the rules of thebusiness community in the countries and regions where we conduct business operations. In addition,
make efforts to respect internationally accepted standards.
(2) Define a code of conduct, comprising company rules, under the leadership of senior management, anddevelop a corporate climate that places top priority on compliance.
(3) Establish a compliance regime, in accordance with the scale and characteristics of the company, thatprevents the company, executives, and employees from engaging in illegal conduct, and promptly
addresses situations where issues have occurred (e.g. a whistle-blowing system).

3. Product safety, QCD and technology innovation(1) Comply with the laws and regulations concerning product safety and deliver products and services which
will offer safety and peace of mind to customers.
(2) In addition to maintaining the quality and cost competitiveness of products and services which yourcompany delivers to customers, stand by the agreed upon date of delivery and supply your products in astable manner.
(3) Establish a quality management system and make efforts to maintain and improve it.
(4) Constantly engage in technology development and provide innovative, safe and environmental-friendly
products and services.

4. Considerations for the environment(1) Continue efforts to reduce environmental impact resulting from business operations.
(2) Appropriately manage chemical substances contained in products.
(3) Build up environmental management systems such as the ISO14000 series and "Eco Stage."

5. Measures to respect human rights, appropriate labor conditions and occupational safety andhealth(1) Respect human rights including the rights to freedom of association and collective bargaining.
(2) Never get involved, directly or indirectly, in any child or forced labor.
(3) Create a work environment where there is no discrimination or harassment in any aspect of employment.
(4) Respect the rights of workers, through payment of fair wages and proper working hours management.
(5) Establish a system for occupational labor health and safety, under the leadership of top management, andcreate a working environment where all employees can work safely and healthily.
(6) Establish fair and equitable human resource system, and pay attention to human resource development
and employee education as well.
(7) Give consideration to improving communication between top management and employees.

97

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

6. Fair business practices(1) Comply with all related laws and regulations and engage in free and fair competition and business
transactions.
(2) Respect intellectual properties of other parties and work to prevent infringement thereof.
(3) Never accept inappropriate cash, gifts or other favors from any civil servant or stakeholder (customer orbusiness partner) either domestically or internationally.<(4) Carry out proper foreign trade transactions (goods and technologies) while complying with the related
laws and regulations.
(5) Never have any relationship with antisocial forces or groups.

7. Social contributions and co-existence with the local community(1) Engage in social contribution activities based on your company's management principle(s) and support
employees' volunteer activities.
(2) Place importance on co-existence with local communities which is the foundation of your business, andproactively support the growth of local communities.

8. Spread of the guidelines throughout the entire supply chain(1) Encourage business partners of the company to observe the items stipulated in the guidelines. Make
efforts to encourage the spread of these guidelines into the entire supply chain.
* These guidelines will be revised as needed.

3. Green procurement guidelines
The Green Procurement Guidelines are a compilation of content supplements to the environment-related
issues included in the CSR Procurement Guidelines. Komatsu established the Komatsu Earth andEnvironment Policy in 1992 and declared that they would engage in environmentally conscious businessactivities to realize a sustainable society.
By using these guidelines, we preferentially promote environmentally-conscious procurement, of the raw
materials and procured components/parts, which are important elements in our production. It also prompts
business partners to engage in their own environmental management and environmental impact reduction
activities.
Komatsu green procurement guidelines(1.25MB)
In relation to these guidelines, we have also conducted the following surveys in our supply chain.

98

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index(1) Conflict minerals (U.S. Dodd-Frank Act)
In line with our corporate social responsibilities, Komatsu does not condone the use of conflict materials,
such as tin, tantalum, tungsten, and gold (3TG), produced by the Democratic Republic of Congo or its
neighbors. We have informed our business partners of this policy within the Komatsu Green Procurement
Guidelines. Working hand-in-hand with suppliers, we conducted a survey on the content rate of conflictminerals and country of origin (refiner) for each part using the template (JAPIA sheet) of the Japan Auto Parts
Industries Association (JAPIA) from 2011 to 2014. We found that some electronic parts and lamp electrodes
contained tantalum and tungsten, and solder materials for radiators contained tin. However, the weight ofthe subject minerals in the relevant parts was very low, and it was determined that no conflict minerals wereused. Since this survey, we have continued to refine our CSR SAQ and human rights due diligence surveys toinclude questions to investigate essential 3TG and similar items in some of our products and confirm noconflict minerals have been used. These inquiries are based on the Responsible Mineral Assurance Process(RMAP). We will continue to investigate these important CSR matters in accordance with the RMAP. In theunlikely event the use of conflict minerals is discovered at our company or any of our business partners, wewill work to promptly switch to products procured from smelters certified by RMI.

(2) REACH regulation
The REACH regulation governs the registration, evaluation, authorization and restriction of chemical
substances in the EU. Companies that manufacture target chemical substances in the EU or export finishedproducts containing target chemical substances to the EU must comply with this regulation and apply forregistration and authorization when the annual use of target chemical substances exceeds certain standards.
Substances subject to the regulation, especially those of Very High Concern (SVHC), are additionallydesignated annually. As with conflict minerals, Komatsu surveys the content of the regulated substances ineach component using JAPIA sheets for its business partners and reports the results to the EU authorities.
Furthermore, Komatsu is working with its business partners to reduce the use of SVHCs and switch toalternative substances that have been verified as safe.

99

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

4. Component category and procurement policy
Komatsu's general production policy is to manufacture products directly within the area of demand. We have
48 of our 60 plants related to construction or mining equipment overseas.
Concerning components, parts, materials and other items, we are promoting local procurement proactively
based on production and procurement policies that we set in accordance with the characteristics of each.
Above all, for Components B and C listed below, we are expanding cross sourcing between regions to
respond flexibly to changes in the international trade environment such as exchange rate fluctuations, FTA
and EPA, and import/export regulations aiming for globally optimal procurement.
Policy on Production and Procurement of Components and Parts for Construction and Mining
Machinery
Category

Definition

Production andprocurement policy
Permanent development
and production in Japan(supply from Japan to theworld)

Examples of parts

Engines, transmissions,axles, hydraulicequipment, and electronicequipment
Floor parts of cabin,Components that we need to purchasecooling parts,
Optimal procurement
intensively
fromcertified
suppliers
fromparts,
Components B the viewpoints of functions, quality, and from 2 or 3 regions in the undercarriage
cylinders,high-pressure
world
investment
hoses, tires, rims, andoperator's seats
Parts with relatively low levels ofThick/ thin sheet-metal
technologicaldifficulty,
whichshouldparts, machined parts, andComponents C desirably be produced or procured close to Local procurement
cast and wrought products
the assembly plantas materials
components for differentiation that
Components A Key
determine product quality and functions

The breakdown of procurement in monetary terms in the construction and mining equipment business of
the Komatsu Group in FY2022 is shown below.
Components Types by Percentage of Procurement Origin of components by Percentage ofin Monetary Terms
Procurement in Monetary Terms

100

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

5. The Komatsu Midori-kai & supply chain
In the construction and mining equipment business, Komatsu has agreements with approx. 2,700 business
partners (primary suppliers) all over the world. From amongst them, we have established the Komatsu
Midori-kai which consists of particular business partners who are deemed especially important or critical for
the Komatsu Group. The members are selected through evaluation from the viewpoint of management
culture including the management philosophy of top management, SLQDC* performance including
development and proposal capabilities in business transactions with Komatsu, the level of importance of the
supplied items in light of our procurement strategies and technologies, the track record and the size ofbusiness transactions with Komatsu, and other elements. At present, the Komatsu Midori-kai operates in five
regions -- Japan, China, Thailand, North America and Europe. Procurement from members of the Komatsu
Midori-kai account for approx. 73% of total procurement in monetary terms. The Komatsu Midori-kai in eachregion collaborates with Komatsu's manufacturing plants in promoting activities that take advantage ofcharacteristics of the region. It also holds regular meetings to promote understanding of Komatsu's
businesses and activate communication between Komatsu's executives and top management of member
companies. Many overseas member companies, as well as those in Japan, participate in the general meeting,which is held in November every year. At this meeting, executives of Komatsu give business briefings, andexplain our global procurement policy and priority activities. In Japan and China, as a measure to support
the improvement of member companies' competitiveness, the Komatsu Midori-kai divides its members intosome groups (subcommittees) based on the items they supply, and promotes improvement activities incooperation with Komatsu by selecting common themes such as safety, the environment and cutting-edge
production technology. Information about actual improvements that have been made is shared bycompanies in the same group to promote the horizontal spread of information.
* SLQDC: abbreviation for Safety, compliance with the Law, Quality, Delivery and Cost

General meeting of Midori-kai (Japan)

Inaugural ceremony of Midori-kai in Thailand

101

ESG Databook 2023

Management of

Sustainability policy

With people

sustainability

With businessWith the planet

Data

Socialcontribution
activities

Index

Detail of critical suppliers
Area

Midori-kai

Non Midori-kai

G.Total

Japan
China
ThailandUSAEU
sub total
Japan
USA
EU
Indonesia
India
Vietnum
Philippines
sub total

Number of Critical Suppliers
Sub-contracted*1
Proprietary parts*2
HighlyHighlyTrading
Total Invested by depend on Invested by depend on
Bigbusinessbusinessrm,
Komatsu
Komatsu
enterprise Material
w/tw/t
Komatsu
Komatsu
156
6
87
2
7
43
11
60
2
34
1
4
14
5
31
18
1
10
2
44
1
15
1
19
8
42
3
37
2
333
9
157
4
12
123
28
1
1
1
1
1
1
4
1
1
2
18
4
14
4
3
1
1
1
30
2
8
0
1
17
2
363
11
165
4
13
140
30

*1 Business partners who manufacture goods based on drawings and/or specifications from Komatsu (mostly medium and small
enterprises)*2 Business partners who manufacture goods based on their own drawings and/or specifications (mostly major companies)

Classification of critical suppliers (FY2023)
Category
1 Total Tier 1 suppliers
2
Level-3
Critical
3 suppliers*
Level-2
4
Level-1

Number of Company
2,717
363
193
15

100%
13%
7%
1%

Annual Purchase amount

100%
73%
63%
8%

* Number of upper "Level" includes those of lower "Level".
Level-1: Critical suppliers of which shares Komatsu G. invests in.
Level-2: Critical suppliers who depend highly on business with Komatsu.
Level-3: All of Critical suppliers.

102

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Overview of supply chain management processes
1. Prior to commencing a transaction

When determining whether to start a business with a new business partner, we conduct a preliminary
evaluation of the company by researching public information, performing interviews, and conducting on-site
audits. We also utilize the new supplier evaluation checklist to assess both the basic SLQDC criteria and ESG
aspects of the company.
Understanding of the aforementioned CSR Procurement Guidelines and Green Procurement Guidelines arealso included in the evaluation items.
Weight of points for new supplier evaluation by item
Category
Evaluation item
policy, organization, financial
General management Management
structure, employee training
Assurance system, on-site management, first article
Quality
management
Planning, progress management, delivery
Production capacity
management system, procurement capacity,
outsourcing management
Technological development, cost, facility
Competitivenessmaintenance capability
Occupational health and safety, environment,
ESG
compliance, export control, information security
Total

Weight (%)
28%
12%
24%
8%
28%
100%

2. Screening
We conduct regular risk assessments using specialized external databases to screen new and existing
business partners for compliance purposes. This process includes verifying whether suppliers are associatedwith high-risk customers, regulated countries, items, and technologies in terms of export control andwhether they have any connections with or involvement in anti-social forces. We utilize public informationand quarterly surveys to evaluate the financial and management status of potential suppliers. If companies
of concern are identified, we employ credit reporting agencies to conduct further verification. In terms of CSR
and ESG, we regularly verify compliance with occupational health, environmental laws and regulations,antimonopoly acts, subcontracting laws, and immigration acts through government agencies and related
local authorities' websites. As part of our risk management processes for raw material procurement in theconstruction machinery industry, we also continue to conduct investigations on the countries of origin of
conflict minerals.
103

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Risk assessment process for business partners

104

ESG Databook 2023

Sustainability policy

Management ofWith people

sustainability

With businessWith the planetSocial

Data

Index

contribution
activities

Major screening and implementation status for suppliers
Target (○ to be implemented)

Category No

1Compliance23Management
4

ESG

5

BCP

6

Objective

Content

Implementation status in FY2022*1
Number of
Number of companies
suppliers (Tier 1 Other Tier 1
Measures to Frequency Criticalcompanies
with
suppliers
only)
suppliers
Number of subject to completedcheckorcompanies individual
plannedfollow-up
corrective
Level-1 Level-2 Level-3 Japan Overseas
actions

Check whether thecompany falls under oris related to the list of Chaser search Once a
Determine companies of〇〇〇companies of concern in the CISTEC year
concern for export control.
published by Japanese database.
and overseas
government agencies.
Verify throughCheck whether theDetermine
company falls under or public
Twice aassociation〇〇〇
with anti-social
is related to anti-social informationyear
andspecialized
forces.
forces.
agencies.
Public financial
information
reports
CreditConfirm management andprivate As needed 〇〇〇investigation and financial status. fromcreditConfirm
investigation
management
agencies.
status.
SurveysonprofitandPeriodicloss, employment,
survey of
Questionnaires Quarterly〇〇
operation rate,businessand overall
conditions investment,
management.
Search for casesof violations
announced by
the LaborStandards
Check for violations of labor, environment, antitrust,〇〇〇
Bureau, local Monthly
subcontracting, immigration, and other laws andgovernments,(Japan) (Japan) (Japan)
regulations.
Japan Fair
Trade
Commission,
Immigration
Bureau, etc.
Check hazard
maps publishedby the Ministry
Identify any risk of natural disasters (flooding, tsunami, of Land,
Once every 〇〇〇landslide, etc.) based on business location.
Infrastructure, 3 years
Transportation
and Tourism,
and Aqueduct.

〇

〇

〇

〇

0

-

2,235

0

-

2,235

3

3

2,235

2

2

1,385
(Japan)

11

11*2

〇

〇

〇

2,176

〇

*1 If annual surveys are not performed, the most recent survey results are shown.
*2 Includes our response by stockpiling our inventory.

3. Risk assessment / Audit and support for corrective and improvement
activities
To address any potential risks identified in the supply chain, Komatsu's experts conduct risk assessments
and audits for individual areas of business activities based on the importance of our business partners. Theserisk assessments and audits are conducted through desktop surveys such as self-assessment questionnaire,and on-site surveys. The table below shows the content, scope, and implementation status of theassessments and audits in FY2022.
We report to our business partners on the apparent and potential risks identified through these risk
assessments and audits and request them to implement appropriate corrective measures within areasonable period. If it is deemed difficult for the subject company to take corrective measures
independently, Komatsu's experts provide guidance and support upon request from the company
concerned.
105

ESG Databook 2023

Sustainability policy

Management ofWith people

sustainability

With businessWith the planetSocial

Data

Index

contribution
activities

The Procurement Division reports the status and results of the implementation of these processes, especiallyfor risks considered significant, to Komatsu's top management monthly, along with the details of any risks
deemed to be particularly important and the progress of corrective measures.
We then feed the results of these assessments and audits back into our actual purchasing policies tomaintain consistency between our supplier code of conduct and purchasing activities.
In parallel with these individual corrective activities, we open and provide various in-house education andtraining programs and e-learning materials to support our business partners in improving theirunderstanding and responsiveness in their CSR activities.
We also encourage them to obtain official certification from external third-party organizations to improvetheir environmental management and health and safety promotion systems.
Major individual risk assessments and audits of business partners
Form ofsurveyCategory

Target (○ to be implemented)

Desktop Onsite

GeneralManagement○
and QCD

2

○

○

○

5

6

○

○

3

4

○

○

Content

Measures tocheck

Freuency

Critical suppliers (Tier
1 suppliers only)

Other Tier 1
suppliers

Level- Level- Level- Japan Overseas
1
2
3

〇 1

○

Complianceand ESGNo.

Implementation status in FY2022

7(1) Interaction among
company leaders at Meeting
Twice a year
regular meetings.
Strengtheninteractive(2) Promote activities〇 〇 〇communication to improvethrough Midori-kai productivity, energy Plant visit,
briefing, all-year
activities
conservation, etc. activity
etc.
throughsubcommittees.
Evaluate annual
SLQDC performance KPI result,
Corporate
and factors related to management Annually〇 〇evaluation
corporateinterview
management.
Quality audit andheat treatment Confirm quality
Written survey, Annuallyaudit (only forsystem and onsite audit,〇 〇 〇companies with assurance
controlvoucher check, (designatedcompanies)
safety parts and processetc.
heat treatment status.
processes)
Confirm monthly
survey,〇 〇Monthly operation operation capacity Written
Monthly Japan
capacity check
forecast and the way managementJapaninterview
to forecast.
Identify potential
risks in the areas ofaccounting andWritten survey,
Compliance risk finance, labor
onsite audit,
Once every 〇(CR) audit on
management,
voucher check, 2 years
important process procurement(subcontracting law), etc.
and information
security.
Survey oncompliance with laws
Survey on theregulations
employment status andQuestionnaire Annuallyregarding〇 〇of overseas
and interview
employmentofworkers
overseas workers(including trainees).
Confirm
organizational
audit
structure to promote Onsite
such as safety
Occupational
occupationalsafetyhealth and safety and health activities, patrol, interview
level assessment compliance withwith
Twice a year 〇 〇(includinglaws management
compliance check) labor-related
andsafetyand regulations, and managers, etc.
evaluation ofactivities.
106

Number ofcompanies
subject toindividual
follow-up

Number ofcompanies
withcompletedor planned
corrective
actions

333

-

-

216

-

-

Number ofcompanies

99

〇

〇

0

0

Heat treatment Onsite audit
audit
337
337

0

166+α(*1)

7

7

7

2

2

99

9

9

99

15

15

ESG Databook 2023

Sustainability policy

Management ofWith people

sustainability

With businessWith the planet

Form ofsurveyCategory

Desktop Onsite○○

Complianceand ESG
○

○

○

○

BCP
○

SocialData

activities

Target (○ to be implemented)
No.

Content

Measures tocheck

Freuency

Critical suppliers (Tier
1 suppliers only)

Other Tier 1
suppliers

Level- Level- Level- Japan Overseas
1
2
3
Mandate acquisitionof third-party
certification for
Written survey,
environmental
audit,
management, and onsite
withcheck and evaluate Interview
management Annually
the status ofandcompliance withenvironmental laws environmental
and regulations and officers, etc.
the status ofactivities.
Self-assessment ofOnce every
9 CSR SAQ survey overall CSR using a
3 years
checklist.
Self-assessment
focused on humansurvey onrights andQuestionnaire Once every
10 Risk
human rights
occupational health and interview 2 years
and safety using achecklist.
Self-assessment on
Information
the status of cyber
Annually
11 security selfassessment
security measures
Identify the risk of damage to suppliers
Check the damage through the supply chain risk
& ability of supply management system (KS-Link) linked tocase ofearthquake and typhoon information, As needed
12 inoccurrenceofetc. Then, confirm the damage situation
natural disasters & by phone or e-mail, conduct onsite
pandemic
inspections, and provide support for
restoration.

Promotion ofenvironmental
management
system (EMS)
8 acquisition andenvironmental
audits (including
legal compliancechecks)Index

contribution

Implementation status in FY2022
Number ofcompanies

Number ofcompanies
subject toindividual
follow-up

Number ofcompanies
withcompletedor planned
corrective
actions

〇

〇

〇
EMS

Environmental
audit
2

2

2

〇

〇

〇

156

8

8

〇

〇

〇

292

8

8

〇

〇

〇

156

14

14

〇

〇

〇

〇

7,662
Including Tier 2 Numerous Restoration
andsubsequent applicable support 1
suppliers*1 Check with Tier 2 and subsequent suppliers if risk is anticipated.

Examples of corrective action support for business partners
Category No.
Major support
Content
Advance payment, cash payment, etc.
of excess inventory, advanced ordering &1 Cash management support Purchasereceiving, etc.
Purchase of production equipment, lending, etc.
Managementof managers and technical instructors on
2 Human resource support Dispatch
secondment, acceptance of training at our company, etc.
of education and For managers and general employees
3 Provision
training programs

107

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Komatsu group's supply chain management and promotionof CSR procurement
1. Promotion system and human resource development in procurement departments

Komatsu employs a centralized procurement system where the Procurement Division deals with almost all
the components and materials used in multiple plants in Japan. For overseas production, A- and B-categorycomponents as speci ed in the component categories described above are dealt with by the Procurement
Division, and the C components are dealt with by the procurement departments of overseas subsidiaries. In
addition, we have established an overseas procurement center within each site in the U.S., Europe, China,
and Asia to ensure the penetration of the policies of the Procurement Division and ensure the consistency ofthe procurement activities of each overseas subsidiary. We are also using this system for global supply chain
management and the promotion of CSR procurement. Furthermore, we hold meetings to exchange
information with the procurement departments of production-related group companies on a regular basis to
respond to common issues on a group-wide basis.

Categories for the division of roles for procurement
departments

Meetings for the exchange of information with groupcompanies

The development of the procurement sta who will be responsible for
CSR procurement is also an important issue. We have compiled basic
matters that purchasing departments must not forget in promoting
global procurement - in particular, the basic philosophy and code of
conduct that should be kept in mind when working with business
partners -- in the KOMATSU Way (Procurement). In addition, we havebeen facing signi cant changes in laws and regulations of Japan andother countries on business transactions, employment and labor,
environmental protection, export control and other matters.
Responsible persons from the procurement department are required KOMATSU Way procurement
to understand these trends and re ect them appropriately in their daily procurement activities. In 2022,
Komatsu conducted compliance refresher training for a total of 482 managers and other employees in the
procurement division to improve their awareness of CSR procurement and to communicate the importanceof raising awareness throughout the division. At Komatsu, we strive to inform all employees of the trends byproviding group training and e-learning designed for each one of the job classes, from new employees tomanagers.

108

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

2. Partnership declaration

The Partnership Declaration is our voluntary code of conduct andstates that a large company, or parent enterprise, shall partner andcooperate with small and medium companies with the aim offacilitating their coexistence and coprosperity and shall, in fair dealing
with the small and medium companies, enhance the added value ofthe supply chain overall.
Logo of Partnership Declaration
Komatsu announced the declaration in August 2020, expressing its
support for the activities implemented by the Cabinet O ce, the Small and Medium Enterprise Agency anddi erent economic organizations.
Komatsu complies with the rules and regulations stated in the Act against Delay in Payment of Subcontract
Proceeds, Etc. to Subcontractors and in the promotional standards of the Act on the Promotion of
Subcontracting Small and Medium-sized Enterprises. Moreover, Komatsu will continue to help its business
partners to become organizationally stronger by providing support for their e orts to enhance productivity
and streamline work with the use of ICT and by providing training programs.
In July 2022, the basic principles (Article 3) of the Act on the Promotion of Subcontracting Small and Mediumsized Enterprises were revised. In response, Komatsu has issued a letter to all domestic Tier-1 suppliers,
including sub-materials suppliers, encouraging them to re ect uctuating raw material, energy, and laborcosts in product prices, and is actively promoting the optimization of purchasing prices. We will continue toregularly discuss pricing with our business partners in 2023 and beyond.
In January 2023, we launched the "Komatsu Global portal," a website for sharing information with ourbusiness partners. This site allows both our employees and business partners to share daily order andproduction data and utilize tools that facilitate data processing and analysis, allowing for the timely
detection of uctuations in production, orders, and demand for intermittent production parts, and for themonitoring of management indicators such as delivery date achievement rates and defect rates. As of May
2023, approximately 1,122 companies use the website. We will continue to increase the website content anduser numbers.
The partnership declaration *only available in Japanese（221KB）
Please access the following website to read the Partnership Declaration.
National association of small and Medium enterprise promotion organizations *only available inJapanese109

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

3． Komatsu's whistleblowing system for suppliers

At Komatsu, we launched a whistleblowing system for suppliers in March 2017 to accept whistleblowing
reports from suppliers on acts in procurement activities of the Komatsu Group which are violating or alleged
to be violating laws and regulations. Matters reported via dedicated contacts, which we set up inside thecompany, are handled by a department in a neutral position. This department investigates and veri es facts
to take corrective measures promptly. We have pledged to ensure that business partners who submit
whistleblower reports do not receive disadvantageous treatment because the report has been made.
Komatsu's whistleblowing system for suppliers(171KB)
Changes in reported cases

4. Risk Assessment in the supply chain

Procurement from business partners accounts for a substantial percentage of our production costs. It
reaches nearly 90% in middle-sized hydraulic shovels, a typical piece of construction machinery. Therefore,
for the stable continuation of our business activities, it is essential to identify and respond to risks in our
supply chain at an early stage. There are a wide range of risks in the supply chain, including the managementof business partners, their SLQDC status, natural disasters, pandemic, international trade con icts, andimport/export regulations. Komatsu visualizes risks through regular risk assessments that we conduct,
particularly for critical suppliers, and we are carrying out activities to reduce those risks. In the construction
machinery industry, the recovery in demand in the aftermath of the COVID-19 pandemic has been evident inJapan and abroad since the third quarter of 2020, and the production sector continues to operate at highlevels. Meanwhile, from April 2020, the overtime work limit regulations have been applied to small andmedium-sized enterprises as part of the Work Style Reform in Japan. Komatsu monitors the load status ofapplicable Midori-kai companies in Japan on a monthly basis. Companies at risk of falling foul of theregulation are identi ed, and appropriate measures are implemented; for example, leveling production byreviewing production plans and supporting production at other companies. From 2024 onwards, theovertime work limit regulations will apply to the transportation industry as well. It is anticipated theseregulations will lead to a nationwide shortage of drivers. In 2020, Komatsu announced its declaration ofvoluntary action to improve logistics based on mutual understanding and cooperation with suppliers andlogistics companies. It also joined the "White Logistics" promotion campaign promoted by the Ministry ofLand, Infrastructure, Transport and Tourism. We are working to achieve sustainable logistics by utilizing
modal shifts to reduce long-distance transportation, optimizing the layout of loading and unloading areas toreduce driver work hours, and setting appropriate freight rates.

110

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planetSocial

Data

Index

contribution
activities

Examples of hearing survey of business partners' overtime status
CompanyName

36 Agreement

NumberofOvertime

Operation Degree (after measures)
Number of direct workers
45H/
Overtime
6
monthCompnay K

Overtime
Max
Overlimit
Count
Consecutive
NumberStarting
Month

80H/
month
6 times/year
Up to 6
times
April

5
4
3
2
1

Operation Degree (after measures)
Number of direct workers
42H/
Overtime
6
monthOvertime
70H/
5
Max
month

Company T Overlimit

Count
Consecutive
NumberStarting
Month

6 times/year
Up to 6times

3

January4

Hr/dayNumberofpeopleHr/dayNumberofpeopleResult 2021 2021 2021 2021 2021 2021 2021 2021 2021
by /4
/5
/6
/7
/8
/9 /10 /11 /12
2020/3
Result Result Result Result Result Plan Plan Plan Plan
232
2

2.1
236

2.6
234

2.5
257

2.4
252

1

17

11

21

20

24

27

12

35
42
2.5
66

24
36
2.6
74

24
36
2.3
79

2

2

3

1

2

7

6

8

8

6
16
34
49

3.6 3.8 2.5 2.4 2.3
262 (286) (286) (286) (286)

72
2.5
65

25
49
2.2
64

15

18

16

16

16

16

2

13

11

8

8

9

6

1

16

15

13

18

15

15

2.4
(81)

2.4
(81)

2.5
(81)

2.5
(81)

To respond to natural disasters which recently haveoccurred frequently and become diversi ed, we
have begun to operate a supply chain management
system in Japan linked to disaster information fromthe Japan Meteorological Agency. This is aimed atquickly inspecting damage to our business partners
and assessing the impact on our supply chain after
a natural disaster, such as an earthquake, tsunami,
or typhoon. We have built a database of locations
and production items with over 20,000 sites
managed by 7,662 business partners, including
secondary and subsequent suppliers, thereby
visualizing the risks of interruption in product
Epicenter of the Northern Osaka Earthquake in June 2018supply that can be expected to be caused by aand the Cooperative Company Distribution Map
disaster. This enables us to take focusedcountermeasures promptly. In the event of a disaster, we rst check the damage to our suppliers at high risk
which have been assessed through the system. Where necessary, we dispatch security maintenancepersonnel to the companies to support their activities for the prompt recovery of production.
In 2019, our supply chain was greatly impacted by the ooding of rivers caused by Typhoon Hagibis (No. 19),
which damaged multiple business partners. In light of this, we linked the Komatsu supply chain management
system to the hazard maps released by the Ministry of Land, Infrastructure, Transport and Tourism tounderstand in advance the potential location-related risks faced by our business partners. We have taken
111

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

measures for our business partners with location-related risks; for example, backing up to store welding andprocessing programs and important production data (BOM, tooling lists, production drawings, jig and tooldrawings, etc.), and building up safety stock and securing alternative suppliers in response to the BCP statusof each company. In addition, since 2020, the global supply chain has been severely disrupted due to theshortage of semiconductors in a wide range of industries, COVID-19 lockdown, US-China decoupling anddisruptions in international logistics. Moreover, the reduction in model changeover periods in automobiles
and home appliances has increased the risk of sudden production discontinuation of construction
machinery parts, especially electrical and electronic parts. We have addressed these emerging risks bystrengthening inventory management including at the distribution stage, promoting replacement withstably available general-purpose semiconductors and parts, expanding the scope of pre-orders and forecasts
for critical parts, and accumulating inventory. We are expanding our Asian Procurement Center to further
increase local procurement in ASEAN member countries and South Asia in Spring 2023. We are also
promoting multi-sourcing policy, even in cross-sourcing activity (placing concurrent orders with suppliers in
multiple regions), to reduce the risk of over-reliance on procurement from a speci c region.

Disaster recovery support (lending electric generators)

Disaster recovery support(assisting the centering ofworking machines)

Information security measures in the supply chain are also an urgent issue. In 2021, Komatsu establishedinformation security guidelines for business partners to clarify the standards we require of our suppliers. We
also provided e-learning education to 156 Midori-kai companies in Japan. We are strengthening security
measures throughout the supply chain by asking suppliers to conduct security surveys using self-checksheets and following up on any supplier issues that are identi ed during this exercise.

112

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Implementation status of information security self-check
FY2021
Number of companies
implementing self-check sheets
Number of people engaging in elearning
Number of companies subject toindividual follow-up

DataSocialIndex

contribution
activities

FY2022
156

156

120

117

12

14

5. Awareness building activities to ensure the penetration of CSR into the supply chain

To raise our business partners' awareness of Komatsu's CSR procurement guidelines, we are carrying out
awareness building activities around Compliance and BCP at the Komatsu Midori-kai meetings and monthly
business meeting held in each o ce. In addition, "CSR Report" issued for Midori-kai member companies
shares CSR-related "Everybody's Compliance" articles which are published for the employees of the KomatsuGroup, and information regarding the revision of related laws and regulations in Japan and other countries.
To ensure the further penetration of CSR in the supply chain, in FY2021, we conducted an SAQ survey on CSR
activities using the standard survey tool released by the Global Compact Network Japan (GCNJ), of which
Komatsu is a participant. The survey was designed to gather data from 156 Midori-kai companies. To date,153 companies have submitted their responses. From this data, we can con rm that 95% of the respondentcompanies are aware of our CSR procurement guidelines.
Moreover, in FY2022, as part of our human rights due diligence, we conducted a human rights risk survey
across a total of 292 Midori-kai companies in Japan and overseas. Based on the UN Guiding Principles on
Business and Human Rights and other international norms, we collected responses on a dedicated website
regarding the status of human rights initiatives in 11 categories, including human rights management,
occupational safety and health, and working conditions. To ensure objectivity, the entire survey process fromquestion formulation to results analysis was conducted and overseen by outside experts. We then translated
the survey results into various languages and issued a report to each company to provide them withpersonalized feedback on issues and responses. Based on the results of this survey, we will provide
individual follow-up support to business partners that need to increase their awareness of CSR and humanrights issues.
Japan Midori-kai CSR SAQ self-evaluation results

113

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Implementation status of human rights due diligence
Category
Number of companies surveyed Responses received
Japan
156 143
91.70%
Thailand29
18
62.10%
North
Supplier Midori442147.70%
AmericakaiOverseas*excluding Europe
China
63
31
49.20%
13670
51.50%
292 21372.90%
Question content
Survey items
rights1 Humanmanagement
2 Grievance resolution
and
3 Discrimination
inhumane treatment
4 Child labor
5 Forced labor
Employment and6 employment
relationships
conditions
7 Workingand social security
8 Social dialogue
health
9 Occupationaland safety
Human resource
10 development andtraining
11 Community impact

Number ofquestions

Policy, monitoring, and communication

11

Reporting and consultation system

4

Inhumane treatment and discrimination

8

Child labor, young workers, and student workers
Forced labor (e.g., retaining workers’ passports)

7
5

Employment regulations, employment contracts, andpersonal data protection

7

Working hours, leave, breaks, maternity and childcare
protections, bene ts, wages, and retirement restrictions
Labor unions, collective bargaining, collective agreements,and labor disputes
Policies (guidelines, rules and regulations, andmanagement procedures), risk assessments and responses,
monitoring, communication, occupational accidents, etc.

21
10
29

Education and training

2

Local communities and con ict minerals

2114

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Support for member companies of the Komatsu Midori-kai(management and society)
Komatsu supports Midori-Kai member companies in a variety of ways. Main support activities that we havecarried out are described below.

1. Safety
Komatsu provides support for the establishment of systems for safety activities and improvement of theactivity level to 99 companies, the majority of which are custom goods suppliers out of the Midori-kai inJapan. The support includes continuous safety patrols by specialists from Komatsu, sharing information andhorizontal application of occupational safety measures conducted by other companies, the introduction ofmanagement system, and so on. These activities are also carried out at the Midori-kai in China.
In addition, due to our business partners' labor shortages, there has been an increase in the number offoreigners, older adults, and women working onsite. Some of the workers from these groups have sustained
injuries. In response, we have continued to provide support by making safety and health-related documents,
such as work standards, available in multiple languages and creating a workplace environment that is lessphysically demanding for the elderly and female employees.

(1) Komatsu experts conducting safety patrols
Using check sheets and on-site patrols we conduct surveys to ensure compliance, particularly with laws (e.g.
reports and inspections), unsafe locations on site, and the existence of unsafe actions. If anythingproblematic is found, we request the submission of a countermeasure report, which describes the measures
to prevent recurrence, as a follow-up. In FY2017, we reviewed the check sheets and evaluation criteria so that
we would be able to use the same standards to evaluate the activities of Midori-kai members company-wide
and follow-up (One-rank-up Activities) with them to improve the level of each company every year.
In the follow-up, we also train on-site supervisors of business partners through fixed-point observation ofwork cycles on site and joint implementation of risk assessments.
To eliminate serious accidents, we regularly conduct comprehensive inspections of the safety devices
installed on automated lines and machines and the operation of these devices, forklift and crane operations,and the status of the standards established for working in high places, using a unified check sheet. In
particular, we are promoting safety measures for automated lines and machines, due to the policy to securesafety, not only by operators’ caution but by machines’ function and/or mechanism.

(2) Encouraging business partners to implement mutual safety patrols
One of the Midori-kai committee activities is the implementation of mutual safety patrols by business
partners with similar business standpoints. We also put a lot of weight on inspecting from perspectives
specific to each business category (e.g. the handling of heavy goods or the risks of touching hot surfaces).

115

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index(3) Connecting and information sharing through safety activities in Komatsu
Executives from the Midori-kai member companies in Japan participate in the Komatsu Group Safety and
Health Conference, which is held in June every year. Excellent Zero Accident circles selected from Japaneseand Chinese Midori-kai member companies provide presentations about their activities. In addition, we
open the Safety Dojo (Safety Training Hall), a facility included in each Komatsu plant, to our business
partners, aiming to improve the safety awareness of the employees of each company through danger
simulation experiences and danger prediction training.

(4) Focused guidance for companies with repeated accidents
We select companies that have had repeated accidents as target companies for Special Safety Activities andprovide special support and guidance according to the unique situation of each company.

(5) Introducing labor safety and health management systems
To increase the level of the activities at each company, we support them in their establishment of their own
occupational safety and health management systems, including ISO and OSHMS certification. In 2015, we
supported 97 companies that implemented Japan Industrial Safety and Health Association (JISHA)'s
Workplace Safety Health Impact Project for small and medium-sized businesses, and they are using the
project to objectively evaluate their own activities.

Risk assessment training

Group performing a mutual safety
patrol116

Presentation by Sekigahara factory
at a Komatsu safety meeting

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Changes in the results of safety activity evaluations from 2018 to 2022 (99 Midori-kai member
companies, 116 o ces)

Changes in the number of accidents at Midori-kai member companies in Japan and China Table 1

117

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Status of one-rank-up activities

2. Compliance
The Komatsu Group conducts compliance and risk audits (CR audits). In 2016, we began to conduct the CR
audits even for 9 out of the 15 business partners in which Komatsu has made minority investments andwhich are located in Japan. The audit is conducted in four fields -- accounting, labor management,
procurement (the Subcontract Act) and information security. It is aimed at identifying potential risks andtaking corrective measures at an early stage. The risks are identified mainly by checking the status ofcompliance with relevant laws and regulations, confirming business rules, segregation of business anddecision-making authorities, inspecting relevant business documents and conducting on-site examinations.
Voluntary establishment of compliance systems by business partners is essential for promoting CSR
procurement. We believe that such a system should desirably be established by 1) formulating rules(establishing codes of conduct of each company), 2) building a structure for promoting CSR procurement(including the appointment of persons in charge of CSR procurement and practical affairs), 3) introducing awhistleblowing system, and then 4) providing employees with awareness training. Under this policy, we
provided support to 99 companies, mainly custom goods suppliers belonging to the Midori-kai, for theirestablishment of compliance systems by providing practical examples at Komatsu and employee training
materials, etc. As of the end of FY2021, we have completed support activities for all of the companies. The
follow-up after completion of the support activities and the inspection of the status of the activities of major
business partners will involve a SAQ survey.
In FY2022, no serious violations of Japanese labor-related laws and regulations or environmental violations
were reported by any of Japan Midori-kai's 156 companies.

118

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

The problems found by CR audit and countermeasures

Items
Finance &Accounting

Labor Control

Subcontract
Law

Problem found by audit
Missing/Insufficient operation flow, rules
Missing/Insufficient periodical inventory check
Insufficient rule for disposition of absolete stock
Inadequate control on company official
seals/password/authority management
Inadequate labor contract
Inadequate working time management
Missing/Insufficient description on purchaseorder sheet
Risk for delayed payment
Risk for advanced offset of supplied materials
Risk for irrational discountInsufficient rule to get written acceptance fromsuppliers in case of order cancellation.

Countermeasures
Review flow and rules Instruct themanner of inventory check
Separate approvers and applicants
Change to direct employment
Review timecard system

Review format
Review operational flow

Result of CR audit to Level-1 Critical Suppliers

3. Personnel development
We believe that the greatest support that we can provide to the Midori-kai is human resource development.
Based on this belief, we provide various job-level training programs as listed below. Since 2020, it wasnecessary to cancel most of the face-to-face training programs due to the COVID-19 pandemic. In their place,a remote education curriculum using an online meeting system was provided to the Midori-kai companies toprovide materials for employee training. In FY2022, we were once again able to hold in-person productionengineer training.
119

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Among the support activities, we have particularly been committed to Management Salons and skills transfer
activities in recent years. Management Salons are aimed at developing young individuals in management
positions, who have recently taken on new business responsibilities. Through these events, Komatsu
executives analyze the current strengths and weaknesses of each company and exchange views on themedium-term management visions of the companies with their counterparts to align and share management
policies and ideas. The skills transfer activities are aimed at facilitating the improvement and succession of
the on-site skills of each company. In these activities, we help each company build systems for promoting
skills transfer and skills evaluation and develop instructors in core skill elds by disseminating our own
knowledge and skills.
Training and Other Programs for Midori-kai Member Companies

Target job level

ProgramCommissioned
training

Management

Middlemanagement
training

Management
SalonsEmployees inmanagerial
positionsManagerial
training
Leader training(for fieldmanagers)

OutlineMajor
achievements

Komatsu accepts sons anddaughters of corporate
56 trainees havemanagers of member
been acceptedcompanies and provides
since 1972.
them with on-the-job
training for up to five years.
Komatsu's training programfor its executive candidates is 29 people haveopen to candidates formember company successor. participatedsince 2005.
Duration of the training isseven months.
Young corporate managers ofmember companies make Provided to apresentations on medium- total of 28
term management visions of companies since
their respective companies, 2014
which are discussed andshared with Komatsu.
For newly appointed
Around 40
managers and on-site job
peopleleaders (e.g. generalparticipate every
managers of centers andyear.
team leaders)Exclusive training programs Around 60
for the Midori-kai. The
peopletraining is provided twoparticipate every
times a year.
year.

120

FY2022
results
1 person1 person

2 companies

32 people

35 people

ESG Databook 2023

Sustainability policy

Management ofsustainability

Target job level

With people

ProgramWith businessWith the planet

OutlineData

Socialcontribution
activities

Major
achievements

Index

FY2022
results

Intended for leader
candidates related toengineering and 30 people have
Komatsu Technical production
manufacturing who are aged entered since
1 company
Institute
30 or younger. It is a boarding 2008.
school which provides a twoyear program.
Representatives
It is an exclusive training
program for the Midori-kai on Around 40
Production
sheet metal processing and people
engineer training mechanical engineering.
participate every 25 people
Five-day training is provided year.
once a year.
A 30-day program for
141 people have
Instructor training candidates for skilled
participated
14 people
instructorsof
each
company
since
2015.
Skilled workers
Inspection training Inspection skills training and Held as needed 40
schoolclassroom lecturescompanies
are selected
All Komatsu QC Participantsfrom among the Midori-kai
6 companies
competition
members.
Around 20
companies
All Komatsu skills
participate every 13
competition
Participants are selected(Advanced
from among the Midori-kai year.
companies,
OthersTechniquemembers.
18 people
Contest)Participants are selected
Around 5
6 reports
from
among
the
Midori-kai
All Komatsu Safety members (report oncompanies(including 2
Competition
participate
every
from
Excellent Zero Accident
overseas)year.
circles’ activities).

Instructor training

An online meeting system is used to provide remoteeducation.
121

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

4. Supporting productivity improvement activities by using ICT
Addressing the issue of the labor shortage, which has been growing more seriously in recent years, is anurgent task for Komatsu and members of the Midori-kai as well. We promote the networking of production
sites and facilities by making effective use of ICT (Kom-mics) and using the network to improve productivity
and save human resources. As a countermeasure against the labor shortage, we are expanding these
activities to members of the Midori-kai proactively. Tools such as ones for monitoring operating rates that wedeveloped on our own (K-MICS PAD) automatically collect data, including operational status and operating
conditions, from the controllers of machine tools and welding robots of each company. These data are
accumulated on the network, and processed and edited on a PC with application prepared for each purpose.
We thus visualize the issues that need to be overcome to improve the operating rate, leading to collaborative
analysis and implementation of measures.
Outline of Kom-mics

Changes in the number of K-MICS PAD units
installed at suppliers' site

The situation of productivity improvement
through the utilization of K-MICS PAD

122

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

5. BCP to prepare for natural disasters
Natural disasters such as earthquakes, heavy rains and typhoons have frequently occurred in recent years.
Worse, there are new clear risks such as the COVID-19 pandemic, cyberattacks. The importance of
establishing a BCP system for the supply chain is increasing. Starting after the Great East Japan Earthquake
in 2011, Komatsu has provided support by implementing measures to withstand earthquakes and water
damage, etc. at the buildings and facilities of 104 companies, mainly custom goods suppliers belonging to
the Midori-kai. In addition to these tangible measures, it is also necessary to strengthen intangible measures,
including the establishment of an initial response system by creating a BCP manual, etc., and a system forfacilitating early restoration of business operations. Since FY 2019, we have held BCP workshops for 104
Midori-kai member companies, mainly focusing on support for the establishment of their own initial
response systems.
In the future, we will extend our support to activities to enable the system take root through simulations andother activities, something that many of our business partners believe necessary for the promotion of BCP,
and to proactively prepare to restore business operations (e.g. the sharing of information, dispersion of inhouse production capacity, consideration of collaboration with other companies in the same industry).
Issues to consider when advancing the company’s
BCP (responses obtained from 87 Midori-kai companies)

Issues to consider when creating BCP
BCP workshops

123

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Support for member companies of the Komatsu Midori-kai（environment）
１．Support for those obtaining environmental management
certifications
We have requested all member companies of the Midori-kai in Japan and China to obtain certifications forenvironmental management systems (EMS), such as ISO14001 and Eco-Stage, and provided them with
instructions and support for obtaining the certifications. In Japan, all 156 member companies have obtained
the certifications, and we began to check the renewal status of the certifications in 2018. In China, a total of
60 companies have already obtained the certifications. We encourage Midori-kai companies in U.S., Europe
and Thailand to obtain similar certifications, aiming to ensure that 95% of these suppliers (including all
manufacturers and excluding trade companies) have been certified by the end of FY2024.
Over ten years have already passed since the Midori-kai members in Japan obtained the certifications. Like inthe case of the safety and health activities, it is important to follow-up the status of the certifications in eachcompany's business activities. To realize this, we started environmental audits for the outsourcing
companies of the Midori-kai from 2021, and 4 companies were audited by 2022. Through written surveys oncompliance with environment-related laws and regulations, etc. and on-site inspections at each company's
offices, we will inspect how EMS has taken root on site and link the results to our support for theirimprovement in the future. Since FY2022, we have expanded check sheet-based voluntary verification to all
Midori-kai outsourcing companies in Japan and have held study sessions on environmental laws andregulations. We will continue to increase the number of onsite audits, especially for companies bearing
anticipated risks.
Environmental audits

Onsite audit

Documents screening

124

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Number of Midori-kai member companies with EMS certifications (as of the end of April 2022)
RegionJapan
China
ThailandNorth
America
EuropeTotalof companies
Number of companies which have obtained certification Percentage
with certification
FY2024FY2022FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2024
Target Target Progress
156 156 156 156 156 156 156 156
100%
100%
60 53 55 57 58 60 60 60
100%
100%
31
N/A
16 16 18 20
65%58%
44 19 19 19 19 27 27 4091%
61%
42 29 29 32 34 34 35 39
93%83%
333 257 259 264 283 293 296 315
95%
89%

Number ofmembercompanies

2. Responding to climate change: reducing greenhouse gas emissions inthe supply chain
Komatsu has set a mid-term ESG target of 50% reduction in CO₂ emissions in products and production(compared to 2010) by FY2030 and promotes improvement activities. In recent years, we have emphasized
the importance of reducing CO₂ emissions in the entire supply chain related to its own business, and worked
to reduce CO₂ emissions from manufacturing process of purchased parts and materials, which account for
about 10% of indirect CO₂ emissions (Scope 3) other than Scope 1 and 2.
From 2012 to 2016, in response to tight power supply and demand and the steep increase in electricity costs
following the Great East Japan Earthquake, we began to roll out activities to reduce the power consumptionof 96 Midori-kai companies in Japan by setting a target reduction in electricity consumption of at least 15%
compared to 2010. Despite comparative obstacles due to large fluctuations in production volumes and newcapital investments, we almost achieved our target by the end of FY2016. As a result of the expansion of these
activities across all our suppliers, some suppliers won the ECCJ Energy Conservation Grand Prize Award.
Since 2017, we have worked to maintain and improve the level of reduction through independent
improvements at each company. Since FY2019, we have also been providing concrete support for the
reduction of CO₂ emissions in all kinds of energy use, including electricity, heavy oil, and gas, targeting the
top ten highest-emitting casting, forging, and heat treatment companies. From FY2023, we have requested
that all of 156 Midori-kai companies set mid- and long-term reduction targets in accordance with the SBT and
implement tangible improvement activities. In particular, for 93 Midori-kai companies that serve as subcontracted suppliers, we have set a common target of reducing CO₂ emissions by 20% from the FY2022 levelon a basic unit basis by FY2030 and have begun CO₂ emissions reduction activities. With the start of activities
in FY2022, we introduced our latest case studies of improvements. We will continue to promote CO₂
reduction through technical exchange meetings and other activities in which our improvement promotion
division and the Midori-kai committee collaborate. Progress of each activity is monitored through periodic
CO₂ emissions surveys and SAQ questionnaires.

125

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Changes in electric power consumption(Midori-kai 93 companies)
Independent practitioner's assurance

Data

Socialcontribution
activities

Index

Change in CO2 emissions(Midori-kai 93 companies)
Independent practitioner's assurance

Status of setting of targets for the reduction of
GHG emissions (156 companies in the Midori-kai)
Short-term target
Medium- andlong-term target

Not set/not
Already set
answered yet
124
32
39
117

3. Addressing water risks
We are inspecting 135 offices of 96 Midori-kai members in Japan to understand their general water risks,
including the above-mentioned flood and tsunami risks, location environments, potential and actual water
intake/discharge capacities, water quality, and how they address these issues. We also use Aqueduct in theseanalyses.
In response to these investigations, we have been conducting activities to reduce water consumption since
FY2017. In these activities, the top ten companies in the consumption of clean water are considered to bemodel companies and we present Komatsu improvement examples and provide guidance on improvement
through on-site visits, with a target of 15% reduction of water consumption by FY2021. In FY2018, the target
was achieved. Since then, we have voluntarily stayed aware of the amount of water used and have extended
the activities to other Midori-kai companies through the distribution of improvement examples from
Komatsu and ten other companies. We have also conducted environmental audits and confirmed
compliance with the Water Pollution Control Act and other water-related laws and regulations since FY2020.

126

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Changes in clean water consumption by the top 10
largest water users in the Midori-kai

On-site investigation of water risks

4. Responding to environmental regulations in China
The basic goal of the environmental regulations in China is theelimination of three things: exhaust gases, discharged water, and solid
waste. However, when operating under those regulations, theregulations and standards set forth by each local government havepriority. Regarding discharged water from plants, to address theaggravated water pollution in rivers and lakes, the standards for
BOD/COD (Biochemical Oxygen Demand/Chemical Oxygen Demand), An example of measures to meet
regulations in China (Daikyo
which are indexes of amounts of organic substances in discharged
Machinery Shandong Co., Ltd.:
water, are especially strict when compared to the country-wideof a welding fume dust
standards in Japan, and there is an increasing number of cases where Installationcollector
andexhaust air ducts)
centralized water treatment systems for discharged water, etc. need to
be installed.
Komatsu checks the regulatory compliance status of the Midori-kai members in China on a regular basis.
In addition, in China, extremely tough environmental regulations were imposed in 2015, mainly in the coastal
areas, aiming to improve air pollution issues (PM2.5) drastically. As a result, companies engaging inbusinesses such as painting, welding, casting and plating are required to take thorough measures to reduce
exhaust air, smoke and soot (including VOCs). Working together with member companies of the Midori-kai in
China, we provide support for complying with the regulations, including the installation of facilities. As aresult of measures taken by the companies, 18 companies had been certified as exempt from the regulations(as green companies) as of March 31, 2022. We will continue to work with each company to reduce risks toour business continuity.

127

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

5. Dealing with biodiversity
In 2011, Komatsu established “the Declaration of Biodiversity by
Komatsu”, a declaration that we will work for the reduction ofenvironmental impact through our business activities and for theconservation of biodiversity through our social contribution activities.
Receiving support for our policies from Midori-kai members in Japanand other countries, we are conducting community contribution
activities in cooperation with them, such as environmental
conservation. We have also provided educational programs andencouraged the companies to implement their own endeavors in
Cherry tree planting activity in China
accordance with their unique situations and geographical locations(Jining, Shandong Province)
since FY2021. We request each company to report on the details of theirefforts annually.

Support for construction and environmental conservation of the Yusen-ji copper mine in
Komatsu City, Ishikawa prefecture128

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Corporate governance
Basic stance on corporate governance
Komatsu believes its corporate value is the total sum of trust given to the Company by society and all
stakeholders. To become a company which enjoys more trust from shareholders and all other stakeholders,the Company is working to strengthen corporate governance, improve management efficiency, advocate
corporate ethics and ensure sound management on a group-wide basis.
To further improve the transparency of management for its shareholders and investors, the Company
discloses information in a fair and timely manner and actively engages in investor relations’ activities byholding meetings with shareholders and investors.

Corporate governance framework

At the Company, the Board of Directors is positioned as the core of corporate governance, and to improve theeffectiveness of discussions at meetings of the Board of Directors, the Company has worked to put in place asystem to ensure thorough discussions of important management matters and prompt decision making, andreform their operational aspect. Having introduced the Executive Officer (Shikko Yakuin) System in 1999, theCompany has separated management decision making and supervisory functions from executive functions
to the extent permitted by laws and regulations, and while appointing both Outside Directors and Outside
Audit & Supervisory Board Members, limits the Board of Directors to a small number of members.

Corporate governance of the company (As of June 30, 2023)

129

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

For further information, please refer to the following links.
Corporate Governance Report (593KB)
Disclosure based on each principle of the Corporate Governance Code, status of corporate governance (directors,
auditors, independent directors, incentives, directors' remuneration), etc.

Komatsu Report
Message from outside directors, activities of the board of directors, summary of results of the board of the directors
effectiveness assessment, corporate governance reform, activities of outside directors, advisory committee activities,
succession plan, executive compensation system, etc.

Installing Adobe Acrobat Reader is required to open PDF file data.

130

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Corporate governance indicators* As of March 31, Fiscal-Year end

Corporate GovernanceFiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
2016 2017 2018 2019 2020 2021 2022
Women
0
0
1
1
1
0 0
Number of Internal
Men
7
5
4
4
4
5 5
Directors
Numberof Directors
Total
7
5
5
5
5
5 5
*Entering the number ofpeople after the ordinary
Women Members
0
0
0
0
0
1 1
Number ofgeneral meeting ofIndependent
Men
3
3
3
3
3
3 3
shareholders
Directors
Total
3
3
3
3
3
4 4
Total
10
8
8
8
8
9 9
Number of Corporate Executive Officers on the Board
Members
6
4
4
4
4
4 4
% of Corporate Executive Officers on the Board
60 50 50 50 50 44 44% of Independent Directors on the Board％
30 38 38 38 38 44 44% of Women on the Board0
0 13 13 13 11 11
Women
0
0
0
0
0 ０ 0
Number of Internal
Men
2
2
2
2
2
2 2
Members
Total
2
2
2
2
2
2 2
Number of Audit &Supervisory Board
Women Members
1
1
1
1
1
1 1
Members
Number of
2
2
2
2
2
2 2
Independent Members Men
Total
3
3
3
3
3
3 3
Total
5
5
5
5
5
5 5
% of Independent Audit & Supervisory Board Members
60 60 60 60 60 60 60％% of Female Audit & Supervisory Board Members
20 20 20 20 20 20 20
Average Age of Board Members
Age61.8 63.2 63.2 60.6 61.6 61.6 62.6
Term Limits for Board Members
Years
1
1
1
1
1
1 1
Number of Board MeetingsTimes
17 15 15 15 15 15 15
Board Meeting Attendance％
99 100 100 99 100 100 99
Attendance of Independent Directors at Board Meetings％
98 100 100 100 100 100 97
Number of Directors Attending Less Than 75% of Board Meetings Members
0
0
0
0
0
0 0
Number of Audit Committee MeetingsTimes
15 15 15 15 15 15 15
Audit Committee Meeting Attendance％
97 100 99 100 100 100 97
Attendance of Independent Auditors at Board Meetings％
96 100 98 100 100 100 98
Number of Auditors Attending Less Than 75% of Board Meetings Members
0
0
0 ０
0
0 0
Unit

131

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Corporate GovernanceFiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
2016 2017 2018 2019 2020 2021 2022
Women
2
2
1
2
2
2 2
Number of Executive Officers Men
Members 32 30 29 31 26 25 28*Excl. Board Members
Total
34 32 30 33 28 27 30
Ratio of Female Executive Officers
％
6
6
3
6
7
7 7
Women
0
0
0
0
0
0 0
Number of Executive Officers Men
Members 26 27 29 26 28 27 27(Global Officers)
Total
26 27 29 26 28 27 27
Women
0
0
0
0
0
0 0
Number of
Men
2
2
2
2
2
2 2
Internal Members
Total
2
2
2
2
2
2 2
Human Resource Advisory
Women Members
0
0
0
0
0
1 1
Committee Meｍbers
Number of
Independent
Men
3
3
3
3
3
3 3
Members
Total
3
3
3
3
3
4 4
Total
5
5
5
5
5
6 6
Number of Human Resource Advisory Committee Meetings
Times
1
1
2
3
2
5 3
Human Resource Advisory Committee Meeting Attendance％
100 100 100 100 100 100 100
Women
0
0
0
0
0
0 0
Number of Internal
Men
1
1
1
1
1 １ 1
Members
Total
1
1
1
1
1
1 1
Number of Compensation
Advisory Committee Meｍ
Women Members
1
1
1
1
1
2 2
Number ofbers
Independent
Men
3
3
3
3
6
6 6
Members
Total
4
4
4
4
7
8 8
Total
5
5
5
5
8
9 9
Number of Compensation Advisory Committee Meetings
Times
2
2
1
1
1
1 4
Compensation Advisory Committee Meeting Attendance％
100 100 100 100 100 100 100
Unit

132

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Compensation
Unit
Basic Remuneration
Performance-Based Bonus in Cash
Compensation of Chief
Performance-Based Remuneration
Executive Officer(Stock-Based)
Total
Basic Remunerations
Stock Options
CompensationofDirectors*Excluding External
Performance-Based Bonuses in
Directors
Cash*Including those who retired
Performance-Basedduring the term
Remunerations (Stock-Based)
Total
Millions
Basic Remunerationsof
Yen
Compensation of Audit & Stock Options
Supervisory Board
Members
Performance-Based Bonuses in*Excluding External Audit & Cash
Supervisory Board Members*Including those who retired Performance-BasedRemunerations (Stock-Based)
during the term
Total
Basic Remunerations
Stock Options
Compensation of External Performance-Based Bonuses in
Directors and External Audit Cash&
Supervisory Board Members Performance-BasedRemunerations (Stock-Based)
Total
Shareholder Rights
Anti-Takeover Measures

Social

Data

Index

contribution
activities

Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
2016 2017 2018 2019 2020 2021 2022
100 100 102 103 103 103 116
36 73 93 41 28 65 120
19

19

99

46

35

57

87

155
427
0
154

192
357
0
246

294
357
0
310

190
345
0
130

166
331
0
88

224 323331 3590 0
207 369

83

68

300

147

108

182 249

664
86
0

671
86
0

967
87
0

622
87
0

527
87
0

720 977
87 90
0 0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

86
85
0

86
85
0

87
103
0

87
108
0

87
109
0

87 90
122 146
0 0

9

9

0

0

0

0

4
98

5
99

0
103

0
108

0
109

0 0
122 1460NoneComplianceIn the event of a significant revision of financial statements or an event that has a significant
impact on the reputation of the Company due to the execution of business by Directors, therenumeration paid to the Internal Directors could be required to be reduced,
Malus and clawback system Yes performance-based
confiscated or refunded. In principle, the content of the refund request, etc. will be decided by the
Board of Directors after the deliberation by the Compensation Advisory Committee according toeach event.
Political Contributions

Unit
Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022
Millions of Yen
8
8
8
8

133

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Compliance
Promoting complianceKomatsu considers the maximization of corporate value with the pursuit of Quality and Reliability as a corecomponent of our management principles. The Company believes its corporate value is the total sum of trust
given to the Company by society and all our stakeholders.
In order to raise the total sum of reliability, it is necessary not only to improve business performance and toenhance the soundness and transparency of management, but to also become a company that has acquired
societal trust. Thus, it is increasingly important for any company to comply with the rules of business society.

Frameworks for promoting complianceTo make certain that the entire Komatsu Group complies with the rules of the business community, Komatsu
has appointed an executive officer at the head office in charge of compliance, and established theCompliance Department to handle this issue exclusively. The Compliance Committee, chaired by thepresident and CEO, deliberates the Group's action policies and important issues while regularly reporting thestate of compliance-related activities to the board of directors.

Komatsu's Worldwide Code of Business Conduct
The company has formulated Komatsu's Worldwide Code of Business Conduct (established in 1998 andrevised ten times to date) as a compilation of best business practices to be observed by officers andemployees of Komatsu Group companies around the globe.
While Komatsu is expected to achieve its own sound and sustainable growth as a global corporation, agrowing number of stakeholders also expect Komatsu to give due consideration to the environmental andsocial impacts of its business activities, products and services, and to make positive contributions to thesustainable development of society. Komatsu believes that meeting these expectations is our social
responsibility as a good corporate citizen, while we seek to find solutions for ESG (Environmental, Social andGovernance) issues through our core business activities. In addition, a positive cycle of solving ESG issues
and improving our earnings is expected to facilitate sustainable growth for Komatsu. Part 1 of “Komatsu’sWorldwide Code of Business Conduct” (the “Code”) provides principles and standards for responsible
business conduct that Komatsu follows to fulfill its social responsibilities. For Komatsu to continue to earn
the trust of society, each and every employee of Komatsu is required to act in good faith, ethically and incompliance with laws, regulations and other rules generally recognized and respected by society (the“Rules”). Accompanied by examples, Part 2 of the Code contains select universally applicable rules which set
the code of conduct that must be followed by all employees of Komatsu.
If any actions are discovered to be in violation of "Komatsu's Worldwide Code of Business Conduct,"disciplinary measures such as salary reduction and suspension of pay raises will be taken according to theemployment regulations. Such actions will also be taken into consideration in performance evaluations.

134

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Komatsu considers CSR as a key responsibility, which is shown by Komatsu's Worldwide Code of BusinessConduct clearly focusing on the importance of CSR. Turning a PDCA cycle of (1) formulating a code of
conduct, (2) implementing the code, (3) determining whether and how the code is following and (4) reacting
to contingencies for corrections and preventing recurrences of problems is the pillar of Komatsu's
compliance activities.
The compliance system for the Code of Conduct is regularly audited by an auditing company.
Komatsu's Worldwide Code of Business Conduct is available at:
Komatsu's Worldwide Code of Business Conduct

Process for compliance activities
1. Formulate the Code:
Formulate the Code and the Five Principles of Compliance as a foundation for compliance activities andrevise the Code (currently in its 11th edition) as required to reflect social change.
2. Implement the Code:
Implement the Code through education that corresponds to employee rank and their respective duties,
and by communicating information in accordance with the Code.
3. Determine the current status:
Determine whether we comply with rules of business society by having all business units regularly reporton their use of the Code, implementing compliance and risk audits, conducting "visualization survey" ofpotential risks and enhancing Komatsu's internal reporting system.
4. Reacting to contingencies:
Any issues identified during the above activities or otherwise will be addressed in accordance with theCode and be rectified through implemented preventive measures.

Upholding thorough compliance
So that employees remain acutely aware of compliance all the time, the Group is working to cultivate theirconsciousness of best business practices by displaying business unit posters in every Komatsu Group listing
The Five Principles of Compliance (a condensed version of Komatsu's Code of Worldwide Business Conduct).
For employee education, we have been expanding global e-learning since the 10th edition of Komatsu's Codeof Worldwide Business Conduct to help employees around the world understand the Code, and the 11th
edition of the revised education started in April 2021. In Japan, group training on compliance is conducted
for managers and general employees by job level. In addition, we are expanding business-specificcompliance training, and individual training in response to requests from departments. Furthermore, as
training for risks for overseas operations, education on anti-corruption, antitrust laws, export control andmore is provided to prospective employees to be based abroad.
We have established a "Compliance Portal" on our intranet to ensure wide-spread awareness. The monthly
magazine "Everybody’s Compliance" provides explanations of important laws, lessons learned from othercompanies, and articles on human rights, harassment prevention and traffic rules for general businessrelated practices. Articles on anti-corruption, antitrust laws, and export control have been repeatedly
published as particularly important fields. By issuing compliance-related journals, we also expand
135

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

awareness-raising activities for our overseas affiliates. In this way, we are committed on a global scale.
The Group strives to detect risks early and implement reforms at Komatsu business units and Group
companies through monitoring during financial audits and compliance and risk audits. The monitoringcovers compliance in highly important areas such as safety and environmental practices.

Internal reporting system
Komatsu has established the Global Compliance Hotline in its HQ to offer counselling to and handle reports
from employees of Komatsu Group companies pertaining to the rules in the business world. In this way, we
strive to detect and correct problems early. In addition, Komatsu companies establish and maintain Regional
Compliance Hotline that properly handles compliance of alleged or suspected violation of the Rules so thatwhistleblowers can raise claims in their native languages. Please note that reports directed to Global
Compliance Hotline will be forwarded to the corresponding Regional Compliace Hotline for investigation andapplication of the Rules. The Global Compliance Hotline will monitor how the report is handled by theemployee in charge of the Regional Compliace Hotline, with the goal of assuring global possess across theglobe. The Group actively encourages consultations and reporting through Komatsu's Worldwide Code ofBusiness Conduct, the Five Principles of Compliance, and Group companies' workplace rules, making it clearthat employees who use the system for appropriate reporting will not be treated unfairly in any way as aresult of their action.
The contact persons on the Global Compliance Hotline discuss the handling of all consultations and reports
to ensure they are handled appropriately. They also participate in training sessions and workshops toimprove their skills in handling reports.

Status in FY2022
No incidents of note occurred during 2022.

DATA

1. Number of internal reports
Number of internalreports(number of serious
cases)FY2020

FY202189 (0)

136

FY20222126(0)

141 (0)ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

2. About Komatsu's Worldwide Code of Business Conduct
Established
Last revised
Languages

January 1, 1998
April 1, 2021 (11th edition)
20 languages
Japanese, English, Chinese, Spanish, Portuguese, German, Dutch, Italian,
Polish, French, Swedish, Finnish, Indonesian, Thai, Russian, Turkish,
Persian, Tamil, Taiwanese, Korean

3. Compliance education in FY2022
Global training on the codeof conduct (e-learning andgroup training)<Group training (in Japan)>・Level-based training
・Individual training by
request (offices and relatedcompanies in Japan)<Group training (overseas)>・Individual training by
request (overseas
subsidiaries)

Approx. 45,930 people
Approx. 1,480 people
Approx. 22,380 people
45 people

4. Compliance violation in FY2022
0 compliance violation had a significant impact on the management of the company.

5. With regards to anti-corruption
Number of employees who
were dismissed because of
conflict with Komatsu's
Fiscal Year 2022: Zeroanti-corruption policy(global)Fines imposed on Komatsu
related to corruption /Fiscal Year 2022: Zeroamount of penalties (global)
137

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Number of employee training Fiscal year 2022: 12 times
sessions on anti-corruption Approx. 110 people (planned overseas assignment)
prevention (in Japan)
Prevention of corruption is specified in "Komatsu's Worldwide Code ofBusiness Conduct" as a key priority issue. If there is any suspicion or
Establishment of internal
involving corruption or the violation of business society rules,
reporting system related to concern
concerned parties are invited to use the Global Compliance Hotlines
corruption (global)
established at the Komatsu Head Office or within each region to report
the problem.

138

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Risk management
The Komatsu Group recognizes all uncertainties that could threaten the Group's sustainable growth to be
major risks, particularly compliance, environmental issues including climate change, product quality
concerns, accidents, infectious diseases, information security issues and anti-social forces. The company has
adopted the following measures to counter these risks.

1. Basic principles and structure for risk management
In addition to the basic policy for risk management to ensure business continuity and stable development, Komatsu
has established Risk Management Rules to correctly recognize and manage risks.
Komatsu has established a Risk Management Committee to devise relevant policies for the entire Group, review the risk
management system, and evaluate and improve upon response measures in place for each risk, as well as to takecontrol of risks when they arise. In addition to the regular once-a-year meeting, further meetings are held as needed; in
FY2022, the regular meeting was held in February, then other meetings were held in June and October. The
Chairperson of the Risk Management Committee is the President of the company, and the Vice Chairperson is the
Executive Officer in charge of General Affairs. The secretariat of the Risk Management Committee is managed by the
Risk Management Group within the General Affairs Department, which specializes in risk management activities.
The committee regularly reports on its deliberations and activities to the board of directors. During FY2022, we havediscussed risk management and received suggestions from advisers of the International Advisory Board (IAB), as we
aim to incorporate the objective advice and suggestions of external experts.
Komatsu will establish an emergency headquarters when serious risks occur and implement appropriate measures tominimize damage.
We are developing risk reporting lines, preparing related manuals and making other efforts to further improve the risk
management system of the entire Group, including overseas subsidiaries.

Risk management structure139

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

2. Business and other risks

We recognize the following business and other risks as described in the Annual Securities Report.
1. Economic and market risks
2. Exchange rate fluctuations risks
3. Risks related to fluctuations in the financial markets
4. National regulations risks
5. Risks related to environmental regulations, climate change, etc.
6. Product and quality liability risks
7. Risks related to alliances, cooperation, acquisitions, etc.
8. Risks related to procurement, production, etc.
9. Risks related to information security, intellectual property, etc.
10. Risks related to natural disasters, accidents, infectious diseases, etc.
11. War, terrorism, geopolitical risks

140

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

3. Emerging risks

The emerging risks that may affect us in the medium term (3-5 years) and are of high significance are as
follows.
Risk title
Geopolitical
Risk

Risks and businessBusiness impact
Risk-reduction actions
backgroundKomatsu operates 239
In light of theAmong the CIS countries, the six nonglobal bases (32 in Japan situation in Russia sanctioned nations are important markets
and 207 overseas) andand Ukraine, Komatsu situated in resource-rich Central Asia. To
conducts business in over has suspended
capitalize on this, we have established
150 countries and regions. shipments of its
Komatsu Central Asia LLP, a wholly-owned
As a result, escalating
primary products, as subsidiary in the Republic of Kazakhstan. Thissocial, political, or military well as parts andnew entity is tasked with handling sales andtensions in specific areas components, toservice operations in the Central Asian region,
can adversely affect our
Russia. We have also with the aim of further expanding both sales
supply chain, whichhalted operations at and revenue.
includes production, sales, our production
In light of amendments to the Export Tradeand services.
facilities within the Control Order, we have instituted a specialized
Additionally, the tightening country. The business department within the company to swiftlyof export regulations
environment in the gather relevant information. This department
related to advanced
CIS—which includes collaborates with related business units totechnologies also impacts Russia, Belarus, and ensure timely and appropriate action is taken.
certain segments of our
six other nonRegarding the export controls on advanced
business.
sanctioned nations— technologies, we are proactively working to
The geopolitical landscape remains unstable. mitigate potential revenue losses. Our strategy
is increasingly uncertain, Should this state of involves diversifying and broadening ourwith the Russia-Ukraine
affairs persist,
revenue streams by venturing into markets
situation being a notable particularly ouroutside regulated regions, enhancing productexample. Should tensions inability to provide differentiation features, elevating capabilities
escalate to the point of war customer support in through long-lasting modules, and boostingor other conflicts, we may the resource-richthe profitability of our parts business.
be compelled to scale back countries of Central
operations in the affected Asia among the nonareas. Such a scenario could sanctioned nations, itlead to a decrease in sales, could have potential
asset devaluation, andimplications for ourmarket loss due tofuture business.
customer attrition, all of Moreover, ourwhich could potentially
products related to
impact our future business. electronics featureadvanced
technologies, some ofwhich fall underexport controls
governed by export
trade regulations.
Although the impact
is minimal at present,
any future tighteningof these regulations
could result in lost
sales opportunities
and hinder ourservice support,
thereby potentiallyaffecting our overallbusiness.

141

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Risks and business
Risk title
Business impact
Risk-reduction actions
background
Risks related to We have set a mid-term
Low-carbon/lowWe have worked to improve the operatingthemanagement plan target of emission products are efficiency of our machines, reduce fueldevelopment of reducing CO2 emissions by expected to be in
consumption, and transition from internal
low50% from the 2010 level by demand in the
combustion engines such as diesel engines tocleaner power sources such as hybrids,
carbon/low- 2030 and have declared our European, North
goal of becoming carbon American, andelectrification, and fuel cells. We introduced toemission
neutral by 2050. To verify Japanese markets in the Japanese market the PC30E-5 electric
products
our progress, we compared the future. The
excavator in April 2020 and the PC01E-1 in
the product performance in construction, mining March 2022 through joint development withthe base year (FY2010) and and utility equipment the Honda Motor Co., Ltd. (hereinafter Honda).
in FY2022 and calculated segments account for Furthermore, we and Honda have jointly
the resulting reduction in 93% of Komatsu’s developed the PC05E-1, an expansion of theCO2 emissions fromtotal sales, with the PC01E-1 model, and plan to introduce it to theimprovements in fuelEuropean, Northdomestic Japanese market in FY2023.
consumption and work
American, andIn December 2022, we also launched theefficiency. We found that in Japanese markets FE25G-2 and FE30G-2 electric forklift trucks,
FY2022, products achieved a accounting for 46% which are 2.5-ton and 3.0-ton-class electric
21% reduction in CO2(in FY2022) of the total forklift trucks equipped with high-capacity
emissions compared with sales by region.
lithium-ion batteries. This will further help
the base year.
Additionally, major customers to reduce their CO2 emissions.
However, our products and resource companies We will further contribute to climate changesolutions may not bethat are mine
mitigation and carbon neutrality by promoting
adopted within the low- machinery customers the mechanization of all processes relating tocarbon/low-emission
are accelerating their afforestation, silviculture, forest growth, andproduct market in theefforts to decarbonize logging, and by supporting the reforestation
future if the development of their operations and cycle as a recycle-oriented business.
low-carbon/low-emission take an environment- We will also strengthen our remanufacturing
products and solutions does conscious
business, in which components are recycled
not proceed as planned, if management stance. and reused, by positioning it as a recyclerival products are launched If such risks
oriented business that contributes to CO2
by our competitors, or if we materialize in the
reduction.
do not have sufficiently
future, our products Regarding CO2 reduction in mining operations,established procurement, and solutions may in 2021, Komatsu formed the Komatsu
production, and service
lose their
Greenhouse Gas (GHG) Alliance with four ofsystems when we bring EVs, competitiveness,
the world’s leading resource companies, Rio
hydrogen and otherwhich may have a Tinto, BHP, Codelco, and Boliden. The
products to market.
significant andalliance’s initial target is the roll-out of a
prolonged impact on super-large dump truck that can run on a
our business plan. variety of power sources.
Moreover, starting in 2024, Komatsu has
agreed to collaborate with Codelco to trial a
new environmentally friendly tunnel
excavation method using Komatsu’s newly
developed Mining Tunnel Boring Machine(TBM) for underground hard rock mining. Thismethod has been developed with a focus on"No Blasting," "No Batch," and "No Diesel.” We
aim to introduce this innovative technology assoon as possible to help improve
environmental performance at our customers'sites.

142

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Risks and business
Risk title
Business impact
Risk-reduction actions
background
Risks related to Komatsu promotes
If we are unable to In April 2021, Komatsu, NTT DOCOMO, Sonyprovidingsolutions businesses inprovide solutions that Semiconductor Solutions, and Nomura
solutions to smart construction,
maintain our
Research Institute launched a new company
customers
automation in mining (e.g., competitive
named EARTHBRAIN Ltd. to grow their
AHS), and data-driven
advantage, oursolutions businesses. In response to thebusiness (e.g., KOMTRAX); business performance demand for workstyle reform at construction
however, Komatsu may lose may be affected and sites around the world, we are working tocompetitiveness in new
the impact may be promote DX in the construction industry tomarkets if it is unable to prolonged.
improve safety, productivity, anddevelop solutions that meetenvironmental friendliness.
customer needs by the time
As an example, Komatsu and EARTHBRAIN
required by the market or ifhave jointly developed a remote control
technologies developed andsystem for construction machinery, which
provided by Komatsu arethey began offering to customers in Marchnot well received by
2023. This system can also be linked with thecustomers.
Smart Construction Fleet and Smart
Construction Retrofit, and when linked withthese services, we can expect to maximize
dump truck loading efficiency and further
improve safety in construction machinery
operations.
Komatsu has begun installing an Autonomous
Haulage System (AHS) at Los Bronces, a
Chilean open-pit copper mine operated by the
global mining company Anglo American. We
plan to deploy a total of 62 930E ultra-classhaul trucks by 2024. This will be Komatsu’s
first AHS installation for Anglo American.
Komatsu has acquired Mine Site Technologies
Pty Ltd, a provider of operational optimization
platforms for underground mining thatleverages communication devices andposition-tracking systems. Through thisacquisition, we aim to enhance the speed ofadvanced technology solutions, including theautomation and teleoperation of undergroundmining machinery, and further improve thesafety and productivity of our customers'sites.
Furthermore, starting in 2022, we have
expanded the number of models equippedwith the KomVision Human Detection &Collision Mitigation System. This system
recognizes humans around the excavator andcontrols the motion of the excavator whenpeople are detected as the excavator starts totravel or swing.

143

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

4. Specific initiatives in FY2022(1) Response to geopolitical risks

The Komatsu Group has established development, production, sales, and other bases around the world andconducts business globally. Therefore, heightened social, political, or military tensions in a particular region
may affect our business. To minimize the impact of diversified geopolitical risks on resource pricefluctuations, import/export regulations, supply chains, and so on, the Group is continuously assessing thepolitical and economic situations and trends in laws and regulations worldwide and taking appropriate
measures in response to this assessment. Regarding the situation in Ukraine in particular, in line with ourcrisis management policy, we have established an emergency taskforce headed by the president to ensure
the safety of our employees and their families and to comply with export regulations in all jurisdictions.

(2) Response to the COVID-19
To fulfill its responsibilities to its customers engaged in essential businesses supporting social infrastructure,
the Komatsu Group takes thorough measures to prevent infection as it continues to supply of products, partsand services to its customers.In FY2022, we continued to monitor the employees’ infection status globallyand responded to the situation according to the government policy in each country. In Japan, in accordancewith government and prefectural policies, we worked to prevent infection among employees and monitored
the operational status of production sites and partner companies to curb the impact of the pandemic on
production.

(3) Establishing a business continuity plan (BCP) and providing training
Komatsu has established a BCP to continue or quickly restore important operations. We implemented initial
response training at each base in Japan to improve their risk management level and their ability to respondto disasters. We have introduced the safety check system to promptly check the safety of employees andtheir families when a disaster or accident occurs as well as wide-area wireless devices and other tools at eachbase of the group. Through regular safety reporting and communication training, we are enhancing the
emergency communication capabilities of the entire group. Each of our domestic sites conducts annual BCP
roleplays to ensure that employees can act appropriately and promptly in the event of a disaster by
independently assuming duties based on hazard maps.
Furthermore, considering the recent frequent occurrence of large natural disasters, each of our bases has
reinforced the seismic resistance of their buildings and facilities and enhancing countermeasures toconcentrated heavy rains based on their own plans. We are focused on not only strengthening the BCP ofeach base of the Komatsu Group but also strengthening the supply chain system through our support of ourbusiness partners as they establish and improve their BCPs.
We will continue to promote and strengthen BCPs and related activities to build a flexible and sustainablesupply chain that can respond to diverse risks.
＜Examples of Initiatives in FY2022＞
Previously, each domestic site had conducted training on a theme of its choice, such as earthquakes andtyphoons; however, in FY2022, BCP training was conducted on the company-wide common theme of theeruption of Mt. Fuji. This training, conducted based on the assumption of specific disaster scenarios, wasdesigned to strengthen cooperation between sites and enhance response capabilities. Below are examples of
the training conducted at the head office in Tokyo and the Shonan Plant in Kanagawa Prefecture, where ash
fall is expected as a result of the eruption of Mt. Fuji.

144

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Shonan Plant (Hiratsuka-shi, Kanagawa)
We are considering measures to prevent ash fall at the production site, hold strategic inventory, and transfer
production to other plants.
② Head Office (Minato-ku, Tokyo)
We are considering measures to maintain building utilities. Additionally, we are identifying critical operations
that must continue even in the event of a disaster and examining countermeasures.
①(4) Response to economic security issues
Greater political divisions globally may lead to tighter regulations in some countries. In response to the
Economic Security Promotion Act and other trends in economic security-related regulation, the KomatsuGroup has appointed an executive officer in charge of economic security to collect and analyze information.

5. Conducting compliance and risk audits

As a part of its risk management activities, Komatsu has been conducting compliance and risk audits (CRaudits) since FY2008. These covered areas are not included in J-SOX audits, which are conducted inaccordance with the Financial Instruments and Exchange Act of Japan to evaluate the internal controls
related to financial reporting, and identify potential compliance risks within the company, with a particularfocus on confirming and evaluating the status of legal compliance. Our internal specialist team conducts theinternal audits at Komatsu and its Japanese/overseas affiliates, as well as at independently owned
distributors and business partners. Through these audits, we strive to raise control and complianceawareness levels at each company and in every department. We are improving our audit method according
to changes in the business environment and raising the operational level of CR audits as a part of our risk
management functions.
The audited items in FY2022 are:
1. Safety, 2. Environment, 3. Labor, 4. Finance and Treasury, 5. Quality Assurance and Recall, 6. Vehicle
Inspections and Specific Voluntary Inspections (inspections required by law), 7.Export Control, 8.
Information Security, 9. the Anti-monopoly Act, 10. the Subcontract Act
In addition, as CR audits that cover areas across the above items, we implement field instructor audits(Safety, Environment) and audits of sales office bases (Finance and Treasury, Labor, Information Security),
which are implemented at each distributor base, as well as audits of overseas representative offices (Financeand Treasury, Labor, Information Security), which are implemented for overseas offices.

Implementation of compliance and risk audits

145

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Information security
Recognizing that threats to information security are becoming more advanced and sophisticated every year,
Komatsu is promoting activities to improve information security across the entire Komatsu Group.
Given that cyberattacks have a significant impact on business, Komatsu has established the Computer
Security Incident Response Team (CSIRT) to respond to this threat.

1. Risk management and its promotion
Komatsu has established and is operating the CSIRT for its worldwide sites to develop and operate anorganizational structure for information security, including the ability to respond to cyberattacks, etc. The
role of the CSIRT is to prevent information security incidents from occurring through data gathering, various
system-level measures, employee education, and so on. Should an information security incident occur, the
CSIRT will take the lead in minimizing damage and restoring the impacted system as soon as possible.
The activities of the CSIRT are reported regularly to the Risk Management Committee, which manages
company-wide risks. This is done to share issues with the Committee members, including the president anddirectors, and thus ensure appropriate operations.

2. Protection of personal data
Komatsu believes that appropriately protecting the personal data of its customers, business partners,
employees and others is a social responsibility it bears. Komatsu formulates and publishes its principles forthe protection of personal data. Through the e-learning opportunities, internal audits and other activities, we
thoroughly ensure the appropriate handling of personal data. Overseas, we adapt our efforts to protect
personal data to national and regional laws such as the EU’s General Data Protection Regulation (GDPR) andthe expectations of society.

3. System measures
Komatsu has built a multilayer defense system combining many system measures to protect informationfrom unauthorized access, virus infection and other threats and to prevent the leakage of data resulting fromthese threats. For example, we have multiple required processes whenever a person accesses the systemfrom the outside to telework to strictly authenticate individual users.

146

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

4. Education and training
All Komatsu employees must take regular e-learning courses to increase the knowledge and awareness of all
employees handling data and to ensure they are able to handle data properly.
To address the risk of suspicious emails, we organize multiple drills every year where employees simulate thehandling of targeted email attacks. Suspicious email drills are also conducted at some affiliates both in Japanand overseas. We are working globally to raise the level of our information security.

5. Information security auditing
The information security of Komatsu Group companies is audited to increase the level of information security
throughout the Komatsu Group. Komatsu employees with specialized knowledge audit and advise toincrease the effectiveness of these efforts. Conducting audits as a third party with no direct interests helps toensure independence and impartiality.
In principle, the information security of each group company is audited every three years and Komatsu stays
updated on the status of the information security of the group companies.

6. Efforts to improve information security throughout the supply chain
Komatsu asks its employees, Komatsu Group companies, its distributors and business partners with whom
we share confidential business information to follow Komatsu’s information security principles as we
continue to effectively support them.
We also encourage our distributors and business partners to conduct periodic checks and meetings on
information equipment measures and information management methods and to use our designatedinformation security materials. These activities allow us to communicate the vital importance of appropriate
information system management to the safe handling of confidential business information and theachievement of stable business operations and to reduce risks.

147

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

With the planet

Our concept of environmental activities and promotion system

149

Organizational chart of the environmental management structure

152

Setting mid- and long-term targets and progress

154

Acquiring ISO14001

156

Relationship between business activities and the environment

158

Mitigating climate change through products and service

160

Reducing CO2 emissions in manufacturing operations

163

Reduction CO2 emissions in logistics

166

Development of our “Reman” remanufacturing business

168

Activities to eﬀectively utilize resources in production(1. waste)

171

Activities to eﬀectively utilize resources in production(2. water resources)173

Environmental initiatives at sales and service companies

175

Promoting legal compliance, and pollution mitigation and prevention

177

Management of chemical substances and pollution prevention

178

Reducing the use of substances of environmental concern
and complying with the EU REACH and SCIP regulation

180

Komatsu's eﬀorts regarding water

182

Compliance and risk audit at overseas group companies

185

Biodiversity Initiatives

186

148

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Our concept of environmental activities and promotion
system
We, at the Komatsu Group clearly de nes the basic policies of environmental conservation, which will be theguidelines of business activities, when engaging in business activities while working to realize a sustainable
society, and promotes environmental conservation activities.

Komatsu Earth and Environment Policy (June 2022 revision)
Corporate Principles

1. Contributions to Realization of a Sustainable Society
Humankind must not only promote the further development of a prosperous and comfortable society but
also pass down our planet earth and its indispensable environment to future generations in a sound andhealthy condition.
We at the Komatsu Group de ne environmental conservation e orts as one of the highest priority
management tasks, and endeavor to contribute to the sustainable growth of society by integrating advanced
technologies into environmental conservation e orts in all our business activities. We also aim to achievecarbon neutrality with net zero CO2 emissions by 2050, and contribute to sustainable development throughe orts to reduce CO2 emissions from products and in our manufacturing, and to establish a recyclingoriented society.
2. Simultaneous Realization of Environmental and Economic Performance
As a group of companies working to improve our manufacturing for the satisfaction of our customers, we at
the Komatsu Group are committed to improving both our environmental performance and economice ciency. To this end, we are constantly engaged in technology innovation to provide economical products,
services and solutions through improving fuel e ciency at our customers’ workplaces and strengthening
their cyclical businesses, while striving to minimize the environmental impacts related to the entire lifecycleof products from production to disposal.
3. Observance of Corporate Social Responsibility
We at the Komatsu Group promote environmental conservation by not only complying with the applicablelaws and regulations of our host communities, regions and countries but also by establishing our own
voluntary standards addressing global and local environmental concerns. Each company of the Group also
strives to ful ll our collective corporate social responsibility and create value toward a sustainable planet andfuture through participating in environmental conservation activities in each region, disclosing environmentrelated information to society, and maintaining close communications with our stakeholders.

149

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Guidelines for Corporate Activity
1. Initiatives for the Earth and Environment
We at the Komatsu Group contribute to sustainable development and climate change mitigation andadaptation through the following initiatives.
1)Response to Climate Change
We will reduce the amount of energy used and greenhouse gas emissions generated across the entire
lifecycle of our business. We do not limit ourselves to cutting emissions from our bases and from the use of
our products. Rather, we broaden the target to include customer workplaces in their entirety.
2)Establishment of a Recycling-oriented Society
Through our business processes, we work to minimize the use of natural resources such as materials andwater, promote their reuse, or recycle them as much as possible. At the same time, we ensure thecomprehensive reduction of waste in all business areas. We also contribute to the establishment of arecycling-oriented society by strengthening our forestry machinery business, which supports a sustainable
forest management cycle of planting, cultivating and harvesting, as well as our remanufacturing (Reman)
operations, which involve the refurbishment and reuse of components.
3)Conservation of Air, Water and Other Natural Systems as well as Management of Chemical
Substances
We comply with not only local laws and regulations but also with our own established standards concerning
the conservation of water quality and the prevention of air pollution, noise and vibrations.
As much as possible, we also ensure the comprehensive management of chemical substances used in ourbusiness activities, while continuously working to reduce the use of potentially harmful chemical substancesor replace them with alternatives for the discontinuation of their use.
4)Response to Biodiversity
We recognize biodiversity as an important environmental issue, evaluate, understand and analyze impacts
on it in all our business areas, and work on our tasks according to the criteria of highest impact and/or moste ective actions.
2. Framework of Global, Group-wide Environmental Management System
Komatsu and major companies of the Komatsu Group will establish an Environmental Management System,
and will work to maintain and improve environmental activities. Other group companies and suppliers will
also work to establish environmental management systems that help to maintain and improve
environmental activities.
Each company or business unit of the Komatsu Group will set its own mid- and long-term targets inaccordance with the mid- and long-term targets set based on the Komatsu mid-term management plan, andwill develop and implement speci c activity plans. Top management will regularly review targets, activity
plans and status, and work on continuous improvement.

150

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

3. Environmental Education and Communication
We at the Komatsu Group believe that it is important to enhance the environmental awareness of each
employee. To this end, we will actively promote environmental awareness and education programs among
all employees.
We will gather environment-related information from each company or business unit of the Komatsu Group,and strive to disclose information concerning all business activities. We will also facilitate proactive dialogues
with all our stakeholders, such as customers, employees, local communities and suppliers, thereby further
improving the content of our environmental communication.
* This policy has been approved by the Sustainability Promotion Committee, chaired by the president.

151

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Organizational chart of the environmental management
structure
Among our important business challenges, the Komatsu Group includes climate change in the objectives ofour business strategies.
The Sustainability Promotion Committee and the Risk Management Committee all discuss climate change
and provide advice to the Strategy Review Committee and reports to the Board of Directors, who establish asystem that realizes appropriate supervision.
In addition, the Executive O cer Meeting controls progress in the achievement of the objectives.
System for reporting and reviewing environment-related issues, including climate change152

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Main themes regarding the environment, including climate change
Body
Chairperson
Major discussion items related to climate change
Discussions regarding goal of achieving carbon
neutrality by 2050
Establishment of Sustainability Policy
Formulation of new mid-term management plan
Report from the Sustainability Promotion
Board of Directors
Chairman of the Board Committee
Reports from research, development, and productplanning divisions and the Chief Technology
O cer
Reports from production and procurement
divisionsMid-term management plan progress report
Low-carbon product development strategies
Mining business growth strategies
Forestry machinery business growth strategies
Strategy Review
Smart Construction growth strategies
President
Committee
Growth strategies for major production bases
Report from the Sustainability Promotion
Committee
Reports from the Risk Management Committee
The Executive O cer President
Progress in product development (including
Meeting
climate change-related KPIs)
Body

Chairperson

Major discussion items related to climate change
Initiatives for addressing ESG issues
CSR activity reports
Deliberations and reports regarding importantenvironmental matters and key performanceindicators (KPIs)
Revision of environmental policies

Sustainability Promotion President
Committee
Risk Management
Committee

Executive o cer
supervising generala airsReport on responses to natural disaster risks

153

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Setting mid- and long-term targets and progress
Komatsu has been moving forward under the new mid-term management plan from 2022. We set new ESG
targets and expressed our commitment to sustainable growth through a positive cycle of pro t improvement
through growth strategies and initiatives for ESG issues.
Our 2030 target is to reduce CO2 emissions from product operation and production by 50%. In addition, as a
new indicator, we decided to aim for a ratio of 50% of renewable energy power (RE ratio) by 2030.
The 2030 target, including other indicators, is as follows:
Mid- and long-term targets
Area

Application

ObjectProducts

Construction
Equipment
MiningEquipment CO2
Forestmachines
etc.
CO2

Production

Domestic
andoverseas
production
basesElectricity

Index

FY2022
Base Year 2030 Targets Achievements
and Progress

Fuel
consumption 2010
reduction50％
reduction

21%
reduction

Improvement
rate of basic 2010
unit
Ratio ofrenewableenergy in total
electricity
usage

50%
reduction

43%
reduction

50%

17%

Water

Improvement
rate of basic 2010
unit

Waste

Improvement
rate of basic 2010
unit

154

2024 target:70%
reduction 69%
2030 target: reduction
underconsideration
40%
reduction

38%
reduction

ESG Databook 2023

Sustainability policy

Management ofWith people

sustainability

Area

With business

Application

ObjectJapan

CO2

Overseas

CO2

Logistics

External
evaluation--

With the planet

Data

activities

Index

FY2022
Base Year 2030 Targets Achievements
and Progress

Index

Improvement
rate of basic 2006
unit
Improvement
rate of basic 2011
unit
External
evaluation

Socialcontribution-

39%
reduction

39%
reduction

22%
reduction

17%
reduction

CDP
A List（Climate,
Water)DJSI World

CDP
Climate：A
Water：A
DJSI World:
Selected* We have achieved our previous 2030 target for water input volume (i.e. a 60% reduction in water input intensity compared with 2010)
and are now considering a new target.

155

ESG Databook 2023

Management of

Sustainability policy

sustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

Acquiring ISO14001
Komatsu has implemented a Group-wide initiative to acquire ISO14001 ISO14001:2015
Integrated
certification, an international standard for environmental management Domestic
Certification
systems. The objective is to enhance management quality bystrengthening systematic steps towards environmental conservation.
《Komatsu ISO Certification Status》*Except KMC

sites in Japan and other countries began to
From 1997 Production
acquire certifications individually.

The Komatsu Group in Japan acquires integrated
certification.
Main production sites in overseas countries achieve
2015
100% certification.
Sales and service divisions are added to integrated
certification in Japan.
Komatsu Customer Support Japan Ltd.
From 2018 2018:2019: Four bases (Nagoya, Osaka, Hiroshima, Fukuoka) ofKomatsu Industries Corp.
2022:One base（Kantou）of Komatsu Industries Corp.
2008* Except KMC: KMC has been carrying out internal audits by specialists from KMC or
Komatsu headquarters.

Scope of the integrated certification in Japan
Scope of the Integrated Certification in Japan (216KB)

Global operations list of certified sites
Global Operations List of certified sites（125KB）

156

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planetSocialData

contribution
activities

Index

Environmental policies of plants in Japan
Awazu Plant (212KB)

Kanazawa Plant (212KB)

Osaka Plant (212KB)

Oyama Plant (264KB)

Ibaraki Plant (160KB)

Koriyama Plant (212KB)

Himi Plant (212KB)

Shiga Plant (164KB)

Hiratsuka district (112KB)

Techno Center (208KB)

Test Engineering Center (82KB)
To view PDF files you will need to download and install
Adobe Acrobat Reader

157

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Relationship between business activities and theenvironment
Inputs and outputs in the product life cycle
The Komatsu Group procures various parts and materials and, through the manufacturing process, utilizes
the earth's resources, including raw materials, water, energy, and chemical substances, among others, toprovide products to customers. Such business activities have the potential to impact the environment at
each stage in the process.
The Komatsu Group will continue to provide high value-added products and services while assessing theenvironmental impacts resulting from its business activities, formulating medium- and long-term objectives,and introducing measures to reduce such impacts.

Environmental Impact Resulting from Business Activities of Komatsu Group Companies,
including Facilities outside Japan (FY2022)
Independent Practitioner's Assurance

Environmental Impact Resulting from Business Activities of Komatsu Group
Companies, including Facilities outside Japan (FY2022)(516KB)

158

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Environmental impact indicators by region
Scope1 : CO2 emitted directly by manufacturing
facilities
Independent Practitioner's Assurance

Scope2: CO2 emitted indirectly by manufacturing
facilities
Independent Practitioner's Assurance(by using generators, boilers, etc.)(by purchasing electricity, steam and hot water)

Energy Independent Practitioner's Assurance

Water Input Independent Practitioner's Assurance

CO2（Scope1 and Scope2)
Independent Practitioner's Assurance

Amount of generated waste
Independent Practitioner's Assurance

159

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Climate change
Mitigating climate change through products and service
Reducing CO2 emissions from construction equipment

The main bulk of CO2 emissions produced throughout the lifecycle of our construction equipment is centeredon product operation, during which approximately 80 to 90% of emissions are produced. We haveacknowledged this fact, and are working to reduce these operational emissions through three di erent
initiatives: “DANTOTSU Products”, “DANTOTSU Service”, and “DANTOTSU Solutions”.

Step1: reduction of CO2 emissions through DANTOTSU Products
We provide products which have been designed tooperate with great fuel e ciency while reducing
gross CO2 emissions. Komatsu pioneered the creationand introduction of the hybrid hydraulic excavator,
marked as the rst of its kind to be introduced into
the market.
These hybrid construction machines have beencerti ed by the Ministry of Land, Infrastructure,
Transport and Tourism of Japan as a “Low Carbon
Type Construction Equipment.”
As of April 2023, a total of 16 of our hybrid models
have received such certi cation, such as the HB215-3,
HB205-3, HB335-3, and HB365-3.
In addition to this, another 24 of our product models
HB335-3(including the bulldozer D71PX-24, the hydraulicexcavator PC78US-11, the wheel loader WA150-8)
have been certi ed to meet the Ministry of Land,
Infrastructure, Transport and Tourism's“Construction Machines Ful lling Fuel Economy
Standards” signifying these products as construction
equipment with great fuel e ciency.

160

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

Step2: reduction of CO2 emission by products through DANTOTSU Service (Komtrax)
The Komatsu Tracking System “Komtrax” is a system developed by Komatsu that automatically gathers theoperational information/health information of our construction vehicles that operate all over the world,
making it possible to then monitor/manage/analyze the vehicles remotely. Information with regards tooperation times, fuel consumption, and other such relevant data is communicated to our customers via theinternet, which is then analyzed to create opportunities for improvement. This enhanced operationale ciency helps to reduce fuel consumption, which results in a reduction in overall CO2 emissions.

Step3: reduction of CO2 emissions for overall construction work through DANTOTSU Solutions(providing solutions with Smart Construction)
In 2013, Komatsu introduced the world’s rst automatic blade control ICT bulldozer, D61PXi-23, to the North
American, European, and Japanese markets. Following this, in 2014, Komatsu developed and released ahydraulic excavator with semiautomatic control functions (PC210LCi-10 for North America and Europe, andPC200i-10 for Japan). Preliminary calculations based on in-house testing were promising, with construction
data for ICT hydraulic excavators showing that fore-slope shaping work using the PC200i-10 resulted in an
approximate reduction of 30% in fuel consumption. In addition, the same testing showed that ICT bulldozers(like the D61DXi-23) used in land preparation work resulted in an approximate reduction of 25% in fuelconsumption. Our testing with hydraulic excavators also showcased a signi cant decrease in CO2 emissions.
To consolidate our e orts in this sector, Komatsu is implementing “Smart Construction”, a system that uses
ICT-type construction machines alongside drones and 3D scanners to take real-time topographymeasurements. This initiative helps showcase the e ciency of our machines by recording progress inconstruction sites and other relevant performance indicators.

Reducing CO2 emissions from product operation
Komatsu has set the target of reducing the CO2 emissions from the operation of products (such as
construction, mine, and forestry equipment) by 50% by FY2030 (compared to FY2010).
To evaluate progress toward this goal, we compared the performance of the current year’s products to the
products of the reference year (FY2010) and estimated CO2 reductions through the improvement of fuelconsumption and work e ciency. The products of FY2022 achieved a CO2 reduction of 21%, compared to thereference year.
CO2 emission index for product operations Independent Practitioner's Assurance161

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index-Expanding the use of electric forklift trucks at worksites to achieve carbon neutralityKomatsu launched the FE25G-2 and FE30G-2 electric forklift trucks equipped with lithium-ion
batteries
To achieve carbon neutrality, in December 2022,
Komatsu launched the FE25G-2 and FE30G-2 for theJapanese market. These models are equipped withhigh-capacity lithium-ion batteries in the FE Series of
2.5-ton and 3.0-ton class electric forklifts that help
reduce CO2 emissions.
The new models inherit the FE Series truck
dimensions and other features (FE25-2 and FE30-2)
while adopting high-capacity, fast-charging lithiumion batteries and the newly-developed stationary fast
chargers. These batteries expand the scope of
application of electric forklifts. This makes themsuitable for sites where extended operation times(with no recharging time available) are required
FE25G-2 electric forklift truck with lithium-ion battery
and/or heavy attachments are used in heavy-duty
introduced to the market.
applications; domains previously served only byengine-powered forklift trucks. By increasing battery
capacity by 35% (compared with the FE25-2) for 2.5ton models and 22% (compared with the FE30-2) for
3.0-ton models, operating times have been extended
by approximately 20-30% (*1). Additionally, thecharging time to reach 100% charge has been
reduced from more than 8 hours to 1 hour and 50
minutes, about a quarter of the charging time of
Komatsu's conventional electric forklift trucks (*2). A
fast battery replenishment feature enables
recharging during downtime. Furthermore, theoptional dual fast charger enables full recharging inless than one hour, contributing to continuous
operation at sites where nding time for recharging
equipment is challenging.
By expanding the FE series lineup, we will further
increase the number of sites where electric forklifts
are operated and help to reduce our environmental
impact and achieve carbon neutrality.
*1 Based on in-house test results.
*2 FE series and other vehicles with lead-acid batteries.

162

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Development of an electronic hydraulic system for PC950-11 large hydraulic excavator-Significant improvement in environmental performance through the renewal of the hydraulicsystemKomatsu introduced a new 90-ton-class large
hydraulic excavator, model PC950-11 (bucket
capacity: 4.0 m3), to the market in July 2022. The
machine is equipped with an electronic control
closed-loop swing system, newly developed by
Komatsu, which regenerates energy during swing
deceleration using hydraulic pressure, thereby
realizing fuel savings. Additionally, a high-efficiency
oil flow recycle system has been introduced for arm
IN and boom RAISE functions to achieve both higher
equipment speed and reduced fuel consumption.
The hydraulic system is electronically controlled to PC950-11 hydraulic excavator
optimize the control of the hydraulic equipment per
the operating conditions of the vehicle body,achieving good operability and significantly reducing
hydraulic losses. The renewal of the hydraulic systemand the installation of a new engine have resulted ina 40% improvement in the fuel efficiency of the entire
vehicle body compared with the conventional PC8508E0. All of this machine’s major components, such as
control valves, main pumps, swing motors, travelingmotors, and hydraulic cylinders, are developed andmanufactured in-house. The hydraulic equipment
pursues "quality and reliability," the basis of
Komatsu's management policy, and thus reduces
machine downtime and helps customers improve
productivity at their sites.

Reducing CO2 emissions in manufacturing operations
As a part of our efforts to mitigate climate change, Komatsu promotes activities to reduce the amount of CO2
emissions per unit, using CO2 emissions per unit of manufacturing value as our main indicator for the amountof electricity, gas, oil and other types of energy used in research/development at our offices and in
manufacturing operations.
In FY2022, CO2 emissions from production activities increased both in Japan and overseas due to the
expansion of production volume. However, new photovoltaic and bioenergy facilities, green electricity
purchases overseas, and energy-saving activities, mainly at plants with high loads (such as those that
perform casting, forging, heat treatment, and machining processes) have enabled a 6% reduction in the CO2
emissions basic unit per internal manufacturing value over the previous year’s figure, which indicates a 43%
reduction compared with FY2010.
We also increased the proportion of our renewable electricity use to 17%. We will continue to actively
promote the introduction of new production technologies and improvement activities to reduce our CO2
emissions basic unit.

163

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

Item
FY2021 FY2022
CO2 emissions basic unit (compared to FY2010)
63
57
The rate of renewable energy use
14％17％

Target of FY2030
50
50％

Major achievements in FY2022
Japan
Improved productivity and energy e ciency of utility facilities
Expansion of photovoltaic facilities and biomass power generation
Overseas
Improved power factor of electric power facilities and forging methods
Expansion of photovoltaic facilities and green electricity purchases

CO2 emissions, energy indicators in production activities
CO2 emissions Independent Practitioner's Assurance

Note: The breakdown of emissions was changed to Scope 1 and 2.

Energy consumption Independent Practitioner's Assurance

The amount and ratio of renewable electricity

Independent Practitioner's Assurance

Note: Partially revised as a result of revisions to past data.

Note: Partially revised as a result of revisions to past data.

164

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Environmental advancements implemented in the new campus– Komatsu Mining, Milwaukee, U.S.
In 2022, Komatsu completed construction of a newcorporate campus in Milwaukee, Wisconsin, U.S.,
called South Harbor. The campus, which includes ano ce building and a manufacturing facility, engages
in the manufacture and sale of surface mining
equipment used around the globe. South Harbor was
designed with a focus on reducing energy and water
consumption and creating areas of biodiversity. The
campus’s o ce building has been certi ed LEEDGold, a globally recognized symbol of excellence ingreen building. South Harbor incorporates many
innovative features designed to help the company
reach its goal of reducing energy consumption by
South Harbor aerial view
75% compared to usage at legacy Milwaukee
facilities. Solar panel arrays and wind spires are used
to help power the buildings and parking structure.
Other features include LED lights with occupancy
sensors, and daylight harvesting technology that
automatically adjusts interior lights based on theamount of sunlight entering the buildings’ windows.
For the remaining energy consumed, renewableenergy credits are purchased equal to 100% ofelectricity used. To reduce water consumption, thecampus installed a rainwater collection system fornon-potable reuse in facility lavatories. All
manufacturing processes use closed loop watercooling systems. These improvements and others will
help Komatsu reach its goal of reducing the amount Expandable solar panel arrayof water consumed by approximately 80% comparedto legacy facility usage. Biodiversity is encouraged on
the campus grounds with planting hardy perennial
varieties that provide natural habitats and require nowatering. The environmental advancements
implemented at South Harbor will have a signi cantbene t in reducing energy consumption, reducing
water consumption and increasing biodiversity
throughout the site.

165

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Reduction CO2 emissions in logistics

CO2 emissions reduction conditions in global transport(Basic unit of CO2 emissions per cargo weight)
In domestic transportation, we have focused on reducing transportation distances through the e ective useof Kanazawa and Hitachinaka ports adjacent to manufacturing plants, improving long-distance and overlandtransportation by actively utilizing coastal vessels and railways (modal shift), and improving the loading
ratio. Although the increase in production volume in FY2022 led to an increase in transportation volume, theCO2 emissions basic unit index (per cargo weight) for transportation improved compared to the previous year
both in Japan and overseas, with domestic improving by 3 points and overseas by 5 points in the basic unit
index.
We will continue our e orts to reduce CO2 emissions by promoting more e cient transportation.
Independent Practitioner's Assurance
CO2 emissions in transport* A basic unit index is an index relative to the CO2 emissions per cargo weight in a reference year (2006 for Japan, 2011 forOverseas) as 100.

Reduction of CO2 emissions in domestic transportation
Using the railway to transport components and parts (from the Hokuriku region to the Kanto
region in Japan)
Komatsu is promoting a modal shift to reduce CO2 emissions generated by domestic transportation. In
FY2022, we focused on improving transportation between our plants in the Hokuriku and Kanto regions.
Speci cally, we switched from conventional overland transportation by truck to rail transportation using JR
containers to transport components and parts from the Hokuriku region (Himi Plant and Awazu Plant) to the
Kanto region (Oyama Plant and Ibaraki Plant). As a result of this improvement, we have reduced CO2
emissions by 150 tons per year.

d i

i i i l i i
166

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Japanese rail transportation route167

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Our challenge to establish recycling-based society
Development of our “Reman” remanufacturing business
Komatsu promotes the “Reman (remanufacturing) business” at our Reman plants/centers in 11 countries
worldwide. “Reman business” involves remanufacturing the used engines, transmissions, and othercomponents removed from construction and mining machinery that have been in operation at customer
sites for a long period. We engage in various processes involving the collection, disassembly, cleaning,salvage or replacement, reassembly. We subsequently conduct performance tests, paint, and conduct
shipping inspections before supplying the parts back to the market as newly manufactured components.
Each plant/center not only functions independently but is also connected to each other through a network toshare technical information necessary for Reman Business on a global basis. In addition, we obtain the
durability information of Reman components operating in the market and provide important feedback todevelop components with an optimum lifetime. With the Reman business, approximately 43,600 tons of CO2
reduction e ect in FY2021 was estimated compared to the case of making new products.
We o er the following bene ts to customers.
Quality and performance that matches new components
Lower cost for "remanned" components
Reduced idle time for construction equipment because of adequate inventory of "remanned"
components
Resource conservation and waste reduction through reuse and recycling of components

Changes in Reman sales (base FY 2010 = 100)168

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Reman factories and centers map

Reman process169

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Promoting resource recycling activities by Reman-Reinforcing recycled component operations with the launch of the new Reman plant in ChileKomatsu has opened a new Reman(remanufacturing) plant at Komatsu Chile (Santiago,
Republic of Chile) in La Negra in the Antofagasta
region. The plant manufactures and supplies highquality, high-e ciency Reman components to
support the supersized electric dump trucks
operating in mines in the northern region of Chile.
This Reman plant has improved area productivity
and the work environment by consolidating
functions and optimizing processes based on the
Komatsu Group's production technology.
Furthermore, the parts warehouse has been
consolidated and streamlined to provide customers
with 9,000 tons of prompt, high-quality Remancomponents per year, contributing to waste
reduction and resource recycling.
We will promote the following activities to further
reduce our environmental impact and make the plantcleaner.
1. Introduction of solar power generation andoperation with 100% renewable energy from green
energy providers.
2. Introduction of a plant water reuse system andgreen irrigation system.

E ective use of critical materials in products
Komatsu is working on the conservation and e ective use of limited resources by reusing critical materials
used in products, etc.
An increasing number of diesel engines, which are used in construction machines, are now equipped withexhaust gas processing devices to reduce the density of NOx (nitrogen oxide) and PM (particulate matter) in
exhaust gases. The exhaust gas processing devices use noble metals as a catalyst to reduce the density of
NOx and PM. To e ectively use these resources, Oyama Plant in Japan, for example, collects the exhaust gas
processing devices of construction machines that have been replaced and recycles the noble metals in them.
They are also recycling other critical materials to make them reusable, ensuring their e ective use andaiming to reduce the consumption of new critical materials.

170

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planetSocialData

contribution
activities

Index

Activities to e ectively utilize resources in production (1. waste)
Komatsu promotes activities to reduce waste discharge while also implementing "zero emission" activities torecycle and e ectively use the generated waste.
At our manufacturing sites, we are mainly working to convert waste plastic into valuable resources, reducewood waste by improving packaging methods, and reuse packaging materials. These improvements led to a
reduction of the waste emissions basic unit by 38% in FY2022 compared with FY2010.
We will promote the e ective use of resources at our plants in Japan and overseas to reduce waste
emissions.
Item
Index of waste generated per unit
(Reference year: 2010)

FY2021

FY202261

62

Target of FY2030
60

Major achievements in FY2022《Japan》
Reduction of wood chips through packing mode improvements for items procured overseas
Promotion of waste sorting to turn waste plastics into valuable commodities《Overseas》
Reuse of packaging materials for transportation
Amount of generated waste

Independent Practitioner's Assurance

171

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

E orts to convert biomass combustion ash into fertilizer (Awazu Plant)
Komatsu has operated wood biomass boilers using woodchips as fuel, predominantly made of unused leftover wood after forest thinning, at its Awazu Plant in the Kaga area of Ishikawa Prefecture since 2015. Thishas promoted energy savings, energy generation, and environmental impact reduction. Komatsu supports
the sound management of forests by using about 6,000 tons of woodchips annually, while disposing ofapproximately 20 tons of wood ash (biomass combustion ash) as industrial waste annually. Since thisbiomass combustion ash contains potassium and phosphorus, necessary nutrients of agricultural products,
Komatsu has been conducting research and development for fertilizer production in collaboration with the
Ishikawa Agriculture and Forestry Research Center and ASAHI AGRIA CO., LTD. since 2016. Komatsu registeredfertilizer as biomass combustion ash-based fertilizer with the Ministry of Agriculture, Forestry and Fisheries in
April 2022 as a promising raw material for a fertilizer that is accessible in Japan. Currently, the Awazu Plant
delivers almost all of the biomass combustion ash to ASAHI AGRIA as a raw fertilizer material, and ASAHIAGRIA promotes sales of the fertilizer made from biomass combustion ash to farmers in Ishikawa Prefecture
and other customers.

Fertilizer made from biomass combustion ash

Wood biomass boiler

172

ESG Databook 2023

Sustainability policy

Management ofWith people

sustainability

With businessWith the planetSocialData

contribution
activities

Index

Activities to e ectively utilize resources in production (2. water resources)
Given that our plants in the Hokuriku area of Japan use particularly large amounts of water, Komatsu
optimizes water use for snow melting purposes in winter and also reduces the amount of new water input inproduction processes by recycling cooling water for facilities and the air-cooling of water-cooling facilities.
In FY 2022, we reduced the basic unit of water input by 69% compared with FY 2010. Having achieved ourprevious 2030 target (60% reduction of water input basic unit compared with FY 2010), we have set a newtarget in our new mid-term management plan. We will continue to optimize water use and promote water
usage reduction activities in production and daily operations.
Item
Index of water input volume per unit
(Reference year: 2010)

FY2021

FY202236

31

Target of FY2024
30* New target for 2030 is under consideration.

Major achievements in FY2022《Japan》
Recycling cooling water for heat treatment facilities and air-cooling compressors
Optimization of water use for snow melting; installation of water-saving nozzles in welfare buildings《Overseas》
Use of rainwater and recycled water for sprinklers

Water input in production activities
Water input volume

Independent Practitioner's Assurance173

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Activities to reduce water consumption for air compressors, etc. (Komatsu NTC Ltd.)
Komatsu NTC is working to reduce water consumption by using groundwater for cooling air compressors andair conditioners and melting snow in winter. Historically, the water-cooled air compressors used to supply air
to the plant were often turned on, even when air was not being used, resulting in unnecessary water andelectricity consumption. However, the air compressor was remote from the work site and challenging tooperate, making it di cult for workers to stop the compressor easily. Therefore, Komatsu NTC installed a
remote ON/OFF one-touch button to enable workers to easily operate the air compressor directly from thework site. This made it easier to cease the operation of the air compressor at night and before holidays,
reducing water consumption by approximately 15,000 m3/year. When replacing the water-cooled air
compressors long since installed, the plant adopted an air-cooling system requiring no water, and to reduce
CO2 emissions, it adopted inverters, downsizing, and switched from an oil-free system to a water-lubricatedsystem. Furthermore, Komatsu NTC achieved a 60% reduction in water consumption in FY2021 compared to
FY2010 by sequentially replacing water-cooled air conditioners with air-cooled versions and changing thecooling water for heat treatment equipment from a pouring system to a circulating system. Komatsu NTC willcontinue its water-saving activities to coexist with nature.

174

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Environmental initiatives at sales and service companies
Support for sales and service divisions in developing environmental
management systems
Komatsu also continues to be committed to safety and the environment in the sales activities of KomatsuGroup construction machinery. To raise awareness about environmental management, in FY2022, we
supported the development of environment management systems and improvements of our worksites. We
also took further steps to provide support, such as conducting on-site compliance checks and following up
on improvement measures, as well as providing extensive remote study sessions and other educational
opportunities.
Item
CO2（kt-CO2）

FY2021

8.1

FY2022

7.54

Year-on-year
7.0％ decrease

Acquisition of ISO14001 certification
Komatsu Customer Support Co., Ltd. (“KCSJ”) has implemented activities in FY2022 to renew ISO 14001
certification, an international standard. We promoted environmental improvement activities mainly at ourcertified sites, including at the Head Office of each company, implemented standardized environmental
improvement initiatives at other sites, and successively renewed the certification of all companies, including
Head Offices, as planned.

Activities based on the environmental guidelines
We distribute our "Environmental Guidelines" to all of our sales sites,
and follow the guidelines in pushing forward with our environmental
activities. The guidelines summarize the rules and standards that should
be observed at the workplaces of our sales and rental companies incompliance with the law and also to avoid negatively impacting
neighbors in terms of waste disposal, wastewater treatment, control ofnoise and vibration and other problems deeply related to theenvironment. Representatives of Komatsu and a relevant company
Facilities Confirmation Status at Sales
jointly visit our sites (including on-site checks partly performed on aSites
remote basis), provide guidance to on-site workers and develop
proposals for improvement so that the environmental guidelines can beconsistently complied with.

175

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Proper discharge of waste
The waste discharge compliance management system (which centralizes the management of electronic
manifests, consignment contracts, permits, and more) has been introduced and has implemented unified
operations in all KCSJ companies and some Komatsu Group sales companies. This has enabled all divisions
to visualize the management control status of the waste generated at each site and to manage the systemproperly.

Reduction of environmental impact in our regular operations- Supporting the sale of environmentally friendly products -Komatsu has focused on the sales promotion of eco-friendly machines
such as machines equipped with Tier 4 Final which satisfies emission
regulations, ICT construction machines and battery forklifts, and has
aimed to reduce environmental impact through our operations (sales
and service). Moreover, we have introduced electric power excavators
into the market since FY2021 and have made proposals toenvironmentally conscious users.
Additionally, Komatsu Group sales companies are promoting the Smart A demonstration held at an IOT
Construction Retrofit Kit, which retrofits conventional construction
centermachinery with ICT functions, are actively promoting Smart
Construction methods, and are working to reduce their environmental
impact by improving on-site work efficiency. KCSJ has established IoTCenters throughout Japan where users can explore the functions of ICT
construction machines and experience the Smart Construction method
and is striving to increase awareness of construction methods with areduced environmental impact.

176

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Environmental risk management
Promoting legal compliance, and pollution mitigation and prevention
Komatsu complies with national and local laws and regulations and ensures that it periodically reports andmaintains measurement results.
In FY2022, there were three violations of environmental regulations in Japan, and each of them minor. No
fines are imposed and they have all been resolved.
At overseas sites, there were exceedances of effluent standards in North Europe (KFAB) and mismanagementof hazardous waste in Latin America (KCH). A fine of US$1,500 was imposed in Latin America; however, they
have since been resolved.

Addressing soil and groundwater contamination
Komatsu has established guidelines for testing soil and groundwater, inspects any business unit that isscheduled to be sold, closed, or removed pursuant to laws and regulations, and takes purification measuresupon confirmation by local authorities if contamination is discovered.
We voluntarily investigate business units in operation in order to test for contamination stemming from VOCs
in cleaning solvents, etc. used in the past.
We have been surveying soil and groundwater for VOC contamination at domestic business units since 2005,
and have implemented countermeasures at any sites that have been found to be contaminated. We use
methods that facilitate the cleaning process in the shortest period of time possible.
We will continue to thoroughly clean-up and regularly monitor groundwater at site boundaries to ensure that
there is no outflow of groundwater that has exceeded the standard outside the premises.

Managing PCB (Polychlorinated Biphenyl) waste
Komatsu stores and disposes of PCB-containing waste (such as transformers and fluorescent stabilizers) inaccordance with the "Act on Special Measures concerning Promotion of Proper Treatment of PCB Wastes"
and the "Waste Management and Public Cleansing Law".
Appropriate measures were taken for high-concentration PCB waste by the disposal deadline (end of March
2023). We intend to continue our appropriate treatment of PCB waste, including low-concentration PCB
waste, according to our plan.

177

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Management of chemical substances and pollution prevention
Reducing the amount of PRTR-related substances

In FY2022, the number of PRTR* substances with a handling volume of 1 ton or more (0.5 tons or more forClass I Designated Chemical Substances) was 25, unchanged from the previous fiscal year.
The PRTR substances xylene, ethyl benzene and toluene account for approximately 90% of the emissions
from Komatsu and Komatsu Group production sites. Most of these emissions are released into theatmosphere.
In FY2022, each business site made progress in switching to paint thinner, which contains less PRTR Class 1
substances, but emissions increased with the rise in production volume.
In FY2023, we will continue to make efforts to switch to paints containing less PRTR Class 1 substances,introduce high solids thinners and paints, improve coating efficiency, reduce coating film thickness, andrecycle paint thinner.
* PRTR: Law designed to mandate the disclosure of the amount of specific chemical substances released into the environment topromote the management of such substances (The notification system based on the PRTR Law)

Breakdown of the amount of PRTR-related substances released and transferred from Komatsugroup manufacturing facilities in Japan
Komatsu Group Manufacturing Facilities in Japan

Independent Practitioner's Assurance* Totals may not match exactly due to rounded decimals in individual categories.

178

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Amount of PRTR-related substances released into the atmosphere
Komatsu Group Manufacturing Facilities in Japan

Independent Practitioner's Assurance

NOTE: Substances handled in quantities 1 ton or more (0.5 tons or more for Class 1 specified)

Reducing VOC Emissions
The majority of VOC emissions are from VOCs contained in paint such as xylene and ethyl benzene.
Although emissions in FY2022 increased slightly compared to the previous year due to the rise in production
volume, we successfully maintained a 50% reduction in the amount of VOC emissions per unit ofmanufacturing value (compared to FY2005).

Amount of VOC Released
Komatsu Group Manufacturing Facilities in Japan

Independent Practitioner's Assurance179

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Reducing the use of substances of environmental concern and complying
with the EU REACH and SCIP regulation
Komatsu is aware of the harmful environmental impacts that certain materials possess, and has madecontinuous efforts from an early stage to reduce the use of a number of such substances. These included
asbestos, lead, and other such items. In FY 1999, we created our own list of banned and limited-use
substances (Refer to “Substances of Environmental Concern Banned or to Be Reduced for Use in Products”),
which was based in part on Japanese legislation (Japanese Law Concerning the Examination and Regulationof Manufacture of Chemical Substances Control) that banned a number of chemical materials as well as
regulatory measures in other countries.
We have also implemented more stringent measures in the control of substances that raise environmental
concerns. In compliance with REACH*1 and SCIP*2, we began revisions of our FY 1999 listing of banned andlimited-use substances. We have also collaborated with suppliers to create a regulatory system thatstrengthens control of potentially harmful materials being used for production. We have rolled this system
out in Japan and Europe, with plans to continue implementation in other areas of operation.
Through the use of this system, we identify SVHC (substances of very high concern) in not only vehicles forexport to the EU or produced at local EU companies, but also in vehicles currently in production and in newly
developed vehicles. Furthermore, we also regularly check for new SVHCs to be added to the list.
As of 2023, there are 233 SVHCs registered, with the list being revised every six months. We expect thisnumber to increase to about 1,500 in the future. We have also devised a workflow to monitor control of thesesubstances.

Control system for substances of environmental concern

180

ESG Databook 2023

Sustainability policy

Management ofWith people

sustainability

With businessWith the planet

Data

Socialcontribution
activities

Index

Substances of environmental concern that are banned, or are to see reduced use in production
Rank

BannedNumber21

To be reduced(Subject tolimited use)

15

Substances ofVery High
Concern(SVHC) under
EU REACH
Regulations(233)*5

Chemical SubstanceCadmium
Tri-substituted Organostannic
Compounds
Asbestos

Hexavalent Chromium
PBB/PBDE/DBDE *4/HBCDD
PCBTrichloroethylene
PFOS (Perfluorooctane
sulfonate)

Triethanolamine
RCF(Fire-Resistant Ceramic Fibers)(Alumina and Scilica Types) *4
Hexachlorobutadiene *4
Arsenic
Specified phthalate ester (DEH
P/DBP/BBP/DIBP) *3
Methanol

Pentachlorothiophenol *4
Lead
Alternative CFCs (HFC)

Mercury
Sulfur Hexafluoride *4
Specified CFCs/Alternative
CFCs (HCFC)
Hexachlorobenzene
2,4,6-Tri-tert-butylphenol *4
Selenium
Specified Chlorinated Flame R
etardents (TCEP)
DZ

Polycyclic Aromatic Hydrocarb
ons (PAH)
BNST
DOTE
UV327
Komatsu controls the use of the following substances, which might be used in Komatsu products.
DEHP/DBP/BBP/DIBP etc
HBCDD/DBDE/
RCF(5 substances)
Trisphosphates(2-Chloroethyl)Specified Lead Compounds
DOTE
UV327
(4 substances)*1 REACH: EU regulations for the Registration, Evaluation, Authorization and Restriction of Chemicals*2 SCIP (Substances of Concern In articles as such or in complex objects (Products))*3 Diethylhexyl phthalate, dibutyl phthalate, benzyl butyl phthalate, diisobutyl phthalate*4 Review for stricter limits due to regulatory trends.
*5 The number of substances registered up until May, 2023 (progressively updated). Includes materials that are not contained in Komatsu construction equipment

We are reducing and ending our use of substances of environmental concern. One of our efforts to achieve
this is our plan to replace components containing specific phthalate esters with alternatives by 2024.

181

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

NOx and PM emitted from products
To reduce the NOx (nitrogen oxide) and PM (particulate matter) contained in the exhaust gases of diesel
engines, which are used in construction equipment and other machinery, new emission control regulations
have been established, and we have been developing products that emit cleaner exhaust gasses. About 78%of the construction machinery manufactured in FY2022 complies with regulations equal to or more stringent
than U.S. Tier 3 and EU Stage IIIA regulations. As a result, the average NOx and PM emitted by theconstruction equipment products produced by Komatsu are shown below:
Average emission value of NOx and PM Independent Practitioner's Assurance
FY2020
FY2021
FY2022NOx(g/kWh)
3.1
3.5
3.5
PM(g/kWh)
0.16
0.18
0.17

Komatsu's efforts regarding water
Due to climate change, population growth and other phenomena brought by global warming, risks of riverflooding, droughts, water shortages and other water-related problems have surfaced all over the world andare becoming more serious every year.
The Komatsu Group believes that everyone has the right to access to safe and sanitary water, and we respect
it as one of the most important rights. We also fully understands that we depend on that water and ourbusiness operations are influenced by and exert influence on the quantity and quality of that water.
Therefore, we engage in production activities that minimize environmental impact, provide good products
and services and take appropriate actions to mitigate water-related risks in an effort to conserve local water
resources and ensure that the water stays safe. It is our goal to promote these activities at All Komatsu andlead to the conservation of the global environment.

Basic initiatives
1. In our production activities, to reduce water consumption in cleaning and other processes, we set
objectives and are continually carrying out water reduction activities. In addition, we promote theintroduction of water circulation systems that collect used water for recycling at selected bases toincrease the efficiency of water use. When returning the water discharged from production and sales
bases to nature, we dispose of it in compliance with national and regional laws and regulations and also
the management standards we have established.
2. Using construction machines equipped with ICT and other advanced technologies, we contribute tomeasures mitigating water-related risks such as safe and efficient shore protection work and disasterrelief work.
3. We regularly carry out water-related risk surveys at our production bases, sales bases, and suppliers andtake appropriate measures to mitigate risk.
4. We provide quality drinking water and sanitary services to those involved in our business, including the
local community.

182

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

5. We learn about water together with stakeholders to raise our awareness of water and our responsibilities
and aim to realize better planet and future.
6. We carry out water-related initiatives and proactively disclose achievements.
Through these initiatives, we contribute to the SDGs, a set of common goals for the world.

Actions against water-related risks
Based on the Komatsu Earth Environment Charter, the Komatsu Group has promoted the reduction of water
usage and recycling and has carried out activities, mainly for the protection of water quality. In 2020, we
conducted a water-related risk survey at our 76 main offices in Japan and other countries, irrespective ofwhether they handle production. In this survey, we conducted (1) versatile and objective identifications ofwater-related risks using WRI Aqueduct, and (2) subjective awareness surveys of water-related risks that
Komatsu considers to be important. Combining these two surveys, we expanded the scope of the waterrelated risk survey and increased its accuracy. The water-related risk survey showed that Komatsu Group
had some areas facing risks of disasters such as heavy rains, river flooding and tsunami (including risk
awareness to the supply chain) .
Going forward, we will conduct a water-related risk survey on a regular basis to keep updated on the waterrelated issues of the Komatsu Group.

Water stress risk survey by area
Using WRI Aqueduct, we surveyed 34 main production bases of the Komatsu Group about water stress risks
in the water resource usage required for their production activities, such as clean water (tap water/citywater), industrial water (clean water for industrial use), and well water. We corrected the results from WRI
Aqueduct based on unique evaluations of the specific business locations.
As of 2020, the business locations whose water stress risks were rated as high or middle-to-high account for
9% of our water usage. While approximately 64% of the water used by Komatsu as a whole was well water,
we found that all of the water used in the business locations with high or middle-to-high water stress risks
was clean water and that water usage reduction and water recycling are important for securing water
resources in these areas.
The table below presents the results of the water risk assessment of production sites aggregated bypersonnel ratio.
Water Risk Survey of Global Production Sites (Percentages are personnel ratios)
Survey cover ratio
Water stress high risk ratio
Flood high risk ratio

100％
8％
8％

183

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

We will effectively use these survey results for activities we have conventionally engaged in, such as thepromotion of water usage (input volume) reduction and recycling, adaptation to physical risks of heavy rain
and flood, aiming to reduce the water-related risks the Komatsu Group is exposed to. In addition, whenplanning the construction of a new business base or the transfer of a base, we will survey water stress in thatarea to identify the risk level.

Domestic case studies (Oyama and Tochigi plants)
We have initiated the construction of multiple safety measures against the risks imposed by heavy rain.
These include the building of three reservoirs (capable of holding up to an hour's worth of 100mm/h rainfall),installation of heavy rainfall water pipes, the construction of underground reservoirs, and the widening of
rainwater drainage ways. In addition to this, we have installed water block walls and stop bars to prevent
water from flowing outside of the premises.
* Our reservoirs also serve to alleviate the surrounding district's lack of drainage capacity.

Current Status of Reservoirs:
1. Oyama Plant 20,000 ton 10,000 ton and 4,000 ton reservoirs
2. Tochigi Plant 12,000 ton reservoir

International case studies (KIPL: Komatsu India Pvt. Ltd.; and KRA: Komatsu Remanufacturing
Asia)
KIPL: Flooding from rivers may enter the parts warehouse and remanufacturing store during heavy rainfall.
The following measures have been taken to prevent the entry of river flood water:
1. Installation of a rainwater drainage ditch outside the parts warehouse and remanufacturing store;
2. Installation of a rainwater drainage ditch around the test track and water treatment facility (by 2024).
KRA: This area receives heavy rainfall and is located in a canyon, so large amounts of water may enter thesite. The following measures have been taken to prevent the entry of water:
1. Installation of a protective wall to prevent the entry of water from the plant entrance;
2. Installation of a concrete wall and drainage ditch.
Our water-related risk survey was conducted at the operations of one of our main supply chain companies(Midori-kai), and Midori-kai has made collaborative efforts in our water-related risk reduction activities since
FY2017.

184

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

Compliance and risk audit at overseas group companies
Komatsu has been conducting planned compliance and risk audits (CR audits) since FY 2007 for risk
prevention at overseas group companies with the support of environmental managers at mother plants inJapan.
In FY2022, we conducted audits in Southeast Asia and the United States. We conducted remote audits inSoutheast Asia, where the time difference is minor, and the effects of the new coronavirus were not yet
completely eradicated, and on-site audits in North America, where the risk of infection began to subside. The
results showed that none of the companies had any major problems that could lead to environmental risks,
and they were all actively engaged in activities to reduce their environmental footprint. Remote auditing
does not enable us to see what is happening at the site. We used the check sheet in our fact finding about thesites, as is done in a typical audit. In addition, we gathered many different documents about the results ofwater tests and the administrative procedures of local affiliates before beginning the audit. We also
conducted a paper audit. We plan to mainly conduct on-site audits, but will continue to carry out follow-ups
checks using a web conference system as needed at areas where audits have already been completed, andplan to conduct further environmental audits of our group companies in other regions.

Past Environment Audits
Year
Area
2007
China
2008
—
2009
Thailand and Indonesia
2010
India
2011
Brazil
2012
Russia and Czech Republic
2013
United State

2015
2016
2017
2018
2019
2020
2021

2014

2022

United States and Brazil

Year

Area

ThailandIndia and Indonesia
Russia and China
Indonesia and Brazil
China and the United States
EuropeChina and Europe
Southeast Asia and the UnitedStatesHolding regional environment meetings
At overseas business units, employees in charge of the environment and safety in each region have gathered
to hold regional meetings since FY2019. By exchanging information of and discussing common issues in theregion, they aim to improve compliance and the level of the environmental impact reduction activities at
each business unit. Meetings in FY2022 were held in North America, Latin America, Europe, Southeast Asia,
South Africa and China, with the exception of Oceania. In these regions, meetings were held online due to
COVID-19. These meetings were all attended by many participants who reported on their companies’
environmental activities. Through activities like this, we would like to further revitalize the environmental
activities of the Komatsu Group.
185

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Biodiversity Initiatives
Recognizing the potential impact of our business activities on our ecosystem, we have taken steps tomaintaining our commitment to protect biodiversity in our areas of operation.

Initiatives that deal with biodiversity
With the establishment of Komatsu's "Declaration of Biodiversity" and "Biodiversity Guideline" in January
2011, Komatsu business units worldwide began activities designed to preserve biodiversity.
Komatsu promotes initiatives to preserve biodiversity on two levels.
First, the Company continues to promote ongoing efforts to reduce the environmental impact of Komatsu's
business activities. Komatsu also considers biodiversity when deciding how land is to be used, such as whenbuilding factories.
Second, Komatsu is becoming directly involved in the preservation of biodiversity, and at the same time
expanding our "one-site, one-theme activities" to raise employee's awareness of the need to preserve local
ecosystems.

Komatsu Declaration on Biodiversity (Revised June 2023)
Komatsu recognizes that its business activities are dependent on and influence the biodiversity of
ecosystems.
Based on this understanding, Komatsu strives to take actions in accordance with the guiding
principles described below, as it shares a sense of responsibility regarding the biodiversity crisis, andstrives to conserve diverse resources and promote their sustainable use.
Ⅰ(Recognition by Management)
Komatsu recognizes that the conservation and maintenance of biodiversity are importantmanagement tasks.
Ⅱ(Initiatives)
Komatsu shall promote its biodiversity activities integrally with those to address climate change
issues from the following two perspectives.
1. Komatsu shall reduce the environmental impact of its business activities which are affecting
biodiversity.
(1) Reduction of environmental impact of products(2) Reduction of direct environmental impact from products throughout their lifecycle.
(3) Contribution to sustainable forestry management by promoting mechanization of allprocesses from planting, cultivating, and harvesting trees.

186

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities(4) Consideration for biodiversity in land use
In particular, avoid operational activities in areas and near sites of containing globally or
nationally important biodiversity.
2. Komatsu shall work for the conservation and maintenance of biodiversity through its social
contribution activities.
Ⅲ(Operation)
Komatsu shall promote activities by means of a step-by-step approach, taking feasibility into
consideration.
Ⅳ(Working with the external partners)
In order to protect biodiversity in the regions in which we operate, Komatsu will undertake activities
together with administrative agencies, local citizens, NGOs and other entities; by doing so we aim tobecome a corporation local communities can be proud of.
Ⅴ(Full participation activities)
Komatsu will promulgate the importance of biodiversity to all employees and undertake activities
with their full participation. We will involve our suppliers and dealers as well as customers related to
the lifecycle of Komatsu products in these activities and promote our initiatives on a global groupwide scale.
Ⅵ(Communication)
Komatsu will educate and disclose related information to employees. In addition, Komatsu will
actively disclose information on activities being undertaken and work to contribute to heightening
the level of societal awareness of the importance of biodiversity.
*Sites containing globally or nationally important biodiversity:
Species classified as Critically Endangered, Endangered, or Vulnerable on the IUCN Red List, endemic species
Internationally recognized areas: World Heritage sites, Ramsar Wetlands, UNESCO MAB
Nationally important biodiversity can include legally protected areas, habitats, and species.

Biodiversity activities
Komatsu established its Declaration of Biodiversity and Biodiversity Guideline in January 2011. For the 10
years since then, we have continued to perform One-site, one-theme activities at each base (plant and office)globally.
2020 is a landmark year as 10 years have passed since the Conference of the Parties (COP10) was held and the
Aichi targets were selected. 2021 is a milestone as it marks the tenth anniversary of Komatsu’s Declaration of
Biodiversity. Coinciding with this, we distributed a questionnaire to the Komatsu Group and surveyed theirbiodiversity conservation activities to identify future subjects and policies to implement in the future.
The results of the survey, showing the status of each base, are below.
The management of each base recognizes and understands the biodiversity conservation activities to be an
important management task, and all employees participate in the activities.
187

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Because the activities also serve as environmental education for the next generation (e.g. the children of
the employees and the community) and are promoted in cooperation with the government and local
communities, the activities have gained the understanding of the community and are also a source of pridefor the community.
Recognizing that biodiversity conservation activities are closely associated with the establishment of asociety in harmony with nature, they have set not only goals for the biodiversity conservation activities in a
restricted sense but also improvement goals for CO2 and water consumption and waste reduction in ouroperations (throughout the life cycle) and are implementing activities to achieve them.
In the future, to expand biodiversity conservation activities to the entire life cycle, we will explain these
activities to the supply chain and motivate them to proactively participate in activities.

[Examples in Japan and other countries]
1．Land use consideration

Koriyama Plant: Biotope on the premises

Hensley's Dallas facility：Bioswale

2．Community contribution

Oyama site: Tide prevention forest restoration volunteer
project in Iwaki

Planting a tree in Inner Mongolia (China)
188

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

3．Ecosystem conservation

Oyama Plant: Around the Manabi-no Mori

Rare vegetation preserve on the plant’s premises(Indonesia)

4. An example of activities at our business sites (PT Komatsu Indonesia)
PT Komatsu Indonesia is working to conserve biodiversity to realize a sustainable society as a manufacturing
company. The company has been promoting a reforestation project in a forest reserve in West Java,
Indonesia, to cultivate different species of trees in an area of approximately 268 hectares. In addition toenriching the existing ecosystem, these activities have also helped to conserve various species of flora andfauna. In addition, Komatsu has enriched the ecosystem at its Indonesian site to grow about 40 different
species of trees and plants, coexist with plants and animals in reservoirs and encourage birds to settle in thearea. Recognizing that Komatsu's business activities depend on and affect biodiversity, the company willcontinue its efforts to contribute to biodiversity conservation.

Improvement of the riparian environment in PT Komatsu Indonesia

189

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Data

Environmental data

191

Amount of CO2 emissions by scope3

197

SBT (Science-Based Targets) approved

198

Environmental education

199

Environmental accounting

202

Major environmental achievements in FY2022

204

Scope of environmental data/calculation
standards

209

Independent practitioner's assurance

213

Other CSR data

214

190

ESG Databook 2023

Sustainability policy

Management ofWith people

sustainability

With businessWith the planetSocialData

contribution
activities

Index

Environmental data
1.Changes in major environmental data
Independent Practitioner's Assurance
Item

Scope1 CO2 emission
Scope2 CO2 emission
Scope1+2 emission
Scope3 CO2 emission
Energy consumption
Renewable electricity use
Renewable electricity ratio
Generated waste
Water input

FY2018132386
519
29,769
9,826
43.0
5
117.8
3,963

FY2019112
292
404
22,125
8,183
76.6
11
95.6
3,570

FY2020104
278
382
21,729
7,838
84.7
13
74.2
3,238

FY2021
109
352
461
30,893
9,612
111.8
14
92.7
3,140

FY2022
Unit
113 kt350 kt464 kt34,271 kt
9,916 TJ
145.7 GWｈ
17 %104.0 kt
3,081 thousand m3

Note: The above data show total data for manufacturing sites
Note: Partially revised as a result of revisions to past data.

2．Manufacturing sites
Total of Manufacturing Sites

Energy consumption

Water input
Total emissions of waste

Independent Practitioner's Assurance
Item
Purchased electricity
Light oil,Gasoline, et al.
Gas
LPG
District heating
Steam
Total energy consumption
CO2
Private Power generation

191

Actual value
824 GWh
10,826 kℓ
29,907 thousand m3
6,239 t
8 GWh
5,606 t9,916 TJ
464 kt-CO2
22 GWh3,081 thousand m3
103,978 t

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

Japan

Environmental impact

With businessWith the planet

Data

Socialcontribution
activities

Index

Independent Practitioner's Assurance

Item
Total CO2 emissions
NOx total amountSOx total amount
Total emissions of waste
BOD emissions
COD emissions
Wastewater
Output of in-house power generation

Actual value
220 kt-CO2
43 t
4t
19,071 t
6t
9t
1,828 thousand m3
14 GWhItem
Actual consumption Converted to calorie equivalents (TJ)
Purchased electricity 414 GWh
3,923
Heavy oil A
3,065 kℓ
119
Kerosene
2,065 kℓ
75
3,736 kℓ
142
Energy consumption Light oil
City gas
4,110 thousand m3
169
LPG
4,971 t249
Gasoline
129 kℓ4
Biomass, Solar
104
4,786
Total
Water input

GroundwaterIndustrial water
Supply water
Total

1,796 thousand m3
0 thousand m3
225 thousand m3
2,020 thousand m3*1）Total emissions of waste are expressed as a composite of the amount recycled and the amount disposed.
*2）Output of in-house power generation includes electricity sold.

192

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

The Americas

Energy consumption

Water input
Total emissions of waste

EuropeEnergy consumption

Water input
Total emissions of waste

With businessWith the planet

Data

Socialcontribution
activities

Index

Independent Practitioner's Assurance

Item
Purchased electricity
Light oil,Gasoline, et al.
Gas
LPG
District heating
Steam
Total energy consumption
CO2
Private Power generation

Actual value
142 GWh768 kℓ12,278 thousand m3
244 t
- GWh
-t
1,886 TJ
41 kt-CO2
1 GWh
294 thousand m3
41,418 t
Independent Practitioner's Assurance

Item
Purchased electricity
Light oil,Gasoline, et al.
Gas
LPG
District heating
Steam
Total energy consumption
CO2
Private Power generation

193

Actual value
31 GWh138 kℓ
3,944 thousand m3
1t
8 GWh
- GWh
478 TJ
11 kt-CO2
1 GWh
66 thousand m3
10,982 t

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

Asia

Energy consumption

Water input
Total emissions of waste

With businessWith the planet

Data

Socialcontribution
activities

Index

Independent Practitioner's Assurance
Item
Purchased electricity
Light oil,Gasoline, et al.
Gas
LPG
District heating
Steam
Total energy consumption
CO2
Private Power generation

Actual value
238 GWh925 kℓ
9,575 thousand m3
1,023 t- GWh
5,606 t2,767 TJ
192 kt-CO2
6 GWh
701 thousand m3
32,507 t*1）Total emissions of waste are expressed as a composite of the amount recycled and the amount disposed.
*2）Output of in-house power generation includes electricity sold.

Independent Practitioner's Assurance
Scope-2 CO2 emissions (Total of production sites)
Standard
Location-based
Market-based

CO2(kt）

194

424
363

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

３．Sales and after-sales sites
Independent Practitioner's Assurance

FY2022 Komatsu Customer Support Japan Ltd. Environmental performance data
Company Name
Location
Activities
Number of bases
Number of employees
Data of ISO14001 certificationacquisition

Komatsu Customer Support Japan Ltd.
Shirokane, Minato-ku, Tokyo
Sale, service and rental of construction equipment and forklift trucks
214
4,598
May 2018

Environmental impact

Item
Total CO2 emissions
Total emissions ofwaste
Amount recycled
Recycling rate

Energy consumption

Item
Electricity
Heavy oil A
Kerosene
Light oil
Gasoline
LPG
City gas
Total

Actual value
7.5 kt-CO2
12,020 t
10,071 t
83.8 %
Actualconsumption
13.9 GWh
120 kℓ406 kℓ
87 kℓ
7 kℓ
18 t
50 thousand m3

195

Converted to calorie
equivalents (TJ)
132.2
4.7
14.8
3.3
0.2
0.9
2.1
158.2

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

４．Other sites
Independent Practitioner's Assurance
Manufacturing
facility included
Environmental
impactEnergyconsumption

Site data of non-manufacturing divisions
Head Office, Advanced and Core Technology Center, Field Testing Department,
Techno Center, General Education Center, Shinomiya Building T, Recreaion Facilities（5 sites）
Item
Actual value
Total CO2 emissions
4.1 ktto calorie equivalents
Actual consumption Converted
Item
(TJ)
Purchased electricity 6.4 GWh
61.0
Heavy oil A
87 kℓ
3.4
Kerosene
78 kℓ
2.8Light oil
304 kℓ
11.6
City gas
0.4
9 thousand m3
LPG
68 t
3.4
Gasoline
2 kℓ
0.1
Total
82.6

196

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planetSocialData

contribution
activities

Index

Amount of CO2 emissions by scope3
Independent Practitioner's Assurance
Category
Scope3 (1)Manufacturing of Purchasable Goods
Scope3 (2)Capital Goods Construction and others
Scope3 (3)Fuel Procurement
Scope3 (4)Upstream Transportation disposal
Scope3 (5)Waste Transportation
Scope3 (6)Business Trips
Scope3 (7)Commuting
Scope3 (8)Upstream Leased Assets Operation
Scope3 (9)Downstream Transportation
Scope3 (10)Processing Sold Products
Scope3 (11)Customer Use
Scope3 (12)Product disposal
Scope3 (13)Downstream Leased Assets Operation
Scope3 (14)Franchise Member Companies
Scope3 (15)Investment Management
Total CO2Emission Amount (kt-CO2/year)

Rate (%)

9.9
0.4
0.4
0.3
0.0
0.3
0.1
88.6
0.1
100.0

Summary Data kt-CO2
3,382
127
122
110
13
93
44
30,361
20
34,271

Note: When the figures in each category are rounded or truncated .
The amount may not coincide with the aggregate of the relevant gures.
Category 8 is included in Scope1,2, when it's evaluated.
Category 13 is included in Category 11, when it's evaluated.
Categories 14 and 15 have no activities subject to evaluation.

Reference: Pie chart for Scope 1, 2, and 3

Independent Practitioner's Assurance197

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

SBT (Science-Based Targets) approved
SBT (Science-Based Targets) approved
Komatsu's CO2 reduction objectives have renewed certification by
SBT as of March, 2022.
Science-Based Targets (SBTs) are greenhouse gas emission
reduction targets consistent with the requirement of COP21 (Paris
Agreement).
Komatsu's SBT are as follows
1. SCOPE1+2: Total -30% (Target Year 2030; Base Year 2019)
2. SCOPE3: Total -15% (Target Year 2030; Base Year 2019)

Independent Practitioner's Assurance

Progress of SBT
FY2021

Base year(2019)
Scope1+2

470 (kt-CO2)
Scope1 128 (kt-CO2)
Breakdown
Scope2 343 (kt-CO2)
Scope3Rate of
Emissionchangeamount(from baseyear)
521 (kt-CO2)+11%
123 (kt-CO2)-3%398 (kt-CO2)+16%

20,819 (kt-CO2) 27,310 (kt-CO2)

FY2022Rate ofchangeEmission(from baseamountyear)
524 (kt-CO2)+11%
128 (kt-CO2)
0%396 (kt-CO2)+16%+31% 30,361 (kt-CO2)+46%* Scope1+2 includes manufacturing sites and major sales sites etc.
* Scope3 indicates category-11 (customer use)
* Note: Partially revised as a result of revisions to past data.
* Scope 1 and 2 emission amounts may not match exactly due to the use of decimal points.

198

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

Environmental education
Komatsu is committed to employee education with regards to good environmental practices. Under our basic
framework, provision of education is divided according to two unique categories according to type;
Dissemination of common knowledge falls under the oversight of the Head Office, whereas specificvocational training is managed by respective divisions.
In FY2022, we focused on the online education programs for training and improving the competenceof internal auditors on the environment and safety.
Environmental education for new managerial-level employees, which was begun in FY2014, is currently
being provided online.
Despite the fact that we already meet the legislatively mandated quota of personnel with environmentrelated certification, we intend to implement further training in order to increase this number.

Courses in environmental education and training in Japan (excluding
general environmental courses) *Independent Practitioner's Assurance

Head officeNo.

Course name

Targetappointed manager
1 Newlytraining

Komatsu Group newly
appointed managers
New Employees
2 Training new employees(Komatsu and affiliates)
Advanced environmental
Environmental
specialists
3 education(held every two years)(Komatsu and affiliates)
Managers
4 Overview of the ISO14000 series (Komatsu, affiliates, andbusiness associates)
auditorsof internal auditors / Environmental(Komatsu,
affiliates,
and5 Training
Refresher courses
business associates)
Development andDevelopment
andmanufacturing
manufacturing staff
6 (introductory)(for second-year
employees)

199

Participants
FY2019 FY2020 FY2021 FY2022
155 207 182 213
383

318

314

288

19

-

19

-

46

98

182

259

87

80

182

190

190

208

202

140

ESG Databook 2023

Sustainability policy

Management ofsustainability

No.

With people

With businessWith the planet

Course nameDataon the environment,
8 Lectures
experience-oriented education

Index

activities

Participants
FY2019 FY2020 FY2021 FY2022

Targettraining for7 Environmental
manufacturing engineers

Socialcontribution

Assistant foremen/
foremen/ manufacturing
145
engineers/ students ofKomatsu Institute ofTechnology
Komatsu Group
1,267
employees

80

218

129

645

745

411

Note: Partially revised as a result of revisions to past data.

Independent Practitioner's Assurance

Divisions overseeing environmental management at plants
Komatsu and Komatsu Group manufacturing facilities in Japan(including Advanced and Core Technology Center, Field Testing Department)No.

Course name

Targetin the basics of
1 Education
auditing

Managers andemployees
and2 Overview of the ISO14000 series Managers
employees
Environmental auditors
3 Training of internal auditors
New Employees
4 Training new employees
education and
Employees (and other
5 Regulatory
personnel exchange
participants)
Environmental
conservation
practitioners (persons
6 Specialist training
involved in regulatory
affairs, etc.)

Participants
FY2019 FY2020 FY2021 FY2022
196
57
57
35
565 351 338 175
26
13
13
5
1,205 1,075 1,351 1,605
15 172 123 247
429

370

435

581

* In addition to the education and training courses listed above, Komatsu also held courses dealing with environmental issues intended
for sales agents.
Note: Partially revised as a result of revisions to past data

200

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Number of persons having environment-related certificate
Independent Practitioner's Assurance
Komatsu and Komatsu Group manufacturing facilities in Japan(including Head office, Advanced and Core Technology Center, Field Testing Department)

Certificate name
Pollution control administrators
Energy administrators
Environmental management
system associate auditors

Number of persons with certi cate*
FY2019FY2020
FY2021220（35）225（35）206（35）
37
37（9）
36（9）
（9）

FY2022202（35）
34（9）

5

4

5

4

* Figures in parentheses indicate the number of officers required.
Note: Partially revised as a result of revisions to past data.

201

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planetSocial

Data

Index

contribution
activities

Environmental accounting
Komatsu fully reports on the content of our environmental accounting systems in order to obtain an
objective and accurate evaluation of our environmental conservation activities.

Environmental costs (investments and expenses)

Independent Practitioner's Assurance
Komatsu and Komatsu Group manufacturing facilities in Japan (except group companies in the facilities),
Field Testing Department and Manda area

Category
1.Business area cost

Investment

FY2021

Investment*1(millions of yen)

1,762

Investment*1(millions of yen)

FY2022
Contents

2,174

434

342

Countermeasureconstruction for
torrential rain,
installation ofwater quality
monitoring
equipment, etc.

1,008

1,638

Installation ofsolar panels, etc.

320

195

2.Upstream/
downstream cost

02

3.Administration cost

58

47

(1).
Pollution
prevention cost
Breakdown(2).
Globalenvironmental
conservation
cost
(3).
Resource
circulation cost

Expenses

FY2021

Expenses*1(millions of yen)

2,180

Expenses*1(millions of yen)

FY2022
Contents

2,291

328

356

Environmental
measurement andsludge/soil
treatment costs

969

936

Biomass boiler fueland other facilities
maintenance costs,
etc.

883

999

Waste material
processing cost

316

661

Greening of thearea around
manufacturing
sites, etc.

1,100

1,146

Investment in air
conditioning andventilationequipment forengine testing andelectrode foil
coating machine,
etc.*2

19,96325,343

Installation of soil
classification
systems, etc.
Installation of
pallets for large
frames, etc.

4.R&D cost

191

4,342

5.Social activity cost

0

0

9

10

6.Environmental remediation
cost
Total

0

0

366

121

2,011

6,564

23,94429,572

Reduction of theenvironmental
impact of massproduction units
Cost of creating
green spaces andbeautifying
manufacturing
sites
Biodiversity survey
costs
Cost of R&D
activities to reduce
the environmental
impact of products
Cost of R&D
activities todevelopenvironmentallyfriendly
construction
equipment
Depreciation of
investment indevelopment
facilities*2
Cost of community
beautification
activities
Membership fee for
local
environmentalgroupsSoil contamination
remediation costs*1 All figures are rounded off to the nearest million yen.
*2 From FY2022, the capital investment and depreciation expenses of the Development Division are included.
202

ESG Databook 2023

Sustainability policy

Management ofWith people

sustainability

With businessWith the planet

Data

Socialcontribution
activities

Index

Environmental effects
Independent Practitioner's Assurance

Environmental impact reduction effects

Komatsu and Komatsu Group manufacturing facilities in Japan

Items of environmental impact
CO2 emissions
Water input
Waste materials generation

Change of amount (t/year)

6,220-143,526
1,032

Economic benefits

Rate of year-on-year changes (%)

+3
-7
+6

Komatsu and Komatsu Group manufacturing facilities in Japan (except group companies in the facilities),
Field Testing Department and Manda area

Type
Energyconservation
Resource
conservation

Tangible benefits
Monetaryvalue*1
Major activities

Avoidance benefits ofenvironmental risks*2(millions of yen)Contribution to profits*2

operation of biomass
372 Full-scale
gas power generation, etc.
heavy oil for heating and
50 Reducecooling by biomass utilization
Proceeds from mobile
FY2022, there were no major
Control the amount of waste * Inaccidents
recycling equipment
or
legal
infractions
that
Waste materials
generated and promotion of
187
would
contaminate
theenvironment.
Proceeds from value added
reduction
recycling through* No litigation costs were required in
due to reduced environmental
thoroughgoing sorting
Japan during FY2022.
impact of products
Gain on sale ofSale of scrap, used paper, waste
768
valuables
oil, etc.
Other
0
Total
1,377
*1 Figures are rounded off to the nearest million yen.
*2 Komatsu used statements instead of numeral figures to describe the "Avoidance benefits of environmental risks" and the"Contribution to profits". We will give further consideration to the interpretation and the understanding of efficiency.

E ects on society *1
Environmental impact reduction e ects
Environmental impact reduction resulting fromon-site recycling methods
Environmental impact reduction resulting fromproduct operation
Waste components reduction resulting from
"Reman" businessTangible bene ts
Reduction of expenses for processing wastematerials
Savings in operating and maintenance costs
Reduction of repair costs*1 We are aware of the potential impacts on society that could arise from the use of our products. Qualitative information regarding themost signi cant e ects are referenced here.
203

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Major environmental achievements in FY2022
Environmental management
Theme

Index

Public relations ofenvironmental activities CDP evaluation
Public relations of
Publication ofenvironmental activities ESG Data Book

Referenceyear

FY2022
FY2022
Goal
Achivement
Climate : A Climate : A- Water: A Water : A

Remarks- Publishing Published(July）

Research & Development
Theme

Index

Development of
low-emission
construction
machinery andindustrial vehicles(Compliance withemission control
regulations)
Reduction of CO2
emissions fromCO2
products(Promotion of fuel emissions
reduction
efficiency
improvement during (unit: %)product operation)

Referenceyear

FY2022 Goal

FY2022 Achievement- Development ofTier 4 regulationcompliant- Continued
vehicles- Development of development- Continued
Stage Vdevelopment
regulationcompliant
vehicles- Reduction of
CO2 emissions
from use of
products- Continued
development(construction2010 machinery,
Achievement: 21%
reductionminingmachines)
Goal: 20%
reduction

204

Remarks

Goal for2030: 50%
reduction

ESG Databook 2023

Sustainability policy

Management ofsustainability

Theme
Reduction of CO2
emissions fromconstruction
machinery andindustrial vehicles(changing to BDF
biofuel)Improvement ofrecycling percentage
of construction
machinery andindustrial vehicles

Thoroughmanagement andreduction ofmaterials withenvironmental
burdens inconstruction
machinery andindustrial vehicles

With people

Index

With business

Referenceyear

With the planet

FY2022 Goal

Data

Socialcontribution
activities

FY2022 Achievement

Index

Remarks- Use of B50Continued
compliant mixed -development
light oil
- Achieve 99% ormore in the next
developed
vehicle- Achieved indeveloped vehicles (forproduction and sales inJapan)- Reduction of thevolume of- Maintained 90%
hazardous
reduction of lead usage
substances in the compared to 1998
next vehicle to be - Added new SVHC,
developed
which are specified in(Maintaining a REACH and managed
90% reduction use statuses of SVHC.
compared toUsed the system to1998)
record data of the- Operating amodels for the EU andsystem thatthe models massmanages
produced or developedin the EU
hazardous
substances per (Investigatedpart
substances containedin each part)(REACH
Compliant)

205

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planetSocial

Data

Index

contribution
activities

Production
Theme
CO2 emissions
Recyclable energy
usage
Water input volume
Discharged waste
volumeChemical release
volume (VOC
emissions volume)

Reference FY2022 Goal FY2022 Achievement
year
Improvement ofor more2010 43％reduction
43％ reduction
basic unit
Percentage ofelectricity
16％ or more
17％
consumed
Improvement ofor more2010 66％reduction
69％ reduction
basic unit
Improvement ofor more2010 27％reduction
38％ reduction
basic unit
53.1％ reduction
50%
Improvement of(deteriorated
0.4point
2005 reduction
basic unit
from the previous
year）
Index

Remarks
Goal for 2030:
50% reduction
Goal for 2030:
50%
Goal for 2024:
70% reduction
Goal for 2030:
40% reduction* We have achieved our previous 2030 target for water input volume (i.e. a 60% reduction in water input intensity compared with 2010)
and are now considering a new target.

Logistics
Theme

Index

Shift to transportationmeans with a low
environmental burden Modal shift rate
Increase use of
per 500km
domestic vessels andJR
Decrease oftransportation
distance
Promoting use of
nearby ports forexported vehicles
Increase use ofKanazawa Port
Decrease oftransportation
distance
Export vehicles using
nearby ports
Increase in use of
Hitachinaka Port

Reference FY2022 Goal FY2022
Achievement
year-

Remarks

62%

We expanded the use of rail
for the transportation of
items from the Awazu and
61% Himi Plants to those moving
between the Oyama andTochigi Plants, but fell 1%
short of our target.

Kanazawa Portuse percentage
for exported
vehicles-50%

Increased production madeit difficult to determine leadand the index
27% times
worsened as shipments from
Kobe and Nagoya Ports
increased.

Hitachinaka Portuse percentage
for exported
vehicles-99%

effective use of
99% Ongoing
Hitachinaka Port.

206

ESG Databook 2023

Sustainability policy

Management ofsustainability

Theme

With people

With business

Index

Improvement of CO2
emissions per cargoweight (basic unit)
from transportation of Improvement
products and parts per basic unit
Domestictransportation
Improvement of CO2
emissions per cargoweight (basic unit)
from transportation of Improvement
products and parts per basic unit
Overseastransportation

With the planetSocialData

contribution
activities

Reference FY2022 Goal FY2022
year
Achievement
2006

2011

Index

Remarks

66

The modal shift andexports of large
61 increasedmodels reduced the basic
unit.

87

Result of improvements inmodal shift to railroad
83 thetransportation in North
America.

FY2022 Goal

FY2022 Achievement Remarks

Procurement
Theme

Index Reference
year

Horizontal expansion of
Komatsu's activities to cut electricity consumption by half
Implementation ofenvironmental regulations audit Activities to reduce water
consumption (10 companies) -to 93 Midori-kai- Expandmember companies

Continued to expand
to all 93 member
companies

Implementing at
Implemented at- two Midori-kai member 2 member
companies
companies
water use
- Reduce clean
19% reduction
15% or more

207

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

Sales & Services
Theme

Index

Implementatio
n of measures to prevent oilleakage
Introduction ofwaste
management systems
Number of
where
Provision of bases
on-siteenvironmental instruction
education
workshops
were held-Salesexpansion
activities forSales
expansion of Tier4 models
environmental -Sales
products
expansion
activities forFE
Promotion of Number of
Smart
Smart
Construction Construction
work
sites

Referen FY2022 Goalce year

FY2022
Achievement

Remarks

Installation of sandbags, drainage- All KCSJ bases All KCSJ bases route diagrams, and emergency
contact networks
All KCSJ
companies (7companies)- Komatsu Group atImplemented
9 companies
sales
companies (2companies)- 60 bases

55 bases

Conducted on-site instruction
workshops.

-Sales plan
criteria for FY -110.4% of the2022
criteria- -Salesplan-90.2% of thecriteria for FY criteria
2022
of the- BP for FY 2022 106.7%
criteria

208

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Scope of environmental data/calculation standards
Komatsu Group manufacturing facilities in Japan

Komatsu Group manufacturing facilities in Japan, with a focus on the following 12 plants
Awazu Plant, Kanazawa Plant [including Kanazawa-Daiichi Plant and Kanazawa-Daini Plant], Osaka Plant[including Rokko Plant], Ibaraki Plant, Oyama Plant [including Komatsu Cummins Engine Co., Ltd., Industrial
Power Alliance Ltd. and GIGAPHOTON, Inc.], Koriyama Plant, Shonan Plant, Tochigi Plant, Himi Plant, Shiga
Plant, Komatsu NTC Ltd., KELK Ltd.
Logistics offices in Japan: the following 16 plants and centers
Awazu Plant, Osaka Plant, Rokko Plant, Ibaraki Plant, Tochigi Plant, Kanazawa Plant, Shonan Plant, Oyama
Plant, Koriyama Plant, Himi Plant, Shiga Plant, Komatsu Logistics Corp. (Kanto Hokyu Center, Kansai Hokyu
Center, Awazu Hokyu Center, Hokkaido Center and Kyushu Center)

Komatsu Group manufacturing facilities outside Japan

Komatsu Group manufacturing facilities outside Japan, specifically the 21 business units appearing on theworld map below.

Overseas logistics offices: the following 11 companies
Komatsu Americas Corp. [Chattanooga][Peoria], Komatsu do Brasil Ltda., Komatsu UK Ltd., Komatsu
Germany GmbH [Düsseldorf], Komatsu Shantui Construction Machinery Co., Ltd., Komatsu (Changzhou)
Construction Machinery Co., Ltd., Komatsu (Shandong) Construction Machinery Co., Ltd., PT Komatsu
Indonesia, Bangkok Komatsu Co., Ltd. and Komatsu India Pvt. Ltd
Komatsu Group manufacturing facilities, both in Japan and overseas: Pertaining to all 33 of the offices
mentioned above, including 12 domestic and 21 international offices.

Guidelines“Environmental Report Guidelines 2018” (Ministry of the Environment of Japan)
Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain Ver 2.5(Ministry of the Environment and Ministry of the Economy, Trade and Industry of Japan)
Database on Emissions Intensities for Calculating Greenhouse Gas Emissions, etc. through a Supply Chain
Ver. 3.3 (Ministry of the Environment and Ministry of the Economy, Trade and Industry of Japan)
209

ESG Databook 2023

Sustainability policy

Management ofWith people

sustainability

With businessWith the planet

Data

Socialcontribution
activities

Index

GRI Standards
See the GRI content index
GRI Standards INDEXPeriod covered
Primarily, this report covers data acquired from April 2022 to the end of March 2023, with a portion of
information that involves data acquired after April 2023.

Calculation base of typical environmental data
Classification

Item

EnergyGHG
GHG Energy

Energy, CO2
emission in basic
unit

Location-based
Scope 2

Calculation Method
Energy = (fuel, electric energy, etc.) x energy conversion factor
Fuels (other than biomass), conversion coefficient of electric
power: standard heating value of the Agency for Natural Resources
and Energy (2013 value revised in August 2018)
Biomass fuel: National Woodchips Industry Association (Japan)
Regional heat: site reported value (1.54 GJ / MWh)
Energy originated CO2 = (fuel quantity, electricity quantity) x CO2
emission factor
Non-energy originated GHG = Gas emissions x Global warming
potential (GWP)
CO2emission factor
Electricity: 2010 value of IEA CO2 EMISSIONS FROM FUELCOMBUSTION 2012
Fuel: Japan,Overseas;Ministry of the Environment, Ministry of
Economy, Trade and Industry, Greenhouse gas emissions
calculation and report manual Ver4.7
GWP: Value of greenhouse gas emissions calculation, reportingand publication system
Basic unit for each plant = (energy, CO2) / (Internal manufacturing
value), index is a value with base year 100.
Base year: 2010
Total basic unit index = weighted average of the percentage
improvement in basic units of each plant from the base year by theenergy consumption ratio or the CO2 emissions ratio in the baseyear.
CO2 emission = purchased electricity quantity x CO2 emission factor
CO2 emission factor:
Japan; Ministry of the Environment, Ministry of Economy, Tradeand Industry Emission Factor by Electric Utility Substitution Value
Overseas; 2010 value of IEA CO2 EMISSIONS FROM FUELCOMBUSTION 2012
210

ESG Databook 2023

Sustainability policy

Management ofsustainability

Classification

GHG Energy

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Item

Calculation Method
CO2 emission = purchased electricity quantity x CO2 emission factor
CO2 emission factor:
Japan;Emission Factor by Electric Power Company
Market-based
Overseas; 2010 value of IEA CO2 EMISSIONS FROM FUEL
Scope 2COMBUSTION 2012
However, the electricity generated from renewable energy source
has zero emission factors
Purchased product service: Product weight x emission factor +C1
cooperating company CO2 emission amounts
C2
Capital goods: capital investment amount x emission factor
Fuels and energy related activities not included in Scope 1 and 2:
C3
fuel quantity purchased x emission factor on the upstream side +purchased electric energy amount x upstream side emission factor
Transportation, Delivery (upstream): Fuel consumption (amount) x
C4
Emission factor (coefficient according to Komatsu actual result
survey)Scope3
Waste from project: Waste volume x Emission factor (coefficientC5
according to Komatsu performance survey)
C6
Business trip: travel expenses x emission factor
C7
Employer commuting: commuting expenses x emission factor
C9
Downstream transport: transport volume x emission factor
Use of products sold: Σ (Production volume per product model x
C11
Fuel consumption(L/h) x Product life(h) x Emission factor)
C12
Disposal of products sold: Product weight x Emission factor
Emission factor
C1, C2, C3, C6, C7, C11, C12: Emission basic unit database (Ver 3.3)
for calculating greenhouse gas emissions of organizations throughthe supply chain of the Ministry of the Environment
C3 Fuel: Carbon Footprint Communication Program Basic Database(Ver 1.01)
C9: Ministry of Economy, Trade and Industry ・ Ministry of Land,
Infrastructure, Transport and Tourism Guidelines for Estimating CO2
Emissions in the Logistics Field
CO2 emissions
CO2 emissions index estimated based on changes in product fuelindex duringconsumption reduction, etc. in the aggregate year, with 2010 as the
product operation base year and no change in product composition from the base year.

211

ESG Databook 2023

Sustainability policy

Management ofWith people

sustainability

Classification
ExhaustDrainage

Water

Waste

PRTR
materials

With businessWith the planet

Data

Socialcontribution
activities

Index

Item

Calculation Method
Total for heavy oil, kerosene, light oil and coke:
Sox Emissions
Calculated from fuel quantity x sulfur content in fuelTotal for heavy oil, kerosene, light oil, city gas, and LPG:
NOx Emissions
Calculated from Exhaust gas quantity x NOx concentration
Calculated from Wastewater x BOD Average Concentration
BOD Emissions
Measurement Value
Calculated from Wastewater x COD average concentration measured
COD Emissions
value
Amount of water Total amount of water intake, including clean water, industrial waterusedand groundwater
Intensity at a plant = (amount of water used) / (internal
manufacturing value); the base year of the index is 100.
Intensity of water Base year: 2010
input
Total basic unit index = weighted average of percentage
improvement in basic units of each plant from the base year by theratio of water input in the base year.
Amount of waste Total amount of waste excluding valuables
Intensity at a plant = (amount of waste) / (internal manufacturing
value); the base year of the index is 100.
Base year: 2010
Waste intensity
Total basic unit index = weighted average of percentage
improvement in basic units of each plant from the base year by theratio of waste amount in the base year.
Multiply the number of secondary materials used by the content ofchemical substances and the rate of emissions andAmount of these specified
movementin accordance with the Act on Confirmation, etc. ofmaterials emitted Release Amountsof Specific Chemical Substances in theor moved
Environment and Promotion of Improvements to the Management
Thereof (PRTR Act).

Main data, ISO 14001 certification acquisition coverage
The coverage rate of main data and ISO 14001 was calculated using the number of people as an index.
1. Main data coverage

Data coverage rate at production sites: 96%

2. ISO 14001 certification acquisition coverage

ISO 14001 certification acquisition coverage rate at production sites: 93% (If KMC is not included : 100%)212

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Independent practitioner's assurance
Komatsu views an independent practitioner's assurance process as crucial for ensuring the reliability of thequantitative environmental information and occupational safety and health information for the 2022 fiscal
year described on its "Sustainability webpage". For this reason, Komatsu has received an independentpractitioner's assurance from Deloitte Tohmatsu Sustainability Co., Ltd., an affiliate of the Deloitte Touche
Tohmatsu LLC.
Deloitte Tohmatsu Sustainability Co., Ltd.

Independent Assurance Report (PDF：2.12MB）

Points of an Independent Practitioner's Assurance
Komatsu has received an independent practitioner's assurance from Deloitte Tohmatsu Sustainability Co.,
Ltd. for this Web data, which is marked by the independent practitioner's assurance logo whereappropriate.

213

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Other CSR data
Political contributions
Our political contributions in FY2022 totalled 8 million yen.** Described in the Income and Expenditure Reports on Political Funds released on November 25, 2022 (on the website of the Ministry ofInternal Affairs and Communications)

We have confirmed that this contribution does not conflict with the provisions of Komatsu's Code of
Conduct, including the provisions regarding honest and fair business activities and honest and appropriate
business operations.

214

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Social Contribution Activities

Accomplishments and approaches for social
contribution activities

216

Nurturing the next generation

219

Developing people needed by the community

220

Clearing anti-personnel landmines andcommunity development support

224

Disaster relief

233
235

Komatsu's initiatives for the social issues
An employee-participatory social contribution program"One World One Komatsu"

237

Promoting sports̶
the Komatsu women's judo club

241

215

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Accomplishments and approaches for social contribution
activities
Komatsu defines CSR activities as the things we do to meet society’s needs through our core business, and it
has identified its material issues through the discussion of initiatives that are able to provide value to bothsociety and Komatsu, as below. We engage in CSR activities based on the ideas derived from these
discussions.
The guiding principle is that a company should assume its responsibility to conduct CSR activities in theregions it operates within. We focus on the themes that enable us to leverage our expertise in our corebusiness.

Materiality

216

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Basic approaches to social contribution (from “Komatsu’s worldwide codeof business conduct”)
CSR (Corporate Social Responsibility) is a multi-faceted topic, of which specific elements pertaining to thedifferent aspects of its implementation are subject to change according to country, region, or businesspractices. However, regardless of these variations, the underlying axioms that drive these initiatives remain
the same: companies must co-exist in harmony with society, responding to expectations and building a
relationship of mutual trust. As mentioned in other sections of this report, one of the principles that guides
the Komatsu Group on a global scale is the understanding that Komatsu should fulfill its corporate social
responsibilities through integration of CSR into our business operations. We further build on that belief bydefining clear requirements for good corporate citizenship: a company should live up to societal expectations
by promoting harmony and making real contributions for the benefit of the community in which it operates.
Komatsu is proud to report that we live up to these high standards, and are proactively engaged in social
contributory activities across multiple regions.

Governance regarding donations
Whenever we start a new project, we evaluate its ability to benefit both Komatsu’s business operations andits stakeholders. In our implementation of our CSR activities (including donations), we introduced a checksheet in FY2013 to be used by the Sustainability Promotion Division, functioning as an administrative office,to quantitatively evaluate the effects of the activities from both aspects, and involved officers review thisevaluation to ensure the effective monitoring of our CSR activities.

5 Basic principles for social contribution (from "Komatsu's worldwide codeof business conduct")Aims:

To clarify the responsibilities of Komatsu Group and its employees as members of the local community andguide their activities for social contribution accordingly.

Principles: Activities for social contribution should:
have continuity;contribute to the advancementof public welfare;be reasonable to employees; and not be designed to advertise our
products or services.

217

be voluntary (not forced);

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Social contribution expenditures of the Komatsu group in FY2022
We have divided and summarized the results of our social contributions into 6 general categories. These canbe found in the infographic below:

Type of social contribution expenditure(Millions of yen)

Cash contributions
Time contributions
In-kind giving
Management overheads
Total

767
340
209
722
2,038

218

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Nurturing the next generation
Komatsu offers floral education programs tailored for preschool and daycare children, fostering anappreciation for beauty and kindness through exposure to flowers and greenery. This program is acollaborative effort of the Flower Association of Japan, Komatsu City, and the NPO Midori-no-Komatsu
Sukusuku-kai, hosted at Komatsu no Mori, a forest park facility in Komatsu City, Ishikawa Prefecture. It also
encourages intergenerational exchange between children and seniors, leveraging the universal language offlowers and greenery to contribute to community revitalization.

In FY2022, the program reached approximately 100 children across three certified daycare centers andpreschools in Komatsu City. The curriculum teaches children about the plant growth process via a yearround set of activities, including both spring and fall sowing.

219

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Developing people needed by the community
When we asked ourselves:"What sort of social contribution activities would meet the needs of regional
communities and make the best use of Komatsu's strengths?" We arrived at the answer: "developing people."
We are working in cooperation with several entities such as national and local governments as well as
schools, to carry out human resource development programs that are tailored to each region's needs andenable participants to acquire skills that will open up various employment opportunities.

Various areas and forms of support

Developing Human Resources Tailored to Regional Needs Worldwide
Using the skills and know-how cultivated through our core business, Komatsu supports the development of
human resources that are needed not only within our company, but also in local communities.
Expectations for human resource development can vary greatly from community to community. At Komatsu,
as we do business on a global scale, we make efforts to understand what each community needs and workon providing that support accordingly in various areas and in different forms.
The pyramid graph below shows the areas in which Komatsu is supporting human resource development. It
also shows that the closer you get to the top of the pyramid, the more closely linked the program is with
Komatsu businesses. The base of the pyramid shows our active support of activities such as science classes
in elementary schools, mainly in different parts of Japan, USA and Europe. The next level up is to provide
basic education, which consists of our support towards people who cannot or were not able to receive thelevel of education necessary to find employment, due to circumstances specific to their country or region.
We currently run such programs in Chile and South Africa. At the next level, we support universities andvocational training schools in many regions by providing Komatsu's curriculum and equipment, as well as
instructors. At the top of the pyramid, we are working with national and local governments and with ourcustomers to develop human resources, particularly in regions where human resource development is asocial challenge.
The actual content of the support includes dispatching instructors and trainers; providing educational
materials, equipment and facilities; accepting apprentices; and various other means utilizing the fullpotential of our know-how.

220

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Support for ⅾeveloping human resources

Dispatching instructors Providing educational
materials andequipment

Providing facilities and Accepting apprentices
supporting operations

Collaboration with Cummins Inc.
We believe that collaborative CSR activities deliver more effective outcomes than those conducted alone, by
sharing the people, know-how, and other resources of each company. In promoting social contribution
activities in the past, Komatsu has collaborated with entities such as non-profit organizations that have theirown unique know-how. In 2016, we agreed with our business partner, Cummins Inc. in the U.S., tocollaborate in the field of local human resource development.

Komatsu and Cummins' common objective
Komatsu and Cummins Inc., a major engine manufacturer in the U.S., have built a strong relationship of trust
over the years as partners in the engine business. Both companies have already expended much energy into
supporting human resource development in local communities as part of social contribution activities, andhave already collaborated in several areas. One of the main programs is Technical Education forCommunities (TEC). Both companies have partnered through contract to utilize their pool of resources andbest practices, to expand the support of human resource development globally.

221

ESG Databook 2023

Sustainability policy

Management ofsustainability

Cummins Profile
Corporate name
Established
Headquarters
Businesssegments
URL

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

Cummins Inc.
1919
Columbus, Indiana, U.S.
Engine, Power systems, Components, Distribution
http://www.cummins.com/

Working with Cummins Inc. to promote social reintegration in Chile－Rehabilitation program for prisoners－
One of our collaborative activities with Cummins isoffering support for the ReInventarse Foundation’s
prisoners’ rehabilitation program, with which wehave been involved since 2011. This program isdesigned to reintegrate young people who
committed crimes as minors and were placed on
probation or parole into society.
Komatsu and Cummins have supported theFoundation’s activities and worked together to help
these young people acquire social skills, such as
obtaining a driver’s license, and to provide programs
that enable them to acquire technical skills related toCummins’ business.
This activity has been well received by Chileansociety, with the Minister of Justice and Human
Rights stating that “the efforts of the ReInventarse
Foundation have become a model for rehabilitation,
allowing young people to find the means to grow insociety.” More than 1,000 young people have been
reintegrated into society through the Foundation’s
support so far.

222

Young people receiving technical training from the
ReInventarse Foundation

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Career development for young people through STEM education
In the UK, we continue to be involved with STEM
Ambassador, an initiative to nurture young people’s
careers in Science, Technology, Engineering, andMathematics. In 2021, Komatsu UK participated in aregional career development event, “Bring it on.” As
Ambassador, we offer science challenges to schools
in the northern region of the UK.
Through these efforts, we will continue to support
the career development of future engineers andother professionals.

223

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Clearing anti-personnel landmines andcommunity development support

In the areas afflicted by anti-personnel landmines, Komatsu has engaged in activities tosupport community development throughout the process from demining toreconstruction. Utilizing Komatsu’s demining machines and construction equipment,
developed by combining its technical expertise and knowledge in manufacturing, Komatsu
started its project in Cambodia in 2008 partnering with the authorized NPO "Japan Mine
Action Service" (JMAS) and another project in Laos in 2016.
From a land contaminated with dangerous landmines to a land where people can live insafety and security, and further on to a land with added value through the construction of224

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

roads and elementary schools. Komatsu will continue to promote activities that contributeto the independent reconstruction of the entire community by providing support throughconstruction equipment, which is our core business.

- Cambodia -Demining dozer
Clear landmines from the vast tracts of land. In the aftermath of war and civil war,
landmines and unexploded ordinance remain in many areas in Cambodia. Still today
citizens continue to suffer severe injuries and even death from landmines. Buried in thevast tracts of land near the Thai border in the northwestern part of the country arecountless anti-personnel landmines, preventing restoration and development. In order for
people to return to the abandoned farmlands and deserted villages, our clearing of thelandmines and making the land safe to live and walk upon must be our first task.

Visit our specialised webpage to learn more at Demining dozer

225

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Farmland & Infrastructure-reconstruction
By restoring farmland and roads, people regain their livelihoods. The Project does not
end with the clearing of landmines. That step only restores the land’s ability to fulfill its rolein the development of farmlands or construction of roads. The two main crops ofCambodia are rice and cassava. For efficient cultivation and harvesting, land intended forrice paddy-use needs to have the unevenness of the ground and other irregularities
eliminated. The result of using bulldozers equipped with ICT to level the land and prepare
it for rice paddy cultivation and harvesting is a nearly doubling of yield. In addition,
irrigation canals and reservoirs have been created to alleviate water shortages. Previously
farming in the dry season was not possible. Now more and more farmers are enjoying
access to water from irrigation canals for their crops. Moreover, construction of a networkof new and improved roads connects farmers not only with towns and the region but alsowith vital lifelines. The impact of all these improvements is large. People living in villages
are choosing to stay. Those who left to find work in other countries are returning to build
prosperous lives on the reborn land. Soon the newly constructed roads will be busy withpeople coming and going between home and villages alive with hope and vitality.

Visit our specialised webpage to learn more at
Farmland & Infrastructure-reconstruction

226

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

School construction"Learning is creating your future". That is what the principal of a local elementary school
said to his students. There was a child who gave up going to school because the school inthe minefield was far away. There were also schools where the school buildings were so
dilapidated that it was difficult to study. It has been more than ten years since we started
building elementary schools. Some children have graduated from the first and second
schools and are now college students. A small bud seemed to open into a large flower.
People gather in places that used to be minefields, schools are built, and students learn.
Each person will find their own dream. That's why children's smiles shine so brightly.

Visit our specialised webpage to learn more at School construction

News: Scholarship program launched
Komatsu has been involved in the construction of a totalof 10 elementary schools in Cambodia, as of April 2023.
All of these elementary schools were built on former
minefields, and many of the students are from
economically disadvantaged families. However, thenumber of university students is gradually increasing
among them, so Komatsu has launched a new
In front of the university
scholarship program for students graduated from those where three of theKomatsu-built elementary schools. In FY2023, the first scholarship recipients attend
year of the program, six students will be awarded.

227

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index- Laos -We started support of unexploded ordnance disposal activities in 2016 in Xiangkhouang
province, northern Laos.
In Laos, more than 30% of the land is contaminated with unexploded ordnances, mostly
cluster munitions, which harm children and farmers every year. Komatsu plays its part byoffering the necessary machines free of charge for the mechanized operations jointly
conducted by UXO-LAO (a Lao unexploded ordnance disposal squad) and the Japan Mine
Action Service (JMAS), alongside engineering support for the machines it provides.
Despite the various restrictions imposed by the outbreak of COVID-19, the UXO disposal
project in Laos was conducted continuously as planned. Komatsu supports the project byproviding remote support through online meetings and by supplying supplemental spareparts from Japan.

Exploration of unexploded ordnanceCommemoration of the first elementary school
228

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

Visiting lectures in Japan
As part of the "Visiting Lecture" initiative, Komatsu employees visit schools in Japan tolecture about the activities of the demining project. The lectures are attended by differently
aged students ranging from elementary to university levels. Up to the present, we havegiven a total of 99 lectures (including lectures held online) attended by about 7,500
students.
The feedback we received from some first-year high school students included, “After
listening to this lecture, I was reminded that working overseas can be very enjoyable andrewarding, even if the language and culture are different. I have been interested in working
abroad but have been a little apprehensive about those differences, but after listening tothis talk, I am now very much looking forward to working in the future. And I realized that it
is very important to make use of what I am interested in in the future.”
Komatsu will continue its efforts to provide visiting lectures so that the younger generation
will have the opportunity to think about world peace, their future, and their lives.

Visiting lectures at junior high schools in Japan

Application to attend a visiting lecture
Download the Komatsu Visiting Lecture/Online Class application form

Read the following before applying:Reservations are on a first-come-first-served basis. We advise you to apply early.
Please apply at least one month prior to the lecture.
229

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

In consideration of the topics discussed in the lectures, we do not approve applications
from students in their 4th year of elementary school or younger.
Your application may not be approved if we receive too many applications or for our own
business reasons. If this happens, we will contact you before the lecture.
Please note that lectures may be postponed or cancelled due to other unforeseen
circumstances.

230

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

SocialIndex

contribution
activities

History of demining activities (international
treaties, Japanese government and Komatsu)
activities of the Japanese government are
Year Activity (international treaties andunderlined)

1998 Komatsu develops old timber removal machine for demining in Cambodia
1999 The Ottawa Treaty is enacted (the Mine Ban Convention)
Japanese government states it would exclude antipersonnel demining
2002 The
machine from the Three Principles on Arms Exports
subsidized project by the Ministry of Economy, Trade and Industry and NEDO*
2003 Adevelops
demining machine (Figure (1) below)
support from the Ministry of Foreign Affairs of Japan, Komatsu conducts on2004 Withsite testing in Afghanistan
support from the Ministry of Foreign Affairs of Japan, Komatsu conducts on2006 Withsite testing in Cambodia
2007 The first machine is introduced in Afghanistan (Japanese government ODA)
begins the Cambodia reconstruction project jointly with the JMAS, an
2008 Komatsu
incorporated NPO
begins the Angola reconstruction project jointly with the JMAS, an2009 Komatsu
incorporated NPO2010 The Oslo Treaty is enacted (the treaty banning Cluster Munitions)2015 Komatsu develops demining machine (Figure (2) below)
begins the Laos reconstruction project jointly with the JMAS, an2016 Komatsu
incorporated NPO
2017 Komatsu completes the Angola reconstruction project231

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

activities of the Japanese government are
Year Activity (international treaties andunderlined)2019 Komatsu constructs its 9th elementary school in Cambodia, and 1st in Laos.
2020 Komatsu begins the agriculture CSR project in Cambodia
2022 Komatsu constructs its 10th elementary school in Cambodia(1) Demining Machine(2) Demining Machine for processing unexploded
ordnance232

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Disaster relief
Many of Komatsu's products (especially construction equipment) are vital for recovery and reconstruction in
the wake of a natural disaster.
In the event of an emergency, we promptly grasp the local situation and support disaster recovery in a
substantial way, such as providing equipment needed by the disaster area. As part of these efforts, we haveinitiated support activities using drones as well as construction machines. The latest activities are as follows:

Relief aid to earthquake damages in Turkey and Syria
In February 2023, the Turkey-Syria earthquake, centered in southeastern Turkey, struck, caused extensive
damage in both countries.
Komatsu has lent construction equipment needed for relief efforts to the affected areas free of charge anddispatched operators and service mechanics to assist the relief efforts, which should amount to JPY 20
million equivalent, in cooperation with its local distributor Marubeni Dağıtım ve Servis A.Ş. (hereinafter“MDS”), a wholly owned subsidiary of Marubeni Corporation. Komatsu also donated JPY 10 million throughthe Japanese Red Cross Society (total support of 30 million yen).
Since establishing an office in Turkey in 1975, Komatsu has been engaging its locally-anchored business inTurkey, a major market in the Middle East region. Komatsu will continue to provide material assistance tohelp the affected areas recover as quickly as possible while monitoring the conditions with MDS.

233

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Support for reconstruction in areas a ected by natural disasters in Japan
Cooperation with pro bono workers*※

Pro bono: Initiatives and organizations to apply specialized job experiences and knowledge in volunteer activities.

In Japan, Komatsu has mainly assisted in areas affected by earthquakes.
For wind and flood damage, which have increased in recent years, thedamage is concentrated in limited areas or villages in many cases, andthus, we could not provide assistance in a more detailed manner insome cases.
Komatsu is providing the following support, including the provision ofequipment and supplies.

Supporting Areas Stricken by
Typhoon No. 19 in 2019: Donating aused PC30MR to OPENJAPANSupport for OPENJAPAN, a construction skill NPO providing grassroots support in affected
areas
OPENJAPAN (head office: Miyagi prefecture) is a group of volunteers who have expertise in construction andcivil engineering. They quickly rush to affected areas around Japan to clean up affected houses as well as
conduct recovery and reconstruction work. Though many of the volunteers possess a great deal of skill tooperate construction vehicles, recovery from disasters also requires the relevant expertise. Through daily
training, they aim to carry out safe and effective recovery and reconstruction operations.
In response to a request from the Marumori-machi government in Miyagi prefecture, which suffered extensive
damage, and after hearing from the people on-site about their needs, Komatsu donated a used PC30MR mini
shovel, as well as money for the rental of heavy equipment, fuel, and materials (e.g. blue tarps and cranetools) that were necessary for the OPENJAPAN activities in Marumori-machi so that they can be used for not
only the reconstruction support activities in Marumori-machi, but also future training.

234

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Komatsu's initiatives for the social issues
There are various social issues in the world in each region.
As the Komatsu Group develops its business globally, we listen to the voices of people living in the various
local communities in our areas of operation, and actively carry out support activities to improve the living
standards. We consider conducting such social contribution activities as a responsibility of doing businessaround the world.

Initiatives for a sustainable environment – Afforestation activities
In order to balance resource development and environmental conservation, Komatsu believes that it isimportant to restore former mine land to forests and farmland and to expand green spaces by planting trees.
We are involved in reforestation projects on former mine lands in North America, and our employees in
China, Indonesia, and other countries are engaged in tree planting.
In North America, in the Monongahela National Forest in West Virginia, we are continuing to work on a
project with Green Forest Work, a reforestation non-profit organization, to restore formerly mined lands. As aresult of activities which started in 2018, over 370,000 trees have been planted for reforestation. Komatsumachinery is used to prepare the land for the spring planting.

In December 2022, Komatsu Remanufacturing Asia (KRA) of Indonesia, collaborating with the Ministry of
Public Works and Spatial Planning (PUPR) and United Tractors (UT), a construction machinery distributor,
planted 700 trees in the Balikpapan area.
KRA and UT have signed an agreement with the Head of the Kalimantan IV Samarinda River Region Office, as
the land owner, East Balikpapan Sub-District Head, and Teritip Sub-District Head to promote tree planting in
the area.

235

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Activities to improve the living environment － North America
Komatsu continues its efforts to address social issues in the regions where it does business. One suchinitiative is the Habitat for Humanity project in Illinois and Wisconsin, North America. We are involved in avoluntary program to build houses for people who cannot afford housing due to poverty or disasters, andmany Komatsu employees are participating by taking up opportunities to check on the progress ofconstruction.

236

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

An employee-participatory social contribution program"One World One Komatsu"
Komatsu’s basic policy is to conduct CSR activities through its core business, and the company strives toachieve sustainable growth together with society through the resolution of ESG issues. On the occasion of
the 100th anniversary of its founding, Komatsu has begun "One World One Komatsu," our first global social
contribution initiative designed for all Komatsu Group employees to participate in from around the world.
The theme of "One World One Komatsu" is "Environment and Sustainability," which is a common issue
around the world and has a high affinity with our business, and each and every employee will take part in
activities that are familiar to them in their daily lives, such as "reducing water consumption" and "turning off
lights in unused rooms.
In order to promote these activities, we have set up a dedicated platform that allows the entire group to
consolidate the activities of each individual. This new platform can be easily logged in from a PC or
smartphone. Komatsu will continue to promote activities for a sustainable planet by fostering a sense ofunity among Komatsu Group employees around the world, transcending differences in countries andlanguages, and working toward a common goal.

Four priority themes of "One World One Komatsu”
Reduction of CO2 emission
Water conservation
Renewable energy
Reduction of waste

Komatsu Global Watch Party on June 2023

237

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

In support of the United Nations' Earth Day (April 22), as we had done the previous year, we held a "Global
Watch Party" in June 2023, where employees from around the world engaged in volunteer activities thatwere reported in video format and shared on our website.
This event can be seen in the video (in multiple languages).
Komatsu 2023 Earth Day global watch party - YouTube

One World One Komatsu contest awards held in November 2022
Over 200 employees worldwide submitted entries to the 2021 “One World One Komatsu” contest. A winner
was selected for each of the 10 competition categories. In November 2022, five of the winners attended anawards ceremony in Tokyo where President Ogawa presented them with their trophies.

Winners of the 2021 Contest* Winners' organizational affiliations are as of 2021.

Rex Ronter G. Ruiz, Philippines, Komatsu Ltd, Manila representative officeAward Category：Educator
Rex’s project centers on the climate change issues faced by the islands of Tubigon,
Bohol – his birthplace in the Philippines. He is working to educate islanders about
their current vulnerabilities and equip them with right tools to adapt to thechallenges of climate change. He seeks to reduce disaster deaths, waste, andCO2/methane emissions through his educational and research activities.。
○

Andrew Atherton, Komatsu Mining Corp. (KMC) – Joy Global UK (Ltd)Award Category：Energy Enthusiast
Andrew recently completed a feasibility study into the incorporation of a solar PV
system on the roof spaces of our Manchester facility in the United Kingdom tosupplement future energy consumption. A proposed solar installation has been
designed and is awaiting financial approval.
○

Rustam Wiyadi, Komatsu Undercarriage, Indonesia
Award Category：Carbon Conscious
Rustam runs a YouTube channel (Rumah Anggur Indonesia) which he uses to
educate viewers about sustainability issues. He also uses the channel to provide
gardening assistance and promote a campaign to reduce carbon emissions.
○238

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Polina Zvyagintseva, Komatsu CIS
Award Category：Unsung Hero
Polina actively participates in environmental protection activities and educates her
fellow employees about the importance of caring for the environment. Her
volunteer activities include: organizing and promoting a battery recycling process;cleaning up the coastline of lakes and rivers, forests and nearby territories; andpersonally delivering all the wastepaper gathered during a recent office move to a
local environmental organization.
○

Carolini Orrico, Komatsu Forest Brazil (KFB)
Award Category：Waste Watcher
Carolini’s project was focused on recycling, which is a personal passion of hers. Not
only does she make sure she recycles everything she can, she teaches others how
to recycle and why it’s so important. She also participates in a sponge recycling
program in which she gathers used sponges from neighbors, family and friends andbrings them to be recycled.
○

Sri Lestari, Komatsu Undercarriage, Indonesia
Award Category：People’s Champion
Sri is engaged in many activities to help the environment. She has done volunteer
work to help create a mangrove plantation, helped establish an “eduforest” andengaged in cleanup efforts around her KUI facility.
○

Wesley dos Santos Gomes, Komatsu do BrasilAward Category：Water Wise
Wesley’s project focused on reducing his family’s water consumption. The family
started to reuse water from their washing machine to wash the floor, then collectedthat same water again to wash floors in other areas. Wesley also built a plumbing
system using a 200-liter drum to capture rainwater for reuse.
○

Anderson Fernandes, Komatsu do BrasilAward Category：Visionary
Anderson transformed an area filled with garbage and debris into a community
space that his neighborhood could be proud of. After partnering with local
authorities and the public sector to clean the space, Anderson and his team of
fellow volunteers built a children's playground, created a garden at the entrance tothe park and planted trees throughout the entire area along the street and thestream.
○239

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Rakhi Sharma, Komatsu India Pvt Ltd
Award Category：Habit Changer
Rakhi not only actively engages in projects to help the environment andcommunity, but she also educates others as well. She’s participated in projects toclean up public areas near her home, helped distribute used items for re-use byothers, and helped educate community members about personal hygiene and theimportance of personal health.
○Nayana Jaqueline Costa Maia
Award Category：Platform Pioneer
Nayana felt so strongly about the importance of the One World One Komatsu
platform that she planned a campaign strategy to promote the platform, then spent
her own money to buy and make all the campaign materials. She used her lunch
break to print and cut brochures, came work early to talk to people about the
program, and promoted it regularly through meetings and employee
communications.
○240

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Promoting sports—the Komatsu women's judo club
Founded in 1991 as part of social contribution activities during the 70th anniversary of the company
founding, the Komatsu Women's Judo Club is celebrating its 32nd year. Since its establishment, a total of 90
athletes have participated in competitions worldwide. The club has actively engaged in teaching judo athome and abroad, and in welcoming foreign judo competitors, with the goal to develop and popularize this
sport.

Results of club activities in FY 2022
With the Tokyo Olympics now complete, the club members are already starting to prepare for the 2024 Paris
Olympics. Wakaba Tomita won the All-Japan Judo Championships by Weight Category, the Empress’s Cup
All-Japan Women’s Judo Championships, and other domestic competitions, and at the Tashkent WorldChampionships held in Uzbekistan, she won a bronze medal in the over 78 kg class. She also won gold
medals in the mixed team, contributing greatly to Japan’s five consecutive titles. Miku Takaichi (Tashiro), in
the 63 kg weight class, won the Kodokan Cup All-Japan Judo Championships by Weight Category in her
return to competition after knee surgery, followed by three consecutive wins at the Grand Slam Tokyo andthe World Judo Masters. She has also been selected to represent Japan at the World Judo Championships inDoha, Qatar, in May 2023. Lien Chen-ling, in the 57 kg weight class, will represent Taiwan in the same
tournament.

Wakaba Tomita, the three-time consecutive winner of the Wakaba Tomita smiles after winning the Empress’s Cup AllAll-Japan Judo Championships by Weight Category in the Japan Women’s Judo Championships.
over 78 kg class.

241

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With business

Bronze medal in the over 78 kg class at the 2022 WorldChampionships.

Miku Takaichi wins the Kodokan Cup All-Japan JudoChampionships.

With the planet

Data

Socialcontribution
activities

Index

The Japanese team wins the mixed-team event for the fifth
year in a row.

Miku Takaichi wins the Grand Slam Tokyo.

Komatsu Women’s Judo Club

Social contribution activities through judo
The Komatsu Women’s Judo Club has continued to coach the Komatsu Kids Judo Club in Tokyo, while also
directing and coaching judo classes around the world, including Japan, aiming to popularize this sport andtrain the next generation of judoka.
In 2022, no judo classes were held due to the situation faced by society. Aside from this exceptional situation,
we organize judo classes every year in the places in Japan and overseas where Komatsu’ production bases
are located, and over 100 children usually participate overseas. Judo classes at the fairs of our domestic
plants also encourage the participation of children who have had no experience in the sport.

242

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Komatsu's initiatives for the social issues
There are various social issues in the world in each region.
As the Komatsu Group develops its business globally, we listen to the voices of people living in the various
local communities in our areas of operation, and actively carry out support activities to improve the living
standards. We consider conducting such social contribution activities as a responsibility of doing businessaround the world.

Initiatives for a sustainable environment – Afforestation activities
In order to balance resource development and environmental conservation, Komatsu believes that it isimportant to restore former mine land to forests and farmland and to expand green spaces by planting trees.
We are involved in reforestation projects on former mine lands in North America, and our employees in
China, Indonesia, and other countries are engaged in tree planting.
In North America, in the Monongahela National Forest in West Virginia, we are continuing to work on a
project with Green Forest Work, a reforestation non-profit organization, to restore formerly mined lands. As aresult of activities which started in 2018, over 370,000 trees have been planted for reforestation. Komatsumachinery is used to prepare the land for the spring planting.

In December 2022, Komatsu Remanufacturing Asia (KRA) of Indonesia, collaborating with the Ministry of
Public Works and Spatial Planning (PUPR) and United Tractors (UT), a construction machinery distributor,
planted 700 trees in the Balikpapan area.
KRA and UT have signed an agreement with the Head of the Kalimantan IV Samarinda River Region Office, as
the land owner, East Balikpapan Sub-District Head, and Teritip Sub-District Head to promote tree planting in
the area.

243

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Activities to improve the living environment － North America
Komatsu continues its efforts to address social issues in the regions where it does business. One suchinitiative is the Habitat for Humanity project in Illinois and Wisconsin, North America. We are involved in avoluntary program to build houses for people who cannot afford housing due to poverty or disasters, andmany Komatsu employees are participating by taking up opportunities to check on the progress ofconstruction.

244

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Index

GRI content index

246

SASB content index

254

245

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

GRI content index
Statement of use
GRI 1 used
GRI STANDARD

Komatsu has reported the information cited in this GRI content index for the period April 1, 2022 to March
31, 2023 with reference to the GRI Standards.
GRI 1: Foundation 2021
DISCLOSURE

LOCATION

Company info
Global locations
Industries we support
Innovation
Annual Securities Report Overview of Subsidiaries and Affiliates

2-1 Organizational details
2-2 Entities included in theorganization’s sustainability reporting

Global locations
ESG Databook: Editorial policy
Contact for inquiries

2-3 Reporting period, frequency andcontact point
2-4 Restatements of information
2-5 External assurance

ESG Databook: Independent practitioner's assurance
Company info
Industries we support
Innovation
Global locations
Performance by business division / region (full year)
ESG Databook: Outline of procurement policy and supply chain
Company info
ESG Databook: The Komatsu Way and policy on humanresource development

2-6 Activities, value chain and otherbusiness relationships

GRI 2: General
Disclosures 2021
2-7 Employees
2-8 Workers who are not employees－

Articles of incorporation
Komatsu Report (Corporate governance)
Corporate Governance Report
ESG Databook: Corporate governance
ESG Databook: Corporate governance indicators
ESG Databook: Our system to promote sustainability
ESG Databook: Organizational chart of the environmental
management structure
Articles of incorporation
Corporate Governance Report
Notice of convocation
Results of the Exercise of Voting Rights(Extraordinary Report)

2-9 Governance structure andcomposition

2-10 Nomination and selection of thehighest governance body246

ESG Databook 2023

Sustainability policy

Management ofsustainability

GRI STANDARD

With people

With businessWith the planet

DISCLOSURE

SocialIndex

contribution
activities

LOCATIONManagement team
Komatsu Report (Corporate governance)
Corporate Governance Report
ESG Databook: Corporate governance
ESG Databook: Dialogue with our stakeholders
ESG Databook: Materiality analysis
Komatsu Report (Corporate governance)
ESG Databook: Our system to promote sustainability
ESG Databook: Organizational chart of the environmental
management structure
Komatsu Report (TCFD)
ESG Databook: Our system to promote sustainability
ESG Databook: Organizational chart of the environmental
management structure

2-11 Chair of the highest governancebody

2-12 Role of the highest governancebody in overseeing the managementof impacts
2-13 Delegation of responsibility for
managing impacts
2-14 Role of the highest governancebody in sustainability reportingESG Databook: Our system to promote sustainability
Komatsu's Worldwide Code of Business Conduct
Corporate Governance Report2-15 Conflicts of interest

GRI 2: General
Disclosures 2021

Data

2-16 Communication of criticalconcerns
2-17 Collective knowledge of thehighest governance body

ESG Databook: Risk management

Notice of convocation
Komatsu Report (Corporate governance)
2-18 Evaluation of the performance of Komatsu Report (Corporate governance)
the highest governance body
Corporate Governance Report
Annual Securities Report : Compensation
Notice of Convocation
2-19 Remuneration policies
Policy, etc. regarding the determination remuneration, etc. forindividual Directors
Annual Securities Report : Compensation
2-20 Process to determine
Notice of Convocation
remuneration
Policy, etc. regarding the determination remuneration, etc. forindividual Directors
2-21 Annual total compensation ratio ー
Komatsu Report(Message from the President)
2-22 Statement on sustainable
development strategy
Investor Relations: President interview
Corporate Governance Report
ESG Databook: Risk management
ESG Databook: Compliance
ESG Databook: Promoting legal compliance, and pollution
mitigation and prevention
2-23 Policy commitments
ESG Databook: Management of chemical substances andpollution prevention
Komatsu's Worldwide Code of Business Conduct
ESG Databook: The Komatsu Way and policy on humanresource development

247

ESG Databook 2023

Sustainability policy

Management ofsustainability

GRI STANDARD

With people

With businessWith the planet

DISCLOSURE
2-24 Embedding policy commitments

GRI 2: General
Disclosures 2021

GRI 3: Material Topics
2021

GRI 201: Economic
Performance 2016

GRI 202: Market
Presence 2016

Data

SocialIndex

contribution
activities

LOCATION
Komatsu's Worldwide Code of Business Conduct
CSR procurement guidelines

2-25 Processes to remediate negative ESG Databook: Materiality analysis
impacts
2-26 Mechanisms for seeking advice
ESG Databook: Complianceand raising concerns
2-27 Compliance with laws and
ESG Databook: Environmental risk management
regulations
2-28 Membership associationsーESG Databook: Dialogue with our stakeholders
2-29 Approach to stakeholder
engagement
Investor Relations: Shareholder events (Japanese)
2-30 Collective bargaining agreements ESG Databook: Condition of labor unions
3-1 Process to determine material
ESG Databook: Materiality analysis
topicsESG Databook: Materiality analysis
3-2 List of material topics
Komatsu Report (TCFD)
3-3 Management of material topics
ESG Databook: Materiality analysis
ESG Databook: The Komatsu way and policy on humanresource development (remuneration data)
ESG Databook: Promoting diversity and inclusion (Work-lifebalance data)
201-1 Direct economic value
Annual Securities Report: Income Taxes
generated and distributed
ESG Databook: Developing people needed by the community
ESG Databook: Komatsu's initiatives for social issues
ESG Databook: Disaster relief
Komatsu Report (TCFD)
201-2 Financial implications and other ESG Databook: Mitigating climate change through products andrisks and opportunities due to climate services
changeESG Databook: Reducing CO2 emissions in manufacturing
operations
201-3 Defined benefit plan obligations Annual Securities Report: Pension and Retirement Benefits
and other retirement plans
201-4 Financial assistance received ーfrom government202-1 Ratios of standard entry level
wage by gender compared to localーminimum wage
202-2 Proportion of senior
management hired from the local
ESG Databook: Promoting diversity and inclusion
community

248

ESG Databook 2023

Sustainability policy

Management ofsustainability

GRI STANDARD

With people

With businessWith the planet

DISCLOSURE
203-1 Infrastructure investments andservices supported

Data

Socialcontribution
activities

Index

LOCATIONESG Databook: Komatsu's initiatives for social issues
ESG Databook: Disaster relief
Smart construction (Japanese)
Investor Relations: President interview
ESG Databook: Developing people needed by the community
ESG Databook: Komatsu's initiatives for social issues
ESG Databook: Disaster relief

GRI 203: Indirect
Economic Impacts 2016 203-2 Significant indirect economic
impacts

GRI 204: Procurement
Practices 2016

204-1 Proportion of spending on local ESG Databook: Outline of procurement policy and supply chain
suppliers205-1 Operations assessed for risks ーrelated to corruption
Communication and training
GRI 205: Anti-corruption 205-2
about
anti-corruption policies and
ESG Databook: Compliance2016
procedures
205-3 Confirmed incidents of
ESG Databook: Compliancecorruption and actions taken
GRI 206: Anti206-1 Legal actions for anticompetitive Behavior competitive behavior, anti-trust, and (None for FY2022)2016
monopoly practices
207-1 Approach to tax
Annual Securities Report: Financial Information
207-2 Tax governance, control, andAnnual Securities Report: Financial Information
risk management
GRI 207: Tax 2019
207-3 Stakeholder engagement andmanagement of concerns related to
Annual Securities Report: Financial Informationtax
207-4 Country-by-country reporting
Annual Securities Report: Financial Information
301-1 Materials used by weight or
ESG Databook: Inputs and outputs in the product life cycle
volumeESG Databook: Activities to effectively utilize resources in
GRI 301: Materials 2016 301-2 Recycled input materials usedproduction
301-3 Reclaimed products and their
ESG Databook: Activities to effectively utilize resources inpackaging materials
production
302-1 Energy consumption within the ESG Databook: Inputs and outputs in the product life cycle
organization
Scope of environmental data/calculation standards
302-2 Energy consumption outside of ー
the organization
ESG Databook, Environmental data
GRI 302: Energy 2016 302-3 Energy intensity
ESG Databook: Inputs and outputs in the product life cycle
ESG Databook, Environmental data
302-4 Reduction of energy
consumption
ESG Databook: Inputs and outputs in the product life cycle
302-5 Reductions in energy
ESG Databook: Mitigating climate change through products andrequirements of products and services services

249

ESG Databook 2023

Sustainability policy

Management ofsustainability

GRI STANDARD

GRI 303: Water andEffluents 2018

With people

With businessWith the planet

DISCLOSURE
303-1 Interactions with water as ashared resource
303-2 Management of water
discharge-related impacts

Data

Socialcontribution
activities

Index

LOCATIONESG Databook, Komatsu's efforts regarding water
ESG Databook, Komatsu's efforts regarding water
ESG Databook, Environmental impact indicators
ESG Databook, Komatsu's efforts regarding water
ESG Databook, Komatsu's efforts regarding water
ESG Databook: Inputs and outputs in the product life cycle

303-3 Water withdrawal

303-4 Water discharge
303-5 Water consumption
304-1 Operational sites owned,
leased, managed in, or adjacent to,ーprotected areas and areas of highbiodiversity value outside protectedareas
304-2 Significant impacts of activities, ー
GRI 304: Biodiversity
products and services on biodiversity
2016
304-3 Habitats protected or restored ー
304-4 IUCN Red List species andnational conservation list species with ー
habitats in areas affected byoperations
Databook, Environmental impact indicators
305-1 Direct (Scope 1) GHG emissions ESG
ESG Databook, Calculation standards
ESG Databook, Environmental impact indicators
305-2 Energy indirect (Scope 2) GHG
emissionsESG Databook, Calculation standards
Amount of CO2 emissions by scope 3
305-3 Other indirect (Scope 3) GHG
Amount of CO2 emissions by scope3
emissions
Scope of environmental data/calculation standards
GRI 305: Emissions 2016
ESG Databook: Reducing CO2 emissions in manufacturing305-4 GHG emissions intensity
operations
305-5 Reduction of GHG emissionsー305-6 Emissions of ozone-depleting ー
substances (ODS)
305-7 Nitrogen oxides (NOx), sulfur
Databook: Inputs and outputs in the product life cycle
oxides (SOx), and other significant air ESG
Scope of environmental data/calculation standards
emissions250

ESG Databook 2023

Sustainability policy

Management ofsustainability

GRI STANDARD

With people

With businessWith the planet

DISCLOSURE
306-1 Waste generation andsignificant waste-related impacts

GRI 402:
Labor/Management
Relations 2016

Index

ESG Databook: Development of our “Reman” remanufacturingbusiness
ESG Databook: Green procurement guidelines
ESG Databook: Activities to effectively utilize resources in
production (1. waste)
ESG Databook: Inputs and outputs in the product life cycleー
ESG Databook: Activities to effectively utilize resources in
production (1. waste)
ESG Databook: Inputs and outputs in the product life cycle

306-3 Waste generated

306-5 Waste directed to disposal

GRI 401: Employment
2016

activities

ESG Databook: Inputs and outputs in the product life cycle

306-4 Waste diverted from disposal

GRI 308: Supplier
Environmental
Assessment 2016

Socialcontribution

LOCATION

306-2 Management of significant
waste-related impacts

GRI 306: Waste 2020

Data

308-1 New suppliers that werescreened using environmental criteria ー
308-2 Negative environmental
impacts in the supply chain andー
actions taken
401-1 New employee hires and
ESG Databook: The Komatsu Way and policy on human
employee turnover
resource development (Data on employment and turnover)
401-2 Benefits provided to full-time
employees that are not provided to ー
temporary or part-time employees
ESG Databook: Promoting diversity and inclusion (Data on
401-3 Parental leave
pregnancy and childcare leaves)402-1 Minimum notice periods
regarding operational changes

403-1 Occupational health and safety
management system403-2 Hazard identification, risk
assessment, and incident
investigation
403-3 Occupational health services
403-4 Worker participation,
GRI 403: Occupational consultation, and communication on
Health and Safety 2018 occupational health and safety403-5 Worker training on occupational
health and safety403-6 Promotion of worker health403-7 Prevention and mitigation ofoccupational health and safety
impacts directly linked by business
relationships

251

ESG Databook: Occupational safety and health
ESG Databook: Occupational safety and health
ESG Databook: Occupational safety and health
ESG Databook: Occupational safety and health
ESG Databook: Occupational safety and health
ESG Databook: Occupational safety and health
ESG Databook: Occupational safety and health

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

GRI STANDARDDISCLOSURE
403-8 Workers covered by an
occupational health and safety
GRI 403: Occupational management system
Health and Safety 2018403-9 Work-related injuries
403-10 Work-related ill health

GRI 404: Training and
Education 2016

Data

Socialcontribution
activities

Index

LOCATIONESG Databook: Occupational safety and health404-1 Average hours of training peryear per employee

ESG Databook: Occupational safety and health
ESG Databook: Occupational safety and health
ESG Databook: Offering of a variety of talent development
opportunities and improvement of employee engagement(Data on employee training)404-2 Programs for upgrading
employee skills and transition
assistance programs

ESG Databook: Develop digital and open innovation promotion
human resources
ESG Databook: Offering of a variety of talent development
opportunities and improvement of employee engagement404-3 Percentage of employees
ESG Databook: Offering of a variety of talent development
receiving regular performance andopportunities and improvement of employee engagementcareer development reviews
405-1 Diversity of governance bodies ESG Databook: Promoting diversity and inclusion
GRI 405: Diversity and and employees
Equal Opportunity 2016 405-2 Ratio of basic salary andESG Databook: The Komatsu way and policy on human resource
remuneration of women to men
development（Annual total reｍuneration）
GRI 406: Non406-1 Incidents of discrimination and (None for FY2022)
discrimination 2016
corrective actions taken
ESG Databook: Human rights policy
ESG Databook: Business and human rights
GRI 407: Freedom of
407-1 Operations and suppliers in
ESG Databook: CSR procurement guidelines
Association andwhich the right to freedom of
Databook: Komatsu group's supply chain management
Collective Bargaining association and collective bargaining ESG
andpromotionof CSR procurement
2016
may be at risk
ESG Databook: Offering of a variety of talent development
opprtunities and improvement of employee engagement(Condition of labor unions)ESG Databook: Human rights policy
ESG Databook: Business and human rights
408-1 Operations and suppliers at
GRI 408: Child Labor
significant
riskfor
incidentsofchild
ESG Databook: CSR procurement guidelines
2016
labor
ESG Databook: Komatsu group's supply chain management
and promotion of CSR procurement
ESG Databook: Human rights policy
ESG Databook: Business and human rights
409-1 Operations and suppliers at
GRI 409: Forced orsignificant
riskfor
incidentsofforcedESG Databook: CSR procurement guidelines
Compulsory Labor 2016 or compulsory labor
ESG Databook: Komatsu group's supply chain management
and promotion of CSR procurement
ESG Databook: Human rights policy
GRI 410: Security
410-1 Security personnel trained inPractices 2016human rights policies or procedures
ESG Databook: Business and human rights
GRI 411: Rights of
411-1 Incidents of violations involving (None for FY2022)
Indigenous Peoples 2016 rights of indigenous peoples

252

ESG Databook 2023

Sustainability policy

Management ofsustainability

GRI STANDARD

GRI 413: Local
Communities 2016

With people

With businessWith the planet

DISCLOSURE

Socialcontribution
activities

Index

LOCATIONESG Databook: Business and human rights
EESG Databook: Developing people needed by the community
ESG Databook: Komatsu's initiatives for social issues
ESG Databook: Disaster relief

413-1 Operations with local
community engagement, impact
assessments, and development
programs
413-2 Operations with significant
actual and potential negative impacts
on local communities

ESG Databook: Developing people needed by the community
ESG Databook: Human rights policy
ESG Databook: Business and human rights
ESG Databook: CSR procurement guidelines
ESG Databook: Komatsu group's supply chain management
and promotion of CSR procurement
ESG Databook: Human rights policy
ESG Databook: Business and human rights
ESG Databook: CSR procurement guidelines
ESG Databook: Komatsu group's supply chain management
and promotion of CSR procurement414-1 New suppliers that werescreened using social criteria

GRI 414: Supplier Social
Assessment 2016414-2 Negative social impacts in the
supply chain and actions taken

GRI 415: Public Policy
2016

Data

415-1 Political contributions

Political contributions

416-1 Assessment of the health andsafety impacts of product and service
categories
GRI 416: Customer
Health and Safety 2016 416-2 Incidents of non-complianceconcerning the health and safety
impacts of products and services
417-1 Requirements for product andservice information and labeling417-2 Incidents of non-compliance
GRI 417: Marketing and concerning product and service
Labeling 2016
information and labeling417-3 Incidents of non-complianceconcerning marketing
communications
418-1 Substantiated complaints
GRI 418: Customer
concerning breaches of customer
Privacy 2016privacy and losses of customer data

ESG Databook: Improving safety of products and solutions(None for FY2022)ー(None for FY2022)(None for FY2022)(None for FY2022)

253

ESG Databook 2023

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

SASB content index
Topic

Accounting metric

Reference
Environmental impact resulting
from business activities
Environmental impact resulting
from business activities
Reducing CO2 emissions in
manufacturing operations(1) Total energy consumed
Energymanagement(2) Percentage gridelectricity(3) Percentage renewable(1) Total recordable incident rate Occupational safety and health(TRIR)
Employee health (2) Employee fatality rate
Occupational safety and health& safety(3) Near miss frequency rate
(NMFR)(1) Sales-weighted fleet fuelefficiency for medium- and heavy- N/Aduty vehicles(2) Sales-weighted fuel efficiency Reducing CO2 emissions fromfor non-road equipment
product operation
Sales-weighted fuel efficiency N/AFuel economy & (3)emissions in use- for stationary generators
phase
NOx、PM Sales-weighted
emissions of: (1) nitrogen oxides(NOx) and (2) particulate matter(PM) for: (a) marine diesel
NOx and PM emitted fromengines, (b) locomotive diesel
products
engines, (c) on-road medium- andheavy-duty engines, and (d) othernon-road diesel engines
Description of the management of Effective use of critical materials
Materials
risks associated with the use of in products
sourcing
critical materials
from remanufactured Development of our “reman”
Remanufacturing Revenue
products
design & services services and remanufacturing remanufacturing business

254

Code
RT-IG-130a.1

RT-IG-320a.1

RT-IG-410a.1
RT-IG-410a.2
RT-IG-410a.3

RT-IG-410a.4

RT-IG-440a.1
RT-IG-440b.1

ESG Databook 2023

Sustainability policy

Management ofsustainability

Topic
Activity
metricWith people

With businessAccounting metric
Number of units produced byproduct category
Number of employeesWith the planet

Data

Socialcontribution
activities

Reference
Environmental impact resulting
from business activities
Company info

255

Index

Code
RT-IG-000.A
RT-IG-000.B

ESG Databook 2023